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| Investment Objective/Strategy -
The First Trust S&P REIT Index Fund is an exchange-traded fund. 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 S&P United States REIT Index. |
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| There can be no assurance that the Fund's investment objectives will be achieved. |
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- The S&P United States REIT Index measures the investable U.S. real estate investment trust market and maintains a constituency that reflects the market’s overall composition.
- All securities added to the S&P United States REIT Index must meet certain liquidity and market capitalization requirements.
- The Standard & Poor’s Index Committee, a team of Standard & Poor’s economists and index analysts, maintains the S&P United States REIT Index. Maintenance includes implementation of daily corporate actions, quarterly updates of significant events, and annual portfolio reconstitution each September. Share adjustments that exceed 5% are made at the time of the change. Share adjustments of less than 5% are made on a quarterly basis.
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Fund Overview
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| Ticker |
FRI |
| Fund Type |
REIT |
| Investment Advisor |
First Trust Advisors L.P. |
| Investor Servicing Agent |
Bank of New York |
| CUSIP |
33734G108 |
| Intraday NAV |
FRIIV |
| Fiscal Year-End |
12/31 |
| Exchange |
NYSE Arca |
| Inception |
5/8/2007 |
| Inception Price |
$20.00 |
| Inception NAV |
$20.00 |
Gross Expense Ratio
(6/30/2009) |
3.91% |
| Net Expense Ratio |
0.50% |
| 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 0.50% 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 |
$10.78 |
| Bid/Ask Midpoint |
$10.78 |
| Closing NAV |
$10.77 |
| Bid/Ask Premium |
0.05% |
| Total Net Assets |
$22,088,418 |
| Common Shares Outstanding |
2,050,002 |
| Dividend Frequency |
Semi-Annual |
| Dividend per Share Amt1 |
$0.1116 |
| Daily Volume |
20,376 |
| Average 30-Day Daily Volume |
33,554 |
| Closing Share Price 52-Week High/Low |
$12.11 / $5.41 |
| Closing NAV 52-Week High/Low |
$12.09 / $5.39 |
| Number of Stocks |
102 |
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| Diversified REITs |
8.58% |
| Industrial REITs |
5.96% |
| Office REITs |
17.21% |
| Other |
0.07% |
| Residential REITs |
15.66% |
| Retail REITs |
24.44% |
| Specialized REITs |
28.08% |
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| Top 10 Holdings (as of 2/8/2010) |
| Holdings |
Percent (%) |
| Simon Property Group, Inc. |
9.63 |
| Public Storage |
4.93 |
| Vornado Realty Trust |
4.71 |
| Equity Residential Properties Trust |
4.28 |
| Boston Properties, Inc. |
4.17 |
| HCP, Inc. |
3.82 |
| Host Hotels & Resorts Inc. |
3.25 |
| Ventas, Inc. |
3.08 |
| Avalonbay Communities, Inc. |
2.87 |
| ProLogis |
2.74 |
| Fund Characteristics (as of 1/29/2010) 3,4 |
| 30-Day SEC Yield (as of 12/31/2009) |
3.73% |
| Distribution Rate (as of 12/31/2009) |
1.90% |
| Median Market Cap. |
$1,339 |
| Maximum Market Cap. |
$20,398 |
| Minimum Market Cap. |
$119 |
| Price/Earnings |
35.91 |
| Price/Book |
1.57 |
| Price/Cash Flow |
11.59 |
| Price/Sales |
3.72 |
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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 |
37 |
2 |
0 |
0 |
| 6/30/2009 |
25 |
6 |
0 |
0 |
| 3/31/2009 |
30 |
8 |
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 |
| 12/31/2009 |
20 |
0 |
0 |
0 |
| 9/30/2009 |
25 |
0 |
0 |
0 |
| 6/30/2009 |
22 |
10 |
0 |
0 |
| 3/31/2009 |
17 |
4 |
1 |
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 |
8.17% |
-5.38% |
47.19% |
N/A |
N/A |
N/A |
-17.08% |
| After Tax Held |
7.81% |
-5.38% |
45.68% |
N/A |
N/A |
N/A |
-17.90% |
| After Tax Sold |
5.32% |
-3.49% |
30.50% |
N/A |
N/A |
N/A |
-14.55% |
| Market Price |
7.87% |
-5.55% |
45.98% |
N/A |
N/A |
N/A |
-17.13% |
| Index Performance ** |
| S&P United States REIT Index |
8.35% |
-5.32% |
48.04% |
N/A |
N/A |
N/A |
N/A |
| FTSE EPRA/NAREIT North America Index |
8.49% |
-5.04% |
50.87% |
N/A |
N/A |
N/A |
-16.46% |
| Russell 3000® Index |
4.78% |
-3.60% |
35.05% |
N/A |
N/A |
N/A |
-9.54% |
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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 |
9.05% |
28.00% |
28.00% |
N/A |
N/A |
N/A |
-15.84% |
| After Tax Held |
8.69% |
26.69% |
26.69% |
N/A |
N/A |
N/A |
-16.69% |
| After Tax Sold |
5.88% |
18.02% |
18.02% |
N/A |
N/A |
N/A |
-13.61% |
| Market Price |
8.95% |
28.68% |
28.68% |
N/A |
N/A |
N/A |
-15.84% |
| Index Performance ** |
| S&P United States REIT Index |
9.17% |
28.60% |
28.60% |
N/A |
N/A |
N/A |
N/A |
| FTSE EPRA/NAREIT North America Index |
8.94% |
32.22% |
32.22% |
N/A |
N/A |
N/A |
-15.28% |
| Russell 3000® Index |
5.90% |
28.34% |
28.34% |
N/A |
N/A |
N/A |
-8.55% |
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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.
On November 6, 2008, the fund's underlying index changed from the S&P REIT Composite Index to the S&P United States REIT Index. Therefore, the fund's performance and historical returns shown for the periods prior to November 6, 2008 are not necessarily indicative of the performance that the fund, based on its current index, would have generated.
After Tax Held returns represent return after taxes on distributions. Assumes fund shares have not been sold. After Tax Sold returns represent the return after taxes on distributions and the sale of fund shares. 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. Returns do not represent the returns you would receive if you traded shares at other times. 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 3.91%.
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 0.50% 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 S&P United States REIT Index is for illustrative purposes only and does not represent actual fund performance. The S&P United States REIT 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 comprised of the 3000 largest and most liquid stocks based and traded in the U.S.
The FTSE EPRA/NAREIT North America Index is modified market cap weighted based on free float market capitalization and tracks the performance of listed real estate companies or REITs in North America.
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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 5/8/2007 |
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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.
Distribution rate is calculated by dividing the most recent annualized distribution paid or declared by the market price. |
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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 S&P United States REIT 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 concentrated in REITs which involves additional risks, including limited diversification. There is no guarantee that the REITs in the fund's portfolio will declare dividends in the future. Companies involved in the real estate industry are subject to changes in the real estate market, vacancy rates and competition, volatile interest rates and economic recession.
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.
Standard & Poor's® and S&P® are registered trademarks of The McGraw-Hill Companies, Inc. ("McGraw-Hill") and have been licensed for use by First Trust Advisors L.P. The First Trust S&P REIT Index Fund is not sponsored, endorsed, sold or promoted by McGraw-Hill or Citigroup, and neither McGraw-Hill nor Citigroup makes any representation,warranty,or condition regarding the advisability of investing in the First Trust S&P REIT Index Fund.
Not FDIC Insured * Not Bank Guaranteed * May Lose Value
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