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First Trust Technology AlphaDEX® Fund (FXL)
Investment Objective/Strategy - The First Trust Technology AlphaDEX® 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 fees and expenses, of an equity index called the StrataQuant® Technology Index.
There can be no assurance that the Fund's investment objectives will be achieved.
  • The StrataQuant® Technology Index is an "enhanced" index developed, maintained and sponsored by the NYSE Euronext or its affiliates ("NYSE Euronext") which employs the AlphaDEX® stock selection methodology to select stocks from the Russell 1000® Index.
  • The NYSE Euronext constructs the StrataQuant® Technology Index by ranking the stocks which are members of the Russell 1000® Index on growth factors including three, six and 12-month price appreciation, sales to price and one year sales growth, and, separately, on value factors including book value to price, cash flow to price and return on assets.
  • Stocks which Russell has classified solely as growth or value, receive their score using the above growth or value factors respectively.
  • Stocks which Russell allocates between both growth and value receive their best score between the growth and value factors.
  • The NYSE Euronext then ranks those stocks contained in the the technology sector (the members of the Russell 1000® Technology Index) according to their score. The bottom 25% is eliminated and the top 75% is selected for the StrataQuant® Technology Index.
  • The selected stocks are divided into quintiles based on their rankings and the top ranked quintiles receive a higher weight within the index. The stocks are equally-weighted within each quintile.
  • The index is reconstituted and rebalanced quarterly.
Fund Overview
TickerFXL
Fund TypeTechnology
Investment AdvisorFirst Trust Advisors L.P.
Investor Servicing AgentBank of New York
CUSIP33734X176
Intraday NAVFXLIV
Fiscal Year-End07/31
ExchangeNYSE Arca
Inception5/8/2007
Inception Price$20.00
Inception NAV$20.00
Gross Expense Ratio
(1/31/2013)		0.73%
Net Expense Ratio0.70%
Rebalance FrequencyQuarterly
Pursuant to contract, First Trust has agreed to waive fees and/or pay fund expenses to prevent the net expense ratio of the fund from exceeding 0.70% per year, at least until November 30, 2014.
Current Fund Data (as of 5/17/2013)
Closing NAV1$25.14
Closing Share Price2$25.16
Bid/Ask Midpoint$25.16
Bid/Ask Premium0.08%
Total Net Assets$255,300,197
Outstanding Shares10,155,000
Daily Volume73,340
Average 30-Day Daily Volume75,402
Closing Share Price 52-Week High/Low$25.16 / $19.67
Closing NAV 52-Week High/Low$25.14 / $19.68
Number of Holdings89
Fund Characteristics (as of 4/30/2013)3
Median Market Cap.$6,487
Maximum Market Cap.$288,467
Minimum Market Cap.$1,750
Price/Earnings16.20
Price/Book2.03
Price/Cash Flow9.90
Price/Sales0.73
Top 10 Holdings (as of 5/16/2013)
Holding Percent
NVIDIA Corporation 2.18%
Western Digital Corporation 2.17%
Corning Incorporated 2.15%
Yahoo! Inc. 2.09%
Intel Corporation 2.07%
SAIC, Inc. 2.06%
Vishay Intertechnology, Inc. 2.03%
Teradyne, Inc. 2.02%
Jabil Circuit, Inc. 2.01%
Tech Data Corporation 1.99%
Bid/Ask Midpoint and NAV History (Since Inception)
Past performance is not indicative of future results.
Volume (Since Inception)
Bid/Ask Midpoint vs. NAV (as of 3/31/2013)
Number of Days Bid/Ask Midpoint Above NAV
Quarter Ended 0-49
Basis Points		 50-99
Basis Points		 100-199
Basis Points		 >=200
Basis Points
3/31/2013 40 0 0 0
12/31/2012 10 0 0 0
9/30/2012 32 0 0 0
6/30/2012 42 0 0 0
Number of Days Bid/Ask Midpoint Below NAV
Quarter Ended 0-49
Basis Points		 50-99
Basis Points		 100-199
Basis Points		 >=200
Basis Points
3/31/2013 20 0 0 0
12/31/2012 52 0 0 0
9/30/2012 31 0 0 0
6/30/2012 21 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.

Industry Breakdown (as of 5/17/2013)
Communications Equipment 8.74%
Computers & Peripherals 8.29%
Electronic Equipment, Instruments & Components 18.41%
Internet & Catalog Retail 1.62%
Internet Software & Services 10.32%
IT Services 9.23%
Other 0.05%
Semiconductors & Semiconductor Equipment 22.36%
Software 19.36%
Wireless Telecommunication Services 1.62%
Month End Performance (as of 4/30/2013)
  3 Mos YTD 1 Year 3 Year 5 Year 10 Year Since
Fund
Inception4
Fund Performance *
NAV 4.76% 10.30% 4.53% 7.84% 5.40% N/A 3.15%
After Tax Held 4.74% 10.28% 4.39% 7.79% 5.37% N/A 3.12%
After Tax Sold 2.69% 5.83% 2.59% 6.06% 4.20% N/A 2.43%
Market Price 4.76% 10.35% 4.67% 7.84% 5.41% N/A 3.15%
Index Performance **
StrataQuant® Technology Index 4.95% 10.60% 5.36% 8.72% 6.35% N/A 4.05%
S&P 500 Information Technology Index 4.13% 5.54% 1.68% 9.65% 6.76% N/A 5.35%
Russell 1000® Technology Index 3.42% 4.52% -1.28% 8.33% N/A N/A N/A
Russell 1000® Index 7.16% 12.97% 17.17% 12.91% 5.49% N/A 3.43%
Quarter End Performance (as of 3/28/2013)
  3 Mos YTD 1 Year 3 Year 5 Year 10 Year Since
Fund
Inception4
Fund Performance *
NAV 10.16% 10.16% 1.62% 8.91% 6.60% N/A 3.17%
After Tax Held 10.15% 10.15% 1.48% 8.85% 6.57% N/A 3.14%
After Tax Sold 5.75% 5.75% 0.94% 6.90% 5.16% N/A 2.45%
Market Price 10.16% 10.16% 1.62% 8.87% 6.62% N/A 3.17%
Index Performance **
StrataQuant® Technology Index 10.33% 10.33% 2.37% 9.78% 7.56% N/A 4.06%
S&P 500 Information Technology Index 4.59% 4.59% -1.12% 9.97% 8.00% N/A 5.26%
Russell 1000® Technology Index 3.85% 3.85% -4.40% 8.82% N/A N/A N/A
Russell 1000® Index 10.96% 10.96% 14.43% 12.93% 6.15% N/A 3.17%
3-Year Statistics (as of 4/30/2013)
  Standard Deviation Alpha Beta Sharpe Ratio Correlation
First Trust Technology AlphaDEX® Fund 21.36% -1.72 1.07 0.43 0.89
S&P 500 Information Technology Index 17.79% --- --- 0.57 ---
Standard Deviation is a measure of price variability (risk). Alpha is an indication of how much an investment outperforms or underperforms on a risk-adjusted basis relative to its benchmark.Beta is a measure of price variability relative to the market. Sharpe Ratio is a measure of excess reward per unit of volatility. Correlation is a measure of the similarity of performance.

*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 ftportfolios.com.

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. The fund's performance reflects fee waivers and expense reimbursements, absent which performance would have been lower.

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.

**Past performance is not a guarantee of future results. Performance information for the StrataQuant® Technology Index is for illustrative purposes only and does not represent actual fund performance. No representation is being made that any investment will achieve performance similar to that shown. The Index does 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. All index returns assume that dividends are reinvested when they are received.

The gross expense ratio for this fund is 0.73%. Pursuant to contract, First Trust has agreed to waive fees and/or pay fund expenses to prevent the net expense ratio of the fund from exceeding 0.70% per year, at least until November 30, 2014.

The Russell 1000® Index is an unmanaged index used to measure the large-cap U.S. equity universe.

The Russell 1000® Technology Index is an unmanaged index which includes the stocks in the technology sector of the Russell 1000® Index.

The S&P 500 Information Technology Index is an unmanaged index which includes the stocks in the information technology sector of the S&P 500 Index.

Footnotes
1 The NAV represents the fund's net assets (assets less liabilities) divided by the fund's shares outstanding.
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 All market capitalization numbers are in USD$ Millions.
4 Inception Date is 5/8/2007

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 NYSE Arca, Inc.

The fund's return may not match the return of the StrataQuant® Technology Index.  The fund may not be fully invested at times. Securities held by the fund will generally not be bought or sold in response to market fluctuations.

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 stock owned by the fund, fund shares or stocks in general may fall in value.

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

The fund is concentrated in stocks of companies in the technology sector which involves additional risks, including limited diversification. The companies engaged in the technology sector are subject to fierce competition, high research and development costs, and their products and services may be subject to rapid obsolescence.

The fund is classified as "non-diversified." A non-diversified fund generally may invest a larger percentage of its assets in the securities of a smaller number of issuers. As a result, the fund may be more susceptible to the risks associated with these particular companies, or to a single economic, political or regulatory occurrence affecting these companies.

The StrataQuant® Technology Index is a trademark of NYSE Euronext and has been licensed for use by First Trust Portfolios L.P. The fund is not sponsored, endorsed, sold or promoted by NYSE Euronext and NYSE Euronext makes no representation or warranty regarding the advisability of investing in the fund or as to the result to be obtained by any person from use of the index in connection with the trading of the fund.

Russell Investment Group is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell® is a trademark of the Russell Investment Group.

"AlphaDEX®" is a registered trademark of First Trust Portfolios L.P.

First Trust Portfolios L.P. has obtained a patent for the AlphaDEX® stock selection methodology from the United States Patent and Trademark Office.

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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