First Trust adding nine international funds to AlphaDex series

First Trust Portfolios LP has filed with the Securities and Exchange Commission to launch nine international exchange-traded funds as part of its AlphaDex series.
JAN 20, 2011
First Trust Portfolios LP has filed with the Securities and Exchange Commission to launch nine international exchange-traded funds as part of its AlphaDex series. The AlphaDex series, which First Trust introduced in May of 2007, currently comprises 16 domestic ETFs that deploy quantitative-index-based strategies. Unlike traditional passively managed ETFs, which include companies based on market capitalization, the AlphaDex series is weighted to companies that the firm deems have greater investment merit, said Ryan Issakainen, vice president and exchange-traded-fund strategist. The firm has filed to launch the First Trust Asia Pacific Ex-Japan AlphaDex Fund, First Trust Europe AlphaDex Fund, First Trust Latin America AlphaDex Fund, First Trust Brazil AlphaDex Fund, First Trust China AlphaDex Fund, First Trust Japan AlphaDex Fund, First Trust South Korea AlphaDex Fund, First Trust Developed Markets Ex-US AlphaDex Fund and the First Trust Emerging Markets AlphaDex Fund. First Trust always intended to fill out its product line with international offerings but wanted to wait until the domestic lineup had a track record, Mr. Issakainen said. The 16 funds have $2.6 billion in assets and all of them had positive returns over the past year, according to First Trust. Given the increase in demand for international offerings, and emerging markets in general, it makes sense for First Trust to launch these offerings, said Paul Justice, an analyst at Morningstar Inc. “The AlphaDex strategy has shown some strength,” he said. In fact, the First Trust Health Care AlphaDex Fund Ticker:(FXH) is a five-star fund, and eight other AlphaDex funds have four stars, according to Morningstar.

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