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First Trust Nasdaq Artificial Intelligence and Robotics ETF (ROBT)
Investment Objective/Strategy - The First Trust Nasdaq Artificial Intelligence and Robotics 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 Nasdaq CTA Artificial Intelligence and Robotics IndexSM (the "Index"). The Fund will normally invest at least 90% of its net assets (including investment borrowings) in common stocks and depositary receipts that comprise the Index. The Index is designed to track the performance of companies engaged in the artificial intelligence ("AI") and robotics segments of the technology, industrial and other economic sectors.
There can be no assurance that the Fund's investment objectives will be achieved.
  • The Index is designed to track the performance of companies engaged in Artificial intelligence (AI), robotics and automation.
  • To be included in the Index, a security must be listed on an index-eligible global stock exchange and classified as AI or robotics engagers, enablers or enhancers, as determined by the Consumer Technology Association (CTA):
    • Enablers – Companies that develop the building block components for robotics or AI, such as advanced machinery, autonomous systems/self-driving vehicles, semiconductors, and databases used for machine learning.
    • Engagers – Companies that design, create, integrate, or deliver robotics and/or AI in the form of products, software, or systems.
    • Enhancers – Companies that provide their own value-added services within the AI and robotics ecosystem, but which are not core to their product or service offering.
  • Each security must have a minimum market capitalization of $250 million, have a minimum three-month average daily dollar trading volume of at least $3 million, and have a minimum free float of 20%.
  • Each eligible security is scored based on its involvement within its respective engager, enabler or enhancer category. The top 30 companies within each category are selected.
  • Each category is weighted with engagers receiving 60%, enablers receiving 25% and enhancers receiving 15%. The selected companies are weighted equally within each category.
  • The Index is rebalanced quarterly and reconstituted semi-annually.
Fund Overview
TickerROBT
Fund TypeTechnology
Investment AdvisorFirst Trust Advisors L.P.
Investor Servicing AgentBrown Brothers Harriman
CUSIP33738R720
ISINUS33738R7200
Intraday NAVROBTIV
Fiscal Year-End09/30
ExchangeNasdaq
Inception2/21/2018
Inception Price$29.91
Inception NAV$29.91
Rebalance FrequencyQuarterly
Expense Ratio0.65%
Current Fund Data (as of 6/24/2022)
Closing NAV1$39.43
Closing Market Price2$39.38
Bid/Ask Midpoint$39.45
Bid/Ask Premium0.04%
30-Day Median Bid/Ask Spread30.11%
Total Net Assets$199,109,785
Outstanding Shares5,050,002
Daily Volume21,949
Average 30-Day Daily Volume29,446
Closing Market Price 52-Week High/Low$57.97 / $36.46
Closing NAV 52-Week High/Low$57.86 / $36.52
Number of Holdings (excluding cash)113
Top Holdings (as of 6/24/2022)*
Holding Percent
UiPath, Inc. (Class A) 2.62%
Dynatrace, Inc. 2.39%
Appian Corporation 2.35%
PROS Holdings, Inc. 2.29%
ServiceNow, Inc. 2.20%
AVEVA Group Plc 2.17%
Pegasystems Inc. 2.17%
NICE Ltd. (ADR) 2.11%
Cadence Design Systems, Inc. 2.09%
Elbit Systems Ltd. 2.07%

* 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 6/26/2022)4$0.0677
30-Day SEC Yield (as of 5/31/2022)50.20%
12-Month Distribution Rate (as of 5/31/2022)60.09%
Index Yield (as of 5/31/2022)70.78%
Fund Characteristics (as of 5/31/2022)9
Maximum Market Cap.$2,033,325
Median Market Cap.$13,631
Minimum Market Cap.$193
Price/Earnings26.89
Price/Book2.92
Price/Cash Flow17.38
Price/Sales1.90
Top Country Exposure (as of 6/24/2022)
Country Percent
United States 52.45%
Japan 13.70%
France 5.50%
United Kingdom 4.81%
Israel 4.18%
Canada 2.90%
China 2.17%
Sweden 1.81%
Cayman Islands 1.75%
South Korea 1.55%
Bid/Ask Premium/Discount (as of 6/24/2022)
  2021 Q1 2022 Q2 2022 Q3 2022
Days Traded at Premium 222 27 17 ---
Days Traded at Discount 30 35 41 ---
Top Sector Exposure (as of 6/24/2022)
Information Technology 59.54%
Industrials 19.69%
Consumer Discretionary 10.83%
Health Care 6.76%
Communication Services 2.47%
Real Estate 0.37%
Consumer Staples 0.34%
Hypothetical Growth of $10,000 Since Inception (as of 6/23/2022) *
Tracking Index: Nasdaq CTA Artificial Intelligence and Robotics IndexSM

Month End Performance (as of 5/31/2022)
  3 Month YTD 1 Year 3 Year 5 Year 10 Year Since
Fund
Inception10
Fund Performance *
Net Asset Value (NAV) -12.99% -24.35% -20.49% 10.63% N/A N/A 8.32%
After Tax Held -13.00% -24.35% -20.51% 10.52% N/A N/A 8.21%
After Tax Sold -7.69% -14.41% -12.12% 8.23% N/A N/A 6.47%
Market Price -12.94% -24.45% -20.34% 10.59% N/A N/A 8.31%
Index Performance **
Nasdaq CTA Artificial Intelligence and Robotics IndexSM -13.00% -24.29% -20.16% 11.38% N/A N/A 9.02%
S&P 500 Index -5.16% -12.76% -0.30% 16.44% N/A N/A 12.44%
Quarter End Performance (as of 3/31/2022)
  3 Month YTD 1 Year 3 Year 5 Year 10 Year Since
Fund
Inception10
Fund Performance *
Net Asset Value (NAV) -14.20% -14.20% -8.96% 14.41% N/A N/A 12.06%
After Tax Held -14.21% -14.21% -8.98% 14.30% N/A N/A 11.94%
After Tax Sold -8.41% -8.41% -5.30% 11.26% N/A N/A 9.48%
Market Price -14.24% -14.24% -9.23% 14.31% N/A N/A 12.07%
Index Performance **
Nasdaq CTA Artificial Intelligence and Robotics IndexSM -13.62% -13.62% -8.03% 15.41% N/A N/A 12.97%
S&P 500 Index -4.60% -4.60% 15.65% 18.92% N/A N/A 15.46%
3-Year Statistics (as of 5/31/2022)
  Standard Deviation Alpha Beta Sharpe Ratio Correlation
ROBT 23.98% -6.44 1.15 0.51 0.87
S&P 500 Index 18.12% --- 1.00 0.89 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.

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.

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 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 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.
7 Index yield represents the weighted average trailing 12-month dividend of the constituents of the Nasdaq CTA Artificial Intelligence and Robotics Index(SM).
8 Distribution Rate is calculated by dividing the fund's most recent ordinary distribution paid or declared, on an annualized basis, by the NAV price. Distribution rates may vary.
9 All market capitalization numbers are in USD$ Millions.
10 Inception Date is 2/21/2018

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.

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.

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.

Depositary receipts may be less liquid than the underlying shares in their primary trading market and distributions may be subject to a fee. Holders may have limited voting rights, and investment restrictions in certain countries may adversely impact their value.

Investments in emerging market securities are generally considered speculative and involve additional risks relating to political, economic and regulatory conditions.

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.

An index fund will be concentrated in an industry or a group of industries to the extent that the index is so concentrated. A fund with significant exposure to a single asset class, or the securities of issuers within the same country, state, region, industry, or sector may have its value more affected by an adverse economic, business or political development than a broadly diversified fund.

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.

There is no assurance that the index provider or its agents will compile or maintain the index accurately. Losses or costs associated with any index provider errors generally will be borne by a fund and its shareholders.

Industrials and producer durables companies are subject to certain risks, including the general state of the economy, intense competition, consolidation, domestic and international politics, excess capacity and consumer demand and spending trends. They may also be significantly affected by overall capital spending levels, economic cycles, technical obsolescence, delays in modernization, labor relations, and government regulations.

Information technology companies are subject to certain risks, including rapidly changing technologies, short product life cycles, fierce competition, aggressive pricing and reduced profit margins, loss of patent, copyright and trademark protections, cyclical market patterns, evolving industry standards and regulation and frequent new product introductions.

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.

An index fund's return may not match the return of the index for a number of reasons including operating expenses, costs of buying and selling securities to reflect changes in the index, and the fact that a fund's portfolio holdings may not exactly replicate the index.

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.

A fund that invests in securities included in or representative of an index will hold those securities regardless of investment merit and the fund generally will not take defensive positions in declining markets.

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.

Robotics and artificial intelligence companies tend to be more volatile and they may have limited product lines, markets, financial resources or personnel and are subject to the risks of changes in business cycles, world economic growth, technological progress, costs of research and development, and government regulation. These companies are also heavily dependent on intellectual property rights, and challenges to or misappropriation of such rights could have a material adverse effect on such companies.

Securities of small- and mid-capitalization companies may experience greater price volatility and be less liquid than larger, more established companies.

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.

Nasdaq® and Nasdaq CTA Artificial Intelligence and Robotics Index℠ are registered trademarks and service marks of Nasdaq, Inc. (together with its affiliates hereinafter referred to as the “Corporations”) and are licensed for use by First Trust. The Fund has not been passed on by the Corporations as to its legality or suitability. The Fund is not issued, endorsed, sold or promoted by the Corporations. THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE FUND.

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)
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