First Trust Mid Cap Core AlphaDEX® Fund (FNX)

Overview

The First Trust Mid Cap Core AlphaDEXu00ae Fund (FNX) seeks investment results that correspond to the AlphaDEXu00ae Mid Cap Core Index, which employs a quantitative methodology to select and weight mid-capitalization stocks.

Reputation and Reliability

First Trust is a well-established ETF provider known for its innovative and strategy-driven funds.

Management Expertise

First Trust has a dedicated team of investment professionals experienced in managing and optimizing ETF portfolios using quantitative methodologies.

Goal

To seek investment results that correspond generally to the price and yield of an equity index called the AlphaDEXu00ae Mid Cap Core Index.

Investment Approach and Strategy

Strategy: The fund employs a quantitative, rules-based approach to select and weight stocks within the mid-cap universe. It does not simply track a market capitalization weighted index.

Composition The ETF holds a diversified portfolio of mid-capitalization stocks selected based on growth and value factors.

Market Share: FNX holds a moderate market share within the mid-cap core ETF category.

Total Net Assets (AUM): 1669000000

Key Competitors

• IJH
• VO
• IWR
• SCHM

Competitive Landscape

The mid-cap ETF space is highly competitive, with many established players. FNX differentiates itself through its AlphaDEXu00ae methodology, but faces competition from lower-cost, market-cap weighted ETFs. FNX's advantage lies in its potential for outperformance, while its disadvantage is a higher expense ratio compared to broad market ETFs.

Historical Performance: Historical performance data should be sourced from reputable financial websites and is subject to change. Reviewing performance over 1, 3, 5, and 10-year periods provides a comprehensive view.

Benchmark Comparison: The fund's performance should be compared against the Russell Midcap Index or a similar broad market mid-cap index to assess its effectiveness.

Expense Ratio: 0.62

Average Trading Volume

The average trading volume of FNX indicates moderate liquidity, which can affect the ease of buying and selling shares.

Bid-Ask Spread

The bid-ask spread provides insight into the cost of trading FNX; a narrower spread generally indicates better liquidity and lower transaction costs.

Market Environment Factors

Economic growth, interest rates, and investor sentiment towards mid-cap stocks influence FNX's performance. Sector-specific trends within the mid-cap universe also play a role.

Growth Trajectory

FNX's growth is tied to the performance of its underlying holdings and the effectiveness of its AlphaDEXu00ae methodology. Changes in sector allocations and stock selection can impact its trajectory.

Competitive Edge

FNX's competitive advantage stems from its proprietary AlphaDEXu00ae methodology, which aims to identify and select stocks with the potential for outperformance. This rules-based approach differentiates it from traditional market-cap weighted ETFs. The fund's focus on growth and value factors within the mid-cap space also contributes to its uniqueness. However, this active management comes at a higher cost.

Volatility

FNX's historical volatility reflects the inherent risks associated with mid-cap stocks. Market fluctuations and sector-specific downturns can impact its price movements.

Market Risk

Specific risks include fluctuations in the mid-cap equity market, sector concentration risk depending on current holdings, and the risk that the AlphaDEXu00ae methodology may not consistently deliver outperformance.

Ideal Investor Profile

The ideal investor is one seeking exposure to mid-cap stocks with a potential for outperformance through a quantitative investment strategy and is comfortable with a slightly higher expense ratio.

Market Risk

FNX is suitable for investors seeking long-term capital appreciation and who are willing to accept moderate levels of risk in exchange for the potential for higher returns compared to passive index funds.

The First Trust Mid Cap Core AlphaDEXu00ae Fund (FNX) offers exposure to mid-cap equities through a unique, quantitative AlphaDEXu00ae methodology. Its goal is to outperform traditional market-cap weighted indices by identifying stocks with strong growth and value characteristics. While the fund's expense ratio is higher than passive alternatives, its differentiated approach may appeal to investors seeking enhanced returns. FNX's performance is influenced by market conditions and the effectiveness of its stock selection process. Investors should carefully consider the fund's risk profile and investment objective before investing.

Data Sources:

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

Disclaimers:

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