First Trust Dorsey Wright Focus 5 ETF (02F5)

Overview

The fund represents a strategic investment approach, focusing primarily on allocating its assets across a selection of exchange-traded funds (ETFs). These ETFs are meticulously chosen based on their potential to outperform within the market, adhering to a disciplined investment philosophy that mandates at least 90% of the fund's net assets—factoring in borrowed investments—be invested in the selected ETFs. The underlying index that guides the fund's investments is engineered to tactically expose investors to five sector-based ETFs from First Trust, identified by the index provider as having superior outperformance potential in comparison to other options within the selection universe. Essential to this selection process are criteria concerning trading volume and liquidity, ensuring that each chosen ETF meets high standards of market participation and ease of transaction.

Products and Services

• Strategic ETF Investment

  This product is centered on investing a dominant portion of the fund's assets into exchange-traded funds (ETFs) that are part of a meticulously curated index. The investment strategy focuses on ETFs believed to hold the most promise for outperformance, based on a series of metrics including but not limited to trading volume and liquidity benchmarks. This approach allows for targeted exposure to specific market sectors through the lens of highly regarded First Trust sector-based ETFs.

• Sector-Based ETF Selection

  At the core of the fund's strategy is the selection of five First Trust sector-based ETFs, identified through a robust evaluation process. The determination of these ETFs as the investment focus hinges on their potential for market outperformance. This selection is guided by an underlying index tailored to spotlight ETFs fulfilling the fund's investment criteria, including requisite trading volume and liquidity, to ensure not only strategic growth possibilities but also maintain transactional efficiency and flexibility.