Home   Logon   Mobile Site   Research and Commentary   About Us   Call 1.800.621.1675 or Email Us       Follow Us: 

Search by Ticker, Keyword or CUSIP       
 
 
First Trust China AlphaDEX® Fund (FCA)
Investment Objective/Strategy - The First Trust China AlphaDEX® Fund is an exchange-traded fund. The investment objective of the Fund is to seek investment results that correspond generally to the price and yield, before the Fund's fees and expenses, of an equity index called the NASDAQ AlphaDEX® China Index.
There can be no assurance that the Fund's investment objectives will be achieved.
  • The NASDAQ AlphaDEX® China Index is an "enhanced" index created and administered by Nasdaq, Inc. ("Nasdaq") which employs the AlphaDEX® stock selection methodology to select stocks from the NASDAQ China Index that meet certain criteria.
  • Nasdaq constructs the NASDAQ AlphaDEX® China Index by ranking the eligible stocks from the NASDAQ China Index on growth factors including 3-, 6- and 12- month price appreciation, sales to price and one year sales growth, and separately on value factors including book value to price, cash flow to price and return on assets. All stocks are ranked on the sum of ranks for the growth factors and, separately, all stocks are ranked on the sum of ranks for the value factors. A stock must have data for all growth and/or value factors to receive a rank for that style.
  • Each stock receives the best style rank from the previous step as its selection score.
  • The top 50 stocks based on the selection score determined in the previous step comprise the "selected stocks". The selected stocks are divided into quintiles based on their rankings and the top ranked quintiles receive a higher weight within the index. The stocks are equally-weighted within each quintile.
  • Each stock is then tested in order of its selection score rank to check if the weight assigned to that stock is outside the sector weighting constraints, which are set at 15% above the benchmark weight.
    • If the weight assigned to the stock, when added with the weight assigned to all higher ranking stocks in its sector, is greater than the constraint, then the stock's weight is lowered to the highest rank in the next quintile. Stocks previously lower in rank then move up one rank. Such stocks in the lowest quintile that violate a constraint are removed from the portfolio and replaced by the highest scoring stock not originally selected, subject to sector constraints. This process continues until all the sector weightings meet the constraint.
  • The index is reconstituted and rebalanced semi-annually.
Fund Overview
TickerFCA
Fund TypeInternational Equity
Investment AdvisorFirst Trust Advisors L.P.
Investor Servicing AgentBrown Brothers Harriman
CUSIP33737J141
ISINUS33737J1410
Intraday NAVFCAIV
Fiscal Year-End12/31
ExchangeNasdaq
Inception4/18/2011
Inception Price$29.90
Inception NAV$29.90
Rebalance FrequencySemi-Annual
Expense Ratio0.80%
Current Fund Data (as of 9/17/2021)
Closing NAV1$31.78
Closing Market Price2$31.73
Bid/Ask Midpoint$31.72
Bid/Ask Discount0.19%
30-Day Median Bid/Ask Spread31.51%
Total Net Assets$11,122,723
Outstanding Shares350,002
Daily Volume1,710
Average 30-Day Daily Volume1,562
Closing Market Price 52-Week High/Low$33.61 / $25.18
Closing NAV 52-Week High/Low$33.63 / $25.50
Number of Holdings (excluding cash)51
Top Holdings (as of 9/17/2021)*
Holding Percent
China Resources Power Holdings Company Limited 4.71%
Aluminum Corporation of China Limited (Class H) 4.53%
China Coal Energy Company Limited 4.10%
Angang Steel Company Limited (Class H) 3.68%
China Resources Cement Holdings Limited 3.66%
Anhui Conch Cement Company Limited (Class H) 3.61%
Dongfeng Motor Group Company Ltd. (Class H) 3.34%
China Suntien Green Energy Corporation Limited (Class H) 3.20%
China Petroleum & Chemical Corporation (Sinopec) (Class H) 3.13%
Jiangxi Copper Company Ltd. (Class H) 3.13%

* Excluding cash.  Holdings are subject to change.

NAV History (Since Inception)
Past performance is not indicative of future results.
Distribution Information
Dividend per Share Amt (as of 9/20/2021)4$0.2733
30-Day SEC Yield (as of 8/31/2021)53.13%
12-Month Distribution Rate (as of 8/31/2021)63.10%
Index Yield (as of 8/31/2021)74.36%
Fund Characteristics (as of 8/31/2021)9
Maximum Market Cap.$133,060
Median Market Cap.$13,604
Minimum Market Cap.$4,492
Price/Earnings9.74
Price/Book1.09
Price/Cash Flow5.34
Price/Sales0.71
Bid/Ask Premium/Discount (as of 9/17/2021)
  2020 Q1 2021 Q2 2021 Q3 2021
Days Traded at Premium 87 26 24 19
Days Traded at Discount 166 35 39 36
Top Sector Exposure (as of 9/17/2021)
Materials 24.90%
Energy 14.22%
Consumer Discretionary 13.97%
Health Care 12.12%
Industrials 9.99%
Utilities 8.61%
Real Estate 7.75%
Financials 3.79%
Information Technology 3.40%
Communication Services 1.25%
Hypothetical Growth of $10,000 Since Inception (as of 9/17/2021) *


Month End Performance (as of 8/31/2021)
  3 Month YTD 1 Year 3 Year 5 Year 10 Year Since
Fund
Inception10
Fund Performance *
Net Asset Value (NAV) 1.25% 8.93% 18.36% 8.39% 12.30% 5.93% 3.46%
After Tax Held 0.90% 8.49% 16.72% 6.74% 10.81% 4.67% 2.22%
After Tax Sold 0.74% 5.28% 10.76% 5.67% 9.02% 4.03% 2.03%
Market Price 0.13% 9.61% 18.00% 7.99% 12.32% 5.75% 3.38%
Index Performance **
NASDAQ AlphaDEX® China Index 0.86% 8.80% 18.63% 9.47% 13.54% N/A N/A
MSCI China Index -12.50% -12.26% -5.10% 7.28% 10.81% 7.25% 5.46%
NASDAQ China Index -11.24% -9.30% -5.10% 5.40% 8.63% N/A N/A
Quarter End Performance (as of 6/30/2021)
  3 Month YTD 1 Year 3 Year 5 Year 10 Year Since
Fund
Inception10
Fund Performance *
Net Asset Value (NAV) 8.71% 9.48% 34.13% 6.80% 14.71% 4.36% 3.57%
After Tax Held 8.33% 9.04% 32.27% 5.18% 13.18% 3.12% 2.31%
After Tax Sold 5.15% 5.61% 20.07% 4.44% 11.01% 2.75% 2.10%
Market Price 6.72% 10.31% 35.21% 6.63% 14.70% 4.08% 3.50%
Index Performance **
NASDAQ AlphaDEX® China Index 8.91% 9.90% 36.74% 8.12% 16.39% N/A N/A
MSCI China Index 2.27% 1.83% 27.39% 10.36% 16.59% 7.71% 7.10%
NASDAQ China Index 2.70% 4.33% 20.21% 8.49% 13.96% N/A N/A
3-Year Statistics (as of 8/31/2021)
  Standard Deviation Alpha Beta Sharpe Ratio Correlation
FCA 21.18% 4.17 0.81 0.43 0.77
MSCI China Index 21.44% 1.79 1.05 0.38 0.98
NASDAQ China Index 20.01% --- 1.00 0.30 1.00
Standard Deviation is a measure of price variability (risk). Alpha is an indication of how much an investment outperforms or underperforms on a risk-adjusted basis relative to its benchmark.Beta is a measure of price variability relative to the market. Sharpe Ratio is a measure of excess reward per unit of volatility. Correlation is a measure of the similarity of performance.

*Performance data quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares when sold or redeemed, may be worth more or less than their original cost.

After Tax Held returns represent return after taxes on distributions. Assumes shares have not been sold. After Tax Sold returns represent the return after taxes on distributions and the sale of fund shares. Returns do not represent the returns you would receive if you traded shares at other times. Market Price returns are determined by using the midpoint of the national best bid offer price ("NBBO") as of the time that the fund's NAV is calculated. Returns are average annualized total returns, except those for periods of less than one year, which are cumulative.

After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on the investor’s tax situation and may differ from those shown. The after-tax returns shown are not relevant to investors who hold their fund shares through tax-deferred arrangements such as 401(k) plans or individual retirement accounts.

**Performance information for the NASDAQ AlphaDEX® China Index is for illustrative purposes only and does not represent actual fund performance.
Indexes do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the performance shown. Indexes are unmanaged and an investor cannot invest directly in an index.

On July 14, 2015, the fund's underlying index changed from the Defined China Index to the NASDAQ AlphaDEX® China Index. Therefore, the fund's performance and historical returns shown for the periods prior to this date are not necessarily indicative of the performance that the fund, based on its current index, would have generated.

MSCI China Index - The Index measures the performance of the domestic market of China.

NASDAQ China Index - The Index is a float adjusted market capitalization-weighted index designed to track the performance of securities assigned to China.

Footnotes
1 The NAV represents the fund's net assets (assets less liabilities) divided by the fund's outstanding shares .
2 Fund shares are purchased and sold on an exchange at their market price rather than net asset value (NAV), which may cause the shares to trade at a price greater than NAV (premium) or less than NAV (discount).
3 The median bid-ask spread is calculated by identifying the national best bid and national best offer ("NBBO") for the fund as of the end of each 10 second interval during each trading day of the last 30 calendar days and dividing the difference between each such bid and offer by the midpoint of the NBBO. The median of those values is identified and that value is expressed as a percentage rounded to the nearest hundredth.
4 Most recent distribution paid or declared to today's date. Subject to change in the future. There is no guarantee that the fund will declare dividends.
5 The 30-day SEC yield is calculated by dividing the net investment income per share earned during the most recent 30-day period by the maximum offering price per share on the last day of the period and includes the effects of fee waivers and expense reimbursements, if applicable.
6 12-Month Distribution Rate is calculated by dividing the sum of the fund's trailing 12-month ordinary distributions paid or declared by the NAV price. Distribution rates may vary.
7 Index yield represents the weighted average trailing 12-month dividend of the constituents of the NASDAQ AlphaDEX® China Index.
8 Distribution Rate is calculated by dividing the fund's most recent ordinary distribution paid or declared, on an annualized basis, by the NAV price. Distribution rates may vary.
9 All market capitalization numbers are in USD$ Millions.
10 Inception Date is 4/18/2011

You should consider the fund's investment objectives, risks, and charges and expenses carefully before investing. You can download a prospectus or summary prospectus, or contact First Trust Portfolios L.P. at 1-800-621-1675 to request a prospectus or summary prospectus which contains this and other information about the fund. The prospectus or summary prospectus should be read carefully before investing.

Risk Considerations

A fund's return may not match the return of its underlying index. A fund invests in securities included in the index regardless of investment merit and the securities held by a fund will generally not be bought or sold in response to market fluctuations.

Investors buying or selling fund shares on the secondary market may incur customary brokerage commissions. Market prices may differ to some degree from the net asset value of the shares. Investors who sell fund shares may receive less than the share's net asset value. Shares may be sold throughout the day on the exchange through any brokerage account. However, unlike mutual funds, shares may only be redeemed directly from a fund by authorized participants in very large creation/redemption units. If a fund's authorized participants are unable to proceed with creation/redemption orders and no other authorized participant is able to step forward to create or redeem, fund shares may trade at a discount to a fund's net asset value and possibly face delisting.

A fund's shares will change in value, and you could lose money by investing in a fund. One of the principal risks of investing in a fund is market risk. Market risk is the risk that a particular stock owned by a fund, fund shares or stocks in general may fall in value. There can be no assurance that a fund's investment objective will be achieved. The outbreak of the respiratory disease designated as COVID-19 in December 2019 has caused significant volatility and declines in global financial markets, which have caused losses for investors. While the development of vaccines has slowed the spread of the virus and allowed for the resumption of "reasonably" normal business activity in the United States, many countries continue to impose lockdown measures in an attempt to slow the spread. Additionally, there is no guarantee that vaccines will be effective against emerging variants of the disease.

The economy of China differs, often unfavorably, from the U.S. economy in such respects as structure, general development, government involvement, wealth distribution, rate of inflation, growth rate, allocation of resources and capital reinvestment, among others. The central government has historically exercised substantial control over virtually every sector of the Chinese economy through administrative regulation and/or state ownership. Actions of the Chinese central and local government authorities continue to have a substantial effect on economic conditions in China. Furthermore, China's economy is dependent on the economies of other Asian countries and can be significantly affected by currency fluctuations and increasing competition from Asia's other emerging economies.

Changes in currency exchange rates and the relative value of non-US currencies may affect the value of a fund's investments and the value of a fund's shares.

As the use of Internet technology has become more prevalent in the course of business, funds have become more susceptible to potential operational risks through breaches in cyber security.

Depositary receipts may be less liquid than the underlying shares in their primary trading market.

Stocks with growth characteristics tend to be more volatile than certain other stocks and their prices may fluctuate more dramatically than the overall stock market.

A fund may be a constituent of one or more indices or models which could greatly affect a fund's trading activity, size and volatility.

There is no assurance that the index provider or its agents will compile or maintain the index accurately.

Securities of non-U.S. issuers are subject to additional risks, including currency fluctuations, political risks, withholding, the lack of adequate financial information, and exchange control restrictions impacting non-U.S. issuers. These risks may be heightened for securities of companies located in, or with significant operations in, emerging market countries.

A fund and a fund's advisor may seek to reduce various operational risks through controls and procedures, but it is not possible to completely protect against such risks.

High portfolio turnover may result in higher levels of transaction costs and may generate greater tax liabilities for shareholders.

A fund with significant exposure to a single asset class, country, region, industry, or sector may be more affected by an adverse economic or political development than a broadly diversified fund.

Securities of small- and mid-capitalization companies may experience greater price volatility and be less liquid than larger, more established companies.

Trading on the exchange may be halted due to market conditions or other reasons. There can be no assurance that the requirements to maintain the listing of a fund on the exchange will continue to be met or be unchanged.

Value stocks are subject to the risk that valuations never improve or that the returns on value stocks are less than returns on other styles of investing or the overall stock market.

First Trust Advisors L.P. is the adviser to the fund. First Trust Advisors L.P. is an affiliate of First Trust Portfolios L.P., the fund’s distributor.

Nasdaq® and NASDAQ AlphaDEX® China Index are registered trademarks and service marks of Nasdaq, Inc. (together with its affiliates hereinafter referred to as the “Corporations”) and are licensed for use by First Trust. AlphaDEX® is a registered trademark owned by First Trust that has been licensed to Nasdaq, Inc. for use in the name of the Index. The Fund has not been passed on by the Corporations as to its legality or suitability. The Fund is not issued, endorsed, sold or promoted by the Corporations. THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE FUND.

"AlphaDEX®" is a registered trademark of First Trust Portfolios L.P. First Trust Portfolios L.P. has obtained a patent for the AlphaDEX® stock selection methodology from the United States Patent and Trademark Office.

Not FDIC Insured • Not Bank Guaranteed • May Lose Value
 
The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial professionals are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.
First Trust Portfolios L.P.  Member SIPC and FINRA. (Form CRS)   •  First Trust Advisors L.P. (Form CRS)
Home |  Important Legal Information |  Privacy Policy |  California Privacy Policy |  Business Continuity Plan |  FINRA BrokerCheck
Copyright © 2021 All rights reserved.