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
Fund TypeTechnology
Investment AdvisorFirst Trust Advisors L.P.
Investor Servicing AgentBrown Brothers Harriman
Fiscal Year-End09/30
Inception Price$29.91
Inception NAV$29.91
Rebalance FrequencyQuarterly
Expense Ratio0.65%
Current Fund Data (as of 5/17/2022)
Closing NAV1$40.24
Closing Market Price2$39.78
Bid/Ask Midpoint$40.22
Bid/Ask Discount0.06%
30-Day Median Bid/Ask Spread (as of 5/16/2022)30.12%
Total Net Assets$207,225,588
Outstanding Shares5,150,002
Daily Volume27,481
Average 30-Day Daily Volume31,460
Closing Market Price 52-Week High/Low$57.97 / $37.14
Closing NAV 52-Week High/Low$57.86 / $37.19
Number of Holdings (excluding cash)113
Top Holdings (as of 5/17/2022)*
Holding Percent
AeroVironment, Inc. 2.66%
QinetiQ Group Plc 2.65%
Topcon Corporation 2.57%
Elbit Systems Ltd. 2.36%
Gentex Corporation 2.31%
Trimble Inc. 2.23%
Cadence Design Systems, Inc. 2.18%
OBIC Co., Ltd. 2.15%
Synopsys, Inc. 2.09%
PKSHA Technology Inc. 2.06%

* 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 5/18/2022)4$0.0054
30-Day SEC Yield (as of 4/29/2022)50.12%
12-Month Distribution Rate (as of 4/29/2022)60.09%
Index Yield (as of 4/29/2022)70.79%
Fund Characteristics (as of 4/29/2022)9
Maximum Market Cap.$2,075,581
Median Market Cap.$13,357
Minimum Market Cap.$247
Price/Cash Flow17.40
Top Country Exposure (as of 5/17/2022)
Country Percent
United States 49.60%
Japan 15.41%
France 6.13%
United Kingdom 5.03%
Israel 4.35%
Canada 2.90%
Sweden 2.00%
South Korea 1.83%
China 1.68%
Norway 1.36%
Bid/Ask Premium/Discount (as of 5/17/2022)
  2021 Q1 2022 Q2 2022 Q3 2022
Days Traded at Premium 222 27 10 ---
Days Traded at Discount 30 35 22 ---
Top Sector Exposure (as of 5/17/2022)
Information Technology 57.15%
Industrials 22.05%
Consumer Discretionary 11.17%
Health Care 6.48%
Communication Services 2.54%
Real Estate 0.38%
Consumer Staples 0.23%
Hypothetical Growth of $10,000 Since Inception (as of 5/16/2022) *
Tracking Index: Nasdaq CTA Artificial Intelligence and Robotics IndexSM

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) -16.06% -25.09% -21.69% 7.33% N/A N/A 8.24%
After Tax Held -16.06% -25.09% -21.71% 7.23% N/A N/A 8.13%
After Tax Sold -9.51% -14.85% -12.84% 5.63% N/A N/A 6.40%
Market Price -16.34% -25.41% -22.04% 7.11% N/A N/A 8.15%
Index Performance **
Nasdaq CTA Artificial Intelligence and Robotics IndexSM -15.16% -24.65% -20.98% 8.23% N/A N/A 9.08%
S&P 500 Index -8.17% -12.92% 0.21% 13.85% N/A N/A 12.65%
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) -14.20% -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 4/29/2022)
  Standard Deviation Alpha Beta Sharpe Ratio Correlation
ROBT 24.52% -6.86 1.15 0.38 0.88
S&P 500 Index 18.66% --- 1.00 0.75 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 the Nasdaq CTA Artificial Intelligence and Robotics IndexSM 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.

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

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 stock owned by a fund, fund shares or stocks 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.

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.

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.

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.

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, 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.

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.

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

Robotics and artificial intelligence companies 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, 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 robotics and artificial intelligence companies tend to be more volatile than securities of companies that rely less heavily on technology. Robotics and artificial intelligence companies typically engage in significant amounts of spending on research and development, and rapid changes to the field could have a material adverse effect on a company's operating results.

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.

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.

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