FBZ | First Trust Brazil AlphaDEX Fund

FBZ ISSUER

First Trust Advisors L.P., as the issuer of the FBZ fund, adheres to a stringent investment strategy centered on mirroring the performance of the Nasdaq Brazil Index. With a commitment to investing a minimum of 90% of its assets in common stocks, depositary receipts, REITs, and preferred shares comprising the Index, FBZ employs an indexing approach to replicate the Index's performance before expenses. The Index, developed and sponsored by Nasdaq, Inc., focuses on small, mid, and large-cap companies operating in Brazil, an emerging market classified by factors such as national income and market capitalization. Employing the AlphaDEX® selection methodology, the Index identifies stocks within the Base Index with potential for positive alpha relative to traditional benchmarks. FBZ's security selection process involves screening and ranking stocks based on growth and value factors, with the top 50 stocks forming the selected stocks, subject to sector weighting constraints. Rebalanced semi-annually, the Index may prompt higher portfolio turnover for FBZ, which may concentrate investments in specific industries or sectors, subjecting the fund to associated risks. As of March 31, 2022, FBZ maintained significant holdings in materials, utilities, and Brazilian issuers, though allocation may vary over time, potentially exposing the fund to jurisdiction-specific or sector-related risks.

FBZ DIVIDEND

For FBZ dividend, investors can anticipate potential returns based on the fund's investment strategy and the performance of the underlying assets comprising the Nasdaq Brazil Index. Given FBZ's commitment to replicating the Index's performance before fees and expenses, dividend distributions may reflect the dividend income generated by the stocks, depositary receipts, REITs, and preferred shares within the Index. Since the Index includes securities from small, mid, and large-cap companies in Brazil, dividend payouts may vary depending on the dividend policies of individual companies and prevailing market conditions. Investors should consider the fund's dividend history, the economic environment in Brazil, and any changes in the composition of the Index to gauge potential dividend income from FBZ. Additionally, the fund's semi-annual rebalancing and reconstitution may impact dividend distributions as portfolio adjustments are made in response to changes in the Index. Overall, FBZ offers the opportunity for dividend income aligned with the performance of Brazilian securities within its portfolio.

FBZ TRACKING

FBZ, managed by First Trust Advisors L.P., aims to closely track the performance of the Nasdaq Brazil Index, offering investors exposure to the Brazilian equities market. The fund employs an indexing investment approach, seeking to replicate the Index's performance before fees and expenses. With a focus on small, mid, and large-cap companies operating in Brazil, FBZ utilizes the AlphaDEX® selection methodology to identify stocks within the Base Index that may generate positive alpha relative to traditional benchmarks. By investing at least 90% of its net assets in common stocks, depositary receipts, REITs, and preferred shares comprising the Index, FBZ endeavors to mirror the performance of its benchmark. To maintain alignment with the Index, FBZ undergoes semi-annual rebalancing and reconstitution, adjusting its portfolio to reflect changes in the Index's composition. This disciplined tracking methodology ensures that FBZ investors can gain exposure to the Brazilian equities market while closely mirroring the performance of the Nasdaq Brazil Index.

FBZ CORRELATION

FBZ, issued by First Trust Advisors L.P., exhibits a correlation with the Nasdaq Brazil Index, reflecting its investment objective of closely tracking the performance of Brazilian equities. The fund's correlation with the Index is influenced by its investment strategy, which involves investing at least 90% of its net assets in common stocks, depositary receipts, REITs, and preferred shares comprising the Index. FBZ's reliance on an indexing approach, coupled with the use of the AlphaDEX® selection methodology, further aligns its performance with the Index. By selecting stocks from the Base Index that demonstrate potential for positive alpha relative to traditional benchmarks, FBZ aims to maintain a correlation with the broader Brazilian equities market while potentially outperforming conventional indices. Although market dynamics and individual stock performance may influence short-term correlations, FBZ's disciplined investment approach and focus on tracking the Nasdaq Brazil Index contribute to a consistent correlation over time. Investors seeking exposure to Brazilian equities can thus rely on FBZ to provide a correlation that reflects the performance of the Nasdaq Brazil Index.

FBZ SECTOR

FBZ, managed by First Trust Advisors L.P., maintains exposure to various sectors within the Brazilian equities market, reflecting the composition of the Nasdaq Brazil Index. The fund's sector allocation is driven by the Index's methodology, which selects stocks from sectors spanning across the Brazilian economy. FBZ invests in common stocks, depositary receipts, REITs, and preferred shares across sectors such as materials, utilities, financials, technology, and more, based on the sector weights determined by the Index. While sector allocation may evolve over time due to changes in the Index's composition and market conditions, FBZ's commitment to replicating the Index's performance before fees and expenses ensures that investors gain diversified exposure to the Brazilian equities market across various sectors. As a result, FBZ offers investors the opportunity to participate in the growth potential of different sectors within Brazil's dynamic economy.

FBZ EXPOSURE

FBZ, issued by First Trust Advisors L.P., provides investors with exposure to the Brazilian equities market through its investment strategy designed to closely track the Nasdaq Brazil Index. The fund's exposure encompasses a diverse range of assets, including common stocks, depositary receipts, REITs, and preferred shares that comprise the Index. By investing at least 90% of its net assets in securities representing the Index, FBZ offers investors a comprehensive way to participate in the performance of Brazilian companies across various market capitalizations. Additionally, FBZ's exposure extends to different sectors within the Brazilian economy, reflecting the sector weights determined by the Index. This broad exposure enables investors to gain access to the growth potential of the Brazilian equities market while benefiting from the diversification offered by investing across multiple sectors and market segments. As a result, FBZ provides a convenient vehicle for investors seeking targeted exposure to Brazilian equities within their investment portfolios.