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First Trust Dow 30 Equal Weight ETF (EDOW)
  • 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.
  • Reorganization
    On November 9, 2020 at a Special Meeting of Shareholders, the shareholders of First Trust Mega Cap AlphaDEX® Fund (Nasdaq: FMK), an index based exchange-traded fund (“ETF”), managed by First Trust Advisors L.P. (“FTA”), and First Trust Dow 30 Equal Weight ETF (NYSE Arca: EDOW), an index based ETF managed by FTA, have approved the reorganization of FMK into EDOW. Subject to the satisfaction of certain customary closing conditions, the reorganizations of FMK into EDOW is expected to close by the end of 2020. No assurance can be given as to the exact timing of the closing of the transaction. Upon the completion of the reorganization, which is expected to be tax-free, the assets of FMK will be transferred to, and the liabilities of FMK will be assumed by, EDOW. The shareholders of FMK will receive shares of EDOW with value equal to the aggregate net asset value of the shares of FMK held by them. More information can be found here.
Investment Objective/Strategy - The First Trust Dow 30 Equal Weight ETF seeks investment results that correspond generally to the price and yield (before fees and expenses) of an equity index called the Dow Jones Industrial Average Equal Weight Index (the "Index"). The Fund will normally invest at least 90% of its net assets (including investment borrowings) in common stocks that comprise the Index. The Fund, using an "indexing" investment approach, attempts to replicate, before fees and expenses, the performance of the Index. The Fund's investment advisor seeks a correlation of 0.95 or better (before fees and expenses) between the Fund's performance and the performance of the Index; a figure of 1.00 would represent perfect correlation.
There can be no assurance that the Fund's investment objectives will be achieved.
  • The Dow Jones Industrial Average Equal Weight Index (the "DJIA Equal Weight Index") is an equally weighted index designed to be a price neutral version of the price-weighted Dow Jones Industrial AverageTM ("DJIA").
  • The 30 securities comprising the DJIA are U.S. blue-chip companies covering a wide range of industries and have the following attributes
    • Companies with an excellent reputation.
    • Companies which demonstrate sustained growth.
    • Companies which are of interest to a large number of market participants.
    • Companies which derive a majority of revenues from the U.S.
  • The DJIA Equal Weight Index gives equal exposure to all 30 constituents. The same weight, or importance, is given to each stock in the index, allowing for the performance of lower priced companies to contribute as much as the higher priced companies within the index.
  • To maintain the equal weight focus, the index is rebalanced quarterly (except when there is a component change, in which case the index is rebalanced at the end of the month during which the change takes place).
Fund Overview
TickerEDOW
Fund TypeLarge Cap Equity
Investment AdvisorFirst Trust Advisors L.P.
Investor Servicing AgentBank of New York Mellon
CUSIP33733A201
ISINUS33733A2015
Intraday NAVEDOWIV
Fiscal Year-End12/31
ExchangeNYSE Arca
Inception8/8/2017
Inception Price$19.97
Inception NAV$19.97
Rebalance FrequencyQuarterly
Expense Ratio0.50%
Current Fund Data (as of 11/23/2020)
Closing NAV1$26.24
Closing Market Price2$26.23
Bid/Ask Midpoint$26.25
Bid/Ask Premium0.04%
30-Day Median Bid/Ask Spread30.24%
Total Net Assets$45,914,318
Outstanding Shares1,750,002
Daily Volume10,734
Average 30-Day Daily Volume27,734
Closing Market Price 52-Week High/Low$26.63 / $17.65
Closing NAV 52-Week High/Low$26.64 / $17.53
Number of Holdings (excluding cash)30
Top Holdings (as of 11/23/2020)*
Holding Percent
The Boeing Company 4.09%
Honeywell International Inc. 3.81%
The Travelers Companies, Inc. 3.68%
Chevron Corporation 3.63%
JPMorgan Chase & Co. 3.61%
The Goldman Sachs Group, Inc. 3.53%
Caterpillar Inc. 3.52%
NIKE, Inc. (Class B) 3.52%
American Express Company 3.48%
Dow Inc. 3.47%

* Excluding cash.  Holdings are subject to change.

NAV History (Since Inception)
Past performance is not indicative of future results.
Overall Morningstar RatingTM (as of 10/31/2020)4

Among 1,124 funds in the Large Value category. This fund was rated 5 stars/1,124 funds (3 years) based on risk adjusted returns.
Distribution Information
Dividend per Share Amt (as of 11/25/2020)5$0.1524
30-Day SEC Yield (as of 10/30/2020)62.20%
12-Month Distribution Rate (as of 10/30/2020)72.41%
Index Yield (as of 10/30/2020)82.79%
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)9
Maximum Market Cap.$1,850,816
Median Market Cap.$184,982
Minimum Market Cap.$29,476
Price/Earnings19.92
Price/Book3.11
Price/Cash Flow14.22
Price/Sales1.67
Bid/Ask Premium/Discount (as of 11/23/2020)
  2019 Q1 2020 Q2 2020 Q3 2020
Days Traded at Premium 157 17 40 28
Days Traded at Discount 95 45 23 36
Top Sector Exposure (as of 11/23/2020)
Information Technology 22.10%
Industrials 14.73%
Financials 14.36%
Consumer Staples 13.16%
Health Care 12.27%
Consumer Discretionary 9.68%
Communication Services 6.58%
Energy 3.64%
Materials 3.48%
Month End Performance (as of 10/30/2020)
  3 Month YTD 1 Year 3 Year 5 Year 10 Year Since
Fund
Inception10
Fund Performance *
Net Asset Value (NAV) -0.87% -9.27% -3.78% 5.64% N/A N/A 6.91%
After Tax Held -1.12% -9.96% -4.71% 4.76% N/A N/A 6.05%
After Tax Sold -0.51% -5.51% -2.24% 3.96% N/A N/A 4.97%
Market Price -0.74% -9.20% -3.74% 5.63% N/A N/A 6.92%
Index Performance **
Dow Jones Industrial Average Equal Weight Index -0.71% -8.53% -2.91% 6.35% N/A N/A 7.60%
Dow Jones Industrial Average™ 0.80% -5.38% 0.34% 6.74% N/A N/A 8.30%
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) 5.30% -4.98% 1.76% 8.53% N/A N/A 8.69%
After Tax Held 5.03% -5.70% 0.77% 7.63% N/A N/A 7.79%
After Tax Sold 3.14% -2.98% 1.01% 6.20% N/A N/A 6.33%
Market Price 5.34% -4.94% 1.80% 8.53% N/A N/A 8.69%
Index Performance **
Dow Jones Industrial Average Equal Weight Index 5.44% -4.25% 2.70% 9.26% N/A N/A 9.39%
Dow Jones Industrial Average™ 8.22% -0.91% 5.70% 9.98% N/A N/A 10.14%
3-Year Statistics (as of 10/30/2020)
  Standard Deviation Alpha Beta Sharpe Ratio Correlation
EDOW 16.62% -0.75 0.92 0.30 0.99
Dow Jones Industrial Average™ 17.87% --- 1.00 0.35 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 Dow Jones Industrial Average Equal Weight 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.

Dow Jones Industrial Average™ - The Index is a price-weighted average of 30 U.S. blue-chip companies.

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
The Morningstar RatingTM for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The Morningstar Rating does not include any adjustment for sales loads. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.
5 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.
6 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.
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 Dow Jones Industrial Average Equal Weight Index.
9 All market capitalization numbers are in USD$ Millions.
10 Inception Date is 8/8/2017

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 NYSE Arca, Inc.

The fund's return may not match the return of the Dow Jones Industrial Average Equal Weight 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 which involves additional risks including limited diversification.

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.

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. Such events could cause the fund to incur regulatory penalties, reputational damage, additional compliance costs associated with corrective measures and/or financial loss.

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.

Dow Jones Industrial Average® Equal Weight Index (“Index”) is a product of S&P Dow Jones Indices LLC or its affiliates (“SPDJI”) and has been licensed for use by First Trust. Standard & Poor’s® and S&P® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by First Trust. The Fund is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, or their respective affiliates and none of such parties make any representation regarding the advisability of investing in such product nor do they have any liability for any errors, omissions, or interruptions of the Index.

©2020 Morningstar, Inc. All Rights Reserved. The Morningstar RatingTM information contained herein: (1) is proprietary to Morningstar;(2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

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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