Is First Trust Small Cap Growth AlphaDEX ETF a Strong ETF Right Now?

Launched on 04/19/2011, the First Trust Small Cap Growth AlphaDEX ETF (NASDAQ: FYC) is a smart beta exchange traded fund offering broad exposure to the Style Box - Small Cap Growth category of the market.

What Are Smart Beta ETFs?

The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.

Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.

There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.

Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.

Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.

Fund Sponsor & Index

The fund ...

https://www.benzinga.com/news/large-cap/24/09/40896141/is-first-trust-small-cap-growth-alphadex-etf-a-strong-etf-right-now