Should First Trust Small Cap Core AlphaDEX ETF (FYX) Be on Your Investing Radar?

If you're interested in broad exposure to the Small Cap Blend segment of the US equity market, look no further than the First Trust Small Cap Core AlphaDEX ETF (FYX), a passively managed exchange traded fund launched on 05/08/2007.The fund is sponsored by First Trust Advisors. It has amassed assets over $1.01 billion, making it one of the average sized ETFs attempting to match the Small Cap Blend segment of the US equity market.Why Small Cap BlendSmall cap companies have market capitalization below $2 billion. They usually have higher potential than large and mid cap companies with stocks but higher risk.Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.CostsCost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.Annual operating expenses for this ETF are 0.60%, making it one of the more expensive products in the space.It has a 12-month trailing dividend yield of 1.30%.Sector Exposure and Top HoldingsIt is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.This ETF has heaviest allocation to the Financials sector--about 22.70% of the portfolio. Industrials and Consumer Discretionary round out the top three.Looking at individual holdings, Adma Biologics, Inc. (ADMA) accounts for about 0.52% of total assets, followed by Zeta Global Holdings Corp. (class A) (ZETA) and Powell Industries, Inc. (POWL).The top 10 holdings account for about 4.38% of total assets under management.Performance and RiskFYX seeks to match the performance of the Nasdaq AlphaDEX Small Cap Core Index before fees and expenses. The NASDAQ AlphaDEX Small Cap Core Index is an enhanced index which employs the AlphaDEX stock selection methodology to select stocks from the NASDAQ US 700 Small Cap Index.The ETF has gained about 20.25% so far this year and it's up approximately 41.72% in the last one year (as of 11/12/2024). In the past 52-week period, it has traded between $77.90 and $109.09.The ETF has a beta of 1.23 and standard deviation of 22.68% for the trailing three-year period, making it a medium risk choice in the space. With about 527 holdings, it effectively diversifies company-specific risk.AlternativesFirst Trust Small Cap Core AlphaDEX ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, FYX is a reasonable option for those seeking exposure to the Style Box - Small Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.The iShares Russell 2000 ETF (IWM) and the iShares Core S&P Small-Cap ETF (IJR) track a similar index. While iShares Russell 2000 ETF has $79.55 billion in assets, iShares Core S&P Small-Cap ETF has $93.84 billion. IWM has an expense ratio of 0.19% and IJR charges 0.06%.Bottom-LineWhile an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.Want key ETF info delivered straight to your inbox?Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.Get it free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report First Trust Small Cap Core AlphaDEX ETF (FYX): ETF Research Reports iShares Russell 2000 ETF (IWM): ETF Research Reports Powell Industries, Inc. (POWL): Free Stock Analysis Report ADMA Biologics Inc (ADMA): Free Stock Analysis Report iShares Core S&P Small-Cap ETF (IJR): ETF Research Reports Zeta Global Holdings Corp. (ZETA): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks