Home    Logon    Research and Commentary    About Us       Call 1.800.621.1675 or Email Us  

Search by Ticker, Keyword or CUSIP       
 
 
First Trust ISE Global Wind Energy Index Fund (FAN)
Investment Objective/Strategy - First Trust ISE Global Wind Energy Index Fund is an exchange-traded fund. The investment objective of the Fund is to seek investment results that correspond generally to the price and yield, before the Fund's fees and expenses, of an equity index called the ISE Global Wind Energy Index.
 
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 ISE Global Wind Energy Index. The index is constructed as follows:
  • Companies in the index universe that are identified as providing goods and services exclusively to the wind energy industry are given an aggregate weight of 66.67% of the index.Those companies determined to be significant participants in the wind energy industry despite not being exclusive to such industry are given an aggregate weight of 33.33% of the index.This weighting is done to ensure that companies that are exclusive to the wind energy industry, which generally have smaller market capitalizations relative to their multi-industry counterparts, are adequately represented in the index.
  • The index uses a modified market capitalization weighted methodology for each group of companies. The methodology organizes the companies into quintiles based upon their market capitalization. The quintiles containing larger market capitalization companies receive a higher weight than those quintiles containing small market capitalization companies.The resulting weight distribution prevents a few large companies from dominating the index while allowing smaller companies to adequately influence index performance.The companies are equally-weighted within each quintile.
  • The component security must be actively engaged in some aspect of the wind energy industry such as the development or management of a wind farm, the production or distribution of electricity generated by wind power, involvement in the design, manufacture or distribution of machinery or materials designed specifically for the wind energy industry.
  • Each component security must have a market capitalization of at least $100 million and meet certain investability requirements.
  • The index is reconstituted and rebalanced semi-annually.
Fund Overview
Ticker FAN
Fund Type Foreign Equity
Investment Advisor First Trust Advisors L.P.
Investor Servicing Agent Bank of New York
CUSIP 33736G106
Intraday NAV FANIV
Fiscal Year-End 09/30
Exchange NYSE Arca
Inception 6/16/2008
Inception Price $30.00
Inception NAV $30.00
Gross Expense Ratio
(9/30/2009)		 0.95%
Net Expense Ratio 0.60%
Rebalance Frequency SEMIANNUAL
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 18, 2010.
Bid/Ask Midpoint and NAV History (Since Inception)
 
Past performance is not indicative of future results.
Current Fund Data (as of 2/5/2010)
Closing Share Price $12.96
Bid/Ask Midpoint $12.95
Closing NAV $13.05
Bid/Ask Discount 0.73%
Total Net Assets $77,621,813
Common Shares Outstanding 5,950,002
Dividend Frequency Semi-Annual
Dividend per Share Amt1 $0.2670
Daily Volume 105,027
Average 30-Day Daily Volume 108,711
Closing Share Price 52-Week High/Low $16.68 / $8.61
Closing NAV 52-Week High/Low $16.49 / $8.85
Number of Stocks 56
Sector Breakdown (as of 2/8/2010)
Consumer Discretionary 0.73%
Energy 6.06%
Industrials 43.78%
Materials 1.51%
Other 0.06%
Utilities 47.86%
Top 10 Holdings (as of 2/8/2010)
Holdings Percent (%)
Iberdrola Renovables 7.54
EDP Renovaveis SA 7.53
Vestas Wind Systems 6.67
REpower Systems AG 6.54
Hansen Transmissions 5.81
Gamesa Corporacion Tecnologica, S.A. (Gamesa) 4.98
Infigen Energy 4.62
Nordex AG 4.11
Broadwind Energy, Inc. 3.26
Japan Wind Development Co., Ltd. 3.19
Top Country Breakdown (as of 2/8/2010)
Country Percent (%)
Spain 25.82
United States 16.41
Germany 15.95
Denmark 8.11
Belgium 5.82
Australia 5.56
Japan 4.85
United Kingdom 4.16
France 3.47
Guernsey 1.49
Fund Characteristics (as of 1/29/2010) 3
Median Market Cap. $1,911
Maximum Market Cap. $175,425
Minimum Market Cap. $104
Price/Earnings 18.75
Price/Book 1.39
Price/Cash Flow 8.83
Price/Sales 1.08
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 23 3 0 0
9/30/2009 19 13 3 0
6/30/2009 19 19 8 0
3/31/2009 10 8 10 4
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 29 9 0 0
9/30/2009 19 9 1 0
6/30/2009 9 6 2 0
3/31/2009 9 11 8 1

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 1/29/2010) 
  3 Mos YTD 1 Year 3 Year 5 Year 10 Year Since
Fund
Inception2
 Fund Performance *
NAV -7.59% -8.41% 25.46% N/A N/A N/A -36.92%
After Tax Held -8.15% -8.41% 24.53% N/A N/A N/A -37.25%
After Tax Sold -4.90% -5.47% 16.60% N/A N/A N/A -30.79%
Market Price -8.38% -9.20% 22.05% N/A N/A N/A -37.51%
 Index Performance **
ISE Global Wind Energy Index -7.72% -8.18% 26.25% N/A N/A N/A -36.41%
MSCI World Index 1.58% -4.13% 36.58% N/A N/A N/A -13.55%
Russell 3000® Index 4.78% -3.60% 35.05% N/A N/A N/A -11.52%
Quarter End Performance   (as of 12/31/2009) 
  3 Mos YTD 1 Year 3 Year 5 Year 10 Year Since
Fund
Inception2
 Fund Performance *
NAV -5.55% 26.01% 26.01% N/A N/A N/A -34.90%
After Tax Held -6.12% 25.08% 25.08% N/A N/A N/A -35.25%
After Tax Sold -3.61% 16.90% 16.90% N/A N/A N/A -29.29%
Market Price -5.88% 23.77% 23.77% N/A N/A N/A -35.17%
 Index Performance **
ISE Global Wind Energy Index -5.19% 29.36% 29.36% N/A N/A N/A -34.34%
MSCI World Index 4.07% 29.99% 29.99% N/A N/A N/A -11.81%
Russell 3000® Index 5.90% 28.34% 28.34% N/A N/A N/A -9.96%
*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 0.95%. 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 18, 2010. 		**Past performance is not a guarantee of future results. Performance information for the ISE Global Wind Energy 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 Russell 3000 Index is composed of 3000 large U.S. companies, as determined by market capitalization.

The MSCI World Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of 23 developed markets around the world.
Footnotes
1 Most recent distribution paid or declared through today's date. Subject to change in the future.
2 Inception Date is 6/16/2008
3 All market capitalization numbers are in US$ Millions.

Downloads and Links to Recently Posted Fund Information
• FAN Recap of Capital Gains Distributions for 2009 – 12/31/2009
• First Trust Exchange-Traded Fund 19a-1 Notice - 12/31/2009
• First Trust Advisors L.P. Announces Distributions for Exchange-Traded Funds - 12/21/2009
• Exchange-Traded Funds advised by First Trust Advisors L.P. Announce Distributions - 6/22/2009
• FAN Recap of Capital Gains Distributions for 2008 - 12/23/2008
• FAN Declares Distributions 12/22/2008
• Annual Report for the period ending September 30,2009
• Semi-Annual Report for the period ending March 31,2009
• Annual Report for the period ending September 30,2008
• Summary Prospectus
• Prospectus
• Statement of Additional Information
• ETF Quarterly Performance Report
• Click here to view all the downloads for this fund.

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:
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 ISE Global Wind Energy 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 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.

The fund is expected to contain the securities of companies in the wind energy, utility and industrial sectors, among others.

Companies in the industrials sector face risks that arise from the general state of the economy, intense competition, consolidation, domestic and international politics, excess capacity and consumer demand, spending trends in that they may be significantly affected by overall capital spending levels, economic cycles, technical obsolescence, delays in modernization, labor relations and government regulations.

Companies in the utilities sector may face the imposition of rate caps, increased competition due to deregulation, difficulty in obtaining an adequate return on invested capital or in financing large construction projects, the limitations on operations and increased costs and delays attributable to environmental considerations, and the risks associated with capital market's ability to absorb utility debt, taxes, government regulation, international politics, price and supply fluctuations and volatile interest rates.

Companies in the wind energy business can be significantly affected by obsolescence of existing technology, short product cycles, falling prices and profits, competition from new market entrants and general economic conditions. Shares of the companies involved in the wind energy business have been significantly more volatile than shares of companies operating in other more established businesses. This sector is relatively nascent and under-researched in comparison to more established and mature sectors, and should therefore be regarded as having greater investment risk. Because many wind energy companies have been newly created and are unseasoned, the shares of these companies may be considered to be speculative and subject to extreme volatility and a greatly increased risk of loss.

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.

The First Trust ISE Global Wind Energy Index Fund is not sponsored, endorsed, sold or promoted by the International Securities Exchange (ISE). ISE makes no representation or warranty, express or implied, to the owners of the fund or any member of the public regarding the advisability of trading in the fund. ISE's only relationship to First Trust is the licensing of certain trade names of the ISE and of the ISE Global Wind Energy Index which is determined, composed and calculated by ISE without regard to First Trust or the fund.

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

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 © 2010 All rights reserved.