First Trust Emerging Markets Local Currency Bond ETF (FEMB)Portfolio of InvestmentsJuly 31, 2024 (Unaudited)
Principal Value | Description | Stated Coupon | Stated Maturity | Value | |
FOREIGN SOVEREIGN BONDS AND NOTES (a) — 92.7% | |||||
Brazil — 11.0% | |||||
11,000,000 | Brazil Notas do Tesouro Nacional, Series F (BRL) | 10.00% | 01/01/27 | $1,877,723 | |
42,700,000 | Brazil Notas do Tesouro Nacional, Series F (BRL) | 10.00% | 01/01/29 | 7,095,538 | |
31,000,000 | Brazil Notas do Tesouro Nacional, Series F (BRL) | 10.00% | 01/01/31 | 5,037,612 | |
28,500,000 | Brazil Notas do Tesouro Nacional, Series F (BRL) | 10.00% | 01/01/33 | 4,567,840 | |
11,000,000 | Brazil Notas do Tesouro Nacional, Series F (BRL) | 10.00% | 01/01/35 | 1,741,690 | |
20,320,403 | |||||
Chile — 2.3% | |||||
325,000,000 | Bonos de la Tesoreria de la Republica en pesos (CLP) | 4.50% | 03/01/26 | 342,809 | |
3,895,000,000 | Bonos de la Tesoreria de la Republica en pesos (CLP) (b) (c) | 4.70% | 09/01/30 | 3,889,101 | |
4,231,910 | |||||
Colombia — 4.7% | |||||
16,510,000,000 | Colombian TES, Series B (COP) | 7.00% | 06/30/32 | 3,334,351 | |
27,243,000,000 | Colombian TES, Series B (COP) | 7.25% | 10/18/34 | 5,297,844 | |
8,632,195 | |||||
Czech Republic — 0.5% | |||||
22,740,000 | Czech Republic Government Bond (CZK) (c) | 2.40% | 09/17/25 | 955,112 | |
Hungary — 4.6% | |||||
1,496,000,000 | Hungary Government Bond (HUF) | 5.50% | 06/24/25 | 4,096,905 | |
860,000,000 | Hungary Government Bond (HUF) | 6.75% | 10/22/28 | 2,431,047 | |
725,000,000 | Hungary Government Bond (HUF) | 7.00% | 10/24/35 | 2,085,741 | |
8,613,693 | |||||
India — 0.2% | |||||
40,000,000 | India Government Bond (INR) | 6.10% | 07/12/31 | 456,624 | |
Indonesia — 14.8% | |||||
118,263,000,000 | Indonesia Treasury Bond (IDR) | 8.38% | 09/15/26 | 7,543,542 | |
118,599,000,000 | Indonesia Treasury Bond (IDR) | 9.00% | 03/15/29 | 7,938,670 | |
143,440,000,000 | Indonesia Treasury Bond (IDR) | 7.00% | 09/15/30 | 8,926,746 | |
34,395,000,000 | Indonesia Treasury Bond (IDR) | 8.38% | 03/15/34 | 2,326,626 | |
8,786,000,000 | Indonesia Treasury Bond (IDR) | 8.25% | 05/15/36 | 594,719 | |
27,330,303 | |||||
Israel — 1.6% | |||||
2,400,000 | Israel Government Bond - Fixed (ILS) | 6.25% | 10/30/26 | 661,284 | |
1,850,000 | Israel Government Bond - Fixed (ILS) | 3.75% | 02/28/29 | 473,379 | |
9,020,000 | Israel Government Bond - Fixed (ILS) | 1.30% | 04/30/32 | 1,855,436 | |
2,990,099 | |||||
Malaysia — 11.7% | |||||
6,770,000 | Malaysia Government Bond (MYR) | 3.90% | 11/30/26 | 1,494,639 | |
16,900,000 | Malaysia Government Bond (MYR) | 3.73% | 06/15/28 | 3,711,547 | |
28,055,000 | Malaysia Government Bond (MYR) | 3.89% | 08/15/29 | 6,204,707 | |
14,200,000 | Malaysia Government Bond (MYR) | 4.50% | 04/15/30 | 3,229,895 | |
21,155,000 | Malaysia Government Bond (MYR) | 2.63% | 04/15/31 | 4,321,822 | |
12,030,000 | Malaysia Government Bond (MYR) | 4.64% | 11/07/33 | 2,807,039 | |
21,769,649 | |||||
Mexico — 4.8% | |||||
123,810,000 | Mexican Bonos, Series M (MXN) | 7.50% | 06/03/27 | 6,266,605 | |
37,860,000 | Mexican Bonos, Series M (MXN) | 8.50% | 05/31/29 | 1,938,492 | |
14,500,000 | Mexican Bonos, Series M (MXN) | 7.50% | 05/26/33 | 674,934 | |
8,880,031 |
First Trust Emerging Markets Local Currency Bond ETF (FEMB)Portfolio of Investments (Continued)July 31, 2024 (Unaudited)
Principal Value | Description | Stated Coupon | Stated Maturity | Value | |
FOREIGN SOVEREIGN BONDS AND NOTES (a) (Continued) | |||||
Peru — 2.3% | |||||
7,470,000 | Peru Government Bond (PEN) | 6.95% | 08/12/31 | $2,066,806 | |
8,150,000 | Peru Government Bond (PEN) | 6.90% | 08/12/37 | 2,123,055 | |
4,189,861 | |||||
Philippines — 2.4% | |||||
275,000,000 | Philippine Government International Bond (PHP) | 6.25% | 01/14/36 | 4,490,694 | |
Poland — 4.8% | |||||
10,436,000 | Republic of Poland Government Bond (PLN) | 7.50% | 07/25/28 | 2,852,256 | |
23,375,000 | Republic of Poland Government Bond (PLN) | 1.75% | 04/25/32 | 4,598,823 | |
5,825,000 | Republic of Poland Government Bond (PLN) | 6.00% | 10/25/33 | 1,538,462 | |
8,989,541 | |||||
Romania — 4.9% | |||||
35,350,000 | Romania Government Bond (RON) | 6.70% | 02/25/32 | 7,713,891 | |
6,970,000 | Romania Government Bond (RON) | 4.75% | 10/11/34 | 1,302,920 | |
9,016,811 | |||||
South Africa — 11.3% | |||||
161,130,000 | Republic of South Africa Government Bond (ZAR) | 10.50% | 12/21/26 | 9,254,192 | |
148,080,000 | Republic of South Africa Government Bond (ZAR) | 8.25% | 03/31/32 | 7,312,733 | |
72,060,000 | Republic of South Africa Government Bond (ZAR) | 8.88% | 02/28/35 | 3,462,639 | |
20,000,000 | Republic of South Africa Government Bond (ZAR) | 8.75% | 01/31/44 | 859,410 | |
20,888,974 | |||||
Supranational — 5.8% | |||||
100,000,000 | African Development Bank (ZAR) | (d) | 04/05/46 | 616,809 | |
277,020,000 | Asian Development Bank (INR) | 6.20% | 10/06/26 | 3,279,204 | |
186,000,000 | European Bank for Reconstruction & Development (INR) | 6.30% | 10/26/27 | 2,192,435 | |
125,000,000 | Inter-American Development Bank (INR) | 7.35% | 10/06/30 | 1,521,909 | |
62,000,000 | International Bank for Reconstruction & Development (INR) | 6.75% | 07/13/29 | 735,777 | |
116,000,000 | International Finance Corp. (INR) | 6.30% | 11/25/24 | 1,382,923 | |
62,500,000 | International Finance Corp. (MXN) | (d) | 02/22/38 | 958,519 | |
10,687,576 | |||||
Thailand — 4.9% | |||||
126,210,000 | Thailand Government Bond (THB) | 3.35% | 06/17/33 | 3,761,337 | |
177,250,000 | Thailand Government Bond (THB) | 3.39% | 06/17/37 | 5,309,692 | |
9,071,029 | |||||
Turkey — 0.1% | |||||
11,800,000 | Turkiye Government Bond (TRY) | 10.60% | 02/11/26 | 249,670 | |
Total Investments — 92.7% | 171,764,175 | ||||
(Cost $179,834,419) | |||||
Net Other Assets and Liabilities — 7.3% | 13,448,004 | ||||
Net Assets — 100.0% | $185,212,179 |
First Trust Emerging Markets Local Currency Bond ETF (FEMB)Portfolio of Investments (Continued)July 31, 2024 (Unaudited)
Forward Foreign Currency Contracts at July 31, 2024:
Settlement Date | Counterparty | Amount Purchased | Amount Sold | Purchase Value as of 7/31/2024 | Sale Value as of 7/31/2024 | Unrealized Appreciation (Depreciation) | ||
08/23/2024 | JPM | CLP | 1,130,000,000 | USD | 1,239,277 | $1,199,549 | $1,239,277 | $(39,728 ) |
08/23/2024 | BNY | CNH | 11,500,000 | USD | 1,582,403 | 1,594,881 | 1,582,403 | 12,478 |
08/23/2024 | BNS | COP | 10,360,000,000 | USD | 2,595,841 | 2,549,441 | 2,595,841 | (46,400 ) |
08/23/2024 | JPM | COP | 6,500,000,000 | USD | 1,615,266 | 1,599,553 | 1,615,266 | (15,713 ) |
08/23/2024 | BNY | HUF | 166,000,000 | USD | 456,431 | 455,560 | 456,431 | (871 ) |
08/23/2024 | JPM | INR | 208,500,000 | USD | 2,492,946 | 2,488,362 | 2,492,946 | (4,584 ) |
08/23/2024 | JPM | KRW | 2,100,000,000 | USD | 1,525,464 | 1,527,544 | 1,525,464 | 2,080 |
08/23/2024 | BNY | MXN | 99,570,000 | USD | 5,553,816 | 5,324,077 | 5,553,816 | (229,739 ) |
08/23/2024 | BNS | PHP | 151,900,000 | USD | 2,606,830 | 2,600,650 | 2,606,830 | (6,180 ) |
08/23/2024 | JPM | PHP | 107,600,000 | USD | 1,841,862 | 1,842,199 | 1,841,862 | 337 |
08/23/2024 | BNY | PLN | 3,600,000 | USD | 914,210 | 908,003 | 914,210 | (6,207 ) |
08/23/2024 | BNY | THB | 33,500,000 | USD | 926,182 | 941,673 | 926,182 | 15,491 |
08/23/2024 | JPM | USD | 1,450,215 | BRL | 7,900,000 | 1,450,215 | 1,393,332 | 56,883 |
08/23/2024 | JPM | USD | 1,180,687 | CLP | 1,130,000,000 | 1,180,687 | 1,199,549 | (18,862 ) |
08/23/2024 | BNY | USD | 920,137 | CZK | 21,500,000 | 920,137 | 916,062 | 4,075 |
08/23/2024 | BNS | USD | 6,632,559 | IDR | 107,600,000,000 | 6,632,559 | 6,612,666 | 19,893 |
08/23/2024 | BNY | USD | 1,922,759 | ILS | 6,990,000 | 1,922,759 | 1,852,168 | 70,591 |
08/23/2024 | JPM | USD | 2,488,709 | INR | 208,500,000 | 2,488,709 | 2,488,361 | 348 |
08/23/2024 | BNS | USD | 1,298,990 | PHP | 75,900,000 | 1,298,990 | 1,299,469 | (479 ) |
08/23/2024 | BNY | USD | 924,614 | ZAR | 17,000,000 | 924,614 | 931,645 | (7,031 ) |
08/23/2024 | BNY | ZAR | 84,000,000 | USD | 4,654,756 | 4,603,418 | 4,654,756 | (51,338 ) |
Net Unrealized Appreciation (Depreciation) | $(244,956 ) |
(a) | Principal Value is in local currency in the security description. |
(b) | This security, sold within the terms of a private placement memorandum, is exempt from registration upon resale under Rule 144A of the Securities Act of 1933, as amended (the “1933 Act”), and may be resold in transactions exempt from registration, normally to qualified institutional buyers. Pursuant to procedures adopted by the Trust’s Board of Trustees, this security has been determined to be liquid by First Trust Advisors L.P., the Fund’s advisor. Although market instability can result in periods of increased overall market illiquidity, liquidity for each security is determined based on security specific factors and assumptions, which require subjective judgment. At July 31, 2024, securities noted as such amounted to $3,889,101 or 2.1% of net assets. |
(c) | This security may be resold to qualified foreign investors and foreign institutional buyers under Regulation S of the 1933 Act. |
(d) | Zero coupon security. |
First Trust Emerging Markets Local Currency Bond ETF (FEMB)Portfolio of Investments (Continued)July 31, 2024 (Unaudited)
Abbreviations throughout the Portfolio of Investments: | |
BNS | – Bank of Nova Scotia |
BNY | – Bank of New York (The) |
BRL | – Brazilian Real |
CLP | – Chilean Peso |
CNH | – Chinese Yuan |
CNY | – China Yuan Renminbi |
COP | – Colombian Peso |
CZK | – Czech Koruna |
EUR | – Euro |
HUF | – Hungarian Forint |
IDR | – Indonesian Rupiah |
ILS | – Israeli Shekel |
INR | – Indian Rupee |
JPM | – JPMorgan Chase and Co. |
KRW | – South Korean Won |
MXN | – Mexican Peso |
MYR | – Malaysian Ringgit |
PEN | – Peruvian Nuevo Sol |
PHP | – Philippine Peso |
PLN | – Polish Zloty |
RON | – Romanian New Leu |
THB | – Thai Baht |
TRY | – Turkish Lira |
USD | – United States Dollar |
ZAR | – South African Rand |
Credit Quality(1) | % of Total Investments (including cash) |
AAA | 5.9% |
AA | 0.5 |
A+ | 4.0 |
A | 16.9 |
A- | 5.0 |
BBB+ | 7.2 |
BBB | 17.3 |
BBB- | 14.7 |
BB | 22.6 |
B+ | 0.1 |
Cash | 5.8 |
Total | 100.0% |
(1) | The ratings are by S&P Global Ratings. A credit rating is an assessment provided by a nationally recognized statistical rating organization (NRSRO) of the creditworthiness of an issuer with respect to debt obligations. Ratings are measured on a scale that generally ranges from AAA (highest) to D (lowest). Investment grade is defined as those issuers that have a long-term credit rating of BBB- or higher. The credit ratings shown relate to the credit worthiness of the issuers of the underlying securities in the Fund, and not to the Fund or its shares. Credit ratings are subject to change. |
Currency Exposure Diversification | % of Total Investments (including cash)‡ |
ZAR | 13.9% |
MYR | 12.0 |
IDR | 11.4 |
BRL | 10.4 |
MXN | 8.8 |
COP | 8.3 |
PLN | 6.3 |
RON | 5.7 |
THB | 5.5 |
INR | 5.3 |
HUF | 5.0 |
PHP | 4.2 |
CLP | 2.3 |
PEN | 2.3 |
CNY | 0.9 |
KRW | 0.8 |
ILS | 0.7 |
TRY | 0.1 |
CZK | 0.0‡‡ |
EUR | 0.0‡‡ |
USD | (3.9) |
Total | 100.0% |
‡ | The weightings include the impact of currency forwards. |
‡‡ | Amount is less than 0.1%. |
First Trust Emerging Markets Local Currency Bond ETF (FEMB)Portfolio of Investments (Continued)July 31, 2024 (Unaudited)
Valuation Inputs
The Fund is subject to fair value accounting standards that define fair value, establish the framework for measuring fair value and provide a three-level hierarchy for fair valuation based upon the inputs to the valuation as of the measurement date. The three levels of the fair value hierarchy are as follows:
• Level 1 – Level 1 inputs are quoted prices in active markets for identical investments.
• Level 2 – Level 2 inputs are observable inputs, either directly or indirectly. (Quoted prices for similar investments, valuations based on interest rates and yield curves, or valuations derived from observable market data.)
• Level 3 – Level 3 inputs are unobservable inputs that may reflect the reporting entity’s own assumptions about the assumptions that market participants would use in pricing the investment.
The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in those investments.
A summary of the inputs used to value the Fund’s investments as of July 31, 2024 is as follows:
ASSETS TABLE | ||||
Total Value at 7/31/2024 | Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | |
Foreign Sovereign Bonds and Notes* | $171,764,175 | $— | $171,764,175 | $— |
Forward Foreign Currency Contracts | 182,176 | — | 182,176 | — |
Total | $171,946,351 | $— | $171,946,351 | $— |
LIABILITIES TABLE | ||||
Total Value at 7/31/2024 | Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | |
Forward Foreign Currency Contracts | $(427,132 ) | $— | $(427,132 ) | $— |
* | See Portfolio of Investments for country breakout. |