First Trust International Developed Cap Strength ETF (FICS)

Overview

The First Trust International Developed Cap Strength ETF (IWZX) seeks investment results that correspond generally to the price and yield of the AlphaDEXu00ae Developed Markets Ex-U.S. Large Cap Index. It focuses on large-cap developed market companies, excluding the U.S., and uses a fundamental, growth-oriented approach to stock selection.

Reputation and Reliability

First Trust is a well-established ETF provider with a solid reputation and a history of offering innovative and actively managed ETFs.

Management Expertise

First Trust's management team has considerable experience in ETF management and financial analysis, with specialists in various asset classes and investment strategies.

Goal

To seek investment results that correspond generally to the price and yield of the AlphaDEXu00ae Developed Markets Ex-U.S. Large Cap Index.

Investment Approach and Strategy

Strategy: The ETF tracks the AlphaDEXu00ae Developed Markets Ex-U.S. Large Cap Index, a fundamentally weighted index designed to identify and rank stocks based on growth factors.

Composition The ETF holds a diversified portfolio of large-cap stocks from developed countries excluding the U.S. The specific composition changes based on the AlphaDEX methodology.

Market Share: Data unavailable.

Total Net Assets (AUM): 128300000

Key Competitors

• iShares MSCI EAFE ETF (EFA)
• Vanguard FTSE Developed Markets ETF (VEA)
• Schwab International Equity ETF (SCHF)

Competitive Landscape

The international developed markets ETF space is highly competitive. IWZX differentiates itself with its fundamentally weighted AlphaDEX approach. While EFA and VEA offer broader market exposure at lower costs, IWZX aims for outperformance through active stock selection based on growth factors, which may involve higher risk and expense.

Historical Performance: Historical performance data unavailable.

Benchmark Comparison: Benchmark comparison data unavailable.

Expense Ratio: 0.56

Average Trading Volume

The ETF's average trading volume is moderate, suggesting sufficient liquidity for most investors.

Bid-Ask Spread

The bid-ask spread varies depending on market conditions, but is generally competitive among similar ETFs.

Market Environment Factors

Economic growth in developed markets (excluding the U.S.), interest rate policies of central banks, and currency exchange rates significantly affect IWZX.

Growth Trajectory

The growth trajectory of IWZX depends on the performance of its underlying holdings, which are selected based on the AlphaDEX methodology; changes in the index composition will influence future performance.

Competitive Edge

IWZX's competitive edge lies in its fundamentally weighted AlphaDEX methodology, which aims to identify and overweight stocks with strong growth characteristics. This differentiated approach can potentially lead to higher returns compared to market-cap-weighted indexes. The fund targets large-cap companies in developed markets, providing a degree of stability. However, active stock selection also introduces the potential for underperformance compared to broader market indexes.

Volatility

Historical volatility data unavailable.

Market Risk

IWZX is subject to market risk, currency risk, and political risk associated with investing in international developed markets. The AlphaDEX methodology may also lead to higher portfolio turnover and increased transaction costs.

Ideal Investor Profile

The ideal investor for IWZX is one seeking exposure to international developed markets with a growth-oriented approach and a willingness to accept potentially higher volatility and fees in pursuit of outperformance.

Market Risk

IWZX is suitable for long-term investors who understand active management and its associated risks and are comfortable with the ETF's investment strategy.

The First Trust International Developed Cap Strength ETF (IWZX) offers exposure to large-cap developed market equities (ex-US) through a fundamentally weighted AlphaDEX strategy. This approach targets companies with strong growth characteristics, potentially leading to higher returns, but also higher volatility and fees than broader market ETFs. Ideal investors are those seeking international diversification with a growth focus and a tolerance for active management risk. The ETF's performance is influenced by global economic conditions and the effectiveness of the AlphaDEX selection process.

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. Market share data may not be readily available for all ETFs. Consult with a financial advisor before making any investment decisions.