First Trust Eurozone AlphaDEX® ETF (FEUZ)

Overview

The First Trust Eurozone AlphaDEXu00ae ETF (FEUZ) seeks investment results that correspond generally to the price and yield of the NASDAQ AlphaDEXu00ae Eurozone Index. It focuses on Eurozone equities selected and weighted based on growth and value factors.

Reputation and Reliability

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

Management Expertise

First Trust has a dedicated team of investment professionals with experience in managing factor-based ETFs.

Goal

To provide investment results that correspond generally to the price and yield of the NASDAQ AlphaDEXu00ae Eurozone Index.

Investment Approach and Strategy

Strategy: The ETF employs a 'smart beta' strategy, selecting and weighting Eurozone equities based on proprietary growth and value scores.

Composition The ETF primarily holds stocks of companies located in the Eurozone.

Market Share: Market share data is not readily available in real time without paid subscription. Data depends on the sector and total number of ETFs.

Total Net Assets (AUM): 43650000

Key Competitors

• IEUR
• VGK
• EZU

Competitive Landscape

The European equity ETF market is competitive, with several large ETFs tracking broad market indices. FEUZ differentiates itself with its AlphaDEXu00ae methodology, potentially offering superior returns but also carrying higher risk. Competitors offer broader market exposure and are more passively managed which results in lower expense ratios.

Historical Performance: Historical performance data varies over time and can be retrieved from financial data providers.

Benchmark Comparison: The ETF's performance should be compared to the NASDAQ AlphaDEXu00ae Eurozone Index to evaluate its tracking effectiveness.

Expense Ratio: 0.008

Average Trading Volume

The average trading volume can vary but FEUZ has a relatively low average daily trading volume.

Bid-Ask Spread

Due to low volume, the bid-ask spread can be relatively wide, affecting trading costs.

Market Environment Factors

Economic conditions in the Eurozone, interest rates, political stability, and sector-specific growth prospects influence FEUZ's performance.

Growth Trajectory

The ETF's growth depends on the performance of Eurozone equities and the effectiveness of the AlphaDEXu00ae selection methodology. The holdings are rebalanced quarterly to remain in alignment with the investment strategy.

Competitive Edge

FEUZ's competitive advantage lies in its AlphaDEXu00ae methodology, a rules-based approach to selecting and weighting stocks that aims to outperform traditional market-cap-weighted indices. This proprietary approach offers potential for higher returns but also introduces factor-specific risk. The focus on growth and value factors within the Eurozone equity market differentiates it from broader European equity ETFs. However, there's no guarantee that the methodology will consistently outperform.

Volatility

FEUZ's volatility is influenced by the underlying Eurozone equity market and the specific stocks selected by the AlphaDEXu00ae methodology.

Market Risk

Market risk includes economic downturns in the Eurozone, currency fluctuations, and political instability, all impacting the value of the underlying assets.

Ideal Investor Profile

FEUZ is suited for investors seeking exposure to Eurozone equities with a factor-based, 'smart beta' approach and who are willing to accept potentially higher volatility.

Market Risk

FEUZ may be more suitable for long-term investors who are comfortable with active management and are seeking potentially higher returns compared to passive index funds.

First Trust Eurozone AlphaDEXu00ae ETF offers exposure to Eurozone equities using a unique AlphaDEXu00ae selection methodology. It seeks to outperform traditional market-cap-weighted indices, potentially leading to higher returns but also greater volatility. Its relatively low trading volume can result in higher trading costs due to wider bid-ask spreads. It is better suited for long-term investors comfortable with a factor-based investment approach and active management, and willing to accept a relatively high degree of risks.

Data Sources:

• First Trust Website
• ETF.com
• Morningstar

Disclaimers:

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