First Trust Switzerland AlphaDEX® Fund (FSZ)

Overview

The First Trust Switzerland AlphaDEXu00ae Fund (FSZ) is designed to select and weight stocks from the NASDAQ Switzerland Index using the AlphaDEXu00ae methodology, aiming to outperform traditional market-cap weighted indexes by focusing on growth factors. It targets the Swiss equity market.

Reputation and Reliability

First Trust is a well-established ETF provider with a solid reputation. They offer a wide range of ETFs across various asset classes and investment strategies.

Management Expertise

First Trust has a dedicated investment team with experience in developing and managing quantitative investment strategies and ETFs.

Goal

To provide investment results that correspond generally to the price and yield, before fees and expenses, of the NASDAQ AlphaDEXu00ae Switzerland Index.

Investment Approach and Strategy

Strategy: The fund uses the AlphaDEXu00ae methodology, which is a quantitative approach based on growth factors to select and weight stocks.

Composition The ETF primarily holds stocks of Swiss companies selected based on growth factors. The fund is sector-diversified with exposure across different industries within the Swiss equity market.

Market Share: FSZ's market share is relatively small within the overall European or International equity ETF market.

Total Net Assets (AUM): 74440783

Key Competitors

• EWL
• CHIQ
• FGM

Competitive Landscape

The ETF industry focused on Swiss equities is dominated by larger, market-cap weighted funds like EWL. FSZ attempts to differentiate itself through its AlphaDEXu00ae methodology, offering potential for higher returns but also exposing investors to increased tracking error relative to standard Swiss equity benchmarks. FSZ's disadvantage is lower AUM compared to its competitors.

Historical Performance: Historical performance data needs to be gathered from financial data providers.

Benchmark Comparison: Benchmark comparisons need to be generated based on historical index and ETF performance data.

Expense Ratio: 0.8

Average Trading Volume

The ETF's average trading volume indicates reasonable liquidity for most investors.

Bid-Ask Spread

The bid-ask spread is generally tight but can widen during periods of market volatility.

Market Environment Factors

Economic indicators in Switzerland, global market sentiment, and sector-specific trends can affect FSZ. As Switzerland is export-oriented, global demand also affects FSZ.

Growth Trajectory

FSZ's growth is tied to the performance of the Swiss equity market and the effectiveness of the AlphaDEXu00ae methodology in selecting stocks. Changes in factor performance can impact holdings.

Competitive Edge

FSZ's primary competitive advantage is its unique AlphaDEXu00ae methodology, which screens for growth factors to identify potentially undervalued stocks. The methodology provides differentiation from traditional market-cap weighted Swiss equity ETFs. The fund may appeal to investors seeking an alternative approach to Swiss equity exposure. FSZ aims to outperform standard benchmarks via factor investing.

Volatility

FSZ's volatility is generally correlated to that of the broader Swiss equity market, but may be higher due to the AlphaDEXu00ae methodology.

Market Risk

Market risk is the primary risk factor, as FSZ is exposed to the fluctuations of the Swiss stock market. Company-specific risks and currency risks are also present.

Ideal Investor Profile

FSZ is suitable for investors seeking exposure to the Swiss equity market with a focus on growth. It is designed for those willing to take on potentially higher volatility for the chance of outperformance.

Market Risk

FSZ is best suited for long-term investors with a moderate to high-risk tolerance.

The First Trust Switzerland AlphaDEXu00ae Fund offers exposure to the Swiss equity market through a quantitative, factor-based methodology. It aims to outperform traditional market-cap weighted indices by selecting stocks based on growth factors. The fund is best suited for long-term investors with a moderate to high-risk tolerance who believe in the AlphaDEXu00ae selection methodology. The expense ratio is relatively higher compared to other broader market ETFs. Potential investors should evaluate historical performance and assess alignment with investment goals.

Data Sources:

• First Trust Website
• ETF.com
• Morningstar

Disclaimers:

This analysis is for informational purposes only and should not be considered investment advice. Consult with a financial advisor before making any investment decisions. Data may be delayed.