What this ETF is trying to do

The First Trust Switzerland AlphaDex Fund (FSZ) is an ETF designed to provide exposure to companies in Switzerland. It invests in a diversified group of Swiss businesses across different industries. Based on the top holdings, the fund includes companies like Sulzer AG (5.09%), Swiss Re AG (4.7%), and VAT Group AG (4.23%).

What the numbers show

The current price of FSZ is $78.54. To understand how the fund has performed, we look at two different types of returns: price return (the change in share price) and total return (which includes both price changes and cash distributions).

• Year-to-Date (YTD): The price return is -1.94%, while the total return is -0.28%.

• One Year: The price return is 2.03%, and the total return is 4.13%.

• Three Year: The price return is 38.00%, and the total return is 45.52%.

• Five Year: The total return is 33.21%.

An estimated price from roughly one year ago was $76.97.

Income and distribution explanation

FSZ provides cash distributions to its investors. The distribution yield is 2.08%. Over the last 12 months, the fund had 3 payouts. The distribution frequency is described as irregular or less frequent.

It is important for new investors 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 investment value will stay the same or grow.

NAV erosion explanation

"NAV erosion" happens when the net asset value of a fund declines over time. The supplied data is sufficient to evaluate price erosion, but it does not include enough historical NAV-per-share data to confirm or rule out NAV erosion.

However, the fund has an erosion-risk score of 94, which is labeled as "Stable / sideways" with "good" severity. Additionally, the severe erosion-risk flag is false, meaning the fund's price trend did not trigger a high-risk warning.

Pros

• Long-term Growth: The three-year total return of 45.52% shows significant growth over a longer period.

• Stability: The erosion-risk score suggests the price has been relatively stable.

• Diversification: The fund holds 41 different assets, spreading risk across many Swiss companies.

Cons

• Recent Price Dip: The year-to-date price return is negative (-1.94%).

• Irregular Income: Because distributions are irregular, investors cannot rely on a steady, predictable payment schedule.

Beginner takeaway

FSZ is a way to invest in the Swiss economy. While it has seen strong growth over the last three years, its recent short-term price movement has been slightly down. It offers a modest distribution yield, but these payments happen infrequently.