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First Trust Small Cap Growth AlphaDEX® Fund (FYC)
  • Important Notice Regarding Change in Investment Objective.
    On or about April 8, 2016, the Fund will seek investment results that correspond generally to the price and yield (before the Fund’s fees and expenses) of an equity index called the NASDAQ AlphaDEX® Small Cap Growth Index (the “New Index”). The New Index is a modified equal dollar-weighted index developed and maintained by The NASDAQ OMX Group, Inc. that is designed to generate positive alpha relative to traditional passive-style indices through the use of the AlphaDEX® selection methodology. Accordingly, after the Fund changes to the New Index, the shares of the Fund will cease to be listed on NYSE Arca and instead be listed and trade on The NASDAQ Stock Market, LLC under the same ticker symbol.
Investment Objective/Strategy - The First Trust Small Cap Growth AlphaDEX® Fund is an exchange-traded fund. The investment objective of the Fund is to seek investment results that correspond generally to the price and yield, before the Fund's fees and expenses, of an equity index called the Defined Small Cap Growth Index.
There can be no assurance that the Fund's investment objectives will be achieved.
  • The Defined Small Cap Growth Index is an “enhanced” index created and administered by Standard & Poor’s which employs the AlphaDEX® stock selection methodology to select stocks from the S&P SmallCap 600 Growth Index.
  • Standard & Poor’s constructs the Defined Small Cap Growth Index by ranking the stocks from the S&P SmallCap 600 Growth Index against all the stocks in the S&P 600 Index on growth factors including 3-, 6- and 12-month price appreciation, sales to price and one year sales growth, and separately on value factors including book value to price, cash flow to price and return on assets.
  • Stocks which are classified solely as growth, based on S&P style designations, receive their score from the above growth factors.
  • Stocks which S&P allocates between both growth and value receive their best score between the above growth and value factors. Only those that receive a higher growth score are eligible for inclusion in the Defined Small Cap Growth Index.
  • The remaining stocks are then ranked according to their score. The bottom 25% is eliminated and the top 75% is selected for the Defined Small Cap Growth Index.
  • The selected stocks are divided into quintiles based on their rankings and the top ranked quintiles receive a higher weight within the index. The stocks are equally-weighted within each quintile.
  • The index is reconstituted and rebalanced quarterly.
Fund Overview
Fund TypeSmall Cap Growth
Investment AdvisorFirst Trust Advisors L.P.
Investor Servicing AgentBank of New York Mellon
Fiscal Year-End07/31
ExchangeNYSE Arca
Inception Price$20.08
Inception NAV$20.08
Rebalance FrequencyQuarterly
Expense Ratio0.70%
Current Fund Data (as of 2/8/2016)
Closing NAV1$26.41
Closing Share Price2$26.44
Bid/Ask Midpoint$26.40
Bid/Ask Discount0.03%
Total Net Assets$59,415,825
Outstanding Shares2,250,002
Daily Volume23,662
Average 30-Day Daily Volume42,357
Closing Share Price 52-Week High/Low$32.68 / $26.44
Closing NAV 52-Week High/Low$32.67 / $26.41
Number of Holdings200
Fund Characteristics (as of 1/29/2016)8
Maximum Market Cap.$4,798
Median Market Cap.$1,180
Minimum Market Cap.$233
Price/Cash Flow15.52
Top Holdings (as of 2/9/2016)
Holding Percent
Fabrinet 1.16%
Francesca's Holdings Corporation 0.96%
ExlService Holdings, Inc. 0.95%
United Fire Group, Inc. 0.93%
Hawaiian Holdings, Inc. 0.92%
Mercury Systems, Inc. 0.92%
Prestige Brands Holdings Inc. 0.92%
The Providence Service Corporation 0.91%
Heartland Payment Systems, Inc. 0.90%
Core-Mark Holding Company, Inc. 0.89%

Holdings are subject to change.

NAV History (Since Inception)
Past performance is not indicative of future results.
Overall Morningstar RatingTM (as of 1/31/2016)3

Among 660 funds in the Small Growth category. This fund was rated 4 stars/660 funds (3 years).
Distribution Information
Dividend per Share Amt4$0.0468
30-Day SEC Yield (as of 1/29/2016)50.29%
12-Month Distribution Rate (as of 1/29/2016)60.23%
Index Yield (as of 1/29/2016)71.02%
Bid/Ask Midpoint vs. NAV (as of 12/31/2015)
Number of Days Bid/Ask Midpoint Above NAV
Quarter Ended 0-49
Basis Points
Basis Points
Basis Points
Basis Points
12/31/2015 46 0 0 0
9/30/2015 45 0 0 0
6/30/2015 56 0 0 0
3/31/2015 46 0 0 0
Number of Days Bid/Ask Midpoint Below NAV
Quarter Ended 0-49
Basis Points
Basis Points
Basis Points
Basis Points
12/31/2015 18 0 0 0
9/30/2015 19 0 0 0
6/30/2015 7 0 0 0
3/31/2015 15 0 0 0

The price used to calculate market return is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange, on which shares of the Fund are listed for trading, as of the time that the Fund's NAV is calculated.

Top Sector Exposure (as of 2/9/2016)
Health Care 21.41%
Information Technology 19.71%
Financials 17.72%
Industrials 16.47%
Consumer Discretionary 13.14%
Consumer Staples 3.33%
Materials 3.18%
Telecommunication Services 3.10%
Energy 1.14%
Utilities 0.80%
Month End Performance (as of 1/29/2016)
  3 Mos YTD 1 Year 3 Year 5 Year 10 Year Since
Fund Performance *
Net Asset Value (NAV) -8.37% -7.19% -3.08% 7.76% N/A N/A 7.58%
After Tax Held -8.43% -7.19% -3.17% 7.72% N/A N/A 7.52%
After Tax Sold -4.73% -4.07% -1.74% 6.00% N/A N/A 5.93%
Market Price -8.40% -7.22% -3.08% 7.73% N/A N/A 7.57%
Index Performance **
Defined Small Cap Growth Index -8.18% -7.09% -2.28% 8.67% N/A N/A 8.45%
S&P SmallCap 600 Growth Index -8.14% -6.44% -2.08% 10.35% N/A N/A 9.94%
Quarter End Performance (as of 12/31/2015)
  3 Mos YTD 1 Year 3 Year 5 Year 10 Year Since
Fund Performance *
Net Asset Value (NAV) 4.62% 1.78% 1.78% 12.69% N/A N/A 9.45%
After Tax Held 4.55% 1.69% 1.69% 12.64% N/A N/A 9.38%
After Tax Sold 2.61% 1.01% 1.01% 9.91% N/A N/A 7.43%
Market Price 4.62% 1.78% 1.78% 12.70% N/A N/A 9.45%
Index Performance **
Defined Small Cap Growth Index 4.82% 2.61% 2.61% 13.62% N/A N/A 10.32%
S&P SmallCap 600 Growth Index 3.79% 2.78% 2.78% 15.06% N/A N/A 11.70%
3-Year Statistics (as of 1/29/2016)
  Standard Deviation Alpha Beta Sharpe Ratio Correlation
FYC 14.87% -2.88 1.06 0.56 0.99
S&P SmallCap 600 Growth Index 13.84% --- 1.00 0.76 1.00
Standard Deviation is a measure of price variability (risk). Alpha is an indication of how much an investment outperforms or underperforms on a risk-adjusted basis relative to its benchmark.Beta is a measure of price variability relative to the market. Sharpe Ratio is a measure of excess reward per unit of volatility. Correlation is a measure of the similarity of performance.

*Performance data quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares when sold or redeemed, may be worth more or less than their original cost.

After Tax Held returns represent return after taxes on distributions. Assumes shares have not been sold. After Tax Sold returns represent the return after taxes on distributions and the sale of fund shares. Returns do not represent the returns you would receive if you traded shares at other times. Market Price returns are based on the midpoint of the bid/ask spread. Returns are average annualized total returns, except those for periods of less than one year, which are cumulative.

After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on the investor’s tax situation and may differ from those shown. The after-tax returns shown are not relevant to investors who hold their fund shares through tax-deferred arrangements such as 401(k) plans or individual retirement accounts.

**Performance information for the Defined Small Cap Growth Index is for illustrative purposes only and does not represent actual fund performance.
Indexes do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the performance shown. Indexes are unmanaged and an investor cannot invest directly in an index.
The expense ratio for this fund is 0.70%.

S&P SmallCap 600 Growth Index - The Index contains those stocks with growth characteristics from the 600 stocks used to measure small cap U.S. stock market performance.

1 The NAV represents the fund's net assets (assets less liabilities) divided by the fund's outstanding shares .
2 Fund shares are purchased and sold on an exchange at their share price rather than net asset value (NAV), which may cause the shares to trade at a price greater than NAV (premium) or less than NAV (discount).
The Morningstar RatingTM is provided for those exchange-traded funds ("ETFs") with at least a three-year history. Ratings are based on the ETF's Morningstar Risk-Adjusted Return measure which accounts for variation in monthly performance, placing more emphasis on downward variations and rewarding consistent performance. An ETF's risk-adjusted return includes a brokerage commission estimate. This estimate is intended to reflect what an average investor would pay when buying or selling an ETF. PLEASE NOTE, this estimate is subject to change and the actual brokerage commission an investor pays may be higher or lower than this estimate. Morningstar compares each ETF's risk-adjusted return to the open-end mutual fund rating breakpoints for that category. Consistent with the open-end mutual fund ratings, the top 10% of ETFs in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. The overall rating for an ETF is based on a weighted average of the time-period ratings (e.g., the ETF's 3,5, and 10 year rating). The determination of an ETF's rating does not affect the retail open end mutual fund data published by Morningstar. Past performance is no guarantee of future results.
4 Most recent distribution paid or declared to today's date. Subject to change in the future. There is no guarantee that the fund will declare dividends.
5 The 30-day SEC yield is calculated by dividing the net investment income per share earned during the most recent 30-day period by the maximum offering price per share on the last day of the period and includes the effects of fee waivers and expense reimbursements, if applicable.
6 12-Month Distribution Rate is calculated by dividing the sum of the fund's trailing 12-month ordinary distributions paid or declared by the NAV price. Distribution rates may vary.
7 Index yield represents the weighted average trailing 12-month dividend of the constituents of the Defined Small Cap Growth Index.
8 All market capitalization numbers are in USD$ Millions.
9 Inception Date is 4/19/2011

You should consider the fund's investment objectives, risks, and charges and expenses carefully before investing. You can download a prospectus or summary prospectus, or contact First Trust Portfolios L.P. at 1-800-621-1675 to request a prospectus or summary prospectus which contains this and other information about the fund. The prospectus or summary prospectus should be read carefully before investing.

ETF Characteristics

The fund lists and principally trades its shares on the NYSE Arca, Inc.

The fund's return may not match the return of the Defined Small Cap Growth Index.  Securities held by the fund will generally not be bought or sold in response to market fluctuations.

Investors buying or selling fund shares on the secondary market may incur customary brokerage commissions. Market prices may differ to some degree from the net asset value of the shares. Investors who sell fund shares may receive less than the share's net asset value. Shares may be sold throughout the day on the exchange through any brokerage account. However, unlike mutual funds, shares may only be redeemed directly from the fund by authorized participants, in very large creation/redemption units.

Risk Considerations

The fund's shares will change in value, and you could lose money by investing in the fund. One of the principal risks of investing in the fund is market risk. Market risk is the risk that a particular stock owned by the fund, fund shares or stocks in general may fall in value. There can be no assurance that the fund's investment objective will be achieved.

The fund may invest in securities issued by companies concentrated in a particular industry. The fund invests in small capitalization companies. Such companies may experience greater price volatility than larger, more established companies.

The fund is classified as "non-diversified" and may invest a relatively high percentage of its assets in a limited number of issuers. As a result, the fund may be more susceptible to a single adverse economic or regulatory occurrence affecting one or more of these issuers, experience increased volatility and be highly concentrated in certain issuers.

First Trust Advisors L.P. is the adviser to the fund. First Trust Advisors L.P. is an affiliate of First Trust Portfolios L.P., the fund's distributor.

The Defined Small Cap Growth Index is the exclusive property of Standard and Poor's, a division of the McGraw-Hill Companies, Inc. ("S&P"). First Trust Portfolios L.P. has contracted with S&P to create, calculate and maintain the Index. STANDARD & POOR'S and S&P are trademarks of The McGraw-Hill Companies, Inc. and have been licensed for use by First Trust Portfolios L.P. The fund is not sponsored, endorsed, sold or promoted by Standard & Poor's and Standard & Poor's does not make any representation regarding the advisability of investing in the fund.

"AlphaDEX®" is a registered trademark of First Trust Portfolios L.P. First Trust Portfolios L.P. has obtained a patent for the AlphaDEX® stock selection methodology from the United States Patent and Trademark Office.

©2016 Morningstar, Inc. All Rights Reserved. The Morningstar RatingTM information contained herein: (1) is proprietary to Morningstar;(2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

Not FDIC Insured • Not Bank Guaranteed • May Lose Value
First Trust Portfolios L.P.  Member SIPC and FINRA.
First Trust Advisors L.P.
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