Looking for broad exposure to the Small Cap Blend segment of the US equity market? You should consider the First Trust Small Cap Core AlphaDEX ETF (FYX Quick QuoteFYX - 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 $1.01 billion, making it one of the average sized ETFs attempting to match the Small Cap Blend segment of the US equity market.

Why Small Cap Blend

Sitting at a market capitalization below $2 billion, small cap companies tend to be high-potential stocks compared to its large and mid cap counterparts, but come with higher risk.

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

Costs

When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.

Annual operating expenses for this ETF are 0.58%, putting it on par with most peer products in the space.

It has a 12-month trailing dividend yield of 0.6%.

Sector Exposure and Top Holdings

While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.

This ETF has heaviest allocation to the Industrials sector -- about 19.2% of the portfolio. Financials and Healthcare round out the top three.

Looking at individual holdings, Praxis Precision Medicines, Inc. (PRAX) accounts for about 0.98% of total assets, followed by Arrowhead Pharmaceuticals, Inc. (ARWR) and Globalstar, Inc. (GSAT).

The top 10 holdings account for about 5.26% of total assets under management.

Performance and Risk

FYX seeks to match the performance of the Nasdaq AlphaDEX Small Cap Core Index before fees and expenses. The NASDAQ AlphaDEX Small Cap Core Index is an enhanced index which employs the AlphaDEX stock selection methodology to select stocks from the NASDAQ US 700 Small Cap Index.

The ETF return is roughly 6.95% so far this year and it's up approximately 18.01% in the last one year (as of 01/30/2026). In the past 52-week period, it has traded between $79.22 and $122.91.

The ETF has a beta of 1.07 and standard deviation of 21.03% for the trailing three-year period, making it a medium risk choice in the space. With about 525 holdings, it effectively diversifies company-specific risk.

Alternatives

First Trust Small 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, FYX is a good option for those seeking exposure to the Style Box - Small Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.

The iShares Russell 2000 ETF (IWM) and the iShares Core S&P Small-Cap ETF (IJR) track a similar index. While iShares Russell 2000 ETF has $75.86 billion in assets, iShares Core S&P Small-Cap ETF has $93.71 billion. IWM has an expense ratio of 0.19% and IJR charges 0.06%.

Bottom-Line

Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.

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.