(FEP) First Trust Europe AlphaDEX - Ratings and Ratios

The First Trust Europe AlphaDEX Fund (NASDAQ:FEP) is an ETF that aims to outperform traditional European indices by investing in a selection of stocks from the NASDAQ Europe Index, using the AlphaDEX methodology to identify potential alpha generators.

To achieve its objective, the fund will typically allocate at least 90% of its net assets to the constituent securities of the index, which is constructed using the AlphaDEX selection process. This approach is designed to identify stocks that can deliver risk-adjusted returns above those of traditional indices.

From a performance perspective, key metrics to evaluate FEP include its tracking error, information ratio, and Sharpe ratio. A low tracking error would indicate that the fund is closely following its underlying index, while a high information ratio would suggest that the AlphaDEX methodology is effectively generating alpha. A high Sharpe ratio would indicate that the fund is delivering strong risk-adjusted returns.

To further assess FEPs investment merit, one could examine its sector allocation, geographic distribution, and stock holdings. For instance, an analysis of the funds sector weights could reveal whether it is overweight or underweight certain industries relative to its benchmark. Additionally, evaluating the funds top holdings and their respective weightings could provide insight into its overall investment strategy and risk profile.

Other relevant KPIs for FEP include its expense ratio, dividend yield, and beta. A low expense ratio would be desirable, as it would indicate that the fund is minimizing costs for investors. A competitive dividend yield could make the fund more attractive to income-seeking investors. A beta close to 1 would suggest that FEP is closely tracking the overall European market, while a beta significantly different from 1 could indicate that the fund is taking on more or less market risk.