If you're interested in broad exposure to the Mid Cap Blend segment of the US equity market, look no further than the First Trust Mid Cap Core AlphaDEX ETF (FNX Quick QuoteFNX - Free Report) , a passively managed exchange traded fund launched on May 8, 2007.

The fund is sponsored by First Trust Advisors. It has amassed assets over $1.16 billion, making it one of the average sized ETFs attempting to match the Mid Cap Blend segment of the US equity market.

Why Mid Cap Blend

Mid cap companies have market capitalization between $2 billion and $10 billion. They usually have higher growth prospects than large cap companies and are less volatile than small cap companies. Thus, companies that fall under this category provide a stable and growth-heavy investment.

Typically holding a combination of both growth and value stocks, blend ETFs also demonstrate qualities seen in value and growth investments.

Costs

Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.

Annual operating expenses for this ETF are 0.58%, making it one of the more expensive products in the space.

It has a 12-month trailing dividend yield of 0.95%.

Sector Exposure and Top Holdings

ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.

This ETF has heaviest allocation to the Industrials sector -- about 22.6% of the portfolio. Consumer Discretionary and Financials round out the top three.

Looking at individual holdings, Echostar Corporation (class A) (SATS) accounts for about 0.83% of total assets, followed by Bloom Energy Corporation (class A) (BE) and Credo Technology Group Holding Ltd (CRDO).

The top 10 holdings account for about 5.49% of total assets under management.

Performance and Risk

FNX seeks to match the performance of the Nasdaq AlphaDEX Mid Cap Core Index before fees and expenses. The NASDAQ AlphaDEX Mid Cap Core Index is an enhanced index which employs the AlphaDEX stock selection methodology to select stocks from the NASDAQ US 600 Mid Cap Index.

The ETF has added about 8.11% so far this year and it's up approximately 5.22% in the last one year (as of 10/20/2025). In the past 52-week period, it has traded between $94.92 and $127.28.

The ETF has a beta of 1.12 and standard deviation of 19.83% for the trailing three-year period, making it a medium risk choice in the space. With about 451 holdings, it effectively diversifies company-specific risk.

Alternatives

First Trust Mid Cap Core AlphaDEX ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, FNX is a good option for those seeking exposure to the Style Box - Mid Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.

The Vanguard Mid-Cap ETF (VO) and the iShares Core S&P Mid-Cap ETF (IJH) track a similar index. While Vanguard Mid-Cap ETF has $88.60 billion in assets, iShares Core S&P Mid-Cap ETF has $98.88 billion. VO has an expense ratio of 0.04% and IJH charges 0.05%.

Bottom-Line

While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.

To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.