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Warning: This Popular ETF May Cause Motion Sickness

First Trust Dorsey Wright International Focus 5's momentum strategy has worked so far, but investors could be in for a bumpy ride.

Mentioned:

Patricia Oey: First Trust Dorsey Wright International Focus 5 (IFV) has had an impressive start, gathering about $600 million in assets since it launched in July 2014.

This international-equity ETF employs a momentum strategy and uses screens to pick five First Trust country or regional funds that have recently outperformed. This strategy is based on the observation that areas of the market that are currently outperforming tend to continue to outperform. So far, the fund's strategy is working. Over the last year, it outperformed its market-cap-weighted benchmark by about 500 basis points.

Patricia Oey does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.