ETF Evaluator: First Trust Dorsey Wright Dynamic Foc 5 () Follow This ETF

First Trust Dorsey Wright Dynamic Foc 5 Overview

First Trust Dorsey Wright Dynamic Foc 5 (FVC) is a passively managed Allocation Tactical Allocation exchange-traded fund (ETF). First Trust launched the ETF in 2016.

The investment seeks investment results that correspond to the price and yield of an index called the Dorsey Wright Dynamic Focus Five TM Index. The fund will normally invest at least 80% of its net assets in the ETFs that comprise the index. The index is designed to provide targeted exposure to the five ETFs that the index Provider believes offer the greatest potential to outperform the other ETFs in the selection universe.

About First Trust Dorsey Wright Dynamic Foc 5 (FVC)

There are 7 members of the management team with an average tenure of 9.68 years: Daniel Lindquist (2016), Jon Erickson (2016), David McGarel (2016), Stan Ueland (2016), Chris Peterson (2016), Erik Russo (2021) and Roger Testin (2016). Management tenure is more important for actively managed ETFs than passive index ETFs.

The ETF has 2 primary benchmarks: S&P 500 (TR) (1970) index with a weighting of 100% and Dorsey Wright Dynamic Focus Five TR USD index with a weighting of 100%. First Trust Dorsey Wright Dynamic Foc 5 has 7 securities in its portfolio. The top 10 holdings constitute 100.0% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a diversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.

First Trust Dorsey Wright Dynamic Foc 5 is part of the Allocation global asset class and is within the Allocation ETF group. First Trust Dorsey Wright Dynamic Foc 5 has 3.2% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 96.7% There is 3.2% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). First Trust Dorsey Wright Dynamic Foc 5 has 0.1% of the portfolio in cash.

Assets Under Management

The fund has $104 million in total assets, which is below the $144 million average for the Tactical Allocation category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

FVC Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The First Trust Dorsey Wright Dynamic Foc 5 expense ratio is high compared to funds in the Tactical Allocation category. First Trust Dorsey Wright Dynamic Foc 5 has an expense ratio of 0.87%, which is 11% lower than its category average, making the fund expense ratio grade a C. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. First Trust Dorsey Wright Dynamic Foc 5 has a portfolio turnover rate of 168%, which indicates that it holds its assets around / 0.0 years. By way of comparison, the average portfolio turnover is 261% for the Tactical Allocation category.

Recently, in the month of July 2026, First Trust Dorsey Wright Dynamic Foc 5 returned -8.4%, which earned it a grade of F, as the Tactical Allocation category had an average return of -1.4%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.

First Trust Dorsey Wright Dynamic Foc 5 has a trailing yield of 1.37%, which is below the 2.15% category average. The fund normally distributes its income quarterly and its capital gains annually.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

First Trust Dorsey Wright Dynamic Foc 5 Grades

Year to date, the ETF has returned 10.1%, 2.7 percentage points better than the category, which translates into a grade of B. The fund has returned 13.5% over the past year (grade of D), 6.6% over the past three years (grade of F) and 3.4% per year over the past five years (grade of D) and 7.5% per year over the past 10 years (grade of B).

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