2024-04-15 07:00:00 ET
Summary
- First Trust Dorsey Wright Focus 5 ETF is a fund-of-funds managed by First Trust that invests only in other First Trust ETFs.
- Here, I review the FV ETF and perform several comparisons to other ETFs commonly held by investors.
- Based on comparing the FV ETF against two index-based ETFs and then one momentum-investing ETF, I see little, if any, value in holding this ETF, thus my Sell rating.
Introduction
This article will examine a Fund-of-Funds ETF managed by First Trust who invests only in other First Trust country/sector ETFs, the First Trust Dorsey Wright Focus 5 ETF ( FV ), which was last reviewed on Seeking Alpha in late 2022, receiving a Hold rating. Some FOFs just provide an investor with an easy means of holding all the other ETFs that mangers have in equal amounts, and the only "black box" is how often the FOF balances its holdings back to the preferred weights. First Trust has taken a different approach with their "black box"; otherwise, the FV ETF would hold dozens of other ETFs, minimizing the chance that this ETF would generate any Alpha for its investors....
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For further details see:
FV: Examining The First Trust Dorsey Wright FOF ETF