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First Trust Limited Duration Investment Grade Corporate ETF (FSIG)
  • 2021 Estimated Capital Gain Distributions
    Certain First Trust Exchange-Traded Funds are expected to pay a short term and/or 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.
Investment Objective/Strategy - The First Trust Limited Duration Investment Grade Corporate ETF's (the "Fund") primary investment objective is to deliver current income. Under normal market conditions, the Fund seeks to achieve its objectives by investing at least 80% of its net assets (plus any borrowings for investment purposes) in investment grade corporate debt securities. Corporate debt securities are debt obligations issued by businesses to finance their operations. Notes, bonds, loans, debentures and commercial paper are the most common types of corporate debt securities, with the primary differences being their maturities and secured or unsecured status. Commercial paper has the shortest term and is usually unsecured. Corporate debt securities may have fixed or floating interest rates. The corporate debt securities in which the Fund may investment may include senior loans.
There can be no assurance that the Fund's investment objectives will be achieved.
Fund Overview
TickerFSIG
Fund TypeShort Maturity
Investment AdvisorFirst Trust Advisors L.P.
Investor Servicing AgentBank of New York Mellon Corp
CUSIP33738D804
ISINUS33738D8048
Intraday NAVFSIGIV
Fiscal Year-End10/31
ExchangeNYSE Arca
Inception11/17/2021
Inception Price$20.00
Inception NAV$20.00
Gross Expense Ratio*0.55%
Net Expense Ratio*0.45%
* As of 11/18/2021
First Trust has contractually agreed to waive management fees of 0.10% of average daily net assets until November 12, 2023.
Current Fund Data (as of 12/3/2021)
Closing NAV1$19.99
Closing Market Price2$20.00
Bid/Ask Midpoint$20.00
Bid/Ask Premium0.05%
30-Day Median Bid/Ask Spread30.20%
Total Net Assets$9,994,006
Outstanding Shares500,002
Daily Volume756
Closing Market Price 52-Week High/Low$20.04 / $19.97
Closing NAV 52-Week High/Low$20.01 / $19.94
Number of Holdings (excluding cash)85
Top Holdings (as of 12/3/2021)*
Holding Percent
HYATT HOTELS CORP 5.375%, due 04/23/2025 2.18%
BROADCOM CRP / CAYMN FI 3.875%, due 01/15/2027 2.17%
NISSAN MOTOR CO 3.522%, due 09/17/2025 2.11%
BOEING CO 4.875%, due 05/01/2025 2.10%
MORGAN STANLEY Variable rate, due 07/22/2025 2.08%
WELLS FARGO & COMPANY Variable rate, due 10/30/2025 2.07%
CANADIAN PACIFIC RAILWAY 1.35%, due 12/02/2024 2.01%
CHANGE HEALTHCARE HOLDINGS EM TL B 1L USD 2.01%
BAXTER INTERNATIONAL INC 1.322%, due 11/29/2024 2.00%
EXPEDIA GROUP INC 6.25%, due 05/01/2025 2.00%

* Excluding cash.  Holdings are subject to change.

NAV History (Since Inception)
Past performance is not indicative of future results.
Fund Characteristics (as of 11/30/2021)
Weighted Average Effective Duration42.48 Years
Weighted Average Maturity3.14 Years
Weighted Average Price$103.89
Weighted Average Coupon3.21%
Weighted Average Yield1.90%
Portfolio information statistics exclude cash and other assets and liabilities. Weighted average maturity excludes defaulted assets. Bond yields are calculated as yield-to-worst and loan yields are calculated as yield-to-maturity. All yields are calculated on a weighted average basis which is the yield that would be earned, weighted by the value of each security in the fund's portfolio, if the security was held to maturity or to an earlier call date. The calculation does not include the effect of fund fees and expenses.
Security Type Breakdown (as of 11/30/2021)
  Asset Percent
Fixed 81.15%
Floating 18.85%
Maturity Exposure (as of 11/30/2021)
Years Percent
0-1 Year 0.52%
1-2 Years 7.31%
2-3 Years 27.25%
3-4 Years 50.31%
4-5 Years 10.12%
>5 Years 4.49%
Bid/Ask Premium/Discount (as of 12/3/2021)
  2020 Q1 2021 Q2 2021 Q3 2021
Days Traded at Premium --- --- --- ---
Days Traded at Discount --- --- --- ---
Credit Quality (as of 11/30/2021)
AA- 5.17%
A+ 4.97%
A 12.18%
A- 6.64%
BBB+ 14.43%
BBB 16.37%
BBB- 26.39%
BB+ 7.04%
BB 3.81%
BB- 1.00%
B+ 2.00%
The ratings are by one or more nationally recognized statistical rating organizations (NRSROs), including Standard & Poor's Rating 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 the ratings are not equivalent, the highest ratings are used. Ratings are measured highest to lowest on a scale that generally ranges from AAA to D for long-term ratings and A-1 to C for short-term ratings. Investment grade is defined as those issuers that have a long-term credit rating of BBB- or higher or a short-term credit rating of A-3 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. U.S. Treasury, U.S. Agency and U.S. Agency mortgage-backed securities appear under "Government". Credit ratings are subject to change.
Top Industry Exposure (as of 11/30/2021)
Banking 28.92%
Technology 12.51%
Healthcare 11.12%
Automotive 5.87%
Pharmaceuticals 5.72%
Electric 4.88%
Lodging 4.82%
Consumer Cyc Services 2.99%
Midstream 2.78%
Gaming 2.59%
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.

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

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 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 discount to a 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 a fund. One of the principal risks of investing in a fund is market risk. Market risk is the risk that a particular stock owned by a fund, fund shares or stocks in general may fall in value. There can be no assurance that a fund’s investment objective 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. While the development of vaccines has slowed the spread of the virus and allowed for the resumption of "reasonably" normal business activity in the United States, many countries continue to impose lockdown measures in an attempt to slow the spread. Additionally, there is no guarantee that vaccines will be effective against emerging variants of the disease.

In managing a fund’s investment portfolio, the portfolio managers will apply investment techniques and risk analyses that may not have the desired result.

Companies that issue loans tend to be highly leveraged and thus are more susceptible to the risks of interest deferral, default and/or bankruptcy. 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. The senior loan market has seen a significant increase in loans with weaker lender protections which may impact recovery values and/or trading levels in the future.

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

Covenant-lite loans contain fewer maintenance covenants than traditional loans and may not include terms that allow the lender to monitor the financial performance of the borrower and declare a default if certain criteria are breached. This may hinder a fund’s ability to mitigate problems and increase a fund’s exposure to losses on such investments.

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

Certain securities are subject to call, credit, inflation, income, interest rate, extension and prepayment risks. These risks could result in a decline in a security’s value and/or income, increased volatility as interest rates rise or fall and have an adverse impact on a fund’s performance.

Financial services companies are subject to the adverse effects of economic recession, government regulation, decreases in the availability of capital, volatile interest rates, and competition from new entrants in their fields of business.

The market value of floating rate securities may fall in a declining interest rate environment and may also fall in a rising interest rate environment if there is a lag between the rise in interest rates and the reset. Income earned by a fund on floating rate and fixed-to-floating rate securities may decline due to lower coupon payments on floating-rate securities.

High yield securities, or “junk” bonds, are less liquid and are subject to greater market fluctuations and risk of loss than securities with higher ratings, and therefore, are considered to be highly speculative.

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.

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 a fund or on certain instruments in which a fund invests can be difficult to ascertain, and they may vary depending on a variety of factors, and they could result in losses to a fund.

Certain fund investments may be subject to restrictions on resale, trade over-the-counter or in limited volume, or lack an active trading market. Illiquid securities may trade at a discount and may be subject to wide fluctuations in market value.

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

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.

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. Trading on the exchange may be halted due to market conditions or other reasons. There can be no assurance that the requirements to maintain the listing of a fund on the exchange will continue to be met or be unchanged.

A fund may hold securities or other assets that may be valued on the basis of factors other than market quotations. This may occur because the asset or security does not trade on a centralized exchange, or in times of market turmoil or reduced liquidity. Portfolio holdings that are valued using techniques other than market quotations, including “fair valued” assets or securities, may be subject to greater fluctuation in their valuations from one day to the next than if market quotations were used. There is no assurance that a fund could sell or close out a portfolio position for the value established for it at any time.

A fund may invest in securities that exhibit more volatility than the market as a whole.

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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