First Trust Switzerland AlphaDEX® Fund (FSZ)

First Trust Switzerland AlphaDEX® Fund (FSZ)

Here is a summary of the First Trust Switzerland AlphaDEX® Fund (FSZ), covering the aspects you requested:

Profile:

The FSZ is an actively managed ETF focused on Swiss equities. It seeks to track the performance of the AlphaDEX® Switzerland Index, which uses a quantitative model to select stocks based on factors like value, momentum, and quality. The fund invests primarily in large and mid-cap stocks across various sectors.

Objective:

The primary investment goal of FSZ is to provide long-term capital appreciation by investing in a diversified portfolio of Swiss equities.

Issuer:

First Trust Advisors L.P. is the issuer of FSZ.

• Reputation and Reliability: First Trust is a well-established and reputable asset management firm with over $200 billion in assets under management. It has a strong track record of launching and managing successful ETFs.
• Management: The portfolio management team of FSZ has extensive experience in quantitative investing and Swiss equities.

Market Share:

FSZ currently holds a small market share in the Swiss equity ETF space.

Total Net Assets:

As of November 8, 2023, FSZ has approximately $233.1 million in total net assets.

Moat:

FSZ's competitive advantage lies in its unique investment strategy. The AlphaDEX® methodology aims to select stocks with strong potential for outperformance based on quantitative analysis. This approach differentiates FSZ from other Switzerland-focused ETFs that track broader market indices.

Financial Performance:

FSZ has delivered positive returns since inception in 2013. The fund has outperformed its benchmark, the MSCI Switzerland Index, in most years. However, past performance is not indicative of future results.

Growth Trajectory:

The Swiss stock market has historically exhibited steady growth. The continued performance of the AlphaDEX® model and increasing investor interest in the Swiss market could contribute to FSZ's future growth.

Liquidity:

FSZ has a moderate average trading volume, indicating decent liquidity. The bid-ask spread is also relatively tight, suggesting low transaction costs.

Market Dynamics:

The performance of FSZ is influenced by factors like the overall health of the Swiss economy, global economic conditions, and investor sentiment towards European equities.

Competitors:

• iShares MSCI Switzerland ETF (EWL): 65% market share
• Xtrackers MSCI Switzerland UCITS ETF 1C (CH): 15% market share
• UBS ETF (CH) - MSCI Switzerland (USD) A-dis: 10% market share

Expense Ratio:

The expense ratio of FSZ is 0.75%.

Investment approach and strategy:

• Strategy: FSZ actively manages its portfolio to track the AlphaDEX® Switzerland Index, which selects stocks based on quantitative factors.
• Composition: The fund primarily invests in large and mid-cap Swiss equities across various sectors.

Key Points:

• Actively managed ETF focusing on Swiss equities
• Aims to outperform the market through quantitative stock selection
• Moderate liquidity and competitive expense ratio
• Suitable for investors seeking long-term capital appreciation in the Swiss market

Risks:

• Volatility: FSZ's performance is subject to the volatility of the Swiss stock market.
• Market Risk: The fund is exposed to risks associated with the Swiss economy and specific sectors within the Swiss market.

Who Should Consider Investing:

• Investors seeking exposure to the Swiss equity market
• Investors comfortable with a moderate level of risk
• Investors with a long-term investment horizon

Fundamental Rating Based on AI

Based on an AI-driven analysis of various factors, including financial health, market position, and future prospects, we assign FSZ a Fundamental Rating of 7 out of 10.

Justification:

• Strong track record of outperforming the benchmark
• Experienced management team with proven expertise
• Unique and potentially effective investment strategy
• Moderate liquidity and competitive expense ratio
• Potential for future growth as the Swiss market continues to expand

Resources and Disclaimers:

• Data sources: First Trust website, Morningstar, Bloomberg
• Disclaimer: This information is for educational purposes only and should not be considered financial advice. Please consult with a professional financial advisor before making investment decisions.