Ohio-based Lakeridge Wealth Management reported a sale of 47,314 shares of the First Trust Mid Cap Core AlphaDEX Fund (FNX 1.08%), an estimated $5.92 million trade based on quarterly average pricing, in a Wednesday SEC filing.
What Happened
According to the SEC filing released Wednesday, Lakeridge Wealth Management reduced its position in the First Trust Mid Cap Core AlphaDEX Fund (FNX 1.08%) by 47,314 shares, with the estimated transaction value at $5.92 million based on the quarterly average price.
What Else to Know
The fund’s FNX stake after the sale represents 1.47% of reportable assets under management.
Top holdings after the filing:
- NYSEMKT: FDVV: $19.38 million (8.92% of AUM)
- NYSE: SHW: $11.83 million (5.44% of AUM)
- NASDAQ: ISTB: $10.26 million (4.72% of AUM)
- NYSEMKT: AVUS: $8.42 million (3.88% of AUM)
- NYSEMKT: IVV: $7.78 million (3.58% of AUM)
As of Tuesday, FNX shares were priced at $131.60, up 13.48% over the past year and lagging the S&P 500 by 3.51 percentage points.
ETF Overview
| Metric | Value |
|---|---|
| AUM | $1.19 billion |
| Price (as of Tuesday) | $131.60 |
| Yield | 0.9% |
| 1-year total return | 13.48% |
ETF Snapshot
- FNX's investment strategy centers on tracking the NASDAQ US 600 Mid Cap Index using the AlphaDEX methodology, aiming to generate positive risk-adjusted returns through factor-based stock selection.
- The portfolio is composed primarily of U.S. mid-cap equities, with holdings diversified across sectors as determined by the AlphaDEX selection process.
- The fund is structured as an exchange-traded fund (ETF) with a transparent, rules-based approach.
The First Trust Mid Cap Core AlphaDEX Fund (FNX) is a U.S.-listed ETF with a market capitalization of $1.19 billion, offering investors exposure to a diversified portfolio of mid-cap stocks selected for their potential to outperform traditional benchmarks.
The fund leverages the proprietary AlphaDEX methodology to systematically identify and weight stocks based on quantitative factors, seeking to enhance risk-adjusted returns. FNX appeals to institutional and individual investors seeking mid-cap equity exposure with a factor-driven, rules-based investment process.
What this transaction means for investors
Trimming exposure after a solid year for mid-caps suggests this is less about disappointment and more about portfolio discipline, even if the fund has slightly underperformed the S&P 500. The First Trust Mid Cap Core AlphaDEX ETF has delivered a respectable run, with shares up about 13% over the past year and total assets around $1.2 billion. The fund tilts toward mid-cap stocks with favorable quantitative characteristics, resulting in high turnover and a portfolio that can look very different from traditional mid-cap benchmarks. Its net expense ratio sits at 0.62%, and Morningstar currently assigns it a Bronze Medalist rating, reflecting confidence in the process even if results can be cyclical.
After the sale, this position represents just 1.47% of reported assets, dwarfed by larger holdings in dividend focused ETFs, broad market exposure, and individual equities like Sherwin-Williams. That mix suggests mid-cap factor exposure is a satellite position, not a core conviction. So what should long-term investors keep in mind? Ultimately, factor-driven ETFs can add value over full cycles, but they require patience and periodic rebalancing.
Glossary
AlphaDEX® methodology: A proprietary, rules-based investment process that selects and weights stocks using quantitative factors.
Assets under management (AUM): The total market value of all assets a fund or investment manager oversees on behalf of clients.
13F reportable assets: Securities that institutional investment managers must disclose in quarterly SEC Form 13F filings.
Factor-based stock selection: An investment approach that chooses stocks based on measurable characteristics like value, growth, or momentum.
Risk-adjusted returns: Investment returns evaluated relative to the amount of risk taken to achieve them.
Exchange-traded fund (ETF): An investment fund traded on stock exchanges, holding a basket of securities like stocks or bonds.
Quarter-end position: The number of shares or value of a holding at the close of a financial quarter.
Stake: The ownership interest or amount of investment held in a particular asset or company.
Transparent, rules-based approach: An investment strategy that follows publicly disclosed, systematic criteria for selecting and weighting assets.
Mid-cap equities: Stocks of companies with a medium-sized market capitalization, typically between $2 billion and $10 billion.
Dividend yield: The annual dividend income from an investment, expressed as a percentage of its current price.
Total return: The investment's price change plus all dividends and distributions, assuming those payouts are reinvested.
