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First Trust Nasdaq Bank ETF (FTXO)
Investment Objective/Strategy - The First Trust Nasdaq Bank 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 Banks Index. The Fund seeks to replicate the holdings and weightings of the Nasdaq US Smart Banks Index so as to generate performance results 95% correlated to that of the Nasdaq US Smart Banks Index.
There can be no assurance that the Fund's investment objectives will be achieved.
  • The Nasdaq US Smart Banks Index is a modified factor weighted index created and administered by Nasdaq, Inc. ("Nasdaq") designed to provide exposure to US companies within the banking industry.
  • Nasdaq selects the 30 most liquid eligible bank 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 TypeBanks
Investment AdvisorFirst Trust Advisors L.P.
Investor Servicing AgentBrown Brothers Harriman
Fiscal Year-End03/31
Inception Price$20.01
Inception NAV$20.01
Rebalance FrequencyQuarterly
Expense Ratio0.60%
Current Fund Data (as of 9/20/2019)
Closing NAV1$25.83
Closing Market Price2$25.84
Bid/Ask Midpoint$25.83
Bid/Ask Discount0.01%
Total Net Assets$145,960,884
Outstanding Shares5,650,002
Daily Volume34,507
Average 30-Day Daily Volume44,262
Closing Market Price 52-Week High/Low$28.95 / $21.01
Closing NAV 52-Week High/Low$28.96 / $21.03
Number of Holdings30
Fund Characteristics (as of 8/30/2019)7
Maximum Market Cap.$351,224
Median Market Cap.$9,619
Minimum Market Cap.$2,710
Price/Cash Flow8.12
Top Holdings (as of 9/20/2019)
Holding Percent
JPMorgan Chase & Co. 8.23%
Citigroup Inc. 8.18%
The PNC Financial Services Group, Inc. 8.11%
U.S. Bancorp 8.10%
Fifth Third Bancorp 7.46%
First Horizon National Corporation 4.46%
Huntington Bancshares Incorporated 4.17%
BB&T Corporation 4.11%
Bank of America Corporation 4.08%
KeyCorp 4.08%

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 9/23/2019)3$0.1906
30-Day SEC Yield (as of 8/30/2019)42.34%
12-Month Distribution Rate (as of 8/30/2019)53.70%
Index Yield (as of 8/30/2019)63.13%
Bid/Ask Midpoint vs. NAV (as of 6/30/2019)
Number of Days Bid/Ask Midpoint Above NAV
Quarter Ended 0-49
Basis Points
Basis Points
Basis Points
Basis Points
6/30/2019 38 0 0 0
3/31/2019 46 0 0 0
12/31/2018 24 6 0 0
9/30/2018 41 0 0 0
Number of Days Bid/Ask Midpoint Below NAV
Quarter Ended 0-49
Basis Points
Basis Points
Basis Points
Basis Points
6/30/2019 25 0 0 0
3/31/2019 15 0 0 0
12/31/2018 32 0 1 0
9/30/2018 22 0 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.

Month End Performance (as of 8/30/2019)
  3 Month YTD 1 Year 3 Year 5 Year 10 Year Since
Fund Performance *
Net Asset Value (NAV) 1.64% 9.55% -15.53% N/A N/A N/A 8.63%
After Tax Held 1.33% 9.04% -16.80% N/A N/A N/A 7.77%
After Tax Sold 0.98% 5.67% -9.21% N/A N/A N/A 6.32%
Market Price 1.59% 9.60% -15.56% N/A N/A N/A 8.63%
Index Performance **
Nasdaq US Smart Banks Index 1.83% 10.07% -15.08% N/A N/A N/A 9.33%
Nasdaq US Benchmark Banks Index 3.33% 12.09% -10.57% N/A N/A N/A 13.20%
NASDAQ US Benchmark Index 6.53% 18.27% 1.34% N/A N/A N/A 13.08%
Quarter End Performance (as of 6/28/2019)
  3 Month YTD 1 Year 3 Year 5 Year 10 Year Since
Fund Performance *
Net Asset Value (NAV) 4.67% 15.14% -7.58% N/A N/A N/A 11.15%
After Tax Held 4.35% 14.60% -8.97% N/A N/A N/A 10.22%
After Tax Sold 2.77% 8.96% -4.55% N/A N/A N/A 8.25%
Market Price 4.63% 15.14% -7.65% N/A N/A N/A 11.13%
Index Performance **
Nasdaq US Smart Banks Index 4.89% 15.60% -7.00% N/A N/A N/A 11.89%
Nasdaq US Benchmark Banks Index 6.83% 16.53% -0.48% N/A N/A N/A 15.67%
NASDAQ US Benchmark Index 4.07% 18.79% 8.99% N/A N/A N/A 14.12%

*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.

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 Banks 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 Banks Index - The Index is a float adjusted market capitalization-weighted index which includes securities in the US Benchmark Index that are classified in the Banks Supersector 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 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 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.
6 Index yield represents the weighted average trailing 12-month dividend of the constituents of the Nasdaq US Smart Banks Index.
7 All market capitalization numbers are in USD$ Millions.
8 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.

ETF Characteristics

The fund lists and principally trades its shares on The Nasdaq Stock Market LLC.

The fund's return may not match the return of the Nasdaq US Smart Banks 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 stock owned by the fund, fund shares or stocks in general may fall in value. There can be no assurance that the fund's investment objective will be achieved.

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

The fund is concentrated in securities of the banking industry. Banks are especially subject to the adverse effects of economic recession, currency exchange rates, government regulation, decreases in the availability of capital, volatile interest rates, portfolio concentrations in geographic markets and in commercial and residential real estate loans, and competition from new entrants in their fields of business. In addition, banks are subject to extensive regulation at both the federal and state level, which may affect permissible activities, profitability and the amount of capital that they must maintain.

The fund currently has fewer assets than larger funds, and like other relatively new funds, large inflows and outflows may impact a fund's market exposure for limited periods of time.

The fund is classified as "non-diversified" and may invest a relatively high percentage of its assets in a limited number of issuers. As a result, the 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.

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 the Nasdaq US Smart Banks Index are registered trademarks and service marks of Nasdaq, Inc. (which with its affiliates is referred to as the "Corporations") and are licensed for use by First Trust Advisors L.P. The fund has not been passed on by the Corporations as to their 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 advisors 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.
First Trust Advisors L.P.
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