At a glance
FAD charges 0.63% a year, above the 0.26% average of the 8 funds most like it (the most expensive of 9). It has $577.4M in assets, the 9th largest of that group; it paid 0.08% of its price in distributions over the past 12 months, quarterly. Over the past year it returned +8.6% with distributions reinvested (S&P 500: +11.5%), 8th of those 9 funds; over three years it returned +25.1% a year. At its worst it fell 37.2% in the 2020 crash (S&P 500: 33.7%) and 28.2% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 4 months and 21 months after the lows. Its ten largest positions make up 5.0% of the fund, out of 677 in all.
The short version
First Trust Multi Cap Growth AlphaDEX Fund (FAD) is an index ETF that tracks the Nasdaq AlphaDEX Multi Cap Growth Index. The index is a rules-based mix of about 677 large, mid-size and small US growth stocks. It does not weight companies by size. Instead, it scores stocks on growth and value measures and spreads money thinly, so no stock was much above 0.5% of assets as of July 31, 2026. The drawback is cost: 0.63% a year, against a 0.26% average for similar funds.
Price history
The interactive chart needs JavaScript.
FAD +8.6% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| FAD official prospectus, to Dec 31, 2024 | — | +23.68% | — | +12.80% | +11.47% | +9.47% |
| FAD price data to Oct 27, 2026 | +11.5% | +8.6% | +25.1% | +8.3% | +14.1% | +10.1% |
- Over the year to Oct 27, 2026, FAD returned +8.6%, 8th of 9 among similar funds.
- Its 5-year annualized return was +8.3% and its 10-year +14.1%.
- In the 2020 COVID crash it fell 37.2% and regained its old high 4.4 months after the low.
- Its worst full calendar year was 2008 (-38.8%); its best was 2013 (+38.4%).
- The deepest fall in its price history was 54.3% (Oct 10, 2007 to Mar 6, 2009), recovered by Feb 10, 2011.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +11.5% | — |
| 2025 | +17.2% | — |
| 2024 | +23.8% | +23.68% |
| 2023 | +19.1% | +19.22% |
| 2022 | -24.1% | -23.77% |
| 2021 | +21.2% | +20.71% |
| 2020 | +34.9% | +34.59% |
| 2019 | +26.7% | +27.17% |
| 2018 | -6.5% | -6.22% |
| 2017 | +25.7% | +24.68% |
| 2016 | +5.9% | +6.83% |
| 2015 | +2.2% | +2.10% |
| 2014 | +8.7% | — |
| 2013 | +38.4% | — |
| 2012 | +10.9% | — |
| 2011 | -0.8% | — |
| 2010 | +25.2% | — |
| 2009 | +30.9% | — |
| 2008 | -38.8% | — |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Lost 53.2% over that stretch · deepest drop along the way 54.3%, back to its old high 23.2 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 37.2% over that stretch · deepest drop along the way 37.2%, back to its old high 4.4 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 26.6% over that stretch · deepest drop along the way 28.2%, back to its old high 21.2 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.1400 | |
| 2025 | $0.1600 | -80.0% |
| 2024 | $0.8000 | +40.4% |
| 2023 | $0.5700 | +1.8% |
| 2022 | $0.5600 | +409.1% |
| 2021 | $0.1100 | -66.7% |
| 2020 | $0.3300 | -10.8% |
| 2019 | $0.3700 | +208.3% |
| 2018 | $0.1200 | -14.3% |
| 2017 | $0.1400 | -57.6% |
| 2016 | $0.3300 | +65.0% |
| 2015 | $0.2000 | -4.8% |
| 2014 | $0.2100 | +61.5% |
| 2013 | $0.1300 | -71.7% |
| 2012 | $0.4600 | +411.1% |
| 2011 | $0.0900 | 0.0% |
| 2010 | $0.0900 | +125.0% |
| 2009 | $0.0400 | 0.0% |
| 2008 | $0.0400 |
What's inside
As of Jul 31, 2026, the fund held 677 securities; the ten largest made up 4.95% of assets.
| Holding | Weight | |
|---|---|---|
| DAIWA CAPITAL MARKETS AMERICA INC. RA | 0.57% | |
| INCYTE CORP | 0.51% | |
| FORTINET INC | 0.51% | |
| DATADOG INC | 0.50% | |
| EBAY INC | 0.49% | |
| INTERACTIVE BROKERS GROUP INC | 0.49% | |
| MORGAN STANLEY | 0.49% | |
| EMCOR GROUP INC | 0.46% | |
| CINCINNATI FINANCIAL CORP | 0.46% | |
| UNITED RENTALS INC | 0.46% | |
| ROSS STORES INC | 0.46% | |
| DELL TECHNOLOGIES INC | 0.45% | |
| ILLUMINA INC | 0.45% | |
| QUANTA SERVICES INC | 0.45% | |
| ANALOG DEVICES INC | 0.45% |
By country
United States 96.07%Ireland 1.83%Cayman Islands 1.01%Bermuda 0.7%Liberia 0.28%By asset type
Stocks 99.99%RA 0.57%What changed recently
- Over the three months to Jul 31, 2026, investors added a net $85.0M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +5.84%, +6.27%, -8.33%.
How it works
FAD normally puts at least 90% of its assets in the stocks of the Nasdaq AlphaDEX Multi Cap Growth Index, which is built by Nasdaq, Inc. The index starts with three Nasdaq growth indexes, one each for large, mid-size and small US companies. It drops duplicate share classes and stocks that trade too thinly. Within each size group, it ranks the rest on growth and value measures and gives each stock a score. It then keeps the top 187 large, 225 mid-size and 262 small stocks.
Within each size group, the chosen stocks are split into five equal groups, called quintiles, by score. Higher-scoring groups get more weight. The weights are then scaled so large companies make up 50% of the index, mid-size companies 30% and small companies 20%. As a result, a giant company counts for about as much as a mid-size one. As of July 31, 2026, the largest stock holdings were Incyte, Fortinet, Datadog, eBay and Interactive Brokers, at about 0.5% each. The ten largest positions made up about 5% of assets.
The index is rebuilt and rebalanced every quarter, and the fund trades to match shortly afterward. Turnover was 110% in the latest prospectus, which means the fund traded about as much stock as its whole portfolio is worth over the year. Trading costs from that turnover are not counted in the expense ratio. The fund uses no leverage, options or derivatives.
What it really costs
- FAD charges 0.63% a year, versus an average of 0.26% for the similar funds below (9th of 9, cheapest first).
- Of that, 0.5% is the management fee; the rest covers other fund expenses.
In a retirement portfolio
FAD is an all-stock growth fund that has fallen harder than the overall market in major sell-offs, so it fits better as a smaller slice next to steadier core holdings.
FAD adds growth stocks of all sizes, weighted far more evenly than in most growth funds. Its downturns have been deep. In the 2008 financial crisis it fell 54.3% and did not get back to its old high until February 10, 2011. Its worst calendar year was 2008, at −38.8%. It dropped 37.2% in the 2020 COVID crash but recovered by July 30, 2020. In the 2022 bear market it fell 28.2% and took until March 21, 2024 to recover. Its beta of 1.41 over the year to October 27, 2026 means it tended to move about 1.4 times as much as the market. The trailing yield was just 0.08% as of that date, paid quarterly. Anyone drawing money from it would mostly be selling shares, possibly at low prices in a bad year.
The 0.63% expense ratio is well above the 0.26% average for similar funds. Past results don't predict the future, and a retirement plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want large, mid-size and small growth stocks in one fund, with a fixed 50/30/20 size mix instead of weighting by company size.
- Those who like spreading money across about 677 stocks, with the ten largest positions totaling only about 5% as of July 31, 2026.
- Long-term holders who can sit through drops like 54.3% in 2008 and 28.2% in 2022, using FAD as a smaller, higher-risk slice.
Look elsewhere if
- Cost-conscious investors: FAD's 0.63% expense ratio ranks 9th of 9 among similar funds, while Vanguard Small Cap Growth ETF (VBK) charges 0.07%.
- People who need income: FAD's trailing yield was 0.08% as of October 27, 2026, so it pays almost nothing to live on.
- Investors who want a calmer ride, or the largest US companies at full size: FAD's one-year beta was 1.41, and giant stocks get small weights.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
| Fund | Overlap | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| FAD this fund | — | 0.63% | $577.4M | +8.6% | +25.1% |
| FTC First Trust Large Cap Growth AlphaDEX Fund | 50% | 0.58% | $1.32B | +6.4% | +24.5% |
| FEX First Trust Large Cap Core AlphaDEX Fund | 40% | 0.58% | $1.57B | +17.4% | +22.9% |
| VBK Vanguard Small Cap Growth ETF | 35% | 0.07% | $47.02B | +10.3% | +19.4% |
| VFMO Vanguard U.S. Momentum Factor ETF | 34% | 0.13% | $1.92B | +12.8% | +29.1% |
| ISCG iShares Morningstar Small-Cap Growth ETF | 32% | 0.06% | $970.9M | +10.3% | +21.2% |
| VXF Vanguard Extended Market ETF | 28% | 0.05% | $97.70B | +11.2% | +21.5% |
| VB Vanguard Small Cap ETF | 28% | 0.05% | $188.70B | +16.1% | +19.7% |
Questions investors ask
Does FAD pay dividends?
Yes, but very little. FAD pays dividends quarterly. Over the 12 months to October 27, 2026, it paid about $0.15 per share, a trailing yield of 0.08%. That is low even for a growth fund. Growth companies often reinvest their profits instead of paying them out. FAD also spreads its money across hundreds of mid-size and small companies, and many of them pay no dividend. Investors looking for regular income would need to look at other kinds of funds.
What's the difference between FAD and FTC?
Both are First Trust AlphaDEX growth funds, but FTC holds only large companies. FAD mixes large, mid-size and small companies in a 50/30/20 split. About 50% of their holdings overlap. FTC costs a little less, 0.58% a year against FAD's 0.63%. As of October 27, 2026, FAD returned 8.6% over one year and 25.1% a year over three years. FTC returned 6.4% and 24.5% over the same periods. FAD's smaller companies add more variety but can add risk.
What is FAD's expense ratio?
FAD's expense ratio is 0.63% a year, according to its prospectus filed November 28, 2025. That includes a 0.50% management fee, and there is no fee waiver. The average for similar funds is 0.26%, and FAD is the most expensive of the nine funds compared. Broad Vanguard index funds with overlapping holdings, such as Vanguard Small Cap ETF (VB) and Vanguard Extended Market ETF (VXF), charge 0.05%. FAD's 110% turnover also adds trading costs that are not counted in the expense ratio.
What are FAD's top holdings?
FAD has no dominant holdings. As of July 31, 2026, its largest stock positions were Incyte, Fortinet, Datadog, eBay, Interactive Brokers and Morgan Stanley, at about 0.5% of assets each. EMCOR Group, Cincinnati Financial and United Rentals came close behind. The fund held about 677 stocks, and the ten largest positions made up only about 5% of assets. Industrials and information technology were its biggest areas as of October 31, 2025. The list changes every quarter when the index is rebuilt.
How has FAD performed over the long term?
FAD has grown over time, with sharp swings along the way. Its prospectus shows average yearly returns of 12.80% over five years and 11.47% over ten years, as of December 31, 2024. Since its May 2007 launch, the figure was 9.47% a year. Based on share price, it returned 14.1% a year over the ten years to October 27, 2026. It also had bad stretches: it lost 23.77% in 2022 and fell 54.3% from peak to low during the 2008 crisis.