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First Trust Nasdaq Oil & Gas ETF (FTXN)
Investment Objective/Strategy - The First Trust Nasdaq Oil & Gas 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 an index called the Nasdaq US Smart Oil & Gas Index. The Fund seeks to replicate the holdings and weightings of the Nasdaq US Smart Oil & Gas Index so as to generate performance results 95% correlated to that of the Nasdaq US Smart Oil & Gas Index.
There can be no assurance that the Fund's investment objectives will be achieved.
  • The Nasdaq US Smart Oil & Gas Index is a modified factor weighted index created and administered by Nasdaq, Inc. ("Nasdaq") designed to provide exposure to US companies within the oil and gas industry.
  • Nasdaq selects the 50 most liquid eligible oil and gas securities from the NASDAQ US Benchmark Index and then ranks those securities based on three factors:
    • Volatility – trailing 12-month price fluctuation.
    • Value – cash flow to price.
    • Growth – the 3-, 6-, 9-, and 12-month average price appreciation.
  • The securities are weighted based on their score on the three factors.
  • The index weighting methodology includes caps to prevent high concentrations among single stocks.
  • The index is reconstituted annually and rebalanced quarterly.
Fund Overview
TickerFTXN
Fund TypeEnergy
Investment AdvisorFirst Trust Advisors L.P.
Investor Servicing AgentBrown Brothers Harriman
CUSIP33738R845
ISINUS33738R8455
Intraday NAVFTXNIV
Fiscal Year-End03/31
ExchangeNasdaq
Inception9/20/2016
Inception Price$19.84
Inception NAV$19.84
Rebalance FrequencyQuarterly
Expense Ratio0.60%
Current Fund Data (as of 9/20/2021)
Closing NAV1$16.85
Closing Market Price2$16.79
Bid/Ask Midpoint$16.84
Bid/Ask Discount0.06%
30-Day Median Bid/Ask Spread30.44%
Total Net Assets$38,749,925
Outstanding Shares2,300,002
Daily Volume15,096
Average 30-Day Daily Volume68,456
Closing Market Price 52-Week High/Low$18.85 / $8.96
Closing NAV 52-Week High/Low$18.78 / $8.98
Number of Holdings (excluding cash)50
Top Holdings (as of 9/20/2021)*
Holding Percent
SM Energy Company 8.72%
Centennial Resource Development, Inc (Class A) 8.01%
The Williams Companies, Inc. 7.81%
Cheniere Energy, Inc. 7.53%
Kinder Morgan, Inc. 7.44%
Cabot Oil & Gas Corporation 4.70%
ONEOK, Inc. 3.89%
Targa Resources Corp. 3.88%
Antero Midstream Corp. 3.86%
Chevron Corporation 3.78%

* Excluding cash.  Holdings are subject to change.

NAV History (Since Inception)
Past performance is not indicative of future results.
Distribution Information
Dividend per Share Amt (as of 9/21/2021)4$0.0581
30-Day SEC Yield (as of 8/31/2021)52.55%
12-Month Distribution Rate (as of 8/31/2021)61.05%
Index Yield (as of 8/31/2021)73.23%
Fund Characteristics (as of 8/31/2021)9
Maximum Market Cap.$230,814
Median Market Cap.$6,389
Minimum Market Cap.$695
Price/Book1.39
Price/Cash Flow7.90
Price/Sales1.69
Bid/Ask Premium/Discount (as of 9/20/2021)
  2020 Q1 2021 Q2 2021 Q3 2021
Days Traded at Premium 147 40 53 25
Days Traded at Discount 106 21 10 31
Top Industry Exposure (as of 9/20/2021)
Oil: Crude Producers 46.28%
Pipelines 38.37%
Integrated Oil and Gas 5.92%
Oil Refining and Marketing 4.47%
Oil Equipment and Services 3.54%
Hypothetical Growth of $10,000 Since Inception (as of 9/20/2021) *
Tracking Index: Nasdaq US Smart Oil & Gas Index

Month End Performance (as of 8/31/2021)
  3 Month YTD 1 Year 3 Year 5 Year 10 Year Since
Fund
Inception10
Fund Performance *
Net Asset Value (NAV) -3.92% 41.06% 49.28% -11.43% N/A N/A -2.13%
After Tax Held -4.05% 40.82% 48.43% -12.17% N/A N/A -2.86%
After Tax Sold -2.31% 24.32% 29.05% -8.76% N/A N/A -1.91%
Market Price -3.92% 41.14% 49.38% -11.42% N/A N/A -2.12%
Index Performance **
Nasdaq US Smart Oil & Gas Index -3.77% 41.85% 50.55% -10.90% N/A N/A -1.52%
Nasdaq US Benchmark Energy Index -4.98% 30.17% 47.53% -8.18% N/A N/A -1.75%
NASDAQ US Benchmark Index 7.47% 20.82% 33.34% 18.09% N/A N/A 18.70%
Quarter End Performance (as of 6/30/2021)
  3 Month YTD 1 Year 3 Year 5 Year 10 Year Since
Fund
Inception10
Fund Performance *
Net Asset Value (NAV) 18.36% 58.27% 71.68% -7.67% N/A N/A 0.18%
After Tax Held 18.21% 58.00% 70.70% -8.44% N/A N/A -0.59%
After Tax Sold 10.87% 34.49% 42.24% -6.09% N/A N/A -0.22%
Market Price 18.35% 58.35% 71.62% -7.65% N/A N/A 0.19%
Index Performance **
Nasdaq US Smart Oil & Gas Index 18.64% 59.11% 73.08% -7.08% N/A N/A 0.83%
Nasdaq US Benchmark Energy Index 12.09% 44.92% 57.27% -5.35% N/A N/A 0.42%
NASDAQ US Benchmark Index 8.49% 15.40% 44.47% 18.98% N/A N/A 18.28%
3-Year Statistics (as of 8/31/2021)
  Standard Deviation Alpha Beta Sharpe Ratio Correlation
FTXN 43.47% -36.32 1.86 -0.09 0.83
Nasdaq US Benchmark Energy Index 41.65% -32.53 1.81 -0.03 0.84
NASDAQ US Benchmark Index 19.36% --- 1.00 0.89 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 the Nasdaq US Smart Oil & Gas 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.

Nasdaq US Benchmark Energy Index - The Index is a float adjusted market capitalization-weighted index which includes securities in the US Benchmark Index that are classified in the Oil & Gas Industry according to the Industry Classification Benchmark.

NASDAQ US Benchmark Index - The Index is a float adjusted market capitalization-weighted index designed to track the performance of securities assigned to the United States.

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 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 Nasdaq US Smart Oil & Gas Index.
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 All market capitalization numbers are in USD$ Millions.
10 Inception Date is 9/20/2016

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.

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.

A fund's investment in dividend-paying securities may cause a fund to underperform similar funds that do not consider an issuer's track record of paying dividends.

Stocks with growth characteristics tend to be more volatile than certain other stocks and their prices may fluctuate more dramatically than the overall stock 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.

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.

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.

General problems of the oil & gas industry include volatile fluctuations in price and supply of energy fuels, international politics, terrorist attacks, reduced demand as a result of increases in energy efficiency and energy conservation, the success of exploration projects, clean-up and litigation costs relating to oil spills and environmental damage, and tax and other regulatory policies of various governments. Oil production and refining companies are subject to extensive federal, state and local environmental laws and regulations regarding air emissions and the disposal of hazardous materials. Friction with certain oil producing countries, and between the governments of the United States and other major exporters of oil to the United States, or policy shifts by governmental entities and intergovernmental entities such as OPEC, could put oil exports at risk. In addition, falling oil and gas prices may negatively impact the profitability and business prospects of certain energy companies. Further, global concerns of civil unrest in foreign countries may also affect the flow of oil from such 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.

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.

Value stocks are subject to the risk that valuations never improve or that the returns on value stocks are less than returns on other styles of investing or the overall stock market.

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 Nasdaq US Smart Oil & Gas 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
 
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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