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

Search by Ticker, Keyword or CUSIP       
First Trust SSI Strategic Convertible Securities ETF (FCVT)
Investment Objective/Strategy - The First Trust SSI Strategic Convertible Securities ETF is an actively managed exchange-traded fund that seeks to deliver total return by investing, under normal market conditions, at least 80% of its net assets in a diversified portfolio of U.S. and non-U.S. convertible securities.
There can be no assurance that the Fund's investment objectives will be achieved.
Fund Overview
Fund TypeConvertible Securities
Investment AdvisorFirst Trust Advisors L.P.
Investor Servicing AgentBrown Brothers Harriman
Portfolio Manager/Sub-AdvisorSSI Investment Management LLC
Fiscal Year-End10/31
Inception Price$25.00
Inception NAV$25.00
Expense Ratio0.95%
Current Fund Data (as of 5/20/2022)
Closing NAV1$33.30
Closing Market Price2$33.29
Bid/Ask Midpoint$33.40
Bid/Ask Premium0.30%
30-Day Median Bid/Ask Spread30.56%
Total Net Assets$181,510,331
Outstanding Shares5,450,002
Daily Volume40,798
Average 30-Day Daily Volume82,212
Closing Market Price 52-Week High/Low$53.89 / $32.56
Closing NAV 52-Week High/Low$53.73 / $32.74
Number of Holdings (excluding cash)119
Top Holdings (as of 5/20/2022)*
Holding Percent
PALO ALTO NETWORKS Convertible, 0.75%, due 07/01/2023 2.88%
DEXCOM INC Convertible, 0.25%, due 11/15/2025 2.69%
Broadcom Inc., Series A, 8.00%, Due 09/30/2022 2.59%
PIONEER NATURAL RESOURCES Convertible, 0.25%, due 05/15/2025 2.50%
NextEra Energy, Inc., Convertible, 5.279%, Due 03/01/2023 2.39%
SOUTHWEST AIRLINES CO Convertible, 1.25%, due 05/01/2025 1.91%
SNAP INC Convertible, 0.125%, due 03/01/2028 1.78%
ON SEMICONDUCTOR CORP Convertible, 0%, due 05/01/2027 1.72%
LIVE NATION ENTERTAINMENT Convertible, 2.50%, due 03/15/2023 1.60%
ENPHASE ENERGY INC Convertible, 0%, due 03/01/2028 1.57%

* Excluding cash.  Holdings are subject to change.

NAV History (Since Inception)
Past performance is not indicative of future results.
Fund Characteristics (as of 4/29/2022)
Weighted Average Effective Duration41.40 Years
Security Type Breakdown (as of 4/29/2022)
Convertible Bond 85.12%
Mandatory Preferred 13.24%
Cash & Equivalent 1.64%
Convertible Preferred 0.00%
Please note that percentage of 0.00 indicates an amount less than 0.01%.
Bid/Ask Premium/Discount (as of 5/20/2022)
  2021 Q1 2022 Q2 2022 Q3 2022
Days Traded at Premium 97 11 16 ---
Days Traded at Discount 155 51 19 ---
Top Sector Exposure (as of 4/29/2022)
Information Technology 30.72%
Health Care 14.52%
Consumer Discretionary 11.57%
Communication Services 9.99%
Industrials 8.12%
Utilities 5.23%
Energy 5.21%
Financials 4.49%
Cash & Equivalent 3.24%
Real Estate 3.15%
Materials 2.77%
Consumer Staples 0.99%
Hypothetical Growth of $10,000 Since Inception (as of 5/19/2022) *

Month End Performance (as of 4/29/2022)
  3 Month YTD 1 Year 3 Year 5 Year 10 Year Since
Fund Performance *
Net Asset Value (NAV) -5.92% -12.65% -14.20% 13.72% 11.93% N/A 10.98%
After Tax Held -6.38% -13.22% -19.34% 10.92% 9.91% N/A 9.21%
After Tax Sold -3.49% -7.47% -5.79% 10.25% 9.01% N/A 8.32%
Market Price -5.66% -13.11% -14.47% 13.62% 11.81% N/A 10.95%
Index Performance **
ICE BofA All US Convertibles Index -5.96% -12.12% -11.44% 14.12% 12.48% N/A 11.59%
Quarter End Performance (as of 3/31/2022)
  3 Month YTD 1 Year 3 Year 5 Year 10 Year Since
Fund Performance *
Net Asset Value (NAV) -5.54% -5.54% -4.89% 17.81% 13.89% N/A 12.50%
After Tax Held -5.99% -5.99% -10.46% 14.96% 11.86% N/A 10.71%
After Tax Sold -3.28% -3.28% -0.47% 13.43% 10.56% N/A 9.53%
Market Price -5.63% -5.63% -4.38% 17.80% 13.94% N/A 12.54%
Index Performance **
ICE BofA All US Convertibles Index -5.41% -5.41% -2.21% 18.00% 14.39% N/A 13.04%
3-Year Statistics (as of 4/29/2022)
  Standard Deviation Alpha Beta Sharpe Ratio Correlation
FCVT 18.61% -0.88 1.05 0.74 0.99
ICE BofA All US Convertibles Index 17.63% --- 1.00 0.79 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.

ICE BofA All US Convertibles Index - The Index measures the return of all U.S. convertibles.

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 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.
5 Inception Date is 11/3/2015

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. In February 2022, Russia invaded Ukraine which has caused and could continue to cause significant market disruptions and volatility within the markets in Russia, Europe, and the United States. The hostilities and sanctions resulting from those hostilities could have a significant impact on certain fund investments as well as fund performance. The COVID-19 global pandemic has caused and may continue to cause significant volatility and declines in global financial markets. While the U.S. has resumed “reasonably” normal business activity, many countries continue to impose lockdown measures. 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 convertible security is exposed to risks associated with both equity and debt securities. The value of convertibles may rise and fall with the market value of the underlying stock or vary with changes in interest rates and credit quality of the issuer.

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.

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.

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.

High portfolio turnover may result in higher levels of transaction costs and may generate greater tax liabilities for shareholders.

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.

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
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, the Internal Revenue Code or any other regulatory framework. Financial professionals are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.
First Trust Portfolios L.P.  Member SIPC and FINRA. (Form CRS)   •  First Trust Advisors L.P. (Form CRS)
Home |  Important Legal Information |  Privacy Policy |  California Privacy Policy |  Business Continuity Plan |  FINRA BrokerCheck
Copyright © 2022 All rights reserved.