(FYT) First Trust Small Cap Value - Ratings and Ratios

The First Trust Small Cap Value AlphaDEX Fund (FYT) is an actively managed ETF that focuses on capturing value-oriented small-cap stocks with potential for alpha generation. By investing at least 90% of its net assets in securities and REITs comprising the underlying index, FYT aims to leverage the AlphaDEX methodology to outperform traditional indices on a risk-adjusted basis.

The AlphaDEX selection process is a rules-based approach designed to identify stocks with characteristics that may lead to superior returns. By filtering the NASDAQ US700 Small Cap Index, the methodology isolates value stocks that exhibit favorable attributes, potentially resulting in enhanced portfolio performance. This systematic strategy enables FYT to maintain a disciplined investment approach, unencumbered by emotional or subjective biases.

Analyzing the technical data, FYTs current price is $50.57, indicating a potential buy signal as it is above both its 20-day SMA ($47.64) and 50-day SMA ($48.00). However, the funds price is below its 200-day SMA ($53.25), suggesting a longer-term downtrend. The Average True Range (ATR) of 1.34, or 2.65%, implies moderate volatility. Given the 52-week high and low of $60.17 and $42.78, respectively, FYT has demonstrated significant price fluctuations over the past year.

Combining technical and fundamental insights, a forecast for FYT can be derived. With a relatively small AUM of $117.46M USD, the fund may be susceptible to liquidity risks and potential volatility. Nevertheless, its focus on small-cap value stocks with alpha potential positions FYT for possible long-term growth. If the current uptrend continues, and FYT breaks above its 200-day SMA, it may signal a stronger bullish trend. Conversely, failure to sustain the current price level could result in a decline towards the 52-week low. Based on the technical indicators, a potential price target could be $55.00, representing a 8.7% increase from the current price. However, this forecast is contingent upon the funds ability to maintain its momentum and navigate the inherent risks associated with small-cap investing.