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First Trust NASDAQ® Clean Edge® Smart Grid Infrastructure Index Fund (GRID)
Investment Objective/Strategy - The First Trust NASDAQ® Clean Edge® Smart Grid Infrastructure Index Fund is an exchange-traded fund. The Fund seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of an equity index called the NASDAQ OMX® Clean Edge® Smart Grid Infrastructure IndexSM.
There can be no assurance that the Fund's investment objectives will be achieved.
  • The index is designed to track the performance of common stocks in the grid and electric energy infrastructure sector.The index includes companies that are primarily engaged and involved in electric grid, electric meters and devices, networks, energy storage and management, and enabling software used by the smart grid infrastructure sector.
  • To be included in the index, a security must meet certain criteria including being classified as a smart grid, electric infrastructure and/or other grid-related activities company according to Clean Edge, have a minimum worldwide market capitalization of $100 million, have a minimum free float of 20%, and have a minimum three-month average daily dollar trading volume of $500 thousand.
  • The index employs a modified market-capitalization weighting methodology. At each evaluation, the index securities are classified as Pure Play or Diversified. The Pure Play securities are given a collective weight of 80% and the Diversified securities are given a collective weight of 20% in the index.
  • The index is rebalanced quarterly and reconstituted semi-annually.
Fund Overview
Fund TypeGlobal Equity
Investment AdvisorFirst Trust Advisors L.P.
Investor Servicing AgentBank of New York Mellon
Fiscal Year-End09/30
Inception Price$30.00
Inception NAV$30.00
Rebalance FrequencyQuarterly
Gross Expense Ratio*0.75%
Net Expense Ratio*0.70%
* As of 2/1/2021
Expenses are capped contractually at 0.70% per year, at least until January 31, 2022.
Current Fund Data (as of 3/4/2021)
Closing NAV1$83.00
Closing Market Price2$82.61
Bid/Ask Midpoint$82.75
Bid/Ask Discount0.30%
30-Day Median Bid/Ask Spread30.11%
Total Net Assets$248,994,838
Outstanding Shares3,000,002
Daily Volume165,837
Average 30-Day Daily Volume61,545
Closing Market Price 52-Week High/Low$87.28 / $36.62
Closing NAV 52-Week High/Low$86.98 / $37.09
Number of Holdings (excluding cash)64
Top Holdings (as of 3/4/2021)*
Holding Percent
Johnson Controls International Plc 9.04%
Aptiv Plc 8.96%
ABB Ltd 8.10%
Eaton Corporation Plc 8.07%
Schneider Electric SE 7.70%
Quanta Services, Inc. 4.35%
Enphase Energy, Inc. 3.99%
Prysmian SpA 3.54%
SolarEdge Technologies, Inc. 3.35%
TERNA - Rete Elettrica Nazionale SpA 3.33%

* 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 3/5/2021)4$0.1462
30-Day SEC Yield (as of 1/29/2021)50.83%
Unsubsidized 30-Day SEC Yield (as of 1/29/2021)60.83%
12-Month Distribution Rate (as of 1/29/2021)70.68%
Index Yield (as of 1/29/2021)81.70%
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 2/26/2021)9
Maximum Market Cap.$648,381
Median Market Cap.$12,831
Minimum Market Cap.$269
Price/Cash Flow17.24
Bid/Ask Premium/Discount (as of 3/4/2021)
  2020 Q1 2021 Q2 2021 Q3 2021
Days Traded at Premium 187 41 --- ---
Days Traded at Discount 66 1 --- ---
Top Sector Exposure (as of 3/4/2021)
Electronic Equipment 17.09%
Electrical Components & Equipment 15.03%
Diversified Industrials 12.91%
Auto Parts 10.86%
Industrial Machinery 8.85%
Renewable Energy Equipment 8.59%
Conventional Electricity 7.51%
Semiconductors 5.45%
Heavy Construction 4.93%
Automobiles 2.22%
Month End Performance (as of 2/26/2021)
  3 Month YTD 1 Year 3 Year 5 Year 10 Year Since
Fund Performance *
Net Asset Value (NAV) 12.42% 4.84% 57.78% 20.37% 23.16% 10.68% 10.79%
After Tax Held 12.34% 4.84% 57.20% 19.82% 22.57% 10.15% 10.30%
After Tax Sold 7.35% 2.86% 34.11% 15.82% 18.71% 8.50% 8.70%
Market Price 12.84% 5.33% 57.37% 20.21% 23.27% 10.74% 10.83%
Index Performance **
NASDAQ OMX Clean Edge® Smart Grid Infrastructure IndexSM 12.76% 5.11% 60.00% 21.44% 24.22% 11.61% 11.72%
MSCI World Industrials Index 4.08% 1.63% 26.40% 7.12% 12.72% 8.64% 10.12%
S&P Composite 1500 Industrials Index 5.29% 3.46% 28.67% 8.91% 14.10% 11.82% 13.41%
Russell 3000® Index 7.29% 2.67% 35.33% 14.97% 17.41% 13.44% 14.09%
Quarter End Performance (as of 12/31/2020)
  3 Month YTD 1 Year 3 Year 5 Year 10 Year Since
Fund Performance *
Net Asset Value (NAV) 28.45% 48.25% 48.25% 17.84% 21.22% 11.04% 10.48%
After Tax Held 28.35% 47.70% 47.70% 17.31% 20.64% 10.51% 9.99%
After Tax Sold 16.84% 28.48% 28.48% 13.77% 17.04% 8.82% 8.42%
Market Price 28.25% 47.94% 47.94% 17.76% 21.21% 11.12% 10.48%
Index Performance **
NASDAQ OMX Clean Edge® Smart Grid Infrastructure IndexSM 28.83% 49.84% 49.84% 18.95% 22.13% 11.95% 11.40%
MSCI World Industrials Index 15.33% 11.68% 11.68% 6.83% 11.50% 9.08% 10.11%
S&P Composite 1500 Industrials Index 16.85% 11.69% 11.69% 7.89% 12.85% 12.15% 13.27%
Russell 3000® Index 14.68% 20.89% 20.89% 14.49% 15.43% 13.79% 14.04%
3-Year Statistics (as of 2/26/2021)
  Standard Deviation Alpha Beta Sharpe Ratio Correlation
GRID 25.32% 3.25 1.19 0.80 0.91
MSCI World Industrials Index 21.60% -7.50 1.06 0.35 0.95
S&P Composite 1500 Industrials Index 23.99% -6.83 1.17 0.41 0.94
Russell 3000® Index 19.39% --- 1.00 0.74 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. 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.

**Performance information for the NASDAQ OMX Clean Edge® Smart Grid Infrastructure IndexSM 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.

MSCI World Industrials Index - The Index is a free float-adjusted market capitalization-weighted index that is designed to measure the industrials sector performance of 23 developed markets around the world.

S&P Composite 1500 Industrials Index - The Index is a capitalization-weighted index of companies classified by GICS as industrials within the S&P Composite 1500 Index.

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 The unsubsidized 30-day SEC yield is calculated the same as the 30-day SEC yield, however it excludes contractual fee waivers and expense reimbursements.
7 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.
8 Index yield represents the weighted average trailing 12-month dividend of the constituents of the NASDAQ OMX Clean Edge® Smart Grid Infrastructure Index(SM).
9 All market capitalization numbers are in USD$ Millions.
10 Inception Date is 11/16/2009

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 OMX Clean Edge® Smart Grid Infrastructure IndexSM.  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 security owned by the fund, fund shares or securities in general may fall in value. 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.

The fund may invest in securities issued by companies concentrated in a particular sector which involves additional risks including limited diversification. The fund may invest in small capitalization and mid capitalization companies. Such companies may experience greater price volatility than larger, more established companies.

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.

Smart grid companies can be negatively affected by high costs of research and development, high capital requirements for implementation, government regulations, limited ability of industrial and utility companies to implement new technologies and uncertainty of the ability of new products to penetrate established industries.

Changes in currency exchange rates and the relative value of non-US currencies may affect the value of a fund's investments and the value of a fund's shares.

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®, NASDAQ OMX®, Clean Edge®, and NASDAQ OMX® Clean Edge® Smart Grid Infrastructure Index℠ are registered trademarks and service marks of Nasdaq, Inc. and Clean Edge, Inc., respectively (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 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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