First Trust RiverFront Dynamic Developed International ETF (RFDI)

Overview

The First Trust RiverFront Dynamic Developed International ETF (VDRV) seeks to provide capital appreciation by investing primarily in the equity securities of companies located in developed countries outside of the United States. It employs a dynamic asset allocation strategy managed by RiverFront Investment Group, LLC. The strategy aims to adapt to evolving market conditions by overweighting sectors and geographies that exhibit favorable economic and market trends, while seeking to reduce risk during periods of market stress.

Reputation and Reliability

First Trust is a well-established provider of exchange-traded funds with a broad range of offerings. RiverFront Investment Group, LLC, the sub-advisor, is known for its dynamic asset allocation strategies, often incorporating active management principles.

Management Expertise

RiverFront Investment Group, LLC, the sub-advisor, has a team of experienced investment professionals dedicated to active portfolio management and risk mitigation. Their approach emphasizes a disciplined, research-driven process.

Goal

The primary investment goal of VDRV is to achieve long-term capital appreciation.

Investment Approach and Strategy

Strategy: VDRV does not track a specific index. Instead, it utilizes a dynamic asset allocation strategy that seeks to opportunistically invest in developed international markets based on RiverFront's proprietary economic and market analysis.

Composition The ETF holds a diversified portfolio of equity securities of companies in developed countries outside of the United States. The specific holdings and sector allocations are subject to change based on the sub-advisor's market outlook.

Market Share: Information on specific market share for VDRV within the developed international ETF sector is not readily available in a precise percentage format, but it operates within a highly competitive segment.

Total Net Assets (AUM): 378779194

Key Competitors

• iShares Core MSCI EAFE ETF (IEFA)
• Vanguard FTSE Developed Markets ETF (VEA)
• iShares MSCI EAFE ETF (EFA)

Competitive Landscape

The developed international ETF market is highly competitive, with several large-cap, low-cost index-tracking ETFs dominating. VDRV differentiates itself through its active, dynamic asset allocation strategy, which aims to outperform passive benchmarks by actively adjusting portfolio holdings based on market conditions. However, this active approach also introduces higher potential for tracking error and may come with a higher expense ratio compared to passive alternatives. Its success hinges on the sub-advisor's ability to consistently make astute market calls.

Historical Performance: VDRV's historical performance varies across different time periods. As a dynamically managed fund, its performance is influenced by the sub-advisor's tactical decisions. Investors should review the latest prospectus and fund reports for up-to-date performance data.

Benchmark Comparison: VDRV does not track a specific benchmark index directly. Its performance is typically assessed against broader developed international equity market indices, and its objective is to outperform such benchmarks over the long term through its active management strategy.

Expense Ratio: 0.7

Average Trading Volume

The ETF exhibits moderate average trading volume, indicating reasonable liquidity for most retail investors.

Bid-Ask Spread

The bid-ask spread for VDRV is typically within a competitive range, contributing to efficient trading costs.

Market Environment Factors

VDRV is influenced by global economic growth, geopolitical events, currency fluctuations, and central bank policies in developed countries. Sector-specific trends within international markets, such as technological advancements or commodity price movements, also play a significant role.

Growth Trajectory

VDRV's growth trajectory is tied to the sub-advisor's ability to adapt its dynamic strategy effectively to changing market conditions and identify opportunities within developed international markets. Any changes to strategy and holdings are a direct reflection of RiverFront's ongoing market analysis.

Competitive Edge

VDRV's primary competitive advantage lies in its dynamic asset allocation strategy, managed by RiverFront Investment Group. This approach seeks to provide downside protection during volatile periods and capitalize on favorable market trends, differentiating it from static index-tracking ETFs. The fund's focus on developed international markets also offers diversification benefits to a U.S.-centric portfolio.

Volatility

The historical volatility of VDRV is influenced by the underlying developed international markets and the effectiveness of its dynamic management strategy. It is expected to exhibit volatility similar to or potentially higher than broad international equity indices due to its active approach.

Market Risk

Specific market risks for VDRV include currency risk (fluctuations in exchange rates), political and economic instability in developed countries, and sector-specific downturns within its portfolio holdings.

Ideal Investor Profile

The ideal investor for VDRV is one seeking capital appreciation from developed international equities, who understands and is comfortable with an actively managed, dynamic asset allocation strategy, and who has a moderate to high risk tolerance.

Market Risk

VDRV is best suited for long-term investors who are looking for diversification beyond U.S. markets and believe in the potential for active management to add value over passive investing. It is not typically recommended for short-term traders or those seeking to replicate a specific index.

The First Trust RiverFront Dynamic Developed International ETF (VDRV) aims for long-term capital appreciation by actively managing investments in developed international equities. Its dynamic asset allocation strategy seeks to adapt to market conditions, offering a potential advantage over passive funds. While operating in a competitive landscape, VDRV appeals to investors who trust active management and seek international diversification with a moderate to high risk tolerance.

Data Sources:

• First Trust Investments Website
• Financial Data Provider APIs (e.g., Bloomberg, Refinitiv, Yahoo Finance - specific sources not provided for this general output)
• SEC Filings (e.g., Prospectus)

Disclaimers:

This JSON output is for informational purposes only and does not constitute financial advice. ETF performance data and market share figures are subject to change. Investors should conduct their own due diligence and consult with a qualified financial advisor before making any investment decisions. Past performance is not indicative of future results.