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| Investment Objective/Strategy -
The First Trust Value Line® Equity Allocation 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 the Fund's fees and expenses) of an equity index called the Value Line® Equity Allocation 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 is designed to objectively identify and select those stocks that appear to have the greatest potential for capital appreciation from the universe of stocks Value Line® gives a TimelinessTM, SafetyTM or TechnicalTM Ranking of #1 or #2 using the Value Line® Ranking Systems.
- The universe of stocks is separated into large, mid and small cap categories. Stocks which do not meet certain daily trading volume and market cap criteria are eliminated. The remaining stocks are then divided into growth and value universes. Value Line determines the equity allocations among the six resulting style classifications.
- The stocks in each style classification are then ranked using several factors including price to cash flow, price to book, return on assets and price appreciation. The 25 highest ranked stocks in each of the six style classifications are selected. The stocks are equally weighted within each classification.
- On a weekly basis, stocks in the index are adjusted to reflect changes in Value Line's rankings. The index is rebalanced semi-annually each February and August through the re-application of the stock selection methodology.
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Fund Overview
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| Ticker |
FVI |
| Fund Type |
Growth |
| Investment Advisor |
First Trust Advisors L.P. |
| Investor Servicing Agent |
Bank of New York |
| CUSIP |
336919105 |
| Intraday NAV |
FVIIV |
| Fiscal Year-End |
12/31 |
| Exchange |
NYSE Arca |
| Inception |
12/5/2006 |
| Inception Price |
$20.00 |
| Inception NAV |
$20.00 |
Gross Expense Ratio
(12/31/2009) |
1.24% |
| 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 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 |
$17.74 |
| Bid/Ask Midpoint |
$17.80 |
| Closing NAV |
$17.81 |
| Bid/Ask Discount |
0.06% |
| Total Net Assets |
$6,232,052 |
| Common Shares Outstanding |
350,002 |
| Dividend Frequency |
Semi-Annual |
| Dividend per Share Amt1 |
$0.1486 |
| Daily Volume |
21,520 |
| Average 30-Day Daily Volume |
6,575 |
| Closing Share Price 52-Week High/Low |
$19.33 / $14.46 |
| Closing NAV 52-Week High/Low |
$19.33 / $14.44 |
| Number of Stocks |
150 |
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| Consumer Discretionary |
21.31% |
| Consumer Staples |
10.15% |
| Energy |
1.76% |
| Financials |
12.37% |
| Health Care |
21.56% |
| Industrials |
10.90% |
| Information Technology |
7.01% |
| Materials |
1.94% |
| Other |
0.31% |
| Telecommunication Services |
3.48% |
| Utilities |
9.21% |
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| Top 10 Holdings (as of 7/30/2010) |
| Holdings |
Percent (%) |
| AutoZone, Inc. |
1.50 |
| Comcast Corporation (Class A) |
1.46 |
| Genzyme Corporation (General Division) |
1.43 |
| Yum! Brands, Inc. |
1.42 |
| DIRECTV, Inc. |
1.39 |
| Novo Nordisk A/S (ADR) |
1.38 |
| Bank of Montreal |
1.37 |
| Prudential Financial, Inc. |
1.36 |
| Kraft Foods Inc. |
1.31 |
| Precision Castparts Corp. |
1.29 |
| Fund Characteristics (as of 6/30/2010) 3 |
| Median Market Cap. |
$3,341 |
| Maximum Market Cap. |
$162,878 |
| Minimum Market Cap. |
$411 |
| Price/Earnings |
13.28 |
| Price/Book |
1.68 |
| Price/Cash Flow |
7.14 |
| Price/Sales |
0.95 |
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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 |
35 |
0 |
0 |
0 |
| 3/31/2010 |
39 |
0 |
0 |
0 |
| 12/31/2009 |
37 |
0 |
0 |
0 |
| 9/30/2009 |
33 |
0 |
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 |
28 |
0 |
0 |
0 |
| 3/31/2010 |
22 |
0 |
0 |
0 |
| 12/31/2009 |
27 |
0 |
0 |
0 |
| 9/30/2009 |
31 |
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 |
-8.78% |
-1.46% |
25.50% |
-5.93% |
N/A |
N/A |
-3.42% |
| After Tax Held |
-9.06% |
-1.76% |
24.90% |
-6.43% |
N/A |
N/A |
-3.89% |
| After Tax Sold |
-5.70% |
-0.95% |
16.58% |
-5.28% |
N/A |
N/A |
-3.16% |
| Market Price |
-8.78% |
-1.46% |
25.41% |
-5.94% |
N/A |
N/A |
-3.42% |
| Index Performance ** |
| Value Line® Equity Allocation Index™ |
-8.62% |
-0.96% |
26.86% |
-5.01% |
N/A |
N/A |
-2.60% |
| Russell 3000® Index |
-11.32% |
-6.05% |
15.72% |
-9.47% |
N/A |
N/A |
-6.21% |
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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 |
-8.78% |
-1.46% |
25.50% |
-5.93% |
N/A |
N/A |
-3.42% |
| After Tax Held |
-9.06% |
-1.76% |
24.90% |
-6.43% |
N/A |
N/A |
-3.89% |
| After Tax Sold |
-5.70% |
-0.95% |
16.58% |
-5.28% |
N/A |
N/A |
-3.16% |
| Market Price |
-8.78% |
-1.46% |
25.41% |
-5.94% |
N/A |
N/A |
-3.42% |
| Index Performance ** |
| Value Line® Equity Allocation Index™ |
-8.62% |
-0.96% |
26.86% |
-5.01% |
N/A |
N/A |
-2.60% |
| Russell 3000® Index |
-11.32% |
-6.05% |
15.72% |
-9.47% |
N/A |
N/A |
-6.21% |
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3-Year Statistics (as of 6/30/2010)
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Standard Deviation |
Alpha |
Beta |
Sharpe Ratio |
Correlation |
| First Trust Value Line® Equity Allocation Index Fund
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22.35% |
4.17 |
1.02 |
-0.29 |
0.98 |
| Russell 3000® Index |
21.52% |
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-0.48 |
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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. 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 1.24%.
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® Equity Allocation 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 Russell 3000 Index is composed of 3000 large U.S. companies, as determined by market capitalization.
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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 12/5/2006 |
| 3 |
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.
"Value Line®" and "Value Line® Equity Allocation 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® Equity Allocation 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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