Nasdaq Index Blog - Posts with tag of "Dorsey Wright"

Web Seminar Replay: Understanding the Dorsey Wright Indexes Methodology Updated: 6/23/2015

Dorsey, Wright & Associates, LLC, a Nasdaq Company, has been a financial industry leader in technical analysis and relative strength strategies for over 25 years. Join John Lewis, CMT, Senior Portfolio Manager, Dorsey Wright, and Dave Gedeon, Vice President, Nasdaq Global Indexes, for an in-depth look at the methodology behind some of the most well-known smart beta indexes in the world, which serve as the basis of ETFs with more than $8.2 billion in AUM.

This 30-minute seminar will provide an overview of Dorsey Wright’s relative strength strategies and a detailed look at the newly published methodology* of the following indexes:
  • Dorsey Wright Technical Leaders Index (DWTL)
  • Dorsey Wright Focus Five Index (DWANQFF)
  • Dorsey Wright International Focus Five Total Return (DWANQIFF)
  • DWA International Developed Markets Technical Leaders Index (DWADM) 
  • DWA International Emerging Markets Technical Leaders Index (DWAEM)
  • DWA Technical Leaders Small Cap Index (DWTLSC)
Thursday, June 18th
1:00 – 1:30 pm, ET
REGISTER NOW

Index In Focus: Dorsey Wright Focus Five Index By: Dave Gedeon
on 5/12/2015

The Dorsey Wright Focus Five Index launched in February 2014 and over the past year has outperformed the US markets by 13% on a price return basis. The Focus Five methodology is rooted in selecting the five highest ranked sector ETFs from First Trust’s ETF line-up based on the Dorsey Wright proprietary relative strength model. Relative strength is a momentum technique that relies on unbiased, unemotional and objective data, rather than biased forecasting and subjective research.


At its core, Focus Five is the embodiment of a sector rotation strategy and offers a broad market experience but enhances returns by only tracking the best performing sectors on a relative strength basis. Currently the sector rotation strategy is in Biotechnology, Internet, Consumer Staples, Health Care, and Consumer Discretion. It is clear that the market leader sectors are those focused on the individual – between consumer sectors and health care – and the individual has been a driving force on the market’s returns.

Focus Five has also generated this outperformance without generating significantly higher volatility than the broad market. The information ratio is a high 0.75 and the risk-adjusted return is significantly higher than the broad market.



March 2014 marked the one-year anniversary for the associated ETF, the First Trust Dorsey Wright Focus 5 ETF (FV).


Which five ETFs do you think should come into focus next?


*Source: Nasdaq as of May 8, 2015


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Nasdaq® and Nasdaq® are registered trademarks of The Nasdaq Group, Inc. The information contained above is provided for informational and educational purposes only, and nothing contained herein should be construed as investment advice, either on behalf of a particular security or an overall investment strategy. Neither The Nasdaq Group, Inc. nor any of its affiliates makes any recommendation to buy or sell any security or any representation about the financial condition of any company. Statements regarding Nasdaq-listed companies or Nasdaq proprietary indexes are not guarantees of future performance. Actual results may differ materially from those expressed or implied. Past performance is not indicative of future results. Investors should undertake their own due diligence and carefully evaluate companies before investing. ADVICE FROM A SECURITIES PROFESSIONAL IS STRONGLY ADVISED.

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