FEMS ETF — Holdings & Analysis

FEMS distinguishes itself through its AlphaDEX methodology, which aims to identify and overweight stocks with superior growth potential and value characteristics within the emerging markets small-cap universe. The fund's expense ratio is 0.80%. Past performance does not guarantee future results.

First Trust Emerging Markets Small Cap AlphaDEX Fund (FEMS) ETF — Price, Holdings & Analysis

The First Trust Emerging Markets Small Cap AlphaDEX Fund (FEMS) is an international equity ETF with $0.25 billion in assets under management. It seeks to track the Nasdaq AlphaDEX Emerging Markets Small Cap Index, employing a unique stock selection process. FEMS distinguishes itself through its AlphaDEX methodology, which aims to identify and overweight stocks with superior growth potential and value characteristics within the emerging markets small-cap universe. The fund's expense ratio is 0.80%. Past performance does not guarantee future results.

ETF Overview

The First Trust Emerging Markets Small Cap AlphaDEX Fund is an exchange-traded fund. The investment objective of the Fund is to seek investment results that correspond generally to the price and yield, before the Fund's fees and expenses, of an equity index called the Nasdaq AlphaDEX Emerging Markets Small Cap Index.

FEMS aims to provide investment results that correspond generally to the price and yield of the Nasdaq AlphaDEX Emerging Markets Small Cap Index. This index employs the AlphaDEX stock selection methodology, which ranks stocks based on growth factors like sales growth, price appreciation, and momentum, as well as value factors such as book value to price, cash flow to price, and return on assets. The fund overweights stocks with the highest combined scores, seeking to outperform traditional market-cap-weighted indexes. FEMS invests in a diverse portfolio of emerging market small-cap companies, with top holdings including Ezconn Corp (1.98%), PT Energi Mega Persada Tbk (1.50%), and IOI Properties Group Bhd (1.39%). Sector allocation is led by Technology (14.1%), Industrials (12.1%), and Consumer Cyclical (11.6%). The fund offers exposure to a range of emerging economies, with significant allocations to China (19.2%), Brazil (16.1%), and Taiwan (15.8%). This ETF may be suitable for investors seeking targeted exposure to emerging market small-cap stocks with a focus on growth and value characteristics. Past performance does not guarantee future results.

Risk Metrics

FEMS carries several risks inherent to emerging market small-cap investing. Its focus on smaller companies can lead to higher volatility compared to large-cap-focused ETFs. The fund's emerging market exposure introduces geopolitical and currency risks, as these markets can be more susceptible to political instability and economic fluctuations. With an expense ratio of 0.80%, the fund's cost can create a drag on returns, especially relative to lower-cost broad market ETFs. The fund's beta of 0.69 (3Y) suggests it is less volatile than the overall market. The fund's top 10 holdings account for approximately 13.83% of the portfolio, indicating some concentration risk. Sector allocation shows a tilt towards Technology, Industrials, and Consumer Cyclical, which could impact performance if these sectors underperform. Past performance does not guarantee future results.

Expense Ratio

0.80%

What does FEMS hold?

Holding	Weight
Ezconn Corp (6442.TW)	1.98%
PT Energi Mega Persada Tbk (ENRG.JK)	1.50%
IOI Properties Group Bhd (5249.KL)	1.39%
WinWay Technology Co Ltd Ordinary Shares (6515.TW)	1.32%
Movida Participacoes SA (MOVI3.SA)	1.26%
JHSF Participacoes SA (JHSF3.SA)	1.21%
Sany Heavy Equipment International Holdings Co Ltd (0631.HK)	1.16%
Bradespar SA Participating Preferred (BRAP4)	1.14%
Lingbao Gold Group Co Ltd Class H (3330.HK)	1.11%
Dynamic Holding Co Ltd Ordinary Shares (3715.TW)	1.04%

How Is the Fund Allocated?

Sector	Weight
Technology	14.1%
Industrials	12.1%
Consumer Cyclical	11.6%
Real Estate	10.5%
Basic Materials	10.1%
Energy	9.9%
Consumer Defensive	8.5%
Utilities	8.0%
Financial Services	6.0%
Healthcare	5.8%
Communication Services	3.3%

Country	Weight
China	19.2%
Brazil	16.1%
Taiwan	15.8%
Indonesia	10.8%
Turkey	9.6%
Thailand	6.6%
South Africa	6.5%
Malaysia	2.6%
Mexico	2.5%
Philippines	2.3%

Dividend Yield

3.72%

First Trust RiverFront Dynamic Emerging Markets ETF (RFEM) — 0.99% expense ratio
Dimensional - International Core Equity Market ETF (DFAI) — 0.18% expense ratio
WisdomTree Global High Dividend Fund (DEW) — 0.58% expense ratio
First Trust Developed Markets ex-US AlphaDEX Fund (FDT) — 0.80% expense ratio
First Trust Europe AlphaDEX Fund (FEP) — 0.80% expense ratio
WisdomTree International High Dividend Fund (DTH) — 0.58% expense ratio
WisdomTree International Hedged Quality Dividend Growth Fund (IHDG) — 0.58% expense ratio
JPMorgan BetaBuilders Emerging Markets Equity ETF (BBEM) — 0.15% expense ratio

First Trust RiverFront Dynamic Emerging Markets ETF (RFEM) (International Equity) — 0.99% expense ratio
FT Energy Income Partners Enhanced Income ETF (EIPI) (Sector Equity) — 1.11% expense ratio
First Trust Europe AlphaDEX Fund (FEP) (International Equity) — 0.80% expense ratio
First Trust NASDAQ Clean Edge Green Energy Index Fund (QCLN) (Sector Equity) — 0.56% expense ratio
First Trust Developed Markets ex-US AlphaDEX Fund (FDT) (International Equity) — 0.80% expense ratio
First Trust Dow Jones International Internet ETF (FDNI) (International Equity) — 0.65% expense ratio

Risk Metrics

Beta: 0.69

Questions & Answers

What is FEMS and what does it track?

The First Trust Emerging Markets Small Cap AlphaDEX Fund (FEMS) is an exchange-traded fund that seeks to track the investment results of the Nasdaq AlphaDEX Emerging Markets Small Cap Index.

This index is designed to identify and select emerging market small-cap stocks with the potential for superior risk-adjusted returns.

What is the expense ratio for FEMS?

The expense ratio for FEMS is 0.80%. This means that for every $10,000 invested in the fund, $80 is used to cover the fund's operating expenses.

While this provides access to a unique AlphaDEX strategy within the emerging markets small-cap space, it is higher than some broad-based emerging market ETFs.

What are the top holdings in FEMS?

As of 2026-03-15, the top holdings in FEMS include Ezconn Corp (1.98%), PT Energi Mega Persada Tbk (1.50%), and IOI Properties Group Bhd (1.39%).

These holdings represent a relatively small portion of the overall portfolio, as FEMS holds 224 different stocks. The fund's diversified approach aims to reduce the impact of any single holding on overall performance.

Is FEMS a good long-term investment?

Whether FEMS is a suitable long-term investment depends on an individual's investment goals, risk tolerance, and time horizon. The fund offers exposure to the potential growth of emerging market small-cap companies, which may provide diversification benefits.

However, emerging markets can be more volatile than developed markets, and small-cap stocks can be more sensitive to economic fluctuations.

How does FEMS compare to similar ETFs?

FEMS differentiates itself from other emerging market ETFs through its AlphaDEX methodology, which aims to select stocks with superior growth and value characteristics.

While many emerging market ETFs are market-cap-weighted, FEMS actively selects and weights stocks based on its proprietary index. The fund's expense ratio of 0.80% may be higher than some passively managed emerging market ETFs.

Does FEMS pay dividends?

Yes, FEMS does pay dividends. The fund's current dividend yield is 3.72%. This yield reflects the income generated by the fund's underlying holdings, net of expenses.

Dividend payments can vary over time depending on the performance of the underlying companies and the fund's distribution policy. Investors seeking income from their investments may find FEMS's dividend yield attractive.