First Trust CEF Income Opportunity ETF (FCEF)
  • 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 CEF Income Opportunity ETF is an actively managed exchange-traded fund. The Fund's investment objective is to provide current income with a secondary emphasis on total return. Under normal market conditions, the Fund will seek to achieve its investment objectives by investing at least 80% of its net assets (including investment borrowings) in a portfolio of closed-end investment companies that are listed and traded in the United States on registered exchanges ("Closed-End Funds").
There can be no assurance that the Fund's investment objectives will be achieved.
Fund Overview
Fund TypeMulti Asset Income
Investment AdvisorFirst Trust Advisors L.P.
Investor Servicing AgentBank of New York Mellon Corp
Fiscal Year-End08/31
Inception Price$20.05
Inception NAV$20.05
Fees And Expenses
Management Fees0.85%
Acquired Fund Fees and Expenses2.06%
Total Annual Expenses2.91%
Current Fund Data (as of 12/8/2021)
Closing NAV1$25.04
Closing Market Price2$25.02
Bid/Ask Midpoint$25.05
Bid/Ask Premium0.02%
30-Day Median Bid/Ask Spread30.47%
Total Net Assets$38,936,447
Outstanding Shares1,555,000
Daily Volume4,837
Average 30-Day Daily Volume6,832
Closing Market Price 52-Week High/Low$26.26 / $21.95
Closing NAV 52-Week High/Low$25.92 / $21.96
Number of Holdings (excluding cash)48
Top Holdings (as of 12/8/2021)*
Holding Percent
Eaton Vance Tax-Advantaged Global Dividend Income Fund 4.85%
Cohen & Steers REIT and Preferred and Income Fund, Inc. 4.19%
Eaton Vance Tax-Advantaged Dividend Income Fund 4.02%
BlackRock Science & Technology Trust 3.92%
Eaton Vance Tax-Advantaged Global Dividend Opportunities Fund 3.73%
Tekla Healthcare Opportunities Fund 3.42%
Tekla Healthcare Investors 3.38%
Ares Dynamic Credit Allocation Fund, Inc. 3.32%
The Gabelli Dividend & Income Trust 3.32%
BlackRock Science and Technology Trust II 3.15%

* Excluding cash.  Holdings are subject to change.

Fixed-Income Credit Quality (as of 11/30/2021)
Credit Quality Percent
AAA 4.69%
AA 0.36%
A 0.73%
BBB 14.18%
BB 26.40%
B 34.21%
CCC-D 10.83%
N/R 8.60%
The ratings are by Standard & Poor's except where otherwise indicated. A credit rating is an assessment provided by a nationally recognized statistical rating organization (NRSRO) of the creditworthiness of an issuer with respect to debt obligations except for those debt obligations that are only privately rated. Ratings are measured on a scale that generally ranges from AAA (highest) to D (lowest). Investment grade is defined as those issuers that have a long-term credit rating of BBB- or higher. "NR" indicates no rating. 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. Credit ratings are subject to change.
NAV History (Since Inception)
Past performance is not indicative of future results.
Distribution Information
Dividend per Share Amt (as of 12/9/2021)4$0.1100
30-Day SEC Yield (as of 11/30/2021)55.54%
12-Month Distribution Rate (as of 11/30/2021)64.83%
Distribution Rate (as of 11/30/2021)75.34%
Fund Characteristics (as of 11/30/2021)
Weighted Average Option-Adjusted Duration83.17 Years
Weighted Average Leverage Option-Adjusted Duration94.68 Years
Weighted Average Effective Maturity6.36 Years
Weighted Average Leverage1017.75%
Weighted Average Premium/Discount11-3.99%
Fund Composition (as of 11/30/2021)
CEFs - Equity 66.69%
CEFs - Taxable Fixed-Income 31.77%
Cash 1.54%
World Regions (as of 11/30/2021)
Region Percent
Americas 80.59%
Europe 11.55%
Asia 7.86%
Refers to the equity holdings of the underlying closed-end funds as a percentage of the total such equity holdings.
Market Capitalization (as of 11/30/2021)
Capitalization Percent
Large 36.11%
Mid 26.61%
Mega 26.57%
Small 7.23%
Micro 3.48%
Refers to the equity holdings of the underlying closed-end funds as a percentage of the total such equity holdings.
Market Classification (as of 11/30/2021)
Classification Percent
Developed Markets 97.07%
Emerging Markets 2.93%
Refers to the equity holdings of the underlying closed-end funds as a percentage of the total such equity holdings.
Bid/Ask Premium/Discount (as of 12/8/2021)
  2020 Q1 2021 Q2 2021 Q3 2021
Days Traded at Premium 144 32 35 46
Days Traded at Discount 109 29 28 18
Weighted Avg Premium/Discount11
Current Weighted Average Premium Discount Information (as of 12/8/2021)
52-Week Average-5.08%
52-Week High-3.28%
52-Week Low-8.14%
Top Sector Exposure (as of 11/30/2021)
Allocation--50% to 70% Equity 10.12%
World Allocation 9.66%
Health 9.61%
Technology 9.13%
Bank Loan 7.84%
High Yield Bond 7.72%
Allocation--70% to 85% Equity 7.67%
Large Blend 7.21%
Multisector Bond 6.07%
Infrastructure 4.17%
World Bond 2.78%
Convertibles 2.70%
Small Blend 2.56%
Preferred Stock 2.17%
Tactical Allocation 1.79%
Emerging Markets Bond 1.74%
Cash 1.54%
Real Estate 1.38%
Diversified Emerging Mkts 1.04%
Equity Energy 1.02%
Inflation-Protected Bond 0.77%
World Large-Stock Growth 0.72%
Derivative Income 0.59%
Hypothetical Growth of $10,000 Since Inception (as of 12/7/2021) *

Month End Performance (as of 11/30/2021)
  3 Month YTD 1 Year 3 Year 5 Year 10 Year Since
Fund Performance *
Net Asset Value (NAV) -2.56% 14.44% 19.72% 12.31% 10.51% N/A 9.79%
After Tax Held -3.07% 12.45% 17.44% 9.97% 8.22% N/A 7.49%
After Tax Sold -1.51% 8.60% 11.71% 8.49% 7.17% N/A 6.58%
Market Price -2.29% 14.44% 19.72% 12.47% 10.46% N/A 9.79%
Index Performance **
Blended Benchmark -2.41% 13.59% 18.34% 11.42% 9.74% N/A 8.91%
Russell 3000® Index 0.42% 20.90% 26.34% 20.20% 17.51% N/A 17.46%
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) -1.72% 13.45% 32.17% 9.60% 9.87% N/A 9.94%
After Tax Held -2.16% 11.87% 29.65% 7.31% 7.56% N/A 7.64%
After Tax Sold -0.95% 8.01% 19.03% 6.35% 6.63% N/A 6.69%
Market Price -1.68% 13.49% 32.09% 9.60% 9.81% N/A 9.95%
Index Performance **
Blended Benchmark -1.53% 12.71% 29.35% 8.82% 8.95% N/A 9.05%
Russell 3000® Index -0.10% 14.99% 31.88% 16.00% 16.85% N/A 16.92%
3-Year Statistics (as of 11/30/2021)
  Standard Deviation Alpha Beta Sharpe Ratio Correlation
FCEF 19.96% -6.20 0.98 0.63 0.94
Blended Benchmark 19.31% -6.44 0.94 0.60 0.94
Russell 3000® Index 19.30% --- 1.00 0.99 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 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.

Prior to August 2019, the Blended Benchmark consisted of the following two indexes: 60% of the Morningstar US All Equity CEF Index and 40% of the Morningstar US All Taxable Fixed Income CEF Index. The prior Blended Benchmark is no longer shown because the Morningstar Indexes used in the Blended Benchmark were closed in August 2019.

Blended Benchmark - The Benchmark consists of the following two indexes: 60% of the First Trust Equity Closed-End Fund Index which is a cap weighted index (based on NAV) designed to provide a broad representation of the equity based closed-end fund universe; and 40% of the First Trust Taxable Fixed Income Closed-End Fund Index which is a cap weighted index (based on NAV) designed to provide a broad representation of the taxable fixed income closed-end fund universe. Funds included in the indexes trade on an U.S. Stock Exchange and have a market cap of at least $100 million. The Blended Benchmark returns are calculated by using the monthly return of the two indices during each period shown above. At the beginning of each month the two indices are rebalanced to a 60-40 ratio to account for divergence from that ratio that occurred during the course of each month. The monthly returns are then compounded for each period shown above, giving the performance for the Blended Benchmark for each period shown above.

Russell 3000® Index - The Index is comprised of the 3000 largest and most liquid stocks based and traded in the U.S.

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 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 and is adjusted for option provisions.
9 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 that is adjusted for option provisions and the leveraging process.
10 The use of various financial instruments or borrowed capital to increase the potential return of an investment.
11 A premium occurs when an underlying fund's market price is higher than its NAV, and a discount occurs when an underlying fund's market price is lower than its NAV.
12 Inception Date is 9/27/2016

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.

Asset-backed securities are generally not backed by the full faith and credit of the U.S. government and are subject to the risk of default on the underlying asset or loan, particularly during periods of economic downturn.

Because the shares of CEFs cannot be redeemed upon demand, shares of many CEFs will trade on exchanges at market prices rather than net asset value, which may cause the shares to trade at a price greater than NAV (premium) or less than NAV (discount). A fund may invest in the shares of CEFs which involves additional expenses that would not be present in a direct investment in the underlying funds. In addition, a fund's investment performance and risks may be related to the investment performance and risks of the underlying funds.

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.

Covenant-lite loans contain fewer maintenance covenants than traditional loans and may not include terms that allow the lender to monitor the financial performance of the borrower and declare a default if certain criteria are breached. This may hinder a fund's ability to mitigate problems and increase a fund's exposure to losses on such investments.

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, prepayment and zero coupon 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 derivatives 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.

Distressed securities are illiquid or trade in low volumes and thus may be more difficult to value.

A fund's investment in dividend-paying securities may cause a fund to underperform similar funds that do not consider an issuer's track record of paying dividends.

A fund may invest in the shares of other ETFs, which involves additional expenses that would not be present in a direct investment in the underlying funds. In addition, a fund's investment performance and risks may be related to the investment performance and risks of the underlying funds.

The market value of floating rate securities may fall in a declining interest rate environment and may also fall in a rising interest rate environment if there is a lag between the rise in interest rates and the reset. Income earned by a fund on floating rate and fixed-to-floating rate securities may decline due to lower coupon payments on floating-rate securities.

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's investment in CEFs is restricted by the Investment Company Act of 1940 and a fund's associated exemptive relief which limits the amount of any single CEF that can be owned by a fund.

Leverage may result in losses that exceed the amount originally invested and may accelerate the rates of losses.

To the extent a fund invests in floating or variable rate obligations that use the London Interbank Offered Rate ("LIBOR") as a reference interest rate, it is subject to LIBOR Risk. The United Kingdom's Financial Conduct Authority, which regulates LIBOR, will cease making LIBOR available as a reference rate over a phase-out period that will begin immediately after December 31, 2021. The unavailability or replacement of LIBOR may affect the value, liquidity or return on certain fund investments and may result in costs incurred in connection with closing out positions and entering into new trades. Any potential effects of the transition away from LIBOR on a fund or on certain instruments in which a fund invests can be difficult to ascertain, and they may vary depending on a variety of factors, and they could result in losses to a fund.

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.

Master limited partnerships (MLPs) are subject to certain risks, including price and supply fluctuations caused by international politics, energy conservation, taxes, price controls, and other regulatory policies of various governments. In addition, there is the risk that MLPs could be taxed as corporations, resulting in decreased returns from such MLPs.

Mortgage-related securities are more susceptible to adverse economic, political or regulatory events that affect the value of real estate. They are also subject to the risk that the rate of mortgage prepayments decreases, which extends the average life of a security and increases the interest rate exposure.

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.

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.

Preferred securities combine some of the characteristics of both common stocks and bonds. Preferred stocks are typically subordinated to other debt instruments in terms of priority to corporate income, and therefore will be subject to greater credit risk than those debt instruments.

REITs are subject to certain risks, including changes in the real estate market, vacancy rates and competition, volatile interest rates and economic recession.

Companies that issue loans tend to be highly leveraged and thus are more susceptible to the risks of interest deferral, default and/or bankruptcy. Loans are usually rated below investment grade but may also be unrated. As a result, the risks associated with these loans are similar to the risks of high yield fixed income instruments. The senior loan market has seen a significant increase in loans with weaker lender protections which may impact recovery values and/or trading levels in the future.

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.

Securities of small- and mid-capitalization companies may experience greater price volatility and be less liquid than larger, more established companies.

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