Understand any stock in simple English
Enter a ticker to learn what the company does and how it makes money.
It is an ETF that holds five of First Trust's own sector and industry funds, chosen by momentum.
This is a fund, not a normal company. It does not make or sell anything. It pools money from investors and uses that money to buy shares of other funds. The fund trades on the Nasdaq stock exchange under the ticker FV, and its whole job is to hold a small, rotating basket of five First Trust sector or industry funds at a time. Investors who buy it are essentially paying for a ready-made, always-updating bet on whatever parts of the market are moving fastest.
How does it choose those five? It uses something called "momentum." Think of it as a race where you keep betting on whichever runners are sprinting the hardest right now, rather than who looks strongest on paper. The fund's rules rank a menu of First Trust sector and industry funds by their recent price strength, then hold the top five and rebalance on a set schedule. If tech is hot, tech funds stay in. When energy or healthcare starts outrunning them, the fund swaps in. So the mix changes over time, which means the fund can look very different from one year to the next.
The money side is simple. First Trust, the company behind the fund, earns a management fee for running it — a small slice taken out of the fund's assets each year, which is how asset managers like this get paid. Investors pay that fee indirectly, and in exchange they get instant diversification across five hot areas without picking stocks themselves. The catch is that chasing momentum can mean buying after a big run-up and getting hurt when that trend reverses, so this is a fund for people who believe recent strength tends to keep going, at least for a while.
Saved answer · last researched 11 Oct 2026