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Short Interest in First Trust Developed Markets Fund Surges 34.3%

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Short interest in the First Trust Developed Markets ex-US AlphaDEX Fund (NASDAQ: FDT) increased significantly in January, rising by 34.3%. As of January 30, 2023, the total short interest reached 77,900 shares, up from 58,009 shares reported on January 15, 2023. This uptick indicates a growing bearish sentiment among investors regarding the fund, which is designed to track international developed-market stocks.

The current days-to-cover ratio, based on an average daily trading volume of 101,092 shares, is approximately 0.8 days. At present, 0.7% of the fund’s stock is sold short, showing a slight increase in investor caution.

During mid-day trading on Monday, First Trust Developed Markets ex-US AlphaDEX Fund shares rose by $0.75, reaching a trading price of $93.46. Approximately 466,187 shares exchanged hands, surpassing the fund’s average volume of 133,033 shares. The fund has demonstrated solid performance in the past year, with a 12-month low of $51.33 and a 12-month high of $94.35.

The market capitalization of the fund currently stands at $999.09 million, with a price-to-earnings (P/E) ratio of 9.95 and a beta of 0.87, indicating relatively lower volatility compared to the broader market.

Dividend Increase Announced

In addition to the increase in short interest, the fund announced a quarterly dividend of $1.109, which was paid on December 31, 2022. Investors on record as of December 12, 2022 benefited from this payment, which translates to an annualized dividend of $4.44 and a dividend yield of 4.7%. This marks an increase from the previous quarterly dividend of $0.41, reflecting the fund’s commitment to returning value to its shareholders.

About the Fund

The First Trust Developed Markets ex-US AlphaDEX Fund is an exchange-traded fund that seeks to replicate the performance of the NASDAQ AlphaDEX DM Ex-US index. This index includes a selection of international developed-market stocks, chosen based on growth and value factors and equal-weighted across tiers. Launched on April 18, 2011, the fund is managed by First Trust, which focuses on providing innovative investment solutions.

As market dynamics continue to evolve, the increase in short interest reflects investor sentiment and market conditions. The fund remains a notable option for those looking to invest in developed markets outside the United States.

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