At a glance
DALI charges 0.91% a year, above the 0.86% average of the 7 funds most like it (the 6th cheapest of 8). It has $105.7M in assets, the 8th largest of that group; it paid 1.69% of its price in distributions over the past 12 months, quarterly. Over the past year it returned −4.2% with distributions reinvested (S&P 500: +11.5%), the weakest of those 8 funds; over three years it returned +6.7% a year. At its worst it fell 36.1% in the 2020 crash (S&P 500: 33.7%) and 20.2% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 10 months and 37 months after the lows.
The short version
First Trust Dorsey Wright DALI Equity ETF (DALI) is a fund of funds. It tracks the Nasdaq Dorsey Wright DALI Equity Index and holds only First Trust ETFs. A rules-based ranking moves the whole fund between a U.S. stock sleeve and an international stock sleeve. As of June 30, 2026, it held seven international funds. Its 0.91% expense ratio is high, and it has no bond or cash option.
Price history
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DALI -4.2% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| DALI official prospectus, to Dec 31, 2025 | — | +11.75% | — | +6.66% | — | +5.80% |
| DALI price data to Oct 27, 2026 | -3.9% | -4.2% | +6.7% | +2.1% | — | +4.7% |
- Over the year to Oct 27, 2026, DALI returned -4.2%, 8th of 8 among similar funds.
- Its 5-year annualized return was +2.1%.
- In the 2020 COVID crash it fell 36.1% and regained its old high 9.5 months after the low.
- Its worst full calendar year was 2023 (-8.5%); its best was 2019 (+25.4%).
- The deepest fall in its price history was 36.1% (Feb 19, 2020 to Mar 23, 2020), recovered by Jan 7, 2021.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | -3.9% | — |
| 2025 | +11.9% | +11.75% |
| 2024 | +19.9% | +20.02% |
| 2023 | -8.5% | -8.23% |
| 2022 | -8.1% | -8.31% |
| 2021 | +22.3% | +22.32% |
| 2020 | +4.5% | +4.73% |
| 2019 | +25.4% | +24.29% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 36.1% over that stretch · deepest drop along the way 36.1%, back to its old high 9.5 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 6.1% over that stretch · deepest drop along the way 20.2%, back to its old high 36.9 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.4200 | |
| 2025 | $0.1100 | +144.4% |
| 2024 | $0.0450 | -93.8% |
| 2023 | $0.7300 | +508.3% |
| 2022 | $0.1200 | +287.1% |
| 2021 | $0.0310 | -88.5% |
| 2020 | $0.2700 | +190.3% |
| 2019 | $0.0930 |
What's inside
As of Jun 30, 2026, the fund held 7 securities; the ten largest made up 100.02% of assets.
| Fund held | Weight | |
|---|---|---|
| First Trust Developed Markets ex-US AlphaDEX Fund | 17.80% | |
| First Trust Emerging Markets AlphaDEX Fund | 16.99% | |
| First Trust International Equity Opportunities ETF | 13.95% | |
| First Trust Germany AlphaDEX Fund | 13.05% | |
| First Trust Europe AlphaDEX Fund | 12.89% | |
| First Trust Eurozone AlphaDEX ETF | 12.86% | |
| First Trust Asia Pacific ex-Japan AlphaDEX Fund | 12.48% |
By country
United States 100.02%By asset type
Stocks 100.02%What changed recently
- Over the three months to Jun 30, 2026, investors withdrew a net $7.6M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +9.46%, +2.46%, -3.73%.
How it works
DALI tries to match the Nasdaq Dorsey Wright DALI Equity Index, which Nasdaq owns and built. The index holds only U.S.-listed ETFs, and the eligible funds are all run by First Trust Advisors, DALI's own advisor. A rules-based tool called D.A.L.I. ranks two asset classes, U.S. stocks and international stocks, to find the one with the stronger long-term trend. The index then copies the holdings of whichever "sleeve" ranks first. It checks the ranking twice a month, or once in December. It also skips certain switches into or out of international stocks around quarter ends.
Each sleeve puts 35% in two "core" First Trust AlphaDEX funds. In the U.S. sleeve these are large-cap growth and small-cap growth funds. In the international sleeve they are developed markets ex-US and emerging markets funds. The other 65% copies the holdings of a Dorsey Wright Focus Five index. Funds are equally weighted within each group and reset to their target weights each January, April, July and October.
As of June 30, 2026, DALI held seven international First Trust funds. The largest were First Trust Developed Markets ex-US AlphaDEX (17.8%) and First Trust Emerging Markets AlphaDEX (17.0%). A single switch can replace the whole portfolio, and portfolio turnover was 58%.
What it really costs
- DALI charges 0.91% a year, versus an average of 0.86% for the similar funds below (6th of 8, cheapest first).
- Of that, 0.3% is the management fee; the rest covers other fund expenses.
Structure and tax notes
- Invests in other funds rather than directly in stocks or bonds, so its holdings are those funds.
In a retirement portfolio
It is an all-stock tactical fund that can move entirely between U.S. and foreign markets, with a high cost and a 36.1% past drop.
DALI could add a rules-based tactical tilt to the stock side of a portfolio, but it always stays fully in stocks. It fell 36.1% between February 19 and March 23, 2020, and took about 9.5 months to recover. In 2022 it dropped 20.2% from its March peak and did not get back to that level until October 24, 2025, about 37 months later. It lost 8.31% in 2022 and 8.23% in 2023, two losing years in a row. Anyone selling shares for spending money during those stretches would have locked in losses. The trailing 12-month yield was 1.69% as of October 27, 2026, paid quarterly, so this is not an income fund. The 0.91% expense ratio is about three times the 0.30% management fee, because DALI also pays a share of its underlying funds' costs. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want rules to choose between U.S. and international stocks, and who accept that every holding is a First Trust ETF.
- Those adding a small satellite position next to core holdings, who can live with drops like the 36.1% fall in early 2020.
- People who believe trend-based rotation between U.S. and foreign stocks pays off over full cycles, despite losses in both 2022 and 2023.
Look elsewhere if
- Cost-conscious investors: the 0.91% expense ratio adds underlying fund fees on top of a 0.30% management fee.
- Retirees who need income: the trailing yield was 1.69% as of October 27, 2026, paid quarterly.
- Anyone wanting downside protection: there is no bond or cash sleeve, and recovering from the 2022 drop took about 37 months.
Close alternatives
Matched by other buffer (defined-outcome) funds, largest first.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| DALI this fund | 0.91% | $105.7M | -4.2% | +6.7% |
| BUFR FT Vest Laddered Buffer ETF | 0.95% | $10.49B | +11.6% | +16.8% |
| BUFD FT Vest Laddered Deep Buffer ETF | 0.95% | $2.04B | +9.5% | +13.9% |
| PJAN Innovator U.S. Equity Power Buffer ETF - Ja… | 0.79% | $1.44B | +10.5% | +14.8% |
| PDEC Innovator U.S. Equity Power Buffer ETF - De… | 0.79% | $984.1M | +11.6% | +14.9% |
| FDEC FT Vest US Equity Buffer ETF - December | 0.85% | $1.31B | +12.9% | +18.5% |
| FJAN FT Vest US Equity Buffer ETF - January | 0.85% | $1.47B | +12.3% | +17.4% |
| FFEB FT Vest U.S. Equity Buffer Fund - February | 0.85% | $1.42B | +12.9% | +18.6% |
Questions investors ask
What does the DALI ETF hold?
DALI holds other ETFs, not individual stocks, and all of them are First Trust funds. As of June 30, 2026, it owned seven international stock funds: First Trust Developed Markets ex-US AlphaDEX (17.8%), Emerging Markets AlphaDEX (17.0%), International Equity Opportunities (13.9%), Germany AlphaDEX (13.1%), Europe AlphaDEX (12.9%), Eurozone AlphaDEX (12.9%) and Asia Pacific ex-Japan AlphaDEX (12.5%). When its ranking favors U.S. stocks, it switches to a U.S. lineup instead.
How does DALI decide between U.S. and international stocks?
It follows the Nasdaq Dorsey Wright DALI Equity Index. That index uses a rules-based tool called D.A.L.I. to rank U.S. stocks against international stocks, and it holds whichever sleeve ranks first. The ranking is checked twice a month, or once in December. Each sleeve puts 35% in two core AlphaDEX funds and 65% in the holdings of a Dorsey Wright Focus Five index. The fund is always in one stock sleeve or the other. The prospectus describes no bond or cash option.
Does DALI pay a dividend?
Yes. DALI pays distributions quarterly. Over the 12 months to October 27, 2026, it paid about $0.46 per share, a trailing yield of 1.69%. The payments can change from quarter to quarter. A yield that low means DALI is built for stock growth, not income. Retirees who rely on steady payouts would need other sources of cash flow.
Why is DALI's expense ratio so high?
Its prospectus filed April 30, 2026 lists an expense ratio of 0.91%, while DALI's own management fee is 0.30%. The gap comes from the fund-of-funds structure: DALI also pays its share of the fees of the First Trust ETFs it owns. The prospectus flags this as a conflict of interest. First Trust earns fees on those underlying funds too, so it has a financial reason to pick its own ETFs.
How has DALI performed?
Results have been uneven. As of December 31, 2025, DALI's average annual return was 11.75% over one year, 6.66% over five years and 5.8% since it launched in May 2018. Calendar-year results ranged from a 24.29% gain in 2019 to losses of 8.31% in 2022 and 8.23% in 2023. Based on share price, it returned -4.2% over the year to October 27, 2026, and 6.7% a year over three years.