IFV Profile
The First Trust Dorsey Wright International Focus 5 ETF (IFV) is an exchange-traded fund that seeks to provide investors with exposure to a concentrated portfolio of international stocks. The ETF invests in a diversified group of five exchange-traded funds (ETFs) that are selected and weighted based on relative strength and momentum.
The underlying ETFs that make up IFV are selected and weighted using a rules-based methodology developed by Dorsey Wright & Associates. This methodology uses technical analysis to identify trends in the performance of international equity ETFs and to determine which ones are likely to outperform the others over the next several months.
By investing in a concentrated portfolio of international equity ETFs that are expected to outperform their peers, IFV aims to provide investors with a potentially higher return than they would get from a broader, more diversified portfolio. However, this strategy can also increase the risks associated with investing in international equities, as the ETF is heavily concentrated in a small number of stocks.
Investing in IFV or any other ETF carries risks, including the potential for loss of principal, market volatility, and the passibility that the ETF may not perform as expected. Before investing, investors should carefully consider their investment objectives, risk tolerance, and financial situation, as well as the ETF's underlying holdings, fees, and expenses. It is also generally recommended that investors diversify their portfolios by investing in a variety of assets to help manage risk.
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