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| Investment Objective/Strategy -
The First Trust Value Line® Dividend Index Fund is an exchange-traded index fund. The objective of the fund is to seek investment results that correspond generally to the price and yield, before fees and expenses, of the Value Line® Dividend IndexTM. |
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| There can be no assurance that the Fund's investment objectives will be achieved. |
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- The index begins with the universe of stocks that Value Line® gives a SafetyTM Ranking of #1 or #2 using the Value Line® SafetyTM Ranking System. All registered investment companies, limited partnerships and foreign securities not listed in the U.S. are removed from this universe.
- From those stocks, Value Line® selects those companies with a higher than average dividend yield, as compared to the indicated dividend yield of the Standard & Poor's 500 Composite Stock Price Index.
- Value Line® then eliminates those companies with an equity market capitalization of less than $1 billion.
- The index seeks to be equally weighted in each of the securities in the index. The index is rebalanced on the application of the above model on a monthly basis.
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Fund Overview
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| Ticker |
FVD |
| Fund Type |
Equity Income |
| Investment Adviser/Portfolio Manager |
First Trust Advisors L.P. |
| Investor Servicing Agent |
Bank of New York |
| CUSIP |
33734H106 |
| Intraday NAV |
FVDIV |
| Fiscal Year-End |
12/31 |
| Exchange |
NYSE Arca |
| Inception |
8/19/2003 |
| Inception Price |
$15.00 |
| Inception NAV |
$14.32 |
Gross Expense Ratio
(12/31/2009) |
0.80% |
| Net Expense Ratio |
0.70% |
| Rebalance Frequency |
MONTHLY |
| 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 May 15, 2011.
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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 7/29/2010)
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| Closing Share Price |
$13.68 |
| Bid/Ask Midpoint |
$13.67 |
| Closing NAV |
$13.67 |
| Bid/Ask Discount |
0.02% |
| Total Net Assets |
$161,180,156 |
| Common Shares Outstanding |
11,787,986 |
| Dividend Frequency |
Quarterly |
| Dividend per Share Amt1 |
$0.1039 |
| Daily Volume |
63,651 |
| Average 30-Day Daily Volume |
44,606 |
| Closing Share Price 52-Week High/Low |
$14.51 / $11.91 |
| Closing NAV 52-Week High/Low |
$14.50 / $11.89 |
| Number of Stocks |
144 |
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| Consumer Discretionary |
6.89% |
| Consumer Staples |
15.84% |
| Energy |
4.90% |
| Financials |
14.79% |
| Health Care |
7.63% |
| Industrials |
13.89% |
| Information Technology |
5.52% |
| Materials |
4.88% |
| Telecommunication Services |
3.55% |
| Utilities |
22.11% |
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| Top 10 Holdings (as of 7/30/2010) |
| Holdings |
Percent (%) |
| Canon Inc. (ADR) |
0.75 |
| Cullen/Frost Bankers, Inc. |
0.73 |
| E.I. du Pont de Nemours and Company |
0.73 |
| Elbit Systems Ltd. |
0.73 |
| Everest Re Group, Ltd. |
0.73 |
| Telefonica, S.A. (ADR) |
0.73 |
| Bank of Nova Scotia |
0.72 |
| Canadian Imperial Bank of Commerce |
0.72 |
| Chevron Corporation |
0.72 |
| Deere & Company |
0.72 |
| Fund Characteristics (as of 6/30/2010) 3,4 |
| 30-Day SEC Yield |
3.01% |
| Distribution Rate |
3.24% |
| Median Market Cap. |
$14,983 |
| Maximum Market Cap. |
$268,118 |
| Minimum Market Cap. |
$1,072 |
| Price/Earnings |
13.37 |
| Price/Book |
1.91 |
| Price/Cash Flow |
7.28 |
| Price/Sales |
1.12 |
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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 |
| 6/30/2010 |
45 |
0 |
0 |
0 |
| 3/31/2010 |
38 |
0 |
0 |
0 |
| 12/31/2009 |
32 |
0 |
0 |
0 |
| 9/30/2009 |
41 |
3 |
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 |
| 6/30/2010 |
18 |
0 |
0 |
0 |
| 3/31/2010 |
23 |
0 |
0 |
0 |
| 12/31/2009 |
32 |
0 |
0 |
0 |
| 9/30/2009 |
20 |
0 |
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 6/30/2010) |
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3 Mos |
YTD |
1 Year |
3 Year |
5 Year |
10 Year |
Since
Fund
Inception2 |
| Fund Performance * |
| NAV |
-7.76% |
-2.88% |
17.56% |
-6.07% |
1.11% |
N/A |
4.72% |
| After Tax Held |
-8.02% |
-3.36% |
16.40% |
-7.10% |
-0.71% |
N/A |
2.79% |
| After Tax Sold |
-5.05% |
-1.86% |
11.42% |
-5.69% |
0.22% |
N/A |
3.17% |
| Market Price |
-7.76% |
-2.95% |
17.45% |
-6.05% |
4.63% |
N/A |
4.72% |
| Index Performance ** |
| Value Line® Dividend Index |
-7.63% |
-2.54% |
18.52% |
-5.37% |
N/A |
N/A |
N/A |
| Dow Jones Select Dividend Index(SM) |
-6.82% |
-1.29% |
25.42% |
-11.67% |
-2.71% |
N/A |
N/A |
| S&P 500® Index |
-11.43% |
-6.65% |
14.43% |
-9.81% |
-0.79% |
N/A |
2.44% |
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| Quarter End Performance (as of 6/30/2010) |
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3 Mos |
YTD |
1 Year |
3 Year |
5 Year |
10 Year |
Since
Fund
Inception2 |
| Fund Performance * |
| NAV |
-7.76% |
-2.88% |
17.56% |
-6.07% |
1.11% |
N/A |
4.72% |
| After Tax Held |
-8.02% |
-3.36% |
16.40% |
-7.10% |
-0.71% |
N/A |
2.79% |
| After Tax Sold |
-5.05% |
-1.86% |
11.42% |
-5.69% |
0.22% |
N/A |
3.17% |
| Market Price |
-7.76% |
-2.95% |
17.45% |
-6.05% |
4.63% |
N/A |
4.72% |
| Index Performance ** |
| Value Line® Dividend Index |
-7.63% |
-2.54% |
18.52% |
-5.37% |
N/A |
N/A |
N/A |
| Dow Jones Select Dividend Index(SM) |
-6.82% |
-1.29% |
25.42% |
-11.67% |
-2.71% |
N/A |
N/A |
| S&P 500® Index |
-11.43% |
-6.65% |
14.43% |
-9.81% |
-0.79% |
N/A |
2.44% |
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5-Year Statistics (as of 6/30/2010)
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Standard Deviation |
Alpha |
Beta |
Sharpe Ratio |
Correlation |
| First Trust Value Line® Dividend Index Fund |
15.09% |
1.21 |
0.85 |
-0.08 |
0.95 |
| Dow Jones Select Dividend Index(SM) |
18.49% |
-1.84 |
0.92 |
-0.24 |
0.85 |
| S&P 500® Index |
16.83% |
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-0.16 |
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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 December 15, 2006, the fund acquired the assets and adopted the performance history of the First Trust Value Line® Dividend Fund, a closed-end fund. The investment goals, strategies and policies of the fund are substantially similar to those of the predecessor fund. Performance information for periods prior to December 15, 2006 is based on the performance history of the predecessor fund and reflects the operating expenses of the predecessor fund.
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 0.80%.
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 May 15, 2011.
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**Past performance is not a guarantee of future results.Performance
information for the Value Line® Dividend IndexTM is for illustrative purposes only
and does not represent actual fund performance. 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.
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.
The Dow Jones Select Dividend IndexSM consists of 100 widely-traded, dividend-paying stocks
derived from the Dow Jones U.S.Total Market IndexSM.
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 8/19/2003 |
| 3 |
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 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 financials 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 financials sector are subject to the adverse effects of volatile interest rates, economic recession, increased competition from new entrants in the field, and potential increased regulation.
"Value Line®" and "Value Line® Dividend Index" are trademarks of Value Line®, Inc. and have been licensed for use for certain purposes by First Trust on behalf of the Fund. The Fund, based on the Value Line® Dividend Index, is not sponsored, endorsed, sold, or promoted by Value Line®, Inc., and Value Line® makes no representation regarding the advisability of investing in the Fund.
Not FDIC Insured * Not Bank Guaranteed * May Lose Value
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