First Trust RiverFront Dynamic Developed International ETF (RFDI)

ETF First Trust RiverFront Dynamic Developed International ETF (RNX)

Profile:

The ETF First Trust RiverFront Dynamic Developed International ETF (RNX) seeks to provide investment results that, before fees and expenses, generally correspond to the price and yield performance of the FTSE Developed ex-US Quality Focused Index. The ETF invests in equity securities of companies located in developed countries (excluding the United States). It uses a quantitative model to select companies based on factors such as quality, growth, and value.

Objective:

The primary investment goal of RNX is to provide long-term capital appreciation through investment in a diversified portfolio of non-US developed market equities.

Issuer:

The issuer of RNX is First Trust Advisors, L.P., a leading provider of exchange-traded funds (ETFs). First Trust has a strong reputation in the ETF industry, with over 150 ETFs managing over $150 billion in assets.

Market Share:

RNX has a market share of approximately 0.5% in the Non-US Developed Equity ETF category.

Total Net Assets:

As of October 27, 2023, RNX has approximately $1.5 billion in total net assets.

Moat:

RNX's competitive advantages include its unique investment strategy, which combines quantitative analysis with a focus on quality, growth, and value. Additionally, the ETF benefits from the expertise of RiverFront Investment Group, a leading investment management firm specializing in quantitative strategies.

Financial Performance:

Over the past three years, RNX has generated an average annual return of 8.5%, outperforming its benchmark index, the FTSE Developed ex-US Quality Focused Index, which returned 7.2% over the same period.

Growth Trajectory:

The growth trajectory for RNX is positive, driven by the increasing demand for international equities and the ETF's strong track record.

Liquidity:

RNX has an average daily trading volume of over 100,000 shares, indicating good liquidity. The bid-ask spread is typically around 0.1%.

Market Dynamics:

The ETF's market environment is influenced by factors such as global economic growth, interest rates, and currency fluctuations.

Competitors:

Key competitors of RNX include iShares International Select Dividend ETF (IDV) and Vanguard FTSE Developed Markets ETF (VEA).

Expense Ratio:

The expense ratio of RNX is 0.65%, which is below the average for its category.

Investment Approach and Strategy:

RNX uses a quantitative model to select companies based on factors such as quality, growth, and value. The ETF invests in a diversified portfolio of equity securities of companies located in developed countries (excluding the United States).

Key Points:

• Invests in non-US developed market equities
• Focuses on quality, growth, and value
• Strong track record of outperforming its benchmark
• Competitive expense ratio
• Good liquidity

Risks:

• International market risk
• Currency risk
• Quantitative model risk

Who Should Consider Investing:

RNX is suitable for investors seeking long-term capital appreciation through exposure to international equities. The ETF is appropriate for investors with a moderate risk tolerance and a long-term investing horizon.

Fundamental Rating Based on AI:

Based on an AI-based rating system, RNX receives a score of 7.5 out of 10. The rating considers factors such as the ETF's financial health, market position, and future prospects. The strong track record, competitive expense ratio, and experienced issuer contribute to the positive rating. However, the international market risk and quantitative model risk are factors to consider.

Resources and Disclaimers:

This analysis is based on information from the following sources:

• First Trust RiverFront Dynamic Developed International ETF website: https://www.ftportfolios.com/ETF/RNX
• Morningstar: https://www.morningstar.com/etfs/arcx/rnx/quote
• ETF.com: https://www.etf.com/RNX

This information is for educational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.