At a glance
FYC charges 0.7% a year, above the 0.26% average of the 8 funds most like it (the most expensive of 9). It has $1.30B in assets, the 6th largest of that group; it paid 0.11% of its price in distributions over the past 12 months, annual. Over the past year it returned +19.9% with distributions reinvested (S&P 500: +11.5%), 2nd of those 9 funds; over three years it returned +31.3% a year. At its worst it fell 43.3% in the 2020 crash (S&P 500: 33.7%) and 30.6% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 6 months and 27 months after the lows. Its ten largest positions make up 7.8% of the fund, out of 265 in all.
The short version
First Trust Small Cap Growth AlphaDEX Fund (FYC) is an index ETF that tracks the Nasdaq AlphaDEX Small Cap Growth Index. That index uses a rules-based screen to pick 262 small US growth stocks and gives bigger weights to the higher-scoring ones. Its 0.70% expense ratio is higher than all eight similar funds we compared. Its three-year returns to October 27, 2026 were the strongest of the group.
Price history
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FYC +19.9% 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 | |
|---|---|---|---|---|---|---|
| FYC official prospectus, to Dec 31, 2024 | — | +24.05% | — | +11.07% | +10.29% | +10.65% |
| FYC price data to Oct 27, 2026 | +20.0% | +19.9% | +31.3% | +9.9% | +14.3% | +12.1% |
- Over the year to Oct 27, 2026, FYC returned +19.9%, 2nd of 9 among similar funds.
- Its 5-year annualized return was +9.9% and its 10-year +14.3%.
- In the 2020 COVID crash it fell 43.3% and regained its old high 5.5 months after the low.
- Its worst full calendar year was 2022 (-25.9%); its best was 2013 (+43.5%).
- The deepest fall in its price history was 47.9% (Aug 31, 2018 to Mar 18, 2020), recovered by Nov 16, 2020.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +20.0% | — |
| 2025 | +24.3% | — |
| 2024 | +24.0% | +24.05% |
| 2023 | +14.5% | +14.15% |
| 2022 | -25.9% | -25.75% |
| 2021 | +21.6% | +21.75% |
| 2020 | +32.3% | +32.08% |
| 2019 | +16.8% | +16.80% |
| 2018 | -5.5% | -5.60% |
| 2017 | +23.0% | +23.19% |
| 2016 | +13.8% | +13.92% |
| 2015 | +1.2% | +1.78% |
| 2014 | -1.1% | — |
| 2013 | +43.5% | — |
| 2012 | +11.5% | — |
| 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 41.9% over that stretch · deepest drop along the way 43.3%, back to its old high 5.5 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 27.6% over that stretch · deepest drop along the way 30.6%, back to its old high 27.1 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.1300 | |
| 2025 | $0.0800 | -85.7% |
| 2024 | $0.5600 | +51.4% |
| 2023 | $0.3700 | +18400.0% |
| 2022 | $0.0020 | -99.6% |
| 2021 | $0.4700 | +571.4% |
| 2020 | $0.0700 | -61.1% |
| 2019 | $0.1800 | +429.4% |
| 2018 | $0.0340 | -15.0% |
| 2017 | $0.0400 | -64.9% |
| 2016 | $0.1140 | +52.0% |
| 2015 | $0.0750 | +650.0% |
| 2014 | $0.0100 | 0.0% |
| 2013 | $0.0100 | -88.9% |
| 2012 | $0.0900 |
What's inside
As of Jul 31, 2026, the fund held 265 securities; the ten largest made up 7.84% of assets.
| Holding | Weight | |
|---|---|---|
| J.P. MORGAN SECURITIES LLC RA | 1.04% | |
| ACADIAN ASSET MANAGEMENT INC | 0.82% | |
| CHEFS' WAREHOUSE INC (THE) | 0.81% | |
| RINGCENTRAL INC | 0.77% | |
| PRECIGEN INC | 0.74% | |
| FIRST ADVANTAGE CORP | 0.74% | |
| OSCAR HEALTH INC | 0.74% | |
| ATAIBECKLEY INC | 0.74% | |
| NATIONAL HEALTHCARE CORP | 0.72% | |
| LIQUIDIA CORP | 0.71% | |
| NEOGENOMICS INC | 0.71% | |
| CHEESECAKE FACTORY INC (THE) | 0.69% | |
| REMITLY GLOBAL INC | 0.69% | |
| ENCORE CAPITAL GROUP INC | 0.68% | |
| RELAY THERAPEUTICS INC | 0.68% |
By country
United States 96.82%Cayman Islands 1.35%Ireland 0.66%British Virgin Islands 0.58%Netherlands 0.51%By asset type
Stocks 99.99%RA 1.04%What changed recently
- Over the three months to Jul 31, 2026, investors added a net $185.0M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +4.29%, +9.71%, -6.83%.
How it works
FYC aims to match the Nasdaq AlphaDEX Small Cap Growth Index, before fees. Nasdaq builds and runs the index. The starting pool is the Nasdaq US 700 Small Cap Growth Index. Nasdaq removes duplicate share classes and stocks that trade too thinly. It then ranks the rest on growth and value factors. Each stock gets a selection score from the rank that matches its style, and the top 262 make the cut. The aim is "alpha," meaning better risk-adjusted returns than a traditional index.
The index does not weight stocks by company size. Instead, it splits the 262 stocks into five groups (quintiles) by score, and higher-scoring groups get bigger weights. The result is a widely spread portfolio. As of July 31, 2026, the fund held 265 positions, and its top 10 made up only 7.84% of assets. The largest stock holdings were Acadian Asset Management, Chefs' Warehouse and RingCentral, each under 1%.
The index is rebuilt and rebalanced every quarter, and the fund trades to keep up. The prospectus lists portfolio turnover of 137%, which is far more trading than a typical index fund. The fund can end up concentrated in whatever sectors the screen favors. As of October 31, 2025, those were health care and industrials. The fund does not use leverage, and it held no derivatives as of July 31, 2026.
What it really costs
- FYC charges 0.7% a year, versus an average of 0.26% for the similar funds below (9th of 9, cheapest first).
In a retirement portfolio
FYC holds a narrow slice of the market, small growth stocks, and its swings have been well above the market's, so it fits better as a small side position than as a core holding.
FYC could add a tilt toward small, fast-growing US companies. But it moves more than the broad market: its one-year beta was 1.32 as of October 27, 2026 (a beta above 1.0 means bigger swings than the market). It fell 43.3% in the 2020 COVID crash and was back to its peak by September 2, 2020. In the 2022 bear market it fell 30.6% and took about 27 months to recover. Its worst calendar year was 2022, when it lost 25.75%. Its deepest drop was 47.9%, from August 2018 to March 2020, and it recovered in November 2020. The fund launched in 2011, so it has no 2008 record.
Selling shares to cover spending during a slump like these would lock in steep losses. Income is minimal: the yield was 0.11% as of October 27, 2026, paid once a year. Its 0.70% expense ratio compares with a 0.26% average for similar funds. Past results don't predict future ones, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want small US growth stocks picked and weighted by a scoring screen rather than company size, spread across about 265 holdings.
- Long-term holders who can sit through deep drops, like the 30.6% fall in 2022 that took about 27 months to recover.
- People willing to pay 0.70% a year for an approach whose three-year returns to October 27, 2026 led similar small-cap growth funds.
Look elsewhere if
- Cost-focused investors: Vanguard Russell 2000 Growth ETF (VTWG) charges 0.10%, and similar funds average 0.26%, against FYC's 0.70%.
- Retirees seeking income: FYC's yield was 0.11% as of October 27, 2026, paid only once a year.
- Anyone who may need to sell in a downturn: FYC fell 43.3% in early 2020 and lost 25.75% in calendar 2022.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
| Fund | Overlap | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| FYC this fund | — | 0.7% | $1.30B | +19.9% | +31.3% |
| FYX First Trust Small Cap Core AlphaDEX Fund | 38% | 0.61% | $1.37B | +25.4% | +24.3% |
| VTWG Vanguard Russell 2000 Growth ETF | 28% | 0.1% | $1.73B | +6.6% | +21.0% |
| IWO iShares Russell 2000 Growth ETF | 27% | 0.24% | $15.43B | +6.0% | +18.8% |
| QSML WisdomTree U.S. SmallCap Quality Growth Fund | 27% | 0.38% | $11.6M | +19.6% | — |
| VIOG Vanguard S&P Small-Cap 600 Growth ETF | 26% | 0.1% | $1.09B | +14.5% | +17.9% |
| SLYG SPDR S&P 600 Small Cap Growth ETF | 26% | 0.15% | $5.20B | +14.6% | +17.7% |
| IJT iShares S&P Small-Cap 600 Growth ETF | 25% | 0.18% | $8.22B | +14.4% | +17.7% |
Questions investors ask
Does FYC pay a dividend?
Yes, but very little. FYC pays once a year. Its trailing 12-month yield was 0.11% as of October 27, 2026, or about $0.13 per share. That fits its holdings: small growth companies tend to put profits back into the business rather than pay them out. The prospectus warns that growth stocks may lack dividends that can help cushion share prices. Anyone who needs regular income from a portfolio would get almost none from this fund.
What is the AlphaDEX method in First Trust ETFs?
AlphaDEX is Nasdaq's rules-based way of choosing and weighting stocks, and FYC's index uses it. For FYC, it starts with the Nasdaq US 700 Small Cap Growth Index. It removes thinly traded stocks and duplicate share classes, ranks the rest on growth and value factors, and keeps the top 262. Those stocks are split into five groups, and higher scorers get bigger weights. The goal is better risk-adjusted returns than a traditional index, but nothing guarantees it will deliver them.
What's the difference between FYC and FYX?
Both are First Trust AlphaDEX funds. FYX, the First Trust Small Cap Core AlphaDEX Fund, is the core version, while FYC focuses on growth stocks. Their holdings overlapped by 38%, based on the latest N-PORT reports, the most of any similar fund. FYX costs less: 0.61% against FYC's 0.70%. Over the year to October 27, 2026, FYX returned 25.4% and FYC 19.9%. Over three years, FYC led with 31.3% a year against 24.3% for FYX.
Why does FYC cost more than IWO?
FYC charges 0.70% a year. The iShares Russell 2000 Growth ETF (IWO) charges 0.24%, and the Vanguard Russell 2000 Growth ETF (VTWG) charges 0.10%. FYC's fee covers its scoring screen and quarterly reshuffle, which produced 137% portfolio turnover. So far, returns have more than made up the gap. Over the three years to October 27, 2026, FYC returned 31.3% a year, against 21.6% for IWO and 21% for VTWG. That lead may not last, but the higher fee stays.
How much did FYC lose in 2022?
FYC lost 25.75% in calendar 2022. That was its worst year in the prospectus record, which covers 2015 through 2024. From its peak on January 3, 2022, it fell 30.6% by June 16, 2022. It did not get back to that peak until September 19, 2024, about 27 months later. Its deepest drop overall was 47.9%, from August 2018 to March 2020. Its volatility over the three years to October 27, 2026 was 22%.