Rule 497 (k)
File No. 333-140895
AlphaDEX(R)
Family of ETFs
SUMMARY PROSPECTUS
First Trust Energy AlphaDEX(R) Fund
Ticker Symbol: FXN
Exchange: NYSE Arca, Inc.
Before you invest, you may want to review the Fund's prospectus, which contains
more information about the Fund and its risks. You can find the Fund's
prospectus and other information about the Fund, including the statement of
additional information and most recent reports to shareholders, online at
http://www.ftportfolios.com/retail/ETF/ETFfundnews.aspx?Ticker=FXN. You can
also get this information at no cost by calling (800) 621-1675 or by sending an
e-mail request to info@ftportfolios.com. The Fund's prospectus and statement of
additional information, both dated November 30, 2011, as supplemented
February 1, 2012, March 6, 2012 and November 13, 2012, are all incorporated by
reference into this Summary Prospectus.
Investment Objective
The First Trust Energy AlphaDEX(R) Fund (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 StrataQuant(R)
Energy Index (the "Index").
November 30, 2011,
as supplemented February 1, 2012,
FIRST TRUST March 6, 2012 and November 13, 2012
Fees and Expenses of the Fund
The following table describes the fees and expenses you may pay if you
buy and hold Shares of the Fund. Investors purchasing and selling Shares
may be subject to costs (including customary brokerage commissions)
charged by their broker.
Shareholder Fees (fees paid directly from your investment)
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage
of offering price) None
Annual Fund Operating Expenses (Expenses that you pay each year
as a percentage of the value of your investment)
Management Fees 0.50%
Distribution and Service (12b-1) Fees 0.00%
Other Expenses 0.25%
______
Total Annual Fund Operating Expenses 0.75%
Fee Waiver and Expense Reimbursement(1) 0.05%
______
Total Annual Fund Operating Expenses After Fee Waiver
and Expense Reimbursement 0.70%
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Example
The example below is intended to help you compare the cost of investing in the
Fund with the cost of investing in other funds. This example does not take
into account customary brokerage commissions that you pay when purchasing or
selling Shares of the Fund in the secondary market.
The example assumes that you invest $10,000 in the Fund for the time periods
indicated and then you retain the Shares or redeem all of your Shares at the
end of those periods. The example also assumes that your investment has a 5%
return each year and that the Fund's net annual operating expenses remain at
current levels until December 6, 2012. Additionally, the example assumes that
the Fund imposes a 12b-1 fee of 0.25% per annum of the Fund's average daily
net assets following November 28, 2012. The example assumes that First Trust's
agreement to waive fees and/or pay the Fund's expenses to the extent necessary
to prevent the operating expenses of the Fund (excluding interest expense,
brokerage commissions and other trading expenses, taxes, and extraordinary
expenses) from exceeding 0.70% of average daily net assets per year will be
terminated following December 6, 2012. Although your actual costs may be
higher or lower, based on these assumptions your costs would be:
1 Year 3 Years 5 Years 10 Years
$72 $279 $517 $1,201
__________________
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(1) First Trust has agreed to waive fees and/or pay the Fund's expenses to the
extent necessary to prevent the operating expenses of the Fund (excluding
interest expense, brokerage commissions and other trading expenses, taxes,
and extraordinary expenses) from exceeding 0.70% of its average daily net
assets per year at least until December 6, 2012. Expenses borne by First
Trust are subject to reimbursement by the Fund for up to three years from
the date the fee or expense was incurred, but no reimbursement payment
will be made by the Fund at any time if it would result in the Fund's
expenses exceeding 0.70% of its average daily net assets per year. The
agreement may be terminated by the Trust on behalf of the Fund at any time
and by First Trust only after December 6, 2012 upon 60 days' written
notice.
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it buys and
sells securities (or "turns over" its portfolio). A higher portfolio
turnover rate may indicate higher transaction costs and may result in
higher taxes when Shares are held in a taxable account. These costs,
which are not reflected in annual fund operating expenses or in the
example, affect the Fund's performance. During the most recent fiscal
year, the Fund's portfolio turnover rate was 101% of the average value
of its portfolio.
Principal Investment Strategies
The Fund will normally invest at least 90% of its net assets in common
stocks that comprise the Index. The Fund, using an "indexing" investment
approach, attempts to replicate, before fees and expenses, the
performance of the Index. First Trust seeks a correlation of 0.95 or
better (before fees and expenses) between the Fund's performance and the
performance of the Index; a figure of 1.00 would represent perfect
correlation. First Trust will regularly monitor the Fund's tracking
accuracy and will seek to maintain an appropriate correlation.
The Index is in the "StrataQuant(R) Series," a family of custom enhanced
indices developed, maintained and sponsored by NYSE Euronext or its
affiliates ("NYSE Euronext" or an "Index Provider"), and licensed to
First Trust Portfolios L.P. by Archipelago Holdings, Inc.
("Archipelago"), an affiliate of NYSE Euronext. Prior to the acquisition
of the American Stock Exchange LLC (the "AMEX") by NYSE Euronext, the
equity indices in the StrataQuant(R) Series were developed, maintained
and sponsored by the AMEX. The Index is a modified equal-dollar weighted
index designed by NYSE Euronext to objectively identify and select
stocks from the Russell 1000(R) Index in the energy sector that may
generate positive alpha relative to traditional passive-style indices
through the use of the AlphaDEX(R) screening methodology. Alpha is an
indication of how much an investment outperforms or underperforms on a
risk-adjusted basis relative to its benchmark. As of December 31, 2010,
the Index was comprised of 55 stocks. The Index is rebalanced and
reconstituted as of the last business day of each calendar quarter.
Changes to the Index will be effective at the open of trading on the
fourth business day of the following month.
The Fund may lend securities representing up to 20% of the value of its total
assets to broker-dealers, banks and other institutions to generate additional
income. When the Fund loans its portfolio securities, it will receive, at the
inception of each loan, cash collateral equal to at least 102% (for domestic
securities) or 105% (for international securities) of the market value of the
loaned securities.
Principal Risks
You could lose money by investing in the Fund. An investment in the Fund
is not a deposit of a bank and is not insured or guaranteed by the
Federal Deposit Insurance Corporation or any other governmental agency.
MARKET RISK. Market risk is the risk that a particular stock owned by
the Fund, Shares of the Fund or stocks in general may fall in value.
Shares are subject to market fluctuations caused by such factors as
economic, political, regulatory or market developments, changes in
interest rates and perceived trends in stock prices. Overall stock
values could decline generally or could underperform other investments.
Companies with smaller market capitalizations are generally subject to
additional market risk.
NON-CORRELATION RISK. The Fund's return may not match the return of the
Index for a number of reasons. For example, the Fund incurs operating
expenses not applicable to the Index, and may incur costs in buying and
selling securities, especially when rebalancing the Fund's portfolio
holdings to reflect changes in the composition of the Index. In
addition, the Fund's portfolio holdings may not exactly replicate the
securities included in the Index or the ratios between the securities
included in the Index.
REPLICATION MANAGEMENT RISK. The Fund is exposed to additional market
risk due to its policy of investing principally in the securities
included in the Index. As a result of this policy, securities held by
the Fund will generally not be bought or sold in response to market
fluctuations and the securities may be issued by companies concentrated
in a particular industry. Therefore, the Fund will generally not sell a
stock because the stock's issuer is in financial trouble, unless that
stock is removed or is anticipated to be removed from the Index.
NON-DIVERSIFICATION RISK. The Fund is classified as "non-diversified"
under the Investment Company Act of 1940, as amended (the "1940 Act").
As a result, the Fund is only limited as to the percentage of its assets
which may be invested in the securities of any one issuer by the
diversification requirements imposed by the Internal Revenue Code of
1986, as amended (the "Code"). The Fund may invest a relatively high
percentage of its assets in a limited number of issuers.
INDEX TRACKING RISK. You should anticipate that the value of Fund Shares
will decline, more or less, in correlation with any decline in the value
of that Fund's Index.
ENERGY SECTOR RISK. The Fund invests in the securities of companies in
the energy sector. The companies in the energy sector include integrated
oil companies that are involved in the exploration, production and
refining process, gas distributors and pipeline-related companies and
other energy companies involved with mining, producing and delivering
energy-related services and drilling. General problems of issuers in the
energy sector include volatile fluctuations in price and supply of
energy fuels, international politics, terrorist attacks, reduced demand,
the success of exploration projects, clean-up and litigation costs
relating to oil spills and environmental damage, and tax and other
regulatory policies of various governments. Natural disasters, such as
hurricanes in the Gulf of Mexico, also impact the petroleum industry.
Oil production and refining companies are subject to extensive federal,
state and local environmental laws and regulations regarding air
emissions and the disposal of hazardous materials. In addition, oil
prices have been extremely volatile.
SECURITIES LENDING RISK. The Fund may engage in securities lending. Securities
lending involves the risk that the Fund may lose money because the borrower of
the Fund's loaned securities fails to return the securities in a timely manner
or at all. The Fund could also lose money in the event of a decline in the value
of the collateral provided for the loaned securities or a decline in the value
of any investments made with cash collateral. These events could also trigger
adverse tax consequences for the Fund.
Annual Total Return
The bar chart and table below illustrate the annual calendar year
returns of the Fund based on NAV for the past three years as well as the
average annual Fund and Index returns for the one year and since
inception periods ended December 31, 2010. The bar chart and table
provide an indication of the risks of investing in the Fund by showing
changes in the Fund's performance from year-to-year and by showing how
the Fund's average annual total returns based on NAV compare to those of
the Index, a broad-based market index and two specialized securities
market indices. With respect to the Russell 1000(R) Energy Index, on or
about September 18, 2008, Russell Investment Group ("Russell") began
calculating its Russell U.S. Indices using an enhanced Russell sector
scheme, the Russell Global Sectors (the "RGS"). The RGS and the former
U.S. sector scheme ran in tandem until June 30, 2009, when Russell
officially transitioned to the RGS and ceased calculating its indices
using the U.S. sector scheme. In addition to the implementation of the
RGS, Russell combined the Russell 1000(R) Integrated Oils Index and the
Russell 1000(R) Other Energy Index into one index, the Russell 1000(R)
Energy Index. Consequently, performance data is not available for the
Russell 1000(R) Energy Index for the entire "Since Inception" period set
forth in the table because performance data does not exist using solely
the U.S. sector scheme or alternatively, using solely the RGS. See
"Total Return Information" for additional performance information
regarding the Fund. The Fund's performance information is accessible on
the Fund's website at www.ftportfolios.com.
Returns before taxes do not reflect the effects of any income or capital
gains taxes. All after-tax returns are calculated using the historical
highest individual federal marginal income tax rates and do not reflect
the impact of any state or local tax. Returns after taxes on
distributions reflect the taxed return on the payment of dividends and
capital gains. Returns after taxes on distributions and sale of Shares
assume you sold your Shares at period end, and, therefore, are also
adjusted for any capital gains or losses incurred. Returns for the
market indices do not include expenses, which are deducted from Fund
returns, or taxes.
Your own actual after-tax returns will depend on your specific tax
situation and may differ from what is shown here. After-tax returns are
not relevant to investors who hold Fund Shares in tax-deferred accounts
such as individual retirement accounts (IRAs) or employee-sponsored
retirement plans.
First Trust Energy AlphaDEX(R) Fund-Total Returns(1)
[GRAPHIC OMITTED]
[DATA POINTS REPRESENTED IN BAR CHART]
Calendar Year Total Returns as of 12/31
Year %
------ --------
2008 -50.78%
2009 47.52%
2010 27.77%
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(1) The Fund's year-to-date return based on NAV for the period
12/31/2010 to 9/30/2011 was -21.46%.
During the three-year period ended December 31, 2010, the Fund's highest
and lowest calendar quarter returns were 29.92% and -38.75%,
respectively, for the quarters ended June 30, 2008 and December 31,
2008. The Fund's past performance (before and after taxes) is not
necessarily an indication of how the Fund will perform in the future.
Average Annual Total Returns for the Periods Ended December 31, 2010
1 Year Since Inception
(5/8/2007)
Return Before Taxes 27.77% 1.95%
Return After Taxes on Distributions 27.49% 1.80%
Return After Taxes on Distributions and Sale of Shares 18.03% 1.57%
StrataQuant(R) Energy Index 28.70% 2.65%
Russell 1000(R) Index 16.10% -2.36%
S&P 500(R) Energy Index 20.46% 2.43%
Russell 1000(R) Energy Index 21.11% -
Management
Investment Advisor
First Trust Advisors L.P. ("First Trust")
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Portfolio Managers
The Fund's portfolio is managed by a team (the "Investment Committee")
consisting of: Daniel J. Lindquist, Chairman of the Investment Committee
and Senior Vice President of First Trust; Robert F. Carey, Chief
Investment Officer and Senior Vice President of First Trust; Jon C.
Erickson, Senior Vice President of First Trust; David G. McGarel, Senior
Vice President of First Trust; Roger F. Testin, Senior Vice President of
First Trust; and Stan Ueland, Vice President of First Trust. Each
Investment Committee member has served as a part of the portfolio
management team of the Fund since inception.
Purchase and Sale of Fund Shares
The Fund issues and redeems Shares on a continuous basis, at NAV, only
in Creation Units consisting of 50,000 Shares. The Fund's Creation Units
are issued and redeemed principally in-kind for securities included in
the Fund's portfolio. Individual Shares may only be purchased and sold
on NYSE Arca through a broker-dealer. Shares of the Fund will trade on
NYSE Arca at market prices rather than NAV, which may cause the Shares
to trade at a price greater than NAV (premium) or less than NAV
(discount).
Tax Information
The Fund's distributions are taxable and will generally be taxed as
ordinary income or capital gains.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase the Fund through a broker-dealer or other financial
intermediary (such as a bank), First Trust and First Trust Portfolios
L.P., the Fund's distributor, may pay the intermediary for the sale of
Fund Shares and related services. These payments may create a conflict
of interest by influencing the broker-dealer or other intermediary and
your salesperson to recommend the Fund over another investment. Ask your
salesperson or visit your financial intermediary's website for more
information.
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