Please replace the release issued January 24, 2025 at 9:25am ET
with the following corrected version due to multiple revisions.
The updated release reads:
TOP RANKING FIRST TRUST RBA AMERICAN
INDUSTRIAL RENAISSANCE® ETF REACHES NEW MILESTONES IN GROWTH AND
PERFORMANCE OVER ITS 10+ YEAR HISTORY
First Trust Advisors L.P. (“First Trust”), a leading ETF
provider and asset manager, announced that the First Trust RBA
American Industrial Renaissance® ETF (NASDAQ: AIRR) has reached
over $3 billion in net assets as of 1/6/2025 and continues to be a
top performing fund. AIRR seeks investment results that correspond
generally to the price and yield (before the fund’s fees and
expenses) of an equity index called the Richard Bernstein Advisors
American Industrial Renaissance® Index (the “index”). The index is
designed to measure the performance of small and mid-cap U.S.
companies in the industrial and community banking sectors. These
companies are directly involved in manufacturing, related
infrastructure, and banking, including regional banks from U.S.
states traditionally known as manufacturing hubs.
Richard Bernstein Advisors (“RBA”) believes the U.S. industrial
sector may continue gaining global market share over the next
decade as a result of deglobalization, potentially making the
American Industrial Renaissance® an investment theme for many years
to come.
“The American Industrial Renaissance has proven to be an
exceptionally successful investment theme, as evidenced AIRR
surpassing $3 billion in net assets,” said Richard Bernstein, CEO,
CIO at Richard Bernstein Advisors. “Despite this achievement, the
critical need for the U.S. to invest in manufacturing—both to
safeguard economic independence and bolster national
security—remains widely underappreciated. This underscores the
American Industrial Renaissance's potential as a compelling
long-term investment opportunity.”
“In our view, one of the most intriguing aspects of this theme
is how little attention it has received from investors,” said Ryan
Issakainen, CFA, Senior Vice President and ETF Strategist at First
Trust. “Not only in light of its strong performance over the past
decade, but more importantly, how well we believe it’s positioned
for the next several years.”
AIRR Performance Highlights as of 12/31/2024:
- 1-year average annual total return of 33.43%, based on net
asset value (NAV), versus 17.47% for the S&P 500® Industrials
Index.
- Since its inception in March 2014, AIRR has achieved an average
annual total return of 13.56%, based on NAV, outperforming the
S&P 500® Industrials Index which had a total return of 10.80%
over the same period.
- Largest and fastest-growing ETF in Morningstar’s Industrials
category, based on total net assets.1
- 5-Star Overall Morningstar RatingTM, among 44 funds in the
Industrials category. This fund was rated 5 stars/44 funds (3
years), 5 stars/42 funds (5 years), 5 stars/32 funds (10 years)
based on risk adjusted returns.
- #1 performing fund in Morningstar’s Industrials category,
ranking #1/41 funds (1 year), #1/32 funds (5 years), #1/25 funds
(10 years) and #1/25 funds (since fund inception).
- AIRR has outperformed the S&P 500® Index in the 1-year,
5-year, and 10-year time periods based on NAV despite not holding
information technology or large cap growth companies.
Performance (%)
1 Year
5 Year
10 Year
Since Fund Inception
Net Asset Value*
33.43
21.70
15.70
13.56
Market Price*
33.24
21.70
15.69
13.56
Richard Bernstein Advisors
American Industrial Renaissance® Index**
34.45
22.61
16.57
14.42
S&P 500® Industrials
Index**
17.47
12.03
10.75
10.80
Russell 2500® Index**
12.00
8.77
8.85
8.50
S&P 500® Index**
25.02
14.53
13.10
13.19
Performance data quoted represents past performance. Past
performance is not a guarantee of future results and current
performance may be higher or lower than performance quoted.
Investment returns and principal value will fluctuate and shares
when sold or redeemed, may be worth more or less than their
original cost. You can obtain performance information which is
current through the most recent month-end by visiting
www.ftportfolios.com.
Inception Date: 3/10/2014. Total Expense Ratio: 0.70%.
*NAV returns are based on the fund’s net asset value
which represents the fund’s net assets (assets less liabilities)
divided by the fund’s outstanding shares. Market Price
returns are determined by using the midpoint of the national best
bid offer price ("NBBO") as of the time that the fund's NAV is
calculated. Returns are average annualized total returns.
**Performance information for each listed index is for
illustrative purposes only and does not represent actual fund
performance. Indexes do not charge management fees or brokerage
expenses, and no such fees or expenses were deducted from the
performance shown. Indexes are unmanaged and an investor cannot
invest directly in an index.
1Source: Morningstar, based on net assets under management from
AIRR inception date of 3/10/2014 through 12/31/2024.
For more information about First Trust, please contact Ryan
Issakainen at (630) 765-8689 or RIssakainen@FTAdvisors.com.
About First Trust
First Trust is a federally registered investment advisor and
serves as the fund’s investment advisor. First Trust and its
affiliate First Trust Portfolios L.P. (“FTP”), a FINRA registered
broker-dealer, are privately held companies that provide a variety
of investment services. First Trust has collective assets under
management or supervision of approximately $256 billion as of
December 31, 2024, through unit investment trusts, exchange-traded
funds, closed-end funds, mutual funds and separate managed
accounts. First Trust is the supervisor of the First Trust unit
investment trusts, while FTP is the sponsor. FTP is also a
distributor of mutual fund shares and exchange-traded fund creation
units. First Trust and FTP are based in Wheaton, Illinois. For more
information, visit https://www.ftportfolios.com.
About Richard Bernstein
Advisors
Richard Bernstein Advisors LLC is a global macro multi-asset
investment manager with a broad range of products across global
equity and fixed income markets. Founded in 2009, RBA manages
approximately $16 billion in client assets today, including several
prominent pension plans, corporations and foundations, as well as
financial advisors and high net worth individuals. RBA acts as
sub-advisor for the Eaton Vance Richard Bernstein Equity Strategy
Fund and the Eaton Vance Richard Bernstein All-Asset Strategy Fund
and offers income and theme-oriented unit trusts and ETFs through
First Trust. RBA's investment insights as well as further
information about the firm and products can be found at
www.rbadvisors.com.
You should consider a fund’s investment objectives, risks,
and charges and expenses carefully before investing. Contact First
Trust Portfolios L.P. at 1-800-621-1675 or visit
www.ftportfolios.com to obtain a prospectus or summary
prospectus which contains this and other information about a fund.
The prospectus or summary prospectus should be read carefully
before investing.
Risk Considerations
Unlike mutual funds, shares of the fund may only be redeemed
directly from a fund by authorized participants in very large
creation/redemption units. If a fund's authorized participants are
unable to proceed with creation/redemption orders and no other
authorized participant is able to step forward to create or redeem,
fund shares may trade at a premium or discount to a fund's net
asset value and possibly face delisting and the bid/ask spread may
widen.
Community banks were significantly impacted by the decline in
the subprime mortgage lending market in the U.S. which brought
about legislative and regulatory changes, changes in short-term and
long-term interest rates, inflation and changes in government
monetary and fiscal policies. Unlike larger national or other
regional banks that are more geographically diversified, a
community bank's financial performance may be highly dependent upon
the business environment in certain geographic regions of the U.S.
and may be adversely impacted by any downturn or unfavorable
economic or employment developments in its local market and the
U.S. as a whole.
Current market conditions risk is the risk that a particular
investment, or shares of the fund in general, may fall in value due
to current market conditions. For example, changes in governmental
fiscal and regulatory policies, disruptions to banking and real
estate markets, actual and threatened international armed conflicts
and hostilities, and public health crises, among other significant
events, could have a material impact on the value of the fund's
investments.
A fund is susceptible to operational risks through breaches in
cyber security. Such events could cause a fund to incur regulatory
penalties, reputational damage, additional compliance costs
associated with corrective measures and/or financial loss.
Depositary receipts may be less liquid than the underlying
shares in their primary trading market and distributions may be
subject to a fee. Holders may have limited voting rights, and
investment restrictions in certain countries may adversely impact
their value.
Equity securities may decline significantly in price over short
or extended periods of time, and such declines may occur in the
equity market as a whole, or they may occur in only a particular
country, company, industry or sector of the market.
An index fund will be concentrated in an industry or a group of
industries to the extent that the index is so concentrated. A fund
with significant exposure to a single asset class, or the
securities of issuers within the same country, state, region,
industry, or sector may have its value more affected by an adverse
economic, business or political development than a broadly
diversified fund.
A fund may be a constituent of one or more indices or models
which could greatly affect a fund's trading activity, size and
volatility.
There is no assurance that the index provider or its agents will
compile or maintain the index accurately. Losses or costs
associated with any index provider errors generally will be borne
by a fund and its shareholders.
Industrials and producer durables companies are subject to
certain risks, including the general state of the economy, intense
competition, consolidation, domestic and international politics,
excess capacity and consumer demand and spending trends. They may
also be significantly affected by overall capital spending levels,
economic cycles, technical obsolescence, delays in modernization,
labor relations, and government regulations.
Market risk is the risk that a particular security, or shares of
a fund in general may fall in value. Securities are subject to
market fluctuations caused by such factors as general economic
conditions, political events, regulatory or market developments,
changes in interest rates and perceived trends in securities
prices. Shares of a fund could decline in value or underperform
other investments as a result. In addition, local, regional or
global events such as war, acts of terrorism, spread of infectious
disease or other public health issues, recessions, natural
disasters or other events could have significant negative impact on
a fund.
A fund faces numerous market trading risks, including the
potential lack of an active market for fund shares due to a limited
number of market makers. Decisions by market makers or authorized
participants to reduce their role or step away in times of market
stress could inhibit the effectiveness of the arbitrage process in
maintaining the relationship between the underlying values of a
fund's portfolio securities and a fund's market price.
An index fund's return may not match the return of the index for
a number of reasons including operating expenses, costs of buying
and selling securities to reflect changes in the index, and the
fact that a fund's portfolio holdings may not exactly replicate the
index.
A fund and a fund's advisor may seek to reduce various
operational risks through controls and procedures, but it is not
possible to completely protect against such risks. The fund also
relies on third parties for a range of services, including custody,
and any delay or failure related to those services may affect the
fund's ability to meet its objective.
A fund that invests in securities included in or representative
of an index will hold those securities regardless of investment
merit and the fund generally will not take defensive positions in
declining markets.
High portfolio turnover may result in higher levels of
transaction costs and may generate greater tax liabilities for
shareholders.
The market price of a fund's shares will generally fluctuate in
accordance with changes in the fund's net asset value ("NAV") as
well as the relative supply of and demand for shares on the
exchange, and a fund's investment advisor cannot predict whether
shares will trade below, at or above their NAV.
Securities of small- and mid-capitalization companies may
experience greater price volatility and be less liquid than larger,
more established companies.
Trading on an exchange may be halted due to market conditions or
other reasons. There can be no assurance that a fund's requirements
to maintain the exchange listing will continue to be met or be
unchanged.
First Trust Advisors L.P. (FTA) is the adviser to the First
Trust fund(s). FTA is an affiliate of First Trust Portfolios L.P.,
the distributor of the fund(s).
The information presented is not intended to constitute an
investment recommendation for, or advice to, any specific person.
By providing this information, First Trust is not undertaking to
give advice in any fiduciary capacity within the meaning of ERISA,
the Internal Revenue Code or any other regulatory framework.
Financial professionals are responsible for evaluating investment
risks independently and for exercising independent judgment in
determining whether investments are appropriate for their
clients.
Richard Bernstein Advisors and Richard Bernstein Advisors
American Industrial Renaissance® Index ("Index") are trademarks and
trade names of Richard Bernstein Advisors ("RBA"). The Fund is not
sponsored, endorsed, sold or promoted by RBA and RBA makes no
representation or warranty, express or implied, to the owners of
the Fund or any member of the public regarding the advisability of
trading in the Fund. RBA's only relationship to First Trust is the
licensing of certain trademarks and trade names of RBA and of the
Index, which is determined and composed by RBA without regard to
First Trust or the Fund. RBA has no obligation to take the needs of
First Trust or the owners of the Fund into consideration in
determining or composing the Index. RBA is not responsible for and
has not participated in the determination of the timing of, prices
at, or quantities of the Fund to be listed or in the determination
or calculation of the equation by which the Fund is to be converted
into cash. RBA has no obligation or liability in connection with
the administration, marketing or trading of the Fund.
^The Morningstar Rating™ for funds, or “star rating”, is
calculated for managed products (including mutual funds, variable
annuity and variable life subaccounts, exchange-traded funds,
closed-end funds, and separate accounts) with at least a three-year
history. Exchange-traded funds and open-ended mutual funds are
considered a single population for comparative purposes. It is
calculated based on a Morningstar Risk Adjusted Return measure that
accounts for variation in a managed product’s monthly excess
performance, placing more emphasis on downward variations and
rewarding consistent performance. The Morningstar Rating does not
include any adjustment for sales loads. The top 10% of products in
each product category receive 5 stars, the next 22.5% receive 4
stars, the next 35% receive 3 stars, the next 22.5% receive 2
stars, and the bottom 10% receive 1 star. The Overall Morningstar
Rating for a managed product is derived from a weighted average of
the performance figures associated with its three-, five-, and
10-year (if applicable) Morningstar Rating metrics. The weights
are: 100% three-year rating for 36-59 months of total returns, 60%
five-year rating/40% three-year rating for 60-119 months of total
returns, and 50% 10-year rating/30% five-year rating/20% three-year
rating for 120 or more months of total returns. While the 10-year
overall star rating formula seems to give the most weight to the
10-year period, the most recent three-year period actually has the
greatest impact because it is included in all three rating periods.
©2025 Morningstar, Inc. All Rights Reserved. The Morningstar
Rating™ information contained herein: (1) is proprietary to
Morningstar; (2) may not be copied or distributed; and (3) is not
warranted to be accurate, complete or timely. Neither Morningstar
nor its content providers are responsible for any damages or losses
arising from any use of this information. Past performance is no
guarantee of future results.
S&P 500® Industrials Index - The Index is an unmanaged index
which includes the stocks in the industrials sector of the S&P
500 Index.
Russell 2500® Index - The Index is an unmanaged market-cap
weighted index that includes the smallest 2,500 companies from the
Russell 3000 Index.
S&P 500® Index - The Index is an unmanaged index of 500
companies used to measure large-cap U.S. stock market
performance.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250124768701/en/
Ryan Issakainen First Trust (630) 765-8689
RIssakainen@FTAdvisors.com
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