First Trust Advisors L.P. (FVC issuer) employs an indexing investment strategy for its Fund, which typically allocates at least 80% of its net assets to exchange-traded funds (ETFs) constituting the Index. Managed by First Trust Advisors L.P., the Fund endeavors to replicate the Index's performance before expenses. Developed by Dorsey Wright & Associates, LLC, and maintained by Nasdaq, Inc., the Index follows a proprietary methodology, evaluating the performance of various sector and industry-based ETFs to identify those with the highest momentum. Through relative strength analysis, the Index selects five top-ranking ETFs for inclusion, ensuring potential outperformance within the sector. Additionally, the Index may incorporate the First Trust Enhanced Short Maturity ETF (FTSM) based on its relative strength ranking within the ETF universe. The Fund's portfolio changes align with Index adjustments, potentially resulting in concentrated investments in specific sectors or jurisdictions. As of December 31, 2023, the Index comprised select First Trust ETFs, reflecting the Fund's evolving investment landscape. FTSM, within the Index, focuses on current income and capital preservation through investments in various fixed and variable rate debt securities, with an emphasis on short-term duration.
FVC Dividend, managed by First Trust Advisors L.P., is a fund designed to provide investors with a steady income stream through dividend-paying stocks. The fund aims to invest primarily in companies that demonstrate strong dividend growth potential and sustainable payout ratios. By employing a dividend-focused investment strategy, FVC Dividend seeks to deliver attractive yields to its investors while also considering the potential for capital appreciation. With a focus on dividend sustainability and growth, the fund aims to provide a reliable source of income over the long term, making it an appealing option for income-oriented investors seeking both stability and growth in their portfolios.
FVC Tracking, managed by First Trust Advisors L.P., is a fund designed to closely mirror the performance of a specific benchmark or index. With an investment approach rooted in indexing, FVC Tracking aims to replicate the returns of its chosen index before accounting for fees and expenses. The fund typically invests at least 80% of its net assets in a portfolio of securities that closely resemble those found within the target index. By doing so, FVC Tracking provides investors with a cost-effective way to gain exposure to a particular market segment or asset class without the need for active management. This passive investment strategy aims to capture the returns of the underlying index, making FVC Tracking an attractive option for investors seeking broad market exposure and consistent performance in line with a chosen benchmark.
FVC Correlation, managed by First Trust Advisors L.P., is a fund that focuses on the relationship between different asset classes or securities within its portfolio. This fund aims to invest in assets that have low correlations with each other, meaning they tend to move independently or inversely of one another. By diversifying across assets with low correlations, FVC Correlation seeks to reduce overall portfolio volatility and potentially enhance risk-adjusted returns. The fund's investment strategy involves selecting a mix of assets that have historically exhibited different performance patterns under various market conditions. Through this approach, FVC Correlation aims to provide investors with a portfolio that may offer greater stability and resilience during times of market turbulence, making it a valuable component for investors seeking to manage risk within their investment portfolios.
FVC Sector, overseen by First Trust Advisors L.P., is a fund that specializes in investing in specific sectors or industries within the market. This fund seeks to capitalize on opportunities presented by the performance of individual sectors or industries by focusing its investments in those areas demonstrating strong growth potential or favorable market conditions. FVC Sector employs a targeted investment strategy, allocating its assets to sectors or industries that are expected to outperform the broader market or exhibit robust fundamentals. By concentrating its investments in select sectors, FVC Sector aims to potentially achieve higher returns compared to broad-market funds while also acknowledging the inherent risks associated with sector-specific investing. This fund may appeal to investors seeking to capitalize on the growth prospects of particular sectors or industries within the market.
FVC Exposure, managed by First Trust Advisors L.P., is a fund designed to provide investors with exposure to a specific investment theme, asset class, or market segment. This fund aims to capture the performance of a targeted investment strategy by investing in a diversified portfolio of securities aligned with the chosen theme or asset class. FVC Exposure may focus on areas such as emerging markets, sustainable investing, or innovative technologies, among others, depending on the fund's stated objective. By concentrating on a particular investment theme or asset class, FVC Exposure offers investors the opportunity to gain targeted exposure to areas of the market that exhibit strong growth potential or present unique opportunities. This fund may be suitable for investors seeking to complement their existing portfolios with exposure to specific investment themes or asset classes in pursuit of diversification or potential outperformance.
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