Home   Logon   Mobile Site   Research and Commentary   About Us   Call 1.800.621.1675 or Email Us       Follow Us: 

Search by Ticker, Keyword or CUSIP       
 
 
First Trust Merger Arbitrage ETF (MARB)
Investment Objective/Strategy - The First Trust Merger Arbitrage ETF's investment objective is to seek to provide investors with capital appreciation. Under normal market conditions, the Fund seeks to achieve its investment objective by establishing long and short positions in the equity securities of companies that are involved in a publicly-announced significant corporate event, such as a merger or acquisition.
There can be no assurance that the Fund's investment objectives will be achieved.
Fund Overview
TickerMARB
Fund TypeMarket Neutral
Investment AdvisorFirst Trust Advisors L.P.
Investor Servicing AgentBrown Brothers Harriman
Portfolio Manager/Sub-AdvisorFirst Trust Capital Management L.P.
CUSIP33740J203
ISINUS33740J2033
Intraday NAVMARBIV
Fiscal Year-End07/31
ExchangeNYSE Arca
Inception2/4/2020
Inception Price$20.01
Inception NAV$20.01
Fees And Expenses
Management Fees1.25%
Other Expenses0.98%
Total Annual Expenses2.23%
"Other Expenses" consist of margin interest expense and dividend expense on investments sold short.
Current Fund Data (as of 6/24/2022)
Closing NAV1$19.85
Closing Market Price2$19.85
Bid/Ask Midpoint$19.85
Bid/Ask Premium0.00%
30-Day Median Bid/Ask Spread30.30%
Total Net Assets$34,737,949
Outstanding Shares1,750,002
Daily Volume22,503
Average 30-Day Daily Volume28,074
Closing Market Price 52-Week High/Low$20.09 / $19.30
Closing NAV 52-Week High/Low$20.05 / $19.30
Number of Holdings (excluding cash)33
Top Holdings - Long Exposure (as of 6/24/2022)*
Holding Percent
Flagstar Bancorp, Inc. 5.90%
Citrix Systems, Inc. 5.54%
Sanderson Farms, Inc. 4.21%
Umpqua Holdings Corporation 4.04%
Cornerstone Building Brands Inc. 3.89%
PS Business Parks, Inc. 3.38%
Switch, Inc. (Class A) 3.38%
Alleghany Corporation 3.19%
CMC Materials Inc. 3.00%
CDK Global, Inc. 2.92%

* Excluding cash.  Holdings are subject to change.

Top Holdings - Short Exposure (as of 6/24/2022)*
Holding Percent
New York Community Bancorp, Inc. -6.12%
Columbia Banking System, Inc. -4.04%
Entegris, Inc. -0.51%

* Excluding cash.  Holdings are subject to change.

NAV History (Since Inception)
Past performance is not indicative of future results.
Fund Characteristics - Long Exposure (as of 5/31/2022)4
Maximum Market Cap.$27,895
Median Market Cap.$3,977
Minimum Market Cap.$824
Price/Earnings9.82
Price/Book2.37
Price/Cash Flow7.46
Price/Sales1.07
Fund Characteristics - Short Exposure (as of 5/31/2022)4
Maximum Market Cap.$107,280
Median Market Cap.$20,502
Minimum Market Cap.$2,349
Price/Earnings9.89
Price/Book0.92
Price/Cash Flow8.73
Price/Sales3.25
Fund Exposure (as of 6/24/2022)
Long Exposure79.46%
Short Exposure-10.67%
Net Exposure68.79%
Top Sector - Long Exposure (as of 6/24/2022)
Percent
Information Technology 25.64%
Financials 13.13%
Industrials 11.20%
Health Care 10.91%
Real Estate 6.27%
Consumer Staples 4.21%
Materials 2.45%
Communication Services 2.39%
Utilities 1.94%
Consumer Discretionary 1.32%
Top Sector - Short Exposure (as of 6/24/2022)
Percent
Financials -10.16%
Information Technology -0.51%
Bid/Ask Premium/Discount (as of 6/24/2022)
  2021 Q1 2022 Q2 2022 Q3 2022
Days Traded at Premium 130 14 43 ---
Days Traded at Discount 122 48 15 ---
Hypothetical Growth of $10,000 Since Inception (as of 6/24/2022) *


Month End Performance (as of 5/31/2022)
  3 Month YTD 1 Year 3 Year 5 Year 10 Year Since
Fund
Inception5
Fund Performance *
Net Asset Value (NAV) 0.45% 1.42% 0.35% N/A N/A N/A -0.15%
After Tax Held 0.45% 1.42% 0.35% N/A N/A N/A -0.15%
After Tax Sold 0.27% 0.84% 0.21% N/A N/A N/A -0.12%
Market Price 0.45% 1.42% 0.30% N/A N/A N/A -0.17%
Index Performance **
Hedge Fund Research Merger Arbitrage Index -2.98% -2.53% -3.15% N/A N/A N/A 2.36%
S&P 500 Index -5.16% -12.76% -0.30% N/A N/A N/A 12.02%
Quarter End Performance (as of 3/31/2022)
  3 Month YTD 1 Year 3 Year 5 Year 10 Year Since
Fund
Inception5
Fund Performance *
Net Asset Value (NAV) 1.58% 1.58% 1.99% N/A N/A N/A -0.09%
After Tax Held 1.58% 1.58% 1.99% N/A N/A N/A -0.09%
After Tax Sold 0.93% 0.93% 1.18% N/A N/A N/A -0.07%
Market Price 1.63% 1.63% 1.99% N/A N/A N/A -0.09%
Index Performance **
Hedge Fund Research Merger Arbitrage Index 0.55% 0.55% 2.09% N/A N/A N/A 4.04%
S&P 500 Index -4.60% -4.60% 15.65% N/A N/A N/A 17.81%

*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 each listed 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.

Hedge Fund Research Merger Arbitrage Index - The Index is designed to be representative of merger arbitrage strategies primarily focused on opportunities in equity and equity related instruments of companies which are currently engaged in a corporate transaction.

S&P 500 Index - The Index is an unmanaged index of 500 companies used to measure large-cap U.S. stock market performance.

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 All market capitalization numbers are in USD$ Millions.
5 Inception Date is 2/4/2020

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

You could lose money by investing in a fund. An investment in a fund is not a deposit of a bank and is not insured or guaranteed. There can be no assurance that a fund's objective(s) will be achieved. Investors buying or selling shares on the secondary market may incur customary brokerage commissions. Please refer to each fund's prospectus and SAI for additional details on a fund's risks. The order of the below risk factors does not indicate the significance of any particular risk factor.

Unlike mutual funds, shares of the fund 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 premium or discount to a fund's net asset value and possibly face delisting and the bid/ask spread may widen.

A fund may be subject to the risk that a counterparty will not fulfill its obligations which may result in significant financial loss to a fund.

A fund is susceptible to operational risks through breaches in cyber security. Such events could cause a fund to incur regulatory penalties, reputational damage, additional compliance costs associated with corrective measures and/or financial loss.

Equity securities may decline significantly in price over short or extended periods of time, and such declines may occur in the equity market as a whole, or they may occur in only a particular country, company, industry or sector of the market.

A fund may be a constituent of one or more indices or models which could greatly affect a fund's trading activity, size and volatility.

Leverage may result in losses that exceed the amount originally invested and may accelerate the rates of losses. Leverage tends to magnify, sometimes significantly, the effect of any increase or decrease in a fund's exposure to an asset or class of assets and may cause the value of a fund's shares to be volatile and sensitive to market swings.

Certain fund investments may be subject to restrictions on resale, trade over-the-counter or in limited volume, or lack an active trading market. Illiquid securities may trade at a discount and may be subject to wide fluctuations in market value.

The portfolio managers of an actively managed portfolio will apply investment techniques and risk analyses that may not have the desired result.

Market risk is the risk that a particular security, or shares of a fund in general may fall in value. Securities are subject to market fluctuations caused by such factors as general economic conditions, political events, regulatory or market developments, changes in interest rates and perceived trends in securities prices. Shares of a fund could decline in value or underperform other investments as a result. In addition, local, regional or global events such as war, acts of terrorism, spread of infectious disease or other public health issues, recessions, or other events could have significant negative impact on a fund. 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.

A fund faces numerous market trading risks, including the potential lack of an active market for fund shares due to a limited number of market makers. Decisions by market makers or authorized participants to reduce their role or step away in times of market stress could inhibit the effectiveness of the arbitrage process in maintaining the relationship between the underlying values of a fund's portfolio securities and a fund's market price.

Investments in companies that are the subject of a publicly announced transaction carry the risk the transaction is renegotiated, takes longer to complete than originally planned and that the transaction is never completed. Any such event could cause a fund to incur a loss. The risk/reward payout of merger arbitrage strategies typically is asymmetric, with the losses in failed transactions often far exceeding the gains in successful transactions.

A fund that holds cash or invests in money market or short-term securities may be less likely to achieve its investment objective and could lose money.

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.

Securities of non-U.S. issuers are subject to additional risks, including currency fluctuations, political risks, withholding, lack of liquidity, lack of adequate financial information, and exchange control restrictions impacting non-U.S. issuers.

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. The fund also relies on third parties for a range of services, including custody, and any delay or failure related to those services may affect the fund's ability to meet its objective.

High portfolio turnover may result in higher levels of transaction costs and may generate greater tax liabilities for shareholders.

The market price of a fund's shares will generally fluctuate in accordance with changes in the fund's net asset value ("NAV") as well as the relative supply of and demand for shares on the exchange, and a fund's investment advisor cannot predict whether shares will trade below, at or above their NAV.

Short selling creates special risks which could result in increased gains or losses and volatility of returns. Because losses on short sales arise from increases in the value of the security sold short, such losses are theoretically unlimited.

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.

Special purpose acquisition companies ("SPACs"), have no operating history or ongoing business other than seeking acquisitions. The value of a SPAC's securities is particularly dependent on the ability of its management to identify and complete a profitable acquisition. There is no guarantee that the SPACs in which a fund may invest will complete an acquisition or that any acquisitions completed by the SPACs will be profitable.

Trading on an exchange may be halted due to market conditions or other reasons. There can be no assurance that a fund's requirements to maintain the exchange listing will continue to be met or be unchanged.

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
 
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)
Home |  Important Legal Information |  Privacy Policy |  California Privacy Policy |  Business Continuity Plan |  FINRA BrokerCheck
Copyright © 2022 All rights reserved.