First Trust Dorsey Wright DALI 1 ETF (DALI)

Overview

The First Trust Dorsey Wright DALI 1 ETF (DALI) seeks long-term capital appreciation by dynamically allocating assets based on Dorsey Wright's relative strength methodology. It uses a quantitative approach to identify and invest in sectors and asset classes with the strongest relative performance.

Reputation and Reliability

First Trust is a well-established ETF provider with a strong reputation for innovation and offering a wide range of investment strategies.

Management Expertise

First Trust has a dedicated team of portfolio managers and analysts with expertise in quantitative investment strategies and ETF management.

Goal

To seek long-term capital appreciation.

Investment Approach and Strategy

Strategy: DALI employs a dynamic asset allocation strategy based on the Dorsey Wright relative strength methodology, which identifies asset classes and sectors with strong momentum.

Composition DALI invests primarily in other ETFs that represent different sectors and asset classes, including domestic and international equities, fixed income, and commodities.

Market Share: Data not available.

Total Net Assets (AUM): 25.27

Key Competitors

• AOA
• AOR
• AOM
• AOK
• SPY

Competitive Landscape

The competitive landscape for DALI involves other asset allocation ETFs and broad market ETFs. DALI's relative strength approach offers a unique differentiation, but its smaller size and higher expense ratio compared to broad market ETFs like SPY could be a disadvantage. Competitors such as AOA, AOR, and AOM focus on target risk allocation while DALI focuses on sector selection based on relative strength momentum.

Historical Performance: Historical performance data is available through financial data providers, but is not suitable for inclusion in this example.

Benchmark Comparison: Performance can be compared to a blended benchmark representing the ETF's asset allocation targets over time, or to a static asset allocation ETF such as AOR.

Expense Ratio: 0.95

Average Trading Volume

The average trading volume of DALI is relatively low, which could potentially affect trade execution costs.

Bid-Ask Spread

The bid-ask spread for DALI can be wider compared to more liquid ETFs, potentially increasing the cost of trading.

Market Environment Factors

DALI's performance is affected by factors such as overall market volatility, sector rotation trends, and changes in macroeconomic conditions. Its dynamic allocation seeks to capitalize on prevailing market trends.

Growth Trajectory

DALI's growth is dependent on its ability to effectively identify and capture relative strength trends across asset classes. Changes to the Dorsey Wright methodology could impact its performance.

Competitive Edge

DALI's competitive advantage lies in its proprietary Dorsey Wright relative strength methodology, which seeks to identify and capitalize on momentum trends. This quantitative approach differentiates it from traditional asset allocation strategies. However, market trends are unpredictable, and the ETF's reliance on momentum investing may not always be successful. This active management approach may add value during periods of pronounced sector rotation.

Volatility

DALI's volatility will depend on the volatility of its underlying holdings. The dynamic allocation strategy aims to manage risk by shifting to less volatile assets during periods of market downturn.

Market Risk

DALI is subject to market risk, as its underlying assets are exposed to fluctuations in the stock market, bond market, and commodity markets. The ETF's sector allocation could also introduce concentration risk.

Ideal Investor Profile

DALI may be suitable for investors who are seeking long-term capital appreciation and are comfortable with a dynamic asset allocation strategy and a higher expense ratio. It may also appeal to investors who believe in the effectiveness of momentum-based investing.

Market Risk

DALI is likely best for long-term investors with a higher risk tolerance who are seeking potential outperformance through active management and are willing to pay a higher expense ratio.

The First Trust Dorsey Wright DALI 1 ETF (DALI) is an actively managed fund that utilizes a dynamic asset allocation strategy based on relative strength. It seeks long-term capital appreciation by investing in other ETFs representing various asset classes and sectors. DALI's performance is dependent on the success of the Dorsey Wright methodology and its ability to capture market trends. The ETF's relatively low trading volume and higher expense ratio are important considerations for potential investors. It's most suitable for investors who believe in momentum investing and are comfortable with active management.

Data Sources:

• First Trust Website
• ETF.com
• Bloomberg
• Morningstar

Disclaimers:

The data provided is for informational purposes only and should not be considered investment advice. Market share data is based on limited availability. All investment decisions should be made after consulting with a qualified financial advisor.