ETF Education Report: FIRST TRUST DORSEY WRIGHT DALI EQUITY ETF (DALI)

What this ETF is trying to do

The FIRST TRUST DORSEY WRIGHT DALI EQUITY ETF (ticker: DALI) is an exchange-traded fund that provides exposure to various international markets. Based on its top holdings, it includes funds focused on developing markets, Europe, the Eurozone, Germany, and Asia-Pacific (excluding Japan).

What the numbers show

When looking at an ETF, it is important to understand the difference between "price return" and "total return." Price return only tracks how much the share price changes. Total return includes both the price change and any cash distributions paid out to investors.

Here is how DALI has performed:

• Year-to-Date (YTD): The price return is approximately -2.75%, while the total return is approximately -1.36%.

• One-Year: The price return is approximately -1.63%, while the total return is approximately -0.10%.

• Three-Year: The price return is approximately 12.66%, while the total return is approximately 16.01%.

• Five-Year: The total return is approximately 17.89%.

To visualize the price change, an investor's share price was estimated to be roughly $28.44 one year ago, compared to the current price of $27.97.

Income and distribution explanation

DALI pays out cash distributions to investors. The distribution yield is approximately 1.61%. This means the amount of cash paid out is about 1.61% of the current share price. These payments usually happen quarterly, and over the last 12 months, there were four payouts. While distributions provide cash income, they are not the same as total return.

NAV erosion explanation

"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the assets held by the fund). While a falling share price can sometimes be related to erosion, it is not the same thing. For DALI, the erosion-risk score is 94, which is labeled as "Stable / sideways." There is no severe erosion-risk flag for this ETF.

Top Holdings

The following are the top holdings in this fund (as of October 4, 2026). Please note that holdings can change over time:

• FIRST TRUST DEV MKTS EX-US ALPHADEX® ETF (18.10%)

• FIRST TRUST EMERGING MRKTS ALPHADEX® ETF (17.98%)

• FIRST TRUST EUROPE ALPHADEX® ETF (13.59%)

• FIRST TRUST EUROZONE ALPHADEX® ETF (13.26%)

• FIRST TRUST GERMANY ALPHADEX® ETF (13.04%)

• FIRST TRUST ASIAPAC EX-JPN ALPHADEX® ETF (12.07%)

• FIRST TRUST INTERNATIONAL EQ OPPS ETF (11.88%)

Pros

• The fund shows a positive total return over a three-year and five-year period.

• The erosion-risk score suggests the fund is currently considered stable or sideways.

Cons

• The price return and total return have been negative for both the year-to-date and one-year periods.

Beginner takeaway

When evaluating an ETF like DALI, remember that a high distribution yield does not guarantee profit. Always look at the "total return" to see how both price changes and cash payments affect the investment. Additionally, while this fund has seen some recent share-price declines, its long-term three-year and five-year total returns have been positive.