Home   Logon   Mobile Site   Research and Commentary   About Us   Call 1.800.621.1675 or Email Us       Follow Us: 

Search by Ticker, Keyword or CUSIP       
First Trust CEF Income Opportunity ETF (FCEF)
Investment Objective/Strategy - The First Trust CEF Income Opportunity ETF is an actively managed exchange-traded fund. The Fund's investment objective is to provide current income with a secondary emphasis on total return. Under normal market conditions, the Fund will seek to achieve its investment objectives by investing at least 80% of its net assets (including investment borrowings) in a portfolio of closed-end investment companies that are listed and traded in the United States on registered exchanges ("Closed-End Funds").
There can be no assurance that the Fund's investment objectives will be achieved.
Fund Overview
Fund TypeMulti Asset Income
Investment AdvisorFirst Trust Advisors L.P.
Investor Servicing AgentBank of New York Mellon
Fiscal Year-End08/31
Inception Price$20.05
Inception NAV$20.05
Fees And Expenses
Management Fees0.85%
Acquired Fund Fees and Expenses2.06%
Total Annual Expenses2.91%
Current Fund Data (as of 5/12/2021)
Closing NAV1$23.93
Closing Market Price2$24.02
Bid/Ask Midpoint$23.94
Bid/Ask Premium0.04%
30-Day Median Bid/Ask Spread30.60%
Total Net Assets$32,422,513
Outstanding Shares1,355,000
Daily Volume5,675
Average 30-Day Daily Volume5,873
Closing Market Price 52-Week High/Low$24.89 / $17.11
Closing NAV 52-Week High/Low$24.89 / $17.12
Number of Holdings (excluding cash)50
Top Holdings (as of 5/12/2021)*
Holding Percent
Eaton Vance Tax-Advantaged Global Dividend Income Fund 4.41%
Cohen & Steers REIT and Preferred and Income Fund, Inc. 4.24%
BlackRock Science & Technology Trust 3.98%
Eaton Vance Tax-Advantaged Dividend Income Fund 3.86%
Ares Dynamic Credit Allocation Fund, Inc. 3.41%
Eaton Vance Tax-Advantaged Global Dividend Opportunities Fund 3.41%
Tekla Healthcare Investors 3.41%
Tekla Healthcare Opportunities Fund 3.39%
The Gabelli Dividend & Income Trust 3.28%
PGIM Global High Yield Fund Inc. 3.22%

* Excluding cash.  Holdings are subject to change.

Fixed-Income Credit Quality (as of 4/30/2021)
Credit Quality Percent
AAA 7.37%
AA 0.52%
A 1.18%
BBB 18.07%
BB 26.90%
B 26.27%
CCC-D 9.56%
N/R 10.13%
The ratings are by Standard & Poor's except where otherwise indicated. A credit rating is an assessment provided by a nationally recognized statistical rating organization (NRSRO) of the creditworthiness of an issuer with respect to debt obligations except for those debt obligations that are only privately rated. Ratings are measured on a scale that generally ranges from AAA (highest) to D (lowest). Investment grade is defined as those issuers that have a long-term credit rating of BBB- or higher. "NR" indicates no rating. The credit ratings shown relate to the creditworthiness of the issuers of the underlying securities in the Fund, and not to the Fund or its shares. Credit ratings are subject to change.
NAV History (Since Inception)
Past performance is not indicative of future results.
Distribution Information
Dividend per Share Amt (as of 5/13/2021)4$0.1000
30-Day SEC Yield (as of 4/30/2021)55.35%
12-Month Distribution Rate (as of 4/30/2021)64.49%
Distribution Rate (as of 4/30/2021)74.84%
For funds with certain equity strategies, due to the negative economic impact across many industries caused by the 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 4/30/2021)
Weighted Average Option-Adjusted Duration83.25 Years
Weighted Average Leverage Option-Adjusted Duration94.75 Years
Weighted Average Effective Maturity5.92 Years
Weighted Average Leverage1017.54%
Weighted Average Premium/Discount11-4.33%
Fund Composition (as of 4/30/2021)
CEFs - Equity 65.25%
CEFs - Taxable Fixed-Income 32.17%
Cash 2.58%
World Regions (as of 4/30/2021)
Region Percent
North America 77.34%
Europe 11.37%
Asia 11.29%
Refers to the equity holdings of the underlying closed-end funds as a percentage of the total such equity holdings.
Market Capitalization (as of 4/30/2021)
Capitalization Percent
Large 34.29%
Mid 28.04%
Mega 27.17%
Small 7.22%
Micro 3.28%
Refers to the equity holdings of the underlying closed-end funds as a percentage of the total such equity holdings.
Market Classification (as of 4/30/2021)
Classification Percent
Developed Markets 93.68%
Emerging Markets 6.32%
Refers to the equity holdings of the underlying closed-end funds as a percentage of the total such equity holdings.
Bid/Ask Premium/Discount (as of 5/12/2021)
  2020 Q1 2021 Q2 2021 Q3 2021
Days Traded at Premium 144 32 15 ---
Days Traded at Discount 109 29 14 ---
Weighted Avg Premium/Discount11
Current Weighted Average Premium Discount Information (as of 5/12/2021)
52-Week Average-8.10%
52-Week High-4.03%
52-Week Low-11.32%
Top Sector Exposure (as of 4/30/2021)
Allocation--50% to 70% Equity 9.40%
Health 9.32%
Allocation--70% to 85% Equity 9.13%
Technology 8.96%
World Allocation 8.87%
Bank Loan 7.91%
High Yield Bond 7.67%
Multisector Bond 5.89%
Infrastructure 4.55%
Large Blend 3.20%
Large Value 3.17%
World Bond 3.03%
Convertibles 2.76%
Small Blend 2.63%
Cash 2.58%
Preferred Stock 2.25%
Emerging Markets Bond 1.81%
Real Estate 1.38%
Diversified Emerging Mkts 1.21%
China Region 0.96%
Equity Energy 0.96%
World Large-Stock Growth 0.73%
Derivative Income 0.53%
Inflation-Protected Bond 0.48%
Intermediate Core Bond 0.37%
Financial 0.25%
Hypothetical Growth of $10,000 Since Inception (as of 5/12/2021) *

Month End Performance (as of 4/30/2021)
  3 Month YTD 1 Year 3 Year 5 Year 10 Year Since
Fund Performance *
Net Asset Value (NAV) 11.23% 11.47% 46.67% 10.71% N/A N/A 10.48%
After Tax Held 10.70% 10.76% 43.54% 8.38% N/A N/A 8.13%
After Tax Sold 6.63% 6.77% 27.31% 7.17% N/A N/A 7.05%
Market Price 11.42% 11.52% 46.81% 10.74% N/A N/A 10.49%
Index Performance **
Blended Benchmark 9.68% 10.12% 41.78% 9.34% N/A N/A 9.36%
Russell 3000® Index 12.33% 11.83% 50.92% 18.95% N/A N/A 17.88%
Quarter End Performance (as of 3/31/2021)
  3 Month YTD 1 Year 3 Year 5 Year 10 Year Since
Fund Performance *
Net Asset Value (NAV) 6.59% 6.59% 53.32% 9.48% N/A N/A 9.58%
After Tax Held 6.09% 6.09% 49.96% 7.17% N/A N/A 7.25%
After Tax Sold 3.89% 3.89% 31.24% 6.24% N/A N/A 6.36%
Market Price 6.77% 6.77% 53.20% 9.53% N/A N/A 9.62%
Index Performance **
Blended Benchmark 6.06% 6.06% 50.84% 8.64% N/A N/A 8.63%
Russell 3000® Index 6.35% 6.35% 62.53% 17.12% N/A N/A 16.93%
3-Year Statistics (as of 4/30/2021)
  Standard Deviation Alpha Beta Sharpe Ratio Correlation
FCEF 20.12% -6.75 0.98 0.54 0.95
Blended Benchmark 19.57% -7.58 0.95 0.48 0.95
Russell 3000® Index 19.43% --- 1.00 0.91 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.

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.

**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.

Prior to August 2019, the Blended Benchmark consisted of the following two indexes: 60% of the Morningstar US All Equity CEF Index and 40% of the Morningstar US All Taxable Fixed Income CEF Index. The prior Blended Benchmark is no longer shown because the Morningstar Indexes used in the Blended Benchmark were closed in August 2019.

Blended Benchmark - The Benchmark consists of the following two indexes: 60% of the First Trust Equity Closed-End Fund Index which is a cap weighted index (based on NAV) designed to provide a broad representation of the equity based closed-end fund universe; and 40% of the First Trust Taxable Fixed Income Closed-End Fund Index which is a cap weighted index (based on NAV) designed to provide a broad representation of the taxable fixed income closed-end fund universe. Funds included in the indexes trade on an U.S. Stock Exchange and have a market cap of at least $100 million. The Blended Benchmark returns are calculated by using the monthly return of the two indices during each period shown above. At the beginning of each month the two indices are rebalanced to a 60-40 ratio to account for divergence from that ratio that occurred during the course of each month. The monthly returns are then compounded for each period shown above, giving the performance for the Blended Benchmark for each period shown above.

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

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 Distribution Rate is calculated by dividing the fund's most recent ordinary distribution paid or declared, on an annualized basis, by the NAV price. Distribution rates may vary.
8 A measure of a bond's sensitivity to interest rate changes that reflects the change in a bond's price given a change in yield and is adjusted for option provisions.
9 A measure of a bond's sensitivity to interest rate changes that reflects the change in a bond's price given a change in yield that is adjusted for option provisions and the leveraging process.
10 The use of various financial instruments or borrowed capital to increase the potential return of an investment.
11 A premium occurs when an underlying fund's market price is higher than its NAV, and a discount occurs when an underlying fund's market price is lower than its NAV.
12 Inception Date is 9/27/2016

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.

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. The fund is subject to management risk because the advisor will apply investment techniques and risk analyses that may not have the desired result. There can be no assurance that the fund's investment objectives 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 is subject to market risk. Market risk is the risk that a particular security owned by the fund or shares of the fund in general may fall in value.

An investment in this fund should be made with an understanding of the risks associated with an investment in a portfolio of closed-end funds which invest in common stocks and debt securities.

Because the shares of CEFs cannot be redeemed upon demand, shares of many CEFs will trade on exchanges at market prices rather than net asset value, which may cause the shares to trade at a price greater than NAV (premium) or less than NAV (discount). There can be no assurance that the market discount on shares of any CEF purchased by the fund will ever decrease or that when the fund seeks to sell shares of a CEF it can receive the NAV for those shares.

The fund may also be exposed to higher volatility in the market due to indirect use of leverage through its investment in CEFs. CEFs may issue senior securities in an attempt to enhance returns.

An underlying fund may invest in small and/or mid capitalization companies. Such companies may experience greater price volatility than larger, more established companies.

An investment in an underlying 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.

Certain underlying funds are subject to credit risk, call risk, income risk, interest rate risk and prepayment risk. Credit risk is the risk that an issuer of a security held by an underlying fund will be unable or unwilling to make dividend, interest and/or principal payments when due and that the value of a security may decline as a result. Credit risk is heightened for floating-rate loans and high-yield securities. Call risk is the risk that if an issuer calls higher-yielding debt instruments held by an underlying fund, performance could be adversely impacted. Income risk is the risk that income from an underlying fund's fixed-income investments could decline during periods of falling interest rates. Interest rate risk is the risk that the value of the fixed-income securities in an underlying fund will decline because of rising market interest rates. Prepayment risk is the risk that during periods of falling interest rates, an issuer may exercise its right to pay principal on an obligation earlier than expected. This may result in a decline in an underlying fund's income.

The fund may be subject to covered call risk which is the risk that an underlying fund will forgo, during an option's life, the opportunity to profit from increases in the market value of the security covering the call option above the sum of the premium and the strike price of the call, but has retained the risk of loss should the price of the underlying security decline.

The use of options or other derivatives can lead to losses because of adverse movements in the price or value of the underlying asset, index or rate, which may be magnified by certain features of the derivatives. If a counterparty defaults on its payment obligations, the fund will lose money and the value of fund shares may decrease.

Senior loans are usually rated below investment grade but may also be unrated. As a result, the risks associated with these loans are similar to the risks of high yield fixed income instruments. High yield securities, or "junk" bonds, are subject to greater market fluctuations and risk of loss than securities with higher ratings.

Preferred securities combine some of the characteristics of both common stocks and bonds. Preferred securities are typically subordinated to bonds and other debt instruments in a company's capital structure, in terms of priority to corporate income, and therefore will be subject to greater credit risk than those debt instruments.

The risks of owning an ETF generally reflect the risks of owning the underlying securities, although lack of liquidity in an ETF could result in it being more volatile and ETFs have management fees that increase their costs.

Certain of the underlying funds may invest in distressed securities and many distressed securities are illiquid or trade in low volumes and thus may be more difficult to value. Illiquid securities involve the risk that the securities will not be able to be sold at the time desired by the fund or at prices approximately the value at which the fund is carrying the securities on its books.

Master limited partnerships (MLPs) are subject to certain risks, including price and supply fluctuations caused by international politics, energy conservation, taxes, price controls, and other regulatory policies of various governments. In addition, there is the risk that a MLP could be taxed as a corporation, resulting in decreased returns from such MLP.

Certain of the fixed-income securities held by certain underlying funds may not have the benefit of covenants which could reduce the ability of the issuer to meet its payment obligations and might result in increased credit risk.

Income from municipal bonds could be declared taxable because of, among other things, unfavorable changes in tax laws, adverse interpretations by the Internal Revenue Service or state tax authorities, or noncompliant conduct of a bond issuer. All or a portion of the fund's otherwise exempt-interest dividends may be taxable to those shareholders subject to the federal alternative minimum tax.

The market values of convertible bonds tend to decline as interest rates increase and, conversely, to increase as interest rates decline. A convertible bond's market value also tends to reflect the market price of the common stock of the issuing company.

The value of commodities and commodity-linked instruments typically is based upon the price movements of a physical commodity or an economic variable linked to such price movements. The prices of commodities and commodities-linked instruments may fluctuate quickly and dramatically and may not correlate to price movements in other asset classes.

The fund may, under certain circumstances, effect a portion of creations and redemptions for cash, rather than in-kind securities. As a result, the fund may be less tax-efficient. Because the fund's NAV is determined on the basis of U.S. dollars and the fund invests in non-U.S. securities, you may lose money if the local currency of a non-U.S. market depreciates against the U.S. dollar.

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.

The fund's investment in CEFs is restricted by the Investment Company Act of 1940 and the fund's associated exemptive relief which limits the amount of any single CEF that can be owned by the fund.

To the extent a fund invests in floating or variable rate obligations that use the London Interbank Offered Rate (“LIBOR”) as a reference interest rate, it is subject to LIBOR Risk. The United Kingdom’s Financial Conduct Authority, which regulates LIBOR, will cease making LIBOR available as a reference rate over a phase-out period that will begin immediately after December 31, 2021. The unavailability or replacement of LIBOR may affect the value, liquidity or return on certain fund investments and may result in costs incurred in connection with closing out positions and entering into new trades. Any potential effects of the transition away from LIBOR on the fund or on certain instruments in which the fund invests can be difficult to ascertain, and they may vary depending on a variety of factors, and they could result in losses to the fund.

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.

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)
Home |  Important Legal Information |  Privacy Policy |  California Privacy Policy |  Business Continuity Plan |  FINRA BrokerCheck
Copyright © 2021 All rights reserved.