Investment Objective/Strategy - The First Trust Dorsey Wright Tactical Core Portfolio (the “Fund”) seeks to provide total return.
There can be no assurance that the Fund's investment objectives will be achieved.
The Fund seeks to achieve its investment objective by investing, under normal market conditions, at least 80% of its net assets (plus any investment borrowings) in exchange-traded funds ("ETFs") and cash and cash equivalents that comprise the Dorsey Wright Tactical Tilt Moderate Core Index (the "Index"). It is expected that a majority of the ETFs in which the Fund invests will be advised by First Trust.
The Index is owned and was developed by Dorsey, Wright & Associates (the "Index Provider"). The Index is constructed pursuant to the Index Provider's proprietary methodology, which takes into account the performance of four distinct assets classes relative to one another. The Index is designed to strategically allocate its investments among (i) domestic equity securities; (ii) international equity securities; (iii) fixed income securities; and (iv) cash and cash equivalents (represented by the First Trust Enhanced Short Maturity ETF ("FTSM") which is not a money market fund, but an ultra-short duration ETF that the Index allocates to for this asset class.). The Index will generally gain exposure to these asset classes by investing in ETFs. The Index Provider has retained Nasdaq, Inc. ("Nasdaq"), to calculate and maintain the Index.
The Index will utilize the Dynamic Asset Level Investing ("DALI") asset allocation process developed by the Index Provider in order to allocate assets over the four asset classes. The asset class allocations are determined using a relative strength methodology that is based upon each asset class's market performance and characteristics that offer the greatest potential to outperform the other asset classes at a given time. Relative strength is a momentum technique that relies on unbiased, unemotional and objective data, rather than biased forecasting and subjective research. Relative strength is a way of recording historic performance patterns, and the Index Provider uses relative strength signals as a trend indicator for current momentum trends of each asset class against the others.
The Fund offers its shares only to separate accounts of insurance companies that offer variable annuity and variable life insurance products.
Fiscal Year-End | 12/31 |
Inception Date | 10/30/2015 |
Inception NAV | $10.00 |
Gross Expense Ratio (5/3/2021) | 1.74% |
Net Expense Ratio | 1.30% |
Expenses are capped contractually at 1.30% per year, at least through May 01, 2023. Please see the Fees and Expenses of the Fund section in the fund’s prospectus for more details.
Net Asset Value1 | $10.94 |
Dividend Frequency | Semi-Annual |
NAV 52-Week High/Low | $15.76 / $10.70 |
|
Asset Class |
Percent |
|
Domestic Equity ETFs
|
75.26%
|
|
Fixed-Income ETFs
|
18.62%
|
|
International Equity ETFs
|
4.63%
|
|
Cash & Cash Equivalents
|
1.49%
|
Past performance is not indicative of future results.
Bloomberg US Aggregate Bond Index - The Index covers the investment-grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, MBS, ABS, and CMBS.
S&P 500 Index - The Index is an unmanaged index of 500 companies used to measure large-cap U.S. stock market performance.
Blended Benchmark - The Benchmark return is split between the Bloomberg U.S. Aggregate Bond Index (40%) and the S&P 500 Index (60%). Broad Blended Benchmark returns are calculated by using the monthly return of the two indices during each period shown above. At the beginning of each month the two indices are rebalanced to a 60-40 ratio to account for divergence from that ratio that occurred during the course of each month. The monthly returns are then compounded for each period shown above, giving the performance for the Broad Blended Benchmark for each period shown above.