First Trust Developed Markets Ex-US AlphaDEX® Fund (FDT)

Overview

The First Trust Developed Markets ex-US AlphaDEXu00ae Fund (FDT) seeks investment results that correspond generally to the price and yield of an equity index called the NASDAQ AlphaDEXu00ae Developed Markets ex-US Index. It uses an enhanced indexing strategy to select and weight securities from developed markets outside the US, aiming for outperformance through a rules-based approach.

Reputation and Reliability

First Trust is a well-established ETF provider known for its innovative and factor-based investment strategies.

Management Expertise

First Trust has a dedicated team of investment professionals with experience in managing and analyzing equity portfolios.

Goal

To provide investment results that generally correspond to the price and yield of the NASDAQ AlphaDEXu00ae Developed Markets ex-US Index.

Investment Approach and Strategy

Strategy: The fund employs an enhanced indexing strategy, selecting stocks based on growth factors including 3-, 6- and 12-month price appreciation, sales to price and one-year sales growth, and value factors including book value to price, cash flow to price and return on assets.

Composition Primarily holds stocks from developed markets excluding the United States.

Market Share: Data needed.

Total Net Assets (AUM): 519400000

Key Competitors

• VEA
• IDEV
• SCHF

Competitive Landscape

The international developed market ETF space is highly competitive. FDT differentiates itself through its AlphaDEX methodology, potentially offering higher returns than market-cap weighted indices, but also introducing the risk of underperformance. Its expense ratio is higher than some of its competitors.

Historical Performance: Data needed.

Benchmark Comparison: Data needed.

Expense Ratio: 0.008

Average Trading Volume

The average trading volume for FDT indicates moderate liquidity.

Bid-Ask Spread

The bid-ask spread for FDT is generally competitive, reflecting its tradability.

Market Environment Factors

Economic growth in developed markets outside the U.S., currency fluctuations, and political stability all impact FDT's performance.

Growth Trajectory

FDT's growth depends on its ability to consistently outperform its benchmark through its AlphaDEX selection methodology and on the overall performance of developed markets ex-US.

Competitive Edge

FDT's primary advantage lies in its AlphaDEX methodology, which aims to select stocks with superior growth and value characteristics. This rules-based approach provides a systematic way to identify potentially undervalued or high-growth companies. However, this advantage depends on the continued effectiveness of the AlphaDEX factors in capturing market inefficiencies. Its smaller AUM compared to larger competitors could be seen as a disadvantage.

Volatility

FDT's volatility is expected to be similar to other developed markets ex-US equity ETFs, influenced by global market fluctuations and currency risks.

Market Risk

FDT is subject to market risk related to the performance of international equities and also to country-specific and currency risks.

Ideal Investor Profile

Investors seeking international equity exposure with a tilt towards growth and value factors may find FDT appealing.

Market Risk

FDT is suitable for long-term investors looking to diversify their portfolios with international equities. The enhanced indexing strategy is also appealing to investors that have a higher risk tolerance and those looking for potentially higher returns.

The First Trust Developed Markets ex-US AlphaDEXu00ae Fund (FDT) offers exposure to developed markets outside the U.S. with an enhanced indexing strategy. Its AlphaDEX methodology distinguishes it from market-cap weighted ETFs, aiming for higher returns. However, it also carries a slightly higher expense ratio. Investors should consider its factor-based approach and risk profile relative to other international equity ETFs.

Data Sources:

• First Trust website
• ETF.com
• Morningstar

Disclaimers:

The data provided is for informational purposes only and does not constitute investment advice. Investors should conduct their own research and consult with a financial advisor before making any investment decisions.