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First Trust Multi Cap Value AlphaDEX® Fund (FAB)
Investment Objective/Strategy - The First Trust Multi Cap Value AlphaDEX® Fund is an exchange-traded fund. The investment objective of the Fund is to seek investment results that correspond generally to the price and yield, before fees and expenses, of an equity index called the NASDAQ AlphaDEX® Multi Cap Value Index.
There can be no assurance that the Fund's investment objectives will be achieved.
  • The NASDAQ AlphaDEX® Multi Cap Value Index is an "enhanced" index created and administered by Nasdaq, Inc. ("Nasdaq") which employs the AlphaDEX® stock selection methodology to select stocks that meet certain criteria from the three indices – NASDAQ US 500 Large Cap Index, NASDAQ US 600 Mid Cap Index and NASDAQ US 700 Small Cap Index.
  • Nasdaq constructs the NASDAQ AlphaDEX® Multi Cap Value Index by ranking the eligible stocks within each index on growth factors including 3-, 6- and 12- month price appreciation, sales to price and one year sales growth, and separately on value factors including book value to price, cash flow to price and return on assets. All stocks are ranked on the sum of ranks for the growth factors and, separately, all stocks are ranked on the sum of ranks for the value factors. A stock must have data for all growth and/or value factors to receive a rank for that style.
  • Each stock receives either its growth or value score as its selection score based on its style designation as determined by Nasdaq.
  • The top 187 stocks from the NASDAQ US 500 Large Cap Value Index, 225 stocks from the NASDAQ US 600 Mid Cap Value Index and 262 stocks from the NASDAQ US 700 Small Cap Value Index based on the selection score determined in the previous step comprise the "selected stocks".
  • The selected stocks are divided into quintiles based on their rankings within their size class and the top ranked quintiles receive a higher weight within the index.
  • The NASDAQ AlphaDEX® Multi Cap Value Index is comprised of the selected stocks in the following weights: the stocks selected from the NASDAQ US 500 Large Cap Value Index comprise 50%, the stocks selected from the NASDAQ US 600 Mid Cap Value Index comprise 30%, and the stocks selected from the NASDAQ US 700 Small Cap Value Index comprise 20%.
  • The index is reconstituted and rebalanced quarterly.
Fund Overview
TickerFAB
Fund TypeMulti Cap Value
Investment AdvisorFirst Trust Advisors L.P.
Investor Servicing AgentBank of New York Mellon
CUSIP33733C108
ISINUS33733C1080
Intraday NAVFABIV
Fiscal Year-End07/31
ExchangeNasdaq
Inception5/8/2007
Inception Price$30.00
Inception NAV$30.00
Rebalance FrequencyQuarterly
Gross Expense Ratio*0.74%
Net Expense Ratio*0.71%
* As of 12/2/2019
Expenses are capped contractually at 0.70% per year, at least until November 30, 2020. The fund may have net expenses greater than the expense cap as a result of any acquired fund fees and expenses or other expenses that are excluded from the calculation. Please refer to the fund's current prospectus for a complete description of fees and expenses.
Current Fund Data (as of 10/21/2020)
Closing NAV1$49.51
Closing Market Price2$49.55
Bid/Ask Midpoint$49.50
Bid/Ask Discount0.02%
30-Day Median Bid/Ask Spread (as of 10/20/2020)30.21%
Total Net Assets$51,988,912
Outstanding Shares1,050,002
Daily Volume1,853
Average 30-Day Daily Volume3,300
Closing Market Price 52-Week High/Low$58.35 / $30.62
Closing NAV 52-Week High/Low$58.41 / $30.84
Number of Holdings (excluding cash)674
Top Holdings (as of 10/21/2020)*
Holding Percent
General Motors Company 0.51%
Exelon Corporation 0.50%
Western Digital Corporation 0.49%
Franklin Resources, Inc. 0.48%
Micron Technology, Inc. 0.48%
Anthem, Inc. 0.47%
Evergy, Inc. 0.47%
The Hartford Financial Services Group, Inc. 0.47%
Archer-Daniels-Midland Company 0.46%
Citizens Financial Group, Inc. 0.46%

* 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 10/22/2020)4$0.2376
30-Day SEC Yield (as of 9/30/2020)51.84%
Unsubsidized 30-Day SEC Yield (as of 9/30/2020)61.76%
12-Month Distribution Rate (as of 9/30/2020)72.04%
Index Yield (as of 9/30/2020)83.46%
For funds with certain equity strategies, due to the negative economic impact across many industries caused by the recent COVID-19 outbreak, certain of the issuers of the securities included in the fund may elect to reduce the amount of dividends and/or distributions paid in the future. As a result, the "12-Month Distribution Rate," which is based on the fund's trailing 12-month ordinary distributions, will likely be higher, and in some cases significantly higher, than the actual 12-month distribution rate achieved by the fund.
Fund Characteristics (as of 9/30/2020)9
Maximum Market Cap.$508,935
Median Market Cap.$3,055
Minimum Market Cap.$165
Price/Earnings12.71
Price/Book1.08
Price/Cash Flow7.09
Price/Sales0.79
Bid/Ask Premium/Discount (as of 10/21/2020)
  2019 Q1 2020 Q2 2020 Q3 2020
Days Traded at Premium 85 26 31 35
Days Traded at Discount 167 36 32 29
Top Sector Exposure (as of 10/21/2020)
Financials 29.64%
Industrials 14.97%
Utilities 10.09%
Consumer Discretionary 9.33%
Information Technology 6.18%
Materials 6.15%
Real Estate 5.39%
Health Care 5.31%
Consumer Staples 4.88%
Energy 4.04%
Communication Services 4.02%
Month End Performance (as of 9/30/2020)
  3 Month YTD 1 Year 3 Year 5 Year 10 Year Since
Fund
Inception10
Fund Performance *
Net Asset Value (NAV) 2.12% -18.45% -10.42% -2.74% 4.59% 7.82% 4.94%
After Tax Held 1.91% -18.91% -11.15% -3.48% 3.84% 7.15% 4.32%
After Tax Sold 1.26% -10.94% -6.16% -2.35% 3.24% 6.03% 3.67%
Market Price 2.24% -18.47% -10.44% -2.74% 4.51% 7.81% 4.93%
Index Performance **
Nasdaq AlphaDEX® Multi Cap Value Index 2.32% -17.99% -9.73% -2.02% N/A N/A N/A
S&P Composite 1500 Index 8.56% 4.13% 13.42% 11.34% 13.59% 13.46% 8.35%
Nasdaq US Multi Cap Value Index 5.15% -10.93% -1.62% 3.62% N/A N/A N/A
S&P Composite 1500 Value Index 4.55% -12.29% -3.78% 3.52% 8.51% 10.22% 5.16%
Quarter End Performance (as of 9/30/2020)
  3 Month YTD 1 Year 3 Year 5 Year 10 Year Since
Fund
Inception10
Fund Performance *
Net Asset Value (NAV) 2.12% -18.45% -10.42% -2.74% 4.59% 7.82% 4.94%
After Tax Held 1.91% -18.91% -11.15% -3.48% 3.84% 7.15% 4.32%
After Tax Sold 1.26% -10.94% -6.16% -2.35% 3.24% 6.03% 3.67%
Market Price 2.24% -18.47% -10.44% -2.74% 4.51% 7.81% 4.93%
Index Performance **
Nasdaq AlphaDEX® Multi Cap Value Index 2.32% -17.99% -9.73% -2.02% N/A N/A N/A
S&P Composite 1500 Index 8.56% 4.13% 13.42% 11.34% 13.59% 13.46% 8.35%
Nasdaq US Multi Cap Value Index 5.15% -10.93% -1.62% 3.62% N/A N/A N/A
S&P Composite 1500 Value Index 4.55% -12.29% -3.78% 3.52% 8.51% 10.22% 5.16%
3-Year Statistics (as of 9/30/2020)
  Standard Deviation Alpha Beta Sharpe Ratio Correlation
FAB 26.17% -5.67 1.36 -0.04 0.97
S&P Composite 1500 Index 18.07% 7.39 0.94 0.58 0.97
S&P Composite 1500 Value Index 18.67% --- 1.00 0.18 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 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. The fund's performance reflects fee waivers and expense reimbursements, absent which performance would have been lower.

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 AlphaDEX® Multi Cap Value 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.

On April 8, 2016, the fund's underlying index changed from the Defined Multi Cap Value Index to the NASDAQ AlphaDEX® Multi Cap Value Index. Therefore, the fund's performance and historical returns shown for the periods prior to this date are not necessarily indicative of the performance that the fund, based on its current index, would have generated.

S&P Composite 1500 Index - The Index is an unmanaged index representing the large cap, mid cap and small cap segments of the U.S. equity market.

Nasdaq US Multi Cap Value Index - The Index is a float modified market capitalization weighted index that contains the top 50% of securities with the strongest value-oriented composite score from the Nasdaq US Select Index Family.

S&P Composite 1500 Value Index - The Index contains those securities with value characteristics from the S&P 1500 Index.

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 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 The unsubsidized 30-day SEC yield is calculated the same as the 30-day SEC yield, however it excludes contractual fee waivers and expense reimbursements.
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 AlphaDEX® Multi Cap Value Index.
9 All market capitalization numbers are in USD$ Millions.
10 Inception Date is 5/8/2007

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 AlphaDEX® Multi Cap Value 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 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. The COVID-19 pandemic may last for an extended period of time, and will continue to impact the economy for the foreseeable future.

The fund may invest in securities issued by companies concentrated in a particular industry. The fund may invest in small capitalization and mid capitalization companies. Such companies may experience greater price volatility than larger, more established companies.

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 AlphaDEX® Multi Cap Value 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. AlphaDEX® is a registered trademark owned by First Trust that has been licensed to Nasdaq, Inc. for use in the name of the Index. 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.

"AlphaDEX®" is a registered trademark of First Trust Portfolios L.P. First Trust Portfolios L.P. has obtained a patent for the AlphaDEX® stock selection methodology from the United States Patent and Trademark Office.

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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