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Two of First Trust ETFs Based on NASDAQ® Indexes Surpass $1 Billion in AUM

First Trust Advisors L.P. (“First Trust”), a leading exchange-traded fund (“ETF”) provider and asset manager, announced today that two of its ETFs based on Nasdaq indexes are celebrating a milestone. The First Trust NASDAQ-100 Equal Weighted Index Fund (NASDAQ: QQEW) and the First Trust NASDAQ® Clean Edge® Green Energy Index Fund (NASDAQ: QCLN) (collectively, “funds”) each surpassed $1 billion in assets under management (“AUM”) as of 11/30/20.

QQEW seeks to replicate as closely as possible (before the fund’s fees and expenses) the price and yield of the NASDAQ-100 Equal Weighted Index℠. QQEW’s equal-weighted methodology seeks to avoid the top-heavy concentration common to many market-cap weighted indices and may be appealing to investors who are looking to reduce stock specific risk. “For many years the NASDAQ-100 Index® has included some of the most innovative and dynamic companies in the world. The equally-weighted approach employed by QQEW provides investors more balanced exposure to these stocks than a market-cap weighted index methodology,” said Ryan Issakainen, CFA, Senior Vice President, ETF Strategist at First Trust. As of 10/30/20, the top 10 holdings in the NASDAQ-100 Index® represented more than 58% of the index. QQEW allocates a total of 10% in these same top 10 companies at each rebalance.

QCLN provides a broad, diversified approach to the theme of clean energy. 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 NASDAQ® Clean Edge® Green Energy Index℠. “Green and renewable energy has been one of our favorite investment themes this year, and we believe it has reached a tipping point, as costs have declined dramatically over the past few years and become competitive with traditional power sources. QCLN provides a more balanced approach to this theme, providing exposure to various aspects of green energy, including solar power, wind power, advanced batteries, electric vehicles and others,” said Issakainen.

QQEW and QCLN reached a combined total of over $2.6 billion in AUM, as of 11/30/20.

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 $164 billion as of November 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.

QQEW’s return may not match the return of the NASDAQ-100 Equal Weighted IndexSM. QCLN’s return may not match the return of the NASDAQ Clean Edge® Green Energy Index. 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. 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 security owned by the funds, fund shares or securities 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 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.

Renewable and alternative energy companies can be significantly affected by obsolescence of existing technology, short product cycles, legislation resulting in more strict government regulations and enforcement policies, fluctuations in energy prices and supply and demand of alternative energy fuels, energy conservation, the success of exploration projects, the supply of and demand for oil and gas, world events and economic conditions. Shares of clean energy companies have been significantly more volatile than shares of companies operating in other more established industries. This industry is relatively nascent and under-researched in comparison to more established and mature sectors.

QCLN is classified as "non-diversified" 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 funds. First Trust Advisors L.P. is an affiliate of First Trust Portfolios L.P., the funds’ distributor.

Please see each fund’s prospectus for a complete list of all the risks of investing in the funds.

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 judgement in determining whether investments are appropriate for their clients.

Nasdaq®, NASDAQ-100®, NASDAQ-100 Index®, NASDAQ-100 Equal Weighted Index℠, Clean Edge® and NASDAQ® Clean Edge® Green Energy Index℠ are registered trademarks and service marks of Nasdaq, Inc. and Clean Edge, Inc., respectively (together with its affiliates hereinafter referred to as the “Corporations”) and are licensed for use by First Trust. The Fund has not been passed on by the Corporations as to its legality or suitability. The Funds are not issued, endorsed, sold or promoted by the Corporations. THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE FUNDS.

Contacts:

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

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