FNY: FIRST TRUST MID CAP GROWTH ALPHADEX FUND
ETF Research Report: First Trust Mid Cap Growth AlphaDEX Fund (FNY)
The First Trust Mid Cap Growth AlphaDEX Fund (FNY) is an ETF designed to target growth-oriented companies with medium-sized market valuations. Based on the supplied data, the fund's most notable characteristic is its strong three-year growth trend, showing a three-year total return of approximately 75.70%.
What this ETF is trying to do
This fund focuses on "Mid Cap Growth." In plain English, this means it invests in companies that are not the biggest giants in the market, but are larger than small startups. The goal is to find companies that have the potential to grow their earnings and share prices faster than the average company.
The fund uses a specific strategy called "AlphaDEX" to select its stocks. To see how this works in practice, we can look at the Top Holdings. As of September 27, 2026, the fund held 228 different companies. The holdings list is partial, meaning we only see the largest ones. The top holdings include companies like Etsy Inc (0.88%), Guardant Health Inc (0.84%), and PACS Group Inc (0.82%).
Because the weights of these top companies are very small (all under 1%), the fund is highly diversified. It does not rely on just one or two stocks to do the heavy lifting. Instead, it spreads its investment across many different mid-sized growth companies.
What the numbers show
The financial data for FNY shows a fund that has experienced significant growth over a longer period, though shorter-term gains have been more modest.
Price Returns
Price return measures only the change in the ETF's share price. It does not include any cash payments made to investors.
• Year-to-Date (YTD): The price return is 7.26%.
• One-Year: The price return is 4.21%.
• Three-Year: The price return is 74.51%.
Total Returns
Total return is a broader measure. It reflects the overall return, including the share price movement and any distributions.
• Year-to-Date (YTD): The total return is 7.26%.
• One-Year: The total return is 4.21%.
• Three-Year: The total return is 75.70%.
• Five-Year: The total return is 30.43%.
In the short term (YTD and one year), the price return and total return are identical. This happens when a fund does not pay out distributions. Over the three-year period, the total return (75.70%) is slightly higher than the price return (74.51%), indicating some distributions were factored in during that window.
Income and distribution explanation
For investors who rely on their portfolio for regular cash income, FNY may not fit that specific need. The supplied data shows a distribution yield of 0%.
There were no distributions detected in the last 12 months, and the payout count for that period is 0. The distribution frequency is listed as "No distributions detected." While the fund has an income rating grade of "B" and a score of 78, the actual current data shows it is not paying out cash to shareholders.
It is important for beginners to remember that a 0% yield is common for "Growth" funds. These funds typically reinvest their earnings back into the companies they own to fuel more growth, rather than sending cash checks to investors.
NAV erosion explanation
NAV erosion happens when the "Net Asset Value" (the actual value of the underlying stocks) of a fund drops over time, often because the fund pays out more in distributions than it earns.
The supplied data is sufficient to evaluate price erosion, but it does not include enough historical NAV-per-share data to confirm or rule out NAV erosion. However, we can look at price-based evidence.
FNY has an erosion score of 94, which is labeled as "Stable / sideways" with a severity rating of "good." Additionally, the severe erosion-risk flag is false. This means the fund's price trend has not triggered any warnings for substantial deterioration. The share price has generally moved upward over the three-year and five-year periods.
Pros
• Strong Long-Term Growth: The three-year total return of 75.70% shows significant capital appreciation over a medium-term horizon.
• High Diversification: With 228 total holdings and no single top holding weighing more than 0.88%, the fund is not overly dependent on any one company.
• Price Stability: The "good" erosion severity and stable erosion score suggest the fund has avoided the price collapses seen in some high-risk ETFs.
• No Complex Structures: The fund is not leveraged, not inverse, and does not use covered call options, making its behavior more straightforward for beginners.
Cons
• No Current Income: With a 0% distribution yield and no detected payments in the last year, this fund provides no cash flow to the investor.
• Slower Recent Momentum: The one-year total return (4.21%) is significantly lower than the three-year average, suggesting a slowdown in growth.
• Mid-Cap Volatility: While not shown as a specific number, investing in mid-cap growth stocks generally involves more price swings than investing in large, established "Blue Chip" companies.
Beginner takeaway
The First Trust Mid Cap Growth AlphaDEX Fund (FNY) is a growth-focused tool, not an income-focused one. The strongest evidence is its three-year total return of 75.70%, which shows it has been successful at increasing the value of its shares over that time. It is well-diversified across hundreds of mid-sized companies.
The major uncertainty for a new investor is the lack of current income. If you are looking for a monthly or quarterly check, this fund does not provide that. Furthermore, while the long-term trend is positive, the recent one-year return of 4.21% shows that growth can slow down. This fund represents a tradeoff: you give up immediate cash income in exchange for the possibility of the share price increasing over several years.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | REMITLY GLOBAL INC | RELY | 0.88% |
| 2 | GITLAB INC CLASS A | GTLB | 0.87% |
| 3 | n/a | CRL | 0.86% |
| 4 | n/a | HNGE | 0.85% |
| 5 | CONCENTRA GROUP HOLDINGS PARENT INC | CON | 0.84% |
| 6 | HALOZYME THERAPEUTICS INC | HALO | 0.84% |
| 7 | n/a | CHYM | 0.84% |
| 8 | DYNATRACE INC ORDINARY SHARES | DT | 0.83% |
| 9 | PACS GROUP INC | PACS | 0.83% |
| 10 | COCA-COLA CONSOLIDATED INC | COKE | 0.82% |
Show all 228 holdings
Specializing in global financial markets, macroeconomic trends, and equity valuation, Omar Gemani brings a disciplined, research-driven perspective to investment analysis. His editorial approach emphasizes company fundamentals, earnings sustainability, financial strength, and long-term growth potential. Combining fundamental analysis with broader economic indicators, Omar evaluates investment opportunities while highlighting market uncertainty, valuation risks, and the importance of capital preservation.