(FBZ) First Trust Brazil AlphaDEX - Ratings and Ratios

The First Trust Brazil AlphaDEX® Fund (FBZ) is an actively managed ETF that focuses on capturing alpha, or excess returns, from the Brazilian equity market by employing a rules-based AlphaDEX® selection methodology. This approach aims to identify stocks within the NASDAQ Brazil Index that have the potential to outperform traditional market indices on a risk-adjusted basis.

By investing at least 90% of its net assets in the securities that comprise the AlphaDEX® index, FBZ provides a diversified exposure to the Brazilian market, targeting companies that are poised for growth. The funds underlying index is designed to dynamically select stocks based on various fundamental and quantitative factors, aiming to maximize alpha generation.

Analyzing the technical data, we observe that FBZ has demonstrated a positive trend, with its last price of $11.40 exceeding both its 20-day and 50-day simple moving averages (SMA20: $11.10, SMA50: $10.56). This indicates a short-term bullish momentum. The Average True Range (ATR) of 0.19, or 1.64%, suggests moderate volatility. The 52-week high and low of $11.57 and $8.86, respectively, further underscore the funds recent strength and its potential for continued growth, given it remains above key moving averages.

Considering the fundamental data, the Assets Under Management (AUM) of $6.59 million indicates a relatively small but focused investment vehicle. The size could imply a more agile investment strategy, potentially allowing for quicker adjustments to the portfolio in response to market changes.

Forecasting the future performance of FBZ, we can anticipate continued positive momentum if the Brazilian equity market remains favorable and the AlphaDEX® methodology successfully identifies outperforming stocks. Given the current technical indicators and the funds strategy, a potential short-term target could be near its 52-week high of $11.57. However, investors should be cautious of the moderate volatility and potential market fluctuations that could impact the funds performance. A break below the SMA50 could signal a shift in trend, warranting a reassessment of the investment thesis.