Investment Objective: |
The Fund will seek investment results that correspond generally to the price and yield (before the Funds fees and expenses) of an equity index called the NASDAQ AlphaDEX Large Cap Growth Index. The Index is a modified equal dollar-weighted index developed and maintained by The NASDAQ OMX Group, Inc. that is designed to generate positive alpha relative to traditional passive-style indices through the use of the AlphaDEX selection methodology. Nasdaq constructs the Index by ranking the eligible stocks from the NASDAQ US 500 Large Cap Index on growth factors including 3-, 6- and 12- month price appreciation, sales to price and one year sales growth, and separately on value factors including book value to price, cash flow to price and return on assets. All stocks are ranked on the sum of ranks for the growth factors and, separately, all stocks are ranked on the sum of ranks for the value factors. The top 187 stocks based on the selection score determined in the previous step comprise the selected stocks. The selected stocks are divided into quintiles based on their rankings and the top ranked quintiles receive a higher weight within the index. The stocks are equally-weighted within each quintile. The index is reconstituted and rebalanced quarterly. |