Launched on 04/18/2011, the First Trust Japan AlphaDEX ETF (FJP Quick QuoteFJP - 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 long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.

Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.

There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.

Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.

This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.

Fund Sponsor & Index

FJP is managed by First Trust Advisors, and this fund has amassed over $249.55 million, which makes it one of the average sized ETFs in the Asia-Pacific (Developed) ETFs. Before fees and expenses, this particular fund 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

Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.

Operating expenses on an annual basis are 0.80% for FJP, making it one of the most expensive products in the space.

FJP's 12-month trailing dividend yield is 2.53%.

Sector Exposure and Top Holdings

Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.

When you look at individual holdings, Mitsui Kinzoku Company, Ltd. (5706.JP) accounts for about 2.71% of the fund's total assets, followed by Mitsui O.s.k. Lines, Ltd. (9104.JP) and Inpex Corporation (1605.JP).

FJP's top 10 holdings account for about 20.04% of its total assets under management.

Performance and Risk

Year-to-date, the First Trust Japan AlphaDEX ETF has gained about 12.74% so far, and it's up approximately 35.47% over the last 12 months (as of 05/20/2026). FJP has traded between $57.37 $81.97 in this past 52-week period.

FJP has a beta of 0.59 and standard deviation of 20.55% 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 $16.86 billion in assets, iShares MSCI Japan ETF has $21.01 billion. BBJP has an expense ratio of 0.19% and EWJ changes 0.49%.

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.