For traders looking to execute in the overseas markets, there’s a new exchange-traded fund out there.
First Trust, an investment firm with $98 billion in assets under management, is now offering investors an international ETF that tracks an index based on a systematic momentum strategy.
First Trust will launch the First Trust Dorsey Wright International Focus 5 ETF (Symbol: IFV), on Wednesday, July 23. The ETF will be listed on Nasdaq.
IFV is designed to provide targeted exposure to the five First Trust international ETFs identified by the Dorsey, Wright & Associates (DWA) index methodology to offer investors the potential to outperform the other ETFs in the selection universe. First Trust international ETFs provide the universe for the index selection. Using DWA’s relative strength ranking system, the ETFs are compared to each other to determine inclusion. The top five ranking ETFs are included in the index and the relative strength analysis is conducted on a weekly basis with ETFs replaced when they fall sufficiently out of favor.
The index is rebalanced periodically so each position is equally weighted. DWA said in a release that it 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 and eliminate exposure to those countries or regions whose price action is sub-par relative to others.
“International investing has always been a passion of mine,” said Tom Dorsey, president and chief executive of Dorsey, Wright & Associates. “I am excited that we have collaborated with First Trust to bring a second ETF that captures the Dorsey Wright Focus Five methodology and now provides investors with a tactical international equity strategy.”
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. It offers investors a selection of unit investment trusts, exchange-traded funds, closed-end funds, mutual funds and separate managed accounts.
First Trust is based in Wheaton, Illinois.
