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First Trust Enhanced Short Maturity ETF (FTSM)
  • On November 10, 2014, First Trust Enhanced Short Maturity ETF (FTSM) effected a reverse split of its outstanding shares in which two outstanding FTSM shares were converted into one FTSM share. All share and per share data set forth below and elsewhere on this website (including for periods prior to the reverse share split) have been adjusted to reflect the reverse share split.

Investment Objective/Strategy - The First Trust Enhanced Short Maturity ETF is an actively managed exchange-traded fund. The fund's investment objective is to seek current income, consistent with preservation of capital and daily liquidity.
There can be no assurance that the Fund's investment objectives will be achieved.
Index Description According to the Index Provider
  • The First Trust Enhanced Short Maturity ETF uses an actively managed strategy that invests in short-duration securities, which are primarily U.S. dollar-denominated, investment-grade securities.
  • The fund will be invested across a broad range of asset classes to maintain diversification and at least 80% of the fund's assets will be investment-grade securities at the time of purchase.
  • The fund will utilize a short-duration strategy that may offer the potential for enhanced income, while focusing on preservation of capital and daily liquidity.
Fund Overview
TickerFTSM
Fund TypeShort Maturity
Investment AdvisorFirst Trust Advisors L.P.
Investor Servicing AgentBank of New York Mellon Corp
CUSIP33739Q408
ISINUS33739Q4082
Intraday NAVFTSMIV
Fiscal Year-End10/31
ExchangeNasdaq
Inception8/5/2014
Inception Price$60.00
Inception NAV$60.00
Gross Expense Ratio*0.45%
Net Expense Ratio*0.25%
* As of 3/1/2022
First Trust has contractually agreed to waive management fees of 0.20% of average daily net assets until March 1, 2023.
Current Fund Data (as of 9/29/2022)
Closing NAV1$59.43
Closing Market Price2$59.42
Bid/Ask Midpoint$59.44
Bid/Ask Premium0.01%
30-Day Median Bid/Ask Spread30.02%
Total Net Assets$6,350,115,258
Outstanding Shares106,849,724
Daily Volume1,576,830
Average 30-Day Daily Volume1,436,249
Closing Market Price 52-Week High/Low$59.96 / $59.36
Closing NAV 52-Week High/Low$59.95 / $59.36
Number of Holdings (excluding cash)584
Top Holdings (as of 9/29/2022)*,10
Holding Percent
U.S. Treasury Note, 0.125%, due 11/30/2022 1.46%
U.S. Treasury Note, 2.50%, due 08/15/2023 1.32%
U.S. Treasury Note, 1.625%, due 11/15/2022 1.10%
U.S. Treasury Note, 2.50%, due 03/31/2023 0.94%
U.S. Treasury Note, 1.75%, due 05/15/2023 0.93%
U.S. Treasury Note, 1.875%, due 10/31/2022 0.86%
U.S. Treasury Note, 2%, due 02/15/2023 0.71%
BAXTER INTERNATIONAL 0%, due 10/03/2022 0.55%
ENTERPRISE PRODUCTS OPER 3.35%, due 03/15/2023 0.53%
ZOETIS INC 3.25%, due 02/01/2023 0.53%

* Excluding cash.  Holdings are subject to change.

Fund Composition (as of 8/31/2022)10
Percent
Commercial Paper 35.80%
Fixed-Rate Corporate Bonds 31.27%
Floating-Rate Corporate Bonds 11.78%
Government Bonds and Notes 9.09%
Asset Backed Securities 4.98%
Yankee CD 2.98%
Commercial Mortgage Backed Securities 2.65%
Mortgage Backed Securities 0.86%
Municipal 0.31%
Agency Collateralized Mortgage Obligation 0.28%
NAV History (Since Inception)
Past performance is not indicative of future results.
Distribution Information
Dividend per Share Amt (as of 9/30/2022)4$0.1100
30-Day SEC Yield (as of 8/31/2022)52.67%
Unsubsidized 30-Day SEC Yield (as of 8/31/2022)62.46%
12-Month Distribution Rate (as of 8/31/2022)70.72%
Distribution Rate (as of 8/31/2022)82.00%
Fund Characteristics (as of 8/31/2022)
Weighted Average Effective Duration90.36 Years
Weighted Average Maturity0.54 Years
Calculated based on market value of invested assets plus settled cash position.
Credit Quality (as of 8/31/2022)10
Credit Quality Percent
Government & Agency 11.62%
Cash 0.52%
AAA 6.12%
AA+ 0.28%
AA 0.17%
AA- 5.76%
A+ 3.68%
A 6.36%
A- 8.18%
BBB+ 12.01%
BBB 5.36%
BBB- 2.27%
A-1 (short-term) 3.86%
A-2 (short-term) 29.23%
A-3 (short term) 4.58%
The ratings are by one or more nationally recognized statistical rating organizations (NRSROs), including S&P Global Ratings, a subsidiary of S&P Global Inc., Moody's Investors Service, Inc., Fitch Ratings, or a comparably rated NRSRO. For situations in which a security is rated by more than one NRSRO and the ratings are not equivalent, the highest ratings are used. Ratings are measured highest to lowest on a scale that generally ranges from AAA to D for long-term ratings and A-1 to C for short-term ratings. Investment grade is defined as those issuers that have a long-term credit rating of BBB- or higher or a short-term credit rating of A-3 or higher. "NR" indicates no rating. The credit ratings shown relate to the creditworthiness of the issuers of the underlying securities in the Fund, and not to the Fund or its shares. U.S. Treasury, U.S. Agency and U.S. Agency mortgage-backed securities appear under "Government". Credit ratings are subject to change.
Maturity Exposure (as of 8/31/2022)10
Years Percent
1-30 days 29.61%
31-90 days 15.78%
3-6 months 11.43%
6-12 months 24.87%
1-2 years 14.80%
2-3 years 2.95%
>3 years 0.56%
Bid/Ask Premium/Discount (as of 9/29/2022)
  2021 Q1 2022 Q2 2022 Q3 2022
Days Traded at Premium 27 16 38 34
Days Traded at Discount 225 46 24 29
Top Sector Exposure (as of 8/31/2022)10
Financial 22.43%
Consumer, Non-cyclical 15.51%
Utilities 9.68%
Government 9.41%
Energy 8.28%
Industrial 7.66%
Consumer, Cyclical 6.98%
ABS 4.98%
Basic Materials 4.04%
Technology 3.89%
Hypothetical Growth of $10,000 Since Inception (as of 9/29/2022) *


Month End Performance (as of 8/31/2022)
  3 Month YTD 1 Year 3 Year 5 Year 10 Year Since
Fund
Inception11
Fund Performance *
Net Asset Value (NAV) 0.22% -0.07% -0.17% 0.61% 1.26% N/A 1.10%
After Tax Held 0.05% -0.32% -0.46% 0.21% 0.66% N/A 0.59%
After Tax Sold 0.13% -0.04% -0.10% 0.30% 0.71% N/A 0.62%
Market Price 0.22% -0.06% -0.17% 0.60% 1.25% N/A 1.10%
Index Performance **
ICE BofA 0-1 Year US Treasury Index 0.00% -0.12% -0.16% 0.58% 1.16% N/A 0.88%
Quarter End Performance (as of 6/30/2022)
  3 Month YTD 1 Year 3 Year 5 Year 10 Year Since
Fund
Inception11
Fund Performance *
Net Asset Value (NAV) -0.07% -0.45% -0.51% 0.63% 1.23% N/A 1.07%
After Tax Held -0.16% -0.57% -0.70% 0.22% 0.64% N/A 0.57%
After Tax Sold -0.04% -0.26% -0.30% 0.31% 0.69% N/A 0.60%
Market Price -0.06% -0.41% -0.48% 0.63% 1.23% N/A 1.08%
Index Performance **
ICE BofA 0-1 Year US Treasury Index -0.11% -0.33% -0.34% 0.66% 1.17% N/A 0.88%
3-Year Statistics (as of 8/31/2022)
  Standard Deviation Alpha Beta Sharpe Ratio Correlation
FTSM 1.32% 0.07 -2.59 0.03 -0.46
ICE BofA 0-1 Year US Treasury Index 0.46% --- 1.00 0.04 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. 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 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.

ICE BofA 0-1 Year US Treasury Index - The Index is comprised of U.S. dollar denominated sovereign debt securities publicly issued by the U.S. Treasury in its domestic market with at least one month and less than one year remaining term to final maturity.

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 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 Distribution Rate is calculated by dividing the fund's most recent ordinary distribution paid or declared, on an annualized basis, by the NAV price. Distribution rates may vary.
9 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.
10 Calculated based on market value of invested assets plus settled cash position.
11 Inception Date is 8/5/2014

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 SAI 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.

Asset-backed securities are a type of debt security and are generally not backed by the full faith and credit of the U.S. government and are subject to the risk of default on the underlying asset or loan, particularly during periods of economic downturn.

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.

Investments in bank loans are subject to the same risks as other debt securities, but the risks may be heightened because of limited public information available and because loan borrowers may be leveraged and tend to be more adversely affected by changes in market or economic conditions. The secondary market for bank loans may be subject to irregular trading activity, wide bid/ask spreads and extended trade settlement periods.

During periods of falling interest rates if an issuer calls higher-yielding debt instruments, a fund may be forced to invest the proceeds at lower interest rates, likely resulting in a decline in the fund's income.

A fund that effects all or a portion of its creations and redemptions for cash rather than in-kind may be less tax-efficient.

An issuer or other obligated party of a debt security may be unable or unwilling to make dividend, interest and/or principal payments when due and the value of a security may decline as a result.

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.

Investments in debt securities subject the holder to the credit risk of the issuer and the value of debt securities will generally change inversely with changes in interest rates. In addition, debt securities generally do not trade on a securities exchange making them less liquid and more difficult to value.

Extension risk is the risk that, when interest rates rise, certain obligations will be paid off by the issuer (or other obligated party) more slowly than anticipated, causing the value of these debt securities to fall. Rising interest rates tend to extend the duration of debt securities, making their market value more sensitive to changes in interest rates.

Floating rate securities are structured so that the security's coupon rate fluctuates based upon the level of a reference rate. As a result, the coupon on floating rate securities will generally decline in a falling interest rate environment, causing a fund to experience a reduction in the income it receives from the security. A floating rate security's coupon rate resets periodically according to the terms of the security. Consequently, in a rising interest rate environment, floating rate securities with coupon rates that reset infrequently may lag behind the changes in market interest rates.

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's income may decline when interest rates fall or if there are defaults in its portfolio.

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.

As inflation increases, the present value of a fund's assets and distributions may decline.

Interest rate risk is the risk that the value of the debt securities in a fund's portfolio will decline because of rising interest rates. Interest rate risk is generally lower for shorter term debt securities and higher for longer-term debt securities.

If the fund invests in securities of another investment company, the fund may bear its ratable share of that investment company's expenses as well as the fund's advisory and administrative fees, which may result in duplicative expenses. The fund may also incur brokerage costs if purchasing or selling shares of exchange-traded investment companies.

To the extent a fund invests in floating or variable rate obligations that use the London Interbank Offered Rate ("LIBOR") as a reference interest rate, it is subject to LIBOR Risk. The United Kingdom's Financial Conduct Authority, which regulates LIBOR, has ceased making LIBOR available as a reference rate over a phase-out period that began December 31, 2021. There is no assurance that any alternative reference rate, including the Secured Overnight Financing Rate ("SOFR") will be similar to or produce the same value or economic equivalence as LIBOR or that instruments using an alternative rate will have the same volume or liquidity. The unavailability or replacement of LIBOR may affect the value, liquidity or return on certain fund investments and may result in costs incurred in connection with closing out positions and entering into new trades. Any potential effects of the transition away from LIBOR on a fund or on certain instruments in which a fund invests can be difficult to ascertain, and they may vary depending on a variety of factors, and they could result in losses to a fund.

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.

The portfolio managers of an actively managed portfolio will apply investment techniques and risk analyses that may not have the desired result.

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, or other events could have significant negative impact on a fund. 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 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. 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.

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.

Mortgage-related securities are more susceptible to adverse economic, political or regulatory events that affect the value of real estate.

The values of municipal securities may be adversely affected by local political and economic conditions and developments. Income from municipal securities could be declared taxable because of, among other things, unfavorable changes in tax laws, adverse interpretations by the Internal Revenue Service or state tax authorities, or noncompliant conduct of an issuer.

There are no government or agency guarantees of payments in securities offered by non- government issuers, therefore they are subject to the credit risk of the issuer. Non-agency securities often trade "over-the-counter" and there may be a limited market for them making them difficult to value.

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.

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.

Prepayment risk is the risk that the issuer of a debt security will repay principal prior to the scheduled maturity date. Debt securities allowing prepayment may offer less potential for gains during a period of declining interest rates, as a fund may be required to reinvest the proceeds of any prepayment at lower interest rates.

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.

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.

A fund may hold securities or other assets that may be valued on the basis of factors other than market quotations. This may occur because the asset or security does not trade on a centralized exchange, or in times of market turmoil or reduced liquidity. Portfolio holdings that are valued using techniques other than market quotations, including "fair valued" assets or securities, may be subject to greater fluctuation in their valuations from one day to the next than if market quotations were used. There is no assurance that a fund could sell or close out a portfolio position for the value established for it at any time.

The purchase of securities on a when-issued, TBA ("to be announced"), delayed delivery or forward commitment basis may give rise to investment leverage and increase a fund's volatility and exposure to default.

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.

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, ©2022 CUSIP Global Services. "CUSIP" is a registered trademark of the American Bankers Association.

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)
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