(DVOL) First Trust Dorsey Wright - Ratings and Ratios

The First Trust Dorsey Wright Momentum & Low Volatility ETF (NASDAQ:DVOL) is designed to track the performance of a rules-based equity index. The fund typically invests at least 90% of its net assets in the equity securities of the index. The index is constructed to identify 50 stocks from the NASDAQ U.S. Large Mid Cap Index TM, focusing on those with the lowest volatility while maintaining high relative strength. This approach aims to balance stability with momentum, targeting stocks that exhibit strong upward movement while minimizing market fluctuations.

From a technical standpoint, DVOL has shown a slight upward trend in its short-term moving averages, with the 20-day SMA at 35.64 and the 50-day SMA at 34.99, indicating moderate price stability. The 200-day SMA at 33.08 suggests longer-term upward momentum. The Average True Range (ATR) of 0.32 reflects low volatility, aligning with the funds investment strategy. The average 20-day volume of 3881 shares indicates limited trading activity, which may impact liquidity for large trades. With an AUM of $58.32M, the fund operates with modest assets under management, which may affect its market impact but could also allow for more agile portfolio adjustments.

Looking ahead, DVOL is expected to maintain its focus on low-volatility, high-momentum securities. Over the next three months, the funds price movement is likely to remain stable, with potential for slight upside driven by its momentum component. The low ATR suggests continued volatility suppression, making it appealing for risk-averse investors. However, the relatively low trading volume may result in occasional price gaps during periods of high market volatility. Overall, DVOL is positioned to deliver returns in line with its balanced strategy of growth and stability.