First Trust Dorsey Wright International Focus 5 ETF (IFV)

Overview

The First Trust Dorsey Wright International Focus 5 ETF (IFV) is designed to provide exposure to the top five ranked countries within the Dorsey Wright International Explore Index. It utilizes a relative strength strategy to identify countries with the strongest price momentum, aiming to outperform traditional market-cap weighted international equity indices.

Reputation and Reliability

First Trust is a well-established ETF provider with a solid reputation for offering innovative investment strategies.

Management Expertise

First Trust Advisors L.P. has extensive experience in managing ETFs, employing a team of experienced investment professionals and strategists.

Goal

To seek investment results that correspond generally to the price and yield, before fees and expenses, of an index called the Dorsey Wright International Focus Five Index.

Investment Approach and Strategy

Strategy: The ETF tracks an index that uses a relative strength methodology to select the top five countries within the Dorsey Wright International Explore Index based on price momentum.

Composition The ETF holds investments in the equity securities of the top five ranked countries. The fund's investment choices are based on momentum and relative strength.

Market Share: IFV's market share in its sector is relatively small compared to broad-based international ETFs.

Total Net Assets (AUM): 54190000

Key Competitors

• VEA
• IXUS
• ACWX

Competitive Landscape

The international equity ETF market is highly competitive, with numerous broad-based and specialized funds. IFV differentiates itself through its momentum-driven, country-specific focus, potentially leading to higher returns but also higher volatility. Competitors offer broader diversification but may lack the focused upside potential of IFV's strategy. IFV has high expense ratio compare to its key competitors.

Historical Performance: Past performance is not indicative of future results. Investors should review IFV's performance over various timeframes (e.g., 1-year, 3-year, 5-year, 10-year) against relevant benchmarks.

Benchmark Comparison: IFV's performance should be compared against a broad international equity index or a momentum-focused international strategy to assess its effectiveness.

Expense Ratio: 0.58

Average Trading Volume

The ETF's average trading volume is relatively low, indicating moderate liquidity.

Bid-Ask Spread

The bid-ask spread may vary depending on market conditions but should be monitored to assess trading costs.

Market Environment Factors

Economic conditions in the selected countries, currency fluctuations, and global market sentiment influence IFV's performance.

Growth Trajectory

The ETF's growth depends on its ability to consistently identify and overweight countries with strong price momentum, subject to changing market dynamics and strategy.

Competitive Edge

IFV's competitive edge lies in its unique country-selection methodology based on relative strength, potentially capturing superior returns in specific international markets. Its actively managed approach aims to outperform traditional market-cap weighted indexes. This focused strategy differentiates it from broad-based international ETFs. However, this strategy is reliant on accurate momentum identification and carries the risk of underperforming in certain market conditions.

Volatility

The ETF's volatility may be higher than broad-based international equity ETFs due to its concentrated country exposure and momentum-based strategy.

Market Risk

The ETF is subject to market risk associated with international equities, including political, economic, and currency risks specific to the selected countries.

Ideal Investor Profile

IFV is suitable for investors seeking targeted exposure to international markets through a momentum-driven strategy and willing to accept potentially higher volatility.

Market Risk

IFV may be suitable for active traders or investors with a higher risk tolerance seeking potential outperformance through a focused international strategy.

The First Trust Dorsey Wright International Focus 5 ETF (IFV) provides a unique approach to international investing by focusing on the top five countries with the strongest price momentum. This strategy offers the potential for outperformance compared to traditional market-cap weighted indexes but also comes with higher volatility and concentration risk. Its performance is highly dependent on the accuracy of the momentum-based selection process and the economic conditions of the selected countries. Investors should carefully consider their risk tolerance and investment objectives before investing in IFV.

Data Sources:

• First Trust Website
• ETF.com
• Morningstar

Disclaimers:

The data provided is for informational purposes only and should not be considered investment advice. Past performance is not indicative of future results. Investors should consult with a qualified financial advisor before making any investment decisions.