Launched on 05/08/2007, the First Trust Small Cap Core AlphaDEX ETF (FYX) is a passively managed exchange traded fund designed to provide a broad exposure to the Small Cap Blend segment of the US equity market.
The fund is sponsored by First Trust Advisors. It has amassed assets over $841.68 million, making it one of the average sized ETFs attempting to match the Small Cap Blend segment of the US equity market.
Why Small Cap Blend
With more potential comes more risk, and small cap companies, with market capitalization below $2 billion, epitomizes this way of thinking.
Typically holding a combination of both growth and value stocks, blend ETFs also demonstrate qualities seen in value and growth investments.
Costs
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.61%, making it one of the more expensive products in the space.
It has a 12-month trailing dividend yield of 1.21%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. 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 23.90% of the portfolio. Industrials and Consumer Discretionary round out the top three.
Looking at individual holdings, Sezzle Inc. (SEZL) accounts for about 1.20% of total assets, followed by Dave Inc. (class A) (DAVE) and Centrus Energy Corp. (class A) (LEU).
The top 10 holdings account for about 6.29% of total assets under management.
Performance and Risk
FYX 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 lost about -0.04% so far this year and was up about 4.83% in the last one year (as of 07/25/2025). In the past 52-week period, it has traded between $79.22 and $110.53.
The ETF has a beta of 1.12 and standard deviation of 22.18% for the trailing three-year period, making it a medium risk choice in the space. With about 525 holdings, it effectively diversifies company-specific risk.
Alternatives
First 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 Vanguard Small-Cap ETF (VB) and the iShares Core S&P Small-Cap ETF (IJR) track a similar index. While Vanguard Small-Cap ETF has $65.51 billion in assets, iShares Core S&P Small-Cap ETF has $82.09 billion. VB has an expense ratio of 0.05% and IJR charges 0.06%.
Bottom-Line
While 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.
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First Trust Small Cap Core AlphaDEX ETF (FYX): ETF Research Reports Dave Inc. (DAVE): Free Stock Analysis Report iShares Core S&P Small-Cap ETF (IJR): ETF Research Reports Vanguard Small-Cap ETF (VB): ETF Research Reports Centrus Energy Corp. (LEU): Free Stock Analysis Report Sezzle Inc. (SEZL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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