Dorsey Wright Relative Strength Top 50, Series 54
Dorsey, Wright & Associates (DWA) is a registered investment advisory firm whose business includes
- Professional management of equity
portfolios for investors.
- Investment research services for numerous
broker/dealers and large institutions around
The cornerstone of their approach is technical analysis, and in particular,
the law of supply and demand, which gives them the discipline to make timely
investment decisions. In their analysis, relative strength plays a very important
role. To put it simply, relative strength is a measure of a stock's performance
in relation to its peers. DWA believes it has refined its relative strength
investment approach, creating a valuable and robust tool for stock selection
that relies on unbiased, unemotional and objective data.
The Dorsey Wright Relative Strength Top 50 Series is a unit investment trust which invests in stocks
selected by DWA using their proprietary investment process and is designed to be held over the fixed
15-month term of the trust.
Portfolio Selection Process
Through the selection process, DWA seeks to identify those companies that they
believe are technical leaders within the marketplace.
Identify the Universe
DWA begins with the companies listed in the S&P
Measure Relative Strength Ratings
All of the securities in the
universe are scored on several measures of
relative strength. These measures rank securities
based on intermediate-term price performance
relative to a broad market benchmark, and
relative to the other securities in the universe.
Each security is given a score that allows DWA to
determine where it ranks relative to all other
securities in the universe with no subjectivity. Each security must meet a minimum relative strength
ranking score to be eligible for inclusion in the portfolio.
Determine the Portfolio's Sector Weighting Exposure
sector weightings are determined by a combination of current market weights and the relative strength
ranking of the securities within each sector. The goal is to achieve a portfolio of high relative strength
securities with an overall sector weighting close to current market weights.
Select the Portfolio
The final step is to select the top 50 companies for the portfolio
based on relative strength. The stocks are equally weighted within the portfolio.
This unit investment trust seeks above-average
capital appreciation; however, there is no
assurance the objective will be met.
|Not FDIC Insured Not Bank Guaranteed May Lose Value
You should consider the portfolio's investment objectives, risks, and
charges and expenses carefully before investing. Contact your financial professional
or call First Trust Portfolios L.P. at 1.800.621.1675 to request a prospectus,
which contains this and other information about the portfolio. Read it carefully
before you invest.
An investment in this unmanaged unit investment trust should be made
with an understanding of the risks involved with owning common stocks, such as an economic recession and
the possible deterioration of either the financial condition of the issuers of the equity securities or the general
condition of the stock market.
You should be aware that the portfolio is concentrated in stocks in the information technology sector which
involves additional risks, including limited diversification. The companies engaged in the information
technology sector are subject to fierce competition, high research and development costs, and their products
and services may be subject to rapid obsolescence. Technology company stocks, especially those which are
Internet-related, may experience extreme price and volume fluctuations that are often unrelated to their
Securities of non-U.S. issuers are subject to additional risks, including currency fluctuations, political risks,
withholding, the lack of adequate financial information, and exchange control restrictions impacting non-
An investment in a portfolio containing small-cap and mid-cap companies is subject to additional risks, as
the share prices of small-cap companies and certain mid-cap companies are often more volatile than those
of larger companies due to several factors, including limited trading volumes, products, financial resources,
management inexperience and less publicly available information.
Large capitalization companies may grow at a slower rate than the overall market.
As the use of Internet technology has become more prevalent in the course of business,
the trust has become more susceptible to potential operational risks through breaches
In February 2022, Russia invaded Ukraine which has caused and could continue to cause significant market disruptions and volatility within the markets in Russia, Europe, and the United States. The hostilities and sanctions resulting from those hostilities could have a significant impact on certain investments as well as performance.
The ongoing effects of the COVID-19 global pandemic, or the potential impacts of any future public health crisis, may cause significant volatility and uncertainty in global financial markets. While vaccines have been developed, there is no guarantee that vaccines will be effective against future variants of the disease.
The value of the securities held by the trust may be subject to steep declines or
increased volatility due to changes in performance or perception of the issuers.
This UIT is a buy and hold strategy and investors should consider their ability to hold the trust until maturity.
There may be tax consequences unless units are purchased in an IRA or other qualified plan.