|
|
| Investment Objective/Strategy -
The First Trust NASDAQ® ABA Community Bank Index 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® ABA Community Bank IndexSM. |
| |
| There can be no assurance that the Fund's investment objectives will be achieved. |
|
|
This exchange-traded fund seeks investment results that correspond generally to the price and yield (before the fund’s fees and expenses) of the NASDAQ OMX® ABA
Community Bank IndexSM.
- The index is a market capitalization-weighted index that includes the common stock of all NASDAQ® listed banks and thrifts or their holding companies that
are designated as banks by the Industry Classification Benchmark (or that which the American Bankers Association determines should be classified as such),
but excluding:
- Any of the 50 largest banks or thrifts and their holding companies based on asset size as determined by the most recently available call report data as compiled
by the FDIC.
- Any banks or thrifts classified as having an “international specialization” or a “credit-card specialization” as determined by the most recently available call report
data as compiled by the FDIC, provided that such institutions constitute the majority of assets if in a holding company.
- A security must have a market capitalization of at least $200 million and a three-month average daily dollar trading volume of at least $500 thousand.
- In addition, a security must meet certain operating history, solvency, and financial statement requirements to remain eligible for inclusion in the index.
- The index is rebalanced quarterly and reconstituted semi-annually.
|
|
Fund Overview
|
| Ticker |
QABA |
| Fund Type |
Community Bank |
| Investment Advisor |
First Trust Advisors L.P. |
| Investor Servicing Agent |
Bank of New York |
| CUSIP |
33736Q104 |
| Intraday NAV |
QABA.IV |
| Fiscal Year-End |
12/31 |
| Exchange |
NASDAQ Stock Market |
| Inception |
6/29/2009 |
| Inception Price |
$20.00 |
| Inception NAV |
$20.00 |
Gross Expense Ratio
(12/31/2009) |
2.67% |
| 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
June 30, 2011. |
| Bid/Ask Midpoint and NAV History (Since Inception) |
 |
|
Past performance is not indicative of future results.
|
|
|
Current Fund Data (as of 9/1/2010)
|
| Closing Share Price |
$21.20 |
| Bid/Ask Midpoint |
$21.27 |
| Closing NAV |
$21.28 |
| Bid/Ask Discount |
0.03% |
| Total Net Assets |
$8,510,978 |
| Common Shares Outstanding |
400,002 |
| Dividend Frequency |
Semi-Annual |
| Dividend per Share Amt1 |
$0.1429 |
| Daily Volume |
693 |
| Average 30-Day Daily Volume |
3,219 |
| Closing Share Price 52-Week High/Low |
$28.10 / $20.49 |
| Closing NAV 52-Week High/Low |
$28.13 / $20.37 |
| Number of Stocks |
113 |
|
| Top 10 Holdings (as of 9/1/2010) |
| Holdings |
Percent (%) |
| People's United Financial Inc. |
5.39 |
| BOK Financial Corporation |
3.51 |
| Zions Bancorporation |
3.49 |
| Commerce Bancshares, Inc. |
3.45 |
| TFS Financial Corp |
3.25 |
| Popular, Inc. |
3.14 |
| First Niagara Financial Group, Inc. |
2.74 |
| East West Bancorp, Inc. |
2.55 |
| Associated Banc-Corp |
2.45 |
| FirstMerit Corporation |
2.17 |
|
|
|
| Fund Characteristics (as of 7/30/2010) 2 |
| Median Market Cap. |
$458 |
| Maximum Market Cap. |
$4,962 |
| Minimum Market Cap. |
$139 |
| Price/Earnings |
16.39 |
| Price/Book |
1.13 |
| Price/Cash Flow |
8.19 |
| Price/Sales |
2.35 |
|
| 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 |
39 |
0 |
0 |
0 |
| 3/31/2010 |
45 |
1 |
0 |
0 |
| 12/31/2009 |
29 |
0 |
0 |
0 |
| 9/30/2009 |
31 |
3 |
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 |
24 |
0 |
0 |
0 |
| 3/31/2010 |
15 |
0 |
0 |
0 |
| 12/31/2009 |
35 |
0 |
0 |
0 |
| 9/30/2009 |
27 |
2 |
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.
|
| Month End Performance (as of 7/30/2010) |
| |
3 Mos |
YTD |
1 Year |
3 Year |
5 Year |
10 Year |
Since
Fund
Inception3 |
| Fund Performance * |
| NAV |
-12.75% |
4.81% |
10.44% |
N/A |
N/A |
N/A |
16.64% |
| After Tax Held |
-12.94% |
4.58% |
9.94% |
N/A |
N/A |
N/A |
16.15% |
| After Tax Sold |
-8.29% |
3.12% |
6.77% |
N/A |
N/A |
N/A |
13.87% |
| Market Price |
-12.71% |
4.67% |
10.28% |
N/A |
N/A |
N/A |
16.68% |
| Index Performance ** |
| NASDAQ OMX® ABA® Community Bank Index(SM) |
-12.63% |
5.15% |
11.14% |
N/A |
N/A |
N/A |
17.35% |
| S&P Composite 1500 Financials Sector Index |
-8.55% |
3.48% |
16.09% |
N/A |
N/A |
N/A |
23.07% |
| Russell 3000® Index |
-7.17% |
0.47% |
14.82% |
N/A |
N/A |
N/A |
20.80% |
|
| Quarter End Performance (as of 6/30/2010) |
| |
3 Mos |
YTD |
1 Year |
3 Year |
5 Year |
10 Year |
Since
Fund
Inception3 |
| Fund Performance * |
| NAV |
-10.19% |
1.40% |
16.35% |
N/A |
N/A |
N/A |
14.21% |
| After Tax Held |
-10.38% |
1.17% |
15.83% |
N/A |
N/A |
N/A |
13.70% |
| After Tax Sold |
-6.62% |
0.91% |
10.63% |
N/A |
N/A |
N/A |
11.78% |
| Market Price |
-9.95% |
1.48% |
14.68% |
N/A |
N/A |
N/A |
14.51% |
| Index Performance ** |
| NASDAQ OMX® ABA® Community Bank Index(SM) |
-10.08% |
1.65% |
17.03% |
N/A |
N/A |
N/A |
15.00% |
| S&P Composite 1500 Financials Sector Index |
-12.65% |
-3.04% |
18.59% |
N/A |
N/A |
N/A |
17.38% |
| Russell 3000® Index |
-11.32% |
-6.05% |
15.72% |
N/A |
N/A |
N/A |
14.80% |
|
|
|
*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 2.67%.
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 June 30, 2011.
|
**Past performance is not a guarantee of future results. Performance information for The NASDAQ OMX® ABA
Community Bank 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 Financials Index is a capitalization-weighted index of companies classified by GICS as financials 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.
|
| Footnotes
|
| 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 6/29/2009 |
|
|
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.
|
|
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® ABA Community Bank 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 the securities of NASDAQ® listed community banks as defined by the index which involves additional risks, including limited diversification.
These companies are subject to certain risks, including the adverse effects of volatile interest rates, economic recession, increased competition from new
entrants in the field, and potential increased regulation.The financial performance of these companies may also be highly dependent upon the business environment in
certain geographic regions of the U.S. and may be adversely impacted by any downturn or unfavorable economic or employment developments in their local markets and
the U.S. as a whole. These companies may also be subject to interest rate risks and changes in monetary policy as their earnings are largely dependent upon their net
interest income and lending risks that could further increase because of increases in interest rates and/or continuing economic weakness.
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®, OMX®, NASDAQ OMX®, and NASDAQ OMX® ABA Community Bank IndexSM are trademarks of The NASDAQ OMX Group, Inc. and American Bankers Association, (NASDAQ OMX and ABA, collectively with their affiliates, are referred to as the "Corporations") and 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 CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE FUND.
Not FDIC Insured * Not Bank Guaranteed * May Lose Value
|
|
|
|
|