What this ETF is trying to do

The First Trust Latin America AlphaDEX Fund (FLN) is an exchange-traded fund (ETF) that focuses on companies in Latin America. It is designed to give investors a way to put their money into businesses within that specific region.

What the numbers show

As of October 9, 2026, the share price of FLN was $27.74.

When looking at performance, it is important to distinguish between price return (how much the share price changed) and total return (which includes the share price change plus distributions).

• Year-to-Date (YTD): The price return is 22.32%, while the total return is 25.48%.

• One Year: The price return is 34.08%, and the total return is 39.42%.

• Three Year: The price return is 60.74%, and the total return is 81.45%.

To put the one-year price return into perspective, if you had invested $10,000 based on the estimated price from roughly one year ago ($20.69), the increase in share price alone would have grown that investment to approximately $13,408.

Income and distribution explanation

FLN pays out cash to investors, which is called a distribution. It usually does this quarterly, with four payouts in the last 12 months. The distribution yield is 3.42%.

It is important for beginners to remember that a distribution yield is not the same as a total return. While distributions provide cash income, they do not guarantee that the original money invested (the principal) will stay the same or grow.

NAV erosion explanation

"NAV erosion" happens when the actual value of the assets inside an ETF drops over time. Investors who want steady income care about principal stability because they don't want their initial investment to shrink while they collect payouts.

For FLN, the erosion-risk score is 100, and the erosion label states "No price erosion detected." The erosion severity is listed as "good," and there is no severe erosion-risk flag.

Pros

• Strong positive price returns and total returns over the short and long term.

• A high income rating grade of "A."

• No detected price erosion according to the risk score.

Cons

• No specific holdings data was supplied, so it is unclear which companies the fund owns.

Beginner takeaway

FLN has shown significant growth in both share price and total return over the last three years. It provides a modest cash yield through quarterly distributions. While the fund currently shows no signs of NAV erosion, investors should always remember that high yields alone can be misleading and do not guarantee the safety of the original investment.