First Trust Preferred Securities and Income ETF (FPE)

	Printer Friendly Page
	Fact Sheet
	Summary Prospectus
	Monthly Performance Report
	Investor Guide

Fund Summary

2020 Estimated Capital Gain Distributions

Certain First Trust Exchange-Traded Funds are expected to pay a short term and/or long-term capital gain distribution in December. For a list of exchange-traded funds expected to pay a capital gain distribution, please click here. Final determination of the source and tax status of all distributions paid in the current year are to be made after year-end and could differ from the expectations noted above.

Investment Objective/Strategy - The First Trust Preferred Securities and Income ETF is an actively managed exchange-traded fund. The fund's investment objective is to seek total return and to provide current income. Under normal market conditions, the fund invests at least 80% of its net assets (including investment borrowings) in preferred securities and income-producing debt securities including corporate bonds, high yield securities and convertible securities.

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

Fund Overview

Ticker	FPE
Fund Type	Preferred Income
Investment Advisor	First Trust Advisors L.P.
Investor Servicing Agent	Brown Brothers Harriman
Portfolio Manager/Sub-Advisor	Stonebridge Advisors LLC
CUSIP	33739E108
ISIN	US33739E1082
Intraday NAV	FPEIV
Fiscal Year-End	10/31
Exchange	NYSE Arca
Inception	2/11/2013
Inception Price	$19.99
Inception NAV	$19.99
Expense Ratio	0.85%

Current Fund Data (as of 11/20/2020)

Closing NAV¹	$19.91
Closing Market Price²	$19.92
Bid/Ask Midpoint	$19.92
Bid/Ask Premium	0.05%
30-Day Median Bid/Ask Spread³	0.05%
Total Net Assets	$5,711,097,020
Outstanding Shares	286,905,000
Daily Volume	1,175,656
Average 30-Day Daily Volume	1,527,604
Closing Market Price 52-Week High/Low	$20.48 / $13.60
Closing NAV 52-Week High/Low	$20.44 / $14.59
Number of Holdings (excluding cash)	274

Top Holdings (as of 11/20/2020)*

Holding	Percent
EMERA INC Variable rate, due 06/15/2076	2.85%
AERCAP HOLDINGS NV Variable rate, due 10/10/2079	1.97%
BARCLAYS PLC Variable rate	1.88%
BARCLAYS PLC Variable rate	1.57%
Wells Fargo & Company, Series L, 7.50%	1.55%
GMAC Capital Trust I, Series 2, Variable Rate, Due 02/15/2040	1.47%
SOCIETE GENERALE Variable rate	1.39%
LLOYDS BANKING GROUP PLC Variable rate	1.22%
ENEL SPA Variable rate, due 09/24/2073	1.17%
ENBRIDGE INC Variable rate, due 01/15/2077	1.13%

* Excluding cash. Holdings are subject to change.

Security Type Breakdown (as of 10/30/2020)

Security	Percent
Fixed-to-Floating Rate and Fixed-to-Variable Rate Securities	76.09%
Fixed Rate Securities	17.87%
Floating Rate Securities	6.04%

NAV History (Since Inception)

Past performance is not indicative of future results.

Overall Morningstar Rating^TM (as of 10/31/2020)⁴

Among 58 funds in the Preferred Stock category. This fund was rated 3 stars/58 funds (3 years), 4 stars/45 funds (5 years) based on risk adjusted returns.

Distribution Information

Dividend per Share Amt (as of 11/23/2020)⁵	$0.0629
30-Day SEC Yield (as of 10/30/2020)⁶	4.06%
12-Month Distribution Rate (as of 10/30/2020)⁷	5.21%

For funds with certain equity strategies, due to the negative economic impact across many industries caused by the recent 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 10/30/2020)

Weighted Average Effective Duration⁸	4.12 Years
% Institutional Securities (e.g. $1000 par)⁹	71.83%
% Retail Securities (e.g. $25 par)¹⁰	28.17%
Weighted Average % of Par¹²	103.58%

Top Country Exposure (as of 11/20/2020)

Country	Percent
United States	49.28%
United Kingdom	9.15%
Canada	9.14%
France	7.11%
Switzerland	4.50%
Bermuda	3.94%
Italy	3.25%
Australia	2.76%
Ireland	2.56%
The Netherlands	2.46%

Bid/Ask Premium/Discount (as of 11/20/2020)

	2019	Q1 2020	Q2 2020	Q3 2020
Days Traded at Premium	201	48	38	40
Days Traded at Discount	51	14	25	24

Credit Quality (as of 10/30/2020)

A	0.06%
A-	0.62%
BBB+	8.92%
BBB	23.73%
BBB-	29.03%
BB+	21.02%
BB	8.00%
BB-	3.07%
B+	1.15%
B	0.73%
NR	3.67%

The credit quality and ratings information presented above reflect the ratings assigned by one or more nationally recognized statistical rating organizations (NRSROs), including Standard & Poor's Rating Group, a division of the McGraw Hill Companies, Inc., Moody's Investors Service, Inc., Fitch Ratings, or a comparably rated NRSRO. For situations in which a security is rated by more than one NRSRO and the ratings are not equivalent, the highest ratings are used. Sub-investment grade ratings are those rated BB+/Ba1 or lower. Investment grade ratings are those rated BBB-/Baa3 or higher. 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 11/20/2020)

Banks	39.22%
Insurance	15.52%
Capital Markets	11.03%
Oil, Gas & Consumable Fuels	7.15%
Electric Utilities	6.07%
Food Products	3.37%
Trading Companies & Distributors	3.19%
Multi-Utilities	2.31%
Diversified Financial Services	2.20%
Consumer Finance	2.16%

Month End Performance (as of 10/30/2020)

	3 Month	YTD	1 Year	3 Year	5 Year	10 Year	Since Fund Inception¹¹
Fund Performance *
Net Asset Value (NAV)	2.55%	0.38%	1.94%	4.08%	6.06%	N/A	5.18%
After Tax Held	2.05%	-1.39%	-0.24%	1.75%	3.60%	N/A	2.74%
After Tax Sold	1.51%	0.17%	1.09%	2.09%	3.54%	N/A	2.83%
Market Price	1.96%	-0.24%	1.56%	3.95%	5.92%	N/A	5.13%

Index Performance **
ICE BofA Fixed Rate Preferred Securities Index	1.08%	2.74%	4.03%	5.03%	5.78%	N/A	5.78%
ICE BofA U.S. Capital Securities Index	1.31%	4.99%	6.15%	6.06%	6.41%	N/A	6.06%
Blended Benchmark	1.19%	3.90%	5.13%	5.57%	6.11%	N/A	5.94%

Quarter End Performance (as of 9/30/2020)

	3 Month	YTD	1 Year	3 Year	5 Year	10 Year	Since Fund Inception¹¹
Fund Performance *
Net Asset Value (NAV)	5.27%	-0.42%	2.44%	4.04%	6.27%	N/A	5.13%
After Tax Held	4.74%	-2.04%	0.23%	1.71%	3.79%	N/A	2.68%
After Tax Sold	3.12%	-0.29%	1.40%	2.06%	3.70%	N/A	2.79%
Market Price	5.54%	-0.41%	2.65%	4.13%	6.28%	N/A	5.17%

Index Performance **
ICE BofA Fixed Rate Preferred Securities Index	4.90%	2.29%	4.34%	4.98%	6.16%	N/A	5.79%
ICE BofA U.S. Capital Securities Index	3.68%	4.64%	7.22%	6.16%	6.56%	N/A	6.08%
Blended Benchmark	4.29%	3.50%	5.81%	5.59%	6.38%	N/A	5.95%

3-Year Statistics (as of 10/30/2020)

	Standard Deviation	Alpha	Beta	Sharpe Ratio	Correlation
FPE	11.77%	-2.82	1.46	0.25	0.98
ICE BofA Fixed Rate Preferred Securities Index	7.75%	-0.31	0.95	0.44	0.96
ICE BofA U.S. Capital Securities Index	8.57%	0.31	1.05	0.51	0.97
Blended Benchmark	7.88%	---	1.00	0.49	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 based on the midpoint of the bid/ask spread on the stock exchange on which shares of the fund are listed for trading 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 Fixed Rate Preferred Securities Index - The Index tracks the performance of fixed rate US dollar denominated preferred securities issued in the US domestic market.

ICE BofA U.S. Capital Securities Index - The Index is a subset of the ICE BofA U.S. Corporate Index including all fixed-to-floating rate, perpetual callable and capital securities.

Blended Benchmark - The Benchmark consists of a 50/50 blend of the ICE BofA Fixed Rate Preferred Securities Index and the ICE BofA U.S. Capital Securities Index. The Blended Benchmark was added to reflect the diverse allocation of institutional preferred and hybrid securities in the fund's portfolio. The Blended Benchmark returns are calculated by using the monthly return of the two indices during each period shown above. At the beginning of each month the two indices are rebalanced to a 50-50 ratio to account for divergence from that ratio that occurred during the course of each month. The monthly returns are then compounded for each period shown above, giving the performance for the Blended Benchmark for each period shown above.

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	The Morningstar Rating^TM for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The Morningstar Rating does not include any adjustment for sales loads. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.
⁵	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.
⁶	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.
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	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	Institutional Securities are predominantly $1000 par securities and only trade over-the-counter.
¹⁰	Retail Securities are predominantly $25 par securities but also include exchange-traded $20, $50, and $100 par securities.
¹¹	Inception Date is 2/11/2013
¹²	The weighted average % of par reflects the average price of the fixed income securities within the portfolio as a % of the underlying face value. This is calculated as a weighted average using the market values of each security within the portfolio. A value above 100 indicates that the underlying securities are trading at a premium, on average, and a value below 100 indicates that the underlying securities are trading at a discount, on average. The face value of a bond is typically $100 or $1000 and the face value of an exchange-traded retail security is typically $25.

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 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. Some of the securities held by the fund may be illiquid. 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.

Preferred securities combine some of the characteristics of both common stocks and bonds. Preferred securities are typically subordinated to bonds and other debt instruments in a company's capital structure, in terms of priority to corporate income, and therefore will be subject to greater credit risk than those debt instruments. Preferred securities are also subject to credit risk, call risk, interest rate risk and income 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. Call risk is the risk that performance could be adversely impacted if an issuer calls higher-yielding debt instruments held by the fund. Interest rate risk is the risk that the value of fixed-income securities in the fund will decline because of rising market interest rates. Income risk is the risk that income from the fund's portfolio could decline if interest rates fall.

The fund may invest in high yield securities, or "junk" bonds, which are subject to greater market fluctuations and risk of loss than securities with higher ratings, and therefore, may be highly speculative. The market for high yield securities is smaller and less liquid than that for investment grade securities.

The fund is concentrated in securities of companies in the financial sector which involves additional risks, including limited diversification. Financial companies are especially subject to the adverse effects of economic recession, currency exchange rates, government regulation, decreases in the availability of capital, volatile interest rates, portfolio concentrations in geographic markets and in commercial and residential real estate loans, and competition from new entrants in their fields of business.

The fund may invest 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. 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 depositary receipts which may be less liquid than the underlying shares in their primary trading market. The fund may, under most circumstances, effect a portion of creations and redemptions for cash, rather than in-kind securities. As a result, the fund may be less tax-efficient. Changes in currency exchange rates and the relative value of non-US currencies may affect the value of a fund's investments and the value of a fund's shares.

Contingent convertible securities ("CoCos") may provide for mandatory conversion into common stock of the issuer under certain circumstances. Since the common stock of the issuer may not pay a dividend, investors in these instruments could experience a reduced income rate, potentially to zero; and conversion would deepen the subordination of the investor, hence worsening standing in a bankruptcy.

The use of derivatives can lead to losses because of adverse movements in the price or value of the underlying asset, index or rate, which may be magnified by certain features of the derivatives. These risks are heightened when the fund's portfolio managers use derivatives to enhance the fund's return or as a substitute for a position or security, rather than solely to hedge (or offset) the risk of a position or security held by the fund.

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.

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.

©2020 Morningstar, Inc. All Rights Reserved. The Morningstar Rating^TM information contained herein: (1) is proprietary to Morningstar;(2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

Not FDIC Insured • Not Bank Guaranteed • May Lose Value