*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. Returns are average annualized total returns, except
those for periods of less than one year, which are cumulative.
Fund expenses and return figures do not reflect the deduction of sales charges or other expenses associated with variable
products. If such fees were included, expenses would be higher and the performance would be lower. The Fund's performance reflects fee waivers and expense reimbursements, absent which
performance would have been lower.
**Indexes are unmanaged and an investor cannot invest directly in an index. Any Benchmarks or Indexes shown reflect no deduction for fees, expenses, or taxes.
S&P 500® Index - The Index is an unmanaged index of 500 companies used to measure large-cap U.S. stock market performance.
You should consider the fund's investment objectives, risks, and charges and expenses carefully before investing. You can download a prospectus or contact First Trust Portfolios, L.P. at 1-800-621-1675 to request a prospectus, which contains this and other information about the fund. Read it carefully before you invest.
The Fund's shares will change in value and you could lose money by investing in the Fund. An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other governmental agency. There can be no assurance that the Fund's investment objective will be achieved.
The Fund is subject to market risk. Market risk is the risk that a particular security owned by the Fund or shares of the Fund in general may fall in value. In February 2022, Russia invaded Ukraine which has caused and could continue to cause significant market disruptions and volatility within the markets in Russia, Europe, and the United States. The hostilities and sanctions resulting from those hostilities could have a significant impact on certain fund investments as well as fund performance. The COVID-19 global pandemic and the ensuing policies enacted by governments and central banks have caused and may continue to cause significant volatility and uncertainty in global financial markets. While vaccines have been developed, there is no guarantee that vaccines will be effective against future variants of the disease. Recent and potential future bank failures could result in disruption to the broader banking industry or markets generally and reduce confidence in financial institutions and the economy as a whole, which may also heighten market volatility and reduce liquidity.
The Fund is a passive investment and not actively managed. The Fund invests in securities included in or representative of The Capital Strength™ Index ("Index") regardless of investment merit. The Fund generally will not attempt to take defensive positions in declining markets.
Equity securities fluctuate for a variety of reasons including investors' perceptions of the financial condition of an issuer or the general condition of the relevant stock market.
High portfolio turnover may result in the Fund paying higher levels of transaction costs and may generate greater tax liabilities for shareholders.
A portfolio comprised of low volatility stocks may not produce investment exposure that has lower variability to changes in such stocks' price levels. Low volatility stocks are likely to underperform the broader market during periods of rapidly rising stock prices.
The Fund invests in real estate investment trusts (REITs). Companies involved in the real estate industry are subject to changes in the real estate market, vacancy rates and competition, volatile interest rates and economic recession.
There is no assurance that the index provider, or any agents that act on its behalf, will compile the Index accurately, or that the Index will be determined, maintained, constructed, reconstituted, rebalanced, composed, calculated, or disseminated accurately.
The Fund is subject to non-correlation risk because the Fund's return may not match the return of the Index for a number of reasons. In addition, the Fund incurs certain expenses and costs not applicable to the Index and the Fund's portfolio holdings may not replicate the securities included in the Index.
The Fund currently has fewer assets than larger, more established 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.
To the extent that the Fund has significant exposure to a single asset class, industry or sector, an adverse economic business or political development may affect the value of the Fund's investments more than if the Fund were more broadly diversified.
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.
CUSIP identifiers have been provided by CUSIP Global Services, managed on behalf of the American Bankers Association by FactSet Research Systems Inc. and are not for use or dissemination in a manner that would serve as a substitute for any CUSIP service. The CUSIP Database, ©2023 CUSIP Global Services. "CUSIP" is a registered trademark of the American Bankers Association.