First Trust Heitman Global Prime Real Estate ETF (PRME)
  • On March 13, 2019 the Board of Trustees of First Trust Heitman Global Prime Real Estate ETF (NYSE Arca: PRME) and First Trust FTSE EPRA/NAREIT (NYSE Arca: FFR), exchange-traded funds managed by FTA, has approved the merger of PRME into FFR.  FFR will be the surviving fund. Under the terms of the proposed transaction, which is expected to be tax free, the assets of PRME would be transferred to, and the liabilities of PRME would be assumed by, FFR, and shareholders of PRME would receive shares of FFR with a value equal to the aggregate net asset value of the PRME shares held by them.  It is currently expected that the transaction will be consummated later this year, subject to requisite shareholder approval of PRME and satisfaction of applicable regulatory requirements and approvals and customary closing conditions.  There is no assurance when or whether such approvals, or any other approvals required for the transaction, will be obtained.  More information on the proposed transaction will be contained in registration statement/proxy materials that will be filed with the SEC. Upon completion of the proposed transaction, the investment objectives and strategies of FFR will remain unchanged.
Investment Objective/Strategy - The First Trust Heitman Global Prime Real Estate ETF is an actively managed exchange-traded fund. The fund's investment objective is to provide long-term total return. 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 U.S. and non-U.S. exchange-traded real estate securities, which includes real estate investment trusts, real estate operating companies and common stocks or depositary receipts of companies primarily engaged in the real estate industry.
There can be no assurance that the Fund's investment objectives will be achieved.
Fund Overview
Fund TypeGlobal REIT
Investment AdvisorFirst Trust Advisors L.P.
Investor Servicing AgentBrown Brothers Harriman
Portfolio Manager/Sub-AdvisorHeitman Real Estate Securities LLC
Fiscal Year-End10/31
ExchangeNYSE Arca
Inception Price$20.16
Inception NAV$20.16
Expense Ratio0.95%
Current Fund Data (as of 8/16/2019)
Closing NAV1$20.73
Closing Market Price2$20.58
Bid/Ask Midpoint$20.58
Bid/Ask Discount0.73%
Total Net Assets$2,073,180
Outstanding Shares100,002
Daily Volume0
Average 30-Day Daily Volume309
Closing Market Price 52-Week High/Low$21.64 / $17.64
Closing NAV 52-Week High/Low$21.40 / $17.63
Number of Holdings39
Fund Characteristics (as of 7/31/2019)6
Maximum Market Cap.$50,875
Median Market Cap.$8,023
Minimum Market Cap.$1,802
Price/Cash Flow10.78
Top Holdings (as of 8/15/2019)
Holding Percent
Prologis, Inc. 7.16%
Equity Residential 6.49%
AvalonBay Communities, Inc. 6.35%
Rexford Industrial Realty, Inc. 4.84%
Simon Property Group, Inc. 4.21%
Federal Realty Investment Trust 4.00%
Deutsche Wohnen SE 3.37%
Nippon Building Fund, Inc. 3.25%
Equinix, Inc. 3.20%
Boston Properties, Inc. 3.17%

Holdings are subject to change.

Top Country Exposure (as of 8/15/2019)
Country Percent
United States 55.23%
Japan 11.39%
Australia 6.86%
Hong Kong 5.79%
United Kingdom 3.95%
France 3.42%
Germany 3.39%
Canada 2.92%
Sweden 2.40%
Singapore 2.37%
NAV History (Since Inception)
Past performance is not indicative of future results.
Distribution Information
Dividend per Share Amt (as of 8/17/2019)3$0.2000
30-Day SEC Yield (as of 7/31/2019)42.29%
12-Month Distribution Rate (as of 7/31/2019)53.11%
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 1 0 1 0
3/31/2019 2 0 0 0
12/31/2018 10 5 5 13
9/30/2018 11 10 8 22
Number of Days Bid/Ask Midpoint Below NAV
Quarter Ended 0-49
Basis Points
Basis Points
Basis Points
Basis Points
6/30/2019 13 24 24 0
3/31/2019 24 30 5 0
12/31/2018 6 16 6 2
9/30/2018 7 3 2 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 Sub-Industry Exposure (as of 8/15/2019)
Office REITs 23.90%
Retail REITs 19.82%
Industrial REITs 16.59%
Residential REITs 12.91%
Real Estate Operating Companies 10.61%
Diversified Real Estate Activities 6.07%
Diversified REITs 5.82%
Specialized REITs 3.22%
Hotel & Resort REITs 1.06%
Month End Performance (as of 7/31/2019)
  3 Month YTD 1 Year 3 Year 5 Year 10 Year Since
Fund Performance *
Net Asset Value (NAV) 0.14% 15.49% 5.58% 3.12% N/A N/A 4.96%
After Tax Held -0.25% 15.04% 4.18% 1.13% N/A N/A 3.17%
After Tax Sold 0.08% 9.17% 3.25% 1.45% N/A N/A 2.97%
Market Price 1.31% 16.85% 5.65% 3.15% N/A N/A 4.95%
Index Performance **
FTSE EPRA/NAREIT Developed Index 1.91% 15.55% 8.13% 3.87% N/A N/A 7.73%
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) 0.29% 15.88% 7.15% 5.00% N/A N/A 5.18%
After Tax Held -0.10% 15.43% 5.73% 2.98% N/A N/A 3.34%
After Tax Sold 0.17% 9.40% 4.17% 2.88% N/A N/A 3.11%
Market Price -0.24% 16.34% 5.20% 4.59% N/A N/A 4.95%
Index Performance **
FTSE EPRA/NAREIT Developed Index 0.20% 15.09% 8.64% 5.45% N/A N/A 7.79%
3-Year Statistics (as of 7/31/2019)
  Standard Deviation Alpha Beta Sharpe Ratio Correlation
PRME 10.88% -0.68 0.99 0.20 0.98
FTSE EPRA/NAREIT Developed Index 10.80% --- 1.00 0.27 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 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.

FTSE EPRA/NAREIT Developed Index - The Index is designed to track the performance of listed real estate companies and REITS worldwide.

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 All market capitalization numbers are in USD$ Millions.
7 Inception Date is 11/11/2015

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 the fund or shares of the fund in general may fall in value. Some of the securities held by the fund may be restricted or illiquid.

The fund may invest in securities issued by companies concentrated in a particular industry or country which involves additional risks including limited diversification. The fund may invest in small capitalization and mid capitalization companies. Such companies may experience greater price volatility than larger, more established companies.

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. These risks may be heightened for securities of companies located in, or with significant operations in, emerging market countries. The fund may invest in depositary receipts which may be less liquid than the underlying shares in their primary trading market.

The fund invests in companies in the real estate industry, including real estate investment trusts (REITs) and real estate operating companies (REOCs). Therefore, the fund is subject to the risks associated with investing in real estate, which may include, but are not limited to, fluctuations in the value of underlying properties; defaults by borrowers or tenants; market saturation; changes in general and local economic conditions; decreases in market rates for rents; increases in competition, property taxes, capital expenditures or operating expenses; and other economic, political or regulatory occurrences affecting companies in the real estate industry.

The fund is subject to interest rate risk. Increases in interest rates typically coincide with higher investor required returns and can lower the present value of a REIT's future earnings stream if not met with a commensurate increase in growth.

The fund invests, in part, in securities issued by companies operating in Asia, and is therefore subject to certain risks associated specifically with Asia such as currency adjustments and devaluations relative to the U.S. dollar, serious exchange constraints, jurisdictional disputes and market volatility.

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.

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.

Changes in currency exchange rates and the relative value of non-US currencies may affect the value of a fund's investments and the value of a fund's shares. The fund currently has fewer assets than larger funds, and like other relatively new funds, large inflows and outflows may impact the 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.

Not FDIC Insured • Not Bank Guaranteed • May Lose Value