(DVOL) First Trust Dorsey Wright - Ratings and Ratios

The First Trust Dorsey Wright Momentum & Low Volatility ETF (DVOL) is an exchange-traded fund that employs a rules-based investment strategy, focusing on 50 large and mid-cap U.S. stocks that exhibit a unique blend of low volatility and high relative strength.

By investing at least 90% of its net assets in the equity securities comprising its underlying index, DVOL provides a diversified portfolio that aims to balance risk and potential returns. The funds underlying index is derived from the NASDAQ U.S. Large Mid Cap Index, selecting the 50 stocks with the lowest volatility while maintaining high relative strength, thereby attempting to mitigate potential downsides while capturing upside momentum.

Analyzing the funds recent performance and technical indicators, we observe a positive trend. With a current price of $35.72, DVOL is above its 20-day, 50-day, and 200-day simple moving averages (SMA20: $34.83, SMA50: $34.60, SMA200: $34.11), indicating a bullish signal. The Average True Range (ATR) of 0.68, representing a 1.91% daily volatility, suggests that the fund is experiencing moderate daily price movements.

Considering the funds assets under management (AUM) stand at $63.18 million, it has a relatively modest size compared to some of its peers. However, its size does not necessarily hinder its ability to track its underlying index effectively.

Forecasting DVOLs future performance involves analyzing both its technical and fundamental data. Given its current trend and technical indicators, if the overall market continues to trend upwards and volatility remains relatively low, DVOL is likely to continue its upward trajectory. A potential target could be near its 52-week high of $36.28, assuming the current momentum is sustained. Conversely, a decline below its 50-day SMA could signal a potential correction, with support near its 200-day SMA at $34.11.

To make an informed investment decision, its crucial to monitor the funds tracking efficiency, fees, and how it responds to changes in market conditions, alongside a broader analysis of the overall market and economic trends.