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First Trust Indxx Metaverse ETF (ARVR)
Investment Objective/Strategy - The First Trust Indxx Metaverse ETF (the "Fund") seeks investment results that correspond generally to the price and yield, before fees and expenses, of an equity index called the Indxx Metaverse Index (the "Index"). Under normal market conditions, the Fund will invest at least 80% of its net assets (plus any borrowings for investment purposes) in the common stocks and depositary receipts that comprise the Index.
There can be no assurance that the Fund's investment objectives will be achieved.
  • The index begins with a universe of common stocks and depositary receipts issued by U.S. and non-U.S. Metaverse companies listed in a developed or emerging market, as defined by the index provider.*
  • To be eligible for the index, a security must meet the following criteria:
    • Minimum market capitalization of $1 billion;
    • Six-month average daily turnover value of greater than or equal to $5 million;
    • Minimum free float of 10% of shares outstanding in order to meet the index provider's market capitalization and liquidity requirements.
  • All eligible companies considered for inclusion in the index must be involved in business activities associated with the following sub-themes:
    • Internet Protocol (IP) and Contents
    • Platforms
    • Payment
    • Optics & Display
    • Semiconductor, Hardware and 5G
  • Only companies that derive at least 50% of revenues from, or devote 50% of assets to, one of the Metaverse sub-themes will be eligible for inclusion in the index.
  • A total of 50 will be selected based on market capitalization and equally weighted.
    • Each company with a market capitalization less than $10 billion will have its weight halved, with the remaining weight equally allocated among other components in the index.
  • The index is rebalanced quarterly and reconstituted semi-annually.
*Depositary receipts issued by Chinese companies are not eligible for inclusion in the index. The index does include non-Chinese variable interest entities (“VIEs”) in order to gain exposure to Chinese companies.

Fund Overview
Fund TypeTechnology
Investment AdvisorFirst Trust Advisors L.P.
Investor Servicing AgentBank of New York Mellon Corp
Fiscal Year-End09/30
Inception Price$30.21
Inception NAV$30.21
Rebalance FrequencyQuarterly
Expense Ratio0.70%
Current Fund Data (as of 5/20/2022)
Closing NAV1$27.52
Closing Market Price2$27.58
Bid/Ask Midpoint$27.59
Bid/Ask Premium0.25%
30-Day Median Bid/Ask Spread30.22%
Total Net Assets$2,751,991
Outstanding Shares100,002
Daily Volume0
Closing Market Price 52-Week High/Low$30.21 / $26.00
Closing NAV 52-Week High/Low$30.21 / $25.93
Number of Holdings (excluding cash)38
Top Holdings (as of 5/20/2022)*
Holding Percent
Electronic Arts Inc. 3.82%
NetEase, Inc. 3.74%
Nexon Co., Ltd. 3.68%
STMicroelectronics NV 3.64%
Sunny Optical Technology (Group) Company Limited 3.59%
Microchip Technology Incorporated 3.56%
Texas Instruments Incorporated 3.49%
QUALCOMM Incorporated 3.44%
Synopsys, Inc. 3.43%
Amphenol Corporation 3.41%

* Excluding cash.  Holdings are subject to change.

NAV History (Since Inception)
Past performance is not indicative of future results.
Fund Characteristics (as of 4/29/2022)4
Maximum Market Cap.$2,551,594
Median Market Cap.$37,370
Minimum Market Cap.$1,254
Price/Cash Flow12.98
Top Country Exposure (as of 5/20/2022)
Country Percent
United States 58.15%
Japan 19.21%
China 10.46%
Taiwan 4.53%
Switzerland 3.64%
France 1.75%
Ireland 1.19%
South Korea 1.07%
Bid/Ask Premium/Discount (as of 5/20/2022)
  2021 Q1 2022 Q2 2022 Q3 2022
Days Traded at Premium --- --- 18 ---
Days Traded at Discount --- --- 5 ---
Top Industry Exposure (as of 5/20/2022)
Entertainment 32.24%
Semiconductors & Semiconductor Equipment 29.81%
Software 11.35%
Electronic Equipment, Instruments & Components 8.26%
Interactive Media & Services 6.82%
Technology Hardware, Storage & Peripherals 6.05%
Household Durables 3.25%
IT Services 1.19%
Aerospace & Defense 1.03%
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) N/A N/A N/A N/A N/A N/A -7.18%
After Tax Held N/A N/A N/A N/A N/A N/A -7.18%
After Tax Sold N/A N/A N/A N/A N/A N/A -4.25%
Market Price N/A N/A N/A N/A N/A N/A -7.28%
Index Performance **
Indxx Metaverse Index N/A N/A N/A N/A N/A N/A -7.17%
MSCI ACWI Index N/A N/A N/A N/A N/A N/A -5.79%
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) N/A N/A N/A N/A N/A N/A N/A
After Tax Held N/A N/A N/A N/A N/A N/A N/A
After Tax Sold N/A N/A N/A N/A N/A N/A N/A
Market Price N/A N/A N/A N/A N/A N/A N/A
Index Performance **
Indxx Metaverse Index N/A N/A N/A N/A N/A N/A N/A

*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 Indxx Metaverse 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.

MSCI ACWI Index - The Index is a free float-adjusted market capitalization-weighted index that is designed to measure the equity market performance of developed and emerging markets.

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 All market capitalization numbers are in USD$ Millions.
5 Inception Date is 4/19/2022

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. 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 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.

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.

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.

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.

Information technology companies and communication services companies are subject to certain risks, which may include 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. Communications services companies are particularly vulnerable to domestic and international government regulation, rely heavily on intellectual property rights, and may be adversely affected by the loss or impairment of those rights.

Large capitalization companies may grow at a slower rate than the overall market.

Large inflows and outflows may impact a new fund's market exposure for limited periods of time.

Metaverse is a new and developing technology, the consequences of which have not been fully explored. The risks associated with the Metaverse may not emerge until the technology is widely used. The risks may include, but not be limited to, small or limited markets for their securities, changes in business cycles, world economic growth, technological progress, rapid obsolescence, fierce competition, loss of patent, copyright, trademark and trade secret protection and government regulation. Metaverse companies, especially smaller, start-up companies, tend to be more volatile than securities of companies that do not rely heavily on technology. There is no guarantee that the products or services produced by companies in Metaverse-related businesses will be successful.

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, lack of liquidity, lack of adequate financial information, and exchange control restrictions impacting non-U.S. issuers. Investments in emerging markets securities issued by governments in emerging countries and by companies located in, or having significant operations in emerging countries are generally considered speculative and involve additional risks relating to political, economic and regulatory conditions. In China, direct ownership of companies in certain sectors by foreign individuals and entities is prohibited. In order to allow for foreign investment in these businesses, many Chinese companies have created VIE structures to enable indirect foreign ownership. This arrangement allows U.S. investors, such as the Fund, to obtain economic exposure to the Chinese issuer or operating company through contractual means rather than through formal equity ownership. Although VIEs are a longstanding industry practice and well known to officials and regulators in China, VIEs are not formally recognized under Chinese law. Intervention by the Chinese government with respect to VIEs could significantly affect the Chinese company’s performance and the enforceability of the VIE’s contractual arrangements that establish the links between the Chinese company and the shell company in which the Fund invests.

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.

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.

Indxx and Indxx Metaverse Index (“Index”) are trademarks of Indxx, LLC (“Indxx”) and have been licensed for use for certain purposes by First Trust. The Fund is not sponsored, endorsed, sold or promoted by Indxx and Indxx makes no representation regarding the advisability of trading in such product. The Index is determined, composed and calculated by Indxx without regard to First Trust or 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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