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First Trust S-Network Future Vehicles & Technology ETF (CARZ)
Investment Objective/Strategy - The First Trust S-Network Future Vehicles & Technology ETF (the "Fund"), formerly First Trust NASDAQ Global Auto 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 S-Network Electric & Future Vehicle Ecosystem Index (the "Index"). The Fund will normally invest at least 90% of its net assets (plus any borrowings for investment purposes) in the common stocks and depository receipts that comprise the Index.
There can be no assurance that the Fund's investment objectives will be achieved.
Index Description According to the Index Provider
  • The index begins with a universe of common stocks and depositary receipts of future vehicles companies and technology companies listed on a recognized global securities exchange and engaged in the electric and autonomous vehicle manufacturing; enabling materials; or enabling technologies sectors.
  • Each company is classified as either "Pure-Play" or "Diversified":
    • Pure-Play companies – companies that derive at least 50% of their revenue from business activities related to the sectors above.
    • Diversified companies – companies that fulfill the following criteria: derive more than 20% of their total revenues and such revenues are independently reported in their financial reports from business activities related to the sectors above; applicable revenues are likely to have a material impact on their overall share price performance; research and development investments in the technology are at the forefront of their future initiatives; or their applicable business is likely to have a significant impact on one of the above sectors as a whole.
  • To be eligible for the index, a security must meet the following criteria:
    • Minimum market capitalization of $500 million;
    • Three-month average daily trading value of at least $5 million;
    • Minimum float-adjusted market capitalization value of at least $100 million;
    • Minimum free float of 20% of shares outstanding.
  • Companies are ranked in order of float adjusted market capitalization. The top 100 eligible Pure Play companies will be selected for inclusion in the index. If there are less than 100 Pure-Play companies, eligible Diversified companies will be selected. Securities are weighted by float-adjusted market capitalization.
    • The maximum weight assigned to a single security is 4.5% and the minimum is 0.5% (with larger cap companies receiving higher weightings within the approximate range).
  • The index is reconstituted and rebalanced quarterly.
Fund Overview
TickerCARZ
Fund TypeTransportation
Investment AdvisorFirst Trust Advisors L.P.
Investor Servicing AgentBank of New York Mellon Corp
CUSIP33734X309
ISINUS33734X3098
Intraday NAVCARZIV
Fiscal Year-End09/30
ExchangeNasdaq
Inception5/9/2011
Inception Price$29.88
Inception NAV$29.88
Rebalance FrequencyQuarterly
Expense Ratio*0.70%
* As of 2/1/2024
Current Fund Data (as of 3/18/2024)
Closing NAV1$57.88
Closing Market Price2$57.85
Bid/Ask Midpoint$57.71
Bid/Ask Discount0.29%
30-Day Median Bid/Ask Spread (as of 3/15/2024)30.85%
Total Net Assets$37,619,067
Outstanding Shares650,002
Daily Volume1,220
Average 30-Day Daily Volume2,709
Closing Market Price 52-Week High/Low$59.48 / $46.67
Closing NAV 52-Week High/Low$59.67 / $46.84
Number of Holdings (excluding cash)101
Top Holdings (as of 3/18/2024)*
Holding Percent
NVIDIA Corporation 6.89%
Taiwan Semiconductor Manufacturing Company Ltd. (ADR) 5.76%
Advanced Micro Devices, Inc. 5.50%
Microsoft Corporation 4.63%
Alphabet Inc. (Class A) 4.44%
Samsung Electronics Co., Ltd. 4.18%
Apple Inc. 3.99%
Intel Corporation 3.83%
Toyota Motor Corporation 3.66%
Tesla, Inc. 3.26%

* Excluding cash.  Holdings are subject to change.

NAV History (Since Inception)
Past performance is not indicative of future results.
Distribution Information
Dividend per Share Amt (as of 3/19/2024)4$0.2232
30-Day SEC Yield (as of 2/29/2024)50.91%
12-Month Distribution Rate (as of 2/29/2024)61.38%
Index Yield (as of 2/29/2024)71.43%
Fund Characteristics (as of 2/29/2024)8
Maximum Market Cap.$3,073,526
Median Market Cap.$15,911
Minimum Market Cap.$264
Price/Earnings18.26
Price/Book2.35
Price/Cash Flow12.10
Price/Sales1.66
Top Country Exposure (as of 3/18/2024)
Country Percent
United States 56.56%
South Korea 8.81%
Japan 7.93%
Taiwan 5.78%
China 4.96%
Germany 3.31%
France 2.58%
The Netherlands 2.30%
Australia 0.93%
Italy 0.86%
Bid/Ask Premium/Discount (as of 3/18/2024)
  2023 Q1 2024 Q2 2024 Q3 2024
Days Traded at Premium 80 7 --- ---
Days Traded at Discount 170 46 --- ---
Hypothetical Growth of $10,000 Since Inception (as of 3/15/2024) *
Tracking Index: S-Network Electric & Future Vehicle Ecosystem Index

Top Sector Exposure (as of 3/18/2024)
Information Technology 57.71%
Consumer Discretionary 25.49%
Industrials 7.21%
Communication Services 4.92%
Materials 4.67%
Month End Performance (as of 2/29/2024)
  3 Month YTD 1 Year 3 Year 5 Year 10 Year Since
Fund
Inception9
Fund Performance *
Net Asset Value (NAV) 10.30% 1.44% 22.34% 3.96% 12.98% 5.87% 7.11%
After Tax Held 10.12% 1.44% 21.62% 3.24% 12.13% 5.00% 6.35%
After Tax Sold 6.10% 0.85% 13.20% 2.71% 9.94% 4.20% 5.39%
Market Price 10.18% 0.88% 22.16% 3.57% 12.86% 5.89% 7.07%
Index Performance **
S-Network Electric & Future Vehicle Ecosystem Index 10.38% 1.50% 22.79% N/A N/A N/A N/A
MSCI ACWI Index 9.94% 4.90% 23.15% 6.79% 10.51% 8.37% 8.38%
Quarter End Performance (as of 12/29/2023)
  3 Month YTD 1 Year 3 Year 5 Year 10 Year Since
Fund
Inception9
Fund Performance *
Net Asset Value (NAV) 11.34% 41.47% 41.47% 4.96% 14.74% 5.84% 7.08%
After Tax Held 11.16% 40.64% 40.64% 4.23% 13.88% 4.97% 6.32%
After Tax Sold 6.71% 24.53% 24.53% 3.48% 11.41% 4.17% 5.35%
Market Price 11.52% 42.22% 42.22% 5.13% 14.83% 5.78% 7.09%
Index Performance **
S-Network Electric & Future Vehicle Ecosystem Index 11.44% 41.99% 41.99% N/A N/A N/A N/A
MSCI ACWI Index 11.03% 22.20% 22.20% 5.75% 11.72% 7.93% 8.09%
3-Year Statistics (as of 2/29/2024)
  Standard Deviation Alpha Beta Sharpe Ratio Correlation
CARZ 27.38% -2.59 1.39 0.19 0.84
MSCI ACWI Index 16.60% --- 1.00 0.34 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 determined by using the midpoint of the national best bid offer price ("NBBO") 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.

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 each listed 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.

On January 26, 2022, the fund's underlying index changed from the Nasdaq Global Auto Index℠ to the S-Network Electric & Future Vehicle Ecosystem Index. Therefore, the fund's performance and historical returns shown for the periods prior to this date are not necessarily indicative of the performance that the fund, based on its current index, would have generated.

MSCI ACWI Index - The Index is a free float-adjusted market capitalization-weighted index that is designed to measure the equity market performance of developed and emerging markets.

Footnotes
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 market 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 The median bid-ask spread is calculated by identifying the national best bid and national best offer ("NBBO") for the fund as of the end of each 10 second interval during each trading day of the last 30 calendar days and dividing the difference between each such bid and offer by the midpoint of the NBBO. The median of those values is identified and that value is expressed as a percentage rounded to the nearest hundredth.
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 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.
7 Index yield represents the weighted average trailing 12-month dividend of the constituents of the S-Network Electric & Future Vehicle Ecosystem Index.
8 All market capitalization numbers are in USD$ Millions.
9 Inception Date is 5/9/2011

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.

Risk Considerations

You could lose money by investing in a fund. An investment in a fund is not a deposit of a bank and is not insured or guaranteed. There can be no assurance that a fund's objective(s) will be achieved. Investors buying or selling shares on the secondary market may incur customary brokerage commissions. Please refer to each fund's prospectus and Statement of Additional Information for additional details on a fund's risks. The order of the below risk factors does not indicate the significance of any particular risk factor.

Some Asian economies are highly dependent on trade with other countries and there is a high concentration of market capitalization and trading volume in a small number of Asian issuers as well as a high concentration of investors and financial intermediaries. Certain Asian countries experience expropriation and nationalization of assets, confiscatory taxation, currency manipulation, political instability, armed conflict and social instability as a result of religious, ethnic, socio-economic and/or political unrest. In particular, escalated tensions involving North Korea could have severe adverse effect on Asian economies. Recent developments between the U.S. and China have heightened concerns of increased tariffs and restrictions on trade.

Unlike mutual funds, shares of the fund may only be redeemed directly from a fund by authorized participants in very large creation/redemption units. If a 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 premium or discount to a fund's net asset value and possibly face delisting and the bid/ask spread may widen.

The automotive industry can be highly cyclical, and companies in the industry may suffer periodic operating losses. The industry can be significantly affected by labor relations and fluctuating component prices. While most of the major automotive manufacturers are large companies, others may be non-diversified in both product line and customer base and may be more vulnerable to events that negatively impact the industry.

The success of consumer discretionary companies is tied closely to the performance of the overall U.S. and international economies, interest rates, competition, consumer confidence, disposable household income and consumer spending. Changes in demographics and consumer tastes can also affect the demand for consumer discretionary products.

Changes in currency exchange rates and the relative value of non-US currencies may affect the value of a fund's investments and the value of a fund's shares.

Current market conditions risk is the risk that a particular investment, or shares of the fund in general, may fall in value due to current market conditions. As a means to fight inflation, the Federal Reserve and certain foreign central banks have raised interest rates and expect to continue to do so, and the Federal Reserve has announced that it intends to reverse previously implemented quantitative easing. Recent and potential future bank failures could result in disruption to the broader banking industry or markets generally and reduce confidence in financial institutions and the economy as a whole, which may also heighten market volatility and reduce liquidity. Ongoing armed conflicts between Russia and Ukraine in Europe and among Israel, Hamas and other militant groups in the Middle East, have caused and could continue to cause significant market disruptions and volatility within the markets in Russia, Europe, the Middle East and the United States. The hostilities and sanctions resulting from those hostilities have and could continue to have a significant impact on certain fund investments as well as fund performance and liquidity. The COVID-19 global pandemic, or any future public health crisis, and the ensuing policies enacted by governments and central banks have caused and may continue to cause significant volatility and uncertainty in global financial markets, negatively impacting global growth prospects.

A fund is susceptible to operational risks through breaches in cyber security. Such events could cause a fund to incur regulatory penalties, reputational damage, additional compliance costs associated with corrective measures and/or financial loss.

Depositary receipts may be less liquid than the underlying shares in their primary trading market and distributions may be subject to a fee. Holders may have limited voting rights, and investment restrictions in certain countries may adversely impact their value.

Electric vehicle technology is relatively new and subject to risks associated with a developing industry including intense competition, delays, or other complications in connection with production, rapid products obsolescence, increased government regulation and market volatility. These companies are also heavily dependent on intellectual property rights, and challenges to or misappropriation of such rights, or competitor's developing similar or superior technology, could have a material adverse effect. Electric vehicle companies are also susceptible to litigation based on product liability claims and can be significantly affected by insurance costs.

Investments in emerging market securities are generally considered speculative and involve additional risks relating to political, economic and regulatory conditions.

Equity securities may decline significantly in price over short or extended periods of time, and such declines may occur in the equity market as a whole, or they may occur in only a particular country, company, industry or sector of the market.

An index fund will be concentrated in an industry or a group of industries to the extent that the index is so concentrated. A fund with significant exposure to a single asset class, or the securities of issuers within the same country, state, region, industry, or sector may have its value more affected by an adverse economic, business or political development than a broadly diversified fund.

A fund may be a constituent of one or more indices or models which could greatly affect a fund's trading activity, size and volatility.

There is no assurance that the index provider or its agents will compile or maintain the index accurately. Losses or costs associated with any index provider errors generally will be borne by a fund and its shareholders.

Information technology companies are subject to certain risks, including rapidly changing technologies, short product life cycles, fierce competition, aggressive pricing and reduced profit margins, loss of patent, copyright and trademark protections, cyclical market patterns, evolving industry standards and regulation and frequent new product introductions.

Large capitalization companies may grow at a slower rate than the overall market.

Market risk is the risk that a particular security, or shares of a fund in general may fall in value. Securities are subject to market fluctuations caused by such factors as general economic conditions, political events, regulatory or market developments, changes in interest rates and perceived trends in securities prices. Shares of a fund could decline in value or underperform other investments as a result. In addition, local, regional or global events such as war, acts of terrorism, spread of infectious disease or other public health issues, recessions, natural disasters or other events could have significant negative impact on a fund.

A fund faces numerous market trading risks, including the potential lack of an active market for fund shares due to a limited number of market makers. Decisions by market makers or authorized participants to reduce their role or step away in times of market stress could inhibit the effectiveness of the arbitrage process in maintaining the relationship between the underlying values of a fund's portfolio securities and a fund's market price.

An index fund's return may not match the return of the index for a number of reasons including operating expenses, costs of buying and selling securities to reflect changes in the index, and the fact that a fund's portfolio holdings may not exactly replicate the index.

A fund classified as "non-diversified" may invest a relatively high percentage of its assets in a limited number of issuers. As a result, a 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.

Securities of non-U.S. issuers are subject to additional risks, including currency fluctuations, political risks, withholding, lack of liquidity, lack of adequate financial information, and exchange control restrictions impacting non-U.S. issuers.

A fund and a fund's advisor may seek to reduce various operational risks through controls and procedures, but it is not possible to completely protect against such risks. The fund also relies on third parties for a range of services, including custody, and any delay or failure related to those services may affect the fund's ability to meet its objective.

A fund that invests in securities included in or representative of an index will hold those securities regardless of investment merit and the fund generally will not take defensive positions in declining markets.

High portfolio turnover may result in higher levels of transaction costs and may generate greater tax liabilities for shareholders.

The market price of a fund's shares will generally fluctuate in accordance with changes in the fund's net asset value ("NAV") as well as the relative supply of and demand for shares on the exchange, and a fund's investment advisor cannot predict whether shares will trade below, at or above their NAV.

Companies involved in activities related to the mining, refining and/or manufacturing of rare earth metals may be significantly affected by events relating to political and economic developments and regulations, energy conservation efforts, the success of exploration projects, commodity prices, depletion of resources, mandated expenditures for safety and pollution control devices, and potential environmental damage claims.

Securities of small- and mid-capitalization companies may experience greater price volatility and be less liquid than larger, more established companies.

Trading on an exchange may be halted due to market conditions or other reasons. There can be no assurance that a fund's requirements to maintain the exchange listing will continue to be met or be unchanged.

In China, direct ownership of companies in certain sectors by foreign individuals and entities is prohibited. In order to allow for foreign investment in these businesses, many Chinese companies have created variable interest entities ("VIEs") structures to enable indirect foreign ownership. VIEs are not formally recognized under Chinese law. Intervention by the Chinese government with respect to VIEs could significantly affect the Chinese company's performance and the enforceability of the VIE's contractual arrangements that establish the links between the Chinese company and the shell company in which the Fund invests. VIEs are also subject to the investment risks associated with the underlying Chinese issuer or operating company. Chinese companies are not subject to the same degree of regulatory requirements or accounting standards and oversight as companies in more developed countries. As a result, information about the Chinese securities and VIEs in which the Fund invests may be less reliable and incomplete.

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

S-Network and S-Network Electric & Future Vehicle Ecosystem Index are service marks of VettaFi LLC and have been licensed for use by First Trust Advisors L.P. The Fund is not issued, sponsored, endorsed, sold or promoted by VettaFi LLC (collectively, “VettaFi”). VettaFi makes no representation or warranty, express or implied, to the purchasers or owners of the Fund or any member of the public regarding the advisability of investing in securities generally or in the Fund particularly or the ability of the Index to track general market performance. VettaFi's only relationship to the Fund is the licensing of the service marks and the Index, which is determined, composed and calculated by VettaFi without regard to First Trust Advisors L.P. or the Fund. VettaFi is not responsible for and has not participated in the determination of the timing of, prices at, or quantities of the Fund issued by First Trust Advisors L.P. VettaFi has no obligation or liability in connection with the issuance, administration, marketing or trading of the Fund.

CUSIP identifiers have been provided by CUSIP Global Services, managed on behalf of the American Bankers Association by FactSet Research Systems Inc. and are not for use or dissemination in a manner that would serve as a substitute for any CUSIP service. The CUSIP Database, ©2024 CUSIP Global Services. "CUSIP" is a registered trademark of the American Bankers Association.

Not FDIC Insured • Not Bank Guaranteed • May Lose Value
 
The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial professionals are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.
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