First Trust Dorsey Wright International Focus 5 ETF (IFV)

Overview

The First Trust Dorsey Wright International Focus 5 ETF (IFV) is an exchange-traded fund that seeks investment results that correspond generally to the price and yield of an index called the Dorsey Wright International Focus Five Index. The fund focuses on investing in a selection of international equities that exhibit relative strength characteristics. It employs a momentum-based strategy, selecting five ETFs from a broad international universe based on their price momentum.

Reputation and Reliability

First Trust is a well-established ETF provider with a solid reputation in the industry.

Management Expertise

First Trust Advisors L.P. has extensive experience in managing and developing innovative ETF strategies.

Goal

The ETF seeks investment results that correspond generally to the price and yield of the Dorsey Wright International Focus Five Index.

Investment Approach and Strategy

Strategy: The ETF employs a rules-based methodology to select five international ETFs based on relative strength.

Composition The ETF holds a portfolio of other ETFs, specifically focusing on international equity markets.

Market Share: IFV has a moderate market share within the international strategic ETF sector.

Total Net Assets (AUM): 60440000

Key Competitors

• VEU
• VXUS
• IDEV
• SCHF

Competitive Landscape

The international equity ETF space is highly competitive, with many broad-market and region-specific funds. IFV differentiates itself through its momentum-based, multi-ETF approach, which can potentially offer higher returns but also introduces complexity. Compared to broad market ETFs like VEU and VXUS, IFV is more concentrated, leading to potentially higher volatility.

Historical Performance: Past performance is not indicative of future results. Investors should consult the fund's prospectus for detailed historical performance data.

Benchmark Comparison: The ETF's performance should be compared to the Dorsey Wright International Focus Five Index to evaluate its tracking effectiveness.

Expense Ratio: 0.0085

Average Trading Volume

IFV exhibits moderate liquidity, with average daily trading volume that may fluctuate depending on market conditions.

Bid-Ask Spread

The bid-ask spread for IFV is generally competitive, reflecting its liquidity.

Market Environment Factors

Global economic growth, international trade policies, and currency fluctuations can all impact the performance of IFV's underlying international ETFs.

Growth Trajectory

The ETF's growth depends on the continued popularity of momentum-based investing and the performance of its selected international ETFs.

Competitive Edge

IFV's competitive advantage lies in its Dorsey Wright relative strength methodology, offering a unique approach to international equity investing. The fund's multi-ETF structure provides diversification across various international markets while maintaining a focused, momentum-driven strategy. This approach allows investors to potentially capture higher returns by investing in leading international markets. However, the strategy can also lead to higher turnover and potential tax implications.

Volatility

The ETF's volatility is expected to be higher than broad international market ETFs due to its concentrated, momentum-based approach.

Market Risk

The ETF is subject to international market risk, currency risk, and the specific risks associated with its underlying ETFs.

Ideal Investor Profile

The ideal investor is one who is seeking international equity exposure with a focus on momentum-driven investments and is comfortable with higher volatility. They have an understanding of technical analysis and are looking for potential outperformance compared to broad market ETFs.

Market Risk

IFV is suitable for active traders or investors who are seeking tactical international equity exposure and are comfortable with a higher degree of risk.

The First Trust Dorsey Wright International Focus 5 ETF (IFV) is a momentum-based international equity ETF that selects five international ETFs based on relative strength. The fund offers a unique approach to international investing, potentially leading to higher returns but also increased volatility. Its rules-based methodology and multi-ETF structure provide diversification while maintaining a focused investment strategy. Investors should consider their risk tolerance and investment objectives before investing in IFV.

Data Sources:

• First Trust website
• ETF.com
• Morningstar

Disclaimers:

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