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First Trust SMID Cap Rising Dividend Achievers ETF (SDVY)
Investment Objective/Strategy - The First Trust SMID Cap Rising Dividend Achievers ETF, seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of an index called the NASDAQ US Small Mid Cap Rising Dividend Achievers™ Index (the "Index"). The Fund will normally invest at least 90% of its net assets (including investment borrowings) in securities that comprise the Index. The Index is composed of the securities of 100 small and mid cap companies with a history of raising their dividends and exhibit the characteristics to continue to do so in the future ("Index Securities"). The Index is designed to provide access to a portfolio of small and mid capitalization income producing securities.
There can be no assurance that the Fund's investment objectives will be achieved.
  • The index begins with the stocks in the Nasdaq US Mid Cap Index and the Nasdaq US Small Cap Index and eliminates those companies classified as a Real Estate Investment Trust by the Industry Classification Benchmark.
  • To be eligible for inclusion in the index, companies must have:
    • a minimum three-month average daily dollar trading volume of $2 million.
    • a minimum market cap of $500 million.
    • paid a dividend in the trailing twelve-month period greater than the dividend paid in the trailing twelve-month period three and five years prior.
    • positive earnings per share in the most recent fiscal year greater than the earnings per share three fiscal years prior.
    • a cash to debt ratio greater than 25%.
    • a trailing twelve-month period payout ratio no greater than 65%.
  • Eligible securities are ranked by a combined factor of dollar dividend increase over the previous five year period, current dividend yield, and payout ratio.
  • The 100 eligible securities with the lowest aggregated rank are selected for inclusion in the index, subject to a maximum of 30% from any one sector and 75% from the mid cap or small cap size classification.
  • The index stocks are equally weighted initially and on each rebalancing effective date. The index is reconstituted annually and rebalanced quarterly.
Fund Overview
TickerSDVY
Fund TypeSmall Cap and Mid Cap Equity
Investment AdvisorFirst Trust Advisors L.P.
Investor Servicing AgentBrown Brothers Harriman
CUSIP33741X102
ISINUS33741X1028
Intraday NAVSDVYIV
Fiscal Year-End09/30
ExchangeNasdaq
Inception11/1/2017
Inception Price$19.94
Inception NAV$19.94
Rebalance FrequencyQuarterly
Expense Ratio0.60%
Current Fund Data (as of 11/16/2017)
Closing NAV1$19.87
Closing Share Price2$19.71
Bid/Ask Midpoint$19.87
Bid/Ask Premium0.01%
Total Net Assets$1,986,750
Outstanding Shares100,002
Daily Volume50
Closing Share Price 52-Week High/Low$20.00 / $19.71
Closing NAV 52-Week High/Low$20.00 / $19.67
Number of Holdings100
Fund Characteristics (as of 11/1/2017)3
Maximum Market Cap.$17,135
Median Market Cap.$4,230
Minimum Market Cap.$806
Price/Earnings16.22
Price/Book2.08
Price/Cash Flow10.50
Price/Sales0.97
Top Holdings (as of 11/16/2017)
Holding Percent
Cabot Microelectronics Corporation 1.28%
Kelly Services, Inc. 1.24%
Primerica, Inc. 1.24%
Universal Forest Products, Inc. 1.22%
Capella Education Company 1.16%
Innospec Inc. 1.16%
FactSet Research Systems Inc. 1.14%
Dana Inc. 1.13%
Robert Half International Inc. 1.13%
Marriott Vacations Worldwide Corporation 1.12%

Holdings are subject to change.

NAV History (Since Inception)
Past performance is not indicative of future results.
Top Sector Exposure (as of 11/16/2017)
Financials 31.23%
Consumer Discretionary 24.32%
Industrials 21.84%
Information Technology 9.35%
Materials 6.72%
Consumer Staples 2.80%
Health Care 1.69%
Utilities 1.06%
Energy 0.99%
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 All market capitalization numbers are in USD$ Millions.

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 US Small Mid Cap Rising Dividend Achievers™ 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 prices of equity securities fluctuate for several reasons, including changes in investors' perceptions of the financial condition of an issuer or the general condition of the relevant stock market, such as market volatility, or when political or economic events affecting the issuers occur.

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.

The fund may invest in securities issued by companies concentrated in a particular industry. The fund may invest in small capitalization and mid capitalization companies. Such companies may experience greater price volatility than larger, more established companies.

There is no guarantee that the issuers of the securities in the portfolio will declare dividends in the future or that, if declared, they will either remain at current levels or increase over time.

As the use of Internet technology has become more prevalent in the course of business, the fund has become more susceptible to potential operational risks through breaches in cyber security. Such events could cause the funds to incur regulatory penalties, reputational damage, additional compliance costs associated with corrective measures and/or financial loss.

If the fund has lower average daily trading volumes, it may rely on a small number of third-party market makers to provide a market for the purchase and sale of shares.

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.

Nasdaq® and Nasdaq US Small Mid Cap Rising Dividend Achievers Index are registered trademarks of Nasdaq, Inc. (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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