FBZ - FBZ: This Enhanced Product Is Flawed, More Sensible To Pursue EWZ
2025-05-13 07:15:43 ET
Summary
- The First Trust Brazil AlphaDEX Fund, a little-known ETF, has outperformed global stocks and emerging markets quite handsomely this year.
- FBZ employs an enhanced methodology which assigns priority to certain growth and value screeners.
- On further scrutiny, we find quite a few flaws in this product, and feel that the largest Brazilian ETF- EWZ has better qualities.
- FBZ's valuation backdrop and technical position don't support a buy either.
Solid Alpha In A Challenging Year
It has been well-documented that global equities- by and large- haven’t had the most conducive conditions to flourish in 2025. Well, a little-known ETF – The First Trust Brazil AlphaDEX Fund ( FBZ ), which covers around 50 stocks from Brazil, appears to have bucked the trend, delivering healthy returns of over 22% on a YTD basis. For context, this is around 16x better than what global stocks have delivered, and even 1.4x better than what emerging markets have delivered....
FBZ: This Enhanced Product Is Flawed, More Sensible To Pursue EWZ