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

Overview

The fund operates as an investment vehicle aiming to outperform traditional indices by implementing a strategic investment approach. By allocating at least 90% of its net assets, including any investment borrowings, into securities comprising the index, the fund seeks to harness potential alpha. Alpha, in investment terms, refers to the ability to achieve returns that exceed the market average on a risk-adjusted basis. The index in focus is derived from the NASDAQ Developed Markets Ex-US Index, which encompasses a broad spectrum of stocks outside the United States. To differentiate and potentially enhance returns, the fund employs the AlphaDEX® selection methodology. This approach is designed to select stocks that show the promise of generating positive alpha, thereby aiming for higher performance relative to traditional market-cap-weighted indices.

Products and Services

• Investment in Securities

  The primary service offered by the fund is investing in a diversified portfolio of securities. These securities are carefully chosen based on the AlphaDEX® selection methodology from the NASDAQ Developed Markets Ex-US Index, targeting non-U.S. developed markets. The aim is to achieve a well-rounded investment strategy that not only targets capital growth but is also focused on risk-adjusted returns.

• AlphaDEX® Selection Methodology

  A key distinguishing feature of the fund is the use of the AlphaDEX® selection methodology. This proprietary approach focuses on selecting stocks that are likely to generate positive alpha, thereby potentially offering investors better returns compared to standard indexing methods. Through analytical processes, stocks are evaluated and scored based on various growth and value factors, aiming to identify those with the highest potential to outperform.