First Trust S&P 500 Diversified Free Cash Flow ETF

Frequently Asked Questions About FCFY

What does FCFY invest in?

The First Trust S&P 500 Diversified Free Cash Flow ETF (FCFY) endeavors to match the investment performance, including both price changes and income generation, of the S&P 500 Sector-Neutral FCF Index (referred to as the "Index"), before any fees or expenses are factored in. Under normal operating conditions, the Fund will commit at least 80% of its total assets (inclusive of any borrowed capital for investment) to the securities that make up this Index. Employing an indexing investment methodology, the Fund seeks to mirror the Index's total return, which incorporates dividends distributed by the common stocks it holds, again, prior to any associated costs. It typically achieves this by implementing a full replication strategy, meaning it invests in all component securities of the Index, proportional to their respective weightings within it.

What is the expense ratio of FCFY?

First Trust S&P 500 Diversified Free Cash Flow ETF (FCFY) charges an expense ratio of 0.60%. This is the annual fee deducted from fund assets to cover management and operations.

What is FCFY's distribution yield?

FCFY's trailing-twelve-month yield is 1.48%, calculated from the sum of distributions over the past year divided by the current price.

How does FCFY's covered-call strategy work?

FCFY sells call options against the stocks (or index) it holds, collecting premium income that gets passed through to shareholders as distributions. The strategy generates above-market income in flat or rising markets but caps upside — when the underlying rallies past the strike, the gains above the strike go to the option buyer, not the fund.

How big is FCFY?

First Trust S&P 500 Diversified Free Cash Flow ETF (FCFY) manages $1.4M in total assets. AUM determines bid-ask liquidity and the fund's vulnerability to closure — funds below ~$50M are at higher risk of liquidation.

Is FCFY actively managed or an index fund?

FCFY's management style is described in the fund's prospectus. See the description on the Summary tab for the published strategy.