An index-tracking ETF based on Dorsey Wright’s systematic momentum
strategy for sector rotation using their relative strength ranking system
Company Website:
http://www.ftportfolios.com/
WHEATON, Ill. -- (Business Wire)
First
Trust Advisors L.P. (“First Trust”) a global exchange-traded fund
(ETF) provider and asset manager, announced that it has cross listed the
First Trust Dorsey Wright International Focus 5 ETF (NASDAQ: IFV) on the
Mexican stock exchange, Bolsa Mexicana de Valores (BMV). The fund seeks
investment results that correspond generally to the price and yield
(before the fund’s fees and expenses) of an equity index called the
Dorsey Wright International Focus Five Index (the “index”).
J.P. Morgan sponsors the cross-listing of First Trust’s ETFs and
services the ETFs by handling corporate actions, disseminating
information and working with investors in Mexico.
The Dorsey Wright International Focus Five Index is designed to provide
targeted exposure to the five First Trust international ETFs identified
by Dorsey, Wright & Associates, LLC’s (“DWA”) index methodology that
offer the greatest potential to outperform the other ETFs in the
selection universe. First Trust’s country/region-based ETFs provide the
universe for the index selection. Using the DWA relative strength
ranking system, the ETFs are compared to each other based on price
momentum to determine inclusion. Each ETF is given a score that allows
DWA to objectively determine where it ranks relative to all other ETFs
in the universe. The top five ranking ETFs are included in the index and
the relative strength analysis is conducted on a weekly basis. ETFs are
replaced when they fall sufficiently out of favor, based on their
relative strength, versus the other ETFs within the universe. The index
is rebalanced periodically so each position is equally weighted upon
rebalance. DWA believes the design of the index allows them to identify
major themes in the market, have exposure to those countries or regions
whose price action is superior to others in the universe and eliminate
exposure to those countries or regions whose price action is sub-par
relative to others in the universe.
DWA is an independent and privately owned registered investment advisory
firm that provides professional management of equity portfolios for
investors and investment research services for numerous broker/dealers
and large institutions around the world. Technical analysis provides the
cornerstone of their approach and relative strength plays a very
important role. Relative strength is a ranking system used to measure a
security’s price momentum relative to its peers and helps DWA identify
meaningful patterns in daily share price movements.
“The First Trust Dorsey Wright International Focus 5 ETF provides an
efficient, scalable way for financial advisors and their clients to gain
exposure to an international price momentum rotation strategy, combining
the insights of Dorsey Wright’s research on relative strength with First
Trust’s robust lineup of international ETFs,” said Ryan Issakainen, CFA,
Senior Vice President, Exchange-Traded Fund Strategist at First Trust.
For more information about First Trust, please contact Ryan Issakainen
of First Trust at (630) 765-8689 or RIssakainen@FTAdvisors.com.
About First Trust
First Trust Advisors L.P., along with its affiliate First Trust
Portfolios L.P., are privately held companies which provide a variety of
investment services, including asset management and financial advisory
services, with collective assets under management or supervision of
approximately $117 billion as of April 30, 2015 through unit investment
trusts, exchange-traded funds, closed-end funds, mutual funds and
separate managed accounts. First Trust is based in Wheaton, Illinois.
For more information, visit http://www.ftlatinamerica.com.
You should consider the fund’s investment objectives, risks, and
charges and expenses carefully before investing. Contact First Trust
Portfolios L.P. at 1-800-621-1675 or visit www.ftlatinamerica.com
to obtain a prospectus or a summary prospectus which contains this and
other information about the fund. The prospectus or summary prospectus
should be read carefully before investing.
ETF Characteristics
The fund lists and principally trades its shares on The NASDAQ Stock
Market LLC. and the Bolsa Mexicana de Valores.
The fund’s return may not match the return of the Dorsey Wright Focus
Five Index. The ETFs held by the fund will generally not be bought or
sold in response to market fluctuations.
Investors buying or selling fund shares on the secondary market may
incur customary brokerage commissions. Market prices may differ to some
degree from the net asset value of the shares. Investors who sell fund
shares may receive less than the share’s net asset value. Shares may be
sold throughout the day on the exchange through any brokerage account.
However, unlike mutual funds, shares may only be redeemed directly from
the fund by authorized participants, in very large creation/redemption
units.
Risks
The fund’s shares will change in value, and you could lose money by
investing in the fund. One of the principal risks of investing in the
fund is market risk. Market risk is the risk that a particular ETF owned
by the fund, fund shares or stocks in general may fall in value. There
can be no assurance that the fund's investment objective will be
achieved.
The ETFs in which the fund invests may invest in small capitalization
and mid capitalization companies. Such companies may experience greater
price volatility than larger, more established companies.
The ETFs in which the fund invests invest in securities of non U.S.
issuers, which are subject to additional risks, including currency
fluctuations, political risks, withholding, the lack of adequate
financial information, and exchange control restrictions impacting
foreign issuers. These risks may be heightened for securities of
companies located in, or with significant operations in, emerging market
countries. The ETFs in which the fund invests may invest in depositary
receipts, which may be less liquid than the underlying shares in their
primary trading market.
The ETFs in which the fund invests may hold investments that are
denominated in non-U.S. currencies, or in securities that provide
exposure to such currencies, currency exchange rates or interest rates
denominated in such currencies. Changes in currency exchange rates and
the relative value of non-U.S. currencies will affect the value of the
fund's investment and the value of fund shares.
The fund invests in securities of affiliated ETFs, which involves
additional expenses that would not be present in a direct investment in
such affiliated ETFs.
The fund currently has fewer assets than larger funds, and like other
relatively new funds, large inflows and outflows may impact the fund's
market exposure for limited periods of time.
The fund is classified as “non-diversified” and may invest a larger
percentage of its assets in the securities of a smaller number of
issuers. As a result, the fund may be more susceptible a single economic
or regulatory occurrence affecting these issuers, experience increased
volatility and be highly concentrated in certain issuers.
First Trust Advisors L.P. is the adviser to the fund. First Trust
Advisors L.P. is an affiliate of First Trust Portfolios L.P., the fund's
distributor.
The fund is not sponsored, endorsed, sold or promoted by DWA. DWA makes
no representation or warranty, express or implied, to the owners of the
fund or any member of the public regarding the advisability of trading
in the fund. DWA’s only relationship to First Trust is the licensing of
certain trademarks and trade names of DWA and of the index, which is
determined, composed and calculated by DWA without regard to First Trust
or the fund.
Investors should review all relevant offering materials, including
all applicable risk factors, and should consult with financial and tax
advisors relating to tax and other consequences of investing in a
particular security prior to making an investment.
View source version on businesswire.com: http://www.businesswire.com/news/home/20150522005921/en/
Contacts:
First Trust
Ryan Issakainen
(630) 765-8689
RIssakainen@FTAdvisors.com
Source: First Trust Advisors L.P.
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