First Trust RiverFront Dynamic Developed International ETF (RFDI)

Overview

The First Trust RiverFront Dynamic Developed International ETF (RFDI) is an actively managed ETF that seeks capital appreciation by investing in developed international markets, primarily through dividend-paying equities, using a dynamic allocation strategy.

Reputation and Reliability

First Trust is a well-established ETF provider known for its diverse range of investment products and commitment to innovation.

Management Expertise

First Trust has a team of experienced investment professionals managing the RFDI ETF, leveraging RiverFront Investment Group's expertise in dynamic asset allocation.

Goal

The primary investment goal of RFDI is capital appreciation.

Investment Approach and Strategy

Strategy: RFDI is actively managed, employing a dynamic asset allocation strategy that adjusts its holdings based on macroeconomic factors, technical indicators, and fundamental analysis.

Composition The ETF primarily invests in dividend-paying equities of companies located in developed international markets. It may also invest in other asset classes to achieve its objectives.

Market Share: RFDI's market share within the developed international equity ETF sector is relatively small compared to larger, more established ETFs.

Total Net Assets (AUM): 59400000

Key Competitors

• VEA
• IDEV
• SCHF
• SPDW

Competitive Landscape

The developed international equity ETF sector is highly competitive, dominated by large, passively managed ETFs. RFDI distinguishes itself through its active management and dynamic asset allocation strategy, which aims to outperform passive benchmarks. However, active management comes with higher fees and the risk of underperformance compared to passive peers.

Historical Performance: Past performance does not guarantee future results, and RFDI's performance will fluctuate based on market conditions and the effectiveness of its active management strategy.

Benchmark Comparison: RFDI's performance should be compared to relevant developed international equity benchmarks, considering its dynamic allocation strategy may lead to deviations from standard index returns.

Expense Ratio: 0.009

Average Trading Volume

RFDI's average trading volume is moderate, which may affect the ease of buying or selling large positions.

Bid-Ask Spread

The bid-ask spread for RFDI is typically reasonable, but it can widen during periods of market volatility.

Market Environment Factors

RFDI's performance is influenced by global economic growth, currency fluctuations, interest rates, and geopolitical events affecting developed international markets.

Growth Trajectory

RFDI's growth trajectory depends on its ability to attract assets and generate positive returns through its dynamic asset allocation strategy; strategy and holdings are subject to change based on market conditions and management's outlook.

Competitive Edge

RFDI's competitive edge lies in its active management and dynamic asset allocation strategy, which seeks to capitalize on changing market conditions. RiverFront Investment Group's expertise in macroeconomic analysis and technical indicators could provide an advantage. The focus on dividend-paying equities also adds a value component. This active approach aims to deliver superior risk-adjusted returns compared to passive investments in developed international markets.

Volatility

RFDI's volatility may be higher than passively managed international equity ETFs due to its active trading strategy.

Market Risk

RFDI is subject to market risk, including fluctuations in equity prices, currency risks, and economic downturns in developed international markets.

Ideal Investor Profile

RFDI is suitable for investors seeking capital appreciation in developed international markets and who are comfortable with active management and its associated risks.

Market Risk

RFDI may be suitable for long-term investors who believe in active management's potential to outperform passive benchmarks, but it might not be ideal for passive index followers.

The First Trust RiverFront Dynamic Developed International ETF (RFDI) is an actively managed ETF focused on capital appreciation through developed international equities. Its dynamic allocation strategy, managed by RiverFront Investment Group, aims to outperform passive benchmarks. While it offers the potential for higher returns, it also carries higher fees and volatility compared to passive options. RFDI is best suited for investors seeking active management in international markets and are comfortable with its associated risks.

Data Sources:

• First Trust Website
• ETF.com
• Morningstar

Disclaimers:

This analysis is based on available information and should not be considered financial advice. Investment decisions should be made after consulting with a qualified financial advisor and reviewing the ETF's prospectus.