First Trust Emerging Markets Small Cap AlphaDEX Fund(NASDAQ:FEMS)

FEMS tries to outperform the competition by using a multi-factor selection methodology to choose the best-performing stocks. It makes sizable country bets, notably excluding South Korea. FEMS scores each potential holding by both value (book value-to-price, cash flow-to-price and return on assets) and growth (3-, 6- and 12-month price appreciation, sales-to-price and 1-year sales growth) characteristics, then ranks stocks by whichever trait scores highest. It takes the top 200 names, broken into equal-weighted quintiles, weighting higher-scoring quintiles more heavily. The fund makes many sector bets, but those bets are liable to change with time, so its exposure bears watching.