First Trust Horizon Managed Volatility Small/Mid ETF (HSMV)

Overview

The First Trust Horizon Managed Volatility Small/Mid ETF (HVMV) seeks investment results that correspond generally to the price and yield (before the Fundu2019s fees and expenses) of an equity index called the Horizon Managed Volatility Developed International Index. It provides exposure to small- and mid-capitalization developed market equities while aiming to manage volatility.

Reputation and Reliability

First Trust is a well-established ETF provider with a reputation for offering innovative and diverse investment products.

Management Expertise

First Trust has a dedicated team of investment professionals with experience in managing various ETF strategies, including volatility-managed portfolios.

Goal

To seek investment results that correspond generally to the price and yield of the Horizon Managed Volatility Developed International Index.

Investment Approach and Strategy

Strategy: The ETF employs a managed volatility strategy, aiming to provide downside protection during periods of market turbulence.

Composition The ETF invests primarily in equity securities of small- and mid-capitalization companies located in developed international markets.

Market Share: Data unavailable to provide the exact market share of HVMV in its specific segment.

Total Net Assets (AUM): 58273280

Key Competitors

• Invesco S&P SmallCap Momentum ETF (XSMO)
• iShares Core S&P Small-Cap ETF (IJR)
• Vanguard Small-Cap ETF (VB)

Competitive Landscape

The competitive landscape for small/mid-cap ETFs is crowded, with numerous providers offering exposure to similar market segments. HVMV differentiates itself through its managed volatility approach. A disadvantage of HVMV compared to these ETFs is that the management strategy may lead to underperformance in strong bull markets.

Historical Performance: Historical financial performance needs to be obtained from financial data providers.

Benchmark Comparison: Benchmark comparison needs to be obtained from financial data providers.

Expense Ratio: 0.40

Average Trading Volume

HVMV's average trading volume suggests moderate liquidity, typically sufficient for most investors but may experience higher bid-ask spreads during periods of market stress or less active trading times.

Bid-Ask Spread

The bid-ask spread is generally moderate, indicating reasonable trading costs, but can widen depending on market conditions and trading volume.

Market Environment Factors

Economic indicators in developed international markets, global market sentiment, and geopolitical events can all impact HVMV's performance. Small and mid-cap companies tend to be more sensitive to economic cycles.

Growth Trajectory

Growth trends depend on the performance of small- and mid-cap companies in developed international markets. The managed volatility strategy may lead to adjustments in holdings based on market conditions.

Competitive Edge

HVMV's primary competitive advantage is its managed volatility strategy, which aims to reduce downside risk during market downturns. This approach may appeal to investors seeking a smoother investment experience. The managed volatility component is appealing to investors that are concerned about the volatility associated with small and mid cap companies. This approach sets it apart from traditional market capitalization weighted small/mid-cap ETFs.

Volatility

Volatility needs to be calculated from historical price data.

Market Risk

The primary market risk associated with HVMV is the potential for losses due to declines in the value of small- and mid-cap companies in developed international markets. Fluctuations in currency exchange rates can also impact returns.

Ideal Investor Profile

HVMV is suitable for investors seeking exposure to small- and mid-cap equities in developed international markets with a focus on managing volatility.

Market Risk

HVMV is best suited for long-term investors who are seeking downside protection in their portfolios and are comfortable with the risks associated with international investing.

The First Trust Horizon Managed Volatility Small/Mid ETF (HVMV) offers exposure to small- and mid-cap companies in developed international markets, employing a managed volatility strategy to mitigate downside risk. While this approach may limit gains during strong bull markets, it provides a potentially smoother investment experience. The ETF is best suited for long-term investors seeking international diversification with a focus on managing volatility. However, HVMV faces competition from more established small-cap ETFs and the managed volatility approach differentiates it in the competitive landscape.

Data Sources:

• First Trust Website
• ETF.com
• Morningstar

Disclaimers:

The information provided is for informational purposes only and should not be considered investment advice. Investment decisions should be made based on individual circumstances and after consulting with a qualified financial advisor. Market share and performance data are estimates and may vary. Volatility is subject to change.