(FCA) First Trust China AlphaDEX - Ratings and Ratios

The First Trust China AlphaDEX® Fund is an actively managed ETF that seeks to outperform traditional China-focused indices by investing in a portfolio of stocks selected using the AlphaDEX methodology, which aims to identify securities with potential for positive alpha, or risk-adjusted returns.

The funds investment strategy is centered around the AlphaDEX selection process, which is designed to pinpoint stocks from the NASDAQ China Index that exhibit characteristics associated with superior risk-adjusted performance. By focusing on these stocks, the fund aims to generate returns that exceed those of traditional China-focused indices.

With a portfolio comprised of at least 90% of the securities that make up the underlying index, the fund provides investors with a diversified exposure to the Chinese market. The AlphaDEX methodology is a key differentiator, as it employs a rules-based approach to stock selection, aiming to minimize emotional bias and maximize returns.

Analyzing the funds recent performance, we see that it has been trending upwards, with its current price of $22.14 exceeding both its 20-day and 50-day simple moving averages (SMA20: $21.21, SMA50: $20.92). The 200-day moving average ($20.01) also indicates a longer-term uptrend. The Average True Range (ATR) of 0.42, representing 1.88% of the current price, suggests moderate volatility.

Given the current technical and fundamental landscape, a forecast for the First Trust China AlphaDEX Fund could be constructed by analyzing the interplay between its technical indicators and fundamental data. The funds Assets Under Management (AUM) stand at $36.08M USD, indicating a relatively modest size. However, its liquidity and trading activity appear to be sufficient, as evidenced by its listing on NASDAQ.

Combining the technical uptrend with the funds underlying investment strategy, a potential forecast could be that the First Trust China AlphaDEX Fund continues to outperform traditional China-focused indices, driven by the AlphaDEX selection methodology. If the current uptrend persists, the funds price could potentially reach the upper end of its 52-week range, nearing $24.05. Conversely, a decline below the 200-day moving average could signal a reversal, potentially targeting the lower end of its 52-week range, around $16.75.