First Trust Dorsey Wright Momentum & Low Volatility
ALTAR
Score™
4.2% info Recommen-
dation
UNDERWEIGHT
2019E    2020E
P/E
ratio
24.2x P/Sales
ratio
3.3x
P/BV
ratio
2.4x Div.
yield
2.6%


  • Description
  • Performance
  • Comps
  • premium Fundamentals
  • premium Valuation
  • premium Rating
The First Trust Dorsey Wright Momentum & Low Volatility tracks a rules-based equity index consisting of the 50 stocks in the NASDAQ US Large Mid Index that exhibit the lowest levels of volatility while still maintaining high levels of relative strength.

FUND BASICS
Category US Equities
Fund Sponsor First Trust
Website www.ftportfolios.com
Inception date Sep 05, 2018
Assets (mns) $106
Currency USD
Expense ratio 60 bp
Distributions Quarterly

FUND STRUCTURE
Regulation Open-Ended Fund
Custodian
Weighting Volatility
Index replication
Uses derivatives No
Options available No

SECTOR BREAKDOWN

 


CONSTITUENT BREAKDOWN
No. of constituents 50
Wgt avg mkt cap (mns) $26,711
Large cap (>$10bn) 57.6%
Mid cap ($2-10bn) 41.2%
Small cap (<$2bn) 1.2%
Developed mkts 100.0%
Emerging mkts 0.0%

TOP TEN HOLDINGS
CAPITAL TRUST-CL A 3.8 %
AMERICAN ELECTRIC POWER 2.9 %
WESTAR ENERGY INC 2.8 %
REPUBLIC SERVICES INC 2.8 %
ALLIANT ENERGY CORP 2.8 %
ENTERGY CORP 2.8 %
DTE ENERGY COMPANY 2.8 %
ATMOS ENERGY CORP 2.8 %
OGE ENERGY CORP 2.7 %
NEXTERA ENERGY GROUP 2.7 %
Total 29.0 %

TOP COUNTRY EXPOSURE
UNITED STATES 98.8 %
IRELAND 1.2 %









HISTORICAL PERFORMANCE info

  Custom date range Compare to  
  thru


Standardized Annual Returns (thru December 31)
Year-to-date 1 year 5 years 10 years Since Incep.
26.1% 26.1% -- -- 11.0%

Market Correlations
versus... Beta R-squared
S&P500 0.55 52%
MSCI EAFE 0.56 37%
MSCI Emg. Mkts. 0.35 23%

Technical Indicators
Recent close $23.26
30d moving avg. $22.30
Annualized volatility 13.1%
Short interest (ETF) 0.7%
Relative strength (RSI) 70

Liquidity measures
Avg. volume (thou.) 77
Turnover 1.7%
Bid/Ask (% of price) 0.11%
ADV underlying (mns) $5,050

Distributions


FINDING ALTERNATIVE FUNDS

Below is a list of 19 potential alternatives to the First Trust Dorsey Wright Momentum & Low Volatility ETF based on the alternatives' overlap in portfolio holdings with DVOL. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker: DVOL Expense: 60 bp ALTAR Score™: 4.2%


ALTERNATIVE ETFs BASED ON OVERLAP WITH DVOL
Ticker Fund
Name
Overlap1
vs DVOL
(%)
Expense
ratio
(bp)
Savings
vs DVOL
(bp)
ALTAR
Score™
(%)
ALTAR
vs DVOL
(%)
PUI Invesco DWA Utilities Momentum 39.2 60 0 3.8 -0.4
DDIV First Trust Dorsey Wright Momentum & Dividend 33.9 60 0 6.3 +2.1
SPLV Invesco S&P 500 Low Volatility 33.1 25 35 5.0 +0.8
RYU Invesco S&P Equal Weight Utilities 32.7 40 20 4.7 +0.5
JHMU John Hancock Multifactor Utilities 32.3 40 20 4.8 +0.6
DWEQ AdvisorShares Dorsey Wright Alpha Equal Weight ETF 29.0 99 -39 3.4 -0.8
XLU Utilities Select Sector SPDR 27.8 13 47 4.8 +0.6
FUTY Fidelity MSCI Utilities 27.5 8 52 4.8 +0.5
VPU Vanguard Utilities ETF 27.3 10 50 4.7 +0.5
IDU iShares DJ US Utilities 27.2 43 17 4.5 +0.3
HUSV First Trust Horizon Managed Volatility Domestic 25.8 70 -10 4.7 +0.4
ECLN First Trust EIP Carbon Impact 23.6 95 -35 3.1 -1.1
LGLV SPDR Russell 1000 Low Volatility 23.2 12 48 5.0 +0.8
FXU First Trust Utilities Alphadex 20.4 63 -3 5.1 +0.9
JXI iShares S&P Global Utilities 20.4 46 14 4.9 +0.7
UTES Reaves Utilities 18.6 49 11 4.0 -0.3
KLCD KFA Large Cap Quality Dividend Index 18.3 41 19 5.1 +0.8
TPHD Timothy Plan High Dividend Stock 18.2 52 8 6.4 +2.2
USMV iShares MSCI USA Minimum Volatility 17.6 15 45 5.0 +0.7

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

Content on this tab for subscribers only

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 & Low Volatility
Relative
to:
S&P500 MSCI EAFE MSCI Emg. Mkts. Other ETF:

UNDERWEIGHT

Below average appreciation potential. A rating of UNDERWEIGHT is assigned to ETFs with ALTAR Scores in the 2nd quintile (ranking higher than only 20%-40%) of their category. Typically, funds in this category consist of stocks trading at relatively expensive valuations and/or having below-average fundamentals.

ALTAR Score™


Calculation of ALTAR Score™
Avg. Return on Equity 11.2 %
Divided by: Fwd. P/BV 2.3 x
Less: Expense ratio 60 bp
Equals: ALTAR Score 4.2 %
info More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS
COMPOSITE
RATING
1.74 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.