First Trust Dorsey Wright Tactical Core Portfolio

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Share Classes
•	Class I
•	Class II

First Trust Dorsey Wright Tactical Core Portfolio

Product Summary

Investment Objective/Strategy - The First Trust Dorsey Wright Tactical Core Portfolio (the “Fund”) seeks to provide total return.

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

The Fund seeks to achieve its investment objective by investing, under normal market conditions, at least 80% of its net assets (plus any investment borrowings) in exchange-traded funds ("ETFs") and cash and cash equivalents that comprise the Dorsey Wright Tactical Tilt Moderate Core Index (the "Index"). It is expected that a majority of the ETFs in which the Fund invests will be advised by First Trust.

The Index is owned and was developed by Dorsey, Wright & Associates (the "Index Provider"). The Index is constructed pursuant to the Index Provider's proprietary methodology, which takes into account the performance of four distinct assets classes relative to one another. The Index is designed to strategically allocate its investments among (i) domestic equity securities; (ii) international equity securities; (iii) fixed income securities; and (iv) cash and cash equivalents. The Index will gain exposure to the first three asset classes by investing in ETFs that invest in such assets. The Index Provider has retained Nasdaq, Inc. ("Nasdaq"), to calculate and maintain the Index.

The Index will utilize the Dynamic Asset Level Investing ("DALI") asset allocation process developed by the Index Provider in order to allocate assets over the four asset classes. The asset class allocations are determined using a relative strength methodology that is based upon each asset class's market performance and characteristics that offer the greatest potential to outperform the other asset classes at a given time. Relative strength is a momentum technique that relies on unbiased, unemotional and objective data, rather than biased forecasting and subjective research. Relative strength is a way of recording historic performance patterns, and the Index Provider uses relative strength signals as a trend indicator for current momentum trends of each asset class against the others.

The Fund offers its shares only to separate accounts of insurance companies that offer variable annuity and variable life insurance products.

Fund Overview

Fiscal Year-End	12/31
Inception Date	10/30/2015
Inception NAV	$10.00
Gross Expense Ratio (5/1/2019)	1.96%
Net Expense Ratio	1.30%

Expenses are capped contractually at 1.30% per year, at least until May 01, 2020.

Current Fund Data (as of 2/14/2020)

Net Asset Value¹	$13.04
Dividend Frequency	Semi-Annual
NAV 52-Week High/Low	$13.04 / $11.45

Asset Class Allocation (as of 1/31/2020)²

	Asset Class	Percent
	Domestic Equity ETFs	75.24%
	Fixed-Income ETFs	19.60%
	International Equity ETFs	4.76%
	Cash & Cash Equivalents	0.40%

NAV History (Since Inception)

Past performance is not indicative of future results.

Month End Performance (as of 1/31/2020)

	3 Month	YTD	1 Year	3 Year	5 Year	10 Year	Since Fund Inception³
Fund Performance *
Fund Performance	5.17%	0.73%	11.41%	8.67%	N/A	N/A	6.76%

Index Performance **
Bloomberg Barclays U.S. Aggregate Bond Index	1.80%	1.92%	9.64%	4.62%	N/A	N/A	3.78%
S&P 500 Index	6.72%	-0.04%	21.68%	14.54%	N/A	N/A	13.16%
Blended Benchmark	4.75%	0.75%	16.97%	10.69%	N/A	N/A	9.51%

Quarter End Performance (as of 12/31/2019)

	3 Month	YTD	1 Year	3 Year	5 Year	10 Year	Since Fund Inception³
Fund Performance *
Fund Performance	5.39%	20.99%	20.99%	9.32%	N/A	N/A	6.71%

Index Performance **
Bloomberg Barclays U.S. Aggregate Bond Index	0.18%	8.72%	8.72%	4.03%	N/A	N/A	3.38%
S&P 500 Index	9.07%	31.49%	31.49%	15.27%	N/A	N/A	13.46%
Blended Benchmark	5.46%	22.18%	22.18%	10.87%	N/A	N/A	9.52%

*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.

Bloomberg Barclays U.S. Aggregate Bond Index - The Index covers the investment-grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, MBS, ABS, and CMBS.

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

Blended Benchmark - The Benchmark return is split between the Bloomberg Barclays U.S. Aggregate Bond Index (40%) and the S&P 500^® Index (60%).

Footnotes

¹	The NAV represents the fund's net assets (assets less liabilities) divided by the fund's outstanding shares .
²	Holdings are subject to change.
³	Inception Date is 10/30/2015

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.

Risk Considerations

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.

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.

The Fund may invest in securities issued by companies concentrated in a particular industry, sector, country, state or region which involves additional risks including limited diversification.

The Fund invests in ETFs which invest in small-capitalization and mid-capitalization companies. Such companies may experience greater price volatility than larger, more established companies.

Certain securities held by certain ETFs in the Fund are subject to call risk, credit risk, income risk, inflation risk, interest rate risk, extension risk, and prepayment risk. Call risk is the risk that, during periods of falling interest rates, performance could be adversely impacted if an issuer calls higher-yielding debt instruments earlier than their scheduled maturity. Credit risk is the risk that an issuer may default on its obligation to make principal and/or interest payments when due. Credit risk is heightened for high-yield securities and bank loans. Income risk is the risk that income from the Fund’s ﬁxed income investments could decline during periods of falling interest rates. Inflation risk is the risk that the value of assets of income from investments will be less in the future as inflation decreases the value of money. Interest rate risk is the risk that the value of debt securities will decline because of rising interest rates. Extension risk is the risk that when interest rates rise, certain obligations will be paid oﬀ by the issuer (or obligor) more slowly than anticipated, causing the value of these securities to fall. Prepayment risk is the risk that, during periods of falling interest rates, an issuer may exercise its right to pay principal on an obligation earlier than expected. This may result in a decline in the Fund’s income. Each of these risks may have an adverse eﬀect on the Fund’s total return.

There is no guarantee that the issuers of the Fund's securities will declare dividends in the future or that, if declared, they will either remain at current levels or increase over time.

High-yield securities, or "junk" bonds, are subject to greater market fluctuations and risk of loss than securities with higher ratings, and therefore, may be highly speculative. These securities are issued by companies that may have limited operating history, narrowly focused operations, and/or other impediments to the timely payment of periodic interest and principal at maturity. Lower quality debt tends to be less liquid than higher quality debt.

The Fund contains ETFs which invest in securities of non-U.S. issuers and 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. These risks may be heightened for securities of companies located in, or with significant operations in, emerging market countries.

Floating rate loans are subject to heightened credit risk because companies that issue such loans tend to be highly leveraged and thus are more susceptible to the risks of interest deferral, default and/or bankruptcy. Any specific collateral used to secure a loan may decline in value or become illiquid which would adversely affect the loan’s value. Floating rate loans may not be considered “securities” under the 1940 Act and therefore prevent the Fund from relying on the anti-fraud provisions of the Act.

Changes in currency exchange rates and the relative value of non-US currencies will affect the value of the Fund's investments and the value of the Fund's shares.

Depositary receipts may be less liquid than the underlying shares in their primary trading market.

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 market values of convertible securities tend to decline as interest rates increase and, conversely, to increase as interest rates decline. A convertible security’s market value also tends to reflect the market price of the common stock of the issuing company.

The risks of owning an exchange-traded fund (ETF) generally reflect the risks of owning the underlying securities, although lack of liquidity in an ETF could result in it being more volatile and ETFs have management fees that increase their costs.

The Fund invests in securities of other ETFs, which involves additional expenses that would not be present in a direct investment in such ETFs. Furthermore, the Fund’s investment performance and risks are directly related to the investment performance and risks of the underlying ETFs in which the Fund invests.

There is no assurance that the Index Provider will compile the Index accurately, or that the Index will be determined, maintained, constructed, reconstituted, rebalanced, composed, calculated or disseminated accurately.

In 2012, regulators in the United States and the United Kingdom alleged that certain banks engaged in manipulative acts in connection with their submissions to the British Bankers Association. Manipulation of the LIBOR rate-setting process would raise the risk of adverse impacts to the Fund if the Fund received a payment based upon LIBOR and such manipulation of LIBOR resulted in lower resets than would have occurred had there been no manipulation. There remains uncertainty regarding the future utilization of LIBOR and the nature of any replacement rate. As such, the potential effect of a transition away from LIBOR on the Fund cannot yet be determined.

Mortgage-related securities, including mortgage-backed securities, are more susceptible to adverse economic, political or regulatory events that affect the value of real estate. Mortgage-related securities are subject to the risk that the rate of mortgage prepayments decreases, which extends the average life of a security and increases the interest rate exposure.

An index fund’s return may not match the return of the of the applicable index.

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.

Due to the lack of centralized information and trading, the valuation of debt securities may carry more uncertainty and risk than that of publicly traded securities.

While securities issued or guaranteed by U.S. federal government agencies are backed by the full faith and credit of the U.S. Department of the Treasury, securities issued by government sponsored entities are solely the obligation of the issuer and generally do not carry any guarantee from the U.S. government.

The Fund may hold certain investments that may be subject to restrictions on resale, trade over-the-counter or in limited volume, or lack an active trading market. The Fund may not be able to sell or close out of such investments at favorable times or prices (or at all). Illiquid securities may trade at a discount than more liquid investments and may be subject to wide fluctuations in market value.

A counterparty may not be able to fulfill its obligation to the Fund which may result in significant financial loss to the Fund.

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

For additional risk factors see the Fund’s prospectus.

The Fund offers its shares only to separate accounts of insurance companies that offer variable annuity and variable life insurance products.

“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.

The Fund is not sponsored, endorsed, sold or promoted by the Dorsey, Wright & Associates, LLC ("Dorsey Wright"). Dorsey Wright makes no representation or warranty, express or implied, to the owners of the Fund or any member of the public regarding the advisability of trading in the Fund. Dorsey Wright's only relationship to First Trust is the licensing of certain trademarks and trade names of Dorsey Wright and of the Index which is determined, composed and calculated by Dorsey Wright, or its agent, without regard to First Trust or the Fund, Dorsey Wright has no obligation to take the needs of First Trust or the owners of the Fund into consideration in determining, composing or calculating the Index. Dorsey Wright is not responsible for and has not participated in the determination of the timing of, prices at, or quantities of the Fund to be listed or in the determination or calculation of the equation by which the Fund are to be converted into cash. Dorsey Wright has no obligation or liability in connection with the administration, marketing or trading of the Fund.

Not FDIC Insured • Not Bank Guaranteed • May Lose Value