First Trust Low Duration Opportunities ETF (LMBS)

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	Fact Sheet
	Summary Prospectus
	Monthly Performance Report
	Investor Guide

Fund Summary

2019 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 Low Duration Opportunities ETF is an actively managed exchange-traded fund. The Fund's primary objective is to generate current income with a secondary objective of capital appreciation.

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

Fund Overview

Ticker	LMBS
Fund Type	Mortgage-Backed Securities
Investment Advisor	First Trust Advisors L.P.
Investor Servicing Agent	BNY Mellon Investment Servicing (US) Inc.
CUSIP	33739Q200
ISIN	US33739Q2003
Intraday NAV	LMBSIV
Fiscal Year-End	10/31
Exchange	Nasdaq
Inception	11/4/2014
Inception Price	$50.00
Inception NAV	$50.00
Expense Ratio	0.68%

Current Fund Data (as of 12/9/2019)

Closing NAV¹	$51.82
Closing Market Price²	$51.90
Bid/Ask Midpoint	$51.90
Bid/Ask Premium	0.14%
Total Net Assets	$3,925,716,660
Outstanding Shares	75,750,002
Daily Volume	323,983
Average 30-Day Daily Volume	469,796
Closing Market Price 52-Week High/Low	$52.15 / $50.94
Closing NAV 52-Week High/Low	$52.08 / $50.87
Number of Holdings (excluding cash)	1543

Fund Characteristics (as of 11/29/2019)

Weighted Average Effective Duration (Long Positions)⁷	3.75 Years
Weighted Average Effective Duration (Short Positions)⁷	-1.27 Years
Weighted Average Effective Net Duration⁷	2.48 Years
Weighted Average Effective Maturity	4.18 Years

Non-Agency RMBS Holdings Characteristics (as of 11/29/2019)

Number of Holdings	162
Average Holding Size	0.10%
Weighted Average Effective Maturity	4.25 Years
Weighted Average Coupon	3.39%
Weighted Average Price	$102.18

Top Holdings (as of 12/9/2019)*

Holding	Percent
Fannie Mae FN FM1194, 4.50%, due 05/01/2039	3.29%
Fannie Mae FN FM1725, 2.50%, due 11/01/2047	2.31%
Fannie Mae FN BN5508, 5%, due 02/01/2049	2.26%
Fannie Mae FN BN6078, 4%, due 06/01/2049	1.51%
FANNIE MAE Series 2012-151, Class PA, 1.50%, due 01/25/2043	1.27%
FANNIE MAE Series 2019-68, Class KP, 2.50%, due 11/25/2049	1.27%
Fannie Mae FN BN6068, 4%, due 05/01/2049	1.08%
FANNIE MAE Series 2019-70, Class WA, 0%, due 11/25/2042	1.00%
FANNIE MAE Series 2019-34, Class LA, 3%, due 07/25/2049	0.91%
Fannie Mae FN BN6097, 4%, due 06/01/2049	0.89%

* Excluding cash. Holdings are subject to change.

NAV History (Since Inception)

Past performance is not indicative of future results.

Overall Morningstar Rating^TM (as of 11/30/2019)³

Among 490 funds in the Short-Term Bond category. This fund was rated 3 stars/490 funds (3 years), 5 stars/440 funds (5 years) based on risk adjusted returns.

Distribution Information

Dividend per Share Amt (as of 12/10/2019)⁴	$0.1000
30-Day SEC Yield (as of 11/29/2019)⁵	2.29%
12-Month Distribution Rate (as of 11/29/2019)⁶	2.59%

Bid/Ask Midpoint vs. NAV (as of 9/30/2019)

Number of Days Bid/Ask Midpoint Above NAV

Quarter Ended	0-49 Basis Points	50-99 Basis Points	100-199 Basis Points	>=200 Basis Points
9/30/2019	63	0	0	0
6/30/2019	61	0	0	0
3/31/2019	60	0	0	0
12/31/2018	63	0	0	0

Number of Days Bid/Ask Midpoint Below NAV

Quarter Ended	0-49 Basis Points	50-99 Basis Points	100-199 Basis Points	>=200 Basis Points
9/30/2019	1	0	0	0
6/30/2019	2	0	0	0
3/31/2019	1	0	0	0
12/31/2018	0	0	0	0

The price used to calculate market return is determined by using the midpoint between the highest bid and the lowest offer 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.

Fund Composition – Long Positions (as of 11/29/2019)

	Percent
Agency MBS Pass-Throughs	40.68%
Agency MBS CMOs	27.55%
Non-Agency RMBS	15.90%
Agency CMBS	11.04%
Cash & Cash Equivalents	2.34%
U.S. Treasury Futures	2.03%
Non-Agency CMBS	0.45%
Government ETF	0.01%

Credit Quality (as of 11/29/2019)

Government & Agency	81.30%
Cash & Cash Equivalents	2.35%
AAA	10.49%
AA+	0.90%
AA	1.78%
A+	0.20%
A	0.60%
A-	0.07%
BBB	0.82%
BB+	0.28%
BB	0.42%
B	0.01%
NR	0.78%

The ratings are 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. A credit rating is an assessment provided by a NRSRO, of the creditworthiness of an issuer with respect to debt obligations. Ratings are measured on a scale that generally ranges from AAA (highest) to D (lowest). Investment grade is defined as those issuers that have a long-term credit rating of BBB- or higher. "NR" indicates no rating. 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. U.S. Treasury, U.S. Agency and U.S. Agency mortgage-backed securities appear under "Government". Credit ratings are subject to change.

Month End Performance (as of 11/29/2019)

	3 Month	YTD	1 Year	3 Year	5 Year	10 Year	Since Fund Inception⁸
Fund Performance *
Net Asset Value (NAV)	0.39%	4.11%	4.53%	2.45%	3.40%	N/A	3.55%
After Tax Held	0.15%	3.10%	3.45%	1.32%	2.18%	N/A	2.34%
After Tax Sold	0.23%	2.42%	2.69%	1.38%	2.06%	N/A	2.18%
Market Price	0.42%	4.10%	4.57%	2.44%	3.34%	N/A	3.57%

Index Performance **
ICE BofAML 1-5 year US Treasury & Agency Index	-0.02%	4.03%	5.17%	2.07%	1.59%	N/A	1.63%

Quarter End Performance (as of 9/30/2019)

	3 Month	YTD	1 Year	3 Year	5 Year	10 Year	Since Fund Inception⁸
Fund Performance *
Net Asset Value (NAV)	1.08%	3.81%	4.61%	2.42%	N/A	N/A	3.61%
After Tax Held	0.83%	2.97%	3.49%	1.27%	N/A	N/A	2.39%
After Tax Sold	0.64%	2.24%	2.73%	1.34%	N/A	N/A	2.22%
Market Price	1.24%	3.92%	4.81%	2.47%	N/A	N/A	3.66%

Index Performance **
ICE BofAML 1-5 year US Treasury & Agency Index	0.76%	3.82%	5.60%	1.63%	N/A	N/A	1.64%

3-Year Statistics (as of 11/29/2019)

	Standard Deviation	Alpha	Beta	Sharpe Ratio	Correlation
LMBS	0.72%	0.62	0.37	1.22	0.82
ICE BofAML 1-5 year US Treasury & Agency Index	1.41%	---	1.00	0.30	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 BofAML 1-5 year US Treasury & Agency Index - The Index measures the performance of US dollar denominated US Treasury and non-subordinated US agency debt.

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 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.
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	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.
⁷	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.
⁸	Inception Date is 11/4/2014

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 Nasdaq Stock Market LLC.

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. One of the principal risks of investing in the fund is market risk. Market risk is the risk that a particular security owned by the fund, fund shares or securities in general may fall in value. The fund is subject to management risk because it is an actively managed portfolio. In managing the fund's investment portfolio, the advisor will apply investment techniques and risk analyses that may not have the desired result. There can be no guarantee that the fund will meet its investment objective.

The fund is subject to credit risk, income risk, interest rate risk and prepayment 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 the fund'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 the fund will decline because of rising market interest rates. Prepayment risk is the risk that the fund may not be able to reinvest proceeds received on terms as favorable as the prepaid security.

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.

Securities issued or guaranteed by federal agencies and U.S. government sponsored instrumentalities may or may not be backed by the full faith and credit of the U.S. government.

If a counterparty defaults on its payment obligations, the fund will lose money and the value of fund shares may decrease. The fund's investment in repurchase agreements may be subject to market and credit risk with respect to the collateral securing the agreements.

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.

Illiquid securities involve the risk that the securities will not be able to be sold at the time desired by the fund or at prices approximately the value at which the fund is carrying the securities on its books. The fund will, 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.

Shorting may result in greater gains or greater losses. Short selling creates special risks which could result in increased volatility of returns. Because losses on short sales arise from increases in the value of the security sold short, such losses are theoretically unlimited.

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.

©2019 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