EquityCompass Risk Manager ETF (ERM)

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	Fact Sheet
	Summary Prospectus
	Monthly Performance Report
	Investor Guide

Fund Summary

December 8, 2020 – First Trust Advisors L.P. (“FTA”) announced that the Board of Trustees of EquityCompass Tactical Risk Manager ETF (NYSE Arca: TERM) and Equity Compass Risk Manager ETF (NYSE Arca: ERM), each, an actively managed exchange-traded fund (“ETF”) managed by FTA and sub-advised by EquityCompass Investment Management, LLC (“EquityCompass”), approved the reorganization of TERM into ERM. ERM will be the surviving fund. Under the terms of the proposed transaction, which is expected to be tax-free, the assets of TERM would be transferred to, and the liabilities of TERM would be assumed by, ERM, and shareholders of TERM would receive shares of ERM with an aggregate net asset value equal to the aggregate net asset value of the TERM shares held by them. It is currently expected that the transaction will be consummated no later than the second quarter of 2021, subject to requisite shareholder approval of TERM and ERM and satisfaction of applicable regulatory requirements and approvals and customary closing conditions. There is no assurance when or whether such approvals, or any other approvals required for the transaction, will be obtained. More information can be found here.

Investment Objective/Strategy - The EquityCompass Risk Manager ETF is an actively managed exchange-traded fund. The Fund's investment objective is to provide long term capital appreciation with capital preservation as a secondary objective. Under normal market conditions, the Fund will seek to achieve its investment objectives by investing in equity securities of U.S. companies. During periods when the U.S. equity market is determined to be unfavorable by the Fund's sub-advisor, EquityCompass Investment Management, LLC, the Fund may invest all or a portion of its assets in cash, cash equivalents and short term fixed income.

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

Fund Overview

Ticker	ERM
Fund Type	Tactical Equity
Investment Advisor	First Trust Advisors L.P.
Investor Servicing Agent	BNY Mellon Investment Servicing (US) Inc.
Portfolio Manager/Sub-Advisor	EquityCompass Investment Management, LLC
CUSIP	33740F607
ISIN	US33740F6079
Intraday NAV	ERMIV
Fiscal Year-End	08/31
Exchange	NYSE Arca
Inception	4/10/2017
Inception Price	$20.05
Inception NAV	$20.05
Rebalance Frequency	Periodically
Gross Expense Ratio*	0.68%
Net Expense Ratio*	0.68%

* As of 1/4/2021

First Trust has contractually agreed to reduce management fees earned by the fund for management fees due to be paid to the underlying investment companies advised by First Trust. The agreement is expected to remain in place until at least April 10, 2021, or until its termination at the direction of the Trust's Board of Trustees, or the termination of the Investment Management Agreement. Please see the Fees and Expenses of the Fund section in the fund's prospectus for more details.

Current Fund Data (as of 4/12/2021)

Closing NAV¹	$24.08
Closing Market Price²	$24.06
Bid/Ask Midpoint	$24.08
Bid/Ask Premium	0.00%
30-Day Median Bid/Ask Spread³	0.50%
Total Net Assets	$10,837,306
Outstanding Shares	450,002
Daily Volume	28,713
Average 30-Day Daily Volume	3,087
Closing Market Price 52-Week High/Low	$24.06 / $16.19
Closing NAV 52-Week High/Low	$24.08 / $16.18
Number of Holdings (excluding cash)	150

Top Holdings (as of 4/12/2021)*

Holding	Percent
NVIDIA Corporation	0.75%
Lowe's Companies, Inc.	0.74%
Oracle Corporation	0.74%
Target Corporation	0.74%
The Home Depot, Inc.	0.74%
Adobe Incorporated	0.73%
Lockheed Martin Corporation	0.73%
Amazon.com, Inc.	0.72%
BlackRock, Inc.	0.72%
Costco Wholesale Corporation	0.72%

* 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 4/13/2021)⁴	$0.0314
30-Day SEC Yield (as of 3/31/2021)⁵	1.15%
Unsubsidized 30-Day SEC Yield (as of 3/31/2021)⁶	1.15%
12-Month Distribution Rate (as of 3/31/2021)⁷	1.02%

For funds with certain equity strategies, due to the negative economic impact across many industries caused by the COVID-19 outbreak, certain of the issuers of the securities included in the fund may elect to reduce the amount of dividends and/or distributions paid in the future. As a result, the "12-Month Distribution Rate," which is based on the fund's trailing 12-month ordinary distributions, will likely be higher, and in some cases significantly higher, than the actual 12-month distribution rate achieved by the fund.

Fund Characteristics (as of 3/31/2021)⁹

Maximum Market Cap.	$2,012,893
Median Market Cap.	$84,128
Minimum Market Cap.	$3,473
Price/Earnings	24.77
Price/Book	2.80
Price/Cash Flow	15.74
Price/Sales	1.92

Bid/Ask Premium/Discount (as of 4/12/2021)

	2020	Q1 2021	Q2 2021	Q3 2021
Days Traded at Premium	151	45	1	---
Days Traded at Discount	102	16	6	---

Month End Performance (as of 3/31/2021)

	3 Month	YTD	1 Year	3 Year	5 Year	10 Year	Since Fund Inception¹⁰
Fund Performance *
Net Asset Value (NAV)	12.29%	12.29%	47.67%	4.76%	N/A	N/A	5.79%
After Tax Held	12.22%	12.22%	46.93%	3.98%	N/A	N/A	5.07%
After Tax Sold	7.27%	7.27%	28.15%	3.28%	N/A	N/A	4.14%
Market Price	12.52%	12.52%	47.98%	4.78%	N/A	N/A	5.85%

Index Performance **
Hedge Fund Research HFRI Equity Hedge Index	7.36%	7.36%	48.17%	10.03%	N/A	N/A	N/A
S&P 500 Index	6.17%	6.17%	56.35%	16.78%	N/A	N/A	16.24%

Quarter End Performance (as of 3/31/2021)

	3 Month	YTD	1 Year	3 Year	5 Year	10 Year	Since Fund Inception¹⁰
Fund Performance *
Net Asset Value (NAV)	12.29%	12.29%	47.67%	4.76%	N/A	N/A	5.79%
After Tax Held	12.22%	12.22%	46.93%	3.98%	N/A	N/A	5.07%
After Tax Sold	7.27%	7.27%	28.15%	3.28%	N/A	N/A	4.14%
Market Price	12.52%	12.52%	47.98%	4.78%	N/A	N/A	5.85%

Index Performance **
Hedge Fund Research HFRI Equity Hedge Index	7.36%	7.36%	48.17%	10.03%	N/A	N/A	N/A
S&P 500 Index	6.17%	6.17%	56.35%	16.78%	N/A	N/A	16.24%

3-Year Statistics (as of 3/31/2021)

	Standard Deviation	Alpha	Beta	Sharpe Ratio	Correlation
ERM	19.48%	-9.85	0.94	0.26	0.89
S&P 500 Index	18.40%	---	1.00	0.85	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. The fund's performance reflects fee waivers and expense reimbursements, absent which performance would have been lower.

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.

The Hedge Fund Research HFRI Equity Hedge Index returns are published as estimates and updated three times per month, therefore returns shown are subject to change. Returns for the index are not available since the fund’s inception as the index is calculated monthly. Unlike most asset class indexes, the Hedge Fund Research HFRI Equity Hedge Index returns reflect the fees and expenses of the funds it tracks, but the index itself does not assess a fee.

Hedge Fund Research HFRI Equity Hedge Index - The Index tracks the performance of equity hedge strategies that maintain positions both long and short in primarily equity and equity derivative securities.

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 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	The unsubsidized 30-day SEC yield is calculated the same as the 30-day SEC yield, however it excludes contractual fee waivers and expense reimbursements.
⁷	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.
⁸	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.
⁹	All market capitalization numbers are in USD$ Millions.
¹⁰	Inception Date is 4/10/2017

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 NYSE Arca, Inc.

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. The fund is subject to management risk because it is an actively managed portfolio. In managing the fund's investment portfolio, the sub-advisor will apply investment techniques and risk analyses that may not have the desired result. There can be no assurance that the fund's investment objectives 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. The COVID-19 pandemic may last for an extended period of time, and will continue to impact the economy for the foreseeable future.

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.

The fund may invest in small or mid capitalization companies. Such companies may experience greater price volatility than larger, more established companies.

The fund may invest in ETFs that are subject to credit risk, income risk, interest rate risk and call risk. Credit risk is the risk that an issuer of a security will be unable or unwilling to make dividend, interest and/or principal payments when due and that the value of a security may decline as a result. Income risk is the risk that income from an ETF's fixed-income investments could decline during periods of falling interest rates. Interest rate risk is the risk that the value of the fixed-income securities in an ETF's portfolio will decline because of rising market interest rates. Call risk is the risk that if an issuer calls higher-yielding debt instruments held by an ETF, performance could be adversely impacted.

The risks of owning an 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.

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 fund's investment in ETFs is restricted by the Investment Company Act of 1940, as amended, and the fund's associated exemptive relief which limits the amount of any single ETF that can be owned by the fund, individually and in the aggregate with all other registered investment companies and private investment pools advised by First Trust and its affiliates. This limitation may prevent the fund from purchasing shares of an ETF that it may have otherwise purchased pursuant to its investment objectives and principal investment strategy.

The fund may invest in ETFs that are subject to the risk of investing in mortgage-related and other asset-backed securities, including interest rate risk, extension risk and prepayment risk. Generally, rising interest rates tend to extend the duration of fixed rate mortgage-related securities, making them more sensitive to changes in interest rates. Extension risk is prevalent when in a period of rising interest rates, an ETF holds mortgage-related securities and such securities exhibit additional volatility. Prepayments can reduce the returns of an ETF because the ETF may have to reinvest that money at the lower prevailing interest rates. An ETF's investments in asset-backed securities are subject to risks similar to those associated with mortgage-related securities, as well as additional risks associated with the nature of the assets and the servicing of those assets.

Certain of the fixed-income securities in an underlying ETF may not have the benefit of covenants which could reduce the ability of the issuer to meet its payment obligations and might result in increased credit risk.

Senior floating-rate 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. Credit risk may be heightened for senior loans because companies that issue loans tend to be highly leveraged and thus are more susceptible to the risks of interest deferral, default and/or bankruptcy.

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.

The fund may invest in the shares of other investment companies, and therefore, the fund's investment performance and risks may be related to the investment performance and risks of the underlying funds.

An investment in a fund containing securities of non-U.S. issuers 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.

The fund may invest in ETFs that invest in sovereign debt. Investments in sovereign bonds involve special risks because the governmental authority that controls the repayment of the debt may be unwilling or unable to repay the principal and/or interest when due. In times of economic uncertainty, the prices of these securities may be more volatile than those of corporate debt obligations or of other government debt obligations.

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

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 the fund or on certain instruments in which the fund invests can be difficult to ascertain, and they may vary depending on a variety of factors, and they could result in losses to the fund.

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