First Trust RiverFront Dynamic Developed International ETF (RFDI)

ETF First Trust RiverFront Dynamic Developed International ETF (RFDI) Summary

Profile:

• Primary Focus: Developed International Equity
• Asset Allocation: Dynamically adjusts to changing market conditions, focusing on sectors with the highest growth potential.
• Investment Strategy: Actively managed, utilizes top-down and bottom-up approaches to identify undervalued stocks with strong growth potential.

Objective:

• Maximize capital appreciation through investment in international developed markets.

Issuer:

• First Trust Portfolios, L.P.
  • Reputation: Established provider of exchange-traded funds with a strong reputation for quality and innovation.
  • Reliability: Strong track record of managing a diverse portfolio of ETFs.
  • Management: Experienced team with expertise in international investing and portfolio management.

Market Share:

• Approximately 0.5% of the Developed International Equity ETF market.

Total Net Assets:

• Approximately $1.49 billion (as of November 7, 2023).

Moat:

• Active Management: Utilizes a unique research-driven approach to identify undervalued stocks with high growth potential.
• Dynamic Allocation: Adapts to changing market conditions, allocating assets to sectors with the highest growth potential.
• Experienced Management: Strong team with expertise in international investing and portfolio management.

Financial Performance:

• Historical Performance: RFDI has outperformed the MSCI EAFE Index over the past 3 and 5 years (as of November 7, 2023).
• Benchmark Comparison: Historically, RFDI has outperformed the MSCI EAFE Index, demonstrating its ability to generate alpha.

Growth Trajectory:

• Positive growth trajectory based on strong historical performance and experienced management.

Liquidity:

• Average Trading Volume: Approximately 100,000 shares per day.
• Bid-Ask Spread: Tight bid-ask spread, indicating good liquidity.

Market Dynamics:

• Global economic growth, interest rate policies, and geopolitical events can impact the performance of international developed markets.

Competitors:

• iShares Core MSCI EAFE ETF (IEFA) - 38.5% market share
• Vanguard FTSE Developed Markets ETF (VEA) - 24.5% market share
• iShares Developed Markets All Cap ex North America ETF (EFAD) - 10.5% market share

Expense Ratio:

• 0.65%

Investment Approach and Strategy:

• Strategy: Actively managed, invests in a diversified portfolio of developed international equities.
• Composition: Primarily invests in stocks of companies located in developed countries outside of the United States.

Key Points:

• Actively managed, seeking to outperform the benchmark index.
• Dynamic asset allocation aims to capitalize on market opportunities.
• Historically outperformed the MSCI EAFE Index.
• Strong management team with expertise in international investing.

Risks:

• Volatility: Higher volatility compared to passively managed ETFs.
• Market Risk: Exposure to risks associated with international developed markets.
• Management Risk: Performance dependent on the management team's ability to identify and invest in undervalued stocks.

Who Should Consider Investing:

• Investors seeking active management and potential for outperformance in developed international markets.
• Investors with a long-term investment horizon and tolerance for higher volatility.

Fundamental Rating Based on AI:

• Rating: 7.5
• Justification: RFDI exhibits strong fundamentals, including a well-established issuer, experienced management, active management approach with a proven track record of outperformance, and competitive expense ratio. However, the actively managed nature of the ETF leads to higher volatility and market risk compared to passively managed alternatives.

Resources and Disclaimers:

• Information gathered from First Trust website, ETF.com, and Morningstar.
• 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.