First Trust Dorsey Wright International Focus 5 ETF (IFV)

Overview

The First Trust Dorsey Wright International Focus 5 ETF (IFV) seeks investment results that correspond generally to the price and yield, before fees and expenses, of an index called the Dorsey Wright International Focus Five Index. It invests in a selection of international ETFs based on relative strength rankings.

Reputation and Reliability

First Trust is a well-established ETF provider with a strong reputation for innovation and reliable ETF management.

Management Expertise

First Trust has a dedicated team of investment professionals with extensive experience in managing ETFs and employing quantitative investment strategies.

Goal

The ETF aims to provide investment results that generally correspond to the price and yield, before fees and expenses, of the Dorsey Wright International Focus Five Index.

Investment Approach and Strategy

Strategy: The ETF utilizes a relative strength-based strategy to select five top-performing international ETFs for investment.

Composition The ETF primarily holds other ETFs, specifically those focused on international equities across various developed and emerging markets.

Market Share: Data on IFV's exact market share is limited, but it operates within the broader international equity ETF market.

Total Net Assets (AUM): 36240000

Key Competitors

• VEU
• IXUS
• ACWX
• SCHF
• SPDW

Competitive Landscape

The international equity ETF market is highly competitive, with many established players. IFV differentiates itself through its relative strength methodology, but faces competition from larger, more diversified ETFs like VEU and IXUS which offer broader market exposure at lower costs. IFV's focused approach could lead to higher returns in certain market conditions, but also carries the risk of underperforming broader indices during periods when its selected ETFs lag.

Historical Performance: Historical performance data should be obtained from reliable financial sources for accurate evaluation.

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

Expense Ratio: 0.94

Average Trading Volume

The average trading volume of IFV is relatively low, which could impact the ease of buying and selling shares.

Bid-Ask Spread

The bid-ask spread can vary but is generally wider than more liquid ETFs, potentially increasing transaction costs.

Market Environment Factors

Global economic conditions, international trade policies, and geopolitical events can significantly impact the performance of international equity ETFs like IFV.

Growth Trajectory

The ETF's growth trajectory depends on the continued popularity of relative strength strategies and the performance of the underlying international ETFs it holds; changes to strategy and holdings are disclosed periodically.

Competitive Edge

IFV's competitive edge lies in its unique relative strength-based selection process, which aims to identify top-performing international ETFs. This approach may appeal to investors seeking a more actively managed, momentum-driven international equity strategy. However, the concentrated portfolio of only five ETFs introduces concentration risk. Investors should carefully consider their risk tolerance and investment objectives before investing.

Volatility

IFV's volatility can be higher than broader international equity ETFs due to its concentrated holdings and momentum-based strategy.

Market Risk

The ETF is subject to market risk associated with international equities, including currency fluctuations, political instability, and varying economic conditions in different countries.

Ideal Investor Profile

IFV may be suitable for investors seeking international equity exposure with a momentum-driven approach and a higher risk tolerance.

Market Risk

IFV is better suited for investors comfortable with active strategies and potentially higher volatility rather than passive index followers seeking broad diversification.

First Trust Dorsey Wright International Focus 5 ETF (IFV) offers a unique strategy for investing in international equities, using a relative strength-based selection process to identify top-performing international ETFs. Its concentrated portfolio introduces concentration risk, potentially leading to higher volatility compared to broader international equity ETFs. The ETF's performance depends on the success of its selected ETFs and the overall international market environment. Investors should carefully consider their risk tolerance and investment objectives before investing in IFV.

Data Sources:

• First Trust Website
• ETF.com
• Morningstar

Disclaimers:

The information provided is for informational purposes only and should not be considered investment advice. Investment decisions should be made based on individual circumstances and after consulting with a qualified financial advisor. Market share data is approximate and based on available information.