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First Trust Nasdaq Lux Digital Health Solutions ETF (EKG)
Investment Objective/Strategy - The First Trust Nasdaq Lux Digital Health Solutions ETF (the "Fund") seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of an equity index called the Nasdaq Lux Health Tech Index (the "Index"). The Fund will normally invest at least 80% of its net assets (plus any borrowings for investment purposes) in the common stocks and depositary receipts that comprise the Index.
There can be no assurance that the Fund's investment objectives will be achieved.
  • The Nasdaq Lux Health Tech Index (the "index") is designed to measure the performance of a selection of companies that are primarily engaged in and involved at the intersection of healthcare and technology ("Digital Health Companies"). The index begins with a universe of common stocks and depositary receipts of companies listed on an index-eligible global stock exchange by issuers classified by Lux Capital as Digital Health Companies.
  • Each security must have a minimum free float market capitalization of $500 million and a 3-month average daily trading volume of at least $3 million.
  • In order to remain in the index, companies must have at least 7% revenue growth in one of the two preceding years or a market capitalization of at least $50 billion.
    • Companies added to the index during reconstitutions must have annual revenue growth of at least 10% in each of the two preceding full fiscal years.
  • Securities selected for the index are weighted according to a modified market capitalization methodology.
    • Under this methodology, the weighting of each security is determined by dividing its free float market capitalization by the aggregate free float market capitalization of all the securities in the index subject to a maximum weighting of 8%.
    • These weights are maintained for the five securities with the largest free float market capitalization, and all other securities in the index are subject to a maximum weighting of 4%.
    • No security may be weighted above 8% and only five securities may exceed 4%.
  • The index is rebalanced and reconstituted semi-annually.
Fund Overview
TickerEKG
Fund TypeHealth Care
Investment AdvisorFirst Trust Advisors L.P.
Investor Servicing AgentBank of New York Mellon Corp
CUSIP33719L106
ISINUS33719L1061
Intraday NAVEKGIV
Fiscal Year-End09/30
ExchangeNasdaq
Inception3/22/2022
Inception Price$20.44
Inception NAV$20.44
Rebalance FrequencySemi-Annual
Expense Ratio0.65%
Current Fund Data (as of 5/20/2022)
Closing NAV1$15.34
Closing Market Price2$15.35
Bid/Ask Midpoint$15.36
Bid/Ask Premium0.13%
30-Day Median Bid/Ask Spread30.39%
Total Net Assets$1,534,484
Outstanding Shares100,002
Daily Volume148
Average 30-Day Daily Volume440
Closing Market Price 52-Week High/Low$21.56 / $14.21
Closing NAV 52-Week High/Low$21.55 / $14.20
Number of Holdings (excluding cash)59
Top Holdings (as of 5/20/2022)*
Holding Percent
IQVIA Holdings Inc. 9.52%
DexCom, Inc. 8.41%
Intuitive Surgical, Inc. 8.19%
Illumina, Inc. 8.09%
Hologic, Inc. 5.94%
Align Technology, Inc. 5.84%
ResMed Inc. 4.35%
QIAGEN N.V. 4.23%
Veeva Systems Inc. (Class A) 3.90%
ABIOMED, Inc. 3.75%

* Excluding cash.  Holdings are subject to change.

NAV History (Since Inception)
Past performance is not indicative of future results.
Fund Characteristics (as of 4/29/2022)4
Maximum Market Cap.$85,898
Median Market Cap.$1,759
Minimum Market Cap.$373
Price/Earnings37.37
Price/Book4.02
Price/Cash Flow28.42
Price/Sales6.27
Top Country Exposure (as of 5/20/2022)
Country Percent
United States 94.63%
The Netherlands 4.24%
Sweden 0.53%
Costa Rica 0.50%
China 0.10%
Bid/Ask Premium/Discount (as of 5/20/2022)
  2021 Q1 2022 Q2 2022 Q3 2022
Days Traded at Premium --- 7 35 ---
Days Traded at Discount --- 0 0 ---
Top Industry Exposure (as of 5/20/2022)
Medical Equipment and Services 63.48%
Health Care Providers 20.31%
Pharmaceuticals and Biotechnology 15.66%
Software and Computer Services 0.55%
Hypothetical Growth of $10,000 Since Inception (as of 5/20/2022) *
Tracking Index: Nasdaq Lux Health Tech Index

Month End Performance (as of 4/29/2022)
  3 Month YTD 1 Year 3 Year 5 Year 10 Year Since
Fund
Inception5
Fund Performance *
Net Asset Value (NAV) N/A N/A N/A N/A N/A N/A -17.32%
After Tax Held N/A N/A N/A N/A N/A N/A -17.32%
After Tax Sold N/A N/A N/A N/A N/A N/A -10.25%
Market Price N/A N/A N/A N/A N/A N/A -17.27%
Index Performance **
Nasdaq Lux Health Tech Index N/A N/A N/A N/A N/A N/A -17.31%
S&P Composite 1500 Health Care Index N/A N/A N/A N/A N/A N/A -4.82%
Quarter End Performance (as of 3/31/2022)
  3 Month YTD 1 Year 3 Year 5 Year 10 Year Since
Fund
Inception5
Fund Performance *
Net Asset Value (NAV) N/A N/A N/A N/A N/A N/A 2.10%
After Tax Held N/A N/A N/A N/A N/A N/A 2.10%
After Tax Sold N/A N/A N/A N/A N/A N/A 1.25%
Market Price N/A N/A N/A N/A N/A N/A 2.30%
Index Performance **
Nasdaq Lux Health Tech Index N/A N/A N/A N/A N/A N/A 2.14%
S&P Composite 1500 Health Care Index N/A N/A N/A N/A N/A N/A 0.25%

*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.

**Performance information for the Nasdaq Lux Health Tech 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.

S&P Composite 1500 Health Care Index - The Index is a capitalization-weighted index of companies classified by GICS as health care within the S&P Composite 1500 Index.

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 All market capitalization numbers are in USD$ Millions.
5 Inception Date is 3/22/2022

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

A fund's return may not match the return of its underlying index. A fund invests in securities included in the index regardless of investment merit and the securities held by a 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 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. 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 has caused and may continue to cause significant volatility and declines in global financial markets. While the U.S. has resumed “reasonably” normal business activity, many countries continue to impose lockdown measures. Additionally, there is no guarantee that vaccines will be effective against emerging variants of the disease.

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

Health care companies may be affected by government regulations and government health care programs, increases or decreases in the cost of medical products and services and product liability claims, among other factors. Many health care companies are heavily dependent on patent protection, and the expiration of a company's patent may adversely affect that company's profitability. Health care companies are also subject to competitive forces that may result in price discounting, may be thinly capitalized and susceptible to product obsolescence.

Companies in health care technology may be susceptible to risks which include, but are not limited to, small or limited markets for such securities, changes in business cycles, world economic growth, technological progress, rapid obsolescence, and government regulation. Securities of health care technology companies, especially smaller, start-up companies, tend to be more volatile than securities of companies that do not rely heavily on technology.

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

There is no assurance that the index provider or its agents will compile or maintain the index accurately.

Large capitalization companies may grow at a slower rate than the overall market.

Large inflows and outflows may impact a new fund's market exposure for limited periods of time.

A fund classified as "non-diversified" may invest a relatively high percentage of its assets in a limited number of issuers. As a result, a 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.

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.

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.

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.

Nasdaq® and Nasdaq Lux Health Tech Index are registered trademarks and service marks of Nasdaq, Inc. (together with its affiliates hereinafter referred to as the "Corporations") and are licensed for use by First Trust. The Fund has not been passed on by the Corporations as to its legality or suitability. The Fund is not issued, endorsed, sold or promoted by the Corporations. THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE FUND.
Not FDIC Insured • Not Bank Guaranteed • May Lose Value
 
The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial professionals are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.
First Trust Portfolios L.P.  Member SIPC and FINRA. (Form CRS)   •  First Trust Advisors L.P. (Form CRS)
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