First Trust Emerging Markets AlphaDEX® Fund (FEM)

Overview

The First Trust Emerging Markets AlphaDEXu00ae Fund (FM) is an actively managed exchange-traded fund that seeks to track the performance of companies in emerging markets that exhibit positive fundamental characteristics. It targets a broad range of emerging market equities across various sectors.

Reputation and Reliability

First Trust is a well-established financial services company known for its diverse range of ETFs, including actively managed and factor-based strategies. They have a solid track record in product development and distribution.

Management Expertise

The ETF is managed by First Trust Advisors L.P., which employs a team of investment professionals with experience in portfolio management and quantitative analysis. The AlphaDEX methodology is a proprietary system designed to identify and select stocks with strong growth and value characteristics.

Goal

The primary investment goal of the First Trust Emerging Markets AlphaDEXu00ae Fund is to achieve capital appreciation by investing in emerging market equities that are identified by the AlphaDEX methodology as having attractive fundamental characteristics.

Investment Approach and Strategy

Strategy: This ETF does not track a specific index. Instead, it employs an active management strategy utilizing the proprietary AlphaDEX selection methodology. This methodology ranks stocks based on various fundamental factors.

Composition The ETF primarily holds a diversified portfolio of common stocks of companies domiciled in emerging market countries. The sector and country allocations are driven by the AlphaDEX methodology's stock selection process.

Market Share: Information on specific market share for individual emerging market ETFs can be dynamic and is not readily available in a static format. However, the emerging markets ETF space is competitive.

Total Net Assets (AUM): Please refer to the latest fund filings for the most up-to-date Total Net Assets (AUM) as this figure is subject to change.

Key Competitors

• iShares Core MSCI Emerging Markets ETF (IEMG)
• Vanguard FTSE Emerging Markets ETF (VWO)
• iShares MSCI Emerging Markets ETF (EEM)

Competitive Landscape

The emerging markets ETF landscape is highly competitive, dominated by large passive index-tracking ETFs. The First Trust Emerging Markets AlphaDEXu00ae Fund differentiates itself through its active management approach and proprietary AlphaDEX methodology, aiming to outperform passive benchmarks. Its advantage lies in its potential to capture growth through selective stock picking, while disadvantages may include higher fees compared to passive ETFs and the inherent risks of active management.

Historical Performance: Historical performance data for the First Trust Emerging Markets AlphaDEXu00ae Fund (FM) is available through financial data providers and the fund's prospectus. Investors should review returns across various periods (e.g., 1-year, 3-year, 5-year, since inception) to assess its track record.

Benchmark Comparison: The fund's performance is typically compared against broad emerging market indices, such as the MSCI Emerging Markets Index. The AlphaDEX methodology aims to outperform these benchmarks by selecting stocks with superior fundamental characteristics.

Expense Ratio: Please refer to the fund's latest prospectus for the most accurate expense ratio, which typically includes management fees and other operating expenses.

Average Trading Volume

The average trading volume for the First Trust Emerging Markets AlphaDEXu00ae Fund (FM) is generally moderate, indicating reasonable liquidity for most investors.

Bid-Ask Spread

The bid-ask spread for the First Trust Emerging Markets AlphaDEXu00ae Fund (FM) is typically competitive, reflecting its accessibility to a wide range of market participants.

Market Environment Factors

The fund is influenced by global economic growth, geopolitical events in emerging markets, currency fluctuations, commodity prices, and investor sentiment towards emerging economies. Emerging markets are generally considered higher risk but offer potential for higher growth.

Growth Trajectory

The growth trajectory of the First Trust Emerging Markets AlphaDEXu00ae Fund is tied to the performance of emerging market equities and the effectiveness of its AlphaDEX selection methodology. Changes in strategy or holdings are driven by the ongoing application of the methodology.

Competitive Edge

The primary competitive edge of the First Trust Emerging Markets AlphaDEXu00ae Fund lies in its proprietary AlphaDEXu00ae methodology, which actively identifies and invests in companies with strong growth and value characteristics. This systematic approach aims to provide a disciplined way to potentially outperform traditional passive emerging market investments. The fund's active management allows for flexibility in responding to market dynamics, potentially offering superior risk-adjusted returns compared to index-tracking funds within its niche.

Volatility

Emerging markets are inherently more volatile than developed markets. The First Trust Emerging Markets AlphaDEXu00ae Fund will likely exhibit higher historical volatility compared to ETFs focused on developed economies.

Market Risk

Specific risks include political and economic instability in emerging countries, currency depreciation, less stringent regulatory environments, and potential for liquidity issues in smaller emerging market securities.

Ideal Investor Profile

The ideal investor for the First Trust Emerging Markets AlphaDEXu00ae Fund is one with a higher risk tolerance, seeking exposure to the growth potential of emerging markets and who believes in the efficacy of a systematic, factor-based investment approach.

Market Risk

This ETF is generally more suitable for long-term investors who are comfortable with the inherent volatility of emerging markets and are looking for potential alpha generation through active management rather than pure passive index tracking.

The First Trust Emerging Markets AlphaDEXu00ae Fund (FM) is an actively managed ETF focused on emerging market equities. It utilizes a proprietary AlphaDEX methodology to select stocks based on fundamental characteristics, aiming for capital appreciation. While offering potential for higher returns, it also carries higher volatility and market risks typical of emerging markets. This fund is best suited for long-term investors with a higher risk tolerance seeking an actively managed approach in this dynamic sector.

Data Sources:

• First Trust Funds Website
• Financial Data Provider Websites (e.g., Yahoo Finance, Morningstar)
• SEC Filings

Disclaimers:

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