First Trust Small Cap Core AlphaDEX ETF: A Comprehensive Guide

The First Trust Small Cap Core AlphaDEX ETF (FYX) is a passively managed ETF designed to track the Nasdaq AlphaDEX Small Cap Core Index. It has $841.68 million in assets and a 0.61% expense ratio. The ETF has a 1.21% dividend yield and is heavily weighted in the Financials sector. It has lost -0.04% so far this year and was up 4.83% in the last year. With a beta of 1.12 and a standard deviation of 22.18%, FYX is a medium-risk choice in the space.

The First Trust Small Cap Core AlphaDEX ETF (FYX) is a passively managed exchange-traded fund (ETF) designed to track the Nasdaq AlphaDEX Small Cap Core Index. Launched on May 8, 2007, FYX has amassed assets totaling $841.68 million, making it a significant player in the small-cap ETF market. With an expense ratio of 0.61%, it offers a 1.21% dividend yield, positioning it as an attractive option for investors seeking exposure to the small-cap blend segment of the US equity market.

Performance and Risk
As of July 2, 2025, FYX has lost -0.04% so far this year and was up 4.83% in the last year. This relatively modest performance is consistent with the inherent volatility of small-cap stocks, which often exhibit higher risk and potential for higher returns. The ETF's beta of 1.12 and a standard deviation of 22.18% over the trailing three-year period indicate a medium level of risk. This makes FYX suitable for investors who are willing to accept higher volatility in exchange for the potential for higher returns.

Sector Exposure and Top Holdings
FYX is heavily weighted in the Financials sector, accounting for approximately 23.90% of the portfolio. Industrials and Consumer Discretionary sectors follow, rounding out the top three. The fund's top holdings include Sezzle Inc. (SEZL), Dave Inc. (class A) (DAVE), and Centrus Energy Corp. (class A) (LEU), with the top 10 holdings accounting for about 6.29% of total assets under management. This diversification helps to mitigate the risk associated with individual company performance.

Expense Ratio and Dividend Yield
One of the key considerations for investors is the expense ratio, which is a crucial factor in determining the net return. FYX's expense ratio of 0.61% is relatively high compared to other ETFs in the small-cap space. However, this is offset by its 1.21% dividend yield, providing investors with a steady income stream. It's essential to weigh these costs and benefits when deciding whether FYX aligns with your investment objectives.

Alternatives
Investors looking for similar exposure to the small-cap blend segment of the US equity market may also consider the Vanguard Small-Cap ETF (VB) and the iShares Core S&P Small-Cap ETF (IJR). VB has an expense ratio of 0.05% and IJR charges 0.06%, making them more cost-effective options. However, FYX's unique AlphaDEX methodology and sector exposure may provide distinct advantages for certain investors.

Conclusion
The First Trust Small Cap Core AlphaDEX ETF (FYX) offers investors a diversified and transparent exposure to the small-cap blend segment of the US equity market. With a medium level of risk and a modest performance track record, FYX is suitable for investors seeking a balance between growth and income. However, the relatively high expense ratio should be taken into account when comparing it to other small-cap ETFs.

References
1. [MarketBeat](https://www.marketbeat.com/stocks/NASDAQ/FYX/)
2. [Finviz](https://finviz.com/news/115250/should-first-trust-small-cap-core-alphadex-etf-fyx-be-on-your-investing-radar)
3. [NASDAQ](https://www.nasdaq.com/articles/should-invesco-rafi-us-1500-small-mid-etf-prfz-be-your-investing-radar-0)