Fund Description
This exchange-traded fund seeks investment results that correspond generally to the price and yield (before the funds fees and expenses) of an index called the Dorsey Wright Dynamic Focus Five Index. The Dorsey Wright Dynamic Focus Five Index (the "index") is designed to provide targeted exposure to five First Trust sector and industry based ETFs and the Nasdaq US T-Bill Index (the "cash index"). The index combines Dorsey, Wright & Associates (DWA) systematic momentum approach to sector rotation and risk management via cash equivalents represented by 1- to 3-month U.S. Treasury bills in the cash index. To construct the index, DWA begins with the universe of First Trust sector and industry ETFs and the cash index. Using the DWA proprietary relative strength methodology, the ETFs are compared to each other to determine inclusion by measuring each ETFs price momentum relative to other ETFs in the universe. Each ETF is given a score that allows the index to objectively determine where it ranks relative to all other ETFs in the universe and five ETFs that satisfy certain trading volume and liquidity requirements are selected for inclusion. The relative strength analysis is conducted on a bi-monthly basis. ETFs are replaced when they fall sufficiently out of favor, based on their relative strength, versus the other ETFs within the universe. When an ETF is added or removed, the index is rebalanced so each ETF position is equally weighted. The index can gain varying amounts of exposure to the cash index when the relative strength of more than one-third of the universe of First Trust ETFs begins to diminish relative to the cash index. The cash index is evaluated on a bi-monthly basis. The cash index may constitute between 0% and 95% of the index, but is limited to an increase or decrease of no more than 33% per evaluation.
Fund Profile
Fund Name First Trust Dorsey Wright Dynamic Focus 5 ETF
Fund Exchange Ticker FVC
Fund Sponsor First Trust
Fund ISIN US33738R8786
Net Expense Ratio 0.89 %
Fund Inception Date 17 March 2016
Fund Legal Structure ETF (Open end fund)
Exchange NASDAQ
Listing Country Code US
Fund Investment Objective
ETF Type Specific US Equities - Industry Sector
Asset Class Equities (Stocks)
Index Linked Passive
Index Name Dorsey Wright Dynamic Focus Five Index
Index Provider Dorsey Wright
Currency Hedged No
Inverse / Leveraged Not Applicable
Developed / Emerging Developed Market Funds
Market Capitalization Range Broad Market / Multi-Cap
Growth Value Core / Blend
Continent North America
Key Statistics
Return As of Date 15 January 2019
Asset Under Management 506.86 Million (USD)
1 Month Total Return 1.03 %
Year To Date Return 7.96 %
1 Year Total Return -6.74 %
3 Year Annualized Total Return
NAV 25.28
Share Outstanding 20,050,000
Top 10 Holdings (14 January 2019)
Constituent Name Constituent Ticker Constituent Type Weighting
First Trust Technology AlphaDEX Fund FXL EQUI 0.1355000000
First Trust NASDAQ-100-Technology Sector Index Fund QTEC EQUI 0.1328000000
U.S. Treasury Bill 0% due 04/04/2019 EQUI 0.0364000000
U.S. Treasury Bill 0% due 03/21/2019 EQUI 0.0364000000
U.S. Treasury Bill 0% due 03/28/2019 EQUI 0.0364000000
U.S. Treasury Bill 0% due 03/14/2019 EQUI 0.0364000000
U.S. Treasury Bill 0% due 03/07/2019 EQUI 0.0364000000