First Trust Mid Cap Growth AlphaDEX® Fund (FNY)

Overview

The First Trust Mid Cap Growth AlphaDEXu00ae Fund (FNY) seeks investment results that correspond generally to the price and yield of the NASDAQ AlphaDEXu00ae Mid Cap Growth Index. It aims to select mid-cap growth stocks based on growth and value factors.

Reputation and Reliability

First Trust is a well-established ETF provider with a strong track record.

Management Expertise

First Trust has extensive experience in managing various ETF strategies, including AlphaDEX-based funds.

Goal

To track the NASDAQ AlphaDEXu00ae Mid Cap Growth Index and provide capital appreciation.

Investment Approach and Strategy

Strategy: The fund uses a quantitative, rules-based approach to select and weight mid-cap growth stocks based on fundamental growth and value factors.

Composition The ETF primarily holds U.S. mid-cap growth stocks selected by the AlphaDEX methodology.

Market Share: Market share data not readily available.

Total Net Assets (AUM): 133.48

Key Competitors

• IWP
• JHMM
• VOT

Competitive Landscape

The mid-cap growth ETF market is competitive, with numerous funds offering exposure to similar companies. FNY differentiates itself through its AlphaDEX selection methodology. Advantages include potential for outperformance through factor-based selection; a disadvantage can be higher turnover and potentially higher tax implications compared to passively managed funds.

Historical Performance: Historical performance data can be found on financial websites; actual data varies annually.

Benchmark Comparison: Performance should be compared to the NASDAQ AlphaDEXu00ae Mid Cap Growth Index.

Expense Ratio: 0.7

Average Trading Volume

The ETF's liquidity is moderate and suitable for many investors; average trading volume impacts the cost of buying or selling it. Actual volume data varies.

Bid-Ask Spread

The bid-ask spread is typically reasonable, but it can widen during periods of market volatility, affecting trading costs.

Market Environment Factors

Economic growth, interest rates, and investor sentiment toward growth stocks influence FNY's performance.

Growth Trajectory

The fund's growth trajectory depends on the performance of the underlying mid-cap growth stocks and the effectiveness of the AlphaDEX methodology.

Competitive Edge

FNY's competitive edge lies in its AlphaDEX methodology, which aims to identify and select mid-cap growth stocks with the strongest fundamental characteristics. This can potentially lead to outperformance compared to traditional market-cap-weighted indexes. The rules-based approach provides a systematic and transparent way to construct the portfolio. However, this approach might not always outperform the market and can result in higher turnover.

Volatility

The fund's volatility is typical for mid-cap growth stocks, which can be higher than large-cap stocks.

Market Risk

Market risk includes the potential for losses due to broader market downturns or sector-specific weaknesses within the mid-cap growth space.

Ideal Investor Profile

The ideal investor is seeking capital appreciation through mid-cap growth stocks and is comfortable with moderate volatility and a rules-based investment approach.

Market Risk

The fund is suitable for long-term investors who understand the risks and potential rewards of mid-cap growth investing.

First Trust Mid Cap Growth AlphaDEXu00ae Fund (FNY) offers exposure to mid-cap growth stocks using a quantitative AlphaDEX methodology, aiming for potential outperformance. It carries the typical risks associated with mid-cap growth stocks and factor-based investing. The fund is suitable for investors comfortable with moderate volatility and seeking long-term capital appreciation. Its expense ratio is moderate, and its performance should be compared to its benchmark index to assess its effectiveness. However, the relatively smaller AUM might limit liquidity compared to other larger ETFs in the mid cap sector.

Data Sources:

• First Trust Website
• ETF.com
• Morningstar

Disclaimers:

This information is for informational purposes only and should not be considered investment advice. Market share data can be dated and may not be completely up-to-date.