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First Trust Nasdaq Lux Digital Health Solutions ETF (EKG)
  • 2022 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 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.

  • On October 24th, 2022, the Board of Trustees of First Trust's ETFs approved a management fee breakpoint policy that will make all ETFs in the complex eligible for a reduction in the management fee charged on assets that exceed certain AUM thresholds. The goal of this policy is to offer reductions in management fees paid by shareholders of larger First Trust ETFs through a process that is transparent and understandable for all investors.
    Effective November 1st, 2022, the management fee paid by any First Trust ETF with assets exceeding $2.5 Billion will decrease, with larger and increased reductions for assets above $5 Billion, $7.5 Billion, $10 Billion and $15 Billion.

    Full details of the policy and additional breakpoint levels can be seen in each fund’s Statement of Additional Information.
Investment Objective/Strategy - The First Trust Nasdaq Lux Digital Health Solutions ETF (the "Fund") seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of an equity index called the Nasdaq Lux Health Tech Index (the "Index"). The Fund will normally invest at least 80% of its net assets (plus any borrowings for investment purposes) in the common stocks and depositary receipts that comprise the Index.
There can be no assurance that the Fund's investment objectives will be achieved.
Index Description According to the Index Provider
  • The Nasdaq Lux Health Tech Index (the "index") is designed to measure the performance of a selection of companies that are primarily engaged in and involved at the intersection of healthcare and technology ("Digital Health Companies"). The index begins with a universe of common stocks and depositary receipts of companies listed on an index-eligible global stock exchange by issuers classified by Lux Capital as Digital Health Companies.
  • Each security must have a minimum free float market capitalization of $500 million and a 3-month average daily trading volume of at least $3 million.
  • In order to remain in the index, companies must have at least 7% revenue growth in one of the two preceding years or a market capitalization of at least $50 billion.
    • Companies added to the index during reconstitutions must have annual revenue growth of at least 10% in each of the two preceding full fiscal years.
  • Securities selected for the index are weighted according to a modified market capitalization methodology.
    • Under this methodology, the weighting of each security is determined by dividing its free float market capitalization by the aggregate free float market capitalization of all the securities in the index subject to a maximum weighting of 8%.
    • These weights are maintained for the five securities with the largest free float market capitalization, and all other securities in the index are subject to a maximum weighting of 4%.
    • No security may be weighted above 8% and only five securities may exceed 4%.
  • The index is rebalanced and reconstituted semi-annually.
Fund Overview
TickerEKG
Fund TypeHealth Care
Investment AdvisorFirst Trust Advisors L.P.
Investor Servicing AgentBank of New York Mellon Corp
CUSIP33719L106
ISINUS33719L1061
Intraday NAVEKGIV
Fiscal Year-End09/30
ExchangeNasdaq
Inception3/22/2022
Inception Price$20.44
Inception NAV$20.44
Rebalance FrequencySemi-Annual
Expense Ratio*0.65%
* As of 3/23/2022
The Investment Advisor has implemented fee breakpoints, which reduce the fund's investment management fee at certain assets levels. Please see the fund's SAI for full details.
Current Fund Data (as of 12/2/2022)
Closing NAV1$16.96
Closing Market Price2$16.97
Bid/Ask Midpoint$16.97
Bid/Ask Premium0.06%
30-Day Median Bid/Ask Spread30.39%
Total Net Assets$847,864
Outstanding Shares50,002
Daily Volume100
Average 30-Day Daily Volume173
Closing Market Price 52-Week High/Low$21.56 / $13.56
Closing NAV 52-Week High/Low$21.55 / $13.56
Number of Holdings (excluding cash)53
Top Holdings (as of 12/1/2022)*
Holding Percent
DexCom, Inc. 10.39%
Intuitive Surgical, Inc. 9.64%
Illumina, Inc. 7.91%
ResMed Inc. 7.54%
IQVIA Holdings Inc. 7.51%
ABIOMED, Inc. 5.28%
Insulet Corporation 4.38%
Hologic, Inc. 4.12%
QIAGEN N.V. 4.02%
Veeva Systems Inc. (Class A) 3.46%

* Excluding cash.  Holdings are subject to change.

NAV History (Since Inception)
Past performance is not indicative of future results.
Fund Characteristics (as of 11/30/2022)4
Maximum Market Cap.$95,552
Median Market Cap.$2,431
Minimum Market Cap.$225
Price/Earnings40.49
Price/Book5.06
Price/Cash Flow31.05
Price/Sales5.87
Top Country Exposure (as of 12/1/2022)
Country Percent
United States 95.40%
The Netherlands 4.02%
Costa Rica 0.58%
Bid/Ask Premium/Discount (as of 12/2/2022)
  2021 Q1 2022 Q2 2022 Q3 2022
Days Traded at Premium --- 7 62 63
Days Traded at Discount --- 0 0 1
Top Industry Exposure (as of 12/1/2022)
Medical Equipment and Services 67.12%
Health Care Providers 16.91%
Pharmaceuticals and Biotechnology 15.42%
Software and Computer Services 0.55%
Hypothetical Growth of $10,000 Since Inception (as of 12/1/2022) *
Tracking Index: Nasdaq Lux Health Tech Index

Month End Performance (as of 10/31/2022)
  3 Month YTD 1 Year 3 Year 5 Year 10 Year Since
Fund
Inception5
Fund Performance *
Net Asset Value (NAV) -4.15% N/A N/A N/A N/A N/A -22.02%
After Tax Held -4.15% N/A N/A N/A N/A N/A -22.02%
After Tax Sold -2.46% N/A N/A N/A N/A N/A -13.03%
Market Price -4.15% N/A N/A N/A N/A N/A -21.97%
Index Performance **
Nasdaq Lux Health Tech Index -3.99% N/A N/A N/A N/A N/A -21.76%
S&P Composite 1500 Health Care Index 0.19% N/A N/A N/A N/A N/A -2.58%
Quarter End Performance (as of 9/30/2022)
  3 Month YTD 1 Year 3 Year 5 Year 10 Year Since
Fund
Inception5
Fund Performance *
Net Asset Value (NAV) -3.28% N/A N/A N/A N/A N/A -30.68%
After Tax Held -3.28% N/A N/A N/A N/A N/A -30.68%
After Tax Sold -1.94% N/A N/A N/A N/A N/A -18.16%
Market Price -3.34% N/A N/A N/A N/A N/A -30.58%
Index Performance **
Nasdaq Lux Health Tech Index -3.12% N/A N/A N/A N/A N/A -30.48%
S&P Composite 1500 Health Care Index -5.16% N/A N/A N/A N/A N/A -11.01%

*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 each listed 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 Composite 1500 Health Care Index - The Index is a capitalization-weighted index of companies classified by GICS as health care within the S&P Composite 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 All market capitalization numbers are in USD$ Millions.
5 Inception Date is 3/22/2022

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

You could lose money by investing in a fund. An investment in a fund is not a deposit of a bank and is not insured or guaranteed. There can be no assurance that a fund's objective(s) will be achieved. Investors buying or selling shares on the secondary market may incur customary brokerage commissions. Please refer to each fund's prospectus and SAI for additional details on a fund's risks. The order of the below risk factors does not indicate the significance of any particular risk factor.

Unlike mutual funds, shares of the fund 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 premium or discount to a fund's net asset value and possibly face delisting and the bid/ask spread may widen.

A fund is susceptible to operational risks through breaches in cyber security. Such events could cause a fund to incur regulatory penalties, reputational damage, additional compliance costs associated with corrective measures and/or financial loss.

Equity securities may decline significantly in price over short or extended periods of time, and such declines may occur in the equity market as a whole, or they may occur in only a particular country, company, industry or sector of the market.

Health care companies may be affected by government regulations and government health care programs, increases or decreases in the cost of medical products and services and product liability claims, among other factors. Many health care companies are heavily dependent on patent protection, and the expiration of a company's patent may adversely affect that company's profitability. Health care companies are also subject to competitive forces that may result in price discounting, may be thinly capitalized and susceptible to product obsolescence.

Companies in health care technology may be susceptible to risks which include, but are not limited to, small or limited markets for such securities, changes in business cycles, world economic growth, technological progress, rapid obsolescence, and government regulation. Health care technology companies may have limited product lines, markets, financial resources or personnel. 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.

An index fund will be concentrated in an industry or a group of industries to the extent that the index is so concentrated. A fund with significant exposure to a single asset class, or the securities of issuers within the same country, state, region, industry, or sector may have its value more affected by an adverse economic, business or political development than a broadly diversified fund.

A fund may be a constituent of one or more indices or models 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. Losses or costs associated with any index provider errors generally will be borne by a fund and its shareholders.

Large capitalization companies may grow at a slower rate than the overall market.

Market risk is the risk that a particular security, or shares of a fund in general may fall in value. Securities are subject to market fluctuations caused by such factors as general economic conditions, political events, regulatory or market developments, changes in interest rates and perceived trends in securities prices. Shares of a fund could decline in value or underperform other investments as a result. In addition, local, regional or global events such as war, acts of terrorism, spread of infectious disease or other public health issues, recessions, or other events could have significant negative impact on a fund. In February 2022, Russia invaded Ukraine which has caused and could continue to cause significant market disruptions and volatility within the markets in Russia, Europe, and the United States. The hostilities and sanctions resulting from those hostilities could have a significant impact on certain fund investments as well as fund performance. The COVID-19 global pandemic and the ensuing policies enacted by governments and central banks have caused and may continue to cause significant volatility and uncertainty in global financial markets. While the U.S. has resumed "reasonably" normal business activity, many countries continue to impose lockdown measures. Additionally, there is no guarantee that vaccines will be effective against emerging variants of the disease.

A fund faces numerous market trading risks, including the potential lack of an active market for fund shares due to a limited number of market makers. Decisions by market makers or authorized participants to reduce their role or step away in times of market stress could inhibit the effectiveness of the arbitrage process in maintaining the relationship between the underlying values of a fund's portfolio securities and a fund's market price.

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

An index fund's return may not match the return of the index for a number of reasons including operating expenses, costs of buying and selling securities to reflect changes in the index, and the fact that a fund's portfolio holdings may not exactly replicate the index.

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

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. The fund also relies on third parties for a range of services, including custody, and any delay or failure related to those services may affect the fund's ability to meet its objective.

A fund that invests in securities included in or representative of an index will hold those securities regardless of investment merit and the fund generally will not take defensive positions in declining markets.

The market price of a fund's shares will generally fluctuate in accordance with changes in the fund's net asset value ("NAV") as well as the relative supply of and demand for shares on the exchange, and a fund's investment advisor cannot predict whether shares will trade below, at or above their NAV.

Securities of small- and mid-capitalization companies may experience greater price volatility and be less liquid than larger, more established companies.

Trading on an exchange may be halted due to market conditions or other reasons. There can be no assurance that a fund's requirements to maintain the exchange listing 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.

Nasdaq® and Nasdaq Lux Health Tech 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.

CUSIP identifiers have been provided by CUSIP Global Services, managed on behalf of the American Bankers Association by FactSet Research Systems Inc. and are not for use or dissemination in a manner that would serve as a substitute for any CUSIP service. The CUSIP Database, ©2022 CUSIP Global Services. "CUSIP" is a registered trademark of the American Bankers Association.

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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