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FYC - ETF AI Analysis

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FYC

First Trust Small Cap Growth AlphaDEX Fund (FYC)

Rating:65Neutral
Price Target:
FYC, the First Trust Small Cap Growth AlphaDEX Fund, has a solid but not top-tier rating, driven mainly by strong contributors like Powell Industries, Argan, DigitalOcean, and Vicor, which show healthy financial performance, positive earnings outlooks, and strategic growth initiatives. These strengths are partly offset by weaker holdings such as Calumet and Applied Optoelectronics, where profitability and leverage issues create drag, and by several companies with stretched valuations or ongoing financial challenges. The main risk factor is the fund’s exposure to smaller growth companies that often face profitability pressures and higher valuation risk, which can make returns more volatile.
Positive Factors
Strong Recent Performance
The ETF has shown strong gains so far this year and in recent months, indicating positive momentum in its small-cap growth strategy.
Well-Diversified Across Sectors
Holdings are spread across many industries, with meaningful exposure to health care, industrials, and technology, which helps reduce reliance on any single sector.
Multiple Strong-Performing Top Holdings
Several of the largest positions, such as Avis Budget and Applied Optoelectronics, have delivered strong year-to-date gains that support the fund’s overall results.
Negative Factors
High 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. 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.
Small-Cap Volatility Risk
Because the fund focuses on small-cap growth stocks, investors should be prepared for potentially larger price swings compared with funds that hold bigger, more established companies.

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

FYC Summary

The First Trust Small Cap Growth AlphaDEX Fund (FYC) is an ETF that follows the NASDAQ AlphaDEX Small Cap Growth Index, focusing on smaller U.S. companies with strong growth potential. It spreads investments across many sectors, including health care, industrials, and technology. Some of its holdings include Avis Budget and MaxLinear. An investor might choose this fund to seek higher long-term growth and to diversify beyond large, well-known companies. However, small-cap stocks can be more volatile, so the fund’s value can rise and fall more sharply than the overall market.
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

FYC is leaning into U.S. small-cap growth with a clear tilt toward health care and tech, and that’s where much of the action is. Biotech names like Relay Therapeutics and Tango Therapeutics have been rising, helping power the fund even as they wrestle with ongoing losses. On the tech side, Bel Fuse and MaxLinear are adding some spark, with improving sentiment despite lingering profitability worries. Avis Budget is also pulling its weight, but its heavy debt load means it can quickly shift from tailwind to turbulence for this concentrated small-cap mix.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Maxlinear1.34%$13.78M$5.40B408.87%
60
Neutral
Applied Optoelectronics0.97%$9.99M$12.80B1015.38%
52
Neutral
AnaptysBio0.89%$9.12M$1.69B212.19%
49
Neutral
Inhibrx Biosciences Inc0.88%$9.08M$1.89B964.37%
62
Neutral
Relay Therapeutics0.85%$8.71M$2.86B358.59%
59
Neutral
Kaiser Aluminum0.82%$8.42M$2.91B171.73%
76
Outperform
Custom Truck One Source0.75%$7.75M$1.98B111.57%
50
Neutral
Amprius Technologies Inc0.72%$7.37M$2.83B743.31%
51
Neutral
Bel Fuse Inc0.72%$7.35M$3.45B267.12%
73
Outperform
EZCORP0.71%$7.32M$1.97B96.44%
75
Outperform

FYC Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
101.77
Positive
100DMA
100.77
Positive
200DMA
94.82
Positive
Market Momentum
MACD
2.95
Negative
RSI
68.73
Neutral
STOCH
60.95
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 107.25, equal to the 50-day MA of 101.77, and equal to the 200-day MA of 94.82, indicating a bullish trend. The MACD of 2.95 indicates Negative momentum. The RSI at 68.73 is Neutral, neither overbought nor oversold. The STOCH value of 60.95 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
$1.05B0.70%
65
Neutral
$7.87B0.18%
64
Neutral
$7.40B0.30%
68
Neutral
$7.18B0.18%
69
Neutral
$4.42B0.15%
69
Neutral
$1.36B0.06%
64
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FYC
First Trust Small Cap Growth AlphaDEX Fund
112.25
42.20
60.24%
IJS
iShares S&P Small-Cap 600 Value ETF
DFSV
Dimensional US Small Cap Value ETF
IJT
iShares S&P Small-Cap 600 Growth ETF
SLYG
SPDR S&P 600 Small Cap Growth ETF
VTWG
Vanguard Russell 2000 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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