First Trust Horizon Managed Volatility Domestic ETF (HUSV)

Overview

The First Trust Horizon Managed Volatility Domestic ETF (HUSV) seeks to provide investment results that correspond generally to the price and yield of an index that measures the performance of a portfolio of U.S. equity securities selected and weighted to provide overall portfolio volatility that is similar to that of the broad U.S. equity market.

Reputation and Reliability

First Trust is a well-established ETF provider with a strong reputation for innovation and a broad range of investment products.

Management Expertise

First Trust has a dedicated team of investment professionals with experience in quantitative investing and risk management.

Goal

To provide investment results that correspond generally to the price and yield of an index that measures the performance of a portfolio of U.S. equity securities selected and weighted to provide overall portfolio volatility that is similar to that of the broad U.S. equity market.

Investment Approach and Strategy

Strategy: HUSV utilizes a managed volatility strategy, selecting stocks with lower volatility and weighting them to match the volatility of the broader market.

Composition The ETF primarily holds U.S. equity securities across various sectors.

Market Share: HUSV holds a moderate market share within the low volatility ETF category.

Total Net Assets (AUM): 1934000000

Key Competitors

• Invesco S&P 500 Low Volatility ETF (SPLV)
• iShares MSCI Min Vol USA ETF (USMV)
• SPDR SSGA US Large Cap Low Volatility Index ETF (LGLV)

Competitive Landscape

The low volatility ETF market is highly competitive, with several large players offering similar products. HUSV differentiates itself through its managed volatility approach. Advantages include potentially higher returns in rising markets compared to traditional low volatility ETFs. Disadvantages may include higher expense ratios or underperformance in certain market conditions.

Historical Performance: Historical performance data should be sourced from financial data providers (e.g., Morningstar, Bloomberg) for specific time periods.

Benchmark Comparison: HUSV's performance should be compared to the S&P 500 and other low volatility ETFs to assess its effectiveness.

Expense Ratio: 0.29

Average Trading Volume

HUSV generally exhibits adequate liquidity with a healthy average trading volume, facilitating easy entry and exit for investors.

Bid-Ask Spread

The bid-ask spread for HUSV is typically tight, indicating efficient trading and lower transaction costs.

Market Environment Factors

Economic indicators such as interest rates, inflation, and GDP growth, as well as sector-specific trends, influence HUSV's performance.

Growth Trajectory

HUSV's growth trajectory depends on its ability to attract investors seeking downside protection and a smoother investment experience. Changes to the underlying index methodology could impact future performance.

Competitive Edge

HUSV's managed volatility strategy offers a distinct advantage by dynamically adjusting its portfolio to maintain a volatility level similar to the broader market. This approach aims to capture upside potential while mitigating downside risk. First Trust's strong brand and distribution network further contribute to its competitive edge. The fund's focus on maintaining market-like volatility differentiates it from static low volatility strategies.

Volatility

HUSV aims to maintain a volatility level similar to the overall market, but may still experience periods of volatility.

Market Risk

HUSV is subject to market risk, meaning that its value can decline due to overall market downturns or sector-specific weaknesses.

Ideal Investor Profile

HUSV is suitable for investors seeking downside protection, a smoother investment experience, and participation in market upside.

Market Risk

HUSV is suitable for long-term investors who are risk-averse but still want equity exposure.

First Trust Horizon Managed Volatility Domestic ETF (HUSV) is designed for investors seeking a less volatile approach to domestic equity investing. It utilizes a managed volatility strategy to match the broad marketu2019s volatility. First Trustu2019s reputation provides comfort on reliability and expertise. The fund is suitable for risk-averse investors looking for downside protection with limited potential growth.

Data Sources:

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

Disclaimers:

The data provided is for informational purposes only and should not be considered investment advice. Investors should conduct their own research and consult with a financial advisor before making any investment decisions.