What happened
According to a recent SEC filing, Per Stirling Capital Management, LLC. increased its position in the First Trust Mid Cap Core AlphaDEX Fund (FNX +0.47%) by 34,644 shares during the first quarter of 2026. Based on the average closing price for the quarter, the estimated transaction value was approximately $4.6 million. The fund's quarter-end FNX stake totaled 76,851 shares with a reported value of $9.9 million.
What else to know
- FNX now accounts for approximately 1.1% of Per Stirling's 13F AUM.
- Top holdings after the filing:
- NYSE: IVV: $48.2 million (5.3% of AUM)
- NASDAQ: DGRW: $28.8 million (3.2% of AUM)
- NYSE: VEA: $28.1 million (3.1% of AUM)
- NYSE: IVW: $24.0 million (2.6% of AUM)
- NYSE: IVE: $22.3 million (2.5% of AUM)
- As of May 11, 2026, FNX shares were trading at $138.67, up about 29% over the past year -- outperforming both the S&P 500 and its Mid-Cap Blend category benchmark by roughly 2 percentage points each.
| Metric | Value |
|---|---|
| AUM | $1.3 billion |
| Expense ratio | 0.62% |
| Dividend yield | 0.84% |
| 1-year return (as of 5/11/26) | 28.84% |
ETF snapshot
The First Trust Mid Cap Core AlphaDEX Fund (FNX) is a U.S.-listed ETF designed to deliver enhanced mid-cap equity exposure through a systematic, factor-driven selection process.
- Seeks to track the Nasdaq AlphaDEX Mid Cap Core Index using a rules-based, fundamentally weighted methodology.
- Screens and weights constituents based on quantitative growth and value metrics -- rather than market capitalization -- aiming to capture excess returns relative to standard mid-cap indexes.
What this transaction means for investors
Per Stirling's decision to increase its FNX position by more than 80% in Q1 -- adding more than 34,000 shares worth roughly $4.6 million -- may simply reflect routine rebalancing. The transaction only represented about 0.5% of the firm’s assets under mangement (AUM). But this was still a meaningful addition to an existing stake, and it signals Per’s continued conviction in the mid-cap space.
That conviction looks well-timed. FNX has gained approximately 29% over the past year, outperforming both the S&P 500 and its Mid-Cap Blend peer group. The AlphaDEX methodology behind FNX is worth understanding. Rather than simply weighting stocks by market cap (as a traditional index fund would), it screens holdings based on fundamental growth and value factors. The goal is to generate better risk-adjusted returns than a plain-vanilla mid-cap index -- and lately, FNX has been delivering.
Mid-cap stocks often fly under the radar compared to large-caps, but historically they've offered a compelling blend of growth potential and relative stability. For investors looking to add diversified mid-cap exposure without picking individual stocks, FNX offers a disciplined, factor-based approach backed by a well-established provider in First Trust. However, those comfortable with index funds should note that FNX’s factor-based methodology comes with a meaningfully higher expense ratio -- 0.6% -- than a passive mid-cap ETF. The fund also kicks out a modest 0.8% dividend yield, which won't move the needle for income-focused investors on its own, but adds a small return cushion on top of any price appreciation.
FNX is the kind of broadly diversified mid-cap fund that can make a sensible complement to the large-cap exposure most investors already hold. Per Stirling's incremental buy suggests at least one institutional manager sees continued upside from here.
