First Trust Preferred Securities and Income ETF (FPE)

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	Fact Sheet
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Fund Summary

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 10/21/2021)

Closing NAV¹	$20.45
Closing Market Price²	$20.48
Bid/Ask Midpoint	$20.48
Bid/Ask Premium	0.15%
30-Day Median Bid/Ask Spread³	0.05%
Total Net Assets	$7,675,442,573
Outstanding Shares	375,355,000
Daily Volume	1,178,653
Average 30-Day Daily Volume	1,748,042
Closing Market Price 52-Week High/Low	$20.75 / $19.15
Closing NAV 52-Week High/Low	$20.70 / $19.21
Number of Holdings (excluding cash)	313

Top Holdings (as of 10/21/2021)*

Holding	Percent
BARCLAYS PLC Variable rate	2.04%
AERCAP HOLDINGS NV Variable rate, due 10/10/2079	2.00%
EMERA INC Variable rate, due 06/15/2076	1.79%
Wells Fargo & Company, Series L, 7.50%	1.41%
HIGHLAND HOLDINGS BOND 7.625%, due 10/15/2025	1.24%
CREDIT SUISSE GROUP AG Variable rate	1.08%
JPMORGAN CHASE & CO Series V, Variable rate	1.04%
SOCIETE GENERALE Variable rate	1.03%
ENBRIDGE INC Variable rate, due 01/15/2077	0.95%
GLOBAL ATLANTIC Variable rate, due 10/15/2051	0.95%

* Excluding cash. Holdings are subject to change.

Security Type Breakdown (as of 9/30/2021)

Security	Percent
Fixed-to-Floating Rate and Fixed-to-Variable Rate Securities	73.95%
Fixed Rate Securities	21.22%
Floating Rate Securities	4.55%
Step-up Rate Securities	0.28%

NAV History (Since Inception)

Past performance is not indicative of future results.

Overall Morningstar Rating^TM (as of 9/30/2021)⁴

Among 60 funds in the Preferred Stock category. This fund was rated 3 stars/60 funds (3 years), 4 stars/49 funds (5 years) based on risk adjusted returns.

Distribution Information

Dividend per Share Amt (as of 10/24/2021)⁵	$0.0647
30-Day SEC Yield (as of 9/30/2021)⁶	3.32%
12-Month Distribution Rate (as of 9/30/2021)⁷	4.47%
Distribution Rate (as of 9/30/2021)⁸	4.30%

Fund Characteristics (as of 9/30/2021)

Weighted Average Effective Duration⁹	4.08 Years
% Institutional Securities (e.g. $1000 par)¹⁰	73.69%
% Retail Securities (e.g. $25 par)¹¹	26.31%
Weighted Average % of Par¹³	108.01%

Top Country Exposure (as of 10/21/2021)

Country	Percent
United States	55.84%
United Kingdom	7.96%
Canada	6.71%
Bermuda	5.67%
France	5.32%
Switzerland	3.80%
Ireland	2.60%
Italy	2.43%
Australia	2.24%
The Netherlands	1.83%

Bid/Ask Premium/Discount (as of 10/21/2021)

	2020	Q1 2021	Q2 2021	Q3 2021
Days Traded at Premium	178	43	63	64
Days Traded at Discount	75	18	0	0

Credit Quality (as of 9/30/2021)

A	0.65%
A-	0.49%
BBB+	10.83%
BBB	22.03%
BBB-	26.58%
BB+	23.65%
BB	8.36%
BB-	1.70%
B+	0.99%
B	0.97%
NR	3.75%

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 10/21/2021)

Banks	36.83%
Insurance	16.26%
Capital Markets	11.68%
Oil, Gas & Consumable Fuels	7.32%
Electric Utilities	4.97%
Trading Companies & Distributors	4.08%
Diversified Financial Services	3.37%
Food Products	3.16%
Multi-Utilities	2.85%
Diversified Telecommunication Services	1.60%

Hypothetical Growth of $10,000 Since Inception (as of 10/21/2021) *

Month End Performance (as of 9/30/2021)

	3 Month	YTD	1 Year	3 Year	5 Year	10 Year	Since Fund Inception¹²
Fund Performance *
Net Asset Value (NAV)	0.92%	4.89%	12.18%	7.92%	6.58%	N/A	5.93%
After Tax Held	0.46%	3.47%	10.13%	5.65%	4.25%	N/A	3.51%
After Tax Sold	0.54%	2.88%	7.17%	5.07%	3.99%	N/A	3.41%
Market Price	0.77%	5.15%	12.06%	7.88%	6.50%	N/A	5.93%

Index Performance **
ICE BofA US Investment Grade Institutional Capital Securities Index	0.95%	3.02%	7.65%	8.28%	6.33%	N/A	N/A
Blended Benchmark	0.48%	3.61%	9.04%	8.30%	6.89%	N/A	N/A
ICE BofA Fixed Rate Preferred Securities Index	0.22%	2.21%	6.86%	7.09%	5.54%	N/A	5.91%
Prior Blended Benchmark	0.59%	2.42%	6.78%	7.88%	5.94%	N/A	6.05%

Quarter End Performance (as of 9/30/2021)

	3 Month	YTD	1 Year	3 Year	5 Year	10 Year	Since Fund Inception¹²
Fund Performance *
Net Asset Value (NAV)	0.92%	4.89%	12.18%	7.92%	6.58%	N/A	5.93%
After Tax Held	0.46%	3.47%	10.13%	5.65%	4.25%	N/A	3.51%
After Tax Sold	0.54%	2.88%	7.17%	5.07%	3.99%	N/A	3.41%
Market Price	0.77%	5.15%	12.06%	7.88%	6.50%	N/A	5.93%

Index Performance **
ICE BofA US Investment Grade Institutional Capital Securities Index	0.95%	3.02%	7.65%	8.28%	6.33%	N/A	N/A
Blended Benchmark	0.48%	3.61%	9.04%	8.30%	6.89%	N/A	N/A
ICE BofA Fixed Rate Preferred Securities Index	0.22%	2.21%	6.86%	7.09%	5.54%	N/A	5.91%
Prior Blended Benchmark	0.59%	2.42%	6.78%	7.88%	5.94%	N/A	6.05%

3-Year Statistics (as of 9/30/2021)

	Standard Deviation	Alpha	Beta	Sharpe Ratio	Correlation
FPE	11.92%	-1.85	1.24	0.60	0.99
ICE BofA US Investment Grade Institutional Capital Securities Index	8.43%	0.77	0.88	0.84	0.99
Blended Benchmark	9.51%	---	1.00	0.76	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.

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 US Investment Grade Institutional Capital Securities Index - The Index tracks the performance of US dollar denominated investment grade hybrid capital corporate and preferred securities publicly issued in the US domestic market.

Blended Benchmark - The Benchmark consists of a 30/30/30/10 blend of the ICE BofA Core Plus Fixed Rate Preferred Securities Index, the ICE BofA US Investment Grade Institutional Capital Securities Index, the ICE USD Contingent Capital Index and the ICE BofA US High Yield Institutional Capital Securities Index. The Blended Benchmark is intended to reflect the proportional market cap of each segment of the preferred and hybrid securities market. The Blended Benchmark returns are calculated by using the monthly returns of the four indices during each period shown above. At the beginning of each month the four indices are rebalanced to a 30/30/30/10 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 Index for each period shown above. On July 6, 2021, the Fund's benchmark changed from the Prior Blended Benchmark to the Blended Benchmark, because the Advisor believes that the Blended Benchmark better reflects the investment strategies of the Fund.

ICE BofA Core Plus 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 USD Contingent Capital Index - The Index tracks the performance of investment grade and below investment grade contingent capital debt publicly issued in the major domestic and eurobond markets.

ICE BofA US High Yield Institutional Capital Securities Index - The Index tracks the performance of US dollar denominated sub-investment grade hybrid capital corporate and preferred securities publicly issued in the US domestic market.

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.

Prior 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 Prior 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 Prior 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	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	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.
¹⁰	Institutional Securities are predominantly $1000 par securities and only trade over-the-counter.
¹¹	Retail Securities are predominantly $25 par securities but also include exchange-traded $20, $50, and $100 par securities.
¹²	Inception Date is 2/11/2013
¹³	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.

Risk Considerations

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. 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. While the development of vaccines has slowed the spread of the virus and allowed for the resumption of "reasonably" normal business activity in the United States, many countries continue to impose lockdown measures in an attempt to slow the spread. Additionally, there is no guarantee that vaccines will be effective against emerging variants of the disease.

A fund that effects all or a portion of its creations and redemptions for cash rather than in-kind may be less tax-efficient.

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 differences in yield between debt securities of different credit quality may increase which may reduce the market value of a fund's debt securities.

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.

Certain securities are subject to call, credit, inflation, income, interest rate, extension and prepayment risks. These risks could result in a decline in a security's value and/or income, increased volatility as interest rates rise or fall and have an adverse impact on a fund's performance.

Financial companies are subject to the adverse effects of volatile interest rates, economic recession, decreases in capital availability and increased new competition in the field.

The market value of floating rate securities may fall in a declining interest rate environment and may also fall in a rising interest rate environment if there is a lag between the rise in interest rates and the reset. Income earned by a fund on floating rate and fixed-to-floating rate securities may decline due to lower coupon payments on floating-rate securities.

Hybrid capital securities are subject to the risks of equity securities and debt securities. The claims of holders of hybrid capital securities of an issuer are generally subordinated to those of holders of traditional debt securities in bankruptcy, and thus hybrid capital securities may be more volatile and subject to greater risk than traditional debt securities.

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

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

Certain fund investments may be subject to restrictions on resale, trade over-the-counter or in limited volume, or lack an active trading market. Illiquid securities may trade at a discount and may be subject to wide fluctuations in market value.

In managing a fund's investment portfolio, the portfolio managers will apply investment techniques and risk analyses that may not have the desired result.

Securities of non-U.S. issuers are 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.

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.

Preferred securities combine some of the characteristics of both common stocks and bonds. Preferred stocks are typically subordinated to other debt instruments in terms of priority to corporate income, and therefore will be subject to greater credit risk than those debt instruments.

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 than larger, more established companies.

Subordinated debt has lower credit ratings and lower priority than other obligations of an issuer during bankruptcy, presenting a greater risk of nonpayment.

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.

Portfolio holdings that are valued using techniques other than market quotations may be subject to greater fluctuation in their valuations from one day to the next than if market quotations were used.

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.

©2021 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