The First Trust Small Cap Core AlphaDEX ETF (FYX) offers investors a chance to tap into small-cap stocks with potential growth.
Chicago: If you’re looking to dive into small-cap stocks, the First Trust Small Cap Core AlphaDEX ETF (FYX) might catch your eye. Launched in 2007, this ETF aims to give you broad exposure to the small-cap blend segment of the U.S. equity market.
Managed by First Trust Advisors, it has over $968 million in assets, making it a solid player in the small-cap space. Small-cap companies, which have market caps under $2 billion, can offer high growth potential, but they also come with more risk compared to larger companies.
This ETF holds a mix of growth and value stocks, which is why it’s called a blend. It’s essential to keep an eye on the expense ratio, as lower costs generally lead to better returns. FYX has an expense ratio of 0.61%, which is on the higher side for ETFs.
In terms of sector exposure, FYX leans heavily into Financials, which makes up about 21.20% of its portfolio. Other significant sectors include Industrials and Consumer Discretionary. Some of its top holdings are Rocket Lab USA, Brinker International, and CoreCivic.
When it comes to performance, FYX aims to track the Nasdaq AlphaDEX Small Cap Core Index. So far this year, it’s up about 1.13% and has seen a 20% increase over the past year. It trades between $86.33 and $110.53 in the last 52 weeks.
With a beta of 1.26, it’s considered a medium-risk option, and it has around 525 holdings to help spread out risk. If you’re curious about alternatives, you might also check out the iShares Russell 2000 ETF or the iShares Core S&P Small-Cap ETF, which have lower expense ratios.
Overall, FYX is a decent choice for long-term investors looking for exposure to small-cap stocks. Passively managed ETFs like this one are popular for their low costs and transparency. If you want to learn more about ETFs, check out resources that align with your investment goals.
