First Trust Announces That Assets Now Exceed $1 Billion in the First Trust Dorsey Wright Focus 5 ETF
December 01 2014 - 4:25PM
Business Wire
First Trust Advisors L.P. (“First Trust”), a leading ETF
provider and asset manager, announced today that the First Trust
Dorsey Wright Focus 5 ETF (NASDAQ: FV) has reached over $1 billion
in assets under management. As of November 19, 2014, the fund is
the second fastest growing ETF that launched this year, according
to Morningstar.
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 Focus Five Index (“the
index”). The index was developed by Dorsey, Wright & Associates
(DWA) to provide targeted exposure to the five First Trust sector
and industry based ETFs that DWA believes offer the greatest
potential to outperform the other ETFs in the selection universe.
The index is constructed using DWA’s relative strength ranking
system, comparing the universe of First Trust sector and industry
ETFs to each other to determine inclusion by measuring each ETF's
price momentum relative to other ETFs in the universe.
“The First Trust Dorsey Wright Focus 5 ETF provides an
efficient, scalable way for financial advisors and their clients to
gain exposure to a sector rotation strategy, combining the insights
of Dorsey Wright’s research on relative strength with First Trust’s
robust lineup of sector and industry ETFs,” said Ryan Issakainen,
CFA, Senior Vice President, Exchange-Traded Fund Strategist at
First Trust.
“We would like to thank all of you that have helped FV reach
this significant milestone. We truly appreciate your unwavering
support,” said Tom Dorsey, President and CEO of Dorsey, Wright
& Associates. “We appreciate the opportunity to work with First
Trust to educate and support the financial advisors about the use
of ETFs and the potential benefits these investment solutions bring
to investors.”
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 $101 billion as of
October 31, 2014 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.ftportfolios.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 to obtain a prospectus or
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.
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.
Risk Considerations
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 are likely to be concentrated
in a single industry or sector. An ETF concentrated in a single
industry or sector presents more risks than a fund that is broadly
diversified over several industries or sectors.
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 may 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 non-U.S. 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 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 is classified as “non-diversified” and may invest a
relatively high percentage of its assets in a limited number of
issuers. As a result, the fund may be more susceptible to a single
adverse economic or regulatory occurrence affecting one or more of
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 Dorsey
Wright. Dorsey Wright 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. Dorsey Wright’s
only relationship to First Trust is the licensing of certain
trademarks and trade names of Dorsey Wright and of the index, which
is determined, composed and calculated by Dorsey Wright without
regard to First Trust or the fund.
First TrustRyan Issakainen, (630)
765-8689RIssakainen@FTAdvisors.com
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