4 min readBy Beqa Bumbeishvili ETF Insider
EEM & EWZ: Sectors and Top Holdings
EEM and EWZ are distinctive ETFs that cater to different aspects of the emerging market landscape, each presenting investors with unique opportunities.
The First Trust Advisors L.P., as the issuer of the FEP, adheres to a strategy that involves investing predominantly in securities constituting the designated Index, aiming to allocate at least 90% of its net assets accordingly. The Index, managed by Nasdaq, Inc., encompasses a diverse array of securities issued by small, mid, and large-cap companies across Europe, based on classifications by the Index Provider. Employing the AlphaDEX® selection methodology, the Index aims to identify stocks with the potential to yield positive alpha relative to conventional benchmarks. Selection criteria involve factors such as liquidity, market capitalization, and trading eligibility. The Index undergoes semi-annual rebalancing and reconstitution, with the fund adjusting its portfolio correspondingly. While the Fund may concentrate its investments in specific industries or regions, its composition evolves with the Index, potentially exposing it to varying risks associated with different jurisdictions or sectors. As of March 31, 2023, the Index comprised 199 securities, with notable investments in the United Kingdom and European issuers, though this allocation may change over time.
FEP Dividend, offered by First Trust Advisors L.P., operates with a focus on generating income through investments in securities listed within its designated Index. With a commitment to delivering dividends to investors, the fund typically allocates at least 90% of its net assets to securities included in the Index, which comprises a diverse range of European companies across small, mid, and large-cap sectors. Managed by Nasdaq, Inc., the Index employs the AlphaDEX® selection methodology to identify stocks with the potential for positive alpha relative to traditional benchmarks. Semi-annual rebalancing and reconstitution ensure alignment with market dynamics, with the fund adjusting its portfolio accordingly to maintain income-generating potential. As of the latest reporting, the fund's investment strategy may lead to significant exposure to specific jurisdictions or sectors, subjecting it to associated risks. Overall, FEP Dividend aims to provide investors with a steady stream of dividends while maintaining a diversified approach to capital appreciation within the European market.
FEP Tracking, managed by First Trust Advisors L.P., is designed to closely mirror the performance of its designated Index, maintaining a tracking strategy by investing at least 90% of its net assets in securities included in the Index. This Index, developed and sponsored by Nasdaq, Inc., encompasses a broad spectrum of European companies across various market capitalizations, utilizing the AlphaDEX® selection methodology to identify stocks with the potential for favorable risk-adjusted returns. FEP Tracking employs a disciplined approach, adhering to the Index's sector and country weighting constraints to ensure alignment with market benchmarks. Through semi-annual rebalancing and reconstitution, the fund aims to adjust its portfolio to reflect changes in the Index composition, potentially leading to higher portfolio turnover. While this strategy aims for precise tracking of the Index, investors should be aware of associated risks and potential deviations in performance. Overall, FEP Tracking offers investors a vehicle for gaining exposure to European markets while seeking to closely replicate the performance of its designated Index.
FEP Correlation, managed by First Trust Advisors L.P., seeks to maintain a strong correlation with its designated Index by investing primarily in securities included therein. This Index, overseen by Nasdaq, Inc., encompasses a wide array of European companies across different market capitalizations, with the aim of providing investors with exposure to the European market while closely tracking its performance. Utilizing the AlphaDEX® selection methodology, the Index identifies stocks with potential for favorable risk-adjusted returns relative to conventional benchmarks. FEP Correlation adopts a disciplined approach, ensuring that its portfolio reflects the sector and country weighting constraints of the Index through semi-annual rebalancing and reconstitution. While the fund aims for a high degree of correlation with its benchmark, investors should recognize that certain factors may lead to deviations in performance. Despite this, FEP Correlation offers investors a vehicle for accessing the European market with the goal of achieving a strong correlation with its designated Index.
FEP Sector, managed by First Trust Advisors L.P., focuses on investing in specific sectors within its designated Index to capitalize on sector-specific opportunities within the European market. The fund aims to allocate at least 90% of its net assets to securities included in the Index, which comprises a diverse range of European companies across various sectors and market capitalizations. With Nasdaq, Inc. overseeing the Index, FEP Sector utilizes the AlphaDEX® selection methodology to identify promising stocks within targeted sectors, aiming to outperform traditional benchmarks on a risk-adjusted basis. The fund maintains a disciplined approach, adhering to sector weighting constraints established by the Index, and undergoes semi-annual rebalancing and reconstitution to ensure alignment with market dynamics. While FEP Sector provides investors with focused exposure to specific sectors within the European market, it's important to note that sector-specific risks may impact performance. Overall, the fund offers investors an opportunity to capitalize on sector-specific trends while maintaining diversification within the European market.
"FEP Exposure, managed by First Trust Advisors L.P., offers investors a vehicle for gaining comprehensive exposure to the European market through its investment strategy. With a focus on replicating the performance of its designated Index, the fund typically invests at least 90% of its net assets in securities included therein. The Index, developed and sponsored by Nasdaq, Inc., encompasses a wide range of European companies across different market capitalizations and sectors. Leveraging the AlphaDEX® selection methodology, FEP Exposure identifies stocks with the potential for positive risk-adjusted returns relative to traditional benchmarks. The fund maintains a disciplined approach, adhering to sector and country weighting constraints established by the Index, and undergoes semi-annual rebalancing and reconstitution to reflect changes in market dynamics. By offering comprehensive exposure to the European market, FEP Exposure provides investors with an opportunity to participate in the region's growth potential while diversifying their investment portfolio."
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4 min readEEM and EWZ are distinctive ETFs that cater to different aspects of the emerging market landscape, each presenting investors with unique opportunities.
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ETF Insider is a novel portfolio optimization tool that uses the power of data visualization to gain insight into portfolio compositions, concentration risks, portfolio efficiency and more. Complex financial data can be transformed into visually appealing and easily digestible graphs and charts, allowing investors to quickly identify trends and make well-informed investment decisions. Not only does this save time, but it also increases the accuracy and effectiveness of portfolio management.
