CARZ Fund Description

The First Trust NASDAQ Global Auto Index Fund tracks a market-cap-weighted index of global auto manufacturing firms.

CARZ ETF.com Insight

CARZ is not a broad, global automobile industry fund, but rather a global automakers fund. In another word, it has big stakes in the brand-name companies that manufacture the cars you seehigh holding costs and wide spreads on the road—Toyota, Daimler, etc.—but no positions in the upstream part suppliers and accessory manufacturers. Nearly 80% of the fund is allocated to American, German, and Japanese automakers. CARZ charges 70 bps for this exposure, but the strategy still appeals to some: CARZ hosts more than $30M in assets under management. Whether because of liquidity screens or classification issues, there's no Tata motors in this portfolio; the fund is light on emerging markets in general. CARZ is a good choice for investors with conviction in this specific slice of the market, but its high holding costs and wide spreads are not to be ignored. (Insight updated 12/11/2014)

  • 1 Month

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  • 1 Year

  • 3 Years

  • 5 Years

  • Max

Performance [as of 12/18/14]
1 Month
3 Month
YTD
1 Year
3 Years
5 Years
10 Years

CARZ
-1.65% -5.38% -5.44% -3.07% 19.77% -- --

CARZ (NAV)
-1.14% -4.58% -4.11% -2.58% 20.50% -- --

NASDAQ OMX Global Auto Index
-2.35% -5.59% -4.60% -2.23% 21.02% -- --
All returns over 1 year are annualized. All returns are total returns unless otherwise stated.

CARZ Top 10 Countries

CARZ Top 10 Sectors

CARZ Top 10 Holdings View All

CARZ Summary Data

Issuer First Trust

A company that produces and manages ETFs.

Inception Date 05/09/11

The first date of a fund's operations, as documented by the issuer.

Legal Structure Open-Ended Fund

The organizational structure of the fund or ETN.

Expense Ratio 0.70%

The net total annual fee a fund holder pays to the issuer.

Assets Under Management $35.56 M

The market value of total assets that a fund has accumulated and now manages on behalf of investors.

Average Daily $ Volume $801.39 K

It is the daily dollar value of shares traded, averaged over the past 45 trading days.

(%) | The difference between the highest price a market participant is willing to pay to buy an ETF and the lowest price at which a market participant is willing to sell an ETF, averaged over the past 45 days, as a percent." href="javascript:void(0)" class="term">Average Spread (%) 0.42%

The difference between the highest price a market participant is willing to pay to buy an ETF and the lowest price at which a market participant is willing to sell an ETF, averaged over the past 45 days, as a percent.

CARZ Portfolio Data

Weighted Average Market Cap $58.58 B

Describes the average of each stock's market cap (share price x shares outstanding) scaled by its weight in the portfolio.

Price / Earnings Ratio 11.58

Weighted average ratio of prices of a fund’s stocks to trailing earnings of underlying stocks.

Price / Book Ratio 1.36

Weighted average ratio of prices of a fund’s stocks to the book value of underlying equity.

Distribution Yield 1.15%

The ratio of distributions paid by the fund over the past 12 months, divided by the fund’s NAV.

Next Ex-Dividend Date 12/23/14

The date on which a security's price excludes an upcoming dividend.

Number of Holdings 36

The number of securities held in the fund as of ETF.com’s analysis date, based on issuer portfolios or the creation basket. If an ETF holds other ETFs, we count every constituent, looking through the ETF wrapper.

CARZ Index Data

Index Tracked NASDAQ OMX Global Auto Index

This is the benchmark an ETF is desigend to track or replicate.

Index Weighting Methodology Market Cap

A set of rules that the underlying index provider follows to weight its constituent securities.

Index Selection Methodology Market Cap

A set of rules that the underlying index provider follows to select its constituent securities.

Segment Benchmark Thomson Reuters Global
Automobiles & Parts

This is the index that we have chosen as the best-in-class gauge for each segment's broad market.

Related ETFs to CARZ

Top Competing ETFs EMDI, FXD, AXDI, IPD, EXI

ETFs from within the same segment or closely related segments with similar investment objectives or market exposures.

CARZ ETF.com Efficiency Insight

At 70 bps, CARZ has a high expense ratio. Median tracking results suggest that real-world holding cost is unpredictable and is likely to run higher than the fund's advertised fee. Its AUM has dwindled to less than $40M, but we still see low closure risk. The fund has been tax efficient over the past 3 years as it managed to avoid capital gains payouts. (Insight updated 12/11/2014)


Total Return - 12/18/2014

  • 1 Month

  • 3 Months

  • YTD

  • 1 Year

  • 3 Years

  • 5 Years

  • Max

Performance [as of 12/18/14]
1 Month
3 Month
YTD
1 Year
3 Years
5 Years
10 Years

CARZ
-1.65% -5.38% -5.44% -3.07% 19.77% -- --

CARZ (NAV)
-1.14% -4.58% -4.11% -2.58% 20.50% -- --

NASDAQ OMX Global Auto Index
-2.35% -5.59% -4.60% -2.23% 21.02% -- --

Thomson Reuters Global Automobiles & Parts
-0.53% -2.69% -0.16% 2.30% 11.64% 4.94% --
All returns over 1 year are annualized. All returns are total returns unless otherwise stated.

CARZ Portfolio Management

Expense Ratio 0.70%

The net annual fee a fund holder pays to the issuer.

(12 Mo) | Compares returns of the fund's NAV to its underlying index for a daily series of overlapping 12 month periods. The median is the middle value of the results." href="javascript:void(0)" class="term">Median Tracking Difference (12 Mo) -1.03%

Compares returns of the fund's NAV to its underlying index for a daily series of overlapping 12 month periods. The median is the middle value of the results.

CARZ Tax Exposures

Max LT/ST Capital Gains Rate 20.00% / 39.60%

The maximum long-term and short-term U.S. tax rates applicable to a realized capital gain.

Tax on Distributions Qualified dividends

IRS treatment of the majority of the fund's distributions.

Distributes K1 No

ETFs that are structured as commodities pools and classified as limited partnerships by the IRS will issue K-1 forms to holders.

CARZ Fund Structure

Legal Structure Open-Ended Fund

The organizational structure of the fund or ETN.

OTC Derivative Use No

An indicator of whether a fund uses over-the-counter derivatives such as swaps or forwards to achieve its objectives.

Securities Lending Active Yes

An indicator of whether or not a fund actively lends its portfolio holdings.

ETN Counterparty N/A

The institution responsible for providing the return of the stated index and whose credit is the sole backing of the ETN.

ETN Counterparty Risk N/A

The risk of default by the ETN counterparty.

Fund Closure Risk Low

The likelihood that an issuer will shut down a fund for business or regulatory reasons.

Portfolio Disclosure Daily

The frequency of an issuer's disclosure of all fund holdings.

CARZ ETF.com Tradability Insight

CARZ has a highly liquid portfolio of large global automakers, but its on-screen liquidity is only decent—at best. More than $200K worth of CARZ changes hands daily but, unfortunately, it's not enough to reign in CARZ's wide spreads. The fund's small basket of liquid holdings should support a robust primary market for ETF shares. In short, this is the type of ETF that is easier to trade in size than in small lots. (Insight updated 12/11/2014)

Average Spread

Premium/Discount

Volume

CARZ ETF.com/ Block LiquidityAs of 12/19/2014

5
4
3
2
1

This measurement shows how easy it is to trade 25,000 shares of CARZ. CARZ is rated a 4 out of 5.

CARZ Tradability

Avg. Daily Share Volume 21,705

It is the daily number of shares traded, averaged over the past 45 trading days.

Average Daily $ Volume $801.39 K

It is the daily dollar value of shares traded, averaged over the past 45 trading days.

Median Daily Share Volume 8,085

Median number of shares traded over the past 45 trading days.

(%) | The difference between the highest price a market participant is willing to pay to buy an ETF and the lowest price at which a market participant is willing to sell an ETF, averaged over the past 45 days, as a percent." href="javascript:void(0)" class="term">Average Spread (%) 0.42%

The difference between the highest price a market participant is willing to pay to buy an ETF and the lowest price at which a market participant is willing to sell an ETF, averaged over the past 45 days, as a percent.

($) | The difference between the highest and lowest posted prices for an ETF, averaged over the past 45 days, in dollars." href="javascript:void(0)" class="term">Average Spread ($) $0.15

The difference between the highest and lowest posted prices for an ETF, averaged over the past 45 days, in dollars.

(12 Mo) | The greatest amount that the market price exceeded (premium) and fell below (discount) its fair value/net asset value (NAV) over a maximum 12-month period." href="javascript:void(0)" class="term">Max. Premium / Discount (12 Mo) 3.52% / -1.08%

The greatest amount that the market price exceeded (premium) and fell below (discount) its fair value/net asset value (NAV) over a maximum 12-month period.

Impediment to Creations None

This flags whether there is currently a systemic issue that has restricted the ability to create or redeem shares of the fund. This may be imposed by the fund's issuer, or by external circumstances.

Market Hours Overlap 31.98%

The percent of time that the underlying securities of an ETF are open to trading while US exchanges are open.

(Shares) | The smallest block of ETF shares that an Authorized Participant can either create or redeem at net asset value (NAV) with the issuer in exchange for the underlying shares of the fund." href="javascript:void(0)" class="term">Creation Unit Size (Shares) 50,000

The smallest block of ETF shares that an Authorized Participant can either create or redeem at net asset value (NAV) with the issuer in exchange for the underlying shares of the fund.

(45 Day Average) | The median 45 day share volume divided by the creation unit size of the fund. The higher the number, the more likely that liquidity providers will trade the fund in size, or in odd lots." href="javascript:void(0)" class="term">Creation Unit/Day (45 Day Average) 0.16

The median 45 day share volume divided by the creation unit size of the fund. The higher the number, the more likely that liquidity providers will trade the fund in size, or in odd lots.

(%) | The standard fee to create or redeem 1 creation unit of an ETF as a percentage of the dollar value of 1 creation unit." href="javascript:void(0)" class="term">Creation Unit Cost (%) 0.05%

The standard fee to create or redeem 1 creation unit of an ETF as a percentage of the dollar value of 1 creation unit.

Underlying Volume / Unit 0.06%

This metric serves as a way of understanding the impact of executing 1 creation unit worth of an ETF in terms of the volume of its underlying components.

Open Interest on ETF Options --

The total number of net outstanding options contracts for an ETF.

ETF.com Implied Liquidity 4

An estimate of liquidity for the underlying baskets of securities, scaled 1 to 5.

CARZ ETF.com Fit Insight

If you want targeted exposure to global automakers, CARZ offers it. The big automakers are huge firms, but the lower end of the industry is filled with smaller firms like SsangYongheavily dependent on large, developed economies and consumer discretionary spending Motors—a Korean manufacturer. With heavy exposure to American, German, and Japanese firms the fund is heavily dependent on large, developed economies and consumer discretionary spending. (Insight updated 12/11/2014)

CARZ Geographic ExposureView All

Countries CARZ Segment Benchmark
Japan 38.48% 37.80%

United States 25.01% 23.00%

Germany 13.53% 20.57%

Korea, Republic Of 5.09% 6.57%

France 4.28% 5.24%

China 1.49% 4.94%

Hong Kong 0.20% 0.70%

Malaysia 0.20% 0.56%

Other 10.78% 0.13%

Regions CARZ Segment Benchmark
Asia-Pacific 52.73% 51.06%

Europe 20.10% 25.94%

North America 27.05% 23.00%

Latin America 0.09% --

Developed /
Emerging Split
91.67% / 8.33% 94.50% / 5.50%

CARZ Performance Statistics

Beta 0.83

The sensitivity of the returns of the fund to the movement of the ETF.com segment benchmark. Beta of 1.0 means magnitude of fund returns equals that of IU benchmark returns.

Up Beta 0.97

The comparison of a fund's return to our benchmark's for days when the benchmark is up. Ideally down beta is less than up beta while beta of 1.0 means they're equal.

Down Beta 0.71

The comparison of a fund's return to our benchmark's for days when the benchmark is down. Ideally down beta is less than up beta while beta of 1.0 means they're equal.

Downside Standard Deviation 0.45%

A measure of the variability between the fund's returns and the ETF.com segment benchmark returns on days when the fund underperforms the benchmark.

Segment Benchmark Thomson Reuters Global
Automobiles & Parts

This is the index that we have chosen as the best-in-class gauge for each segment's broad market.

CARZ Benchmark Comparison

CARZ
36 Holdings
Segment Benchmark
308 Constituents
Shared Holdings
32 (Count)
 
48.89% (Weight)
CARZSegment Benchmark
Market Cap | The average market capitalization of the firms in the portfolio based on each firm’s weighting in the portfolio." href="javascript:void(0)" class="term">Weighted Average
Market Cap
$60.8 B$58.58 B

The average market capitalization of the firms in the portfolio based on each firm’s weighting in the portfolio.

Size Split

The breakdown of the portfolio’s holdings into each market capitalization bucket based on each firm’s weighting in the portfolio.

Large (>12.9B)74%90%
Mid (>2.7B)19%9%
Small (>600M)5%1%
Micro (<600M)2%0%
Price / Book Ratio1.601.36

Weighted average ratio of prices of a fund’s stocks to the book value of underlying equity.

Dividend Yield2.02%1.98%

The weighted average of the current yield on the portfolio’s holdings.

Holdings | The number of securities held in the fund as of ETF.com’s analysis date, based on issuer portfolios or the creation basket. If an ETF holds other ETFs, we count every constituent, looking through the ETF wrapper." href="javascript:void(0)" class="term">Number Of
Holdings
30836

The number of securities held in the fund as of ETF.com’s analysis date, based on issuer portfolios or the creation basket. If an ETF holds other ETFs, we count every constituent, looking through the ETF wrapper.

ConcentrationMediumHigh

The level of return contribution attributable to the average portfolio constituent.