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| Investment Objective/Strategy -
The First Trust NASDAQ-100 Equal Weighted IndexSM 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 NASDAQ-100 Equal Weighted 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 consists of companies in the NASDAQ-100 Index.
- The index is reconstituted once a year in December, but replacements may be made during the year if there's a replacement in the NASDAQ-100 Index.
- The index is an equal weighted index and is rebalanced four times annually in March, June, September and December.
- The index contains the same securities as the NASDAQ-100 Index but each of the securities is initially set at a weight of 1.00% of the index and is rebalanced quarterly. The NASDAQ-100 Index includes 100 of the largest non-financial securities listed on NASDAQ.
- The equal weighting allows for smaller company performance to contribute as much as the large companies within the Index.
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Fund Overview
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| Ticker |
QQEW |
| Fund Type |
Growth |
| Investment Advisor |
First Trust Advisors L.P. |
| Investor Servicing Agent |
Bank of New York |
| CUSIP |
337344105 |
| Intraday NAV |
QQEWI |
| Fiscal Year-End |
12/31 |
| Exchange |
NASDAQ Stock Market |
| Inception |
4/19/2006 |
| Inception Price |
$20.00 |
| Inception NAV |
$20.00 |
Gross Expense Ratio
(6/30/2009) |
0.93% |
| 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 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 2/8/2010)
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| Closing Share Price |
$18.69 |
| Bid/Ask Midpoint |
$18.59 |
| Closing NAV |
$18.58 |
| Bid/Ask Premium |
0.00% |
| Total Net Assets |
$40,886,055 |
| Common Shares Outstanding |
2,200,002 |
| Dividend Frequency |
Semi-Annual |
| Dividend per Share Amt1 |
$0.0450 |
| Daily Volume |
8,220 |
| Average 30-Day Daily Volume |
28,299 |
| Closing Share Price 52-Week High/Low |
$20.24 / $10.63 |
| Closing NAV 52-Week High/Low |
$20.23 / $10.50 |
| Number of Stocks |
100 |
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| Basic Materials |
0.95% |
| Consumer Goods |
4.14% |
| Consumer Services |
19.06% |
| Health Care |
20.42% |
| Industrials |
13.43% |
| Oil & Gas |
0.85% |
| Technology |
37.27% |
| Telecommunications |
3.88% |
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| Top 10 Holdings (as of 2/8/2010) |
| Holdings |
Percent (%) |
| Illumina, Inc. |
1.33 |
| Sears Holdings Corporation |
1.22 |
| Hologic, Inc. |
1.21 |
| Genzyme Corporation (General Division) |
1.16 |
| Intuitive Surgical, Inc. |
1.16 |
| Cephalon, Inc. |
1.14 |
| Gilead Sciences, Inc. |
1.12 |
| Teva Pharmaceutical Industries Ltd. (ADR) |
1.12 |
| Baidu, Inc. (ADR) |
1.11 |
| Citrix Systems, Inc. |
1.11 |
| Fund Characteristics (as of 1/29/2010) 3 |
| Median Market Cap. |
$8,439 |
| Maximum Market Cap. |
$248,294 |
| Minimum Market Cap. |
$2,940 |
| Price/Earnings |
21.56 |
| Price/Book |
2.88 |
| Price/Cash Flow |
11.47 |
| Price/Sales |
1.68 |
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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 |
44 |
0 |
0 |
0 |
| 9/30/2009 |
42 |
0 |
0 |
0 |
| 6/30/2009 |
31 |
0 |
0 |
0 |
| 3/31/2009 |
27 |
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 |
20 |
0 |
0 |
0 |
| 9/30/2009 |
21 |
1 |
0 |
0 |
| 6/30/2009 |
30 |
1 |
1 |
0 |
| 3/31/2009 |
33 |
1 |
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.
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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 |
6.02% |
-5.18% |
57.78% |
-3.12% |
N/A |
N/A |
-1.73% |
| After Tax Held |
5.94% |
-5.18% |
57.65% |
-3.15% |
N/A |
N/A |
-1.76% |
| After Tax Sold |
3.92% |
-3.37% |
37.56% |
-2.66% |
N/A |
N/A |
-1.48% |
| Market Price |
6.08% |
-5.28% |
57.51% |
-3.14% |
N/A |
N/A |
-1.73% |
| Index Performance ** |
| NASDAQ-100 Equal Weighted Index(SM) |
6.20% |
-5.14% |
58.72% |
-2.50% |
N/A |
N/A |
-1.13% |
| NASDAQ-100 Index® |
4.59% |
-6.39% |
48.57% |
-0.39% |
N/A |
N/A |
0.66% |
| S&P 500® Index |
4.16% |
-3.59% |
33.12% |
-7.24% |
N/A |
N/A |
-3.05% |
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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 |
6.05% |
59.54% |
59.54% |
-0.63% |
N/A |
N/A |
-0.35% |
| After Tax Held |
5.96% |
59.41% |
59.41% |
-0.66% |
N/A |
N/A |
-0.37% |
| After Tax Sold |
3.93% |
38.70% |
38.70% |
-0.55% |
N/A |
N/A |
-0.31% |
| Market Price |
6.10% |
59.83% |
59.83% |
-0.56% |
N/A |
N/A |
-0.32% |
| Index Performance ** |
| NASDAQ-100 Equal Weighted Index(SM) |
6.21% |
60.51% |
60.51% |
0.01% |
N/A |
N/A |
0.27% |
| NASDAQ-100 Index® |
8.39% |
54.63% |
54.63% |
2.51% |
N/A |
N/A |
2.49% |
| S&P 500® Index |
6.04% |
26.45% |
26.45% |
-5.63% |
N/A |
N/A |
-2.16% |
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3-Year Statistics (as of 1/29/2010)
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Standard Deviation |
Alpha |
Beta |
Sharpe Ratio |
Correlation |
| First Trust NASDAQ-100 Equal Weighted IndexSMFund |
25.24% |
7.30 |
1.19 |
-0.14 |
0.94 |
| NASDAQ-100 Index® |
24.11% |
9.07 |
1.11 |
-0.05 |
0.91 |
| S&P 500® Index |
19.96% |
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-0.45 |
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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. The after-tax returns shown are not relevant to investors who hold their fund shares through tax-deferred arrangements.
The gross expense ratio for this fund is 0.93%.
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 NASDAQ-100 Equal Weighted 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. Index returns are calculated using price-return index data prior to April 19, 2006, and total-return data after April 19, 2006.
Standard Deviation — A measure of price variability (risk).
Alpha - An indication of how much an investment outperforms or underperforms on a risk-adjusted
basis relative to its benchmark.
Beta - A measure of price variability relative to the market.
Sharpe Ratio - A measure of excess reward per unit of volatility.
Correlation - A measure the similarity of performance.
The S&P 500 Index is an unmanaged index of 500 stocks used to measure large-cap U.S. stock market performance.
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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 4/19/2006 |
| 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 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. 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 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.
The fund is concentrated in stocks of companies in the technology sector. You should be aware that an investment in a portfolio which is concentrated in a particular sector involves additional risks, including limited diversification. The companies engaged in the technology sector are subject to fierce competition, high research and development costs, and their products and services may be subject to rapid obsolescence.
Nasdaq®, Nasdaq-100®, Nasdaq-100 Index®, and Nasdaq-100 Equal Weighted IndexSM are trademarks of The NASDAQ OMX Group, Inc. (which with its affiliates is referred to as the "Corporations") and are licensed for use by First Trust Advisors L.P. The Product has not been passed on by the Corporations as to its legality or suitability. The Product is not issued, endorsed, sold, or promoted by the Corporations. THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE PRODUCT.
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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