First Trust RiverFront Dynamic Asia Pacific ETF

C000165607 Fund Overview

First Trust RiverFront Dynamic Asia Pacific ETF is a US ETF managed by First Trust Exchange-Traded Fund III, categorised as Japan Real Estate. ABC INVEST provides holdings, performance, costs, cashflows, risk data, prospectus documents and SEC filings, sourced from SEC filings.

• Type: US ETF
• Manager: First Trust Exchange-Traded Fund III
• Category: Japan Real Estate
• Assets under management: $8.64M
• 1-year return: 23.3%
• SEC CIK: 0001424212
• SEC series ID: S000052735
• Share class ID: C000165607

C000165607 Investment Objective and Strategy

First Trust RiverFront Dynamic Asia Pacific ETF describes its objective and strategy as follows, from its latest prospectus filed with the SEC by First Trust Exchange-Traded Fund III.

Investment objective

"The First Trust RiverFront Dynamic Asia Pacific ETF's (the "" Fund "") investment objective is to provide capital appreciation."

Principal investment strategy

"Under normal market conditions, the Fund seeks to achieve its investment objective by investing at least 80% of its net assets (including investment borrowings) in a portfolio of equity securities of ""Asian Pacific companies"" (as defined below), through investments in common stock, depositary receipts, and common and preferred shares of real estate investment trusts ( ""REITs"" ), and forward foreign currency exchange contracts and currency spot transactions used to hedge the Fund's exposure to the currencies in which the equity securities of such Asian Pacific companies are denominated (each, an ""Asian Pacific currency"" and, collectively, the ""Asian Pacific currencies"" ). Asian Pacific companies are those companies (i) whose securities are traded principally on a stock exchange in an Asian Pacific country, (ii) that have a primary business office in an Asian Pacific country, or (iii) that have at least 50% of their assets in, or derive at least 50% of their revenues or profits from, an Asian Pacific country.

Asian Pacific countries include the countries located in Asia and the Pacific Islands as well as Australia and New Zealand. The Fund generally focuses its Asian Pacific company investments in Australia, Hong Kong, Japan, New Zealand and/or Singapore. The Fund utilizes a dynamic currency hedging strategy through the use of forward foreign currency exchange contracts and currency spot transactions to hedge up to 100% of the Fund's currency exposure. As a result of this hedging strategy, the portion of the Fund's portfolio securities which are subject to currency hedging transactions may vary widely, from 0% to 100% of the portfolio securities. A forward contract on foreign currency is an obligation to purchase or sell a specific currency at a future date, which may be any fixed number of days agreed upon by the parties from the date of the contract, at a price set on the date of the contract.

A forward foreign currency exchange contract may reduce the Fund's exposure to changes in the value of the currency it will deliver and increase its exposure to changes in the value of the currency it will receive for the duration of the contract. The effect on the value of the Fund is similar to selling securities denominated in one currency and purchasing securities denominated in another currency. The Fund also may enter into currency spot transactions as part of its dynamic currency hedging strategy. A currency spot transaction is an agreement between two parties to buy or sell a specific currency for delivery on a date that is typically two business days from the date of the agreement, as opposed to a date set in the future. The underlying currencies of the forward foreign currency exchange contracts and currency spot transactions included in the Fund's policy relating to the investment of at least 80% of its net assets (including investment borrowings) will be limited to Asian Pacific currencies.

The Fund also may invest up to 20% of its net assets in equity securities of non-Asian Pacific companies, including companies in emerging market countries, with a particular focus on companies in the United States and Canada, and forward foreign currency exchange contracts and currency spot transactions used to hedge the Fund's exposure to non-Asian Pacific currencies as well as any proxy currency hedging transactions involving non-Asian Pacific currencies determined by the Sub-Advisor to be representative of, and serve as a proxy for, Asian Pacific currencies. The Fund will limit its investments in emerging market countries in the aggregate to no more than 20% of its net assets. The Fund considers an emerging market country to be any country whose issuers are included in the Morgan Stanley Capital International Emerging Markets Index and/or those countries considered to be developing by the World Bank, the International Finance Corporation or the United Nations.

The Fund considers an ""emerging market issuer"" to be one (i) domiciled or with a principal place of business or primary securities trading market in an emerging market country, or (ii) that derives a substantial portion of its total revenues or profits from emerging market countries. The equity securities of non-Asian Pacific companies in which the Fund may invest include investments in common stock, depositary receipts and common and preferred shares of REITs. The securities in which the Fund may invest must be listed on a U.S. or non-U.S. securities exchange. The Fund may invest in small, mid and large capitalization companies. In selecting the portfolio securities of the Fund, RiverFront Investment Group, LLC, the Fund's investment sub-adviser ( ""RIG"" or the ""Sub-Advisor"" ), assembles a portfolio of eligible countries and/or securities based on several core attributes, including, but not limited to, value, quality and momentum.

The Sub-Advisor considers multiple factors within each core attribute, such as the price-to-book value of a security when determining value and a company's cash as a percentage of the company's market capitalization when determining quality. The Sub-Advisor then assigns each qualifying security a score based on its core attributes and selects the individual securities with the highest scores for investment. In doing so, the Sub-Advisor utilizes its proprietary optimization process to maximize the percentage of high-scoring securities included in the portfolio in accordance with country, sector and risk factor ( e.g. , beta, quality, volatility) limitations. The Sub-Advisor will also consider the market capitalization of the companies in which the Fund may invest, and the trading volume of a company's shares in the secondary market.

As of October 31, 2017, the Fund had significant investments in the financial sector and consumer discretionary sector. In managing the Fund's currency exposure, the Sub-Advisor deploys a dynamic currency hedging strategy based on a proprietary hedging methodology that considers a combination of quantitative measures, such as interest rate differentials, central bank balance sheet expansion/contraction and price momentum, and qualitative measures, such as formal and informal guidance from central bankers. To the extent permitted under applicable law, percentage limitations described in this prospectus are generally as of the time of investment by the Fund and may be exceeded on a going-forward basis as a result of market fluctuations affecting the Fund's portfolio securities. The Fund is classified as ""non-diversified"" under the Investment Company Act of 1940, as amended (the ""1940 Act"" )."

C000165607 Performance

Total returns for C000165607 (as of 2026-10-01), from SEC filings.

C000165607 Risk Information

Risk metrics for C000165607, derived from monthly returns in SEC filings.

• 1-year volatility (annualised): 12.9%

C000165607 Costs and Fees

C000165607 costs about $83 per $10,000 invested per year in fund expenses.

• Net expense ratio: 0.83%
• Gross expense ratio: 0.83%
• Portfolio turnover: 117%
• Brokerage commissions: 12.02 bps of average net assets (SEC N-CEN)

C000165607 Cashflows

Over the 12 months to 2021-07, First Trust RiverFront Dynamic Asia Pacific ETF had net inflows of $2.84M, from monthly SEC N-PORT filings.

C000165607 Debt Constituents

No individual debt constituents are reported in First Trust RiverFront Dynamic Asia Pacific ETF's latest SEC N-PORT filing.

C000165607 Prospectus and SEC Filings

Official First Trust RiverFront Dynamic Asia Pacific ETF filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.

• Prospectus (485BPOS) — filed 2021-02-26
• Prospectus (485BPOS) — filed 2020-03-10
• Prospectus supplement (497) — filed 2020-04-03
• Portfolio holdings (N-PORT) — filed 2021-09-24
• Portfolio holdings (N-PORT) — filed 2021-06-23
• Portfolio holdings (N-PORT) — filed 2021-03-29
• Annual census (N-CEN) — filed 2021-01-12
• Annual census (N-CEN) — filed 2020-01-07

Related Funds

Other Japan Real Estate funds tracked on ABC INVEST:

• NYLI International Small-Mid Cap Equity ETF (NISM)
• Pzena International Value ETF (PZIV)
• Tortoise Cloud Infrastructure Fund (TCLD)
• Russell Investments Global Real Estate ETF (CRIB)

Data Sources

ABC INVEST compiles this page from public filings made to the U.S. Securities and Exchange Commission (SEC) through EDGAR: portfolio holdings and monthly cashflows from Form N-PORT, expenses and returns from fund prospectuses (Form 485BPOS) and the SEC DERA Risk/Return Summary data sets, annual data from Form N-CEN, and shareholder reports from Form N-CSR.