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| Investment Objective/Strategy -
The First Trust DB Strategic Value Index Fund is an exchange-traded index fund. The investment objective of the fund is to replicate as closely as possible, before fees and expenses, the price and yield of the Deutsche Bank CROCI® US+ IndexTM |
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| There can be no assurance that the Fund's investment objectives will be achieved. |
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- The Deutsche Bank CROCI US+ Index is intended to reflect the total return performance of the forty shares in the Selection Pool with the lowest positive CROCI Economic Price Earnings Ratios. The Selection Pool is determined by taking the 251 shares with the highest Market Capitalization in the S&P 500 Index and then excluding from that initial pool of 251 shares any shares issued by financial companies.
- The forty stocks are selected on their historical ability to earn cash profits above and beyond the weighted average cost of capital. For companies with positive economic earnings, an economic price to economic earnings ratio is calculated, and the 40 stocks with the lowest economic P/E ratios are included in the index.
- The CROCI Economic Price Earnings Ratio is the "economic" price-earnings ratio calculated based on a CROCI (Cash Return on Capital Invested) analysis. CROCI is an investment research discipline that makes in-depth adjustments to company financial statements in order to make their P/E Ratios comparable across sectors as well as markets.
- The index is reconstituted monthly to reflect the then current 40 stocks with the lowest economic P/E ratio and to ensure that each component stock continues to represent approximately equal weight in the Index.
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Fund Overview
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| Ticker |
FDV |
| Fund Type |
Large Cap Value |
| Investment Advisor |
First Trust Advisors L.P. |
| Investor Servicing Agent |
Bank of New York |
| CUSIP |
33733E104 |
| Intraday NAV |
HDX |
| Fiscal Year-End |
12/31 |
| Exchange |
NYSE Arca |
| Inception |
7/6/2006 |
| Inception Price |
$20.00 |
| Inception NAV |
$20.00 |
Gross Expense Ratio
(6/30/2009) |
0.97% |
| Net Expense Ratio |
0.65% |
| Rebalance Frequency |
MONTHLY |
| 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 0.65% per year, at least until May 15, 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 |
$19.82 |
| Bid/Ask Midpoint |
$19.83 |
| Closing NAV |
$19.84 |
| Bid/Ask Discount |
0.06% |
| Total Net Assets |
$50,595,657 |
| Common Shares Outstanding |
2,550,002 |
| Dividend Frequency |
Semi-Annual |
| Dividend per Share Amt1 |
$0.1607 |
| Daily Volume |
38,809 |
| Average 30-Day Daily Volume |
32,374 |
| Closing Share Price 52-Week High/Low |
$21.09 / $11.92 |
| Closing NAV 52-Week High/Low |
$21.06 / $11.93 |
| Number of Stocks |
40 |
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| Consumer Discretionary |
14.88% |
| Consumer Staples |
7.43% |
| Energy |
7.47% |
| Health Care |
40.14% |
| Industrials |
17.31% |
| Information Technology |
10.15% |
| Materials |
2.62% |
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| Top 10 Holdings (as of 2/8/2010) |
| Holdings |
Percent (%) |
| Freeport-McMoRan Copper & Gold, Inc. (Class B) |
2.62 |
| Dell Inc. |
2.60 |
| The Gap, Inc. |
2.55 |
| eBay Inc. |
2.53 |
| Eli Lilly and Company |
2.53 |
| Northrop Grumman Corporation |
2.53 |
| Bristol-Myers Squibb Company |
2.52 |
| Best Buy Co., Inc. |
2.52 |
| Amgen Inc. |
2.52 |
| Yahoo! Inc. |
2.52 |
| Fund Characteristics (as of 1/29/2010) 3 |
| Median Market Cap. |
$25,512 |
| Maximum Market Cap. |
$248,294 |
| Minimum Market Cap. |
$8,944 |
| Price/Earnings |
14.68 |
| Price/Book |
2.38 |
| Price/Cash Flow |
9.31 |
| Price/Sales |
0.81 |
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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 |
40 |
0 |
0 |
0 |
| 9/30/2009 |
37 |
0 |
0 |
0 |
| 6/30/2009 |
33 |
3 |
0 |
0 |
| 3/31/2009 |
29 |
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 |
24 |
0 |
0 |
0 |
| 9/30/2009 |
27 |
0 |
0 |
0 |
| 6/30/2009 |
27 |
0 |
0 |
0 |
| 3/31/2009 |
29 |
3 |
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 |
7.10% |
-2.20% |
43.39% |
-2.70% |
N/A |
N/A |
1.24% |
| After Tax Held |
6.81% |
-2.20% |
42.65% |
-3.14% |
N/A |
N/A |
0.82% |
| After Tax Sold |
4.62% |
-1.43% |
28.17% |
-2.54% |
N/A |
N/A |
0.81% |
| Market Price |
7.11% |
-2.34% |
42.97% |
0.00% |
N/A |
N/A |
1.20% |
| Index Performance ** |
| Deutsche Bank CROCI® US+ Index |
7.25% |
-2.13% |
44.18% |
-2.09% |
4.73% |
N/A |
1.78% |
| S&P 500 Value Index |
5.95% |
-2.02% |
35.16% |
-10.24% |
-0.73% |
N/A |
-5.04% |
| S&P 500® Index |
4.16% |
-3.60% |
33.14% |
-7.24% |
0.18% |
N/A |
-2.60% |
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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 |
7.90% |
39.43% |
39.43% |
-1.18% |
N/A |
N/A |
1.92% |
| After Tax Held |
7.61% |
38.71% |
38.71% |
-1.63% |
N/A |
N/A |
1.48% |
| After Tax Sold |
5.14% |
25.59% |
25.59% |
-1.27% |
N/A |
N/A |
1.38% |
| Market Price |
8.01% |
40.27% |
40.27% |
0.00% |
N/A |
N/A |
1.92% |
| Index Performance ** |
| Deutsche Bank CROCI® US+ Index |
8.04% |
40.21% |
40.21% |
-0.57% |
4.74% |
N/A |
2.46% |
| S&P 500 Value Index |
4.22% |
21.18% |
21.18% |
-9.10% |
-0.81% |
N/A |
-4.60% |
| S&P 500® Index |
6.04% |
26.46% |
26.46% |
-5.63% |
0.42% |
N/A |
-1.63% |
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3-Year Statistics (as of 1/29/2010)
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Standard Deviation |
Alpha |
Beta |
Sharpe Ratio |
Correlation |
| First Trust DB Strategic Value Index Fund |
21.59% |
5.48 |
1.04 |
-0.19 |
0.96 |
| S&P 500 Value Index |
22.22% |
-2.01 |
1.08 |
-0.53 |
0.98 |
| S&P 500® Index |
19.97% |
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-0.45 |
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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. The after-tax returns shown are not relevant to investors who hold their fund shares through tax-deferred arrangements.
The gross expense ratio for this fund is 0.97%.
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 0.65% per year, at least until May 15, 2010.
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**Past performance is not a guarantee of future results. Performance information for the Deutsche Bank CROCI US+ Index is for illustrative purposes only and does not represent the performance of any actual investment or fund. The index does not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the performance shown. Index returns assume that dividends are reinvested when they are received. Indexes are unmanaged and an investor cannot invest directly in an index.
Standard Deviation — A measure of price variability (risk).
Alpha - An indication of how much an investment outperforms or underperforms on a risk-adjusted
basis relative to its benchmark.
Beta - A measure of price variability relative to the market.
Sharpe Ratio - A measure of excess reward per unit of volatility.
Correlation - A measure the similarity of performance.
The S&P 500 Value Index consists of the stocks in the S&P 500 that strongly exhibit characteristics traditionally associated with value stocks, relative to their peers.
The S&P 500 Index is an unmanaged index of 500 stocks used to measure large-cap U.S. stock market performance.
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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 7/6/2006 |
| 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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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's return may not match the return of the 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.
Investors buying or selling fund shares on the secondary market may incur 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.
"Deutsche Bank" and "Deutsche Bank CROCI US+ Index" are service marks of Deutsche Bank AG ("Deutsche Bank"). Deutsche Bank has no relationship to First Trust or the fund, other than the licensing of the Index and its service marks for use in connection with the fund.
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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