First Trust International Developed Capital Strength® ETF (FICS)
Investment Objective/Strategy - The First Trust International Developed Capital Strength® ETF seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of an index called The International Developed Capital Strength™ Index. The Fund seeks to achieve its investment objective by investing, under normal market conditions, at least 90% of its net assets (including investment borrowings) in the common stocks and real estate investment trusts ("REITs") that comprise The International Developed Capital Strength™ Index.
There can be no assurance that the Fund's investment objectives will be achieved.
Index Description According to the Index Provider
  • Securities from the Nasdaq Developed ex-US Index with a minimum three-month average daily trading volume of $5 million are selected, excluding multiple share classes of the same issuer.
  • The Index then ranks the remaining securities by float-adjusted market capitalization and excludes all securities not in the top 500.
  • To be eligible for inclusion in the index, companies must:
    • have at least $500 million in cash or short-term investments.
    • have a long-term debt to market cap ratio less than 30%.
    • have a return on equity greater than 15%.
    • not currently be in bankruptcy proceedings.
    • not have entered into a definitive agreement/arrangement that would likely result in the security no longer being eligible.
  • Eligible securities are ranked by a combined short-term (three month) and long-term (12 month) realized volatility.
  • The 50 eligible securities with the lowest combined volatility score are selected for inclusion in the index.
  • A maximum weight of 30% in any one country or industry based on the Industry Classification Benchmark is allowed. If a country or industry has a weight greater than 30%, the highest ranking security by volatility will be removed and replaced with the next eligible security from a different country or industry. This process is repeated until no country or industry has a weight greater than 30%.
  • The index stocks are equally weighted initially and on each rebalancing effective date. The index is reconstituted and rebalanced semi-annually.
Fund Overview
TickerFICS
Fund TypeInternational Equity
Investment AdvisorFirst Trust Advisors L.P.
Investor Servicing AgentBank of New York Mellon Corp
CUSIP33738R662
ISINUS33738R6624
Intraday NAVFICSIV
Fiscal Year-End09/30
ExchangeNasdaq
Inception12/15/2020
Inception Price$30.09
Inception NAV$30.09
Rebalance FrequencySemi-Annual
Expense Ratio*0.70%
* As of 2/1/2024
Current Fund Data (as of 4/16/2024)
Closing NAV1$33.08
Closing Market Price2$33.15
Bid/Ask Midpoint$33.15
Bid/Ask Premium0.21%
30-Day Median Bid/Ask Spread (as of 4/15/2024)30.09%
Total Net Assets$99,245,623
Outstanding Shares3,000,002
Daily Volume22,633
Average 30-Day Daily Volume24,840
Closing Market Price 52-Week High/Low$35.35 / $28.91
Closing NAV 52-Week High/Low$35.24 / $28.92
Number of Holdings (excluding cash)51
Top Holdings (as of 4/16/2024)*
Holding Percent
Schneider Electric SE 2.63%
Safran S.A. 2.52%
Shin-Etsu Chemical Co., Ltd. 2.52%
ABB Ltd 2.43%
Assa Abloy AB (Class B) 2.39%
Industria de Diseno Textil, S.A. (Inditex) 2.34%
Airbus SE 2.33%
Investor AB (Class B) 2.32%
Japan Exchange Group, Inc. 2.28%
Sandvik AB 2.28%

* Excluding cash.  Holdings are subject to change.

NAV History (Since Inception)
Past performance is not indicative of future results.
Overall Morningstar RatingTM (as of 3/31/2024)4

Among 383 funds in the Foreign Large Growth category. This fund was rated 5 stars/383 funds (3 years) based on risk adjusted returns.
Distribution Information
Dividend per Share Amt (as of 4/17/2024)5$0.0545
30-Day SEC Yield (as of 3/28/2024)62.83%
12-Month Distribution Rate (as of 3/28/2024)70.98%
Index Yield (as of 3/28/2024)82.34%
Fund Characteristics (as of 3/28/2024)9
Maximum Market Cap.$278,670
Median Market Cap.$45,222
Minimum Market Cap.$7,690
Price/Earnings20.02
Price/Book3.94
Price/Cash Flow14.82
Price/Sales2.21
Top Country Exposure (as of 4/16/2024)
Country Percent
United Kingdom 16.80%
France 15.53%
Japan 13.91%
Switzerland 11.20%
Germany 8.23%
Canada 8.20%
Australia 7.11%
Sweden 7.02%
Spain 4.21%
Denmark 3.62%
Bid/Ask Premium/Discount (as of 4/16/2024)
  2023 Q1 2024 Q2 2024 Q3 2024
Days Traded at Premium 221 46 12 ---
Days Traded at Discount 29 15 0 ---
Top Sector Exposure (as of 4/16/2024)
Industrials 30.40%
Financials 16.90%
Consumer Discretionary 14.13%
Health Care 10.81%
Technology 9.94%
Consumer Staples 8.07%
Basic Materials 6.34%
Energy 3.41%
Hypothetical Growth of $10,000 Since Inception (as of 4/15/2024) *
Tracking Index: The International Developed Capital Strength™ Index

Month End Performance (as of 3/28/2024)
  3 Month YTD 1 Year 3 Year 5 Year 10 Year Since
Fund
Inception10
Fund Performance *
Net Asset Value (NAV) 3.36% 3.36% 12.12% 5.07% N/A N/A 6.00%
After Tax Held 3.29% 3.29% 11.64% 4.46% N/A N/A 5.41%
After Tax Sold 1.99% 1.99% 7.16% 3.62% N/A N/A 4.36%
Market Price 3.81% 3.81% 12.40% 5.07% N/A N/A 6.12%
Index Performance **
The International Developed Capital Strength™ Index 3.52% 3.52% 13.43% 5.79% N/A N/A 6.91%
MSCI World ex USA Index 5.49% 5.49% 15.18% 4.90% N/A N/A 6.34%
Quarter End Performance (as of 3/28/2024)
  3 Month YTD 1 Year 3 Year 5 Year 10 Year Since
Fund
Inception10
Fund Performance *
Net Asset Value (NAV) 3.36% 3.36% 12.12% 5.07% N/A N/A 6.00%
After Tax Held 3.29% 3.29% 11.64% 4.46% N/A N/A 5.41%
After Tax Sold 1.99% 1.99% 7.16% 3.62% N/A N/A 4.36%
Market Price 3.81% 3.81% 12.40% 5.07% N/A N/A 6.12%
Index Performance **
The International Developed Capital Strength™ Index 3.52% 3.52% 13.43% 5.79% N/A N/A 6.91%
MSCI World ex USA Index 5.49% 5.49% 15.18% 4.90% N/A N/A 6.34%
3-Year Statistics (as of 3/28/2024)
  Standard Deviation Alpha Beta Sharpe Ratio Correlation
FICS 17.23% 0.39 0.95 0.22 0.93
MSCI World ex USA Index 16.88% --- 1.00 0.22 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.

**Performance information for each listed 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 World ex USA Index - The Index includes developed markets and is designed to provide a broad measure of stock performance throughout the world, with the exception of U.S.-based companies.

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
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 Morningstar Rating does not include any adjustment for sales loads. 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.
5 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.
6 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.
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 International Developed Capital Strength(TM) Index.
9 All market capitalization numbers are in USD$ Millions.
10 Inception Date is 12/15/2020

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

You could lose money by investing in a fund. An investment in a fund is not a deposit of a bank and is not insured or guaranteed. There can be no assurance that a fund's objective(s) will be achieved. Investors buying or selling shares on the secondary market may incur customary brokerage commissions. Please refer to each fund's prospectus and Statement of Additional Information for additional details on a fund's risks. The order of the below risk factors does not indicate the significance of any particular risk factor.

Some Asian economies are highly dependent on trade with other countries and there is a high concentration of market capitalization and trading volume in a small number of Asian issuers as well as a high concentration of investors and financial intermediaries. Certain Asian countries experience expropriation and nationalization of assets, confiscatory taxation, currency manipulation, political instability, armed conflict and social instability as a result of religious, ethnic, socio-economic and/or political unrest. In particular, escalated tensions involving North Korea could have severe adverse effect on Asian economies. Recent developments between the U.S. and China have heightened concerns of increased tariffs and restrictions on trade.

Unlike mutual funds, shares of the fund 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 premium or discount to a fund's net asset value and possibly face delisting and the bid/ask spread may widen.

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.

Current market conditions risk is the risk that a particular investment, or shares of the fund in general, may fall in value due to current market conditions. As a means to fight inflation, the Federal Reserve and certain foreign central banks have raised interest rates and expect to continue to do so, and the Federal Reserve has announced that it intends to reverse previously implemented quantitative easing. Recent and potential future bank failures could result in disruption to the broader banking industry or markets generally and reduce confidence in financial institutions and the economy as a whole, which may also heighten market volatility and reduce liquidity. Ongoing armed conflicts between Russia and Ukraine in Europe and among Israel, Hamas and other militant groups in the Middle East, have caused and could continue to cause significant market disruptions and volatility within the markets in Russia, Europe, the Middle East and the United States. The hostilities and sanctions resulting from those hostilities have and could continue to have a significant impact on certain fund investments as well as fund performance and liquidity. The COVID-19 global pandemic, or any future public health crisis, and the ensuing policies enacted by governments and central banks have caused and may continue to cause significant volatility and uncertainty in global financial markets, negatively impacting global growth prospects.

A fund is susceptible to operational risks through breaches in cyber security. Such events could cause a fund to incur regulatory penalties, reputational damage, additional compliance costs associated with corrective measures and/or financial loss.

Equity securities may decline significantly in price over short or extended periods of time, and such declines may occur in the equity market as a whole, or they may occur in only a particular country, company, industry or sector of the market.

Political or economic disruptions in European countries, even in countries in which a fund is not invested, may adversely affect security values and thus the fund's holdings. A significant number of countries in Europe are member states in the European Union, and the member states no longer control their own monetary policies. In these member states, the authority to direct monetary policies, including money supply and official interest rates for the Euro, is exercised by the European Central Bank. The implications of the United Kingdom's withdrawal from the European Union are difficult to gauge and cannot yet be fully known.

An index fund will be concentrated in an industry or a group of industries to the extent that the index is so concentrated. A fund with significant exposure to a single asset class, or the securities of issuers within the same country, state, region, industry, or sector may have its value more affected by an adverse economic, business or political development than a broadly diversified fund.

A fund may be a constituent of one or more indices or models 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. Losses or costs associated with any index provider errors generally will be borne by a fund and its shareholders.

Industrials and producer durables companies are subject to certain risks, including the general state of the economy, intense competition, consolidation, domestic and international politics, excess capacity and consumer demand and spending trends. They may also be significantly affected by overall capital spending levels, economic cycles, technical obsolescence, delays in modernization, labor relations, and government regulations.

Since securities that trade on non-U.S. exchanges are closed when a fund's primary listing is open, there are likely to be deviations between the current price of an underlying security and the last quoted price from the closed foreign market, resulting in premiums or discounts to a fund's NAV.

Because Japan's economy and equity market share a strong correlation with the U.S. markets, the Japanese economy may be affected by economic problems in the U.S. Japan also has a growing economic relationship with China and other Southeast Asian countries. Should political tension increase, it could adversely affect the economy and destabilize the region as a whole. Japan also remains heavily dependent on oil imports, and higher commodity prices could therefore have a negative impact on the economy. Japanese securities may also be subject to lack of liquidity, excessive taxation, government seizure of assets, different legal or accounting standards and less government supervision and regulation of exchanges than in the U.S. Furthermore, the natural disasters that have impacted Japan and the ongoing recovery efforts have had a negative effect on Japan's economy, and may continue to do so.

Large capitalization companies may grow at a slower rate than the overall market.

A portfolio comprised of low volatility stocks may not produce investment exposure that has lower variability to changes in such stocks' price levels. Low volatility stocks are likely to underperform the broader market during periods of rapidly rising stock prices.

Market risk is the risk that a particular security, or shares of a fund in general may fall in value. Securities are subject to market fluctuations caused by such factors as general economic conditions, political events, regulatory or market developments, changes in interest rates and perceived trends in securities prices. Shares of a fund could decline in value or underperform other investments as a result. In addition, local, regional or global events such as war, acts of terrorism, spread of infectious disease or other public health issues, recessions, natural disasters or other events could have significant negative impact on a fund.

A fund faces numerous market trading risks, including the potential lack of an active market for fund shares due to a limited number of market makers. Decisions by market makers or authorized participants to reduce their role or step away in times of market stress could inhibit the effectiveness of the arbitrage process in maintaining the relationship between the underlying values of a fund's portfolio securities and a fund's market price.

An index fund's return may not match the return of the index for a number of reasons including operating expenses, costs of buying and selling securities to reflect changes in the index, and the fact that a fund's portfolio holdings may not exactly replicate the index.

Securities of non-U.S. issuers are subject to additional risks, including currency fluctuations, political risks, withholding, lack of liquidity, 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. The fund also relies on third parties for a range of services, including custody, and any delay or failure related to those services may affect the fund's ability to meet its objective.

A fund that invests in securities included in or representative of an index will hold those securities regardless of investment merit and the fund generally will not take defensive positions in declining markets.

The market price of a fund's shares will generally fluctuate in accordance with changes in the fund's net asset value ("NAV") as well as the relative supply of and demand for shares on the exchange, and a fund's investment advisor cannot predict whether shares will trade below, at or above their NAV.

Real Estate Investment Trusts ("REITs") are subject to the risks of investing in real estate, including, but not limited to, changes in the real estate market, vacancy rates and competition, volatile interest rates and economic recession. Increases in interest rates typically lower the present value of a REIT's future earnings stream and may make financing property purchases and improvements more costly. The value of a fund will generally decline when investors in REIT stocks anticipate or experience rising interest rates.

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

First Trust Advisors L.P. (FTA) is the adviser to the First Trust fund(s). FTA is an affiliate of First Trust Portfolios L.P., the distributor of the fund(s).

Nasdaq® and The International Developed Capital Strength™ Index are registered trademarks and service marks of Nasdaq, Inc. (together with its affiliates hereinafter referred to as the “Corporations”) and are licensed for use by First Trust. The Fund has not been passed on by the Corporations as to its legality or suitability. The Fund is not issued, endorsed, sold or promoted by the Corporations. THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE FUND.

©2024 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.

CUSIP identifiers have been provided by CUSIP Global Services, managed on behalf of the American Bankers Association by FactSet Research Systems Inc. and are not for use or dissemination in a manner that would serve as a substitute for any CUSIP service. The CUSIP Database, ©2024 CUSIP Global Services. "CUSIP" is a registered trademark of the American Bankers Association.

Not FDIC Insured • Not Bank Guaranteed • May Lose Value