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First Trust Nasdaq Artificial Intelligence and Robotics ETF (ROBT)
  • 2018 Estimated Capital Gain Distributions
    Certain First Trust Exchange-Traded Funds are expected to pay a long-term capital gain distribution in December. For a list of exchange-traded funds expected to pay a long-term capital gain distribution, please click here. Short-term capital gain distributions, if any, are expected to be nominal and are taxed like ordinary income. 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 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 Nasdaq CTA Artificial Intelligence and Robotics IndexSM 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 12/13/2018)
Closing NAV1$27.30
Closing Share Price2$27.44
Bid/Ask Midpoint$27.36
Bid/Ask Premium0.20%
Total Net Assets$32,759,320
Outstanding Shares1,200,002
Daily Volume8,405
Average 30-Day Daily Volume12,903
Closing Share Price 52-Week High/Low$32.78 / $26.98
Closing NAV 52-Week High/Low$32.66 / $26.96
Number of Holdings92
Fund Characteristics (as of 11/30/2018)6
Maximum Market Cap.$851,216
Median Market Cap.$7,178
Minimum Market Cap.$114
Price/Earnings22.79
Price/Book3.36
Price/Cash Flow16.87
Price/Sales2.46
Top Holdings (as of 12/14/2018)
Holding Percent
Xilinx, Inc. 2.75%
TOTVS S.A. 2.70%
Ciena Corporation 2.64%
QinetiQ Group Plc 2.44%
Ambarella, Inc. 2.37%
Elbit Systems Ltd. 2.30%
Garmin Ltd. 2.30%
ServiceNow, Inc. 2.23%
Illumina, Inc. 2.22%
Cadence Design Systems, Inc. 2.21%

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 12/17/2018)3$0.0115
30-Day SEC Yield (as of 11/30/2018)41.00%
Index Yield (as of 11/30/2018)51.74%
Bid/Ask Midpoint vs. NAV (as of 9/30/2018)
Number of Days Bid/Ask Midpoint Above NAV
Quarter Ended 0-49
Basis Points
50-99
Basis Points
100-199
Basis Points
>=200
Basis Points
9/30/2018 61 0 0 0
6/30/2018 63 1 0 0
3/31/2018 26 0 0 0
Number of Days Bid/Ask Midpoint Below NAV
Quarter Ended 0-49
Basis Points
50-99
Basis Points
100-199
Basis Points
>=200
Basis Points
9/30/2018 0 1 1 0
6/30/2018 0 0 0 0
3/31/2018 0 0 0 0

The price used to calculate market return is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange, on which shares of the Fund are listed for trading, as of the time that the Fund's NAV is calculated.

Top Country Exposure (as of 12/14/2018)
Country Percent
United States 50.63%
Japan 15.77%
United Kingdom 7.75%
Switzerland 3.11%
Sweden 2.96%
Canada 2.89%
Brazil 2.71%
Cayman Islands 2.37%
Israel 2.30%
France 2.10%
Top Sector Exposure (as of 12/14/2018)
Information Technology 60.82%
Industrials 16.20%
Consumer Discretionary 10.62%
Health Care 8.93%
Communication Services 2.93%
Real Estate 0.50%
Month End Performance (as of 11/30/2018)
  3 Mos YTD 1 Year 3 Year 5 Year 10 Year Since
Fund
Inception7
Fund Performance *
Net Asset Value (NAV) -11.53% N/A N/A N/A N/A N/A -3.76%
After Tax Held -11.55% N/A N/A N/A N/A N/A -3.92%
After Tax Sold -6.53% N/A N/A N/A N/A N/A -2.13%
Market Price -11.63% N/A N/A N/A N/A N/A -3.70%
Index Performance **
Nasdaq CTA Artificial Intelligence & Robotics Index -11.56% N/A N/A N/A N/A N/A -3.41%
S&P 500 Index -4.40% N/A N/A N/A N/A N/A 3.75%
Quarter End Performance (as of 9/28/2018)
  3 Mos YTD 1 Year 3 Year 5 Year 10 Year Since
Fund
Inception7
Fund Performance *
Net Asset Value (NAV) 10.08% N/A N/A N/A N/A N/A 8.15%
After Tax Held 10.06% N/A N/A N/A N/A N/A 7.98%
After Tax Sold 5.70% N/A N/A N/A N/A N/A 4.60%
Market Price 9.96% N/A N/A N/A N/A N/A 8.21%
Index Performance **
Nasdaq CTA Artificial Intelligence & Robotics Index 10.33% N/A N/A N/A N/A N/A 8.58%
S&P 500 Index 7.71% N/A N/A N/A N/A N/A 9.14%

*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 based on the midpoint of the bid/ask spread on the stock exchange on which shares of the fund are listed for trading 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 & Robotics 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 stocks 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 share 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 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.
4 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.
5 Index yield represents the weighted average trailing 12-month dividend of the constituents of the Nasdaq CTA Artificial Intelligence & Robotics Index.
6 All market capitalization numbers are in USD$ Millions.
7 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.

ETF Characteristics

The fund lists and principally trades its shares on The Nasdaq Stock Market LLC.

The fund's return may not match the return of the Nasdaq CTA Artificial Intelligence & Robotics Index.  Securities held by the 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 the fund by authorized participants, in very large creation/redemption units. If the 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 the fund's net asset value and possibly face delisting.

Risk Considerations

The fund's shares will change in value, and you could lose money by investing in the fund. One of the principal risks of investing in the fund is market risk. Market risk is the risk that a particular security owned by the fund, fund shares or securities in general may fall in value. There can be no assurance that the fund's investment objective will be achieved.

The fund may invest in securities issued by companies concentrated in a particular industry, sector or country which involves additional risks including limited diversification. The fund may invest in small capitalization and mid capitalization companies. Such companies may experience greater price volatility than larger, more established companies.

If the fund has lower average daily trading volumes, it may rely on a small number of third-party market makers to provide a market for the purchase and sale of shares.

An investment in a fund containing securities of non-U.S. issuers is 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. The fund may invest in depositary receipts which may be less liquid than the underlying shares in their primary trading market. Changes in currency exchange rates and the relative value of non-U.S. currencies will affect the value of the fund's investment and the value of fund shares.

The fund currently has fewer assets than larger funds, and like other relatively new funds, large inflows and outflows may impact the fund's market exposure for limited periods of time.

The fund invests in robotics and artificial intelligence companies, which 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.

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.

The fund is classified as "non-diversified" and may invest a relatively high percentage of its assets in a limited number of issuers. As a result, the 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.

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 IndexSM are registered trademarks and service marks of Nasdaq, Inc. (which with its affiliates is referred to as the "Corporations") and are licensed for use by First Trust Advisors L.P. 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 and the Internal Revenue Code. First Trust has no knowledge of and has not been provided any information regarding any investor. Financial advisors must determine whether particular investments are appropriate for their clients. First Trust believes the financial advisor is a fiduciary, is capable of evaluating investment risks independently and is responsible for exercising independent judgment with respect to its retirement plan clients.
First Trust Portfolios L.P.  Member SIPC and FINRA.
First Trust Advisors L.P.
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