First Trust Advisors L.P., as the issuer of the FEM (First Trust Emerging Markets AlphaDEX Fund), adheres to a disciplined investment strategy closely tied to the Index developed by Nasdaq, Inc. This strategy mandates the allocation of at least 90% of its net assets into securities comprising the Index, which focuses on small, mid, and large cap companies in emerging market countries. The Index's selection methodology, known as AlphaDEX®, aims to identify stocks with the potential for positive alpha relative to traditional indices. Through this approach, the Fund may invest in various instruments such as common stocks, depositary receipts, REITs, and preferred securities, denominated in non-U.S. currencies. The Index undergoes semi-annual rebalancing and reconstitution, influencing the Fund's portfolio turnover rate. Notably, the Fund strategically invests in non-Chinese shell companies to access Chinese firms unavailable for direct foreign investment. This proactive approach underscores the Fund's adaptability to evolving market conditions while acknowledging potential risks associated with concentrated investments in specific industries or jurisdictions.
FEM Dividend, managed by First Trust Advisors L.P., is an investment fund designed to provide investors with exposure to dividend-paying stocks in emerging market countries. The fund typically invests at least 90% of its assets in securities comprising its underlying index, which consists of companies across various market capitalizations operating in emerging economies. With a focus on dividend yield, FEM Dividend seeks to replicate the performance of its index before fees and expenses. By employing an indexing investment approach, the fund aims to capture the potential for dividend income while maintaining diversification across sectors and regions within emerging markets. Investors in FEM Dividend may benefit from the potential for both capital appreciation and recurring income streams from dividends, making it a suitable option for those seeking exposure to emerging market equities with an emphasis on income generation.
FEM Tracking, managed by First Trust Advisors L.P., is an exchange-traded fund (ETF) designed to closely mirror the performance of its underlying index, the Nasdaq Emerging Markets Index. With a primary objective of tracking the index before fees and expenses, FEM Tracking typically invests at least 90% of its assets in securities that comprise the index. The index includes a diverse range of small, mid, and large-cap companies operating in emerging market countries, as classified by the Index Provider. FEM Tracking employs an indexing investment approach, which aims to replicate the index's performance by holding a similar portfolio of securities. By doing so, investors in FEM Tracking gain exposure to emerging market equities while benefitting from the convenience, transparency, and cost-effectiveness of an ETF structure. The fund provides a straightforward way for investors to access emerging market opportunities and diversify their portfolios across regions and sectors within these dynamic economies.
FEM Correlation, managed by First Trust Advisors L.P., is an investment fund designed to provide investors with exposure to emerging market equities while focusing on correlation dynamics. The fund typically invests at least 90% of its assets in securities comprising its underlying index, which consists of companies across various market capitalizations operating in emerging market countries. FEM Correlation aims to replicate, before fees and expenses, the performance of its index, which is developed and maintained by Nasdaq, Inc. The index selection methodology is designed to capture stocks with potential positive alpha relative to traditional indices, enhancing the fund's risk-adjusted returns. By emphasizing correlation dynamics, FEM Correlation seeks to mitigate risk through diversification while optimizing returns by identifying securities that may exhibit low correlations with traditional market benchmarks. This approach provides investors with a means to potentially enhance portfolio efficiency by reducing overall correlation risk while still participating in the growth opportunities offered by emerging market economies. economies.
FEM Sector, managed by First Trust Advisors L.P., is an investment fund tailored to offer investors exposure to specific sectors within emerging market economies. The fund typically invests at least 90% of its assets in securities that comprise its underlying index, focusing on companies operating in selected sectors across various market capitalizations within emerging market countries. By employing a sector-specific investment strategy, FEM Sector seeks to capture the growth potential of emerging market industries while mitigating risks associated with broader market fluctuations. This targeted approach allows investors to fine-tune their exposure to specific sectors that they believe may offer attractive growth prospects. FEM Sector provides a valuable tool for investors seeking to diversify their portfolios and capitalize on the growth opportunities presented by emerging market sectors in a disciplined and efficient manner.
FEM Exposure, managed by First Trust Advisors L.P., is an investment fund crafted to provide investors with comprehensive exposure to emerging market equities across various asset classes and regions. The fund typically allocates at least 90% of its assets to securities comprising its underlying index, which encompasses a broad spectrum of companies operating in emerging market countries. FEM Exposure aims to replicate, before fees and expenses, the performance of its index, which is developed and maintained by Nasdaq, Inc. Through a diversified approach, the fund seeks to capture the growth potential of emerging market economies while managing risk through broad exposure to different sectors and regions. This comprehensive strategy enables investors to participate in the dynamic growth opportunities of emerging markets while mitigating potential volatility associated with individual securities or sectors. FEM Exposure offers investors a convenient and efficient means to gain exposure to emerging markets within a single investment vehicle, allowing for broader diversification and potential long-term growth.
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