Should First Trust Mid Cap Growth AlphaDEX ETF (FNY) Be on Your Investing Radar?

Core Viewpoint - The First Trust Mid Cap Growth AlphaDEX ETF (FNY) offers broad exposure to the Mid Cap Growth segment of the US equity market, with a focus on companies that have a market capitalization between $2 billion and $10 billion, providing a balance of growth potential and stability [1][2]. Group 1: Fund Overview - FNY is a passively managed ETF launched on April 19, 2011, and is sponsored by First Trust Advisors, with assets exceeding $391.21 million [1]. - The ETF has an annual operating expense ratio of 0.7%, which is considered high compared to other products in the space, and a 12-month trailing dividend yield of 0.58% [4]. Group 2: Sector Exposure and Holdings - The ETF has the largest allocation to the Industrials sector, comprising approximately 22.9% of the portfolio, followed by Financials and Healthcare [5]. - Individual holdings include Hims & Hers Health, Inc. (HIMS) at about 1.07% of total assets, with the top 10 holdings accounting for roughly 9.63% of total assets under management [6]. Group 3: Performance Metrics - FNY aims to match the performance of the Nasdaq AlphaDEX Mid Cap Growth Index, having gained about 3.26% year-to-date and approximately 10.44% over the past year as of August 4, 2025 [7]. - The ETF has a beta of 1.14 and a standard deviation of 21.06% over the trailing three-year period, indicating a medium risk profile [8]. Group 4: Alternatives - Other ETFs in the Mid Cap Growth space include the Vanguard Mid-Cap Growth ETF (VOT) with $17.29 billion in assets and an expense ratio of 0.07%, and the iShares Russell Mid-Cap Growth ETF (IWP) with $19.86 billion in assets and an expense ratio of 0.23% [11]. Group 5: Investment Appeal - FNY holds a Zacks ETF Rank of 2 (Buy), making it an attractive option for investors seeking exposure to the Mid Cap Growth segment of the market [10]. - Passively managed ETFs like FNY are favored by both institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency [12].