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| Investment Objective/Strategy -
First Trust ISE Global Engineering and Construction 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 the ISE Global Engineering and Construction Index. |
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| There can be no assurance that the Fund's investment objectives will be achieved. |
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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 ISE Global Engineering and Construction Index.
- The index specifically targets companies that are engaged in large civil and capital projects such as
infrastructure, utilities, transportation, telecommunications, commercial, residential, and commerce
facilities and whose roles are within the engineering, designing, planning, consulting, project
managing, and/or constructing of these projects.To be included in the index, a company must
receive at least 70% of revenues from these types of services and projects based on the reportable
segment/division from its most recent annual report.
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The companies must meet market capitalization and weighting concentration requirements for
inclusion in the index.
- The index uses a linear-based capitalization-weighted methodology for the group of companies.The
resulting linear weight distribution prevents a few large component stocks from dominating the
index while allowing smaller companies to adequately influence index performance.
- Index components are reviewed semi-annually for eligibility, and the weights are re-set according to
that distribution.
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Fund Overview
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| Ticker |
FLM |
| Fund Type |
Foreign Equity |
| Investment Advisor |
First Trust Advisors L.P. |
| Investor Servicing Agent |
Bank of New York |
| CUSIP |
33736M103 |
| Intraday NAV |
FLMIV |
| Fiscal Year-End |
09/30 |
| Exchange |
NYSE Arca |
| Inception |
10/13/2008 |
| Inception Price |
$30.00 |
| Inception NAV |
$30.00 |
Gross Expense Ratio
(9/30/2009) |
1.16% |
| Net Expense Ratio |
0.70% |
| 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 0.70% per year, at least until October 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 2/5/2010)
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| Closing Share Price |
$36.08 |
| Bid/Ask Midpoint |
$36.13 |
| Closing NAV |
$36.32 |
| Bid/Ask Discount |
0.51% |
| Total Net Assets |
$32,684,711 |
| Common Shares Outstanding |
900,002 |
| Dividend Frequency |
Semi-Annual |
| Dividend per Share Amt1 |
$0.0760 |
| Daily Volume |
23,312 |
| Average 30-Day Daily Volume |
12,039 |
| Closing Share Price 52-Week High/Low |
$41.57 / $22.56 |
| Closing NAV 52-Week High/Low |
$41.27 / $22.45 |
| Number of Stocks |
66 |
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| Top 10 Holdings (as of 2/8/2010) |
| Holdings |
Percent (%) |
| Fluor Corporation |
3.20 |
| Jacobs Engineering Group Inc. |
3.05 |
| Bouygues S.A. |
2.91 |
| Vinci SA |
2.81 |
| McDermott International, Inc. |
2.77 |
| ACS, Actividades de Construccion y Servicios, S.A. |
2.76 |
| Hochtief AG |
2.63 |
| URS Corporation |
2.59 |
| Skanska AB |
2.52 |
| Leighton Holdings Limited |
2.50 |
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| Energy |
6.65% |
| Industrials |
93.35% |
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| Fund Characteristics (as of 1/29/2010) 2 |
| Median Market Cap. |
$2,302 |
| Maximum Market Cap. |
$28,207 |
| Minimum Market Cap. |
$490 |
| Price/Earnings |
13.36 |
| Price/Book |
1.63 |
| Price/Cash Flow |
7.76 |
| Price/Sales |
0.35 |
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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 |
34 |
9 |
0 |
0 |
| 9/30/2009 |
32 |
15 |
1 |
0 |
| 6/30/2009 |
23 |
19 |
6 |
1 |
| 3/31/2009 |
15 |
7 |
16 |
6 |
| 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 |
18 |
3 |
0 |
0 |
| 9/30/2009 |
13 |
2 |
1 |
0 |
| 6/30/2009 |
11 |
3 |
0 |
0 |
| 3/31/2009 |
10 |
4 |
3 |
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
Inception3 |
| Fund Performance * |
| NAV |
0.33% |
-2.19% |
40.06% |
N/A |
N/A |
N/A |
19.71% |
| After Tax Held |
0.26% |
-2.19% |
39.50% |
N/A |
N/A |
N/A |
19.33% |
| After Tax Sold |
0.22% |
-1.43% |
26.01% |
N/A |
N/A |
N/A |
16.58% |
| Market Price |
-0.98% |
-3.56% |
35.15% |
N/A |
N/A |
N/A |
18.75% |
| Index Performance ** |
| ISE Global Engineering and Construction Index |
-0.11% |
-2.18% |
40.74% |
N/A |
N/A |
N/A |
25.11% |
| MSCI World Industrials Index |
5.28% |
-1.67% |
40.46% |
N/A |
N/A |
N/A |
12.85% |
| Russell 3000® Index |
4.78% |
-3.60% |
35.05% |
N/A |
N/A |
N/A |
8.86% |
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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
Inception3 |
| Fund Performance * |
| NAV |
-3.46% |
25.44% |
25.44% |
N/A |
N/A |
N/A |
23.45% |
| After Tax Held |
-3.52% |
24.94% |
24.94% |
N/A |
N/A |
N/A |
23.03% |
| After Tax Sold |
-2.25% |
16.51% |
16.51% |
N/A |
N/A |
N/A |
19.74% |
| Market Price |
-3.20% |
23.94% |
23.94% |
N/A |
N/A |
N/A |
23.82% |
| Index Performance ** |
| ISE Global Engineering and Construction Index |
-3.09% |
28.80% |
28.80% |
N/A |
N/A |
N/A |
29.28% |
| MSCI World Industrials Index |
3.32% |
26.71% |
26.71% |
N/A |
N/A |
N/A |
15.34% |
| Russell 3000® Index |
5.90% |
28.34% |
28.34% |
N/A |
N/A |
N/A |
12.82% |
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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 1.16%.
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 October 15, 2010.
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**Past performance is not a guarantee of future results. Performance information for the ISE Global Engineering and Construction 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 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 10/13/2008 |
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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 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.
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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 ISE Global Engineering and Construction 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 microcap, small capitalization and mid capitalization companies. Such
companies may be more vulnerable to adverse general market or economic developments, and their securities
may be less liquid and may experience greater price volatility than larger, more established companies as a result
of several factors, including limited trading volumes, products or financial resources, management inexperience
and less publicly available information.
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 invests in the securities of companies in the industrials sector which includes companies in the
engineering and construction business.General risks of these companies include the general state of the
economy, intense competition, consolidation, domestic and international politics, excess capacity and consumer
demand and spending trends. In addition, they may also be significantly affected by overall capital spending
levels, economic cycles, technical obsolescence, delays in modernization, labor relations, government regulations
and e-commerce initiatives.
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 Engineering and Construction 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 trademarks and trade names of the ISE and of the ISE Global Engineering and Construction Index which is determined,
composed and calculated by ISE without regard to First Trust or the fund.
Not FDIC Insured * Not Bank Guaranteed * May Lose Value
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