First Trust SMID Cap Rising Dividend Achievers ETF (SDVY)
  • 2021 Estimated Capital Gain Distributions
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Investment Objective/Strategy - The First Trust SMID Cap Rising Dividend Achievers ETF, seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of an index called the Nasdaq US Small Mid Cap Rising Dividend Achievers™ Index (the "Index"). The Fund will normally invest at least 90% of its net assets (including investment borrowings) in securities that comprise the Index. The Index is composed of the securities of 100 small and mid cap companies with a history of raising their dividends and exhibit the characteristics to continue to do so in the future ("Index Securities"). The Index is designed to provide access to a portfolio of small and mid capitalization income producing securities.
There can be no assurance that the Fund's investment objectives will be achieved.
  • The index begins with the stocks in the Nasdaq US Mid Cap Index and the Nasdaq US Small Cap Index and eliminates those companies classified as a Real Estate Investment Trust by the Industry Classification Benchmark.
  • To be eligible for inclusion in the index, companies must have:
    • a minimum three-month average daily dollar trading volume of $2 million.
    • a minimum market cap of $500 million.
    • paid a dividend in the trailing twelve-month period greater than the dividend paid in the trailing twelve-month period three and five years prior.
    • positive earnings per share in the most recent fiscal year greater than the earnings per share three fiscal years prior.
    • a cash to debt ratio greater than 25%.
    • a trailing twelve-month period payout ratio no greater than 65%.
  • Eligible securities are ranked by a combined factor of dollar dividend increase over the previous five year period, current dividend yield, and payout ratio.
  • The 100 eligible securities with the lowest aggregated rank are selected for inclusion in the index, subject to a maximum of 30% from any one sector and 75% from the mid cap or small cap size classification.
  • The index stocks are equally weighted initially and on each rebalancing effective date. The index is reconstituted annually and rebalanced quarterly.
Fund Overview
TickerSDVY
Fund TypeSmall Cap and Mid Cap Equity
Investment AdvisorFirst Trust Advisors L.P.
Investor Servicing AgentBrown Brothers Harriman
CUSIP33741X102
ISINUS33741X1028
Intraday NAVSDVYIV
Fiscal Year-End09/30
ExchangeNasdaq
Inception11/1/2017
Inception Price$19.94
Inception NAV$19.94
Rebalance FrequencyQuarterly
Expense Ratio0.60%
Current Fund Data (as of 12/2/2021)
Closing NAV1$29.38
Closing Market Price2$29.35
Bid/Ask Midpoint$29.39
Bid/Ask Premium0.02%
30-Day Median Bid/Ask Spread30.10%
Total Net Assets$362,864,807
Outstanding Shares12,350,002
Daily Volume198,222
Average 30-Day Daily Volume145,922
Closing Market Price 52-Week High/Low$30.81 / $22.22
Closing NAV 52-Week High/Low$30.79 / $22.23
Number of Holdings (excluding cash)99
Top Holdings (as of 12/2/2021)*
Holding Percent
Tetra Tech, Inc. 1.28%
Boise Cascade Company 1.27%
UFP Industries Inc. 1.23%
A.O. Smith Corporation 1.22%
Kforce Inc. 1.21%
Signature Bank 1.20%
Wintrust Financial Corporation 1.18%
Advanced Drainage Systems, Inc. 1.15%
Carlisle Companies Incorporated 1.15%
Entegris, Inc. 1.14%

* Excluding cash.  Holdings are subject to change.

NAV History (Since Inception)
Past performance is not indicative of future results.
Overall Morningstar RatingTM (as of 10/31/2021)4

Among 392 funds in the Mid-Cap Value category. This fund was rated 4 stars/392 funds (3 years) based on risk adjusted returns.
Distribution Information
Dividend per Share Amt (as of 12/3/2021)5$0.0809
30-Day SEC Yield (as of 10/29/2021)61.15%
12-Month Distribution Rate (as of 10/29/2021)71.15%
Index Yield (as of 10/29/2021)82.06%
Fund Characteristics (as of 11/30/2021)10
Maximum Market Cap.$21,687
Median Market Cap.$6,570
Minimum Market Cap.$1,045
Price/Earnings11.09
Price/Book2.05
Price/Cash Flow8.65
Price/Sales1.16
Bid/Ask Premium/Discount (as of 12/2/2021)
  2020 Q1 2021 Q2 2021 Q3 2021
Days Traded at Premium 195 54 60 48
Days Traded at Discount 58 7 3 16
Top Sector Exposure (as of 12/2/2021)
Financials 31.71%
Industrials 27.69%
Consumer Discretionary 15.16%
Information Technology 13.12%
Materials 5.04%
Consumer Staples 3.84%
Communication Services 1.82%
Utilities 0.85%
Energy 0.77%
Hypothetical Growth of $10,000 Since Inception (as of 12/2/2021) *
Tracking Index: Nasdaq US Small Mid Cap Rising Dividend Achievers™ Index

Month End Performance (as of 10/29/2021)
  3 Month YTD 1 Year 3 Year 5 Year 10 Year Since
Fund
Inception11
Fund Performance *
Net Asset Value (NAV) 1.70% 25.03% 58.74% 16.70% N/A N/A 11.90%
After Tax Held 1.59% 24.66% 57.92% 15.92% N/A N/A 11.21%
After Tax Sold 1.01% 14.81% 34.73% 12.72% N/A N/A 9.02%
Market Price 1.77% 25.06% 58.77% 16.70% N/A N/A 11.92%
Index Performance **
Nasdaq US Small Mid Cap Rising Dividend Achievers™ Index 1.86% 25.75% 59.94% 17.41% N/A N/A 12.60%
S&P 1000 Index 3.44% 22.85% 51.76% 16.38% N/A N/A 12.84%
Quarter End Performance (as of 9/30/2021)
  3 Month YTD 1 Year 3 Year 5 Year 10 Year Since
Fund
Inception11
Fund Performance *
Net Asset Value (NAV) -2.37% 20.19% 56.77% 11.77% N/A N/A 11.05%
After Tax Held -2.49% 19.83% 55.96% 11.02% N/A N/A 10.35%
After Tax Sold -1.40% 11.95% 33.57% 8.79% N/A N/A 8.32%
Market Price -2.40% 20.30% 56.90% 11.82% N/A N/A 11.09%
Index Performance **
Nasdaq US Small Mid Cap Rising Dividend Achievers™ Index -2.25% 20.79% 57.92% 12.43% N/A N/A 11.74%
S&P 1000 Index -2.10% 16.86% 47.66% 10.57% N/A N/A 11.70%
3-Year Statistics (as of 10/29/2021)
  Standard Deviation Alpha Beta Sharpe Ratio Correlation
SDVY 26.27% -0.70 1.10 0.68 0.99
S&P 1000 Index 23.58% --- 1.00 0.71 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 US Small Mid Cap Rising Dividend Achievers™ 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 1000 Index - The Index combines the S&P MidCap 400 Index and the S&P SmallCap 600 Index to form an investable benchmark for the mid- to small-cap segment of the U.S. equity market.

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
The Morningstar RatingTM for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The Morningstar Rating does not include any adjustment for sales loads. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.
5 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.
6 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.
7 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.
8 Index yield represents the weighted average trailing 12-month dividend of the constituents of the Nasdaq US Small Mid Cap Rising Dividend Achievers(TM) Index.
9 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.
10 All market capitalization numbers are in USD$ Millions.
11 Inception Date is 11/1/2017

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. The outbreak of the respiratory disease designated as COVID-19 in December 2019 has caused significant volatility and declines in global financial markets, which have caused losses for investors. While the development of vaccines has slowed the spread of the virus and allowed for the resumption of "reasonably" normal business activity in the United States, many countries continue to impose lockdown measures in an attempt to slow the spread. Additionally, there is no guarantee that vaccines will be effective against emerging variants of the disease.

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.

A fund's investment in dividend-paying securities may cause a fund to underperform similar funds that do not consider an issuer's track record of paying dividends.

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.

As inflation increases, the present value of the fund's assets and distributions may decline.

There can be no assurance that the securities held by a fund will stay within a fund's intended market capitalization range.

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.

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 US Small Mid Cap Rising Dividend Achievers™ 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.

©2021 Morningstar, Inc. All Rights Reserved. The Morningstar RatingTM information contained herein: (1) is proprietary to Morningstar;(2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

Not FDIC Insured • Not Bank Guaranteed • May Lose Value