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First Trust Consumer Staples AlphaDEX® Fund (FXG)
  • 2016 Estimated Capital Gain Distributions
    Certain First Trust Exchange-Traded Funds are expected to pay a long-term capital gain distribution in December.  For a list of exchange-traded funds expected to pay a long-term capital gain distribution, please click here.  Short-term capital gain distributions, if any, are expected to be nominal and are taxed like ordinary income.  Final determination of the source and tax status of all distributions paid in the current year are to be made after year-end and could differ from the expectations noted above. 
Investment Objective/Strategy - The First Trust Consumer Staples AlphaDEX® Fund 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 fees and expenses, of an equity index called the StrataQuant® Consumer Staples Index.
There can be no assurance that the Fund's investment objectives will be achieved.
  • The StrataQuant® Consumer Staples Index is an "enhanced" index developed, maintained and sponsored by the NYSE Group, Inc. or its affiliates ("NYSE") which employs the AlphaDEX® stock selection methodology to select stocks from the Russell 1000® Index.
  • The NYSE constructs the StrataQuant® Consumer Staples Index by ranking the stocks which are members of the Russell 1000® Index on growth factors including three, six and 12-month price appreciation, sales to price and one year sales growth, and, separately, on value factors including book value to price, cash flow to price and return on assets.
  • Stocks which Russell has classified solely as growth or value, receive their score using the above growth or value factors respectively.
  • Stocks which Russell allocates between both growth and value receive their best score between the growth and value factors.
  • The NYSE then ranks those stocks contained in the consumer staples sector according to their score. The bottom 25% is eliminated and the top 75% is selected for the StrataQuant® Consumer Staples Index.
  • The selected stocks are divided into quintiles based on their rankings and the top ranked quintiles receive a higher weight within the index. The stocks are equally-weighted within each quintile.
  • The index is reconstituted and rebalanced quarterly.
Fund Overview
TickerFXG
Fund TypeConsumer Staples
Investment AdvisorFirst Trust Advisors L.P.
Investor Servicing AgentBank of New York Mellon
CUSIP33734X119
ISINUS33734X1191
Intraday NAVFXGIV
Fiscal Year-End07/31
ExchangeNYSE Arca
Inception5/8/2007
Inception Price$20.00
Inception NAV$20.00
Rebalance FrequencyQuarterly
Gross Expense Ratio*0.61%
Net Expense Ratio*0.61%
* As of 12/1/2016
Expenses are capped contractually at 0.70% per year, at least until November 30, 2017.
Current Fund Data (as of 12/6/2016)
Closing NAV1$44.55
Closing Share Price2$44.55
Bid/Ask Midpoint$44.55
Bid/Ask Discount0.00%
Total Net Assets$835,230,219
Outstanding Shares18,750,002
Daily Volume742,608
Average 30-Day Daily Volume1,535,592
Closing Share Price 52-Week High/Low$49.31 / $41.48
Closing NAV 52-Week High/Low$49.31 / $41.50
Number of Holdings42
Fund Characteristics (as of 11/30/2016)9
Maximum Market Cap.$220,662
Median Market Cap.$14,665
Minimum Market Cap.$2,770
Price/Earnings20.92
Price/Book2.98
Price/Cash Flow14.60
Price/Sales0.83
Top Holdings (as of 12/6/2016)
Holding Percent
Bunge Limited 5.98%
The WhiteWave Foods Company (Class A) 5.04%
Mondelez International, Inc. 4.59%
Ingredion Incorporated 4.45%
Spectrum Brands Holdings, Inc. 4.28%
Reynolds American Inc. 4.06%
Nu Skin Enterprises, Inc. (Class A) 3.94%
Tyson Foods, Inc. (Class A) 3.81%
Whole Foods Market, Inc. 3.73%
Flowers Foods, Inc. 3.71%

Holdings are subject to change.

NAV History (Since Inception)
Past performance is not indicative of future results.
Overall Morningstar RatingTM (as of 11/30/2016)3

Among 24 funds in the Consumer Defensive category. This fund was rated 4 stars/24 funds (3 years), 4 stars/23 funds (5 years).
Distribution Information
Dividend per Share Amt4$0.1254
30-Day SEC Yield (as of 10/31/2016)51.06%
Unsubsidized 30-Day SEC Yield (as of 10/31/2016)61.06%
12-Month Distribution Rate (as of 10/31/2016)71.70%
Index Yield (as of 10/31/2016)82.03%
Bid/Ask Midpoint vs. NAV (as of 9/30/2016)
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
9/30/2016 24 0 0 0
6/30/2016 40 0 0 0
3/31/2016 32 0 0 0
12/31/2015 57 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
9/30/2016 40 0 0 0
6/30/2016 24 0 0 0
3/31/2016 29 0 0 0
12/31/2015 7 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 12/6/2016)
Food Products 54.85%
Food & Staples Retailing 17.96%
Household Products 10.60%
Beverages 6.43%
Personal Products 5.31%
Tobacco 4.85%
Month End Performance (as of 11/30/2016)
  3 Mos YTD 1 Year 3 Year 5 Year 10 Year Since
Fund
Inception10
Fund Performance *
Net Asset Value (NAV) -8.04% 0.73% 2.66% 9.62% 15.07% N/A 10.07%
After Tax Held -8.15% 0.15% 1.92% 8.88% 14.34% N/A 9.51%
After Tax Sold -4.55% 0.43% 1.53% 7.13% 11.77% N/A 7.97%
Market Price -8.02% 0.68% 2.61% 9.61% 15.04% N/A 10.07%
Index Performance **
StrataQuant® Consumer Staples Index -7.89% 1.32% 3.32% 10.31% 15.93% N/A 10.89%
Russell 1000® Consumer Staples Index -6.43% 2.06% 4.78% 9.35% 13.29% N/A N/A
Russell 1000® Index 2.00% 9.99% 8.01% 8.88% 14.45% N/A 6.41%
S&P 500 Consumer Staples Index -6.42% 2.14% 5.06% 8.30% 12.63% N/A 9.68%
Quarter End Performance (as of 9/30/2016)
  3 Mos YTD 1 Year 3 Year 5 Year 10 Year Since
Fund
Inception10
Fund Performance *
Net Asset Value (NAV) -3.75% 5.95% 12.70% 13.96% 17.60% N/A 10.85%
After Tax Held -3.86% 5.34% 11.89% 13.19% 16.86% N/A 10.28%
After Tax Sold -2.12% 3.37% 7.19% 10.56% 13.90% N/A 8.63%
Market Price -3.75% 5.93% 12.70% 13.94% 17.56% N/A 10.85%
Index Performance **
StrataQuant® Consumer Staples Index -3.59% 6.46% 13.41% 14.68% 18.50% N/A 11.68%
Russell 1000® Consumer Staples Index -2.69% 7.44% 15.84% 14.05% 15.88% N/A N/A
Russell 1000® Index 4.03% 7.92% 14.93% 10.78% 16.41% N/A 6.32%
S&P 500 Consumer Staples Index -2.63% 7.55% 15.77% 13.05% 15.42% N/A 10.46%
3-Year Statistics (as of 11/30/2016)
  Standard Deviation Alpha Beta Sharpe Ratio Correlation
FXG 11.59% 1.97 0.92 0.82 0.84
S&P 500 Consumer Staples Index 10.58% --- 1.00 0.78 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 StrataQuant® Consumer Staples 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 0.61%. Expenses are capped contractually at 0.70% per year, at least until November 30, 2017.

Russell 1000® Consumer Staples Index - The Index is an unmanaged index which includes the stocks in the consumer staples sector of the Russell 1000® Index.

Russell 1000® Index - The Index is an unmanaged index used to measure the large-cap U.S. equity universe.

S&P 500 Consumer Staples Index - The Index is an unmanaged index which includes the stocks in the consumer staples sector of the S&P 500 Index.

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
The Morningstar RatingTM for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.
4 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.
5 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.
6 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.
7 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.
8 Index yield represents the weighted average trailing 12-month dividend of the constituents of the StrataQuant® Consumer Staples Index.
9 All market capitalization numbers are in USD$ Millions.
10 Inception Date is 5/8/2007

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 StrataQuant® Consumer Staples 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.

The success of consumer staples companies which provide products that are typically considered non-discretionary items based on consumer purchasing habits is affected by a variety of factors, such as government regulations, which may affect the permissibility of using various food additives and the production methods of companies that manufacture food products.

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 StrataQuant® Consumer Staples Index is a trademark of the NYSE Group, Inc. or its affiliates ("NYSE") and has been licensed for use by First Trust Portfolios L.P. The fund is not sponsored, endorsed, sold or promoted by NYSE and NYSE makes no representation or warranty regarding the advisability of investing in the fund or as to the result to be obtained by any person from use of the index in connection with the trading of the fund.

Russell Investment Group is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell® is a trademark of the Russell Investment Group.

"AlphaDEX®" is a registered trademark of First Trust Portfolios L.P. First Trust Portfolios L.P. has obtained a patent for the AlphaDEX® stock selection methodology from the United States Patent and Trademark Office.

©2016 Morningstar, Inc. All Rights Reserved. The Morningstar RatingTM information contained herein: (1) is proprietary to Morningstar;(2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

Not FDIC Insured • Not Bank Guaranteed • May Lose Value
 
First Trust Portfolios L.P.  Member SIPC and FINRA.
First Trust Advisors L.P.
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