First Trust Mid Cap Value AlphaDEX® Fund (FNK)

Overview

The First Trust Mid Cap Value AlphaDEXu00ae Fund (FDA) seeks investment results that correspond generally to the price and yield of an equity index called the StrataQuantu00ae Mid Cap Value Index. It focuses on selecting mid-cap value stocks based on growth factors and valuation.

Reputation and Reliability

First Trust is a well-established ETF provider with a strong track record in the market. They are known for their innovative and factor-based ETF offerings.

Management Expertise

First Trust has a team of experienced investment professionals managing their ETFs, leveraging quantitative analysis and fundamental research.

Goal

The primary goal of the First Trust Mid Cap Value AlphaDEXu00ae Fund is to provide investment results that generally correspond to the price and yield, before fees and expenses, of the StrataQuantu00ae Mid Cap Value Index.

Investment Approach and Strategy

Strategy: The ETF employs a quantitative methodology (AlphaDEXu00ae) to select and weight stocks, rather than passively tracking a market-cap-weighted index.

Composition The fund primarily holds stocks of mid-capitalization US companies that exhibit value characteristics. The specific holdings will vary over time based on the AlphaDEXu00ae methodology.

Market Share: Details on FDA's exact market share in the mid-cap value ETF segment are not readily available without specific market share data reports.

Total Net Assets (AUM): 1480000000

Key Competitors

• IJJ
• VOE
• RFV

Competitive Landscape

The mid-cap value ETF market is competitive. FDA differentiates itself through its AlphaDEXu00ae methodology, which may lead to outperformance or underperformance compared to passively managed competitors. FDA's active methodology could provide advantage but comes with increased costs compared to passively managed funds.

Historical Performance: Historical performance data needs to be sourced from financial data providers like Morningstar, Yahoo Finance, or the First Trust website to provide accurate returns over different time periods.

Benchmark Comparison: A benchmark comparison requires access to performance data for both FDA and its stated benchmark, the StrataQuantu00ae Mid Cap Value Index, over corresponding time periods.

Expense Ratio: 0.7

Average Trading Volume

FDA's liquidity, measured by average trading volume, indicates how easily shares can be bought or sold without significantly impacting the price.

Bid-Ask Spread

The bid-ask spread provides insight into the cost of trading FDA, where a narrower spread generally signifies lower transaction costs.

Market Environment Factors

FDA's performance is influenced by factors such as interest rate movements, economic growth, inflation, and overall market sentiment towards value stocks and mid-cap companies.

Growth Trajectory

FDA's growth trajectory depends on the continued adoption of factor-based investing strategies and its ability to deliver competitive risk-adjusted returns relative to its peers.

Competitive Edge

FDA's AlphaDEXu00ae methodology represents a distinct competitive advantage, offering a systematic, rules-based approach to stock selection that aims to identify undervalued mid-cap companies with strong growth potential. This methodology can lead to differentiated portfolio construction compared to passively managed index funds. The quantitative approach reduces emotional biases in investment decisions. Furthermore, First Trust's brand recognition and distribution network contribute to FDA's competitive standing within the ETF market.

Volatility

FDA's volatility can be assessed by examining its beta and standard deviation relative to the broader market or its benchmark index.

Market Risk

The primary market risk associated with FDA is the potential for declines in the value of its holdings due to adverse market conditions or sector-specific downturns affecting mid-cap value stocks.

Ideal Investor Profile

The ideal investor for FDA is someone seeking exposure to mid-cap value stocks and is comfortable with a factor-based investment approach that may deviate from traditional market-cap-weighted indices.

Market Risk

FDA may be suitable for long-term investors seeking potential outperformance through active management within the mid-cap value space, but they should be aware of the associated risks and expense ratio.

The First Trust Mid Cap Value AlphaDEXu00ae Fund (FDA) offers exposure to mid-cap value stocks through a unique, quantitative AlphaDEXu00ae methodology. This approach seeks to identify undervalued companies with strong growth characteristics. While it offers the potential for outperformance, it also carries higher risk and expenses compared to passively managed ETFs. FDA may be appropriate for investors who understand factor-based investing and seek a differentiated approach to mid-cap value investing.

Data Sources:

• First Trust Website
• Morningstar
• Yahoo Finance
• ETF.com

Disclaimers:

The information provided is for informational purposes only and should not be considered financial advice. Investment decisions should be made based on individual circumstances and after consulting with a qualified financial advisor. Past performance is not indicative of future results. Market share data is estimated.