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| Investment Objective/Strategy -
First Trust FTSE EPRA/NAREIT Developed Markets Real Estate 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 FTSE EPRA/NAREIT Developed Index. |
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| There can be no assurance that the Fund's investment objectives will be achieved. |
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The Index is designed to measure the stock performance of companies engaged in
specific real estate activities of the North American, European and Asian real estate
markets. Relevant real estate activities are defined as the ownership, trading and
development of income-producing real estate.
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The constituents of the Index are required to meet individual geographic criteria
and are subject to size, liquidity, and free float screens.
- The Index is a modified market capitalization weighted index, based on free float
market capitalization. The Index is rebalanced and reconstituted quarterly.
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Fund Overview
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| Ticker |
FFR |
| Fund Type |
Global REIT |
| Investment Advisor |
First Trust Advisors L.P. |
| Investor Servicing Agent |
Bank of New York |
| CUSIP |
33736N101 |
| Intraday NAV |
FFRIV |
| Fiscal Year-End |
09/30 |
| Exchange |
NYSE Arca |
| Inception |
8/27/2007 |
| Inception Price |
$50.00 |
| Inception NAV |
$50.00 |
Gross Expense Ratio
(3/31/2010) |
1.16% |
| Net Expense Ratio |
0.60% |
| 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 0.60% per year, at least until May 15, 2011.
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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 9/1/2010)
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| Closing Share Price |
$32.27 |
| Bid/Ask Midpoint |
$32.20 |
| Closing NAV |
$32.14 |
| Bid/Ask Premium |
0.17% |
| Total Net Assets |
$43,391,075 |
| Common Shares Outstanding |
1,350,002 |
| Dividend Frequency |
Semi-Annual |
| Dividend per Share Amt1 |
$0.3773 |
| Daily Volume |
23,922 |
| Average 30-Day Daily Volume |
9,027 |
| Closing Share Price 52-Week High/Low |
$33.16 / $27.90 |
| Closing NAV 52-Week High/Low |
$32.91 / $27.73 |
| Number of Stocks |
282 |
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| Diversified REITs |
36.23% |
| Healthcare REITs |
6.01% |
| Industrial REITs |
3.63% |
| Industrial/Office Mixed REITs |
1.12% |
| Lodging/Resorts REITs |
2.82% |
| Office REITs |
13.92% |
| Other |
0.30% |
| Residential REITs |
10.38% |
| Retail REITs |
21.48% |
| Self Storage REITs |
2.42% |
| Specialty REITs |
1.69% |
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| Top 10 Holdings (as of 9/1/2010) |
| Holdings |
Percent (%) |
| Sun Hung Kai Properties Ltd |
3.91 |
| Simon Property Group, Inc. |
3.89 |
| Westfield Group |
3.85 |
| Unibail-Rodamco S.A. |
2.56 |
| Mitsubishi Estate Company, Ltd. |
2.32 |
| Vornado Realty Trust |
2.20 |
| Mitsui Fudosan Company, Ltd. |
2.15 |
| Equity Residential Properties Trust |
1.93 |
| Public Storage |
1.84 |
| Boston Properties, Inc. |
1.68 |
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| Top Country Breakdown (as of 9/1/2010) |
| Country |
Percent (%) |
| United States |
40.67 |
| Hong Kong |
14.25 |
| Japan |
9.89 |
| Australia |
9.13 |
| United Kingdom |
5.10 |
| Singapore |
5.00 |
| France |
4.55 |
| Canada |
4.26 |
| The Netherlands |
1.53 |
| China |
1.09 |
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| Fund Characteristics (as of 7/30/2010) 2,3 |
| 30-Day SEC Yield |
3.36% |
| Distribution Rate |
2.39% |
| Median Market Cap. |
$1,495 |
| Maximum Market Cap. |
$37,763 |
| Minimum Market Cap. |
$105 |
| Price/Earnings |
12.86 |
| Price/Book |
1.31 |
| Price/Cash Flow |
14.17 |
| Price/Sales |
3.73 |
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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 |
| 6/30/2010 |
17 |
22 |
5 |
8 |
| 3/31/2010 |
13 |
27 |
4 |
1 |
| 12/31/2009 |
26 |
12 |
5 |
0 |
| 9/30/2009 |
15 |
24 |
10 |
7 |
| 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 |
| 6/30/2010 |
8 |
3 |
0 |
0 |
| 3/31/2010 |
8 |
8 |
0 |
0 |
| 12/31/2009 |
8 |
11 |
2 |
0 |
| 9/30/2009 |
5 |
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 7/30/2010) |
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3 Mos |
YTD |
1 Year |
3 Year |
5 Year |
10 Year |
Since
Fund
Inception4 |
| Fund Performance * |
| NAV |
-0.98% |
4.83% |
23.35% |
N/A |
N/A |
N/A |
-11.12% |
| After Tax Held |
-1.43% |
4.35% |
20.97% |
N/A |
N/A |
N/A |
-12.38% |
| After Tax Sold |
-0.66% |
3.11% |
15.09% |
N/A |
N/A |
N/A |
-9.98% |
| Market Price |
-2.13% |
5.31% |
23.33% |
N/A |
N/A |
N/A |
-11.08% |
| Index Performance ** |
| FTSE EPRA/NAREIT Developed Index |
-1.53% |
4.97% |
24.60% |
-9.44% |
1.23% |
N/A |
-10.28% |
| MSCI World Real Estate Investment Trust Index |
-0.95% |
6.24% |
32.47% |
-11.49% |
N/A |
N/A |
-12.67% |
| S&P Global REIT Index |
-1.18% |
8.64% |
37.58% |
-8.48% |
-0.42% |
N/A |
-9.58% |
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| Quarter End Performance (as of 6/30/2010) |
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3 Mos |
YTD |
1 Year |
3 Year |
5 Year |
10 Year |
Since
Fund
Inception4 |
| Fund Performance * |
| NAV |
-8.51% |
-4.89% |
23.37% |
N/A |
N/A |
N/A |
-14.41% |
| After Tax Held |
-8.92% |
-5.32% |
20.99% |
N/A |
N/A |
N/A |
-15.66% |
| After Tax Sold |
-5.53% |
-3.18% |
15.25% |
N/A |
N/A |
N/A |
-12.61% |
| Market Price |
-9.16% |
-4.87% |
21.79% |
N/A |
N/A |
N/A |
-14.50% |
| Index Performance ** |
| FTSE EPRA/NAREIT Developed Index |
-7.89% |
-4.23% |
25.05% |
-13.65% |
0.35% |
N/A |
-13.41% |
| MSCI World Real Estate Investment Trust Index |
-7.28% |
-3.69% |
31.66% |
-16.15% |
N/A |
N/A |
-15.97% |
| S&P Global REIT Index |
-6.36% |
-1.43% |
37.09% |
-13.34% |
-1.24% |
N/A |
-12.88% |
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3-Year Statistics (as of 7/30/2010)
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Standard Deviation |
Alpha |
Beta |
Sharpe Ratio |
Correlation |
| FTSE EPRA/NAREIT Developed Index |
32.35% |
-1.79 |
0.95 |
-0.23 |
0.98 |
| MSCI World Real Estate Investment Trust Index |
32.99% |
-3.53 |
0.99 |
-0.28 |
1.00 |
| S&P Global REIT Index |
33.36% |
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-0.18 |
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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 1.16%.
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 0.60% per year, at least until May 15, 2011.
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**
Past performance is not a guarantee of future results. Performance information for the FTSE EPRA/NAREIT Developed Index is for illustrative purposes only and does not represent actual fund performance. 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.
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.
The S&P Global REIT Index defines and measures the investable universe of publicly traded real estate investment trusts with constituents from 13 countries.
The MSCI World REIT Index is a free float-adjusted market capitalization weighted index that is designed to measure the real estate investment trusts from 23 developed markets around the world. The inception date of this index was 6/30/06. As such, the year 2007 is the first full year of available index 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 |
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.
Distribution rate is calculated by dividing the most recent annualized distribution paid or declared by the market price. |
| 3 |
All market capitalization numbers are in US$ Millions. |
| 4 |
Inception Date is 8/27/2007 |
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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 FTSE EPRA/NAREIT Developed 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.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 fund is concentrated in REITs which involves additional risks,
including limited diversification. There is no guarantee that the REITs in
the fund's portfolio will declare dividends in the future. Companies
involved in the real estate industry are subject to changes in the real
estate market, vacancy rates and competition, volatile interest rates
and economic recession.
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 FTSE EPRA/NAREIT Developed Index is calculated by FTSE International Limited ("FTSE"). FTSE does not sponsor, endorse or promote the First Trust FTSE EPRA/NAREIT Developed Markets Real Estate Index Fund. All copyright in the index values and constituent list vests in FTSE and/or its licensors. First Trust Advisors L.P. and the First Trust FTSE EPRA/NAREIT Developed Markets Real Estate Index Fund has obtained full license from FTSE to use such copyright in the creation of the First Trust FTSE EPRA/NAREIT Developed Markets Real Estate Index Fund. "FTSE®", "FT-SE®" and "Footsie®" are trademarks jointly owned by the London Stock Exchange Plc and the Financial Times Limited and are used by FTSE under license. "NAREIT®" is the trademark of the National Association of Real Estate Investment Trusts and "EPRA®" is the trademark of the European Public Real Estate Association and are used by FTSE under license.
Not FDIC Insured * Not Bank Guaranteed * May Lose Value
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