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

Overview

The First Trust Developed Markets ex-US AlphaDEXu00ae Fund (FDT) is an ETF that seeks investment results that correspond to the AlphaDEXu00ae Developed Markets ex-US Index. It uses a quantitative methodology to select and weight stocks from developed markets outside the US, aiming for superior risk-adjusted returns.

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 portfolio managers and analysts with experience in quantitative investing and global equity markets.

Goal

To seek investment results that correspond to the AlphaDEXu00ae Developed Markets ex-US Index.

Investment Approach and Strategy

Strategy: This ETF tracks an index based on the AlphaDEXu00ae methodology, which ranks stocks based on growth factors and value factors.

Composition The ETF holds a portfolio of common stocks from developed markets ex-US. It excludes US companies.

Market Share: Data unavailable.

Total Net Assets (AUM): 94900000

Key Competitors

• VEA
• IDEV
• SCHF

Competitive Landscape

The international developed markets ETF space is highly competitive, with several large players offering broad market exposure at very low costs. FDT differentiates itself through its AlphaDEXu00ae methodology, which aims to outperform traditional market-cap weighted indices. However, this active approach leads to a higher expense ratio, which can be a disadvantage if it doesn't consistently generate superior returns.

Historical Performance: Historical performance data unavailable for direct numerical output.

Benchmark Comparison: Performance should be compared to the AlphaDEXu00ae Developed Markets ex-US Index.

Expense Ratio: 0.0059

Average Trading Volume

The ETF exhibits moderate liquidity, as it's average trading volume fluctuates with market conditions.

Bid-Ask Spread

The bid-ask spread fluctuates depending on trading volume and market conditions.

Market Environment Factors

Economic growth in developed markets ex-US, interest rate policies of central banks, currency fluctuations, and geopolitical events can significantly impact the fund's performance.

Growth Trajectory

The growth trajectory depends on the success of the AlphaDEXu00ae methodology in identifying and capturing excess returns in developed markets. Changes to the index methodology and holdings are regularly reviewed.

Competitive Edge

FDT's competitive edge lies in its smart beta approach, leveraging the AlphaDEXu00ae methodology to identify potentially undervalued stocks in developed markets. This quantitative approach distinguishes it from passive market-cap weighted ETFs. The strategy's focus on growth and value factors may lead to higher returns compared to traditional indices. However, the success of this approach depends on the continued effectiveness of the AlphaDEXu00ae methodology in a changing market environment. The fund's higher expense ratio needs to be justified by superior performance.

Volatility

Volatility will depend on the underlying stock holdings and market conditions. It's likely to be similar to the volatility of the broader developed markets ex-US equity market.

Market Risk

The ETF is subject to market risk, including fluctuations in equity prices and currency exchange rates. Specific risks include economic slowdowns in developed markets, political instability, and changes in trade policies.

Ideal Investor Profile

Investors seeking exposure to developed markets ex-US with a potential for higher returns through a smart beta strategy may find this ETF appealing.

Market Risk

This ETF is suitable for long-term investors who are comfortable with moderate risk and understand the nuances of quantitative investment strategies.

First Trust Developed Markets ex-US AlphaDEXu00ae Fund (FDT) offers exposure to developed markets excluding the US, utilizing a smart beta strategy with the AlphaDEXu00ae methodology. This approach aims to outperform traditional market-cap weighted indices by selecting stocks based on growth and value factors. It may be a suitable option for investors seeking potentially higher returns, but they should be aware of the higher expense ratio. Investors should carefully consider the ETF's investment strategy and risks before investing.

Data Sources:

• First Trust Website
• ETF.com
• Morningstar

Disclaimers:

The information provided is for informational purposes only and should not be considered investment advice. Past performance is not indicative of future results. Investors should consult with a qualified financial advisor before making any investment decisions.