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
Fund TypeEnergy
Investment AdvisorFirst Trust Advisors L.P.
Investor Servicing AgentBrown Brothers Harriman
Fiscal Year-End03/31
Inception Price$19.84
Inception NAV$19.84
Rebalance FrequencyQuarterly
Expense Ratio0.60%
Current Fund Data (as of 5/24/2022)
Closing NAV1$27.95
Closing Market Price2$27.95
Bid/Ask Midpoint$27.97
Bid/Ask Premium0.07%
30-Day Median Bid/Ask Spread30.08%
Total Net Assets$1,220,006,184
Outstanding Shares43,650,002
Daily Volume297,371
Average 30-Day Daily Volume408,176
Closing Market Price 52-Week High/Low$28.12 / $14.96
Closing NAV 52-Week High/Low$28.14 / $14.93
Number of Holdings (excluding cash)50
Top Holdings (as of 5/24/2022)*
Holding Percent
Chevron Corporation 7.24%
Marathon Oil Corporation 6.74%
Devon Energy Corporation 6.47%
The Williams Companies, Inc. 6.25%
ConocoPhillips 6.22%
Occidental Petroleum Corporation 4.93%
Chesapeake Energy Corporation 4.20%
Marathon Petroleum Corporation 4.14%
APA Corporation 4.06%
EOG Resources, Inc. 3.73%

* Excluding cash.  Holdings are subject to change.

NAV History (Since Inception)
Past performance is not indicative of future results.
Overall Morningstar RatingTM (as of 4/30/2022)4

Among 69 funds in the Equity Energy category. This fund was rated 4 stars/69 funds (3 years), 4 stars/67 funds (5 years) based on risk adjusted returns.
Distribution Information
Dividend per Share Amt (as of 5/25/2022)5$0.1237
30-Day SEC Yield (as of 4/29/2022)61.83%
12-Month Distribution Rate (as of 4/29/2022)71.22%
Index Yield (as of 4/29/2022)82.35%
Fund Characteristics (as of 4/29/2022)10
Maximum Market Cap.$359,158
Median Market Cap.$12,111
Minimum Market Cap.$1,207
Price/Cash Flow6.24
Bid/Ask Premium/Discount (as of 5/24/2022)
  2021 Q1 2022 Q2 2022 Q3 2022
Days Traded at Premium 165 42 29 ---
Days Traded at Discount 87 20 8 ---
Top Industry Exposure (as of 5/24/2022)
Oil: Crude Producers 62.68%
Pipelines 18.33%
Integrated Oil and Gas 10.53%
Oil Refining and Marketing 5.43%
Oil Equipment and Services 2.53%
Hypothetical Growth of $10,000 Since Inception (as of 5/24/2022) *
Tracking Index: Nasdaq US Smart Oil & Gas Index™

Month End Performance (as of 4/29/2022)
  3 Month YTD 1 Year 3 Year 5 Year 10 Year Since
Fund Performance *
Net Asset Value (NAV) 16.78% 32.73% 67.80% 13.59% 7.75% N/A 6.57%
After Tax Held 16.56% 32.48% 66.80% 12.75% 6.92% N/A 5.78%
After Tax Sold 9.94% 19.38% 40.03% 10.15% 5.62% N/A 4.71%
Market Price 16.73% 32.66% 67.58% 13.55% 7.74% N/A 6.57%
Index Performance **
Nasdaq US Smart Oil & Gas Index™ 17.02% 33.09% 69.10% 14.35% 8.47% N/A 7.27%
Nasdaq US Benchmark Energy Index 16.03% 33.94% 56.65% 10.43% 6.74% N/A 6.46%
NASDAQ US Benchmark Index -8.56% -13.98% -3.26% 13.19% 13.10% N/A 14.07%
Quarter End Performance (as of 3/31/2022)
  3 Month YTD 1 Year 3 Year 5 Year 10 Year Since
Fund Performance *
Net Asset Value (NAV) 37.08% 37.08% 73.19% 13.92% 7.10% N/A 7.30%
After Tax Held 36.82% 36.82% 72.15% 13.08% 6.28% N/A 6.49%
After Tax Sold 21.95% 21.95% 43.20% 10.40% 5.09% N/A 5.28%
Market Price 37.01% 37.01% 73.07% 13.92% 7.10% N/A 7.30%
Index Performance **
Nasdaq US Smart Oil & Gas Index™ 37.43% 37.43% 74.64% 14.70% 7.83% N/A 8.01%
Nasdaq US Benchmark Energy Index 37.22% 37.22% 59.92% 11.26% 6.54% N/A 7.03%
NASDAQ US Benchmark Index -5.32% -5.32% 12.05% 18.43% 15.53% N/A 16.29%
3-Year Statistics (as of 4/29/2022)
  Standard Deviation Alpha Beta Sharpe Ratio Correlation
FTXN 43.43% 1.98 1.43 0.49 0.64
Nasdaq US Benchmark Energy Index 41.98% -1.74 1.46 0.43 0.67
NASDAQ US Benchmark Index 19.39% --- 1.00 0.70 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.

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.
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 Nasdaq US Smart Oil & Gas Index(TM).
9 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.
10 All market capitalization numbers are in USD$ Millions.
11 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. 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 has caused and may continue to cause significant volatility and declines 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.

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.

©2022 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.

Not FDIC Insured • Not Bank Guaranteed • May Lose Value