HDMV Profile
The First Trust Horizon Managed Volatility Developed International ETF is designed to provide investors with exposure to developed market equities while aiming to manage volatility. The fund seeks to achieve its investment objective by allocating at least 80% of its net assets, including any investment borrowings, to common stocks and depositary receipts of companies listed on non-U.S. exchanges. The selection process focuses on companies that are expected to exhibit low future volatility, as determined by the Sub-Advisor's analysis.
The ETF specifically targets developed markets outside of the United States, ensuring that it is diversified across multiple countries. Under normal market conditions, the fund will invest in at least three different countries, with a minimum of 40% of its net assets allocated to markets outside the U.S. This geographic diversification aims to mitigate risk and provide broader exposure to global equity markets.
The fund’s investment strategy involves selecting equities from developed markets that are anticipated to have lower volatility compared to their peers. This approach is intended to reduce the impact of market fluctuations on the fund’s performance, offering a more stable investment experience. By focusing on stocks with lower expected volatility, the fund aims to deliver more consistent returns and lower risk compared to broader international equity indices.
The First Trust Horizon Managed Volatility Developed International ETF is suitable for investors seeking to enhance their portfolios with international equities while managing volatility. Its focus on developed markets outside the U.S. and its strategic emphasis on low-volatility stocks are designed to provide a balance of international diversification and reduced exposure to market swings. This approach aims to offer a steady investment option with potential for capital growth and income generation in the global equity market.
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