First Trust Small Cap Value AlphaDEX Fund Could End 2021 Poorly

Small cap value stocks have performed well so far in 2021, paving the way for the ETFs covering this space to record profits for the investors.

FYT is Currently Underperforming

The First Trust Small Cap Value AlphaDEX ETF (FYT) has been around since 2011. It is a passively managed exchange-traded fund that provides investors with a broad exposure to the Small Cap Value segment of the United States stock market.

The fund is sponsored by First Trust Advisors and currently has nearly $230 million in assets under management, making it one of the average-sized ETFs attempting to match the Small Cap Value segment of the US stock market.

Before fees and expenses, the fund is designed to match the performance of the Nasdaq AlphaDEX Small Cap Value Index. This index uses the AlphaDEX stock selection methodology to select stocks from the NASDAQ US 700 Small Cap Value Index.

FYT has been underperforming in recent weeks, losing more than 4% over the past month. The fund is currently trading at $51.41 per share, down by less than a percent during the course of the US trading session.

FYT Could End the Year in the Red Zone

The recent poor performances could be extended till the end of the year. FYT focuses mostly on the financial sector, with nearly 30% of its portfolio in that area. Some of the stocks in its portfolio include Genworth Financial, Inc. (GNW), Tri Pointe Homes, Inc. (TPH), and Encore Wire Corporation (WIRE).

Since the start of the year, the fund has added more than 24% to its value, outperforming numerous ETFs in its category. The ETF has an annual operating expense of 0.71%, making it one of the most expensive products in the space. Meanwhile, its 12-month trailing dividend yield currently stands at 1.01%.

With the US stock market currently underperforming, FYT could end the year trading in the red zone. However, the recent poor performance would not be enough to erase the gains recorded by the ETF so far this year.