Home   Logon   Mobile Site   Research and Commentary   About Us   Call 1.800.621.1675 or Email Us       Follow First Trust: 

Search by Ticker, Keyword or CUSIP       
 
 
First Trust S&P REIT Index Fund (FRI)
Investment Objective/Strategy - The First Trust S&P REIT Index Fund is an exchange-traded fund. This exchange-traded Fund seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of an equity index called the S&P United States REIT Index.
There can be no assurance that the Fund's investment objectives will be achieved.
  • The S&P United States REIT Index measures the investable U.S. real estate investment trust market and maintains a constituency that reflects the market’s overall composition.
  • All securities added to the S&P United States REIT Index must meet certain liquidity and market capitalization requirements.
  • The Standard & Poor’s Index Committee, a team of Standard & Poor’s economists and index analysts, maintains the S&P United States REIT Index. Maintenance includes implementation of daily corporate actions, quarterly updates of significant events, and annual portfolio reconstitution each September. Share adjustments that exceed 5% are made at the time of the change. Share adjustments of less than 5% are made on a quarterly basis.
Fund Overview
TickerFRI
Fund TypeREIT
Investment AdvisorFirst Trust Advisors L.P.
Investor Servicing AgentBank of New York
CUSIP33734G108
Intraday NAVFRIIV
Fiscal Year-End12/31
ExchangeNYSE Arca
Inception5/8/2007
Inception Price$20.00
Inception NAV$20.00
Gross Expense Ratio
(12/31/2012)		0.50%
Net Expense Ratio0.50%
Rebalance FrequencyQuarterly
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 0.50% per year, at least until April 30, 2013.
Current Fund Data (as of 5/23/2013)
Closing NAV1$20.25
Closing Share Price2$20.24
Bid/Ask Midpoint$20.25
Bid/Ask Premium0.02%
Total Net Assets$529,420,214
Outstanding Shares26,150,002
Daily Volume263,057
Average 30-Day Daily Volume101,125
Closing Share Price 52-Week High/Low$21.16 / $16.26
Closing NAV 52-Week High/Low$21.15 / $16.29
Number of Holdings128
Fund Characteristics (as of 4/30/2013)7
Median Market Cap.$2,375
Maximum Market Cap.$55,468
Minimum Market Cap.$109
Price/Earnings48.55
Price/Book2.29
Price/Cash Flow18.10
Price/Sales6.63
Top 10 Holdings (as of 5/24/2013)
Holding Percent
Simon Property Group, Inc. 10.16%
Public Storage 4.35%
HCP, Inc. 4.28%
Ventas, Inc. 4.16%
Prologis, Inc. 3.89%
Health Care REIT, Inc. 3.86%
Equity Residential 3.59%
Boston Properties, Inc. 3.16%
Avalonbay Communities, Inc. 2.93%
Vornado Realty Trust 2.65%
Bid/Ask Midpoint and NAV History (Since Inception)
Past performance is not indicative of future results.
Volume (Since Inception)
Distribution Information
Dividend per Share Amt3$0.0711
30-Day SEC Yield (as of 4/30/2013)42.85%
12-Month Distribution Rate (as of 4/30/2013)52.16%
Index Yield (as of 4/30/2013)63.42%
Bid/Ask Midpoint vs. NAV (as of 3/31/2013)
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
3/31/2013 42 0 0 0
12/31/2012 41 0 0 0
9/30/2012 42 0 0 0
6/30/2012 35 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
3/31/2013 18 0 0 0
12/31/2012 21 0 0 0
9/30/2012 21 0 0 0
6/30/2012 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.

Sector Breakdown (as of 5/24/2013)
Diversified REITs 8.08%
Industrial REITs 5.28%
Office REITs 13.52%
Residential REITs 15.94%
Retail REITs 26.83%
Specialized REITs 30.35%
Month End Performance (as of 4/30/2013)
  3 Mos YTD 1 Year 3 Year 5 Year 10 Year Since
Fund
Inception8
Fund Performance *
NAV 11.06% 15.13% 18.79% 16.60% 6.42% N/A 2.80%
After Tax Held 10.89% 14.95% 17.66% 15.65% 5.50% N/A 1.92%
After Tax Sold 6.26% 8.56% 10.75% 12.63% 4.56% N/A 1.73%
Market Price 11.12% 15.19% 18.85% 16.59% 6.40% N/A 2.81%
Index Performance **
S&P United States REIT Index 11.24% 15.36% 19.43% 17.22% N/A N/A N/A
FTSE EPRA/NAREIT North America Index 10.53% 14.24% 18.35% 17.05% 6.76% N/A 3.24%
Russell 3000® Index 7.02% 12.89% 17.21% 12.78% 5.63% N/A 3.45%
Quarter End Performance (as of 3/28/2013)
  3 Mos YTD 1 Year 3 Year 5 Year 10 Year Since
Fund
Inception8
Fund Performance *
NAV 7.95% 7.95% 14.57% 16.73% 6.29% N/A 1.72%
After Tax Held 7.78% 7.78% 13.48% 15.77% 5.37% N/A 0.84%
After Tax Sold 4.50% 4.50% 8.40% 12.76% 4.47% N/A 0.91%
Market Price 7.89% 7.89% 14.38% 16.67% 6.10% N/A 1.71%
Index Performance **
S&P United States REIT Index 8.10% 8.10% 15.17% 17.33% N/A N/A N/A
FTSE EPRA/NAREIT North America Index 7.07% 7.07% 14.33% 17.00% 6.57% N/A 2.16%
Russell 3000® Index 11.07% 11.07% 14.56% 12.97% 6.32% N/A 3.21%
3-Year Statistics (as of 4/30/2013)
  Standard Deviation Alpha Beta Sharpe Ratio Correlation
First Trust S&P REIT Index Fund 16.94% 4.76 0.91 0.96 0.84
FTSE EPRA/NAREIT North America Index 16.62% 5.12 0.90 1.00 0.85
Russell 3000® Index 15.65% --- --- 0.81 ---
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. You can obtain performance information which is current through the most recent month-end by visiting ftportfolios.com.

On November 6, 2008, the fund's underlying index changed from the S&P REIT Composite Index to the S&P United States REIT Index. Therefore, the fund's performance and historical returns shown for the periods prior to November 6, 2008 are not necessarily indicative of the performance that the fund, based on its current index, would have generated.

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.

**Past performance is not a guarantee of future results. Performance information for the S&P United States REIT 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.

The gross expense ratio for this fund is 0.50%. 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 0.50% per year, at least until April 30, 2013.

The FTSE EPRA/NAREIT North America Index is modified market cap weighted based on free float market capitalization and tracks the performance of listed real estate companies or REITs in North America.

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

Footnotes
1 The NAV represents the fund's net assets (assets less liabilities) divided by the fund's shares outstanding.
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).
3 Most recent distribution paid or declared through today's date. Subject to change in the future.
4 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.
5 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.
6 Index yield represents the weighted average trailing 12-month dividend of the constituents of the S&P United States REIT Index
7 All market capitalization numbers are in USD$ Millions.
8 Inception Date is 5/8/2007

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 S&P United States REIT 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.

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.

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 may invest in small capitalization and mid capitalization companies. Such companies may experience greater price volatility than larger, more established companies.

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.

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.

Standard & Poor's® and S&P® are registered trademarks of Standard & Poor's Financial Services LLC ("S&P") and have been licensed for use by First Trust Advisors L.P. The First Trust S&P REIT Index Fund is not sponsored, endorsed, sold or promoted by S&P or its affiliates, and S&P and its affiliates make no representation, warranty or condition regarding the advisability of buying, selling or holding shares of the First Trust S&P REIT Index Fund.

Not FDIC Insured • Not Bank Guaranteed • May Lose Value
 
First Trust Portfolios L.P.  Member SIPC and FINRA.
First Trust Advisors L.P.
Home |  Important Legal Information |  Privacy Policy |  Business Continuity Plan
Copyright © 2013 All rights reserved.