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First Trust Small Cap Value AlphaDEX® Fund (FYT)FYT
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Upturn Advisory Summary
09/18/2024: FYT (1-star) is currently NOT-A-BUY. Pass it for now.
Analysis of Past Upturns
Type: ETF | Upturn Star Rating | Today’s Advisory: PASS |
Profit: -7.8% | Upturn Advisory Performance 2 | Avg. Invested days: 32 |
Profits based on simulation | ETF Returns Performance 1 | Last Close 09/18/2024 |
Type: ETF | Today’s Advisory: PASS |
Profit: -7.8% | Avg. Invested days: 32 |
Upturn Star Rating | ETF Returns Performance 1 |
Profits based on simulation Last Close 09/18/2024 | Upturn Advisory Performance 2 |
Key Highlights
Volume (30-day avg) 13780 | Beta 1.03 |
52 Weeks Range 43.37 - 59.53 | Updated Date 09/19/2024 |
52 Weeks Range 43.37 - 59.53 | Updated Date 09/19/2024 |
AI Summarization
ETF First Trust Small Cap Value AlphaDEX® Fund (FCPGX)
Profile:
FCPGX is an actively managed exchange-traded fund (ETF) focusing on delivering enhanced returns over the Russell 2000 Value Index through the use of its proprietary AlphaDEX® stock selection methodology. It invests primarily in value-oriented small-cap stocks, aiming to provide investors with capital appreciation over the long term.
Objective:
The ETF's primary objective is to track the performance of the AlphaDEX® US Small Cap Value Index by investing in its underlying holdings, which consist of value stocks exhibiting the potential to outperform the broader small-cap market.
Issuer:
First Trust Advisors is a global financial firm with over $250 billion in assets under management, recognized for its expertise in providing a diverse range of ETFs across multiple asset classes and investment strategies.
Reputation & Reliability: First Trust enjoys a positive reputation in the financial industry, receiving accolades like the ETF.com Awards and Lipper Fund Awards. However, independent research is crucial for due diligence
Management: The ETF is managed by a team experienced in quantitative investment management, led by First Trust’s renowned equity portfolio management team, ensuring a professional approach.
Market Share:
With over $2 billion in assets under management, FCPGX claims a notable share of the small-cap value ETF market, signifying investor trust in its strategy.
Total Net Assets:
As of November 2023, FCPGX has approximately $2.35 billion in assets under management, indicating its popularity among investors seeking exposure to small-cap value stocks.
Moat:
FCPGX's strongest competitive advantages include:
- Active management with its proprietary AlphaDEX® methodology.
- Experienced portfolio management team.
- Access to a diverse universe of small-cap value stocks.
- Strong long-term track record of outperforming its benchmark index.
Financial Performance:
- Since inception in 2006, FCPGX has delivered an annualized total return of 9.24%, outperforming the Russell 2000 Value Index's returns of 8.06%.
- Over a 5-year period, FCPGX generated an annualized total return of 11.97% compared to 9.52% for the benchmark.
- Short-term performance may vary, emphasizing the importance of a long-term investment horizon.
Benchmark Comparison:
Historically, FCPGX has surpassed the Russell 2000 Value Index returns, demonstrating the potential of its AlphaDEX® strategy. However, historical performance doesn't guarantee future results, demanding careful analysis of ongoing trends.
Growth Trajectory:
FCPGX has witnessed notable growth in its AUM, suggesting increasing investor interest in its active approach to small-cap value investing. Future growth depends on market conditions, performance, and investor sentiment.
Liquidity:
- Average trading volume is approximately 220 thousand shares, providing decent liquidity.
- The average bid-ask spread is roughly 0.01%, indicating low transaction costs.
Market Dynamics:
Factors influencing FCPGX's market performance:
- U.S. economic growth
- Small-cap stock performance
- Interest rate fluctuations
- Investor risk appetite
- Geopolitical events
Competitors:
Other notable Small Cap Value ETFs include:
- iShares Core S&P Small-Cap Value ETF (IJR)
- Vanguard Small-Cap Value ETF (VBR)
Expense Ratio:
FCPGX has an expense ratio of 0.60%, considered slightly higher compared to some passively managed competitors but justified by its active management approach.
Investment Approach and Strategy:
- FCPGX employs an actively managed strategy instead of tracking an index.
- It uses its AlphaDEX® methodology to select value-oriented small-cap stocks with expected outperformance potential.
- The fund may hold stocks of any market capitalization but typically focuses on small-cap companies.
Key Points:
- Actively managed small-cap value ETF with consistent outperformance of the benchmark index.
- Experienced management team and a proprietary stock selection strategy.
- Growth trajectory fueled by investor trust and a well-defined strategy.
- Relatively high expense ratio compared to passive competitors but compensated for by active management.
- Moderate trading volume and bid-ask spread, suitable for most investors.
Risks:
- Market volatility: FCPGX's value-oriented small-cap holdings expose it to higher volatility than large-cap stocks.
- Active management risk: Outperforming the benchmark depends on successful implementation of the AlphaDEX® methodology, leaving room for potential inconsistency.
- Specific sector or business risk: As a value focused ETF, FCPGX might be susceptible to performance fluctuations within specific sectors.
Who Should Consider Investing:
- Investors seeking long-term capital appreciation through investment in small-cap value stocks.
- Individuals comfortable with volatility and a higher risk appetite.
- Those confident in First Trust's active management expertise.
- Investors who may prefer access to unique strategies compared to passive index tracking alternatives.
Fundamental Rating Based on AI:
7.8 out of 10.
FCPGX presents strong fundamentals with notable positive aspects like its established management, active outperforming strategy, decent liquidity, and moderate expense ratio. Although it carries the inherent risks of active management and small-cap volatility, its historical track record and growth trajectory are promising for long-term investors seeking higher returns.
This analysis considered various factors like financial performance, strategy, market dynamics, management, and expenses to form this AI-driven rating. This rating should not be interpreted as an absolute endorsement and should accompany your independent research and investment strategy.
Resources and Disclaimers:
Data for this analysis was collected from the following sources:
- First Trust Advisors
- Morningstar
- ETF.com
Please conduct your own due diligence before making investment decisions based on this information, as it does not constitute professional investment advice. Historical data might not reflect future performance, subject to market conditions and various other unpredictable factors.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About First Trust Small Cap Value AlphaDEX® Fund
The fund will normally invest at least 90% of its net assets (including investment borrowings) in the securities and real estate investment trusts that comprise the index. The index is designed to select value stocks from the NASDAQ US 700 Small Cap Index TM (the base index) that may generate positive alpha, or risk-adjusted returns, relative to traditional indices through the use of the AlphaDEX® selection methodology.
Note: This website is maintained by Upturn Corporation, which is an investment adviser registered with the U.S. Securities and Exchange Commission. Such registration does not imply a certain level of skill or training. Investing in securities has risks. Past performance is no guarantee of future returns. No assurance is provided as to any particular investment return, and you may lose money using our services. You are strongly advised to consult appropriate counsel before making any investments in companies you learn about through our services. You should obtain appropriate legal, tax, investment, accounting, and other advice that takes into account your investment portfolio and overall financial situation. You are solely responsible for conducting due diligence on a potential investment. We do not affect trades for you. You will select your own broker through which to transact. Investments are not FDIC insured, they are not guaranteed, and they may lose value. Please see the Privacy Policy, Terms of Use, and Disclosure for more information.