First Trust Dorsey Wright Momentum & Low Volatility ETF

First Trust Dorsey Wright Momentum & Low Volatility ETF (DVOL) is an index fund that holds 50 large and midsize US stocks. They are picked by Nasdaq's Dorsey Wright Momentum Plus Low Volatility Index for strong price trends and calm daily price swings. It may appeal to investors who want a rules-based, steadier stock tilt. But it costs 0.60% a year, above the 0.41% average for similar funds, and it trades heavily, with 152% turnover.

• Over the year to Oct 27, 2026, DVOL returned +3.9%, 6th of 7 among similar funds.
• Its 5-year annualized return was +5.2%.
• In the 2020 COVID crash it fell 38% and regained its old high 8.3 months after the low.
• Its worst full calendar year was 2022 (-16.1%); its best was 2021 (+30.1%).
• The deepest fall in its price history was 38.3% (Feb 18, 2020 to Mar 23, 2020), recovered by Dec 17, 2020.

As of Jun 30, 2026, the fund held 50 securities; the ten largest made up 30.35% of assets.

By sector

• Over the three months to Jun 30, 2026, investors withdrew a net $1.8M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +7.00%, -3.49%, +2.57%.

DVOL tries to track the Dorsey Wright Momentum Plus Low Volatility Index, which Nasdaq, Inc. owns and built. The fund puts at least 90% of its net assets in the index's stocks. The starting pool is the Nasdaq US Large Mid Cap Index, filtered for liquidity. Each stock gets a relative strength score. This is a momentum measure that compares its medium- and long-term price moves with a market benchmark. Momentum investing assumes that stocks that have been rising will keep rising.

Stocks that pass the momentum screen then get a volatility score, based on their daily price changes over the past year. The 50 with the lowest scores make the index. Each stock's weight rises as its volatility falls, so the calmest stocks get the largest positions. As of June 30, 2026, the top 10 holdings made up about 30% of assets. Ventas (3.2%), Welltower (3.2%) and Bank of New York Mellon (3.1%) led the list.

The index is rebuilt and rebalanced every quarter, and the fund follows shortly after. This drives high turnover: 152% according to the prospectus. That trading can add costs that aren't part of the expense ratio. The fund doesn't use leverage, options or derivatives. As of June 30, 2026, it held 99.85% stocks. It can own real estate investment trusts (REITs), and it will be concentrated in an industry whenever the index is.

• DVOL charges 0.6% a year, versus an average of 0.41% for the similar funds below (4th of 7, cheapest first).

It is a concentrated, high-turnover tilt toward 50 stocks, and its low-volatility screen did not prevent deep losses, so it fits better next to a broad core holding than as one.

DVOL launched in September 2018, so it has no record from the 2008 financial crisis. Its low-volatility screen did not spare it in the 2020 COVID crash. It fell about 38% from February to March 2020, its deepest drop, and recovered by December 2020, roughly nine months later. In the 2022 bear market it fell 23% between January and June and took about 21 months, until March 2024, to recover. Its worst calendar year was 2022, at about −16%. Anyone who had to sell during those stretches would have locked in losses. Income is small: the trailing 12-month yield was 0.83% as of October 27, 2026, paid quarterly. At 0.60% a year, it costs more than USMV (0.15%) or LGLV (0.12%). Past results don't predict future ones, and a plan should look at the whole portfolio, not one fund.

Matched by closest holdings overlap from the latest N-PORT reports (no similar fund shares 20% or more of its holdings).