At a glance
FNK charges 0.74% a year, above the 0.3% average of the 8 funds most like it (the most expensive of 9). It has $228.1M in assets, the 8th largest of that group; it paid 1.57% of its price in distributions over the past 12 months, quarterly. Over the past year it returned +16.7% with distributions reinvested (S&P 500: +11.5%), 4th of those 9 funds; over three years it returned +16.7% a year. At its worst it fell 48.7% in the 2020 crash (S&P 500: 33.7%) and 20.4% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 8 months and 4 months after the lows. Its ten largest positions make up 8.9% of the fund, out of 226 in all.
The short version
First Trust Mid Cap Value AlphaDEX Fund (FNK) is an index ETF that tracks the Nasdaq AlphaDEX Mid Cap Value Index. That index is a rules-based pick of 225 mid-sized US value stocks, weighted by score rather than by company size. The money is spread thinly: its 10 largest positions made up about 9% of assets as of July 31, 2026. It also costs 0.74% a year, far more than plain mid-cap value funds such as IVOV at 0.10%.
Price history
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FNK +16.7% 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 | |
|---|---|---|---|---|---|---|
| FNK official prospectus, to Dec 31, 2024 | — | +6.66% | — | +10.04% | +7.37% | +8.99% |
| FNK price data to Oct 27, 2026 | +14.4% | +16.7% | +16.7% | +8.4% | +9.8% | +9.2% |
- Over the year to Oct 27, 2026, FNK returned +16.7%, 4th of 9 among similar funds.
- Its 5-year annualized return was +8.4% and its 10-year +9.8%.
- In the 2020 COVID crash it fell 48.7% and regained its old high 8.1 months after the low.
- Its worst full calendar year was 2018 (-14.7%); its best was 2013 (+38.5%).
- The deepest fall in its price history was 50.7% (Aug 21, 2018 to Mar 23, 2020), recovered by Jan 6, 2021.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +14.4% | — |
| 2025 | +5.7% | — |
| 2024 | +6.6% | +6.66% |
| 2023 | +21.0% | +20.64% |
| 2022 | -7.3% | -6.99% |
| 2021 | +33.6% | +33.53% |
| 2020 | +1.2% | +0.94% |
| 2019 | +20.5% | +20.65% |
| 2018 | -14.7% | -14.45% |
| 2017 | +11.8% | +11.44% |
| 2016 | +26.4% | +26.29% |
| 2015 | -13.5% | -13.11% |
| 2014 | +5.7% | — |
| 2013 | +38.5% | — |
| 2012 | +17.4% | — |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 48.4% over that stretch · deepest drop along the way 48.7%, back to its old high 8.1 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 16.2% over that stretch · deepest drop along the way 20.4%, back to its old high 3.9 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.7000 | |
| 2025 | $0.8500 | -2.3% |
| 2024 | $0.8700 | -3.3% |
| 2023 | $0.9000 | +26.8% |
| 2022 | $0.7100 | +20.3% |
| 2021 | $0.5900 | +1.7% |
| 2020 | $0.5800 | -10.8% |
| 2019 | $0.6500 | +20.4% |
| 2018 | $0.5400 | +5.9% |
| 2017 | $0.5100 | +10.9% |
| 2016 | $0.4600 | +21.1% |
| 2015 | $0.3800 | +11.8% |
| 2014 | $0.3400 | +54.5% |
| 2013 | $0.2200 | -40.5% |
| 2012 | $0.3700 |
What's inside
As of Jul 31, 2026, the fund held 226 securities; the ten largest made up 8.95% of assets.
| Holding | Weight | |
|---|---|---|
| DAIWA CAPITAL MARKETS AMERICA INC. RA | 1.02% | |
| EPAM SYSTEMS INC | 0.95% | |
| LITHIA MOTORS INC | 0.94% | |
| HF SINCLAIR CORP | 0.93% | |
| GENPACT LTD | 0.91% | |
| SM ENERGY COMPANY | 0.89% | |
| OVINTIV INC | 0.84% | |
| ADT INC | 0.83% | |
| PERMIAN RESOURCES CORP | 0.82% | |
| CF INDUSTRIES HOLDINGS INC | 0.82% | |
| ASBURY AUTOMOTIVE GROUP INC | 0.82% | |
| APA CORP | 0.81% | |
| UNIVERSAL HEALTH SERVICES INC | 0.80% | |
| MAXIMUS INC | 0.80% | |
| COMMERCIAL METALS COMPANY | 0.78% |
By country
United States 95.64%Bermuda 4.37%Ireland 0.61%Puerto Rico 0.3%By asset type
Stocks 99.91%RA 1.02%What changed recently
- Over the three months to Jul 31, 2026, investors added a net $520K (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: -1.30%, +3.57%, +3.33%.
How it works
FNK normally invests at least 90% of its net assets in the stocks of the Nasdaq AlphaDEX Mid Cap Value Index, which Nasdaq owns and maintains. The fund does not pick stocks on its own. It tries to match the index before fees. The index starts with the Nasdaq US 600 Mid Cap Value Index. It removes duplicate share classes and stocks that fail liquidity screens. Then it ranks the rest on growth and value factors. AlphaDEX is the name of this screening method. It aims to choose stocks that may beat traditional indexes after adjusting for risk (what investors call "alpha").
The 225 highest-scoring stocks make the cut. They are split into five equal groups, called quintiles, and higher-scoring groups get bigger weights. So a company's size does not set its weight, as it would in a typical index fund. As of October 31, 2025, the index's companies ranged from $1.9 billion to $19.18 billion in market value, and the fund had significant investments in financial companies.
The index is rebuilt and rebalanced every quarter, and the fund follows soon after. That drove portfolio turnover of 87%, according to the prospectus. Heavy trading can add costs that the expense ratio doesn't show. The fund uses no leverage or options, and it reported no derivatives as of July 31, 2026.
What it really costs
- FNK charges 0.74% a year, versus an average of 0.3% for the similar funds below (9th of 9, cheapest first).
- Of that, 0.7% is the management fee; the rest covers other fund expenses.
In a retirement portfolio
It adds a score-weighted tilt toward mid-sized value stocks, but it has fallen hard in sell-offs and costs more than similar funds.
FNK could add a tilt toward mid-sized, lower-priced US companies next to a broad core fund. The ride has been rough. The fund launched in 2011, so it has no record from the 2008 crisis. In the 2020 COVID crash it fell 48.7% in about a month and took about eight months to recover. In 2022 it dropped 20.4% and recovered in about four months. Its deepest decline, 50.7% from August 2018 to March 2020, was not fully made up until January 6, 2021. Its worst calendar year was 2018, at -14.45%. Anyone forced to sell during a slump like early 2020 would have locked in heavy losses. The yield was 1.57% as of October 27, 2026, paid quarterly. The 0.74% expense ratio compares with a 0.30% average for similar funds. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors seeking a mid-cap value tilt spread across about 226 holdings, with no single stock above 1% of assets as of July 31, 2026.
- People who prefer a rules-based, score-weighted index over size weighting and accept quarterly rebalancing and 87% portfolio turnover.
- Holders comfortable with significant exposure to financial companies, and to energy names such as Ovintiv, APA and Permian Resources among its largest positions.
Look elsewhere if
- Cost-focused investors: FNK charges 0.74% a year, versus 0.10% for IVOV and 0.15% for MDYV, which also hold mid-cap value stocks.
- Anyone who could not hold through declines like the 48.7% drop during the 2020 COVID crash or the 50.7% fall from 2018 to 2020.
- Income seekers: the trailing yield was 1.57% as of October 27, 2026, and it ranked last of nine similar funds on three-year returns.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
| Fund | Overlap | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| FNK this fund | — | 0.74% | $228.1M | +16.7% | +16.7% |
| FNX First Trust Mid Cap Core AlphaDEX Fund | 60% | 0.58% | $1.37B | +11.5% | +19.3% |
| EZM WisdomTree U.S. MidCap Fund | 39% | 0.38% | $938.6M | +13.8% | +18.1% |
| IVOV Vanguard S&P Mid-Cap 400 Value ETF | 39% | 0.1% | $1.49B | +12.2% | +17.9% |
| MDYV SPDR S&P 400 Mid Cap Value ETF | 37% | 0.15% | $2.68B | +12.1% | +17.8% |
| IJJ iShares S&P Mid-Cap 400 Value ETF | 37% | 0.18% | $8.73B | +12.0% | +17.8% |
| DFSV Dimensional US Small Cap Value ETF | 33% | 0.3% | $8.21B | +23.6% | +20.0% |
| FAB First Trust Multi Cap Value AlphaDEX Fund | 30% | 0.64% | $168.5M | +22.2% | +19.1% |
Questions investors ask
Is FNK good for retirement?
FNK fits better as a smaller, higher-risk part of a retirement portfolio than as a core holding. It tilts toward mid-sized US value stocks. But it fell 48.7% during the 2020 COVID crash and lost 14.45% in calendar 2018. Its 0.74% expense ratio is the highest of nine similar funds compared. Its 1.57% yield as of October 27, 2026, is modest. It may suit investors who want a value tilt next to a broader core fund.
What's the difference between FNK and FNX?
Both are First Trust AlphaDEX funds of mid-sized US stocks, and their holdings overlap by about 60%. FNK focuses on value stocks, while FNX is a mid-cap core fund. FNX costs less (0.58% versus 0.74%) and is much bigger: about $1.37 billion versus $228 million as of July 31, 2026. As of October 27, 2026, FNK returned 16.7% over one year versus 11.5% for FNX. Over three years, FNX was ahead, at 19.3% a year versus 16.7%.
Does FNK pay dividends?
Yes. FNK pays dividends quarterly. Over the 12 months through October 27, 2026, it paid about $0.99 per share, a trailing yield of 1.57%. The payouts come from dividends paid by the companies it holds. They can rise or fall as the index changes its holdings each quarter. The fund is built to track a value-stock index, not to maximize income, so its yield is modest for a value fund.
Why is FNK's expense ratio so high?
FNK charges 0.74% a year, according to its prospectus filed November 28, 2025. That includes a 0.70% management fee. It tracks a specialized index that screens, scores and reweights stocks every quarter, rather than a plain size-weighted index. Similar funds averaged 0.30%. Traditional mid-cap value funds cost far less: IVOV charges 0.10%, MDYV 0.15% and IJJ 0.18%. FNK ranked ninth of nine on cost in that comparison.
How has FNK performed over 10 years?
FNK returned an average of 7.37% a year over the 10 years ended December 31, 2024, according to its prospectus. Over five years it returned 10.04% a year, and 8.99% a year since its April 2011 launch. Based on price returns through October 27, 2026, its 10-year average was 9.8% a year. The path was bumpy. It had losing calendar years in 2015 (-13.11%), 2018 (-14.45%) and 2022 (-6.99%).