First Trust Dorsey Wright Momentum & Dividend
ALTAR
Score™
6.6% info Recommen-
dation
OVERWEIGHT
2019E    2020E
P/E
ratio
16.7x P/Sales
ratio
2.1x
P/BV
ratio
2.4x Div.
yield
3.9%


  • Description
  • Performance
  • Comps
  • premium Fundamentals
  • premium Valuation
  • premium Rating
The First Trust Dorsey Wright Momentum & Dividend ETF (formerly the First Trust RBA Quality Income ETF) tracks the Dorsey Wright Momentum Plus Dividend Yield Index, a rules-based equity index which holds the 50 highest dividend yielding stocks within the NASDAQ US Large Mid Cap Index that maintain high levels of relative strength.

FUND BASICS
Category US Equities
Fund Sponsor First Trust Advisors LP
Website www.ftportfolios.com
Inception date Mar 11, 2014
Assets (mns) $54
Currency USD
Expense ratio 60 bp
Distributions Quarterly

FUND STRUCTURE
Regulation Open-End Investment Company
Custodian Brown Brothers Harriman & Co
Weighting Proprietary
Index replication Optimized
Uses derivatives No
Options available No

SECTOR BREAKDOWN

 


CONSTITUENT BREAKDOWN
No. of constituents 50
Wgt avg mkt cap (mns) $28,350
Large cap (>$10bn) 48.5%
Mid cap ($2-10bn) 51.6%
Small cap (<$2bn) 0.0%
Developed mkts 100.0%
Emerging mkts 0.0%

TOP TEN HOLDINGS
CAPITAL TRUST-CL A 4.2 %
SPIRIT REALTY CAPITAL INC 3.5 %
SEAGATE TECHNOLOGY 3.4 %
MEDICAL PROPERTIES TRUST INC 3.4 %
ONEOK INC 3.4 %
BLACKSTONE GROUP LP/THE 3.3 %
LAMAR ADVERTISING COMPANY CLASS A 3.2 %
RYMAN HOSPITALITY PROPERTIES 3.2 %
WYNDHAM WORLDWIDE CORP 3.0 %
BROADCOM INC. 2.9 %
Total 33.6 %

TOP COUNTRY EXPOSURE
UNITED STATES 95.6 %
IRELAND 3.4 %
SWITZERLAND 1.0 %








HISTORICAL PERFORMANCE info

  Custom date range Compare to  
  thru


Standardized Annual Returns (thru October 31)
Year-to-date 1 year 5 years 10 years Since Incep.
29.2% 14.9% 7.1% -- 7.4%

Market Correlations
versus... Beta R-squared
S&P500 0.82 67%
MSCI EAFE 0.68 40%
MSCI Emg. Mkts. 0.38 20%

Technical Indicators
Recent close $26.22
30d moving avg. $26.17
Annualized volatility 12.0%
Short interest (ETF) 1.9%
Short interest (Underlying) 4.8%
Relative strength (RSI) 63

Liquidity measures
Avg. volume (thou.) 23
Turnover 1.1%
Bid/Ask (% of price) 0.13%
ADV underlying (mns) $7,844

Distributions


FINDING ALTERNATIVE FUNDS

Below is a list of 20 potential alternatives to the First Trust Dorsey Wright Momentum & Dividend ETF based on the alternatives' overlap in portfolio holdings with DDIV. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker: DDIV Expense: 60 bp ALTAR Score™: 6.6%


ALTERNATIVE ETFs BASED ON OVERLAP WITH DDIV
Ticker Fund
Name
Overlap1
vs DDIV
(%)
Expense
ratio
(bp)
Savings
vs DDIV
(bp)
ALTAR
Score™
(%)
ALTAR
vs DDIV
(%)
DVOL First Trust Dorsey Wright Momentum & Low Volatility 28.5 60 0 4.4 -2.2
DVLU First Trust Dorsey Wright Momentum & Value 19.7 60 0 8.4 +1.8
TPHD Timothy Plan High Dividend Stock 17.6 52 8 6.8 +0.1
PFI Invesco Dynamic Financial Sector 15.9 60 0 4.6 -2.0
CDL Victory CEMP US Large Cap High Div Volatility Wtd 15.4 35 25 7.9 +1.3
CDC Victory CEMP US EQ Income Enhanced Volatility Wtd 15.4 35 25 7.9 +1.3
RNDV US Equity Dividend Select 15.3 50 10 7.8 +1.2
PUI Invesco DWA Utilities Momentum 14.9 60 0 4.3 -2.4
NURE NuShares Short-Term REIT 14.7 35 25 6.6 -0.1
RORE Hartford Multifactor REIT 14.5 45 15 12.9 +6.3
SPLV Invesco S&P 500 Low Volatility 13.9 25 35 5.2 -1.4
LVHB Elkhorn Lunt Low Vol/High Beta Tactical 13.9 52 8 5.0 -1.7
IYR iShares U.S. Real Estate 13.7 42 18 5.7 -0.9
LVHD Legg Mason Low Volatility High Dividend ETF 13.5 27 33 6.8 +0.2
QDF FlexShares Quality Dividend 13.4 37 23 7.0 +0.4
REZ iShares Residential Real Estate Capped 13.4 48 12 5.1 -1.6
FREL Fidelity MSCI Real Estate 13.3 8 52 6.0 -0.6
USRT iShares Core. U.S. REIT 13.2 8 52 6.4 -0.2
DVY iShares Select Dividend 13.1 39 21 8.1 +1.4
FRI First Trust S&P REIT 12.6 50 10 6.0 -0.6

1Overlap is the percentage of holdings by weight that are identical. For example, if Fund A has a 2% position in Apple, Inc. (AAPL) and Fund B has a 5% position, their overlapping position in AAPL is 2%.

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RESULTS & ESTIMATES

  2014 2015 2016 2017 2018 2019E 2020E
Sales per share ** ** ** ** ** ** **
Earnings per share ** ** ** ** ** ** **
Dividends per share info ** ** ** ** ** ** **
Book value per share ** ** ** ** ** ** **

 

Sales per share growth   **% **% **% **% **% **%
EPS growth   **% **% **% **% **% **%

Sales per share growth   **% **% **% **% **% **%
EPS growth   **% **% **% **% **% **%

OTHER FUNDAMENTAL METRICS

Long term EPS growth est. **%   Debt-to-equity **x
Asset turnover **%   Assets-to-equity **x

Return on equity

Revision activity*
*Six months ago = 100

Net margins

Compound annual growth rates

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VALUATION METRICS
  2018 2019E 2020E
Price-to-sales ** ** **
Price-to-earnings ** ** **
Price-to-cash flow ** ** **
Price-to-growth ** ** **
Price-to-book value ** ** **
Yield ** ** **

Historical valuation trends

Forward
multiple:
First Trust Dorsey Wright Momentum & Dividend
Relative
to:
S&P500 MSCI EAFE MSCI Emg. Mkts. Other ETF:

OVERWEIGHT

Above average appreciation potential. A rating of OVERWEIGHT is assigned to ETFs with ALTAR Scores in the 4th quintile (ranking higher than 60%-80%) of their category. Typically, funds in this category consist of stocks trading at attractive valuations and/or having above-average fundamentals.

ALTAR Score™


Calculation of ALTAR Score™
Avg. Return on Equity 16.6 %
Divided by: Fwd. P/BV 2.3 x
Less: Expense ratio 60 bp
Equals: ALTAR Score 6.6 %
info More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS
COMPOSITE
RATING
1.70 CATEGORY
AVERAGE
1.55
 
The composite rating is a weighted average of analysts' consensus recommendations for individual ETF constituents, based on the following scale:

BUY = 1; OVERWEIGHT = 1.5, HOLD = 2; UNDERWEIGHT = 2.5; and SELL = 3.

Readers are cautioned that because analyst ratings tend to be inflated, the composite score may be more useful as a relative measure of sentiment between funds rather than as a stand-alone recommendation.
 

 

See RATING tab for calculation of ALTAR Score™
Risk & reward. Uses std. dev. as proxy for risk, ALTAR Score™ for return forecast.
Dividends paid by constituents to the fund. May differ from actual distributions to shareholders due to constituent changes, timing issues or other factors.
Monthly returns based on changes in price plus dividends. May differ from daily returns reported by funds. See below for standardized returns.