RFEM Profile
The First Trust RiverFront Dynamic Emerging Markets ETF is designed to provide investors with exposure to a diversified portfolio of equity securities from emerging market companies. The fund invests at least 80% of its net assets, including any borrowings for investment purposes, in such equities. This includes investments in common stock, depositary receipts, and shares of real estate investment trusts (REITs), encompassing both common and preferred shares. By focusing on emerging markets, the fund seeks to capture growth potential from rapidly expanding economies.
In addition to direct equity investments, the fund employs forward foreign currency exchange contracts and currency spot transactions to manage and hedge its exposure to currency fluctuations. This strategy helps mitigate the risks associated with the volatility of emerging market currencies, ensuring more stable returns despite market uncertainties. The fund's approach to currency management is integral to its strategy, allowing it to effectively navigate the complex foreign exchange environment in emerging markets.
The ETF's investment universe includes small, mid, and large capitalization companies, providing broad exposure across various sectors and market capitalizations within emerging economies. This diverse approach aims to balance the risk and reward profile of the fund, offering potential growth opportunities from a wide range of emerging market companies while managing inherent risks.
The fund's active management style and focus on emerging markets allow it to adapt to changing market conditions and capitalise on opportunities that arise. By leveraging forward-looking economic analysis and dynamic investment strategies, the First Trust RiverFront Dynamic Emerging Markets ETF aims to deliver attractive long-term returns for investors seeking exposure to emerging market equities while managing currency and market risks.
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