First Trust RBA Deglobalization ETF (DGLO) seeks to track an index focused on companies positioned to benefit from deglobalization trends, which measures firms with domestic revenue concentration, supply chain resilience, and reduced international dependencies. This thematic international equity ETF targets businesses adapting to reshoring and supply chain localization movements.
How It Works
DGLO employs a rules-based methodology that screens global companies for high domestic revenue exposure, local supply chain concentration, and minimal reliance on international trade. The fund uses fundamental weighting based on revenue localization scores rather than market capitalization. Holdings are rebalanced quarterly to maintain alignment with deglobalization themes. As a newly launched ETF, initial portfolio construction focuses on developed market companies with strong domestic market positions.
Key Features
- First-to-market thematic exposure targeting deglobalization trends, offering unique positioning as supply chains restructure globally
- Rules-based selection methodology focusing on revenue domestication and supply chain resilience rather than traditional market metrics
- Recently launched in August 2025, providing early access to emerging deglobalization investment theme with no performance history
Risks
- This ETF can lose value if deglobalization trends reverse or companies increase international exposure, undermining the core investment thesis
- Concentrated thematic focus creates sector and geographic concentration risk, potentially leading to higher volatility than broad market ETFs
- As a new fund with limited assets, liquidity constraints and tracking error risks may result in wider bid-ask spreads
Who Should Own This
Best suited as a satellite holding (5-15% of international allocation) for investors with 3+ year time horizons seeking thematic exposure to deglobalization trends. High risk tolerance required due to concentrated strategy and new fund status. Appropriate for tactical investors wanting to capitalize on supply chain reshoring themes.