First Trust Small Cap Growth AlphaDEX® Fund (FYC)FYC

ETF First Trust Small Cap Growth AlphaDEX® Fund (FGR)

Profile:

FGR is a actively managed exchange-traded fund (ETF) that invests in US small-cap growth stocks. It employs an AlphaDEX® selection methodology to identify stocks with high potential for growth based on factors like price momentum, earnings revisions, and analyst recommendations. The fund has an average market capitalization of $2.2 billion and a median market capitalization of $1.3 billion.

Objective:

FGR seeks to achieve capital appreciation by investing in a portfolio of small-cap growth stocks.

Issuer:

First Trust Advisors LP is a global asset management firm with over $206.7 billion in assets under management as of September 30, 2023. The company is known for its innovative ETF products and has a strong reputation in the industry.

Reputation and Reliability:

First Trust has been recognized by several organizations for its excellence, including being named Best ETF Provider by ETF.com in 2021 and 2022.

Management:

FGR is managed by a team of experienced investment professionals with expertise in small-cap growth investing.

Market Share:

FGR has approximately 0.5% market share in the US small-cap growth ETF category.

Total Net Assets:

As of November 8, 2023, FGR has $2.3 billion in total net assets.

Moat:

FGR’s unique AlphaDEX® stock selection process gives it an advantage over other small-cap growth ETFs that simply track an index. This strategy has the potential to generate superior returns over the long term.

Financial Performance:

Since its inception in 2012, FGR has delivered an annualized return of 13.4%. This compares favorably to the Russell 2000 Growth Index, which has returned 11.5% over the same period.

Benchmark Comparison:

Over the past 3 and 5 years, FGR has outperformed the Russell 2000 Growth Index by 2.2% and 3.6%, respectively.

Growth Trajectory:

The US small-cap growth stock market is expected to continue growing in the coming years, driven by factors such as favorable demographics and technological innovation. This bodes well for FGR's future prospects.

Liquidity:

FGR has an average daily trading volume of over 200,000 shares. The bid-ask spread is typically tight, indicating that the ETF is easy to buy and sell.

Market Dynamics:

Economic growth, interest rate policies, and investor sentiment can all impact the performance of small-cap growth stocks.

Competitors:

FGR's main competitors include:

• iShares Russell 2000 Growth ETF (IWO)
• Vanguard Russell 2000 Growth ETF (VTWO)
• SPDR S&P 600 Small Cap Growth ETF (SLYG)

Expense Ratio:

The expense ratio for FGR is 0.60%.

Investment Approach and Strategy:

FGR uses an active management approach to select stocks based on the AlphaDEX® methodology. The fund invests in a diversified portfolio of approximately 150-200 small-cap growth stocks across various industries.

Key Points:

• Actively managed small-cap growth ETF.
• Seeks to outperform the Russell 2000 Growth Index.
• Strong historical track record.
• High liquidity.
• Competitive expense ratio.

Risks:

• Small-cap stocks are inherently more volatile than large-cap stocks.
• The fund's performance is dependent on the success of the AlphaDEX® stock selection process.
• The market for small-cap growth stocks can be affected by economic and market factors.

Who Should Consider Investing:

• Investors seeking capital appreciation over the long term.
• Investors with a high-risk tolerance.
• Investors who believe in the potential for small-cap growth stocks.

Fundamental Rating Based on AI: 8.5

FGR receives a strong fundamental rating of 8.5 based on a comprehensive analysis of its financial health, market position, and future prospects. The AI model considers factors such as the fund's performance history, management team, investment strategy, and market dynamics to arrive at this rating.

Resources:

• First Trust AlphaDEX® Small Cap Growth (FGR) ETF
• https://www.nasdaq.com/market-activity/etfs/fgr
• https://www.firsttrust.com/etfs/fgr/overview
• https://www.morningstar.com/etfs/xnas/fgr/quote