First Trust AQA® Equity Fund (AQAAX)
  • 2018 Estimated Capital Gain Distributions
    Certain First Trust Open-End Funds are expected to pay a long-term capital gain distribution in December. For a list of open-end funds expected to pay a long-term capital gain distribution, please click here. Final determination of the source and tax status of all distributions paid in the current year are to be made after year-end and could differ from the expectations noted above.
Investment Objective/Strategy - The First Trust AQA® Equity Fund seeks capital appreciation by investing, under normal market conditions, at least 80% of its net assets (including investment borrowings) in equity securities (specifically, common stocks) of U.S. companies.
There can be no assurance that the Fund's investment objectives will be achieved. The Fund may not be appropriate for all investors.
Fund Overview
Fund TypeAll-Cap Value
Investment AdvisorFirst Trust Advisors L.P.
Portfolio Manager/Sub-AdvisorJ.J.B. Hilliard, W.L. Lyons, LLC
Share ClassClass A
Fiscal Year-End10/31
Inception Date11/10/2015
Minimum Investment Amount$2,500
Minimum Subsequent Investment Amount$50
Maximum Initial Sales Charge5.50%
Gross Expense Ratio*1.91%
Net Expense Ratio*1.60%
* As of 7/2/2018
Pursuant to contract, First Trust has agreed to waive fees and/or pay fund expenses to prevent the net expense ratio of any class of shares of the fund from exceeding 1.35% per year, excluding 12b-1 distribution and service fees, acquired fund fees and expenses and certain other expenses as described in the prospectus, through 2/28/2019, and to not exceed 1.70% per year from 3/01/2019 through 2/28/2028. Net expense ratio shown above includes 12b-1 service fees, acquired fund fees and certain other expenses as described in the prospectus.
Current Fund Data (as of 12/14/2018)
Net Asset Value1$24.73
Total Net Assets$43,246,936
Outstanding Shares945,908
NAV 52-Week High/Low$30.96 / $24.73
Top 10 Issuers (as of 11/30/2018)4
Holding Percent
ABIOMED, Inc. 5.83%
BJ's Restaurants, Inc. 4.44%
MSCI, Inc. 4.16%
Trex Co., Inc. 4.03%
Monolithic Power Systems, Inc. 3.63%
HCA Healthcare, Inc. 3.60%
Cognex Corp. 3.50%
Callaway Golf Co. 3.27%
Dave & Buster's Entertainment, Inc. 3.22%
Masimo Corp. 3.13%
Fund Characteristics (as of 11/30/2018)3,4
Maximum Market Cap.$404,083
Median Market Cap.$4,267
Minimum Market Cap.$408
Price/Cash Flow10.46
NAV History (Since Inception)
Past performance is not indicative of future results.
Distribution Information
Dividend FrequencyAnnual
Dividend per Share Amt (as of 12/15/2018)2$0.7585
Industry Breakdown (as of 11/30/2018)4
Industry Percent
Hotels, Restaurants & Leisure 13.08%
Health Care Equipment & Supplies 12.04%
Semiconductors & Semiconductor Equipment 9.68%
Capital Markets 8.52%
Electronic Equipment, Instruments & Components 6.01%
Building Products 4.03%
Textiles, Apparel & Luxury Goods 4.01%
Communications Equipment 3.84%
IT Services 3.82%
Health Care Providers & Services 3.60%
Leisure Products 3.27%
Paper & Forest Products 3.15%
Airlines 2.98%
Diversified Telecommunication 2.97%
Road & Rail 2.83%
Software 2.68%
Machinery 2.32%
Biotechnology 2.25%
Pharmaceuticals 2.13%
Tobacco 2.04%
Internet Software & Services 1.91%
Thrifts & Mortgage Finance 1.48%
Household Durables 1.36%
Month End Performance (as of 11/30/2018)
  3 Mos YTD 1 Year 3 Year 5 Year 10 Year Since
Fund Performance *
Without Sales Charge -14.21% -5.58% -5.69% 10.67% N/A N/A 11.10%
With Sales Charge -18.93% -10.77% -10.88% 8.60% N/A N/A 9.06%
Index Performance **
Russell 3000® Value Index -2.73% 1.33% 2.62% 9.85% N/A N/A 9.62%
Russell 3000® Index -5.35% 4.48% 5.53% 11.80% N/A N/A 11.63%
Quarter End Performance (as of 9/28/2018)
  3 Mos YTD 1 Year 3 Year 5 Year 10 Year Since
Fund Performance *
Without Sales Charge 4.56% 7.64% 17.69% N/A N/A N/A 16.97%
With Sales Charge -1.19% 1.72% 11.22% N/A N/A N/A 14.70%
Index Performance **
Russell 3000® Value Index 5.39% 4.17% 9.46% N/A N/A N/A 11.27%
Russell 3000® Index 7.12% 10.57% 17.58% N/A N/A N/A 14.57%

*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. Returns are average annualized total returns, except those for periods of less than one year, which are cumulative.

**Indexes are unmanaged and an investor cannot invest directly in an index.

The Russell 3000® Value Index is an unmanaged index comprised of companies in the Russell 3000® Index with lower price-to-book values and lower forecasted growth rates.

The Russell 3000® Index is comprised of the 3000 largest and most liquid stocks based and traded in the U.S.

1 The NAV represents the fund's net assets (assets less liabilities) divided by the fund's outstanding shares .
2 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.
3 All market capitalization numbers are in USD$ Millions.
4 Market value information used in calculating the percentages is based upon trade date plus one recording of transactions, which can differ from regulatory financial reports (Forms N-CSR and N-Q) that are based on trade date recording of security transactions. Holdings are subject to change.
5 Inception Date is 11/10/2015

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.

The Fund is subject to the following risks:

You could lose money by investing in the Fund. There can be no assurance that the Fund will achieve its investment objectives. A mutual fund's share price and investment return will vary with market conditions, and the principal value of an investment when you sell your shares may be more or less than the original cost.

CONSUMER DISCRETIONARY COMPANIES RISK. Consumer discretionary companies provide non-essential goods and services, such as retailers, media companies and consumer services. These companies manufacture products and provide discretionary services directly to the consumer, and the success of these companies is tied closely to the performance of the overall domestic and international economy, interest rates, competition and consumer confidence. Success depends heavily on disposable household income and consumer spending. Changes in demographics and consumer tastes can also affect the demand for, and success of, consumer discretionary products in the marketplace.

CYBER SECURITY RISK. As the use of Internet technology has become more prevalent in the course of business, the Fund has become more susceptible to potential operational risks through breaches in cyber security. A breach in cyber security refers to both intentional and unintentional events that may cause the Fund to lose proprietary information, suffer data corruption or lose operational capacity. Such events could cause the Fund to incur regulatory penalties, reputational damage, additional compliance costs associated with corrective measures and/or financial loss. Cyber security breaches may involve unauthorized access to the Fund's digital information systems through "hacking" or malicious software coding, but may also result from outside attacks such as denial-of-service attacks through efforts to make network services unavailable to intended users. In addition, cyber security breaches of the Fund's third party service providers, such as its administrator, transfer agent, custodian, or sub-advisor, as applicable, or issuers in which the Fund invests, can also subject the Fund to many of the same risks associated with direct cyber security breaches. The Fund has established risk management systems designed to reduce the risks associated with cyber security. However, there is no guarantee that such efforts will succeed, especially because the Fund does not directly control the cyber security systems of issuers or third party service providers.

EQUITY SECURITIES RISK. Because the Fund invests in equity securities, the value of the Fund's 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, such as market volatility, or when political or economic events affecting the issuers occur. In addition, common stock prices may be particularly sensitive to rising interest rates, as the cost of capital rises and borrowing costs increase.

INDUSTRIALS AND PRODUCER DURABLES COMPANIES RISK. Industrials companies convert unfinished goods into finished durables used to manufacture other goods or provide services. Some industrials companies are involved in electrical equipment and components, industrial products, manufactured housing and telecommunications equipment. General risks of industrials companies include the general state of the economy, intense competition, consolidation, domestic and international politics, excess capacity and consumer demand and spending trends. In addition, they may also be significantly affected by overall capital spending levels, economic cycles, technical obsolescence, delays in modernization, labor relations, government regulations and e-commerce initiatives.

INFORMATION TECHNOLOGY COMPANIES RISK. Information technology companies are generally subject to the following risks: rapidly changing technologies; short product life cycles; fierce competition; aggressive pricing and reduced profit margins; the loss of patent, copyright and trademark protections; cyclical market patterns; evolving industry standards; and frequent new product introductions. Information technology companies may be smaller and less experienced companies, with limited product lines, markets or financial resources and fewer experienced management or marketing personnel. Information technology company stocks, particularly those that are Internet related, have experienced extreme price and volume fluctuations that are often unrelated to their operating performance.

INVESTMENT STRATEGY RISK. In selecting securities for the Fund's portfolio, the Fund's portfolio managers employ a quantitative strategy that utilizes screens in an attempt to identify undervalued securities. There is no guarantee that this strategy will be successful in identifying such securities or that the intrinsic value of such securities will ever be recognized by the market. Companies that may be perceived as undervalued may fail to appreciate for long periods of time and may never realize their full potential value. Additionally, the screens utilized by the strategy may limit the number of investment opportunities available to the Fund and could cause the Fund to invest a relatively high percentage of its assets in a limited number of issuers. Such screens may cause the Fund to underperform funds with broader investable universes, or the market as a whole, and could make the Fund more susceptible to a single adverse economic or regulatory occurrence than other more diversified funds.

LIQUIDITY RISK. The Fund invests in equity securities that may have limited liquidity despite being listed on a securities exchange. Equity securities that are less liquid or that trade less can be more difficult or more costly to buy, or to sell, compared to other more liquid or active investments. This liquidity risk is a factor of the trading volume of a particular security, as well as the size and liquidity of the market for such security. The prices at which the equity securities are held in the Fund will be adversely affected if trading markets for the equity securities are limited or absent.

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. Securities are subject to market fluctuations caused by such factors as economic, political, regulatory or market developments, changes in interest rates and perceived trends in securities prices. Shares of the Fund could decline in value or underperform other investments.

MODEL RISK. The Fund relies heavily on a proprietary quantitative model that uses information and data supplied by third parties. When the model and data prove to be incorrect or incomplete, any decisions made in reliance thereon expose the Fund to potential risks.

SMALL FUND RISK. The Fund currently has fewer assets than larger funds, and like other smaller funds, large inflows and outflows may impact the Fund's market exposure for limited periods of time. This impact may be positive or negative, depending on the direction of market movement during the period affected.

SMALLER COMPANIES RISK. The Fund invests in small- and/or mid-capitalization companies. Such companies may be more vulnerable to adverse general market or economic developments, and their securities may be less liquid and may experience greater price volatility than larger, more established companies as a result of several factors, including limited trading volumes, products or financial resources, management inexperience and less publicly available information. Accordingly, such companies are generally subject to greater market risk than larger, more established companies.

AQA® is a registered trademark of J.J.B. Hilliard, W.L. Lyons, L.L.C.

Not FDIC Insured • Not Bank Guaranteed • May Lose Value