First Trust Dorsey Wright Momentum & Value ETF (DVLU US) – Portfolio Construction Methodology

The underlying Dorsey Wright Momentum Plus Value Index targets US large- and mid-cap stocks that pair strong price momentum with inexpensive valuations. Eligible securities must be members of the Nasdaq US Large Mid Cap Index, trade at least 1 million USD in 30-day average daily value, and are limited to a single share class per issuer. At each quarterly reconstitution, all eligible stocks are scored on a proprietary relative-strength measure, then separately ranked on four value metrics: P/S, P/B, P/E and price to free cash flow. Securities with valid data for at least three metrics receive a composite value score (the average of their metric percentiles), and the 50 highest composite scores are selected. Constituents are factor-weighted by dividing each stock’s value score by the sum of all scores, and weights are refreshed quarterly using prices on the rebalance reference date, effective after the third Friday of January, April, July and October.

To explore DVLU in more depth, visit our ETF analytics platform for institutional-grade insights — including performance and risk metrics, correlations, sensitivities, and factor exposure: https://www.etfstrategy.com/etf/DVLU_US