First Trust Global Engineering and Construction ETF (FLM)
Investment Objective/Strategy - First Trust Global Engineering and Construction ETF is an exchange-traded fund. The investment objective of the Fund is to seek investment results that correspond generally to the price and yield, before the Fund's fees and expenses, of the ISE Global Engineering and Construction Index.
There can be no assurance that the Fund's investment objectives will be achieved.
  • The index specifically targets companies that are engaged in large civil and capital projects such as infrastructure, utilities, transportation, telecommunications, commercial, residential, and commerce facilities and whose roles are within the engineering, designing, planning, consulting, project managing, and/or constructing of these projects.To be included in the index, a company must receive at least 70% of revenues from these types of services and projects based on the reportable segment/division from its most recent annual report.
  • The companies must meet market capitalization and weighting concentration requirements for inclusion in the index.
  • The index uses a linear-based capitalization-weighted methodology for the group of companies.The resulting linear weight distribution prevents a few large component stocks from dominating the index while allowing smaller companies to adequately influence index performance.
  • Index components are reviewed semi-annually for eligibility, and the weights are re-set according to that distribution.
Fund Overview
TickerFLM
Fund TypeForeign Equity
Investment AdvisorFirst Trust Advisors L.P.
Investor Servicing AgentBank of New York Mellon
CUSIP33736M103
ISINUS33736M1036
Intraday NAVFLMIV
Fiscal Year-End09/30
ExchangeNYSE Arca
Inception10/13/2008
Inception Price$30.00
Inception NAV$30.00
Rebalance FrequencySemi-Annual
Gross Expense Ratio*1.21%
Net Expense Ratio*0.70%
* As of 2/3/2020
Expenses are capped contractually at 0.70% per year, at least until January 31, 2021.
Current Fund Data (as of 4/3/2020)
Closing NAV1$33.54
Closing Market Price2$33.41
Bid/Ask Midpoint$33.55
Bid/Ask Premium0.03%
Total Net Assets$5,030,969
Outstanding Shares150,002
Daily Volume6,957
Average 30-Day Daily Volume3,073
Closing Market Price 52-Week High/Low$52.05 / $30.82
Closing NAV 52-Week High/Low$52.11 / $30.89
Number of Holdings (excluding cash)62
Fund Characteristics (as of 3/31/2020)8
Maximum Market Cap.$45,870
Median Market Cap.$2,082
Minimum Market Cap.$181
Price/Earnings8.31
Price/Book0.93
Price/Cash Flow5.70
Price/Sales0.28
Top Holdings (as of 4/3/2020)*
Holding Percent
Jacobs Engineering Group Inc. 3.80%
Kingspan Group Plc 3.19%
Taisei Corporation 3.03%
Quanta Services, Inc. 2.95%
Vinci S.A. 2.87%
Bouygues S.A. 2.84%
Obayashi Corporation 2.84%
Shimizu Corporation 2.78%
China Railway Group Ltd. (Class H) 2.61%
Kajima Corporation 2.57%

* Excluding cash.  Holdings are subject to change.

Top Country Exposure (as of 4/3/2020)
Country Percent
Japan 33.71%
United States 19.92%
France 8.11%
Sweden 5.38%
China 5.17%
Canada 4.85%
United Kingdom 3.68%
Ireland 3.20%
Australia 3.07%
The Netherlands 2.96%
NAV History (Since Inception)
Past performance is not indicative of future results.
Distribution Information
Dividend per Share Amt (as of 4/6/2020)3$0.6529
30-Day SEC Yield (as of 2/28/2020)43.06%
Unsubsidized 30-Day SEC Yield (as of 2/28/2020)52.51%
12-Month Distribution Rate (as of 2/28/2020)62.08%
Index Yield (as of 2/28/2020)73.31%
Bid/Ask Midpoint vs. NAV (as of 3/31/2020)
Number of Days Bid/Ask Midpoint Above NAV
Quarter Ended 0-49
Basis Points		 50-99
Basis Points		 100-199
Basis Points		 >=200
Basis Points
3/31/2020 27 2 1 0
12/31/2019 32 2 0 0
9/30/2019 15 0 0 0
6/30/2019 10 0 0 0
Number of Days Bid/Ask Midpoint Below NAV
Quarter Ended 0-49
Basis Points		 50-99
Basis Points		 100-199
Basis Points		 >=200
Basis Points
3/31/2020 24 7 1 0
12/31/2019 29 1 0 0
9/30/2019 41 7 1 0
6/30/2019 49 4 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 4/3/2020)
Industrials 96.19%
Information Technology 2.35%
Utilities 0.98%
Energy 0.48%
Month End Performance (as of 2/28/2020)
  3 Month YTD 1 Year 3 Year 5 Year 10 Year Since
Fund
Inception9
Fund Performance *
Net Asset Value (NAV) -8.22% -12.16% -10.04% -2.52% 0.84% 3.68% 5.24%
After Tax Held -8.35% -12.16% -10.72% -3.18% 0.16% 2.99% 4.59%
After Tax Sold -4.86% -7.20% -5.90% -2.14% 0.37% 2.59% 3.91%
Market Price -7.81% -11.52% -9.95% -2.35% 0.97% 3.69% 5.27%
Index Performance **
ISE Global Engineering and Construction Index -7.53% -11.55% -8.84% -1.65% 1.78% 4.80% 6.76%
MSCI World Industrials Index -9.31% -10.20% 0.02% 5.17% 5.45% 8.92% 9.52%
Russell 3000® Index -5.64% -8.29% 6.90% 9.28% 8.72% 12.48% 12.29%
Quarter End Performance (as of 12/31/2019)
  3 Month YTD 1 Year 3 Year 5 Year 10 Year Since
Fund
Inception9
Fund Performance *
Net Asset Value (NAV) 8.96% 12.65% 12.65% 2.88% 4.25% 4.65% 6.55%
After Tax Held 8.82% 11.79% 11.79% 2.18% 3.54% 3.95% 5.87%
After Tax Sold 5.30% 7.47% 7.47% 1.91% 2.97% 3.35% 4.97%
Market Price 8.63% 12.75% 12.75% 2.76% 4.20% 4.57% 6.51%
Index Performance **
ISE Global Engineering and Construction Index 9.13% 13.73% 13.73% 3.60% 5.01% 5.71% 8.04%
MSCI World Industrials Index 7.36% 27.77% 27.77% 10.99% 8.61% 10.17% 10.72%
Russell 3000® Index 9.10% 31.02% 31.02% 14.57% 11.24% 13.42% 13.35%
3-Year Statistics (as of 2/28/2020)
  Standard Deviation Alpha Beta Sharpe Ratio Correlation
FLM 15.67% -10.88 0.97 -0.20 0.83
MSCI World Industrials Index 15.07% -4.15 1.07 0.29 0.95
Russell 3000® Index 13.42% --- 1.00 0.60 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 ISE Global Engineering and Construction 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 Industrials Index - The Index is a free float-adjusted market capitalization-weighted index that is designed to measure the industrials sector performance of 23 developed markets around the world.

Russell 3000® Index - The Index is comprised of the 3000 largest and most liquid stocks based and traded in the U.S.
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 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.
4 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.
5 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.
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 Index yield represents the weighted average trailing 12-month dividend of the constituents of the ISE Global Engineering and Construction Index.
8 All market capitalization numbers are in USD$ Millions.
9 Inception Date is 10/13/2008

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 ISE Global Engineering and Construction Index.  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 security owned by the fund, fund shares or securities in general may fall in value. There can be no assurance that the 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. The impact of this COVID-19 pandemic may be short term or may last for an extended period of time, and in either case could result in a substantial economic downturn or recession.

The fund may invest in small capitalization and mid capitalization companies. Such companies may experience greater price volatility than larger, more established companies.

An investment in a fund containing securities of non-U.S. issuers is 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. The fund may invest in depositary receipts which may be less liquid than the underlying shares in their primary trading market.

The fund invests in the securities of companies in the industrials sector which includes companies in the engineering and construction business. General risks of these companies include the general state of the economy, intense competition, consolidation, domestic and international politics, excess capacity and consumer demand and spending trends. In addition, they may be significantly affected by overall capital spending levels, economic cycles, technical obsolescence, delays in modernization, labor relations, and government regulations.

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.

Large inflows and outflows may impact the fund's market exposure for limited periods of time.

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.

Nasdaq® and ISE Global Engineering and Construction™ 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.
Not FDIC Insured • Not Bank Guaranteed • May Lose Value