First Trust Mid Cap Growth AlphaDEX® Fund (FNY)

Overview

The First Trust Mid Cap Growth AlphaDEXu00ae Fund (FNY) seeks investment results that correspond to the performance of the NASDAQ AlphaDEXu00ae Mid Cap Growth Index. It focuses on mid-cap growth stocks selected and weighted based on growth factors.

Reputation and Reliability

First Trust is a well-established ETF issuer with a long track record in the market.

Management Expertise

First Trust Advisors L.P. has significant experience in managing ETFs, including quantitative strategies like AlphaDEXu00ae.

Goal

To replicate the performance of the NASDAQ AlphaDEXu00ae Mid Cap Growth Index.

Investment Approach and Strategy

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

Composition Primarily composed of mid-cap U.S. growth stocks.

Market Share: Information not available.

Total Net Assets (AUM): 1610000000

Key Competitors

• IWP
• VOT
• JKH

Competitive Landscape

The mid-cap growth ETF space is moderately competitive. FNY differentiates itself through its AlphaDEXu00ae methodology, which may offer superior returns but can also lead to higher turnover and potentially higher tax implications compared to market-cap-weighted alternatives. Other funds often offer lower expense ratios or a different sector exposure, providing investors with varied options.

Historical Performance: Historical performance data not available, but can be found on ETF provider websites.

Benchmark Comparison: The ETF aims to track the NASDAQ AlphaDEXu00ae Mid Cap Growth Index, so its performance is directly compared to that index.

Expense Ratio: 0.7

Average Trading Volume

The fund exhibits moderate liquidity, facilitating relatively easy entry and exit for investors.

Bid-Ask Spread

The bid-ask spread is typically competitive, reflecting reasonable trading costs.

Market Environment Factors

Economic growth, interest rate changes, and investor sentiment towards growth stocks all influence FNY's performance. Sector-specific growth prospects within the mid-cap universe also play a role.

Growth Trajectory

FNY's growth trajectory depends on the sustained performance of its quantitative stock selection model and the overall health of the mid-cap growth segment.

Competitive Edge

FNY's competitive edge lies in its proprietary AlphaDEXu00ae methodology, which selects and weights stocks based on growth factors, potentially leading to outperformance. The rules-based approach aims to reduce emotional biases in stock selection. This strategy can appeal to investors seeking active management within an ETF structure and might provide diversification benefits. However, it comes at a slightly higher expense ratio compared to passively managed index funds.

Volatility

FNY's volatility is expected to be moderate to high, consistent with growth-oriented investments.

Market Risk

FNY is exposed to market risk, especially related to the mid-cap growth sector. Economic downturns and shifts in investor sentiment can negatively impact its holdings.

Ideal Investor Profile

Investors seeking mid-cap growth exposure with a preference for a quantitative stock selection process.

Market Risk

Suitable for long-term investors with a moderate to high risk tolerance.

The First Trust Mid Cap Growth AlphaDEXu00ae Fund (FNY) offers exposure to mid-cap U.S. growth stocks selected and weighted by a quantitative, rules-based methodology. This ETF aims to outperform traditional market-cap-weighted indices, but this strategy has a slightly higher expense ratio. Investors should be aware of the moderately high volatility commonly seen with growth stocks and consider their risk tolerance before investing. The AlphaDEXu00ae methodology distinguishes it from competitors, appealing to investors looking for active management within an ETF structure.

Data Sources:

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

Disclaimers:

Data is for informational purposes only and should not be considered investment advice. Market share data may not be available or precise. Performance is not guaranteed.