First Trust Latin America AlphaDEX® Fund (FLN)

Overview

The First Trust Latin America AlphaDEXu00ae Fund (FTXO) is an ETF that seeks investment results that correspond generally to the price and yield, before fees and expenses, of an equity index called the StrataQuantu00ae Latin America Index. It is designed to provide exposure to Latin American equities through a quantitative methodology.

Reputation and Reliability

First Trust is a well-established ETF provider with a strong reputation for innovation and a wide range of investment products.

Management Expertise

First Trust Advisors L.P. has a team of experienced investment professionals managing its ETFs, including those focused on international markets.

Goal

The fund seeks to track the performance of the StrataQuantu00ae Latin America Index, which is designed to select and weight Latin American stocks based on growth and value factors.

Investment Approach and Strategy

Strategy: The fund employs a quantitative, rules-based methodology to select and weight securities from a specified universe of Latin American equities.

Composition The fund primarily holds stocks of companies located in Latin American countries. The portfolio composition is rebalanced and reconstituted periodically.

Market Share: FTXO's market share varies depending on the specific segment of Latin American equity ETFs considered.

Total Net Assets (AUM): 19270000

Key Competitors

• iShares Latin America 40 ETF (ILF)
• Franklin FTSE Latin America ETF (FLAN)
• Global X MSCI Colombia ETF (GXG)

Competitive Landscape

The Latin America ETF market is dominated by a few large players, with ILF holding the largest market share. FTXO differentiates itself through its AlphaDEXu00ae methodology, which aims to select stocks based on growth and value factors. Competitors like ILF track broader market indices, offering more diversified exposure but potentially lacking the focused approach of FTXO.

Historical Performance: Historical performance data should be obtained from reliable financial data providers. This includes data for different time periods like 1-year, 3-year, 5-year, and 10-year returns.

Benchmark Comparison: The ETF's performance should be compared against the StrataQuantu00ae Latin America Index or a similar broad Latin American equity index.

Expense Ratio: 0.8

Average Trading Volume

The ETF's average trading volume indicates its liquidity, with higher volumes suggesting easier trading.

Bid-Ask Spread

The bid-ask spread, typically a small percentage, represents the cost of executing a trade and reflects the ETF's liquidity.

Market Environment Factors

Economic growth in Latin American countries, commodity prices, currency fluctuations, and political stability all influence the performance of FTXO.

Growth Trajectory

The ETF's growth depends on the overall performance of the Latin American equity market and the effectiveness of the AlphaDEXu00ae methodology in selecting and weighting stocks.

Competitive Edge

FTXO's competitive edge lies in its AlphaDEXu00ae methodology, which aims to identify and weight stocks with strong growth and value characteristics. This quantitative approach may provide an advantage over passively managed ETFs. The fund offers a targeted exposure to Latin American equities, potentially leading to outperformance. Its differentiated approach could attract investors seeking more active management within the Latin American equity space.

Volatility

The volatility of FTXO is expected to be relatively high due to the inherent risks associated with investing in emerging markets like those in Latin America.

Market Risk

The ETF is subject to market risk, including economic downturns, political instability, and currency fluctuations in Latin American countries. Specific country risks within Latin America will also impact the fund's performance.

Ideal Investor Profile

The ideal investor is one seeking exposure to Latin American equities and comfortable with the risks associated with emerging markets. They should also understand and accept the fund's quantitative investment approach.

Market Risk

FTXO may be suitable for investors with a long-term investment horizon seeking potential capital appreciation and diversification within their portfolio. It's best suited for investors who are comfortable with higher volatility and understand the risks associated with emerging markets.

The First Trust Latin America AlphaDEXu00ae Fund (FTXO) offers a quantitatively driven approach to investing in Latin American equities. It aims to outperform traditional market-cap weighted indices through its AlphaDEXu00ae methodology. The ETF is subject to the risks associated with emerging markets, including political and economic instability. It may appeal to investors seeking higher potential returns and who understand the fund's active management style. However, due to its volatility, it's important to consider other Latin America options with higher AUM and volume.

Data Sources:

• First Trust Website
• ETF.com
• Morningstar
• Bloomberg

Disclaimers:

The information provided is for informational purposes only and should not be considered investment advice. Investment decisions should be made based on individual circumstances and after consulting with a qualified financial advisor. Past performance is not indicative of future results. Market share data is approximate and may vary based on the source and date.