Investors will pay up for FSZ as the ETF sports an annual expense ratio of 0.8% compared to 0.51% on EWL. The important consideration is that, on valuation, FSZ’s portfolio is less expensive than EWL, noteworthy given that Swiss equities are pricier relative to peripheral Europe markets. FSZ’s price-to-book ratio is 1.76 compared to three for EWL, according to First Trust data.

Fraszczyk sees growth ahead for FSZ.

“In my opinion, FSZ is a product for more sophisticated investors that want to detach from the passive EWL,” he said. “I believe FSZ may soon hit $50 million (in assets) or $100 million within in a year. If you allocate to Europe or Switzerland, I believe FSZ should at least be your satellite position.” [Single-Country ETFs Gain Popularity]

First Trust Switzerland AlphaDEX Fund