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First Trust Low Beta Income ETF (FTLB)
Investment Objective/Strategy - The Fund's investment objective is to provide current income. The Fund will pursue its objective by investing in equity securities listed on U.S. exchanges of all market capitalizations and by utilizing an "option strategy" consisting of buying U.S. exchange-traded put options on the Standard & Poor's 500 Index (the "Index") and writing (selling) U.S. exchange-traded covered call options on the Index. Under normal market conditions, the Fund invests primarily in equity securities listed on U.S. exchanges of all market capitalizations. The Fund will also employ an option strategy in which it will write U.S. exchange-traded covered call options on the Index in order to seek additional cash flow in the form of premiums on the options. A premium is the income received by an investor who sells an option contract to another party. These premiums may be distributed to shareholders on a monthly basis or used to purchase U.S. exchange-traded put options on the Index that seek to provide the Fund with downside protection and which are expected to reduce the Fund's price sensitivity to declining markets. The market value of the option strategy may be up to 20% of the Fund's overall net asset value.
There can be no assurance that the Fund's investment objectives will be achieved.
Fund Overview
Fund TypeEquity Income
Investment AdvisorFirst Trust Advisors L.P.
Investor Servicing AgentBrown Brothers Harriman
Fiscal Year-End09/30
Inception Price$19.93
Inception NAV$19.93
Expense Ratio0.85%
Current Fund Data (as of 5/26/2016)
Closing NAV1$19.57
Closing Share Price2$19.55
Bid/Ask Midpoint$19.57
Bid/Ask Discount0.03%
Total Net Assets$4,892,541
Outstanding Shares250,002
Daily Volume25
Average 30-Day Daily Volume1,641
Closing Share Price 52-Week High/Low$20.97 / $18.19
Closing NAV 52-Week High/Low$20.65 / $18.36
Number of Holdings115
Fund Characteristics (as of 4/29/2016)6
Maximum Market Cap.$513,454
Median Market Cap.$8,362
Minimum Market Cap.$781
Price/Cash Flow11.65
Market cap and price ratio statistics are for the equity portion of the fund and exclude cash and options.
Portfolio Options Information (as of 4/29/2016)
% Portfolio with Call Options53.10%
Average Time Until Expiration of Calls38 Days
Average Call Moneyness1.38%
% Portfolio with Put Options42.50%
Average Time Until Expiration of Puts65 Days
Average Put Moneyness7.08%
Moneyness is how much an option contract's strike price is in-the-money (ITM) or out-of-the-money (OTM) expressed as a percentage of the price of the option contract's underlying asset.
Top Holdings (as of 5/27/2016)
Holding Percent
Apple Inc. 3.45%
Intel Corporation 2.43%
Cisco Systems, Inc. 2.38%
Comcast Corporation (Class A) 2.37%
Wal-Mart Stores, Inc. 2.34%
Verizon Communications Inc. 2.32%
Duke Energy Corporation 2.31%
United Parcel Service, Inc. (Class B) 2.31%
The Boeing Company 2.28%
Noble Corporation Plc 2.26%

Holdings are subject to change.

NAV History (Since Inception)
Past performance is not indicative of future results.
Distribution Information
Dividend per Share Amt3$0.0525
30-Day SEC Yield (as of 4/29/2016)41.28%
12-Month Distribution Rate (as of 4/29/2016)53.48%
Bid/Ask Midpoint vs. NAV (as of 3/31/2016)
Number of Days Bid/Ask Midpoint Above NAV
Quarter Ended 0-49
Basis Points
Basis Points
Basis Points
Basis Points
3/31/2016 34 2 0 3
12/31/2015 33 3 0 2
9/30/2015 40 0 0 0
6/30/2015 41 2 0 0
Number of Days Bid/Ask Midpoint Below NAV
Quarter Ended 0-49
Basis Points
Basis Points
Basis Points
Basis Points
3/31/2016 22 0 0 0
12/31/2015 26 0 0 0
9/30/2015 24 0 0 0
6/30/2015 20 0 0 0

The price used to calculate market return is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange, on which shares of the Fund are listed for trading, as of the time that the Fund's NAV is calculated.

Top Sector Exposure (as of 5/27/2016)
Industrials 21.07%
Consumer Discretionary 17.39%
Information Technology 16.70%
Health Care 14.58%
Materials 8.02%
Energy 7.14%
Telecommunication Services 5.81%
Consumer Staples 4.71%
Utilities 3.47%
Financials 2.37%
Month End Performance (as of 4/29/2016)
  3 Mos YTD 1 Year 3 Year 5 Year 10 Year Since
Fund Performance *
Net Asset Value (NAV) 3.72% -0.55% -1.27% N/A N/A N/A 2.43%
After Tax Held 3.34% -1.04% -2.73% N/A N/A N/A 0.92%
After Tax Sold 2.10% -0.32% -0.72% N/A N/A N/A 1.17%
Market Price 2.92% -1.22% -2.08% N/A N/A N/A 2.06%
Index Performance
CBOE S&P 500 95-110 Collar IndexSM 3.03% -1.14% -4.87% N/A N/A N/A 2.05%
S&P 500 Index 7.05% 1.74% 1.21% N/A N/A N/A 7.67%
Quarter End Performance (as of 3/31/2016)
  3 Mos YTD 1 Year 3 Year 5 Year 10 Year Since
Fund Performance *
Net Asset Value (NAV) 0.50% 0.50% -0.08% N/A N/A N/A 3.00%
After Tax Held 0.13% 0.13% -1.56% N/A N/A N/A 1.48%
After Tax Sold 0.28% 0.28% -0.05% N/A N/A N/A 1.60%
Market Price 0.71% 0.71% -0.12% N/A N/A N/A 3.03%
Index Performance
CBOE S&P 500 95-110 Collar IndexSM -1.10% -1.10% -4.79% N/A N/A N/A 2.15%
S&P 500 Index 1.35% 1.35% 1.78% N/A N/A N/A 7.77%

*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.

After Tax Held returns represent return after taxes on distributions. Assumes shares have not been sold. After Tax Sold returns represent the return after taxes on distributions and the sale of fund shares. Returns do not represent the returns you would receive if you traded shares at other times. Market Price returns are based on the midpoint of the bid/ask spread. Returns are average annualized total returns, except those for periods of less than one year, which are cumulative.

After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on the investor’s tax situation and may differ from those shown. The after-tax returns shown are not relevant to investors who hold their fund shares through tax-deferred arrangements such as 401(k) plans or individual retirement accounts.

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.
The expense ratio for this fund is 0.85%.

CBOE S&P 500 95-110 Collar IndexSM - The Index is a benchmark index designed to provide investors with insights as to how one might protect an investment in S&P 500 stocks against market declines at a reduced cost. This strategy accepts a ceiling or cap on S&P 500 gains in return for a floor on S&P 500 losses by holding the stocks in the S&P 500 Index, buying three-month S&P 500 put options to protect this S&P 500 portfolio from market decreases and selling one-month S&P 500 call options to help finance the cost of the put options.

S&P 500 Index - The Index is an unmanaged index of 500 stocks used to measure large-cap U.S. stock market performance.

1 The NAV represents the fund's net assets (assets less liabilities) divided by the fund's outstanding shares .
2 Fund shares are purchased and sold on an exchange at their share price rather than net asset value (NAV), which may cause the shares to trade at a price greater than NAV (premium) or less than NAV (discount).
3 Most recent distribution paid or declared to today's date. Subject to change in the future. There is no guarantee that the fund will declare dividends.
4 The 30-day SEC yield is calculated by dividing the net investment income per share earned during the most recent 30-day period by the maximum offering price per share on the last day of the period and includes the effects of fee waivers and expense reimbursements, if applicable.
5 12-Month Distribution Rate is calculated by dividing the sum of the fund's trailing 12-month ordinary distributions paid or declared by the NAV price. Distribution rates may vary.
6 All market capitalization numbers are in USD$ Millions.
7 Inception Date is 1/6/2014

You should consider the fund's investment objectives, risks, and charges and expenses carefully before investing. You can download a prospectus or summary prospectus, or contact First Trust Portfolios L.P. at 1-800-621-1675 to request a prospectus or summary prospectus which contains this and other information about the fund. The prospectus or summary prospectus should be read carefully before investing.

ETF Characteristics

The fund lists and principally trades its shares on The Nasdaq Stock Market LLC.

Investors buying or selling fund shares on the secondary market may incur customary brokerage commissions. Market prices may differ to some degree from the net asset value of the shares. Investors who sell fund shares may receive less than the share's net asset value. Shares may be sold throughout the day on the exchange through any brokerage account. However, unlike mutual funds, shares may only be redeemed directly from the fund by authorized participants, in very large creation/redemption units.

Risk Considerations

The fund's shares will change in value, and you could lose money by investing in the fund. One of the principal risks of investing in the fund is market risk. Market risk is the risk that a particular security owned by the fund, fund shares or securities in general may fall in value. The fund is subject to management risk because it is an actively managed portfolio. In managing the fund's investment portfolio, the advisor will apply investment techniques and risk analyses that may not have the desired result. There can be no assurance that the fund's investment objectives will be achieved.

The fund may invest in small capitalization and mid capitalization companies. Such companies may experience greater price volatility than larger, more established companies.

An investment in a fund containing securities of non-U.S. issuers is subject to additional risks, including currency fluctuations, political risks, withholding, the lack of adequate financial information, and exchange control restrictions impacting non-U.S. issuers. The fund may invest in depositary receipts which may be less liquid than the underlying shares in their primary trading market.

The use of options and other derivatives can lead to losses because of adverse movements in the price or value of the underlying asset, index or rate, which may be magnified by certain features of the derivatives. These risks are heightened when the fund's portfolio managers use derivatives to enhance the fund's returns or as a substitute for a position or security, rather than solely to hedge (or offset) the risk of a position or security held by the fund.

The option positions employed may present additional risk. When selling a call option, the fund will receive a premium; however, this premium may not be enough to offset a loss incurred by the fund if the index level at the expiration of the call option is above the strike price by an amount equal to or greater than the premium. The value of an option may be adversely affected if the market for the option becomes less liquid or smaller, and will be affected by changes in the value and dividend rates of the stock or the index subject to the option, an increase in interest rates, a change in the actual and perceived volatility of the stock market and the common stock or the index and the remaining time to expiration. Additionally, the value of an option does not increase or decrease at the same rate as the underlying stock(s) or the index.

The fund may effect a portion of creations and redemptions for cash, rather than in-kind securities. As a result, the fund may be less tax-efficient.

The fund currently has fewer assets than larger funds, and like other relatively new funds, large inflows and outflows may impact the fund's market exposure for limited periods of time.

The fund is classified as "non-diversified" and may invest a relatively high percentage of its assets in a limited number of issuers. As a result, the fund may be more susceptible to a single adverse economic or regulatory occurrence affecting one or more of these issuers, experience increased volatility and be highly concentrated in certain issuers.

First Trust Advisors L.P. is the adviser to the fund. First Trust Advisors L.P. is an affiliate of First Trust Portfolios L.P., the fund's distributor.

Not FDIC Insured • Not Bank Guaranteed • May Lose Value
First Trust Portfolios L.P.  Member SIPC and FINRA.
First Trust Advisors L.P.
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