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First Trust Global Engineering and Construction ETF (FLM)
Investment Objective/Strategy - First Trust Global Engineering and Construction ETF 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.
There can be no assurance that the Fund's investment objectives will be achieved.
  • 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.
  • 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.
Fund Overview
Fund TypeForeign Equity
Investment AdvisorFirst Trust Advisors L.P.
Investor Servicing AgentBank of New York Mellon
Fiscal Year-End09/30
ExchangeNYSE Arca
Inception Price$30.00
Inception NAV$30.00
Rebalance FrequencySemi-Annual
Gross Expense Ratio*1.03%
Net Expense Ratio*0.70%
* As of 2/1/2017
Expenses are capped contractually at 0.70% per year, at least until January 31, 2018.
Current Fund Data (as of 12/13/2017)
Closing NAV1$59.43
Closing Share Price2$59.35
Bid/Ask Midpoint$59.32
Bid/Ask Discount0.19%
Total Net Assets$17,829,486
Outstanding Shares300,002
Daily Volume403
Average 30-Day Daily Volume4,144
Closing Share Price 52-Week High/Low$59.53 / $49.16
Closing NAV 52-Week High/Low$59.59 / $49.09
Number of Holdings66
Fund Characteristics (as of 11/30/2017)8
Maximum Market Cap.$57,994
Median Market Cap.$2,652
Minimum Market Cap.$585
Price/Cash Flow11.66
Top Holdings (as of 12/13/2017)
Holding Percent
Kajima Corporation 3.22%
Taisei Corporation 3.16%
Vinci S.A. 3.11%
Jacobs Engineering Group Inc. 3.00%
Bouygues S.A. 2.97%
Quanta Services, Inc. 2.88%
Fluor Corporation 2.68%
Dycom Industries, Inc. 2.63%
AECOM 2.60%
Eiffage SA 2.57%

Holdings are subject to change.

Top Country Exposure (as of 12/13/2017)
Country Percent
Japan 29.83%
United States 23.40%
France 8.67%
Spain 5.32%
The Netherlands 5.01%
Australia 4.09%
Canada 3.86%
Sweden 3.67%
China 3.47%
United Kingdom 2.26%
NAV History (Since Inception)
Past performance is not indicative of future results.
Distribution Information
Dividend per Share Amt (as of 12/14/2017)3$0.0796
30-Day SEC Yield (as of 11/30/2017)40.98%
Unsubsidized 30-Day SEC Yield (as of 11/30/2017)50.78%
12-Month Distribution Rate (as of 11/30/2017)61.06%
Index Yield (as of 11/30/2017)71.85%
Bid/Ask Midpoint vs. NAV (as of 9/30/2017)
Number of Days Bid/Ask Midpoint Above NAV
Quarter Ended 0-49
Basis Points
Basis Points
Basis Points
Basis Points
9/30/2017 18 0 0 0
6/30/2017 19 0 0 0
3/31/2017 24 0 0 0
12/31/2016 21 0 0 0
Number of Days Bid/Ask Midpoint Below NAV
Quarter Ended 0-49
Basis Points
Basis Points
Basis Points
Basis Points
9/30/2017 43 2 0 0
6/30/2017 44 0 0 0
3/31/2017 38 0 0 0
12/31/2016 38 4 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 Sector Exposure (as of 12/13/2017)
Industrials 96.86%
Energy 2.59%
Utilities 0.55%
Month End Performance (as of 11/30/2017)
  3 Mos YTD 1 Year 3 Year 5 Year 10 Year Since
Fund Performance *
Net Asset Value (NAV) 7.94% 21.24% 22.34% 11.24% 10.27% N/A 9.38%
After Tax Held 7.88% 20.76% 21.72% 10.54% 9.52% N/A 8.72%
After Tax Sold 4.49% 12.00% 12.61% 8.39% 7.74% N/A 7.30%
Market Price 7.89% 21.21% 21.75% 11.26% 10.25% N/A 9.37%
Index Performance **
ISE Global Engineering and Construction Index 8.32% 22.05% 23.33% 12.24% 11.60% N/A 11.09%
MSCI World Industrials Index 7.50% 23.21% 24.30% 10.42% 13.29% N/A 12.04%
Russell 3000® Index 7.85% 19.93% 22.27% 10.75% 15.63% N/A 13.79%
Quarter End Performance (as of 9/29/2017)
  3 Mos YTD 1 Year 3 Year 5 Year 10 Year Since
Fund Performance *
Net Asset Value (NAV) 5.13% 16.51% 18.39% 7.29% 9.53% N/A 9.08%
After Tax Held 5.07% 16.05% 17.79% 6.62% 8.78% N/A 8.41%
After Tax Sold 2.90% 9.33% 10.39% 5.29% 7.14% N/A 7.03%
Market Price 5.26% 16.73% 18.91% 7.44% 9.65% N/A 9.09%
Index Performance **
ISE Global Engineering and Construction Index 5.37% 17.08% 19.72% 8.67% 10.78% N/A 10.80%
MSCI World Industrials Index 5.50% 19.06% 21.65% 10.10% 13.10% N/A 11.85%
Russell 3000® Index 4.57% 13.91% 18.71% 10.74% 14.23% N/A 13.41%
3-Year Statistics (as of 11/30/2017)
  Standard Deviation Alpha Beta Sharpe Ratio Correlation
FLM 13.00% 1.16 0.96 0.84 0.76
MSCI World Industrials Index 11.10% -0.41 1.02 0.90 0.94
Russell 3000® Index 10.25% --- 1.00 1.00 1.00
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.

*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. 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.

**Performance information for the ISE Global Engineering and Construction Index 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 gross expense ratio for this fund is 1.03%. Expenses are capped contractually at 0.70% per year, at least until January 31, 2018.

MSCI World Industrials Index - The 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.

Russell 3000® Index - The Index is comprised of the 3000 largest and most liquid stocks based and traded in the U.S.

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 The unsubsidized 30-day SEC yield is calculated the same as the 30-day SEC yield, however it excludes contractual fee waivers and expense reimbursements.
6 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.
7 Index yield represents the weighted average trailing 12-month dividend of the constituents of the ISE Global Engineering and Construction Index.
8 All market capitalization numbers are in USD$ Millions.
9 Inception Date is 10/13/2008

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 NYSE Arca, Inc.

The fund's return may not match the return of the ISE Global Engineering and Construction Index.  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. The fund may invest in depositary receipts which may be less liquid than the underlying shares in their primary trading market.

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 be significantly affected by overall capital spending levels, economic cycles, technical obsolescence, delays in modernization, labor relations, and government regulations.

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.

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.

The First Trust Global Engineering and Construction ETF 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
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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