ETF Watch: Another Dorsey, Wright Fund Debuts

ETF Watch: Another Dorsey, Wright Fund Debuts

State Street launches a fund-of-funds ETF based on relative strength.
Reviewed by: Staff
Edited by: Staff

State Street Global Advisors is set to launch on the Nasdaq stock market a fund-of-funds ETF based on a Dorsey, Wright index, similar to ETFs launched recently by PowerShares and First Trust. The SPDR Dorsey Wright Fixed Income Allocation ETF (DWFI) will invest in four funds from a roster of some 20 fixed-income SPDRs, weekly selecting its ETF components based their relative strength compared with the rest of the selection universe.

Relative strength is used by Dorsey, Wright & Associates in its proprietary methodologies to measure the price momentum of individual securities relative to the price momentum of the other securities within a group.

The new fund comes with an expense ratio of 0.60%. DWFI’s components are equally weighted at 25% each upon rebalancing, and a buffer zone is in place with regard to components’ relative strength in order to keep a lid on turnover.

In March, the PowerShares DWA Tactical Multi-Asset Income Portfolio (DWIN) and the First Trust Dorsey Wright Dynamic Focus 5 ETF (FVC) both rolled out, also on the Nasdaq. The funds, like DWFI, use a rotation strategy with regular rebalancings based on relative strength. And DWIN, like DWFI, has a focus on income. However, FVC and DWIN are more expensive than DWFI. FVC charges 0.79%, while DWIN charges 0.69%.

Contact Heather Bell at [email protected]. is the single source for ETF intelligence. We provide real-time ETF news and analysis to educate investors and drive financial knowledge in the space. Our personalized and accurate information, alongside industry-leading financial tools, are depended upon to develop winning investment and financial decisions. At, we strive to serve both the individual investor as well as the professional financial advisor to educate and grow the ETF community.