First Trust Active Factor Small Cap ETF (AFSM)
Investment Objective/Strategy - The First Trust Active Factor Small Cap ETF seeks to provide capital appreciation. Under normal market conditions, the Fund will invest at least 80% of its net assets (including investment borrowings) in U.S.-listed equity securities issued by small capitalization companies. The Fund is actively managed primarily relying on a multi-factor quantitative methodology with active risk management to construct a portfolio of securities exhibiting exposures to one or more investing factors. The multi-factor quantitative methodology currently used by the Fund may take into account the following factors: (i) value; (ii) momentum; (iii) quality; and (iv) low volatility.
There can be no assurance that the Fund's investment objectives will be achieved.
Fund Overview
TickerAFSM
Fund TypeSmall Cap Equity
Investment AdvisorFirst Trust Advisors L.P.
Investor Servicing AgentBank of New York Mellon
CUSIP33740F797
ISINUS33740F7978
Intraday NAVAFSMIV
Fiscal Year-End08/31
ExchangeNYSE Arca
Inception12/3/2019
Inception Price$19.95
Inception NAV$19.95
Expense Ratio0.77%
Current Fund Data (as of 2/23/2021)
Closing NAV1$25.08
Closing Market Price2$25.06
Bid/Ask Midpoint$25.07
Bid/Ask Discount0.04%
30-Day Median Bid/Ask Spread30.33%
Total Net Assets$2,507,746
Outstanding Shares100,002
Daily Volume22
Average 30-Day Daily Volume744
Closing Market Price 52-Week High/Low$25.97 / $11.80
Closing NAV 52-Week High/Low$25.99 / $11.79
Number of Holdings (excluding cash)343
Top Holdings (as of 2/23/2021)*
Holding Percent
Hibbett Sports, Inc. 1.05%
ModivCare Inc. 1.03%
Generac Holdings Inc. 0.90%
Boise Cascade Company 0.88%
Redfin Corporation 0.83%
ArcBest Corporation 0.82%
Medifast, Inc. 0.81%
TechTarget, Inc. 0.78%
Vista Outdoor Inc. 0.78%
Rent-A-Center, Inc. 0.77%

* Excluding cash.  Holdings are subject to change.

NAV History (Since Inception)
Past performance is not indicative of future results.
Distribution Information
Dividend per Share Amt (as of 2/24/2021)4$0.0600
30-Day SEC Yield (as of 1/29/2021)50.17%
12-Month Distribution Rate (as of 1/29/2021)60.50%
For funds with certain equity strategies, due to the negative economic impact across many industries caused by the COVID-19 outbreak, certain of the issuers of the securities included in the fund may elect to reduce the amount of dividends and/or distributions paid in the future. As a result, the "12-Month Distribution Rate," which is based on the fund's trailing 12-month ordinary distributions, will likely be higher, and in some cases significantly higher, than the actual 12-month distribution rate achieved by the fund.
Fund Characteristics (as of 1/29/2021)7
Maximum Market Cap.$38,245
Median Market Cap.$2,399
Minimum Market Cap.$123
Price/Earnings19.08
Price/Book2.44
Price/Cash Flow13.30
Price/Sales1.40
Bid/Ask Premium/Discount (as of 2/23/2021)
  2020 Q1 2021 Q2 2021 Q3 2021
Days Traded at Premium 129 10 --- ---
Days Traded at Discount 124 25 --- ---
Top Sector Exposure (as of 2/23/2021)
Health Care 21.06%
Industrials 16.28%
Information Technology 14.85%
Consumer Discretionary 14.84%
Financials 13.92%
Consumer Staples 5.01%
Real Estate 4.68%
Materials 3.12%
Energy 2.50%
Communication Services 1.99%
Utilities 1.75%
Month End Performance (as of 1/29/2021)
  3 Month YTD 1 Year 3 Year 5 Year 10 Year Since
Fund
Inception8
Fund Performance *
Net Asset Value (NAV) 29.41% 5.29% 18.90% N/A N/A N/A 15.08%
After Tax Held 29.27% 5.29% 18.60% N/A N/A N/A 14.71%
After Tax Sold 17.41% 3.13% 11.16% N/A N/A N/A 11.33%
Market Price 29.43% 5.25% 18.97% N/A N/A N/A 15.03%
Index Performance **
Russell 2000® Index 35.15% 5.03% 30.17% N/A N/A N/A 26.49%
Quarter End Performance (as of 12/31/2020)
  3 Month YTD 1 Year 3 Year 5 Year 10 Year Since
Fund
Inception8
Fund Performance *
Net Asset Value (NAV) 23.18% 8.46% 8.46% N/A N/A N/A 10.91%
After Tax Held 23.04% 8.19% 8.19% N/A N/A N/A 10.53%
After Tax Sold 13.72% 4.99% 4.99% N/A N/A N/A 8.14%
Market Price 23.25% 8.40% 8.40% N/A N/A N/A 10.91%
Index Performance **
Russell 2000® Index 31.37% 19.96% 19.96% N/A N/A N/A 23.12%

*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 determined by using the midpoint of the national best bid offer price ("NBBO") 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.

**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.

Russell 2000® Index - The Index is comprised of the smallest 2000 companies in the Russell 3000 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 market 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 median bid-ask spread is calculated by identifying the national best bid and national best offer ("NBBO") for the fund as of the end of each 10 second interval during each trading day of the last 30 calendar days and dividing the difference between each such bid and offer by the midpoint of the NBBO. The median of those values is identified and that value is expressed as a percentage rounded to the nearest hundredth.
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 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 All market capitalization numbers are in USD$ Millions.
8 Inception Date is 12/3/2019

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.

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 security owned by the fund, fund shares or securities in general may fall in value. There can be no assurance that the fund's investment objective will be achieved. The outbreak of the respiratory disease designated as COVID-19 in December 2019 has caused significant volatility and declines in global financial markets, which have caused losses for investors. The COVID-19 pandemic may last for an extended period of time, and will continue to impact the economy for the foreseeable future.

The fund may invest in securities issued by companies concentrated in a particular industry or sector, which involves additional risks including limited diversification. The fund may invest in small capitalization and mid capitalization companies. Such companies may experience greater price volatility than larger, more established companies.

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 cybersecurity.

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

There can be no assurance that the securities held by the fund will stay within the fund's intended market capitalization range.

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.

Actively managed funds are subject to management risk because the advisor or sub-advisor will apply investment techniques and risk analyses that may not have the desired result.

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.

Not FDIC Insured • Not Bank Guaranteed • May Lose Value