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, earns a solid overall rating driven mainly by strong performers like Comfort Systems USA, Quanta Services, Woodward, Vertiv, and Lam Research, which show healthy financial results, positive earnings calls, and supportive technical trends, especially in growth areas like infrastructure and advanced technologies. The fund’s rating is held back somewhat by weaker names such as FTAI, which faces high leverage and negative cash flows, and by broader valuation concerns across several holdings, creating a key risk that many of its growth stocks may be relatively expensive and vulnerable if market conditions turn.

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)

AUM397.39M

RegionNorth America

Expense Ratio0.63%

Beta1.11

IssuerFirst Trust

Inception DateMay 08, 2007

Dividend Yield0.1%

Asset ClassEquity

Index TrackedNASDAQ AlphaDEX Multi Cap Growth Index

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume12,554

30 Day Avg. Volume13,961

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

201.29

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 right now is all about U.S. industrial and tech names doing the heavy lifting. Comfort Systems, Vertiv, and EMCOR are all rising, giving the fund a solid boost as demand for infrastructure and data-center-related services stays hot. On the tech side, Seagate and Lam Research are also climbing, helped by enthusiasm around AI and chips, though rich valuations could make the ride bumpier. FTAI Aviation is more mixed, occasionally losing altitude, but overall the fund leans on a diversified cast of U.S. growth workhorses rather than a single star.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
VRT	Vertiv Holdings	0.74%	$2.92M	$101.28B	196.86%	77 Outperform
FIX	Comfort Systems	0.69%	$2.73M	$50.05B	298.01%	80 Outperform
STX	Seagate Tech	0.67%	$2.64M	$88.71B	357.40%	68 Neutral
MTZ	MasTec	0.64%	$2.49M	$23.91B	140.59%	74 Outperform
COHR	Coherent Corp	0.64%	$2.49M	$48.22B	268.65%	66 Neutral
PWR	Quanta Services	0.62%	$2.42M	$85.58B	111.54%	78 Outperform
GEV	GE Vernova Inc.	0.60%	$2.35M	$231.38B	155.65%	69 Neutral
LRCX	Lam Research	0.60%	$2.35M	$280.61B	188.35%	77 Outperform
WWD	Woodward	0.56%	$2.20M	$22.21B	99.16%	79 Outperform
FTAI	FTAI Aviation	0.56%	$2.18M	$24.67B	120.61%	58 Neutral

FAD Technical Analysis

Technical Analysis Sentiment

Negative

Last Price―

Price Trends

50DMA

167.15

Negative

100DMA

164.44

Negative

200DMA

158.31

Positive

Market Momentum

MACD

-1.96

Positive

RSI

39.87

Neutral

STOCH

65.20

Neutral

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FAD, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 165.15, equal to the 50-day MA of 167.15, and equal to the 200-day MA of 158.31, indicating a neutral trend. The MACD of -1.96 indicates Positive momentum. The RSI at 39.87 is Neutral, neither overbought nor oversold. The STOCH value of 65.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FAD.

FAD Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
FAD	―	―	$397.39M	0.63%	70 Neutral
WINN	―	―	$998.12M	0.57%	73 Outperform
LSGR	―	―	$722.68M	0.59%	74 Outperform
GQGU	―	―	$521.19M	0.49%	71 Outperform
BASG	―	―	$443.34M	0.61%	71 Outperform
FDG	―	―	$343.34M	0.45%	71 Outperform

Performance Comparison

FAD

First Trust Multi Cap Growth AlphaDEX Fund

160.91

29.67

22.61%

WINN

Harbor Long-Term Growers ETF

―

LSGR

Natixis Loomis Sayles Focused Growth ETF

―

GQGU

GQG US Equity ETF

―

BASG

Brown Advisory Sustainable Growth ETF

―

FDG

American Century Focused Dynamic Growth 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.

DisclaimerThis 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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