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First Trust Long/Short Equity ETF (FTLS)
  • 2020 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 Fund's investment objective is to seek to provide investors with long term total return. The Fund intends to pursue its investment objective by establishing long and short positions in a portfolio of Equity Securities.
There can be no assurance that the Fund's investment objectives will be achieved.
Fund Overview
TickerFTLS
Fund TypeU.S. Equity
Investment AdvisorFirst Trust Advisors L.P.
Investor Servicing AgentBrown Brothers Harriman
CUSIP33739P103
ISINUS33739P1030
Intraday NAVFTLSIV
Fiscal Year-End10/31
ExchangeNYSE Arca
Inception9/8/2014
Inception Price$30.00
Inception NAV$30.00
Fees And Expenses
Management Fees0.95%
Margin Interest Expense and Short Sale Fees0.65%
Total Annual Expenses1.60%
Current Fund Data (as of 11/23/2020)
Closing NAV1$42.71
Closing Market Price2$42.74
Bid/Ask Midpoint$42.71
Bid/Ask Premium0.00%
30-Day Median Bid/Ask Spread30.37%
Total Net Assets$301,103,207
Outstanding Shares7,050,002
Daily Volume32,181
Average 30-Day Daily Volume33,613
Closing Market Price 52-Week High/Low$44.98 / $35.16
Closing NAV 52-Week High/Low$44.96 / $35.03
Number of Holdings (excluding cash)333
Fund Characteristics - Long Exposure (as of 10/30/2020)5
Maximum Market Cap.$1,850,816
Median Market Cap.$20,267
Minimum Market Cap.$176
Price/Earnings22.75
Price/Book3.28
Price/Cash Flow15.81
Price/Sales1.90
Fund Characteristics - Short Exposure (as of 10/30/2020)5
Maximum Market Cap.$206,535
Median Market Cap.$6,048
Minimum Market Cap.$695
Price/Earnings30.71
Price/Book3.71
Price/Cash Flow18.41
Price/Sales2.69
Top Holdings - Long Exposure (as of 11/23/2020)*
Holding Percent
Apple Inc. 3.21%
Microsoft Corporation 2.95%
Ollie's Bargain Outlet Holdings, Inc. 2.64%
HP Inc. 2.61%
Lennar Corporation 2.58%
Wix.com Ltd. 2.55%
Analog Devices, Inc. 2.54%
The Sherwin-Williams Company 2.53%
CVS Health Corporation 2.51%
Amazon.com, Inc. 2.48%

* Excluding cash.  Holdings are subject to change.

Top Holdings - Short Exposure (as of 11/23/2020)*
Holding Percent
Groupon, Inc. -0.63%
Air Products and Chemicals, Inc. -0.58%
Liberty Broadband Corporation (Class C) -0.57%
The Walt Disney Company -0.56%
Fidelity National Information Services, Inc. -0.55%
Honeywell International Inc. -0.55%
Linde Plc -0.55%
McDonald's Corporation -0.55%
Dun & Bradstreet Holdings, Inc. -0.53%
The Coca-Cola Company -0.49%

* Excluding cash.  Holdings are subject to change.

NAV History (Since Inception)
Past performance is not indicative of future results.
Overall Morningstar RatingTM (as of 10/31/2020)4

Among 187 funds in the Long-Short Equity category. This fund was rated 4 stars/187 funds (3 years), 4 stars/139 funds (5 years) based on risk adjusted returns.
Fund Exposure (as of 11/23/2020)
Long Exposure99.76%
Short Exposure-27.98%
Net Exposure71.78%
Top Sector - Long Exposure (as of 11/23/2020)
Percent
Health Care 20.36%
Information Technology 17.86%
Consumer Discretionary 12.65%
Materials 11.61%
Industrials 8.49%
Financials 8.35%
Communication Services 7.24%
Consumer Staples 7.22%
Utilities 2.94%
Energy 2.72%
Real Estate 0.32%
Top Sector - Short Exposure (as of 11/23/2020)
Percent
Information Technology -5.74%
Industrials -4.91%
Consumer Discretionary -3.22%
Consumer Staples -3.07%
Communication Services -2.64%
Materials -2.31%
Financials -1.67%
Health Care -1.57%
Real Estate -1.46%
Energy -0.93%
Utilities -0.46%
Bid/Ask Premium/Discount (as of 11/23/2020)
  2019 Q1 2020 Q2 2020 Q3 2020
Days Traded at Premium 199 47 38 31
Days Traded at Discount 53 15 25 33
Month End Performance (as of 10/30/2020)
  3 Month YTD 1 Year 3 Year 5 Year 10 Year Since
Fund
Inception6
Fund Performance *
Net Asset Value (NAV) -2.58% -1.96% 0.74% 4.16% 5.88% N/A 6.33%
After Tax Held -2.60% -2.03% 0.62% 3.88% 5.56% N/A 6.01%
After Tax Sold -1.53% -1.16% 0.43% 3.07% 4.44% N/A 4.83%
Market Price -2.72% -2.06% 0.59% 4.11% 5.83% N/A 6.31%
Index Performance **
S&P 500 Index 0.37% 2.77% 9.71% 10.42% 11.71% N/A 10.52%
Quarter End Performance (as of 9/30/2020)
  3 Month YTD 1 Year 3 Year 5 Year 10 Year Since
Fund
Inception6
Fund Performance *
Net Asset Value (NAV) 3.83% -0.37% 4.15% 5.35% 7.09% N/A 6.71%
After Tax Held 3.81% -0.44% 4.03% 5.07% 6.77% N/A 6.38%
After Tax Sold 2.27% -0.22% 2.45% 4.00% 5.40% N/A 5.13%
Market Price 3.88% -0.30% 4.17% 5.37% 7.09% N/A 6.72%
Index Performance **
S&P 500 Index 8.93% 5.57% 15.15% 12.28% 14.15% N/A 11.17%
3-Year Statistics (as of 10/30/2020)
  Standard Deviation Alpha Beta Sharpe Ratio Correlation
FTLS 10.86% -2.87 0.59 0.26 0.97
S&P 500 Index 17.86% --- 1.00 0.54 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 based on the midpoint of the bid/ask spread on the stock exchange on which shares of the fund are listed for trading 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.

S&P 500 Index - The Index is an unmanaged index of 500 stocks used to measure large-cap U.S. stock market performance.

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
The Morningstar RatingTM for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The Morningstar Rating does not include any adjustment for sales loads. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.
5 All market capitalization numbers are in USD$ Millions.
6 Inception Date is 9/8/2014

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

The fund's shares will change in value, and you could lose money by investing in the fund. One of the principal risks of investing in the fund is market risk. Market risk is the risk that a particular security owned by the fund, fund shares or securities in general may fall in value. The fund is subject to management risk because it is an actively managed portfolio. In managing the 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 the 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. The COVID-19 pandemic may last for an extended period of time, and will continue to impact the economy for the foreseeable future.

An investment in a 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. The fund may invest in depositary receipts which may be less liquid than the underlying shares in their primary trading market.

Shorting may result in greater gains or greater losses. Short selling creates special risks which could result in increased volatility of returns. Because losses on short sales arise from increases in the value of the security sold short, such losses are theoretically unlimited.

The fund may invest in the shares of other ETFs, and therefore, the fund's investment performance and risks may be related to the investment performance and risks of the underlying ETFs. In general, as a shareholder in other ETFs, the fund bears its ratable share of the underlying ETF's expenses, and would be subject to duplicative expenses to the extent the fund invests in other ETFs.

The use of futures and 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. These risks are heightened when the fund's portfolio managers use derivatives to enhance the fund's return or as a substitute for a position or security, rather than solely to hedge (or offset) the risk of a position or security held by the fund.

The fund is classified as "non-diversified" and may invest a relatively high percentage of its assets in a limited number of issuers. As a result, the 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.

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.

©2020 Morningstar, Inc. All Rights Reserved. The Morningstar RatingTM information contained herein: (1) is proprietary to Morningstar;(2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

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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