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First Trust RiverFront Dynamic Emerging Markets ETF (RFEM)
Investment Objective/Strategy - The First Trust RiverFront Dynamic Emerging Markets ETF is an actively managed exchange-traded fund. The Fund's investment objective is to provide capital appreciation. Under normal market conditions, the Fund will seek to achieve its investment objective by investing at least 80% of its net assets (including investment borrowings) in a portfolio of equity securities of emerging market companies, including through investments in common stock, depositary receipts and real estate investment trusts, and forward foreign currency exchange contracts.
There can be no assurance that the Fund's investment objectives will be achieved.
Fund Overview
TickerRFEM
Fund TypeInternational Equity
Investment AdvisorFirst Trust Advisors L.P.
Investor Servicing AgentBrown Brothers Harriman
Portfolio Manager/Sub-AdvisorRiverFront Investment Group, LLC
CUSIP33739P707
ISINUS33739P7078
Intraday NAVRFEMIV
Fiscal Year-End10/31
ExchangeNasdaq
Inception6/14/2016
Inception Price$49.61
Inception NAV$49.61
Expense Ratio0.95%
Current Fund Data (as of 9/17/2021)
Closing NAV1$69.76
Closing Market Price2$69.43
Bid/Ask Midpoint$69.46
Bid/Ask Discount0.43%
30-Day Median Bid/Ask Spread30.07%
Total Net Assets$48,832,094
Outstanding Shares700,002
Daily Volume2,669
Average 30-Day Daily Volume5,796
Closing Market Price 52-Week High/Low$77.94 / $58.99
Closing NAV 52-Week High/Low$77.98 / $59.40
Number of Holdings (excluding cash)106
Top Holdings (as of 9/17/2021)*
Holding Percent
Taiwan Semiconductor Manufacturing Company Ltd. 7.62%
Tencent Holdings Limited 4.85%
Alibaba Group Holding Limited (ADR) 4.48%
Samsung Electronics Co., Ltd. 3.80%
Infosys Limited 2.45%
TCS Group Holding Plc (GDR) 2.24%
Tata Consultancy Services Limited 1.92%
United Microelectronics Corporation 1.73%
Sberbank of Russia PJSC 1.72%
Sunny Optical Technology (Group) Company Limited 1.67%

* Excluding cash.  Holdings are subject to change.

Top Country Exposure (as of 9/17/2021)
Country Percent
China 30.93%
India 18.53%
Taiwan 13.67%
Brazil 6.63%
Russia 5.76%
South Korea 4.47%
South Africa 4.04%
Hong Kong 2.67%
Cyprus 2.26%
Mexico 2.16%
NAV History (Since Inception)
Past performance is not indicative of future results.
Distribution Information
Dividend per Share Amt (as of 9/20/2021)4$0.6355
30-Day SEC Yield (as of 8/31/2021)51.54%
12-Month Distribution Rate (as of 8/31/2021)61.87%
Fund Characteristics (as of 8/31/2021)8
Maximum Market Cap.$588,843
Median Market Cap.$13,270
Minimum Market Cap.$808
Price/Earnings12.65
Price/Book2.24
Price/Cash Flow8.61
Price/Sales1.70
Bid/Ask Premium/Discount (as of 9/17/2021)
  2020 Q1 2021 Q2 2021 Q3 2021
Days Traded at Premium 43 22 1 3
Days Traded at Discount 210 39 62 52
Top Sector Exposure (as of 9/17/2021)
Information Technology 28.15%
Financials 13.15%
Materials 12.10%
Consumer Discretionary 11.59%
Communication Services 9.39%
Consumer Staples 5.15%
Utilities 4.32%
Real Estate 4.20%
Energy 3.90%
Industrials 3.74%
Health Care 3.15%
Hypothetical Growth of $10,000 Since Inception (as of 9/17/2021) *


Month End Performance (as of 8/31/2021)
  3 Month YTD 1 Year 3 Year 5 Year 10 Year Since
Fund
Inception9
Fund Performance *
Net Asset Value (NAV) -3.83% 4.46% 18.66% 6.47% 8.22% N/A 10.29%
After Tax Held -4.16% 4.08% 17.71% 5.35% 7.01% N/A 9.10%
After Tax Sold -2.26% 2.65% 11.01% 4.46% 5.85% N/A 7.56%
Market Price -4.42% 4.61% 18.36% 6.43% 8.03% N/A 10.14%
Index Performance **
MSCI Emerging Markets Index -3.01% 2.84% 21.12% 9.87% 10.40% N/A 12.45%
Quarter End Performance (as of 6/30/2021)
  3 Month YTD 1 Year 3 Year 5 Year 10 Year Since
Fund
Inception9
Fund Performance *
Net Asset Value (NAV) 3.67% 8.65% 35.52% 6.80% 10.50% N/A 11.51%
After Tax Held 3.31% 8.25% 34.44% 5.67% 9.26% N/A 10.27%
After Tax Sold 2.17% 5.12% 20.97% 4.69% 7.67% N/A 8.51%
Market Price 2.54% 9.00% 35.36% 6.76% 10.38% N/A 11.40%
Index Performance **
MSCI Emerging Markets Index 5.05% 7.45% 40.90% 11.27% 13.03% N/A 13.88%
3-Year Statistics (as of 8/31/2021)
  Standard Deviation Alpha Beta Sharpe Ratio Correlation
RFEM 19.31% -3.01 0.99 0.36 0.98
MSCI Emerging Markets Index 19.19% --- 1.00 0.52 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.

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.

MSCI Emerging Markets Index - The Index is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global emerging markets.

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 Distribution Rate is calculated by dividing the fund's most recent ordinary distribution paid or declared, on an annualized basis, by the NAV price. Distribution rates may vary.
8 All market capitalization numbers are in USD$ Millions.
9 Inception Date is 6/14/2016

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.

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 that effects all or a portion of its creations and redemptions for cash rather than in-kind may be less tax-efficient

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.

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.

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.

Depositary receipts may be less liquid than the underlying shares in their primary trading market.

The use of OTC derivatives, including forward contracts, 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.

A fund's utilization of a dynamic currency hedging strategy may result in lower returns than an equivalent non-currency hedged investment when the component currencies are rising relative to the U.S. dollar. Although a fund will seek to minimize the impact of currency fluctuations on returns, the use of currency hedging will not necessarily eliminate exposure to all currency fluctuations.

Forward foreign currency exchange contracts involve certain risks, including the risk of failure of the counterparty to perform its obligations under the contract and the risk that the use of forward contracts may not serve as a complete hedge because of an imperfect correlation between movements in the prices of the contracts and the prices of the currencies hedged.

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

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.

The utilization of quantitative models entails the risks that a model may be limited or incorrect, the data on which a model relies may be incorrect or incomplete and the portfolio managers may not be successful in selecting companies for investment or determining the weighting of particular stocks in a fund's portfolio. Any of these factors could cause a fund to underperform funds that do not rely on models.

Securities of non-U.S. issuers are 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.

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.

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.

Portfolio holdings that are valued using techniques other than market quotations may be subject to greater fluctuation in their valuations from one day to the next than if market quotations were used.

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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