First Trust Developed Markets Ex-US AlphaDEX® Fund (FDT)

Overview

The First Trust Developed Markets ex-US AlphaDEXu00ae Fund (FDT) seeks investment results that correspond to the AlphaDEXu00ae Developed Markets ex-US Index. This index selects and weights stocks from developed countries outside the U.S. based on growth factors including sales growth, price appreciation, and momentum, as well as value factors including book value to price, cash flow to price, and return on assets.

Reputation and Reliability

First Trust is a well-established ETF provider with a solid reputation for offering innovative and strategically designed ETFs.

Management Expertise

First Trust has a dedicated team of portfolio managers and analysts with experience in quantitative investing and ETF management.

Goal

To track the AlphaDEXu00ae Developed Markets ex-US Index, which aims to identify and weight stocks with the potential for above-average returns.

Investment Approach and Strategy

Strategy: The fund employs a quantitative, rules-based approach, selecting and weighting stocks based on both growth and value factors.

Composition The ETF primarily holds stocks from developed markets outside the United States.

Market Share: Data is needed to accurately reflect the market share of ETF FDT within its sector.

Total Net Assets (AUM): 1960000000

Key Competitors

• VEA
• VXUS
• IDEV

Competitive Landscape

The developed markets ex-US ETF sector is highly competitive, with several large, established funds. FDT's AlphaDEXu00ae strategy offers a differentiated approach, potentially outperforming market-cap-weighted indices. However, its rules-based methodology may underperform in certain market environments, and its expense ratio is higher than some competitors.

Historical Performance: Historical performance data is needed to assess the ETF's returns over different time periods.

Benchmark Comparison: Benchmark performance data is required to compare FDT's returns to the AlphaDEX Developed Markets ex-US Index.

Expense Ratio: 0.008

Average Trading Volume

FDT exhibits moderate liquidity with an average trading volume that facilitates relatively easy buying and selling of shares.

Bid-Ask Spread

FDT's bid-ask spread is usually tight, indicating that trading costs are relatively low.

Market Environment Factors

Economic indicators in developed markets, global trade policies, currency fluctuations, and interest rate changes can all impact FDT's performance.

Growth Trajectory

The growth trajectory of FDT depends on the performance of its underlying holdings and the continued effectiveness of its AlphaDEXu00ae strategy. Rebalancing and sector allocation shifts can change the ETF's composition over time.

Competitive Edge

FDT's competitive advantage lies in its AlphaDEXu00ae methodology, which seeks to identify and weight stocks with strong growth and value characteristics. This strategy may provide higher returns compared to traditional market-cap-weighted indices, appealing to investors seeking enhanced performance. The fund's rules-based approach offers transparency and reduces subjective decision-making. However, the higher expense ratio needs to be justified by superior returns.

Volatility

Historical volatility data is needed to assess FDT's risk profile.

Market Risk

FDT is subject to market risk, meaning its value can decline due to broad market downturns or specific events affecting developed markets outside the U.S. Currency risk and political instability in those regions can also impact returns.

Ideal Investor Profile

The ideal investor for FDT is one seeking exposure to developed markets outside the U.S. with a focus on value and growth stocks and is comfortable with a potentially higher expense ratio than some competitors.

Market Risk

FDT is suitable for long-term investors seeking potentially higher returns from developed markets ex-US, and may appeal to those who favor active management strategies.

First Trust Developed Markets ex-US AlphaDEXu00ae Fund (FDT) employs a unique AlphaDEXu00ae strategy to select and weight stocks in developed markets outside the U.S., aiming to outperform traditional market-cap-weighted indices. This fund is suitable for investors seeking exposure to international markets with a focus on both growth and value. Its quantitative, rules-based approach provides transparency, but the higher expense ratio should be considered. The performance of the underlying international developed markets directly impacts the fund's returns.

Data Sources:

• First Trust Website
• ETF.com
• Morningstar

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered investment advice. Market conditions and fund performance are subject to change.