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First Trust New York Municipal High Income ETF (FMNY)
Investment Objective/Strategy - The First Trust New York Municipal High Income ETF's (the "Fund") primary investment objective is to seek to provide current income that is exempt from regular federal income taxes and New York income taxes, and its secondary objective is long-term capital appreciation. Under normal market conditions, the Fund seeks to achieve its investment objectives by investing at least 80% of its net assets (including investment borrowings) in municipal debt securities that pay interest that is exempt from regular federal income taxes and New York State and New York City income taxes (collectively, "Municipal Securities").
There can be no assurance that the Fund's investment objectives will be achieved.
Fund Overview
TickerFMNY
Fund TypeMunicipal Bonds
Investment AdvisorFirst Trust Advisors L.P.
Investor Servicing AgentBrown Brothers Harriman
CUSIP33739P822
ISINUS33739P8225
Intraday NAVFMNYIV
Fiscal Year-End07/31
ExchangeNYSE Arca
Inception5/12/2021
Inception Price$30.00
Inception NAV$30.00
Gross Expense Ratio*0.65%
Net Expense Ratio*0.50%
* As of 5/13/2021
First Trust has contractually agreed to waive management fees of 0.15% of average daily net assets until May 11, 2023.
Current Fund Data (as of 6/21/2021)
Closing NAV1$30.31
Closing Market Price2$30.32
Bid/Ask Midpoint$30.32
Bid/Ask Premium0.03%
30-Day Median Bid/Ask Spread (as of 6/18/2021)30.26%
Total Net Assets$15,156,851
Outstanding Shares500,002
Daily Volume1
Average 30-Day Daily Volume2,740
Closing Market Price 52-Week High/Low$30.45 / $30.00
Closing NAV 52-Week High/Low$30.43 / $30.00
Number of Holdings (excluding cash)42
Fund Characteristics (as of 5/28/2021)
Net Weighted Average Effective Duration (Includes Short Positions)46.39 Years
Weighted Average Effective Duration (Long Positions)46.64 Years
Weighted Average Modified Duration55.99 Years
Net Weighted Average Maturity13.87 Years
Weighted Average Price$116.11
Weighted Average Coupon3.81%
Short Position - US Treasury Futures-2.08%
Top Holdings (as of 6/21/2021)*
Holding Percent
TRIBOROUGH NY BRIDGE & TUNNEL AUTH REV 5%, due 11/15/2034 4.44%
NEW YORK ST DORM AUTH REVENUES 4%, due 07/01/2034 4.11%
NEW YORK ST THRUWAY AUTH GEN REV 4%, due 01/01/2050 3.86%
ISLAND TREES NY UNION FREE SCH DIST 3%, due 05/15/2031 3.72%
NEW YORK CITY NY HSG DEV CORP MF HSG REV N/C, 1.35%, due 11/01/2026 3.60%
BUFFALO NY MUNI WTR FIN AUTH 4%, due 07/01/2049 3.52%
NEW YORK ST ENVRNMNTL FACS CORP REV 4%, due 10/15/2034 3.40%
NEW YORK ST DORM AUTH REVENUES 4%, due 10/01/2035 3.20%
MONROE CNTY NY INDL DEV CORP REV 4%, due 07/01/2050 3.13%
LONG ISLAND NY PWR AUTH ELEC SYS REV 5%, due 09/01/2037 3.10%

* Excluding cash.  Holdings are subject to change.

NAV History (Since Inception)
Past performance is not indicative of future results.
Maturity Exposure (as of 5/28/2021)
Years Percent
0 - 0.99 Years 3.45%
2 - 2.99 Years 4.04%
5 - 5.99 Years 8.73%
6 - 6.99 Years 2.55%
8 - 8.99 Years 0.87%
9 - 9.99 Years 5.89%
10 - 14.99 Years 27.38%
15 - 19.99 Years 17.46%
20 - 24.99 Years 12.40%
25 - 29.99 Years 12.55%
Cash 4.68%
Bid/Ask Premium/Discount (as of 6/21/2021)
  2020 Q1 2021 Q2 2021 Q3 2021
Days Traded at Premium --- --- 23 ---
Days Traded at Discount --- --- 4 ---
Credit Quality (as of 5/28/2021)
Cash 4.68%
AAA 7.15%
AA 52.16%
A 23.60%
BBB 2.97%
Short Rated Only 1.71%
NR 7.73%
The credit quality information presented reflects the ratings assigned by one or more nationally recognized statistical rating organizations (NRSROs), including Standard & Poor's Ratings Group, a division of the McGraw Hill Companies, Inc., Moody's Investors Service, Inc., Fitch Ratings or a comparably rated NRSRO. For situations in which a security is rated by more than one NRSRO and ratings are not equivalent, the highest ratings are used. Sub-investment grade ratings are those rated BB+/Ba1 or lower. Investment grade ratings are those rated BBB-/Baa3 or higher. 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.
Top Sector Exposure (as of 5/28/2021)
HIGHER ED 15.07%
GO-UNLTD 14.61%
INSURED 12.39%
DEDICATED TAX 9.95%
TOLLROAD 8.33%
MASS TRANSIT 7.78%
WATER & SEWER 6.23%
CASH 4.68%
HOUSING 3.60%
UTILITY 3.56%
Month End Performance (as of 5/28/2021)
  3 Month YTD 1 Year 3 Year 5 Year 10 Year Since
Fund
Inception6
Fund Performance *
Net Asset Value (NAV) N/A N/A N/A N/A N/A N/A 0.47%
After Tax Held N/A N/A N/A N/A N/A N/A 0.47%
After Tax Sold N/A N/A N/A N/A N/A N/A 0.28%
Market Price N/A N/A N/A N/A N/A N/A 0.57%
Index Performance **
Bloomberg Barclays Municipal New York 12-17 Years Index N/A N/A N/A N/A N/A N/A 0.42%
Quarter End Performance (as of 3/31/2021)
  3 Month YTD 1 Year 3 Year 5 Year 10 Year Since
Fund
Inception6
Fund Performance *
Net Asset Value (NAV) N/A N/A N/A N/A N/A N/A N/A
After Tax Held N/A N/A N/A N/A N/A N/A N/A
After Tax Sold N/A N/A N/A N/A N/A N/A N/A
Market Price N/A N/A N/A N/A N/A N/A N/A
Index Performance **
Bloomberg Barclays Municipal New York 12-17 Years Index N/A N/A N/A N/A N/A N/A N/A

*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.

**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.

Bloomberg Barclays Municipal New York 12-17 Years Index - The Index is a sub-index of the Bloomberg Barclays Municipal Bond Index that covers the USD-denominated long-term tax-exempt bond market in the four main sectors of state and local general obligation bonds, revenue bonds, insured bonds and prerefunded bonds issued by the State of New York that have an effective maturity between 12-17 years.

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 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. It accounts for the likelihood of changes in the timing of cash flows in response to interest rate movements.
5 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. In contrast to effective duration, modified duration assumes that the timing of cash flows remain constant.
6 Inception Date is 5/12/2021

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.

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

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.

A fund’s shares will change in value and you could lose money by investing in the fund. Market risk is the risk that a particular security owned by a fund or shares of a fund in general may fall in value. In managing a fund’s investment portfolio, the advisor will apply investment techniques and risk analyses that may not have the desired result. There can be no assurance that a 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 impact of this COVID-19 pandemic may last for an extended period and will continue to impact the economy for the foreseeable future.

The values of municipal securities may be adversely affected by local political and economic conditions and developments. Events in New York, including economic or political policy changes, tax base erosion, budget deficits and other financial difficulties, and changes in the credit ratings assigned to municipal issuers of New York, are likely to affect the fund’s investments and its performance. Because the fund primarily purchases municipal bonds from New York and may also purchase municipal bonds from U.S. territories, such as Puerto Rico, it is more susceptible to adverse economic, political or regulatory changes affecting municipal bond issuers in those locations. The Puerto Rican economy is reliant on and parallels the economic cycles of the United States, and current economic difficulties in the United States are likely to have an adverse impact on the overall economy of Puerto Rico. The fund will be less diversified geographically than a fund investing across many states.

Municipal securities are subject to numerous additional risks, including credit, call, income, inflation, interest rate, extension and prepayment risks. These risks could result in the decline in a security’s value, a decline in a fund’s income, increased volatility as interest rates rise or fall, and have an adverse impact on a fund’s performance. These risks may be heightened for high yield securities.

Participation interests in municipal leases pose special risks because many leases and contracts contain “non-appropriation” clauses that provide that the governmental issuer has no obligation to make future payments under the lease or contract unless money is appropriated for this purpose by the appropriate legislative body.

A fund with significant exposure to a single asset class, country, region, industry, or sector may be more affected by an adverse economic or political development than a broadly diversified fund.

Ratings assigned by a credit rating agency are opinions of such entities, not absolute standards of credit quality and they do not evaluate risks of securities. Any shortcomings or inefficiencies in the process of determining credit ratings may adversely affect the credit ratings of the securities held by the fund and their perceived or actual credit risk.

Distressed securities are illiquid or trade in low volumes and thus may be more difficult to value.

The differences in yield between debt securities of different credit quality may increase which may reduce the market value of a fund’s debt securities.

Inventories of municipal securities have decreased in recent years and some municipal securities may have resale restrictions lessening the ability to make a market in these securities. This reduction in market making capacity has the potential to decrease the fund’s ability to buy or sell municipal securities and increase price volatility and trading costs.

There is no assurance that the fund will be able to sell a portfolio security at the price established by a pricing service, which could result in a loss to the fund.

The securities held in an escrow fund pledged to pay the principal and interest of a pre-refunded bond do not guarantee the price of the bond.

Private activity bonds can have a substantially different credit profile than the municipality or public authority that issued them and may be negatively impacted by conditions affecting the credit of the use of the project or the project itself.

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. Income from municipal bonds may be subject to the federal alternative minimum tax.

High yield securities, or “junk” bonds, are subject to greater market fluctuations and risk of loss than securities with higher ratings, and therefore, are considered to be highly speculative. Distressed municipal securities are speculative and involve substantial risks in addition to the risks of investing in high yield securities that are not in default.

Although the shares of a fund are listed for trading on the Exchange, there can be no assurance that an active trading market for such shares will develop or be maintained.

As the use of Internet technology has become more prevalent in the course of business, a fund has become more susceptible to potential operational risks through breaches in cyber security.

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.

A fund that effects a significant portion of its creations and redemptions for cash rather than in-kind may be less tax-efficient.

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

Please see the fund’s prospectus for a complete description of all the risks of investing in 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)
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