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Is First Trust Japan AlphaDEX ETF (FJP) a Strong ETF Right Now?
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Launched on 04/18/2011, the First Trust Japan AlphaDEX ETF (FJP - Free Report) is a smart beta exchange traded fund offering broad exposure to the Asia-Pacific (Developed) ETFs category of the market.
What Are Smart Beta ETFs?
The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
Because the fund has amassed over $202.58 million, this makes it one of the average sized ETFs in the Asia-Pacific (Developed) ETFs. FJP is managed by First Trust Advisors. This particular fund, before fees and expenses, seeks to match the performance of the NASDAQ AlphaDEX Japan Index.
The NASDAQ AlphaDEX Japan Index is an enhanced index which employs the AlphaDEX stock selection methodology to select stocks from the NASDAQ Japan Index.
Cost & Other Expenses
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for FJP are 0.80%, which makes it one of the most expensive products in the space.
It's 12-month trailing dividend yield comes in at 2.16%.
Sector Exposure and Top Holdings
ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
Taking into account individual holdings, Subaru Corporation (7270.JP) accounts for about 1.83% of the fund's total assets, followed by Sugi Holdings Co., Ltd. (7649.JP) and Central Japan Railway Company (9022.JP).
Its top 10 holdings account for approximately 17.54% of FJP's total assets under management.
Performance and Risk
The ETF has gained about 29.42% and is up roughly 29.15% so far this year and in the past one year (as of 09/10/2025), respectively. FJP has traded between $47.79 and $67.08 during this last 52-week period.
FJP has a beta of 0.58 and standard deviation of 20.36% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 102 holdings, it effectively diversifies company-specific risk .
Alternatives
First Trust Japan AlphaDEX ETF is a reasonable option for investors seeking to outperform the Asia-Pacific (Developed) ETFs segment of the market. However, there are other ETFs in the space which investors could consider.
JPMorgan BetaBuilders Japan ETF (BBJP) tracks MORNINGSTAR JAPAN TRGT MRKT EXPOSURE ID and the iShares MSCI Japan ETF (EWJ) tracks MSCI Japan Index. JPMorgan BetaBuilders Japan ETF has $14.11 billion in assets, iShares MSCI Japan ETF has $15.51 billion. BBJP has an expense ratio of 0.19% and EWJ changes 0.50%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Asia-Pacific (Developed) ETFs
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Is First Trust Japan AlphaDEX ETF (FJP) a Strong ETF Right Now?
Launched on 04/18/2011, the First Trust Japan AlphaDEX ETF (FJP - Free Report) is a smart beta exchange traded fund offering broad exposure to the Asia-Pacific (Developed) ETFs category of the market.
What Are Smart Beta ETFs?
The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
Because the fund has amassed over $202.58 million, this makes it one of the average sized ETFs in the Asia-Pacific (Developed) ETFs. FJP is managed by First Trust Advisors. This particular fund, before fees and expenses, seeks to match the performance of the NASDAQ AlphaDEX Japan Index.
The NASDAQ AlphaDEX Japan Index is an enhanced index which employs the AlphaDEX stock selection methodology to select stocks from the NASDAQ Japan Index.
Cost & Other Expenses
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for FJP are 0.80%, which makes it one of the most expensive products in the space.
It's 12-month trailing dividend yield comes in at 2.16%.
Sector Exposure and Top Holdings
ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
Taking into account individual holdings, Subaru Corporation (7270.JP) accounts for about 1.83% of the fund's total assets, followed by Sugi Holdings Co., Ltd. (7649.JP) and Central Japan Railway Company (9022.JP).
Its top 10 holdings account for approximately 17.54% of FJP's total assets under management.
Performance and Risk
The ETF has gained about 29.42% and is up roughly 29.15% so far this year and in the past one year (as of 09/10/2025), respectively. FJP has traded between $47.79 and $67.08 during this last 52-week period.
FJP has a beta of 0.58 and standard deviation of 20.36% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 102 holdings, it effectively diversifies company-specific risk .
Alternatives
First Trust Japan AlphaDEX ETF is a reasonable option for investors seeking to outperform the Asia-Pacific (Developed) ETFs segment of the market. However, there are other ETFs in the space which investors could consider.
JPMorgan BetaBuilders Japan ETF (BBJP) tracks MORNINGSTAR JAPAN TRGT MRKT EXPOSURE ID and the iShares MSCI Japan ETF (EWJ) tracks MSCI Japan Index. JPMorgan BetaBuilders Japan ETF has $14.11 billion in assets, iShares MSCI Japan ETF has $15.51 billion. BBJP has an expense ratio of 0.19% and EWJ changes 0.50%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Asia-Pacific (Developed) ETFs
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.