First Trust Overhauls International ETF Strategy with Factor-Based Approach — First Trust Advisors L.P.

Event summary

First Trust Advisors L.P. will rename its First Trust RiverFront Dynamic Developed International ETF (RFDI) to First Trust Active Factor International ETF (AFDM), effective September 14, 2026.
The fund will shift from a dynamic developed international strategy with currency hedging to a multi-factor quantitative methodology focusing on value, momentum, quality, and low volatility.
First Trust will reduce the fund’s annual management fee from 0.83% to 0.80%, and the portfolio management team will transition to members of First Trust’s Investment Committee.
The fund had approximately $359 billion in assets under management or supervision as of May 31, 2026.

The big picture

First Trust’s strategic overhaul of its international ETF reflects a broader industry trend toward factor-based investing, as asset managers seek to differentiate their offerings in a competitive market. The shift away from currency hedging and the adoption of a multi-factor methodology could position the fund more competitively within the growing active ETF segment.

What we're watching

Performance Impact: How the shift to a multi-factor approach will affect the fund’s performance relative to its peers and historical benchmarks.
Investor Reaction: Whether investors will respond positively to the rebranding, strategy change, and reduced management fee.
Execution Risk: The pace at which First Trust can successfully transition the fund’s investment strategy and portfolio management team.