FAD
FAD 2-star rating from Upturn Advisory

First Trust Multi Cap Growth AlphaDEX® Fund (FAD)

First Trust Multi Cap Growth AlphaDEX® Fund (FAD) 2-star rating from Upturn Advisory
$162.37
Last Close (24-hour delay)
Profit since last BUY21.06%
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BUY since 125 days
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Upturn Advisory Summary

11/05/2025: FAD (2-star) has a low Upturn Star Rating. Not recommended to BUY.

Upturn Star Rating

Upturn 2 star rating for performance

Below Average Performance

These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.

Analysis of Past Performance

Type ETF
Historic Profit 40.55%
Avg. Invested days 71
Today’s Advisory Consider higher Upturn Star rating
Upturn Star Rating upturn star rating icon
Upturn Advisory Performance Upturn Advisory Performance icon 4.0
ETF Returns Performance Upturn Returns Performance icon 5.0
Upturn Profits based on simulation icon Profits based on simulation
Upturn last close icon Last Close 11/05/2025

Key Highlights

Volume (30-day avg) -
Beta 1.18
52 Weeks Range 112.98 - 149.98
Updated Date 06/30/2025
52 Weeks Range 112.98 - 149.98
Updated Date 06/30/2025

Icon representing Upturn AI-generated SWOT analysis summary Upturn AI SWOT

First Trust Multi Cap Growth AlphaDEX® Fund

First Trust Multi Cap Growth AlphaDEX® Fund(FAD) company logo displayed in Upturn AI summary

ETF Overview

overview logo Overview

The First Trust Multi Cap Growth AlphaDEXu00ae Fund (FAD) is an exchange-traded fund that seeks investment results that correspond generally to the price and yield of an equity index called the NASDAQ AlphaDEXu00ae Multi Cap Growth Index. It focuses on growth stocks of mid- and large-capitalization U.S. companies, using an AlphaDEXu00ae methodology to select and weight holdings based on growth factors.

Reputation and Reliability logo Reputation and Reliability

First Trust is a well-established ETF provider with a solid reputation in the industry.

Leadership icon representing strong management expertise and executive team Management Expertise

First Trust has a dedicated team of investment professionals with experience in managing ETFs and utilizing quantitative investment strategies.

Investment Objective

Icon representing investment goals and financial objectives Goal

Seeks investment results that correspond generally to the price and yield of the NASDAQ AlphaDEXu00ae Multi Cap Growth Index.

Investment Approach and Strategy

Strategy: The fund employs a quantitative, rules-based approach to select growth stocks, aiming to outperform traditional market-cap weighted indexes.

Composition The ETF primarily holds U.S. growth stocks across various sectors, with a focus on mid- and large-cap companies.

Market Position

Market Share: FAD's market share within the multi-cap growth ETF segment is moderate.

Total Net Assets (AUM): 1522000000

Competitors

Key Competitors logo Key Competitors

  • VUG
  • IWF
  • RPG

Competitive Landscape

The multi-cap growth ETF industry is highly competitive, with many well-established players. FAD differentiates itself through its AlphaDEXu00ae methodology, aiming to identify and select growth stocks with strong fundamentals. However, it faces competition from larger, more liquid ETFs with lower expense ratios. FAD is suitable for investors seeking a smart-beta approach to growth investing, while its competitors offer broad market exposure.

Financial Performance

Historical Performance: Historical performance can be reviewed on financial websites, taking into account market fluctuations and fund-specific strategies.

Benchmark Comparison: The fund's performance should be compared to the NASDAQ AlphaDEXu00ae Multi Cap Growth Index to assess its tracking efficiency.

Expense Ratio: 0.7

Liquidity

Average Trading Volume

The average trading volume is moderate, indicating reasonable liquidity for most investors.

Bid-Ask Spread

The bid-ask spread is generally tight, suggesting relatively low trading costs.

Market Dynamics

Market Environment Factors

Economic growth, interest rates, inflation, and investor sentiment towards growth stocks can all impact FAD's performance.

Growth Trajectory

The ETF's growth trajectory is linked to the performance of its underlying holdings and the effectiveness of its AlphaDEXu00ae methodology. Changes in factor weightings and sector allocations can influence its future performance.

Moat and Competitive Advantages

Competitive Edge

FAD's competitive advantage lies in its proprietary AlphaDEXu00ae methodology, which seeks to identify growth stocks with strong fundamentals and potential for outperformance. This approach aims to provide a smart-beta alternative to traditional market-cap weighted growth indexes. The fund's focus on growth factors may appeal to investors seeking higher returns. The AlphaDEXu00ae strategy differentiates it from passively managed ETFs.

Risk Analysis

Volatility

FAD's volatility is likely to be similar to that of other growth-oriented ETFs, potentially higher than broader market indexes.

Market Risk

The fund is exposed to market risk, particularly associated with growth stocks and the overall economic environment. Sector-specific risks may also apply depending on the fund's allocation.

Investor Profile

Ideal Investor Profile

FAD is suitable for investors seeking exposure to U.S. growth stocks with a smart-beta approach and a tolerance for moderate volatility.

Market Risk

The fund is potentially suitable for long-term investors who believe in the AlphaDEXu00ae methodology and are comfortable with the risks associated with growth stocks.

Summary

First Trust Multi Cap Growth AlphaDEXu00ae Fund (FAD) offers exposure to U.S. growth stocks using a proprietary AlphaDEXu00ae methodology. The fund aims to outperform traditional market-cap weighted indexes by selecting stocks based on growth factors. It is a suitable option for investors seeking a smart-beta approach to growth investing, with a moderate expense ratio and reasonable liquidity. Investors should consider the fund's historical performance, benchmark comparison, and risk profile before investing. FAD provides an alternative to passive growth ETFs.

Similar ETFs

Sources and Disclaimers

Data Sources:

  • First Trust Website
  • ETF.com
  • Morningstar
  • Bloomberg

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered financial advice. Investment decisions should be based on individual circumstances and consultation with a qualified financial advisor. Market data is subject to change.

Information icon for Upturn AI Summarization accuracy disclaimer AI Summarization is directionally correct and might not be accurate.

Information icon for Upturn AI Summarization data freshness disclaimer Summarized information shown could be a few years old and not current.

Information icon warning about Upturn AI Fundamental Rating based on potentially old data Fundamental Rating based on AI could be based on old data.

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About First Trust Multi Cap Growth AlphaDEX® Fund

Exchange NASDAQ
Headquaters -
IPO Launch date -
CEO -
Sector -
Industry -
Full time employees -
Website
Full time employees -
Website

The fund will normally invest at least 90% of its net assets (including investment borrowings) in the securities that comprise the index. The index is designed to select growth stocks from the NASDAQ US 500 Large Cap Index TM, NASDAQ US 600 Mid Cap Index TM and NASDAQ US 700 Small Cap Index TM that may generate positive alpha, or risk-adjusted returns, relative to traditional indices through the use of the AlphaDEX® selection methodology.