Designed to provide broad exposure to the Small Cap Value segment of the US equity market, the First Trust Small Cap Value AlphaDEX ETF (FYT) is a passively managed exchange traded fund launched on 04/19/2011.The fund is sponsored by First Trust Advisors. It has amassed assets over $205.58 million, making it one of the average sized ETFs attempting to match the Small Cap Value segment of the US equity market.Why Small Cap ValueWith more potential comes more risk, and small cap companies, with market capitalization below $2 billion, epitomizes this way of thinking.Carrying lower than average price-to-earnings and price-to-book ratios, value stocks also have lower than average sales and earnings growth rates. Considering long-term performance, value stocks have outperformed growth stocks in almost all markets; however, they are more likely to underperform growth stocks in strong bull markets.CostsInvestors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.Annual operating expenses for this ETF are 0.71%, making it one of the most expensive products in the space.It has a 12-month trailing dividend yield of 1.38%.Sector Exposure and Top HoldingsEven though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.This ETF has heaviest allocation to the Financials sector--about 31.40% of the portfolio. Industrials and Consumer Discretionary round out the top three.Looking at individual holdings, Renewable Energy Group, Inc. (REGI) accounts for about 0.93% of total assets, followed by Cornerstone Building Brands Inc. (CNR) and Transocean Ltd. (RIG).The top 10 holdings account for about 7.92% of total assets under management.Performance and RiskFYT seeks to match the performance of the Nasdaq AlphaDEX Small Cap Value Index before fees and expenses. The NASDAQ AlphaDEX Small Cap Value Index is an enhanced index which employs the AlphaDEX stock selection methodology to select stocks from the NASDAQ US 700 Small Cap Value Index.The ETF has lost about -19.11% so far this year and is down about -12.19% in the last one year (as of 06/21/2022). In the past 52-week period, it has traded between $42.85 and $54.42.The ETF has a beta of 1.39 and standard deviation of 35.98% for the trailing three-year period, making it a high risk choice in the space. With about 263 holdings, it effectively diversifies company-specific risk.AlternativesFirst Trust Small Cap Value AlphaDEX ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, FYT is a reasonable option for those seeking exposure to the Style Box - Small Cap Value area of the market. Investors might also want to consider some other ETF options in the space.The iShares Russell 2000 Value ETF (IWN) and the Vanguard SmallCap Value ETF (VBR) track a similar index. While iShares Russell 2000 Value ETF has $11.31 billion in assets, Vanguard SmallCap Value ETF has $21.40 billion. IWN has an expense ratio of 0.24% and VBR charges 0.07%.Bottom-LinePassively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center. Want key ETF info delivered straight to your inbox? Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.Get it free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report First Trust Small Cap Value AlphaDEX ETF (FYT): ETF Research Reports Transocean Ltd. (RIG): Free Stock Analysis Report Vanguard SmallCap Value ETF (VBR): ETF Research Reports iShares Russell 2000 Value ETF (IWN): ETF Research Reports Cornerstone Building Brands, Inc. (CNR): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research