First Trust Indxx Medical Devices ETF (MDEV)
Investment Objective/Strategy - The First Trust Indxx Medical Devices ETF (the "Fund") seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of an index called the Indxx Global Medical Equipment Index (the "Index"). The Fund will normally invest at least 80% of its net assets (including net assets plus any borrowings for investment purposes) in the common stocks and depositary receipts that comprise the Index. The Fund, using an indexing investment approach, attempts to replicate, before fees and expenses, the performance of the Index. The Index is developed, maintained and sponsored by Indxx, LLC (the "Index Provider").
There can be no assurance that the Fund's investment objectives will be achieved.
  • The Indxx Global Medical Equipment Index (the “index”) is designed to track the performance of companies that are trading in the medical devices industry. The index begins with a universe of common stocks and depositary receipts of companies listed on a global securities exchange and issued by companies operating in both developed and emerging market countries.
  • To be considered for the index, companies must meet the following criteria:
    • Minimum market capitalization of $500 million;
    • Six-month average daily turnover value of at least $2 million;
    • Traded on at least 90% of the eligible trading days in the last 6 months or in the past 3 months for a security recently issued in an initial public offering;
    • Minimum free float of 10% of shares outstanding;
    • A share price of less than $10,000 for new index constituents.
  • Eligible securities from medical device companies that derive a minimum of 50% of their total revenue from business activities associated with medical equipment are ranked based upon their market capitalization.
    • The top 50 companies are selected.
  • Securities selected for inclusion in the index are weighted equally.
  • The index is rebalanced semi-annually and reconstituted annually.
    Fund Overview
    Fund TypeHealth Care
    Investment AdvisorFirst Trust Advisors L.P.
    Investor Servicing AgentBrown Brothers Harriman
    Intraday NAVMDEVIV
    Fiscal Year-End03/31
    ExchangeCboe BZX
    Inception Price$25.17
    Inception NAV$25.17
    Rebalance FrequencySemi-Annual
    Expense Ratio0.70%
    Current Fund Data (as of 5/20/2022)
    Closing NAV1$19.34
    Closing Market Price2$19.34
    Bid/Ask Midpoint$19.36
    Bid/Ask Premium0.10%
    30-Day Median Bid/Ask Spread30.36%
    Total Net Assets$1,934,026
    Outstanding Shares100,002
    Daily Volume0
    Average 30-Day Daily Volume154
    Closing Market Price 52-Week High/Low$28.02 / $18.36
    Closing NAV 52-Week High/Low$27.93 / $18.30
    Number of Holdings (excluding cash)50
    NAV History (Since Inception)
    Past performance is not indicative of future results.
    Fund Characteristics (as of 4/29/2022)4
    Maximum Market Cap.$216,435
    Median Market Cap.$22,715
    Minimum Market Cap.$6,270
    Price/Cash Flow21.84
    Top Holdings (as of 5/20/2022)*
    Holding Percent
    Olympus Corporation 2.51%
    Waters Corporation 2.37%
    Terumo Corporation 2.33%
    Smith & Nephew Plc 2.31%
    Hologic, Inc. 2.28%
    Masimo Corporation 2.23%
    Baxter International Inc. 2.19%
    Siemens Healthineers AG 2.19%
    Demant A/S 2.17%
    Agilent Technologies, Inc. 2.15%

    * Excluding cash.  Holdings are subject to change.

    Bid/Ask Premium/Discount (as of 5/20/2022)
      2021 Q1 2022 Q2 2022 Q3 2022
    Days Traded at Premium 117 55 32 ---
    Days Traded at Discount 17 7 3 ---
    Top Industry Exposure (as of 5/20/2022)
    Health Care Equipment & Supplies 76.27%
    Life Sciences Tools & Services 20.20%
    Biotechnology 1.82%
    Health Care Providers & Services 1.71%
    Hypothetical Growth of $10,000 Since Inception (as of 5/19/2022) *
    Tracking Index: Indxx Global Medical Equipment 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) -13.29% -25.01% N/A N/A N/A N/A -21.73%
    After Tax Held -13.29% -25.01% N/A N/A N/A N/A -21.73%
    After Tax Sold -7.87% -14.81% N/A N/A N/A N/A -12.87%
    Market Price -13.32% -24.99% N/A N/A N/A N/A -21.65%
    Index Performance **
    Indxx Global Medical Equipment Index -12.54% -24.63% N/A N/A N/A N/A -20.98%
    MSCI World Health Care Index -0.49% -7.84% N/A N/A N/A N/A 0.96%
    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) -14.66% -14.66% N/A N/A N/A N/A -10.93%
    After Tax Held -14.66% -14.66% N/A N/A N/A N/A -10.93%
    After Tax Sold -8.68% -8.68% N/A N/A N/A N/A -6.47%
    Market Price -14.61% -14.61% N/A N/A N/A N/A -10.81%
    Index Performance **
    Indxx Global Medical Equipment Index -14.28% -14.28% N/A N/A N/A N/A -10.13%
    MSCI World Health Care Index -3.36% -3.36% N/A N/A N/A N/A 5.86%

    *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 Indxx Global Medical Equipment 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.

    MSCI World Health Care Index - The index is designed to capture the large and mid cap segments of the Health Care sector across Developed Markets (DM) countries.

    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 6/22/2021

    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 security owned by a fund, fund shares or securities 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.

    A fund will be concentrated (i.e., invest more than 25% of fund assets) in the industries or group of industries within a single sector to the extent that the index is so concentrated, which may present more risks than a portfolio broadly diversified over several sectors.

    Changes in currency exchange rates and the relative value of non-U.S. currencies may affect the value of a fund’s investments and the value of a fund’s shares.

    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.

    Depositary receipts may be less liquid than the underlying shares in their primary trading market.

    Securities of non-U.S. issuers are 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. These risks may be heightened for securities of companies located in, or with significant operations in, emerging market countries.

    Health care companies may be affected by government regulations and government health care programs, increases or decreases in the cost of medical products and services and product liability claims, among other factors. Many health care companies are heavily dependent on patent protection, and the expiration of a company’s patent may adversely affect that company’s profitability. Health care companies are also subject to competitive forces that may result in price discounting, may be thinly capitalized and susceptible to product obsolescence.

    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.
    Large inflows and outflows may impact a new fund’s market exposure for limited periods of time.

    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.

    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.

    A fund with significant exposure to a single asset class, 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.

    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.
    Indxx and Indxx Global Medical Equipment Index (“Index”) are trademarks of Indxx, LLC (“Indxx”) and have been licensed for use for certain purposes by First Trust. The Fund is not sponsored, endorsed, sold or promoted by Indxx and Indxx makes no representation regarding the advisability of trading in such product. The Index is determined, composed and calculated by Indxx without regard to First Trust or the Fund.
    Not FDIC Insured • Not Bank Guaranteed • May Lose Value