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Stock impact report

Should First Trust Small Cap Growth AlphaDEX ETF (FYC) Be on Your Investing Radar? [Yahoo! Finance]

Praxis Precision Medicines, Inc. (PRAX) 
Company Research Source: Yahoo! Finance
The fund is sponsored by First Trust Advisors. It has amassed assets over $888.30 million, making it one of the average sized ETFs attempting to match the Small Cap Growth segment of the US equity market. Sitting at a market capitalization below $2 billion, small cap companies tend to be high-potential stocks compared to its large and mid cap counterparts, but come with higher risk. While growth stocks do boast higher than average sales and earnings growth rates, and they are expected to grow faster than the wider market, investors should note these kinds of stocks have higher valuations. Further, growth stocks have a higher level of volatility associated with them. When you consider growth versus value, growth stocks are usually the clear winner in strong bull markets but tend to fall flat in nearly all other environments. When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterp Show less Read more
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