DVOL | First Trust Dorsey Wright Momentum & Low Volatility ETF

DVOL ISSUER

First Trust Advisors L.P., as the issuer of DVOL, a fund designed to mirror the performance of the Nasdaq US Large Mid CapTM Index, maintains a strategic investment approach that emphasizes replicating the index's performance while minimizing fees and expenses. With at least 90% of its net assets invested in index securities, DVOL employs a rules-based equity index strategy developed by Nasdaq, Inc. The index focuses on 50 stocks exhibiting the lowest volatility levels combined with high relative strength, determined through a momentum-based investment strategy. Utilizing point and figure charting and relative strength calculations, securities showing favorable momentum signals are selected for inclusion in the index. The weighting methodology favors securities with lower volatility, akin to a market cap weighting approach. DVOL may also invest in REITs and is subject to quarterly rebalancing, potentially leading to a higher portfolio turnover rate. As of December 31, 2023, significant investments were held in financial and industrial companies, although the fund's composition may vary over time, exposing it to risks associated with different jurisdictions or sectors.

DVOL DIVIDEND

DVOL Dividend, managed by First Trust Advisors L.P., is structured to track the performance of the Nasdaq US Large Mid CapTM Index, with an investment strategy aimed at replicating index performance while minimizing costs. The fund typically invests at least 90% of its assets in securities comprising the Index, focusing on 50 stocks demonstrating the lowest volatility levels alongside high relative strength. Employing momentum-based investment principles, DVOL Dividend utilizes point and figure charting and relative strength calculations to identify securities exhibiting favorable momentum signals for inclusion. Additionally, the fund may invest in real estate investment trusts (REITs), adding diversification to its portfolio. As with DVOL, the index undergoes quarterly rebalancing, potentially leading to increased portfolio turnover. As of December 31, 2023, DVOL Dividend held significant investments in financial and industrial sectors, although its composition may change over time, exposing it to varied risks across different jurisdictions or sectors.

DVOL TRACKING

DVOL Tracking, under the management of First Trust Advisors L.P., is tailored to mirror the performance of the Nasdaq US Large Mid CapTM Index with precision and efficiency. With a primary objective of replicating index performance while minimizing expenses, the fund invests at least 90% of its assets in securities constituting the Index. Employing an indexing investment approach, DVOL Tracking utilizes a rigorous methodology developed by Nasdaq, Inc. The index focuses on selecting 50 stocks displaying the lowest levels of volatility while maintaining high relative strength, determined through momentum-based strategies. Utilizing sophisticated techniques such as point and figure charting and relative strength calculations, securities exhibiting favorable momentum signals are included in the index. The fund may also incorporate real estate investment trusts (REITs) for added diversification. Quarterly rebalancing ensures alignment with the index's evolving composition, potentially leading to increased portfolio turnover. As of December 31, 2023, DVOL Tracking maintained significant investments in financial and industrial sectors, although its asset allocation may evolve over time, exposing it to diverse risks across different jurisdictions or sectors.

DVOL CORRELATION

DVOL Correlation, managed by First Trust Advisors L.P., is engineered to closely track the performance of the Nasdaq US Large Mid CapTM Index while focusing on correlation dynamics within the broader market context. With a commitment to replicating index performance while minimizing costs, the fund invests at least 90% of its assets in securities comprising the Index. Employing a meticulously crafted indexing investment strategy, DVOL Correlation leverages sophisticated methodologies developed by Nasdaq, Inc. The index strategically selects 50 stocks demonstrating the lowest volatility levels combined with high relative strength, assessed through momentum-based criteria. Utilizing advanced techniques such as point and figure charting and relative strength calculations, securities showing favorable momentum signals are incorporated into the index. Additionally, DVOL Correlation may integrate real estate investment trusts (REITs) to enhance portfolio diversification. Quarterly rebalancing ensures alignment with the index's evolving composition, potentially leading to increased portfolio turnover. As of December 31, 2023, the fund maintained significant investments in financial and industrial sectors, although its asset allocation may vary over time, exposing it to diverse risks across different jurisdictions or sectors. By closely monitoring market correlations, DVOL Correlation seeks to provide investors with a reliable vehicle for tracking index performance while managing risk effectively.

DVOL SECTOR

DVOL Sector, managed by First Trust Advisors L.P., is tailored to track the performance of the Nasdaq US Large Mid CapTM Index with a focus on sector-specific dynamics. Committed to replicating index performance while minimizing expenses, the fund invests at least 90% of its assets in securities comprising the Index. Employing a strategic indexing investment approach, DVOL Sector utilizes methodologies developed by Nasdaq, Inc. The index selects 50 stocks exhibiting the lowest volatility levels alongside high relative strength, assessed through momentum-based strategies. Employing advanced techniques like point and figure charting and relative strength calculations, securities displaying favorable momentum signals are included. Additionally, DVOL Sector may incorporate real estate investment trusts (REITs) to bolster sector diversification. Quarterly rebalancing ensures alignment with the index's changing sector composition, potentially leading to increased portfolio turnover. As of December 31, 2023, the fund maintained significant investments in financial and industrial sectors, although its sector exposure may evolve over time, exposing it to varied risks across different industries. By closely monitoring sector-specific dynamics, DVOL Sector aims to provide investors with a reliable means to track index performance while managing sector-specific risks effectively.

DVOL EXPOSURE

DVOL Exposure, managed by First Trust Advisors L.P., is designed to provide investors with targeted exposure to the Nasdaq US Large Mid CapTM Index while managing risk efficiently. The fund prioritizes replicating index performance while minimizing expenses, investing at least 90% of its assets in securities comprising the Index. Employing a strategic indexing investment approach, DVOL Exposure utilizes methodologies developed by Nasdaq, Inc. The index selects 50 stocks demonstrating the lowest volatility levels and high relative strength, assessed through momentum-based strategies. Leveraging advanced techniques such as point and figure charting and relative strength calculations, securities exhibiting favorable momentum signals are included. Additionally, DVOL Exposure may incorporate real estate investment trusts (REITs) to enhance portfolio diversification. Quarterly rebalancing ensures alignment with the index's evolving composition, potentially leading to increased portfolio turnover. As of December 31, 2023, the fund maintained significant investments in financial and industrial sectors, though its sector exposure may change over time, allowing investors to benefit from targeted exposure to the Nasdaq US Large Mid CapTM Index while effectively managing risk.