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First Trust Dorsey Wright Momentum & Low Volatility ETF holds 50 stocks with high price relative strength and low price volatility. DVOL is overweight in financials, but the sector breakdown may vary with sector momentum. Since its inception, DVOL has underperformed the Russell 1000 in return and Sharpe ratio, with a deeper maximum drawdown.
The tech-focused Nasdaq officially entered bear market territory on April 4, 2025, falling over 20% from its December peak. The plunge came as Wall Street grew increasingly anxious about the economic health amid President Donald Trump's tariff announcement.
Following on last week's top 10 list, this week's blog focuses on ETFs related to the stocks in the list. For this week, we then screened for ETFs that contained each stock that were also rated 5 (Strong Buy), focusing on the ETF that held the stock in the greatest percentage, then traveling down the lists of ETFs that held it until we found one rated 5. This resulted in a list of Strong Buy 5 rated ETFs that held at least one Strong Buy 5 rated stock as a major holding.
We backtest the discrete volatility model from Lazard Asset Management for a VXX trading strategy. The additional layer of specification yields a stellar return in the in-sample period, but disappoints in the out-of-sample period.
This is a weekly series focused on analyzing the previous week’s economic data releases. The objective is to concentrate on leading indicators of economic activ
Low-beta products exhibit greater levels of stability than their market-sensitive counterparts and will usually lose less when the market is crumbling.
Investors seeking to remain invested in the equity world could consider low beta ETFs.