This ETF seeks to replicate a benchmark which offers exposure small cap firms that have value characteristics in the U.S. equity market. The investment thesis behind small caps is that these firms are likely to provide strong growth prospects to a portfolio and should have a much easier time growing then their large cap counterparts. However, these securities are extremely volatile and can experience large losses or gains in a very short period of time. Despite their volatility, these products should probably be in every investors' portfolio as they tend to move somewhat independently of large caps and can be a better 'pure play' on the American economy. This particular fund, since it focuses on value securities, has certain biases in its portfolio holdings and may not offer as much of a cross section as funds such as IWM. However, the fund does employ an 'alphaDEX methodology which makes it somewhat different from other products in the space. This method uses an equal dollar weighting system which looks to only invest in the best companies in the small cap space. While this greatly decreases the number of securities that the fund holds, it also increases expenses as well as FYT has a much higher expense ratio than comparable products, close to three times higher than many other funds in the space. As a result, cost conscious investors would be wise to look at other products and avoid FYT for their portfolios.