FYC - ETF AI Analysis

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First Trust Small Cap Growth AlphaDEX Fund (FYC)

Rating:64Neutral

Price Target:―

The First Trust Small Cap Growth AlphaDEX Fund (FYC) has a moderate overall rating, reflecting a mix of strengths and challenges among its holdings. Enova International stands out as a key contributor, with strong financial performance and strategic actions like acquisitions and share buybacks supporting the fund's score. However, weaker holdings such as Travere Therapeutics and Planet Labs PBC, which face profitability and valuation challenges, have likely weighed on the ETF's rating. A primary risk factor for this fund is its exposure to companies with significant financial and operational challenges, which could impact long-term performance.

Positive Factors

Strong Top Holdings

Several of the ETF’s top holdings, such as GRAIL Inc and Navitas Semiconductor, have delivered strong year-to-date performance, boosting overall returns.

Sector Diversification

The ETF is spread across multiple sectors, including Health Care, Industrials, and Technology, reducing reliance on any single industry.

Healthy Year-to-Date Performance

The fund has shown solid year-to-date performance, indicating strong momentum in its holdings.

Negative Factors

High Expense Ratio

The ETF charges a relatively high expense ratio compared to many other funds, which can eat into investor returns over time.

Overwhelming U.S. Exposure

With nearly all assets concentrated in U.S. companies, the fund lacks geographic diversification and is vulnerable to domestic market risks.

Small Cap Volatility

The focus on small-cap stocks increases the potential for higher volatility and risk during market downturns.

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

AUM749.33M

RegionNorth America

Expense Ratio0.70%

Beta1.13

IssuerFirst Trust

Inception DateApr 19, 2011

Dividend Yield0.23%

Asset ClassEquity

Index TrackedNASDAQ AlphaDEX Small Cap Growth Index

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume40,879

30 Day Avg. Volume49,610

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

120.88

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering261

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

FYC Summary

The First Trust Small Cap Growth AlphaDEX Fund (FYC) is an ETF that focuses on small-cap companies in the U.S. with strong growth potential. It follows the NASDAQ AlphaDEX Small Cap Growth Index, which uses a unique strategy to select stocks based on growth factors. Some of its holdings include companies like Praxis Precision Medicines and Microvast Holdings. Investors might consider FYC for its potential to deliver high growth and diversify their portfolio with smaller, dynamic companies. However, it’s important to note that small-cap stocks can be more volatile, meaning their prices may rise and fall more dramatically than larger, established companies.

How much will it cost me?The expense ratio for the First Trust Small Cap Growth AlphaDEX Fund (FYC) is 0.7%, which means you’ll pay $7 per year for every $1,000 invested. This is higher than average because the fund uses an actively managed strategy to select stocks based on growth factors, rather than passively tracking an index.

What would affect this ETF?The First Trust Small Cap Growth AlphaDEX Fund (FYC) could benefit from strong economic growth in the U.S., which often supports small-cap companies, as well as advancements in sectors like health care, technology, and industrials where the ETF has significant exposure. However, rising interest rates or economic slowdowns could negatively impact small-cap growth stocks, as these companies often rely on borrowing to fund expansion and are more sensitive to market volatility. Regulatory changes in key sectors like health care or technology could also pose risks to the fund’s performance.

FYC Top 10 Holdings

The First Trust Small Cap Growth AlphaDEX Fund (FYC) leans heavily into health care and industrials, with a notable focus on U.S.-based small-cap stocks. Health care names like Praxis Precision Medicines and Arrowhead Pharmaceuticals are rising on strong technical momentum and promising pipeline developments, giving the fund a boost. However, lagging performance from holdings like Arcutis Biotherapeutics and Avadel Pharmaceuticals, weighed down by profitability concerns, is holding back broader gains. While the fund’s diversified approach captures growth potential across sectors, its concentration in health care highlights both opportunities and risks tied to innovation and financial stability.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
PRAX	Praxis Precision Medicines	1.81%	$14.12M	$6.92B	253.71%	58 Neutral
ARWR	Arrowhead Pharmaceuticals	1.09%	$8.50M	$8.68B	227.59%	57 Neutral
CDTX	Cidara Therapeutics	1.09%	$8.48M	$6.96B	725.51%	60 Neutral
PL	Planet Labs PBC	0.97%	$7.56M	$6.71B	390.60%	57 Neutral
ARQT	Arcutis Biotherapeutics	0.95%	$7.35M	$3.70B	105.30%	60 Neutral
TVTX	Travere Therapeutics	0.94%	$7.32M	$3.41B	103.69%	56 Neutral
ATEC	Alphatec Holdings	0.86%	$6.69M	$3.15B	126.25%	57 Neutral
LMND	Lemonade	0.85%	$6.59M	$5.74B	99.30%	60 Neutral
ENVA	Enova International	0.83%	$6.47M	$4.02B	64.12%	71 Outperform
GSAT	Globalstar	0.83%	$6.47M	$8.13B	95.07%	58 Neutral

FYC Technical Analysis

Technical Analysis Sentiment

Positive

Last Price―

Price Trends

50DMA

94.97

Positive

100DMA

92.09

Positive

200DMA

83.19

Positive

Market Momentum

MACD

0.87

Positive

RSI

59.34

Neutral

STOCH

35.55

Neutral

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FYC, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 97.58, equal to the 50-day MA of 94.97, and equal to the 200-day MA of 83.19, indicating a bullish trend. The MACD of 0.87 indicates Positive momentum. The RSI at 59.34 is Neutral, neither overbought nor oversold. The STOCH value of 35.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FYC.

FYC Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
FYC	―	―	$749.33M	0.70%	―
FYX	―	―	$933.66M	0.60%	―
VIOG	―	―	$829.56M	0.10%	―
ISCG	―	―	$807.86M	0.06%	―
JSML	―	―	$257.71M	0.30%	―
RZG	―	―	$103.28M	0.35%	―

Performance Comparison

FYC

First Trust Small Cap Growth AlphaDEX Fund

99.12

21.64

27.93%

FYX

First Trust Small Cap Core AlphaDEX Fund

―

VIOG

Vanguard S&P Small-Cap 600 Growth ETF

―

ISCG

iShares Morningstar Small-Cap Growth ETF

―

JSML

Janus Henderson Small Cap Growth Alpha ETF

―

RZG

Invesco S&P Smallcap 600 Pure 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.

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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