ETF Research Center

First Trust Dorsey Wright Dynamic Focus 5 ETF

ALTAR
Score™

3.7%

Recommen-
dation

UNDERWEIGHT

2025E 2026E
P/E ratio	21.3x	P/Sales ratio	2.6x
P/BV ratio	2.8x	Div. yield	1.6%

Description
Performance
Comps
Fundamentals
Valuation
Rating

The First Trust Dorsey Wright Dynamic Focus 5 ETF tracks an index of global sector and industry ETFs, selected by price momentum and weighted equally. The fund can also allocate to cash in varying amounts based on momentum.

FUND BASICS
Category	US Equities
Fund Sponsor	First Trust
Website	www.ftportfolios.com
Inception date	Mar 08, 2016
Assets (mns)	$104
Currency	USD
Expense ratio	88 bp
Distributions	Quarterly

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

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	6
Wgt avg mkt cap (mns)	$313,448
Large cap (>$10bn)	41.0%
Mid cap ($2-10bn)	10.3%
Small cap (<$2bn)	0.1%
Developed mkts	51.3%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	100.0 %
FIRST TRUST NASDAQ SEMICONDUCTOR E	21.5 %
FIRST TRUST FINANCIALS ALPHADEX� F	20.3 %
FIRST TRUST NYSE� ARCA� BIOTECHNOL	19.9 %
FIRST TRUST INDXX AEROSPACE & DEFE	19.6 %
FIRST TRUST DOW JONES INTERNET IND	18.8 %
US DOLLAR	0.0 %

TOP COUNTRY EXPOSURE
	UNITED STATES	92.8 %
	BERMUDA	1.4 %
	NETHERLANDS	1.3 %
	IRELAND	1.0 %
	GERMANY	0.7 %
	CHINA	0.7 %
	DENMARK	0.6 %
	CAYMAN ISLANDS	0.3 %
	PUERTO RICO	0.2 %
	SWITZERLAND	0.2 %

HISTORICAL PERFORMANCE info

	Custom date range	Compare to
	thru

Standardized Annual Returns (thru January 31)
Year-to-date	1 year	5 years	10 years	Since Incep.
5.3%	3.7%	5.4%	--	7.7%

Market Correlations
versus...	Beta	R-squared
S&P500	0.47	68%
MSCI EAFE	0.48	53%
MSCI Emg. Mkts.	0.43	49%

Technical Indicators
Recent close	$37.75
30d moving avg.	$38.15
Annualized volatility	11.1%
Short interest (ETF)	0.0%
Relative strength (RSI)	50

Liquidity measures
Avg. volume (thou.)	6
Turnover	0.2%
Bid/Ask (% of price)	0.38%
ADV underlying (mns)	$42,473

Distributions

FINDING ALTERNATIVE FUNDS

Below is a list of 1 potential alternatives to the First Trust Dorsey Wright Dynamic Focus 5 ETF ETF based on the alternatives' overlap in portfolio holdings with FVC. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker:

FVC

Expense:

88 bp

ALTAR Score™:

3.7%

ALTERNATIVE ETFs BASED ON OVERLAP WITH FVC
Ticker	Fund Name	Overlap¹ vs FVC (%)	Expense ratio (bp)	Savings vs FVC (bp)	ALTAR Score™ (%)	ALTAR vs FVC (%)
WSGE	Warren Street Global Equity ETF	0.0	80	8	2.9	-0.9

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

	2020	2021	2022	2023	2024	2025E	2026E
Sales per share	**	**	**	**	**	**	**
Earnings per share	**	**	**	**	**	**	**
Dividends per share	**	**	**	**	**	**	**
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

	2024	2025E	2026E
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 Dynamic Focus 5 ETF
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	12.7	%
Divided by: Fwd. P/BV	2.8	x
Less: Expense ratio	88	bp
Equals: ALTAR Score	3.7	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.47	CATEGORY AVERAGE	1.57

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.