First Trust Dorsey Wright People's Portfolio ETF (DWPP)

Investment Objective/Strategy - The First Trust Dorsey Wright People's Portfolio ETF is an exchange-traded fund which seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of an index called the Nasdaq Dorsey Wright People's Portfolio Index.

There can be no assurance that the Fund's investment objectives will be achieved.

The Nasdaq Dorsey Wright People’s Portfolio Index is designed to provide exposure to either the U.S. equity market or T-bills, based upon daily relative strength readings resulting from a Nasdaq Dorsey Wright wholly-quantitative process.
The index always holds exactly one of the three possible positions:
- All the component securities in the Nasdaq US 500 Large Cap Index (the Cap Weight Index),
- All the component securities in the Nasdaq US 500 Large Cap Equal Weight Index (the Equal Weight Index) or
- All the component securities in the Nasdaq US T-bill Index (the T-Bill Index).
To construct the index, the closing price of the cap-weighted Nasdaq US 500 Large Cap Index is compared to the closing price of the Nasdaq US 500 Equal Weight Index, using point and figure charts.^
The equity index which exhibits the best point and figure relative strength is then compared to a cash-like proxy based on the 13-week T-bill, and the position with stronger relative strength is then included in the index.
The point and figure relative strength analysis between these indexes and T-bills is conducted daily. This may result in a high portfolio turnover rate.
The equity indexes and T-bill index rebalance on a semi-annual and weekly basis, respectively. The fund rebalances when the index in which it is currently invested rebalances.

Fund Overview

Ticker	DWPP
Fund Type	Tactical Equity
Investment Advisor	First Trust Advisors L.P.
Investor Servicing Agent	Bank of New York Mellon
CUSIP	33733E880
ISIN	US33733E8802
Intraday NAV	DWPPIV
Fiscal Year-End	12/31
Exchange	Nasdaq
Inception	8/29/2012
Inception Price	$19.89
Inception NAV	$19.89
Rebalance Frequency	Periodically
Expense Ratio	0.60%

Current Fund Data (as of 6/21/2018)

Closing NAV¹	$29.25
Closing Share Price²	$29.20
Bid/Ask Midpoint	$29.27
Bid/Ask Premium	0.04%
Total Net Assets	$33,639,971
Outstanding Shares	1,150,002
Daily Volume	4,470
Average 30-Day Daily Volume	2,029
Closing Share Price 52-Week High/Low	$30.56 / $25.73
Closing NAV 52-Week High/Low	$30.52 / $25.64
Number of Holdings	500

Fund Characteristics (as of 5/31/2018)⁸

Maximum Market Cap.	$918,492
Median Market Cap.	$21,732
Minimum Market Cap.	$6,999
Price/Earnings	19.60
Price/Book	2.81
Price/Cash Flow	13.83
Price/Sales	1.73

Top Holdings (as of 6/21/2018)

Holding	Percent
Darden Restaurants, Inc.	0.23%
Apache Corporation	0.22%
Cimarex Energy Co.	0.22%
Diamondback Energy, Inc.	0.22%
The Gap, Inc.	0.22%
The Kroger Co.	0.22%
Twenty-First Century Fox, Inc. (Class B)	0.22%
Alexion Pharmaceuticals, Inc.	0.21%
Alliance Data Systems Corporation	0.21%
Alphabet Inc. (Class A)	0.21%

Holdings are subject to change.

NAV History (Since Inception)

Past performance is not indicative of future results.

Overall Morningstar Rating^TM (as of 5/31/2018)³

Among 188 funds in the Long-Short Equity category. This fund was rated 3 stars/188 funds (3 years), 4 stars/99 funds (5 years).

Distribution Information

Dividend per Share Amt (as of 6/22/2018)⁴	$0.0883
30-Day SEC Yield (as of 5/31/2018)⁵	1.21%
12-Month Distribution Rate (as of 5/31/2018)⁶	0.95%
Index Yield (as of 5/31/2018)⁷	1.91%

Bid/Ask Midpoint vs. NAV (as of 3/31/2018)

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
3/31/2018	44	0	0	0
12/31/2017	39	0	0	0
9/30/2017	32	0	0	1
6/30/2017	55	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
3/31/2018	17	0	0	0
12/31/2017	24	0	0	0
9/30/2017	30	0	0	0
6/30/2017	8	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 6/21/2018)

Information Technology	16.95%
Financials	14.39%
Consumer Discretionary	13.63%
Industrials	13.19%
Health Care	12.76%
Consumer Staples	6.85%
Energy	6.34%
Real Estate	5.63%
Materials	4.90%
Utilities	4.55%
Telecommunication Services	0.81%

Month End Performance (as of 5/31/2018)

	3 Mos	YTD	1 Year	3 Year	5 Year	10 Year	Since Fund Inception⁹
Fund Performance *
Net Asset Value (NAV)	0.36%	0.68%	13.06%	5.51%	7.44%	N/A	8.13%
After Tax Held	0.29%	0.60%	12.58%	4.87%	6.77%	N/A	7.49%
After Tax Sold	0.21%	0.40%	7.70%	3.92%	5.49%	N/A	6.10%
Market Price	0.33%	0.57%	13.28%	5.56%	7.46%	N/A	8.14%

Index Performance **
Nasdaq Dorsey Wright Peoples Portfolio Index	0.49%	0.92%	N/A	N/A	N/A	N/A	N/A
CBOE® VIX® Tail Hedge Index	-2.64%	-1.06%	10.93%	5.23%	7.45%	N/A	8.18%
Nasdaq US 500 Large Cap Index	0.15%	2.00%	14.48%	N/A	N/A	N/A	N/A
S&P 500 Index	0.19%	2.02%	14.38%	10.97%	12.98%	N/A	14.36%

Quarter End Performance (as of 3/29/2018)

	3 Mos	YTD	1 Year	3 Year	5 Year	10 Year	Since Fund Inception⁹
Fund Performance *
Net Asset Value (NAV)	-0.62%	-0.62%	14.23%	5.29%	7.85%	N/A	8.14%
After Tax Held	-0.69%	-0.69%	13.74%	4.65%	7.18%	N/A	7.47%
After Tax Sold	-0.37%	-0.37%	8.39%	3.76%	5.82%	N/A	6.09%
Market Price	-0.76%	-0.76%	14.14%	5.27%	7.86%	N/A	8.13%

Index Performance **
Nasdaq Dorsey Wright Peoples Portfolio Index	-0.47%	-0.47%	N/A	N/A	N/A	N/A	N/A
CBOE® VIX® Tail Hedge Index	-1.34%	-1.34%	13.32%	5.42%	8.04%	N/A	8.38%
Nasdaq US 500 Large Cap Index	-0.72%	-0.72%	14.13%	N/A	N/A	N/A	N/A
S&P 500 Index	-0.76%	-0.76%	13.99%	10.78%	13.31%	N/A	14.26%

3-Year Statistics (as of 5/31/2018)

	Standard Deviation	Alpha	Beta	Sharpe Ratio	Correlation
DWPP	9.65%	-2.84	0.78	0.54	0.83
S&P 500 Index	10.30%	---	1.00	1.01	1.00

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.

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 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. 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.

**Performance information for the Nasdaq Dorsey Wright Peoples Portfolio Index is for illustrative purposes only and does not represent actual fund performance.

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.

On August 18, 2017, the fund's underlying index changed from the CBOE® VIX® Tail Hedge Index to the Nasdaq Dorsey Wright People's Portfolio Index. Therefore, the fund's performance and historical returns shown for the periods prior to this date are not necessarily indicative of the performance that the fund, based on its current index, would have generated.

The expense ratio for this fund is 0.60%.

CBOE® VIX® Tail Hedge Index - The Index is designed to cope with extreme downward movements in stock indexes and tracks the market value of a portfolio long the S&P 500 stocks and long one-month 30-delta VIX calls.

Nasdaq US 500 Large Cap Index - The Index is a float modified market capitalization weighted index that contains the top 500 securities from the NASDAQ US Benchmark Index.

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

Footnotes

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	The Morningstar Rating^TM for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.
⁴	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.
⁵	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.
⁶	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.
⁷	Index yield represents the weighted average trailing 12-month dividend of the constituents of the Nasdaq Dorsey Wright Peoples Portfolio Index.
⁸	All market capitalization numbers are in USD$ Millions.
⁹	Inception Date is 8/29/2012

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.

The fund's return may not match the return of the Nasdaq Dorsey Wright Peoples Portfolio Index. 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. If the fund's authorized participants are unable to proceed with creation/redemption orders and no other authorized participant is able to step forward to create or redeem, fund shares may trade at a discount to the fund's net asset value and possibly face delisting.

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. Equity securities prices fluctuate for a variety of reasons, including changes in investors' perceptions of the financial condition of an issuer or the general condition of the relevant stock market. There can be no assurance that the fund's investment objective will be achieved.

The fund may be concentrated in securities issued by companies concentrated in a particular industry which involves additional risks including limited diversification.

As the use of Internet technology has become more prevalent in the course of business, the fund has become more susceptible to potential operational risks through breaches in cyber security.

The index employs a "momentum" style methodology to determine if the portfolio is allocated to T-bills. During periods of positive stock market performance, the returns of the fund may be lower if the fund's net assets are allocated to T-bills. Momentum can turn quickly and cause significant variation from other types of investments.

The fund's strategy may frequently involve buying and selling portfolio securities to rebalance the fund's exposure to equity securities or T-Bills, which may result in the fund paying higher levels of transaction costs and generating greater tax liabilities for shareholders.

The fund is subject to income risk and interest rate risk. Income risk is the risk that the fund's investment in T-bills could decline during periods of falling interest rates. Interest rate risk is the risk that the value of the T-Bills in the fund's portfolio will decline because of rising market interest rates.

The fund may invest in U.S. government obligations. U.S. Treasury obligations are backed by the "full faith and credit" of the U.S. government. Securities issued or guaranteed by federal agencies and U.S. government sponsored instrumentalities may or may not be backed by the full faith and credit of the U.S. government.

If the fund has lower average daily trading volumes, it may rely on a small number of third-party market makers to provide a market for the purchase and sale of shares. Any trading halt or other problem relating to the trading activity of these market makers could result in a dramatic change in the spread between the fund's net asset value and the price at which the fund's shares are trading. Although the shares are listed on the exchange, there can be no assurance that an active trading market for such shares will develop or be maintained. Trading in shares may be halted due to market conditions or other factors. Large inflows and outflows may impact the fund's market exposure for limited periods of time.

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.

The fund is not sponsored, endorsed, sold or promoted by Nasdaq, Inc. or its affiliates (Nasdaq, with its affiliates, are referred to as the "Corporations"). The Corporations have not passed on the legality or suitability of, or the accuracy or adequacy of descriptions and disclosures relating to, the fund. The Corporations make no representation or warranty, express or implied to the owners of the fund or any member of the public regarding the advisability of investing in securities generally or in the fund particularly, or the ability of the index to track general stock performance.

©2018 Morningstar, Inc. All Rights Reserved. The Morningstar Rating^TM information contained herein: (1) is proprietary to Morningstar;(2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

Not FDIC Insured • Not Bank Guaranteed • May Lose Value