At a glance
FVC charges 0.87% a year, above the 0.86% average of the 7 funds most like it (the 6th cheapest of 8). It has $113.7M in assets, the 8th largest of that group; it paid 0.74% of its price in distributions over the past 12 months, semiannual. Over the past year it returned +20.8% with distributions reinvested (S&P 500: +11.5%), the best of those 8 funds; over three years it returned +15.0% a year. At its worst it fell 31.0% in the 2020 crash (S&P 500: 33.7%) and 14.1% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 8 months and 25 months after the lows.
The short version
First Trust Dorsey Wright Dynamic Focus 5 ETF (FVC) is a fund of funds. It tracks the Dorsey Wright Dynamic Focus Five Index and holds five equal-weighted First Trust sector and industry ETFs, chosen by price momentum. When those ETFs rank weakly, it can shift part of its money into a First Trust ultra-short bond ETF. Its 0.87% expense ratio and 168% annual turnover reflect a frequently traded strategy that only picks from one issuer's funds.
Price history
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FVC +20.8% 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 | |
|---|---|---|---|---|---|---|
| FVC official prospectus, to Dec 31, 2025 | — | +2.46% | — | +4.64% | — | +7.35% |
| FVC price data to Oct 27, 2026 | +19.7% | +20.8% | +15.0% | +4.8% | +8.6% | +8.6% |
- Over the year to Oct 27, 2026, FVC returned +20.8%, 1st of 8 among similar funds.
- Its 5-year annualized return was +4.8% and its 10-year +8.6%.
- In the 2020 COVID crash it fell 31% and regained its old high 8.2 months after the low.
- Its worst full calendar year was 2018 (-8.6%); its best was 2021 (+21.9%).
- The deepest fall in its price history was 31% (Feb 19, 2020 to Mar 23, 2020), recovered by Nov 27, 2020.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +19.7% | — |
| 2025 | +2.1% | +2.46% |
| 2024 | +12.4% | +11.90% |
| 2023 | -4.6% | -4.50% |
| 2022 | -6.0% | -5.84% |
| 2021 | +21.9% | +21.69% |
| 2020 | +12.7% | +12.54% |
| 2019 | +19.3% | +18.78% |
| 2018 | -8.6% | -8.07% |
| 2017 | +19.8% | +19.84% |
| 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 31% over that stretch · deepest drop along the way 31%, back to its old high 8.2 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 8% over that stretch · deepest drop along the way 14.1%, back to its old high 25.4 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.0010 | |
| 2025 | $0.9400 | +224.1% |
| 2024 | $0.2900 | -53.2% |
| 2023 | $0.6200 | +17.0% |
| 2022 | $0.5300 | +1666.7% |
| 2021 | $0.0300 | -52.4% |
| 2020 | $0.0630 | -78.3% |
| 2019 | $0.2900 | +437.0% |
| 2018 | $0.0540 | -68.2% |
| 2017 | $0.1700 |
What's inside
As of Jun 30, 2026, the fund held 5 securities; the ten largest made up 99.72% of assets.
| Fund held | Weight | |
|---|---|---|
| First Trust NYSE Arca Biotechnology Index Fund | 20.47% | |
| First Trust NASDAQ-100-Technology Sector Index Fund | 19.92% | |
| First Trust Nasdaq Semiconductor ETF | 19.86% | |
| First Trust Technology AlphaDEX Fund | 19.84% | |
| First Trust Nasdaq Transportation ETF | 19.62% |
By country
United States 99.72%By asset type
Stocks 99.72%What changed recently
- Over the three months to Jun 30, 2026, investors withdrew a net $5.9M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +10.65%, +8.02%, +5.07%.
How it works
Dorsey Wright & Associates owns the index, and Nasdaq calculates it. The fund can only pick from First Trust ETFs that target a specific sector or industry, or lean heavily toward one. It can also hold the First Trust Enhanced Short Maturity ETF (FTSM), an ultra-short bond fund. The index provider ranks the sector ETFs by relative strength. This is a momentum measure: it compares how each ETF's price has done against the others. The index then holds the top five in equal weights, spread across at least three broad sectors. FVC normally keeps at least 80% of its net assets in these ETFs.
The index is reviewed twice a month, in the second and fourth weeks, and once in December. FTSM gets in only if its ranking falls in the top 67%. Its weight then equals its percentile rank, and that weight can't move more than 33 percentage points from one rebalance to the next. So in weak markets the fund shifts toward short-term bonds step by step, not all at once. Turnover was 168%.
As of June 30, 2026, FVC held five ETFs at roughly 20% each: First Trust NYSE Arca Biotechnology (FBT), Nasdaq-100-Technology Sector (QTEC), Nasdaq Semiconductor (FTXL), Technology AlphaDEX (FXL) and Nasdaq Transportation (FTXR). Six months earlier, the list included utilities, financials and aerospace and defense funds. The prospectus notes that First Trust earns fees from the underlying ETFs, which creates a conflict of interest.
What it really costs
- FVC charges 0.87% 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
FVC makes concentrated, frequently changing sector bets through five ETFs, so it fits better as a small sleeve than as a foundation.
FVC could add a momentum tilt next to broad, low-cost funds. It launched in 2016, so it has no record from 2008. In the 2020 COVID crash, it fell 31% between February 19 and March 23, 2020, and took about 8 months to recover. In the 2022 bear market, it fell 14.1% but needed about 25 months, until November 2024, to reach its old high again. Its worst calendar year was 2018, at −8.07%. Someone selling shares for spending after a drop like 2022's would have been selling at a loss for a long time.
Income is small. The trailing yield was 0.74% as of October 27, 2026, paid twice a year. The 0.87% expense ratio is high for a stock fund. 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 a rules-based momentum strategy that rotates among First Trust sector ETFs twice a month, without doing the trading themselves.
- People keeping a small satellite slice next to broad index funds who accept heavy tech and biotech exposure, as held on June 30, 2026.
- Those who like a built-in, gradual partial shift into an ultra-short bond ETF when sector ETFs rank weakly.
Look elsewhere if
- Cost-conscious investors: the expense ratio is 0.87%, far above the 0.30% management fee, and turnover was 168%.
- Retirees who need income: the trailing yield was 0.74% as of October 27, 2026, paid only twice a year.
- Anyone who wants cheaper ETFs from other issuers. The index can only choose First Trust funds, which the prospectus flags as a conflict of interest.
Close alternatives
Matched by other buffer (defined-outcome) funds, largest first.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| FVC this fund | 0.87% | $113.7M | +20.8% | +15.0% |
| 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 FVC invest in?
FVC owns five First Trust sector and industry ETFs, chosen by a relative strength (momentum) ranking and weighted equally. At times it also holds a First Trust ultra-short bond ETF. As of June 30, 2026, it held biotechnology (FBT), Nasdaq-100 technology (QTEC), semiconductors (FTXL), Technology AlphaDEX (FXL) and transportation (FTXR), each near 20%. The lineup can change twice a month, so the holdings may look very different from one report to the next.
Does FVC pay dividends?
Yes, but not much. FVC pays distributions twice a year. Over the trailing 12 months, it paid about $0.32 per share, a yield of 0.74% as of October 27, 2026. The income comes from the ETFs it holds. Because the fund mostly owns growth-leaning sector funds, income is a side effect of the strategy, not its goal.
Why is FVC's expense ratio so high?
FVC's expense ratio is 0.87%, according to its January 2026 prospectus, while its management fee is 0.30%. The gap reflects the costs of the five First Trust ETFs it holds, which a fund of funds passes on to its shareholders. The prospectus also notes that cheaper ETFs from other issuers aren't eligible, and that First Trust earns fees from the underlying funds it picks.
Is FVC a buffer ETF like BUFR?
No. Buffer funds such as FT Vest Laddered Buffer ETF (BUFR) use options to limit losses over set periods in exchange for capped gains. FVC uses no options or derivatives. It rotates among five First Trust sector ETFs based on momentum and sometimes moves part of its money into an ultra-short bond ETF. That shift is gradual, so it offers no defined downside protection: FVC fell 31% in early 2020.
What is FVC's 5-year return?
FVC returned an average of 4.64% a year over the five years to December 31, 2025, according to its prospectus, and 7.35% a year since its 2016 launch. Results have been uneven: −5.84% in 2022, −4.5% in 2023 and 11.9% in 2024. Based on price, FVC returned 20.8% over the year to October 27, 2026, and averaged 4.8% a year over five years.