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First Trust Dow Jones Global Select Dividend Index Fund (FGD)
Investment Objective/Strategy - First Trust Dow Jones Global Select Dividend Index Fund is an exchange-traded fund. The investment objective of the Fund is to seek investment results that correspond generally to the price and yield, before fees and expenses, of an equity index called the Dow Jones Global Select Dividend Index.
There can be no assurance that the Fund's investment objectives will be achieved.
  • The Index universe is defined as all component companies of the 25 developed-market country indexes in the Dow Jones Global Indexes (DJGI) family.
  • To be considered for the Index, companies in the Index universe must pass eligibility screens for dividend quality and liquidity.The company must:
    • Pay a current dividend.
    • Have a current-year dividend-per-share ratio that is greater than or equal to its five-year average annual dividend-per-share ratio.
    • Have a five-year average payout ratio of less than or equal to 60% for U.S. and European companies; or less than or equal to 80% for all other countries.
    • Have a minimum three-month daily average trading volume of $3 million.
  • Stocks meeting all eligibility requirements are ranked by dividend yield.
  • The top 100 highest-yielding stocks are selected for inclusion in the Index, subject to buffers designed to limit turnover by favoring current Index components:
    • Stocks in the Index universe are ranked in descending order by indicated annual dividend yield, defined as a stock’s unadjusted indicated annual dividend (not including any special dividends) divided by its unadjusted price.
    • All current Index component stocks that are among the top 150 stocks are included in the Index.
    • Noncomponent stocks are added to the Index based on their rankings until the component count reaches 100.
    • Component weightings are assigned based on dividend yield. Weights of individual component stocks are capped at 10%.
  • The Index is reconstituted and adjusted annually in December.
Fund Overview
TickerFGD
Fund TypeGlobal Equity Income
Investment AdvisorFirst Trust Advisors L.P.
Investor Servicing AgentBank of New York Mellon
CUSIP33734X200
Intraday NAVFGDIV
Fiscal Year-End09/30
ExchangeNYSE Arca
Inception11/21/2007
Inception Price$30.00
Inception NAV$30.00
Rebalance FrequencyAnnual
Gross Expense Ratio*0.60%
Net Expense Ratio*0.60%
* As of 3/31/2014
Expenses are capped contractually at 0.60% per year, at least until January 31, 2016.
Current Fund Data (as of 7/24/2014)
Closing NAV1$29.04
Closing Share Price2$29.14
Bid/Ask Midpoint$29.12
Bid/Ask Premium0.29%
Total Net Assets$605,411,224
Outstanding Shares20,850,002
Daily Volume183,174
Average 30-Day Daily Volume92,478
Closing Share Price 52-Week High/Low$29.79 / $24.20
Closing NAV 52-Week High/Low$29.70 / $24.14
Number of Holdings103
Fund Characteristics (as of 6/30/2014)8
Median Market Cap.$12,445
Maximum Market Cap.$268,731
Minimum Market Cap.$1,529
Price/Earnings13.59
Price/Book1.95
Price/Cash Flow6.68
Price/Sales0.95
Top Holdings (as of 7/24/2014)
Holding Percent
ProSiebenSat.1 Media AG (Preference) 2.52%
Telecom Corporation of New Zealand 1.92%
Belgacom S.A. 1.83%
Orange 1.66%
GDF SUEZ 1.61%
Lancashire Holdings Ltd. 1.59%
Ladbrokes Plc 1.49%
EDP - Energias de Portugal, S.A. 1.45%
PDL BioPharma, Inc. 1.41%
K+S AG 1.39%

Holdings are subject to change.

Top Country Exposure (as of 7/24/2014)
Country Percent
United States 16.97%
Australia 14.99%
United Kingdom 13.15%
Canada 9.22%
France 9.13%
Germany 5.97%
Sweden 3.30%
Hong Kong 3.25%
Spain 3.25%
Finland 2.84%
Bid/Ask Midpoint and NAV History (Since Inception)
Past performance is not indicative of future results.
Overall Morningstar RatingTM (as of 6/30/2014)3

Among 825 funds in the World Stock category. This fund was rated 3 stars/825 funds (3 years), 4 stars/661 funds (5 years).
Distribution Information
Dividend per Share Amt4$0.5381
30-Day SEC Yield (as of 6/30/2014)54.60%
12-Month Distribution Rate (as of 6/30/2014)64.15%
Index Yield (as of 6/30/2014)75.27%
Bid/Ask Midpoint vs. NAV (as of 6/30/2014)
Number of Days Bid/Ask Midpoint Above NAV
Quarter Ended 0-49
Basis Points
50-99
Basis Points
100-199
Basis Points
>=200
Basis Points
6/30/2014 59 4 0 0
3/31/2014 53 1 0 0
12/31/2013 53 9 0 0
9/30/2013 43 3 0 0
Number of Days Bid/Ask Midpoint Below NAV
Quarter Ended 0-49
Basis Points
50-99
Basis Points
100-199
Basis Points
>=200
Basis Points
6/30/2014 0 0 0 0
3/31/2014 7 0 0 0
12/31/2013 2 0 0 0
9/30/2013 18 0 0 0

The price used to calculate market return is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange, on which shares of the Fund are listed for trading, as of the time that the Fund's NAV is calculated.

Top Sector Exposure (as of 7/24/2014)
Telecommunication Services 19.72%
Utilities 18.09%
Financials 15.60%
Industrials 14.81%
Energy 11.62%
Consumer Discretionary 6.41%
Health Care 4.08%
Materials 3.85%
Consumer Staples 3.82%
Information Technology 1.92%
Month End Performance (as of 6/30/2014)
  3 Mos YTD 1 Year 3 Year 5 Year 10 Year Since
Fund
Inception9
Fund Performance *
NAV 6.73% 10.51% 31.60% 10.72% 17.30% N/A 4.61%
After Tax Held 5.89% 9.43% 29.15% 8.61% 15.27% N/A 2.72%
After Tax Sold 3.81% 5.94% 17.80% 7.30% 12.98% N/A 2.64%
Market Price 6.79% 10.03% 32.03% 10.70% 17.32% N/A 4.64%
Index Performance **
Dow Jones Global Select Dividend IndexSM 6.62% 10.41% 31.99% 10.79% 17.39% N/A 4.71%
MSCI World Index 4.86% 6.18% 24.05% 11.81% 14.99% N/A 4.14%
Dow Jones World Developed Markets IndexSM 4.81% 6.47% 24.67% 12.13% 15.62% N/A 4.79%
Quarter End Performance (as of 6/30/2014)
  3 Mos YTD 1 Year 3 Year 5 Year 10 Year Since
Fund
Inception9
Fund Performance *
NAV 6.73% 10.51% 31.60% 10.72% 17.30% N/A 4.61%
After Tax Held 5.89% 9.43% 29.15% 8.61% 15.27% N/A 2.72%
After Tax Sold 3.81% 5.94% 17.80% 7.30% 12.98% N/A 2.64%
Market Price 6.79% 10.03% 32.03% 10.70% 17.32% N/A 4.64%
Index Performance **
Dow Jones Global Select Dividend IndexSM 6.62% 10.41% 31.99% 10.79% 17.39% N/A 4.71%
MSCI World Index 4.86% 6.18% 24.05% 11.81% 14.99% N/A 4.14%
Dow Jones World Developed Markets IndexSM 4.81% 6.47% 24.67% 12.13% 15.62% N/A 4.79%
3-Year Statistics (as of 6/30/2014)
  Standard Deviation Alpha Beta Sharpe Ratio Correlation
FGD 14.33% -0.32 0.95 0.76 0.91
MSCI World Index 13.76% --- 1.00 0.85 1.00
Standard Deviation is a measure of price variability (risk). Alpha is an indication of how much an investment outperforms or underperforms on a risk-adjusted basis relative to its benchmark.Beta is a measure of price variability relative to the market. Sharpe Ratio is a measure of excess reward per unit of volatility. Correlation is a measure of the similarity of performance.

*Performance data quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares when sold or redeemed, may be worth more or less than their original cost.

After Tax Held returns represent return after taxes on distributions. Assumes shares have not been sold. After Tax Sold returns represent the return after taxes on distributions and the sale of fund shares. Returns do not represent the returns you would receive if you traded shares at other times. Market Price returns are based on the midpoint of the bid/ask spread. Returns are average annualized total returns, except those for periods of less than one year, which are cumulative. The fund's performance reflects fee waivers and expense reimbursements, absent which performance would have been lower.

After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on the investor’s tax situation and may differ from those shown. The after-tax returns shown are not relevant to investors who hold their fund shares through tax-deferred arrangements such as 401(k) plans or individual retirement accounts.

**Performance information for the Dow Jones Global Select Dividend IndexSM is for illustrative purposes only and does not represent actual fund performance. The Index does not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the performance shown. Indexes are unmanaged and an investor cannot invest directly in an index.

The gross expense ratio for this fund is 0.60%. Expenses are capped contractually at 0.60% per year, at least until January 31, 2016.

The Dow Jones World Developed Markets Index represents 23 countries and covers approximately 95% of the float-adjusted market capitalization of Europe as a region, and all other markets at the country level.

The MSCI World Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of 23 developed markets around the world.

Footnotes
1 The NAV represents the fund's net assets (assets less liabilities) divided by the fund's shares outstanding.
2 Fund shares are purchased and sold on an exchange at their share price rather than net asset value (NAV), which may cause the shares to trade at a price greater than NAV (premium) or less than NAV (discount).
3
The Morningstar RatingTM is provided for those exchange-traded funds ("ETFs") with at least a three-year history. Ratings are based on the ETF's Morningstar Risk-Adjusted Return measure which accounts for variation in monthly performance, placing more emphasis on downward variations and rewarding consistent performance. An ETF's risk-adjusted return includes a brokerage commission estimate. This estimate is intended to reflect what an average investor would pay when buying or selling an ETF. PLEASE NOTE, this estimate is subject to change and the actual brokerage commission an investor pays may be higher or lower than this estimate. Morningstar compares each ETF's risk-adjusted return to the open-end mutual fund rating breakpoints for that category. Consistent with the open-end mutual fund ratings, the top 10% of ETFs in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. The overall rating for an ETF is based on a weighted average of the time-period ratings (e.g., the ETF's 3,5, and 10 year rating). The determination of an ETF's rating does not affect the retail open end mutual fund data published by Morningstar. Past performance is no guarantee of future results.
4 Most recent distribution paid or declared through today's date. Subject to change in the future.
5 30-day SEC yield is calculated by dividing the net investment income per share earned during the most recent 30-day period by the maximum offering price per share on the last day of the period.
6 12-Month Distribution Rate is calculated by dividing the sum of the fund's trailing 12-month ordinary distributions paid or declared by the NAV price. Distribution rates may vary.
7 Index yield represents the weighted average trailing 12-month dividend of the constituents of the Dow Jones Global Select Dividend Index(SM)
8 All market capitalization numbers are in USD$ Millions.
9 Inception Date is 11/21/2007

You should consider the fund's investment objectives, risks, and charges and expenses carefully before investing. You can download a prospectus or summary prospectus, or contact First Trust Portfolios L.P. at 1-800-621-1675 to request a prospectus or summary prospectus which contains this and other information about the fund. The prospectus or summary prospectus should be read carefully before investing.

ETF Characteristics

The fund lists and principally trades its shares on the NYSE Arca, Inc.

The fund's return may not match the return of the Dow Jones Global Select Dividend IndexSM.  Securities held by the fund will generally not be bought or sold in response to market fluctuations.

The fund may not be fully invested at times. Investors buying or selling fund shares on the secondary market may incur customary brokerage commissions. Market prices may differ to some degree from the net asset value of the shares. Investors who sell fund shares may receive less than the share's net asset value. Shares may be sold throughout the day on the exchange through any brokerage account. However, unlike mutual funds, shares may only be redeemed directly from the fund by authorized participants, in very large creation/redemption units.

Risk Considerations

The fund's shares will change in value, and you could lose money by investing in the fund. One of the principal risks of investing in the fund is market risk. Market risk is the risk that a particular stock owned by the fund, fund shares or stocks in general may fall in value.

The fund may invest in securities issued by companies concentrated in a particular industry. The fund may invest in small capitalization and mid capitalization companies. Such companies may experience greater price volatility than larger, more established companies.

An investment in a fund containing equity securities of foreign issuers is subject to additional risks, including currency fluctuations, political risks, withholding, the lack of adequate financial information, and exchange control restrictions impacting foreign issuers.

The fund is classified as "non-diversified." A non-diversified fund generally may invest a larger percentage of its assets in the securities of a smaller number of issuers. As a result, the fund may be more susceptible to the risks associated with these particular companies, or to a single economic, political or regulatory occurrence affecting these companies.

The Dow Jones Global Select Dividend IndexSM, is a product of Dow Jones Indexes, a licensed trademark of CME Group Index Services LLC ("CME"), and has been licensed for use. "Dow Jones®", "Dow Jones Global Select Dividend IndexSM", and "Dow Jones Indexes" are service marks of Dow Jones Trademark Holdings, LLC ("Dow Jones"), and have been licensed to CME and have been sublicensed for use for certain purposes by First Trust. First Trust's ETF, based on the Dow Jones Global Select Dividend IndexSM, is not sponsored, endorsed, sold or promoted by Dow Jones, CME or their respective affiliates and none of them makes any representation regarding the advisability of investing in such products.

©2013 Morningstar, Inc. All Rights Reserved. The Morningstar RatingTM information contained herein: (1) is proprietary to Morningstar; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

Not FDIC Insured • Not Bank Guaranteed • May Lose Value
 
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