FCA | First Trust China AlphaDEX Fund

FCA ISSUER

First Trust Advisors L.P., as the issuer of the FCA (First China AlphaDEX Fund), adheres to an indexing investment strategy, aiming to replicate the performance of the Index developed and sponsored by Nasdaq, Inc. The Index primarily consists of B Shares, depositary receipts, and U.S.-listed common stock issued by small, mid, and large cap companies operating in China. Employing the AlphaDEX® selection methodology, the Index selects stocks from the Nasdaq China Index that exhibit potential for positive alpha, or risk-adjusted returns, relative to traditional indices. The security selection process involves meticulous screening, ranking, and sector weighting, ensuring adherence to predetermined constraints. With semi-annual rebalancing and reconstitution, the Fund maintains alignment with the Index's composition, although significant investments in Chinese, Hong Kong, and Asian issuers may vary over time. Additionally, the Fund strategically invests in non-Chinese shell companies utilizing variable interest entities to access Chinese companies not directly available to foreign investors. This approach underscores First Trust Advisors' commitment to capturing opportunities within the dynamic Chinese market while managing associated risks.

FCA DIVIDEND

FCA Dividend, issued by First Trust Advisors L.P., is an investment vehicle designed to provide investors with exposure to dividend-paying securities. With a focus on income generation, FCA Dividend typically invests in a diversified portfolio comprising common stocks, depositary receipts, real estate investment trusts (REITs), and preferred shares that form part of its underlying dividend-focused index. This index, developed and maintained by Nasdaq, Inc., selects securities based on their dividend-yielding potential and adherence to specified criteria. The Fund employs an indexing investment approach to replicate the performance of the dividend-focused index before fees and expenses. Through careful security selection, periodic rebalancing, and sector weighting constraints, FCA Dividend aims to offer investors a reliable source of dividend income while potentially achieving capital appreciation over time.

FCA TRACKING

FCA Tracking, managed by First Trust Advisors L.P., is a fund designed to closely track the performance of a specific benchmark or index. With an investment strategy centered around indexing, FCA Tracking typically invests at least 90% of its net assets in securities that comprise its designated benchmark. Utilizing meticulous tracking methodologies, the fund aims to replicate the returns of the target index before fees and expenses. The index, developed and sponsored by Nasdaq, Inc., serves as a benchmark for the fund's performance and is carefully monitored to ensure alignment. FCA Tracking employs a disciplined approach to maintain consistent correlation with the index through periodic rebalancing and adjustments to its portfolio holdings. This strategy provides investors with a transparent and cost-effective way to gain exposure to the targeted market segment while minimizing tracking error.

FCA CORRELATION

FCA Correlation, managed by First Trust Advisors L.P., is a fund designed to maintain a strong correlation with a specific benchmark or index. The fund's investment strategy is focused on closely tracking the performance of its designated benchmark by investing at least 90% of its net assets in securities that comprise the benchmark. Employing sophisticated correlation methodologies, FCA Correlation aims to replicate the returns of the target index before fees and expenses. The benchmark, developed and sponsored by Nasdaq, Inc., serves as a reference point for the fund's performance, with meticulous attention paid to ensuring alignment. FCA Correlation employs rigorous monitoring and adjustment of its portfolio holdings to minimize deviations from the benchmark's performance, providing investors with a reliable means of gaining exposure to the targeted market segment while minimizing correlation risk.

FCA SECTOR

FCA Sector, managed by First Trust Advisors L.P., is a fund designed to focus on specific sectors within the market. With an investment strategy tailored towards sector-specific exposure, FCA Sector typically invests in companies operating within a particular industry or group of industries. The fund aims to capitalize on opportunities within selected sectors by investing in a diversified portfolio of securities that align with its sector focus. Utilizing in-depth research and analysis, FCA Sector seeks to identify sectors poised for growth and allocate its assets accordingly. The fund's portfolio may undergo periodic rebalancing to maintain sector weighting targets, ensuring alignment with its investment objectives. FCA Sector offers investors a targeted approach to sector investing, providing opportunities for potential capital appreciation within specific areas of the market.

FCA EXPOSURE

FCA Exposure, managed by First Trust Advisors L.P., is a fund designed to provide investors with exposure to specific markets, regions, or asset classes. The fund's investment strategy is focused on capturing opportunities within targeted segments of the market by investing in securities that offer exposure to these areas. FCA Exposure may allocate its assets across a range of asset classes such as equities, fixed income, commodities, or alternative investments, depending on its investment mandate. Through strategic asset allocation and diversification, the fund aims to optimize risk-adjusted returns while providing investors with access to a broad array of investment opportunities. FCA Exposure is actively managed to capitalize on evolving market conditions and may adjust its portfolio holdings accordingly to enhance exposure to selected markets or asset classes. Overall, FCA Exposure offers investors a flexible and dynamic approach to gaining exposure to specific areas of the investment universe.