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 using the AlphaDEXu00ae stock selection methodology.

Reputation and Reliability

First Trust is a well-established ETF issuer known for its innovative and thematic ETF offerings.

Management Expertise

First Trust Advisors L.P. has extensive experience in managing various ETFs, including those employing quantitative strategies.

Goal

The fund seeks to provide investment results that correspond generally to the price and yield of the StrataQuantu00ae Mid Cap Value Index.

Investment Approach and Strategy

Strategy: The fund uses the AlphaDEXu00ae methodology to select mid-cap value stocks. It ranks stocks based on growth factors and value factors, then selects those with the highest ranks.

Composition Primarily holds mid-cap value stocks across various sectors.

Market Share: The fund's market share within the mid-cap value ETF segment varies depending on overall market conditions and investor flows.

Total Net Assets (AUM): 272890000

Key Competitors

• IJJ
• VOE
• RFV
• IWN
• AVUV
• VBR

Competitive Landscape

The mid-cap value ETF market is competitive, with numerous funds offering exposure to this segment. FDA differentiates itself through its AlphaDEXu00ae selection methodology, potentially leading to outperformance but also higher tracking error. Competitors may offer lower expense ratios or broader diversification.

Historical Performance: Historical performance data should be retrieved from financial data providers. Past performance does not guarantee future results.

Benchmark Comparison: Comparing the ETF's performance against the StrataQuantu00ae Mid Cap Value Index is essential to evaluate its effectiveness.

Expense Ratio: 0.7

Average Trading Volume

The fund's average trading volume impacts the ease of buying and selling shares. Data needs to be retrieved from financial data providers.

Bid-Ask Spread

The bid-ask spread reflects the difference between the highest price a buyer is willing to pay and the lowest price a seller is willing to accept. A tighter spread results in a lower cost.

Market Environment Factors

Economic growth, interest rate changes, and sector-specific trends can influence the performance of mid-cap value stocks held by the fund.

Growth Trajectory

The fund's growth depends on the performance of its underlying holdings and investor demand for mid-cap value strategies. Changes in the AlphaDEXu00ae methodology could also impact the fund's trajectory.

Competitive Edge

The First Trust Mid Cap Value AlphaDEXu00ae Fundu2019s (FDA) AlphaDEXu00ae stock selection methodology aims to identify value stocks with strong growth potential. This quantitative approach provides a systematic way to select stocks, potentially offering an advantage over traditional fundamental analysis. The focus on mid-cap companies allows for exposure to companies with growth opportunities. First Trust's brand recognition and distribution network also support the fund.

Volatility

The fund's historical volatility can be assessed by examining its standard deviation and beta. Value and small-cap stocks are generally more volatile than large-cap stocks.

Market Risk

The fund is subject to market risk, meaning the value of its holdings can decline due to overall market downturns or sector-specific weaknesses.

Ideal Investor Profile

The ETF is best for investors seeking exposure to mid-cap value stocks using a quantitative selection methodology. Ideal investors are comfortable with potentially higher volatility in pursuit of enhanced returns.

Market Risk

FDA is suitable for long-term investors seeking to diversify their portfolio with a value-oriented approach, but not for risk averse investors.

The First Trust Mid Cap Value AlphaDEXu00ae Fund (FDA) offers investors exposure to mid-cap value stocks selected using the AlphaDEXu00ae methodology. While the AlphaDEXu00ae approach aims to outperform traditional market-cap weighted indexes, the fund also carries risks associated with its value and mid-cap focus. Investors should carefully evaluate their risk tolerance and investment objectives before investing. The fund's expense ratio of 0.7% should be considered when compared to other similar ETFs. Market share of FDA is less than one percent of the entire market share of all the US ETFs listed here.

Data Sources:

• First Trust Website
• ETF.com
• Morningstar

Disclaimers:

The data provided is for informational purposes only and should not be considered investment advice. Consult with a financial advisor before making any investment decisions. Market share data is based on available public information and may not be exact.