First Trust, one of the largest issuers of smart beta ETFs, recently launched three First Trust Dorsey Wright Momentum Plus ETFs.
Included in that group is a new replacement for the fund formerly known as the First Trust RBA Quality Income ETF (NasaqGM: QINC). That fund is now the First Trust Dorsey Wright Momentum & Dividend ETF (Nasdaq: DDIV).
“Prior to September 6, 2018, the First Trust Dorsey Wright Momentum & Dividend ETF’s investment objective was to seek to track the Richard Bernstein Advisors Quality Income Index. The fund, formerly known as the First Trust RBA Quality Income ETF, previously traded under the ticker symbol QINC,” according to a statement from First Trust.
The new ETFs from Illinois-based First Trust follow benchmarks that “are designed to select securities based on individual stock momentum using Dorsey, Wright & Associates’ (DWA) proprietary relative strength methodology, plus a fundamental factor (value, dividend yield or volatility),” said First Trust.
The Other New ETFs
The First Trust Dorsey Wright Momentum & Value ETF (Nasdaq: DVLU) and the First Trust Dorsey Wright Momentum & Low Volatility ETF (Nasdaq: DVOL) are the other new ETFs from First Trust.
DVLU’s 50 components are ranked by metrics including price-to-book, price-to-earnings, price-to-sales and price-to-cash flow. Nearly three-quarters of the new ETF’s holdings reside in the financial services, technology and industrial sectors. DVLU charges 0.60% per year, or $60 on a $10,000 investment.
DVOL’s 50 holdings are ranked based on volatility scores and the “securities are then weighted using the inverse of each security’s one-year trailing volatility, with greater weights given to securities with lower volatility scores,” according to First Trust.
Financial services names dominate that new ETF at 46.67% of the fund’s roster. DVOL also charges 0.60% per year.
For more ETF launches, visit the New ETFs category.