From ETF Trends:
Over 160 exchange traded products have debuted this year and as is always the case with new ETFs, some of this year’s new funds have flailed while others have been successful right away.
As of mid-October just over 10% of the new ETFs that had come to market to that point in 2014 had topped $75 million in assets under management. The First Trust Dorsey Wright Focus 5 ETF (Nasdaq GM:FV), which debuted in early March, long ago left $75 million in AUM in the dust.
In fact, FV is now a $1 billion fund, easily making it one of this year’s most successful new ETFs. This is how rapidly FV has grown: The ETF debuted in early March and by September, it had $500 million in AUM. By September 24, that number had swelled to $530 million. When we highlighted some of this year’s most successful new ETFs in mid-October, FV had $570 million in AUM. [Another Good Year for New ETFs]
Translation: FV has added $430 million, or about 43% of its current AUM total, in just five weeks. Doresy Wright’s indices that focus on relative strength and other technical factors serve as the benchmarks for scores of sector and specialized ETFs, many of which have delivered impressive out-performance of more plain vanilla competing products. FV has gained a rapid following because advisors were already familiar with the methodology backing the ETF prior to the fund’s launch.
Past performance is not indicative of future results. Potential for profits is accompanied by possibility of loss. The relative strength strategy is NOT a guarantee. There may be times where all investments and strategies are unfavorable and depreciate in value. Nothing contained herein should be construed as an offer to sell or the solicitation of an offer to buy any security. The article does not attempt to examine all the facts and circumstances which may be relevant to any product or security mentioned herein. We are not soliciting any action based on this document. It is for the general information of clients of Dorsey, Wright & Associates, LLC (“Dorsey, Wright & Associates). This document does not constitute a personal recommendation or take into account the particular investment objectives, financial situation, or needs of individual clients. Before action on any analysis, advice or recommendation in this document, clients should consider whether the security or strategy in question is suitable for the particular circumstances and, if necessary, seek professional advice.
