First Trust Tactical High Yield ETF (HYLS)

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	Fact Sheet
	Summary Prospectus
	Monthly Performance Report
	Investor Guide
	Quarterly Fund Commentary

Fund Summary

Investment Objective/Strategy - The First Trust Tactical High Yield ETF is an actively managed exchange-traded fund. The fund's primary investment objective is to provide current income. The fund's secondary investment objective is to provide capital appreciation. Under normal market conditions, the fund invests at least 80% of its net assets (plus the amount of any borrowing for investment purposes) in high yield debt securities that are rated below investment grade at the time of purchase or unrated securities deemed by the fund's advisor to be of comparable quality.

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

Fund Overview

Ticker	HYLS
Fund Type	High Yield Bond
Investment Advisor	First Trust Advisors L.P.
Investor Servicing Agent	Bank of New York Mellon Corp
CUSIP	33738D408
ISIN	US33738D4088
Intraday NAV	HYLSIV
Fiscal Year-End	10/31
Exchange	Nasdaq
Inception	2/25/2013
Inception Price	$50.00
Inception NAV	$50.00

Fees And Expenses

Management Fees	0.95%
Borrow Costs	0.06%
Total Annual Expenses	1.01%

Current Fund Data (as of 10/14/2021)

Closing NAV¹	$48.06
Closing Market Price²	$48.16
Bid/Ask Midpoint	$48.17
Bid/Ask Premium	0.23%
30-Day Median Bid/Ask Spread³	0.04%
Total Net Assets	$2,318,944,430
Outstanding Shares	48,250,002
Daily Volume	192,417
Average 30-Day Daily Volume	221,781
Closing Market Price 52-Week High/Low	$49.23 / $46.84
Closing NAV 52-Week High/Low	$49.07 / $46.93
Number of Holdings (excluding cash)	457

Top Holdings (as of 10/14/2021)*

Holding	Percent
BAUSCH HEALTH COS INC 6.125%, due 04/15/2025	2.17%
ATHENAHEALTH INC ATHN TL B 1L USD	1.90%
SOLARWINDS HOLDINGS INC SWI TL 1L USD	1.75%
GOLDEN NUGGET NUGGET TL B 1L USD	1.51%
ALLIANT HOLD / CO-ISSUER 6.75%, due 10/15/2027	1.47%
CHANGE HEALTH / FIN INC 5.75%, due 03/01/2025	1.38%
ASURION LLC Variable rate, due 2/5/2028	1.37%
CSC HOLDINGS LLC 5.75%, due 01/15/2030	1.34%
MPH ACQUISITION HOLDINGS 5.75%, due 11/01/2028	1.29%
GRAY TELEVISION INC 5.875%, due 07/15/2026	1.26%

* Excluding cash. Holdings are subject to change.

NAV History (Since Inception)

Past performance is not indicative of future results.

Distribution Information

Dividend per Share Amt (as of 10/17/2021)⁴	$0.2000
30-Day SEC Yield (as of 9/30/2021)⁵	3.62%
12-Month Distribution Rate (as of 9/30/2021)⁶	5.47%
Distribution Rate (as of 9/30/2021)⁷	4.98%

Fund Characteristics (as of 10/13/2021)

Net Weighted Average Effective Duration (Includes Short Positions)⁸	2.36 Years
Weighted Average Effective Duration (Long Positions)⁸	2.38 Years
Weighted Average Maturity (Long Positions)	5.34 Years
Weighted Average Price	$100.64
Weighted Average Coupon	5.47%
Weighted Average Yield-To-Maturity⁹	5.16%
Long Positions	111.92%
Short Position - U.S. Treasury Securities	-12.95%
Option-Adjusted Spread¹⁰	432 bps
3-Month LIBOR¹¹	0.12%

Portfolio information statistics exclude cash and other assets and liabilities. Weighted average maturity excludes defaulted assets.

Asset Type Breakdown (as of 9/30/2021)

	Asset	Percent
	Bond	64.75%
	Loan	35.11%
	Equity	0.14%

Bid/Ask Premium/Discount (as of 10/14/2021)

	2020	Q1 2021	Q2 2021	Q3 2021
Days Traded at Premium	191	55	57	41
Days Traded at Discount	62	6	6	23

Credit Quality (as of 9/30/2021)

BBB	0.97%
BBB-	0.48%
BB+	2.68%
BB	7.01%
BB-	5.30%
B+	17.59%
B	24.76%
B-	17.53%
CCC+	16.33%
CCC	3.18%
CCC-	1.09%
CC	0.37%
D	2.35%
NR	0.36%

The ratings are by Standard & Poor's except where otherwise indicated. A credit rating is an assessment provided by a nationally recognized statistical rating organization (NRSRO) of the creditworthiness of an issuer with respect to debt obligations except for those debt obligations that are only privately rated. Ratings are measured on a scale that generally ranges from AAA (highest) to D (lowest). Investment grade is defined as those issuers that have a long-term credit rating of BBB- or higher. "NR" indicates no rating. The credit ratings shown relate to the creditworthiness of the issuers of the underlying securities in the Fund, and not to the Fund or its shares. Credit ratings are subject to change.

Top Industry Exposure (as of 9/30/2021)

Health Care Providers & Services	15.29%
Software	14.14%
Media	10.86%
Pharmaceuticals	10.66%
Hotels, Restaurants & Leisure	8.55%
Insurance	6.12%
Diversified Telecommunication Services	4.39%
Health Care Technology	3.76%
Specialty Retail	2.46%
Commercial Services & Supplies	1.96%

Hypothetical Growth of $10,000 Since Inception (as of 10/14/2021) *

Month End Performance (as of 9/30/2021)

	3 Month	YTD	1 Year	3 Year	5 Year	10 Year	Since Fund Inception¹²
Fund Performance *
Net Asset Value (NAV)	0.57%	2.99%	8.01%	5.81%	5.35%	N/A	5.23%
After Tax Held	0.03%	1.31%	5.64%	3.54%	3.04%	N/A	2.80%
After Tax Sold	0.34%	1.76%	4.71%	3.46%	3.07%	N/A	2.89%
Market Price	0.59%	2.82%	7.68%	5.78%	5.30%	N/A	5.22%

Index Performance **
ICE BofA US High Yield Constrained Index	0.95%	4.68%	11.46%	6.61%	6.34%	N/A	5.77%

Quarter End Performance (as of 9/30/2021)

	3 Month	YTD	1 Year	3 Year	5 Year	10 Year	Since Fund Inception¹²
Fund Performance *
Net Asset Value (NAV)	0.57%	2.99%	8.01%	5.81%	5.35%	N/A	5.23%
After Tax Held	0.03%	1.31%	5.64%	3.54%	3.04%	N/A	2.80%
After Tax Sold	0.34%	1.76%	4.71%	3.46%	3.07%	N/A	2.89%
Market Price	0.59%	2.82%	7.68%	5.78%	5.30%	N/A	5.22%

Index Performance **
ICE BofA US High Yield Constrained Index	0.95%	4.68%	11.46%	6.61%	6.34%	N/A	5.77%

3-Year Statistics (as of 9/30/2021)

	Standard Deviation	Alpha	Beta	Sharpe Ratio	Correlation
HYLS	7.92%	0.11	0.82	0.60	0.98
ICE BofA US High Yield Constrained Index	9.45%	---	1.00	0.59	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 determined by using the midpoint of the national best bid offer price ("NBBO") 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.

**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.

ICE BofA US High Yield Constrained Index - The Index tracks the performance of U.S. dollar denominated below investment grade corporate debt publicly issued in the U.S. domestic market but caps issuer exposure at 2%.

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 market 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 median bid-ask spread is calculated by identifying the national best bid and national best offer ("NBBO") for the fund as of the end of each 10 second interval during each trading day of the last 30 calendar days and dividing the difference between each such bid and offer by the midpoint of the NBBO. The median of those values is identified and that value is expressed as a percentage rounded to the nearest hundredth.
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	Distribution Rate is calculated by dividing the fund's most recent ordinary distribution paid or declared, on an annualized basis, by the NAV price. Distribution rates may vary.
⁸	A measure of a bond's sensitivity to interest rate changes that reflects the change in a bond's price given a change in yield. It accounts for the likelihood of changes in the timing of cash flows in response to interest rate movements.
⁹	The annualized return that would be earned on a debt security if held to maturity, weighted by the value of each debt security in the fund's portfolio. The calculation does not include the effect of fund fees and expenses.
¹⁰	A measurement of the spread of a fixed-income security rate and the risk-free rate of return, which is adjusted to take into account an embedded option.
¹¹	A short-term funding rate estimated by banks in London that they would be charged if borrowing from other banks assuming a three month maturity.
¹²	Inception Date is 2/25/2013

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.

Risk Considerations

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 a fund by authorized participants in very large creation/redemption units. If a 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 a fund's net asset value and possibly face delisting.

A fund's shares will change in value, and you could lose money by investing in a fund. One of the principal risks of investing in a fund is market risk. Market risk is the risk that a particular stock owned by a fund, fund shares or stocks in general may fall in value. There can be no assurance that a fund's investment objective will be achieved. The outbreak of the respiratory disease designated as COVID-19 in December 2019 has caused significant volatility and declines in global financial markets, which have caused losses for investors. While the development of vaccines has slowed the spread of the virus and allowed for the resumption of "reasonably" normal business activity in the United States, many countries continue to impose lockdown measures in an attempt to slow the spread. Additionally, there is no guarantee that vaccines will be effective against emerging variants of the disease.

In managing a fund's investment portfolio, the portfolio managers will apply investment techniques and risk analyses that may not have the desired result.

A fund that effects all or a portion of its creations and redemptions for cash rather than in-kind may be less tax-efficient.

A fund may be subject to the risk that a counterparty will not fulfill its obligations which may result in significant financial loss to a fund.

Covenant-lite loans contain fewer maintenance covenants than traditional loans and may not include terms that allow the lender to monitor the financial performance of the borrower and declare a default if certain criteria are breached. This may hinder a fund's ability to mitigate problems and increase a fund's exposure to losses on such investments.

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

Certain securities are subject to call, credit, inflation, income, interest rate, extension and prepayment risks. These risks could result in a decline in a security's value and/or income, increased volatility as interest rates rise or fall and have an adverse impact on a fund's performance.

Defaulted securities pose a greater risk that principal will not be repaid than non-defaulted securities which may result in losses for a fund.

The market value of floating rate securities may fall in a declining interest rate environment and may also fall in a rising interest rate environment if there is a lag between the rise in interest rates and the reset. Income earned by a fund on floating rate securities may decline due to lower coupon payments on floating-rate securities.

High yield securities, or "junk" bonds, are less liquid and are subject to greater market fluctuations and risk of loss than securities with higher ratings, and therefore, are considered to be highly speculative.

A fund may be a constituent of one or more indices which could greatly affect a fund's trading activity, size and volatility.

Leverage may result in losses that exceed the amount originally invested and may accelerate the rates of losses.

To the extent a fund invests in floating or variable rate obligations that use the London Interbank Offered Rate ("LIBOR") as a reference interest rate, it is subject to LIBOR Risk. The United Kingdom's Financial Conduct Authority, which regulates LIBOR, will cease making LIBOR available as a reference rate over a phase-out period that will begin immediately after December 31, 2021. The unavailability or replacement of LIBOR may affect the value, liquidity or return on certain fund investments and may result in costs incurred in connection with closing out positions and entering into new trades. Any potential effects of the transition away from LIBOR on a fund or on certain instruments in which a fund invests can be difficult to ascertain, and they may vary depending on a variety of factors, and they could result in losses to a fund.

Certain fund investments may be subject to restrictions on resale, trade over-the-counter or in limited volume, or lack an active trading market. Illiquid securities may trade at a discount and may be subject to wide fluctuations in market value.

Securities of non-U.S. issuers are 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.

A fund and a fund's advisor may seek to reduce various operational risks through controls and procedures, but it is not possible to completely protect against such risks.

Companies that issue loans tend to be highly leveraged and thus are more susceptible to the risks of interest deferral, default and/or bankruptcy. Loans are usually rated below investment grade but may also be unrated. As a result, the risks associated with these loans are similar to the risks of high yield fixed income instruments. The senior loan market has seen a significant increase in loans with weaker lender protections which may impact recovery values and/or trading levels in the future.

Short selling creates special risks which could result in increased gains or losses and volatility of returns. Because losses on short sales arise from increases in the value of the security sold short, such losses are theoretically unlimited.

A fund with significant exposure to a single asset class, country, region, industry, or sector may be more affected by an adverse economic or political development than a broadly diversified fund.

Securities of small- and mid-capitalization companies may experience greater price volatility and be less liquid than larger, more established companies.

Trading on the exchange may be halted due to market conditions or other reasons. There can be no assurance that the requirements to maintain the listing of a fund on the exchange will continue to be met or be unchanged.

Portfolio holdings that are valued using techniques other than market quotations may be subject to greater fluctuation in their valuations from one day to the next than if market quotations were used.

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