SKYY First Trust Cloud Computing ETF

Transcription

1 SKYY First Trust Cloud Computing ETF ETF.com segment: Equity: Global Technology Competing ETFs: HACK, PRNT, IXN, CIBR, IPAY Related ETF Channels: Technology, Equal-Weighted, Smart-Beta ETFs, Broad-based, Global, Equity, Sectors Find more ETFs with our ETF Screener and Database *Unless otherwise stated, data provided by FactSet. N/A 66 SKYY FUND DESCRIPTION The First Trust Cloud Computing ETF tracks a tiered equal-weighted index of companies involved in the cloud computing industry. SKYY FACTSET ANALYTICS INSIGHT SKYY is the only ETF on the market that focuses on cloud computing, but its complex methodology highlights the difficulty of capturing this particular space. It holds a mix of pure-play, non-pure-play and technology-conglomerate cloud computing companies, and weights each type of company equally within its category. SKYY allocates 10% of its portfolio to technology conglomerates that simply make use of cloud computing, and weights non-pure-play companies by their capitalization as a share of the overall market capitalization. The remainder of its portfolio covers pureplay companies. This takes SKYY far afield from our broader technology segment benchmark, tilting to midcaps with significant sector biases. SKYY can be traded safely with a bit of care, though occasionally significant spreads make limit orders advisable. Excellent primary liquidity should keep creations costs low. While SKYY isn't cheap, its fee is about average for a niche fund with a unique methodology and approach, and tracking is generally good. SKYY MSCI ESG ANALYTICS INSIGHT SKYY SUMMARY DATA Issuer Inception Date Legal Structure Expense Ratio Assets Under Management Average Daily $ Average Spread (%) SKYY PORTFOLIO DATA Weighted Average Market Cap Price / Earnings Ratio Price / Book Ratio Distribution Yield First Trust 07/05/11 Open-Ended Fund 0.60% $1.94B $15.20M 0.04% $207.46B % The MSCI ESG Fund Quality Score measures the ability of ETF underlying holdings to manage key medium to long-term risks and opportunities arising from environmental, social, and governance factors, as determined by MSCI ESG Research LLC. As of October 15, 2018 the First Trust Cloud Computing ETF MSCI ESG Fund Quality Score is 6.25 out of 10. The fund s Peer Rank reflects the ranking of a fund s MSCI ESG Fund Quality Score against the scores of other funds within the same peer group, as defined by the Thomson Reuters Lipper Global Classification. SKYY ranks in the 75th percentile within its peer group and in the 76th percentile within the global universe of all funds in MSCI ESG Fund Metrics coverage. Next Ex-Dividend Date Number of Holdings SKYY INDEX DATA Index Tracked Index Weighting Methodology 12/18/18 30 ISE Cloud Computing Index Tiered Index Selection Methodology Market Cap Thomson Reuters Global Technology

2 1 Year Daily Price ($) Nov Dec `18 Feb Mar Apr May Jun Jul Aug Sep Oct 20M PERFORMANCE [as of 10/15/18] 1 MONTH 3 MONTHS YTD 1 YEAR 3 YEARS 5 YEARS 10 YEARS SKYY -8.51% -7.51% 13.30% 21.28% 20.56% 16.64% SKYY (NAV) -8.56% -7.52% 13.30% 21.27% 20.56% 16.66% ISE Cloud Computing Index Thomson Reuters Global Technology All returns over 1 year are annualized. All returns are total returns unless otherwise stated. SKYY TOP 10 COUNTRIES United States 89.71% Japan Canada 4.66% Singapore Germany 4.33% Korea, Republic of India 1.30% Argentina Chile Sweden SKYY TOP 10 SECTORS Software & IT Services 69.58% Telecommunications Serv 1.11% Computers, Phones & Ho 10.68% Communications & Netwo 9.01% Diversified Retail 5.17% Residential & Commercia 4.46% SKYY TOP 10 HOLDINGS NetApp, Inc. 5.04% Juniper Networks, Inc. 4.76% salesforce.com, inc. 5.01% Oracle Corporation 4.61% Amazon.com, Inc. 4.94% SAP SE Sponsored ADR 4.59% VMware, Inc. Class A 4.79% Alphabet Inc. Class A 4.58% Cisco Systems, Inc. 4.78% Equinix, Inc. 4.57% Total Top 10 Weighting 47.67%

3 SKYY PORTFOLIO MANAGEMENT SKYY TAX EXPOSURES SKYY FUND STRUCTURE Expense Ratio Median Tracking Difference (12 Mo) Max. Upside Deviation (12 Mo) Max. Downside Deviation (12 Mo) 0.60% Max LT/ST Capital Gains Rate Capital Gains Distributions (3 Year) Tax on Distributions Distributes K % / 39.60% Qualified dividends No Legal Structure OTC Derivative Use Securities Lending Active Securities Lending Split (Fund/Issuer) ETN Counterparty Open-Ended Fund No Yes 100% / 0% N/A ETN Counterparty Risk N/A Fund Closure Risk Low Portfolio Disclosure Daily

4 Daily Spread 0.12% SKYY FACTSET ANALYTICS BLOCK LIQUIDITY As of 10/16/ % 0.06% 0.03% 0% This measurement shows how easy it is to trade a $1 million USD block of SKYY. SKYY is rated a 5 out of 5. Premium/Discount 0.2% 0.1% SKYY TRADABILITY Avg. Daily Share 275, % Average Daily $ $15.20M -0.1% Median Daily Share 197, % 12.5M 10M 7.5M 2.5M 5M Median Daily ($) Average Spread (%) Average Spread ($) $10.88M 0.04% $0.02 Nov `18 Feb Apr Jun Aug Oct Median Premium / Discount (12 Mo) 0.05% Max. Premium / Discount (12 Mo) 0.16% / -0.16% Impediment to Creations None Market Hours Overlap % Creation Unit Size (Shares) 50,000 Creation Unit/Day (45 Day Average) 3.94 Creation Unit Cost (%) 0.02% Underlying / Unit 0.12% Open Interest on ETF Options 5,005 Net Asset Value (Yesterday) $51.81 ETF.com Implied Liquidity 5

5 SKYY SECTOR/INDUSTRY BREAKDOWN SKYY TOP 10 HOLDINGS SKYY PERFORMANCE STATISTICS Software & IT Services Computers, Phones & Household Electronics Communications & Networking Diversified Retail SKYY 69.58% 55.42% 10.68% 18.76% 9.01% 5.23% 5.17% 0.00% NetApp, Inc. salesforce.com, inc. Amazon.com, Inc. VMware, Inc. Class A Cisco Systems, Inc. Juniper Networks, Inc. Oracle Corporation SAP SE Sponsored ADR Alphabet Inc. Class A Equinix, Inc. Total Top 10 Weighting 5.04% 5.01% 4.94% 4.79% 4.78% 4.76% 4.61% 4.59% 4.58% 4.57% 47.67% Goodness of Fit (R2) Beta Up Beta Down Beta Downside Standard Deviation SKYY MSCI ESG RATINGS MSCI ESG Quality Score % Thomson Reuters Global Technology 6.25 / 10 Residential & Commercial REITs 4.46% Peer Group Percentile Rank Global Percentile Rank Telecommunications Services 1.11% 0.00% SRI Screening Criteria Exposure 4.58% SKYY COUNTRIES Exposure to Sustainable Impact Solutions 18.75% SKYY United States 89.71% 74.29% Weighted Average Carbon Intensity (t CO2e/$M Sales) Canada 4.66% 0.54% Germany 4.33% 1.91% India 1.30% 1.18% Chile 0.01% Japan 5.00% Singapore 0.05% Korea, Republic of 4.15% Argentina 0.00% Sweden 0.60% SKYY BENCHMARK COMPARISON HOLDINGS SKYY Number of Holdings Constituents Shared Holdings Shared Holdings Weight SKYY BENCHMARK COMPARISON SUMMARY % SKYY REGIONS SKYY Number of Holdings SKYY North America 94.37% 74.84% Europe 4.33% 6.31% Asia-Pacific 1.30% 18.05% Middle East & Africa 0.78% Latin America 0.02% Weighted Average Market Cap Price / Earnings Ratio Price / Book Ratio $207.46B $353.81B SKYY ECONOMIC DEVELOPMENT SKYY Developed Countries 98.70% 98.01% Dividend Yield 0.86% 1.20% Concentration Medium Emerging Countries 1.30% 1.99%

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