First Trust Consumer Discretionary AlphaDEX® Fund (FXD)
Investment Objective/Strategy - The First Trust Consumer Discretionary AlphaDEX® Fund 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 fees and expenses, of an equity index called the StrataQuant® Consumer Discretionary Index.
There can be no assurance that the Fund's investment objectives will be achieved.
  • The StrataQuant® Consumer Discretionary Index is an "enhanced" index developed, maintained and sponsored by ICE Data Indices, LLC or its affiliates ("IDI") which employs the AlphaDEX® stock selection methodology to select stocks from the Russell 1000® Index.
  • IDI constructs the StrataQuant® Consumer Discretionary Index by ranking the stocks which are members of the Russell 1000® Index on growth factors including three, six and 12-month price appreciation, sales to price and one year sales growth, and, separately, on value factors including book value to price, cash flow to price and return on assets. All stocks are ranked on the sum of ranks for the growth factors and, separately, all stocks are ranked on the sum of ranks for the value factors.
  • Each stock receives either its growth or value score rank as its selection score based on its style designation as determined by Russell. Stocks which Russell allocates between both growth and value receive the better of their growth or value score rank as their selection score.
  • IDI then ranks those stocks contained in the consumer discretionary sector according to their score. The greater of the top 75% of the eligible universe or 40 stocks is selected for the StrataQuant® Consumer Discretionary Index.
    • If the total count of eligible stocks in the consumer discretionary sector falls below 40, all eligible stocks will be included.
  • The selected stocks are divided into quintiles based on their rankings and the top ranked quintiles receive a higher weight within the index. The stocks are equally-weighted within each quintile.
  • The index is reconstituted and rebalanced quarterly.
Fund Overview
Fund TypeConsumer Discretionary
Investment AdvisorFirst Trust Advisors L.P.
Investor Servicing AgentBank of New York Mellon
Fiscal Year-End07/31
ExchangeNYSE Arca
Inception Price$20.00
Inception NAV$20.00
Rebalance FrequencyQuarterly
Gross Expense Ratio*0.63%
Net Expense Ratio*0.63%
* As of 12/1/2020
Expenses are capped contractually at 0.70% per year, at least until November 30, 2021.
Current Fund Data (as of 2/26/2021)
Closing NAV1$55.82
Closing Market Price2$55.82
Bid/Ask Midpoint$55.81
Bid/Ask Discount0.02%
30-Day Median Bid/Ask Spread30.07%
Total Net Assets$1,537,912,690
Outstanding Shares27,550,002
Daily Volume94,083
Average 30-Day Daily Volume198,775
Closing Market Price 52-Week High/Low$57.47 / $23.18
Closing NAV 52-Week High/Low$57.49 / $23.40
Number of Holdings (excluding cash)115
Top Holdings (as of 2/26/2021)*
Holding Percent
Discovery, Inc. (Class A) 2.32%
ViacomCBS Inc. 1.82%
AMERCO 1.66%
Nexstar Media Group, Inc. 1.66%
Etsy, Inc. 1.63%
Mohawk Industries, Inc. 1.63%
Tempur Sealy International, Inc. 1.63%
General Motors Company 1.62%
Toll Brothers, Inc. 1.62%
MGM Resorts International 1.58%

* 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 2/28/2021)4$0.0481
30-Day SEC Yield (as of 1/29/2021)50.18%
Unsubsidized 30-Day SEC Yield (as of 1/29/2021)60.18%
12-Month Distribution Rate (as of 1/29/2021)70.41%
Index Yield (as of 1/29/2021)81.31%
For funds with certain equity strategies, due to the negative economic impact across many industries caused by the COVID-19 outbreak, certain of the issuers of the securities included in the fund may elect to reduce the amount of dividends and/or distributions paid in the future. As a result, the "12-Month Distribution Rate," which is based on the fund's trailing 12-month ordinary distributions, will likely be higher, and in some cases significantly higher, than the actual 12-month distribution rate achieved by the fund.
Fund Characteristics (as of 1/29/2021)9
Maximum Market Cap.$1,608,715
Median Market Cap.$14,129
Minimum Market Cap.$2,143
Price/Cash Flow13.73
Bid/Ask Premium/Discount (as of 2/26/2021)
  2020 Q1 2021 Q2 2021 Q3 2021
Days Traded at Premium 156 30 --- ---
Days Traded at Discount 97 8 --- ---
Top Industry Exposure (as of 2/26/2021)
Retailers 28.62%
Media 13.65%
Household Goods and Home Construction 13.26%
Consumer Services 11.87%
Travel and Leisure 10.09%
Automobiles and Parts 9.53%
Leisure Goods 8.54%
Personal Goods 4.44%
Month End Performance (as of 1/29/2021)
  3 Month YTD 1 Year 3 Year 5 Year 10 Year Since
Fund Performance *
Net Asset Value (NAV) 24.29% 3.28% 21.56% 7.03% 11.28% 11.35% 8.13%
After Tax Held 24.24% 3.28% 21.23% 6.65% 10.85% 10.96% 7.80%
After Tax Sold 14.38% 1.94% 12.69% 5.23% 8.74% 9.22% 6.57%
Market Price 24.13% 3.20% 21.54% 7.02% 11.27% 11.33% 8.13%
Index Performance **
StrataQuant® Consumer Discretionary Index 24.53% 3.33% 22.19% 7.68% 11.97% 12.09% 8.89%
Russell 1000® Consumer Discretionary Index 18.45% -0.52% 41.04% 19.07% 20.61% 18.09% N/A
Russell 1000® Index 15.54% -0.82% 19.84% 12.48% 16.69% 13.64% 9.26%
S&P 500 Consumer Discretionary Index 11.76% 0.41% 33.00% 16.45% 18.86% 17.81% 12.72%
Quarter End Performance (as of 12/31/2020)
  3 Month YTD 1 Year 3 Year 5 Year 10 Year Since
Fund Performance *
Net Asset Value (NAV) 19.63% 12.92% 12.92% 7.49% 9.35% 10.87% 7.93%
After Tax Held 19.59% 12.61% 12.61% 7.10% 8.92% 10.49% 7.59%
After Tax Sold 11.62% 7.58% 7.58% 5.59% 7.16% 8.80% 6.39%
Market Price 19.66% 12.97% 12.97% 7.48% 9.35% 10.85% 7.93%
Index Performance **
StrataQuant® Consumer Discretionary Index 19.87% 13.54% 13.54% 8.15% 10.04% 11.61% 8.68%
Russell 1000® Consumer Discretionary Index 15.60% 42.91% 42.91% 22.61% 19.45% 18.15% N/A
Russell 1000® Index 13.69% 20.96% 20.96% 14.82% 15.60% 14.01% 9.38%
S&P 500 Consumer Discretionary Index 8.04% 33.30% 33.30% 19.81% 17.53% 17.68% 12.77%
3-Year Statistics (as of 1/29/2021)
  Standard Deviation Alpha Beta Sharpe Ratio Correlation
FXD 29.43% -9.55 1.20 0.33 0.91
S&P 500 Consumer Discretionary Index 22.39% --- 1.00 0.72 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 the StrataQuant® Consumer Discretionary 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.

Russell 1000® Consumer Discretionary Index - The Index is an unmanaged index which includes the stocks in the consumer discretionary sector of the Russell 1000® Index.

Russell 1000® Index - The Index is an unmanaged index used to measure the large-cap U.S. equity universe.

S&P 500 Consumer Discretionary Index - The Index is an unmanaged index which includes the stocks in the consumer discretionary sector of the S&P 500 Index.

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 Index yield represents the weighted average trailing 12-month dividend of the constituents of the StrataQuant® Consumer Discretionary Index.
9 All market capitalization numbers are in USD$ Millions.
10 Inception Date is 5/8/2007

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 StrataQuant® Consumer Discretionary 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 COVID-19 pandemic may last for an extended period of time, and will continue to impact the economy for the foreseeable future.

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

The success of consumer discretionary companies is tied closely to the performance of the overall U.S. and international economies, interest rates, competition, consumer confidence, disposable household income and consumer spending. Changes in demographics and consumer tastes can also affect the demand for consumer discretionary products.

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.

StrataQuant® and StrataQuant® Consumer Discretionary Index (“Index”) are service/trademarks of ICE Data Indices, LLC or its affiliates (“IDI”) and have been licensed for use by First Trust in connection with the Fund. The Fund is not sponsored, endorsed, sold or promoted by IDI and IDI makes no representations or warranties regarding the advisability of investing in the Fund or as to the result to be obtained by any person from use of the Index in connection with the trading of the Fund. IDI and its third party suppliers accept no liability in connection with use of the index or the Fund. See the prospectus for a full copy of the disclaimer.

Frank Russell Company is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell® is a trademark of Frank Russell Company. Frank Russell Company does not promote, sponsor or endorse the content of this communication.

"AlphaDEX®" is a registered trademark of First Trust Portfolios L.P. First Trust Portfolios L.P. has obtained a patent for the AlphaDEX® stock selection methodology from the United States Patent and Trademark Office.

Not FDIC Insured • Not Bank Guaranteed • May Lose Value