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First Trust ETFs Based On IPOX® Indexes Reach $2 Billion AUM

First Trust Advisors L.P. (“First Trust”), a leading exchange-traded fund (“ETF”) provider and asset manager, announced today that its ETFs based on IPOX® indexes are celebrating a milestone. The First Trust US Equity Opportunities ETF (NYSE Arca: FPX), the First Trust IPOX® Europe Equity Opportunities ETF (Nasdaq: FPXE) and the First Trust International Equity Opportunities ETF (Nasdaq: FPXI) (collectively “the funds”), together, reached approximately $2 billion in assets under management (“AUM”) as of September 30, 2020.

“Amid near record deal flow and significant companies lined up to go public, including China’s Ant Financial, exposure to the IPOX® Indexes provides investors with a diversified, one stop solution to access the performance of the largest and typically best performing initial public offerings (“IPOs”) and spin-offs across global regions, historically an economically significant group of companies which often serve as a proxy for economic growth and innovation,” said Dr. Josef Schuster, CEO of IPOX Schuster LLC, the developer and sponsor of the IPOX® Indexes. “We believe that the unique investment approach we have pioneered will continue to benefit investors seeking equity exposure outside the traditional benchmarks,” said Schuster.

Data from IPOX Schuster shows that a total of 139 equity IPOs (deal size above $50 million) have been priced in the U.S. so far this year (as of 10/21/20), up 21.93% from the same period a year ago. “We believe the focus on recent IPOs and spin-offs is an important key to the success of these unique strategies, which provide exposure to the innovation and growth of many recently issued stocks long before they have been added to traditional index funds,” said Ryan Issakainen, CFA, Senior Vice President, ETF Strategist at First Trust.

FPX, FPXE and FPXI seek investment results that correspond generally to the price and yield (before the funds’ fees and expenses) of the IPOX®-100 U.S. Index, the IPOX®-100 Europe Index and the IPOX® International Index, respectively. Since their inception, all three funds have outperformed their benchmarks, based on data as of September 30, 2020.

Performance (%) as of 9/30/2020

3 Month

YTD

1 Year

3 Year

5 Year

10 Year

Since Fund
Inception*

FPX Performance**

Net Asset Value (NAV)

15.21

20.64

28.21

15.60

15.52

17.27

12.40

Market Price

15.34

20.61

28.19

15.59

15.56

17.27

12.40

Index Performance***

IPOX® 100 U.S. Index

15.39

21.03

28.73

16.12

16.06

17.91

13.04

Russell 3000® Index

9.21

5.41

15.00

11.65

13.69

13.48

8.99

S&P 500 Index

8.93

5.57

15.15

12.28

14.15

13.74

9.11

FPXE Performance**

Net Asset Value (NAV)

5.78

15.23

28.33

N/A

N/A

N/A

14.11

Market Price

6.03

15.21

28.51

N/A

N/A

N/A

14.33

Index Performance***

IPOX® 100 Europe Index

6.50

16.63

30.19

N/A

N/A

N/A

15.64

MSI Europe Index

4.51

-8.85

-0.79

N/A

N/A

N/A

0.06

FPXI Performance**

Net Asset Value (NAV)

11.67

41.59

56.24

19.09

18.81

N/A

12.63

Market Price

11.99

41.71

57.00

19.05

18.94

N/A

12.71

Index Performance***

IPOX® 100 U.S. Index

11.85

42.03

57.10

19.94

19.83

N/A

13.44

MSCI World ex USA Index

4.92

-7.13

0.16

0.62

5.32

N/A

3.05

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.

FPX inception date: 4/12/2006, FPX net expense ratio: 0.58% (expenses are capped contractually at 0.60% per year, at least until April 30, 2021); FPXE inception date: 10/4/2018, FPXE expense ratio: 0.70%; FPXI inception date: 11/4/2014, FPXI expense ratio: 0.70%

*NAV returns are based on the fund’s net asset value which represents the fund’s net assets (assets less liabilities) divided by the fund’s outstanding shares. Market Price returns are based on the midpoint of the bid/ask spread on the stock exchange on which shares of the fund are listed for trading 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. FPX’s performance reflects fee waivers and expense reimbursements, absent which performance would have been lower.

**Performance information for the indexes is for illustrative purposes only and does not represent the performance of any actual investment or fund. Actual performance of a fund may be lower or higher than the index. 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.

For more information about First Trust, please contact Ryan Issakainen at (630) 765-8689 or RIssakainen@FTAdvisors.com.

About First Trust

First Trust is a federally registered investment advisor and serves as the fund’s investment advisor. First Trust and its affiliate First Trust Portfolios L.P. (“FTP”), a FINRA registered broker-dealer, are privately held companies that provide a variety of investment services. First Trust has collective assets under management or supervision of approximately $149 billion as of September 30, 2020 through unit investment trusts, exchange-traded funds, closed-end funds, mutual funds and separate managed accounts. First Trust is the supervisor of the First Trust unit investment trusts, while FTP is the sponsor. FTP is also a distributor of mutual fund shares and exchange-traded fund creation units. First Trust and FTP are based in Wheaton, Illinois. For more information, visit http://www.ftportfolios.com.

You should consider the funds’ investment objectives, risks, and charges and expenses carefully before investing. Contact First Trust Portfolios L.P. at 1-800-621-1675 to obtain a prospectus or summary prospectus which contains this and other information about the funds. The prospectus or summary prospectus should be read carefully before investing.

ETF Characteristics
The funds list and principally trade their shares on The Nasdaq Stock Market LLC.

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. If the 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 discount to the fund's net asset value and possibly face delisting.

Risk Considerations
The funds’ shares will change in value, and you could lose money by investing in the funds. One of the principal risks of investing in the funds is market risk. Market risk is the risk that a particular stock owned by the funds, fund shares or stocks in general may fall in value. There can be no assurance that the funds’ investment objective will be achieved. The outbreak of the respiratory disease designated as COVID-19 in December 2019 has caused significant volatility and declines in global financial markets, which have caused losses for investors. The COVID-19 pandemic may last for an extended period of time and will continue to impact the economy for the foreseeable future.

The funds may invest in securities issued by companies concentrated in a particular sector or country which involves additional risks including limited diversification. The funds may invest in small capitalization and mid capitalization companies. Such companies may experience greater price volatility than larger, more established companies.

The funds may be a constituent of one or more indices. As a result, the funds may be included in one or more index-tracking exchange-traded funds or mutual funds. Being a component security of such a vehicle could greatly affect the trading activity involving the funds’ shares, the size of the funds and the market volatility of the funds.

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 financial information, and exchange control restrictions impacting non-U.S. issuers. Changes in currency exchange rates and the relative value of non-US currencies may affect the value of a fund’s investments and the value of a fund’s shares. These risks may be heightened for securities of companies located in, or with significant operations in, emerging market countries. The fund may invest in depositary receipts which may be less liquid than the underlying shares in their primary trading market.

The economy of China differs, often unfavorably, from the U.S. economy in such respects as structure, general development, government involvement, wealth distribution, rate of inflation, growth rate, allocation of resources and capital reinvestment, among others. The central government has historically exercised substantial control over virtually every sector of the Chinese economy through administrative regulation and/or state ownership. Actions of the Chinese central and local government authorities continue to have a substantial effect on economic conditions in China. Furthermore, China’s economy is dependent on the economies of other Asian countries and can be significantly affected by currency fluctuations and increasing competition from Asia’s other emerging economies.

FPXI is subject to certain risks associated specifically with Hong Kong, including Hong Kong’s political and economic environment and the volatility of and the concentration of real estate companies listed on the Hong Kong Stock Exchange. Because of Hong Kong’s reversion to China, any increase in uncertainty as to the economic and political status of Hong Kong or a deterioration of the relationship between China and the U.S. could have negative implications on stocks listed on the Hong Kong Stock Exchange. Securities prices on the Hong Kong Stock Exchange can be highly volatile and are sensitive to developments in Hong Kong and China, as well as other world markets.

FPXE is subject to greater risks of adverse events which occur in the European region and may experience greater volatility than a fund that is more broadly diversified geographically. A significant number of countries in Europe are member states in the European Union, and the member states no longer control their own monetary policies. In these member states, the authority to direct monetary policies, including money supply and official interest rates for the Euro, is exercised by the European Central Bank. The United Kingdom's referendum on June 23, 2016 to leave the European Union (known as "Brexit") sparked depreciation in the value of the British pound, short-term declines in the stock markets and heightened risk of continued economic volatility worldwide.

The stocks of companies that have recently conducted an initial public offering are often subject to price volatility and speculative trading. These stocks may have exhibited above average price appreciation in connection with the initial public offering prior to inclusion in the funds. The price of stocks included in the funds may not continue to appreciate and their performance may not replicate the performance exhibited in the past.

As the use of Internet technology has become more prevalent in the course of business, the funds have become more susceptible to potential operational risks through breaches in cyber security.

Changes in currency exchange rates and the relative value of non-U.S. currencies will affect the value of FPXE’s and FPXI’s investments and the value of fund shares.

The funds are classified as “non-diversified” and may invest a relatively high percentage of their assets in a limited number of issuers. As a result, the funds 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 funds. First Trust Advisors L.P. is an affiliate of First Trust Portfolios L.P., the funds’ distributor.

References to specific securities should not be construed as a recommendation to buy or sell and should not be assumed profitable.

The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial professionals are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.

IPOX® and IPOX® International Index are registered international trademarks and service marks of IPOX® Schuster LLC (“IPOX”) and have been licensed for use by First Trust. The funds are not sponsored, endorsed, sold or promoted by IPOX, and IPOX makes no representation regarding the advisability of trading in such funds.

Index Definitions

The MSCI Europe Index is a free float-adjusted market capitalization-weighted index that is designed to measure the equity market performance of 16 developed markets in Europe.

The MSCI World ex USA Index includes developed markets and is designed to provide a broad measure of stock performance throughout the world, with the exception of U.S.-based companies.

The Russell 3000 Index is comprised of the 3000 largest and most liquid stocks based and traded in the U.S.

The S&P 500 Index is an unmanaged index of 500 stocks used to measure large-cap U.S. stock market performance.

Source: First Trust Advisors L.P.

Contacts:

Ryan Issakainen
First Trust
(630) 765-8689
RIssakainen@FTAdvisors.com

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