(FEMS) First Trust Emerging - Ratings and Ratios

The First Trust Emerging Markets Small Cap AlphaDEX® Fund (FEMS) is an actively managed ETF that focuses on capturing alpha in emerging markets through a rules-based stock selection process. By investing at least 90% of its net assets in the securities comprising the AlphaDEX index, FEMS aims to outperform traditional emerging markets indices.

The AlphaDEX selection methodology used by FEMS is designed to identify stocks with potential for risk-adjusted returns by analyzing various factors. This approach allows the fund to tilt towards stocks that are likely to outperform, providing a more nuanced exposure to emerging markets small-cap stocks.

From a technical standpoint, FEMS has shown a recent uptrend, with its last price of $38.26 exceeding its 20-day and 50-day simple moving averages (SMA) of $36.82 and $36.92, respectively. The Average True Range (ATR) of 1.02, representing 2.66% of the last price, indicates moderate volatility. Given the current SMA200 at $38.02, a slight bullish momentum is evident. A forecast based on the technical data suggests that FEMS may continue its upward trajectory, potentially testing the 52-week high of $41.26, provided it can maintain its current momentum and break through the $38.50 resistance level.

Fundamentally, FEMS has $240.32 million in assets under management (AUM), indicating a reasonable level of investor interest. Emerging markets small-cap stocks, the focus of FEMS, often present opportunities for growth due to their potential for expansion and increasing market presence. The funds strategy of targeting stocks with alpha generation potential positions it to capitalize on these growth opportunities.

Combining both technical and fundamental insights, a forecast for FEMS suggests potential for further growth, driven by its AlphaDEX selection methodology and the underlying growth potential of emerging markets small-cap stocks. If the current uptrend continues and the fund maintains its focus on stocks with positive alpha potential, FEMS could see its price appreciate towards the $41.26 level, representing a potential upside of around 7.5% from its current price.