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First Trust Global Wind Energy ETF (FAN)
Investment Objective/Strategy - First Trust Global Wind Energy ETF 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 ISE Clean Edge Global Wind Energy Index™.
There can be no assurance that the Fund's investment objectives will be achieved.
Index Description According to the Index Provider
  • The Index measures the performance of public companies throughout the world that are active in the wind energy industry. To be eligible for inclusion in the Index a company must be listed on an index eligible global stock exchange and actively engaged in some aspect of the wind energy industry, such as the development or management of a wind farm, the production or distribution of electricity generated by wind power, or involvement in the design, manufacture or distribution of machinery or materials designed specifically for the wind energy industry.
  • Each security must have a minimum market capitalization of $100 million, minimum 3-month average daily dollar trading volume of $500,000 and a minimum free float of 25%.
  • Clean Edge identifies each eligible company as either “Pure Play” or “Diversified”:
    • Pure Play companies derive at least 50% of their revenue and/or generating assets (energy capacity and/or production) from wind-related activities.
    • Diversified companies are those simply involved and engaged in some aspect of the wind energy industry.
  • Pure Play companies are given a collective weight of 60% and Diversified companies are given a collective weight of 40%.The index uses a modified market capitalization weighted methodology for each group of companies. The Pure Play companies are weighted so that the five largest Pure Play companies may not exceed 8% each of the entire index and the remaining Pure Play companies may not exceed 4% each of the entire index. No Diversified company may exceed 2% of the entire index.
  • The Index is reconstituted and rebalanced semi-annually
Fund Overview
TickerFAN
Fund TypeForeign Equity
Investment AdvisorFirst Trust Advisors L.P.
Investor Servicing AgentBank of New York Mellon Corp
CUSIP33736G106
ISINUS33736G1067
Intraday NAVFANIV
Fiscal Year-End09/30
ExchangeNYSE Arca
Inception6/16/2008
Inception Price$30.00
Inception NAV$30.00
Rebalance FrequencySemi-Annual
Gross Expense Ratio*0.64%
Net Expense Ratio*0.60%
* As of 2/1/2024
Expenses are capped contractually at 0.60% per year, at least through January 31, 2025.
Current Fund Data (as of 3/15/2024)
Closing NAV1$15.27
Closing Market Price2$15.24
Bid/Ask Midpoint$15.23
Bid/Ask Discount0.26%
30-Day Median Bid/Ask Spread30.20%
Total Net Assets$186,248,409
Outstanding Shares12,200,002
Daily Volume32,652
Average 30-Day Daily Volume39,920
Closing Market Price 52-Week High/Low$18.23 / $13.33
Closing NAV 52-Week High/Low$18.24 / $13.40
Number of Holdings (excluding cash)53
Top Holdings (as of 3/15/2024)*
Holding Percent
Vestas Wind Systems A/S 7.82%
Orsted A/S 7.20%
EDP Renovaveis SA 7.11%
Northland Power Inc. 7.11%
China Longyuan Power Group Corporation Limited (Class H) 3.87%
Boralex Inc. 3.10%
Nordex SE 2.60%
ERG SpA 2.45%
Century Iron & Steel Industrial Co., Ltd. 2.32%
NextEra Energy, Inc. 2.16%

* 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 3/19/2024)4$0.0377
30-Day SEC Yield (as of 2/29/2024)51.87%
Unsubsidized 30-Day SEC Yield (as of 2/29/2024)61.79%
12-Month Distribution Rate (as of 2/29/2024)71.86%
Index Yield (as of 2/29/2024)82.53%
Fund Characteristics (as of 2/29/2024)9
Maximum Market Cap.$170,749
Median Market Cap.$3,604
Minimum Market Cap.$96
Price/Earnings19.48
Price/Book1.73
Price/Cash Flow8.65
Price/Sales1.27
Top Country Exposure (as of 3/15/2024)
Country Percent
Denmark 17.07%
United States 15.84%
Canada 12.00%
Spain 11.11%
Germany 9.95%
Italy 6.64%
China 5.66%
Japan 4.06%
Sweden 3.41%
France 3.39%
Bid/Ask Premium/Discount (as of 3/15/2024)
  2023 Q1 2024 Q2 2024 Q3 2024
Days Traded at Premium 62 5 --- ---
Days Traded at Discount 188 47 --- ---
Top Sector Exposure (as of 3/15/2024)
Utilities 57.90%
Industrials 37.29%
Materials 4.43%
Energy 0.38%
Hypothetical Growth of $10,000 Since Inception (as of 3/15/2024) *
Tracking Index: ISE Clean Edge Global Wind Energy™ Index

Month End Performance (as of 2/29/2024)
  3 Month YTD 1 Year 3 Year 5 Year 10 Year Since
Fund
Inception10
Fund Performance *
Net Asset Value (NAV) 0.62% -8.16% -10.68% -10.00% 5.02% 4.80% -2.33%
After Tax Held 0.53% -8.16% -11.30% -10.60% 4.27% 3.73% -3.11%
After Tax Sold 0.37% -4.83% -6.29% -7.62% 3.59% 3.26% -2.05%
Market Price 0.69% -8.07% -10.60% -10.16% 5.00% 4.76% -2.35%
Index Performance **
ISE Clean Edge Global Wind Energy™ Index 0.68% -8.11% -10.16% -9.46% 5.84% 5.62% -1.55%
MSCI World Index 10.67% 5.49% 24.96% 8.64% 11.66% 9.06% 7.41%
Russell 3000® Index 12.23% 6.58% 28.60% 9.90% 13.94% 12.03% 10.70%
Quarter End Performance (as of 12/29/2023)
  3 Month YTD 1 Year 3 Year 5 Year 10 Year Since
Fund
Inception10
Fund Performance *
Net Asset Value (NAV) 13.93% -3.14% -3.14% -9.18% 9.46% 6.50% -1.82%
After Tax Held 13.82% -3.81% -3.81% -9.79% 8.67% 5.41% -2.61%
After Tax Sold 8.24% -1.86% -1.86% -7.06% 7.13% 4.63% -1.72%
Market Price 14.15% -3.15% -3.15% -9.40% 9.48% 6.35% -1.84%
Index Performance **
ISE Clean Edge Global Wind Energy™ Index 14.03% -2.11% -2.11% -8.51% 10.41% 7.32% -1.03%
MSCI World Index 11.42% 23.79% 23.79% 7.27% 12.80% 8.60% 7.12%
Russell 3000® Index 12.07% 25.96% 25.96% 8.54% 15.16% 11.48% 10.36%
3-Year Statistics (as of 2/29/2024)
  Standard Deviation Alpha Beta Sharpe Ratio Correlation
FAN 20.50% -18.45 0.88 -0.53 0.77
MSCI World Index 17.05% -0.82 0.94 0.43 0.99
Russell 3000® Index 17.84% --- 1.00 0.49 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. The fund's performance reflects fee waivers and expense reimbursements, absent which performance would have been lower.

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.

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.

Russell 3000® Index - The Index is comprised of the 3000 largest and most liquid stocks based and traded in the U.S.

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 The unsubsidized 30-day SEC yield is calculated the same as the 30-day SEC yield, however it excludes contractual fee waivers and expense reimbursements.
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 ISE Clean Edge Global Wind Energy(TM) Index.
9 All market capitalization numbers are in USD$ Millions.
10 Inception Date is 6/16/2008

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 Statement of Additional Information 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.

Changes in currency exchange rates and the relative value of non-US currencies may affect the value of a fund's investments and the value of a fund's shares.

Current market conditions risk is the risk that a particular investment, or shares of the fund in general, may fall in value due to current market conditions. As a means to fight inflation, the Federal Reserve and certain foreign central banks have raised interest rates and expect to continue to do so, and the Federal Reserve has announced that it intends to reverse previously implemented quantitative easing. Recent and potential future bank failures could result in disruption to the broader banking industry or markets generally and reduce confidence in financial institutions and the economy as a whole, which may also heighten market volatility and reduce liquidity. Ongoing armed conflicts between Russia and Ukraine in Europe and among Israel, Hamas and other militant groups in the Middle East, have caused and could continue to cause significant market disruptions and volatility within the markets in Russia, Europe, the Middle East and the United States. The hostilities and sanctions resulting from those hostilities have and could continue to have a significant impact on certain fund investments as well as fund performance and liquidity. The COVID-19 global pandemic, or any future public health crisis, 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, negatively impacting global growth prospects.

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.

Depositary receipts may be less liquid than the underlying shares in their primary trading market and distributions may be subject to a fee. Holders may have limited voting rights, and investment restrictions in certain countries may adversely impact their value.

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.

Political or economic disruptions in European countries, even in countries in which a fund is not invested, may adversely affect security values and thus the fund's holdings. A significant number of countries in Europe are member states in the European Union, and the member states no longer control their own monetary policies. In these member states, the authority to direct monetary policies, including money supply and official interest rates for the Euro, is exercised by the European Central Bank. The implications of the United Kingdom's withdrawal from the European Union are difficult to gauge and cannot yet be fully known.

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.

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.

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, natural disasters or other events could have significant negative impact on a fund.

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.

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.

Securities of non-U.S. issuers are subject to additional risks, including currency fluctuations, political risks, withholding, lack of liquidity, lack of adequate financial information, and exchange control restrictions impacting non-U.S. 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.

Utilities companies are subject to imposition of rate caps, increased competition, difficulty in obtaining an adequate return on invested capital or in financing large construction projects, limitations on operations and increased costs attributable to environmental considerations and the capital market's ability to absorb utility debt. Utilities companies may also be affected by taxes, government regulation, international politics, price and supply fluctuations, volatile interest rates and energy conservation.

Wind energy companies can be significantly affected by obsolescence of existing technology, short product cycles, falling prices and profits, competition from new market entrants and general economic conditions. This can be significantly affected by fluctuations in energy prices and supply and demand of alternative energy fuels, energy conservation, and government regulations.

First Trust Advisors L.P. (FTA) is the adviser to the First Trust fund(s). FTA is an affiliate of First Trust Portfolios L.P., the distributor of the fund(s).

Nasdaq®, Clean Edge®, and ISE Clean Edge Global Wind Energy Index™ are registered trademarks and service marks of Nasdaq, Inc. and Clean Edge, Inc., respectively (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, ©2024 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.
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