FAD - ETF AI Analysis

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First Trust Multi Cap Growth AlphaDEX Fund (FAD)

Rating:70Neutral

Price Target:―

FAD, the First Trust Multi Cap Growth AlphaDEX Fund, has a solid overall rating driven mainly by strong performers like Newmont Mining, Lam Research, Vertiv, AMD, and Comfort Systems, which show healthy financial results, positive earnings calls, and good growth prospects in areas like AI and advanced technologies. However, holdings such as FTAI and Rocket Lab, which face high leverage, cash flow issues, and valuation concerns, along with other names showing overvaluation risks, slightly hold back the fund’s rating. The main risk for this ETF is that many of its key holdings are growth-focused companies with high valuations and some financial or technical warning signs, which can make the fund more volatile.

Positive Factors

Strong Top Holdings

Many of the largest positions, such as FTAI Aviation, Lam Research, and Rocket Lab, have shown strong year-to-date performance, helping support the fund’s returns.

Broad Sector Diversification

The ETF spreads its investments across many sectors, including industrials, technology, health care, consumer cyclical, and financials, which helps reduce reliance on any single industry.

Solid Recent Performance Trend

The fund has delivered positive returns over the past month, three months, and year-to-date, indicating steady recent momentum.

Negative Factors

Higher-Than-Average Expense Ratio

The fund’s expense ratio is relatively high for an ETF, which means more of the returns are used to cover fees instead of going to investors.

Heavy U.S. Market Concentration

With almost all assets invested in U.S. companies, the ETF offers very limited geographic diversification and is highly tied to the U.S. market’s fortunes.

Growth and Cyclical Tilt

Large weights in growth-oriented and economically sensitive sectors like industrials, technology, and consumer cyclical can make the fund more vulnerable during market downturns or economic slowdowns.

FAD vs. SPDR S&P 500 ETF (SPY)

AUM389.74M

RegionNorth America

Expense Ratio0.64%

Beta1.11

IssuerFirst Trust

Inception DateMay 08, 2007

Dividend Yield0.09%

Asset ClassEquity

Index TrackedNASDAQ AlphaDEX Multi Cap Growth Index

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume12,389

30 Day Avg. Volume11,505

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

199.91

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering674

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

FAD Summary

The First Trust Multi Cap Growth AlphaDEX Fund (FAD) is an ETF that follows the NASDAQ AlphaDEX Multi Cap Growth Index, focusing on U.S. companies with strong growth potential across all sizes, from small to large. It spreads investments across many sectors, including industrials, technology, and health care. Well-known holdings include Advanced Micro Devices (AMD) and Caterpillar. Someone might invest in FAD to seek long-term growth while staying diversified across many different companies and industries. A key risk is that growth-focused stocks can be more volatile, so the fund’s value can rise and fall sharply with the market.

How much will it cost me?The expense ratio for the First Trust Multi Cap Growth AlphaDEX Fund (FAD) is 0.64%, which means you’ll pay $6.40 per year for every $1,000 invested. This is higher than average because the fund is actively managed, using a specialized stock selection process to target growth opportunities across the market. Active management typically involves more research and trading, which increases costs.

What would affect this ETF?The First Trust Multi Cap Growth AlphaDEX Fund (FAD) could benefit from continued innovation and growth in the technology and industrial sectors, which make up a significant portion of its holdings. However, rising interest rates or economic slowdowns in the U.S. could negatively impact growth-focused companies, particularly smaller firms that rely on borrowing or are more sensitive to market conditions. Regulatory changes or shifts in consumer demand could also influence the performance of key sectors like health care and consumer cyclical.

FAD Top 10 Holdings

FAD’s story is all about U.S. growth names with an industrial and tech tilt. On the upside, Lam Research and AMD are key engines, riding the AI and chip boom, while Comfort Systems, EMCOR, and Caterpillar give the fund a steady push from the industrial side. Rocket Lab adds a splash of high-octane space growth, but its profitability issues mean it can wobble the ride. Newmont offers a more defensive note, helping balance this otherwise growth-heavy, U.S.-focused lineup.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
STX	Seagate Tech	0.66%	$2.70M	$93.62B	334.56%	68 Neutral
FTAI	FTAI Aviation	0.60%	$2.45M	$27.96B	136.01%	58 Neutral
FIX	Comfort Systems	0.59%	$2.41M	$43.39B	176.10%	80 Outperform
LRCX	Lam Research	0.58%	$2.35M	$288.48B	173.83%	77 Outperform
COHR	Coherent Corp	0.56%	$2.30M	$42.69B	158.87%	66 Neutral
WWD	Woodward	0.56%	$2.28M	$23.16B	103.42%	79 Outperform
CAT	Caterpillar	0.56%	$2.27M	$339.85B	104.32%	76 Outperform
EME	EMCOR Group	0.55%	$2.22M	$34.22B	66.39%	73 Outperform
VRT	Vertiv Holdings	0.54%	$2.18M	$74.78B	60.62%	77 Outperform
GEV	GE Vernova Inc.	0.53%	$2.15M	$210.06B	108.19%	69 Neutral

FAD Technical Analysis

Technical Analysis Sentiment

Positive

Last Price―

Price Trends

50DMA

165.89

Positive

100DMA

163.24

Positive

200DMA

154.32

Positive

Market Momentum

MACD

0.26

Positive

RSI

55.82

Neutral

STOCH

47.54

Neutral

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FAD, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 168.65, equal to the 50-day MA of 165.89, and equal to the 200-day MA of 154.32, indicating a bullish trend. The MACD of 0.26 indicates Positive momentum. The RSI at 55.82 is Neutral, neither overbought nor oversold. The STOCH value of 47.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FAD.

FAD Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
FAD	―	―	$389.74M	0.64%	―
LSGR	―	―	$628.37M	0.59%	―
BASG	―	―	$454.73M	0.61%	―
GQGU	―	―	$395.86M	0.49%	―
FDG	―	―	$361.92M	0.45%	―
GSGO	―	―	$149.28M	0.45%	―

Performance Comparison

FAD

First Trust Multi Cap Growth AlphaDEX Fund

169.82

23.24

15.85%

LSGR

Natixis Loomis Sayles Focused Growth ETF

―

BASG

Brown Advisory Sustainable Growth ETF

―

GQGU

GQG US Equity ETF

―

FDG

American Century Focused Dynamic Growth ETF

―

GSGO

Goldman Sachs Growth Opportunities ETF

―

Glossary

BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―

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