(FPA) First Trust Asia Pacific - Ratings and Ratios

The First Trust Asia Pacific Ex-Japan AlphaDEX Fund (NASDAQ:FPA) is an actively managed ETF that focuses on capturing alpha, or excess returns, from the Asia Pacific region excluding Japan. By utilizing the AlphaDEX selection methodology, the funds index aims to identify stocks with potential for risk-adjusted outperformance relative to traditional market indices.

The funds investment strategy involves allocating at least 90% of its net assets to securities within the AlphaDEX index, which is derived from the NASDAQ Asia Pacific Ex-Japan Index. This approach enables the fund to tap into the growth potential of the Asia Pacific region while minimizing exposure to Japan. The AlphaDEX methodology is designed to dynamically select stocks based on various factors, potentially leading to enhanced returns.

From a technical analysis perspective, FPAs price action indicates a bullish trend, with the last price of $33.14 surpassing its 20-day SMA of $31.74, 50-day SMA of $30.03, and 200-day SMA of $29.10. The Average True Range (ATR) of 0.53, representing 1.61% of the current price, suggests moderate volatility. Given the current trend and volatility, its likely that FPA will continue to experience upward momentum in the short term, potentially reaching $35.00 within the next few weeks.

Fundamentally, the funds Assets Under Management (AUM) stand at $16.50 million, indicating a relatively small but still viable ETF. Considering the funds investment strategy, technical trend, and fundamental data, a forecast for FPA could involve a potential price appreciation of 5-7% over the next quarter, driven by the AlphaDEX methodologys ability to identify outperforming stocks within the Asia Pacific region. However, its essential to monitor the funds AUM and tracking error to ensure that it remains aligned with its investment objectives.

To validate this forecast, its crucial to continue monitoring FPAs technical and fundamental data. A break below the 20-day SMA could signal a reversal in the trend, while a sustained increase in AUM could enhance the funds stability and attract more investors. By combining technical and fundamental analysis, investors can make more informed decisions about their investment in FPA.