First Trust TCW Emerging Markets Debt ETF (EFIX)
  • 2021 Estimated Capital Gain Distributions
    Certain First Trust Exchange-Traded Funds are expected to pay a short term and/or long-term capital gain distribution in December. For a list of exchange-traded funds expected to pay a capital gain distribution, please click here. 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 TCW Emerging Markets Debt ETF (the "Fund") seeks to provide high total return from current income and capital appreciation. Under normal market conditions, the Fund will invest at least 80% of its net assets (including investment borrowings) in debt securities issued or guaranteed by companies, financial institutions and government entities located in emerging market countries. An "emerging market country" is a country that, at the time the Fund invests in the related security or instrument, is classified as an emerging or developing economy by any supranational organization such as the World Bank or the United Nations, or related entities, or is considered an emerging market country for purposes of constructing a major emerging market securities index. The Fund's investments include, but are not limited to, debt securities issued by sovereign entities, quasi-sovereign entities and corporations. "Quasi-Sovereign" refers to an entity that is either 100% owned by a sovereign entity or whose debt is 100% guaranteed by a sovereign entity. The Fund may invest up to 25% of its net assets in securities issued by non-Quasi-Sovereign corporations in emerging market countries. The Fund will invest at least 90% of its assets in dollar-denominated securities. The Fund may invest up to 10% of its assets in securities denominated in Eurodollars and/or Japanese yen.
There can be no assurance that the Fund's investment objectives will be achieved.
Fund Overview
Fund TypeEmerging Market Bonds
Investment AdvisorFirst Trust Advisors L.P.
Investor Servicing AgentBank of New York Mellon Corp
Portfolio Manager/Sub-AdvisorTCW Investment Management Company LLC
Fiscal Year-End08/31
ExchangeNYSE Arca
Inception Price$20.00
Inception NAV$20.00
Gross Expense Ratio*0.95%
Net Expense Ratio*0.85%
* As of 2/12/2021
First Trust has contractually agreed to waive management fees of 0.10% of average daily net assets until February 12, 2023.
Current Fund Data (as of 11/26/2021)
Closing NAV1$18.66
Closing Market Price2$18.60
Bid/Ask Midpoint$18.57
Bid/Ask Discount0.48%
30-Day Median Bid/Ask Spread30.26%
Total Net Assets$18,660,993
Outstanding Shares1,000,002
Daily Volume10,753
Average 30-Day Daily Volume1,571
Closing Market Price 52-Week High/Low$20.05 / $18.60
Closing NAV 52-Week High/Low$20.08 / $18.66
Number of Holdings (excluding cash)87
Top Holdings (as of 11/26/2021)*
Holding Percent
REPUBLIC OF PANAMA 2.252%, due 09/29/2032 4.02%
ARAB REPUBLIC OF EGYPT 7.0529%, due 01/15/2032 2.54%
REPUBLIC OF PARAGUAY 5.60%, due 03/13/2048 2.41%
DOMINICAN REPUBLIC 4.875%, due 09/23/2032 2.40%
SAUDI INTERNATIONAL BOND 2.25%, due 02/02/2033 2.35%
INSTITUTO COSTARRICENSE 6.75%, due 10/07/2031 2.23%
QATAR ENERGY 2.25%, due 07/12/2031 2.13%
PETROLEOS MEXICANOS 5.95%, due 01/28/2031 1.99%
UKRAINE GOVERNMENT 7.75%, due 09/01/2027 1.87%
INDONESIA ASAHAN ALUMINIUM 5.45%, due 05/15/2030 1.70%

* 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 11/29/2021)4$0.0685
30-Day SEC Yield (as of 10/29/2021)54.27%
Unsubsidized 30-Day SEC Yield (as of 10/29/2021)64.17%
Distribution Rate (as of 10/29/2021)74.29%
Fund Characteristics (as of 10/29/2021)
Weighted Average Effective Duration87.88 Years
Weighted Average Maturity11.42 Years
Top Country Exposure (as of 10/29/2021)
Country Percent
Mexico 7.35%
Indonesia 5.25%
Colombia 4.78%
India 4.75%
Peru 4.69%
Chile 3.94%
Panama 3.94%
Ukraine 3.90%
Egypt 3.62%
Bahrain 3.39%
Fund Composition (as of 10/29/2021)
Sovereigns 62.92%
Corporates 20.09%
Quasi-Sovereigns 14.12%
Cash 2.87%
Hedge 0.00%
Please note that percentage of 0.00 indicates an amount less than 0.01%.
Maturity Exposure (as of 10/29/2021)
Years Percent
1-2 .99 Years 1.06%
3-4.99 Years 3.34%
5-6.99 Years 16.06%
7-9.99 Years 25.94%
10-19.99 Years 36.27%
Greater than 20 Years 14.46%
Less than 1 Years 0.00%
Please note that percentage of 0.00 indicates an amount less than 0.01%.
Bid/Ask Premium/Discount (as of 11/26/2021)
  2020 Q1 2021 Q2 2021 Q3 2021
Days Traded at Premium --- 6 7 1
Days Traded at Discount --- 24 56 63
Credit Quality (as of 10/29/2021)
AA 6.56%
A 6.19%
BBB 17.49%
BB 31.51%
B 26.36%
CCC 7.92%
CC 1.09%
The credit quality and ratings information presented above reflect the ratings assigned by one or more nationally recognized statistical rating organizations (NRSROs), including Standard & Poor's Rating Group, a division of the McGraw Hill Companies, Inc., Moody's Investors Service, Inc., Fitch Ratings, or a comparably rated NRSRO. For situations in which a security is rated by more than one NRSRO and the ratings are not equivalent, the lowest ratings are used. Sub-investment grade ratings are those rated BB+/Ba1 or lower. Investment grade ratings are those rated BBB-/Baa3 or higher. The credit ratings shown relate to the creditworthiness of the issuers of the underlying securities in the fund, and not to the fund or its shares. U.S. Treasury, U.S. Agency and U.S. Agency mortgage-backed securities appear under "Government/Agency". Credit ratings are subject to change.
Hypothetical Growth of $10,000 Since Inception (as of 11/26/2021) *

Month End Performance (as of 10/29/2021)
  3 Month YTD 1 Year 3 Year 5 Year 10 Year Since
Fund Performance *
Net Asset Value (NAV) -2.03% N/A N/A N/A N/A N/A -1.30%
After Tax Held -2.46% N/A N/A N/A N/A N/A -2.45%
After Tax Sold -1.20% N/A N/A N/A N/A N/A -0.76%
Market Price -2.08% N/A N/A N/A N/A N/A -1.55%
Index Performance **
JP Morgan Emerging Market Bond Index Global Diversified -1.09% N/A N/A N/A N/A N/A 0.54%
Quarter End Performance (as of 9/30/2021)
  3 Month YTD 1 Year 3 Year 5 Year 10 Year Since
Fund Performance *
Net Asset Value (NAV) -1.51% N/A N/A N/A N/A N/A -0.98%
After Tax Held -1.94% N/A N/A N/A N/A N/A -1.99%
After Tax Sold -0.89% N/A N/A N/A N/A N/A -0.58%
Market Price -1.51% N/A N/A N/A N/A N/A -1.18%
Index Performance **
JP Morgan Emerging Market Bond Index Global Diversified -0.70% N/A N/A N/A N/A N/A 0.52%

*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. 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.

**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.

JP Morgan Emerging Market Bond Index Global Diversified - The Index is a uniquely weighted USD-denominated emerging markets sovereign index.

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 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 Distribution Rate is calculated by dividing the fund's most recent ordinary distribution paid or declared, on an annualized basis, by the NAV price. Distribution rates may vary.
8 A measure of a bond's sensitivity to interest rate changes that reflects the change in a bond's price given a change in yield. It accounts for the likelihood of changes in the timing of cash flows in response to interest rate movements.
9 Inception Date is 2/17/2021

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.

Risk Considerations

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 a fund by authorized participants in very large creation/redemption units. If a 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 a fund's net asset value and possibly face delisting.

A fund's shares will change in value, and you could lose money by investing in a fund. One of the principal risks of investing in a fund is market risk. Market risk is the risk that a particular stock owned by a fund, fund shares or stocks in general may fall in value. There can be no assurance that a 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. While the development of vaccines has slowed the spread of the virus and allowed for the resumption of "reasonably" normal business activity in the United States, many countries continue to impose lockdown measures in an attempt to slow the spread. Additionally, there is no guarantee that vaccines will be effective against emerging variants of the disease.

In managing a fund's investment portfolio, the portfolio managers will apply investment techniques and risk analyses that may not have the desired result.

A fund that effects all or a portion of its creations and redemptions for cash rather than in-kind may be less tax-efficient.

A fund may be subject to the risk that a counterparty will not fulfill its obligations which may result in significant financial loss to a fund.

Changes in currency exchange rates and the relative value of non-US currencies may affect the value of a fund's investments and the value of a fund's shares.

As the use of Internet technology has become more prevalent in the course of business, funds have become more susceptible to potential operational risks through breaches in cyber security.

Certain securities are subject to call, credit, inflation, income, interest rate, extension and prepayment risks. These risks could result in a decline in a security's value and/or income, increased volatility as interest rates rise or fall and have an adverse impact on a fund's performance.

The use of listed and OTC derivatives, including futures, options, swap agreements and forward contracts, can lead to losses because of adverse movements in the price or value of the underlying asset, index or rate, which may be magnified by certain features of the derivatives. These risks are heightened when a fund's portfolio managers use derivatives to enhance a fund's returns or as a substitute for a position or security, rather than solely to hedge (or offset) the risk of a position or security held by a fund.

High yield securities, or "junk" bonds, are less liquid and are subject to greater market fluctuations and risk of loss than securities with higher ratings, and therefore, are considered to be highly speculative.

A fund may be a constituent of one or more indices which could greatly affect a fund's trading activity, size and volatility.

Certain fund investments may be subject to restrictions on resale, trade over-the-counter or in limited volume, or lack an active trading market. Illiquid securities may trade at a discount and may be subject to wide fluctuations in market value.

Large inflows and outflows may impact a new fund's market exposure for limited periods of time.

A fund classified as "non-diversified" may invest a relatively high percentage of its assets in a limited number of issuers. As a result, a 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.

Securities of non-U.S. issuers are 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. These risks may be heightened for securities of companies located in, or with significant operations in, emerging market countries.

A fund and a fund's advisor may seek to reduce various operational risks through controls and procedures, but it is not possible to completely protect against such risks.

A fund with significant exposure to a single asset class, country, region, industry, or sector may be more affected by an adverse economic or political development than a broadly diversified fund.

Investments in sovereign bonds involve special risks because the governmental authority that controls the repayment of the debt may be unwilling or unable to repay the principal and/or interest when due. In times of economic uncertainty, the prices of these securities may be more volatile than those of corporate debt or other government debt obligations.

Trading on the exchange may be halted due to market conditions or other reasons. There can be no assurance that the requirements to maintain the listing of a fund on the exchange will continue to be met or be unchanged.

Due to the lack of centralized information and trading, and variations in lot sizes of certain debt securities, the valuation of debt securities may carry more uncertainty and risk than that of publicly traded securities.

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