First Trust Mid Cap Value AlphaDEX® Fund (FNK)

Overview

The First Trust Mid Cap Value AlphaDEXu00ae Fund (FDA) seeks investment results that correspond to the performance of the NASDAQ AlphaDEXu00ae Mid Cap Value Index. The fund employs a value-oriented, quantitative methodology to select mid-cap stocks.

Reputation and Reliability

First Trust is a well-established ETF provider with a solid reputation and a wide range of investment products.

Management Expertise

First Trust has extensive experience in managing ETFs, with a team of seasoned professionals overseeing the portfolio.

Goal

The fund seeks investment results that correspond to the price and yield of an index called the NASDAQ AlphaDEXu00ae Mid Cap Value Index.

Investment Approach and Strategy

Strategy: The fund uses a quantitative, rules-based strategy to select and weight stocks based on value factors.

Composition Primarily holds mid-cap stocks identified as value stocks based on specific criteria.

Market Share: FDA holds a moderate market share within the mid-cap value ETF segment.

Total Net Assets (AUM): 1554000000

Key Competitors

• IWS
• VOE
• RFV
• JHML

Competitive Landscape

The mid-cap value ETF market is competitive, with several established players. FDA's AlphaDEXu00ae methodology offers a differentiated approach, potentially providing enhanced returns compared to traditional market-cap weighted indices. However, this approach may also result in higher volatility and tracking error relative to the benchmark.

Historical Performance: Historical performance data is dependent on time frame analyzed. (Not Provided)

Benchmark Comparison: The fund's performance compared to the NASDAQ AlphaDEXu00ae Mid Cap Value Index dictates the effectiveness.

Expense Ratio: 0.7

Average Trading Volume

The average daily trading volume of FDA indicates reasonable liquidity for most investors.

Bid-Ask Spread

The bid-ask spread of FDA is typically moderate, reflecting the fund's trading volume and investor interest.

Market Environment Factors

Economic growth, interest rates, and inflation expectations can influence the performance of mid-cap value stocks, impacting FDA's returns.

Growth Trajectory

FDA's growth trajectory depends on the relative performance of its AlphaDEXu00ae methodology in selecting undervalued mid-cap stocks and the overall market environment.

Competitive Edge

FDA's competitive advantage lies in its proprietary AlphaDEXu00ae methodology, which aims to identify and overweight undervalued mid-cap stocks. This quantitative, rules-based approach seeks to outperform traditional market-cap weighted indices. The focus on value factors and the AlphaDEXu00ae ranking system differentiate FDA from its peers. However, the success of this strategy is contingent upon the effectiveness of the AlphaDEXu00ae methodology in various market conditions.

Volatility

FDA's historical volatility is moderate compared to the broader market, reflecting the risk profile of mid-cap value stocks.

Market Risk

FDA is exposed to market risk, particularly the risk associated with mid-cap companies and value stocks. Changes in economic conditions, investor sentiment, and industry trends can affect the fund's performance.

Ideal Investor Profile

FDA is suitable for investors seeking exposure to mid-cap value stocks with a quantitative, rules-based approach. Investors should have a moderate risk tolerance and a long-term investment horizon.

Market Risk

FDA is best suited for long-term investors who believe in the potential for value stocks to outperform over time. It may also appeal to investors seeking diversification and a differentiated approach to mid-cap investing.

First Trust Mid Cap Value AlphaDEXu00ae Fund (FDA) offers exposure to mid-cap value stocks using a quantitative AlphaDEXu00ae methodology, aiming to outperform traditional market-cap weighted indices. Its performance depends on the effectiveness of its stock selection process and the overall market environment. Investors should consider its moderate volatility and risk profile and ensure it aligns with their long-term investment goals. FDA is best suited for those seeking diversified exposure and value-oriented strategy.

Data Sources:

• First Trust Website
• ETF.com
• Morningstar

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered investment advice. Past performance is not indicative of future results. Market share data is approximate and may vary depending on the source and methodology. Consult with a qualified financial advisor before making any investment decisions.