1) FGD
First Trust Dow Jones Global Select Dividend Index Fund
As of 12/31/15
» Fund Objective
» Index Description
This exchange-traded 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 Dow Jones Global Select
Dividend Indexâ„ .
» The index universe is deï¬ned as all component companies of the 25 developed-market country indexes in the Dow Jones Global
Indexes (DJGI) family.
» To be considered for the index, companies in the index universe must pass eligibility screens for dividend quality and liquidity.
The company must:
• Pay a current dividend.
• Have a current-year dividend-per-share ratio that is greater than or equal to its ï¬ve-year average annual dividend-per-share ratio.
• Have a ï¬ve-year average payout ratio of less than or equal to 60% for U.S. and European companies; or less than or equal to
80% for all other countries.
• Have a minimum three-month daily average trading volume of $3 million.
» Stocks meeting all eligibility requirements are ranked by dividend yield.
» The top 100 highest-yielding stocks are selected for inclusion in the Index, subject to buffers designed to limit turnover by
favoring current Index components:
• Stocks in the Index universe are ranked in descending order by indicated annual dividend yield, deï¬ned as a stock’s
unadjusted indicated annual dividend (not including any special dividends) divided by its unadjusted price.
• All current Index component stocks that are among the top 150 stocks are included in the Index.
• Noncomponent stocks are added to the Index based on their rankings until the component count reaches 100.
• Component weightings are assigned based on dividend yield. Weights of individual component stocks are capped at 10%.
» The Index is reconstituted and adjusted annually in March.
» Fund Facts
Fund Ticker
CUSIP
Intraday NAV
Fund Inception Date
Gross Expense Ratio^
Net Expense Ratio
30-Day SEC Yield†
Unsubsidized 30-Day SEC Yield#
Rebalance Frequency
Primary Listing
FGD
33734X200
FGDIV
11/21/07
0.60%
0.60%
5.41%
5.41%
Annual
NYSE Arca
» Index Facts
Index Ticker
Index Inception Date
Index Yield‡
DJGSDT
10/17/07
6.23%
» Performance Summary (%)
Fund Performance*
Net Asset Value (NAV)
After Tax Held
After Tax Sold
Market Price
Index Performance**
Dow Jones Global Select Dividend Indexâ„
Dow Jones World Developed Markets Indexâ„
MSCI World Index
» Calendar Year Total Returns (%)
FGD
Dow Jones World Developed Markets Indexâ„
MSCI World Index
» 3-Year Statistics
FGD
MSCI World Index
Quarter
YTD
1 Year
3 Years
5 Years
10 Years
Since Inception
2.12
1.64
1.20
2.08
-10.10
-11.92
-5.67
-10.10
-10.10
-11.92
-5.67
-10.10
1.71
-0.38
0.43
1.35
3.51
1.52
1.91
3.30
—
—
—
—
1.04
-0.83
0.02
0.99
2.74
5.40
5.50
-10.26
-0.53
-0.87
-10.26
-0.53
-0.87
2.07
9.95
9.63
3.54
7.80
7.59
—
—
—
1.20
3.62
3.10
2005
—
—
—
2006
—
—
—
Standard Deviation (%)
12.67
10.96
2007
—
—
—
2008
-50.46
-40.58
-40.71
Alpha
-7.46
—
2009
64.28
31.93
29.99
2010
12.27
13.38
11.76
Beta
1.01
1.00
2011
-2.17
-5.89
-5.54
2012
15.42
16.38
15.83
Sharpe Ratio
0.18
0.88
2013
17.90
27.46
26.68
2014
-0.72
4.84
4.94
2015
-10.10
-0.53
-0.87
Correlation
0.88
1.00
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. You can obtain performance information which is
current through the most recent month-end by visiting www.ftportfolios.com.
^Expenses are capped contractually at 0.60% per year, at least until January 31, 2016.
†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.
#
The unsubsidized 30-day SEC yield is calculated the same as the 30-day SEC yield, however it excludes contractual fee waivers and expense reimbursements.
‡Index yield represents the weighted average trailing 12-month dividend of the constituents of the Dow Jones Global Select Dividend Indexâ„ .
*After Tax Held returns represent return after taxes on distributions. Assumes shares have not been sold. After Tax Sold returns represent the return after taxes on distributions and the sale of
fund shares. Returns do not represent the returns you would receive if you traded shares at other times. Market Price returns are based on the midpoint of the bid/ask spread. Returns are
average annualized total returns, except those for periods of less than one year, which are cumulative. The fund’s performance reflects fee waivers and expense reimbursements, absent which
performance would have been lower. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local
taxes. Actual after-tax returns depend on the investor’s tax situation and may differ from those shown. The after-tax returns shown are not relevant to investors who hold their fund shares
through tax-deferred arrangements such as 401(k) plans or individual retirement accounts.
**Performance information for the Dow Jones Global Select Dividend Indexâ„ 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.
1-866-848-9727 • www.ftportfolios.com
2) First Trust Dow Jones Global Select Dividend Index Fund
» Portfolio Information
Number Of Holdings
Maximum Market Cap.
Median Market Cap.
Minimum Market Cap.
Price/Earnings
Price/Book
Price/Cash Flow
Price/Sales
» Top Holdings (%)
97
$211.69 Billion
$8.32 Billion
$549 Million
14.18
1.51
8.64
0.93
As of 12/31/15
» Top Sector Exposure (%)
Lancashire Holdings, Ltd.
Swiss Re AG
Ladbrokes Plc
Woodside Petroleum Limited
Manitoba Telecom Services, Inc.
JB Hi-Fi Limited
Amlin Plc
Nokian Renkaat Oyj
Bendigo and Adelaide Bank Limited
Noble Corporation Plc
2.38
1.97
1.74
1.74
1.69
1.68
1.62
1.55
1.48
1.48
Financials
Utilities
Telecommunication Services
Consumer Discretionary
Industrials
Energy
Materials
Consumer Staples
Health Care
Information Technology
21.34
15.66
15.26
13.64
11.85
11.71
3.85
3.11
1.86
1.72
» Top Country Exposure (%)
Australia
United States
United Kingdom
Canada
France
Finland
Switzerland
Hong Kong
Spain
New Zealand
19.13
16.25
16.02
9.04
7.75
4.55
3.79
3.43
3.18
2.81
You should consider the fund’s investment objectives, risks, and charges and expenses carefully before investing. Contact First Trust Portfolios L.P. at 1-800-621-1675 or visit www.ftportfolios.com
to obtain a prospectus or summary prospectus which contains this and other information about the fund. The prospectus or summary prospectus should be read carefully before investing.
ETF Characteristics
The fund lists and principally trades its shares on the NYSE Arca, Inc.
The fund’s return may not match the return of the Dow Jones Global Select Dividend Indexâ„ .
Securities held by the fund will generally not be bought or sold in response to market
fluctuations.
Investors buying or selling fund shares on the secondary market may incur customary
brokerage commissions. Market prices may differ to some degree from the net asset value of
the shares. Investors who sell fund shares may receive less than the share’s net asset value.
Shares may be sold throughout the day on the exchange through any brokerage account.
However, unlike mutual funds, shares may only be redeemed directly from the fund by
authorized participants, in very large creation/redemption units.
Risk Considerations
The fund’s shares will change in value, and you could lose money by investing in the fund. One
of the principal risks of investing in the fund is market risk. Market risk is the risk that a
particular stock owned by the fund, fund shares or stocks in general may fall in value. There
can be no assurance that the fund’s investment objective will be achieved.
The fund may invest in securities issued by companies concentrated in a particular industry or
country. The fund may invest in small capitalization and mid capitalization companies. Such
companies may experience greater price volatility than larger, more established companies.
An investment in a fund containing securities of non-U.S. issuers is subject to additional risks,
including currency fluctuations, political risks, withholding, the lack of adequate ï¬nancial
information, and exchange control restrictions impacting non-U.S. issuers. The fund may invest
in depositary receipts which may be less liquid than the underlying shares in their primary
trading market.
The fund is classiï¬ed as “non-diversiï¬ed” and may invest a relatively high percentage of its
assets in a limited number of issuers. As a result, the fund may be more susceptible to a single
adverse economic or regulatory occurrence affecting one or more of these issuers, experience
increased volatility and be highly concentrated in certain issuers.
First Trust Advisors L.P. is the adviser to the fund. First Trust Advisors L.P. is an affiliate of First
Trust Portfolios L.P., the fund’s distributor.
Deï¬nitions
Standard Deviation is a measure of price variability (risk). Alpha is an indication of how much
an investment outperforms or underperforms on a risk-adjusted basis relative to its
benchmark. Beta is a measure of price variability relative to the market. Sharpe Ratio is a
measure of excess reward per unit of volatility. Correlation is a measure of the similarity of
performance. The MSCI World Index is a free float-adjusted market capitalization weighted
index that is designed to measure the equity market performance of 23 developed markets
around the world. The Dow Jones World Developed Markets Indexâ„ represents 23 countries
and covers approximately 95% of the float-adjusted market capitalization of Europe as a
region, and all other markets at the country level.
The Dow Jones Global Select Dividend Indexâ„ is a product of S&P Dow Jones Indices LLC (“SPDJI”), and has been licensed for use by First Trust. Dow Jones® and Dow Jones Global Select Dividend Indexâ„
are trademarks of Dow Jones Trademark Holdings LLC (“Dow Jones”) and have been licensed to SPDJI and have been sublicensed for use for certain purposes by First Trust on behalf of the Fund. The First
Trust Dow Jones Global Select Dividend Index Fund is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones or their respective affiliates and none of them makes any representation regarding
the advisability of investing in such product.
Not FDIC Insured • Not Bank Guaranteed • May Lose Value
FGDFS0011516