First Trust Dorsey Wright Momentum & Dividend ETF (DDIV) Fund Overview

First Trust Dorsey Wright Momentum & Dividend ETF (DDIV) Financial Services Profile

First Trust Dorsey Wright Momentum & Dividend ETF (DDIV) aims to mirror the Dorsey Wright Momentum Plus Dividend Yield Index, investing heavily in its constituent equities. With a focus on momentum and dividend yield, the fund offers exposure to a specific investment strategy within the asset management sector, targeting a 0.95 or better correlation with the index.

What Is the Investment Thesis for DDIV?

DDIV presents an investment opportunity for those seeking to track the Dorsey Wright Momentum Plus Dividend Yield Index. The ETF's strategy of investing at least 90% of its assets in the index's constituents aims for a high correlation (0.95 or better) with the index's performance. A key value driver is the potential for capital appreciation and income generation through the index's focus on momentum and dividend yield. Upcoming catalysts include potential shifts in market sentiment favoring momentum-driven strategies or increased investor demand for dividend-paying stocks. However, potential risks include the index's methodology underperforming in certain market conditions, such as periods of value stock outperformance or rising interest rates which could impact dividend stock valuations. The ETF's success is tied to the continued relevance and performance of the Dorsey Wright Momentum Plus Dividend Yield Index.

Based on FMP financials and quantitative analysis

DDIV Key Highlights

DDIV seeks to replicate the Dorsey Wright Momentum Plus Dividend Yield Index, offering exposure to a specific investment strategy.

• The fund invests at least 90% of its net assets in the equity securities comprising the Index, ensuring close alignment with its benchmark.
• DDIV targets a correlation of 0.95 or better between its performance and the Index's performance, demonstrating a commitment to tracking accuracy.
• The ETF's investment approach is indexing, aiming to replicate the Index's performance before fees and expenses.
• As of 2026-03-18, DDIV has a market capitalization of $0.07 billion, indicating its size and scale within the ETF market.

Who Are DDIV's Competitors?

DDIV is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are DDIV's Key Strengths?

Tracks a specific index focused on momentum and dividend yield.

• High allocation to index constituents ensures close tracking.
• Targets a high correlation with the index's performance.
• Offers a diversified way to access a rules-based investment strategy.

What Are DDIV's Weaknesses?

Performance is dependent on the underlying index's methodology.

• May underperform in certain market conditions.
• Management fees can impact overall returns.
• Small market cap may limit liquidity.

What Are the Key Risks for DDIV?

The index's methodology may underperform in certain market conditions, such as periods of value stock outperformance.

• Rising interest rates could negatively impact dividend stock valuations, affecting DDIV's performance.
• Competition from other ETFs could limit DDIV's growth potential.
• Changes in market sentiment towards momentum and dividend strategies could lead to outflows from the ETF.

What Are DDIV's Competitive Advantages?

• Index Tracking Expertise: First Trust has demonstrated expertise in tracking the Dorsey Wright Momentum Plus Dividend Yield Index, as evidenced by its targeted correlation of 0.95 or better.
• Established Brand: First Trust is a well-known and respected brand in the ETF market, which can attract investors and increase AUM.
• Rules-Based Investment Strategy: DDIV's rules-based investment strategy provides transparency and predictability, which can appeal to certain investors.

What Does DDIV Do?

The First Trust Dorsey Wright Momentum & Dividend ETF (DDIV) operates within the asset management industry, specifically focusing on replicating the performance of the Dorsey Wright Momentum Plus Dividend Yield Index. Formerly known as the First Trust RBA Quality Income ETF, DDIV's investment strategy centers around mirroring the price and yield of its benchmark index, before fees and expenses. The ETF was designed to provide investors with exposure to a portfolio of equity securities selected based on momentum and dividend yield factors. DDIV invests at least 90% of its net assets, including investment borrowings, in the equity securities that comprise the Index. This high allocation ensures a close alignment between the ETF's performance and the index's movements. The fund employs an indexing investment approach, aiming to replicate the index's performance as accurately as possible. First Trust, the fund's investment advisor, targets a correlation of 0.95 or better (before fees and expenses) between the fund's performance and the index's performance. A correlation of 1.00 would represent perfect correlation. The Dorsey Wright Momentum Plus Dividend Yield Index itself is owned and was developed by Nasdaq, Inc., which acts as the Index Provider. This index serves as the foundation for DDIV's investment strategy, guiding the selection and weighting of the ETF's holdings. DDIV offers investors a way to access a rules-based investment strategy focused on momentum and dividend yield within a single investment vehicle.

What Products and Services Does DDIV Offer?

• Replicates the performance of the Dorsey Wright Momentum Plus Dividend Yield Index.
• Invests primarily in equity securities that comprise the Index.
• Employs an indexing investment approach to track the Index.
• Aims for a correlation of 0.95 or better with the Index's performance.
• Provides investors with exposure to a portfolio of stocks selected based on momentum and dividend yield factors.
• Offers a convenient and diversified way to access a rules-based investment strategy.

How Does DDIV Make Money?

• DDIV generates revenue through management fees charged to investors.
• The management fee is a percentage of the ETF's assets under management (AUM).
• Higher AUM translates to higher revenue for the ETF's sponsor, First Trust.

What Industry Does DDIV Operate In?

DDIV operates within the asset management industry, specifically in the exchange-traded fund (ETF) segment. The ETF market has experienced substantial growth in recent years, driven by increasing investor demand for low-cost, diversified investment vehicles. DDIV competes with other ETFs that track various indexes or employ different investment strategies. The competitive landscape includes both broad-based index ETFs and more specialized funds focused on specific factors or sectors. DDIV's focus on momentum and dividend yield differentiates it from some of its competitors, catering to investors seeking a particular investment approach.

Who Are DDIV's Key Customers?

• Retail investors seeking exposure to momentum and dividend yield strategies.
• Financial advisors using ETFs in client portfolios.
• Institutional investors looking for cost-effective index tracking.

DDIV Financials

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Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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