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| Investment Objective/Strategy -
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 NASDAQ OMX® Clean Edge® Smart Grid Infrastructure IndexSM. |
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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 track the performance of common stocks in the grid and electric energy infrastructure sector.The index includes companies that are
primarily engaged and involved in electric grid, electric meters and devices, networks, energy storage and management, and enabling software used by the
smart grid infrastructure sector.
- To be included in the index, a security must meet certain criteria including being classified as a smart grid, electric infrastructure and/or other grid-related
activities company according to Clean Edge, have a minimum float-adjusted worldwide market capitalization of $100 million, and have a minimum three-month
average daily dollar trading volume of $500 thousand.
- The index employs a modified market-capitalization weighting methodology. At each evaluation, the index securities are classified as Pure Play or Diversified.
The Pure Play securities are given a collective weight of 80% and the Diversified securities are given a collective weight of 20% in the index.
- The index is rebalanced quarterly and reconstituted semi-annually.
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Fund Overview
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| Ticker |
GRID |
| Fund Type |
Global Equity |
| Investment Advisor |
First Trust Advisors L.P. |
| Investor Servicing Agent |
Bank of New York |
| CUSIP |
33737A108 |
| Intraday NAV |
GRIDIV |
| Fiscal Year-End |
09/30 |
| Exchange |
NASDAQ Stock Market |
| Inception |
11/16/2009 |
| Inception Price |
$30.00 |
| Inception NAV |
$30.00 |
Gross Expense Ratio
(3/31/2010) |
1.05% |
| Net Expense Ratio |
0.70% |
| 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 0.70% per year, at least until
November 9, 2011. |
| 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 |
$28.99 |
| Bid/Ask Midpoint |
$29.01 |
| Closing NAV |
$29.09 |
| Bid/Ask Discount |
0.28% |
| Total Net Assets |
$30,541,846 |
| Common Shares Outstanding |
1,050,002 |
| Dividend Frequency |
Semi-Annual |
| Dividend per Share Amt1 |
$0.1076 |
| Daily Volume |
3,744 |
| Average 30-Day Daily Volume |
4,551 |
| Closing Share Price 52-Week High/Low |
$33.50 / $27.24 |
| Closing NAV 52-Week High/Low |
$33.34 / $27.31 |
| Number of Stocks |
32 |
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| Top 10 Holdings (as of 9/1/2010) |
| Holdings |
Percent (%) |
| Prysmian SpA |
8.57 |
| SMA Solar Technology AG |
8.33 |
| Schneider Electric S.A. |
8.20 |
| NGK Insulators, Ltd. |
6.90 |
| Quanta Services, Inc. |
6.78 |
| Power-One, Inc. |
5.19 |
| ESCO Technologies Inc. |
4.79 |
| ITC Holdings Corporation |
4.33 |
| EnerNOC, Inc. |
4.31 |
| American Superconductor Corporation |
3.78 |
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| Industrials |
78.28% |
| Oil & Gas |
8.33% |
| Technology |
6.79% |
| Utilities |
6.60% |
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| Fund Characteristics (as of 7/30/2010) 2 |
| Median Market Cap. |
$1,225 |
| Maximum Market Cap. |
$172,105 |
| Minimum Market Cap. |
$174 |
| Price/Earnings |
20.02 |
| Price/Book |
2.19 |
| Price/Cash Flow |
10.19 |
| Price/Sales |
1.14 |
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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 |
44 |
2 |
0 |
0 |
| 3/31/2010 |
50 |
1 |
3 |
1 |
| 12/31/2009 |
26 |
2 |
1 |
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 |
| 6/30/2010 |
15 |
2 |
0 |
0 |
| 3/31/2010 |
5 |
0 |
0 |
1 |
| 12/31/2009 |
1 |
0 |
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 7/30/2010) |
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3 Mos |
YTD |
1 Year |
3 Year |
5 Year |
10 Year |
Since
Fund
Inception3 |
| Fund Performance * |
| NAV |
-1.57% |
-2.50% |
N/A |
N/A |
N/A |
N/A |
3.88% |
| After Tax Held |
-1.71% |
-2.63% |
N/A |
N/A |
N/A |
N/A |
3.72% |
| After Tax Sold |
-1.03% |
-1.63% |
N/A |
N/A |
N/A |
N/A |
2.51% |
| Market Price |
-1.63% |
-2.74% |
N/A |
N/A |
N/A |
N/A |
4.01% |
| Index Performance ** |
| NASDAQ OMX Clean Edge Smart Grid Infrastructure Index |
-1.60% |
-2.02% |
N/A |
N/A |
N/A |
N/A |
4.55% |
| MSCI World Industrials Index |
-5.54% |
4.97% |
N/A |
N/A |
N/A |
N/A |
4.18% |
| S&P 1500 Industrials Index |
-7.14% |
8.70% |
N/A |
N/A |
N/A |
N/A |
8.54% |
| Russell 3000® Index |
-7.17% |
0.47% |
N/A |
N/A |
N/A |
N/A |
1.77% |
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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
Inception3 |
| Fund Performance * |
| NAV |
-10.74% |
-14.06% |
N/A |
N/A |
N/A |
N/A |
-8.44% |
| After Tax Held |
-10.86% |
-14.18% |
N/A |
N/A |
N/A |
N/A |
-8.58% |
| After Tax Sold |
-6.98% |
-9.14% |
N/A |
N/A |
N/A |
N/A |
-5.48% |
| Market Price |
-10.79% |
-14.35% |
N/A |
N/A |
N/A |
N/A |
-8.41% |
| Index Performance ** |
| NASDAQ OMX Clean Edge Smart Grid Infrastructure Index |
-10.11% |
-13.26% |
N/A |
N/A |
N/A |
N/A |
-7.45% |
| MSCI World Industrials Index |
-11.65% |
-3.73% |
N/A |
N/A |
N/A |
N/A |
-4.46% |
| S&P 1500 Industrials Index |
-12.01% |
-1.27% |
N/A |
N/A |
N/A |
N/A |
-1.41% |
| Russell 3000® Index |
-11.32% |
-6.05% |
N/A |
N/A |
N/A |
N/A |
-4.84% |
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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 1.05%.
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 0.70% per year, at least until November 09, 2011.
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**Past performance is not a guarantee of future results. Performance information for The NASDAQ OMX® Smart Grid Infrastructure IndexSM 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 S&P Composite 1500 Industrials Index is a capitalization-weighted index of companies classified by GICS as industrials within the S&P Composite 1500 Index.
The Russell 3000® Index is comprised of the 3000 largest and most liquid stocks based and traded in the U.S.
The MSCI World Industrials Index is a free float-adjusted market capitalization weighted index that is designed to measure the industrials sector performance of 23 developed markets around the world.
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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 |
All market capitalization numbers are in US$ Millions. |
| 3 |
Inception Date is 11/16/2009 |
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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 NASDAQ OMX® Clean Edge® Smart Grid Infrastructure IndexSM.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.
This fund is concentrated in stocks in the industrials sector which involves additional risks, including limited diversification.The companies engaged in the industrials sector
are subject to certain risks, including a deterioration in the general state of the economy, intense competition, domestic and international politics, excess capacity and
changing spending trends.
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.
NASDAQ®,NASDAQ OMX®, and Clean Edge® are the registered trademarks (the "Marks") of The NASDAQ OMX Group, Inc. ("NASDAQ OMX") and Clean Edge, Inc. ("Clean Edge") respectively.NASDAQ
OMX® and Clean Edge® are, collectively with their affiliates, the "Corporations". The Marks are licensed for use by First Trust Advisors L.P.The Fund has not been passed on by the Corporations as to its
legality or suitability.The Fund is not issued, endorsed, sold or promoted by the Corporations.The Fund should not be construed in any way as investment advice by the Corporations. THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH
RESPECT TO THE FUND.
Not FDIC Insured * Not Bank Guaranteed * May Lose Value
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