Core Viewpoint - The First Trust Small Cap Growth AlphaDEX ETF (FYC) is designed to provide broad exposure to the small-cap growth segment of the market, utilizing a smart beta strategy to potentially outperform traditional market-cap weighted indexes [1][5]. Fund Overview - FYC was launched on April 19, 2011, and is managed by First Trust Advisors, with total assets exceeding $457.6 million, categorizing it as an average-sized ETF in its segment [1][5]. - The ETF aims to match the performance of the Nasdaq AlphaDEX Small Cap Growth Index, which employs a stock selection methodology based on fundamental characteristics [5]. Cost Structure - The annual operating expenses for FYC are 0.71%, making it one of the more expensive options in the small-cap growth ETF space [6]. - The ETF has a 12-month trailing dividend yield of 0.61% [6]. Sector Exposure and Holdings - The ETF has a significant allocation in the Financials sector, comprising approximately 21.9% of the portfolio, followed by Industrials and Healthcare [7]. - Sezzle Inc. (SEZL) is the largest individual holding at about 2.86% of total assets, with the top 10 holdings accounting for around 12.34% of total assets under management [8]. Performance Metrics - Year-to-date, FYC has gained approximately 3.35%, and over the last 12 months, it has increased by about 13.91% as of July 30, 2025 [10]. - The ETF has a beta of 1.16 and a standard deviation of 22.33% over the trailing three-year period, indicating a higher risk profile [10]. Alternatives - Other ETFs in the small-cap growth space include the iShares Russell 2000 Growth ETF (IWO) and the Vanguard Small-Cap Growth ETF (VBK), which have significantly larger asset bases and lower expense ratios [12].

Core Viewpoint - The First Trust Small Cap Growth AlphaDEX ETF (FYC) is designed to provide broad exposure to the Small Cap Growth segment of the US equity market, with a focus on growth stocks that have higher potential but also higher risks [1][2][3]. Fund Overview - Launched on April 19, 2011, FYC has accumulated assets exceeding $462.95 million, positioning it as an average-sized ETF in its category [1]. - The ETF has an annual operating expense ratio of 0.71%, which is considered high compared to other funds in the space [4]. Sector Exposure and Holdings - The ETF has a significant allocation to the Financials sector, comprising approximately 22.10% of the portfolio, followed by Industrials and Healthcare [5]. - Sezzle Inc. (SEZL) is the largest individual holding at about 2.86% of total assets, with the top 10 holdings accounting for roughly 12.34% of total assets under management [6]. Performance Metrics - FYC aims to match the performance of the Nasdaq AlphaDEX Small Cap Growth Index, with a year-to-date return of approximately 4.59% and a one-year return of about 16.76% as of July 25, 2025 [7]. - The ETF has a beta of 1.16 and a standard deviation of 22.36% over the trailing three-year period, indicating a higher risk profile [8]. Alternatives - Other ETFs in the same space include the iShares Russell 2000 Growth ETF (IWO) with $11.90 billion in assets and an expense ratio of 0.24%, and the Vanguard Small-Cap Growth ETF (VBK) with $19.60 billion in assets and an expense ratio of 0.07% [11]. Conclusion - FYC is a viable option for long-term investors seeking exposure to small-cap growth stocks, benefiting from low costs, transparency, and tax efficiency typical of passively managed ETFs [12].