First Trust Horizon Managed Volatility Developed International ETF (HDMV)
  • 2018 Estimated Capital Gain Distributions
    Certain First Trust Exchange-Traded Funds are expected to pay a long-term capital gain distribution in December. For a list of exchange-traded funds expected to pay a long-term capital gain distribution, please click here. Short-term capital gain distributions, if any, are expected to be nominal and are taxed like ordinary income. Final determination of the source and tax status of all distributions paid in the current year are to be made after year-end and could differ from the expectations noted above.
Investment Objective/Strategy - The First Trust Horizon Managed Volatility Developed International ETF is an actively managed exchange-traded fund. The Fund's investment objective is to provide capital appreciation. Under normal market conditions, the Fund will seek to achieve its investment objective by investing at least 80% of its net assets (including investment borrowings) in common stocks and depositary receipts of developed market companies listed and traded on non-U.S. exchanges that Horizon Investments, LLC believes exhibit low future expected volatility.
There can be no assurance that the Fund's investment objectives will be achieved.
Fund Overview
Fund TypeInternational Equity
Investment AdvisorFirst Trust Advisors L.P.
Investor Servicing AgentBrown Brothers Harriman
Portfolio Manager/Sub-AdvisorHorizon Investments, LLC
Fiscal Year-End07/31
ExchangeNYSE Arca
Inception Price$29.89
Inception NAV$29.89
Expense Ratio0.80%
Current Fund Data (as of 12/13/2018)
Closing NAV1$31.54
Closing Share Price2$31.63
Bid/Ask Midpoint$31.62
Bid/Ask Premium0.24%
Total Net Assets$63,089,713
Outstanding Shares2,000,002
Daily Volume10,415
Average 30-Day Daily Volume8,885
Closing Share Price 52-Week High/Low$36.34 / $31.07
Closing NAV 52-Week High/Low$36.12 / $30.91
Number of Holdings175
Fund Characteristics (as of 11/30/2018)6
Maximum Market Cap.$260,987
Median Market Cap.$16,336
Minimum Market Cap.$2,572
Price/Cash Flow9.29
Top Holdings (as of 12/13/2018)
Holding Percent
Ascendas Real Estate Investment Trust 0.87%
Swiss Prime Site AG 0.84%
The Hong Kong and China Gas Company Limited 0.82%
Woolworths Limited 0.81%
Nestle S.A. (Registered) 0.79%
MTR Corporation Limited 0.76%
Coca-Cola European Partners Plc 0.75%
Wolters Kluwer N.V. 0.75%
Hongkong Land Holdings Ltd 0.74%
HSBC Holdings Plc 0.74%

Holdings are subject to change.

Top Country Exposure (as of 12/13/2018)
Country Percent
Japan 25.62%
United Kingdom 11.22%
France 10.76%
Switzerland 10.07%
Australia 9.21%
Hong Kong 7.25%
Germany 6.25%
Singapore 4.10%
Sweden 3.25%
Spain 3.16%
NAV History (Since Inception)
Past performance is not indicative of future results.
Distribution Information
Dividend per Share Amt (as of 12/17/2018)3$0.2079
30-Day SEC Yield (as of 11/30/2018)42.92%
12-Month Distribution Rate (as of 11/30/2018)52.64%
Bid/Ask Midpoint vs. NAV (as of 9/30/2018)
Number of Days Bid/Ask Midpoint Above NAV
Quarter Ended 0-49
Basis Points
Basis Points
Basis Points
Basis Points
9/30/2018 38 18 1 0
6/30/2018 31 24 0 0
3/31/2018 21 36 3 0
12/31/2017 16 46 1 0
Number of Days Bid/Ask Midpoint Below NAV
Quarter Ended 0-49
Basis Points
Basis Points
Basis Points
Basis Points
9/30/2018 5 1 0 0
6/30/2018 8 1 0 0
3/31/2018 0 1 0 0
12/31/2017 0 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.

Top Sector Exposure (as of 12/13/2018)
Financials 23.24%
Industrials 20.77%
Real Estate 14.10%
Consumer Staples 12.64%
Utilities 8.14%
Consumer Discretionary 5.90%
Communication Services 5.60%
Health Care 4.26%
Materials 3.20%
Energy 1.09%
Information Technology 1.06%
Month End Performance (as of 11/30/2018)
  3 Mos YTD 1 Year 3 Year 5 Year 10 Year Since
Fund Performance *
Net Asset Value (NAV) -3.43% -4.29% -3.26% N/A N/A N/A 5.67%
After Tax Held -3.69% -5.23% -4.31% N/A N/A N/A 4.50%
After Tax Sold -1.93% -2.41% -1.83% N/A N/A N/A 3.82%
Market Price -3.50% -4.24% -3.35% N/A N/A N/A 5.86%
Index Performance
MSCI EAFE Index -7.28% -9.39% -7.94% N/A N/A N/A 5.26%
Quarter End Performance (as of 9/28/2018)
  3 Mos YTD 1 Year 3 Year 5 Year 10 Year Since
Fund Performance *
Net Asset Value (NAV) 1.78% 0.02% 4.17% N/A N/A N/A 8.38%
After Tax Held 1.51% -0.96% 3.04% N/A N/A N/A 7.09%
After Tax Sold 1.01% 0.01% 2.35% N/A N/A N/A 5.84%
Market Price 1.84% -0.27% 3.45% N/A N/A N/A 8.41%
Index Performance
MSCI EAFE Index 1.35% -1.43% 2.74% N/A N/A N/A 10.01%

*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.

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.

MSCI EAFE Index - The Index is a free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the US & Canada.

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 share 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 All market capitalization numbers are in USD$ Millions.
7 Inception Date is 8/24/2016

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 NYSE Arca, Inc.

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. The fund is subject to management risk because it is an actively managed portfolio. In managing the fund's investment portfolio, the advisor will apply investment techniques and risk analyses that may not have the desired result. There can be no assurance that the fund's investment objectives will be achieved.

The fund is subject to market risk. Market risk is the risk that a particular security owned by a fund or shares of a fund in general may fall in value.

An investment in a fund containing securities of non-U.S. issuers is subject to additional risks, including currency fluctuations, political risks, withholding, the lack of adequate financial information, and exchange control restrictions impacting non-U.S. issuers. A fund may invest in depositary receipts which may be less liquid than the underlying shares in their primary trading market.

If the fund has lower average daily trading volumes, it may rely on a small number of third-party market makers to provide a market for the purchase and sale of shares. Any trading halt or other problem relating to the trading activity of these market makers could result in a dramatic change in the spread between a fund's net asset value and the price at which a fund's shares are trading on NYSE Arca which could result in a decrease in value of the fund's shares.

The fund invests in equity securities and the value of the shares will fluctuate with changes in the value of these equity securities. Equity securities prices fluctuate for several reasons, including changes in investors' perceptions of the financial condition of an issuer or the general condition of the relevant stock market.

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

As the use of Internet technology has become more prevalent in the course of business, the fund has become more susceptible to potential operational risks through breaches in cyber security. Such events could cause the fund to incur regulatory penalties, reputational damage, additional compliance costs associated with corrective measures and/or financial loss.

A significant number of countries in Europe are member states in the European Union, and the member states no longer control their own monetary policies. In these member states, the authority to direct monetary policies, including money supply and official interest rates for the Euro, is exercised by the European Central Bank. Furthermore, the European sovereign debt crisis has had, and continues to have, a significant negative impact on the economies of certain European countries and their future economic outlooks.

Changes in currency exchange rates and the relative value of non-U.S. currencies will affect the value of HDMV's investment and the value of its shares. Currency exchange rates can be very volatile and can change quickly and unpredictably.

High portfolio turnover may result in a fund paying higher levels of transaction costs and generating greater tax liabilities for shareholders. Portfolio turnover risk may cause a fund's performance to be less than expected.

The fund is classified as "non-diversified" and may invest a relatively high percentage of their 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.

Not FDIC Insured • Not Bank Guaranteed • May Lose Value