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First Trust NASDAQ Global Auto Index Fund (CARZ)
  • 2020 Estimated Capital Gain Distributions
    Certain First Trust Exchange-Traded Funds are expected to pay a short term and/or long-term capital gain distribution in December. For a list of exchange-traded funds expected to pay a 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 NASDAQ Global Auto Index 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 the Fund's fees and expenses, of an equity index called the NASDAQ OMX Global Auto Index.
There can be no assurance that the Fund's investment objectives will be achieved.
  • The index is a modified market-capitalization weighted index that includes securities of companies that are classified as an Automobile Manufacturer.
  • To be included in the index, a security must meet the following criteria:
    • listed on an index-eligible global stock exchange,
    • have a minimum worldwide market capitalization of at least $500 million,
    • have a minimum three-month average daily dollar trading volume of $1 million.
  • The index employs a modified market cap weighting methodology in which larger companies receive a larger index weighting. The index weighting methodology includes caps to prevent high concentrations among larger stocks.
  • The index is reconstituted annually and rebalanced quarterly.
Fund Overview
TickerCARZ
Fund TypeInternational Equity
Investment AdvisorFirst Trust Advisors L.P.
Investor Servicing AgentBank of New York Mellon
CUSIP33734X309
ISINUS33734X3098
Intraday NAVCARZIV
Fiscal Year-End09/30
ExchangeNasdaq
Inception5/9/2011
Inception Price$29.88
Inception NAV$29.88
Rebalance FrequencyQuarterly
Expense Ratio0.70%
Current Fund Data (as of 11/20/2020)
Closing NAV1$47.98
Closing Market Price2$48.37
Bid/Ask Midpoint$48.39
Bid/Ask Premium0.84%
30-Day Median Bid/Ask Spread30.84%
Total Net Assets$38,380,742
Outstanding Shares800,002
Daily Volume8,378
Average 30-Day Daily Volume13,463
Closing Market Price 52-Week High/Low$48.37 / $20.68
Closing NAV 52-Week High/Low$47.98 / $20.68
Number of Holdings (excluding cash)33
Top Holdings (as of 11/20/2020)*
Holding Percent
Daimler AG 8.45%
Honda Motor Co., Ltd. 7.30%
Volkswagen AG (Preference Shares) 7.07%
Toyota Motor Corporation 7.03%
Tesla, Inc. 6.43%
BYD Company Limited (Class H) 6.03%
General Motors Company 4.76%
Kia Motors Corporation 4.65%
Geely Automobile Holdings Limited 4.61%
Ford Motor Company 4.20%

* 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 11/24/2020)4$0.0428
30-Day SEC Yield (as of 10/30/2020)50.60%
12-Month Distribution Rate (as of 10/30/2020)61.14%
Index Yield (as of 10/30/2020)72.42%
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 10/30/2020)8
Maximum Market Cap.$367,823
Median Market Cap.$13,972
Minimum Market Cap.$617
Price/Earnings20.27
Price/Book0.77
Price/Cash Flow6.98
Price/Sales0.41
Top Country Exposure (as of 11/20/2020)
Country Percent
Japan 29.94%
Germany 23.13%
United States 17.27%
China 11.22%
South Korea 8.18%
Hong Kong 5.72%
France 2.83%
Singapore 0.57%
United Kingdom 0.53%
Taiwan 0.43%
Bid/Ask Premium/Discount (as of 11/20/2020)
  2019 Q1 2020 Q2 2020 Q3 2020
Days Traded at Premium 119 24 35 43
Days Traded at Discount 133 38 28 21
Month End Performance (as of 10/30/2020)
  3 Month YTD 1 Year 3 Year 5 Year 10 Year Since
Fund
Inception9
Fund Performance *
Net Asset Value (NAV) 19.16% 16.89% 18.42% 0.61% 3.83% N/A 4.76%
After Tax Held 19.11% 16.67% 17.77% -0.33% 2.81% N/A 4.02%
After Tax Sold 11.34% 9.98% 10.84% 0.02% 2.45% N/A 3.39%
Market Price 19.27% 17.48% 18.88% 0.56% 3.86% N/A 4.78%
Index Performance **
NASDAQ OMX Global Automobile IndexSM 18.08% 17.51% 19.24% 1.40% 4.52% N/A 5.71%
MSCI World Index -0.16% -1.42% 4.36% 5.96% 8.13% N/A 7.83%
Quarter End Performance (as of 9/30/2020)
  3 Month YTD 1 Year 3 Year 5 Year 10 Year Since
Fund
Inception9
Fund Performance *
Net Asset Value (NAV) 25.91% 15.47% 23.33% 1.24% 5.55% N/A 4.67%
After Tax Held 25.86% 15.25% 22.66% 0.29% 4.52% N/A 3.92%
After Tax Sold 15.34% 9.14% 13.75% 0.51% 3.80% N/A 3.31%
Market Price 26.51% 16.08% 23.25% 1.23% 5.56% N/A 4.69%
Index Performance **
NASDAQ OMX Global Automobile IndexSM 26.16% 16.55% 24.71% 2.21% 6.58% N/A 5.67%
MSCI World Index 7.93% 1.70% 10.41% 7.74% 10.48% N/A 8.26%
3-Year Statistics (as of 10/30/2020)
  Standard Deviation Alpha Beta Sharpe Ratio Correlation
CARZ 25.57% -5.08 1.31 0.08 0.87
MSCI World Index 17.05% --- 1.00 0.32 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.

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 OMX Global Automobile IndexSM 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 World Index - The Index is a free float-adjusted market capitalization-weighted index that is designed to measure the equity market performance of 23 developed markets around the world.

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 NASDAQ OMX Global Automobile Index(SM).
8 All market capitalization numbers are in USD$ Millions.
9 Inception Date is 5/9/2011

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 OMX Global Automobile IndexSM.  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 small capitalization and mid capitalization companies. Such companies may experience greater price volatility than larger, more established companies.

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. The fund may invest in depositary receipts which may be less liquid than the underlying shares in their primary trading market.

The fund invests in consumer discretionary companies. The success of consumer discretionary companies is tied closely to the performance of the overall domestic and international economies, interest rates, competition, consumer confidence, disposable household income and consumer spending. Changes in demographics and consumer tastes can also affect the demand for, and success of, consumer discretionary products.

The automotive industry can be highly cyclical, and companies in the industry may suffer periodic operating losses. The industry can be significantly affected by labor relations and fluctuating component prices. While most of the major automotive manufacturers are large companies, others may be non-diversified in both product line and customer base and may be more vulnerable to events that negatively impact the industry.

The fund invests in the stock of companies operating in Japan. Because Japan's economy and equity market share a strong correlation with the U.S. markets, the Japanese economy may be affected by economic problems in the U.S. Japan also has a growing economic relationship with China and other Southeast Asian countries. Should political tension increase, it could adversely affect the economy and destabilize the region as a whole. Japanese securities may also be subject to lack of liquidity, excessive taxation, government seizure of assets, different legal or accounting standards and less government supervision and regulation of exchanges than in the U.S.

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

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® ,OMX®, NASDAQ OMX®, and NASDAQ OMX Global Auto 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. 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, 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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