First Trust Small Cap Growth AlphaDEX® Fund (FYC)
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 NASDAQ AlphaDEX® Small Cap Growth Index.
There can be no assurance that the Fund's investment objectives will be achieved.
  • The NASDAQ AlphaDEX® Small Cap Growth Index is an "enhanced" index created and administered by Nasdaq, Inc. ("Nasdaq") which employs the AlphaDEX® stock selection methodology to select stocks from the NASDAQ US 700 Small Cap Growth Index that meet certain criteria.
  • Nasdaq constructs the NASDAQ AlphaDEX® Small Cap Growth Index by ranking the eligible stocks from the NASDAQ US 700 Small Cap Growth 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. All stocks are ranked on the sum of ranks for the growth factors and, separately, all stocks are ranked on the sum of ranks for the value factors. A stock must have data for all growth and/or value factors to receive a rank for that style.
  • Each stock receives either its growth or value score as its selection score based on its style designation as determined by Nasdaq. Only those stocks designated as growth stocks are eligible for the portfolio.
  • The top 262 stocks based on the selection score determined in the previous step comprise the "selected stocks". 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 Corp
Fiscal Year-End07/31
Inception Price$20.08
Inception NAV$20.08
Rebalance FrequencyQuarterly
Expense Ratio0.71%
Current Fund Data (as of 9/16/2021)
Closing NAV1$72.10
Closing Market Price2$72.05
Bid/Ask Midpoint$72.08
Bid/Ask Discount0.03%
30-Day Median Bid/Ask Spread30.13%
Total Net Assets$360,482,997
Outstanding Shares5,000,002
Daily Volume9,789
Average 30-Day Daily Volume26,414
Closing Market Price 52-Week High/Low$75.88 / $44.91
Closing NAV 52-Week High/Low$75.85 / $44.94
Number of Holdings (excluding cash)261
Top Holdings (as of 9/16/2021)*
Holding Percent
Sprout Social, Inc. (Class A) 0.99%
Perficient, Inc. 0.95%
Sitime Corporation 0.94%
Atkore Inc. 0.83%
Avis Budget Group, Inc. 0.83%
Evolent Health, Inc. (Class A) 0.82%
MaxLinear, Inc. 0.80%
Skyline Champion Corporation 0.78%
Ranpak Holdings Corp. 0.77%
Herc Holdings, Inc. 0.76%

* Excluding cash.  Holdings are subject to change.

NAV History (Since Inception)
Past performance is not indicative of future results.
Fund Characteristics (as of 8/31/2021)4
Maximum Market Cap.$14,546
Median Market Cap.$2,657
Minimum Market Cap.$226
Price/Cash Flow13.01
Bid/Ask Premium/Discount (as of 9/16/2021)
  2020 Q1 2021 Q2 2021 Q3 2021
Days Traded at Premium 116 45 21 7
Days Traded at Discount 137 16 42 47
Top Sector Exposure (as of 9/16/2021)
Information Technology 22.16%
Health Care 18.41%
Consumer Discretionary 14.99%
Industrials 13.76%
Financials 11.09%
Energy 4.35%
Real Estate 3.99%
Materials 3.77%
Consumer Staples 3.58%
Communication Services 2.55%
Utilities 1.35%
Hypothetical Growth of $10,000 Since Inception (as of 9/16/2021) *

Month End Performance (as of 8/31/2021)
  3 Month YTD 1 Year 3 Year 5 Year 10 Year Since
Fund Performance *
Net Asset Value (NAV) 2.68% 18.77% 53.49% 11.51% 17.25% 15.08% 13.48%
After Tax Held 2.68% 18.77% 53.41% 11.42% 17.16% 15.00% 13.40%
After Tax Sold 1.59% 11.11% 31.66% 8.94% 13.96% 12.77% 11.35%
Market Price 2.65% 18.65% 53.40% 11.51% 17.25% 15.07% 13.48%
Index Performance **
Nasdaq AlphaDEX® Small Cap Growth Index 2.84% 19.32% 54.57% 12.38% 18.17% N/A N/A
Nasdaq US 700 Small Cap Growth Index 3.18% 12.01% 46.31% 13.99% 17.82% N/A N/A
S&P SmallCap 600 Growth Index 3.61% 18.85% 47.84% 10.19% 15.88% 15.49% 14.02%
Quarter End Performance (as of 6/30/2021)
  3 Month YTD 1 Year 3 Year 5 Year 10 Year Since
Fund Performance *
Net Asset Value (NAV) 5.34% 18.85% 72.93% 15.06% 18.74% 13.67% 13.73%
After Tax Held 5.34% 18.85% 72.84% 14.98% 18.65% 13.59% 13.65%
After Tax Sold 3.16% 11.16% 43.16% 11.79% 15.23% 11.48% 11.56%
Market Price 5.23% 18.80% 72.89% 15.04% 18.74% 13.67% 13.73%
Index Performance **
Nasdaq AlphaDEX® Small Cap Growth Index 5.51% 19.25% 74.38% 15.96% 19.67% N/A N/A
Nasdaq US 700 Small Cap Growth Index 5.89% 12.25% 61.74% 17.34% 19.91% N/A N/A
S&P SmallCap 600 Growth Index 3.76% 16.49% 57.49% 13.21% 16.91% 13.95% 14.04%
3-Year Statistics (as of 8/31/2021)
  Standard Deviation Alpha Beta Sharpe Ratio Correlation
FYC 26.69% 0.94 1.08 0.49 0.98
S&P SmallCap 600 Growth Index 24.02% --- 1.00 0.47 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 determined by using the midpoint of the national best bid offer price ("NBBO") as of the time that the fund's NAV is calculated. 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 Nasdaq AlphaDEX® 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.

On April 8, 2016, the fund's underlying index changed from the Defined Small Cap Growth Index to the NASDAQ AlphaDEX® Small Cap Growth Index. Therefore, the fund's performance and historical returns shown for the periods prior to this date are not necessarily indicative of the performance that the fund, based on its current index, would have generated.

Nasdaq US 700 Small Cap Growth Index - The Index is a float modified market capitalization weighted index that includes growth securities from the NASDAQ US 700 Small Cap Index.

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 market 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).
3 The median bid-ask spread is calculated by identifying the national best bid and national best offer ("NBBO") for the fund as of the end of each 10 second interval during each trading day of the last 30 calendar days and dividing the difference between each such bid and offer by the midpoint of the NBBO. The median of those values is identified and that value is expressed as a percentage rounded to the nearest hundredth.
4 All market capitalization numbers are in USD$ Millions.
5 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.

Risk Considerations

A fund's return may not match the return of its underlying index. A fund invests in securities included in the index regardless of investment merit and the securities held by a 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 a fund by authorized participants in very large creation/redemption units. If a fund's authorized participants are unable to proceed with creation/redemption orders and no other authorized participant is able to step forward to create or redeem, fund shares may trade at a discount to a fund's net asset value and possibly face delisting.

A fund's shares will change in value, and you could lose money by investing in a fund. One of the principal risks of investing in a fund is market risk. Market risk is the risk that a particular stock owned by a fund, fund shares or stocks in general may fall in value. There can be no assurance that a fund's investment objective will be achieved. The outbreak of the respiratory disease designated as COVID-19 in December 2019 has caused significant volatility and declines in global financial markets, which have caused losses for investors. While the development of vaccines has slowed the spread of the virus and allowed for the resumption of "reasonably" normal business activity in the United States, many countries continue to impose lockdown measures in an attempt to slow the spread. Additionally, there is no guarantee that vaccines will be effective against emerging variants of the disease.

As the use of Internet technology has become more prevalent in the course of business, funds have become more susceptible to potential operational risks through breaches in cyber security.

Stocks with growth characteristics tend to be more volatile than certain other stocks and their prices may fluctuate more dramatically than the overall stock market.

A fund may be a constituent of one or more indices which could greatly affect a fund's trading activity, size and volatility.

There is no assurance that the index provider or its agents will compile or maintain the index accurately.

There can be no assurance that the securities held by a fund will stay within a fund's intended market capitalization range.

A fund and a fund's advisor may seek to reduce various operational risks through controls and procedures, but it is not possible to completely protect against such risks.

High portfolio turnover may result in higher levels of transaction costs and may generate greater tax liabilities for shareholders.

A fund with significant exposure to a single asset class, country, region, industry, or sector may be more affected by an adverse economic or political development than a broadly diversified fund.

Securities of small- and mid-capitalization companies may experience greater price volatility and less liquid than larger, more established companies.

Trading on the exchange may be halted due to market conditions or other reasons. There can be no assurance that the requirements to maintain the listing of a fund on the exchange will continue to be met or be unchanged.

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.

Nasdaq® and NASDAQ AlphaDEX® Small Cap Growth Index are registered trademarks and service marks of Nasdaq, Inc. (together with its affiliates hereinafter referred to as the “Corporations”) and are licensed for use by First Trust. AlphaDEX® is a registered trademark owned by First Trust that has been licensed to Nasdaq, Inc. for use in the name of the Index. The Fund has not been passed on by the Corporations as to its legality or suitability. The Fund is not issued, endorsed, sold or promoted by the Corporations. THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO 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.

Not FDIC Insured • Not Bank Guaranteed • May Lose Value