First Trust Active Factor International ETF (AFDM)

The First Trust Active Factor International ETF (AFDM) is an actively managed exchange-traded fund from First Trust Advisors. It invests in equity securities of companies located in developed markets outside the United States.

Rather than tracking a traditional market-capitalization index, the fund's managers use a factor-based approach, evaluating stocks on characteristics such as value, quality, momentum, size and low volatility that have historically been associated with differences in returns. The portfolio is built and adjusted actively based on these factor exposures, with the aim of outperforming a broad international developed-market benchmark over time.

The fund is a companion to First Trust's other active factor ETFs, which apply a similar process to U.S. and emerging-market stocks. Its shares are listed on Nasdaq.