First Trust Small Cap Growth AlphaDEX® Fund (FYC)

Overview

The First Trust Small Cap Growth AlphaDEXu00ae Fund (FTXO) seeks investment results that correspond generally to the price and yield of an equity index called the NASDAQ AlphaDEXu00ae Small Cap Growth Index. The fund invests in small-cap growth stocks selected through the AlphaDEXu00ae methodology.

Reputation and Reliability

First Trust is a well-established ETF issuer with a strong track record. They are known for their innovative and rules-based investment strategies.

Management Expertise

First Trust has a dedicated team of experienced portfolio managers and analysts overseeing their ETF products.

Goal

To provide investment results that correspond generally to the price and yield of the NASDAQ AlphaDEXu00ae Small Cap Growth Index.

Investment Approach and Strategy

Strategy: The fund employs a proprietary AlphaDEXu00ae methodology to select and weight stocks, aiming to outperform traditional market-cap-weighted indexes.

Composition The ETF primarily holds small-cap growth stocks in various sectors of the U.S. equity market.

Market Share: Data not readily available to allow calculation of an accurate market share

Total Net Assets (AUM): 1709000000

Key Competitors

• IWO
• VBK
• RPG

Competitive Landscape

The small-cap growth ETF market is competitive, with many funds offering exposure to this segment. FTXO's AlphaDEXu00ae methodology is a differentiator, but its performance needs to be consistently strong to attract and retain investors. Compared to market-cap weighted funds, FTXO aims to outperform, which introduces both opportunities and risks. Active competitors seek alpha through differing quantitative measures.

Historical Performance: Historical performance data requires specific time periods and should be retrieved from financial data providers.

Benchmark Comparison: Benchmark comparison requires specific index data and should be retrieved from financial data providers to directly compare it against the fund.

Expense Ratio: 0.062

Average Trading Volume

The average trading volume suggests reasonable liquidity for FTXO allowing most investors to enter or exit positions without significantly affecting the price.

Bid-Ask Spread

The bid-ask spread gives insight into the cost of trading FTXO, and is typically tight suggesting efficient trading.

Market Environment Factors

FTXO's performance is influenced by economic growth, interest rates, and investor sentiment towards small-cap stocks. Sector-specific trends and regulatory changes also play a role.

Growth Trajectory

FTXO's growth trajectory depends on the continued adoption of its AlphaDEXu00ae strategy and its ability to deliver competitive returns compared to its peers. Changes to strategy and holdings are publicly available through fund documentation.

Competitive Edge

FTXO's competitive edge lies in its proprietary AlphaDEXu00ae methodology, which aims to identify and select growth stocks with strong financial characteristics. This rules-based approach provides a systematic way to potentially outperform traditional market-cap-weighted indexes. First Trust's reputation as a reliable ETF provider further enhances its appeal. The fund's focus on small-cap growth companies differentiates it from broader market ETFs.

Volatility

FTXO's historical volatility is expected to be higher than that of large-cap ETFs due to the inherent volatility of small-cap stocks.

Market Risk

The specific risks associated with FTXO include market risk (general economic downturns), sector risk (exposure to specific industries), and small-cap risk (higher volatility and potential for lower liquidity).

Ideal Investor Profile

The ideal investor for FTXO is one who seeks growth potential, is comfortable with higher volatility, and has a long-term investment horizon.

Market Risk

FTXO is more suitable for long-term investors who are willing to accept higher risk for potentially higher returns. It is not as suitable for active traders seeking short-term gains due to its inherent volatility.

The First Trust Small Cap Growth AlphaDEXu00ae Fund (FTXO) offers investors exposure to small-cap growth stocks through a proprietary AlphaDEXu00ae methodology. It aims to outperform traditional market-cap-weighted indexes by selecting stocks based on growth factors. The fund's performance is subject to market conditions and the success of its AlphaDEXu00ae strategy. While it presents a potential for higher returns, investors should be aware of the increased volatility associated with small-cap stocks. FTXO is best suited for long-term investors with a higher risk tolerance.

• IWO
• VBK
• RPG
• IUSG
• VONG

Data Sources:

• First Trust Website
• SEC Filings
• Morningstar
• Yahoo Finance

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered investment advice. Investment decisions should be based on your own research and consultation with a financial advisor. Market share data is subject to availability and accuracy.