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First Trust US IPO Index Fund (FPX)
  • 2016 Estimated Capital Gain Distributions
    Certain First Trust Exchange-Traded Funds are expected to pay a long-term capital gain distribution in December.  For a list of exchange-traded funds expected to pay a long-term capital gain distribution, please click here.  Short-term capital gain distributions, if any, are expected to be nominal and are taxed like ordinary income.  Final determination of the source and tax status of all distributions paid in the current year are to be made after year-end and could differ from the expectations noted above. 
Investment Objective/Strategy - The First Trust US IPO 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 IPOX®-100 U.S. Index.
There can be no assurance that the Fund's investment objectives will be achieved.
  • The IPOX®-100 U.S. Index is a modified value-weighted price index measuring the performance of the top 100 companies ranked quarterly by market capitalization in the IPOX® Global Composite Index.
  • The index utilizes a 10% capping on all constituents and includes the 100 largest, typically best performing and most liquid U.S. public offerings ("IPOs") in the IPOX® Global Composite Index.
  • The index is a rules based value-weighted index measuring the average performance of U.S. IPOs during the first 1000 trading days. Index constituents are selected based on quantitative initial screens.
  • The index is reconstituted and adjusted quarterly.
Benefits of the First Trust US IPO Index Fund
  • Systematic exposure to U.S. Equity Capital and Private Equity Activity and the growth and innovativeness of the U.S. economy via a semi-passive indexing approach.
  • Based on well researched, totally disciplined and transparent index methodology. The IPOX®-100 U.S. Index has historically captured around 85% of total market capitalization created through U.S. IPO activity during the past four years. Tilt towards mid- and large-cap stocks.
  • Investment tool for buy-and-hold investors seeking timely and systematic IPO exposure as well as active market participants due to dynamic index properties.
Fund Overview
Fund TypeGrowth
Investment AdvisorFirst Trust Advisors L.P.
Investor Servicing AgentBank of New York Mellon
Fiscal Year-End12/31
ExchangeNYSE Arca
Inception Price$20.00
Inception NAV$20.00
Rebalance FrequencyQuarterly
Gross Expense Ratio*0.60%
Net Expense Ratio*0.60%
* As of 5/20/2016
Expenses are capped contractually at 0.60% per year, at least until May 19, 2017.
Current Fund Data (as of 12/1/2016)
Closing NAV1$52.83
Closing Share Price2$52.82
Bid/Ask Midpoint$52.83
Bid/Ask Discount0.00%
Total Net Assets$594,289,917
Outstanding Shares11,250,002
Daily Volume98,730
Average 30-Day Daily Volume83,202
Closing Share Price 52-Week High/Low$54.59 / $42.76
Closing NAV 52-Week High/Low$54.61 / $42.77
Number of Holdings99
Fund Characteristics (as of 11/30/2016)9
Maximum Market Cap.$341,306
Median Market Cap.$6,058
Minimum Market Cap.$1,085
Price/Cash Flow16.18
Top Holdings (as of 12/2/2016)
Holding Percent
The Kraft Heinz Company 9.17%
AbbVie Inc. 9.00%
Facebook, Inc. (Class A) 6.05%
Shire Plc (ADR) 4.89%
PayPal Holdings, Inc. 4.34%
Hewlett Packard Enterprise Company 3.69%
Synchrony Financial 2.68%
Hilton Worldwide Holdings Inc. 2.33%
Zoetis Inc. 2.26%
Restaurant Brands International Inc. 2.05%

Holdings are subject to change.

NAV History (Since Inception)
Past performance is not indicative of future results.
Overall Morningstar RatingTM (as of 10/31/2016)3

Among 1439 funds in the Large Growth category. This fund was rated 3 stars/1439 funds (3 years), 5 stars/1252 funds (5 years), 5 stars/896 funds (10 years).
Distribution Information
Dividend per Share Amt4$0.0731
30-Day SEC Yield (as of 10/31/2016)50.64%
Unsubsidized 30-Day SEC Yield (as of 10/31/2016)60.64%
12-Month Distribution Rate (as of 10/31/2016)70.79%
Index Yield (as of 10/31/2016)81.08%
Bid/Ask Midpoint vs. NAV (as of 9/30/2016)
Number of Days Bid/Ask Midpoint Above NAV
Quarter Ended 0-49
Basis Points
Basis Points
Basis Points
Basis Points
9/30/2016 31 0 0 0
6/30/2016 25 0 0 0
3/31/2016 16 0 0 0
12/31/2015 36 0 0 0
Number of Days Bid/Ask Midpoint Below NAV
Quarter Ended 0-49
Basis Points
Basis Points
Basis Points
Basis Points
9/30/2016 33 0 0 0
6/30/2016 39 0 0 0
3/31/2016 45 0 0 0
12/31/2015 28 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 12/2/2016)
Information Technology 28.49%
Health Care 19.47%
Consumer Discretionary 14.24%
Consumer Staples 12.15%
Industrials 8.48%
Financials 7.99%
Energy 3.16%
Materials 2.50%
Real Estate 2.48%
Telecommunication Services 0.75%
Month End Performance (as of 10/31/2016)
  3 Mos YTD 1 Year 3 Year 5 Year 10 Year Since
Fund Performance *
Net Asset Value (NAV) -1.65% 2.96% 1.21% 7.90% 17.76% 10.65% 10.46%
After Tax Held -1.71% 2.70% 0.86% 7.56% 17.33% 10.29% 10.11%
After Tax Sold -0.93% 1.67% 0.68% 5.96% 14.21% 8.62% 8.49%
Market Price -1.63% 3.00% 1.25% 7.89% 17.80% 10.67% 10.46%
Index Performance **
IPOX-100 U.S. Index -1.54% 3.38% 1.73% 8.52% 18.46% 11.32% 11.13%
S&P 500 Index -1.67% 5.87% 4.51% 8.84% 13.57% 6.70% 7.12%
Russell 3000® Index -1.76% 5.84% 4.24% 8.13% 13.35% 6.76% 7.08%
Quarter End Performance (as of 9/30/2016)
  3 Mos YTD 1 Year 3 Year 5 Year 10 Year Since
Fund Performance *
Net Asset Value (NAV) 7.66% 6.96% 12.46% 10.50% 21.51% 11.77% 10.95%
After Tax Held 7.60% 6.68% 12.07% 10.14% 21.06% 11.40% 10.60%
After Tax Sold 4.34% 3.93% 7.04% 8.00% 17.41% 9.60% 8.92%
Market Price 7.60% 6.94% 12.65% 10.45% 21.53% 11.78% 10.95%
Index Performance **
IPOX-100 U.S. Index 7.81% 7.36% 13.04% 11.14% 22.23% 12.44% 11.62%
S&P 500 Index 3.85% 7.84% 15.43% 11.16% 16.37% 7.24% 7.37%
Russell 3000® Index 4.40% 8.18% 14.96% 10.44% 16.36% 7.37% 7.36%
3-Year Statistics (as of 10/31/2016)
  Standard Deviation Alpha Beta Sharpe Ratio Correlation
FPX 13.53% -1.05 1.14 0.60 0.92
S&P 500 Index 10.71% 0.84 0.97 0.81 0.99
Russell 3000® Index 10.93% --- 1.00 0.73 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 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. 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 IPOX-100 U.S. Index is for illustrative purposes only and does not represent actual fund performance.
Indexes do 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 May 19, 2017.

S&P 500 Index - The Index is an unmanaged index of 500 stocks used to measure large-cap U.S. stock market performance.

Russell 3000® Index - The Index is comprised of the 3000 largest and most liquid stocks based and traded in the U.S.

1 The NAV represents the fund's net assets (assets less liabilities) divided by the fund's outstanding shares .
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).
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 to today's date. Subject to change in the future. There is no guarantee that the fund will declare dividends.
5 The 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 and includes the effects of fee waivers and expense reimbursements, if applicable.
6 The unsubsidized 30-day SEC yield is calculated the same as the 30-day SEC yield, however it excludes contractual fee waivers and expense reimbursements.
7 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.
8 Index yield represents the weighted average trailing 12-month dividend of the constituents of the IPOX-100 U.S. Index.
9 All market capitalization numbers are in USD$ Millions.
10 Inception Date is 4/12/2006

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 IPOX-100 U.S. Index.  Securities held by the fund will generally not be bought or sold in response to market fluctuations.

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. If the fund's authorized participants are unable to proceed with creation/redemption orders and no other authorized participant is able to step forward to create or redeem, fund shares may trade at a discount to the fund's net asset value and possibly face delisting.

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. There can be no assurance that the fund's investment objective will be achieved.

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.

The stocks of companies that have recently conducted an initial public offering are often subject to price volatility and speculative trading. These stocks may have exhibited above-average price appreciation in connection with the initial public offering prior to inclusion in the fund. The price of stocks included in the fund may not continue to appreciate and their performance may not replicate the performance exhibited in the past.

The fund is classified as "non-diversified" and may invest a relatively high percentage of its assets in a limited number of issuers. As a result, the fund may be more susceptible to a single adverse economic or regulatory occurrence affecting one or more of these issuers, experience increased volatility and be highly concentrated in certain issuers.

First Trust Advisors L.P. is the adviser to the fund. First Trust Advisors L.P. is an affiliate of First Trust Portfolios L.P., the fund's distributor.

A patent with respect to the IPOX® index methodology has been issued (U.S. Pat. No. 7,698,197). IPOX® is a registered international trademark of IPOX® Schuster LLC (www.ipoxschuster.com).

©2016 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
First Trust Portfolios L.P.  Member SIPC and FINRA.
First Trust Advisors L.P.
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