FYCETF

FYC is a smart beta ETF offering exposure to small-cap growth stocks with $1.33 billion in assets. While it has delivered solid year-to-date returns of 18.06% and one-year returns of 21.65%, its 0.70% expense ratio is relatively high compared to alternatives like IWO (0.24%) and VBK (0.05%). The fund carries higher risk with a beta of 1.19 and 21.75% standard deviation, making it suitable only for risk-tolerant investors.

First Trust Small Cap Growth AlphaDEX ETF (FYC) is a passively managed small-cap growth ETF with $1.39 billion in assets. While it has delivered strong year-to-date returns of 22.16%, its 0.7% expense ratio is relatively high compared to competitors. The ETF carries a Zacks ETF Rank of 3 (Hold) and is considered high-risk with a beta of 1.19, making it suitable for long-term investors seeking small-cap growth exposure.

U.S. PCE inflation came in softer than expected in August at 3.4% annually, easing Fed rate hike concerns and pushing markets to expect a December increase rather than October. Q2 GDP was revised upward to 2.2%, showing economic resilience. The article recommends five growth ETFs trading at lower P/E multiples than the S&P 500 as potential beneficiaries of lower interest rate expectations.