First Trust To Begin Trading The First Trust NASDAQ Global Auto Index Fund ETF (CARZ) Tuesday May 10th

First Trust will begin trading its new “First Trust NASDAQ Global Auto Index Fund ETF” (NASDAQ:CARZ) Tuesday May, 10 2011. The First Trust NASDAQ Global Auto Index Fund is an exchange-traded fund. The investment objective of the Fund is to seek investment results that correspond generally to the price and yield, before the Fund’s fees and expenses, of an equity index called the NASDAQ OMX Global Auto Index.

Total Annual Fund Operating Expenses 0.70%

Principal Investment Strategies

The Fund will normally invest at least 90% of its net assets (plus the amount of any borrowings for investment purposes) in common stocks 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 Advisors L.P. (“First Trust”), the Fund’s investment advisor, 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.

The Index is owned and was developed by The NASDAQ OMX Group, Inc. (the “Index Provider”). The Index Provider has contracted with Standard & Poor’s to calculate and maintain the Index. The Index is designed to track the performance of the largest and most liquid companies engaged in manufacturing of automobiles.

The Index uses a modified market-capitalization weighting methodology. The Index Provider evaluates the Index components annually in June of each year for eligibility, using market data through the end of May. Eligible components for the Index are identified as such using the eligibility criteria set forth in this Prospectus under “Index Information.” Changes to the Index are made effective after the close of trading on the third Friday in June. The Index is rebalanced quarterly, each March, June, September and December. As of March 31, 2011, the Index was comprised of 32 securities from nine countries, which included the United States and Japan.

The Fund intends to invest entirely in the Index, however, there may also be instances in which the Fund may be underweighted or overweighted in certain securities in the Index, not invest in certain securities included in the Index, purchase securities not in the Index that are appropriate to substitute for certain securities in the Index or utilize various combinations of the above techniques in seeking to track the Index.

For the complete prospectus click: HERE

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