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RFEM
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First Trust RiverFront Dynamic Emerging Markets ETF (RFEM)

Upturn stock ratingUpturn stock rating
$72.06
Last Close (24-hour delay)
Profit since last BUY9.15%
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Consider higher Upturn Star rating
BUY since 38 days
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Upturn Advisory Summary

07/03/2025: RFEM (1-star) has a low Upturn Star Rating. Not recommended to BUY.

Upturn Star Rating

rating

Not Recommended Performance

These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.

Analysis of Past Performance

Type ETF
Historic Profit 23.33%
Avg. Invested days 66
Today’s Advisory Consider higher Upturn Star rating
Upturn Star Rating Upturn stock ratingUpturn stock rating
Upturn Advisory Performance Upturn Advisory Performance 4.0
ETF Returns Performance Upturn Returns Performance 4.0
Upturn Profits based on simulationUpturn Profits based on simulation Profits based on simulation
Upturn Profits based on simulationUpturn Profits based on simulation Last Close 07/03/2025

Key Highlights

Volume (30-day avg) -
Beta 1
52 Weeks Range 57.23 - 71.51
Updated Date 06/29/2025
52 Weeks Range 57.23 - 71.51
Updated Date 06/29/2025

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First Trust RiverFront Dynamic Emerging Markets ETF

ETF Overview

overview logo Overview

The First Trust RiverFront Dynamic Emerging Markets ETF (RFEM) is an actively managed ETF focused on providing exposure to equity securities of emerging market countries. The ETF utilizes a dynamic asset allocation strategy, adjusting its holdings based on macroeconomic conditions and relative valuations to seek long-term capital appreciation.

reliability logo Reputation and Reliability

First Trust is a well-established ETF provider known for its innovative and actively managed strategies.

reliability logo Management Expertise

RiverFront Investment Group, a registered investment advisor, provides sub-advisory services for RFEM, bringing their expertise in macroeconomic analysis and dynamic asset allocation to the ETF.

Investment Objective

overview logo Goal

To seek long-term capital appreciation.

Investment Approach and Strategy

Strategy: The ETF employs an active investment strategy that dynamically adjusts its exposure to emerging markets based on various factors, including macroeconomic trends and relative valuations.

Composition RFEM primarily invests in equity securities of companies located in emerging market countries. The ETF may also invest in derivatives and other investment vehicles to achieve its investment objective.

Market Position

Market Share: RFEM's market share within the emerging markets ETF space is relatively small compared to larger, passively managed ETFs.

Total Net Assets (AUM): 59500000

Competitors

overview logo Key Competitors

  • Vanguard FTSE Emerging Markets ETF (VWO)
  • iShares Core MSCI Emerging Markets ETF (IEMG)
  • Schwab Emerging Markets Equity ETF (SCHE)

Competitive Landscape

The emerging markets ETF landscape is highly competitive, dominated by passively managed, low-cost ETFs from major providers. RFEM differentiates itself through its active management and dynamic asset allocation, which aims to outperform traditional market-cap weighted indices. However, this approach also carries higher fees and the risk of underperformance relative to its benchmark.

Financial Performance

Historical Performance: Historical performance data should be obtained from reliable financial sources and presented over various time periods (e.g., 1-year, 3-year, 5-year, 10-year, and since inception).

Benchmark Comparison: The ETF's performance should be compared to the MSCI Emerging Markets Index to assess its effectiveness in generating alpha.

Expense Ratio: 0.099

Liquidity

Average Trading Volume

RFEM's average trading volume is moderate, suggesting reasonable liquidity for most investors.

Bid-Ask Spread

The bid-ask spread can fluctuate depending on market conditions and trading volume.

Market Dynamics

Market Environment Factors

Economic growth rates in emerging markets, currency fluctuations, geopolitical risks, and changes in commodity prices can all significantly impact RFEM's performance.

Growth Trajectory

The growth trajectory of RFEM will depend on its ability to effectively navigate the complexities of emerging markets and deliver consistent outperformance through its dynamic asset allocation strategy.

Moat and Competitive Advantages

Competitive Edge

RFEM's competitive edge lies in its active management and dynamic asset allocation strategy, which seeks to capitalize on macroeconomic trends and relative valuations within emerging markets. This approach aims to outperform passively managed ETFs, although it comes with higher fees. RiverFront Investment Group's expertise in macroeconomic analysis and active portfolio management contributes to the ETF's potential for generating alpha. However, the success of this strategy depends on the manager's ability to accurately predict market movements and adapt to changing conditions. The small AUM offers flexibility, but liquidity may be lower than larger peers.

Risk Analysis

Volatility

RFEM's volatility is expected to be high due to the inherent risks associated with emerging markets, including political instability, currency fluctuations, and economic uncertainty.

Market Risk

RFEM is subject to market risk, meaning that the value of its holdings can fluctuate based on overall market conditions and investor sentiment towards emerging markets.

Investor Profile

Ideal Investor Profile

RFEM is suitable for investors who are seeking exposure to emerging markets and are comfortable with active management and a higher level of risk. Investors should have a long-term investment horizon and be willing to tolerate potential volatility.

Market Risk

RFEM may be suitable for long-term investors who are looking for potential capital appreciation and are willing to accept the risks associated with emerging markets and active management.

Summary

First Trust RiverFront Dynamic Emerging Markets ETF (RFEM) offers investors actively managed exposure to emerging market equities, employing a dynamic asset allocation strategy. The ETF aims for long-term capital appreciation by adjusting holdings based on macroeconomic conditions and valuations. However, the higher expense ratio and reliance on active management mean it carries risks of underperformance versus passive ETFs. RFEM is suitable for risk-tolerant investors seeking potential outperformance in emerging markets through active management.

Peer Comparison

Sources and Disclaimers

Data Sources:

  • First Trust Website
  • ETF.com
  • Morningstar

Disclaimers:

This analysis is for informational purposes only and does not constitute investment advice. Past performance is not indicative of future results. Investing in ETFs involves risk, including the potential loss of principal. Consult with a financial advisor before making any investment decisions.

Upturn AI SummarizationUpturn AI Summarization AI Summarization is directionally correct and might not be accurate.

Upturn AI SummarizationUpturn AI Summarization Summarized information shown could be a few years old and not current.

Upturn AI SummarizationUpturn AI Summarization Fundamental Rating based on AI could be based on old data.

Upturn AI SummarizationUpturn AI Summarization AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.

About First Trust RiverFront Dynamic Emerging Markets ETF

Exchange NASDAQ
Headquaters -
IPO Launch date -
CEO -
Sector -
Industry -
Full time employees -
Website
Full time employees -
Website

The fund invests at least 80% of its net assets (including investment borrowings) in a portfolio of equity securities of emerging market companies, including through investments in common stock, depositary receipts, and common and preferred shares of real estate investment trusts, and forward foreign currency exchange contracts and currency spot transactions used to hedge the fund's exposure to the currencies in which the equity securities of such emerging market companies are denominated. The fund may invest in small, mid and large capitalization companies.