NYSE ARCA | ETF
DELISTED - The Fund will normally invest at least 90% of its net assets (plus the amount of any borrowings for investment purposes) in common stocks and call options included in the Index.
The Fund, using an indexing investment approach, attempts to replicate, before fees and expenses, the performance of the Index.
First Trust AdvisorsL. P. ("First Trust") seeks a correlation of 0.95 or better (before fees and expenses) between the Fund's performance and the performance of the Index; a figure of 1.00 would represent perfect correlation.
Pursuant to an arrangement with Chicago Board Options Exchange, Incorporated ("CBOE"), S&P Dow Jones Indices LLC ("SPDJI") has certain rights to license the Index to third parties.
SPDJI has licensed the Index to First Trust for use by First Trust and the Fund.
CBOE compiles, maintains and owns the Index.
The Index is designed to provide a benchmark for investors interested in hedging tail risk (as described below) in an S&P 500 portfolio.
As of March 31, 2014, the Index was comprised of 500 securities.
The Index is composed of each of the equity securities comprising the S&P 500 and an out-of-the-money call option position on the Chicago Board Options Exchange Market Volatility Index (the "VIX Index").
The VIX Index is quoted in percentage points, is calculated and disseminated in real-time by CBOE and is a way of measuring the market's expectation of volatility in the S&P 500 over the next 30-day period.
Historically, the VIX Index has ranged in value from 0 to 100.
As of the date of this prospectus, it has never exceeded a value of 100; however, during periods of sustained extreme volatility, the Index value could exceed 100.
For example, a VIX Index level of 30 would represent an expected annualized range of returns for the S&P 500 of 30%, either up or down, over the next 30 days.
A higher value in the VIX Index indicates greater expected volatility in the S&P 500 over the next 30 days.
The Index, and in turn the Fund, tracks the performance of an S&P 500 stock portfolio (w
Top 20 Holdings
| Asset | Name | Sector | Industry | Weight |
|---|---|---|---|---|
| AAPL | Apple Inc | Technology | Consumer Electronics | 3.95% |
| MSFT | Microsoft Corporation | Technology | Software - Infrastructure | 2.68% |
| META | Meta Platforms Inc. | Communication Services | Internet Content & Information | 1.89% |
| AMZN | Amazon.com Inc | Consumer Cyclical | Internet Retail | 1.86% |
| JNJ | Johnson & Johnson | Healthcare | Drug Manufacturers - General | 1.72% |
| JPM | JPMorgan Chase & Co | Financial Services | Banks - Diversified | 1.55% |
| XOM | Exxon Mobil Corp | Energy | Oil & Gas Integrated | 1.55% |
| GOOGL | Alphabet Inc Class A | Communication Services | Internet Content & Information | 1.29% |
| GOOG | Alphabet Inc Class C | Communication Services | Internet Content & Information | 1.27% |
| BAC | Bank of America Corp | Financial Services | Banks - Diversified | 1.13% |
| PG | Procter & Gamble Company | Consumer Defensive | Household & Personal Products | 1.13% |
| WFC | Wells Fargo & Company | Financial Services | Banks - Diversified | 1.12% |
| T | AT&T Inc | Communication Services | Telecom Services | 1.11% |
| GE | GE Aerospace | Industrials | Aerospace & Defense | 1.04% |
| CVX | Chevron Corp | Energy | Oil & Gas Integrated | 0.96% |
| PFE | Pfizer Inc | Healthcare | Drug Manufacturers - General | 0.94% |
| VZ | Verizon Communications Inc | Communication Services | Telecom Services | 0.94% |
| CMCSA | Comcast Corp | Communication Services | Telecom Services | 0.91% |
| UNH | UnitedHealth Group Incorporated | Healthcare | Healthcare Plans | 0.90% |
| V | Visa Inc. Class A | Financial Services | Credit Services | 0.90% |