First Trust Dorsey Wright Momentum & Value ETF (DVLU)

Overview

The First Trust Dorsey Wright Momentum & Value ETF (DVLU) seeks to provide investment results that correspond generally to the price and yield of an index called the Dorsey Wright Momentum Plus Value Index. The fund focuses on U.S. equity securities, employing a momentum and value investment strategy. It allocates its assets based on a proprietary index that identifies companies with strong relative strength and attractive valuation metrics.

Reputation and Reliability

First Trust is a well-established ETF issuer known for its innovation and diverse product offerings.

Management Expertise

First Trust has a dedicated management team with expertise in ETF creation, portfolio management, and indexing strategies.

Goal

The fund's goal is to replicate the performance of the Dorsey Wright Momentum Plus Value Index.

Investment Approach and Strategy

Strategy: The ETF tracks the Dorsey Wright Momentum Plus Value Index.

Composition The ETF primarily holds U.S. equity securities selected based on momentum and value factors.

Market Share: Data not readily available for exact market share

Total Net Assets (AUM): 64400000

Key Competitors

• IWF
• MTUM
• QUAL

Competitive Landscape

The ETF industry is highly competitive, with numerous ETFs offering similar momentum and value strategies. DVLU's competitive advantage lies in its proprietary Dorsey Wright methodology. However, it faces competition from larger, more liquid ETFs like IWF, MTUM and QUAL, which may have lower expense ratios. DVLU distinguishes itself by employing a combination of momentum and value screens within its index, providing a more specific and potentially targeted exposure.

Historical Performance: Historical performance data should be obtained from official fund factsheets and reputable financial data providers.

Benchmark Comparison: Benchmark comparison data should be obtained from official fund factsheets and reputable financial data providers.

Expense Ratio: 0.29

Average Trading Volume

The average trading volume of DVLU indicates moderate liquidity.

Bid-Ask Spread

The bid-ask spread of DVLU is typically reasonable, reflecting the fund's liquidity.

Market Environment Factors

Economic growth, interest rate changes, and investor sentiment can all affect DVLU's performance, especially as the ETF invests in companies with strong momentum and value characteristics. Changes in sector leadership can also influence the fund.

Growth Trajectory

DVLU's growth trajectory depends on the continued investor interest in momentum and value strategies, which tends to vary with market cycles. The fund's growth is also tied to any changes in the underlying index's composition and screening criteria.

Competitive Edge

DVLU's competitive edge is its Dorsey Wright methodology, which is designed to identify securities demonstrating strong relative strength and attractive valuations. The momentum plus value screen aims to capture companies with both positive price trends and solid fundamentals. The weighting methodology aims to maximize exposure to stocks exhibiting both qualities. This combination of factors may lead to outperformance during specific market cycles, however this is never guaranteed.

Volatility

Volatility data should be obtained from official fund factsheets and reputable financial data providers.

Market Risk

DVLU is subject to market risk, as its value can fluctuate based on overall market conditions and investor sentiment. Specifically, there is the risk of momentum crashes and the potential for value traps when certain companies are selected.

Ideal Investor Profile

The ideal investor for DVLU is someone seeking exposure to U.S. equities with a focus on momentum and value factors. It's suitable for investors who believe in the potential for outperformance through a combined factor approach.

Market Risk

DVLU is suitable for long-term investors looking for a targeted strategy but it can also be used by active investors when markets favor the style.

The First Trust Dorsey Wright Momentum & Value ETF (DVLU) aims to track the Dorsey Wright Momentum Plus Value Index, providing exposure to U.S. equities selected based on momentum and value factors. Its competitive edge lies in its Dorsey Wright methodology, combining both relative strength and value metrics. While subject to market risk and dependent on specific market conditions favoring its strategy, DVLU caters to investors seeking a differentiated factor-based investment approach. Its expense ratio is 0.29%.

Data Sources:

• First Trust Website
• ETF.com
• Morningstar

Disclaimers:

The data provided is for informational purposes only and should not be considered investment advice. Investment decisions should be based on individual circumstances and consultation with a qualified financial advisor.