(FDT) First Trust Developed - Ratings and Ratios

The First Trust Developed Markets Ex-US AlphaDEX Fund (FDT) is an actively managed ETF that employs a rules-based stock selection methodology to identify companies in developed markets outside the US with potential for alpha generation. By investing at least 90% of its net assets in the securities comprising the AlphaDEX index, FDT aims to outperform traditional indices on a risk-adjusted basis.

The AlphaDEX selection methodology is a key differentiator for FDT, as it uses a multifactor model to evaluate stocks based on various fundamental and quantitative metrics. This approach enables the fund to dynamically capture market opportunities and adjust its portfolio composition in response to changing market conditions.

From a technical analysis perspective, FDTs recent price action indicates a bullish trend, with the stock having broken out above its 20-day simple moving average (SMA20) of $60.24 and 50-day SMA of $59.03. The current price of $62.45 is near its 52-week high, suggesting strong momentum. The average true range (ATR) of 1.24, or 1.99% of the current price, indicates moderate volatility. Given the current trend and momentum indicators, it is likely that FDT will continue to appreciate in the near term, potentially targeting the next resistance level around $65.

Fundamentally, FDTs assets under management (AUM) stand at $447.73 million, indicating a moderate level of investor interest. As the fund is categorized under Foreign Large Value, its performance is closely tied to the overall direction of developed markets outside the US. With the AlphaDEX methodology in place, FDT is well-positioned to capitalize on opportunities in undervalued companies in these markets.

Forecasting FDTs performance using a combination of technical and fundamental analysis, we can expect the fund to continue its upward trend in the near term, driven by its strong momentum and the potential for alpha generation through the AlphaDEX selection methodology. However, investors should be cautious of potential risks, including market volatility and currency fluctuations. A potential price target for FDT could be around $65, representing a 4% upside from current levels.