FDTS Profile
The First Trust Developed Markets ex-US Small Cap AlphaDEX Fund (FDTS) represents a sophisticated investment opportunity within the exchange-traded fund landscape, structured to replicate the performance of the NASDAQ AlphaDEX DM Ex-US Small Cap Index. This index consists of a meticulously curated selection of 400 small-cap companies sourced from the S&P Developed Markets ex-US BMI universe, employing S&P's renowned AlphaDex selection methodology. Notably, the index organizes chosen stocks into tiers of equal weight, aiming to optimize diversification and mitigate volatility.
FDTS, launched on February 15, 2012, is issued by First Trust, a prominent figure in the financial industry recognized for its innovation and commitment to delivering investor-focused solutions. The fund's primary objective is to provide investors with targeted exposure to small-cap equities across developed markets outside the United States, offering potential growth opportunities that complement larger-cap investments. This strategic focus underscores FDTS's relevance in meeting the diverse investment goals of institutional and retail investors alike.
The fund differentiates itself through its utilization of the AlphaDEX methodology, which leverages quantitative screening criteria to identify small-cap stocks exhibiting strong fundamentals and growth potential. By equal-weighting stocks within the index tiers, FDTS aims to minimize concentration risk while enhancing overall portfolio performance through a disciplined and systematic approach. This methodology enhances transparency and aligns with investor preferences for structured investment strategies.
First Trust's issuance of FDTS underscores its leadership in providing access to specialized investment opportunities tailored to navigate the complexities of global markets. The fund's integration of AlphaDEX principles exemplifies a commitment to generating alpha while managing risk, positioning it as a compelling choice for investors seeking exposure to small-cap equities in developed international markets. As investor demand for diversified and innovative investment solutions grows, FDTS remains well-positioned to deliver value through its rigorous investment framework and strategic asset allocation strategies.
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