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| Investment Objective/Strategy -
The First Trust Multi Cap Value AlphaDEX® 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 Defined Multi Cap Value Index. |
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| There can be no assurance that the Fund's investment objectives will be achieved. |
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- The Defined Multi Cap Value Index is an "enhanced" index created and administered by Standard & Poor's which selects stocks from the S&P Composite 1500/Citigroup Value Index.
- Standard & Poor's constructs the Defined Multi Cap Value Index by employing the AlphaDEX® stock selection methodology to rank the stocks from the three component indices which comprise the S&P Composite 1500/Citigroup Value Index – the S&P 500/Citigroup Value Index, the S&P MidCap 400/Citigroup Value Index and the S&P SmallCap 600/Citigroup Value Index.
- After ranking the stocks within each component index using fundamental factors, the bottom 25% from each component index is eliminated and the top 75% is selected for the Defined Multi Cap Value Index.
- The Defined Multi Cap Value Index is comprised of the selected stocks in the following weights: the stocks selected from the S&P 500/Citigroup Value Index comprise 50%, the stocks selected from the S&P MidCap 400/Citigroup Value Index comprise 30%, and the stocks selected from the S&P SmallCap 600/Citigroup Value Index comprise 20%.
- The selected stocks within each of the component indices are divided into quintiles based on their rankings and the top ranked quintiles receive a higher weight within the index. The stocks are equally-weighted within each quintile.
- The index is reconstituted and rebalanced quarterly.
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Fund Overview
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| Ticker |
FAB |
| Fund Type |
Multi Cap Value |
| Investment Advisor |
First Trust Advisors L.P. |
| Investor Servicing Agent |
Bank of New York |
| CUSIP |
33733C108 |
| Intraday NAV |
FABIV |
| Fiscal Year-End |
07/31 |
| Exchange |
NYSE Arca |
| Inception |
5/8/2007 |
| Inception Price |
$30.00 |
| Inception NAV |
$30.00 |
Gross Expense Ratio
(7/31/2009) |
2.17% |
| Net Expense Ratio |
0.70% |
| Rebalance Frequency |
QUARTERLY |
| Marginable |
Yes |
| Options |
No |
| Short Sell |
Yes |
Pursuant to contract, First Trust has agreed to waive fees and/or pay fund expenses to prevent the net expense ratio of the fund from exceeding 0.70% per year, at least until March 31, 2010.
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| Bid/Ask Midpoint and NAV History (Since Inception) |
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Past performance is not indicative of future results.
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Current Fund Data (as of 2/5/2010)
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| Closing Share Price |
$22.99 |
| Bid/Ask Midpoint |
$23.02 |
| Closing NAV |
$23.03 |
| Bid/Ask Discount |
0.06% |
| Total Net Assets |
$14,972,616 |
| Common Shares Outstanding |
650,002 |
| Dividend Frequency |
Semi-Annual |
| Dividend per Share Amt1 |
$0.1885 |
| Daily Volume |
7,003 |
| Average 30-Day Daily Volume |
9,851 |
| Closing Share Price 52-Week High/Low |
$24.56 / $11.03 |
| Closing NAV 52-Week High/Low |
$24.64 / $11.13 |
| Number of Stocks |
626 |
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| Consumer Discretionary |
13.47% |
| Consumer Staples |
7.96% |
| Energy |
6.60% |
| Financials |
15.52% |
| Health Care |
12.27% |
| Industrials |
14.91% |
| Information Technology |
6.88% |
| Materials |
4.46% |
| Other |
0.23% |
| Telecommunication Services |
2.22% |
| Utilities |
15.48% |
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| Top 10 Holdings (as of 2/8/2010) |
| Holdings |
Percent (%) |
| Humana Inc. |
0.45 |
| WellPoint, Inc. |
0.45 |
| Carnival Corporation |
0.44 |
| CareFusion Corp |
0.44 |
| Safeway Inc. |
0.44 |
| Assurant, Inc. |
0.43 |
| CVS Caremark Corporation |
0.43 |
| Raytheon Company |
0.43 |
| Torchmark Corporation |
0.42 |
| The Travelers Companies, Inc. |
0.42 |
| Fund Characteristics (as of 1/29/2010) 3 |
| Median Market Cap. |
$1,655 |
| Maximum Market Cap. |
$304,561 |
| Minimum Market Cap. |
$61 |
| Price/Earnings |
13.49 |
| Price/Book |
1.34 |
| Price/Cash Flow |
5.80 |
| Price/Sales |
0.65 |
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| 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 |
| 12/31/2009 |
31 |
0 |
0 |
0 |
| 9/30/2009 |
27 |
0 |
0 |
0 |
| 6/30/2009 |
29 |
0 |
0 |
0 |
| 3/31/2009 |
30 |
0 |
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 |
| 12/31/2009 |
33 |
0 |
0 |
0 |
| 9/30/2009 |
36 |
1 |
0 |
0 |
| 6/30/2009 |
30 |
4 |
0 |
0 |
| 3/31/2009 |
31 |
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.
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| Month End Performance (as of 1/29/2010) |
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3 Mos |
YTD |
1 Year |
3 Year |
5 Year |
10 Year |
Since
Fund
Inception2 |
| Fund Performance * |
| NAV |
8.94% |
-1.77% |
62.61% |
N/A |
N/A |
N/A |
-7.48% |
| After Tax Held |
8.64% |
-1.77% |
61.75% |
N/A |
N/A |
N/A |
-7.97% |
| After Tax Sold |
5.82% |
-1.15% |
40.65% |
N/A |
N/A |
N/A |
-6.58% |
| Market Price |
9.00% |
-1.77% |
62.43% |
N/A |
N/A |
N/A |
-7.49% |
| Index Performance ** |
| Defined Multi Cap Value Index |
9.15% |
-1.70% |
64.00% |
N/A |
N/A |
N/A |
-6.70% |
| S&P 1500 Value Index |
6.30% |
-2.08% |
35.91% |
N/A |
N/A |
N/A |
-12.51% |
| S&P Composite 1500 Index |
4.51% |
-3.56% |
34.12% |
N/A |
N/A |
N/A |
-9.43% |
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| Quarter End Performance (as of 12/31/2009) |
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3 Mos |
YTD |
1 Year |
3 Year |
5 Year |
10 Year |
Since
Fund
Inception2 |
| Fund Performance * |
| NAV |
6.84% |
47.57% |
47.57% |
N/A |
N/A |
N/A |
-7.08% |
| After Tax Held |
6.54% |
46.79% |
46.79% |
N/A |
N/A |
N/A |
-7.59% |
| After Tax Sold |
4.45% |
30.87% |
30.87% |
N/A |
N/A |
N/A |
-6.26% |
| Market Price |
6.84% |
47.51% |
47.51% |
N/A |
N/A |
N/A |
-7.10% |
| Index Performance ** |
| Defined Multi Cap Value Index |
7.05% |
48.98% |
48.98% |
N/A |
N/A |
N/A |
-6.29% |
| S&P 1500 Value Index |
4.33% |
22.21% |
22.21% |
N/A |
N/A |
N/A |
-12.17% |
| S&P Composite 1500 Index |
5.97% |
27.25% |
27.25% |
N/A |
N/A |
N/A |
-8.46% |
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*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. You can obtain performance information which is current through the most recent month-end by visiting ftportfolios.com.
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.
The gross expense ratio for this fund is 2.17%.
Pursuant to contract, First Trust has agreed to waive fees and/or pay fund expenses to prevent the net expense ratio of the fund from exceeding 0.70% per year, at least until March 31, 2010.
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**Past performance is not a guarantee of future results. Performance information for the Defined Multi Cap Value Index is for illustrative purposes only and does not represent the performance of any actual investment or fund. No representation is being made that any investment will achieve performance similar to that shown. 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. All index returns assume that dividends are reinvested when they are received.
The S&P Composite 1500 Index is an unmanaged index representing the large cap, mid cap and small cap segments of the U.S. equity market.
The S&P Composite 1500/Citigroup Value Index contains those securities with value characteristics from the S&P 1500 Index.
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| Footnotes
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| 1 |
Most recent distribution paid or declared through today's date. Subject to change in the future. |
| 2 |
Inception Date is 5/8/2007 |
| 3 |
All market capitalization numbers are in US$ Millions. |
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You should consider the fund's investment objectives, risks, and charges and expenses carefully before investing. You can download a prospectus or contact First Trust Portfolios, L.P. at 1-800-621-1675 to request a prospectus, which contains this and other information about the fund. Read it carefully before you invest.
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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's return may not match the return of the Defined Multi Cap Value Index. The fund may not be fully invested at times. Securities held by the fund will generally not be bought or sold in response to market fluctuations and the securities may be 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.
Investors buying or selling fund shares on the secondary market may incur customary brokerage commissions. 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, shares may only be redeemed directly from the fund by authorized participants, in very large creation/redemption units.
The Defined Multi Cap Value Index is the exclusive property of Standard and Poor's, a division of the McGraw-Hill Companies, Inc. ("S&P"). First Trust Portfolios L.P. has contacted with S&P to create, calculate and maintain the Index. STANDARD & POOR'S and S&P are trademarks of The McGraw-Hill Companies, Inc. and have been licensed for use by First Trust Portfolios L.P. The fund is not sponsored, endorsed, sold or promoted by Standard & Poor's and Standard & Poor's does not make any representation regarding the advisability of investing in the fund.
"AlphaDEX®" is a registered trademark of First Trust Portfolios L.P.
A patent application with respect to the AlphaDEX® stock selection methodology is pending at the United States Patent and Trademark Office.
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.
Not FDIC Insured * Not Bank Guaranteed * May Lose Value
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