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December 8, 2020 – First Trust Advisors L.P. (“FTA”) announced that the Board of Trustees of EquityCompass Tactical Risk Manager ETF (NYSE Arca: TERM) and Equity Compass Risk Manager ETF (NYSE Arca: ERM), each, an actively managed exchange-traded fund (“ETF”) managed by FTA and sub-advised by EquityCompass Investment Management, LLC (“EquityCompass”), approved the reorganization of TERM into ERM. ERM will be the surviving fund. Under the terms of the proposed transaction, which is expected to be tax-free, the assets of TERM would be transferred to, and the liabilities of TERM would be assumed by, ERM, and shareholders of TERM would receive shares of ERM with an aggregate net asset value equal to the aggregate net asset value of the TERM shares held by them. It is currently expected that the transaction will be consummated no later than the second quarter of 2021, subject to requisite shareholder approval of TERM and ERM and satisfaction of applicable regulatory requirements and approvals and customary closing conditions. There is no assurance when or whether such approvals, or any other approvals required for the transaction, will be obtained. More information can be found here.
Investment Objective/Strategy - The EquityCompass Risk Manager ETF is an actively managed exchange-traded fund. The Fund's investment objective is to provide long term capital appreciation with capital preservation as a secondary objective. Under normal market conditions, the Fund will seek to achieve its investment objectives by investing in equity securities of U.S. companies. During periods when the U.S. equity market is determined to be unfavorable by the Fund's sub-advisor, EquityCompass Investment Management, LLC, the Fund may invest all or a portion of its assets in cash, cash equivalents and short term fixed income.
There can be no assurance that the Fund's investment objectives will be achieved.
Ticker | ERM |
Fund Type | Tactical Equity |
Investment Advisor | First Trust Advisors L.P. |
Investor Servicing Agent | BNY Mellon Investment Servicing (US) Inc. |
Portfolio Manager/Sub-Advisor | EquityCompass Investment Management, LLC |
CUSIP | 33740F607 |
ISIN | US33740F6079 |
Intraday NAV | ERMIV |
Fiscal Year-End | 08/31 |
Exchange | NYSE Arca |
Inception | 4/10/2017 |
Inception Price | $20.05 |
Inception NAV | $20.05 |
Rebalance Frequency | Periodically |
Gross Expense Ratio* | 0.68% |
Net Expense Ratio* | 0.68% |
* As of 1/4/2021
First Trust has contractually agreed to reduce management fees earned by the fund for management fees due to be paid to the underlying investment companies advised by First Trust. The agreement is expected to remain in place until at least April 10, 2021, or until its termination at the direction of the Trust's Board of Trustees, or the termination of the Investment Management Agreement. Please see the Fees and Expenses of the Fund section in the fund's prospectus for more details.
Closing NAV1 | $24.08 |
Closing Market Price2 | $24.06 |
Bid/Ask Midpoint | $24.08 |
Bid/Ask Premium | 0.00% |
30-Day Median Bid/Ask Spread3 | 0.50% |
Total Net Assets | $10,837,306 |
Outstanding Shares | 450,002 |
Daily Volume | 28,713 |
Average 30-Day Daily Volume | 3,087 |
Closing Market Price 52-Week High/Low | $24.06 / $16.19 |
Closing NAV 52-Week High/Low | $24.08 / $16.18 |
Number of Holdings (excluding cash) | 150 |
Holding |
Percent |
NVIDIA Corporation |
0.75% |
Lowe's Companies, Inc. |
0.74% |
Oracle Corporation |
0.74% |
Target Corporation |
0.74% |
The Home Depot, Inc. |
0.74% |
Adobe Incorporated |
0.73% |
Lockheed Martin Corporation |
0.73% |
Amazon.com, Inc. |
0.72% |
BlackRock, Inc. |
0.72% |
Costco Wholesale Corporation |
0.72% |
* Excluding cash.
Holdings are subject to change.
Past performance is not indicative of future results.
Maximum Market Cap. | $2,012,893 |
Median Market Cap. | $84,128 |
Minimum Market Cap. | $3,473 |
Price/Earnings | 24.77 |
Price/Book | 2.80 |
Price/Cash Flow | 15.74 |
Price/Sales | 1.92 |
|
2020 |
Q1 2021 |
Q2 2021 |
Q3 2021 |
Days Traded at Premium |
151 |
45 |
1 |
--- |
Days Traded at Discount |
102 |
16 |
6 |
--- |
|
Standard Deviation |
Alpha |
Beta |
Sharpe Ratio |
Correlation |
ERM |
19.48% |
-9.85 |
0.94 |
0.26 |
0.89 |
S&P 500 Index |
18.40% |
--- |
1.00 |
0.85 |
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.
Hedge Fund Research HFRI Equity Hedge Index - The Index tracks the performance of equity hedge strategies that maintain positions both long and short in primarily equity and equity derivative securities. S&P 500 Index - The Index is an unmanaged index of 500 stocks used to measure large-cap U.S. stock market performance.
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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.
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