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First Trust Merger Arbitrage ETF (MARB)
Investment Objective/Strategy - The First Trust Merger Arbitrage ETF's investment objective is to seek to provide investors with capital appreciation. Under normal market conditions, the Fund seeks to achieve its investment objective by establishing long and short positions in the equity securities of companies that are involved in a publicly-announced significant corporate event, such as a merger or acquisition.
There can be no assurance that the Fund's investment objectives will be achieved.
Fund Overview
Fund TypeMarket Neutral
Investment AdvisorFirst Trust Advisors L.P.
Investor Servicing AgentBrown Brothers Harriman
Portfolio Manager/Sub-AdvisorVivaldi Asset Management, LLC
Fiscal Year-End07/31
ExchangeNYSE Arca
Inception Price$20.01
Inception NAV$20.01
Fees And Expenses
Management Fees1.25%
Other Expenses1.05%
Total Annual Expenses2.30%
"Other Expenses" is an estimate based on the expenses the Fund expects to incur for the current fiscal year.
Current Fund Data (as of 10/26/2021)
Closing NAV1$19.57
Closing Market Price2$19.53
Bid/Ask Midpoint$19.56
Bid/Ask Discount0.05%
30-Day Median Bid/Ask Spread30.30%
Total Net Assets$7,827,803
Outstanding Shares400,002
Daily Volume1,683
Average 30-Day Daily Volume3,871
Closing Market Price 52-Week High/Low$19.94 / $19.30
Closing NAV 52-Week High/Low$19.95 / $19.30
Number of Holdings (excluding cash)41
Top Holdings - Long Exposure (as of 10/26/2021)*
Holding Percent
Athene Holding Ltd. (Class A) 9.43%
Xilinx, Inc. 7.01%
Nuance Communications, Inc. 6.31%
IHS Markit Ltd. 5.71%
VEREIT, Inc. 5.27%
Flagstar Bancorp, Inc. 4.20%
Covanta Holding Corporation 4.03%
Sanderson Farms, Inc. 3.93%
Five9, Inc. 3.87%
Magellan Health, Inc. 3.67%

* Excluding cash.  Holdings are subject to change.

Top Holdings - Short Exposure (as of 10/26/2021)*
Holding Percent
Apollo Global Management, Inc. (Class A) -9.56%
Advanced Micro Devices, Inc. -8.66%
S&P Global Inc. -5.87%
Realty Income Corporation -5.28%
New York Community Bancorp, Inc. -4.27%
Zoom Video Communications, Inc. (Class A) -3.71%
Independent Bank Corp. -3.35%
Webster Financial Corporation -2.94%
M&T Bank Corporation -2.84%
Citizens Financial Group, Inc. -2.63%

* Excluding cash.  Holdings are subject to change.

NAV History (Since Inception)
Past performance is not indicative of future results.
Fund Characteristics - Long Exposure (as of 9/30/2021)4
Maximum Market Cap.$265,524
Median Market Cap.$4,731
Minimum Market Cap.$773
Price/Cash Flow11.46
Fund Characteristics - Short Exposure (as of 9/30/2021)4
Maximum Market Cap.$124,814
Median Market Cap.$19,217
Minimum Market Cap.$2,516
Price/Cash Flow13.86
Fund Exposure (as of 10/26/2021)
Long Exposure90.60%
Short Exposure-51.34%
Net Exposure39.26%
Top Sector - Long Exposure (as of 10/26/2021)
Financials 29.10%
Information Technology 19.24%
Industrials 11.99%
Health Care 11.30%
Real Estate 7.40%
Consumer Staples 3.93%
Utilities 3.54%
Materials 2.27%
Consumer Discretionary 1.83%
Energy 0.00%
Please note that percentage of 0.00 indicates an amount less than 0.01%.
Top Sector - Short Exposure (as of 10/26/2021)
Financials -31.46%
Information Technology -12.39%
Real Estate -7.45%
Health Care -0.02%
Industrials -0.02%
Bid/Ask Premium/Discount (as of 10/26/2021)
  2020 Q1 2021 Q2 2021 Q3 2021
Days Traded at Premium 217 54 45 22
Days Traded at Discount 13 7 18 42
Hypothetical Growth of $10,000 Since Inception (as of 10/25/2021) *

Month End Performance (as of 9/30/2021)
  3 Month YTD 1 Year 3 Year 5 Year 10 Year Since
Fund Performance *
Net Asset Value (NAV) 0.25% 0.72% 1.29% N/A N/A N/A -0.97%
After Tax Held 0.25% 0.72% 1.29% N/A N/A N/A -0.97%
After Tax Sold 0.15% 0.42% 0.76% N/A N/A N/A -0.74%
Market Price 0.10% 0.56% 0.87% N/A N/A N/A -1.06%
Index Performance **
Hedge Fund Research Merger Arbitrage Index -0.81% 3.38% 8.24% N/A N/A N/A 4.65%
S&P 500 Index 0.58% 15.92% 30.00% N/A N/A N/A 19.54%
Quarter End Performance (as of 9/30/2021)
  3 Month YTD 1 Year 3 Year 5 Year 10 Year Since
Fund Performance *
Net Asset Value (NAV) 0.25% 0.72% 1.29% N/A N/A N/A -0.97%
After Tax Held 0.25% 0.72% 1.29% N/A N/A N/A -0.97%
After Tax Sold 0.15% 0.42% 0.76% N/A N/A N/A -0.74%
Market Price 0.10% 0.56% 0.87% N/A N/A N/A -1.06%
Index Performance **
Hedge Fund Research Merger Arbitrage Index -0.81% 3.38% 8.24% N/A N/A N/A 4.65%
S&P 500 Index 0.58% 15.92% 30.00% N/A N/A N/A 19.54%

*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.

Hedge Fund Research Merger Arbitrage Index - The Index is designed to be representative of merger arbitrage strategies primarily focused on opportunities in equity and equity related instruments of companies which are currently engaged in a corporate transaction.

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

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 All market capitalization numbers are in USD$ Millions.
5 Inception Date is 2/4/2020

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.

A fund may be subject to the risk that a counterparty will not fulfill its obligations which may result in significant financial loss to a fund.

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.

A fund may be a constituent of one or more indices which could greatly affect a fund's trading activity, size and volatility.

Leverage may result in losses that exceed the amount originally invested and may accelerate the rates of losses.

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.

Investments in companies that are the subject of a publicly-announced transaction carry the risk the transaction is renegotiated, takes longer to complete than originally planned and that the transaction is never completed. Any such event could cause a fund to incur a loss. The risk/reward payout of merger arbitrage strategies typically is asymmetric, with the losses in failed transactions often far exceeding the gains in successful transactions.

A fund that holds cash or invests in money market or short term securities may be less likely to achieve its investment objective and could lose money.

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.

High portfolio turnover may result in higher levels of transaction costs and may generate greater tax liabilities for shareholders.

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

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.

Securities of small- and mid-capitalization companies may experience greater price volatility and be less liquid than larger, more established companies.

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.

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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