(FLN) First Trust Latin America - Ratings and Ratios

The First Trust Latin America AlphaDEX® Fund (NASDAQ:FLN) is an actively managed ETF that focuses on capturing alpha, or excess returns, from Latin American stocks. By utilizing the AlphaDEX® methodology, the funds index selects securities from the NASDAQ Latin America Index that exhibit potential for outperforming traditional market-cap weighted indices on a risk-adjusted basis.

The AlphaDEX® strategy is a rules-based approach that evaluates stocks based on various fundamental and quantitative factors, aiming to identify those with the highest potential for positive alpha. This methodology is designed to tilt the portfolio towards stocks that are more likely to outperform, rather than simply tracking a market-cap weighted index. As a result, FLN offers investors a unique exposure to Latin American equities, with a focus on capturing excess returns.

From a technical analysis perspective, FLNs price action suggests a bullish trend, with the ETF trading above its 20-day, 50-day, and 200-day moving averages. The Average True Range (ATR) indicates a moderate level of volatility, which may be expected given the ETFs focus on Latin American markets. With a 52-week high of $19.34 and a low of $14.94, FLN has demonstrated significant price movement in the past year.

Combining technical and fundamental insights, a forecast for FLN can be derived. With the ETFs AUM of $12.21M USD and its focus on capturing alpha, FLN is well-positioned to benefit from any upswing in Latin American markets. Given the current technical trends, a potential target price for FLN could be around $20.50, representing a 6% increase from its current price. However, this is contingent upon the ETFs ability to maintain its bullish trend and the overall performance of the underlying Latin American stocks.

Its worth noting that investors should be aware of the potential risks associated with investing in emerging markets, such as those in Latin America. These risks include currency fluctuations, economic instability, and regulatory challenges. As with any investment, its essential to conduct thorough research and consider multiple perspectives before making a decision.