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First Trust RBA American Industrial Renaissance® ETF (AIRR)
Investment Objective/Strategy - 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 Richard Bernstein Advisors American Industrial Renaissance® Index (the "Index"). The Fund will normally invest at least 90% of its net assets (plus the amount of any borrowings for investment purposes) in U.S. equity securities that comprise the Index. The Index is designed to measure the performance of small and mid cap U.S. companies in the industrial and community banking sectors.
There can be no assurance that the Fund's investment objectives will be achieved.
  • The Richard Bernstein Advisors American Industrial Renaissance® Index is designed to measure the performance of small and mid cap U.S. companies in the industrial and community banking sectors.
  • To construct the index, Richard Bernstein Advisors LLC (RBA) begins with the Russell 2500 Index and eliminates companies not directly related to manufacturing and related infrastructure, and banking.
  • Banks will then be chosen from states considered to be traditional manufacturing hubs.
  • Bank stocks will be limited to approximately 10% of the index at rebalance.
  • RBA screens to exclude companies with non-U.S. sales greater than or equal to 25% and for positive 12-month forward earnings estimates.
  • RBA uses a proprietary portfolio optimization method to weight each individual constituent company. No position will exceed approximately 4% of the total index at rebalance. Other criteria:
    • $6 minimum share price
    • $200 million minimum market cap
    • Liquidity of at least $500k trading volume on average each day
  • At each quarter the index is rebalanced such that each segment of the index will be capped at its predetermined weight. If at any time during the year other than the rebalancing date, a security no longer meets the eligibility criteria, or is otherwise determined to have become ineligible for inclusion in the index, the security is removed from the index and is not replaced.
Fund Overview
TickerAIRR
Fund TypeIndustrials
Investment AdvisorFirst Trust Advisors L.P.
Investor Servicing AgentBrown Brothers Harriman
CUSIP33738R704
ISINUS33738R7044
Intraday NAVAIRRIV
Fiscal Year-End09/30
ExchangeNasdaq
Inception3/10/2014
Inception Price$19.98
Inception NAV$19.98
Rebalance FrequencyQuarterly
Expense Ratio0.70%
Current Fund Data (as of 10/21/2021)
Closing NAV1$43.11
Closing Market Price2$43.18
Bid/Ask Midpoint$43.10
Bid/Ask Discount0.03%
30-Day Median Bid/Ask Spread30.14%
Total Net Assets$234,957,454
Outstanding Shares5,450,002
Daily Volume14,465
Average 30-Day Daily Volume28,344
Closing Market Price 52-Week High/Low$43.18 / $26.32
Closing NAV 52-Week High/Low$43.11 / $26.31
Number of Holdings (excluding cash)58
Top Holdings (as of 10/21/2021)*
Holding Percent
Evoqua Water Technologies Corp. 3.13%
APi Group Corporation 3.11%
Oshkosh Corporation 3.09%
Clean Harbors, Inc. 3.07%
Hubbell Incorporated 3.07%
Mueller Water Products, Inc. 3.07%
Comfort Systems USA, Inc. 3.06%
RBC Bearings Incorporated 3.06%
SPX Corporation 3.05%
Encore Wire Corporation 3.04%

* 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 10/24/2021)4$0.0023
30-Day SEC Yield (as of 9/30/2021)50.13%
12-Month Distribution Rate (as of 9/30/2021)60.06%
Index Yield (as of 9/30/2021)70.81%
Fund Characteristics (as of 9/30/2021)9
Maximum Market Cap.$15,838
Median Market Cap.$1,774
Minimum Market Cap.$234
Price/Earnings18.69
Price/Book2.24
Price/Cash Flow12.47
Price/Sales1.13
Bid/Ask Premium/Discount (as of 10/21/2021)
  2020 Q1 2021 Q2 2021 Q3 2021
Days Traded at Premium 143 41 41 29
Days Traded at Discount 110 20 22 35
Top Industry Exposure (as of 10/21/2021)
Industrials 90.14%
Financials 9.86%
Hypothetical Growth of $10,000 Since Inception (as of 10/21/2021) *
Tracking Index: Richard Bernstein Advisors American Industrial Renaissance® Index

Month End Performance (as of 9/30/2021)
  3 Month YTD 1 Year 3 Year 5 Year 10 Year Since
Fund
Inception10
Fund Performance *
Net Asset Value (NAV) -0.22% 20.67% 59.15% 13.71% 15.04% N/A 10.21%
After Tax Held -0.22% 20.66% 59.10% 13.63% 14.94% N/A 10.08%
After Tax Sold -0.13% 12.23% 35.01% 10.70% 12.08% N/A 8.22%
Market Price -0.12% 20.50% 59.30% 13.72% 15.06% N/A 10.22%
Index Performance **
Richard Bernstein Advisors American Industrial Renaissance® Index -0.03% 21.33% 60.34% 14.51% 15.87% N/A 11.05%
S&P 500 Industrials Index -4.22% 11.48% 28.96% 9.83% 12.50% N/A 10.49%
Russell 2500® Index -2.68% 13.83% 45.03% 12.47% 14.25% N/A 10.77%
S&P 500 Index 0.58% 15.92% 30.00% 15.99% 16.90% N/A 13.82%
Quarter End Performance (as of 9/30/2021)
  3 Month YTD 1 Year 3 Year 5 Year 10 Year Since
Fund
Inception10
Fund Performance *
Net Asset Value (NAV) -0.22% 20.67% 59.15% 13.71% 15.04% N/A 10.21%
After Tax Held -0.22% 20.66% 59.10% 13.63% 14.94% N/A 10.08%
After Tax Sold -0.13% 12.23% 35.01% 10.70% 12.08% N/A 8.22%
Market Price -0.12% 20.50% 59.30% 13.72% 15.06% N/A 10.22%
Index Performance **
Richard Bernstein Advisors American Industrial Renaissance® Index -0.03% 21.33% 60.34% 14.51% 15.87% N/A 11.05%
S&P 500 Industrials Index -4.22% 11.48% 28.96% 9.83% 12.50% N/A 10.49%
Russell 2500® Index -2.68% 13.83% 45.03% 12.47% 14.25% N/A 10.77%
S&P 500 Index 0.58% 15.92% 30.00% 15.99% 16.90% N/A 13.82%
3-Year Statistics (as of 9/30/2021)
  Standard Deviation Alpha Beta Sharpe Ratio Correlation
AIRR 27.09% 1.08 1.05 0.57 0.95
S&P 500 Industrials Index 24.06% -1.20 0.90 0.46 0.92
Russell 2500® Index 24.59% --- 1.00 0.55 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 Richard Bernstein Advisors American Industrial Renaissance® 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 Industrials Index - The Index is an unmanaged index which includes the stocks in the industrials sector of the S&P 500 Index.

Russell 2500® Index - The Index is an unmanaged market-cap weighted index that includes the smallest 2,500 companies from the Russell 3000 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 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 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.
7 Index yield represents the weighted average trailing 12-month dividend of the constituents of the Richard Bernstein Advisors American Industrial Renaissance® Index.
8 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.
9 All market capitalization numbers are in USD$ Millions.
10 Inception Date is 3/10/2014

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.

Community banks were significantly impacted by the decline in the subprime mortgage lending market in the U.S. which brought about legislative and regulatory changes, changes in short-term and long-term interest rates, inflation and changes in government monetary and fiscal policies. Unlike larger national or other regional banks that are more geographically diversified, a community bank's financial performance may be highly dependent upon the business environment in certain geographic regions of the U.S. and may be adversely impacted by any downturn or unfavorable economic or employment developments in its local market and the U.S. as a whole

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 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.

Industrials and producer durables companies are subject to certain risks, including the general state of the economy, intense competition, consolidation, domestic and international politics, excess capacity and consumer demand and spending trends. They may also be significantly affected by overall capital spending levels, economic cycles, technical obsolescence, delays in modernization, labor relations, and government regulations.

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.

Richard Bernstein Advisors and Richard Bernstein Advisors American Industrial Renaissance® Index (“Index”) are trademarks and trade names of Richard Bernstein Advisors (“RBA”). The Fund is not sponsored, endorsed, sold or promoted by RBA and RBA makes no representation or warranty, express or implied, to the owners of the Fund or any member of the public regarding the advisability of trading in the Fund. RBA’s only relationship to First Trust is the licensing of certain trademarks and trade names of RBA and of the Index, which is determined, composed and calculated by RBA without regard to First Trust or the Fund. RBA has no obligation to take the needs of First Trust or the owners of the Fund into consideration in determining, composing or calculating the Index. RBA is not responsible for and has not participated in the determination of the timing of, prices at, or quantities of the Fund to be listed or in the determination or calculation of the equation by which the Fund is to be converted into cash. RBA has no obligation or liability in connection with the administration, marketing or trading of 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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