At a glance
FDTS charges 0.8% a year, above the 0.39% average of the 6 funds most like it (the most expensive of 7). It has $13.0M in assets, the 7th largest of that group; it paid 2.66% of its price in distributions over the past 12 months, quarterly. Over the past year it returned +23.4% with distributions reinvested (S&P 500: +11.5%), the best of those 7 funds; over three years it returned +27.3% a year. At its worst it fell 38.7% in the 2020 crash (S&P 500: 33.7%) and 29.4% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 5 months and 20 months after the lows. Its ten largest positions make up 9.2% of the fund, out of 406 in all.
The short version
First Trust Developed Markets ex-US Small Cap AlphaDEX Fund (FDTS) tracks the Nasdaq AlphaDEX Developed Markets Ex-US Small Cap Index. The index scores small companies in developed markets outside the US on growth and value, picks the top 397 and gives higher scorers more weight. Its annual fee of 0.80% is about twice the 0.39% average of similar funds. As of June 30, 2026, Japan made up 39.9% of the portfolio and South Korea 23.2%.
Price history
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FDTS +23.4% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| FDTS official prospectus, to Dec 31, 2025 | — | +49.71% | — | +10.13% | +8.72% | +7.63% |
| FDTS price data to Oct 27, 2026 | +19.2% | +23.4% | +27.3% | +11.1% | +10.3% | +8.4% |
- Over the year to Oct 27, 2026, FDTS returned +23.4%, 1st of 7 among similar funds.
- Its 5-year annualized return was +11.1% and its 10-year +10.3%.
- In the 2020 COVID crash it fell 38.7% and regained its old high 4.8 months after the low.
- Its worst full calendar year was 2018 (-23.7%); its best was 2025 (+51.1%).
- The deepest fall in its price history was 51.3% (Jan 29, 2018 to Mar 23, 2020), recovered by Feb 12, 2021.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +19.2% | — |
| 2025 | +51.1% | +49.71% |
| 2024 | +2.4% | +3.14% |
| 2023 | +10.9% | +11.13% |
| 2022 | -15.3% | -15.00% |
| 2021 | +11.8% | +11.09% |
| 2020 | +12.8% | +12.18% |
| 2019 | +18.7% | +19.13% |
| 2018 | -23.7% | -24.03% |
| 2017 | +36.0% | +36.23% |
| 2016 | +2.5% | +2.96% |
| 2015 | +5.0% | — |
| 2014 | -11.3% | — |
| 2013 | +25.1% | — |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 38.7% over that stretch · deepest drop along the way 38.7%, back to its old high 4.8 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 27.8% over that stretch · deepest drop along the way 29.4%, back to its old high 19.9 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $1.1900 | |
| 2025 | $1.7100 | +8.9% |
| 2024 | $1.5700 | +34.2% |
| 2023 | $1.1700 | -15.8% |
| 2022 | $1.3900 | 0.0% |
| 2021 | $1.3900 | +61.6% |
| 2020 | $0.8600 | -2.3% |
| 2019 | $0.8800 | +33.3% |
| 2018 | $0.6600 | -28.3% |
| 2017 | $0.9200 | +55.9% |
| 2016 | $0.5900 | +1.7% |
| 2015 | $0.5800 | -30.1% |
| 2014 | $0.8300 | +25.8% |
| 2013 | $0.6600 |
What's inside
As of Jun 30, 2026, the fund held 406 securities; the ten largest made up 9.17% of assets.
| Holding | Weight | |
|---|---|---|
| DAIWA CAPITAL MARKETS AMERICA INC. RA | 2.58% | |
| SHINSEGAE COMPANY LTD | 0.99% | |
| JEJU SEMICONDUCTOR CORP | 0.93% | |
| GIGAVIS CO LTD | 0.83% | |
| PSK INC | 0.77% | |
| TSE CO LTD | 0.73% | |
| DAEDUCK ELECTRONICS CO LTD | 0.63% | |
| TES CO LTD | 0.59% | |
| TSUGAMI CORP | 0.57% | |
| FUJI CORP | 0.55% | |
| KOREA CIRCUIT COMPANY LTD | 0.54% | |
| SHIKOKU BANK LTD (THE) | 0.52% | |
| TRE HOLDINGS CORP | 0.52% | |
| EASYJET PLC | 0.51% | |
| EMBRACER GROUP AB | 0.51% |
By country
Japan 39.89%South Korea 23.21%United Kingdom 6.16%Canada 5.69%Bermuda 3.41%By asset type
Stocks 99.66%RA 2.58%Preferred stock 0.14%What changed recently
- Over the three months to Jun 30, 2026, investors added a net $0.00 (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +9.17%, -0.57%, -5.52%.
How it works
FDTS tracks the Nasdaq AlphaDEX Developed Markets Ex-US Small Cap Index. Nasdaq starts with its Developed Markets Ex-US Index, drops duplicate share classes and thinly traded stocks, and keeps companies in its small-cap range: roughly $467 million to $4.45 billion in market value as of March 31, 2026.
Remaining stocks are ranked on growth and value factors, each scored on its better rank. This AlphaDEX method aims to pick stocks that may earn "alpha," meaning returns that beat traditional indexes after accounting for risk. The top 397 make the index. They are split into five score groups, and higher-scoring groups get bigger weights, so weights follow scores, not company size. Industry and country weights are capped at 15% above the base index's levels; stocks that breach a cap move down a group or drop out.
The index is rebuilt and rebalanced twice a year, and the fund follows soon after. The prospectus lists a 119% turnover rate, meaning a year's trading exceeded the portfolio's size; those costs come on top of the expense ratio. The fund settles some or all share creations and redemptions with large traders in cash, which the prospectus says can make it less tax-efficient than ETFs that swap stocks. Currency swings matter too: a stronger dollar can lower returns.
What it really costs
- FDTS charges 0.8% a year, versus an average of 0.39% for the similar funds below (7th of 7, cheapest first).
In a retirement portfolio
Its tilt toward small Japanese and South Korean companies, a 51.3% past decline and a 0.80% fee point to a small, higher-risk add-on rather than a core position.
FDTS could add small companies in Japan, South Korea and other developed markets that a US-only stock fund wouldn't hold. Its history includes deep drops. It launched in 2012, after the 2008 crisis. It fell 38.7% from February to March 2020, then regained its prior high by August 2020. In 2022 it dropped 29.4% and didn't recover until May 2024. Its worst calendar year was 2018, down about 24%. Its deepest decline, 51.3% from January 2018 to March 2020, wasn't erased until February 2021. Retirees who need cash in such a slump would be raising it at low prices.
It yielded 2.66% over the year through October 27, 2026, paid quarterly. Its 0.80% expense ratio is about double the 0.39% peer average. Past results don't predict future ones, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors seeking small companies outside the US, tilted toward Japan (about 40%) and South Korea (about 23%) as of June 30, 2026.
- Those who prefer stocks picked and weighted by Nasdaq's AlphaDEX growth and value scores, not company size, and accept 119% turnover.
- Long-term holders able to sit through drops like the 51.3% fall from January 2018 to March 2020, holding it as a small slice.
Look elsewhere if
- Cost-focused investors: the 0.80% expense ratio compares with 0.11% for Schwab International Small-Cap Equity ETF (SCHC) and a 0.39% peer average.
- Anyone wary of tiny funds: net assets were about $13 million as of June 30, 2026, the smallest of seven similar funds compared.
- Tax-sensitive investors in taxable accounts: the prospectus says cash creations and redemptions can make it less tax-efficient than ETFs that exchange stocks instead.
Close alternatives
Matched by closest holdings overlap from the latest N-PORT reports (no similar fund shares 20% or more of its holdings).
| Fund | Overlap | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| FDTS this fund | — | 0.8% | $13.0M | +23.4% | +27.3% |
| AVDV Avantis International Small Cap Value ETF | 16% | 0.36% | $20.50B | +22.1% | +27.1% |
| GWX SPDR S&P International Small Cap ETF | 14% | 0.4% | $868.6M | +12.8% | +21.2% |
| DLS WisdomTree International SmallCap Dividend … | 11% | 0.58% | $1.03B | +11.7% | +21.4% |
| SCHC Schwab International Small-Cap Equity ETF | 8% | 0.11% | $5.77B | +9.3% | +21.4% |
| FNDC Schwab Fundamental International Small Equi… | 8% | 0.39% | $3.18B | +13.9% | +21.7% |
| PDN Invesco RAFI Developed Markets ex-U.S. Smal… | 7% | 0.49% | $352.6M | +12.8% | +21.7% |
Questions investors ask
What are FDTS top holdings?
As of June 30, 2026, its largest stock holdings were South Korean: Shinsegae (0.99% of assets), Jeju Semiconductor (0.93%), Gigavis (0.83%), PSK (0.77%) and TSE (0.73%). Daeduck Electronics, TES and Japan's Tsugami and Fuji Corp. came next. With 406 holdings and no stock at 1% or more, the country mix matters more than any single company: Japan made up about 40% of assets and South Korea about 23%.
Is FDTS expense ratio high?
Yes, compared with similar funds. FDTS charges 0.80% a year, according to its prospectus filed April 30, 2026. That is the highest in a group of seven similar funds and about double the others' 0.39% average. Schwab International Small-Cap Equity ETF (SCHC) charges 0.11%, and Avantis International Small Cap Value ETF (AVDV) charges 0.36%. The full 0.80% is the management fee. A 119% turnover rate also adds trading costs that the expense ratio doesn't include.
How has FDTS performed over the long term?
FDTS returned an average of 8.72% a year over the 10 years through December 31, 2025, and 10.13% a year over five years, according to its prospectus. Since its 2012 launch, it averaged 7.63% a year. The path was bumpy: it gained 49.71% in 2025 and 36.23% in 2017 but lost 24.03% in 2018 and 15% in 2022. Its return for 2026 through October 27, 2026, was 19.2%. Past returns don't predict future results.
Does FDTS pay dividends?
Yes. FDTS pays dividends quarterly. Over the year through October 27, 2026, it paid $1.82 per share, a trailing yield of 2.66%, meaning a year's payouts divided by the share price. Payments can vary from quarter to quarter, because the index is rebuilt twice a year and dividends from foreign companies rise and fall with their profits and with exchange rates.
What's the difference between FDTS and AVDV?
The biggest differences are cost and size. Avantis International Small Cap Value ETF (AVDV) charges 0.36% a year versus 0.80% for FDTS, and held about $20.5 billion as of August 31, 2026, versus about $13 million for FDTS as of June 30, 2026. Both own small companies outside the US, but they share only about 16% of holdings, the highest overlap among similar funds. FDTS returned 23.4% over one year through October 27, 2026; AVDV returned 21.2% through October 30, 2026.