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First Trust Dow Jones Select MicroCap Index Fund (FDM)
Investment Objective/Strategy - The First Trust Dow Jones Select MicroCap Index Fund is an exchange-traded index fund. The investment objective of the Fund is to replicate as closely as possible, before fees and expenses, the price and yield of the Dow Jones Select Microcap IndexSM.
There can be no assurance that the Fund's investment objectives will be achieved.
  • This index is designed to represent microcap stocks trading on the New York Stock Exchange ("NYSE"), NYSE Amex and Nasdaq that are comparatively liquid and have strong fundamentals relative to the microcap segment as a whole.
  • Covers securities whose market capitalizations fall within a range defined by the bottom two deciles of NYSE stocks.
  • Stocks are screened based on market capitalization, trading volume, and financial indicators that include trailing price/earnings ratio, trailing price/sales ratio, per-share profit change for the previous quarter, operating profit margin and six-month total return.
Fund Overview
Fund TypeMicro Cap
Investment AdvisorFirst Trust Advisors L.P.
Investor Servicing AgentBank of New York Mellon
Fiscal Year-End12/31
ExchangeNYSE Arca
Inception Price$20.00
Inception NAV$20.00
Rebalance FrequencyQuarterly
Gross Expense Ratio*0.75%
Net Expense Ratio*0.60%
* As of 5/1/2017
Expenses are capped contractually at 0.60% per year, at least until April 30, 2018.
Current Fund Data (as of 2/16/2018)
Closing NAV1$46.73
Closing Share Price2$46.76
Bid/Ask Midpoint$46.68
Bid/Ask Discount0.10%
Total Net Assets$100,693,375
Outstanding Shares2,155,000
Daily Volume12,176
Average 30-Day Daily Volume13,253
Closing Share Price 52-Week High/Low$48.94 / $40.92
Closing NAV 52-Week High/Low$48.96 / $40.89
Number of Holdings258
Fund Characteristics (as of 1/31/2018)9
Maximum Market Cap.$1,705
Median Market Cap.$473
Minimum Market Cap.$43
Price/Cash Flow14.04
Top Holdings (as of 2/16/2018)
Holding Percent
Virtu Financial, Inc. (Class A) 1.09%
NMI Holdings, Inc. (Class A) 1.05%
Schnitzer Steel Industries, Inc. 0.92%
Rayonier Advanced Materials Inc. 0.90%
M/I Homes, Inc. 0.85%
Astronics Corporation 0.84%
ConnectOne Bancorp, Inc. 0.84%
ArcBest Corporation 0.82%
CTS Corporation 0.82%
Bryn Mawr Bank Corporation 0.81%

Holdings are subject to change.

NAV History (Since Inception)
Past performance is not indicative of future results.
Overall Morningstar RatingTM (as of 1/31/2018)3

Among 345 funds in the Small Value category. This fund was rated 5 stars/345 funds (3 years), 5 stars/298 funds (5 years), 3 stars/205 funds (10 years).
Distribution Information
Dividend per Share Amt (as of 2/20/2018)4$0.1798
30-Day SEC Yield (as of 1/31/2018)50.87%
Unsubsidized 30-Day SEC Yield (as of 1/31/2018)60.76%
12-Month Distribution Rate (as of 1/31/2018)70.97%
Index Yield (as of 1/31/2018)81.54%
Bid/Ask Midpoint vs. NAV (as of 12/31/2017)
Number of Days Bid/Ask Midpoint Above NAV
Quarter Ended 0-49
Basis Points
Basis Points
Basis Points
Basis Points
12/31/2017 56 0 0 0
9/30/2017 44 0 0 0
6/30/2017 45 0 0 0
3/31/2017 35 0 0 0
Number of Days Bid/Ask Midpoint Below NAV
Quarter Ended 0-49
Basis Points
Basis Points
Basis Points
Basis Points
12/31/2017 7 0 0 0
9/30/2017 19 0 0 0
6/30/2017 18 0 0 0
3/31/2017 27 0 0 0

The price used to calculate market return is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange, on which shares of the Fund are listed for trading, as of the time that the Fund's NAV is calculated.

Top Sector Exposure (as of 2/16/2018)
Financials 42.74%
Consumer Discretionary 16.82%
Industrials 14.70%
Information Technology 6.65%
Health Care 5.43%
Materials 5.43%
Real Estate 2.86%
Consumer Staples 2.21%
Utilities 1.72%
Energy 1.44%
Month End Performance (as of 1/31/2018)
  3 Mos YTD 1 Year 3 Year 5 Year 10 Year Since
Fund Performance *
Net Asset Value (NAV) 1.41% 0.61% 12.22% 16.17% 16.00% 9.94% 8.23%
After Tax Held 1.24% 0.61% 11.73% 15.53% 15.45% 9.49% 7.85%
After Tax Sold 0.82% 0.36% 7.19% 12.38% 12.62% 7.93% 6.58%
Market Price 1.49% 0.36% 12.36% 16.18% 16.01% 9.95% 8.23%
Index Performance **
Dow Jones Select MicroCap IndexSM 1.57% 0.70% 12.91% 16.86% 16.70% 10.64% 8.95%
Russell 2000® Index 5.14% 2.61% 17.18% 12.12% 13.33% 9.76% 8.78%
Quarter End Performance (as of 12/29/2017)
  3 Mos YTD 1 Year 3 Year 5 Year 10 Year Since
Fund Performance *
Net Asset Value (NAV) 2.38% 8.44% 8.44% 13.88% 16.89% 8.87% 8.23%
After Tax Held 2.21% 7.97% 7.97% 13.26% 16.33% 8.43% 7.85%
After Tax Sold 1.34% 4.77% 4.77% 10.54% 13.37% 7.01% 6.58%
Market Price 2.55% 8.55% 8.55% 13.98% 16.97% 8.88% 8.26%
Index Performance **
Dow Jones Select MicroCap IndexSM 2.48% 9.04% 9.04% 14.54% 17.58% 9.57% 8.95%
Russell 2000® Index 3.34% 14.65% 14.65% 9.96% 14.12% 8.71% 8.61%
3-Year Statistics (as of 1/31/2018)
  Standard Deviation Alpha Beta Sharpe Ratio Correlation
FDM 14.90% 4.02 0.97 1.05 0.91
Russell 2000® Index 13.93% --- 1.00 0.86 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 based on the midpoint of the bid/ask spread on the stock exchange on which shares of the fund are listed for trading 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.

**Performance information for the Dow Jones Select MicroCap IndexSM is for illustrative purposes only and does not represent actual fund performance.
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.
The gross expense ratio for this fund is 0.75%. Expenses are capped contractually at 0.60% per year, at least until April 30, 2018.

Russell 2000® Index - The Index is comprised of the smallest 2000 companies in the Russell 3000 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 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).
The Morningstar RatingTM for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.
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 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.
8 Index yield represents the weighted average trailing 12-month dividend of the constituents of the Dow Jones Select MicroCap Index(SM).
9 All market capitalization numbers are in USD$ Millions.
10 Inception Date is 9/27/2005
Downloads and Links to Recently Posted Fund Information

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.

The fund's return may not match the return of the Dow Jones Select MicroCap IndexSM.  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 fund may invest in securities issued by companies concentrated in a particular industry. The fund invests in micro-capitalization companies which may be more vulnerable to adverse general market or economic developments, may be less liquid, and may experience greater price volatility than larger, more established companies.

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.

The Dow Jones Select MicroCap IndexSM is a product of S&P Dow Jones Indices LLC ("SPDJI"), and has been licensed for use by First Trust. Dow Jones® and Dow Jones Select MicroCap IndexSM are trademarks of Dow Jones Trademark Holdings LLC ("Dow Jones") and have been licensed to SPDJI and have been sublicensed for use for certain purposes by First Trust on behalf of the Fund. First Trust Dow Jones Select MicroCap Index Fund is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones or their respective affiliates and none of them makes any representation regarding the advisability of investing in such product.

©2018 Morningstar, Inc. All Rights Reserved. The Morningstar RatingTM information contained herein: (1) is proprietary to Morningstar;(2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

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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