First Trust Horizon Managed Volatility Developed Intl ETF

First Trust Horizon Managed Volatility Developed Intl ETF (HDMV) is an actively managed fund of developed-market stocks outside the U.S. Horizon Investments picks and weights them to favor shares it expects to swing less. It leans toward utilities, property trusts, banks and telecoms, and it yielded about 4.7% over the 12 months to October 27, 2026. The catch is cost: 0.80% a year, versus 0.14% on average for similar funds.

• Over the year to Oct 27, 2026, HDMV returned +10.7%, 7th of 7 among similar funds.
• Its 5-year annualized return was +7.3% and its 10-year +6.1%.
• In the 2020 COVID crash it fell 30.9% and regained its old high 16.8 months after the low.
• Its worst full calendar year was 2022 (-11.5%); its best was 2025 (+29.3%).
• The deepest fall in its price history was 32% (Jan 17, 2020 to Mar 23, 2020), recovered by Aug 19, 2024.

As of Jul 31, 2026, the fund held 150 securities; the ten largest made up 16.16% of assets.

• Over the three months to Jul 31, 2026, investors added a net $0.00 (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: -1.08%, -0.12%, +5.17%.

HDMV does not track an index. First Trust's sub-advisor, Horizon Investments, LLC, picks the stocks. At least 80% of net assets go into common stocks and depositary receipts (certificates representing a foreign company's shares) of developed-market companies listed outside the U.S. that Horizon expects to have low volatility, meaning smaller price swings. The starting pool is large and mid-sized companies, screened to be easy to trade.

Horizon's models forecast each stock's volatility and rank the pool, aiming for 100 to 400 holdings (150 as of July 31, 2026). Horizon then studies how the chosen stocks move together and gives the biggest weights to those expected to be steadiest. The process is mostly rules-based, but Horizon can adjust the number of holdings, their weights and how aggressively it tilts toward calmer stocks. On that date, the 10 largest positions, led by CLP Holdings at 2.0%, made up about 16% of assets.

The "managed volatility" comes from choosing and weighting stocks, not options or hedges: the fund reported no derivatives as of July 31, 2026, so its value moves with its stocks and with foreign currencies against the dollar. Horizon rebalances periodically. Turnover (the share of the portfolio traded in a year) was 90% in the fiscal year the prospectus covers, and trading costs come on top of the expense ratio.

• HDMV charges 0.8% a year, versus an average of 0.14% for the similar funds below (7th of 7, cheapest first).

It adds non-U.S. developed-market stocks tilted toward steadier sectors and Asian markets, though a loss of about 31% in early 2020 shows it is not a shelter from crashes.

Launched in 2016, HDMV has no 2008 record. Low volatility did not mean small losses: it fell 30.9% from February 19 to March 23, 2020, and 22.8% from January to October 2022, taking about 17 and 21 months, respectively, to recover. Its deepest drop, 32% from its January 2020 high, was not recovered until August 2024, 53 months after the March 2020 low. Its worst calendar year was 2022, a 10.85% loss. Withdrawals in those slumps would have meant cashing out at low prices for many months.

It yielded about 4.7% over the 12 months to October 27, 2026, paid twice a year. That income may ease the need to cash out shares, though stock dividends can be cut. It costs 0.80% a year, versus 0.14% on average for similar funds. Past results don't predict future ones, and a plan needs to 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).