Home   Logon   Mobile Site   Research and Commentary   About Us   Call 1.800.621.1675 or Email Us       Follow First Trust: 

Search by Ticker, Keyword or CUSIP       
 
 
First Trust Energy AlphaDEX® Fund (FXN)
  • 2014 Estimated Capital Gain Distributions
    The First Trust Exchange-Traded Funds are not expecting to pay long-term capital gain distributions during the remainder of 2014.  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 indicated above.
Investment Objective/Strategy - The First Trust Energy 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® Energy Index
There can be no assurance that the Fund's investment objectives will be achieved.
  • The StrataQuant® Energy 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® Energy 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 energy sector according to their score. The bottom 25% is eliminated and the top 75% is selected for the StrataQuant® Energy 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
TickerFXN
Fund TypeEnergy
Investment AdvisorFirst Trust Advisors L.P.
Investor Servicing AgentBank of New York Mellon
CUSIP33734X127
Intraday NAVFXNIV
Fiscal Year-End07/31
ExchangeNYSE Arca
Inception5/8/2007
Inception Price$20.00
Inception NAV$20.00
Rebalance FrequencyQuarterly
Gross Expense Ratio*0.70%
Net Expense Ratio*0.70%
* As of 7/31/2014
Expenses are capped contractually at 0.70% per year, at least until December 31, 2015.
Current Fund Data (as of 12/18/2014)
Closing NAV1$20.71
Closing Share Price2$20.71
Bid/Ask Midpoint$20.71
Bid/Ask Discount0.02%
Total Net Assets$268,192,438
Outstanding Shares12,950,002
Daily Volume834,308
Average 30-Day Daily Volume372,080
Closing Share Price 52-Week High/Low$29.65 / $19.13
Closing NAV 52-Week High/Low$29.72 / $19.14
Number of Holdings61
Fund Characteristics (as of 11/28/2014)8
Median Market Cap.$8,094
Maximum Market Cap.$393,811
Minimum Market Cap.$1,117
Price/Earnings11.03
Price/Book1.32
Price/Cash Flow4.92
Price/Sales0.60
Top Holdings (as of 12/19/2014)
Holding Percent
Tesoro Corporation 4.06%
Diamond Offshore Drilling, Inc. 3.91%
Valero Energy Corporation 3.63%
Chevron Corporation 3.26%
ConocoPhillips 3.19%
Murphy Oil Corporation 3.06%
Occidental Petroleum Corporation 3.03%
Marathon Petroleum Corporation 2.83%
Exxon Mobil Corporation 2.74%
Hess Corporation 2.72%

Holdings are subject to change.

NAV History (Since Inception)
Past performance is not indicative of future results.
Overall Morningstar RatingTM (as of 11/30/2014)3

Among 79 funds in the Equity Energy category. This fund was rated 3 stars/79 funds (3 years), 4 stars/75 funds (5 years).
Distribution Information
Dividend per Share Amt4$0.1156
30-Day SEC Yield (as of 11/28/2014)51.83%
12-Month Distribution Rate (as of 11/28/2014)61.45%
Index Yield (as of 11/28/2014)72.83%
Bid/Ask Midpoint vs. NAV (as of 9/30/2014)
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
9/30/2014 52 0 0 0
6/30/2014 55 0 0 0
3/31/2014 50 0 0 0
12/31/2013 60 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
9/30/2014 12 0 0 0
6/30/2014 8 0 0 0
3/31/2014 11 0 0 0
12/31/2013 4 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 12/19/2014)
Oil, Gas & Consumable Fuels 65.85%
Energy Equipment & Services 30.45%
Semiconductors & Semiconductor Equipment 1.88%
Trading Companies & Distributors 1.82%
Month End Performance (as of 11/28/2014)
  3 Mos YTD 1 Year 3 Year 5 Year 10 Year Since
Fund
Inception9
Fund Performance *
NAV -25.44% -14.04% -11.75% 2.84% 6.99% N/A 1.63%
After Tax Held -25.59% -14.39% -12.20% 2.39% 6.65% N/A 1.38%
After Tax Sold -14.39% -7.89% -6.59% 2.00% 5.35% N/A 1.16%
Market Price -25.38% -13.96% -11.67% 2.88% 7.00% N/A 1.64%
Index Performance **
StrataQuant® Energy Index -25.41% -13.62% -11.29% 3.50% 7.73% N/A 2.32%
Russell 1000® Energy Index -18.92% -8.66% -5.74% 5.64% 8.32% N/A N/A
Russell 1000® Index 3.28% 13.50% 16.57% 21.05% 16.25% N/A 6.73%
S&P 500 Energy Index -17.83% -8.24% -5.38% 5.92% 8.45% N/A 4.28%
Quarter End Performance (as of 9/30/2014)
  3 Mos YTD 1 Year 3 Year 5 Year 10 Year Since
Fund
Inception9
Fund Performance *
NAV -11.32% 3.35% 14.20% 17.25% 11.41% N/A 4.23%
After Tax Held -11.49% 2.92% 13.62% 16.74% 11.06% N/A 3.96%
After Tax Sold -6.40% 1.91% 8.05% 13.36% 8.93% N/A 3.19%
Market Price -11.35% 3.35% 14.10% 17.25% 11.41% N/A 4.23%
Index Performance **
StrataQuant® Energy Index -11.20% 3.83% 14.92% 18.07% 12.21% N/A 4.96%
Russell 1000® Energy Index -8.51% 4.16% 12.54% 17.21% 12.44% N/A N/A
Russell 1000® Index 0.65% 7.97% 19.01% 23.23% 15.90% N/A 6.17%
S&P 500 Energy Index -8.62% 3.24% 11.86% 16.88% 12.46% N/A 6.05%
3-Year Statistics (as of 11/28/2014)
  Standard Deviation Alpha Beta Sharpe Ratio Correlation
FXN 18.81% -3.78 1.23 0.22 0.96
S&P 500 Energy Index 14.65% --- 1.00 0.44 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. 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® Energy Index 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.

The gross expense ratio for this fund is 0.70%. Expenses are capped contractually at 0.70% per year, at least until December 31, 2015.

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

The Russell 1000® Energy Index is an unmanaged index which includes the stocks in the energy sector of the Russell 1000® Index.

The S&P 500 Energy Index is an unmanaged index which includes the stocks in the information energy 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 shares outstanding.
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 is provided for those exchange-traded funds ("ETFs") with at least a three-year history. Ratings are based on the ETF's Morningstar Risk-Adjusted Return measure which accounts for variation in monthly performance, placing more emphasis on downward variations and rewarding consistent performance. An ETF's risk-adjusted return includes a brokerage commission estimate. This estimate is intended to reflect what an average investor would pay when buying or selling an ETF. PLEASE NOTE, this estimate is subject to change and the actual brokerage commission an investor pays may be higher or lower than this estimate. Morningstar compares each ETF's risk-adjusted return to the open-end mutual fund rating breakpoints for that category. Consistent with the open-end mutual fund ratings, the top 10% of ETFs in each 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 rating for an ETF is based on a weighted average of the time-period ratings (e.g., the ETF's 3,5, and 10 year rating). The determination of an ETF's rating does not affect the retail open end mutual fund data published by Morningstar. Past performance is no guarantee of future results.
4 Most recent distribution paid or declared through today's date. Subject to change in the future.
5 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.
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 StrataQuant® Energy Index
8 All market capitalization numbers are in USD$ Millions.
9 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® Energy 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.

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.

Energy companies are subject to certain risks, including volatile fluctuations in price and supply of energy fuels, international politics, terrorist attacks, reduced demand, the success of exploration projects, natural disasters, clean-up and litigation costs relating to oil spills and environmental damage, and tax and other regulatory policies of various governments. Oil production and refining companies are subject to extensive federal, state and local environmental laws and regulations regarding air emissions and the disposal of hazardous materials. In addition, oil prices are generally subject to extreme volatility.

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® Energy 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.

©2014 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.
Home |  Important Legal Information |  Privacy Policy |  Business Continuity Plan
Copyright © 2014 All rights reserved.