FDT | First Trust Developed Markets ex-US AlphaDEX Fund

FDT ISSUER

First Trust Advisors L.P., the issuer of the FDT fund, adheres to an indexing investment strategy, aiming to replicate the performance of the Index, developed and maintained by Nasdaq, Inc. This index primarily consists of securities issued by small, mid, and large-cap companies from developed markets, excluding the United States, as classified by the Index Provider. Employing the AlphaDEX® selection methodology, the Index seeks to generate positive alpha, or risk-adjusted returns, relative to traditional benchmarks. The selection process involves filtering stocks based on liquidity, market capitalization, and trading on eligible exchanges. Additionally, the index imposes sector and country weighting constraints to maintain diversification. Rebalanced semi-annually, the Fund aligns its portfolio with the changes in the Index, potentially leading to higher portfolio turnover. As of March 31, 2023, the Index was composed of 299 securities, with significant investments in materials companies, Japanese issuers, Asian issuers, and European issuers, subject to changes over time, exposing the Fund to varying jurisdictional and sectoral risks.

FDT DIVIDEND

The FDT fund, managed by First Trust Advisors L.P., offers investors the potential for dividend income through its investment strategy focused on securities included in its underlying index, developed and maintained by Nasdaq, Inc. As the fund invests in a broad range of companies operating in developed markets excluding the United States, it provides exposure to dividend-paying stocks from diverse sectors and regions. By holding a portfolio primarily composed of dividend-yielding securities, the fund aims to generate a consistent stream of income for investors. The dividend income generated by the underlying securities is passed on to FDT shareholders, providing them with an attractive source of regular cash flow. This focus on dividend-paying investments aligns with the income objectives of many investors, offering them the potential for both capital appreciation and recurring income in their investment portfolios.

FDT TRACKING

The FDT fund, managed by First Trust Advisors L.P., diligently tracks the performance of its underlying index, which is developed and maintained by Nasdaq, Inc. Utilizing an indexing investment approach, the fund aims to replicate the index's performance before fees and expenses. With a commitment to transparency and accuracy, the fund allocates at least 90% of its net assets to securities included in the Index. Through regular rebalancing and reconstitution, the fund ensures alignment with the composition of the Index, striving to mirror its performance over time. This meticulous tracking strategy provides investors with a reliable means of gaining exposure to a diversified portfolio of securities from developed markets outside the United States, in accordance with the objectives outlined by the Index Provider.

FDT CORRELATION

The FDT fund, managed by First Trust Advisors L.P., aims to provide investors with a diversified investment option that may exhibit low correlation with traditional market benchmarks. By investing in securities included in its underlying index, developed and maintained by Nasdaq, Inc., the fund seeks to mitigate correlation risks typically associated with mainstream market indices. Through its focus on companies from developed markets excluding the United States, the fund offers exposure to a distinct set of economic drivers and market dynamics. This intentional diversification across regions, sectors, and market capitalizations may help reduce the fund's correlation with broader market movements, potentially offering investors a valuable tool for portfolio diversification. By seeking investments with unique performance drivers, the FDT fund endeavors to provide investors with the opportunity to achieve more stable risk-adjusted returns over the long term.

FDT SECTOR

The FDT fund, managed by First Trust Advisors L.P., adopts a sector-focused investment approach aimed at providing investors with exposure to a diverse array of industries within developed markets outside the United States. By investing in securities from various sectors included in its underlying index, developed and maintained by Nasdaq, Inc., the fund offers investors the opportunity to participate in the growth potential of different industries while mitigating concentration risk. This sector-focused strategy enables the fund to capture opportunities across a wide range of economic sectors, including but not limited to technology, healthcare, consumer goods, and financial services. With a diversified sector allocation, the FDT fund seeks to optimize risk-adjusted returns for investors by harnessing the growth potential of different industries and adapting to changing market conditions.

FDT EXPOSURE

The FDT fund, managed by First Trust Advisors L.P., provides investors with exposure to a broad spectrum of securities from developed markets outside the United States. Leveraging its underlying index, developed and maintained by Nasdaq, Inc., the fund offers comprehensive exposure to small, mid, and large-cap companies operating in developed markets. With a focus on securities issued by companies primarily domiciled outside the U.S., the fund enables investors to access diverse investment opportunities across various regions and industries. By investing in a wide array of asset classes, including common stocks, depositary receipts, real estate investment trusts (REITs), and preferred securities, the FDT fund aims to capture the growth potential of global markets while managing risks associated with international investing. This broad exposure strategy seeks to provide investors with a well-diversified portfolio positioned to navigate different market environments and capitalize on opportunities for long-term growth.