Small Cap ETF (FYX) Hits New 52-Week High
For investors seeking momentum, First Trust Small Cap Core AlphaDEX Fund FYX is probably on radar now. The fund just hit a 52-week high and is up nearly 32% from its 52-week low price of $45.34/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:
FYX in Focus
This fund seeks to provide exposure to the small-cap segment with a slightly active choice as it uses the AlphaDEX methodology to select stocks. It has key holdings in industrials, consumer discretionary, information technology, financials and healthcare and is highly diversified across components with none holding more than 0.54% share. The product charges 64 bps in fees per year (see: all the Small Cap ETFs here).
Why the Move?
The small-cap space has been an area to watch lately given the tax reform proposal and a slew of upbeat economic data. This is because small companies pay huge taxes in America and a tax cut could come as a big boon to these. Additionally, since small-cap stocks are closely tied to the U.S. economy and do not have much exposure to the international market, it generally outperforms on an improving American economy and are free from the clutches of any political malaise.
More Gains Ahead?
Currently, FYX has a Zacks ETF Rank of 3 or ‘Hold’ rating with a High risk outlook. Therefore, it is hard to get a handle on its future returns one way or the other. However, many of the segments that make up this ETF have a strong Zacks Industry Rank. As a result, there is still some promise for investors who want to ride on this surging ETF.
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