First Trust Dorsey Wright DALI 1 ETF (DALI)

Overview

The First Trust Dorsey Wright DALI 1 ETF (DALI) is an actively managed ETF that seeks long-term capital appreciation by dynamically allocating its assets among various asset classes based on relative strength and momentum factors.

Reputation and Reliability

First Trust is a well-established ETF provider known for its innovative and factor-based investment strategies.

Management Expertise

First Trust employs experienced portfolio managers and quantitative analysts to execute its investment strategies.

Goal

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

Investment Approach and Strategy

Strategy: DALI is actively managed and does not track a specific index. It uses a proprietary Dorsey Wright relative strength methodology to identify and allocate capital to asset classes exhibiting the strongest relative performance.

Composition DALI's portfolio can include a mix of stocks, bonds, commodities, and other asset classes, depending on the relative strength signals.

Market Share: DALI's market share within the multi-asset strategy ETF category is relatively small.

Total Net Assets (AUM): 42.41

Key Competitors

• AOA
• AOM
• AOR
• AOK
• VBAL
• VT
• VEQT
• XEQT

Competitive Landscape

The multi-asset ETF market is highly competitive with numerous established players offering diversified investment solutions. DALI's active management and relative strength approach differentiate it, but it competes with larger, passively managed ETFs with lower expense ratios. Advantages include its dynamic asset allocation and potential for outperformance, while disadvantages include higher expense ratios and active management risk.

Historical Performance: Past performance is not indicative of future results. Historical performance data should be obtained from reputable financial data providers.

Benchmark Comparison: A suitable benchmark for DALI would be a composite index representing a diversified portfolio of stocks, bonds, and other asset classes.

Expense Ratio: 0.95

Average Trading Volume

DALI's average trading volume is moderate, which may affect the ease of entering and exiting positions.

Bid-Ask Spread

The bid-ask spread can vary but investors should consider the spread when trading DALI.

Market Environment Factors

Economic growth, interest rates, inflation, and geopolitical events can all influence DALI's performance by impacting the relative attractiveness of different asset classes.

Growth Trajectory

DALI's growth trajectory depends on its ability to consistently generate positive relative returns through its dynamic asset allocation strategy; changes to the strategy may occur based on market analysis and evolving conditions.

Competitive Edge

DALI's competitive advantage lies in its actively managed, relative strength-based approach, aiming to outperform traditional passive asset allocation strategies. The Dorsey Wright methodology provides a systematic framework for identifying and allocating capital to the strongest performing asset classes. This dynamic approach allows for tactical shifts in asset allocation based on changing market conditions. The active management aims to enhance returns and manage risk more effectively than passive strategies. This approach is suitable for investors who believe in active management and the potential for outperformance.

Volatility

DALI's volatility may be higher than passively managed multi-asset ETFs due to its active management and dynamic asset allocation.

Market Risk

DALI is subject to market risk, which is the risk that the value of its investments will decline due to overall market conditions. The ETF is susceptible to fluctuations in any asset class it holds at a given time.

Ideal Investor Profile

DALI is suitable for investors seeking long-term capital appreciation and willing to accept a higher level of risk in exchange for the potential for outperformance. These investors are looking for active management and diversification.

Market Risk

DALI is more suited for investors who are comfortable with active management and have a longer time horizon.

The First Trust Dorsey Wright DALI 1 ETF (DALI) is an actively managed fund designed to provide long-term capital appreciation through dynamic asset allocation. Its Dorsey Wright relative strength methodology offers a systematic approach to identify and invest in leading asset classes. The ETF is suitable for investors comfortable with active management and seeking diversification through exposure to multiple asset classes, while recognizing that it is subject to active management risk and carries a higher expense ratio than passive funds. While AUM is low compared to competitors, it could be a good fit for investors with a high risk tolerance looking for an active, diversified solution.

Data Sources:

• First Trust Website
• ETF.com
• Morningstar
• Yahoo Finance

Disclaimers:

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