First Trust Advisors L.P. (FPA), through its fund, focuses on investing at least 90% of its net assets in common stocks, depositary receipts, real estate investment trusts (REITs), and preferred shares that constitute the Index, which is owned and managed by Nasdaq, Inc. The Index encompasses small, mid, and large cap companies operating in the Asia Pacific region, excluding Japan, selected using the AlphaDEX® methodology to potentially achieve positive alpha relative to traditional indices. FPA follows a meticulous process for security selection, beginning with the universe of stocks from the Base Index and eliminating ineligible stocks based on various criteria. South Korean stocks at their foreign ownership limit are replaced with depositary receipts if available, and the remaining stocks are ranked on growth and value factors. The top 100 stocks form the selected stocks, which are then weighted based on their selection scores, subject to sector/country weighting constraints. With semi-annual rebalancing and reconstitution, FPA ensures alignment with the Index's changes, potentially leading to a higher portfolio turnover rate. As of March 31, 2022, the Index comprised 99 securities, with significant investments in materials companies, Australian, South Korean, and Asian issuers. Moreover, FPA employs strategies to gain exposure to Chinese companies through non-Chinese shell companies, thereby navigating restrictions on direct investments by foreign investors. However, such concentration in specific industries or regions exposes the fund to associated risks
First Trust Advisors L.P. (FPA) aims to provide investors with attractive dividend income through its dividend-focused investment strategy. By investing in a diversified portfolio of dividend-paying stocks, real estate investment trusts (REITs), and preferred shares, FPA seeks to generate a steady stream of income for its shareholders. The fund's approach involves selecting securities from the Index, which comprises companies in the Asia Pacific region, excluding Japan, known for their dividend-paying capabilities. Through rigorous security selection and adherence to the Index's criteria, FPA endeavors to capture the potential for dividend growth and stability. With a commitment to delivering consistent dividend income, FPA's dividend-focused approach aligns with the objectives of income-oriented investors seeking reliable returns over time.
First Trust Advisors L.P. (FPA) employs a meticulous tracking strategy to replicate the performance of its designated index, aiming to closely mirror its movements before fees and expenses. By investing at least 90% of its net assets in the securities that comprise the Index, FPA utilizes an indexing investment approach to ensure alignment with the index's performance. The Index, developed and maintained by Nasdaq, Inc., encompasses a diverse range of stocks, depositary receipts, real estate investment trusts (REITs), and preferred shares from the Asia Pacific region, excluding Japan. FPA meticulously follows the guidelines set by the Index Provider, including its sector/country weighting constraints, to accurately track the index's composition and returns. Through disciplined portfolio management and periodic rebalancing, FPA strives to minimize tracking error and provide investors with a reliable investment vehicle that closely mirrors the performance of its designated index.
First Trust Advisors L.P. (FPA) pays close attention to the correlation of its investment portfolio with the designated index, aiming to achieve a high degree of correlation over time. By investing in securities that comprise the Index, which is meticulously developed and maintained by Nasdaq, Inc., FPA seeks to closely track the index's performance. Through diligent security selection and adherence to the index's criteria, FPA endeavors to minimize deviations in performance between the fund and the index. Additionally, FPA continuously monitors the correlation between its portfolio and the index, adjusting its holdings as necessary to maintain alignment with the index's composition and returns. By prioritizing a strong correlation, FPA aims to provide investors with a reliable investment vehicle that reflects the performance of its designated index accurately.
First Trust Advisors L.P. (FPA) strategically navigates sector exposures within its investment portfolio to optimize risk-adjusted returns and capitalize on market opportunities. With a diversified approach, FPA invests across various sectors represented within the designated index, meticulously balancing exposure to industries such as materials, technology, consumer goods, and financial services, among others. Through thorough analysis and adherence to sector/country weighting constraints set by the index provider, FPA ensures a well-rounded portfolio that reflects the composition of the broader market. By actively managing sector allocations and monitoring industry trends, FPA aims to position its portfolio for long-term success while mitigating sector-specific risks. This sector-focused approach underscores FPA's commitment to delivering value to investors through prudent sector selection and portfolio diversification..
First Trust Advisors L.P. (FPA) strategically manages exposure within its investment portfolio to capture opportunities and mitigate risks across different asset classes and regions. FPA's approach to exposure encompasses a diverse range of securities, including common stocks, depositary receipts, real estate investment trusts (REITs), and preferred shares, primarily focused on the Asia Pacific region excluding Japan. By investing in securities that comprise the designated index developed and maintained by Nasdaq, Inc., FPA gains exposure to companies of varying market capitalizations and sectors within this region. Additionally, FPA may invest in non-Chinese shell companies to access certain Chinese companies not directly available to foreign investors, broadening the fund's exposure while navigating regulatory constraints. Through disciplined portfolio management and adherence to the index's criteria, FPA seeks to optimize exposure across different asset classes and regions, positioning its portfolio for potential growth opportunities while managing associated risks effectively.
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