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Fund Performance Overview | |
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Portfolio of Investments | |
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Performance | ||||||
Average Annual Total Returns | Cumulative Total Returns | |||||
1
Year Ended 10/31/22 |
5
Years Ended 10/31/22 |
Inception (4/13/16) to 10/31/22 |
5
Years Ended 10/31/22 |
Inception (4/13/16) to 10/31/22 | ||
Fund Performance | ||||||
NAV | -28.21% | -2.35% | 2.21% | -11.20% | 15.43% | |
Market Price | -28.83% | -2.46% | 2.19% | -11.73% | 15.25% | |
Index Performance | ||||||
MSCI EAFE Index | -23.00% | -0.09% | 3.45% | -0.47% | 24.90% |
Performance | ||||||
Average Annual Total Returns | Cumulative Total Returns | |||||
1
Year Ended 10/31/22 |
5
Years Ended 10/31/22 |
Inception (4/13/16) to 10/31/22 |
5
Years Ended 10/31/22 |
Inception (4/13/16) to 10/31/22 | ||
Fund Performance | ||||||
NAV | -27.33% | -1.27% | 3.64% | -6.18% | 26.39% | |
Market Price | -27.79% | -1.40% | 3.58% | -6.81% | 25.93% | |
Index Performance | ||||||
MSCI Europe Index | -22.88% | 0.04% | 3.47% | 0.21% | 25.02% |
Performance | ||||||
Average Annual Total Returns | Cumulative Total Returns | |||||
1
Year Ended 10/31/22 |
5
Years Ended 10/31/22 |
Inception (6/14/16) to 10/31/22 |
5
Years Ended 10/31/22 |
Inception (6/14/16) to 10/31/22 | ||
Fund Performance | ||||||
NAV | -24.97% | -3.97% | 2.67% | -18.35% | 18.29% | |
Market Price | -24.54% | -4.13% | 2.63% | -19.01% | 18.00% | |
Index Performance | ||||||
MSCI Emerging Markets Index | -31.03% | -3.09% | 3.34% | -14.54% | 23.29% |
2022 Performance | ||
RFDI Market | -28.83% | |
RFDI NAV | -28.21% | |
Benchmark: MSCI EAFE Index | -23.00% |
2022 Performance | ||
RFEU Market | -27.29% | |
RFEU NAV | -27.33% | |
Benchmark: MSCI Europe Index | -22.88% |
2022 Performance | ||
RFEM Market | -24.54% | |
RFEM NAV | -24.97% | |
Benchmark: MSCI Emerging Markets Index | -31.03% |
• | Expect High Volatility – Given the uncertainty surrounding inflation, recession risk, and the consumer, we expect volatility to remain high across the globe, in our opinion. Traditionally, defensive sectors and security selection that tends toward stocks with low volatility characteristics could provide positive relative performance. |
• | Commodity producers are likely to outperform, in our opinion. Commodity prices remain toward the top of the previous decade’s price range. Given their operating leverage and exposure to these prices, commodity producing countries and companies should, in our opinion, be able to continue their outperformance if inflation remains high. |
• | In our view, interest rate differentials provide currency hedging opportunities. As long as several global central banks lag the Fed, we believe there will be opportunities to hedge the currency exposure of international equities. Specifically, being able to dynamically hedge a portfolio, in order to respond to changes in global central bank policies, could provide alpha to a U.S. domiciled investor. |
Beginning Account Value May 1, 2022 |
Ending Account Value October 31, 2022 |
Annualized Expense Ratio Based on the Six-Month Period |
Expenses Paid During the Six-Month Period (a) | |
First Trust RiverFront Dynamic Developed International ETF (RFDI) | ||||
Actual | $1,000.00 | $833.30 | 0.83% | $3.84 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,021.02 | 0.83% | $4.23 |
First Trust RiverFront Dynamic Europe ETF (RFEU) | ||||
Actual | $1,000.00 | $848.50 | 0.83% | $3.87 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,021.02 | 0.83% | $4.23 |
First Trust RiverFront Dynamic Emerging Markets ETF (RFEM) | ||||
Actual | $1,000.00 | $816.00 | 0.95% | $4.35 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,020.42 | 0.95% | $4.84 |
(a) | Expenses are equal to the annualized expense ratios as indicated in the table multiplied by the average account value over the period (May 1, 2022 through October 31, 2022), multiplied by 184/365 (to reflect the six-month period). |
Forward Foreign Currency Contracts | ||||||||||||||
Settlement Date |
Counterparty | Amount Purchased |
Amount Sold |
Purchase Value as of 10/31/2022 |
Sale Value as of 10/31/2022 |
Unrealized Appreciation/ (Depreciation) | ||||||||
12/01/22 | BBH | USD | 7,677,596 | EUR | 7,598,194 | $ 7,677,596 | $ 7,524,366 | $ 153,230 | ||||||
12/01/22 | BBH | USD | 5,548,842 | GBP | 4,767,660 | 5,548,842 | 5,471,881 | 76,961 | ||||||
12/01/22 | BBH | USD | 11,229,099 | JPY | 1,637,651,697 | $11,229,099 | 11,049,084 | 180,015 | ||||||
Net Unrealized Appreciation /
(Depreciation)
|
$410,206 |
Counterparty Abbreviations | |
BBH | Brown Brothers Harriman and Co. |
Forward Foreign Currency Contracts | ||||||||||||||
Settlement Date |
Counterparty | Amount Purchased |
Amount Sold |
Purchase Value as of 10/31/2022 |
Sale Value as of 10/31/2022 |
Unrealized Appreciation/ (Depreciation) | ||||||||
12/01/22 | BBH | USD | 2,881,864 | EUR | 2,852,060 | $ 2,881,864 | $ 2,824,348 | $ 57,516 | ||||||
12/01/22 | BBH | USD | 1,458,851 | GBP | 1,253,469 | 1,458,851 | 1,438,617 | 20,234 | ||||||
Net Unrealized Appreciation /
(Depreciation)
|
$77,750 |
Counterparty Abbreviations | |
BBH | Brown Brothers Harriman and Co. |
(a) | Portfolio securities are categorized based upon their country of incorporation. For a breakdown of the portfolio securities by sector, please see the Fund Performance Overview. |
(b) | Non-income producing security. |
(c) | This security is exempt from registration upon resale under Rule 144A of the 1933 Act and may be resold in transactions exempt from registration, normally to qualified institutional buyers. This security is not restricted on the foreign exchange where it trades freely without any additional registration. As such, it does not require the additional disclosure required of restricted securities. |
(d) | This security is fair valued by the Advisor’s Pricing Committee in accordance with procedures approved by the Trust’s Board of Trustees, and in accordance with the provisions of the Investment Company Act of 1940 and rules thereunder, as amended. At October 31, 2022, securities noted as such are valued at $40,899 or 0.2% of net assets. |
(e) | Pursuant to procedures adopted by the Trust’s Board of Trustees, this security has been determined to be illiquid by First Trust Advisors L.P., the Fund’s advisor. |
Currency Exposure Diversification |
% of Total Investments† |
USD | 26.0% |
EUR | 25.5 |
CHF | 22.0 |
GBP | 12.6 |
DKK | 6.2 |
NOK | 4.9 |
ILS | 1.7 |
AUD | 1.1 |
Total | 100.0% |
† | The weightings include the impact of currency forwards. |
Currency Abbreviations | |
AUD | Australian Dollar |
CHF | Swiss Franc |
DKK | Danish Krone |
EUR | Euro |
GBP | British Pound Sterling |
ILS | Israeli Shekel |
NOK | Norwegian Krone |
USD | United States Dollar |
Total Value at 10/31/2022 |
Level
1 Quoted Prices |
Level
2 Significant Observable Inputs |
Level
3 Significant Unobservable Inputs | |
Common Stocks: | ||||
United Kingdom | $ 3,148,297 | $ 3,107,398 | $ 40,899 | $ — |
Other Country Categories* | 15,000,150 | 15,000,150 | — | — |
Real Estate Investment Trusts* | 330,381 | 330,381 | — | — |
Exchange-Traded Funds* | 287,363 | 287,363 | — | — |
Total Investments | 18,766,191 | 18,725,292 | 40,899 | — |
Forward Foreign Currency Contracts** | 77,750 | — | 77,750 | — |
Total | $ 18,843,941 | $ 18,725,292 | $ 118,649 | $— |
* | See Portfolio of Investments for country breakout. |
** | See the Schedule of Forward Foreign Currency Contracts for contract and currency detail. |
Forward Foreign Currency Contracts | ||||||||||||||
Settlement Date |
Counterparty | Amount Purchased |
Amount Sold |
Purchase Value as of 10/31/2022 |
Sale Value as of 10/31/2022 |
Unrealized Appreciation/ (Depreciation) | ||||||||
12/01/22 | SG | USD | 1,004,237 | KRW | 1,429,110,000 | $ 1,004,237 | $ 1,003,402 | $ 835 | ||||||
12/01/22 | SG | USD | 2,080,221 | TWD | 66,906,150 | 2,080,221 | 2,080,682 | (461) | ||||||
Net Unrealized Appreciation /
(Depreciation)
|
$374 |
Counterparty Abbreviations | |
SG | Societe Generale |