First Trust Horizon Managed Volatility Domestic
ALTAR
Score™
4.9% info Recommen-
dation
UNDERWEIGHT
2019E    2020E
P/E
ratio
20.1x P/Sales
ratio
2.7x
P/BV
ratio
3.3x Div.
yield
2.1%


  • Description
  • Performance
  • Comps
  • premium Fundamentals
  • premium Valuation
  • premium Rating
The First Trust Horizon Managed Volatility Domestic ETF is an actively managed fund. The fund manager uses volatility forecasting to select and weight US large-capitalization stocks.

FUND BASICS
Category US Equities
Fund Sponsor First Trust
Website www.ftportfolios.com
Inception date Aug 24, 2016
Assets (mns) $256
Currency USD
Expense ratio 70 bp
Distributions Quarterly

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

SECTOR BREAKDOWN

 


CONSTITUENT BREAKDOWN
No. of constituents 99
Wgt avg mkt cap (mns) $94,679
Large cap (>$10bn) 98.1%
Mid cap ($2-10bn) 1.9%
Small cap (<$2bn) 0.0%
Developed mkts 100.0%
Emerging mkts 0.0%

TOP TEN HOLDINGS
PEPSICO INC 1.4 %
WASTE MANAGEMENT INC 1.4 %
AVALONBAY COMMUNITIES INC 1.4 %
CITRIX SYSTEMS INC 1.3 %
MID-AMERICA APARTMENT COMM 1.3 %
ARTHUR J GALLAGHER & CO 1.3 %
YUM! BRANDS INC 1.3 %
COCA-COLA CO/THE 1.3 %
VERIZON COMMUNICATIONS INC 1.3 %
JOHNSON & JOHNSON 1.3 %
Total 13.3 %

TOP COUNTRY EXPOSURE
UNITED STATES 90.0 %
IRELAND 3.8 %
SWITZERLAND 2.1 %
BRITAIN 2.0 %
BERMUDA 1.0 %






HISTORICAL PERFORMANCE info

  Custom date range Compare to  
  thru


Standardized Annual Returns (thru November 30)
Year-to-date 1 year 5 years 10 years Since Incep.
25.4% 16.0% -- -- 12.1%

Market Correlations
versus... Beta R-squared
S&P500 0.63 72%
MSCI EAFE 0.56 48%
MSCI Emg. Mkts. 0.38 34%

Technical Indicators
Recent close $27.43
30d moving avg. $27.36
Annualized volatility 9.0%
Short interest (ETF) 0.2%
Relative strength (RSI) 54

Liquidity measures
Avg. volume (thou.) 32
Turnover 0.3%
Bid/Ask (% of price) 0.09%
ADV underlying (mns) $32,140

Distributions


FINDING ALTERNATIVE FUNDS

Below is a list of 20 potential alternatives to the First Trust Horizon Managed Volatility Domestic ETF based on the alternatives' overlap in portfolio holdings with HUSV. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker: HUSV Expense: 70 bp ALTAR Score™: 4.9%


ALTERNATIVE ETFs BASED ON OVERLAP WITH HUSV
Ticker Fund
Name
Overlap1
vs HUSV
(%)
Expense
ratio
(bp)
Savings
vs HUSV
(bp)
ALTAR
Score™
(%)
ALTAR
vs HUSV
(%)
SPLV Invesco S&P 500 Low Volatility 61.1 25 45 5.3 +0.4
LVHB Elkhorn Lunt Low Vol/High Beta Tactical 60.9 52 18 5.0 +0.1
XRLV Invesco S&P 500 ex-Rate Sensitive Low Volatility 59.1 25 45 6.0 +1.1
LGLV SPDR Russell 1000 Low Volatility 48.4 12 58 5.2 +0.3
USMV iShares MSCI USA Minimum Volatility 48.0 15 55 5.2 +0.3
FLLV Franklin Liberty U.S. Low Volatility 45.5 29 41 5.3 +0.4
DEF Invesco Defensive Equity 45.2 59 11 4.9 0.0
FDLO Fidelity Low Volatility Factor 43.1 29 41 5.4 +0.5
LVUS Hartford Multifactor Low Volatility US Equity 41.8 21 49 5.8 +0.9
OVOL Invesco Russell 1000 Low Volatility Factor ETF 35.7 19 51 5.7 +0.8
KLCD KFA Large Cap Quality Dividend Index 35.5 41 29 5.1 +0.2
ROUS Lattice U.S. Equity Strategy ETF 34.2 19 51 6.4 +1.5
JMIN JPMorgan U.S. Minimum Volatility 33.9 12 58 5.6 +0.7
RBUS Nationwide Risk-Based U.S. Equity 33.7 30 40 6.1 +1.2
LSLT Salt Low truBeta US Market 32.7 0 70 6.7 +1.8
FCTR First Trust Lunt U.S. Factor Rotation 32.2 65 5 5.6 +0.7
EQWL Invesco Fundamental Pure Large Core 31.5 25 45 6.3 +1.5
QUS SPDR MSCI USA Quality Mix 31.0 15 55 6.0 +1.1
OMOM Invesco Russell 1000 Momentum Factor ETF 30.9 19 51 5.3 +0.4
QLV FlexShares US Quality Low Volatility 29.9 22 48 5.0 +0.1

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 Horizon Managed Volatility Domestic
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 16.6 %
Divided by: Fwd. P/BV 3.0 x
Less: Expense ratio 70 bp
Equals: ALTAR Score 4.9 %
info More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS
COMPOSITE
RATING
1.64 CATEGORY
AVERAGE
1.56
 
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.