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 Nasdaq Food & Beverage ETF (FTXG)
Investment Objective/Strategy - The First Trust Nasdaq Food & Beverage 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 index called the Nasdaq US Smart Food & Beverage Index. The Fund seeks to replicate the holdings and weightings of the Nasdaq US Smart Food & Beverage Index as to generate performance results 95% correlated to that of the Nasdaq US Smart Food & Beverage Index.
There can be no assurance that the Fund's investment objectives will be achieved.
  • The Nasdaq US Smart Food & Beverage Index is a modified factor weighted index created and administered by Nasdaq, Inc. ("Nasdaq") designed to provide exposure to US companies within the food and beverage industry.
  • Nasdaq selects the 30 most liquid eligible food and beverage securities from the NASDAQ US Benchmark Index and then ranks those securities based on three factors:
    • Volatility – trailing 12-month price fluctuation.
    • Value – cash flow to price.
    • Growth – the 3-, 6-, 9-, and 12-month average price appreciation.
  • The securities are weighted based on their score on the three factors.
  • The index weighting methodology includes caps to prevent high concentrations among single stocks.
  • The index is reconstituted annually and rebalanced quarterly.
Fund Overview
TickerFTXG
Fund TypeFood & Beverage
Investment AdvisorFirst Trust Advisors L.P.
Investor Servicing AgentBrown Brothers Harriman
CUSIP33738R852
ISINUS33738R8521
Intraday NAVFTXGIV
Fiscal Year-End03/31
ExchangeNasdaq
Inception9/20/2016
Inception Price$19.96
Inception NAV$19.96
Rebalance FrequencyQuarterly
Expense Ratio0.60%
Current Fund Data (as of 1/23/2020)
Closing NAV1$22.24
Closing Market Price2$22.24
Bid/Ask Midpoint$22.25
Bid/Ask Premium0.06%
Total Net Assets$3,335,430
Outstanding Shares150,002
Daily Volume1,266
Average 30-Day Daily Volume7,452
Closing Market Price 52-Week High/Low$22.27 / $18.57
Closing NAV 52-Week High/Low$22.24 / $18.54
Number of Holdings (excluding cash)28
Fund Characteristics (as of 12/31/2019)7
Maximum Market Cap.$237,147
Median Market Cap.$19,617
Minimum Market Cap.$1,273
Price/Earnings22.64
Price/Book2.95
Price/Cash Flow15.03
Price/Sales0.91
Top Holdings (as of 1/23/2020)*
Holding Percent
PepsiCo, Inc. 8.05%
US Foods Holding Corp. 8.01%
Archer-Daniels-Midland Company 7.98%
The Hershey Company 7.91%
Tyson Foods, Inc. (Class A) 7.45%
Ingredion Incorporated 4.26%
Kellogg Company 4.12%
Lamb Weston Holdings, Inc. 4.12%
Brown-Forman Corporation 4.04%
Mondelez International, Inc. 4.02%

* 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 1/25/2020)3$0.0916
30-Day SEC Yield (as of 12/31/2019)41.35%
12-Month Distribution Rate (as of 12/31/2019)51.25%
Index Yield (as of 12/31/2019)62.01%
Bid/Ask Midpoint vs. NAV (as of 12/31/2019)
Number of Days Bid/Ask Midpoint Above NAV
Quarter Ended 0-49
Basis Points		 50-99
Basis Points		 100-199
Basis Points		 >=200
Basis Points
12/31/2019 50 0 0 1
9/30/2019 15 0 0 0
6/30/2019 2 0 0 0
3/31/2019 43 0 5 0
Number of Days Bid/Ask Midpoint Below NAV
Quarter Ended 0-49
Basis Points		 50-99
Basis Points		 100-199
Basis Points		 >=200
Basis Points
12/31/2019 13 0 0 0
9/30/2019 49 0 0 0
6/30/2019 59 0 2 0
3/31/2019 12 0 1 0

The price used to calculate market return is determined by using the midpoint between the highest bid and the lowest offer 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.

Top Industry Exposure (as of 1/23/2020)
Food Products 79.46%
Soft Drinks 12.62%
Distillers & Vintners 5.91%
Brewers 2.01%
Month End Performance (as of 12/31/2019)
  3 Month YTD 1 Year 3 Year 5 Year 10 Year Since
Fund
Inception8
Fund Performance *
Net Asset Value (NAV) 3.94% 24.11% 24.11% 4.88% N/A N/A 4.59%
After Tax Held 3.77% 23.45% 23.45% 4.26% N/A N/A 4.00%
After Tax Sold 2.33% 14.25% 14.25% 3.46% N/A N/A 3.25%
Market Price 4.08% 24.09% 24.09% 4.91% N/A N/A 4.62%
Index Performance **
Nasdaq US Smart Food & Beverage Index 4.14% 24.94% 24.94% 5.55% N/A N/A 5.27%
Nasdaq US Benchmark Food & Beverage Index 2.54% 24.19% 24.19% 8.31% N/A N/A 7.60%
NASDAQ US Benchmark Index 9.02% 31.17% 31.17% 14.61% N/A N/A 15.25%
Quarter End Performance (as of 12/31/2019)
  3 Month YTD 1 Year 3 Year 5 Year 10 Year Since
Fund
Inception8
Fund Performance *
Net Asset Value (NAV) 3.94% 24.11% 24.11% 4.88% N/A N/A 4.59%
After Tax Held 3.77% 23.45% 23.45% 4.26% N/A N/A 4.00%
After Tax Sold 2.33% 14.25% 14.25% 3.46% N/A N/A 3.25%
Market Price 4.08% 24.09% 24.09% 4.91% N/A N/A 4.62%
Index Performance **
Nasdaq US Smart Food & Beverage Index 4.14% 24.94% 24.94% 5.55% N/A N/A 5.27%
Nasdaq US Benchmark Food & Beverage Index 2.54% 24.19% 24.19% 8.31% N/A N/A 7.60%
NASDAQ US Benchmark Index 9.02% 31.17% 31.17% 14.61% N/A N/A 15.25%
3-Year Statistics (as of 12/31/2019)
  Standard Deviation Alpha Beta Sharpe Ratio Correlation
FTXG 10.99% -3.95 0.60 0.33 0.68
Nasdaq US Benchmark Food & Beverage Index 11.06% -0.33 0.57 0.63 0.64
NASDAQ US Benchmark Index 12.44% --- 1.00 1.03 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.

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 the Nasdaq US Smart Food & Beverage 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.

Nasdaq US Benchmark Food & Beverage Index - The Index is a float adjusted market capitalization-weighted index which includes securities in the US Benchmark Index that are classified in the Food & Beverage Supersector according to the Industry Classification Benchmark.

NASDAQ US Benchmark Index - The Index is a float adjusted market capitalization-weighted index designed to track the performance of securities assigned to the United States.
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 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.
4 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.
5 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.
6 Index yield represents the weighted average trailing 12-month dividend of the constituents of the Nasdaq US Smart Food & Beverage Index.
7 All market capitalization numbers are in USD$ Millions.
8 Inception Date is 9/20/2016

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.

The fund's return may not match the return of the Nasdaq US Smart Food & Beverage Index.  Securities held by the fund will generally not be bought or sold in response to market fluctuations.

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 stock owned by the fund, fund shares or stocks in general may fall in value. There can be no assurance that the fund's investment objective will be achieved.

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

The fund is concentrated in securities of the food and beverage industry. The food and beverage industry is very competitive and companies in the food and beverage industry are subject to a number of risks. Demographic and product trends, changing consumer preferences, nutritional and health-related concerns, competitive pricing, marketing campaigns, environmental factors, adverse changes in general economic conditions, government regulation, food inspection and processing control, consumer boycotts, risks of product tampering, product liability claims, and the availability and expense of liability insurance can affect the demand for, and success of, food and beverage products in the marketplace.

The fund currently has fewer assets than larger funds, and like other relatively new funds, large inflows and outflows may impact a fund's market exposure for limited periods of time.

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.

Nasdaq® and Nasdaq US Smart Food & Beverage Index are registered trademarks and service marks of Nasdaq, Inc. (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.
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 advisors 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.
First Trust Advisors L.P.
Home |  Important Legal Information |  Privacy Policy |  Business Continuity Plan |  FINRA BrokerCheck
Copyright © 2020 All rights reserved.