First Trust Mid Cap Growth AlphaDEX® Fund (FNY)

Overview

The First Trust Mid Cap Growth AlphaDEXu00ae Fund (FNY) seeks investment results that correspond generally to the price and yield of an equity index called the NASDAQ AlphaDEXu00ae Mid Cap Growth Index. The fund uses the AlphaDEXu00ae stock selection methodology to identify and weight stocks, focusing on growth characteristics within the mid-cap market segment.

Reputation and Reliability

First Trust is a well-established ETF provider with a history of offering innovative investment strategies.

Management Expertise

First Trust Advisors L.P. has a team of experienced portfolio managers and analysts.

Goal

Seeks investment results that correspond generally to the price and yield 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 based on growth factors.

Composition The ETF primarily holds a diversified portfolio of mid-cap growth stocks selected based on the AlphaDEX methodology.

Market Share: FNY's market share varies depending on the specific mid-cap growth ETF universe considered.

Total Net Assets (AUM): 250.97

Key Competitors

• IWP
• JHML
• VOT

Competitive Landscape

The mid-cap growth ETF market is competitive, with several established players. FNY distinguishes itself through its AlphaDEXu00ae methodology, which may provide a performance advantage. However, it must compete with larger, more liquid ETFs like IWP. FNY advantages: quantitative selection method, smaller fund gives more opportunity to grow with sector. FNY disadvantages: Higher expense ratio, smaller fund may make liquidity an issue.

Historical Performance: Historical performance data should be sourced from reliable financial data providers, such as Morningstar or ETF.com.

Benchmark Comparison: Comparison against the NASDAQ AlphaDEXu00ae Mid Cap Growth Index is crucial to assess the fund's performance.

Expense Ratio: 0.7

Average Trading Volume

The average daily trading volume fluctuates with market conditions, so you should look at the most recent data for the current number of shares traded daily to assess the liquidity of the fund.

Bid-Ask Spread

The bid-ask spread is typically small but can widen during periods of market volatility so current data should be observed.

Market Environment Factors

Economic growth, interest rates, and sector-specific trends can influence the performance of mid-cap growth stocks. Additionally, investor sentiment towards growth stocks plays a key role.

Growth Trajectory

FNY's growth trajectory depends on the performance of its underlying holdings and the continued application of the AlphaDEXu00ae methodology. Monitor changes in holdings and strategy adjustments.

Competitive Edge

FNY's competitive edge lies in its proprietary AlphaDEXu00ae methodology, which aims to identify and select stocks with strong growth potential. This quantitative approach differentiates it from passively managed index funds. The fund's focus on mid-cap growth provides targeted exposure to a specific market segment, potentially offering higher growth opportunities. First Trust's reputation as an innovative ETF provider further strengthens FNY's position.

Volatility

Mid-cap growth stocks are generally more volatile than large-cap stocks, so FNY's price may fluctuate more significantly.

Market Risk

FNY is subject to market risk, meaning its value can decline due to overall market conditions or negative sentiment towards growth stocks.

Ideal Investor Profile

Investors seeking targeted exposure to mid-cap growth stocks with the potential for above-average returns may find FNY suitable.

Market Risk

FNY may be appropriate for long-term investors with a higher risk tolerance and a desire for growth-oriented investments. It may not be suitable for risk-averse investors or those seeking stable income.

First Trust Mid Cap Growth AlphaDEXu00ae Fund (FNY) aims to track the NASDAQ AlphaDEXu00ae Mid Cap Growth Index using a proprietary stock selection methodology focused on growth factors. It offers targeted exposure to mid-cap growth stocks, potentially leading to higher returns but also greater volatility. FNY's competitive edge comes from its quantitative AlphaDEXu00ae approach, differentiating it from passive index funds. It's suitable for investors with a higher risk tolerance and a long-term investment horizon, seeking capital appreciation in the mid-cap growth segment. However, investors should consider its expense ratio and the risks associated with mid-cap growth stocks.

Data Sources:

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

Disclaimers:

This analysis is for informational purposes only and does not constitute financial advice. Investment decisions should be based on individual circumstances and consultation with a qualified financial advisor. Data may be subject to change.