FNX ETF: What Is It? A Complete Guide to Returns, Expense Ratio, Holdings, and Alternative ETFs
A US mid-cap ETF that aims for excess returns using the AlphaDEX selection method, which combines value and growth factors.
SubscribeWhat Is This ETF?
The fund tracks the Nasdaq AlphaDEX Mid Cap Core Index and holds US mid-cap stocks that score well on both growth and intrinsic value. Going beyond simple index tracking, it builds its portfolio by analyzing companies' fundamental indicators from multiple angles.
It suits investors who prefer an active smart beta strategy over mid-cap exposure based on simple market-cap weighting.
Launched by First Trust in 2007, it is a passively managed (index-tracking) ETF.
How Does It Invest?
| Item | Details |
|---|---|
| Tracked Index | Nasdaq AlphaDEX Mid Cap Core Index |
| Management Style | Passive (smart beta) |
| Rebalancing Frequency | Quarterly |
| Dividend Frequency | Quarterly |
| Total Expense Ratio | 0.62% |
Stocks in the Nasdaq US 600 Mid Cap Index are ranked on growth factors (price appreciation, revenue growth, and so on) and value factors (price-to-book ratio, cash flow, and so on). The fund uses a quant-based strategy that selects the top-ranked stocks and assigns weights by rank tier.
- Stock selection based on a proven quant model
- A balanced portfolio that is not concentrated in particular stocks
Size and Costs
Assets under management (AUM) stand at $1.4B, and the expense ratio is 0.62% per year.
Unlike representative market-cap-weighted mid-cap ETFs such as IJH and VO shown in the table, FNX takes an active approach that uses factor analysis to place more weight on stocks with higher performance potential.
Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeDuring sector rotation across the mid-cap space, the factor-based strategy has produced results that differ from the broader market, and the fund has captured return opportunities by adjusting its weights in the industrial and consumer sectors.
As interest in smart beta strategies continues, the fund's asset base has remained stable, and the effectiveness of fundamentals-based stock selection is drawing attention even in periods of heightened market volatility.
Pros and Cons
The opportunity for excess returns through a quant model is a strength, while a somewhat higher management fee than traditional index funds is a drawback.
💪 Key Strengths
⚠️ Points to Watch
Alternative ETFs and Related Products
While IWR and MDY in the table reflect the overall direction of the mid-cap market, FNX can be seen as an attempt to pick the winners within it. If you want lower fees, a cost-efficient product such as SPMD is an option, and if you want more active mid-cap exposure, style-specific ETFs such as IJK or IJJ are also worth considering.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 IJH | iShares Core S&P Mid-Cap ETF | $73.33 | -1.2% | $124.7B | 0.05% | 1.23% | +13.6% |
 VO | Vanguard Morningstar Mid-Cap ETF | $81.46 | -0.9% | $108.4B | 0.03% | 1.35% | +12.5% |
 IWR | iShares Russell Mid-Cap ETF | $110.03 | -1.4% | $58.8B | 0.18% | 1.16% | +15.7% |
 MDY | State Street SPDR S&P MIDCAP 400 ETF Trust | $668.88 | -1.2% | $26.2B | 0.23% | 1.05% | +13.5% |
 SPMD | State Street SPDR Portfolio S&P 400TM Mid Cap ETF | $64.24 | -1.2% | $18.9B | 0.03% | 1.31% | +13.6% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
 VICR | Vicor Corp | 0.01% | $191.09 | -7.5% | $8.8B | 50.1 | - |
 SANM | Sanmina Corp | 0.01% | $165.57 | -4.3% | $8.9B | 29.6 | - |
 TTMI | TTM Technologies Inc | 0.01% | $82.94 | -5.3% | $8.7B | 33.1 | - |
 VIAV | Viavi Solutions Inc | 0.01% | $29.92 | -10.2% | $7.4B | - | - |
 LAD | Lithia Motors Inc | 0.01% | $299.72 | +0.9% | $6.5B | 8.6 | 0.73% |
 EPAM | EPAM Systems Inc | 0.01% | $140.51 | +4.3% | $7.2B | 19.0 | - |
 VSAT | Viasat Inc | 0.00% | $77.02 | -1.2% | $10.6B | - | - |
 DINO | HF Sinclair Corp | 0.00% | $115.00 | +2.8% | $19.7B | 5.8 | 1.79% |
 G | Genpact Ltd | 0.00% | $39.62 | +1.7% | $6.6B | 11.8 | 1.25% |
 SM | SM Energy Co | 0.00% | $40.38 | +2.0% | $9.6B | 8.0 | 2.35% |
Investor Checkpoints
These are the key factors to review before investing in the First Trust Mid Cap Core AlphaDEX Fund (FNX). It is important to understand the characteristics of a smart beta strategy.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 💵 Fee Level | Check the cost burden versus index funds | Somewhat high |
| 📈 Factor Effectiveness | Check the market performance of value and growth factors | Ongoing review needed |
| 📊 Stock Diversification | Check top-holding concentration and sector skew | Stably diversified |
| 🔍 Management Performance | Compare performance against benchmark indexes such as the S&P 400 | Check needed |
If the quant model's predictions do not match market conditions, returns may fall below the market average, and the relatively high cost can erode long-term compounding.
This product suits aggressive investors who seek excess returns in the mid-cap market through systematic factor investing rather than simple index tracking. It is an ETF that lets you experience First Trust's distinctive AlphaDEX strategy.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
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