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| Investment Objective/Strategy -
The First Trust ISE Water 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 ISE Water Index. |
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| There can be no assurance that the Fund's investment objectives will be achieved. |
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- The ISE Water IndexTM is a modified market capitalization-weighted index comprised of exchange-listed companies that derive a substantial portion of their revenues from the potable and wastewater industry.
- The Index begins by establishing the total population of stocks in the potable and wastewater industry and eliminates stocks which do not meet the Index’s baseline eligibility requirements.
- To meet Index eligibility, a stock must satisfy market capitalization, liquidity and weighting concentration requirements.
- The Index selects the top 36 stocks in the industry by market capitalization.
- The Index is rebalanced on the application of the above model on a semi-annual basis.
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Fund Overview
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| Ticker |
FIW |
| Fund Type |
Sector - Water |
| Investment Advisor |
First Trust Advisors L.P. |
| Investor Servicing Agent |
Bank of New York |
| CUSIP |
33733B100 |
| Intraday NAV |
FIWIV |
| Fiscal Year-End |
12/31 |
| Exchange |
NYSE Arca |
| Inception |
5/8/2007 |
| Inception Price |
$20.00 |
| Inception NAV |
$20.00 |
Gross Expense Ratio
(6/30/2009) |
0.84% |
| Net Expense Ratio |
0.60% |
| Rebalance Frequency |
SEMIANNUAL |
| Marginable |
Yes |
| Options |
Yes |
| 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, 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 |
$17.36 |
| Bid/Ask Midpoint |
$17.37 |
| Closing NAV |
$17.38 |
| Bid/Ask Discount |
0.06% |
| Total Net Assets |
$36,497,505 |
| Common Shares Outstanding |
2,100,002 |
| Dividend Frequency |
Semi-Annual |
| Dividend per Share Amt1 |
$0.0740 |
| Daily Volume |
52,932 |
| Average 30-Day Daily Volume |
17,366 |
| Closing Share Price 52-Week High/Low |
$19.36 / $11.37 |
| Closing NAV 52-Week High/Low |
$19.37 / $11.42 |
| Number of Stocks |
37 |
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| Financials |
1.96% |
| Health Care |
3.64% |
| Industrials |
52.75% |
| Information Technology |
4.10% |
| Materials |
10.96% |
| Other |
0.00% |
| Utilities |
26.59% |
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| Top 10 Holdings (as of 2/8/2010) |
| Holdings |
Percent (%) |
| Aqua America Inc. |
4.21 |
| American Water Works Company, Inc. |
4.19 |
| Danaher Corporation |
4.17 |
| Pentair, Inc. |
4.12 |
| Veolia Environnement (ADR) |
4.08 |
| IDEX Corporation |
4.02 |
| ITT Corp. |
3.96 |
| Nalco Holding Co. |
3.91 |
| Millipore Corporation |
3.64 |
| Companhia de Saneamento Basico do Estado de Sao Paulo-SABESP (ADR) |
3.63 |
| Fund Characteristics (as of 1/29/2010) 3 |
| Median Market Cap. |
$1,608 |
| Maximum Market Cap. |
$23,027 |
| Minimum Market Cap. |
$151 |
| Price/Earnings |
18.23 |
| Price/Book |
1.64 |
| Price/Cash Flow |
7.12 |
| Price/Sales |
1.03 |
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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 |
30 |
0 |
0 |
0 |
| 9/30/2009 |
33 |
1 |
0 |
0 |
| 6/30/2009 |
24 |
3 |
0 |
0 |
| 3/31/2009 |
16 |
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 |
34 |
0 |
0 |
0 |
| 9/30/2009 |
28 |
2 |
0 |
0 |
| 6/30/2009 |
32 |
4 |
0 |
0 |
| 3/31/2009 |
37 |
7 |
1 |
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 |
1.91% |
-5.95% |
24.66% |
N/A |
N/A |
N/A |
-3.95% |
| After Tax Held |
1.77% |
-5.95% |
24.16% |
N/A |
N/A |
N/A |
-4.20% |
| After Tax Sold |
1.24% |
-3.87% |
16.02% |
N/A |
N/A |
N/A |
-3.49% |
| Market Price |
1.96% |
-5.79% |
22.90% |
N/A |
N/A |
N/A |
-3.91% |
| Index Performance ** |
| ISE Water Index™ |
2.11% |
-5.86% |
25.63% |
-1.81% |
N/A |
N/A |
-3.34% |
| Russell 3000® Index |
4.78% |
-3.60% |
35.05% |
-7.16% |
N/A |
N/A |
-9.54% |
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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 |
2.65% |
20.29% |
20.29% |
N/A |
N/A |
N/A |
-1.83% |
| After Tax Held |
2.51% |
19.82% |
19.82% |
N/A |
N/A |
N/A |
-2.10% |
| After Tax Sold |
1.72% |
13.16% |
13.16% |
N/A |
N/A |
N/A |
-1.71% |
| Market Price |
2.54% |
20.69% |
20.69% |
N/A |
N/A |
N/A |
-1.85% |
| Index Performance ** |
| ISE Water Index™ |
2.85% |
21.21% |
21.21% |
0.85% |
N/A |
N/A |
-1.21% |
| Russell 3000® Index |
5.90% |
28.34% |
28.34% |
-5.42% |
N/A |
N/A |
-8.55% |
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3-Year Statistics (as of 1/29/2010)
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Standard Deviation |
Alpha |
Beta |
Sharpe Ratio |
Correlation |
| ISE Water Index™ |
24.82% |
7.47 |
1.10 |
-0.09 |
0.92 |
| Russell 3000® Index |
20.65% |
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-0.43 |
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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 fund shares have not been sold. After Tax Sold returns represent the return after taxes on distributions and the sale of fund shares. 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. Returns do not represent the returns you would receive if you traded shares at other times. The fund's performance reflects fee waivers and expense reimbursements, absent which performance would have been lower.
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 0.84%.
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, 2010.
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**Past performance is not a guarantee of future results. Performance information for the ISE Water 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 Russell 3000 Index is comprised of the 3000 largest and most liquid stocks based and traded in the U.S.
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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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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 ISE Water IndexTM. 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.
You should be aware that the portfolio is concentrated in the water industry making it subject to additional risks, including limited diversification. The companies engaged in the water industry are subject to certain risks, including price and supply fluctuations caused by international politics, energy conservation, taxes, and other regulatory policies of various governments.
The First Trust ISE Water Index Fund is not sponsored, endorsed, sold or promoted by the International Securities Exchange
(ISE). ISE makes no representation or warranty, express or implied, to the owners of the fund or any member of the public
regarding the advisability of trading in the fund. ISE's only relationship to First Trust is the licensing of certain trademarks
and trade names of the ISE and of the ISE Water IndexTM which is determined, composed and calculated by ISE without
regard to First Trust or 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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