(FAB) First Trust Multi Cap Value - Ratings and Ratios

The First Trust Multi Cap Value AlphaDEX® Fund (NASDAQ:FAB) is an actively managed ETF that focuses on value stocks across large, mid, and small-cap segments of the US market. By investing at least 90% of its net assets in securities comprising its index, the fund aims to capitalize on the potential for positive alpha generation through the AlphaDEX selection methodology.

This methodology is designed to identify value stocks from the NASDAQ US500 Large Cap Index, NASDAQ US600 Mid Cap Index, and NASDAQ US700 Small Cap Index that are poised to outperform traditional indices on a risk-adjusted basis. The funds multi-cap approach allows it to diversify across various market capitalizations, potentially reducing reliance on any single segment and enhancing overall portfolio resilience.

From a technical standpoint, the current price of $80.88 is above its 20-day and 50-day simple moving averages (SMA20 and SMA50) of $76.77 and $76.89, respectively, indicating a short-term uptrend. However, it remains below its 200-day SMA of $81.64, suggesting that the long-term trend is still uncertain. The Average True Range (ATR) of 1.72, or 2.12%, indicates moderate volatility, and the stock is currently trading between its 52-week high of $89.34 and low of $68.87.

Fundamentally, the fund has $110.47 million in assets under management (AUM), which is a relatively modest size. This could potentially impact liquidity, but it also indicates a focused investment strategy.

Forecasting the funds performance involves analyzing both technical and fundamental data. Given the current technical indicators, if the fund can break through its 200-day SMA and sustain the momentum, it could potentially head towards its 52-week high. Conversely, failure to break through this resistance level could lead to a pullback. Fundamentally, the value-oriented strategy of the fund, combined with its diversified multi-cap approach, positions it well for potential long-term growth, especially if value stocks continue to regain favor in the market. Therefore, a forecast of moderate growth in the short term, with potential for further upside if the fund can maintain its upward momentum and value stocks continue to attract investor interest, is plausible.