As filed with the Securities and Exchange Commission on April 29, 2019
1933 Act Registration No. 333-125751
1940 Act Registration No. 811-21774
United States
Securities and Exchange Commission
Washington, D.C. 20549
Form N-1A
Registration Statement Under the Securities Act of 1933 | [ ] |
Pre-Effective Amendment No. __ | [ ] |
Post-Effective Amendment No. 108 | [X] |
and/or | |
Registration Statement Under the Investment Company Act of 1940 | [ ] |
Amendment No. 108 | [X] |
First Trust Exchange-Traded Fund
(Exact name of registrant as specified in charter)
120 East Liberty Drive, Suite 400
Wheaton, Illinois 60187
(Address of Principal Executive Offices) (Zip Code)
Registrant’s Telephone Number, including Area Code: (800) 621-1675
W. Scott Jardine, Esq., Secretary
First Trust Exchange-Traded Fund
First Trust Advisors L.P.
120 East Liberty Drive, Suite 400
Wheaton, Illinois 60187
(Name and Address of Agent for Service)
Copy to:
Eric F. Fess, Esq.
Chapman and Cutler LLP
111 West Monroe Street
Chicago, Illinois 60603
It is proposed that this filing will become effective (check appropriate box):
[ ] immediately upon filing pursuant to paragraph (b)
[X] on May 1, 2019 pursuant to paragraph (b)
[ ] 60 days after filing pursuant to paragraph (a)(1)
[ ] on (date) pursuant to paragraph (a)(1)
[ ] 75 days after filing pursuant to paragraph (a)(2)
[ ] on (date) pursuant to paragraph (a)(2) of Rule 485.
If appropriate, check the following box:
[ ] this post-effective amendment designates a new effective date for a previously filed post-effective amendment.
Contents of Post-Effective Amendment No. 108
This Post-Effective Amendment to the Registration Statement comprises the following papers and contents:
The Facing Sheet
Part A - Prospectus for First Trust Capital Strength ETF, First Trust Dow Jones Internet Index Fund, First Trust Dow Jones Select Micro Cap Index Fund, First Trust Chindia ETF, First Trust Natural Gas ETF, First Trust Water ETF, First Trust Morningstar Dividend Leaders Index Fund, First Trust NASDAQ-100 Equal Weighted Index Fund, First Trust NASDAQ-100 Ex-Technology Sector Index Fund, First Trust NASDAQ-100-Technology Sector Index Fund, First Trust NASDAQ ® ABA Community Bank Index Fund, First Trust NASDAQ ® Clean Edge ® Green Energy Index Fund, First Trust NYSE Arca Biotechnology Index Fund, First Trust S&P REIT Index Fund, First Trust US Equities Opportunities ETF, First Trust Value Line ® 100 Exchange-Traded Fund and First Trust Value Line ® Dividend Index Fund; the Prospectus for First Trust Dorsey Wright People’s Portfolio ETF, First Trust Dow 30 Equal Weight ETF, First Trust Lunt U.S. Factor Rotation ETF and First Trust Total US Market AlphaDEX ® ETF
Part B - Statement of Additional Information for First Trust Capital Strength ETF, First Trust Dow Jones Internet Index Fund, First Trust Dow Jones Select Micro Cap Index Fund, First Trust Chindia ETF, First Trust Natural Gas ETF, First Trust Water ETF, First Trust Morningstar Dividend Leaders Index Fund, First Trust NASDAQ-100 Equal Weighted Index Fund, First Trust NASDAQ-100 Ex-Technology Sector Index Fund, First Trust NASDAQ-100-Technology Sector Index Fund, First Trust NASDAQ ® ABA Community Bank Index Fund, First Trust NASDAQ ® Clean Edge ® Green Energy Index Fund, First Trust NYSE Arca Biotechnology Index Fund, First Trust S&P REIT Index Fund, First Trust US Equities Opportunities ETF, First Trust Value Line ® 100 Exchange-Traded Fund and First Trust Value Line ® Dividend Index Fund; the Statement of Additional Information for First Trust Dorsey Wright People’s Portfolio ETF, First Trust Dow 30 Equal Weight ETF, First Trust Lunt U.S. Factor Rotation ETF and First Trust Total US Market AlphaDEX ® ETF
Part C - Other Information
Signatures
Index to Exhibits
Exhibits
First Trust
Exchange-Traded Fund |
FUND NAME | TICKER SYMBOL | EXCHANGE |
First Trust Capital Strength ETF | FTCS | Nasdaq |
First Trust Dow Jones Internet Index Fund | FDN | NYSE Arca |
First Trust Dow Jones Select MicroCap Index Fund | FDM | NYSE Arca |
First Trust Chindia ETF | FNI | NYSE Arca |
First Trust Natural Gas ETF | FCG | NYSE Arca |
First Trust Water ETF | FIW | NYSE Arca |
First Trust Morningstar Dividend Leaders Index Fund | FDL | NYSE Arca |
First Trust NASDAQ-100 Equal Weighted Index Fund | QQEW | Nasdaq |
First Trust NASDAQ-100 Ex-Technology Sector Index Fund | QQXT | Nasdaq |
First Trust NASDAQ-100-Technology Sector Index Fund | QTEC | Nasdaq |
First Trust NASDAQ ® ABA Community Bank Index Fund | QABA | Nasdaq |
First Trust NASDAQ ® Clean Edge ® Green Energy Index Fund | QCLN | Nasdaq |
First Trust NYSE Arca Biotechnology Index Fund | FBT | NYSE Arca |
First Trust S&P REIT Index Fund | FRI | NYSE Arca |
First Trust US Equity Opportunities ETF | FPX | NYSE Arca |
First Trust Value Line ® 100 Exchange-Traded Fund | FVL | NYSE Arca |
First Trust Value Line ® Dividend Index Fund | FVD | NYSE Arca |
Summary Information | |
|
3 |
|
10 |
|
17 |
|
23 |
|
30 |
|
37 |
|
43 |
|
49 |
|
55 |
|
61 |
|
67 |
|
73 |
|
80 |
|
87 |
|
94 |
|
100 |
|
107 |
|
114 |
|
116 |
|
117 |
|
128 |
|
128 |
|
130 |
|
131 |
|
132 |
|
134 |
|
134 |
|
135 |
|
135 |
|
135 |
|
141 |
|
147 |
|
154 |
|
171 |
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price) | None |
Management Fees | 0.50% |
Distribution and Service (12b-1) Fees | 0.00% |
Other Expenses | 0.10% |
Total Annual Fund Operating Expenses | 0.60% |
Fee Waiver and Expense Reimbursement (1) | 0.00% |
Total Annual Fund Operating Expenses After Fee Waiver and Expense Reimbursement | 0.60% |
(1) | First Trust Advisors L.P., the Fund’s investment advisor, has agreed to waive fees and/or reimburse Fund expenses to the extent that the operating expenses of the Fund (excluding interest expense, brokerage commissions and other trading expenses, acquired fund fees and expenses, taxes and extraordinary expenses) exceed 0.65% of its average daily net assets per year (the “Expense Cap”) at least through April 30, 2020. Expenses reimbursed and fees waived under such agreement are subject to recovery by the Fund’s investment advisor for up to three years from the date the fee was waived or expense was incurred, but no reimbursement payment will be made by the Fund if it results in the Fund exceeding (i) the applicable expense limitation in place for the most recent fiscal year for which such expense limitation was in place, (ii) the applicable expense limitation in place at the time the fees were waived, or (iii) the current expense limitation. The agreement may be terminated by the Trust, on behalf of the Fund, at any time and by the Fund’s investment advisor only after April 30, 2020 upon 60 days’ written notice. |
1 Year | 3 Years | 5 Years | 10 Years |
$61 | $192 | $335 | $750 |
Best Quarter | Worst Quarter | ||
20.75% | June 30, 2009 | -18.69% | September 30, 2011 |
1 Year | 5 Years | 10 Years |
Since
Inception |
Inception
Date |
|
Return Before Taxes | -4.09% | 9.10% | 14.30% | 8.95% | 7/6/2006 |
Return After Taxes on Distributions | -4.56% | 8.39% | 13.58% | 8.32% | |
Return After Taxes on Distributions and Sale of Fund Shares | -2.41% | 6.82% | 11.66% | 7.07% | |
The Capital Strength Index SM(1) (reflects no deduction for fees, expenses or taxes) | -3.53% | 9.81% | N/A | N/A | |
S&P 500 ® Index (reflects no deduction for fees, expenses or taxes) | -4.38% | 8.49% | 13.12% | 7.82% |
(1) | On June 4, 2013, the Fund’s underlying index changed from the Credit Suisse U.S. Value Index, Powered by HOLT TM to The Capital Strength Index SM . On June 18, 2010, the Fund’s underlying index changed from the Deutsche Bank CROCI ® US+ Index TM to the Credit Suisse U.S. Value Index, Powered by HOLT TM . Therefore, the Fund’s performance and total returns shown for the period prior to June 4, 2013 are not necessarily indicative of the performance that the Fund, based on its current index, would have generated. Since the Fund’s new underlying index had an inception date of March 20, 2013, it was not in existence for some of the periods disclosed. |
• | Daniel J. Lindquist, Chairman of the Investment Committee and Managing Director of First Trust |
• | Jon C. Erickson, Senior Vice President of First Trust |
• | David G. McGarel, Chief Investment Officer, Chief Operating Officer and Managing Director of First Trust |
• | Roger F. Testin, Senior Vice President of First Trust |
• | Stan Ueland, Senior Vice President of First Trust |
• | Chris A. Peterson, Senior Vice President of First Trust |
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price) | None |
Management Fees | 0.40% |
Distribution and Service (12b-1) Fees | 0.00% |
Other Expenses | 0.12% |
Total Annual Fund Operating Expenses | 0.52% |
Fee Waiver and Expense Reimbursement (1) | 0.00% |
Total Annual Fund Operating Expenses After Fee Waiver and Expense Reimbursement | 0.52% |
(1) | First Trust Advisors L.P., the Fund’s investment advisor, has agreed to waive fees and/or reimburse Fund expenses to the extent that the operating expenses of the Fund (excluding interest expense, brokerage commissions and other trading expenses, acquired fund fees and expenses, taxes and extraordinary expenses) exceed 0.60% of its average daily net assets per year (the “Expense Cap”) at least through April 30, 2020. Expenses reimbursed and fees waived under such agreement are subject to recovery by the Fund’s investment advisor for up to three years from the date the fee was waived or expense was incurred, but no reimbursement payment will be made by the Fund if it results in the Fund exceeding (i) the applicable expense limitation in place for the most recent fiscal year for which such expense limitation was in place, (ii) the applicable expense limitation in place at the time the fees were waived, or (iii) the current expense limitation. The agreement may be terminated by the Trust, on behalf of the Fund, at any time and by the Fund’s investment advisor only after April 30, 2020 upon 60 days’ written notice. |
1 Year | 3 Years | 5 Years | 10 Years |
$53 | $167 | $291 | $653 |
• | Internet Commerce. Online retail, search, financial services, investment products, social media, advertising, travel platforms and Internet radio. |
• | Internet Services. Various services performed via the Internet, cloud computing, enterprise software, networking capabilities, website creation tools and digital marketing platforms. |
Best Quarter | Worst Quarter | ||
25.52% | September 30, 2010 | -19.04% | September 30, 2011 |
1 Year | 5 Years | 10 Years |
Since
Inception |
Inception
Date |
|
Return Before Taxes | 6.23% | 14.28% | 23.63% | 15.15% | 6/19/2006 |
Return After Taxes on Distributions | 6.23% | 14.28% | 23.62% | 15.13% | |
Return After Taxes on Distributions and Sale of Fund Shares | 3.69% | 11.50% | 20.75% | 13.13% | |
Dow Jones Internet Composite Index SM (reflects no deduction for fees, expenses or taxes) | 6.77% | 14.84% | 24.30% | 15.76% | |
S&P 500 ® Index (reflects no deduction for fees, expenses or taxes) | -4.38% | 8.49% | 13.12% | 8.03% | |
S&P Composite 1500 ® Information Technology Index (reflects no deduction for fees, expenses or taxes) | -0.75% | 14.46% | 18.17% | 11.81% |
• | Daniel J. Lindquist, Chairman of the Investment Committee and Managing Director of First Trust |
• | Jon C. Erickson, Senior Vice President of First Trust |
• | David G. McGarel, Chief Investment Officer, Chief Operating Officer and Managing Director of First Trust |
• | Roger F. Testin, Senior Vice President of First Trust |
• | Stan Ueland, Senior Vice President of First Trust |
• | Chris A. Peterson, Senior Vice President of First Trust |
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price) | None |
Management Fees | 0.50% |
Distribution and Service (12b-1) Fees | 0.00% |
Other Expenses | 0.23% |
Total Annual Fund Operating Expenses | 0.73% |
Fee Waiver and Expense Reimbursement (1) | 0.13% |
Total Annual Fund Operating Expenses After Fee Waiver and Expense Reimbursement | 0.60% |
(1) | First Trust Advisors L.P., the Fund’s investment advisor, has agreed to waive fees and/or reimburse Fund expenses to the extent that the operating expenses of the Fund (excluding interest expense, brokerage commissions and other trading expenses, acquired fund fees and expenses, taxes and extraordinary expenses) exceed 0.60% of its average daily net assets per year (the “Expense Cap”) at least through April 30, 2020. Expenses reimbursed and fees waived under such agreement are subject to recovery by the Fund’s investment advisor for up to three years from the date the fee was waived or expense was incurred, but no reimbursement payment will be made by the Fund if it results in the Fund exceeding (i) the applicable expense limitation in place for the most recent fiscal year for which such expense limitation was in place, (ii) the applicable expense limitation in place at the time the fees were waived, or (iii) the current expense limitation. The agreement may be terminated by the Trust, on behalf of the Fund, at any time and by the Fund’s investment advisor only after April 30, 2020 upon 60 days’ written notice. |
1 Year | 3 Years | 5 Years | 10 Years |
$61 | $220 | $393 | $894 |
• | Within the top 1,000 securities by full market capitalization |
• | Within the top 1,000 securities by three-month value traded |
• | Within the top 1,500 securities by one-month value traded |
• | Trailing P/E ratio (highest 20% are excluded) |
• | Trailing price/sales ratio (highest 20% are excluded) |
• | Per-share profit change for the previous quarter (lowest 20% are excluded) |
• | Operating profit margin (lowest 20% are excluded) |
• | Six-month total return (lowest 20% are excluded) |
Best Quarter | Worst Quarter | ||
21.68% | June 30, 2009 | -25.11% | September 30, 2011 |
1 Year | 5 Years | 10 Years |
Since
Inception |
Inception
Date |
|
Return Before Taxes | -12.68% | 5.86% | 11.85% | 6.50% | 9/27/2005 |
Return After Taxes on Distributions | -13.08% | 5.34% | 11.39% | 6.11% | |
Return After Taxes on Distributions and Sale of Fund Shares | -7.48% | 4.33% | 9.64% | 5.11% | |
Dow Jones Select MicroCap Index SM (reflects no deduction for fees, expenses or taxes) | -12.21% | 6.46% | 12.54% | 7.19% | |
Russell 2000 ® Index (reflects no deduction for fees, expenses or taxes) | -11.01% | 4.41% | 11.97% | 6.99% |
• | Daniel J. Lindquist, Chairman of the Investment Committee and Managing Director of First Trust |
• | Jon C. Erickson, Senior Vice President of First Trust |
• | David G. McGarel, Chief Investment Officer, Chief Operating Officer and Managing Director of First Trust |
• | Roger F. Testin, Senior Vice President of First Trust |
• | Stan Ueland, Senior Vice President of First Trust |
• | Chris A. Peterson, Senior Vice President of First Trust |
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price) | None |
Management Fees | 0.40% |
Distribution and Service (12b-1) Fees | 0.00% |
Other Expenses | 0.19% |
Total Annual Fund Operating Expenses | 0.59% |
Fee Waiver and Expense Reimbursement (1) | 0.00% |
Total Annual Fund Operating Expenses After Fee Waiver and Expense Reimbursement | 0.59% |
(1) | First Trust Advisors L.P., the Fund’s investment advisor, has agreed to waive fees and/or reimburse Fund expenses to the extent that the operating expenses of the Fund (excluding interest expense, brokerage commissions and other trading expenses, acquired fund fees and expenses, taxes and extraordinary expenses) exceed 0.60% of its average daily net assets per year (the “Expense Cap”) at least through April 30, 2020. Expenses reimbursed and fees waived under such agreement are subject to recovery by the Fund’s investment advisor for up to three years from the date the fee was waived or expense was incurred, but no reimbursement payment will be made by the Fund if it results in the Fund exceeding (i) the applicable expense limitation in place for the most recent fiscal year for which such expense limitation was in place, (ii) the applicable expense limitation in place at the time the fees were waived, or (iii) the current expense limitation. The agreement may be terminated by the Trust, on behalf of the Fund, at any time and by the Fund’s investment advisor only after April 30, 2020 upon 60 days’ written notice. |
1 Year | 3 Years | 5 Years | 10 Years |
$60 | $189 | $329 | $738 |
• | Each Chinese and Indian security ranked #1 through #3 is assigned a weight of 7.0%. |
• | Each Chinese and Indian security ranked #4 through #6 is assigned a weight of 4.0%. |
• | Each Chinese and Indian security ranked #7 through #9 is assigned a weight of 2.0%. |
• | The remaining Index weight is equally distributed among the remaining securities. |
Best Quarter | Worst Quarter | ||
47.58% | June 30, 2009 | -26.46% | September 30, 2011 |
1 Year | 5 Years | 10 Years |
Since
Inception |
Inception
Date |
|
Return Before Taxes | -20.68% | 3.14% | 11.44% | 4.99% | 5/8/2007 |
Return After Taxes on Distributions | -21.15% | 2.59% | 10.92% | 4.52% | |
Return After Taxes on Distributions and Sale of Fund Shares | -12.21% | 2.18% | 9.27% | 3.77% | |
ISE ChIndia TM Index (reflects no deduction for fees, expenses or taxes) | -20.27% | 3.64% | 12.00% | 5.53% | |
Russell 3000 ® Index (reflects no deduction for fees, expenses or taxes) | -5.24% | 7.91% | 13.18% | 6.66% | |
MSCI Emerging Markets Index (reflects no deduction for fees, expenses or taxes) | -14.58% | 1.65% | 8.02% | 2.17% |
• | Daniel J. Lindquist, Chairman of the Investment Committee and Managing Director of First Trust |
• | Jon C. Erickson, Senior Vice President of First Trust |
• | David G. McGarel, Chief Investment Officer, Chief Operating Officer and Managing Director of First Trust |
• | Roger F. Testin, Senior Vice President of First Trust |
• | Stan Ueland, Senior Vice President of First Trust |
• | Chris A. Peterson, Senior Vice President of First Trust |
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price) | None |
Management Fees | 0.40% |
Distribution and Service (12b-1) Fees | 0.00% |
Other Expenses (1) | 0.23% |
Total Annual Fund Operating Expenses | 0.63% |
Fee Waiver and Expense Reimbursement (2) | 0.03% |
Total Annual Fund Operating Expenses After Fee Waiver and Expense Reimbursement | 0.60% |
(1) | Expenses have been restated to reflect the current fiscal year. |
(2) | First Trust Advisors L.P., the Fund’s investment advisor, has agreed to waive fees and/or reimburse Fund expenses to the extent that the operating expenses of the Fund (excluding interest expense, brokerage commissions and other trading expenses, acquired fund fees and expenses, taxes and extraordinary expenses) exceed 0.60% of its average daily net assets per year (the “Expense Cap”) at least through April 30, 2020. Expenses reimbursed and fees waived under such agreement are subject to recovery by the Fund’s investment advisor for up to three years from the date the fee was waived or expense was incurred, but no reimbursement payment will be made by the Fund if it results in the Fund exceeding (i) the applicable expense limitation in place for the most recent fiscal year for which such expense limitation was in place, (ii) the applicable expense limitation in place at the time the fees were waived, or (iii) the current expense limitation. The agreement may be terminated by the Trust, on behalf of the Fund, at any time and by the Fund’s investment advisor only after April 30, 2020 upon 60 days’ written notice. |
1 Year | 3 Years | 5 Years | 10 Years |
$61 | $199 | $348 | $784 |
• | unexpected drilling conditions; |
• | pressure or irregularities in formations; |
• | equipment failures or repairs; |
• | fires or other accidents; |
• | adverse weather conditions; |
• | pipeline ruptures or spills; and |
• | shortages or delays in the availability of drilling rigs and the delivery of equipment. |
Best Quarter | Worst Quarter | ||
30.82% | September 30, 2009 | -40.14% | September 30, 2015 |
1 Year | 5 Years | 10 Years |
Since
Inception |
Inception
Date |
|
Return Before Taxes | -34.77% | -30.38% | -12.08% | -14.34% | 5/8/2007 |
Return After Taxes on Distributions | -35.04% | -30.88% | -12.46% | -14.69% | |
Return After Taxes on Distributions and Sale of Fund Shares | -20.51% | -18.38% | -7.66% | -8.28% | |
ISE-Revere Natural Gas TM Index (reflects no deduction for fees, expenses or taxes) | -34.54% | -30.40% | -11.77% | -14.02% | |
S&P Composite 1500 ® Energy Index (reflects no deduction for fees, expenses or taxes) | -19.31% | -6.56% | 3.19% | 0.57% | |
Russell 3000 ® Index (reflects no deduction for fees, expenses or taxes) | -5.24% | 7.91% | 13.18% | 6.66% |
• | Daniel J. Lindquist, Chairman of the Investment Committee and Managing Director of First Trust |
• | Jon C. Erickson, Senior Vice President of First Trust |
• | David G. McGarel, Chief Investment Officer, Chief Operating Officer and Managing Director of First Trust |
• | Roger F. Testin, Senior Vice President of First Trust |
• | Stan Ueland, Senior Vice President of First Trust |
• | Chris A. Peterson, Senior Vice President of First Trust |
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price) | None |
Management Fees | 0.40% |
Distribution and Service (12b-1) Fees | 0.00% |
Other Expenses | 0.15% |
Total Annual Fund Operating Expenses | 0.55% |
Fee Waiver and Expense Reimbursement (1) | 0.00% |
Total Annual Fund Operating Expenses After Fee Waiver and Expense Reimbursement | 0.55% |
(1) | First Trust Advisors L.P., the Fund’s investment advisor, has agreed to waive fees and/or reimburse Fund expenses to the extent that the operating expenses of the Fund (excluding interest expense, brokerage commissions and other trading expenses, acquired fund fees and expenses, taxes and extraordinary expenses) exceed 0.60% of its average daily net assets per year (the “Expense Cap”) at least through April 30, 2020. Expenses reimbursed and fees waived under such agreement are subject to recovery by the Fund’s investment advisor for up to three years from the date the fee was waived or expense was incurred, but no reimbursement payment will be made by the Fund if it results in the Fund exceeding (i) the applicable expense limitation in place for the most recent fiscal year for which such expense limitation was in place, (ii) the applicable expense limitation in place at the time the fees were waived, or (iii) the current expense limitation. The agreement may be terminated by the Trust, on behalf of the Fund, at any time and by the Fund’s investment advisor only after April 30, 2020 upon 60 days’ written notice. |
1 Year | 3 Years | 5 Years | 10 Years |
$56 | $176 | $307 | $690 |
• | Securities ranked 1 through 10 by market capitalization are assigned a weight of 4%; |
• | Securities ranked 11 through 15 by market capitalization are assigned a weight of 3.5%; |
• | Securities ranked 16 through 20 by market capitalization are assigned a weight of 3.0%; |
• | Securities ranked 21 through 30 by market capitalization are assigned a weight of 2.0%; |
• | The remaining weight is equally allocated among the remaining securities. |
Best Quarter | Worst Quarter | ||
18.52% | June 30, 2009 | -19.05% | September 30, 2011 |
1 Year | 5 Years | 10 Years |
Since
Inception |
Inception
Date |
|
Return Before Taxes | -8.89% | 6.26% | 11.80% | 7.86% | 5/8/2007 |
Return After Taxes on Distributions | -9.14% | 5.89% | 11.43% | 7.52% | |
Return After Taxes on Distributions and Sale of Fund Shares | -5.25% | 4.71% | 9.64% | 6.28% | |
ISE Clean Edge Water Index (reflects no deduction for fees, expenses or taxes) | -8.59% | 6.79% | 12.49% | 8.52% | |
Russell 3000 ® Index (reflects no deduction for fees, expenses or taxes) | -5.24% | 7.91% | 13.18% | 6.66% |
• | Daniel J. Lindquist, Chairman of the Investment Committee and Managing Director of First Trust |
• | Jon C. Erickson, Senior Vice President of First Trust |
• | David G. McGarel, Chief Investment Officer, Chief Operating Officer and Managing Director of First Trust |
• | Roger F. Testin, Senior Vice President of First Trust |
• | Stan Ueland, Senior Vice President of First Trust |
• | Chris A. Peterson, Senior Vice President of First Trust |
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price) | None |
Management Fees | 0.30% |
Distribution and Service (12b-1) Fees | 0.00% |
Other Expenses | 0.17% |
Total Annual Fund Operating Expenses | 0.47% |
Fee Waiver and Expense Reimbursement (1) | 0.02% |
Total Annual Fund Operating Expenses After Fee Waiver and Expense Reimbursement | 0.45% |
(1) | First Trust Advisors L.P., the Fund’s investment advisor, has agreed to waive fees and/or reimburse Fund expenses to the extent that the operating expenses of the Fund (excluding interest expense, brokerage commissions and other trading expenses, acquired fund fees and expenses, taxes and extraordinary expenses) exceed 0.45% of its average daily net assets per year (the “Expense Cap”) at least through April 30, 2020. Expenses reimbursed and fees waived under such agreement are subject to recovery by the Fund’s investment advisor for up to three years from the date the fee was waived or expense was incurred, but no reimbursement payment will be made by the Fund if it results in the Fund exceeding (i) the applicable expense limitation in place for the most recent fiscal year for which such expense limitation was in place, (ii) the applicable expense limitation in place at the time the fees were waived, or (iii) the current expense limitation. The agreement may be terminated by the Trust, on behalf of the Fund, at any time and by the Fund’s investment advisor only after April 30, 2020 upon 60 days’ written notice. |
1 Year | 3 Years | 5 Years | 10 Years |
$46 | $149 | $261 | $590 |
Best Quarter | Worst Quarter | ||
26.37% | June 30, 2009 | -25.26% | March 31, 2009 |
1 Year | 5 Years | 10 Years |
Since
Inception |
Inception
Date |
|
Return Before Taxes | -5.87% | 8.10% | 11.61% | 6.39% | 3/9/2006 |
Return After Taxes on Distributions | -7.31% | 6.52% | 10.02% | 4.86% | |
Return After Taxes on Distributions and Sale of Fund Shares | -3.45% | 5.59% | 8.74% | 4.34% | |
Morningstar ® Dividend Leaders Index SM (reflects no deduction for fees, expenses or taxes) | -5.47% | 8.62% | 12.17% | 6.91% | |
S&P 500 ® Index (reflects no deduction for fees, expenses or taxes) | -4.38% | 8.49% | 13.12% | 7.68% |
• | Daniel J. Lindquist, Chairman of the Investment Committee and Managing Director of First Trust |
• | Jon C. Erickson, Senior Vice President of First Trust |
• | David G. McGarel, Chief Investment Officer, Chief Operating Officer and Managing Director of First Trust |
• | Roger F. Testin, Senior Vice President of First Trust |
• | Stan Ueland, Senior Vice President of First Trust |
• | Chris A. Peterson, Senior Vice President of First Trust |
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price) | None |
Management Fees | 0.40% |
Distribution and Service (12b-1) Fees | 0.00% |
Other Expenses | 0.20% |
Total Annual Fund Operating Expenses | 0.60% |
Fee Waiver and Expense Reimbursement (1) | 0.00% |
Total Annual Fund Operating Expenses After Fee Waiver and Expense Reimbursement | 0.60% |
(1) | First Trust Advisors L.P., the Fund’s investment advisor, has agreed to waive fees and/or reimburse Fund expenses to the extent that the operating expenses of the Fund (excluding interest expense, brokerage commissions and other trading expenses, acquired fund fees and expenses, taxes and extraordinary expenses) exceed 0.60% of its average daily net assets per year (the “Expense Cap”) at least through April 30, 2020. Expenses reimbursed and fees waived under such agreement are subject to recovery by the Fund’s investment advisor for up to three years from the date the fee was waived or expense was incurred, but no reimbursement payment will be made by the Fund if it results in the Fund exceeding (i) the applicable expense limitation in place for the most recent fiscal year for which such expense limitation was in place, (ii) the applicable expense limitation in place at the time the fees were waived, or (iii) the current expense limitation. The agreement may be terminated by the Trust, on behalf of the Fund, at any time and by the Fund’s investment advisor only after April 30, 2020 upon 60 days’ written notice. |
1 Year | 3 Years | 5 Years | 10 Years |
$61 | $192 | $335 | $750 |
Best Quarter | Worst Quarter | ||
21.82% | June 30, 2009 | -15.43% | September 30, 2011 |
1 Year | 5 Years | 10 Years |
Since
Inception |
Inception
Date |
|
Return Before Taxes | -5.16% | 9.27% | 16.76% | 8.78% | 4/19/2006 |
Return After Taxes on Distributions | -5.36% | 8.93% | 16.46% | 8.56% | |
Return After Taxes on Distributions and Sale of Fund Shares | -3.04% | 7.16% | 14.17% | 7.20% | |
NASDAQ-100 Equal Weighted Index SM (reflects no deduction for fees, expenses or taxes) | -4.61% | 9.93% | 17.48% | 9.46% | |
S&P 500 ® Index (reflects no deduction for fees, expenses or taxes) | -4.38% | 8.49% | 13.12% | 7.49% | |
NASDAQ-100 Index ® (reflects no deduction for fees, expenses or taxes) | 0.04% | 13.34% | 19.29% | 11.82% |
• | Daniel J. Lindquist, Chairman of the Investment Committee and Managing Director of First Trust |
• | Jon C. Erickson, Senior Vice President of First Trust |
• | David G. McGarel, Chief Investment Officer, Chief Operating Officer and Managing Director of First Trust |
• | Roger F. Testin, Senior Vice President of First Trust |
• | Stan Ueland, Senior Vice President of First Trust |
• | Chris A. Peterson, Senior Vice President of First Trust |
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price) | None |
Management Fees | 0.40% |
Distribution and Service (12b-1) Fees | 0.00% |
Other Expenses | 0.24% |
Total Annual Fund Operating Expenses | 0.64% |
Fee Waiver and Expense Reimbursement (1) | 0.04% |
Total Annual Fund Operating Expenses After Fee Waiver and Expense Reimbursement | 0.60% |
(1) | First Trust Advisors L.P., the Fund’s investment advisor, has agreed to waive fees and/or reimburse Fund expenses to the extent that the operating expenses of the Fund (excluding interest expense, brokerage commissions and other trading expenses, acquired fund fees and expenses, taxes and extraordinary expenses) exceed 0.60% of its average daily net assets per year (the “Expense Cap”) at least through April 30, 2020. Expenses reimbursed and fees waived under such agreement are subject to recovery by the Fund’s investment advisor for up to three years from the date the fee was waived or expense was incurred, but no reimbursement payment will be made by the Fund if it results in the Fund exceeding (i) the applicable expense limitation in place for the most recent fiscal year for which such expense limitation was in place, (ii) the applicable expense limitation in place at the time the fees were waived, or (iii) the current expense limitation. The agreement may be terminated by the Trust, on behalf of the Fund, at any time and by the Fund’s investment advisor only after April 30, 2020 upon 60 days’ written notice. |
1 Year | 3 Years | 5 Years | 10 Years |
$61 | $201 | $353 | $795 |
Best Quarter | Worst Quarter | ||
21.76% | September 30, 2009 | -15.08% | September 30, 2011 |
1 Year | 5 Years | 10 Years |
Since
Inception |
Inception
Date |
|
Return Before Taxes | -5.58% | 6.10% | 14.87% | 7.69% | 2/8/2007 |
Return After Taxes on Distributions | -5.71% | 5.88% | 14.63% | 7.49% | |
Return After Taxes on Distributions and Sale of Fund Shares | -3.30% | 4.66% | 12.48% | 6.22% | |
NASDAQ-100 Ex-Tech Sector Index SM (reflects no deduction for fees, expenses or taxes) | -5.06% | 6.72% | 15.57% | 8.35% | |
Russell 1000 ® Index (reflects no deduction for fees, expenses or taxes) | -4.78% | 8.21% | 13.28% | 6.99% |
• | Daniel J. Lindquist, Chairman of the Investment Committee and Managing Director of First Trust |
• | Jon C. Erickson, Senior Vice President of First Trust |
• | David G. McGarel, Chief Investment Officer, Chief Operating Officer and Managing Director of First Trust |
• | Roger F. Testin, Senior Vice President of First Trust |
• | Stan Ueland, Senior Vice President of First Trust |
• | Chris A. Peterson, Senior Vice President of First Trust |
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price) | None |
Management Fees | 0.40% |
Distribution and Service (12b-1) Fees | 0.00% |
Other Expenses | 0.17% |
Total Annual Fund Operating Expenses | 0.57% |
Fee Waiver and Expense Reimbursement (1) | 0.00% |
Total Annual Fund Operating Expenses After Fee Waiver and Expense Reimbursement | 0.57% |
(1) | First Trust Advisors L.P., the Fund’s investment advisor, has agreed to waive fees and/or reimburse Fund expenses to the extent that the operating expenses of the Fund (excluding interest expense, brokerage commissions and other trading expenses, acquired fund fees and expenses, taxes and extraordinary expenses) exceed 0.60% of its average daily net assets per year (the “Expense Cap”) at least through April 30, 2020. Expenses reimbursed and fees waived under such agreement are subject to recovery by the Fund’s investment advisor for up to three years from the date the fee was waived or expense was incurred, but no reimbursement payment will be made by the Fund if it results in the Fund exceeding (i) the applicable expense limitation in place for the most recent fiscal year for which such expense limitation was in place, (ii) the applicable expense limitation in place at the time the fees were waived, or (iii) the current expense limitation. The agreement may be terminated by the Trust, on behalf of the Fund, at any time and by the Fund’s investment advisor only after April 30, 2020 upon 60 days’ written notice. |
1 Year | 3 Years | 5 Years | 10 Years |
$58 | $183 | $318 | $714 |
Best Quarter | Worst Quarter | ||
22.52% | June 30, 2009 | -15.89% | September 30, 2011 |
1 Year | 5 Years | 10 Years |
Since
Inception |
Inception
Date |
|
Return Before Taxes | -4.70% | 15.17% | 20.11% | 10.80% | 4/19/2006 |
Return After Taxes on Distributions | -5.03% | 14.63% | 19.72% | 10.51% | |
Return After Taxes on Distributions and Sale of Fund Shares | -2.77% | 11.93% | 17.20% | 8.96% | |
NASDAQ-100 Technology Sector Index SM (reflects no deduction for fees, expenses or taxes) | -4.14% | 15.89% | 20.87% | 11.49% | |
S&P 500 ® Index (reflects no deduction for fees, expenses or taxes) | -4.38% | 8.49% | 13.12% | 7.49% | |
S&P 500 Information Technology Index (reflects no deduction for fees, expenses or taxes) | -0.29% | 14.93% | 18.36% | 10.79% |
• | Daniel J. Lindquist, Chairman of the Investment Committee and Managing Director of First Trust |
• | Jon C. Erickson, Senior Vice President of First Trust |
• | David G. McGarel, Chief Investment Officer, Chief Operating Officer and Managing Director of First Trust |
• | Roger F. Testin, Senior Vice President of First Trust |
• | Stan Ueland, Senior Vice President of First Trust |
• | Chris A. Peterson, Senior Vice President of First Trust |
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price) | None |
Management Fees | 0.40% |
Distribution and Service (12b-1) Fees | 0.00% |
Other Expenses | 0.20% |
Total Annual Fund Operating Expenses | 0.60% |
Fee Waiver and Expense Reimbursement (1) | 0.00% |
Total Annual Fund Operating Expenses After Fee Waiver and Expense Reimbursement | 0.60% |
(1) | First Trust Advisors L.P., the Fund’s investment advisor, has agreed to waive fees and/or reimburse Fund expenses to the extent that the operating expenses of the Fund (excluding interest expense, brokerage commissions and other trading expenses, acquired fund fees and expenses, taxes and extraordinary expenses) exceed 0.60% of its average daily net assets per year (the “Expense Cap”) at least through April 30, 2020. Expenses reimbursed and fees waived under such agreement are subject to recovery by the Fund’s investment advisor for up to three years from the date the fee was waived or expense was incurred, but no reimbursement payment will be made by the Fund if it results in the Fund exceeding (i) the applicable expense limitation in place for the most recent fiscal year for which such expense limitation was in place, (ii) the applicable expense limitation in place at the time the fees were waived, or (iii) the current expense limitation. The agreement may be terminated by the Trust, on behalf of the Fund, at any time and by the Fund’s investment advisor only after April 30, 2020 upon 60 days’ written notice. |
1 Year | 3 Years | 5 Years | 10 Years |
$61 | $192 | $335 | $750 |
Best Quarter | Worst Quarter | ||
28.28% | December 31, 2016 | -21.25% | September 30, 2011 |
1 Year | 5 Years |
Since
Inception |
Inception
Date |
|
Return Before Taxes | -16.14% | 5.15% | 10.03% | 6/29/2009 |
Return After Taxes on Distributions | -16.72% | 4.50% | 9.39% | |
Return After Taxes on Distributions and Sale of Fund Shares | -9.52% | 3.71% | 7.91% | |
NASDAQ OMX ® ABA Community Bank Index SM (reflects no deduction for fees, expenses or taxes) | -15.69% | 5.79% | 10.72% | |
S&P Composite 1500 ® Financials Index (reflects no deduction for fees, expenses or taxes) | -13.03% | 8.31% | 12.10% | |
Russell 3000 ® Index (reflects no deduction for fees, expenses or taxes) | -5.24% | 7.91% | 13.33% |
• | Daniel J. Lindquist, Chairman of the Investment Committee and Managing Director of First Trust |
• | Jon C. Erickson, Senior Vice President of First Trust |
• | David G. McGarel, Chief Investment Officer, Chief Operating Officer and Managing Director of First Trust |
• | Roger F. Testin, Senior Vice President of First Trust |
• | Stan Ueland, Senior Vice President of First Trust |
• | Chris A. Peterson, Senior Vice President of First Trust |
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price) | None |
Management Fees | 0.40% |
Distribution and Service (12b-1) Fees | 0.00% |
Other Expenses | 0.25% |
Total Annual Fund Operating Expenses | 0.65% |
Fee Waiver and Expense Reimbursement (1) | 0.05% |
Total Annual Fund Operating Expenses After Fee Waiver and Expense Reimbursement | 0.60% |
(1) | First Trust Advisors L.P., the Fund’s investment advisor, has agreed to waive fees and/or reimburse Fund expenses to the extent that the operating expenses of the Fund (excluding interest expense, brokerage commissions and other trading expenses, acquired fund fees and expenses, taxes and extraordinary expenses) exceed 0.60% of its average daily net assets per year (the “Expense Cap”) at least through April 30, 2020. Expenses reimbursed and fees waived under such agreement are subject to recovery by the Fund’s investment advisor for up to three years from the date the fee was waived or expense was incurred, but no reimbursement payment will be made by the Fund if it results in the Fund exceeding (i) the applicable expense limitation in place for the most recent fiscal year for which such expense limitation was in place, (ii) the applicable expense limitation in place at the time the fees were waived, or (iii) the current expense limitation. The agreement may be terminated by the Trust, on behalf of the Fund, at any time and by the Fund’s investment advisor only after April 30, 2020 upon 60 days’ written notice. |
1 Year | 3 Years | 5 Years | 10 Years |
$61 | $203 | $357 | $806 |
• | Advanced Materials (nanotech, membranes, silicon, lithium, carbon capture and utilization and other materials and processes that enable clean-energy technologies) |
• | Energy Intelligence (conservation, automated meter reading, energy management systems, smart grid, superconductors and power controls) |
• | Energy Storage & Conversion (advanced batteries, hybrid drivetrains, hydrogen, fuel cells for stationary, portable and transportation applications) |
• | Renewable Electricity Generation & Renewable Fuels (solar photovoltaics, concentrating solar, wind, geothermal, and ethanol, biodiesel, biofuel enabling enzymes) |
Best Quarter | Worst Quarter | ||
30.69% | June 30, 2009 | -34.55% | September 30, 2011 |
1 Year | 5 Years | 10 Years |
Since
Inception |
Inception
Date |
|
Return Before Taxes | -12.22% | 0.53% | 5.28% | -0.56% | 2/8/2007 |
Return After Taxes on Distributions | -12.56% | 0.17% | 5.02% | -0.76% | |
Return After Taxes on Distributions and Sale of Fund Shares | -7.22% | 0.24% | 4.09% | -0.52% | |
NASDAQ ® Clean Edge ® Green Energy Index SM (reflects no deduction for fees, expenses or taxes) | -12.11% | 0.49% | 5.35% | -0.38% | |
Russell 2000 ® Index (reflects no deduction for fees, expenses or taxes) | -11.01% | 4.41% | 11.97% | 5.76% |
• | Daniel J. Lindquist, Chairman of the Investment Committee and Managing Director of First Trust |
• | Jon C. Erickson, Senior Vice President of First Trust |
• | David G. McGarel, Chief Investment Officer, Chief Operating Officer and Managing Director of First Trust |
• | Roger F. Testin, Senior Vice President of First Trust |
• | Stan Ueland, Senior Vice President of First Trust |
• | Chris A. Peterson, Senior Vice President of First Trust |
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price) | None |
Management Fees | 0.40% |
Distribution and Service (12b-1) Fees | 0.00% |
Other Expenses | 0.17% |
Total Annual Fund Operating Expenses | 0.57% |
Fee Waiver and Expense Reimbursement (1) | 0.00% |
Total Annual Fund Operating Expenses After Fee Waiver and Expense Reimbursement | 0.57% |
(1) | First Trust Advisors L.P., the Fund’s investment advisor, has agreed to waive fees and/or reimburse Fund expenses to the extent that the operating expenses of the Fund (excluding interest expense, brokerage commissions and other trading expenses, acquired fund fees and expenses, taxes and extraordinary expenses) exceed 0.60% of its average daily net assets per year (the “Expense Cap”) at least through April 30, 2020. Expenses reimbursed and fees waived under such agreement are subject to recovery by the Fund’s investment advisor for up to three years from the date the fee was waived or expense was incurred, but no reimbursement payment will be made by the Fund if it results in the Fund exceeding (i) the applicable expense limitation in place for the most recent fiscal year for which such expense limitation was in place, (ii) the applicable expense limitation in place at the time the fees were waived, or (iii) the current expense limitation. The agreement may be terminated by the Trust, on behalf of the Fund, at any time and by the Fund’s investment advisor only after April 30, 2020 upon 60 days’ written notice. |
1 Year | 3 Years | 5 Years | 10 Years |
$58 | $183 | $318 | $714 |
Best Quarter | Worst Quarter | ||
32.14% | September 30, 2009 | -24.61% | September 30, 2011 |
1 Year | 5 Years | 10 Years |
Since
Inception |
Inception
Date |
|
Return Before Taxes | -0.21% | 12.48% | 20.24% | 15.81% | 6/19/2006 |
Return After Taxes on Distributions | -0.21% | 12.47% | 20.23% | 15.77% | |
Return After Taxes on Distributions and Sale of Fund Shares | -0.12% | 9.98% | 17.58% | 13.73% | |
NYSE Arca Biotechnology Index SM (reflects no deduction for fees, expenses or taxes) | 0.27% | 12.96% | 20.84% | 16.43% | |
S&P Composite 1500 ® Health Care Index (reflects no deduction for fees, expenses or taxes) | 6.71% | 11.40% | 15.16% | 11.20% | |
NASDAQ ® Biotechnology Index (reflects no deduction for fees, expenses or taxes) | -8.86% | 5.54% | 15.71% | 12.50% | |
S&P 500 ® Index (reflects no deduction for fees, expenses or taxes) | -4.38% | 8.49% | 13.12% | 8.03% |
• | Daniel J. Lindquist, Chairman of the Investment Committee and Managing Director of First Trust |
• | Jon C. Erickson, Senior Vice President of First Trust |
• | David G. McGarel, Chief Investment Officer, Chief Operating Officer and Managing Director of First Trust |
• | Roger F. Testin, Senior Vice President of First Trust |
• | Stan Ueland, Senior Vice President of First Trust |
• | Chris A. Peterson, Senior Vice President of First Trust |
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price) | None |
Management Fees | 0.30% |
Distribution and Service (12b-1) Fees | 0.00% |
Other Expenses | 0.22% |
Total Annual Fund Operating Expenses | 0.52% |
Fee Waiver and Expense Reimbursement (1) | 0.02% |
Total Annual Fund Operating Expenses After Fee Waiver and Expense Reimbursement | 0.50% |
(1) | First Trust Advisors L.P., the Fund’s investment advisor, has agreed to waive fees and/or reimburse Fund expenses to the extent that the operating expenses of the Fund (excluding interest expense, brokerage commissions and other trading expenses, acquired fund fees and expenses, taxes and extraordinary expenses) exceed 0.50% of its average daily net assets per year (the “Expense Cap”) at least through April 30, 2020. Expenses reimbursed and fees waived under such agreement are subject to recovery by the Fund’s investment advisor for up to three years from the date the fee was waived or expense was incurred, but no reimbursement payment will be made by the Fund if it results in the Fund exceeding (i) the applicable expense limitation in place for the most recent fiscal year for which such expense limitation was in place, (ii) the applicable expense limitation in place at the time the fees were waived, or (iii) the current expense limitation. The agreement may be terminated by the Trust, on behalf of the Fund, at any time and by the Fund’s investment advisor only after April 30, 2020 upon 60 days’ written notice. |
1 Year | 3 Years | 5 Years | 10 Years |
$51 | $165 | $289 | $651 |
Best Quarter | Worst Quarter | ||
34.45% | September 30, 2009 | -32.66% | March 31, 2009 |
1 Year | 5 Years | 10 Years |
Since
Inception |
Inception
Date |
|
Return Before Taxes | -4.19% | 7.24% | 11.58% | 3.42% | 5/8/2007 |
Return After Taxes on Distributions | -5.38% | 5.97% | 10.40% | 2.34% | |
Return After Taxes on Distributions and Sale of Fund Shares | -2.46% | 5.09% | 9.01% | 2.14% | |
S&P United States REIT Index (1) (reflects no deduction for fees, expenses or taxes) | -3.79% | 7.78% | 12.16% | N/A | |
FTSE EPRA/NAREIT North America Index (reflects no deduction for fees, expenses or taxes) | -3.89% | 7.24% | 12.06% | 3.67% | |
Russell 3000 ® Index (reflects no deduction for fees, expenses or taxes) | -5.24% | 7.91% | 13.18% | 6.66% |
(1) | On November 6, 2008, the Fund’s underlying index changed from the S&P REIT Composite Index to the S&P United States REIT Index. Effective December 31, 2008, the S&P REIT Composite Index was discontinued. Therefore, the Fund’s performance and historical total returns shown for the periods prior to November 6, 2008, are not necessarily indicative of the performance that the Fund, based on its current Index, would have generated. The inception date of the Index was June 30, 2008. Returns for the Index are only disclosed for those periods in which the Index was in existence for the whole period. |
• | Daniel J. Lindquist, Chairman of the Investment Committee and Managing Director of First Trust |
• | Jon C. Erickson, Senior Vice President of First Trust |
• | David G. McGarel, Chief Investment Officer, Chief Operating Officer and Managing Director of First Trust |
• | Roger F. Testin, Senior Vice President of First Trust |
• | Stan Ueland, Senior Vice President of First Trust |
• | Chris A. Peterson, Senior Vice President of First Trust |
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price) | None |
Management Fees | 0.40% |
Distribution and Service (12b-1) Fees | 0.00% |
Other Expenses | 0.19% |
Total Annual Fund Operating Expenses | 0.59% |
Fee Waiver and Expense Reimbursement (1) | 0.00% |
Total Annual Fund Operating Expenses After Fee Waiver and Expense Reimbursement | 0.59% |
(1) | First Trust Advisors L.P., the Fund’s investment advisor, has agreed to waive fees and/or reimburse Fund expenses to the extent that the operating expenses of the Fund (excluding interest expense, brokerage commissions and other trading expenses, acquired fund fees and expenses, taxes and extraordinary expenses) exceed 0.60% of its average daily net assets per year (the “Expense Cap”) at least through April 30, 2020. Expenses reimbursed and fees waived under such agreement are subject to recovery by the Fund’s investment advisor for up to three years from the date the fee was waived or expense was incurred, but no reimbursement payment will be made by the Fund if it results in the Fund exceeding (i) the applicable expense limitation in place for the most recent fiscal year for which such expense limitation was in place, (ii) the applicable expense limitation in place at the time the fees were waived, or (iii) the current expense limitation. The agreement may be terminated by the Trust, on behalf of the Fund, at any time and by the Fund’s investment advisor only after April 30, 2020 upon 60 days’ written notice. |
1 Year | 3 Years | 5 Years | 10 Years |
$60 | $189 | $329 | $738 |
Best Quarter | Worst Quarter | ||
19.72% | March 31, 2012 | -16.65% | September 30, 2011 |
1 Year | 5 Years | 10 Years |
Since
Inception |
Inception
Date |
|
Return Before Taxes | -8.22% | 7.29% | 17.07% | 10.22% | 4/12/2006 |
Return After Taxes on Distributions | -8.52% | 6.95% | 16.65% | 9.87% | |
Return After Taxes on Distributions and Sale of Fund Shares | -4.85% | 5.56% | 14.37% | 8.40% | |
IPOX ® -100 U.S. Index (reflects no deduction for fees, expenses or taxes) | -7.78% | 7.87% | 17.76% | 10.87% | |
S&P 500 ® Index (reflects no deduction for fees, expenses or taxes) | -4.38% | 8.49% | 13.12% | 7.62% | |
Russell 3000 ® Index (reflects no deduction for fees, expenses or taxes) | -5.24% | 7.91% | 13.18% | 7.52% |
• | Daniel J. Lindquist, Chairman of the Investment Committee and Managing Director of First Trust |
• | Jon C. Erickson, Senior Vice President of First Trust |
• | David G. McGarel, Chief Investment Officer, Chief Operating Officer and Managing Director of First Trust |
• | Roger F. Testin, Senior Vice President of First Trust |
• | Stan Ueland, Senior Vice President of First Trust |
• | Chris A. Peterson, Senior Vice President of First Trust |
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price) | None |
Management Fees | 0.50% |
Distribution and Service (12b-1) Fees | 0.00% |
Other Expenses | 0.39% |
Total Annual Fund Operating Expenses | 0.89% |
Fee Waiver and Expense Reimbursement (1) | 0.19% |
Total Annual Fund Operating Expenses After Fee Waiver and Expense Reimbursement | 0.70% |
(1) | First Trust Advisors L.P., the Fund’s investment advisor, has agreed to waive fees and/or reimburse Fund expenses to the extent that the operating expenses of the Fund (excluding interest expense, brokerage commissions and other trading expenses, acquired fund fees and expenses, taxes and extraordinary expenses) exceed 0.70% of its average daily net assets per year (the “Expense Cap”) at least through April 30, 2020. Expenses reimbursed and fees waived under such agreement are subject to recovery by the Fund’s investment advisor for up to three years from the date the fee was waived or expense was incurred, but no reimbursement payment will be made by the Fund if it results in the Fund exceeding (i) the applicable expense limitation in place for the most recent fiscal year for which such expense limitation was in place, (ii) the applicable expense limitation in place at the time the fees were waived, or (iii) the current expense limitation. The agreement may be terminated by the Trust, on behalf of the Fund, at any time and by the Fund’s investment advisor only after April 30, 2020 upon 60 days’ written notice. |
1 Year | 3 Years | 5 Years | 10 Years |
$72 | $265 | $474 | $1,079 |
Best Quarter | Worst Quarter | ||
17.21% | December 31, 2011 | -25.65% | September 30, 2011 |
1 Year | 5 Years | 10 Years |
Since
Inception |
Inception
Date |
|
Return Before Taxes | -18.83% | 1.01% | 7.90% | 4.36% | 6/12/2003 |
Return After Taxes on Distributions | -19.03% | 0.75% | 7.68% | 3.55% | |
Return After Taxes on Distributions and Sale of Fund Shares | -11.13% | 0.66% | 6.34% | 3.25% | |
Value Line ® 100 Index (1),(2) (reflects no deduction for fees, expenses or taxes) | -18.18% | 1.95% | N/A | N/A | |
Russell 3000 ® Index (reflects no deduction for fees, expenses or taxes) | -5.24% | 7.91% | 13.18% | 8.49% |
(1) | On June 15, 2007, the Fund acquired the assets and adopted the financial and performance history of First Trust Value Line ® 100 Fund (the “Predecessor FVL Fund,” a closed-end fund), which had an inception date of June 12, 2003. The inception date total returns at Net Asset Value include the sales load of $0.675 per share on the initial offering. The investment goals, strategies and policies of the Fund are substantially similar to those of the Predecessor FVL Fund. The inception date of the Index was January 16, 2007. Returns for the Index are only disclosed for those periods in which the Index was in existence for the entire period. The cumulative total returns for the period from the reorganization date (06/15/07) through period end (12/31/18) were 17.91% and 17.79% at Net Asset Value and Market Value, respectively. That compares to an Index return of 38.96% for that same period. The average annual total returns for the period from the reorganization date (6/15/07) through period end (12/31/18) were 1.44% and 1.43% at Net Asset Value and Market Value, respectively. That compares to an Index return of 2.87% for the same period. Net Asset Value and Market Value returns assume that all dividend distributions have been reinvested in the Fund at Net Asset Value and Market Value, respectively. Prior to June 15, 2007, Net Asset Value and Market Value returns assumed that all dividend distributions were reinvested at prices obtained by the Dividend Reinvestment Plan of the Predecessor FVL Fund and the price used to calculate Market Value return was the AMEX (now known as the NYSE MKT) closing market price of the Predecessor FVL Fund. |
(2) | Performance data is not available for all the periods shown in the table for the index because performance data does not exist for some of the entire periods. |
• | Daniel J. Lindquist, Chairman of the Investment Committee and Managing Director of First Trust |
• | Jon C. Erickson, Senior Vice President of First Trust |
• | David G. McGarel, Chief Investment Officer, Chief Operating Officer and Managing Director of First Trust |
• | Roger F. Testin, Senior Vice President of First Trust |
• | Stan Ueland, Senior Vice President of First Trust |
• | Chris A. Peterson, Senior Vice President of First Trust |
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price) | None |
Management Fees | 0.50% |
Distribution and Service (12b-1) Fees | 0.00% |
Other Expenses | 0.22% |
Total Annual Fund Operating Expenses | 0.72% |
Fee Waiver and Expense Reimbursement (1) | 0.02% |
Total Annual Fund Operating Expenses After Fee Waiver and Expense Reimbursement | 0.70% |
(1) | First Trust Advisors L.P., the Fund’s investment advisor, has agreed to waive fees and/or reimburse Fund expenses to the extent that the operating expenses of the Fund (excluding interest expense, brokerage commissions and other trading expenses, acquired fund fees and expenses, taxes and extraordinary expenses) exceed 0.70% of its average daily net assets per year (the “Expense Cap”) at least through April 30, 2020. Expenses reimbursed and fees waived under such agreement are subject to recovery by the Fund’s investment advisor for up to three years from the date the fee was waived or expense was incurred, but no reimbursement payment will be made by the Fund if it results in the Fund exceeding (i) the applicable expense limitation in place for the most recent fiscal year for which such expense limitation was in place, (ii) the applicable expense limitation in place at the time the fees were waived, or (iii) the current expense limitation. The agreement may be terminated by the Trust, on behalf of the Fund, at any time and by the Fund’s investment advisor only after April 30, 2020 upon 60 days’ written notice. |
1 Year | 3 Years | 5 Years | 10 Years |
$72 | $228 | $399 | $893 |
Best Quarter | Worst Quarter | ||
14.54% | June 30, 2009 | -13.74% | March 31, 2009 |
1 Year | 5 Years | 10 Years |
Since
Inception |
Inception
Date |
|
Return Before Taxes | -3.44% | 8.87% | 12.53% | 9.17% | 8/19/2003 |
Return After Taxes on Distributions | -4.38% | 7.79% | 11.40% | 7.67% | |
Return After Taxes on Distributions and Sale of Fund Shares | -2.02% | 6.45% | 9.82% | 6.87% | |
Value Line ® Dividend Index (1),(2) (reflects no deduction for fees, expenses or taxes) | -2.73% | 9.73% | 13.43% | N/A | |
S&P 500 ® Index (reflects no deduction for fees, expenses or taxes) | -4.38% | 8.49% | 13.12% | 8.35% | |
Dow Jones U.S. Select Dividend Index SM(2) (reflects no deduction for fees, expenses or taxes) | -5.94% | 8.49% | 12.26% | N/A |
(1) | On December 15, 2006, the Fund acquired the assets and adopted the financial and performance history of First Trust Value Line ® Dividend Fund (the “Predecessor FVD Fund,” a closed-end fund), which had an inception date of August 19, 2003. The inception date total returns at Net Asset Value include the sales load of $0.675 per share on the initial offering. The investment goals, strategies and policies of the Fund are substantially similar to those of the Predecessor FVD Fund. The inception date of the Index was July 3, 2006. Returns for the Index are only disclosed for those periods in which the Index was in existence for the entire period. The cumulative total returns for the period from the reorganization date (12/15/06) through period end (12/31/18) were 137.98% and 139.12% at Net Asset Value and Market Value, respectively. That compares to an Index return of 179.64% for the same period. The average annual total returns for the period from the reorganization date (12/15/06) through period end (12/31/18) were 7.46% and 7.51% at Net Asset Value and Market Value, respectively. That compares to an Index return of 8.85% for the same period. |
Net Asset Value and Market Value returns assume that all dividend distributions have been reinvested in the Fund at Net Asset Value and Market Value, respectively. Prior to December 15, 2006, Net Asset Value and Market Value returns assumed that all dividend distributions were reinvested at prices obtained by the Dividend Reinvestment Plan of the Predecessor FVD Fund and the price used to calculate Market Value return was the AMEX (now known as the NYSE MKT) closing market price of the Predecessor FVD Fund. | |
(2) | Performance data is not available for all the periods shown in the table for the index because performance data does not exist for some of the entire periods. |
• | Daniel J. Lindquist, Chairman of the Investment Committee and Managing Director of First Trust |
• | Jon C. Erickson, Senior Vice President of First Trust |
• | David G. McGarel, Chief Investment Officer, Chief Operating Officer and Managing Director of First Trust |
• | Roger F. Testin, Senior Vice President of First Trust |
• | Stan Ueland, Senior Vice President of First Trust |
• | Chris A. Peterson, Senior Vice President of First Trust |
• | unexpected drilling conditions; |
• | pressure or irregularities in formations; |
• | equipment failures or repairs; |
• | fires or other accidents; |
• | adverse weather conditions; |
• | pipeline ruptures or spills; and |
• | shortages or delays in the availability of drilling rigs and the delivery of equipment. |
• | Mr. Lindquist is Chairman of the Investment Committee and presides over Investment Committee meetings. Mr. Lindquist is responsible for overseeing the implementation of each Fund’s investment strategy. Mr. Lindquist was a Senior Vice President of First Trust and FTP from September 2005 to July 2012 and is now a Managing Director of First Trust and FTP. Mr. Lindquist is a recipient of the Chartered Financial Analyst designation. |
• | Mr. Erickson joined First Trust in 1994 and is a Senior Vice President of First Trust and FTP. As the head of First Trust’s Equity Research Group, Mr. Erickson is responsible for determining the securities to be purchased and sold by funds that do not utilize quantitative investment strategies. Mr. Erickson is a recipient of the Chartered Financial Analyst designation. |
• | Mr. McGarel is the Chief Investment Officer, Chief Operating Officer and a Managing Director of First Trust and FTP. As First Trust’s Chief Investment Officer, Mr. McGarel consults with the other members of the Investment Committee on market conditions and First Trust’s general investment philosophy. Mr. McGarel was a Senior Vice President of First Trust and FTP from January 2004 to July 2012. Mr. McGarel is a recipient of the Chartered Financial Analyst designation. |
• | Mr. Testin is a Senior Vice President of First Trust and FTP. Mr. Testin is the head of First Trust’s Portfolio Management Group. Mr. Testin has been a Senior Vice President of First Trust and FTP since November 2003. Mr. Testin is a recipient of the Chartered Financial Analyst designation. |
• | Mr. Ueland joined First Trust as a Vice President in August 2005 and has been a Senior Vice President of First Trust and FTP since September 2012. At First Trust, he plays an important role in executing the investment strategies of each portfolio of exchange-traded funds advised by First Trust. |
• | Mr. Peterson is a Senior Vice President and head of First Trust’s strategy research group. He joined First Trust in January of 2000. Mr. Peterson is responsible for developing and implementing quantitative equity investment strategies. Mr. Peterson received his B.S. in Finance from Bradley University in 1997 and his M.B.A. from the University of Chicago Booth School of Business in 2005. He has over 20 years of financial services industry experience and is a recipient of the Chartered Financial Analyst designation. |
Fund |
Annual
Management Fee (% of average daily net assets) |
Annual
Expense Cap (% of average daily net assets) |
Expense Cap
Termination Date |
Management Fee
Paid for the Year Ended 12/31/2018 (% of average daily net assets) |
First Trust Capital Strength ETF | 0.50% | 0.65% | April 30, 2020 | 0.50% |
First Trust Dow Jones Internet Index Fund | 0.40% | 0.60% | April 30, 2020 | 0.40% |
First Trust Dow Jones Select MicroCap Index Fund | 0.50% | 0.60% | April 30, 2020 | 0.37% |
First Trust Chindia ETF | 0.40% | 0.60% | April 30, 2020 | 0.40% |
First Trust Natural Gas ETF | 0.40% | 0.60% | April 30, 2020 | 0.37% |
First Trust Water ETF | 0.40% | 0.60% | April 30, 2020 | 0.40% |
First Trust Morningstar Dividend Leaders Index Fund | 0.30% | 0.45% | April 30, 2020 | 0.28% |
First Trust NASDAQ-100 Equal Weighted Index Fund | 0.40% | 0.60% | April 30, 2020 | 0.40% |
First Trust NASDAQ-100 Ex-Technology Sector Index Fund | 0.40% | 0.60% | April 30, 2020 | 0.36% |
First Trust NASDAQ-100-Technology Sector Index Fund | 0.40% | 0.60% | April 30, 2020 | 0.40% |
First Trust NASDAQ ® ABA Community Bank Index Fund | 0.40% | 0.60% | April 30, 2020 | 0.40% |
First Trust NASDAQ ® Clean Edge ® Green Energy Index Fund | 0.40% | 0.60% | April 30, 2020 | 0.35% |
First Trust NYSE Arca Biotechnology Index Fund | 0.40% | 0.60% | April 30, 2020 | 0.40% |
First Trust S&P REIT Index Fund | 0.30% | 0.50% | April 30, 2020 | 0.28% |
First Trust US Equity Opportunities ETF | 0.40% | 0.60% | April 30, 2020 | 0.40% |
First Trust Value Line ® 100 Exchange-Traded Fund | 0.50% | 0.70% | April 30, 2020 | 0.35% |
First Trust Value Line ® Dividend Index Fund | 0.50% | 0.70% | April 30, 2020 | 0.48% |
0.00% – 0.49% | 0.50% – 0.99% | 1.00% – 1.99% | >=2.00% | |
12 Months Ended 12/31/2018 | 161 | 3 | 0 | 1 |
3 Months Ended 3/31/2019 | 57 | 0 | 0 | 0 |
0.00% – 0.49% | 0.50% – 0.99% | 1.00% – 1.99% | >=2.00% | |
12 Months Ended 12/31/2018 | 84 | 1 | 1 | 0 |
3 Months Ended 3/31/2019 | 4 | 0 | 0 | 0 |
0.00% – 0.49% | 0.50% – 0.99% | 1.00% – 1.99% | >=2.00% | |
12 Months Ended 12/31/2018 | 116 | 4 | 2 | 0 |
3 Months Ended 3/31/2019 | 20 | 0 | 0 | 0 |
0.00% – 0.49% | 0.50% – 0.99% | 1.00% – 1.99% | >=2.00% | |
12 Months Ended 12/31/2018 | 125 | 4 | 0 | 0 |
3 Months Ended 3/31/2019 | 41 | 0 | 0 | 0 |
0.00% – 0.49% | 0.50% – 0.99% | 1.00% – 1.99% | >=2.00% | |
12 Months Ended 12/31/2018 | 164 | 4 | 0 | 1 |
3 Months Ended 3/31/2019 | 21 | 0 | 0 | 0 |
0.00% – 0.49% | 0.50% – 0.99% | 1.00% – 1.99% | >=2.00% | |
12 Months Ended 12/31/2018 | 81 | 1 | 0 | 0 |
3 Months Ended 3/31/2019 | 40 | 0 | 0 | 0 |
0.00% – 0.49% | 0.50% – 0.99% | 1.00% – 1.99% | >=2.00% | |
12 Months Ended 12/31/2018 | 143 | 1 | 0 | 1 |
3 Months Ended 3/31/2019 | 13 | 0 | 0 | 0 |
0.00% – 0.49% | 0.50% – 0.99% | 1.00% – 1.99% | >=2.00% | |
12 Months Ended 12/31/2018 | 105 | 1 | 0 | 0 |
3 Months Ended 3/31/2019 | 48 | 0 | 0 | 0 |
0.00% – 0.49% | 0.50% – 0.99% | 1.00% – 1.99% | >=2.00% | |
12 Months Ended 12/31/2018 | 177 | 5 | 1 | 1 |
3 Months Ended 3/31/2019 | 46 | 0 | 0 | 0 |
0.00% – 0.49% | 0.50% – 0.99% | 1.00% – 1.99% | >=2.00% | |
12 Months Ended 12/31/2018 | 65 | 1 | 0 | 1 |
3 Months Ended 3/31/2019 | 15 | 0 | 0 | 0 |
0.00% – 0.49% | 0.50% – 0.99% | 1.00% – 1.99% | >=2.00% | |
12 Months Ended 12/31/2018 | 104 | 6 | 2 | 0 |
3 Months Ended 3/31/2019 | 31 | 0 | 0 | 0 |
0.00% – 0.49% | 0.50% – 0.99% | 1.00% – 1.99% | >=2.00% | |
12 Months Ended 12/31/2018 | 137 | 2 | 0 | 0 |
3 Months Ended 3/31/2019 | 30 | 0 | 0 | 0 |
0.00% – 0.49% | 0.50% – 0.99% | 1.00% – 1.99% | >=2.00% | |
12 Months Ended 12/31/2018 | 140 | 1 | 0 | 0 |
3 Months Ended 3/31/2019 | 42 | 0 | 0 | 0 |
0.00% – 0.49% | 0.50% – 0.99% | 1.00% – 1.99% | >=2.00% | |
12 Months Ended 12/31/2018 | 108 | 2 | 0 | 0 |
3 Months Ended 3/31/2019 | 19 | 0 | 0 | 0 |
0.00% – 0.49% | 0.50% – 0.99% | 1.00% – 1.99% | >=2.00% | |
12 Months Ended 12/31/2018 | 125 | 12 | 0 | 0 |
3 Months Ended 3/31/2019 | 1 | 0 | 0 | 0 |
0.00% – 0.49% | 0.50% – 0.99% | 1.00% – 1.99% | >=2.00% | |
12 Months Ended 12/31/2018 | 106 | 7 | 1 | 0 |
3 Months Ended 3/31/2019 | 60 | 0 | 0 | 0 |
0.00% – 0.49% | 0.50% – 0.99% | 1.00% – 1.99% | >=2.00% | |
12 Months Ended 12/31/2018 | 151 | 2 | 1 | 0 |
3 Months Ended 3/31/2019 | 34 | 0 | 0 | 0 |
0.00% – 0.49% | 0.50% – 0.99% | 1.00% – 1.99% | >=2.00% | |
12 Months Ended 12/31/2018 | 95 | 2 | 0 | 0 |
3 Months Ended 3/31/2019 | 27 | 0 | 0 | 0 |
0.00% – 0.49% | 0.50% – 0.99% | 1.00% – 1.99% | >=2.00% | |
12 Months Ended 12/31/2018 | 148 | 2 | 0 | 0 |
3 Months Ended 3/31/2019 | 34 | 0 | 0 | 0 |
0.00% – 0.49% | 0.50% – 0.99% | 1.00% – 1.99% | >=2.00% | |
12 Months Ended 12/31/2018 | 99 | 2 | 0 | 0 |
3 Months Ended 3/31/2019 | 27 | 0 | 0 | 0 |
0.00% – 0.49% | 0.50% – 0.99% | 1.00% – 1.99% | >=2.00% | |
12 Months Ended 12/31/2018 | 96 | 2 | 0 | 0 |
3 Months Ended 3/31/2019 | 25 | 0 | 0 | 0 |
0.00% – 0.49% | 0.50% – 0.99% | 1.00% – 1.99% | >=2.00% | |
12 Months Ended 12/31/2018 | 150 | 3 | 0 | 0 |
3 Months Ended 3/31/2019 | 36 | 0 | 0 | 0 |
0.00% – 0.49% | 0.50% – 0.99% | 1.00% – 1.99% | >=2.00% | |
12 Months Ended 12/31/2018 | 132 | 3 | 1 | 0 |
3 Months Ended 3/31/2019 | 37 | 0 | 0 | 0 |
0.00% – 0.49% | 0.50% – 0.99% | 1.00% – 1.99% | >=2.00% | |
12 Months Ended 12/31/2018 | 111 | 4 | 0 | 0 |
3 Months Ended 3/31/2019 | 24 | 0 | 0 | 0 |
0.00% – 0.49% | 0.50% – 0.99% | 1.00% – 1.99% | >=2.00% | |
12 Months Ended 12/31/2018 | 156 | 1 | 2 | 1 |
3 Months Ended 3/31/2019 | 40 | 0 | 0 | 0 |
0.00% – 0.49% | 0.50% – 0.99% | 1.00% – 1.99% | >=2.00% | |
12 Months Ended 12/31/2018 | 88 | 3 | 0 | 0 |
3 Months Ended 3/31/2019 | 21 | 0 | 0 | 0 |
0.00% – 0.49% | 0.50% – 0.99% | 1.00% – 1.99% | >=2.00% | |
12 Months Ended 12/31/2018 | 86 | 3 | 1 | 0 |
3 Months Ended 3/31/2019 | 40 | 0 | 0 | 0 |
0.00% – 0.49% | 0.50% – 0.99% | 1.00% – 1.99% | >=2.00% | |
12 Months Ended 12/31/2018 | 160 | 0 | 1 | 0 |
3 Months Ended 3/31/2019 | 21 | 0 | 0 | 0 |
0.00% – 0.49% | 0.50% – 0.99% | 1.00% – 1.99% | >=2.00% | |
12 Months Ended 12/31/2018 | 157 | 3 | 1 | 0 |
3 Months Ended 3/31/2019 | 43 | 0 | 0 | 0 |
0.00% – 0.49% | 0.50% – 0.99% | 1.00% – 1.99% | >=2.00% | |
12 Months Ended 12/31/2018 | 87 | 3 | 0 | 0 |
3 Months Ended 3/31/2019 | 18 | 0 | 0 | 0 |
0.00% – 0.49% | 0.50% – 0.99% | 1.00% – 1.99% | >=2.00% | |
12 Months Ended 12/31/2018 | 182 | 4 | 0 | 1 |
3 Months Ended 3/31/2019 | 27 | 0 | 0 | 0 |
0.00% – 0.49% | 0.50% – 0.99% | 1.00% – 1.99% | >=2.00% | |
12 Months Ended 12/31/2018 | 63 | 1 | 0 | 0 |
3 Months Ended 3/31/2019 | 34 | 0 | 0 | 0 |
0.00% – 0.49% | 0.50% – 0.99% | 1.00% – 1.99% | >=2.00% | |
12 Months Ended 12/31/2018 | 143 | 1 | 0 | 0 |
3 Months Ended 3/31/2019 | 57 | 0 | 0 | 0 |
0.00% – 0.49% | 0.50% – 0.99% | 1.00% – 1.99% | >=2.00% | |
12 Months Ended 12/31/2018 | 106 | 1 | 0 | 0 |
3 Months Ended 3/31/2019 | 4 | 0 | 0 | 0 |
Average Annual | Cumulative | |||||||
1 Year | 5 Years | 10 Years |
Inception
(7/6/2006) |
5 Years | 10 Years |
Inception
(7/6/2006) |
||
Fund Performance | ||||||||
Net Asset Value | -4.09% | 9.10% | 14.30% | 8.95% | 54.56% | 280.74% | 191.82% | |
Market Price | -4.24% | 9.08% | 14.38% | 8.96% | 54.39% | 283.20% | 191.94% | |
Index Performance | ||||||||
The Capital Strength Index SM (1) | -3.53% | 9.81% | N/A | N/A | 59.63% | N/A | N/A | |
S&P 500 ® Index | -4.38% | 8.49% | 13.12% | 7.82% | 50.33% | 243.04% | 156.14% |
(1) | On June 4, 2013, the Fund’s underlying index changed from the Credit Suisse U.S. Value Index, Powered by HOLT TM to The Capital Strength Index SM . On June 18, 2010, the Fund’s underlying index changed from the Deutsche Bank CROCI ® US Index TM to the Credit Suisse U.S. Value Index, Powered by HOLT TM . Since the Fund’s new underlying index had an inception date of March 20, 2013, it was not in existence for some of the periods disclosed. |
Average Annual | Cumulative | |||||||
1 Year | 5 Years | 10 Years |
Inception
(6/19/2006) |
5 Years | 10 Years |
Inception
(6/19/2006) |
||
Fund Performance | ||||||||
Net Asset Value | 6.23% | 14.28% | 23.63% | 15.15% | 94.94% | 734.11% | 485.77% | |
Market Price | 6.23% | 14.28% | 23.63% | 15.15% | 94.95% | 734.32% | 485.92% | |
Index Performance | ||||||||
Dow Jones Internet Composite Index SM | 6.77% | 14.84% | 24.30% | 15.76% | 99.72% | 780.37% | 526.31% | |
S&P 500 ® Index | -4.38% | 8.49% | 13.12% | 8.03% | 50.33% | 243.04% | 163.42% | |
S&P Composite 1500 ® Information Technology Index | -0.75% | 14.46% | 18.17% | 11.81% | 96.47% | 431.01% | 305.12% |
Average Annual | Cumulative | |||||||
1 Year | 5 Years | 10 Years |
Inception
(9/27/2005) |
5 Years | 10 Years |
Inception
(9/27/2005) |
||
Fund Performance | ||||||||
Net Asset Value | -12.68% | 5.86% | 11.85% | 6.50% | 32.94% | 206.36% | 130.37% | |
Market Price | -13.05% | 5.93% | 11.87% | 6.48% | 33.37% | 206.90% | 130.00% | |
Index Performance | ||||||||
Dow Jones Select MicroCap Index SM | -12.21% | 6.46% | 12.54% | 7.19% | 36.77% | 225.84% | 151.12% | |
Russell 2000 ® Index | -11.01% | 4.41% | 11.97% | 6.99% | 24.09% | 209.83% | 145.03% |
Average Annual | Cumulative | |||||||
1 Year | 5 Years | 10 Years |
Inception
(3/9/2006) |
5 Years | 10 Years |
Inception
(3/9/2006) |
||
Fund Performance | ||||||||
Net Asset Value | -5.87% | 8.10% | 11.61% | 6.39% | 47.60% | 199.91% | 121.05% | |
Market Price | -6.00% | 8.09% | 11.57% | 6.38% | 47.54% | 198.88% | 120.89% | |
Index Performance | ||||||||
Morningstar ® Dividend Leaders Index SM | -5.47% | 8.62% | 12.17% | 6.91% | 51.19% | 215.38% | 135.33% | |
S&P 500 ® Index | -4.38% | 8.49% | 13.12% | 7.68% | 50.33% | 243.04% | 158.02% |
Average Annual | Cumulative | |||||||
1 Year | 5 Years | 10 Years |
Inception
(4/19/2006) |
5 Years | 10 Years |
Inception
(4/19/2006) |
||
Fund Performance | ||||||||
Net Asset Value | -5.16% | 9.27% | 16.76% | 8.78% | 55.74% | 370.82% | 191.32% | |
Market Price | -5.22% | 9.26% | 16.77% | 8.78% | 55.67% | 371.12% | 191.26% | |
Index Performance | ||||||||
NASDAQ-100 Equal Weighted Index SM | -4.61% | 9.93% | 17.48% | 9.46% | 60.51% | 400.84% | 215.14% | |
S&P 500 ® Index | -4.38% | 8.49% | 13.12% | 7.49% | 50.33% | 243.04% | 150.23% | |
NASDAQ-100 Index ® | 0.04% | 13.34% | 19.29% | 11.82% | 87.03% | 483.57% | 313.37% |
Average Annual | Cumulative | |||||||
1 Year | 5 Years | 10 Years |
Inception
(2/8/2007) |
5 Years | 10 Years |
Inception
(2/8/2007) |
||
Fund Performance | ||||||||
Net Asset Value | -5.58% | 6.10% | 14.87% | 7.69% | 34.45% | 300.08% | 141.23% | |
Market Price | -5.61% | 6.10% | 14.96% | 7.69% | 34.45% | 303.10% | 141.23% | |
Index Performance | ||||||||
NASDAQ-100 Ex-Tech Sector Index SM | -5.06% | 6.72% | 15.57% | 8.35% | 38.40% | 325.12% | 159.53% | |
Russell 1000 ® Index | -4.78% | 8.21% | 13.28% | 6.99% | 48.37% | 247.98% | 123.29% |
Average Annual | Cumulative | |||||||
1 Year | 5 Years | 10 Years |
Inception
(4/19/2006) |
5 Years | 10 Years |
Inception
(4/19/2006) |
||
Fund Performance | ||||||||
Net Asset Value | -4.70% | 15.17% | 20.11% | 10.80% | 102.63% | 524.91% | 267.76% | |
Market Price | -4.74% | 15.16% | 20.25% | 10.80% | 102.51% | 532.06% | 267.86% | |
Index Performance | ||||||||
NASDAQ-100 Technology Sector Index SM | -4.14% | 15.89% | 20.87% | 11.49% | 109.07% | 565.74% | 298.29% | |
S&P 500 ® Index | -4.38% | 8.49% | 13.12% | 7.49% | 50.33% | 243.04% | 150.23% | |
S&P 500 ® Information Technology Index | -0.29% | 14.93% | 18.36% | 10.79% | 100.52% | 439.66% | 267.44% |
Average Annual | Cumulative | |||||
1 Year | 5 Years |
Inception
(6/29/2009) |
5 Years |
Inception
(6/29/2009) |
||
Fund Performance | ||||||
Net Asset Value | -16.14% | 5.15% | 10.03% | 28.54% | 148.05% | |
Market Price | -16.39% | 5.08% | 10.02% | 28.13% | 147.95% | |
Index Performance | ||||||
NASDAQ OMX ® ABA Community Bank Index SM | -15.69% | 5.79% | 10.72% | 32.51% | 163.37% | |
S&P Composite 1500 ® Financials Index | -13.03% | 8.31% | 12.10% | 49.05% | 196.30% | |
Russell 3000 ® Index | -5.24% | 7.91% | 13.33% | 46.34% | 228.56% |
Average Annual | Cumulative | |||||||
1 Year | 5 Years | 10 Years |
Inception
(2/8/2007) |
5 Years | 10 Years |
Inception
(2/8/2007) |
||
Fund Performance | ||||||||
Net Asset Value | -12.22% | 0.53% | 5.28% | -0.56% | 2.68% | 67.21% | -6.44% | |
Market Price | -12.59% | 0.48% | 5.27% | -0.58% | 2.44% | 67.15% | -6.65% | |
Index Performance | ||||||||
NASDAQ ® Clean Edge ® Green Energy Index SM | -12.11% | 0.49% | 5.35% | -0.38% | 2.46% | 68.42% | -4.42% | |
Russell 2000 ® Index | -11.01% | 4.41% | 11.97% | 5.76% | 24.09% | 209.83% | 94.66% |
Average Annual | Cumulative | |||||||
1 Year | 5 Years | 10 Years |
Inception
(6/19/2006) |
5 Years | 10 Years |
Inception
(6/19/2006) |
||
Fund Performance | ||||||||
Net Asset Value | -0.21% | 12.48% | 20.24% | 15.81% | 80.05% | 531.74% | 529.71% | |
Market Price | -0.20% | 12.48% | 20.29% | 15.81% | 80.07% | 534.37% | 529.76% | |
Index Performance | ||||||||
NYSE Arca Biotechnology Index SM | 0.27% | 12.96% | 20.84% | 16.43% | 83.92% | 564.00% | 573.13% | |
S&P Composite 1500 ® Health Care Index | 6.71% | 11.40% | 15.16% | 11.20% | 71.57% | 310.38% | 278.31% | |
NASDAQ ® Biotechnology Index | -8.86% | 5.54% | 15.71% | 12.50% | 30.97% | 330.29% | 337.55% | |
S&P 500 ® Index | -4.38% | 8.49% | 13.12% | 8.03% | 50.33% | 243.04% | 163.42% |
Average Annual | Cumulative | |||||||
1 Year | 5 Years | 10 Years |
Inception
(5/8/2007) |
5 Years | 10 Years |
Inception
(5/8/2007) |
||
Fund Performance | ||||||||
Net Asset Value | -4.19% | 7.24% | 11.58% | 3.42% | 41.84% | 199.07% | 47.96% | |
Market Price | -4.18% | 7.24% | 11.64% | 3.42% | 41.84% | 200.66% | 47.97% | |
Index Performance | ||||||||
S&P United States REIT Index (1) | -3.79% | 7.78% | 12.16% | N/A | 45.46% | 214.94% | N/A | |
FTSE EPRA/NAREIT North America Index | -3.89% | 7.24% | 12.06% | 3.67% | 41.85% | 212.32% | 52.16% | |
Russell 3000 ® Index | -5.24% | 7.91% | 13.18% | 6.66% | 46.34% | 244.95% | 112.03% |
(1) | On November 6, 2008, the Fund’s underlying index changed from the S&P REIT Composite Index to the S&P United States REIT Index. Effective December 31, 2008, the S&P REIT Composite Index was discontinued. Therefore, the Fund’s performance and historical total returns shown for the periods prior to November 6, 2008, are not necessarily indicative of the performance that the Fund, based on its current Index, would have generated. The inception date of the Index was June 30, 2008. Returns for the Index are only disclosed for those periods in which the Index was in existence for the whole period. |
Average Annual | Cumulative | |||||||
1 Year | 5 Years | 10 Years |
Inception
(4/12/2006) |
5 Years | 10 Years |
Inception
(4/12/2006) |
||
Fund Performance | ||||||||
Net Asset Value | -8.22% | 7.29% | 17.07% | 10.22% | 42.20% | 383.51% | 244.94% | |
Market Price | -8.33% | 7.28% | 17.07% | 10.22% | 42.09% | 383.70% | 244.84% | |
Index Performance | ||||||||
IPOX ® -100 U.S. Index | -7.78% | 7.87% | 17.76% | 10.87% | 46.07% | 413.01% | 271.68% | |
S&P 500 ® Index | -4.38% | 8.49% | 13.12% | 7.62% | 50.33% | 243.04% | 154.49% | |
Russell 3000 ® Index | -5.24% | 7.91% | 13.18% | 7.52% | 46.34% | 244.95% | 151.58% |
Average Annual | Cumulative | |||||||
1 Year | 5 Years | 10 Years |
Inception
(6/12/2003) |
5 Years | 10 Years |
Inception
(6/12/2003) |
||
Fund Performance | ||||||||
Net Asset Value | -18.83% | 1.01% | 7.90% | 4.36% | 5.14% | 113.92% | 94.26% | |
Market Price | -18.95% | 0.98% | 7.94% | 4.35% | 4.97% | 114.63% | 94.05% | |
Index Performance | ||||||||
Value Line ® 100 Index (1),(2) | -18.18% | 1.95% | 8.92% | N/A | 10.16% | 134.92% | N/A | |
Russell 3000 ® Index | -5.24% | 7.91% | 13.18% | 8.49% | 46.34% | 244.95% | 255.30% |
(1) | On June 15, 2007, the Fund acquired the assets and adopted the financial and performance history of First Trust Value Line ® 100 Fund (the “Predecessor FVL Fund,” a closed-end fund), which had an inception date of June 12, 2003. The inception date total returns at Net Asset Value include the sales load of $0.675 per share on the initial offering. The investment goals, strategies and policies of the Fund are substantially similar to those of the Predecessor FVL Fund. The inception date of the Index was January 16, 2007. Returns for the Index are only disclosed for those periods in which the Index was in existence for the entire period. The cumulative total returns for the period from the reorganization date (06/15/07) through period end (12/31/18) were 17.91% and 17.79% at Net Asset Value and Market Value, respectively. That compares to an Index return of 38.96% for that same period. The average annual total returns for the period from the reorganization date (6/15/07) through period end (12/31/18) were 1.44% and 1.43% at Net Asset Value and Market Value, respectively. That compares to an Index return of 2.87% for the same period. |
(2) | Performance data is not available for all the periods shown in the table for the Index, because performance data does not exist for each of the entire periods. |
Average Annual | Cumulative | |||||||
1 Year | 5 Years | 10 Years |
Inception
(8/19/2003) |
5 Years | 10 Years |
Inception
(8/19/2003) |
||
Fund Performance | ||||||||
Net Asset Value | -3.44% | 8.87% | 12.53% | 9.17% | 52.94% | 225.72% | 284.93% | |
Market Price | -3.50% | 8.85% | 12.62% | 9.17% | 52.79% | 228.28% | 284.92% | |
Index Performance | ||||||||
Value Line ® Dividend Index (1),(2) | -2.73% | 9.73% | 13.43% | N/A | 59.09% | 252.49% | N/A | |
S&P 500 ® Index | -4.38% | 8.49% | 13.12% | 8.35% | 50.33% | 243.04% | 242.92% | |
Dow Jones U.S. Select Dividend Index SM (1) | -5.94% | 8.49% | 12.26% | N/A | 50.28% | 217.75% | N/A |
(1) | Performance data is not available for all the periods shown in the table for the Index, because performance data does not exist for each of the entire periods. |
(2) | On December 15, 2006, the Fund acquired the assets and adopted the financial and performance history of First Trust Value Line ® Dividend Fund (the “Predecessor FVD Fund,” a closed-end fund), which had an inception date of August 19, 2003. The inception date total returns at Net Asset Value include the sales load of $0.675 per share on the initial offering. The investment goals, strategies and policies of the Fund are substantially similar to those of the Predecessor FVD Fund. The inception date of the Index was July 3, 2006. Returns for the Index are only disclosed for those periods in which the Index was in existence for the entire period. The cumulative total returns for the period from the reorganization date (12/15/06) through period end (12/31/18) were 137.98% and 139.12% at Net Asset Value and Market Value, respectively. That compares to an Index return of 179.64% for the same period. The average annual total returns for the period from the reorganization date (12/15/06) through period end (12/31/18) were 7.46% and 7.51% at Net Asset Value and Market Value, respectively. That compares to an Index return of 8.85% for the same period. |
Year Ended December 31, | ||||||
2018 | 2017 | 2016 | 2015 | 2014 | ||
Net asset value, beginning of period | $ 50.95 | $ 40.79 | $ 38.12 | $ 38.08 | $ 33.70 | |
Income from investment operations: | ||||||
Net investment income (loss) | 0.60 | 0.59 | 0.58 | 0.57 | 0.72 | |
Net realized and unrealized gain (loss) | (2.65) | 10.16 | 2.67 | 0.04 | 4.43 | |
Total from investment operations | (2.05) | 10.75 | 3.25 | 0.61 | 5.15 | |
Distributions paid to shareholders from: | ||||||
Net investment income | (0.61) | (0.59) | (0.58) | (0.57) | (0.77) | |
Net asset value, end of period | $ 48.29 | $ 50.95 | $ 40.79 | $ 38.12 | $ 38.08 | |
Total Return (a) | (4.09)% | 26.49% | 8.57% | 1.64% | 15.46% | |
Ratios/supplemental data: | ||||||
Net assets, end of period (in 000’s) | $1,376,131 | $624,099 | $320,190 | $165,815 | $85,686 | |
Ratios to average net assets: | ||||||
Ratio of total expenses to average net assets | 0.60% | 0.61% | 0.64% | 0.65% | 0.66% | |
Ratio of net expenses to average net assets | 0.60% | 0.61% | 0.64% | 0.65% | 0.65% | |
Ratio of net investment income (loss) to average net assets | 1.30% | 1.33% | 1.55% | 1.59% | 2.07% | |
Portfolio turnover rate (b) | 117% | 85% | 85% | 96% | 89% |
(a) | Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is calculated for the time period presented and is not annualized for periods of less than a year. The total returns would have been lower if certain fees had not been waived and expenses reimbursed by the investment advisor. |
(b) | Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities received or delivered from processing creations or redemptions and in-kind transactions. |
Year Ended December 31, | ||||||
2018 | 2017 | 2016 | 2015 | 2014 | ||
Net asset value, beginning of period | $ 109.82 | $ 79.79 | $ 74.64 | $ 61.30 | $ 59.84 | |
Income from investment operations: | ||||||
Net investment income (loss) | (0.35) | (0.28) | (0.27) | (0.14) | (0.08) | |
Net realized and unrealized gain (loss) | 7.19 | 30.31 | 5.42 | 13.48 | 1.54 | |
Total from investment operations | 6.84 | 30.03 | 5.15 | 13.34 | 1.46 | |
Distributions paid to shareholders from: | ||||||
Net investment income | — | — | — | — | — | |
Net asset value, end of period | $ 116.66 | $ 109.82 | $ 79.79 | $ 74.64 | $ 61.30 | |
Total Return (a) | 6.23% | 37.62% | 6.91% | 21.77% | 2.42% | |
Ratios/supplemental data: | ||||||
Net assets, end of period (in 000’s) | $7,016,807 | $5,490,820 | $3,486,734 | $4,914,821 | $1,976,793 | |
Ratios to average net assets: | ||||||
Ratio of total expenses to average net assets | 0.52% | 0.53% | 0.54% | 0.54% | 0.54% | |
Ratio of net expenses to average net assets | 0.52% | 0.53% | 0.54% | 0.54% | 0.54% | |
Ratio of net investment income (loss) to average net assets | (0.27)% | (0.32)% | (0.35)% | (0.29)% | (0.13)% | |
Portfolio turnover rate (b) | 21% | 22% | 21% | 28% | 27% |
(a) | Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is calculated for the time period presented and is not annualized for periods of less than a year. |
(b) | Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities received or delivered from processing creations or redemptions and in-kind transactions. |
Year Ended December 31, | ||||||
2018 | 2017 | 2016 | 2015 | 2014 | ||
Net asset value, beginning of period | $ 47.21 | $ 43.98 | $ 32.92 | $ 33.21 | $ 32.47 | |
Income from investment operations: | ||||||
Net investment income (loss) | 0.56 | 0.42 | 0.49 | 0.49 | 0.23 | |
Net realized and unrealized gain (loss) | (6.50) | 3.27 | 11.07 | (0.30) | 0.76 | |
Total from investment operations | (5.94) | 3.69 | 11.56 | 0.19 | 0.99 | |
Distributions paid to shareholders from: | ||||||
Net investment income | (0.51) | (0.46) | (0.50) | (0.48) | (0.25) | |
Net asset value, end of period | $ 40.76 | $ 47.21 | $ 43.98 | $ 32.92 | $ 33.21 | |
Total Return (a) | (12.68)% | 8.44% | 35.45% | 0.55% | 3.08% | |
Ratios/supplemental data: | ||||||
Net assets, end of period (in 000’s) | $138,777 | $97,012 | $116,776 | $49,551 | $51,648 | |
Ratios to average net assets: | ||||||
Ratio of total expenses to average net assets | 0.73% | 0.71% | 0.75% | 0.73% | 0.70% | |
Ratio of net expenses to average net assets | 0.60% | 0.60% | 0.60% | 0.60% | 0.60% | |
Ratio of net investment income (loss) to average net assets | 1.29% | 0.89% | 1.52% | 1.46% | 0.71% | |
Portfolio turnover rate (b) | 75% | 55% | 48% | 63% | 49% |
(a) | Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is calculated for the time period presented and is not annualized for periods of less than a year. The total returns would have been lower if certain fees had not been waived and expenses reimbursed by the investment advisor. |
(b) | Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities received or delivered from processing creations or redemptions and in-kind transactions. |
Year Ended December 31, | ||||||
2018 | 2017 | 2016 | 2015 | 2014 | ||
Net asset value, beginning of period | $ 39.57 | $ 27.39 | $ 28.36 | $ 28.63 | $ 28.22 | |
Income from investment operations: | ||||||
Net investment income (loss) | 0.04 | 0.34 | 0.25 | 0.15 | 0.20 | |
Net realized and unrealized gain (loss) | (8.16) | 12.61 | (0.85) | (0.24) | 0.48 | |
Total from investment operations | (8.12) | 12.95 | (0.60) | (0.09) | 0.68 | |
Distributions paid to shareholders from: | ||||||
Net investment income | (0.52) | (0.77) | (0.37) | (0.18) | (0.27) | |
Net asset value, end of period | $ 30.93 | $ 39.57 | $ 27.39 | $ 28.36 | $ 28.63 | |
Total Return (a) | (20.68)% | 47.36% | (2.15)% | (0.32)% | 2.37% | |
Ratios/supplemental data: | ||||||
Net assets, end of period (in 000’s) | $133,007 | $375,915 | $131,466 | $221,188 | $111,663 | |
Ratios to average net assets: | ||||||
Ratio of total expenses to average net assets | 0.59% | 0.60% | 0.60% | 0.62% | 0.65% | |
Ratio of net expenses to average net assets | 0.59% | 0.60% | 0.60% | 0.60% | 0.60% | |
Ratio of net investment income (loss) to average net assets | 1.06% | 0.91% | 0.91% | 0.64% | 0.54% | |
Portfolio turnover rate (b) | 22% | 35% | 47% | 68% | 40% |
(a) | Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is calculated for the time period presented and is not annualized for periods of less than a year. The total returns would have been lower if certain fees had not been waived and expenses reimbursed by the investment advisor. |
(b) | Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities received or delivered from processing creations or redemptions and in-kind transactions. |
Year Ended December 31, | ||||||
2018 | 2017 | 2016 | 2015 (a) | 2014 (a) | ||
Net asset value, beginning of period | $ 22.75 | $ 26.15 | $ 22.30 | $ 56.10 | $ 97.65 | |
Income from investment operations: | ||||||
Net investment income | 0.02 | (0.02) | 0.13 | 1.00 | 0.70 | |
Net realized and unrealized gain | (7.86) | (3.02) | 4.16 | (33.75) | (41.50) | |
Total from investment operations | (7.84) | (3.04) | 4.29 | (32.75) | (40.80) | |
Distributions paid to shareholders from: | ||||||
Net investment income | — | (0.23) | (0.44) | (1.05) | (0.75) | |
Return of capital | (0.22) | (0.13) | — | — | — | |
Total distributions | (0.22) | (0.36) | (0.44) | (1.05) | (0.75) | |
Net asset value, end of period | $ 14.69 | $ 22.75 | $ 26.15 | $ 22.30 | $ 56.10 | |
Total Return (b) | (34.77)% | (11.53)% | 19.48% | (59.10)% | (42.02)% | |
Ratios/supplemental data: | ||||||
Net assets, end of period (in 000’s) | $88,874 | $184,262 | $251,024 | $153,042 | $246,946 | |
Ratios to average net assets: | ||||||
Ratio of total expenses to average net assets | 0.63% | 0.64% (c) | 0.64% (c) | 0.62% | 0.61% | |
Ratio of net expenses to average net assets | 0.60% | 0.63% (c) | 0.61% (c) | 0.60% | 0.60% | |
Ratio of net investment income (loss) to average net assets | 0.07% | (0.11)% | 0.54% | 2.44% | 0.74% | |
Portfolio turnover rate (d) | 47% | 53% | 103% | 67% | 42% |
(a) | All per share amounts and net asset values have been adjusted to reflect the impact of the 1-for-5 reverse share split on May 2, 2016. The net asset values reported on December 31, 2015 and 2014 prior to the reverse share split restatement were $4.46 and $11.22, respectively. |
(b) | Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is calculated for the time period presented and is not annualized for periods of less than a year. The total returns would have been lower if certain fees had not been waived and expenses reimbursed by the investment advisor. |
(c) | For the years ended December 31, 2017 and 2016, ratios reflect excise tax of 0.03% and 0.01%, respectively, which are not included in the expense cap. |
(d) | Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities received or delivered from processing creations or redemptions and in-kind transactions. |
Year Ended December 31, | ||||||
2018 | 2017 | 2016 | 2015 | 2014 | ||
Net asset value, beginning of period | $ 48.58 | $ 39.61 | $ 30.13 | $ 33.65 | $ 33.79 | |
Income from investment operations: | ||||||
Net investment income (loss) | 0.35 | 0.54 | 0.20 | 0.23 | 0.25 | |
Net realized and unrealized gain (loss) | (4.65) | 8.98 | 9.48 | (3.52) | (0.14) | |
Total from investment operations | (4.30) | 9.52 | 9.68 | (3.29) | 0.11 | |
Distributions paid to shareholders from: | ||||||
Net investment income | (0.32) | (0.55) | (0.20) | (0.23) | (0.25) | |
Net asset value, end of period | $ 43.96 | $ 48.58 | $ 39.61 | $ 30.13 | $ 33.65 | |
Total Return (a) | (8.89)% | 24.25% | 32.21% | (9.81)% | 0.36% | |
Ratios/supplemental data: | ||||||
Net assets, end of period (in 000’s) | $290,107 | $298,775 | $221,791 | $102,432 | $198,550 | |
Ratios to average net assets: | ||||||
Ratio of total expenses to average net assets | 0.55% | 0.56% | 0.57% | 0.57% | 0.59% | |
Ratio of net expenses to average net assets | 0.55% | 0.56% | 0.57% | 0.57% | 0.59% | |
Ratio of net investment income (loss) to average net assets | 0.72% | 1.26% | 0.58% | 0.70% | 0.75% | |
Portfolio turnover rate (b) | 11% | 24% | 42% | 17% | 24% |
(a) | Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all |
distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is calculated for the time period presented and is not annualized for periods of less than a year. | |
(b) | Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities received or delivered from processing creations or redemptions and in-kind transactions. |
Year Ended December 31, | ||||||
2018 | 2017 | 2016 | 2015 | 2014 | ||
Net asset value, beginning of period | $ 30.06 | $ 27.75 | $ 23.69 | $ 23.94 | $ 21.93 | |
Income from investment operations | ||||||
Net investment income (loss) | 1.09 | 0.93 | 0.82 | 0.86 | 0.80 | |
Net realized and unrealized gain (loss) | (2.83) | 2.34 | 4.05 | (0.25) | 2.01 | |
Total from investment operations | (1.74) | 3.27 | 4.87 | 0.61 | 2.81 | |
Distributions paid to shareholders from: | ||||||
Net investment income | (1.08) | (0.96) | (0.81) | (0.86) | (0.80) | |
Net asset value, end of period | $ 27.24 | $ 30.06 | $ 27.75 | $ 23.69 | $ 23.94 | |
Total Return (a) | (5.87)% | 11.93% | 20.72% | 2.73% | 12.96% | |
Ratios/supplemental data: | ||||||
Net assets, end of period (in 000’s) | $1,386,483 | $1,719,299 | $1,778,464 | $875,294 | $985,151 | |
Ratios to average net assets: | ||||||
Ratio of total expenses to average net assets | 0.47% | 0.47% | 0.48% | 0.48% | 0.49% | |
Ratio of net expenses to average net assets | 0.45% | 0.45% | 0.45% | 0.45% | 0.45% | |
Ratio of net investment income (loss) to average net assets | 3.70% | 3.18% | 3.27% | 3.59% | 3.55% | |
Portfolio turnover rate (b) | 39% | 43% | 50% | 61% | 40% |
(a) | Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is calculated for the time period presented and is not annualized for periods of less than a year. The total returns would have been lower if certain fees had not been waived and expenses reimbursed by the investment advisor. |
(b) | Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities received or delivered from processing creations or redemptions and in-kind transactions. |
Year Ended December 31, | ||||||
2018 | 2017 | 2016 | 2015 | 2014 | ||
Net asset value, beginning of period | $ 57.88 | $ 46.18 | $ 43.48 | $ 42.80 | $ 36.35 | |
Income from investment operations: | ||||||
Net investment income (loss) | 0.32 | 0.24 | 0.31 | 0.22 | 0.41 | |
Net realized and unrealized gain (loss) | (3.29) (a) | 11.74 | 2.73 | 0.73 | 6.49 | |
Total from investment operations | (2.97) | 11.98 | 3.04 | 0.95 | 6.90 | |
Distributions paid to shareholders from: | ||||||
Net investment income | (0.30) | (0.28) | (0.34) | (0.27) | (0.45) | |
Net asset value, end of period | $ 54.61 | $ 57.88 | $ 46.18 | $ 43.48 | $ 42.80 | |
Total Return (b) | (5.16)% (a) | 26.00% | 7.02% | 2.22% | 19.13% | |
Ratios/supplemental data: | ||||||
Net assets, end of period (in 000’s) | $461,464 | $529,632 | $404,044 | $532,679 | $577,828 | |
Ratios to average net assets: | ||||||
Ratio of total expenses to average net assets | 0.60% | 0.60% | 0.61% | 0.60% | 0.61% | |
Ratio of net expenses to average net assets | 0.60% | 0.60% | 0.60% | 0.60% | 0.60% | |
Ratio of net investment income (loss) to average net assets | 0.52% | 0.45% | 0.72% | 0.51% | 1.10% | |
Portfolio turnover rate (c) | 27% | 26% | 29% | 31% | 27% |
(a) | The Fund received a reimbursement from the Advisor in the amount of $22,098 in connection with a trade error, which represents less than $0.01 per share. Since the Advisor reimbursed the Fund, there was no effect on the Fund's total return. |
(b) | Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is calculated for the time period presented and is not annualized for periods of less than a year. The total returns would have been lower if certain fees had not been waived and expenses reimbursed by the investment advisor. |
(c) | Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities received or delivered from processing creations or redemptions and in-kind transactions. |
Year Ended December 31, | ||||||
2018 | 2017 | 2016 | 2015 | 2014 | ||
Net asset value, beginning of period | $ 48.53 | $ 40.44 | $ 41.45 | $ 39.73 | $ 34.77 | |
Income from investment operations: | ||||||
Net investment income (loss) | 0.18 | 0.12 | 0.09 | 0.13 | 0.32 | |
Net realized and unrealized gain (loss) | (2.88) | 8.13 | (0.98) | 1.75 | 4.97 | |
Total from investment operations | (2.70) | 8.25 | (0.89) | 1.88 | 5.29 | |
Distributions paid to shareholders from: | ||||||
Net investment income | (0.17) | (0.16) | (0.12) | (0.16) | (0.33) | |
Net asset value, end of period | $ 45.66 | $ 48.53 | $ 40.44 | $ 41.45 | $ 39.73 | |
Total Return (a) | (5.58)% | 20.41% | (2.13)% | 4.75% | 15.35% | |
Ratios/supplemental data: | ||||||
Net assets, end of period (in 000’s) | $77,618 | $101,914 | $103,118 | $184,447 | $117,195 | |
Ratios to average net assets: | ||||||
Ratio of total expenses to average net assets | 0.64% | 0.63% | 0.64% | 0.63% | 0.64% | |
Ratio of net expenses to average net assets | 0.60% | 0.60% | 0.60% | 0.60% | 0.60% | |
Ratio of net investment income (loss) to average net assets | 0.34% | 0.25% | 0.23% | 0.33% | 0.90% | |
Portfolio turnover rate (b) | 26% | 25% | 30% | 39% | 23% |
(a) | Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is calculated for the time period presented and is not annualized for periods of less than a year. The total returns would have been lower if certain fees had not been waived and expenses reimbursed by the investment advisor. |
(b) | Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities received or delivered from processing creations or redemptions and in-kind transactions. |
Year Ended December 31, | ||||||
2018 | 2017 | 2016 | 2015 | 2014 | ||
Net asset value, beginning of period | $ 71.92 | $ 52.62 | $ 42.64 | $ 43.67 | $ 35.43 | |
Income from investment operations: | ||||||
Net investment income (loss) | 0.65 | 0.48 | 0.67 | 0.37 | 0.45 | |
Net realized and unrealized gain (loss) | (3.98) | 19.39 | 9.99 | (0.98) | 8.32 | |
Total from investment operations | (3.33) | 19.87 | 10.66 | (0.61) | 8.77 | |
Distributions paid to shareholders from: | ||||||
Net investment income | (0.62) | (0.57) | (0.68) | (0.42) | (0.53) | |
Net asset value, end of period | $ 67.97 | $ 71.92 | $ 52.62 | $ 42.64 | $ 43.67 | |
Total Return (a) | (4.70)% | 37.86% | 25.27% | (1.37)% | 24.83% | |
Ratios/supplemental data: | ||||||
Net assets, end of period (in 000’s) | $1,950,669 | $2,200,711 | $1,570,855 | $302,735 | $366,869 | |
Ratios to average net assets: | ||||||
Ratio of total expenses to average net assets | 0.57% | 0.58% | 0.60% | 0.60% | 0.61% | |
Ratio of net expenses to average net assets | 0.57% | 0.58% | 0.60% | 0.60% | 0.60% | |
Ratio of net investment income (loss) to average net assets | 0.84% | 0.76% | 1.40% | 0.83% | 1.32% | |
Portfolio turnover rate (b) | 21% | 21% | 27% | 23% | 20% |
(a) | Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is calculated for the time period presented and is not annualized for periods of less than a year. The total returns would have been lower if certain fees had not been waived and expenses reimbursed by the investment advisor. |
(b) | Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities received or delivered from processing creations or redemptions and in-kind transactions. |
Year Ended December 31, | ||||||
2018 | 2017 | 2016 | 2015 | 2014 | ||
Net asset value, beginning of period | $ 52.34 | $ 52.81 | $ 38.94 | $ 36.61 | $ 36.11 | |
Income from investment operations: | ||||||
Net investment income (loss) | 0.81 | 0.74 | 0.58 | 0.56 | 0.47 | |
Net realized and unrealized gain (loss) | (9.17) | (0.46) | 13.89 | 2.31 | 0.50 | |
Total from investment operations | (8.36) | 0.28 | 14.47 | 2.87 | 0.97 | |
Distributions paid to shareholders from: | ||||||
Net investment income | (0.82) | (0.75) | (0.60) | (0.54) | (0.47) | |
Net asset value, end of period | $ 43.16 | $ 52.34 | $ 52.81 | $ 38.94 | $ 36.61 | |
Total Return (a) | (16.14)% | 0.55% | 37.57% | 7.88% | 2.72% | |
Ratios/supplemental data: | ||||||
Net assets, end of period (in 000’s) | $228,762 | $314,032 | $404,023 | $223,902 | $109,818 | |
Ratios to average net assets: | ||||||
Ratio of total expenses to average net assets | 0.60% | 0.60% | 0.61% | 0.62% | 0.64% | |
Ratio of net expenses to average net assets | 0.60% | 0.60% | 0.60% | 0.60% | 0.60% | |
Ratio of net investment income (loss) to average net assets | 1.50% | 1.37% | 1.54% | 1.52% | 1.41% | |
Portfolio turnover rate (b) | 11% | 14% | 16% | 19% | 26% |
(a) | Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is calculated for the time period presented and is not annualized for periods of less than a year. The total returns would have been lower if certain fees had not been waived and expenses reimbursed by the investment advisor. |
(b) | Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities received or delivered from processing creations or redemptions and in-kind transactions. |
Year Ended December 31, | ||||||
2018 | 2017 | 2016 | 2015 | 2014 | ||
Net asset value, beginning of period | $ 20.28 | $ 15.47 | $ 16.01 | $ 17.23 | $ 17.90 | |
Income from investment operations: | ||||||
Net investment income (loss) | 0.12 | 0.05 | 0.17 | 0.11 | 0.13 | |
Net realized and unrealized gain (loss) | (2.59) | 4.85 | (0.52) | (1.21) | (0.66) | |
Total from investment operations | (2.47) | 4.90 | (0.35) | (1.10) | (0.53) | |
Distributions paid to shareholders from: | ||||||
Net investment income | (0.11) | (0.09) | (0.19) | (0.12) | (0.14) | |
Return of capital | (0.07) | — | — | — | — | |
Total distributions | (0.18) | (0.09) | (0.19) | (0.12) | (0.14) | |
Net asset value, end of period | $ 17.63 | $ 20.28 | $ 15.47 | $ 16.01 | $ 17.23 | |
Total Return (a) | (12.22)% | 31.73% | (2.12)% | (6.43)% | (3.05)% | |
Ratios/supplemental data: | ||||||
Net assets, end of period (in 000’s) | $83,731 | $91,262 | $51,837 | $69,655 | $89,616 | |
Ratios to average net assets: | ||||||
Ratio of total expenses to average net assets | 0.65% | 0.66% | 0.68% | 0.65% | 0.64% | |
Ratio of net expenses to average net assets | 0.60% | 0.60% | 0.60% | 0.60% | 0.60% | |
Ratio of net investment income (loss) to average net assets | 0.59% | 0.23% | 1.18% | 0.65% | 0.61% | |
Portfolio turnover rate (b) | 45% | 32% | 49% | 35% | 37% |
(a) | Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is calculated for the time period presented and is not annualized for periods of less than a year. The total returns would have been lower if certain fees had not been waived and expenses reimbursed by the investment advisor. The total returns would have been lower if certain fees had not been waived and expenses reimbursed by the investment advisor. |
(b) | Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities received or delivered from processing creations or redemptions and in-kind transactions. |
Year Ended December 31, | ||||||
2018 | 2017 | 2016 | 2015 | 2014 | ||
Net asset value, beginning of period | $ 124.52 | $ 90.89 | $ 113.06 | $ 101.99 | $ 69.12 | |
Income from investment operations: | ||||||
Net investment income (loss) | (0.22) | (0.08) | (0.32) | 0.09 | 0.04 | |
Net realized and unrealized gain (loss) | (0.04) | 33.71 | (21.85) | 11.11 | 32.88 | |
Total from investment operations | (0.26) | 33.63 | (22.17) | 11.20 | 32.92 | |
Distributions paid to shareholders from: | ||||||
Net investment income | — | — | — | (0.13) | (0.05) | |
Net asset value, end of period | $ 124.26 | $ 124.52 | $ 90.89 | $ 113.06 | $ 101.99 | |
Total Return (a) | (0.21)% | 36.99% | (19.60)% | 10.97% | 47.63% | |
Ratios/supplemental data: | ||||||
Net assets, end of period (in 000’s) | $2,342,213 | $1.207,811 | $804,385 | $3,437,024 | $2,126,581 | |
Ratios to average net assets: | ||||||
Ratio of total expenses to average net assets | 0.57% | 0.56% | 0.56% | 0.55% | 0.58% | |
Ratio of net expenses to average net assets | 0.57% | 0.56% | 0.56% | 0.55% | 0.58% | |
Ratio of net investment income (loss) to average net assets | (0.21)% | (0.08)% | (0.27)% | 0.08% | 0.06% | |
Portfolio turnover rate (b) | 37% | 36% | 42% | 30% | 58% |
(a) | Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is calculated for the time period presented and is not annualized for periods of less than a year. |
(b) | Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities received or delivered from processing creations or redemptions and in-kind transactions. |
Year Ended December 31, | ||||||
2018 | 2017 | 2016 | 2015 | 2014 | ||
Net asset value, beginning of period | $ 23.28 | $ 23.07 | $ 22.07 | $ 22.24 | $ 17.54 | |
Income from investment operations: | ||||||
Net investment income (loss) | 0.69 | 0.71 | 0.62 | 0.55 | 0.41 | |
Net realized and unrealized gain (loss) | (1.65) | 0.16 | 1.13 | (0.13) | 4.75 | |
Total from investment operations | (0.96) | 0.87 | 1.75 | 0.42 | 5.16 | |
Distributions paid to shareholders from: | ||||||
Net investment income | (0.69) | (0.66) | (0.75) | (0.59) | (0.46) | |
Net asset value, end of period | $ 21.63 | $ 23.28 | $ 23.07 | $ 22.07 | $ 22.24 | |
Total Return (a) | (4.19)% | 3.79% | 7.92% | 1.97% | 29.61% | |
Ratios/supplemental data: | ||||||
Net assets, end of period (in 000’s) | $115,696 | $161,791 | $236,426 | $226,250 | $339,130 | |
Ratios to average net assets: | ||||||
Ratio of total expenses to average net assets | 0.52% | 0.48% | 0.49% | 0.48% | 0.50% | |
Ratio of net expenses to average net assets | 0.50% | 0.48% | 0.49% | 0.48% | 0.50% | |
Ratio of net investment income (loss) to average net assets | 3.05% | 2.77% | 2.52% | 2.30% | 2.35% | |
Portfolio turnover rate (b) | 10% | 7% | 6% | 8% | 11% |
(a) | Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is calculated for the time period presented and is not annualized for periods of less than a year. The total returns would have been lower if certain fees had not been waived and expenses reimbursed by the investment advisor. |
(b) | Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities received or delivered from processing creations or redemptions and in-kind transactions. |
Year Ended December 31, | ||||||
2018 | 2017 | 2016 | 2015 | 2014 | ||
Net asset value, beginning of period | $ 68.18 | $ 54.10 | $ 51.11 | $ 50.32 | $ 45.34 | |
Income from investment operations: | ||||||
Net investment income (loss) | 0.52 | 0.43 | 0.31 | 0.31 | 0.41 | |
Net realized and unrealized gain (loss) | (6.08) | 14.12 | 3.10 | 0.80 | 4.97 | |
Total from investment operations | (5.56) | 14.55 | 3.41 | 1.11 | 5.38 | |
Distributions paid to shareholders from: | ||||||
Net investment income | (0.55) | (0.47) | (0.42) | (0.32) | (0.40) | |
Net asset value, end of period | $ 62.07 | $ 68.18 | $ 54.10 | $ 51.11 | $ 50.32 | |
Total Return (a) | (8.22)% | 26.96% | 6.70% | 2.19% | 11.91% | |
Ratios/supplemental data: | ||||||
Net assets, end of period (in 000’s) | $912,479 | $981,732 | $614,024 | $789,693 | $535,943 | |
Ratios to average net assets: | ||||||
Ratio of total expenses to average net assets | 0.59% | 0.59% | 0.60% | 0.60% | 0.60% | |
Ratio of net expenses to average net assets | 0.59% | 0.59% | 0.60% | 0.60% | 0.60% | |
Ratio of net investment income (loss) to average net assets | 0.74% | 0.71% | 0.58% | 0.61% | 0.89% | |
Portfolio turnover rate (b) | 57% | 31% | 41% | 41% | 46% |
(a) | Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is calculated for the time period presented and is not annualized for periods of less than a year. |
(b) | Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities received or delivered from processing creations or redemptions and in-kind transactions. |
Year Ended December 31, | ||||||
2018 | 2017 | 2016 | 2015 | 2014 | ||
Net asset value, beginning of period | $ 23.33 | $ 21.58 | $ 19.71 | $ 20.41 | $ 18.44 | |
Income from investment operations: | ||||||
Net investment income (loss) | 0.13 | 0.16 | 0.12 | 0.07 | 0.11 | |
Net realized and unrealized gain (loss) | (4.51) | 1.78 | 1.87 | (0.71) (c) | 1.98 | |
Total from investment operations | (4.38) | 1.94 | 1.99 | (0.64) | 2.09 | |
Distributions paid to shareholders from: | ||||||
Net investment income | (0.13) | (0.19) | (0.12) | (0.06) | (0.12) | |
Net asset value, end of period | $ 18.82 | $ 23.33 | $ 21.58 | $ 19.71 | $ 20.41 | |
Total Return (a) | (18.83)% | 9.05% | 10.14% | (3.13)% (c) | 11.33% | |
Ratios/supplemental data: | ||||||
Net assets, end of period (in 000’s) | $36,506 | $55,757 | $52,643 | $53,013 | $60,008 | |
Ratios to average net assets: | ||||||
Ratio of total expenses to average net assets | 0.89% | 0.85% | 0.87% | 0.84% | 0.84% | |
Ratio of net expenses to average net assets | 0.70% | 0.70% | 0.70% | 0.70% | 0.70% | |
Ratio of net investment income (loss) to average net assets | 0.56% | 0.73% | 0.59% | 0.32% | 0.57% | |
Portfolio turnover rate (b) | 424% | 466% | 491% | 404% | 325% |
(a) | Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is calculated for the time period presented and is not annualized for periods of less than a year. The total returns would have been lower if certain fees had not been waived and expenses reimbursed by the investment advisor. |
(b) | Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities received or delivered from processing creations or redemptions and in-kind transactions. |
(c) | The Fund received a payment from the Advisor in the amount of $95,996 in connection with a trade error, which represents $0.03 per share. Since the Advisor reimbursed the Fund, there was no effect on the Fund's total return. |
Year Ended December 31, | ||||||
2018 | 2017 | 2016 | 2015 | 2014 | ||
Net asset value, beginning of period | $ 30.84 | $ 28.02 | $ 23.86 | $ 24.13 | $ 21.36 | |
Income from investment operations: | ||||||
Net investment income (loss) | 0.73 | 0.63 | 0.56 | 0.55 | 0.58 | |
Net realized and unrealized gain (loss) | (1.77) | 2.84 | 4.17 | (0.26) | 2.78 | |
Total from investment operations | (1.04) | 3.47 | 4.73 | 0.29 | 3.36 | |
Distributions paid to shareholders from: | ||||||
Net investment income | (0.73) | (0.65) | (0.57) | (0.56) | (0.59) | |
Net asset value, end of period | $ 29.07 | $ 30.84 | $ 28.02 | $ 23.86 | $ 24.13 | |
Total Return (a) | (3.44)% | 12.48% | 19.94% | 1.26% | 15.94% | |
Ratios/supplemental data: | ||||||
Net assets, end of period (in 000’s) | $4,374,483 | $4,194,830 | $2,892,982 | $1,188,031 | $1,089,299 | |
Ratios to average net assets: | ||||||
Ratio of total expenses to average net assets | 0.72% | 0.72% | 0.73% | 0.74% | 0.75% | |
Ratio of net expenses to average net assets | 0.70% | 0.70% | 0.70% | 0.70% | 0.70% | |
Ratio of net investment income (loss) to average net assets | 2.40% | 2.19% | 2.31% | 2.40% | 2.63% | |
Portfolio turnover rate (b) | 58% | 50% | 60% | 82% | 63% |
(a) | Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is calculated for the time period presented and is not annualized for periods of less than a year. The total returns would have been lower if certain fees had not been waived and expenses reimbursed by the investment advisor. |
(b) | Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities received or delivered from processing creations or redemptions and in-kind transactions. |
First Trust
Exchange-Traded Fund |
First Trust
Exchange-Traded Fund |
FUND NAME | TICKER SYMBOL | EXCHANGE |
First Trust Dorsey Wright People’s Portfolio ETF | DWPP | Nasdaq |
First Trust Dow 30 Equal Weight ETF | EDOW | NYSE Arca |
First Trust Lunt U.S. Factor Rotation ETF | FCTR | Cboe BZX |
First Trust Total US Market AlphaDEX ® ETF | TUSA | Nasdaq |
Summary Information | |
|
3 |
|
10 |
|
16 |
|
22 |
|
29 |
|
30 |
|
30 |
|
37 |
|
37 |
|
38 |
|
40 |
|
40 |
|
42 |
|
42 |
|
43 |
|
43 |
|
43 |
|
46 |
|
48 |
|
51 |
|
55 |
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price) | None |
Management Fees | 0.60% |
Distribution and Service (12b-1) Fees | 0.00% |
Other Expenses | 0.00% |
Total Annual Fund Operating Expenses | 0.60% |
1 Year | 3 Years | 5 Years | 10 Years |
$61 | $192 | $335 | $750 |
Best Quarter | Worst Quarter | ||
9.33% | December 31, 2014 | -14.16% | December 31, 2018 |
1 Year | 5 Years |
Since
Inception |
Inception
Date |
|
Return Before Taxes | -8.26% | 4.01% | 5.79% | 8/29/2012 |
Return After Taxes on Distributions | -8.71% | 3.39% | 5.15% | |
Return After Taxes on Distributions and Sale of Fund Shares | -4.87% | 2.82% | 4.24% | |
Nasdaq Dorsey Wright Peoples Portfolio Index (1) (reflects no deduction for fees, expenses or taxes) | -7.76% | N/A | N/A | |
S&P 500 ® Index (reflects no deduction for fees, expenses or taxes) | -4.38% | 8.49% | 11.80% | |
Nasdaq US 500 Large Cap Index (reflects no deduction for fees, expenses or taxes) | -4.75% | N/A | N/A |
(1) | On August 18, 2017, the Fund's underlying index changed from the CBOE ® VIX ® Tail Hedge Index to the Nasdaq Dorsey Wright People's Portfolio Index. Therefore, the Fund’s performance and total returns shown for the periods prior to August 18, 2017, are not necessarily indicative of the performance the Fund, based on the current Index, would have generated. Since the Fund's current Index had an inception date of July 24, 2017, it was not in existence for all of the periods disclosed. |
• | Daniel J. Lindquist, Chairman of the Investment Committee and Managing Director of First Trust |
• | Jon C. Erickson, Senior Vice President of First Trust |
• | David G. McGarel, Chief Investment Officer, Chief Operating Officer and Managing Director of First Trust |
• | Roger F. Testin, Senior Vice President of First Trust |
• | Stan Ueland, Senior Vice President of First Trust |
• | Chris A. Peterson, Senior Vice President of First Trust |
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price) | None |
Management Fees | 0.50% |
Distribution and Service (12b-1) Fees | 0.00% |
Other Expenses | 0.00% |
Total Annual Fund Operating Expenses | 0.50% |
1 Year | 3 Years | 5 Years | 10 Years |
$51 | $160 | $280 | $628 |
Best Quarter | Worst Quarter | ||
9.53% | September 30, 2018 | -8.86% | December 31, 2018 |
1 Year |
Since
Inception |
Inception
Date |
|
Return Before Taxes | -0.88% | 7.09% | 8/8/2017 |
Return After Taxes on Distributions | -1.58% | 6.29% | |
Return After Taxes on Distributions and Sale of Fund Shares | -0.51% | 5.08% | |
Dow Jones Industrial Average Equal Weight Index (reflects no deduction for fees, expenses or taxes) | -0.40% | 7.61% | |
Dow Jones Industrial Average TM (reflects no deduction for fees, expenses or taxes) | -3.48% | 6.43% |
• | Daniel J. Lindquist, Chairman of the Investment Committee and Managing Director of First Trust |
• | Jon C. Erickson, Senior Vice President of First Trust |
• | David G. McGarel, Chief Investment Officer, Chief Operating Officer and Managing Director of First Trust |
• | Roger F. Testin, Senior Vice President of First Trust |
• | Stan Ueland, Senior Vice President of First Trust |
• | Chris A. Peterson, Senior Vice President of First Trust |
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price) | None |
Management Fees | 0.65% |
Distribution and Service (12b-1) Fees | 0.00% |
Other Expenses | 0.00% |
Total Annual Fund Operating Expenses | 0.65% |
1 Year | 3 Years | 5 Years | 10 Years |
$66 | $208 | $362 | $811 |
• | Momentum is the statistical measurement of the price performance of a security versus a market average, another security or a universe of securities. The sub-indices representing this factor are rebalanced semi-annually and evaluate the average of a security’s trailing 12-month, 9-month, 6-month, 3-month and 1-month returns. |
○ | Nasdaq Factor Family US Momentum Index : an index seeking to select a portfolio of securities exhibiting high momentum factor characteristics. |
○ | Nasdaq Factor Laggard US Momentum Index : an index seeking to select a portfolio of securities exhibiting low momentum factor characteristics. |
• | Value is the statistical measurement of a security’s price relative to the fundamental value of that security. The sub-indices representing this factor are rebalanced semi-annually and select securities based on a value score that evaluates several factors, including a security’s book value to price ratio, cash flow to price, return on assets, sales enterprise value and earnings-to-price ratio. |
○ | Nasdaq Factor Family US Value Index : an index seeking to select a portfolio of securities exhibiting high value factor characteristics. |
○ | Nasdaq Factor Laggard US Value Index : an index seeking to select a portfolio of securities exhibiting low value factor characteristics. |
• | Quality is the statistical measurement of the strength of a security’s fundamentals. The sub-indices representing this factor are rebalanced annually and evaluate several criteria, including a security’s earnings-per-share, operating margin, sales growth and return on equity. |
○ | Nasdaq Factor Family US Quality Index : an index seeking to select a portfolio of securities exhibiting high quality factor characteristics. |
○ | Nasdaq Factor Laggard US Quality Index : an index seeking to select a portfolio of securities exhibiting low quality factor characteristics. |
• | Volatility is the statistical measurement of the magnitude of a security’s price fluctuations over time. The sub-indices representing this factor are rebalanced semi-annually and evaluate a security’s realized volatility over trailing 12-month, 9-month, 6-month and 3-month and 1-month time periods. |
○ | Nasdaq Factor Family US Low Volatility Index : an index seeking to select a portfolio of securities exhibiting low levels of volatility. |
○ | Nasdaq Factor Laggard US Low Volatility Index : an index seeking to select a portfolio of securities exhibiting high levels of volatility. |
• | Daniel J. Lindquist, Chairman of the Investment Committee and Managing Director of First Trust |
• | Jon C. Erickson, Senior Vice President of First Trust |
• | David G. McGarel, Chief Investment Officer, Chief Operating Officer and Managing Director of First Trust |
• | Roger F. Testin, Senior Vice President of First Trust |
• | Stan Ueland, Senior Vice President of First Trust |
• | Chris A. Peterson, Senior Vice President of First Trust |
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price) | None |
Management Fees | 0.50% |
Distribution and Service (12b-1) Fees | 0.00% |
Other Expenses | 1.07% |
Total Annual Fund Operating Expenses | 1.57% |
Fee Waiver and Expense Reimbursement (1) | 0.87% |
Total Annual Fund Operating Expenses After Fee Waiver and Expense Reimbursement | 0.70% |
(1) | First Trust Advisors L.P., the Fund’s investment advisor, has agreed to waive fees and/or reimburse Fund expenses to the extent that the operating expenses of the Fund (excluding interest expense, brokerage commissions and other trading expenses, acquired fund fees and expenses, taxes and extraordinary expenses) exceed 0.70% of its average daily net assets per year (the “Expense Cap”) at least through April 30, 2020. Expenses reimbursed and fees waived under such agreement are subject to recovery by the Fund’s investment advisor for up to three years from the date the fee was waived or expense was incurred, but no reimbursement payment will be made by the Fund if it results in the Fund exceeding (i) the applicable expense limitation in place for the most recent fiscal year for which such expense limitation was in place, (ii) the applicable expense limitation in place at the time the fees were waived, or (iii) the current expense limitation. The agreement may be terminated by the Trust, on behalf of the Fund, at any time and by the Fund’s investment advisor only after April 30, 2020 upon 60 days’ written notice. |
1 Year | 3 Years | 5 Years | 10 Years |
$72 | $410 | $773 | $1,794 |
1. | The 200 highest ranking securities from the NASDAQ US Large Cap Index |
2. | The 400 highest ranking securities from the NASDAQ US Mid Cap Index |
3. | The 600 highest ranking securities from the NASDAQ US Small Cap Index |
Best Quarter | Worst Quarter | ||
18.63% | September 30, 2009 | -19.64% | September 30, 2011 |
1 Year | 5 Years | 10 Years |
Since
Inception |
Inception
Date |
|
Return Before Taxes | -10.13% | 3.59% | 9.77% | 4.48% | 12/5/2006 |
Return After Taxes on Distributions | -10.50% | 3.13% | 9.25% | 3.98% | |
Return After Taxes on Distributions and Sale of Fund Shares | -5.97% | 2.56% | 7.78% | 3.32% | |
NASDAQ AlphaDEX ® Total US Market Index (1) (reflects no deduction for fees, expenses or taxes) | -9.55% | N/A | N/A | N/A | |
Russell 3000 ® Index (reflects no deduction for fees, expenses or taxes) | -5.24% | 7.91% | 13.18% | 7.05% |
(1) | On January 9, 2015, the Fund’s underlying index changed from the Value Line ® Equity Allocation Index to the NASDAQ AlphaDEX ® Total US Market Index. Therefore, the Fund’s performance and total returns shown for the periods prior to January 9, 2015, are not necessarily indicative of the performance the Fund, based on its current index, would have generated. Since the Fund’s current underlying index had an inception date of September 8, 2014, it was not in existence for all of the periods disclosed. |
• | Daniel J. Lindquist, Chairman of the Investment Committee and Managing Director of First Trust |
• | Jon C. Erickson, Senior Vice President of First Trust |
• | David G. McGarel, Chief Investment Officer, Chief Operating Officer and Managing Director of First Trust |
• | Roger F. Testin, Senior Vice President of First Trust |
• | Stan Ueland, Senior Vice President of First Trust |
• | Chris A. Peterson, Senior Vice President of First Trust |
• | Mr. Lindquist is Chairman of the Investment Committee and presides over Investment Committee meetings. Mr. Lindquist is responsible for overseeing the implementation of each Fund’s investment strategy. Mr. Lindquist was a Senior Vice President of First Trust and FTP from September 2005 to July 2012 and is now a Managing Director of First Trust and FTP. Mr. Lindquist is a recipient of the Chartered Financial Analyst designation. |
• | Mr. Erickson joined First Trust in 1994 and is a Senior Vice President of First Trust and FTP. As the head of First Trust’s Equity Research Group, Mr. Erickson is responsible for determining the securities to be purchased and sold by funds that do not utilize quantitative investment strategies. Mr. Erickson is a recipient of the Chartered Financial Analyst designation. |
• | Mr. McGarel is the Chief Investment Officer, Chief Operating Officer and a Managing Director of First Trust and FTP. As First Trust’s Chief Investment Officer, Mr. McGarel consults with the other members of the Investment Committee on market conditions and First Trust’s general investment philosophy. Mr. McGarel was a Senior Vice President of First Trust and FTP from January 2004 to July 2012. Mr. McGarel is a recipient of the Chartered Financial Analyst designation. |
• | Mr. Testin is a Senior Vice President of First Trust and FTP. Mr. Testin is the head of First Trust’s Portfolio Management Group. Mr. Testin has been a Senior Vice President of First Trust and FTP since November 2003. Mr. Testin is a recipient of the Chartered Financial Analyst designation. |
• | Mr. Ueland joined First Trust as a Vice President in August 2005 and has been a Senior Vice President of First Trust and FTP since September 2012. At First Trust, he plays an important role in executing the investment strategies of each portfolio of exchange-traded funds advised by First Trust. |
• | Mr. Peterson is a Senior Vice President and head of First Trust’s strategy research group. He joined First Trust in January of 2000. Mr. Peterson is responsible for developing and implementing quantitative equity investment strategies. Mr. Peterson received his B.S. in Finance from Bradley University in 1997 and his M.B.A. from the University of Chicago Booth School of Business in 2005. He has over 20 years of financial services industry experience and is a recipient of the Chartered Financial Analyst designation. |
Fund |
Annual
Management Fee (% of average daily net assets) |
Annual
Expense Cap (% of average daily net assets) |
Expense Cap
Termination Date |
Management Fee
Paid for the Year Ended 12/31/2018 (% of average daily net assets) |
First Trust Dorsey Wright People’s Portfolio ETF | 0.60% | N/A | N/A | 0.60% |
First Trust Dow 30 Equal Weight ETF | 0.50% | N/A | N/A | 0.50% |
First Trust Lunt U.S. Factor Rotation ETF | 0.65% | N/A | N/A | 0.65% |
First Trust Total US Market AlphaDEX ® ETF | 0.50% | 0.70% | April 30, 2020 | 0.00% |
0.00% – 0.49% | 0.50% – 0.99% | 1.00% – 1.99% | >=2.00% | |
12 Months Ended 12/31/2018 | 162 | 3 | 0 | 0 |
3 Months Ended 3/31/2019 | 40 | 0 | 0 | 0 |
0.00% – 0.49% | 0.50% – 0.99% | 1.00% – 1.99% | >=2.00% | |
12 Months Ended 12/31/2018 | 84 | 2 | 0 | 0 |
3 Months Ended 3/31/2019 | 21 | 0 | 0 | 0 |
0.00% – 0.49% | 0.50% – 0.99% | 1.00% – 1.99% | >=2.00% | |
12 Months Ended 12/31/2018 | 171 | 4 | 0 | 0 |
3 Months Ended 3/31/2019 | 30 | 0 | 0 | 0 |
0.00% – 0.49% | 0.50% – 0.99% | 1.00% – 1.99% | >=2.00% | |
12 Months Ended 12/31/2018 | 74 | 2 | 0 | 0 |
3 Months Ended 3/31/2019 | 31 | 0 | 0 | 0 |
0.00% – 0.49% | 0.50% – 0.99% | 1.00% – 1.99% | >=2.00% | |
Period Ended 12/31/2018 | 91 | 2 | 0 | 0 |
3 Months Ended 3/31/2019 | 61 | 0 | 0 | 0 |
0.00% – 0.49% | 0.50% – 0.99% | 1.00% – 1.99% | >=2.00% | |
Period Ended 12/31/2018 | 15 | 1 | 0 | 0 |
3 Months Ended 3/31/2019 | 0 | 0 | 0 | 0 |
0.00% – 0.49% | 0.50% – 0.99% | 1.00% – 1.99% | >=2.00% | |
12 Months Ended 12/31/2018 | 168 | 2 | 0 | 0 |
3 Months Ended 3/31/2019 | 37 | 0 | 0 | 0 |
0.00% – 0.49% | 0.50% – 0.99% | 1.00% – 1.99% | >=2.00% | |
12 Months Ended 12/31/2018 | 79 | 1 | 1 | 0 |
3 Months Ended 3/31/2019 | 24 | 0 | 0 | 0 |
Average Annual | Cumulative | |||||
1 Year | 5 Years |
Inception
(8/29/2012) |
5 Years |
Inception
(8/29/2012) |
||
Fund Performance | ||||||
Net Asset Value | -8.26% | 4.01% | 5.79% | 21.74% | 42.89% | |
Market Price | -8.29% | 4.01% | 5.81% | 21.72% | 43.05% | |
Index Performance | ||||||
Nasdaq Dorsey Wright Peoples Portfolio Index (1) | -7.76% | N/A | N/A | N/A | N/A | |
S&P 500 ® Index | -4.38% | 8.49% | 11.80% | 50.33% | 102.85% | |
Nasdaq US 500 Large Cap Index | -4.75% | N/A | N/A | N/A | N/A |
(1) | On August 18, 2017, the Fund's underlying index changed from the CBOE ® VIX ® Tail Hedge Index to the Nasdaq Dorsey Wright People's Portfolio Index. Therefore, the Fund’s performance and total returns shown for the periods prior to August 8, 2017, are not necessarily indicative of the performance the Fund, based on its current index, would have generated. Since the current index had an inception date of July 24, 2017, it was not in existence for all the periods disclosed. |
Cumulative | |
Inception
(7/25/2018) |
|
Fund Performance | |
Net Asset Value | -12.09% |
Market Price | -12.10% |
Index Performance | |
Lunt Capital Large Cap Factor Rotation Index | -11.87% |
Nasdaq US 500 Large Cap Index | -11.31% |
Average Annual | Cumulative | |||||||
1 Year | 5 Years | 10 Years |
Inception
(12/5/2006) |
5 Years | 10 Years |
Inception
(12/5/2006) |
||
Fund Performance | ||||||||
Net Asset Value | -10.13% | 3.59% | 9.77% | 4.48% | 19.28% | 153.95% | 69.66% | |
Market Price | -10.24% | 3.58% | 9.98% | 4.47% | 19.24% | 158.84% | 69.63% | |
Index Performance | ||||||||
NASDAQ AlphaDEX ® Total US Market Index (1) | -9.55% | N/A | N/A | N/A | N/A | N/A | N/A | |
Russell 3000 ® Index | -5.24% | 7.91% | 13.18% | 7.05% | 46.34% | 244.95% | 127.56% |
(1) | On January 9, 2015, the Fund’s underlying index changed from the Value Line ® Equity Allocation Index to the NASDAQ AlphaDEX ® Total US Market Index. Therefore, the Fund’s performance and total returns shown for the periods prior to January 9, 2015, are not necessarily indicative of the performance the Fund, based on its current index, would have generated. Since the Fund’s current underlying index had an inception date of September 8, 2014, it was not in existence for all of the periods disclosed. |
Year Ended December 31, | |||||
2018 | 2017 | 2016 | 2015 | 2014 | |
Net asset value, beginning of period | $ 28.64 | $ 23.80 | $24.07 | $25.97 | $22.86 |
Income from investment operations: | |||||
Net investment income (loss) | 0.33 | 0.30 | 0.38 | 0.37 | 0.34 |
Net realized and unrealized gain (loss) | (2.67) | 4.84 | (0.25) | (1.89) | 3.11 |
Total from investment operations | (2.34) | 5.14 | 0.13 | (1.52) | 3.45 |
Distributions paid to shareholders from: | |||||
Net investment income | (0.34) | (0.30) | (0.40) | (0.38) | (0.34) |
Net asset value, end of period | $ 25.96 | $ 28.64 | $23.80 | $24.07 | $25.97 |
Total Return (a) | (8.26)% | 21.71% | 0.54% | (5.88)% | 15.22% |
Ratios/supplemental data: | |||||
Net assets, end of period (in 000’s) | $35,042 | $30,072 | $3,569 | $3,610 | $3,895 |
Ratios to average net assets: | |||||
Ratio of total expenses to average net assets | 0.60% | 0.60% | 0.60% | 0.60% | 0.60% |
Ratio of net expenses to average net assets | 0.60% | 0.60% | 0.60% | 0.60% | 0.60% |
Ratio of net investment income (loss) to average net assets | 1.19% | 1.29% | 1.59% | 1.46% | 1.42% |
Portfolio turnover rate (b) | 32% | 30% (c) | 4% | 7% | 7% |
(a) | Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is calculated for the time period presented and is not annualized for periods of less than a year. |
(b) | Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities received or delivered from processing creations or redemptions and in-kind transactions. |
(c) | The variation in the portfolio turnover rate is due to the change in the Fund’s underlying index effective August 18, 2017, which resulted in a complete rebalance of the Fund’s portfolio. |
Year Ended
12/31/2018 |
Period Ended
12/31/2017 (a) |
|
Net asset value, beginning of period | $ 22.00 | $ 19.97 |
Income from investment operations: | ||
Net investment income (loss) | 0.40 | 0.17 |
Net realized and unrealized gain (loss) | (0.58) | 2.03 |
Total from investment operations | (0.18) | 2.20 |
Distributions paid to shareholders from: | ||
Net investment income | (0.39) | (0.17) |
Net asset value, end of period | $ 21.43 | $ 22.00 |
Total Return (b) | (0.88)% | 11.02% |
Ratios/supplemental data: | ||
Net assets, end of period (in 000’s) | $12,859 | $ 2,200 |
Ratios to average net assets: | ||
Ratio of total expenses to average net assets | 0.50% | 0.50% (c) |
Ratio of net expenses to average net assets | 0.50% | 0.50% (c) |
Ratio of net investment income (loss) to average net assets | 2.33% | 1.99% (c) |
Portfolio turnover rate (d) | 16% | 20% |
(a) | Inception date is August 8, 2017, which is consistent with the commencement of investment operations and is the date the initial creation units were established. |
(b) | Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The return presented does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is calculated for the time period presented and is not annualized for periods of less than a year. |
(c) | Annualized. |
(d) | Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities received or delivered from processing creations or redemptions and in-kind transactions. |
Period Ended
12/31/2018 (a) |
|
Net asset value, beginning of period | $ 20.23 |
Income from investment operations: | |
Net investment income (loss) | 0.12 |
Net realized and unrealized gain (loss) | (2.56) |
Total from investment operations | (2.44) |
Distributions paid to shareholders from: | |
Net investment income | (0.12) |
Net asset value, end of period | $ 17.67 |
Total Return (b) | (12.09)% |
Ratios/supplemental data: | |
Net assets, end of period (in 000’s) | $28,269 |
Ratios to average net assets: | |
Ratio of total expenses to average net assets | 0.65% (c) |
Ratio of net expenses to average net assets | 0.65% (c) |
Ratio of net investment income (loss) to average net assets | 1.48% (c) |
Portfolio turnover rate (d) | 183% |
(a) | Inception date is July 25, 2018, which is consistent with the commencement of investment operations and is the date the initial creation units were established. |
(b) | Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The return presented does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is calculated for the time period presented and is not annualized for periods of less than a year. |
(c) | Annualized. |
(d) | Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities received or delivered from processing creations or redemptions and in-kind transactions. |
Year Ended December 31, | |||||
2018 | 2017 | 2016 | 2015 | 2014 | |
Net asset value, beginning of period | $ 32.85 | $ 27.74 | $24.34 | $26.13 | $25.80 |
Income from investment operations: | |||||
Net investment income (loss) | 0.34 | 0.25 | 0.32 | 0.22 | 0.27 |
Net realized and unrealized gain (loss) | (3.64) | 5.12 | 3.43 | (1.78) | 0.34 |
Total from investment operations | (3.30) | 5.37 | 3.75 | (1.56) | 0.61 |
Distributions paid to shareholders from: | |||||
Net investment income | (0.33) | (0.26) | (0.35) | (0.23) | (0.28) |
Net asset value, end of period | $ 29.22 | $ 32.85 | $27.74 | $24.34 | $26.13 |
Total Return (a) | (10.13)% | 19.44% | 15.48% | (5.99)% | 2.36% |
Ratios/supplemental data: | |||||
Net assets, end of period (in 000’s) | $13,151 | $14,783 | $8,321 | $8,518 | $5,225 |
Ratios to average net assets: | |||||
Ratio of total expenses to average net assets | 1.57% | 1.69% | 1.96% | 1.97% | 3.17% |
Ratio of net expenses to average net assets | 0.70% | 0.70% | 0.70% | 0.70% | 0.70% |
Ratio of net investment income (loss) to average net assets | 1.03% | 0.88% | 1.17% | 0.96% | 1.05% |
Portfolio turnover rate (b) | 110% | 112% | 113% | 170% | 183% |
(a) | Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is calculated for the time period presented and is not annualized for periods of less than a year. The total returns for the Fund would have been lower if certain fees had not been waived and expenses reimbursed by the investment advisor. |
(b) | Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities received or delivered from processing creations or redemptions and in-kind transactions. |
First Trust
Exchange-Traded Fund |
FUND NAME | TICKER SYMBOL | EXCHANGE | ||
First Trust Capital Strength ETF | FTCS | Nasdaq | ||
First Trust Dow Jones Internet Index Fund | FDN | NYSE Arca | ||
First Trust Dow Jones Select MicroCap Index Fund | FDM | NYSE Arca | ||
First Trust Chindia ETF | FNI | NYSE Arca | ||
First Trust Natural Gas ETF | FCG | NYSE Arca | ||
First Trust Water ETF | FIW | NYSE Arca | ||
First Trust Morningstar Dividend Leaders Index Fund | FDL | NYSE Arca | ||
First Trust NASDAQ-100 Equal Weighted Index Fund | QQEW | Nasdaq | ||
First Trust NASDAQ-100 Ex-Technology Sector Index Fund | QQXT | Nasdaq | ||
First Trust NASDAQ-100-Technology Sector Index Fund | QTEC | Nasdaq | ||
First Trust NASDAQ ® ABA Community Bank Index Fund | QABA | Nasdaq | ||
First Trust NASDAQ ® Clean Edge ® Green Energy Index Fund | QCLN | Nasdaq | ||
First Trust NYSE Arca Biotechnology Index Fund | FBT | NYSE Arca | ||
First Trust S&P REIT Index Fund | FRI | NYSE Arca | ||
First Trust US Equity Opportunities ETF | FPX | NYSE Arca | ||
First Trust Value Line ® 100 Exchange-Traded Fund | FVL | NYSE Arca | ||
First Trust Value Line ® Dividend Index Fund | FVD | NYSE Arca |
|
1 |
|
3 |
|
4 |
|
5 |
|
13 |
|
14 |
|
17 |
|
28 |
|
29 |
|
38 |
|
39 |
|
43 |
|
43 |
|
50 |
|
55 |
|
56 |
|
57 |
|
57 |
|
A-1 |
|
B-1 |
Fund Name | Classification |
First Trust Capital Strength ETF | Diversified |
First Trust Chindia ETF | Non-Diversified |
First Trust Dow Jones Internet Index Fund | Non-Diversified |
First Trust Dow Jones Select MicroCap Index Fund | Diversified |
First Trust Morningstar Dividend Leaders Index Fund | Non-Diversified |
First Trust NASDAQ-100 Equal Weighted Index Fund | Diversified |
First Trust NASDAQ-100 Ex-Technology Sector Index Fund | Diversified |
First Trust NASDAQ-100-Technology Sector Index Fund | Diversified |
First Trust NASDAQ ® ABA Community Bank Index Fund | Diversified |
First Trust NASDAQ ® Clean Edge ® Green Energy Index Fund | Non-Diversified |
First Trust Natural Gas ETF | Diversified |
First Trust NYSE Arca Biotechnology Index Fund | Diversified |
First Trust S&P REIT Index Fund | Diversified |
First Trust US Equity Opportunities ETF | Non-Diversified |
First Trust Value Line ® 100 Exchange-Traded Fund | Diversified |
First Trust Value Line ® Dividend Index Fund | Diversified |
First Trust Water Index ETF | Diversified |
(1) | A Fund may not issue senior securities, except as permitted under the 1940 Act. |
(2) | A Fund may not borrow money, except that a Fund may (i) borrow money from banks for temporary or emergency purposes (but not for leverage or the purchase of investments) and (ii) engage in other transactions permissible under the 1940 Act that may involve a borrowing (such as obtaining short-term credits as are necessary for the clearance of transactions, engaging in delayed-delivery transactions, or purchasing certain futures, forward contracts and options), provided that the combination of (i) and (ii) shall not exceed 33⅓% of the value of a Fund's total assets (including the amount borrowed), less a Fund's liabilities (other than borrowings). |
(3) | A Fund will not underwrite the securities of other issuers except to the extent a Fund may be considered an underwriter under the Securities Act of 1933, as amended (the “1933 Act” ), in connection with the purchase and sale of portfolio securities. |
(4) | A Fund will not purchase or sell real estate or interests therein, unless acquired as a result of ownership of securities or other instruments (but this shall not prohibit a Fund from purchasing or selling securities or other instruments backed by real estate or of issuers engaged in real estate activities). |
(5) | A Fund may not make loans to other persons, except through (i) the purchase of debt securities permissible under a Fund's investment policies, (ii) repurchase agreements, or (iii) the lending of portfolio securities, provided that no such loan of portfolio securities may be made by a Fund if, as a result, the aggregate of such loans would exceed 33⅓% of the value of a Fund's total assets. |
(6) | A Fund may not purchase or sell physical commodities unless acquired as a result of ownership of securities or other instruments (but this shall not prevent a Fund from purchasing or selling options, futures contracts, forward contracts or other derivative instruments, or from investing in securities or other instruments backed by physical commodities). |
(7) | A Fund may not invest 25% or more of the value of its total assets in securities of issuers in any one industry or group of industries, except to the extent that the Fund’s Index is based on concentrations in an industry or a group of industries. This restriction does not apply to obligations issued or guaranteed by the U.S. government, its agencies or instrumentalities. |
(8) | The First Trust Capital Strength ETF, First Trust Dow Jones Select MicroCap Index Fund, First Trust Natural Gas ETF, First Trust Water ETF, First Trust NASDAQ-100 Equal Weighted Index Fund, First Trust NASDAQ-100 Ex-Technology Sector Index Fund, First Trust NASDAQ-100 Technology Sector Index Fund, First Trust NASDAQ ® ABA Community Bank Index Fund, First Trust S&P REIT Index Fund, First Trust Value Line ® 100 Exchange-Traded Fund and First Trust Value Line ® Dividend Index Fund are subject to the following fundamental policy: each such Fund, may not, as to 75% of its total assets, purchase the securities of any issuer (except securities of other investment companies or securities issued or guaranteed by the United States government or any agency or instrumentality thereof) if, as a result, (i) more than 5% of the Fund's total assets would be invested in securities of that issuer; or (ii) the Fund would hold more than 10% of the outstanding voting securities of that issuer. |
(1) | On June 18, 2010, the Fund’s Index changed from the Deutsche Bank CROCI ® US + Index TM to the Credit Suisse U.S. Value Index, Powered by HOLT TM . On June 4, 2013, the Fund’s Index changed from the Credit Suisse U.S. Value Index, Powered by HOLT TM to The Capital Strength Index SM . |
(2) | Prior to June 19, 2017, the First Trust Water ETF’s Index was the ISE Water TM Index. |
(3) | Prior to November 6, 2008, the First Trust S&P REIT Fund’s Index was the S&P REIT Composite Index. |
(1) | A Fund may invest in U.S. government securities, including bills, notes and bonds differing as to maturity and rates of interest, which are either issued or guaranteed by the U.S. Treasury or by U.S. government agencies or instrumentalities. U.S. government securities include securities that are issued or guaranteed by the U.S. Treasury, by various agencies of the U.S. government, or by various instrumentalities that have been established or sponsored by the U.S. government. U.S. Treasury securities are backed by the “full faith and credit” of the United States. Securities issued or guaranteed by federal agencies and U.S. government-sponsored instrumentalities may or may not be backed by the full faith and credit of the United States. Some of the U.S. government agencies that issue or guarantee securities include the Export-Import Bank of the United States, the Farmers Home Administration, the Federal Housing Administration, the Maritime Administration, the Small Business Administration and The Tennessee Valley Authority. An instrumentality of the U.S. government is a government agency organized under federal charter with government supervision. Instrumentalities issuing or guaranteeing securities include, among others, the Federal Home Loan Banks, the Federal Land Banks, the Central Bank for Cooperatives, Federal Intermediate Credit Banks and the Federal National Mortgage Association ( “Fannie Mae” ). In the case of those U.S. government securities not backed by the full faith and credit of the United States, the investor must look principally to the agency or instrumentality issuing or guaranteeing the security for ultimate repayment and may not be able to assert a claim against the United States itself in the event that the agency or instrumentality does not meet its commitment. The U.S. government, its agencies and instrumentalities do not guarantee the market value of their securities; consequently, the value of such securities may fluctuate. |
(2) | A Fund may invest in certificates of deposit issued against funds deposited in a bank or savings and loan association. Such certificates are for a definite period of time, earn a specified rate of return and are normally negotiable. If such certificates of deposit are non-negotiable, they will be considered illiquid securities and be subject to a Fund's 15% restriction on investments in illiquid securities. Pursuant to the certificate of deposit, the issuer agrees to pay the amount deposited plus interest to the bearer of the certificate on the date specified thereon. Under current FDIC regulations, the maximum insurance payable as to any one certificate of deposit is $250,000; therefore, certificates of deposit purchased by a Fund may not be fully insured. A Fund may only invest in certificates of deposit issued by U.S. banks with at least $1 billion in assets. |
(3) | A Fund may invest in bankers’ acceptances, which are short-term credit instruments used to finance commercial transactions. Generally, an acceptance is a time draft drawn on a bank by an exporter or an importer to obtain a stated amount of funds to pay for specific merchandise. The draft is then “accepted” by a bank that, in effect, unconditionally guarantees to pay the face value of the instrument on its maturity date. The acceptance may then be held by the accepting bank as an asset or it may be sold in the secondary market at the going rate of interest for a specific maturity. |
(4) | A Fund may invest in repurchase agreements, which involve purchases of debt securities with counterparties that are deemed by the Advisor to present acceptable credit risks. In such an action, at the time a Fund purchases the security, it simultaneously agrees to resell and redeliver the security to the seller, who also simultaneously agrees to buy back the security at a fixed price and time. This assures a predetermined yield for a Fund during its holding period since the resale price is always greater than the purchase price and reflects an agreed-upon market rate. Such actions afford an opportunity for a Fund to invest temporarily available cash. A Fund may enter into repurchase agreements only with respect to obligations of the U.S. government, its agencies or instrumentalities, certificates of deposit or bankers’ acceptances in which a Fund may invest. Repurchase agreements may be considered loans to the seller, collateralized by the underlying securities. The risk to a Fund is limited to the ability of the seller to pay the agreed-upon sum on the repurchase date; in the event of default, the repurchase agreement provides that the affected Fund is entitled to sell the underlying collateral. If the value of the collateral declines after the agreement is entered into, however, and if the seller defaults under a repurchase agreement when the value of the underlying collateral is less than the repurchase price, a Fund could incur a loss of both principal and interest. The portfolio managers monitor the value of the collateral at the time the action is entered into and at all times during the term of the repurchase agreement. The portfolio managers do so in an effort to determine that the value of the collateral always equals or exceeds the agreed-upon repurchase price to be paid to a Fund. If the seller were to be subject to a federal bankruptcy proceeding, the ability of a Fund to liquidate the collateral could be delayed or impaired because of certain provisions of the bankruptcy laws. |
(5) | A Fund may invest in bank time deposits, which are monies kept on deposit with banks or savings and loan associations for a stated period of time at a fixed rate of interest. There may be penalties for the early withdrawal of such time deposits, in which case the yields of these investments will be reduced. |
(6) | A Fund may invest in commercial paper, which are short-term unsecured promissory notes, including variable rate master demand notes issued by corporations to finance their current operations. Master demand notes are direct lending arrangements between the Fund and a corporation. There is no secondary market for the notes. However, they are redeemable by a Fund at any time. A Fund's portfolio managers will consider the financial condition of the corporation ( e.g. , earning power, cash flow and other liquidity ratios) and will continuously monitor the corporation’s ability to meet all of its financial obligations, because a Fund's liquidity might be impaired if the corporation were unable to pay principal and interest on demand. A Fund may invest in commercial paper rated at the day of purchase “Prime-1” by Moody’s Investors Service, Inc. or “A-1+” or “A-1” by Standard & Poor’s Ratings Group, Inc., or, if unrated, of comparable quality as determined by First Trust. |
(7) | A Fund may invest in shares of money market funds, as consistent with its investment objectives and policies. Shares of money market funds are subject to management fees and other expenses of those funds. Therefore, investments in money market funds will cause the Fund to bear proportionately the costs incurred by the money market funds’ operations. At the same time, a Fund will continue to pay its own management fees and expenses with respect to all of its assets, including any portion invested in the shares of other investment companies. It is possible for the Fund to lose money by investing in money market funds. |
Portfolio Turnover Rate
|
||
Fund | Fiscal Year Ended December 31, | |
2018 | 2017 | |
First Trust Capital Strength ETF | 117% | 85% |
First Trust Chindia ETF | 22% | 35% |
First Trust Dow Jones Internet Index Fund | 21% | 22% |
First Trust Dow Jones Select MicroCap Index Fund | 75% | 55% |
First Trust Morningstar Dividend Leaders Index Fund | 39% | 43% |
First Trust NASDAQ ® ABA Community Bank Index Fund | 11% | 14% |
First Trust NASDAQ ® Clean Edge ® Green Energy Index Fund | 45% | 32% |
First Trust NASDAQ-100 Equal Weighted Index Fund | 27% | 26% |
First Trust NASDAQ-100 Ex-Technology Sector Index Fund | 26% | 25% |
First Trust NASDAQ-100-Technology Sector Index Fund | 21% | 21% |
First Trust Natural Gas ETF | 47% | 53% |
First Trust NYSE Arca Biotechnology Index Fund | 37% | 36% |
First Trust S&P REIT Index Fund | 10% | 7% |
First Trust US Equity Opportunities ETF | 57% | 31% |
First Trust Value Line ® 100 Exchange-Traded Fund | 424% | 466% |
First Trust Value Line ® Dividend Index Fund | 58% | 50% |
First Trust Water ETF | 11% | 24% |
Name and
Year of Birth |
Position
and Offices with Trust |
Term of
Office and Year First Elected or Appointed |
Principal Occupations
During Past 5 Years |
Number of
Portfolios in the First Trust Fund Complex Overseen by Trustee |
Other
Trusteeships or Directorships Held by Trustee During the Past 5 Years |
TRUSTEE WHO IS AN INTERESTED PERSON OF THE TRUST | |||||
James A. Bowen
(1)
1955 |
Chairman of the Board and Trustee |
• Indefinite term
• Since inception |
Chief Executive Officer, First Trust Advisors L.P. and First Trust Portfolios L.P.; Chairman of the Board of Directors, BondWave LLC (Software Development Company) and Stonebridge Advisors LLC (Investment Advisor) | 163 Portfolios | None |
INDEPENDENT TRUSTEES | |||||
Richard E. Erickson
1951 |
Trustee |
• Indefinite term
• Since inception |
Physician; Officer, Wheaton Orthopedics; Limited Partner, Gundersen Real Estate Limited Partnership (June 1992 to December 2016); Member, Sportsmed LLC (April 2007 to November 2015) | 163 Portfolios | None |
Thomas R. Kadlec
1957 |
Trustee |
• Indefinite term
• Since inception |
President, ADM Investor Services, Inc. (Futures Commission Merchant) | 163 Portfolios | Director of ADM Investor Services, Inc., ADM Investor Services International, Futures Industry Association, and National Futures Association |
Robert F. Keith
1956 |
Trustee |
• Indefinite term
• Since inception |
President, Hibs Enterprises (Financial and Management Consulting) | 163 Portfolios | Director of Trust Company of Illinois |
Niel B. Nielson
1954 |
Trustee |
• Indefinite term
• Since inception |
Senior Advisor (August 2018 to present), Managing Director and Chief Operating Officer (January 2015 to August 2018), Pelita Harapan Educational Foundation (Educational Products and Services); President and Chief Executive Officer (June 2012 to September 2014), Servant Interactive LLC (Educational Products and Services); President and Chief Executive Officer (June 2012 to September 2014), Dew Learning LLC (Educational Products and Services) | 163 Portfolios |
Director of Covenant Transport, Inc.
(May 2003 to May 2014) |
Name and
Year of Birth |
Position and
Offices with Trust |
Term of Office and
Length of Service |
Principal Occupations
During Past 5 Years |
OFFICERS OF THE TRUST | |||
James M. Dykas
1966 |
President and Chief Executive Officer |
• Indefinite term
• Since January 2016 |
Managing Director and Chief Financial Officer (January 2016 to present), Controller (January 2011 to January 2016), Senior Vice President (April 2007 to January 2016), First Trust Advisors L.P. and First Trust Portfolios L.P.; Chief Financial Officer (January 2016 to present), BondWave LLC (Software Development Company) and Stonebridge Advisors LLC (Investment Advisor) |
W. Scott Jardine
1960 |
Secretary and Chief Legal Officer |
• Indefinite term
• Since inception |
General Counsel, First Trust Advisors L.P. and First Trust Portfolios L.P.; Secretary and General Counsel, BondWave LLC; and Secretary, Stonebridge Advisors LLC |
Daniel J. Lindquist
1970 |
Vice President |
• Indefinite term
• Since inception |
Managing Director, First Trust Advisors L.P. and First Trust Portfolios L.P. |
Kristi A. Maher
1966 |
Chief Compliance Officer and Assistant Secretary |
• Indefinite term
• Chief Compliance Officer since January 2011, Assistant Secretary since inception |
Deputy General Counsel, First Trust Advisors L.P. and First Trust Portfolios L.P. |
Donald P. Swade
1972 |
Treasurer, Chief Financial Officer and Chief Accounting Officer |
• Indefinite term
• Since January 2016 |
Senior Vice President (July 2016 to Present), Vice President (April 2012 to July 2016), First Trust Advisors L.P. and First Trust Portfolios L.P. |
Roger F. Testin
1966 |
Vice President |
• Indefinite term
• Since inception |
Senior Vice President, First Trust Advisors L.P. and First Trust Portfolios L.P. |
Stan Ueland
1970 |
Vice President |
• Indefinite term
• Since inception |
Senior Vice President, First Trust Advisors L.P. and First Trust Portfolios L.P. |
(1) | Mr. Bowen is deemed an “interested person” of the Trust due to his position as Chief Executive Officer of First Trust, investment advisor of the Funds. |
Name of Trustee |
Total Compensation
from the Funds (1) |
Total Compensation
from the First Trust Fund Complex (2) |
Richard E. Erickson | $39,322 | $424,711 |
Thomas R. Kadlec | $35,868 | $413,499 |
Robert F. Keith | $36,185 | $414,497 |
Niel B. Nielson | $32,753 | $403,375 |
(1) | The compensation paid by the Funds to the Independent Trustees for the fiscal year ended December 31, 2018 for services to the Funds. |
(2) | The total compensation paid to the Independent Trustees for the calendar year ended December 31, 2018 for services to the 161 portfolios existing in 2018, which consisted of 7 open-end mutual funds, 15 closed-end funds and 139 exchange-traded funds. |
Interested Trustee | Independent Trustees | ||||
Fund | James A. Bowen | Richard E. Erickson | Thomas R. Kadlec | Robert F. Keith | Niel B. Nielson |
Aggregate Dollar
Range of Equity Securities in All Registered Investment Companies Overseen by Trustee in the First Trust Fund Complex |
Over $100,000 | Over $100,000 | Over $100,000 | Over $100,000 | Over $100,000 |
Fund | Annual Management Fee | Annual Expense Cap |
First Trust Capital Strength ETF | 0.50% of average daily net assets | 0.65% of average daily net assets |
First Trust Dow Jones Internet Index Fund | 0.40% of average daily net assets | 0.60% of average daily net assets |
First Trust Dow Jones Select MicroCap Index Fund | 0.50% of average daily net assets | 0.60% of average daily net assets |
First Trust Chindia ETF | 0.40% of average daily net assets | 0.60% of average daily net assets |
First Trust Natural Gas ETF | 0.40% of average daily net assets | 0.60% of average daily net assets |
First Trust Water ETF | 0.40% of average daily net assets | 0.60% of average daily net assets |
First Trust Morningstar Dividend Leaders Index Fund | 0.30% of average daily net assets | 0.45% of average daily net assets |
First Trust NASDAQ-100 Equal Weighted Index Fund | 0.40% of average daily net assets | 0.60% of average daily net assets |
First Trust NASDAQ-100 Ex-Technology Sector Index Fund | 0.40% of average daily net assets | 0.60% of average daily net assets |
First Trust NASDAQ-100-Technology Sector Index Fund | 0.40% of average daily net assets | 0.60% of average daily net assets |
First Trust NASDAQ ® ABA Community Bank Index Fund | 0.40% of average daily net assets | 0.60% of average daily net assets |
First Trust NASDAQ ® Clean Edge ® Green Energy Index Fund | 0.40% of average daily net assets | 0.60% of average daily net assets |
First Trust NYSE Arca Biotechnology Index Fund | 0.40% of average daily net assets | 0.60% of average daily net assets |
First Trust S&P REIT Index Fund | 0.30% of average daily net assets | 0.50% of average daily net assets |
First Trust US Equity Opportunities ETF | 0.40% of average daily net assets | 0.60% of average daily net assets |
First Trust Value Line ® 100 Exchange-Traded Fund | 0.50% of average daily net assets | 0.70% of average daily net assets |
First Trust Value Line ® Dividend Index Fund | 0.50% of average daily net assets | 0.70% of average daily net assets |
Amount of Management Fees
(Net of Fee Waivers and Expense Reimbursements by First Trust) |
Amount of Fees Waived and Expenses Reimbursed By First Trust
|
|||||
Fund | Fiscal Year Ended December 31, | Fiscal Year Ended December 31, | ||||
2018 | 2017 | 2016 | 2018 | 2017 | 2016 | |
First Trust Capital Strength ETF | $ 4,943,539 | $ 2,243,567 | $ 1,140,317 | $ 0 | $ 0 | $ 0 |
First Trust Chindia ETF | $ 1,392,775 | $ 1,064,847 | $ 666,867 | $ 0 | $ 0 | $ 5,970 |
First Trust Dow Jones Internet Index Fund | $31,572,428 | $17,968,978 | $13,531,765 | $ 0 | $ 0 | $ 0 |
First Trust Dow Jones Select MicroCap Index Fund | $ 455,027 | $ 358,008 | $ 184,865 | $162,786 | $ 97,709 | $ 76,424 |
First Trust Morningstar Dividend Leaders Index Fund | $ 4,258,245 | $ 4,896,264 | $ 4,042,683 | $256,355 | $289,110 | $390,779 |
Amount of Management Fees
(Net of Fee Waivers and Expense Reimbursements by First Trust) |
Amount of Fees Waived and Expenses Reimbursed By First Trust
|
|||||
Fund | Fiscal Year Ended December 31, | Fiscal Year Ended December 31, | ||||
2018 | 2017 | 2016 | 2018 | 2017 | 2016 | |
First Trust NASDAQ ® ABA Community Bank Index Fund | $ 1,388,067 | $ 1,518,412 | $ 765,040 | $ 0 | $ 0 | $ 21,616 |
First Trust NASDAQ ® Clean Edge ® Green Energy Index Fund | $ 327,529 | $ 237,585 | $ 186,363 | $ 43,615 | $ 39,255 | $ 44,163 |
First Trust NASDAQ-100 Equal Weighted Index Fund | $ 2,180,073 | $ 2,022,220 | $1,534,093 | $ 0 | $ 0 | $ 37,048 |
First Trust NASDAQ-100 Ex-Technology Sector Index Fund | $ 339,351 | $ 373,174 | $ 500,554 | $ 35,900 | $ 26,900 | $ 49,128 |
First Trust NASDAQ-100-Technology Sector Index Fund | $ 9,748,449 | $ 8,072,484 | $1,829,117 | $ 0 | $ 0 | $ 0 |
First Trust Natural Gas ETF | $ 538,581 | $ 708,549 | $ 802,135 | $ 39,782 | $ 25,164 | $ 54,736 |
First Trust NYSE Arca Biotechnology Index Fund | $ 7,821,079 | $ 4,118,135 | $4,211,383 | $ 0 | $ 0 | $ 0 |
First Trust S&P REIT Index Fund | $ 316,973 | $ 627,677 | $ 859,967 | $ 25,848 | $ 0 | $ 0 |
First Trust US Equity Opportunities ETF | $ 4,422,222 | $ 3,210,829 | $2,373,228 | $ 0 | $ 0 | $ 0 |
First Trust Value Line ® 100 Exchange-Traded Fund | $ 159,484 | $ 186,077 | $ 165,296 | $ 94,969 | $ 82,527 | $ 85,239 |
First Trust Value Line ® Dividend Index Fund | $20,450,678 | $17,401,317 | $9,414,479 | $768,292 | $816,754 | $679,825 |
First Trust Water ETF | $ 1,273,325 | $ 1,009,560 | $ 554,255 | $ 0 | $ 0 | $ 0 |
Name |
Position with
First Trust |
Length of Service
with First Trust |
Principal Occupation During Past Five Years |
Daniel J. Lindquist |
Chairman of the
Investment Committee and Managing Director |
Since 2004 |
Managing Director (2012 to present), Senior Vice
President (2005 to 2012), First Trust Advisors L.P. and First Trust Portfolios L.P. |
Jon C. Erickson | Senior Vice President | Since 1994 |
Senior Vice President, First Trust Advisors L.P. and
First Trust Portfolios L.P. |
David G. McGarel |
Chief Operating Officer
Chief Investment Officer and Managing Director |
Since 1997 |
Chief Operating Officer (2016 to present),
Chief Investment Officer (2012 to present), Managing Director (2012 to present), Senior Vice President (2005 to 2012), First Trust Advisors L.P. and First Trust Portfolios L.P. |
Roger F. Testin | Senior Vice President | Since 2001 |
Senior Vice President, First Trust Advisors L.P. and
First Trust Portfolios L.P. |
Stan Ueland | Senior Vice President | Since 2005 |
Senior Vice President (2012 to present), Vice
President (2005 to 2012), First Trust Advisors L.P. and First Trust Portfolios L.P. |
Chris A. Peterson | Senior Vice President | Since 2000 |
Senior Vice President, First Trust Advisors L.P. and
First Trust Portfolios L.P. |
Investment Committee | ||||||
Fund | Dan Lindquist | Jon C. Erickson | David G. McGarel | Roger F. Testin | Stan Ueland | Chris A. Peterson |
First Trust Capital Strength ETF | $10,001-$50,000 | N/A | $1-$10,000 | N/A | N/A | N/A |
First Trust Dow Jones Internet Index Fund | N/A | N/A | N/A | N/A | $10,001-$50,000 | N/A |
First Trust NASDAQ-100-
Technology Sector Index Fund |
N/A | N/A | $10,001-$50,000 | N/A | N/A | N/A |
First Trust NASDAQ ® ABA Community Bank Index Fund | $1-$10,000 | N/A | $10,001-$50,000 | N/A | N/A | N/A |
Investment Committee | ||||||
Fund | Dan Lindquist | Jon C. Erickson | David G. McGarel | Roger F. Testin | Stan Ueland | Chris A. Peterson |
First Trust NYSE Arca Biotechnology
Index Fund |
$10,001-$50,000 | N/A | N/A | N/A | $10,001-$50,000 | N/A |
First Trust S&P REIT
Index Fund |
$1-10,000 | N/A | N/A | N/A | N/A | N/A |
First Trust
US Equity Opportunities ETF |
$10,001-$50,000 | N/A | N/A | N/A | $1-$10,000 | N/A |
First Trust Value Line
®
100 Exchange-
Traded Fund |
N/A | N/A | N/A | $1-$10,000 | N/A | N/A |
First Trust Value Line ® Dividend Index Fund | N/A | N/A | Over $100,000 | $1-$10,000 | $10,001-$50,000 | N/A |
Investment Committee Member |
Registered
Investment Companies Number of Accounts ($ Assets) |
Other Pooled
Investment Vehicles Number of Accounts ($ Assets) |
Other Accounts
Number of Accounts ($ Assets) |
Dan Lindquist | 94 ($21,145,281,107) | 35 ($908,976,367) | 1,624 ($491,474,369) |
David McGarel | 94 ($21,145,281,107) | 35 ($908,976,367) | 1,624 ($491,474,369) |
Jon Erickson | 94 ($21,145,281,107) | 35 ($908,976,367) | 1,624 ($491,474,369) |
Roger Testin | 94 ($21,145,281,107) | 35 ($908,976,367) | 1,624 ($491,474,369) |
Stan Ueland | 88 ($20,217,942,445) | 34 ($858,519,342) | N/A |
Chris Peterson | 94 ($21,145,281,107) | 15 ($659,340,115) | 1,624 ($491,474,369) |
Fund Administration and Accounting
|
|||
Fund | Fiscal Year Ended December 31, | ||
2018 | 2017 | 2016 | |
First Trust Capital Strength ETF | $ 486,853 | $ 224,857 | $ 113,397 |
First Trust Chindia ETF | $ 175,985 | $ 134,266 | $ 80,990 |
First Trust Dow Jones Internet Index Fund | $2,502,288 | $1,693,619 | $1,322,923 |
First Trust Dow Jones Select MicroCap Index Fund | $ 68,201 | $ 48,683 | $ 28,233 |
First Trust Morningstar Dividend Leaders Index Fund | $ 703,443 | $ 791,718 | $ 677,402 |
First Trust NASDAQ ® ABA Community Bank Index Fund | $ 176,410 | $ 189,181 | $ 98,395 |
First Trust NASDAQ ® Clean Edge ® Green Energy Index Fund | $ 48,003 | $ 35,428 | $ 28,846 |
First Trust NASDAQ-100 Equal Weighted Index Fund | $ 273,988 | $ 253,099 | $ 187,948 |
First Trust NASDAQ-100 Ex-Technology Sector Index Fund | $ 48,281 | $ 49,721 | $ 67,491 |
First Trust NASDAQ-100-Technology Sector Index Fund | $1,071,797 | $ 907,345 | $ 219,587 |
First Trust Natural Gas ETF | $ 73,691 | $ 92,755 | $ 105,436 |
First Trust NYSE Arca Biotechnology Index Fund | $ 875,000 | $ 508,554 | $ 460,615 |
First Trust S&P REIT Index Fund | $ 59,235 | $ 103,716 | $ 141,720 |
First Trust US Equity Opportunities ETF | $ 543,747 | $ 402,217 | $ 283,941 |
First Trust Value Line ® 100 Exchange-Traded Fund | $ 26,950 | $ 26,357 | $ 25,600 |
First Trust Value Line ® Dividend Index Fund | $1,625,331 | $1,441,136 | $ 886,819 |
First Trust Water ETF | $ 160,619 | $ 126,791 | $ 68,505 |
• | the percentage of each Fund’s assets, if any, that are subject to special arrangements arising from their illiquid nature (including, but not limited to, deferrals of redemptions and suspensions); |
• | the current risk profile of each Fund and the risk management systems employed by the AIFM to manage those risks; and |
• | the total amount of leverage employed by each Fund, if any. |
Transmittal
Date (T) |
Next Business
Day (T+1) |
Second Business
Day (T+2) |
|
CREATION OUTSIDE NSCC | |||
Standard Orders |
4:00 p.m. (ET)
Order in proper form must be received by the Distributor. |
11:00 a.m. (ET)
Deposit Securities must be received by a Fund’s account through DTC. 2:00 p.m. (ET) Cash Component must be received by the Custodian. |
Creation Unit
Aggregations will be delivered. |
Standard Orders
Created in Advance of Receipt by the Trust of all or a portion of the Deposit Securities |
4:00 p.m. (ET)
Order in proper form must be received by the Distributor. |
11:00 a.m. (ET)
Available Deposit Securities. Cash in an amount equal to the sum of (i) the Cash Component, plus (ii) 115% of the market value of the undelivered Deposit Securities. |
1:00 p.m.
Missing Deposit Securities are due to the Trust or the Trust may use cash on deposit to purchase missing Deposit Securities. Creation Unit Aggregations will be delivered. |
Custom Orders |
3:00 p.m. (ET)
Order in proper form must be received by the Distributor. Order received after 3:00 p.m. (ET) will be treated as standard orders. |
11:00 a.m. (ET)
Deposit Securities must be received by a Fund’s account through DTC. 2:00 p.m. (ET) Cash Component must be received by the Custodian. |
Creation Unit
Aggregations will be delivered. |
REDEMPTION THROUGH NSCC | |||
Standard Orders |
4:00 p.m. (ET)
Order must be received by the Transfer Agent. Orders received after 4:00 p.m. (ET) will be deemed received on the next business day (T+1) |
No action. |
Fund Securities and
Cash Redemption Amount will be transferred. |
Custom Orders |
3:00 p.m. (ET)
Order must be received by the Transfer Agent Order received after 3:00 p.m. (ET) will be treated as standard orders. |
No action. |
Fund Securities and
Cash Redemption Amount will be transferred. |
Transmittal
Date (T) |
Next Business
Day (T+1) |
Second Business
Day (T+2) |
|
REDEMPTION OUTSIDE NSCC | |||
Standard Orders |
4:00 p.m. (ET)
Order must be received by the Transfer Agent. Order received after 4:00 p.m. (ET) will be deemed received on the next business day (T+1). |
11:00 a.m. (ET)
Fund shares must be delivered through DTC to the Custodian. 2:00 p.m. (ET) Cash Component, if any, is due. *If the order is not in proper form or the Fund shares are not delivered, then the order will not be deemed received as of T. |
Fund Securities and
Cash Redemption Amount are delivered to the redeeming beneficial owner. |
Custom Orders |
3:00 p.m. (ET)
Order must be received by the Transfer Agent. Order received after 3:00 p.m. (ET) will be treated as standard orders. |
11:00 a.m. (ET)
Fund shares must be delivered through DTC to the Custodian. 2:00 p.m. (ET) Cash Component, if any, is due. *If the order is not in proper form or the Fund shares are not delivered, then the order will not be deemed received as of T. |
Fund Securities and
Cash Redemption Amount are delivered to the redeeming beneficial owner. |
Fund |
Total
Non-Expiring Capital Loss Available |
First Trust Capital Strength ETF | $ 43,880,883 |
First Trust Dow Jones Internet Index Fund | 150,836,952 |
First Trust Dow Jones Select MicroCap Index Fund | 16,493,170 |
First Trust Chindia ETF | 64,902,798 |
First Trust Natural Gas ETF | 461,527,796 |
First Trust Water ETF | 6,895,306 |
First Trust Morningstar Dividend Leaders Index Fund | 83,142,112 |
First Trust NASDAQ-100 Equal Weighted Index Fund | 37,030,279 |
First Trust NASDAQ-100 Ex-Technology Sector Index Fund | 14,965,979 |
First Trust NASDAQ-100-Technology Sector Index Fund | 47,202,665 |
First Trust NASDAQ ® ABA Community Bank Index Fund | 4,971,951 |
First Trust NASDAQ ® Clean Edge ® Green Energy Index Fund | 34,906,225 |
First Trust NYSE Arca Biotechnology Index Fund | 136,416,636 |
First Trust S&P REIT Index Fund | 445,058 |
First Trust US Equity Opportunities ETF | 104,241,056 |
Fund |
Total
Non-Expiring Capital Loss Available |
First Trust Value Line ® 100 Exchange-Traded Fund | 13,408,733 |
First Trust Value Line ® Dividend Index Fund | 69,543,177 |
(1) | Common stocks, real estate investment trusts and other equity securities listed on any national or foreign exchange other than The Nasdaq Stock Market LLC ("Nasdaq") and the London Stock Exchange Alternative Investment Market ( “AIM” ) will be valued at the last sale price on the exchange on which they are principally traded, or the official closing price for Nasdaq and AIM securities. Portfolio securities traded on more than one securities exchange are valued at the last sale price or official closing price, as applicable, on the Business Day as of which such value is being determined at the close of the exchange representing the principal market for such securities. |
(2) | Shares of open-end funds are valued at fair value which is based on NAV per share. |
(3) | Securities traded in the OTC market are fair valued at the mean of their most recent bid and asked price, if available, and otherwise at their closing bid price. |
(4) | Exchange-traded options and futures contracts are valued at the closing price in the market where such contracts are principally traded. If no closing price is available, they will be fair valued at the mean of their most recent bid and asked price, if available, and otherwise at their closing bid price. OTC options and futures contracts are fair valued at the mean of their most recent bid and asked price, if available, and otherwise at their closing bid price. |
(5) | Forward foreign currency contracts are fair valued at the current day’s interpolated foreign exchange rate, as calculated using the current day’s spot rate, and the 30-, 60-, 90- and 180-day forward rates provided by an independent pricing service or by certain independent dealers in such contracts. |
(1) | Fixed-income securities, convertible securities, interest rate swaps, credit default swaps, total return swaps, currency swaps, currency-linked notes, credit-linked notes and other similar instruments will be fair valued using a pricing service. |
(2) | Fixed-income and other debt securities having a remaining maturity of 60 days or less when purchased are fair valued at cost adjusted for amortization of premiums and accretion of discounts (amortized cost), provided the Advisor’s Pricing Committee has determined that the use of amortized cost is an appropriate reflection of fair value given market and issuer specific conditions existing at the time of the determination. Factors that may be considered in determining the appropriateness of the use of amortized cost include, but are not limited to, the following: |
(i) | the credit conditions in the relevant market and changes thereto; |
(ii) | the liquidity conditions in the relevant market and changes thereto; |
(iii) | the interest rate conditions in the relevant market and changes thereto (such as significant changes in interest rates); |
(iv) | issuer-specific conditions (such as significant credit deterioration); and |
(v) | any other market-based data the Advisor’s Pricing Committee considers relevant. In this regard, the Advisor’s Pricing Committee may use last-obtained market-based data to assist it when valuing portfolio securities using amortized cost. |
(3) | Repurchase agreements will be valued as follows. Overnight repurchase agreements will be fair valued at cost when it represents the best estimate of fair value. Term repurchase agreements ( i.e. , those whose maturity exceeds seven days) will be fair valued by the Advisor's Pricing Committee at the average of the bid quotations obtained daily from at least two recognized dealers. |
NAME OF BENEFICIAL OWNER |
% OF
OUTSTANDING SHARES OWNED |
FIRST TRUST CAPITAL STRENGTH ETF | |
LPL Financial Corporation | 10.92% |
Morgan Stanley Smith Barney LLC | 10.59% |
Wells Fargo Clearing Services, LLC | 9.18% |
Edward Jones | 9.12% |
Raymond James & Associates, Inc. | 8.50% |
National Financial Services LLC | 8.06% |
Pershing LLC | 6.56% |
Merrill Lynch, Pierce, Fenner & Smith Incorporated/8862 MLPF | 6.45% |
American Enterprise Investment Services Inc. | 5.47% |
FIRST TRUST DOW JONES INTERNET INDEX FUND | |
Merrill Lynch, Pierce, Fenner & Smith Incorporated/8862 MLPF | 25.21% |
National Financial Services LLC | 8.33% |
Wells Fargo Clearing Services, LLC | 7.82% |
Charles Schwab & Co., Inc. | 7.12% |
Brown Brothers Harriman & Co./ETF | 6.66% |
Morgan Stanley Smith Barney LLC | 6.57% |
FIRST TRUST DOW JONES SELECT MICROCAP INDEX FUND | |
Charles Schwab & Co., Inc. | 29.87% |
Morgan Stanley Smith Barney LLC | 12.83% |
National Financial Services LLC | 9.13% |
TD Ameritrade Clearing, Inc. | 7.60% |
Edward Jones | 5.97% |
LPL Financial Corporation | 5.56% |
Merrill Lynch, Pierce, Fenner & Smith Incorporated/8862 MLPF | 5.51% |
FIRST TRUST CHINDIA ETF | |
Citibank, N.A. | 14.62% |
Charles Schwab & Co., Inc. | 14.21% |
Wells Fargo Clearing Services, LLC | 9.63% |
Morgan Stanley Smith Barney LLC | 7.63% |
National Financial Services LLC | 6.79% |
Merrill Lynch, Pierce, Fenner & Smith Incorporated/8862 MLPF | 6.60% |
Raymond James & Associates, Inc. | 6.00% |
Pershing LLC | 5.44% |
TD Ameritrade Clearing, Inc. | 5.15% |
FIRST TRUST NATURAL GAS ETF | |
National Financial Services LLC | 15.49% |
TD Ameritrade Clearing, Inc. | 13.40% |
Charles Schwab & Co., Inc. | 8.69% |
Raymond James & Associates, Inc. | 6.18% |
Pershing LLC | 5.23% |
NAME OF BENEFICIAL OWNER |
% OF
OUTSTANDING SHARES OWNED |
FIRST TRUST WATER ETF | |
Morgan Stanley Smith Barney LLC | 15.18% |
National Financial Services LLC | 11.24% |
Merrill Lynch, Pierce, Fenner & Smith Incorporated/8862 MLPF | 8.84% |
UBS Financial Services Inc. | 8.60% |
TD Ameritrade Clearing, Inc. | 7.44% |
Wells Fargo Clearing Services, LLC | 7.36% |
Charles Schwab & Co., Inc. | 6.80% |
FIRST TRUST MORNINGSTAR DIVIDEND LEADERS INDEX FUND | |
Morgan Stanley Smith Barney LLC | 13.52% |
National Financial Services LLC | 11.21% |
Wells Fargo Clearing Services, LLC | 9.61% |
TD Ameritrade Clearing, Inc. | 8.46% |
Merrill Lynch, Pierce, Fenner & Smith Incorporated/8862 MLPF | 7.30% |
Charles Schwab & Co., Inc. | 6.87% |
Pershing LLC | 6.52% |
LPL Financial Corporation | 6.15% |
Raymond James & Associates, Inc. | 5.45% |
UBS Financial Services Inc. | 5.06% |
FIRST TRUST NASDAQ-100 EQUAL WEIGHTED INDEX FUND | |
Raymond James & Associates, Inc. | 16.04% |
Wells Fargo Clearing Services, LLC | 12.33% |
Morgan Stanley Smith Barney LLC | 9.72% |
National Financial Services LLC | 9.62% |
Charles Schwab & Co., Inc. | 8.51% |
UBS Financial Services Inc. | 7.20% |
LPL Financial Corporation | 6.83% |
Pershing LLC | 6.29% |
FIRST TRUST NASDAQ-100 EX-TECHNOLOGY SECTOR INDEX FUND | |
Wells Fargo Clearing Services, LLC | 20.43% |
Morgan Stanley Smith Barney LLC | 19.59% |
National Financial Services LLC | 8.90% |
UBS Financial Services Inc. | 8.53% |
Raymond James & Associates, Inc. | 7.34% |
FIRST TRUST NASDAQ-100-TECHNOLOGY SECTOR INDEX FUND | |
Brown Brothers Harriman & Co./ETF | 24.02% |
Wells Fargo Clearing Services, LLC | 9.67% |
National Financial Services LLC | 9.04% |
TD Ameritrade Clearing, Inc. | 8.96% |
Morgan Stanley Smith Barney LLC | 8.08% |
Charles Schwab & Co., Inc. | 7.27% |
Raymond James & Associates, Inc. | 5.35% |
NAME OF BENEFICIAL OWNER |
% OF
OUTSTANDING SHARES OWNED |
FIRST TRUST NASDAQ ® ABA COMMUNITY BANK INDEX FUND | |
Morgan Stanley Smith Barney LLC | 13.73% |
National Financial Services LLC | 10.34% |
LPL Financial Corporation | 9.03% |
Wells Fargo Clearing Services, LLC | 7.21% |
Pershing LLC | 6.90% |
UBS Financial Services Inc. | 5.99% |
Raymond James & Associates, Inc. | 5.87% |
Charles Schwab & Co., Inc. | 5.83% |
TD Ameritrade Clearing, Inc. | 5.34% |
FIRST TRUST NASDAQ ® CLEAN EDGE ® GREEN ENERGY INDEX FUND | |
Charles Schwab & Co., Inc. | 21.57% |
National Financial Services LLC | 12.09% |
Morgan Stanley Smith Barney LLC | 7.70% |
TD Ameritrade Clearing, Inc. | 6.87% |
Merrill Lynch, Pierce, Fenner & Smith Incorporated/8862 MLPF | 5.32% |
Wells Fargo Clearing Services, LLC | 5.25% |
FIRST TRUST NYSE ARCA BIOTECHNOLOGY INDEX FUND | |
Brown Brothers Harriman & Co./ETF | 17.56% |
Morgan Stanley Smith Barney LLC | 11.18% |
Wells Fargo Clearing Services, LLC | 11.02% |
National Financial Services LLC | 7.98% |
Merrill Lynch, Pierce, Fenner & Smith Incorporated/8862 MLPF | 7.76% |
Charles Schwab & Co., Inc. | 6.05% |
TD Ameritrade Clearing, Inc. | 5.30% |
Raymond James & Associates, Inc. | 5.07% |
FIRST TRUST S&P REIT INDEX FUND | |
Morgan Stanley Smith Barney LLC | 17.57% |
Wells Fargo Clearing Services, LLC | 13.45% |
LPL Financial Corporation | 12.68% |
Charles Schwab & Co., Inc. | 8.85% |
National Financial Services LLC | 7.40% |
TD Ameritrade Clearing, Inc. | 7.14% |
Pershing LLC | 5.08% |
Merrill Lynch, Pierce, Fenner & Smith Incorporated/8862 MLPF | 5.02% |
NAME OF BENEFICIAL OWNER |
% OF
OUTSTANDING SHARES OWNED |
FIRST TRUST US EQUITY OPPORTUNITIES ETF | |
Morgan Stanley Smith Barney LLC | 11.74% |
National Financial Services LLC | 11.28% |
LPL Financial Corporation | 10.75% |
Wells Fargo Clearing Services, LLC | 8.58% |
Merrill Lynch, Pierce, Fenner & Smith Incorporated/8862 MLPF | 8.49% |
TD Ameritrade Clearing, Inc. | 8.08% |
Pershing LLC | 6.61% |
Charles Schwab & Co., Inc. | 6.25% |
Raymond James & Associates, Inc. | 6.07% |
UBS Financial Services Inc. | 5.55% |
FIRST TRUST VALUE LINE ® 100 EXCHANGE-TRADED FUND | |
Wells Fargo Clearing Services, LLC | 14.39% |
TD Ameritrade Clearing, Inc. | 11.85% |
National Financial Services LLC | 11.18% |
Merrill Lynch, Pierce, Fenner & Smith Incorporated/8862 MLPF | 8.64% |
Edward Jones | 6.74% |
Morgan Stanley Smith Barney LLC | 6.64% |
Charles Schwab & Co., Inc. | 6.30% |
FIRST TRUST VALUE LINE ® DIVIDEND INDEX FUND | |
Morgan Stanley Smith Barney LLC | 14.93% |
National Financial Services LLC | 9.85% |
LPL Financial Corporation | 8.36% |
Merrill Lynch, Pierce, Fenner & Smith Incorporated/8862 MLPF | 7.94% |
Raymond James & Associates, Inc. | 7.72% |
American Enterprise Investment Services Inc. | 7.57% |
Wells Fargo Clearing Services, LLC | 6.78% |
Pershing LLC | 6.26% |
Charles Schwab & Co., Inc. | 5.95% |
TD Ameritrade Clearing, Inc. | 5.13% |
UBS Financial Services Inc. | 5.09% |
➤ | General Recommendation: Generally vote for director nominees, except under the following circumstances: |
➤ | Independent directors comprise 50 percent or less of the board; |
➤ | The non-independent director serves on the audit, compensation, or nominating committee; |
➤ | The company lacks an audit, compensation, or nominating committee so that the full board functions as that committee; or |
➤ | The company lacks a formal nominating committee, even if the board attests that the independent directors fulfill the functions of such a committee. |
➤ | Medical issues/illness; |
➤ | Family emergencies; and |
➤ | Missing only one meeting (when the total of all meetings is three or fewer). |
➤ | If the proxy disclosure is unclear and insufficient to determine whether a director attended at least 75 percent of the aggregate of his/her board and committee meetings during his/her period of service, vote against or withhold from the director(s) in question. |
1 | In general, companies with a plurality vote standard use “Withhold” as the contrary vote option in director elections; companies with a majority vote standard use “Against”. However, it will vary by company and the proxy must be checked to determine the valid contrary vote option for the particular company. |
2 | New nominees who served for only part of the fiscal year are generally exempted from the attendance policy. |
➤ | Sit on more than five public company boards; or |
➤ | Are CEOs of public companies who sit on the boards of more than two public companies besides their own — withhold only at their outside boards 3 . |
➤ | A firm commitment, as stated in the proxy statement, to appoint at least one female to the board in the near term; |
➤ | The presence of a female on the board at the preceding annual meeting; or |
➤ | Other relevant factors as applicable. |
➤ | The board failed to act on a shareholder proposal that received the support of a majority of the shares cast in the previous year or failed to act on a management proposal seeking to ratify an existing charter/bylaw provision that received opposition of a majority of the shares cast in the previous year. Factors that will be considered are: |
➤ | Disclosed outreach efforts by the board to shareholders in the wake of the vote; |
➤ | Rationale provided in the proxy statement for the level of implementation; |
➤ | The subject matter of the proposal; |
➤ | The level of support for and opposition to the resolution in past meetings; |
➤ | Actions taken by the board in response to the majority vote and its engagement with shareholders; |
➤ | The continuation of the underlying issue as a voting item on the ballot (as either shareholder or management proposals); and |
➤ | Other factors as appropriate. |
➤ | The board failed to act on takeover offers where the majority of shares are tendered; |
➤ | At the previous board election, any director received more than 50 percent withhold/against votes of the shares cast and the company has failed to address the issue(s) that caused the high withhold/against vote. |
➤ | The company’s previous say-on-pay received the support of less than 70 percent of votes cast. Factors that will be considered are: |
➤ | The company's response, including: |
➤ | Disclosure of engagement efforts with major institutional investors, including the frequency and timing of engagements and the company participants (including whether independent directors participated); |
➤ | Disclosure of the specific concerns voiced by dissenting shareholders that led to the say-on-pay opposition; |
➤ | Disclosure of specific and meaningful actions taken to address shareholders' concerns; |
➤ | Other recent compensation actions taken by the company; |
➤ | Whether the issues raised are recurring or isolated; |
➤ | The company's ownership structure; and |
3 | Although all of a CEO’s subsidiary boards with publicly-traded common stock will be counted as separate boards, ISS will not recommend a withhold vote for the CEO of a parent company board or any of the controlled (>50 percent ownership) subsidiaries of that parent but may do so at subsidiaries that are less than 50 percent controlled and boards outside the parent/subsidiary relationships. |
➤ | Whether the support level was less than 50 percent, which would warrant the highest degree of responsiveness. |
➤ | The board implements an advisory vote on executive compensation on a less frequent basis than the frequency that received the plurality of votes cast. |
➤ | The company has a poison pill that was not approved by shareholders 5 . However, vote case-by-case on nominees if the board adopts an initial pill with a term of one year or less, depending on the disclosed rationale for the adoption, and other factors as relevant (such as a commitment to put any renewal to a shareholder vote). |
➤ | The board makes a material adverse modification to an existing pill, including, but not limited to, extension, renewal, or lowering the trigger, without shareholder approval. |
➤ | A classified board structure; |
➤ | A supermajority vote requirement; |
➤ | Either a plurality vote standard in uncontested director elections, or a majority vote standard in contested elections; |
➤ | The inability of shareholders to call special meetings; |
➤ | The inability of shareholders to act by written consent; |
➤ | A multi-class capital structure; and/or |
➤ | A non-shareholder-approved poison pill. |
➤ | The board's rationale for adopting the bylaw/charter amendment without shareholder ratification; |
4 | A “new nominee” is any current nominee who has not already been elected by shareholders and who joined the board after the problematic action in question transpired. If ISS cannot determine whether the nominee joined the board before or after the problematic action transpired, the nominee will be considered a “new nominee” if he or she joined the board within the 12 months prior to the upcoming shareholder meeting. |
5 | Public shareholders only, approval prior to a company’s becoming public is insufficient. |
➤ | Disclosure by the company of any significant engagement with shareholders regarding the amendment; |
➤ | The level of impairment of shareholders' rights caused by the board's unilateral amendment to the bylaws/charter; |
➤ | The board's track record with regard to unilateral board action on bylaw/charter amendments or other entrenchment provisions; |
➤ | The company's ownership structure; |
➤ | The company's existing governance provisions; |
➤ | The timing of the board's amendment to the bylaws/charter in connection with a significant business development; and, |
➤ | Other factors, as deemed appropriate, that may be relevant to determine the impact of the amendment on shareholders. |
➤ | Classified the board; |
➤ | Adopted supermajority vote requirements to amend the bylaws or charter; or |
➤ | Eliminated shareholders' ability to amend bylaws. |
➤ | The level of impairment of shareholders' rights; |
➤ | The disclosed rationale; |
➤ | The ability to change the governance structure (e.g., limitations on shareholders’ right to amend the bylaws or charter, or supermajority vote requirements to amend the bylaws or charter); |
➤ | The ability of shareholders to hold directors accountable through annual director elections, or whether the company has a classified board structure; |
➤ | Any reasonable sunset provision; and |
➤ | Other relevant factors. |
➤ | The presence of a shareholder proposal addressing the same issue on the same ballot; |
➤ | The board's rationale for seeking ratification; |
➤ | Disclosure of actions to be taken by the board should the ratification proposal fail; |
➤ | Disclosure of shareholder engagement regarding the board’s ratification request; |
➤ | The level of impairment to shareholders' rights caused by the existing provision; |
➤ | The history of management and shareholder proposals on the provision at the company’s past meetings; |
➤ | Whether the current provision was adopted in response to the shareholder proposal; |
➤ | The company's ownership structure; and |
➤ | Previous use of ratification proposals to exclude shareholder proposals. |
➤ | The company’s governing documents impose undue restrictions on shareholders’ ability to amend the bylaws. Such restrictions include but are not limited to: outright prohibition on the submission of binding shareholder proposals or share ownership requirements or time holding requirements in excess of SEC Rule 14a-8. Vote against on an ongoing basis. |
➤ | The non-audit fees paid to the auditor are excessive; |
➤ | The company receives an adverse opinion on the company’s financial statements from its auditor; or |
➤ | There is persuasive evidence that the Audit Committee entered into an inappropriate indemnification agreement with its auditor that limits the ability of the company, or its shareholders, to pursue legitimate legal recourse against the audit firm. |
➤ | Poor accounting practices are identified that rise to a level of serious concern, such as: fraud; misapplication of GAAP; and material weaknesses identified in Section 404 disclosures. Examine the severity, breadth, chronological sequence, and duration, as well as the company’s efforts at remediation or corrective actions, in determining whether withhold/against votes are warranted. |
➤ | There is an unmitigated misalignment between CEO pay and company performance (pay for performance) (see Primary Evaluation Factors for Executive Pay); |
➤ | The company maintains significant problematic pay practices (see Problematic Pay Practices); or |
➤ | The board exhibits a significant level of poor communication and responsiveness (see Compensation Committee Communications and Responsiveness) to shareholders. |
➤ | The company fails to include a Say on Pay ballot item when required under SEC provisions, or under the company’s declared frequency of say on pay; or |
➤ | The company fails to include a Frequency of Say on Pay ballot item when required under SEC provisions. |
➤ | The presence of an anti-pledging policy, disclosed in the proxy statement, that prohibits future pledging activity; |
➤ | The magnitude of aggregate pledged shares in terms of total common shares outstanding, market value, and trading volume; |
➤ | Disclosure of progress or lack thereof in reducing the magnitude of aggregate pledged shares over time; |
➤ | Disclosure in the proxy statement that shares subject to stock ownership and holding requirements do not include pledged company stock; and |
➤ | Any other relevant factors. |
➤ | Material failures of governance, stewardship, risk oversight 6 , or fiduciary responsibilities at the company; |
➤ | Failure to replace management as appropriate; or |
➤ | Egregious actions related to a director’s service on other boards that raise substantial doubt about his or her ability to effectively oversee management and serve the best interests of shareholders at any company. |
➤ | General Recommendation: In cases where companies are targeted in connection with public “vote-no” campaigns, evaluate director nominees under the existing governance policies for voting on director nominees in uncontested elections. Take into consideration the arguments submitted by shareholders and other publicly available information. |
➤ | General Recommendation: Vote case-by-case on the election of directors in contested elections, considering the following factors: |
➤ | Long-term financial performance of the company relative to its industry; |
➤ | Management’s track record; |
➤ | Background to the contested election; |
➤ | Nominee qualifications and any compensatory arrangements; |
➤ | Strategic plan of dissident slate and quality of the critique against management; |
➤ | Likelihood that the proposed goals and objectives can be achieved (both slates); and |
➤ | Stock ownership positions. |
6 | Examples of failure of risk oversight include but are not limited to: bribery; large or serial fines or sanctions from regulatory bodies; significant adverse legal judgments or settlement; or hedging of company stock. |
➤ | General Recommendation: Generally vote for shareholder proposals requiring that the chairman’s position be filled by an independent director, taking into consideration the following: |
➤ | The scope of the proposal; |
➤ | The company's current board leadership structure; |
➤ | The company's governance structure and practices; |
➤ | Company performance; and |
➤ | Any other relevant factors that may be applicable. |
➤ | General Recommendation: Generally vote for management and shareholder proposals for proxy access with the following provisions: |
➤ | Ownership threshold: maximum requirement not more than three percent (3%) of the voting power; |
➤ | Ownership duration: maximum requirement not longer than three (3) years of continuous ownership for each member of the nominating group; |
➤ | Aggregation: minimal or no limits on the number of shareholders permitted to form a nominating group; |
➤ | Cap: cap on nominees of generally twenty-five percent (25%) of the board. |
➤ | General Recommendation: Generally vote against management proposals to ratify provisions of the company’s existing charter or bylaws, unless these governance provisions align with best practice. |
➤ | The presence of a shareholder proposal addressing the same issue on the same ballot; |
➤ | The board's rationale for seeking ratification; |
➤ | Disclosure of actions to be taken by the board should the ratification proposal fail; |
➤ | Disclosure of shareholder engagement regarding the board’s ratification request; |
➤ | The level of impairment to shareholders' rights caused by the existing provision; |
➤ | The history of management and shareholder proposals on the provision at the company’s past meetings; |
➤ | Whether the current provision was adopted in response to the shareholder proposal; |
➤ | The company's ownership structure; and |
➤ | Previous use of ratification proposals to exclude shareholder proposals. |
➤ | General Recommendation: Vote for proposals to increase the number of authorized common shares where the primary purpose of the increase is to issue shares in connection with a transaction on the same ballot that warrants support. |
➤ | Past Board Performance: |
➤ | The company's use of authorized shares during the last three years |
➤ | The Current Request: |
➤ | Disclosure in the proxy statement of the specific purposes of the proposed increase; |
➤ | Disclosure in the proxy statement of specific and severe risks to shareholders of not approving the request; and |
➤ | The dilutive impact of the request as determined relative to an allowable increase calculated by ISS (typically 100 percent of existing authorized shares) that reflects the company's need for shares and total shareholder returns. |
A. | Most companies: 100 percent of existing authorized shares. |
B. | Companies with less than 50 percent of existing authorized shares either outstanding or reserved for issuance: 50 percent of existing authorized shares. |
C. | Companies with one- and three-year total shareholder returns (TSRs) in the bottom 10 percent of the U.S. market as of the end of the calendar quarter that is closest to their most recent fiscal year end: 50 percent of existing authorized shares. |
D. | Companies at which both conditions (B and C) above are both present: 25 percent of existing authorized shares. |
➤ | General Recommendation: Vote case-by-case on mergers and acquisitions. Review and evaluate the merits and drawbacks of the proposed transaction, balancing various and sometimes countervailing factors including: |
➤ | Valuation - Is the value to be received by the target shareholders (or paid by the acquirer) reasonable? While the fairness opinion may provide an initial starting point for assessing valuation reasonableness, emphasis is placed on the offer premium, market reaction, and strategic rationale. |
➤ | Market reaction - How has the market responded to the proposed deal? A negative market reaction should cause closer scrutiny of a deal. |
➤ | Strategic rationale - Does the deal make sense strategically? From where is the value derived? Cost and revenue synergies should not be overly aggressive or optimistic, but reasonably achievable. Management should also have a favorable track record of successful integration of historical acquisitions. |
➤ | Negotiations and process - Were the terms of the transaction negotiated at arm's-length? Was the process fair and equitable? A fair process helps to ensure the best price for shareholders. Significant negotiation "wins" can also signify the deal makers' competency. The comprehensiveness of the sales process (e.g., full auction, partial auction, no auction) can also affect shareholder value. |
➤ | Conflicts of interest - Are insiders benefiting from the transaction disproportionately and inappropriately as compared to non-insider shareholders? As the result of potential conflicts, the directors and officers of the company may be more likely to vote to approve a merger than if they did not hold these interests. Consider whether these interests may have influenced these directors and officers to support or recommend the merger. The CIC figure presented in the "ISS Transaction Summary" section of this report is an aggregate figure that can in certain cases be a misleading indicator of the true value transfer from shareholders to insiders. Where such figure appears to be excessive, analyze the underlying assumptions to determine whether a potential conflict exists. |
➤ | Governance - Will the combined company have a better or worse governance profile than the current governance profiles of the respective parties to the transaction? If the governance profile is to change for the worse, the burden is on the company to prove that other issues (such as valuation) outweigh any deterioration in governance. |
1. | Maintain appropriate pay-for-performance alignment, with emphasis on long-term shareholder value: This principle encompasses overall executive pay practices, which must be designed to attract, retain, and appropriately motivate the key employees who drive shareholder value creation over the long term. It will take into consideration, among other factors, the link between pay and performance; the mix between fixed and variable pay; performance goals; and equity-based plan costs; |
2. | Avoid arrangements that risk “pay for failure”: This principle addresses the appropriateness of long or indefinite contracts, excessive severance packages, and guaranteed compensation; |
3. | Maintain an independent and effective compensation committee: This principle promotes oversight of executive pay programs by directors with appropriate skills, knowledge, experience, and a sound process for compensation decision-making (e.g., including access to independent expertise and advice when needed); |
4. | Provide shareholders with clear, comprehensive compensation disclosures: This principle underscores the importance of informative and timely disclosures that enable shareholders to evaluate executive pay practices fully and fairly; |
5. | Avoid inappropriate pay to non-executive directors: This principle recognizes the interests of shareholders in ensuring that compensation to outside directors is reasonable and does not compromise their independence and ability to make appropriate judgments in overseeing managers’ pay and performance. At the market level, it may incorporate a variety of generally accepted best practices. |
➤ | General Recommendation: Vote case-by-case on ballot items related to executive pay and practices, as well as certain aspects of outside director compensation. |
Vote against Advisory Votes on Executive Compensation (Say-on-Pay or “SOP”) if: |
➤ | There is an unmitigated misalignment between CEO pay and company performance (pay for performance) (see Primary Evaluation Factors for Executive Pay); |
➤ | The company maintains significant problematic pay practices (see Problematic Pay Practices); |
➤ | The board exhibits a significant level of poor communication and responsiveness (see Compensation Committee Communications and Responsiveness) to shareholders. |
➤ | There is no SOP on the ballot, and an against vote on an SOP is warranted due to pay-for-performance misalignment, problematic pay practices, or the lack of adequate responsiveness on compensation issues raised previously, or a combination thereof; |
➤ | The board fails to respond adequately to a previous SOP proposal that received less than 70 percent support of votes cast; |
➤ | The company has recently practiced or approved problematic pay practices, such as option repricing or option backdating; or |
➤ | The situation is egregious. |
1. | Peer Group 8 Alignment: |
➤ | The degree of alignment between the company's annualized TSR rank and the CEO's annualized total pay rank within a peer group, each measured over a three-year period. |
➤ | The rankings of CEO total pay and company financial performance within a peer group, each measured over a three-year period. |
➤ | The multiple of the CEO's total pay relative to the peer group median in the most recent fiscal year. |
2. | Absolute Alignment 9 – the absolute alignment between the trend in CEO pay and company TSR over the prior five fiscal years – i.e. , the difference between the trend in annual pay changes and the trend in annualized TSR during the period. |
➤ | The ratio of performance- to time-based incentive awards; |
➤ | The overall ratio of performance-based compensation; |
➤ | The completeness of disclosure and rigor of performance goals; |
➤ | The company's peer group benchmarking practices; |
➤ | Actual results of financial/operational metrics, both absolute and relative to peers; |
➤ | Special circumstances related to, for example, a new CEO in the prior FY or anomalous equity grant practices (e.g., bi-annual awards); |
➤ | Realizable pay 10 compared to grant pay; and |
➤ | Any other factors deemed relevant. |
➤ | Problematic practices related to non-performance-based compensation elements; |
➤ | Incentives that may motivate excessive risk-taking or present a windfall risk; and |
➤ | Pay decisions that circumvent pay-for-performance, such as options backdating or waiving performance requirements. |
7 | The Russell 3000E Index includes approximately 4,000 of the largest U.S. equity securities. |
8 | The revised peer group is generally comprised of 14-24 companies that are selected using market cap, revenue (or assets for certain financial firms), GICS industry group, and company's selected peers' GICS industry group, with size constraints, via a process designed to select peers that are comparable to the subject company in terms of revenue/assets and industry, and also within a market-cap bucket that is reflective of the company's. For Oil, Gas & Consumable Fuels companies, market cap is the only size determinant. |
9 | Only Russell 3000 Index companies are subject to the Absolute Alignment analysis. |
10 | ISS research reports include realizable pay for S&P1500 companies. |
➤ | Repricing or replacing of underwater stock options/SARS without prior shareholder approval (including cash buyouts and voluntary surrender of underwater options); |
➤ | Extraordinary perquisites or tax gross-ups; |
➤ | New or materially amended agreements that provide for: |
➤ | Excessive termination or CIC severance payments (generally exceeding 3 times base salary and average/target/most recent bonus); |
➤ | CIC severance payments without involuntary job loss or substantial diminution of duties ("single" or "modified single" triggers) or in connection with a problematic Good Reason definition; |
➤ | CIC excise tax gross-up entitlements (including "modified" gross-ups); |
➤ | Multi-year guaranteed awards that are not at risk due to rigorous performance conditions; |
➤ | Liberal CIC definition combined with any single-trigger CIC benefits; |
➤ | Insufficient executive compensation disclosure by externally-managed issuers (EMIs) such that a reasonable assessment of pay programs and practices applicable to the EMI's executives is not possible; |
➤ | Any other provision or practice deemed to be egregious and present a significant risk to investors. |
➤ | Failure to respond to majority-supported shareholder proposals on executive pay topics; or |
➤ | Failure to adequately respond to the company's previous say-on-pay proposal that received the support of less than 70 percent of votes cast, taking into account: |
➤ | The company's response, including: |
➤ | Disclosure of engagement efforts with major institutional investors, including the frequency and timing of engagements and the company participants (including whether independent directors participated); |
➤ | Disclosure of the specific concerns voiced by dissenting shareholders that led to the say-on-pay opposition; |
➤ | Disclosure of specific and meaningful actions taken to address shareholders’ concerns; |
➤ | Other recent compensation actions taken by the company; |
➤ | Whether the issues raised are recurring or isolated; |
➤ | The company's ownership structure; and |
➤ | Whether the support level was less than 50 percent, which would warrant the highest degree of responsiveness. |
➤ | General Recommendation: Vote case-by-case on certain equity-based compensation plans 11 depending on a combination of certain plan features and equity grant practices, where positive factors may counterbalance negative factors, and vice versa, as evaluated using an "Equity Plan Scorecard" (EPSC) approach with three pillars: |
➤ | Plan Cost: The total estimated cost of the company’s equity plans relative to industry/market cap peers, measured by the company's estimated Shareholder Value Transfer (SVT) in relation to peers and considering both: |
➤ | SVT based on new shares requested plus shares remaining for future grants, plus outstanding unvested/unexercised grants; and |
➤ | SVT based only on new shares requested plus shares remaining for future grants. |
➤ | Plan Features: |
➤ | Quality of disclosure around vesting upon a change in control (CIC); |
➤ | Discretionary vesting authority; |
➤ | Liberal share recycling on various award types; |
➤ | Lack of minimum vesting period for grants made under the plan; |
➤ | Dividends payable prior to award vesting. |
➤ | Grant Practices: |
➤ | The company’s three-year burn rate relative to its industry/market cap peers; |
➤ | Vesting requirements in CEO's recent equity grants (3-year look-back); |
➤ | The estimated duration of the plan (based on the sum of shares remaining available and the new shares requested, divided by the average annual shares granted in the prior three years); |
➤ | The proportion of the CEO's most recent equity grants/awards subject to performance conditions; |
➤ | Whether the company maintains a sufficient claw-back policy; |
➤ | Whether the company maintains sufficient post-exercise/vesting share-holding requirements. |
➤ | Awards may vest in connection with a liberal change-of-control definition; |
➤ | The plan would permit repricing or cash buyout of underwater options without shareholder approval (either by expressly permitting it — for NYSE and Nasdaq listed companies — or by not prohibiting it when the company has a history of repricing — for non-listed companies); |
➤ | The plan is a vehicle for problematic pay practices or a significant pay-for-performance disconnect under certain circumstances; |
➤ | The plan is excessively dilutive to shareholders' holdings; or |
➤ | Any other plan features are determined to have a significant negative impact on shareholder interests. |
11 | Proposals evaluated under the EPSC policy generally include those to approve or amend (1) stock option plans for employees and/or employees and directors, (2) restricted stock plans for employees and/or employees and directors, and (3) omnibus stock incentive plans for employees and/or employees and directors; amended plans will be further evaluated case-by-case. |
➤ | General Recommendation: Generally vote case-by-case, examining primarily whether implementation of the proposal is likely to enhance or protect shareholder value. The following factors will be considered: |
➤ | If the issues presented in the proposal are more appropriately or effectively dealt with through legislation or government regulation; |
➤ | If the company has already responded in an appropriate and sufficient manner to the issue(s) raised in the proposal; |
➤ | Whether the proposal's request is unduly burdensome (scope or timeframe) or overly prescriptive; |
➤ | The company's approach compared with any industry standard practices for addressing the issue(s) raised by the proposal; |
➤ | Whether there are significant controversies, fines, penalties, or litigation associated with the company's environmental or social practices; |
➤ | If the proposal requests increased disclosure or greater transparency, whether reasonable and sufficient information is currently available to shareholders from the company or from other publicly available sources; and |
➤ | If the proposal requests increased disclosure or greater transparency, whether implementation would reveal proprietary or confidential information that could place the company at a competitive disadvantage. |
➤ | General Recommendation: Generally vote for resolutions requesting that a company disclose information on the financial, physical, or regulatory risks it faces related to climate change on its operations and investments or on how the company identifies, measures, and manages such risks, considering: |
➤ | Whether the company already provides current, publicly-available information on the impact that climate change may have on the company as well as associated company policies and procedures to address related risks and/or opportunities; |
➤ | The company’s level of disclosure compared to industry peers; and |
➤ | Whether there are significant controversies, fines, penalties, or litigation associated with the company’s climate change-related performance. |
➤ | The company already discloses current, publicly-available information on the impacts that GHG emissions may have on the company as well as associated company policies and procedures to address related risks and/or opportunities; |
➤ | The company's level of disclosure is comparable to that of industry peers; and |
➤ | There are no significant, controversies, fines, penalties, or litigation associated with the company's GHG emissions. |
➤ | Whether the company provides disclosure of year-over-year GHG emissions performance data; |
➤ | Whether company disclosure lags behind industry peers; |
➤ | The company's actual GHG emissions performance; |
➤ | The company's current GHG emission policies, oversight mechanisms, and related initiatives; and |
➤ | Whether the company has been the subject of recent, significant violations, fines, litigation, or controversy related to GHG emissions. |
➤ | General Recommendation: Generally vote for requests for reports on a company's efforts to diversify the board, unless: |
➤ | The gender and racial minority representation of the company’s board is reasonably inclusive in relation to companies of similar size and business; and |
➤ | The board already reports on its nominating procedures and gender and racial minority initiatives on the board and within the company. |
➤ | The degree of existing gender and racial minority diversity on the company’s board and among its executive officers; |
➤ | The level of gender and racial minority representation that exists at the company’s industry peers; |
➤ | The company’s established process for addressing gender and racial minority board representation; |
➤ | Whether the proposal includes an overly prescriptive request to amend nominating committee charter language; |
➤ | The independence of the company’s nominating committee; |
➤ | Whether the company uses an outside search firm to identify potential director nominees; and |
➤ | Whether the company has had recent controversies, fines, or litigation regarding equal employment practices. |
➤ | General Recommendation: Generally vote case-by-case on requests for reports on a company's pay data by gender, or a report on a company’s policies and goals to reduce any gender pay gap, taking into account: |
➤ | The company's current policies and disclosure related to both its diversity and inclusion policies and practices and its compensation philosophy and fair and equitable compensation practices; |
➤ | Whether the company has been the subject of recent controversy, litigation, or regulatory actions related to gender pay gap issues; and |
➤ | Whether the company's reporting regarding gender pay gap policies or initiatives is lagging its peers. |
➤ | How the company's recycling programs compare to similar programs of its industry peers. |
➤ | General Recommendation: Generally vote for proposals requesting that a company report on its policies, initiatives, and oversight mechanisms related to social, economic, and environmental sustainability, unless: |
➤ | The company already discloses similar information through existing reports or policies such as an environment, health, and safety (EHS) report; a comprehensive code of corporate conduct; and/or a diversity report; or |
➤ | The company has formally committed to the implementation of a reporting program based on Global Reporting Initiative (GRI) guidelines or a similar standard within a specified time frame. |
➤ | General Recommendation: Vote case-by-case on proposals requesting information on a company’s lobbying (including direct, indirect, and grassroots lobbying) activities, policies, or procedures, considering: |
➤ | The company’s current disclosure of relevant lobbying policies, and management and board oversight; |
➤ | The company’s disclosure regarding trade associations or other groups that it supports, or is a member of, that engage in lobbying activities; and |
➤ | Recent significant controversies, fines, or litigation regarding the company’s lobbying-related activities. |
➤ | General Recommendation: Generally vote for proposals requesting greater disclosure of a company's political contributions and trade association spending policies and activities, considering: |
➤ | The company's policies, and management and board oversight related to its direct political contributions and payments to trade associations or other groups that may be used for political purposes; |
➤ | The company's disclosure regarding its support of, and participation in, trade associations or other groups that may make political contributions; and |
➤ | Recent significant controversies, fines, or litigation related to the company's political contributions or political activities. |
FUND NAME |
TICKER
SYMBOL |
EXCHANGE | ||
First Trust Dorsey Wright People’s Portfolio ETF | DWPP | Nasdaq | ||
First Trust Dow 30 Equal Weight ETF | EDOW | NYSE Arca | ||
First Trust Lunt U.S. Factor Rotation ETF | FCTR | Cboe BZX | ||
First Trust Total US Market AlphaDEX ® ETF | TUSA | Nasdaq |
|
1 |
|
3 |
|
3 |
|
5 |
|
9 |
|
9 |
|
12 |
|
21 |
|
23 |
|
27 |
|
29 |
|
30 |
|
30 |
|
37 |
|
41 |
|
43 |
|
43 |
|
44 |
|
A-1 |
|
B-1 |
Fund Name | Classification |
First Trust Dorsey Wright People’s Portfolio ETF | Diversified |
First Trust Dow 30 Equal Weight ETF | Non-Diversified |
First Trust Lunt U.S. Factor Rotation ETF | Non-Diversified |
First Trust Total US Market AlphaDEX ® ETF | Diversified |
(1) | A Fund may not issue senior securities, except as permitted under the 1940 Act. |
(2) | For First Trust Dorsey Wright People’s Portfolio ETF and First Trust Total US Market AlphaDEX ETF, a Fund may not borrow money, except that a Fund may (i) borrow money from banks for temporary or emergency purposes (but not for leverage or the purchase of investments) and (ii) engage in other transactions permissible under the 1940 Act that may involve a borrowing (such as obtaining short-term credits as are necessary for the clearance of transactions, engaging in delayed-delivery transactions, or purchasing certain futures, forward contracts and options), provided that the combination of (i) and (ii) shall not exceed 33⅓% of the value of a Fund's total |
assets (including the amount borrowed), less a Fund's liabilities (other than borrowings). For First Trust Dow 30 Equal Weight ETF and First Trust Lunt U.S. Factor Rotation ETF, a Fund may not borrow money, except as permitted under the 1940 Act. |
(3) | A Fund will not underwrite the securities of other issuers except to the extent a Fund may be considered an underwriter under the Securities Act of 1933, as amended (the “1933 Act” ), in connection with the purchase and sale of portfolio securities. |
(4) | A Fund will not purchase or sell real estate or interests therein, unless acquired as a result of ownership of securities or other instruments (but this shall not prohibit a Fund from purchasing or selling securities or other instruments backed by real estate or of issuers engaged in real estate activities). |
(5) | A Fund may not make loans to other persons, except through (i) the purchase of debt securities permissible under a Fund's investment policies, (ii) repurchase agreements, or (iii) the lending of portfolio securities, provided that no such loan of portfolio securities may be made by a Fund if, as a result, the aggregate of such loans would exceed 33⅓% of the value of a Fund's total assets. |
(6) | A Fund may not purchase or sell physical commodities unless acquired as a result of ownership of securities or other instruments (but this shall not prevent a Fund from purchasing or selling options, futures contracts, forward contracts or other derivative instruments, or from investing in securities or other instruments backed by physical commodities). |
(7) | A Fund may not invest 25% or more of the value of its total assets in securities of issuers in any one industry or group of industries, except to the extent that the Fund’s Index is based on concentrations in an industry or a group of industries. This restriction does not apply to obligations issued or guaranteed by the U.S. government, its agencies or instrumentalities. |
(8) | First Trust Total US Market AlphaDEX ® ETF is subject to the following fundamental policy: the Fund, may not, as to 75% of its total assets, purchase the securities of any issuer (except securities of other investment companies or securities issued or guaranteed by the United States government or any agency or instrumentality thereof) if, as a result, (i) more than 5% of the Fund's total assets would be invested in securities of that issuer; or (ii) the Fund would hold more than 10% of the outstanding voting securities of that issuer. |
Fund | Index |
First Trust Dorsey Wright People’s Portfolio ETF | Nasdaq Dorsey Wright People’s Portfolio Index (1) |
First Trust Dow 30 Equal Weight ETF | Dow Jones Industrial Average Equal Weight Index |
First Trust Lunt U.S. Factor Rotation ETF | Lunt Capital Large Cap Factor Rotation Index |
First Trust Total US Market AlphaDEX ® ETF | NASDAQ AlphaDEX ® Total US Market Index (2) |
(1) | Prior to August 18, 2017, the First Trust Dorsey Wright People’s Portfolio ETF’s Index was the CBOE ® VIX ® Tail Hedge Index. |
(2) | Prior to January 9, 2015, the First Trust Total US Market AlphaDEX ® ETF’s Index was the Value Line ® Equity Allocation Index TM . |
(1) | A Fund may invest in U.S. government securities, including bills, notes and bonds differing as to maturity and rates of interest, which are either issued or guaranteed by the U.S. Treasury or by U.S. government agencies or instrumentalities. U.S. government securities include securities that are issued or guaranteed by the U.S. Treasury, by various agencies of the U.S. government, or by various instrumentalities that have been established or sponsored by the U.S. government. U.S. Treasury securities are backed by the “full faith and credit” of the United States. Securities issued or guaranteed by federal agencies and U.S. government-sponsored instrumentalities may or may not be backed by the full faith and credit of the United States. Some of the U.S. government agencies that issue or guarantee securities include the Export-Import Bank of the United States, the Farmers Home Administration, the Federal Housing Administration, the Maritime Administration, the Small Business Administration and The Tennessee Valley Authority. An instrumentality of the U.S. government is a government agency organized under federal charter with government supervision. Instrumentalities issuing or guaranteeing securities include, among others, the Federal Home Loan Banks, the Federal Land Banks, the Central Bank for Cooperatives, Federal Intermediate Credit Banks and the Federal National Mortgage Association ( “Fannie Mae” ). In the case of those U.S. government securities not backed by the full faith and credit of the United States, the investor must look principally to the agency or instrumentality issuing or guaranteeing the security for ultimate repayment and may not be able to assert a claim against the United States itself in the event that the agency or instrumentality does not meet its commitment. The U.S. government, its agencies and instrumentalities do not guarantee the market value of their securities; consequently, the value of such securities may fluctuate. |
(2) | A Fund may invest in certificates of deposit issued against funds deposited in a bank or savings and loan association. Such certificates are for a definite period of time, earn a specified rate of return and are normally negotiable. If such certificates of deposit are non-negotiable, they will be considered illiquid securities and be subject to a Fund's 15% restriction on investments in illiquid securities. Pursuant to the certificate of deposit, the issuer agrees to pay the amount deposited plus interest to the bearer of the certificate on the date specified thereon. Under current FDIC regulations, the maximum insurance payable as to any one certificate of deposit is $250,000; therefore, certificates of deposit purchased by a Fund may not be fully insured. A Fund may only invest in certificates of deposit issued by U.S. banks with at least $1 billion in assets. |
(3) | A Fund may invest in bankers’ acceptances, which are short-term credit instruments used to finance commercial transactions. Generally, an acceptance is a time draft drawn on a bank by an exporter or an importer to obtain a stated amount of funds to pay for specific merchandise. The draft is then “accepted” by a bank that, in effect, unconditionally guarantees to pay the face value of the instrument on its maturity date. The acceptance may then be held by the accepting bank as an asset or it may be sold in the secondary market at the going rate of interest for a specific maturity. |
(4) | A Fund may invest in repurchase agreements, which involve purchases of debt securities with counterparties that are deemed by the Advisor to present acceptable credit risks. In such an action, at the time a Fund purchases the security, it simultaneously agrees to resell and redeliver the security to the seller, who also simultaneously agrees to buy back the security at a fixed price and time. This assures a predetermined yield for a Fund during its holding period since the resale price is always greater than the purchase price and reflects an agreed-upon market rate. Such actions afford an opportunity for a Fund to invest temporarily available cash. A Fund may enter into repurchase agreements only with respect to obligations of the U.S. government, its agencies or instrumentalities, certificates of deposit or bankers’ acceptances in which a Fund may invest. Repurchase agreements may be considered loans to the seller, collateralized by the underlying securities. The risk to a Fund is limited to the ability of the seller to pay the agreed-upon sum on the repurchase date; in the event of default, the repurchase agreement provides that the affected Fund is entitled to sell the underlying collateral. If the value of the collateral declines after the agreement is entered into, however, and if the seller defaults under a repurchase agreement when the value of the underlying collateral is less than the repurchase price, a Fund could incur a loss of both principal and interest. The portfolio managers monitor the value of the collateral |
at the time the action is entered into and at all times during the term of the repurchase agreement. The portfolio managers do so in an effort to determine that the value of the collateral always equals or exceeds the agreed-upon repurchase price to be paid to a Fund. If the seller were to be subject to a federal bankruptcy proceeding, the ability of a Fund to liquidate the collateral could be delayed or impaired because of certain provisions of the bankruptcy laws. | |
(5) | A Fund may invest in bank time deposits, which are monies kept on deposit with banks or savings and loan associations for a stated period of time at a fixed rate of interest. There may be penalties for the early withdrawal of such time deposits, in which case the yields of these investments will be reduced. |
(6) | A Fund may invest in commercial paper, which are short-term unsecured promissory notes, including variable rate master demand notes issued by corporations to finance their current operations. Master demand notes are direct lending arrangements between the Fund and a corporation. There is no secondary market for the notes. However, they are redeemable by a Fund at any time. A Fund's portfolio managers will consider the financial condition of the corporation ( e.g. , earning power, cash flow and other liquidity ratios) and will continuously monitor the corporation’s ability to meet all of its financial obligations, because a Fund's liquidity might be impaired if the corporation were unable to pay principal and interest on demand. A Fund may invest in commercial paper rated at the day of purchase “Prime-1” by Moody’s Investors Service, Inc. or “A-1+” or “A-1” by Standard & Poor’s Ratings Group, Inc., or, if unrated, of comparable quality as determined by First Trust. |
(7) | A Fund may invest in shares of money market funds, as consistent with its investment objectives and policies. Shares of money market funds are subject to management fees and other expenses of those funds. Therefore, investments in money market funds will cause the Fund to bear proportionately the costs incurred by the money market funds’ operations. At the same time, a Fund will continue to pay its own management fees and expenses with respect to all of its assets, including any portion invested in the shares of other investment companies. It is possible for the Fund to lose money by investing in money market funds. |
Portfolio Turnover Rate
|
||
Fund | Fiscal Year Ended December 31, | |
2018 | 2017 | |
First Trust Dorsey Wright People's Portfolio ETF | 32% | 30% |
First Trust Total US Market AlphaDEX ® ETF | 110% | 112% |
|
|||
Fund | Inception Date |
Fiscal Year Ended
December 31, 2018 |
Fiscal Period Ended
December 31, 2017 |
First Trust Dow 30 Equal Weight ETF | 8/8/2017 | 16% | 20% |
|
||
Fund | Inception Date |
Fiscal Period Ended
December 31, 2018 |
First Trust Lunt U.S. Factor Rotation ETF | 7/25/2018 | 183% |
Name and
Year of Birth |
Position
and Offices with Trust |
Term of
Office and Year First Elected or Appointed |
Principal Occupations
During Past 5 Years |
Number of
Portfolios in the First Trust Fund Complex Overseen by Trustee |
Other
Trusteeships or Directorships Held by Trustee During the Past 5 Years |
TRUSTEE WHO IS AN INTERESTED PERSON OF THE TRUST | |||||
James A. Bowen
(1)
1955 |
Chairman of the Board and Trustee |
• Indefinite term
• Since inception |
Chief Executive Officer, First Trust Advisors L.P. and First Trust Portfolios L.P.; Chairman of the Board of Directors, BondWave LLC (Software Development Company) and Stonebridge Advisors LLC (Investment Advisor) | 163 Portfolios | None |
INDEPENDENT TRUSTEES | |||||
Richard E. Erickson
1951 |
Trustee |
• Indefinite term
• Since inception |
Physician; Officer, Wheaton Orthopedics; Limited Partner, Gundersen Real Estate Limited Partnership (June 1992 to December 2016); Member, Sportsmed LLC (April 2007 to November 2015) | 163 Portfolios | None |
Thomas R. Kadlec
1957 |
Trustee |
• Indefinite term
• Since inception |
President, ADM Investor Services, Inc. (Futures Commission Merchant) | 163 Portfolios | Director of ADM Investor Services, Inc., ADM Investor Services International, Futures Industry Association, and National Futures Association |
Robert F. Keith
1956 |
Trustee |
• Indefinite term
• Since inception |
President, Hibs Enterprises (Financial and Management Consulting) | 163 Portfolios | Director of Trust Company of Illinois |
Niel B. Nielson
1954 |
Trustee |
• Indefinite term
• Since inception |
Senior Advisor (August 2018 to present), Managing Director and Chief Operating Officer (January 2015 to August 2018), Pelita Harapan Educational Foundation (Educational Products and Services); President and Chief Executive Officer (June 2012 to September 2014), Servant Interactive LLC (Educational Products and Services); President and Chief Executive Officer (June 2012 to September 2014), Dew Learning LLC (Educational Products and Services) | 163 Portfolios |
Director of Covenant Transport, Inc.
(May 2003 to May 2014) |
Name and
Year of Birth |
Position and
Offices with Trust |
Term of Office and
Length of Service |
Principal Occupations
During Past 5 Years |
OFFICERS OF THE TRUST | |||
James M. Dykas
1966 |
President and Chief Executive Officer |
• Indefinite term
• Since January 2016 |
Managing Director and Chief Financial Officer (January 2016 to present), Controller (January 2011 to January 2016), Senior Vice President (April 2007 to January 2016), First Trust Advisors L.P. and First Trust Portfolios L.P.; Chief Financial Officer (January 2016 to present), BondWave LLC (Software Development Company) and Stonebridge Advisors LLC (Investment Advisor) |
W. Scott Jardine
1960 |
Secretary and Chief Legal Officer |
• Indefinite term
• Since inception |
General Counsel, First Trust Advisors L.P. and First Trust Portfolios L.P.; Secretary and General Counsel, BondWave LLC; and Secretary, Stonebridge Advisors LLC |
Daniel J. Lindquist
1970 |
Vice President |
• Indefinite term
• Since inception |
Managing Director, First Trust Advisors L.P. and First Trust Portfolios L.P. |
Kristi A. Maher
1966 |
Chief Compliance Officer and Assistant Secretary |
• Indefinite term
• Chief Compliance Officer since January 2011, Assistant Secretary since inception |
Deputy General Counsel, First Trust Advisors L.P. and First Trust Portfolios L.P. |
Donald P. Swade
1972 |
Treasurer, Chief Financial Officer and Chief Accounting Officer |
• Indefinite term
• Since January 2016 |
Senior Vice President (July 2016 to Present), Vice President (April 2012 to July 2016), First Trust Advisors L.P. and First Trust Portfolios L.P. |
Roger F. Testin
1966 |
Vice President |
• Indefinite term
• Since inception |
Senior Vice President, First Trust Advisors L.P. and First Trust Portfolios L.P. |
Stan Ueland
1970 |
Vice President |
• Indefinite term
• Since inception |
Senior Vice President, First Trust Advisors L.P. and First Trust Portfolios L.P. |
(1) | Mr. Bowen is deemed an “interested person” of the Trust due to his position as Chief Executive Officer of First Trust, investment advisor of the Funds. |
Name of Trustee |
Total Compensation
from the Funds (1) |
Total Compensation
from the First Trust Fund Complex (2) |
Richard E. Erickson | $6,064 | $424,710 |
Thomas R. Kadlec | $6,051 | $413,499 |
Robert F. Keith | $6,053 | $414,497 |
Niel B. Nielson | $6,040 | $403,375 |
(1) | The compensation paid by the Funds to the Independent Trustees for the fiscal year ended December 31, 2018 for services to the Funds. |
(2) | The total compensation paid to the Independent Trustees for the calendar year ended December 31, 2018 for services to the 161 portfolios existing in 2018, which consisted of 7 open-end mutual funds, 15 closed-end funds and 139 exchange-traded funds. |
Fund | Annual Management Fee |
First Trust Dorsey Wright People’s Portfolio ETF | 0.60% of average daily net assets |
First Trust Dow 30 Equal Weight ETF | 0.50% of average daily net assets |
First Trust Lunt U.S. Factor Rotation ETF | 0.65% of average daily net assets |
Amount of Management Fees
(Net of Fees Waived and Expenses Reimbursed by First Trust) |
Amount of Fees Waived and Expenses Reimbursed By First Trust
|
|||||
Fund | Fiscal Year Ended December 31, | Fiscal Year Ended December 31, | ||||
2018 | 2017 | 2016 | 2018 | 2017 | 2016 | |
First Trust Total US Market AlphaDEX ® ETF | $0 | $0 | $0 | $135,446 | $110,596 | $112,511 |
Amount of Unitary Fees
|
|||
Fund | Fiscal Year Ended December 31, | ||
2018 | 2017 | 2016 | |
First Trust Dorsey Wright People's Portfolio ETF | $203,932 | $74,969 | $21,199 |
Amount of Unitary Fees
|
|||
Fund | Inception Date |
Fiscal Year Ended
December 31, 2018 |
Fiscal Period Ended
December 31, 2017 |
First Trust Dow 30 Equal Weight ETF | 8/8/2017 | $52,765 | $4,210 |
Amount of Unitary Fees
|
||
Fund | Inception Date |
Fiscal Period Ended
December 31, 2018 |
First Trust Lunt U.S. Factor Rotation ETF | 7/25/2018 | $80,837 |
Name |
Position with
First Trust |
Length of Service
with First Trust |
Principal Occupation During Past Five Years |
Daniel J. Lindquist |
Chairman of the
Investment Committee and Managing Director |
Since 2004 |
Managing Director (2012 to present), Senior Vice
President (2005 to 2012), First Trust Advisors L.P. and First Trust Portfolios L.P. |
Jon C. Erickson | Senior Vice President | Since 1994 |
Senior Vice President, First Trust Advisors L.P. and
First Trust Portfolios L.P. |
David G. McGarel |
Chief Operating Officer
Chief Investment Officer and Managing Director |
Since 1997 |
Chief Operating Officer (2016 to present),
Chief Investment Officer (2012 to present), Managing Director (2012 to present), Senior Vice President (2005 to 2012), First Trust Advisors L.P. and First Trust Portfolios L.P. |
Roger F. Testin | Senior Vice President | Since 2001 |
Senior Vice President, First Trust Advisors L.P. and
First Trust Portfolios L.P. |
Stan Ueland | Senior Vice President | Since 2005 |
Senior Vice President (2012 to present), Vice
President (2005 to 2012), First Trust Advisors L.P. and First Trust Portfolios L.P. |
Chris A. Peterson | Senior Vice President | Since 2000 |
Senior Vice President, First Trust Advisors L.P. and
First Trust Portfolios L.P. |
Investment Committee Member |
Registered
Investment Companies Number of Accounts ($ Assets) |
Other Pooled
Investment Vehicles Number of Accounts ($ Assets) |
Other Accounts
Number of Accounts ($ Assets) |
Dan Lindquist | 107 ($42,069,448,656) | 35 ($908,976,367) | 1,624 ($491,474,369) |
David McGarel | 107 ($42,069,448,656) | 35 ($908,976,367) | 1,624 ($491,474,369) |
Jon Erickson | 107 ($42,069,448,656) | 35 ($908,976,367) | 1,624 ($491,474,369) |
Roger Testin | 107 ($42,069,448,656) | 35 ($908,976,367) | 1,624 ($491,474,369) |
Stan Ueland | 101 ($41,142,109,994) | 34 ($858,519,342) | N/A |
Chris Peterson | 107 ($42,069,448,656) | 15 ($659,340,115) | 1,624 ($491,474,369) |
Aggregate Amount of Brokerage Commissions
|
|||
Fund | Inception Date |
Fiscal Year Ended
December 31, 2018 |
Fiscal Period Ended
December 31, 2017 |
First Trust Dow 30 Equal Weight ETF | 8/8/2017 | $639 | $107 |
Aggregate Amount of Brokerage Commissions
|
||
Fund | Inception Date |
Fiscal Period Ended
December 31, 2018 |
First Trust Lunt U.S. Factor Rotation ETF | 7/25/2018 | $16,828 |
Fund Administration and Accounting
|
|||
Fund | Fiscal Year Ended December 31, | ||
2018 | 2017 | 2016 | |
First Trust Total US Market AlphaDEX ® ETF | $15,210 | $13,194 | $21,344 |
Transmittal
Date (T) |
Next Business
Day (T+1) |
Second Business
Day (T+2) |
|
CREATION OUTSIDE NSCC | |||
Standard Orders |
4:00 p.m. (ET)
Order in proper form must be received by the Distributor. |
11:00 a.m. (ET)
Deposit Securities must be received by a Fund’s account through DTC. 2:00 p.m. (ET) Cash Component must be received by the Custodian. |
Creation Unit
Aggregations will be delivered. |
Standard Orders
Created in Advance of Receipt by the Trust of all or a portion of the Deposit Securities |
4:00 p.m. (ET)
Order in proper form must be received by the Distributor. |
11:00 a.m. (ET)
Available Deposit Securities. Cash in an amount equal to the sum of (i) the Cash Component, plus (ii) 115% of the market value of the undelivered Deposit Securities. |
1:00 p.m.
Missing Deposit Securities are due to the Trust or the Trust may use cash on deposit to purchase missing Deposit Securities. Creation Unit Aggregations will be delivered. |
Custom Orders |
3:00 p.m. (ET)
Order in proper form must be received by the Distributor. Order received after 3:00 p.m. (ET) will be treated as standard orders. |
11:00 a.m. (ET)
Deposit Securities must be received by a Fund’s account through DTC. 2:00 p.m. (ET) Cash Component must be received by the Custodian. |
Creation Unit
Aggregations will be delivered. |
REDEMPTION THROUGH NSCC | |||
Standard Orders |
4:00 p.m. (ET)
Order must be received by the Transfer Agent. Orders received after 4:00 p.m. (ET) will be deemed received on the next business day (T+1) |
No action. |
Fund Securities and
Cash Redemption Amount will be transferred. |
Custom Orders |
3:00 p.m. (ET)
Order must be received by the Transfer Agent Order received after 3:00 p.m. (ET) will be treated as standard orders. |
No action. |
Fund Securities and
Cash Redemption Amount will be transferred. |
Transmittal
Date (T) |
Next Business
Day (T+1) |
Second Business
Day (T+2) |
|
REDEMPTION OUTSIDE NSCC | |||
Standard Orders |
4:00 p.m. (ET)
Order must be received by the Transfer Agent. Order received after 4:00 p.m. (ET) will be deemed received on the next business day (T+1). |
11:00 a.m. (ET)
Fund shares must be delivered through DTC to the Custodian. 2:00 p.m. (ET) Cash Component, if any, is due. *If the order is not in proper form or the Fund shares are not delivered, then the order will not be deemed received as of T. |
Fund Securities and
Cash Redemption Amount are delivered to the redeeming beneficial owner. |
Custom Orders |
3:00 p.m. (ET)
Order must be received by the Transfer Agent. Order received after 3:00 p.m. (ET) will be treated as standard orders. |
11:00 a.m. (ET)
Fund shares must be delivered through DTC to the Custodian. 2:00 p.m. (ET) Cash Component, if any, is due. *If the order is not in proper form or the Fund shares are not delivered, then the order will not be deemed received as of T. |
Fund Securities and
Cash Redemption Amount are delivered to the redeeming beneficial owner. |
Fund |
Total
Non-Expiring Capital Loss Available |
First Trust Dorsey Wright People’s Portfolio ETF | $1,092,046 |
First Trust Dow 30 Equal Weight ETF | 74,553 |
First Trust Lunt U.S. Factor Rotation ETF | 1,663,858 |
First Trust Total US Market AlphaDEX ® ETF | 666,297 |
(1) | Common stocks, real estate investment trusts and other equity securities listed on any national or foreign exchange other than Nasdaq and the London Stock Exchange Alternative Investment Market ( “AIM” ) will be valued at the last sale price on the exchange on which they are principally traded, or the official closing price for Nasdaq and AIM securities. Portfolio securities traded on more than one securities exchange are valued at the last sale price or official closing price, as applicable, on the Business Day as of which such value is being determined at the close of the exchange representing the principal market for such securities. |
(2) | Shares of open-end funds are valued at fair value which is based on NAV per share. |
(3) | Securities traded in the OTC market are fair valued at the mean of their most recent bid and asked price, if available, and otherwise at their closing bid price. |
(4) | Exchange-traded options and futures contracts are valued at the closing price in the market where such contracts are principally traded. If no closing price is available, they will be fair valued at the mean of their most recent bid and asked price, if available, and otherwise at their closing bid price. OTC options and futures contracts are fair valued at the mean of their most recent bid and asked price, if available, and otherwise at their closing bid price. |
(5) | Forward foreign currency contracts are fair valued at the current day’s interpolated foreign exchange rate, as calculated using the current day’s spot rate, and the 30-, 60-, 90- and 180-day forward rates provided by an independent pricing service or by certain independent dealers in such contracts. |
(1) | Fixed-income securities, convertible securities, interest rate swaps, credit default swaps, total return swaps, currency swaps, currency-linked notes, credit-linked notes and other similar instruments will be fair valued using a pricing service. |
(2) | Fixed-income and other debt securities having a remaining maturity of 60 days or less when purchased are fair valued at cost adjusted for amortization of premiums and accretion of discounts (amortized cost), provided the Advisor’s Pricing Committee has determined that the use of amortized cost is an appropriate reflection of fair value given market and issuer specific conditions existing at the time of the determination. Factors that may be considered in determining the appropriateness of the use of amortized cost include, but are not limited to, the following: |
(i) | the credit conditions in the relevant market and changes thereto; |
(ii) | the liquidity conditions in the relevant market and changes thereto; |
(iii) | the interest rate conditions in the relevant market and changes thereto (such as significant changes in interest rates); |
(iv) | issuer-specific conditions (such as significant credit deterioration); and |
(v) | any other market-based data the Advisor’s Pricing Committee considers relevant. In this regard, the Advisor’s Pricing Committee may use last-obtained market-based data to assist it when valuing portfolio securities using amortized cost. |
(3) | Repurchase agreements will be valued as follows. Overnight repurchase agreements will be fair valued at cost when it represents the best estimate of fair value. Term repurchase agreements ( i.e. , those whose maturity exceeds seven days) will be fair valued by the Advisor's Pricing Committee at the average of the bid quotations obtained daily from at least two recognized dealers. |
NAME OF BENEFICIAL OWNER |
% OF
OUTSTANDING SHARES OWNED |
FIRST TRUST DORSEY WRIGHT PEOPLE’S PORTFOLIO ETF | |
National Financial Services LLC | 51.23% |
TD Ameritrade Clearing, Inc. | 17.18% |
Pershing LLC | 10.60% |
LPL Financial Corporation | 7.59% |
FIRST TRUST DOW 30 EQUAL WEIGHT ETF | |
Merrill Lynch, Pierce, Fenner & Smith Incorporated/8862 MLPF | 53.30% |
Hilltop Securities Inc. | 8.96% |
National Financial Services LLC | 7.77% |
LPL Financial Corporation | 6.55% |
Charles Schwab & Co., Inc. | 5.55% |
FIRST TRUST TOTAL US MARKET ALPHADEX ® ETF | |
Pershing LLC | 19.86% |
Merrill Lynch, Pierce, Fenner & Smith Incorporated/8862 MLPF | 14.70% |
LPL Financial Corporation | 9.16% |
Charles Schwab & Co., Inc. | 7.01% |
TD Ameritrade Clearing, Inc. | 6.35% |
National Financial Services LLC | 5.63% |
Wells Fargo Clearing Services, LLC | 5.21% |
FIRST TRUST LUNT U.S. FACTOR ROTATION ETF | |
Pershing LLC | 46.54% |
National Financial Services LLC | 27.09% |
TD Ameritrade Clearing, Inc. | 9.34% |
Raymond James & Associates, Inc. | 6.83% |
LPL Financial Corporation | 6.75% |
➤ | General Recommendation: Generally vote for director nominees, except under the following circumstances: |
➤ | Independent directors comprise 50 percent or less of the board; |
➤ | The non-independent director serves on the audit, compensation, or nominating committee; |
➤ | The company lacks an audit, compensation, or nominating committee so that the full board functions as that committee; or |
➤ | The company lacks a formal nominating committee, even if the board attests that the independent directors fulfill the functions of such a committee. |
➤ | Medical issues/illness; |
➤ | Family emergencies; and |
➤ | Missing only one meeting (when the total of all meetings is three or fewer). |
➤ | If the proxy disclosure is unclear and insufficient to determine whether a director attended at least 75 percent of the aggregate of his/her board and committee meetings during his/her period of service, vote against or withhold from the director(s) in question. |
1 | In general, companies with a plurality vote standard use “Withhold” as the contrary vote option in director elections; companies with a majority vote standard use “Against”. However, it will vary by company and the proxy must be checked to determine the valid contrary vote option for the particular company. |
2 | New nominees who served for only part of the fiscal year are generally exempted from the attendance policy. |
➤ | Sit on more than five public company boards; or |
➤ | Are CEOs of public companies who sit on the boards of more than two public companies besides their own — withhold only at their outside boards 3 . |
➤ | A firm commitment, as stated in the proxy statement, to appoint at least one female to the board in the near term; |
➤ | The presence of a female on the board at the preceding annual meeting; or |
➤ | Other relevant factors as applicable. |
➤ | The board failed to act on a shareholder proposal that received the support of a majority of the shares cast in the previous year or failed to act on a management proposal seeking to ratify an existing charter/bylaw provision that received opposition of a majority of the shares cast in the previous year. Factors that will be considered are: |
➤ | Disclosed outreach efforts by the board to shareholders in the wake of the vote; |
➤ | Rationale provided in the proxy statement for the level of implementation; |
➤ | The subject matter of the proposal; |
➤ | The level of support for and opposition to the resolution in past meetings; |
➤ | Actions taken by the board in response to the majority vote and its engagement with shareholders; |
➤ | The continuation of the underlying issue as a voting item on the ballot (as either shareholder or management proposals); and |
➤ | Other factors as appropriate. |
➤ | The board failed to act on takeover offers where the majority of shares are tendered; |
➤ | At the previous board election, any director received more than 50 percent withhold/against votes of the shares cast and the company has failed to address the issue(s) that caused the high withhold/against vote. |
➤ | The company’s previous say-on-pay received the support of less than 70 percent of votes cast. Factors that will be considered are: |
➤ | The company's response, including: |
➤ | Disclosure of engagement efforts with major institutional investors, including the frequency and timing of engagements and the company participants (including whether independent directors participated); |
➤ | Disclosure of the specific concerns voiced by dissenting shareholders that led to the say-on-pay opposition; |
➤ | Disclosure of specific and meaningful actions taken to address shareholders' concerns; |
➤ | Other recent compensation actions taken by the company; |
➤ | Whether the issues raised are recurring or isolated; |
➤ | The company's ownership structure; and |
3 | Although all of a CEO’s subsidiary boards with publicly-traded common stock will be counted as separate boards, ISS will not recommend a withhold vote for the CEO of a parent company board or any of the controlled (>50 percent ownership) subsidiaries of that parent but may do so at subsidiaries that are less than 50 percent controlled and boards outside the parent/subsidiary relationships. |
➤ | Whether the support level was less than 50 percent, which would warrant the highest degree of responsiveness. |
➤ | The board implements an advisory vote on executive compensation on a less frequent basis than the frequency that received the plurality of votes cast. |
➤ | The company has a poison pill that was not approved by shareholders 5 . However, vote case-by-case on nominees if the board adopts an initial pill with a term of one year or less, depending on the disclosed rationale for the adoption, and other factors as relevant (such as a commitment to put any renewal to a shareholder vote). |
➤ | The board makes a material adverse modification to an existing pill, including, but not limited to, extension, renewal, or lowering the trigger, without shareholder approval. |
➤ | A classified board structure; |
➤ | A supermajority vote requirement; |
➤ | Either a plurality vote standard in uncontested director elections, or a majority vote standard in contested elections; |
➤ | The inability of shareholders to call special meetings; |
➤ | The inability of shareholders to act by written consent; |
➤ | A multi-class capital structure; and/or |
➤ | A non-shareholder-approved poison pill. |
➤ | The board's rationale for adopting the bylaw/charter amendment without shareholder ratification; |
4 | A “new nominee” is any current nominee who has not already been elected by shareholders and who joined the board after the problematic action in question transpired. If ISS cannot determine whether the nominee joined the board before or after the problematic action transpired, the nominee will be considered a “new nominee” if he or she joined the board within the 12 months prior to the upcoming shareholder meeting. |
5 | Public shareholders only, approval prior to a company’s becoming public is insufficient. |
➤ | Disclosure by the company of any significant engagement with shareholders regarding the amendment; |
➤ | The level of impairment of shareholders' rights caused by the board's unilateral amendment to the bylaws/charter; |
➤ | The board's track record with regard to unilateral board action on bylaw/charter amendments or other entrenchment provisions; |
➤ | The company's ownership structure; |
➤ | The company's existing governance provisions; |
➤ | The timing of the board's amendment to the bylaws/charter in connection with a significant business development; and, |
➤ | Other factors, as deemed appropriate, that may be relevant to determine the impact of the amendment on shareholders. |
➤ | Classified the board; |
➤ | Adopted supermajority vote requirements to amend the bylaws or charter; or |
➤ | Eliminated shareholders' ability to amend bylaws. |
➤ | The level of impairment of shareholders' rights; |
➤ | The disclosed rationale; |
➤ | The ability to change the governance structure (e.g., limitations on shareholders’ right to amend the bylaws or charter, or supermajority vote requirements to amend the bylaws or charter); |
➤ | The ability of shareholders to hold directors accountable through annual director elections, or whether the company has a classified board structure; |
➤ | Any reasonable sunset provision; and |
➤ | Other relevant factors. |
➤ | The presence of a shareholder proposal addressing the same issue on the same ballot; |
➤ | The board's rationale for seeking ratification; |
➤ | Disclosure of actions to be taken by the board should the ratification proposal fail; |
➤ | Disclosure of shareholder engagement regarding the board’s ratification request; |
➤ | The level of impairment to shareholders' rights caused by the existing provision; |
➤ | The history of management and shareholder proposals on the provision at the company’s past meetings; |
➤ | Whether the current provision was adopted in response to the shareholder proposal; |
➤ | The company's ownership structure; and |
➤ | Previous use of ratification proposals to exclude shareholder proposals. |
➤ | The company’s governing documents impose undue restrictions on shareholders’ ability to amend the bylaws. Such restrictions include but are not limited to: outright prohibition on the submission of binding shareholder proposals or share ownership requirements or time holding requirements in excess of SEC Rule 14a-8. Vote against on an ongoing basis. |
➤ | The non-audit fees paid to the auditor are excessive; |
➤ | The company receives an adverse opinion on the company’s financial statements from its auditor; or |
➤ | There is persuasive evidence that the Audit Committee entered into an inappropriate indemnification agreement with its auditor that limits the ability of the company, or its shareholders, to pursue legitimate legal recourse against the audit firm. |
➤ | Poor accounting practices are identified that rise to a level of serious concern, such as: fraud; misapplication of GAAP; and material weaknesses identified in Section 404 disclosures. Examine the severity, breadth, chronological sequence, and duration, as well as the company’s efforts at remediation or corrective actions, in determining whether withhold/against votes are warranted. |
➤ | There is an unmitigated misalignment between CEO pay and company performance (pay for performance) (see Primary Evaluation Factors for Executive Pay); |
➤ | The company maintains significant problematic pay practices (see Problematic Pay Practices); or |
➤ | The board exhibits a significant level of poor communication and responsiveness (see Compensation Committee Communications and Responsiveness) to shareholders. |
➤ | The company fails to include a Say on Pay ballot item when required under SEC provisions, or under the company’s declared frequency of say on pay; or |
➤ | The company fails to include a Frequency of Say on Pay ballot item when required under SEC provisions. |
➤ | The presence of an anti-pledging policy, disclosed in the proxy statement, that prohibits future pledging activity; |
➤ | The magnitude of aggregate pledged shares in terms of total common shares outstanding, market value, and trading volume; |
➤ | Disclosure of progress or lack thereof in reducing the magnitude of aggregate pledged shares over time; |
➤ | Disclosure in the proxy statement that shares subject to stock ownership and holding requirements do not include pledged company stock; and |
➤ | Any other relevant factors. |
➤ | Material failures of governance, stewardship, risk oversight 6 , or fiduciary responsibilities at the company; |
➤ | Failure to replace management as appropriate; or |
➤ | Egregious actions related to a director’s service on other boards that raise substantial doubt about his or her ability to effectively oversee management and serve the best interests of shareholders at any company. |
➤ | General Recommendation: In cases where companies are targeted in connection with public “vote-no” campaigns, evaluate director nominees under the existing governance policies for voting on director nominees in uncontested elections. Take into consideration the arguments submitted by shareholders and other publicly available information. |
➤ | General Recommendation: Vote case-by-case on the election of directors in contested elections, considering the following factors: |
➤ | Long-term financial performance of the company relative to its industry; |
➤ | Management’s track record; |
➤ | Background to the contested election; |
➤ | Nominee qualifications and any compensatory arrangements; |
➤ | Strategic plan of dissident slate and quality of the critique against management; |
➤ | Likelihood that the proposed goals and objectives can be achieved (both slates); and |
➤ | Stock ownership positions. |
6 | Examples of failure of risk oversight include but are not limited to: bribery; large or serial fines or sanctions from regulatory bodies; significant adverse legal judgments or settlement; or hedging of company stock. |
➤ | General Recommendation: Generally vote for shareholder proposals requiring that the chairman’s position be filled by an independent director, taking into consideration the following: |
➤ | The scope of the proposal; |
➤ | The company's current board leadership structure; |
➤ | The company's governance structure and practices; |
➤ | Company performance; and |
➤ | Any other relevant factors that may be applicable. |
➤ | General Recommendation: Generally vote for management and shareholder proposals for proxy access with the following provisions: |
➤ | Ownership threshold: maximum requirement not more than three percent (3%) of the voting power; |
➤ | Ownership duration: maximum requirement not longer than three (3) years of continuous ownership for each member of the nominating group; |
➤ | Aggregation: minimal or no limits on the number of shareholders permitted to form a nominating group; |
➤ | Cap: cap on nominees of generally twenty-five percent (25%) of the board. |
➤ | General Recommendation: Generally vote against management proposals to ratify provisions of the company’s existing charter or bylaws, unless these governance provisions align with best practice. |
➤ | The presence of a shareholder proposal addressing the same issue on the same ballot; |
➤ | The board's rationale for seeking ratification; |
➤ | Disclosure of actions to be taken by the board should the ratification proposal fail; |
➤ | Disclosure of shareholder engagement regarding the board’s ratification request; |
➤ | The level of impairment to shareholders' rights caused by the existing provision; |
➤ | The history of management and shareholder proposals on the provision at the company’s past meetings; |
➤ | Whether the current provision was adopted in response to the shareholder proposal; |
➤ | The company's ownership structure; and |
➤ | Previous use of ratification proposals to exclude shareholder proposals. |
➤ | General Recommendation: Vote for proposals to increase the number of authorized common shares where the primary purpose of the increase is to issue shares in connection with a transaction on the same ballot that warrants support. |
➤ | Past Board Performance: |
➤ | The company's use of authorized shares during the last three years |
➤ | The Current Request: |
➤ | Disclosure in the proxy statement of the specific purposes of the proposed increase; |
➤ | Disclosure in the proxy statement of specific and severe risks to shareholders of not approving the request; and |
➤ | The dilutive impact of the request as determined relative to an allowable increase calculated by ISS (typically 100 percent of existing authorized shares) that reflects the company's need for shares and total shareholder returns. |
A. | Most companies: 100 percent of existing authorized shares. |
B. | Companies with less than 50 percent of existing authorized shares either outstanding or reserved for issuance: 50 percent of existing authorized shares. |
C. | Companies with one- and three-year total shareholder returns (TSRs) in the bottom 10 percent of the U.S. market as of the end of the calendar quarter that is closest to their most recent fiscal year end: 50 percent of existing authorized shares. |
D. | Companies at which both conditions (B and C) above are both present: 25 percent of existing authorized shares. |
➤ | General Recommendation: Vote case-by-case on mergers and acquisitions. Review and evaluate the merits and drawbacks of the proposed transaction, balancing various and sometimes countervailing factors including: |
➤ | Valuation - Is the value to be received by the target shareholders (or paid by the acquirer) reasonable? While the fairness opinion may provide an initial starting point for assessing valuation reasonableness, emphasis is placed on the offer premium, market reaction, and strategic rationale. |
➤ | Market reaction - How has the market responded to the proposed deal? A negative market reaction should cause closer scrutiny of a deal. |
➤ | Strategic rationale - Does the deal make sense strategically? From where is the value derived? Cost and revenue synergies should not be overly aggressive or optimistic, but reasonably achievable. Management should also have a favorable track record of successful integration of historical acquisitions. |
➤ | Negotiations and process - Were the terms of the transaction negotiated at arm's-length? Was the process fair and equitable? A fair process helps to ensure the best price for shareholders. Significant negotiation "wins" can also signify the deal makers' competency. The comprehensiveness of the sales process (e.g., full auction, partial auction, no auction) can also affect shareholder value. |
➤ | Conflicts of interest - Are insiders benefiting from the transaction disproportionately and inappropriately as compared to non-insider shareholders? As the result of potential conflicts, the directors and officers of the company may be more likely to vote to approve a merger than if they did not hold these interests. Consider whether these interests may have influenced these directors and officers to support or recommend the merger. The CIC figure presented in the "ISS Transaction Summary" section of this report is an aggregate figure that can in certain cases be a misleading indicator of the true value transfer from shareholders to insiders. Where such figure appears to be excessive, analyze the underlying assumptions to determine whether a potential conflict exists. |
➤ | Governance - Will the combined company have a better or worse governance profile than the current governance profiles of the respective parties to the transaction? If the governance profile is to change for the worse, the burden is on the company to prove that other issues (such as valuation) outweigh any deterioration in governance. |
1. | Maintain appropriate pay-for-performance alignment, with emphasis on long-term shareholder value: This principle encompasses overall executive pay practices, which must be designed to attract, retain, and appropriately motivate the key employees who drive shareholder value creation over the long term. It will take into consideration, among other factors, the link between pay and performance; the mix between fixed and variable pay; performance goals; and equity-based plan costs; |
2. | Avoid arrangements that risk “pay for failure”: This principle addresses the appropriateness of long or indefinite contracts, excessive severance packages, and guaranteed compensation; |
3. | Maintain an independent and effective compensation committee: This principle promotes oversight of executive pay programs by directors with appropriate skills, knowledge, experience, and a sound process for compensation decision-making (e.g., including access to independent expertise and advice when needed); |
4. | Provide shareholders with clear, comprehensive compensation disclosures: This principle underscores the importance of informative and timely disclosures that enable shareholders to evaluate executive pay practices fully and fairly; |
5. | Avoid inappropriate pay to non-executive directors: This principle recognizes the interests of shareholders in ensuring that compensation to outside directors is reasonable and does not compromise their independence and ability to make appropriate judgments in overseeing managers’ pay and performance. At the market level, it may incorporate a variety of generally accepted best practices. |
➤ | General Recommendation: Vote case-by-case on ballot items related to executive pay and practices, as well as certain aspects of outside director compensation. |
Vote against Advisory Votes on Executive Compensation (Say-on-Pay or “SOP”) if: |
➤ | There is an unmitigated misalignment between CEO pay and company performance (pay for performance) (see Primary Evaluation Factors for Executive Pay); |
➤ | The company maintains significant problematic pay practices (see Problematic Pay Practices); |
➤ | The board exhibits a significant level of poor communication and responsiveness (see Compensation Committee Communications and Responsiveness) to shareholders. |
➤ | There is no SOP on the ballot, and an against vote on an SOP is warranted due to pay-for-performance misalignment, problematic pay practices, or the lack of adequate responsiveness on compensation issues raised previously, or a combination thereof; |
➤ | The board fails to respond adequately to a previous SOP proposal that received less than 70 percent support of votes cast; |
➤ | The company has recently practiced or approved problematic pay practices, such as option repricing or option backdating; or |
➤ | The situation is egregious. |
1. | Peer Group 8 Alignment: |
➤ | The degree of alignment between the company's annualized TSR rank and the CEO's annualized total pay rank within a peer group, each measured over a three-year period. |
➤ | The rankings of CEO total pay and company financial performance within a peer group, each measured over a three-year period. |
➤ | The multiple of the CEO's total pay relative to the peer group median in the most recent fiscal year. |
2. | Absolute Alignment 9 – the absolute alignment between the trend in CEO pay and company TSR over the prior five fiscal years – i.e. , the difference between the trend in annual pay changes and the trend in annualized TSR during the period. |
➤ | The ratio of performance- to time-based incentive awards; |
➤ | The overall ratio of performance-based compensation; |
➤ | The completeness of disclosure and rigor of performance goals; |
➤ | The company's peer group benchmarking practices; |
➤ | Actual results of financial/operational metrics, both absolute and relative to peers; |
➤ | Special circumstances related to, for example, a new CEO in the prior FY or anomalous equity grant practices (e.g., bi-annual awards); |
➤ | Realizable pay 10 compared to grant pay; and |
➤ | Any other factors deemed relevant. |
➤ | Problematic practices related to non-performance-based compensation elements; |
➤ | Incentives that may motivate excessive risk-taking or present a windfall risk; and |
➤ | Pay decisions that circumvent pay-for-performance, such as options backdating or waiving performance requirements. |
7 | The Russell 3000E Index includes approximately 4,000 of the largest U.S. equity securities. |
8 | The revised peer group is generally comprised of 14-24 companies that are selected using market cap, revenue (or assets for certain financial firms), GICS industry group, and company's selected peers' GICS industry group, with size constraints, via a process designed to select peers that are comparable to the subject company in terms of revenue/assets and industry, and also within a market-cap bucket that is reflective of the company's. For Oil, Gas & Consumable Fuels companies, market cap is the only size determinant. |
9 | Only Russell 3000 Index companies are subject to the Absolute Alignment analysis. |
10 | ISS research reports include realizable pay for S&P1500 companies. |
➤ | Repricing or replacing of underwater stock options/SARS without prior shareholder approval (including cash buyouts and voluntary surrender of underwater options); |
➤ | Extraordinary perquisites or tax gross-ups; |
➤ | New or materially amended agreements that provide for: |
➤ | Excessive termination or CIC severance payments (generally exceeding 3 times base salary and average/target/most recent bonus); |
➤ | CIC severance payments without involuntary job loss or substantial diminution of duties ("single" or "modified single" triggers) or in connection with a problematic Good Reason definition; |
➤ | CIC excise tax gross-up entitlements (including "modified" gross-ups); |
➤ | Multi-year guaranteed awards that are not at risk due to rigorous performance conditions; |
➤ | Liberal CIC definition combined with any single-trigger CIC benefits; |
➤ | Insufficient executive compensation disclosure by externally-managed issuers (EMIs) such that a reasonable assessment of pay programs and practices applicable to the EMI's executives is not possible; |
➤ | Any other provision or practice deemed to be egregious and present a significant risk to investors. |
➤ | Failure to respond to majority-supported shareholder proposals on executive pay topics; or |
➤ | Failure to adequately respond to the company's previous say-on-pay proposal that received the support of less than 70 percent of votes cast, taking into account: |
➤ | The company's response, including: |
➤ | Disclosure of engagement efforts with major institutional investors, including the frequency and timing of engagements and the company participants (including whether independent directors participated); |
➤ | Disclosure of the specific concerns voiced by dissenting shareholders that led to the say-on-pay opposition; |
➤ | Disclosure of specific and meaningful actions taken to address shareholders’ concerns; |
➤ | Other recent compensation actions taken by the company; |
➤ | Whether the issues raised are recurring or isolated; |
➤ | The company's ownership structure; and |
➤ | Whether the support level was less than 50 percent, which would warrant the highest degree of responsiveness. |
➤ | General Recommendation: Vote case-by-case on certain equity-based compensation plans 11 depending on a combination of certain plan features and equity grant practices, where positive factors may counterbalance negative factors, and vice versa, as evaluated using an "Equity Plan Scorecard" (EPSC) approach with three pillars: |
➤ | Plan Cost: The total estimated cost of the company’s equity plans relative to industry/market cap peers, measured by the company's estimated Shareholder Value Transfer (SVT) in relation to peers and considering both: |
➤ | SVT based on new shares requested plus shares remaining for future grants, plus outstanding unvested/unexercised grants; and |
➤ | SVT based only on new shares requested plus shares remaining for future grants. |
➤ | Plan Features: |
➤ | Quality of disclosure around vesting upon a change in control (CIC); |
➤ | Discretionary vesting authority; |
➤ | Liberal share recycling on various award types; |
➤ | Lack of minimum vesting period for grants made under the plan; |
➤ | Dividends payable prior to award vesting. |
➤ | Grant Practices: |
➤ | The company’s three-year burn rate relative to its industry/market cap peers; |
➤ | Vesting requirements in CEO's recent equity grants (3-year look-back); |
➤ | The estimated duration of the plan (based on the sum of shares remaining available and the new shares requested, divided by the average annual shares granted in the prior three years); |
➤ | The proportion of the CEO's most recent equity grants/awards subject to performance conditions; |
➤ | Whether the company maintains a sufficient claw-back policy; |
➤ | Whether the company maintains sufficient post-exercise/vesting share-holding requirements. |
➤ | Awards may vest in connection with a liberal change-of-control definition; |
➤ | The plan would permit repricing or cash buyout of underwater options without shareholder approval (either by expressly permitting it — for NYSE and Nasdaq listed companies — or by not prohibiting it when the company has a history of repricing — for non-listed companies); |
➤ | The plan is a vehicle for problematic pay practices or a significant pay-for-performance disconnect under certain circumstances; |
➤ | The plan is excessively dilutive to shareholders' holdings; or |
➤ | Any other plan features are determined to have a significant negative impact on shareholder interests. |
11 | Proposals evaluated under the EPSC policy generally include those to approve or amend (1) stock option plans for employees and/or employees and directors, (2) restricted stock plans for employees and/or employees and directors, and (3) omnibus stock incentive plans for employees and/or employees and directors; amended plans will be further evaluated case-by-case. |
➤ | General Recommendation: Generally vote case-by-case, examining primarily whether implementation of the proposal is likely to enhance or protect shareholder value. The following factors will be considered: |
➤ | If the issues presented in the proposal are more appropriately or effectively dealt with through legislation or government regulation; |
➤ | If the company has already responded in an appropriate and sufficient manner to the issue(s) raised in the proposal; |
➤ | Whether the proposal's request is unduly burdensome (scope or timeframe) or overly prescriptive; |
➤ | The company's approach compared with any industry standard practices for addressing the issue(s) raised by the proposal; |
➤ | Whether there are significant controversies, fines, penalties, or litigation associated with the company's environmental or social practices; |
➤ | If the proposal requests increased disclosure or greater transparency, whether reasonable and sufficient information is currently available to shareholders from the company or from other publicly available sources; and |
➤ | If the proposal requests increased disclosure or greater transparency, whether implementation would reveal proprietary or confidential information that could place the company at a competitive disadvantage. |
➤ | General Recommendation: Generally vote for resolutions requesting that a company disclose information on the financial, physical, or regulatory risks it faces related to climate change on its operations and investments or on how the company identifies, measures, and manages such risks, considering: |
➤ | Whether the company already provides current, publicly-available information on the impact that climate change may have on the company as well as associated company policies and procedures to address related risks and/or opportunities; |
➤ | The company’s level of disclosure compared to industry peers; and |
➤ | Whether there are significant controversies, fines, penalties, or litigation associated with the company’s climate change-related performance. |
➤ | The company already discloses current, publicly-available information on the impacts that GHG emissions may have on the company as well as associated company policies and procedures to address related risks and/or opportunities; |
➤ | The company's level of disclosure is comparable to that of industry peers; and |
➤ | There are no significant, controversies, fines, penalties, or litigation associated with the company's GHG emissions. |
➤ | Whether the company provides disclosure of year-over-year GHG emissions performance data; |
➤ | Whether company disclosure lags behind industry peers; |
➤ | The company's actual GHG emissions performance; |
➤ | The company's current GHG emission policies, oversight mechanisms, and related initiatives; and |
➤ | Whether the company has been the subject of recent, significant violations, fines, litigation, or controversy related to GHG emissions. |
➤ | General Recommendation: Generally vote for requests for reports on a company's efforts to diversify the board, unless: |
➤ | The gender and racial minority representation of the company’s board is reasonably inclusive in relation to companies of similar size and business; and |
➤ | The board already reports on its nominating procedures and gender and racial minority initiatives on the board and within the company. |
➤ | The degree of existing gender and racial minority diversity on the company’s board and among its executive officers; |
➤ | The level of gender and racial minority representation that exists at the company’s industry peers; |
➤ | The company’s established process for addressing gender and racial minority board representation; |
➤ | Whether the proposal includes an overly prescriptive request to amend nominating committee charter language; |
➤ | The independence of the company’s nominating committee; |
➤ | Whether the company uses an outside search firm to identify potential director nominees; and |
➤ | Whether the company has had recent controversies, fines, or litigation regarding equal employment practices. |
➤ | General Recommendation: Generally vote case-by-case on requests for reports on a company's pay data by gender, or a report on a company’s policies and goals to reduce any gender pay gap, taking into account: |
➤ | The company's current policies and disclosure related to both its diversity and inclusion policies and practices and its compensation philosophy and fair and equitable compensation practices; |
➤ | Whether the company has been the subject of recent controversy, litigation, or regulatory actions related to gender pay gap issues; and |
➤ | Whether the company's reporting regarding gender pay gap policies or initiatives is lagging its peers. |
➤ | How the company's recycling programs compare to similar programs of its industry peers. |
➤ | General Recommendation: Generally vote for proposals requesting that a company report on its policies, initiatives, and oversight mechanisms related to social, economic, and environmental sustainability, unless: |
➤ | The company already discloses similar information through existing reports or policies such as an environment, health, and safety (EHS) report; a comprehensive code of corporate conduct; and/or a diversity report; or |
➤ | The company has formally committed to the implementation of a reporting program based on Global Reporting Initiative (GRI) guidelines or a similar standard within a specified time frame. |
➤ | General Recommendation: Vote case-by-case on proposals requesting information on a company’s lobbying (including direct, indirect, and grassroots lobbying) activities, policies, or procedures, considering: |
➤ | The company’s current disclosure of relevant lobbying policies, and management and board oversight; |
➤ | The company’s disclosure regarding trade associations or other groups that it supports, or is a member of, that engage in lobbying activities; and |
➤ | Recent significant controversies, fines, or litigation regarding the company’s lobbying-related activities. |
➤ | General Recommendation: Generally vote for proposals requesting greater disclosure of a company's political contributions and trade association spending policies and activities, considering: |
➤ | The company's policies, and management and board oversight related to its direct political contributions and payments to trade associations or other groups that may be used for political purposes; |
➤ | The company's disclosure regarding its support of, and participation in, trade associations or other groups that may make political contributions; and |
➤ | Recent significant controversies, fines, or litigation related to the company's political contributions or political activities. |
First Trust Exchange-Traded Fund
Part C – Other Information
Item 28. | Exhibits |
Exhibit No. Description
(a) | (1) Amended and Restated Declaration of Trust. (16) |
(2) Amended and Restated Establishment and Designation of Series. (18)
(b) | By-Laws of the Registrant. (12) |
(c) | Not applicable. |
(d) | (1) Investment Management Agreement, dated December 6, 2010. (12) |
(2) Amendment to Schedule A of the Investment Management Agreement. (14)
(3) Investment Management Agreement, dated July 20, 2017, relating to First Trust Dow 30 Equal Weight ETF. (17)
(4) Investment Management Agreement, dated July 17, 2018, relating to First Trust Lunt U.S. Factor Rotation ETF. (19)
(5) Expense Reimbursement, Fee Waiver and Recovery Agreement. (12)
(6) Amendment of Exhibit A of the Expense Reimbursement Letter. (20)
(e) | (1) Distribution Agreement. (12) |
(2) Amendment to Exhibit A of the Distribution Agreement. (19)
(f) | Not Applicable. |
(g) | (1) Custody Agreement between the Registrant and The Bank of New York. (1) |
(2) Amendment to Schedule II of the Custody Agreement. (19)
(h) | (1) Transfer Agency Agreement between the Registrant and The Bank of New York. (1) |
(2) Amendment to Exhibit A of the Transfer Agency Agreement. (19)
(3) Administration and Accounting Agreement between the Registrant and The Bank of New York. (1)
(4) Amendment to Exhibit A of the Administration and Accounting Agreement. (19)
(5) Sublicense Agreement by and among the First Trust Morningstar® Dividend Leaders SM Index Fund, Morningstar, Inc. and First Trust Advisors L.P., dated March 14, 2006. (2)
(6) Sublicense Agreement by and among the First Trust IPOX-100 Index Fund, IPOX Schuster LLC and First Trust Advisors L.P., dated April 5, 2006. (3)
(7) Sublicense Agreement by and between First Trust Advisors L.P. and First Trust NASDAQ-100 Equal Weighted Index Fund, dated April 24, 2006. (4)
(8) Sublicense Agreement by and between First Trust Advisors L.P. and First Trust NASDAQ-100-Technology Sector Index Fund, dated April 24, 2006. (4)
(9) Sublicense Agreement by and among the First Trust Amex Biotechnology Index Fund, the American Stock Exchange LLC and First Trust Advisors L.P., dated June 22, 2006. (5)
(10) Sublicense Agreement by and among First Trust Dow Jones Internet Index Fund, Dow Jones & Company, Inc. and First Trust Advisors L.P., dated June 22, 2006. (5)
(11) Sublicense Agreement by and between First Trust Advisors L.P. and First Trust Value Line® Dividend Index Fund, dated October 4, 2006. (6)
(12) Sublicense Agreement by and between First Trust Advisors L.P. and First Trust Value Line® 100 Exchange-Traded Fund, dated February 4, 2007. (8)
(13) Board Administration Services Agreement among PFPC, Inc. and First Trust Exchange-Traded Fund, dated February 5, 2007. (9)
(14) Sublicense Agreement by and between First Trust Advisors L.P., Clean Edge, Inc. and First Trust NASDAQ® Clean Edge® U.S. Liquid Series Index Fund, dated February 7, 2007. (7)
(15) Sublicense Agreement by and between First Trust Advisors L.P., and First Trust NASDAQ-100 Ex-Technology Sector IndexSM Fund, dated February 7, 2007. (7)
(16) Sublicense Agreement by and among First Trust ISE Chindia Index Fund, International Securities Exchange, LLC and First Trust Advisors L.P., dated April 25, 2007. (10)
(17) Sublicense Agreement by and among First Trust ISE-Revere Natural Gas Index Fund, International Securities Exchange, LLC and First Trust Advisors L.P., dated April 25, 2007. (10)
(18) Sublicense Agreement by and among First Trust ISE Water Index Fund, International Securities Exchange, LLC and First Trust Advisors L.P., dated April 25, 2007. (10)
(19) Sublicense Agreement by and between First Trust S&P REIT Index Fund and First Trust Advisors L.P., dated April 26, 2007. (9)
(20) Sublicense Agreement by and between First Trust Advisors L.P., American Bankers Association and First Trust NASDAQ® ABA Community Bank Index Fund, dated June 30, 2009. (11)
(21) Sublicense Agreement by and among First Trust Exchange-Traded Fund, on behalf of its series, First Trust Total US Market AlphaDEX ETF, The NASDAQ OMX Group, Inc. and First Trust Portfolios L.P., dated January 9, 2015. (14)
(22) Sublicense Agreement by and among First Trust Exchange-Traded Fund, on behalf of its series, First Trust Lunt U.S. Factor Rotation ETF and First Trust Advisors L.P., dated April 10, 2018. (19)
(23) Subscription Agreement. (1)
(24) Form of Participant Agreement. (19)
(i) | Not Applicable. |
(j) | Consent of Independent Registered Public Accounting Firm. (20) |
(k) | Not Applicable. |
(l) | Not Applicable. |
(m) | (1) 12b-1 Service Plan. (1) |
(2) Exhibit A of the 12b-1 Service Plan. (19)
(3) 12b-1 Plan Extension Letter Agreement. (20)
(n) | Not Applicable. |
(o) | Not Applicable. |
(p) | (1) First Trust Advisors L.P., First Trust Portfolios L.P. Code of Ethics, amended on July 1, 2013. (13) |
(2) First Trust Funds Code of Ethics, amended on October 30, 2013. (13)
(q) | Powers of Attorney for Messrs. Bowen, Erickson, Kadlec, Keith and Nielson authorizing James A. Bowen, W. Scott Jardine, James M. Dykas, Kristi A. Maher and Eric F. Fess to execute the Registration Statement. (15) |
__________________
(1) | Incorporated by reference to the Registrant’s Registration Statement on Form N-1A (File No. 333-125751) filed on September 26, 2005. |
(2) | Incorporated by reference to the Registrant’s Registration Statement on Form N-1A (File No. 333-125751) filed on March 15, 2006. |
(3) | Incorporated by reference to the Registrant’s Registration Statement on Form N-1A (File No. 333-125751) filed on April 13, 2006. |
(4) | Incorporated by reference to the Registrant’s Registration Statement on Form N-1A (File No. 333-125751) filed on April 25, 2006. |
(5) | Incorporated by reference to the Registrant’s Registration Statement on Form N-1A (File No. 333-125751) filed on June 23, 2006. |
(6) | Incorporated by reference to the Registrant’s Registration Statement on Form N-1A (File No. 333-125751) filed on October 13, 2006. |
(7) | Incorporated by reference to the Registrant’s Registration Statement on Form N-1A (File No. 333-125751) filed on February 14, 2007. |
(8) | Incorporated by reference to the Registrant’s Registration Statement on Form N-1A (File No. 333-125751) filed on March 21, 2007. |
(9) | Incorporated by reference to the Registrant’s Registration Statement on Form N-1A (File No. 333-125751) filed on April 27, 2007. |
(10) | Incorporated by reference to the Registrant’s Registration Statement on Form N-1A (File No. 333-125751) filed on May 11, 2007. |
(11) | Incorporated by reference to the Registrant’s Registration Statement on Form N-1A (File No. 333-125751) filed on May 3, 2010. |
(12) | Incorporated by reference to the Registrant’s Registration Statement on Form N-1A (File No. 333-125751) filed on April 27, 2011. |
(13) | Incorporated by reference to the Registrant’s Registration Statement on Form N-1A (File No. 333-125751) filed on April 30, 2014. |
(14) | Incorporated by reference to the Registrant’s Registration Statement on Form N-1A (File No. 333-125751) filed on April 23, 2015. |
(15) | Incorporated by reference to the Registrant’s Registration Statement on Form N-1A (File No. 333-125751) filed on April 27, 2016. |
(16) | Incorporated by reference to the Registrant’s Registration Statement on Form N-1A (File No. 333-125751) filed on July 24, 2017. |
(17) | Incorporated by reference to the Registrant’s Registration Statement on Form N-1A (File No. 333-125751) filed on July 28, 2017. |
(18) | Incorporated by reference to the Registrant’s Registration Statement on Form N-1A (File No. 333-125751) filed on April 11, 2018. |
(19) | Incorporated by reference to the Registrant’s Registration Statement on Form N-1A (File No. 333-125751) filed on July 19, 2018. |
(20) | Filed herewith. |
Item 29. | Persons Controlled by or under Common Control with Registrant |
Not applicable.
Item 30. | Indemnification |
Section 9.5 of the Registrant’s Declaration of Trust provides as follows:
Section 9.5. Indemnification and Advancement of Expenses. Subject to the exceptions and limitations contained in this Section 9.5, every person who is, or has been, a Trustee, officer, or employee of the Trust, including persons who serve at the request of the Trust as directors, trustees, officers, employees or agents of another organization in which the Trust has an interest as a shareholder, creditor or otherwise (hereinafter referred to as a "Covered Person" ), shall be indemnified by the Trust to the fullest extent permitted by law against liability and against all expenses reasonably incurred or paid by him or in connection with any claim, action, suit or proceeding in which he becomes involved as a party or otherwise by virtue of his being or having been such a Trustee, director, officer, employee or agent and against amounts paid or incurred by him in settlement thereof.
No indemnification shall be provided hereunder to a Covered Person to the extent such indemnification is prohibited by applicable federal law.
The rights of indemnification herein provided may be insured against by policies maintained by the Trust, shall be severable, shall not affect any other rights to which any Covered Person may now or hereafter be entitled, shall continue as to a person who has ceased to be such a Covered Person and shall inure to the benefit of the heirs, executors and administrators of such a person.
Subject to applicable federal law, expenses of preparation and presentation of a defense to any claim, action, suit or proceeding subject to a claim for indemnification under this Section 9.5 shall be advanced by the Trust prior to final disposition thereof upon receipt of an undertaking by or on behalf of the recipient to repay such amount if it is ultimately determined that he is not entitled to indemnification under this Section 9.5.
To the extent that any determination is required to be made as to whether a Covered Person engaged in conduct for which indemnification is not provided as described herein, or as to whether there is reason to believe that a Covered Person ultimately will be found entitled to indemnification, the Person or Persons making the determination shall afford the Covered Person a rebuttable presumption that the Covered Person has not engaged in such conduct and that there is reason to believe that the Covered Person ultimately will be found entitled to indemnification.
As used in this Section 9.5, the words "claim," "action," "suit" or "proceeding" shall apply to all claims, demands, actions, suits, investigations, regulatory inquiries, proceedings or any other occurrence of a similar nature, whether actual or threatened and whether civil, criminal, administrative or other, including appeals, and the words "liability" and "expenses" shall include without limitation, attorneys' fees, costs, judgments, amounts paid in settlement, fines, penalties and other liabilities.
Item 31. | Business and Other Connections of the Investment Adviser |
First Trust Advisors L.P. (“First Trust”), investment adviser to the Registrant, serves as adviser or sub-adviser to various other open-end and closed-end management investment companies and is the portfolio supervisor of certain unit investment trusts. The principal business of certain of First Trust’s principal executive officers involves various activities in connection with the family of unit investment trusts sponsored by First Trust Portfolios L.P. (“FTP”). The principal address for all these investment companies, First Trust, FTP and the persons below is 120 East Liberty Drive, Suite 400, Wheaton, Illinois 60187.
A description of any business, profession, vocation or employment of a substantial nature in which the officers of First Trust who serve as officers or trustees of the Registrant have engaged during the last two years for his or her account or in the capacity of director, officer, employee, partner or trustee appears under “Management of the Fund” in the Statement of Additional Information. Such information for the remaining senior officers of First Trust appears below:
Name and Position with First Trust | Employment During Past Two Years |
Andrew S. Roggensack, President | Managing Director and President, First Trust |
R. Scott Hall, Managing Director | Managing Director, First Trust |
Ronald D. McAlister, Managing Director | Managing Director, First Trust |
David G. McGarel, Chief Investment Officer, Chief Operating Officer and Managing Director | Managing Director; Senior Vice President, First Trust |
Kathleen Brown, Chief Compliance Officer and Senior Vice President | Chief Compliance Officer and Senior Vice President, First Trust |
Brian Wesbury, Chief Economist and Senior Vice President | Chief Economist and Senior Vice President, First Trust |
Item 32. | Principal Underwriter |
(a) FTP serves as principal underwriter of the shares of the Registrant, First Trust Exchange-Traded Fund II, First Trust Exchange-Traded Fund III, First Trust Exchange-Traded Fund IV, First Trust Exchange-Traded Fund V, First Trust Exchange Traded Fund VI, First Trust Exchange-Traded Fund VII, First Trust Exchange-Traded Fund VIII, First Trust Exchange-Traded AlphaDEX ® Fund, First Trust Exchange-Traded AlphaDEX ® Fund II, First Trust Variable Insurance Trust and First Trust Series Fund. FTP serves as principal underwriter and depositor of the following investment companies registered as unit investment trusts: the First Trust Combined Series, FT Series (formerly known as the First Trust Special Situations Trust), the First Trust Insured Corporate Trust, the First Trust of Insured Municipal Bonds and the First Trust GNMA.
(b) Positions and Offices with Underwriter.
(c) Not Applicable.
Item 33. | Location of Accounts and Records |
First Trust, 120 East Liberty Drive, Suite 400, Wheaton, Illinois 60187, maintains the Registrant’s organizational documents, minutes of meetings, contracts of the Registrant and all advisory material of the investment adviser.
Item 34. | Management Services |
Not Applicable.
Item 35. | Undertakings |
Not Applicable.
Signatures
Pursuant to the requirements of the Securities Act of 1933 and the Investment Company Act of 1940, the Registrant certifies that it meets all of the requirements for effectiveness of this Registration Statement under rule 485(b) under the Securities Act and has duly caused this Registration Statement to be signed on its behalf by the undersigned, duly authorized, in the City of Wheaton, and State of Illinois, on the 29th day of April, 2019.
First Trust Exchange-Traded Fund | ||
By: | /s/ James M. Dykas | |
James M. Dykas, President and
Chief Executive Officer |
Pursuant to the requirements of the Securities Act of 1933, this Registration Statement has been signed below by the following persons in the capacities and on the date indicated:
Signature | Title | Date | |
/s/ James M. Dykas |
President and Chief Executive
Officer |
April 29, 2019 | |
James M. Dykas | |||
/s/ Donald P. Swade |
Treasurer, Chief Financial Officer
and Chief Accounting Officer |
April 29, 2019 | |
Donald P. Swade | |||
James A. Bowen* |
)
Trustee ) |
||
) | |||
Richard E. Erickson* |
)
Trustee ) |
||
) | |||
Thomas R. Kadlec* |
)
Trustee ) |
||
) | By: | /s/ W. Scott Jardine | |
Robert F. Keith* |
)
Trustee ) |
W. Scott Jardine
Attorney-In-Fact |
|
) | April 29, 2019 | ||
Niel B. Nielson * |
)
Trustee ) |
||
) |
* | Original powers of attorney authorizing James A. Bowen, W. Scott Jardine, James M. Dykas, Eric F. Fess and Kristi A. Maher to execute Registrant’s Registration Statement, and Amendments thereto, for each of the trustees of the Registrant on whose behalf this Registration Statement is filed, were previously executed, and are filed herewith. |
Index to Exhibits
(d)(6) | Amendment of Exhibit A of the Expense Reimbursement letter. |
(j) | Consent of Independent Registered Public Accounting Firm. |
(m)(3) | 12b-1 Plan Extension Letter Agreement. |
AMENDED EXPENSE REIMBURSEMENT, FEE WAIVER AND RECOVERY AGREEMENT
THIS EXPENSE REIMBURSEMENT, FEE WAIVER AND RECOVERY AGREEMENT (this "Agreement") is entered into between First Trust Exchange-Traded Fund, a Massachusetts business trust (the "Trust"), and First Trust Advisors L.P., an Illinois limited partnership ("FTA"), as of December 6, 2010, as amended on April 18, 2019.
RECITALS:
A. WHEREAS, the Trust is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the "1940 Act"), comprised of various exchange-traded funds (each, a "Fund," and, collectively, the "Funds") set forth on Exhibit A attached hereto, which may be amended from time to time. Each Fund constitutes a separate exchange-traded fund with its own investment objectives and policies.
B. WHEREAS, FTA is the investment adviser to the Funds and is responsible for the selection and ongoing monitoring of the securities in the Funds' portfolios and certain other services necessary for the management of the Funds and is paid an annual management fee by the Funds.
C. WHEREAS, the Trust and FTA have entered into an expense reimbursement, fee waiver, and recovery agreement dated March 12, 2007, as extended from time to time (the "Prior Expense Reimbursement Agreement") pursuant to which FTA agreed to waive management fees and reimburse certain expenses to prevent a Fund's expense ratio from exceeding a particular expense cap for a term provided therein.
D. WHEREAS, Section 5 of the Prior Expense Reimbursement Agreement provided that FTA may recover a portion of the amount it reimbursed a Fund for up to three years from the date the fee or expense was incurred during the Expense Cap Term (as defined therein) to the extent such restitution would not cause a Fund to exceed the specified expense cap. The obligations in Section 5 of the Prior Expense Reimbursement Agreement survive the termination of such agreement.
E. WHEREAS, the Prior Expense Reimbursement Agreement shall terminate immediately with respect to a Fund in the event that the investment advisory agreement between such Fund and FTA (the "Advisory Agreement") is either terminated for any reason or not renewed by the Board of Trustees.
F. WHEREAS, the Advisory Agreement is anticipated to automatically terminate in connection with a change of control of FTA and cause the Prior Expense Reimbursement Agreement to terminate pursuant to Section 5 thereof.
G. WHEREAS, FTA proposes to continue to waive management fees and reimburse certain expenses to prevent a Fund's Expense Ratio (as defined below) from exceeding a particular expense cap and to retain its ability to seek restitution for any fees waived during the Recovery Period (as defined below) (including fees for which FTA would be eligible for restitution under Section 5 of the Prior Expense Reimbursement Agreement).
NOW, THEREFORE, IN CONSIDERATION of the foregoing facts and other good and valuable consideration, the parties hereto hereby agree as follows:
Section 1. Definitions. The following terms shall have the following definitions in this Agreement:
"Expense Ratio" is defined as a Fund's annual investment management fees and expenses (excluding taxes, interest, all brokerage commissions, other normal charges incident to the purchase and sale of portfolio securities, and extraordinary expenses) as a percentage of such Fund's daily net asset value.
"Expense Cap" shall be equal to an Expense Ratio for the Funds as set forth on Exhibit A.
Section 2. Waiver of Fees and Reimbursement of Expenses. On a Fund by Fund basis, FTA will waive investment management fees payable to it by a Fund and/or reimburse a Fund for other expenses borne by such Fund up to such Fund's respective Expense Cap set forth in Exhibit A for the term set forth in Exhibit A (the "Expense Cap Term"), subject to FTA's right to recover such fees and expenses set forth in Section 3. The aggregate amount of investment management fees waived and expenses reimbursed for a Fund from time to time under this Agreement for a particular Fund shall collectively be referred to as the "Reimbursed Amount." The Reimbursed Amount shall be accrued and paid on a monthly basis for each Fund but calculated and settled on an annual fiscal year basis.
Section 3. Recovery. To the extent that the Expense Ratio of a particular Fund is less than such Fund's applicable Expense Cap, FTA may recover a portion of the Reimbursed Amount for such Fund equal to the amount of the Expense Cap less the actual Expense Ratio for such Fund (the "Recovered Amount") for up to three (3) years from the date the fee or expense was incurred during the Expense Cap Term (the "Recovery Period"). The Recovered Amount shall be accrued and paid on a monthly basis for each Fund but calculated and settled on an annual fiscal year basis. Under no circumstances, however, will FTA be eligible to recover any of the Reimbursed Amount if such recovery would cause the Expense Ratio for a particular Fund to exceed (i) such Fund's Expense Cap for the most recent fiscal year for which the Expense Cap was in place, (ii) such Fund's Expense Cap in place at the time the fees were waived, or (iii) such Fund's current Expense Cap. Notwithstanding anything to the contrary herein, the obligations set forth in this Section 3 shall survive any termination of this Agreement as contemplated in Section 5.
Section 4. FTA's fund accounting department shall develop and maintain appropriate internal accounting policies and procedures to monitor and calculate the Reimbursed Amount and the Recovered Amount on a monthly basis for each Fund.
Section 5. Term and Continuation. This Agreement shall be effective on
the date provided on Exhibit A (the "Effective Date") for each respective Fund.
This Agreement shall continue in effect for each respective Fund until the end
of such Fund's Recovery Period unless the Agreement is continued for additional
periods as agreed to by the parties. This Agreement may be terminated by the
Trust on behalf of a Fund at any time and by FTA after the expiration of the
Expense Cap Term of a particular Fund upon sixty (60) days' written notice to
the other party. Notwithstanding the foregoing, this Agreement shall terminate
immediately with respect to a Fund in the event that the investment advisory
agreement between such Fund and FTA is either (i) terminated for any reason or
(ii) not renewed by the Board of Trustees.
Section 6. Notices. Any notice shall be sufficient when sent by registered or certified mail to the other party at the address of such party, set forth below such party's signature on this Agreement.
Section 7. Entire Agreement; Amendments. This Agreement supersedes and abrogates all prior understandings, communications and agreements (whether written or oral) between the parties with respect to the subject matter hereof, and this Agreement constitutes the entire agreement between the parties with respect to such subject matter. This Agreement may not be amended except by an instrument in writing signed by each of the parties hereto. No assignment by either party shall be of any force except with the prior written consent of the other party.
Section 8. Governing Law; Miscellaneous. This Agreement shall be governed by, and construed in accordance with, the laws of the State of Illinois (without regard to principles of law), including all matters of construction, validity, and performance; provided that nothing herein shall be construed in a manner inconsistent with the 1940 Act or any rule or regulation of the Securities and Exchange Commission. If any provision of this Agreement shall be held or made invalid by a court's decision, statute, rule or otherwise, the remainder of this Agreement shall not be affected thereby. The captions in this Agreement are included for convenience only and in no way define any of the provisions hereof or otherwise affect their construction or effect. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written.
FIRST TRUST ADVISORS L.P. FIRST TRUST EXCHANGE-TRADED FUND By /s/ James A. Bowen By /s/ James M. Dykas _______________________________________ ________________________________ James A. Bowen, Chief Executive Officer James M. Dykas, President Address: First Trust Advisors L.P. Address: First Trust Advisors L.P. 120 E. Liberty Drive 120 E. Liberty Drive Suite 400 Suite 400 Wheaton, Illinois 60187 Wheaton, Illinois 60187 Fax: (630) 517-7437 Fax: (630) 517-7437 Attention: W. Scott Jardine Attention: W. Scott Jardine |
EXHIBIT A
----------------------------------------------------------- -------------------- ---------------------- -------------------- NAME OF FUND EXPENSE CAP EFFECTIVE DATE EXPENSE CAP TERM (OF AVERAGE NET ASSETS) ----------------------------------------------------------- -------------------- ---------------------- -------------------- First Trust Dow Jones Select MicroCap Index(SM) Fund 0.60% December 6, 2010 April 30, 2020 ----------------------------------------------------------- -------------------- ---------------------- -------------------- First Trust Morningstar(R) Dividend Leaders(SM) Index Fund 0.45% December 20, 2010 April 30, 2020 ----------------------------------------------------------- -------------------- ---------------------- -------------------- First Trust Nasdaq-100 Equal Weighted Index(SM) Fund 0.60% December 6, 2010 April 30, 2020 ----------------------------------------------------------- -------------------- ---------------------- -------------------- First Trust Nasdaq-100 Technology Sector Index(SM) Fund 0.60% December 6, 2010 April 30, 2020 ----------------------------------------------------------- -------------------- ---------------------- -------------------- First Trust US Equity Opportunities ETF 0.60% January 3, 2011 April 30, 2020 ----------------------------------------------------------- -------------------- ---------------------- -------------------- First Trust NYSE Arca Biotechnology Index Fund 0.60% January 3, 2011 April 30, 2020 ----------------------------------------------------------- -------------------- ---------------------- -------------------- First Trust Capital Strength ETF 0.65% January 3, 2011 April 30, 2020 ----------------------------------------------------------- -------------------- ---------------------- -------------------- First Trust Dow Jones Internet Index(SM) Fund 0.60% December 6, 2010 April 30, 2020 ----------------------------------------------------------- -------------------- ---------------------- -------------------- First Trust Nasdaq-100 ex-Technology Sector Index(SM) Fund 0.60% December 6, 2010 April 30, 2020 ----------------------------------------------------------- -------------------- ---------------------- -------------------- First Trust Nasdaq(R) Clean Edge(R) Green Energy Index Fund 0.60% January 3, 2011 April 30, 2020 ----------------------------------------------------------- -------------------- ---------------------- -------------------- First Trust Total US Market AlphaDEX ETF 0.70% December 6, 2010 April 30, 2020 ----------------------------------------------------------- -------------------- ---------------------- -------------------- First Trust Value Line(R) Dividend Index Fund 0.70% January 3, 2011 April 30, 2020 ----------------------------------------------------------- -------------------- ---------------------- -------------------- First Trust S&P REIT Index Fund 0.50% December 6, 2010 April 30, 2020 ----------------------------------------------------------- -------------------- ---------------------- -------------------- First Trust Natural Gas ETF 0.60% January 20, 2011 April 30, 2020 ----------------------------------------------------------- -------------------- ---------------------- -------------------- First Trust Water ETF 0.60% December 6, 2010 April 30, 2020 ----------------------------------------------------------- -------------------- ---------------------- -------------------- First Trust Chindia ETF 0.60% January 3, 2011 April 30, 2020 ----------------------------------------------------------- -------------------- ---------------------- -------------------- First Trust Value Line(R) 100 Exchange-Traded Fund 0.70% January 3, 2011 April 30, 2020 ----------------------------------------------------------- -------------------- ---------------------- -------------------- First Trust Nasdaq(R) ABA Community Bank Index Fund 0.60% January 3, 2011 April 30, 2020 ----------------------------------------------------------- -------------------- ---------------------- -------------------- |
CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
We consent to the incorporation by reference in this Post-Effective Amendment No. 108 to Registration Statement No. 333-125751 on Form N-1A of our report dated February 25, 2019, relating to the financial statements and financial highlights of First Trust Capital Strength ETF, First Trust Dow Jones Internet Index Fund, First Trust Dow Jones Select MicroCap Index Fund, First Trust Chindia ETF, First Trust Natural Gas ETF, First Trust Water ETF, First Trust Morningstar Dividend Leaders Index Fund, First Trust NASDAQ-100 Equal Weighted Index Fund, First Trust NASDAQ-100 Ex-Technology Sector Index Fund, First Trust NASDAQ-100-Technology Sector Index Fund, First Trust NASDAQ(R) ABA Community Bank Index Fund, First Trust NASDAQ(R) Clean Edge(R) Green Energy Index Fund, First Trust NYSE Arca Biotechnology Index Fund, First Trust S&P REIT Index Fund, First Trust US Equity Opportunities ETF, First Trust Value Line(R) 100 Exchange-Traded Fund, First Trust Value Line(R) Dividend Index Fund, First Trust Dorsey Wright People's Portfolio ETF, First Trust Dow 30 Equal Weight ETF, First Trust Total US Market AlphaDEX(R) ETF, and First Trust Lunt U.S. Factor Rotation ETF, appearing in the Annual Reports on Form N-CSR for First Trust Exchange-Traded Fund as of and for the period ended December 31, 2018, and to the references to us under the headings "Financial Highlights" in the Prospectuses and "Additional Information", "Miscellaneous Information", and "Financial Statements" in the Statements of Additional Information, which are part of such Registration Statement.
/s/ Deloitte & Touche LLP Chicago, Illinois April 26, 2019 |
April 2, 2019
First Trust Exchange-Traded Fund
120 East Liberty Drive, Suite 400
Wheaton, Illinois 60187
Re: 12b-1 Plan Extension Letter for First Trust Exchange-Traded Fund (the "Trust").
Ladies and Gentlemen:
It is hereby acknowledged that First Trust Portfolios L.P. serves as the distributor of the shares of each series of the above-referenced Trust. The Trust is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the "1940 Act"), comprised of various exchange-traded funds (each, a "Fund," and, collectively, the "Funds") set forth on Exhibit A attached hereto, which may be supplemented to add new Funds.
It is further acknowledged that the Trust has adopted a Distribution and Service Plan (the "Plan") pursuant to Rule l2b-1 under the 1940 Act with respect to the shares of beneficial interest ("Shares") of the Funds. Pursuant to the Plan, each Fund may bear a fee not to exceed 0.25% per annum of such Fund's average daily net assets.
The purpose of this letter agreement is to agree and acknowledge that the Funds shall not pay, and we shall not collect, any fees pursuant to the Plan any time before the date set forth on Exhibit A attached hereto for each Fund.
Very Truly Yours,
FIRST TRUST PORTFOLIOS L.P.
/s/ James M. Dykas ___________________________ James M. Dykas Chief Financial Officer AGREED AND ACKNOWLEDGED: ------------------------ |
First Trust Exchange-Traded Fund
/s/ Donald P. Swade ______________________________________ Donald P. Swade Treasurer, Chief Financial Officer and Chief Accounting Officer |
EXHIBIT A ------------------------------------------------------------- ----------------- FUNDS DATES ------------------------------------------------------------- ----------------- First Trust Exchange-Traded Fund ------------------------------------------------------------- ----------------- First Trust Dow Jones Select MicroCap Index(SM) Fund 04/30/2020 ------------------------------------------------------------- ----------------- First Trust Morningstar Dividend Leaders(SM) Index Fund 04/30/2020 ------------------------------------------------------------- ----------------- First Trust US Equity Opportunities ETF 04/30/2020 ------------------------------------------------------------- ----------------- First Trust NASDAQ-100 Equal Weighted Index(SM) Fund 04/30/2020 ------------------------------------------------------------- ----------------- First Trust NASDAQ-100-Technology Sector Index(SM) Fund 04/30/2020 ------------------------------------------------------------- ----------------- First Trust NYSE Arca Biotechnology Index Fund 04/30/2020 ------------------------------------------------------------- ----------------- First Trust Dow Jones Internet Index(SM) Fund 04/30/2020 ------------------------------------------------------------- ----------------- First Trust Capital Strength ETF 04/30/2020 ------------------------------------------------------------- ----------------- First Trust Total US Market AlphaDEX(R) ETF 04/30/2020 ------------------------------------------------------------- ----------------- First Trust Value Line(R) Dividend Index Fund 04/30/2020 ------------------------------------------------------------- ----------------- First Trust NASDAQ-100 Ex-Technology Sector Index(SM) Fund 04/30/2020 ------------------------------------------------------------- ----------------- First Trust NASDAQ(R) Clean Edge(R) Green Energy Index Fund 04/30/2020 ------------------------------------------------------------- ----------------- First Trust S&P REIT Index Fund 04/30/2020 ------------------------------------------------------------- ----------------- First Trust Chindia ETF 04/30/2020 ------------------------------------------------------------- ----------------- First Trust Natural Gas ETF 04/30/2020 ------------------------------------------------------------- ----------------- First Trust Water ETF 04/30/2020 ------------------------------------------------------------- ----------------- First Trust Value Line(R) 100 Exchange-Traded Fund 04/30/2020 ------------------------------------------------------------- ----------------- First Trust NASDAQ(R) ABA Community Bank Index Fund 04/30/2020 ------------------------------------------------------------- ----------------- First Trust Dorsey Wright People's Portfolio ETF 04/30/2020 ------------------------------------------------------------- ----------------- First Trust Dow 30 Equal Weight ETF 04/30/2020 ------------------------------------------------------------- ----------------- First Trust Lunt U.S. Factor Rotation ETF 07/20/2020 ------------------------------------------------------------- ----------------- |