Symbols

FVC

First Trust Dorsey Wright Dynamic Focus 5 ETF·NASDAQ

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Key Stats

Assets Under Management

96.75MUSD

Fund Flow (1Y)

-35.94MUSD

Dividend Yield

2.65%

Discount / Premium to NAV

-0.13%

Shares Outstanding

2.75M

Expense Ratio

0.87%

About First Trust Dorsey Wright Dynamic Focus 5 ETF

Issuer

First Trust Advisors L.P.

Brand

First Trust

Home Page

http://www.ftportfolios.com/Retail/Etf/EtfSummary.aspx?Ticker=FVC

Inception Date

Mar 17, 2016

Structure

Open-Ended Fund

Index Tracked

Dorsey Wright Dynamic Focus Five Index

Management Style

Passive

Dividend Treatment

Distributes

Distribution Tax Treatment

Qualified dividends

Income Tax Type

Capital Gains

Max ST Capital Gains Rate

39.60%

Max LT Capital Gains Rate

20.00%

Primary Advisor

First Trust Advisors LP

Distributor

First Trust Portfolios LP

FVC is a momentum-based sector rotation ETF with a few twists. Its fund-of-funds structure pulls from a pool of First Trust sector and industry ETFs, both U.S. and global in scope. (Non-sector funds with "significant” sector overweights are also in bounds.) As such, the underlying ETFs use multi-factor stock selection and weighting, driven by growth and value factors. The ETFs themselves are selected by price momentum: The Dorsey Wright relative strength model picks the 5 ETFs with the strongest momentum and equally weights them. However, the momentum model also considers a cash index, and if a third of the ETFs in the universe start to fare worse than cash, the fund allocates to T-bills. The cash allocation can vary from 0 to 95%, although it caps any single move at the fortnightly rebalance to 33%.