FEM

First Trust Emerging Markets AlphaDEX Fund

This fund offers broad exposure to emerging markets by investing in the Defined Emerging Markets Index. This benchmark provides access to a variety of emerging markets across the globe although it is heavy in its exposure to countries such as China and Taiwan in particular. Emerging markets are a key allocation in many portfolios thanks to the high growth potentials that many of these markets have. Many citizens in these countries are entering the ranks of the middle class for the first time and are beginning to consumer more like their Western counterparts. However, risks remain high in many of these nations as corruption and inflation rates are through the roof suggesting that investors need to be concerned over the short term when investing in these securities. FEM invests in an index that provides less diversification than many others in the field and it also is slightly more expensive. However, the fund does seek to weed out some of the worst names across various countries making it a potentially less volatile play on a choppy corner of the market.