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First Trust Nasdaq Cybersecurity ETF (CIBR)
Investment Objective/Strategy - The First Trust Nasdaq Cybersecurity ETF is an exchange-traded fund. The 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 Nasdaq CTA Cybersecurity IndexSM.
There can be no assurance that the Fund's investment objectives will be achieved.
  • The Nasdaq CTA Cybersecurity Index℠ is designed to track the performance of companies engaged in the cybersecurity segment of the technology and industrials sectors. It includes companies primarily involved in the building, implementation, and management of security protocols applied to private and public networks, computers, and mobile devices in order to provide protection of the integrity of data and network operations.
  • To be included in the index, a security must be listed on an index-eligible global stock exchange and classified as a cybersecurity company as determined by the Consumer Technology Association (CTA).
  • Each security must have a worldwide market capitalization of $250 million, have a minimum three-month average daily dollar trading volume of $1 million, and have a minimum free float of 20%.
  • The index is evaluated semi-annually in March and September, but if at any time during the year other than the evaluation, an index security no longer meets the eligibility criteria, or is otherwise determined to have become ineligible for inclusion in the index, the security is removed from the index and is not replaced. Any index security that reaches its foreign investment limit between quarterly rebalances is removed from the index.
  • The index employs a modified liquidity weighted methodology which includes caps on the percentage of any individual security to derive the final weights of the securities.
  • The index is rebalanced quarterly.
Fund Overview
TickerCIBR
Fund TypeCyber Security
Investment AdvisorFirst Trust Advisors L.P.
Investor Servicing AgentBank of New York Mellon
CUSIP33734X846
ISINUS33734X8469
Intraday NAVCIBRIV
Fiscal Year-End09/30
ExchangeNasdaq
Inception7/6/2015
Inception Price$20.00
Inception NAV$20.00
Rebalance FrequencyQuarterly
Expense Ratio0.60%
Current Fund Data (as of 9/21/2017)
Closing NAV1$21.83
Closing Share Price2$21.87
Bid/Ask Midpoint$21.87
Bid/Ask Premium0.20%
Total Net Assets$313,204,271
Outstanding Shares14,350,002
Daily Volume50,854
Average 30-Day Daily Volume105,812
Closing Share Price 52-Week High/Low$22.35 / $19.00
Closing NAV 52-Week High/Low$22.30 / $18.98
Number of Holdings36
Fund Characteristics (as of 8/31/2017)7
Maximum Market Cap.$161,052
Median Market Cap.$3,652
Minimum Market Cap.$351
Price/Book3.78
Price/Cash Flow21.46
Price/Sales2.73
Top Holdings (as of 9/22/2017)
Holding Percent
Symantec Corporation 6.45%
Palo Alto Networks, Inc. 6.19%
Cisco Systems, Inc. 6.07%
VMware, Inc. 5.91%
NXP Semiconductors N.V. 5.84%
FireEye, Inc. 3.35%
BAE Systems Plc 3.20%
CyberArk Software Ltd. 3.14%
Trend Micro Incorporated 3.13%
Splunk Inc. 3.03%

Holdings are subject to change.

NAV History (Since Inception)
Past performance is not indicative of future results.
Distribution Information
Dividend per Share Amt3$0.0074
30-Day SEC Yield (as of 8/31/2017)40.25%
12-Month Distribution Rate (as of 8/31/2017)50.17%
Index Yield (as of 8/31/2017)60.84%
Bid/Ask Midpoint vs. NAV (as of 6/30/2017)
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
6/30/2017 60 1 0 0
3/31/2017 56 1 0 0
12/31/2016 55 0 0 0
9/30/2016 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
6/30/2017 2 0 0 0
3/31/2017 5 0 0 0
12/31/2016 8 0 0 0
9/30/2016 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.

Top Industry Exposure (as of 9/22/2017)
Software 53.35%
Communications Equipment 18.58%
Internet Software & Services 8.16%
IT Services 6.44%
Semiconductors & Semiconductor Equipment 5.84%
Aerospace & Defense 4.67%
Professional Services 2.96%
Month End Performance (as of 8/31/2017)
  3 Mos YTD 1 Year 3 Year 5 Year 10 Year Since
Fund
Inception8
Fund Performance *
Net Asset Value (NAV) -0.97% 10.41% 14.61% N/A N/A N/A 4.18%
After Tax Held -0.99% 10.39% 14.52% N/A N/A N/A 3.87%
After Tax Sold -0.55% 5.89% 8.27% N/A N/A N/A 3.04%
Market Price -1.01% 10.01% 14.73% N/A N/A N/A 4.20%
Index Performance **
Nasdaq CTA Cybersecurity IndexSM -0.88% 10.80% 15.42% N/A N/A N/A 4.92%
S&P Composite 1500 Information Technology Index 4.78% 25.42% 30.69% N/A N/A N/A 20.60%
S&P 500 Index 3.01% 11.93% 16.23% N/A N/A N/A 10.97%
Quarter End Performance (as of 6/30/2017)
  3 Mos YTD 1 Year 3 Year 5 Year 10 Year Since
Fund
Inception8
Fund Performance *
Net Asset Value (NAV) -0.65% 10.41% 25.34% N/A N/A N/A 4.54%
After Tax Held -0.67% 10.39% 25.24% N/A N/A N/A 4.20%
After Tax Sold -0.37% 5.89% 14.34% N/A N/A N/A 3.30%
Market Price -0.41% 10.11% 25.95% N/A N/A N/A 4.61%
Index Performance **
Nasdaq CTA Cybersecurity IndexSM -0.51% 10.71% 26.29% N/A N/A N/A 5.32%
S&P Composite 1500 Information Technology Index 4.09% 16.62% 33.78% N/A N/A N/A 18.13%
S&P 500 Index 3.09% 9.34% 17.90% N/A N/A N/A 10.65%

*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.

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 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. Returns are average annualized total returns, except those for periods of less than one year, which are cumulative.

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.

**Performance information for the Nasdaq CTA Cybersecurity IndexSM is for illustrative purposes only and does not represent actual fund performance.
Indexes do 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.

The expense ratio for this fund is 0.60%.

S&P Composite 1500 Information Technology Index - The Index is a capitalization-weighted index of companies classified by GICS as information technology within the S&P Composite 1500 Index.

S&P 500 Index - The Index is an unmanaged index of 500 stocks used to measure large-cap U.S. stock market performance.

Footnotes
1 The NAV represents the fund's net assets (assets less liabilities) divided by the fund's outstanding shares .
2 Fund shares are purchased and sold on an exchange at their share price rather than net asset value (NAV), which may cause the shares to trade at a price greater than NAV (premium) or less than NAV (discount).
3 Most recent distribution paid or declared to today's date. Subject to change in the future. There is no guarantee that the fund will declare dividends.
4 The 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 and includes the effects of fee waivers and expense reimbursements, if applicable.
5 12-Month Distribution Rate is calculated by dividing the sum of the fund's trailing 12-month ordinary distributions paid or declared by the NAV price. Distribution rates may vary.
6 Index yield represents the weighted average trailing 12-month dividend of the constituents of the Nasdaq CTA Cybersecurity Index(SM).
7 All market capitalization numbers are in USD$ Millions.
8 Inception Date is 7/6/2015

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.

ETF Characteristics

The fund lists and principally trades its shares on The Nasdaq Stock Market LLC.

The fund's return may not match the return of the Nasdaq CTA Cybersecurity IndexSM.  Securities held by the fund will generally not be bought or sold in response to market fluctuations.

Investors buying or selling fund shares on the secondary market may incur customary brokerage commissions. Market prices may differ to some degree from the net asset value of the shares. 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, unlike mutual funds, shares may only be redeemed directly from the fund by authorized participants, in very large creation/redemption units. If the fund's authorized participants are unable to proceed with creation/redemption orders and no other authorized participant is able to step forward to create or redeem, fund shares may trade at a discount to the fund's net asset value and possibly face delisting.

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. There can be no assurance that the fund's investment objective will be achieved.

The fund may invest in small capitalization and mid capitalization companies. Such companies may experience greater price volatility than larger, more established companies.

An investment in a fund containing securities of non-U.S. issuers is subject to additional risks, including currency fluctuations, political risks, withholding, the lack of adequate financial information, and exchange control restrictions impacting non-U.S. issuers. These risks may be heightened for securities of companies located in, or with significant operations in, emerging market countries. The fund may invest in depositary receipts which may be less liquid than the underlying shares in their primary trading market.

The fund may hold investments that are denominated in non-U.S. currencies, or in securities that provide exposure to such currencies, currency exchange rates or interest rates denominated in such currencies. Changes in currency exchange rates and the relative value of non-U.S. currencies will affect the value of the fund's investment and the value of fund shares.

Information technology companies and cybersecurity companies are generally subject to the risks of rapidly changing technologies, short product life cycles, fierce competition, aggressive pricing and reduced profit margins, loss of patent, copyright and trademark protections, cyclical market patterns, evolving industry standards and frequent new product introductions. Cybersecurity companies may also be smaller and less experienced companies, with limited product lines, markets, qualified personnel or financial resources.

Industrials companies are subject to certain risks, including 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.

The fund is classified as "non-diversified" and may invest a relatively high percentage of its assets in a limited number of issuers. As a result, the fund may be more susceptible to a single adverse economic or regulatory occurrence affecting one or more of these issuers, experience increased volatility and be highly concentrated in certain issuers.

The fund currently has fewer assets than larger funds, and like other relatively new funds, large inflows and outflows may impact the fund's market exposure for limited periods of time.

First Trust Advisors L.P. is the adviser to the fund. First Trust Advisors L.P. is an affiliate of First Trust Portfolios L.P., the fund's distributor.

Nasdaq®, Consumer Technology Association, and Nasdaq CTA Cybersecurity IndexSM are trademarks of Nasdaq, Inc. and Consumer Technology Association, (which with its affiliates is referred to as the "Corporations") and are licensed for use by First Trust Advisors L.P. The fund has not been passed on by the Corporations as to its legality or suitability. The fund is not issued, endorsed, sold, or promoted by the Corporations. THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE FUND.

Not FDIC Insured • Not Bank Guaranteed • May Lose Value
 
The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA and the Internal Revenue Code. First Trust has no knowledge of and has not been provided any information regarding any investor. Financial advisors must determine whether particular investments are appropriate for their clients. First Trust believes the financial advisor is a fiduciary, is capable of evaluating investment risks independently and is responsible for exercising independent judgment with respect to its retirement plan clients.
First Trust Portfolios L.P.  Member SIPC and FINRA.
First Trust Advisors L.P.
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