Core Insights - The First Trust Multi Cap Growth AlphaDEX ETF (FAD) aims to provide broad exposure to the Style Box - All Cap Growth category and utilizes a smart beta strategy [1][5] - FAD is managed by First Trust Advisors and has accumulated over $365.95 million in assets, positioning it as an average-sized ETF in its category [5] - The ETF seeks to match the performance of the Nasdaq AlphaDEX Multi Cap Growth Index, which employs a stock selection methodology based on fundamental characteristics [6] Fund Characteristics - FAD has an annual operating expense ratio of 0.62%, which is competitive within its peer group, and a 12-month trailing dividend yield of 0.27% [7] - The ETF's largest sector allocation is in Industrials at approximately 24.1%, followed by Information Technology and Consumer Discretionary [8] - The top three individual holdings include Rocket Lab Corporation (0.64% of total assets), Vertiv Holdings Co, and Advanced Micro Devices, Inc., with the top 10 holdings comprising about 5.04% of total assets [9] Performance Metrics - Year-to-date, FAD has increased by roughly 20.33% and is up about 23.59% over the last 12 months as of October 28, 2025 [10] - The ETF has a beta of 1.15 and a standard deviation of 18.57% over the trailing three-year period, indicating a medium risk profile [10] - FAD holds approximately 677 stocks, effectively diversifying company-specific risk [10] Alternatives - Other ETFs in the same space include iShares Morningstar Growth ETF (ILCG) with $3.14 billion in assets and iShares Core S&P U.S. Growth ETF (IUSG) with $26.1 billion, both having an expense ratio of 0.04% [12] - Investors may consider traditional market cap weighted ETFs for potentially lower-risk options that aim to match returns in the Style Box - All Cap Growth segment [12]

Core Viewpoint - Bank of America has adopted a bullish stance on large-cap growth ETFs in its 2025 outlook, upgrading its category view from Neutral to Favorable and initiating coverage on 14 growth ETFs while refreshing ratings on five others [1][5][7]. Market Context - The upgrade occurs amidst a market dominated by tech, mega-cap, and AI stocks, with the concentration of the top stocks in the S&P 500 reaching unprecedented levels, driven by the "magnificent 7" [2][4]. - Despite high valuations, Bank of America believes that improved balance sheet quality and revenue growth could sustain the ongoing market rally [2]. ETF Performance - Large-cap growth ETFs like VUG and SCHG have seen significant inflows as investors pursue AI-driven earnings momentum [5]. - A total of 8 ETFs received the highest "1-FV" rating from Bank of America, indicating strong performance relative to other factors [9]. Risk Considerations - The market is currently facing additional risks, including potential government shutdowns, a weaker labor market, and possible fatigue from three years of continuous gains in the S&P 500 [4][7]. Rating Methodology - Bank of America evaluates ETFs based on various factors such as ROA, ROE, valuation, earnings growth, and expense ratios, with the best ETFs earning a "1-FV" rating and the worst receiving a "3-UF" rating [8][10].

Core Viewpoint - The American Century U.S. Quality Growth ETF (QGRO) is designed to provide broad exposure to the Style Box - All Cap Growth category, utilizing a smart beta strategy to potentially outperform traditional market cap weighted indexes [1][5]. Fund Overview - QGRO was launched on September 10, 2018, and is sponsored by American Century Investments [1][5]. - The fund has accumulated over $1.75 billion in assets, making it one of the largest ETFs in its category [5]. - It aims to match the performance of the American Century U.S. Quality Growth Index, which selects large and mid-cap U.S. companies with strong growth and quality fundamentals [5]. Cost Structure - QGRO has an annual operating expense of 0.29%, positioning it as one of the more affordable options in the smart beta ETF space [6]. - The fund's 12-month trailing dividend yield is 0.24% [6]. Sector Exposure and Holdings - The ETF has a significant allocation in the Information Technology sector, comprising approximately 36.2% of the portfolio [7]. - The top three sectors also include Industrials and Healthcare [7]. - Booking Holdings Inc (BKNG) is the largest individual holding at about 3.52% of total assets, followed by Meta Platforms Inc Class A (META) and Netflix Inc (NFLX) [8]. - The top 10 holdings account for around 27.32% of total assets under management [8]. Performance Metrics - As of July 17, 2025, QGRO has gained approximately 8.3% year-to-date and about 22.13% over the past year [10]. - The fund has traded between $80.24 and $109.93 in the last 52 weeks [10]. - QGRO has a beta of 1.10 and a standard deviation of 20.20% over the trailing three-year period, indicating a moderate level of risk [10]. - The fund holds about 189 securities, effectively diversifying company-specific risk [10]. Alternatives - While QGRO is a viable option for investors looking to outperform the Style Box - All Cap Growth segment, there are other ETFs available, such as iShares Morningstar Growth ETF (ILCG) and iShares Core S&P U.S. Growth ETF (IUSG) [11][12]. - ILCG has $2.8 billion in assets and an expense ratio of 0.04%, while IUSG has $23.75 billion in assets with the same expense ratio [12].