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First Trust Indxx NextG ETF (NXTG)
  • 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 First Trust Indxx NextG ETF, formerly First Trust Nasdaq Smartphone Index 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 Indxx 5G & NextG Thematic Index SM. The Fund will normally invest at least 90% of its net assets (including investment borrowings) in the common stocks and depositary receipts that comprise the Index.
There can be no assurance that the Fund's investment objectives will be achieved.
  • The index is designed to track the performance of companies that have devoted, or have committed to devote, material resources to the research, development and application of fifth generation ("5G") and next generation digital cellular technologies as they emerge.
  • Eligible securities must have a minimum market capitalization of $500 million, six-month average daily trading volume of at least $2 million ($1 million for emerging market companies), traded for at least 90% of the total trading days in the last six months or for a security recently issued in an initial public offering over the prior three months, a minimum free float of 10% of shares outstanding and a share price of less than $10,000 for new index constituents.
  • All eligible securities are analyzed by Indxx and classified into one of two sub-themes based on their exposure to 5G and/or next generation technology, either 5G Infrastructure & Hardware or Telecommunications Service Providers:
    • 5G Infrastructure & Hardware consists of Data Center REITs, Cell Tower REITs, Equipment Manufacturers, Network Testing and Validation Equipment and Software Companies and Mobile Phone Manufacturers.
    • Telecommunications Service Providers consist of companies that operate the mobile cellular and wireless communication networks that offer access to 5G networks.
  • Eligible securities are ranked by market capitalization and up to 100 securities with the largest market capitalizations are selected. 80% of the index weight is allocated to 5G Infrastructure & Hardware and 20% of the index weight is allocated to Telecommunications Service Providers. The companies are then equally weighted within each sub-theme.
  • The index is reconstituted and rebalanced semi-annually.
Fund Overview
TickerNXTG
Fund TypeTechnology
Investment AdvisorFirst Trust Advisors L.P.
Investor Servicing AgentBank of New York Mellon
CUSIP33737K205
ISINUS33737K2050
Intraday NAVNXTGIV
Fiscal Year-End09/30
ExchangeNasdaq
Inception2/17/2011
Inception Price$30.11
Inception NAV$30.11
Rebalance FrequencySemi-Annual
Expense Ratio0.70%
Current Fund Data (as of 11/23/2020)
Closing NAV1$64.51
Closing Market Price2$64.70
Bid/Ask Midpoint$64.64
Bid/Ask Premium0.19%
30-Day Median Bid/Ask Spread30.14%
Total Net Assets$706,408,887
Outstanding Shares10,950,002
Daily Volume97,787
Average 30-Day Daily Volume68,304
Closing Market Price 52-Week High/Low$64.70 / $40.47
Closing NAV 52-Week High/Low$64.51 / $40.77
Number of Holdings (excluding cash)101
Top Holdings (as of 11/23/2020)*
Holding Percent
Xiaomi Corporation (Class B) 2.58%
Taiwan Semiconductor Manufacturing Company Ltd. (ADR) 2.13%
Infosys Limited (ADR) 2.08%
QUALCOMM Incorporated 2.05%
Wipro Limited (ADR) 1.96%
Advanced Micro Devices, Inc. 1.93%
MediaTek Inc. 1.86%
Tech Mahindra Ltd. 1.85%
NXP Semiconductors N.V. 1.82%
Renesas Electronics Corp. 1.82%

* 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 11/25/2020)4$0.1745
30-Day SEC Yield (as of 10/30/2020)51.16%
12-Month Distribution Rate (as of 10/30/2020)61.18%
Index Yield (as of 10/30/2020)72.29%
For funds with certain equity strategies, due to the negative economic impact across many industries caused by the recent 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 10/30/2020)8
Maximum Market Cap.$391,689
Median Market Cap.$23,506
Minimum Market Cap.$3,804
Price/Earnings22.42
Price/Book2.29
Price/Cash Flow8.91
Price/Sales1.44
Top Country Exposure (as of 11/23/2020)
Country Percent
United States 37.93%
Japan 10.09%
India 8.04%
China 7.55%
Taiwan 6.13%
South Korea 5.70%
Germany 2.48%
Sweden 2.41%
Switzerland 2.08%
Italy 1.85%
Bid/Ask Premium/Discount (as of 11/23/2020)
  2019 Q1 2020 Q2 2020 Q3 2020
Days Traded at Premium 155 43 44 57
Days Traded at Discount 97 19 19 7
Top Industry Exposure (as of 11/23/2020)
Semiconductors 30.29%
Integrated Telecommunication Services 12.14%
Communications Equipment 10.68%
Specialized REITs 8.58%
Wireless Telecommunication Services 7.84%
Technology Hardware, Storage & Peripherals 7.18%
Consumer Electronics 3.16%
Internet Services & Infrastructure 1.64%
Electronic Equipment & Instruments 1.44%
Month End Performance (as of 10/30/2020)
  3 Month YTD 1 Year 3 Year 5 Year 10 Year Since
Fund
Inception9
Fund Performance *
Net Asset Value (NAV) -0.35% 7.32% 13.43% 5.63% 10.52% N/A 8.29%
After Tax Held -0.47% 6.96% 12.85% 5.09% 9.96% N/A 7.79%
After Tax Sold -0.21% 4.32% 7.93% 4.08% 8.06% N/A 6.47%
Market Price -0.25% 7.22% 13.47% 5.54% 10.58% N/A 8.30%
Index Performance **
Indxx 5G & NextG Thematic Index -0.36% 8.08% 14.35% N/A N/A N/A N/A
MSCI ACWI Information Technology Index 0.64% 20.90% 32.86% 19.08% 21.23% N/A 15.76%
MSCI World Index -0.16% -1.42% 4.36% 5.96% 8.13% N/A 7.67%
Quarter End Performance (as of 9/30/2020)
  3 Month YTD 1 Year 3 Year 5 Year 10 Year Since
Fund
Inception9
Fund Performance *
Net Asset Value (NAV) 8.77% 8.44% 18.97% 6.65% 12.41% N/A 8.49%
After Tax Held 8.64% 8.08% 18.36% 6.11% 11.84% N/A 7.98%
After Tax Sold 5.19% 4.98% 11.20% 4.88% 9.62% N/A 6.62%
Market Price 8.95% 8.54% 18.88% 6.74% 12.57% N/A 8.51%
Index Performance **
Indxx 5G & NextG Thematic Index 9.07% 9.13% 19.91% N/A N/A N/A N/A
MSCI ACWI Information Technology Index 12.69% 26.45% 44.79% 23.66% 24.74% N/A 16.46%
MSCI World Index 7.93% 1.70% 10.41% 7.74% 10.48% N/A 8.09%
3-Year Statistics (as of 10/30/2020)
  Standard Deviation Alpha Beta Sharpe Ratio Correlation
NXTG 16.51% 0.36 0.86 0.30 0.89
MSCI ACWI Information Technology Index 19.93% 11.79 1.09 0.88 0.93
MSCI World Index 17.05% --- 1.00 0.32 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 Indxx 5G & NextG Thematic 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.

Following the close of trading on December 18, 2015, the name of the fund's underlying index changed from the Nasdaq OMX CEA Smartphone IndexSM to the Nasdaq CTA Smartphone IndexSM. On May 30, 2019, the fund's underlying index changed from the Nasdaq CTA Smartphone IndexSM to the Indxx 5G & NextG Thematic Index. Therefore, the fund's performance and historical returns shown for the periods prior to this date are not necessarily indicative of the performance that the fund, based on its current index, would have generated.

MSCI ACWI Information Technology Index - The Index is a free float-adjusted market capitalization-weighted index that is designed to measure the information technology sector performance of developed and emerging markets.

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

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 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 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.
7 Index yield represents the weighted average trailing 12-month dividend of the constituents of the Indxx 5G & NextG Thematic Index.
8 All market capitalization numbers are in USD$ Millions.
9 Inception Date is 2/17/2011

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 Indxx 5G & NextG Thematic 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 is not actively managed and generally will not attempt to take defensive positions in declining markets.

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

There is no assurance that the index provider will compile the index accurately, or that the index will be determined, maintained, constructed, reconstituted, rebalanced, composed, calculated or disseminated accurately.

The fund is subject to the risks associated with investing in real estate and real estate investment trusts (REITs), which include changes in the real estate market, vacancy rates, competition, volatile interest rates and economic recession.

Information technology companies and communication services companies are subject to certain risks, which may include rapidly changing technologies, short product life cycles, fierce competition, aggressive pricing and reduced profit margins, loss of patent, copyright and trademark protections, cyclical market patterns, evolving industry standards and frequent new product introductions. Such companies are particularly vulnerable to domestic and international government regulation, rely heavily on intellectual property rights, and may be adversely affected by the loss or impairment of those rights.

The fund may invest in securities issued by companies concentrated in a particular industry, sector, or geographical location, 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. These risks may be heightened for securities of companies located in, or with significant operations in, emerging market countries. The fund may invest in depositary receipts which may be less liquid than the underlying shares in their primary trading market. 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.

Economic conditions, may, without prior warning, lead to foreign government intervention and the imposition of capital controls or sanctions, which may include retaliatory actions of one government against another government, such as seizure of assets. Capital controls or sanctions may also impact the ability of the fund to buy, sell, or otherwise transfer certain securities or currency, which may cause the fund to decline in value.

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

Companies with exposure to emerging technologies may be exposed to risks that may not fully emerge until the technology is more widely used. Companies that initially develop or adopt a novel technology may not be able to capitalize on it and there is no assurance that a company will derive any significant revenue from it in the future.

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

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.

Indxx and Indxx 5G & NextG Thematic Index℠ (“Index”) are trademarks of Indxx, LLC (“Indxx”) and have been licensed for use for certain purposes by First Trust. The Fund is not sponsored, endorsed, sold or promoted by Indxx and Indxx makes no representation regarding the advisability of trading in such product. The Index is determined, composed and calculated by Indxx without regard to First Trust or 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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