First Trust S&P 500 Diversified Dividend Aristocrats ETF (KNGZ)
  • 2024 Estimated Capital Gain Distributions
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Investment Objective/Strategy - The First Trust S&P 500 Diversified Dividend Aristocrats ETF (the "Fund") seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of an equity index called the S&P 500 Sector-Neutral Dividend Aristocrats Index (the "Index"). Under normal conditions, the Fund will invest at least 90% of its net assets (plus any borrowings for investment purposes) in the securities of the Index. The Fund, using an indexing investment approach, attempts to replicate, before fees and expenses, the total return performance of the Index, which includes dividends paid by the common stocks in the Index.
There can be no assurance that the Fund's investment objectives will be achieved.
Index Description According to the Index Provider
  • The starting universe consists of all the securities comprising the S&P 500® Index.
    • Only those securities with stable or increasing total dividend per share amounts every year for at least 15 consecutive years are eligible for inclusion.#
    • The stocks are then ranked in their respective Global Industry Classification Standard (GICS®) sectors in descending order by their indicated annualized dividend yields.
    • The index seeks to select 100 securities that meet its eligibility criteria.
  • Within each sector, the index provider selects the eligible securities with the highest indicated annualized dividend yield until the number of securities is equivalent to 20% of the number of the securities comprising the sector in the S&P 500® Index.
  • At each reconstitution and rebalance, the index seeks to mirror the sector weights of the S&P 500® Index, with constituents weighted by dividend yield within each GICS® sector.
    • In addition, the weight for each index constituent is constrained between 0.25% and 4.00%.
  • The index is reconstituted annually and rebalanced quarterly.
#Subject to a relaxation rule. The minimum dividend growth history should be at least five years.
Fund Overview
TickerKNGZ
Fund TypeEquity Income
Investment AdvisorFirst Trust Advisors L.P.
Investor Servicing AgentBank of New York Mellon Corp
CUSIP33738R738
ISINUS33738R7382
Intraday NAVKNGZIV
Fiscal Year-End03/31
ExchangeNasdaq
Inception6/20/2017
Inception Price$19.85
Inception NAV$19.85
Rebalance FrequencyQuarterly
Total Expense Ratio*0.50%
* As of 8/1/2024
Current Fund Data (as of 12/2/2024)
Closing NAV1$35.02
Closing Market Price2$35.05
Bid/Ask Midpoint$35.05
Bid/Ask Premium0.09%
30-Day Median Bid/Ask Spread30.34%
Total Net Assets$50,776,890
Outstanding Shares1,450,002
Daily Volume2,208
Average 30-Day Daily Volume9,320
Closing Market Price 52-Week High/Low$35.20 / $28.57
Closing NAV 52-Week High/Low$35.18 / $28.59
Number of Holdings (excluding cash)96
Top Holdings (as of 12/2/2024)*
Holding Percent
International Business Machines Corporation 3.79%
HP Inc. 3.70%
Verizon Communications Inc. 3.42%
Hewlett Packard Enterprise Company 3.35%
Corning Incorporated 3.14%
Texas Instruments Incorporated 3.10%
Microchip Technology Incorporated 2.53%
QUALCOMM Incorporated 2.34%
The Interpublic Group of Companies, Inc. 2.28%
Franklin Resources, Inc. 2.18%

* Excluding cash.  Holdings are subject to change.

NAV History (Since Inception)
Past performance is not indicative of future results.
Distribution Information
Dividend per Share Amt (as of 12/3/2024)4$0.2030
30-Day SEC Yield (as of 11/29/2024)52.52%
12-Month Distribution Rate (as of 11/29/2024)62.52%
Index Yield (as of 11/29/2024)73.08%
Fund Characteristics (as of 11/29/2024)8
Maximum Market Cap.$3,148,375
Median Market Cap.$47,431
Minimum Market Cap.$7,377
Price/Earnings20.17
Price/Book2.88
Price/Cash Flow13.23
Price/Sales1.48
Bid/Ask Premium/Discount (as of 12/2/2024)
  2023 Q1 2024 Q2 2024 Q3 2024
Days Traded at Premium 205 53 44 47
Days Traded at Discount 45 8 19 17
Top Sector Exposure (as of 12/2/2024)
Information Technology 31.25%
Financials 13.29%
Health Care 11.53%
Consumer Discretionary 10.18%
Communication Services 8.93%
Industrials 8.59%
Consumer Staples 5.80%
Energy 3.46%
Utilities 2.51%
Real Estate 2.29%
Materials 2.17%
Hypothetical Growth of $10,000 Since Inception (as of 12/2/2024) *
Tracking Index: S&P 500® Sector-Neutral Dividend Aristocrats Index

Month End Performance (as of 10/31/2024)
  3 Month YTD 1 Year 3 Year 5 Year 10 Year Since
Fund
Inception9
Fund Performance *
Net Asset Value (NAV) 3.10% 14.94% 31.75% 7.35% 11.09% N/A 10.41%
After Tax Held 2.86% 14.15% 30.25% 6.15% 9.87% N/A 9.18%
After Tax Sold 1.84% 8.83% 18.73% 5.10% 8.18% N/A 7.74%
Market Price 3.10% 14.83% 31.74% 7.38% 11.13% N/A 10.41%
Index Performance **
S&P 500® Sector-Neutral Dividend Aristocrats Index 3.25% 15.48% 32.55% N/A N/A N/A N/A
Nasdaq Riskalyze US Large Cap Select Dividend™ Index 1.33% 16.12% 35.40% 8.95% 12.33% N/A 11.45%
Nasdaq US 500 Large Cap™ Index 3.93% 21.17% 38.64% 8.52% 15.27% N/A 14.21%
S&P 500® Index 3.66% 20.97% 38.02% 9.08% 15.27% N/A 14.19%
Quarter End Performance (as of 9/30/2024)
  3 Month YTD 1 Year 3 Year 5 Year 10 Year Since
Fund
Inception9
Fund Performance *
Net Asset Value (NAV) 10.00% 17.47% 29.18% 9.16% 12.01% N/A 10.87%
After Tax Held 9.74% 16.66% 27.72% 7.94% 10.79% N/A 9.62%
After Tax Sold 5.92% 10.31% 17.19% 6.50% 8.92% N/A 8.10%
Market Price 9.97% 17.32% 29.10% 9.15% 12.05% N/A 10.86%
Index Performance **
S&P 500® Sector-Neutral Dividend Aristocrats Index 10.17% 17.94% 29.87% N/A N/A N/A N/A
Nasdaq Riskalyze US Large Cap Select Dividend™ Index 8.11% 18.47% 33.53% 10.75% 13.24% N/A 11.90%
Nasdaq US 500 Large Cap™ Index 5.94% 22.09% 36.83% 11.29% 15.94% N/A 14.50%
S&P 500® Index 5.89% 22.08% 36.35% 11.91% 15.98% N/A 14.51%

*Performance data quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares when sold or redeemed, may be worth more or less than their original cost.

After Tax Held returns represent return after taxes on distributions. Assumes shares have not been sold. After Tax Sold returns represent the return after taxes on distributions and the sale of fund shares. Returns do not represent the returns you would receive if you traded shares at other times. Market Price returns are determined by using the midpoint of the national best bid offer price ("NBBO") as of the time that the fund's NAV is calculated. Returns are average annualized total returns, except those for periods of less than one year, which are cumulative.

After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on the investor’s tax situation and may differ from those shown. The after-tax returns shown are not relevant to investors who hold their fund shares through tax-deferred arrangements such as 401(k) plans or individual retirement accounts.

**Performance information for each listed index is for illustrative purposes only and does not represent actual fund performance. Indexes do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the performance shown. Indexes are unmanaged and an investor cannot invest directly in an index.

On October 3, 2023, the fund's underlying index changed from the Nasdaq Riskalyze US Large Cap Dividend™ Index to the S&P 500® Sector-Neutral Dividend Aristocrats Index. Therefore, the fund's performance and historical returns shown for the periods prior to these dates are not necessarily indicative of the performance that the fund, based on its current index, would have generated.

Nasdaq Riskalyze US Large Cap Select Dividend™ Index - The Index is a modified market capitalization weighted index which seeks to provide a diversified portfolio of dividend-paying securities with above average yield.

Nasdaq US 500 Large Cap™ Index - The Index is a float modified market capitalization weighted index that contains the top 500 securities from the NASDAQ US Benchmark™ Index.

S&P 500® Index - The Index is an unmanaged index of 500 companies used to measure large-cap U.S. stock market performance.
Footnotes
1 The NAV represents the fund's net assets (assets less liabilities) divided by the fund's outstanding shares.
2 Fund shares are purchased and sold on an exchange at their market price rather than net asset value (NAV), which may cause the shares to trade at a price greater than NAV (premium) or less than NAV (discount).
3 The median bid-ask spread is calculated by identifying the national best bid and national best offer ("NBBO") for the fund as of the end of each 10 second interval during each trading day of the last 30 calendar days and dividing the difference between each such bid and offer by the midpoint of the NBBO. The median of those values is identified and that value is expressed as a percentage rounded to the nearest hundredth.
4 Most recent distribution paid or declared to today's date. Subject to change in the future. There is no guarantee that the fund will declare dividends.
5 The 30-day SEC yield is calculated by dividing the net investment income per share earned during the most recent 30-day period by the maximum offering price per share on the last day of the period and includes the effects of fee waivers and expense reimbursements, if applicable.
6 12-Month Distribution Rate is calculated by dividing the sum of the fund's trailing 12-month ordinary distributions paid or declared by the NAV price. Distribution rates may vary.
7 Index yield represents the weighted average trailing 12-month dividend of the constituents of the S&P 500® Sector-Neutral Dividend Aristocrats Index.
8 All market capitalization numbers are in USD$ Millions.
9 Inception Date is 6/20/2017

You should consider the fund's investment objectives, risks, and charges and expenses carefully before investing. You can download a prospectus or summary prospectus, or contact First Trust Portfolios L.P. at 1-800-621-1675 to request a prospectus or summary prospectus which contains this and other information about the fund. The prospectus or summary prospectus should be read carefully before investing.

Risk Considerations

You could lose money by investing in a fund. An investment in a fund is not a deposit of a bank and is not insured or guaranteed. There can be no assurance that a fund's objective(s) will be achieved. Investors buying or selling shares on the secondary market may incur customary brokerage commissions. Please refer to each fund's prospectus and Statement of Additional Information for additional details on a fund's risks. The order of the below risk factors does not indicate the significance of any particular risk factor.

Unlike mutual funds, shares of the fund may only be redeemed directly from a fund by authorized participants in very large creation/redemption units. If a fund's authorized participants are unable to proceed with creation/redemption orders and no other authorized participant is able to step forward to create or redeem, fund shares may trade at a premium or discount to a fund's net asset value and possibly face delisting and the bid/ask spread may widen.

Current market conditions risk is the risk that a particular investment, or shares of the fund in general, may fall in value due to current market conditions. As a means to fight inflation, the Federal Reserve and certain foreign central banks have raised interest rates; however, the Federal Reserve has recently lowered interest rates and may continue to do so. Recent and potential future bank failures could result in disruption to the broader banking industry or markets generally and reduce confidence in financial institutions and the economy as a whole, which may also heighten market volatility and reduce liquidity. Ongoing armed conflicts between Russia and Ukraine in Europe and among Israel, Hamas and other militant groups in the Middle East, have caused and could continue to cause significant market disruptions and volatility within the markets in Russia, Europe, the Middle East and the United States. The hostilities and sanctions resulting from those hostilities have and could continue to have a significant impact on certain fund investments as well as fund performance and liquidity. The COVID-19 global pandemic, or any future public health crisis, and the ensuing policies enacted by governments and central banks have caused and may continue to cause significant volatility and uncertainty in global financial markets, negatively impacting global growth prospects.

A fund is susceptible to operational risks through breaches in cyber security. Such events could cause a fund to incur regulatory penalties, reputational damage, additional compliance costs associated with corrective measures and/or financial loss.

Companies that issue dividend-paying securities are not required to continue to pay dividends on such securities. Therefore, there is a possibility that such companies could reduce or eliminate the payment of dividends in the future.

Equity securities may decline significantly in price over short or extended periods of time, and such declines may occur in the equity market as a whole, or they may occur in only a particular country, company, industry or sector of the market.

An index fund will be concentrated in an industry or a group of industries to the extent that the index is so concentrated. A fund with significant exposure to a single asset class, or the securities of issuers within the same country, state, region, industry, or sector may have its value more affected by an adverse economic, business or political development than a broadly diversified fund.

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

There is no assurance that the index provider or its agents will compile or maintain the index accurately. Losses or costs associated with any index provider errors generally will be borne by a fund and its shareholders.

As inflation increases, the present value of a fund's assets and distributions may decline.

Information technology companies are subject to certain risks, including rapidly changing technologies, short product life cycles, fierce competition, aggressive pricing and reduced profit margins, loss of patent, copyright and trademark protections, cyclical market patterns, evolving industry standards and regulation and frequent new product introductions.

Large capitalization companies may grow at a slower rate than the overall market.

Market risk is the risk that a particular security, or shares of a fund in general may fall in value. Securities are subject to market fluctuations caused by such factors as general economic conditions, political events, regulatory or market developments, changes in interest rates and perceived trends in securities prices. Shares of a fund could decline in value or underperform other investments as a result. In addition, local, regional or global events such as war, acts of terrorism, spread of infectious disease or other public health issues, recessions, natural disasters or other events could have significant negative impact on a fund.

A fund faces numerous market trading risks, including the potential lack of an active market for fund shares due to a limited number of market makers. Decisions by market makers or authorized participants to reduce their role or step away in times of market stress could inhibit the effectiveness of the arbitrage process in maintaining the relationship between the underlying values of a fund's portfolio securities and a fund's market price.

An index fund's return may not match the return of the index for a number of reasons including operating expenses, costs of buying and selling securities to reflect changes in the index, and the fact that a fund's portfolio holdings may not exactly replicate the index.

A fund and a fund's advisor may seek to reduce various operational risks through controls and procedures, but it is not possible to completely protect against such risks. The fund also relies on third parties for a range of services, including custody, and any delay or failure related to those services may affect the fund's ability to meet its objective.

A fund that invests in securities included in or representative of an index will hold those securities regardless of investment merit and the fund generally will not take defensive positions in declining markets.

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

The market price of a fund's shares will generally fluctuate in accordance with changes in the fund's net asset value ("NAV") as well as the relative supply of and demand for shares on the exchange, and a fund's investment advisor cannot predict whether shares will trade below, at or above their NAV.

Trading on an exchange may be halted due to market conditions or other reasons. There can be no assurance that a fund's requirements to maintain the exchange listing will continue to be met or be unchanged.

First Trust Advisors L.P. (FTA) is the adviser to the First Trust fund(s). FTA is an affiliate of First Trust Portfolios L.P., the distributor of the fund(s).

The S&P 500® Sector-Neutral Dividend Aristocrats Index ("Index") is a product of S&P Dow Jones Indices LLC or its affiliates ("SPDJI") and has been licensed for use by First Trust. S&P® is a registered trademark of Standard & Poor's Financial Services LLC ("S&P"); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones"); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by First Trust. The Fund is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, or their respective affiliates and none of such parties make any representation regarding the advisability of investing in such product nor do they have any liability for any errors, omissions, or interruptions of the Index.

CUSIP identifiers have been provided by CUSIP Global Services, managed on behalf of the American Bankers Association by FactSet Research Systems Inc. and are not for use or dissemination in a manner that would serve as a substitute for any CUSIP service. The CUSIP Database, ©2024 CUSIP Global Services. "CUSIP" is a registered trademark of the American Bankers Association.

Not FDIC Insured • Not Bank Guaranteed • May Lose Value