For investors seeking momentum, First Trust Small Cap Growth AlphaDEX Fund (FYC - Free Report) is probably on radar now. The fund just hit a 52-week high and is up nearly 29.1% from its 52-week low price of $36.00/share.
But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed.
FYC in Focus
The ETF looks to track the performance of the NASDAQ US 700 Small Cap Growth Index. Health care (27.45%), Information Technology (19.35%), Consumer Discretionary (14.87%), Industrials (14.64%) and Financials (10.79%) are the top five sectors of the fund. The product charges 70 bps in net fees (see all Small Cap ETFs here).
Why the Move?
The present market momentum is solid in the United States with the tax reform underway and several U.S. economic data coming in better than other developed economies. An improving U.S. economy, a rising greenback and geopolitical concerns pushed investors toward the more domestically-focused small-cap stocks. All these have boosted this small-cap ETF.
More Gains Ahead?
The fund has a Zacks Rank #3 (Hold) with a High-risk outlook. Therefore, it is hard to get a handle on its future returns one way or the other. However, it seems that the fund will perform decently in the near term given a positive weighted alpha of 26.70. Some of the segments that make up this ETF have strong a Zacks Sector Rank.
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