QCLN
First Trust NASDAQ® Clean Edge® Green Energy Index Fund
All data as of 6/30/09
The First Trust NASDAQ® Clean Edge® Green Energy Index Fund is based on the NASDAQ® Clean Edge® Green Energy Index. The index is a modified market capitalizationweighted index designed to track the performance of companies that are publicly traded in the United States and that are primarily manufacturers, developers, distributors
and/or installers of clean energy technologies, as defined by Clean Edge.
Quarter
YTD
1 Yr.
3 Yr.
5 Yr.
10 Yr.
Since Fund
Inception
30.69%
30.69%
19.95%
31.46%
23.68%
23.68%
15.39%
23.81%
-43.97%
-43.97%
-28.58%
-44.03%
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
-14.28%
-14.28%
-11.93%
-14.31%
NASDAQ® Clean Edge® Green Energy Index2 30.92%
Russell 2000® Index
20.69%
24.02%
2.64%
-43.57%
-25.01%
N/A
N/A
N/A
N/A
N/A
N/A
-13.66%
-16.76%
Quarter End Performance
1
Fund Performance
NAV
After Tax Held
After Tax Sold
Market Price
Index Performance
Annual Total Returns
First Trust NASDAQ® Clean Edge® Green Energy Index Fund
Russell 2000® Index
Growth of $10,000
2/8/07 – 6/30/09
First Trust NASDAQ® Clean Edge® Green Energy Index Fund
Russell 2000® Index
$6,920
$6,448
2008
6/30/09
-63.74%
-33.79%
23.68%
2.64%
Fund Data
Number of Holdings
Maximum Market Cap.
Median Market Cap.
$20,000
Minimum Market Cap.
$15,000
47 Pursuant to contract, First Trust has
agreed to waive fees and/or pay fund
$13.28 Billion
expenses to prevent the net expense
$641 Million ratio of the fund from exceeding 0.60%
$85 Million per year, at least until May 15, 2010.
Price/Earnings
18.33 + Prior to January 5, 2009, the Index was
Price/Book
1.92 Series Index.
11.13
Price/Cash Flow
$10,000
Fund Details
Fund Ticker
QCLN
CUSIP
33733E500
Intraday NAV
QCLNI
Index Ticker
CELS
Fund Inception Date
2/8/07
Index Inception Date+
11/17/06
Gross Expense Ratio (12/31/08)
0.83%
Net Expense Ratio
0.60%
Rebalance Frequency
Quarterly
Dividend Frequency
Semi-Annual
Primary Listing
NASDAQ
Marginable
YES
Options
NO
Short Sell
YES
Price/Sales
named the NASDAQ® Clean Edge® U.S. Liquid
1.69
$5,000
Top 10 Holdings
2/8/07
'07
'08
6/09
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 ftportfolios.com.
1
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.
2
Past performance is not a guarantee of future results. Performance
information for the NASDAQ® Clean Edge® Green Energy Index is for
illustrative purposes only and does not represent actual fund
performance. No representation is being made that any investment will
achieve performance similar to that shown.The Index does 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. All index returns assume that
dividends are reinvested when they are received.
QCLNFS000709
See the reverse side for important disclosures.
Linear Technology Corporation
LLTC
8.08%
MEMC Electronic Materials, Inc.
WFR
7.48%
First Solar, Inc.
FSLR
6.91%
ON Semiconductor Corporation
ONNN
6.64%
Cree, Inc.
CREE
6.02%
Suntech Power Holdings Co., Ltd. (ADR)
STP
4.43%
Ormat Technologies Inc.
ORA
4.09%
AVX Corporation
AVX
4.00%
Itron, Inc.
ITRI
3.82%
SunPower Corporation
SPWRA
3.43%
Sector Breakdown
Basic Materials
Consumer Goods
Industrials
Technology
Utilities
1.24%
0.78%
55.34%
38.55%
4.09%
QCLN
First Trust NASDAQ® Clean Edge® Green Energy Index Fund
All data as of 6/30/09
Fund Objective
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
NASDAQ® Clean Edge® Green Energy Index.
The index is a modified market capitalization weighted index designed to track the performance of clean energy companies that are publicly traded in the
United States and includes companies engaged in manufacturing, development, distribution and installation of emerging clean-energy technologies including,
but not limited to, solar photovoltaics, biofuels and advanced batteries.
The NASDAQ® Clean Edge® Green Energy Index is a modified market cap weighted index in which larger companies receive a larger index weighting. The
index weighting methodology includes caps to prevent high concentrations among larger alternative energy stocks.
The index is reconstituted twice a year in March and September and rebalanced quarterly.
RISKS
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.
The fund’s return may not match the return of the NASDAQ® Clean Edge® Green Energy Index.The fund may not be fully invested at times. 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.The fund may invest
in small capitalization and mid capitalization companies. Such companies may experience greater price volatility than larger, more established companies.
Investors buying or selling fund shares on the secondary market may incur customary brokerage commissions. 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, shares may only be redeemed directly from the
fund by authorized participants, in very large creation/redemption units.
The fund is concentrated in stocks of renewable and alternative energy companies which subjects the fund to additional risks, including limited diversification. Renewable
and alternative energy companies are subject to certain risks, including price and supply fluctuations caused by international politics, energy conservation, taxes, price
controls, and other regulatory policies of various governments. Shares of clean energy companies have been significantly more volatile than companies operating in more
established industries.
The fund is classified as “non-diversified.” A non-diversified fund generally may invest a larger percentage of its assets in the securities of a smaller number of issuers. As a result,
the fund may be more susceptible to the risks associated with these particular companies, or to a single economic, political or regulatory occurrence affecting these companies.
NASDAQ and Clean Edge are registered trademarks (the “Marks”) of The NASDAQ Stock Market LLC (“Nasdaq”) and Clean Edge, Inc. (“Clean Edge”) respectively. NASDAQ and Clean Edge are,
collectively with their affiliates, the “Corporations.”The Marks are licensed for use by First Trust Advisors L.P.The Fund has not been passed on by the Corporations as to its legality or suitability.The
Fund is not issued, endorsed, sold or promoted by the Corporations.The Fund should not be construed in any way as investment advice by the Corporations. THE CORPORATIONS MAKE NO
WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE FUND.
The Russell 2000® Index is comprised of the smallest 2000 companies in the Russell 3000 Index.
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, which contains this and other information about the fund. Read it carefully before you invest.
Not FDIC Insured • Not Bank Guaranteed • May Lose Value
1-866-848-9727
www.ftportfolios.com
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.