ETF Trends with some high praise for FV:
Among newer exchange traded funds, particularly those that are 12 to 18 months old, the First Trust Dorsey Wright Focus 5 ETF (NasdaqGM: FV) is the stuff ETF legends are made of.
The First Trust Dorsey Wright Focus 5 ETF debuted in March 2014 and since has been on a torrid pace of asset-gathering rivaled by few new ETFs. FV needed less than nine months of work to top $1 billion in assets and has needed just seven months to more than triple in size from there. Today, FV has $3.8 billion in assets under management.[Another Good Year for New ETFs]
More important FV’s asset-gathering acumen is whether or not its performance and its 0.94% annual fee, which is high among ETFs, has merited all that adulation from advisors and investors. The answer is “yes.” Since coming to market, FV is up 23%, more than double the 10.6% returned by the S&P 500 over the same period.
“The Dorsey Wright Focus Five Index is designed to provide targeted exposure to the five First Trust sector and industry based ETFs that DWA believes offer the greatest potential to outperform the other ETFs in the selection universe. To construct the index, Dorsey, Wright & Associates (DWA) begins with the universe of First Trust sector and industry ETFs. Using the DWA relative strength ranking system, the ETFs are compared to each other to determine inclusion by measuring each ETF’s price momentum relative to other ETFs in the universe,” according to Captain John Charts. “Think of this as an ETF that contains the top five relative strength places to be, inside one ETF using the First Trust ETF products.”
The relative strength strategy is NOT a guarantee. There may be times where all investments and strategies are unfavorable and depreciate in value. See www.ftportfolios.com for more information. Dorsey Wright is the index provider for FV.