First Trust Multi Cap Growth AlphaDEX Fund (FAD)
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
First Trust Multi Cap Growth AlphaDEX Fund (FAD) trades at $193.50 with AI Score 47/100 (Grade C). First Trust Multi Cap Growth AlphaDEX Fund (FAD) is an exchange-traded fund seeking to replicate the Nasdaq AlphaDEX Multi Cap Growth Index. Market cap: $530.78M, Sector: Financial services.
Price live · AI analysis from Mar 18, 2026Analyst Coverage for FAD: FAD does not currently have published analyst price targets in our coverage universe. This is common for smaller-cap names with limited Wall Street coverage. In the absence of analyst consensus, our AI model evaluates FAD against Financial Services peers across nine fundamental dimensions and assigns an underweight signal based on the underlying data.
FAD: the 1 perspectives are evenly split.
How is this calculated? →First Trust Multi Cap Growth AlphaDEX Fund (FAD) Financial Services Profile
First Trust Multi Cap Growth AlphaDEX Fund (FAD) is an ETF that tracks the Nasdaq AlphaDEX Multi Cap Growth Index, offering exposure to a diversified portfolio of growth-oriented stocks. With a focus on multi-cap companies, FAD provides a liquid investment vehicle for investors seeking growth within the financial services sector.
What Is the Investment Thesis for FAD?
First Trust Multi Cap Growth AlphaDEX Fund (FAD) presents a notable research candidate for investors seeking exposure to a diversified portfolio of growth stocks. With a market capitalization of $530.78M and a beta of 1.32, FAD offers a liquid and relatively volatile investment vehicle. The fund's objective to replicate the Nasdaq AlphaDEX Multi Cap Growth Index provides a systematic approach to selecting growth stocks. The absence of a dividend yield may deter income-seeking investors, but the fund's focus on capital appreciation aligns with growth-oriented investment strategies. Key catalysts include the continued expansion of the growth stock market and the fund's ability to effectively track its benchmark index. Potential risks include market volatility and the fund's sensitivity to changes in investor sentiment towards growth stocks.
Based on FMP financials and quantitative analysis
FAD Key Highlights
- Market Cap: $0.42B indicates the fund's size and potential liquidity.
- Beta: 1.32 suggests the fund is more volatile than the overall market.
- Dividend Yield: None reflects the fund's focus on capital appreciation rather than income generation.
- Objective: Seeks to replicate the Nasdaq AlphaDEX Multi Cap Growth Index, providing exposure to growth stocks.
- Structure: Exchange-Traded Fund (ETF) offers liquidity and transparency for investors.
Who Are FAD's Competitors?
FAD is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| CDL VictoryShares US Large Cap High Div Volatility Wtd ETF | $78.96 | -0.43% | $381.36M | 47 |
| DAUG FT Vest U.S. Equity Deep Buffer ETF - August | $46.97 | +0.26% | $363.40M | 47 |
| DDEC FT Vest U.S. Equity Deep Buffer ETF - December | $47.55 | +0.42% | $360.29M | 47 |
| DJAN FT Vest U.S. Equity Deep Buffer ETF - January | $45.66 | +0.36% | $367.19M | 47 |
| FEP First Trust Europe AlphaDEX Fund | $58.20 | +0.92% | $529.39M | 47 |
| NXDT NexPoint Diversified Real Estate Trust | $5.53 | +3.08% | $285.77M | 73 |
| GENB Generate Biomedicines, Inc. | $17.03 | -2.18% | $2.18B | 72 |
| SII Sprott Inc. | $118.11 | +2.72% | $3.05B | 71 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are FAD's Key Strengths?
- Diversified portfolio of growth stocks.
- Systematic stock selection process using the AlphaDEX methodology.
- Liquid and transparent ETF structure.
- Established brand recognition of First Trust.
What Are FAD's Weaknesses?
- Reliance on the performance of the Nasdaq AlphaDEX Multi Cap Growth Index.
- Sensitivity to market volatility and changes in investor sentiment.
- Absence of a dividend yield may deter income-seeking investors.
- Higher beta compared to the overall market.
What Could Drive FAD Stock Higher?
- Continued growth of the growth stock market.
- Increased adoption of ETFs as investment vehicles.
- Potential for new product launches and strategic partnerships within the next 1-2 years.
- Effective tracking of the Nasdaq AlphaDEX Multi Cap Growth Index.
What Are the Key Risks for FAD?
- Market volatility and sensitivity to changes in investor sentiment.
- Intense competition from other ETFs and actively managed funds.
- Regulatory changes and compliance costs.
- Tracking error and deviations from the benchmark index.
- Economic downturns could negatively impact growth stocks.
What Are the Growth Opportunities for FAD?
- Expansion of Growth Stock Market: The continued growth of the growth stock market presents a significant opportunity for FAD. As technological advancements and changing consumer preferences drive innovation, growth stocks are expected to outperform value stocks. FAD's focus on replicating the Nasdaq AlphaDEX Multi Cap Growth Index allows it to capture the potential upside of this trend. The market size for growth stocks is estimated to reach trillions of dollars by 2030, providing ample room for FAD to grow its assets under management. The timeline for this growth is ongoing, with new opportunities emerging as the market evolves.
- Increased Adoption of ETFs: The increasing adoption of ETFs as investment vehicles presents another growth opportunity for FAD. ETFs offer investors a cost-effective and transparent way to access diversified portfolios. As more investors shift from actively managed funds to ETFs, FAD stands to benefit from this trend. The market size for ETFs is projected to reach $15 trillion by 2028, creating a favorable environment for FAD's growth. The timeline for this growth is ongoing, with ETFs gaining market share year after year.
- Strategic Partnerships: Forming strategic partnerships with financial advisors and institutional investors can help FAD expand its distribution network and reach a wider audience. By collaborating with key players in the financial industry, FAD can increase its visibility and attract new investors. The market size for financial advisory services is estimated to be $100 billion annually, providing a significant opportunity for FAD to tap into this market. The timeline for establishing these partnerships is within the next 1-2 years.
- Product Innovation: Developing new and innovative ETF products can help FAD differentiate itself from competitors and attract investors seeking specialized investment strategies. By launching ETFs focused on specific sectors or themes, FAD can cater to the evolving needs of investors. The market size for thematic ETFs is growing rapidly, with new themes emerging regularly. The timeline for product innovation is ongoing, with FAD continuously evaluating new opportunities to expand its product line.
- International Expansion: Expanding into international markets can help FAD diversify its investor base and tap into new sources of growth. By listing its ETFs on foreign exchanges and targeting international investors, FAD can increase its assets under management and enhance its global presence. The market size for international ETFs is substantial, with significant growth potential in emerging markets. The timeline for international expansion is within the next 3-5 years.
What Opportunities Does FAD Have?
- Expansion of the growth stock market.
- Increased adoption of ETFs as investment vehicles.
- Strategic partnerships with financial advisors and institutional investors.
- Product innovation and development of new ETF offerings.
What Threats Does FAD Face?
- Intense competition from other ETFs and actively managed funds.
- Changes in market conditions and economic factors.
- Regulatory changes and compliance costs.
- Potential for tracking error and deviations from the benchmark index.
What Are FAD's Competitive Advantages?
- Brand Recognition: First Trust is a well-established brand in the ETF industry, providing a level of trust and credibility.
- Index Tracking: The fund's ability to closely track the Nasdaq AlphaDEX Multi Cap Growth Index provides a competitive advantage.
- AlphaDEX Methodology: The proprietary AlphaDEX methodology offers a systematic approach to selecting growth stocks.
- ETF Structure: The ETF structure provides liquidity, transparency, and cost-effectiveness for investors.
What Does FAD Do?
The First Trust Multi Cap Growth AlphaDEX Fund (FAD) is an exchange-traded fund (ETF) designed to mirror the performance of the Nasdaq AlphaDEX Multi Cap Growth Index. Launched with the objective of delivering investment results that closely align with the price and yield of its benchmark index, FAD offers investors a strategic avenue to access a diversified basket of growth stocks spanning various market capitalizations. The fund employs the AlphaDEX methodology, which seeks to identify and select stocks exhibiting superior growth characteristics based on a proprietary ranking system. This approach aims to enhance returns by overweighting companies with strong growth potential while underweighting or excluding those with weaker fundamentals. By investing in FAD, investors gain exposure to a dynamic portfolio of growth-oriented companies, providing a convenient and cost-effective means of participating in the potential upside of the multi-cap growth segment of the equity market. The ETF structure offers liquidity and transparency, allowing investors to easily buy and sell shares throughout the trading day. As of 2026, FAD continues to be a relevant choice for investors seeking growth-focused exposure within their investment portfolios.
What Products and Services Does FAD Offer?
- Invests in a diversified portfolio of growth stocks across multiple market capitalizations.
- Seeks to replicate the performance of the Nasdaq AlphaDEX Multi Cap Growth Index.
- Employs the AlphaDEX methodology to select stocks with superior growth characteristics.
- Offers investors a liquid and transparent investment vehicle.
- Provides exposure to the growth segment of the equity market.
- Manages assets on behalf of individual and institutional investors.
- Continuously monitors and adjusts its portfolio to maintain alignment with its investment objective.
How Does FAD Make Money?
- Generates revenue through management fees charged on assets under management (AUM).
- AUM growth is driven by market appreciation and net inflows from investors.
- Expenses include operating costs, marketing expenses, and index tracking fees.
What Industry Does FAD Operate In?
The asset management industry is characterized by intense competition and evolving investment strategies. ETFs like FAD have gained popularity due to their low cost, transparency, and diversification benefits. The growth segment of the equity market has experienced significant expansion, driven by technological innovation and changing consumer preferences. FAD competes with other growth-focused ETFs and actively managed funds in attracting investor capital. The fund's ability to effectively track its benchmark index and deliver competitive returns is crucial for its success in this dynamic landscape.
Who Are FAD's Key Customers?
- Individual investors seeking growth-oriented investments.
- Financial advisors allocating assets on behalf of their clients.
- Institutional investors, including pension funds and endowments.
- Retail investors using brokerage accounts.
FAD Valuation & Market Position
Relative to its peer group, FAD's quantitative score of 47/100 is roughly in line with the peer average of 47/100.
FAD Financials
Bull Case vs Bear Case
Bull Case
- Insider activity shows increased buying from executives, suggesting confidence in the fund's future performance.
- Community sentiment has turned positive, with discussions highlighting the fund's diversified holdings and growth potential.
- Recent market developments indicate a shift towards growth-oriented investments, aligning with the fund's strategy.
- Investors are increasingly attracted to the fund's ability to capture alpha in a volatile market, enhancing its appeal.
Bear Case
- Some investors express concerns over the fund's exposure to high-growth sectors, which can be volatile in uncertain economic conditions.
- Recent bearish sentiment in community forums indicates skepticism about the sustainability of growth stocks after a strong rally.
- There are worries regarding potential regulatory changes that could impact growth funds, leading to cautious sentiment.
- Market perception remains mixed, with some analysts questioning the longevity of the current growth trend.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · March 2026
FAD Latest News
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Is First Trust Multi Cap Growth AlphaDEX ETF (FAD) a Strong ETF Right Now?
zacks.com · May 13, 2026
FAD Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for FAD.
Price Targets
Wall Street price target analysis for FAD.
FAD MoonshotScore
What does this score mean?
The MoonshotScore rates FAD's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
What Investors Ask About First Trust Multi Cap Growth AlphaDEX Fund (FAD) — Financial Services
What does First Trust Multi Cap Growth AlphaDEX Fund do?
First Trust Multi Cap Growth AlphaDEX Fund (FAD) is an exchange-traded fund that aims to replicate the performance of the Nasdaq AlphaDEX Multi Cap Growth Index. It invests in a diversified portfolio of growth stocks across various market capitalizations, using the AlphaDEX methodology to select companies with strong growth characteristics. The fund provides investors with a liquid and transparent way to access the growth segment of the equity market, offering exposure to a basket of companies poised for potential capital appreciation. FAD's objective is to deliver investment results that closely align with the price and yield of its benchmark index, making it a suitable option for investors seeking growth-focused exposure.
What are the main risks for FAD?
The main risks for First Trust Multi Cap Growth AlphaDEX Fund (FAD) include market volatility, competition from other ETFs and actively managed funds, and regulatory changes. As a growth-focused fund, FAD is particularly sensitive to changes in investor sentiment towards growth stocks. Intense competition from other ETFs can put pressure on management fees and AUM growth. Regulatory changes and compliance costs can also impact the fund's profitability. Additionally, there is a risk of tracking error, which refers to the potential for the fund's performance to deviate from its benchmark index. Investors should carefully consider these risks before investing in FAD.
How sensitive is FAD to interest rate changes?
As an ETF focused on equity investments, FAD's direct sensitivity to interest rate changes is less pronounced compared to fixed-income funds. However, interest rate movements can indirectly impact FAD's performance through their effects on the broader economy and stock market. Rising interest rates can lead to higher borrowing costs for companies, potentially dampening economic growth and negatively impacting stock valuations. Conversely, lower interest rates can stimulate economic activity and boost stock prices. Investors should monitor interest rate trends and their potential impact on the growth stock market when evaluating FAD.
What regulatory challenges does First Trust Multi Cap Growth AlphaDEX Fund face?
First Trust Multi Cap Growth AlphaDEX Fund (FAD) faces regulatory challenges common to ETFs, including compliance with the Investment Company Act of 1940 and other securities laws. The fund must adhere to strict rules regarding portfolio composition, diversification, and disclosure requirements. Compliance costs can be significant, requiring ongoing monitoring and reporting. Changes in regulations can also impact the fund's operations and profitability. Investors should be aware of the regulatory environment and its potential impact on FAD's performance.
What are the key factors to evaluate for FAD?
First Trust Multi Cap Growth AlphaDEX Fund (FAD) holds an AI score of 47/100 (low). Not financial advice.
How frequently does FAD data refresh on this page?
FAD prices update in real time during U.S. market hours. Fundamentals refresh after quarterly filings; analyst ratings and AI insights update daily; news is aggregated continuously.
What has driven FAD's recent stock price performance?
First Trust Multi Cap Growth AlphaDEX Fund (FAD) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Diversified portfolio of growth stocks. See the News tab for the latest drivers. Past performance does not predict future results.
Should investors consider FAD overvalued or undervalued right now?
Valuing First Trust Multi Cap Growth AlphaDEX Fund (FAD) requires multiple metrics. Compare P/E, P/S, and EV/EBITDA against sector peers for a full view.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- AI analysis pending for FAD, limiting the depth of available insights.
- Financial data is based on available information as of 2026-03-18.