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Trending ETFs

Name

As of 07/12/2024

Price

Aum/Mkt Cap

YIELD

Annualized forward dividend yield. Multiplies the most recent dividend payout amount by its frequency and divides by the previous close price.

Exp Ratio

Expense ratio is the fund’s total annual operating expenses, including management fees, distribution fees, and other expenses, expressed as a percentage of average net assets.

Watchlist

$19.78

$50.4 M

1.31%

$0.26

1.80%

Vitals

YTD Return

-1.6%

1 yr return

0.5%

3 Yr Avg Return

1.6%

5 Yr Avg Return

N/A

Net Assets

$50.4 M

Holdings in Top 10

80.3%

52 WEEK LOW AND HIGH

$19.8
$19.48
$20.43

Expenses

OPERATING FEES

Expense Ratio 1.80%

SALES FEES

Front Load N/A

Deferred Load N/A

TRADING FEES

Turnover 280.00%

Redemption Fee N/A


Min Investment

Standard (Taxable)

N/A

IRA

N/A


Fund Classification

Fund Type

Exchange Traded Fund


Name

As of 07/12/2024

Price

Aum/Mkt Cap

YIELD

Annualized forward dividend yield. Multiplies the most recent dividend payout amount by its frequency and divides by the previous close price.

Exp Ratio

Expense ratio is the fund’s total annual operating expenses, including management fees, distribution fees, and other expenses, expressed as a percentage of average net assets.

Watchlist

$19.78

$50.4 M

1.31%

$0.26

1.80%

MARB - Profile

Distributions

  • YTD Total Return -1.6%
  • 3 Yr Annualized Total Return 1.6%
  • 5 Yr Annualized Total Return N/A
  • Capital Gain Distribution Frequency Annually
  • Net Income Ratio -1.15%
DIVIDENDS
  • Dividend Yield 1.3%
  • Dividend Distribution Frequency Quarterly

Fund Details

  • Legal Name
    First Trust Merger Arbitrage ETF
  • Fund Family Name
    First Trust Advisors L.P.
  • Inception Date
    Feb 04, 2020
  • Shares Outstanding
    1400002
  • Share Class
    N/A
  • Currency
    USD
  • Domiciled Country
    US
  • Manager
    Brian Murphy

Fund Description

Under normal market conditions, the Fund seeks to achieve its investment objective by establishing long and short positions in the equity securities of companies that are involved in a publicly-announced significant corporate event, such as a merger or acquisition. The Fund’s portfolio may include equity securities issued by U.S. and non-U.S. companies, including American Depositary Receipts (“ADRs”). The Fund may invest in securities issued by small, mid and large capitalization issuers.The Fund’s investment sub-advisor, First Trust Capital Management L.P. (“First Trust Capital Managementor the “Sub-Advisor”), generally seeks to take advantage of the return opportunity presented by the natural deal spread that emerges after the announcement of a merger or acquisition by purchasing the stock of the company being acquired (the “target company”), while shorting the stock of the company acquiring the target company’s stock (the “acquiring company”). The profit which may be realized is the “spread,” or difference in price between the trading price of the target company’s stock following the announcement of the corporate event and the contractual price to be paid for the target company stock in the future when the transaction closes. Such a spread typically exists due to the uncertainty regarding whether the announced merger, acquisition or other corporate event will close, and if it closes, that such transaction will be at the initially proposed economic terms. Only the securities of companies involved in publicly-announced transactions are eligible for inclusion in the Fund’s portfolio. Merger arbitrage, when executed well, has the potential to produce a differentiated and robust absolute return stream.In deciding upon which opportunities to invest in, the Sub-Advisor assesses a number of factors, including, but not limited to, the probability that the merger will be completed, the attractiveness of a transaction relative to others in the arbitrage universe, and any unique risks which may decrease the likelihood that a transaction will close. Every transaction has its unique set of elements, and the Sub-Advisor’s investment process relies on real-time quantitative-based research to evaluate how attractive each transaction is relative to other deals in the arbitrage universe. The Fund adheres to that quantitative criteria to separate which deals to invest in and which to avoid. In the event that the Sub-Advisor cannot find enough securities that satisfy its investment criteria, the Fund may hold a significant amount of cash or cash equivalents. During periods of market stress or when merger and acquisition activity is low, the availability of transactions of the type in which the Fund invests may be significantly limited. To the extent the Fund has a large cash position, the Fund is less able to satisfy its investment objective. As of October 31, 2023, 60.08% of the Fund’s assets consisted of investable cash and/or cash equivalents. Due to the current market environment, it is expected that the Fund may maintain a large cash position for the foreseeable future.The Sub-Advisor intends to engage in short selling. Short selling is a technique that allows an investor (such as the Fund) to profit from the falling price of a security. It involves selling a security that has been borrowed from a third-party with the intention of buying an identical security back at a later date to return to that third-party. The Fund’s short positions may be significant, however, the Fund will at all times comply with the regulatory requirements of the Securities and Exchange Commission with respect to coverage of the Fund’s short positions. The Fund intends to invest the proceeds from a sale of a borrowed security in cash or cash equivalents, including money market funds. The Fund’s investment strategy may include active and frequent trading.The Fund may invest up to 10% of its net assets in stock, warrants, and other securities of special purpose acquisition companies “SPACs”). A SPAC is a publicly listed acquisition vehicle, whereby one or more sponsors raise a pool of capital with the special purpose of acquiring a private operating company. SPACs often have pre-determined time frames to merge with an operating company (typically two years), and if no merger takes place during that time frame the SPAC will liquidate. A SPAC generally offers units, each comprised of one share of common stock and a warrant (or portion of a warrant) to purchase common stock. A warrant is a security that allows its holder to purchase a specified amount of common stock at a specified price for a specified time. Unless and until an acquisition is completed, a SPAC generally invests its assets (less a portion retained to cover expenses) in U.S. government securities, money market securities and cash. If an acquisition that meets the requirements for the SPAC is not completed within a pre-established period, the invested funds are returned to the entity’s shareholders.The Fund will generally dispose of SPAC interests held by the Fund prior to the completion of an acquisition. Depending on the relative market price of the SPAC securities and the net asset value of the underlying U.S. government securities, money market securities and cash held by the SPAC, the Fund may either sell the securities at their current market price or redeem them with the SPAC in accordance with the redemption terms applicable to such securities.The Fund is classified as “non-diversified” under the Investment Company Act of 1940, as amended (the “1940 Act”).
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MARB - Performance

Return Ranking - Trailing

Period MARB Return Category Return Low Category Return High Rank in Category (%)
YTD -1.6% -11.6% 15.8% 71.00%
1 Yr 0.5% -33.0% 41.7% 74.76%
3 Yr 1.6%* -10.5% 13.4% N/A
5 Yr N/A* -4.8% 11.1% N/A
10 Yr N/A* -4.6% 7.6% N/A

* Annualized

Return Ranking - Calendar

Period MARB Return Category Return Low Category Return High Rank in Category (%)
2023 -0.1% -31.7% 23.2% N/A
2022 2.9% -20.7% 10.7% N/A
2021 0.3% -12.4% 14.7% N/A
2020 N/A -13.2% 12.9% N/A
2019 N/A -11.7% 7.9% N/A

Total Return Ranking - Trailing

Period MARB Return Category Return Low Category Return High Rank in Category (%)
YTD -1.6% -11.7% 15.8% 71.00%
1 Yr 0.5% -33.0% 41.7% 69.90%
3 Yr 1.6%* -10.5% 13.4% N/A
5 Yr N/A* -4.8% 11.1% N/A
10 Yr N/A* -4.6% 7.6% N/A

* Annualized

Total Return Ranking - Calendar

Period MARB Return Category Return Low Category Return High Rank in Category (%)
2023 2.2% -31.7% 23.2% N/A
2022 3.9% -20.7% 10.7% N/A
2021 0.3% -12.4% 14.7% N/A
2020 N/A -12.7% 12.9% N/A
2019 N/A -11.5% 13.2% N/A

MARB - Holdings

Concentration Analysis

MARB Category Low Category High MARB % Rank
Net Assets 50.4 M 105 K 12.6 B 84.62%
Number of Holdings 28 5 2526 94.23%
Net Assets in Top 10 34.6 M -619 M 6.53 B 82.69%
Weighting of Top 10 80.28% 7.6% 96.1% 20.73%

Top 10 Holdings

  1. Dreyfus Government Cash Management 43.55%
  2. Pioneer Natural Resources Co 5.75%
  3. Albertsons Cos Inc 5.14%
  4. Amedisys Inc 4.66%
  5. Axonics Inc 4.00%
  6. ANSYS Inc 3.62%
  7. United States Steel Corp 3.50%
  8. Hess Corp 3.43%
  9. Juniper Networks Inc 3.33%
  10. Discover Financial Services 3.32%

Asset Allocation

Weighting Return Low Return High MARB % Rank
Cash
64.74% -225.56% 102.75% 39.42%
Stocks
35.26% -57.09% 325.56% 28.85%
Preferred Stocks
0.00% 0.00% 5.67% 48.08%
Other
0.00% -11.90% 43.69% 53.85%
Convertible Bonds
0.00% 0.00% 95.47% 58.65%
Bonds
0.00% -1.04% 63.30% 59.62%

Stock Sector Breakdown

Weighting Return Low Return High MARB % Rank
Technology
30.65% 0.00% 100.00% 9.68%
Financial Services
27.41% 0.00% 98.37% 13.98%
Healthcare
12.81% 0.00% 27.28% 54.84%
Consumer Cyclical
7.16% 0.00% 29.06% 91.40%
Consumer Defense
6.81% 0.00% 30.58% 81.72%
Industrials
6.78% 0.00% 27.58% 90.32%
Utilities
3.45% 0.00% 66.28% 30.11%
Energy
3.39% 0.00% 53.30% 84.95%
Communication Services
1.54% 0.00% 33.72% 88.17%
Real Estate
0.00% 0.00% 93.91% 5.38%
Basic Materials
0.00% 0.00% 42.74% 90.32%

Stock Geographic Breakdown

Weighting Return Low Return High MARB % Rank
US
35.26% -55.82% 325.56% 29.81%
Non US
0.00% -7.09% 86.98% 23.08%

MARB - Expenses

Operational Fees

MARB Fees (% of AUM) Category Return Low Category Return High Rank in Category (%)
Expense Ratio 1.80% 0.73% 9.52% 51.46%
Management Fee 1.25% 0.13% 1.65% 72.12%
12b-1 Fee 0.00% 0.00% 1.00% 3.39%
Administrative Fee N/A 0.06% 0.40% N/A

Sales Fees

MARB Fees (% of AUM) Category Return Low Category Return High Rank in Category (%)
Front Load N/A 2.75% 5.75% N/A
Deferred Load N/A 1.00% 5.00% N/A

Trading Fees

MARB Fees (% of AUM) Category Return Low Category Return High Rank in Category (%)
Max Redemption Fee N/A 1.00% 2.00% N/A

Related Fees

Turnover provides investors a proxy for the trading fees incurred by mutual fund managers who frequently adjust position allocations. Higher turnover means higher trading fees.

MARB Fees (% of AUM) Category Return Low Category Return High Rank in Category (%)
Turnover 280.00% 30.00% 483.00% 38.20%

MARB - Distributions

Dividend Yield Analysis

MARB Category Low Category High MARB % Rank
Dividend Yield 1.31% 0.00% 0.75% 26.92%

Dividend Distribution Analysis

MARB Category Low Category High Category Mod
Dividend Distribution Frequency Quarterly Annually Quarterly Annually

Net Income Ratio Analysis

MARB Category Low Category High MARB % Rank
Net Income Ratio -1.15% -2.49% 4.20% 98.06%

Capital Gain Distribution Analysis

MARB Category Low Category High Capital Mode
Capital Gain Distribution Frequency Annually Annually Annually Annually

Distributions History

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MARB - Fund Manager Analysis

Managers

Brian Murphy


Start Date

Tenure

Tenure Rank

Feb 04, 2020

2.32

2.3%

Mr. Brian Murphy serves as Portfolio Manager at Vivaldi Capital Management. Brian joined Vivaldi as a Senior Research Analyst on the investment team with a particular focus on Vivaldi's alternatives portfolios. Brian is responsible for all aspects of the investment process, including investment sourcing, evaluation, and monitoring. He is also a member of the firm's investment committee. Brian has eight years of alternatives investment experience at both multi-manager and single strategy hedge funds, with a particularly deep background in long/short equity and derivatives trading strategies. Prior to joining Vivaldi, Brian was a Director for Voyager Management, a fund of hedge funds firm. He received his B.S. in Finance from Miami University in Oxford, OH.

Michael Peck


Start Date

Tenure

Tenure Rank

Feb 04, 2020

2.32

2.3%

Michael Peck is President and Co-Chief Investment Officer and responsible for all portfolio management as well as creating and implementing the strategic vision of the firm. Prior to Vivaldi, Michael was a Portfolio Manager at Coe Capital Management, a Chicago-based registered investment adviser and also a Financial Analyst and Risk Manager for Bond Companies. Michael graduated from Lehigh University with a Bachelor of Science in Accounting. He also holds a Masters in Finance and a Master’s in Business Administration in both Finance & Real Estate from DePaul University and is a Chartered Financial Analyst (CFA) charter holder.

Michael Grayson


Start Date

Tenure

Tenure Rank

Feb 04, 2020

2.32

2.3%

Mr. Grayson is a Portfolio Manager at Vivaldi and is focused on the firm’s investment management efforts, particularly with respect to the merger arbitrage strategies. Mr. Grayson helps design and manage Vivaldi’s product development efforts to expand the firm’s 1940 Act asset management business. He also leads the effort to convey the firm’s strategies and investment theses to underlying Vivaldi clients in one-on-one advisor meetings/calls, alongside the distribution team, to support the growth and scale of the broader platform. Mr. Grayson holds a B.A. from Colgate University where he studied Political Science and Economics and was a member of the Men’s Division I Varsity Golf Team.

Tenure Analysis

Category Low Category High Category Average Category Mode
0.08 30.59 6.3 9.42