First Trust Dow Jones International Internet ETF (FDNI)
Investment Objective/Strategy - The First Trust Dow Jones International Internet ETF seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of an equity index called the Dow Jones International Internet Index SM. The Fund will normally invest at least 90% of its net assets (including investment borrowings) in securities that comprise the Index. The Fund, using an indexing investment approach, attempts to replicate, before fees and expenses, the performance of the Index.
There can be no assurance that the Fund's investment objectives will be achieved.
  • The Dow Jones International Internet Index is a float-adjusted market capitalization weighted index designed to measure the performance of the 40 largest and most actively traded non U.S. international companies in the Internet industry that are engaged in internet commerce and internet services.
  • To be eligible for the Dow Jones International Internet Index, a stock must be listed on the S&P Global Ex-US Broad Market Index and meet the following criteria:
    • Generate a majority of sales/revenues from Internet-based activities.
    • Minimum float-adjusted market capitalization of $1 billion, $800 million for current index constituents.
    • Minimum six-month median daily value traded (MDVT) of $5 million, $4 million for current index constituents.
  • Eligible stocks are ranked by float-adjusted market capitalization and then sorted into descending order by rank.
  • 40 companies are selected, consisting of the top 20 classified as Internet Commerce and the top 20 classified as Internet Services.
  • The index is weighted by float-adjusted market capitalization.
    • The weight of any individual security is capped at 10%.
  • The index is rebalanced and reconstituted quarterly.
Fund Overview
TickerFDNI
Fund TypeInternational Equity
Investment AdvisorFirst Trust Advisors L.P.
Investor Servicing AgentBank of New York Mellon Corp
CUSIP33734X770
ISINUS33734X7701
Intraday NAVFDNI.IV
Fiscal Year-End09/30
ExchangeNasdaq
Inception11/5/2018
Inception Price$19.69
Inception NAV$19.69
Rebalance FrequencyQuarterly
Expense Ratio0.65%
Current Fund Data (as of 10/20/2021)
Closing NAV1$44.48
Closing Market Price2$44.05
Bid/Ask Midpoint$44.21
Bid/Ask Discount0.62%
30-Day Median Bid/Ask Spread31.26%
Total Net Assets$111,203,632
Outstanding Shares2,500,002
Daily Volume7,652
Average 30-Day Daily Volume24,143
Closing Market Price 52-Week High/Low$56.23 / $38.47
Closing NAV 52-Week High/Low$56.07 / $38.69
Number of Holdings (excluding cash)40
Top Holdings (as of 10/20/2021)*
Holding Percent
Alibaba Group Holding Limited (ADR) 10.28%
Shopify Inc. (Class A) 9.86%
Tencent Holdings Limited 9.61%
Meituan (Class B) 8.93%
Sea Limited (ADR) 6.91%
Adyen NV 5.65%
Prosus NV 4.70%
JD.com, Inc. (ADR) 4.50%
Atlassian Corporation Plc (Class A) 3.25%
NAVER Corporation 3.00%

* Excluding cash.  Holdings are subject to change.

NAV History (Since Inception)
Past performance is not indicative of future results.
Fund Characteristics (as of 9/30/2021)4
Maximum Market Cap.$564,490
Median Market Cap.$30,209
Minimum Market Cap.$5,804
Price/Earnings26.15
Price/Book5.08
Price/Cash Flow18.38
Price/Sales5.37
Top Country Exposure (as of 10/20/2021)
Country Percent
China 43.29%
The Netherlands 11.10%
Canada 9.87%
Singapore 6.91%
South Korea 5.49%
Australia 5.17%
Germany 4.04%
Japan 3.61%
United Kingdom 2.74%
South Africa 2.37%
Bid/Ask Premium/Discount (as of 10/20/2021)
  2020 Q1 2021 Q2 2021 Q3 2021
Days Traded at Premium 210 48 41 16
Days Traded at Discount 43 13 22 48
Top Sector Exposure (as of 10/20/2021)
Consumer Discretionary 40.25%
Communication Services 35.86%
Information Technology 22.27%
Health Care 1.62%
Hypothetical Growth of $10,000 Since Inception (as of 10/20/2021) *
Tracking Index: Dow Jones International Internet Index

Month End Performance (as of 9/30/2021)
  3 Month YTD 1 Year 3 Year 5 Year 10 Year Since
Fund
Inception5
Fund Performance *
Net Asset Value (NAV) -15.12% -11.85% 2.42% N/A N/A N/A 29.21%
After Tax Held -15.12% -11.85% 2.35% N/A N/A N/A 28.56%
After Tax Sold -8.95% -7.01% 1.44% N/A N/A N/A 23.01%
Market Price -15.51% -12.16% 2.11% N/A N/A N/A 29.13%
Index Performance **
Dow Jones International Internet Index -14.97% -11.36% 3.57% N/A N/A N/A 30.25%
MSCI ACWI ex USA Index -2.99% 5.90% 23.92% N/A N/A N/A 10.91%
MSCI ACWI ex USA Information Technology Index -1.00% 9.64% 36.71% N/A N/A N/A 29.65%
Quarter End Performance (as of 9/30/2021)
  3 Month YTD 1 Year 3 Year 5 Year 10 Year Since
Fund
Inception5
Fund Performance *
Net Asset Value (NAV) -15.12% -11.85% 2.42% N/A N/A N/A 29.21%
After Tax Held -15.12% -11.85% 2.35% N/A N/A N/A 28.56%
After Tax Sold -8.95% -7.01% 1.44% N/A N/A N/A 23.01%
Market Price -15.51% -12.16% 2.11% N/A N/A N/A 29.13%
Index Performance **
Dow Jones International Internet Index -14.97% -11.36% 3.57% N/A N/A N/A 30.25%
MSCI ACWI ex USA Index -2.99% 5.90% 23.92% N/A N/A N/A 10.91%
MSCI ACWI ex USA Information Technology Index -1.00% 9.64% 36.71% N/A N/A N/A 29.65%

*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.

**Performance information for the Dow Jones International Internet Index 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.

MSCI ACWI ex USA Index - The Index captures large and mid and cap representation across 22 of 23 Developed Markets countries, excluding the United States, and 24 Emerging Markets countries.

MSCI ACWI ex USA Information Technology Index - The index includes large and mid cap securities in the Information Technology sector across 22 of 23 Developed Markets (DM) countries (excluding the US) and 24 Emerging Markets (EM) countries.

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 All market capitalization numbers are in USD$ Millions.
5 Inception Date is 11/5/2018

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

A fund's return may not match the return of its underlying index. A fund invests in securities included in the index regardless of investment merit and the securities held by a 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 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.

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.

Depositary receipts may be less liquid than the underlying shares in their primary trading market.

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

There is no assurance that the index provider or its agents will compile or maintain the index accurately.

Information technology companies are subject to certain risks, including rapidly changing technologies, short product life cycles, fierce competition, aggressive pricing and reduced profit margins, loss of patent, copyright and trademark protections, cyclical market patterns, evolving industry standards and frequent new product introductions. Certain companies may be smaller and less experienced companies, with limited product lines, markets or financial resources. Information technology company stocks, especially those which are Internet related, have experienced extreme price and volume fluctuations that are often unrelated to their operating performance. Many Internet companies have incurred large losses since their inception and may continue to incur large losses in the hope of capturing market share and generating future revenues. Accordingly, many such companies expect to incur significant operating losses for the foreseeable future, and may never be profitable.

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.

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

Certain fund investments may be subject to restrictions on their resale and a fund may be unable to sell a restricted security on short notice or only sell them at a price below current value.

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.

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.

Dow Jones International Internet Index (“Index”) is a product of S&P Dow Jones Indices LLC or its affiliates (“SPDJI”) and has been licensed for use by First Trust. Standard & Poor’s® and S&P® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by First Trust. The Fund is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, or their respective affiliates and none of such parties make any representation regarding the advisability of investing in such product nor do they have any liability for any errors, omissions, or interruptions of the Index.

Not FDIC Insured • Not Bank Guaranteed • May Lose Value