UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-22717
First Trust Exchange-Traded Fund VI
(Exact name of registrant as specified in charter)
120 East Liberty Drive, Suite 400
Wheaton, IL 60187
(Address of principal executive offices) (Zip code)
W. Scott Jardine, Esq.
First Trust Portfolios L.P.
120 East Liberty Drive, Suite 400
Wheaton, IL 60187
(Name and address of agent for service)
Registrant’s telephone number, including area code: (630) 765-8000
Date of fiscal year end: September 30
Date of reporting period: March 31, 2024
Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549p. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.
Item 1. Report to Stockholders.
(a) | | The registrant’s semi-annual report transmitted to shareholders pursuant to Rule 30e-1 under the Investment Company Act of 1940 is as follows: |
|
For the Six Months Ended
March 31, 2024 |
First Trust Exchange-Traded Fund VI
First Trust NASDAQ Technology Dividend Index Fund (TDIV) |
Multi-Asset Diversified Income Index Fund (MDIV) |
First Trust S&P International Dividend Aristocrats ETF (FID) |
First Trust BuyWrite Income ETF (FTHI) |
First Trust Nasdaq BuyWrite Income ETF (FTQI) |
First Trust Rising Dividend Achievers ETF (RDVY) |
First Trust Dorsey Wright Focus 5 ETF (FV) |
First Trust RBA American Industrial Renaissance® ETF (AIRR) |
First Trust Dorsey Wright Momentum & Dividend ETF (DDIV) |
First Trust Dorsey Wright International Focus 5 ETF (IFV) |
First Trust Dorsey Wright Dynamic Focus 5 ETF (FVC) |
First Trust Indxx Innovative Transaction & Process ETF (LEGR) |
First Trust Nasdaq Artificial Intelligence and Robotics ETF (ROBT) |
First Trust International Developed Capital Strength ETF (FICS) |
First Trust Exchange-Traded Fund VI
Semi-Annual Report
March 31, 2024
Caution Regarding Forward-Looking Statements
This report contains certain forward-looking statements within the meaning of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements regarding the goals, beliefs, plans or current expectations of First Trust Advisors L.P. (“First Trust” or the “Advisor”) and its representatives, taking into account the information currently available to them. Forward-looking statements include all statements that do not relate solely to current or historical fact. For example, forward-looking statements include the use of words such as “anticipate,” “estimate,” “intend,” “expect,” “believe,” “plan,” “may,” “should,” “would” or other words that convey uncertainty of future events or outcomes.
Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of any series of First Trust Exchange-Traded Fund VI (the “Trust”) described in this report (each such series is referred to as a “Fund” and collectively, as the “Funds”) to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. When evaluating the information included in this report, you are cautioned not to place undue reliance on these forward-looking statements, which reflect the judgment of the Advisor and its representatives only as of the date hereof. We undertake no obligation to publicly revise or update these forward-looking statements to reflect events and circumstances that arise after the date hereof.
Performance and Risk Disclosure
There is no assurance that any Fund described in this report will achieve its investment objectives. Each Fund is subject to market risk, which is the possibility that the market values of securities owned by the Fund will decline and that the value of the Fund’s shares may therefore be less than what you paid for them. Accordingly, you can lose money by investing in a Fund. See “Risk Considerations” in the Additional Information section of this report for a discussion of certain other risks of investing in the Funds.
Performance data quoted represents past performance, which is no guarantee of future results, and current performance may be lower or higher than the figures shown. For the most recent month-end performance figures, please visit www.ftportfolios.com or speak with your financial advisor. Investment returns, net asset value and share price will fluctuate and Fund shares, when sold, may be worth more or less than their original cost.
The Advisor may also periodically provide additional information on Fund performance on each Fund’s webpage at www.ftportfolios.com.
This report contains information that may help you evaluate your investment. It includes details about each Fund and presents data and analysis that provide insight into each Fund’s performance and investment approach.
By reading the market overview by Robert F. Carey, Chief Market Strategist of the Advisor, you may obtain an understanding of how the market environment affected the performance of each Fund. The statistical information that follows may help you understand each Fund’s performance compared to that of relevant market benchmarks.
It is important to keep in mind that the opinions expressed by personnel of the Advisor are just that: informed opinions. They should not be considered to be promises or advice. The opinions, like the statistics, cover the period through the date on the cover of this report. The material risks of investing in each Fund are spelled out in its prospectus, statement of additional information, and other Fund regulatory filings.
First Trust Exchange-Traded Fund VI
Semi-Annual Letter from the Chairman and CEO
March 31, 2024
First Trust is pleased to provide you with the semi-annual report for certain series of the First Trust Exchange-Traded Fund VI (the “Funds”), which contains detailed information about the Funds for the six-month period ended March 31, 2024.
On March 21, 2024, the Swiss National Bank (“SNB”) unexpectedly announced a reduction of 25 basis points (“bps”) to its policy interest rate, lowering the metric from 1.75% to 1.50%. The move marked the SNB’s first interest rate cut in nine years and made Switzerland the first member of the so-called “Group of 10” (“G10”) to announce a policy rate reduction since the global battle with inflation began post COVID-19. Notably, the SNB’s announcement stood in stark contrast to the Bank of Japan’s revelation earlier in the same week that it would be raising interest rates for the first time in 17 years. Investors may be wondering why these two nations are undertaking divergent interest rate policies. From our perspective, the answer lies in the data. Despite recent disinflation, just two of the 11 countries that comprise the G10 boast headline inflation that lies below their target rate. Those countries are Denmark and Switzerland, with headline inflation of 0.8% and 1.0%, respectively. By contrast, headline inflation stood at 2.8% in Japan, above the Bank of Japan’s stated policy rate of 2.0%.
In the U.S., the trailing 12-month rate of the Consumer Price Index stood at 3.5% at the end of March 2024, down from its most-recent high of 9.1% at the end of June 2022, but up from its most recent low of 3.0% in June 2023. Continued inflationary pressures, along with better-than-expected economic data, continue to fuel the debate regarding the timing of interest rate cuts in the U.S. In December 2023, the Federal Reserve (the “Fed”) announced that they expected to implement three interest rate cuts for a total of 75 bps in 2024. The announcement was met with exuberance, sending the S&P 500® Index surging by 12.10% on a total return basis between December 13, 2023, the date of the Fed’s announcement, and the end of March 2024. That said, investors may have overestimated the timing of these cuts. On December 29, 2023, the Federal Funds rate futures market projected that the Fed would implement six rate cuts totaling 158 bps in 2024. As of the end of March 2024, that same futures market estimated that just two cuts, totaling 67 bps, were likely to occur by the end of the year.
Attention remains focused on the U.S. consumer, with reports that the current pace of spending may be unsustainable over the long-term. One justification for this view is recent analysis by the Federal Reserve Bank of San Francisco, which revealed that the excess savings consumers built up during the pandemic are likely to be completely drawn down in the first half of 2024. That said, the Fed also reported that U.S. household net worth surged by 3.2% on a quarter-over-quarter basis to a record $156.2 trillion in the fourth quarter of 2023. While it is true that many households are feeling the sting of persistent inflation, the increase in wealth brought on by surging equity valuations and home prices mitigated some of that pain, in our opinion.
Thank you for giving First Trust the opportunity to play a role in your financial future. We value our relationship with you and will report on the Funds again in six months.
Sincerely, James A. Bowen
Chairman of the Board of Trustees
Chief Executive Officer of First Trust Advisors L.P.
First Trust Exchange-Traded Fund VI
Semi-Annual Report
March 31, 2024
Robert F. Carey, CFA
Senior Vice President and Chief Market Strategist
First Trust Advisors L.P.
Mr. Carey is responsible for the overall management of research and analysis of the First Trust product line. Mr. Carey has more than 30 years of experience as an Equity and Fixed-Income Analyst and is a recipient of the Chartered Financial Analyst (“CFA”) designation. He is a graduate of the University of Illinois at Champaign-Urbana with a B.S. in Physics. He is also a member of the Investment Analysts Society of Chicago and the CFA Institute. Mr. Carey has appeared as a guest on such programs as Bloomberg TV, CNBC, and WBBM Radio, and has been quoted by several publications, including The Wall Street Journal, The Wall Street Reporter, Bloomberg News Service and Registered Rep.
State of the Global Economy/Investing
The latest global growth forecast from the International Monetary Fund (“IMF”) released in April 2024 sees real gross domestic product (“GDP”) rising by 3.2% worldwide in 2024, up from their forecast of 3.1% in January 2024. The IMF is forecasting a 2.7% increase in the U.S. GDP, up from its January 2024 estimate of 2.1%. The GDP in Emerging Market and Developing Economies is expected to grow by 4.2% this year, up from the IMF’s 4.1% estimate in January 2024. The IMF notes that its current global growth forecast remains below the historical average (2000-2019) of 3.8%, reflecting restrictive monetary policies and low productivity growth.
In the U.S., inflation, as measured by the Consumer Price Index (“CPI”), stood at 3.5% on a trailing 12-month basis at the end of March 2024, according to the U.S. Bureau of Labor Statistics. While it is true that the CPI decreased from its most recent high of 9.1% set in June 2022, the rate has increased from its most recent low of 3.0% set in June 2023.
Performance of Global Stocks and Bonds
The major U.S. stock indices were markedly higher over the past six months. The S&P 500® (the “Index”), S&P MidCap 400® and S&P SmallCap 600® Indices posted total returns of 23.48%, 22.78%, and 17.95%, respectively, for the six-month period ended March 31, 2024. Each of the 11 major sectors that comprise the Index were positive on a total return basis. The top performer was the Information Technology sector, up 32.03%, while the worst showing came from the Energy sector, which was up 5.80%.
A Bloomberg survey of twenty-one equity strategists found that their average 2024 year-end price target for the Index was 4,962 as of March 19, 2024. The highest and lowest estimates were 5,400 and 4,200, respectively. Brian Wesbury, Chief Economist at First Trust, announced in December 2023 that he is looking for a year-end price target of 4,500. The Index closed trading on March 28, 2024, at an all-time high of 5,254.35. The outlook for U.S. corporate earnings in 2024 is very strong. Bloomberg’s consensus year-over-year earnings growth rate estimates for the Index for the 2024 and 2025 calendar years stood at 8.99% and 13.34%, respectively, as of March 31, 2024.
The broader foreign stock indices experienced positive total returns over the past six months. For the six-month period ended March 31, 2024, the MSCI World ex USA and MSCI Emerging Markets equity indices posted total returns of 16.57% (USD) and 10.12% (USD), respectively, according to Bloomberg. The major foreign bond indices were also positive over the period. The Bloomberg Global Aggregate Bond Index of higher quality debt posted a total return of 6.17% (USD), while the Bloomberg EM Hard Currency Aggregate Index of emerging markets debt increased by 10.07% (USD), according to Bloomberg. The U.S. Dollar fell 1.59% over the past six months against a basket of major currencies, as measured by the U.S. Dollar Index (DXY).
The U.S. bond market also saw positive total returns. The top performing major debt group we track was long duration municipal bonds. The Bloomberg Municipal Long Bond Index (22+ Years) posted a total return of 10.78% for the six-month period ended March 31, 2024. The worst-performing U.S. debt group that we track was U.S. Treasuries. The Bloomberg U.S. Treasury Intermediate Index posted a total return of 3.69% over the period. The yield on the benchmark 10-Year Treasury Note (“T-Note”) fell by 37 basis points in the period to close at 4.20% on March 28, 2024, according to Bloomberg. For comparative purposes, the average yield on the 10-Year T-Note was 2.35% for the 10-year period ended March 31, 2024.
Fund Performance Overview (Unaudited)
First Trust NASDAQ Technology Dividend Index Fund (TDIV)
The First Trust NASDAQ Technology Dividend Index Fund (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 Technology DividendTM Index (the “Index”). The shares of the Fund are listed and trade on Nasdaq, Inc. under the ticker symbol “TDIV.” The Fund normally invests at least 90% of its net assets (including investment borrowings) in the securities that comprise the Index.
The Index includes up to 100 technology and telecommunications companies that pay a regular or common dividend. To be selected for the Index, a company must be classified as a technology or telecommunications company under the Industry Classification Benchmark and meet the size requirements of the Index. The Index may include U.S.-listed securities of non-U.S. companies, including depositary receipts and companies located in emerging market countries.
|
| | | Average Annual Total Returns | |
| | | | | Inception
(8/13/12)
to 3/31/24 | | | Inception
(8/13/12)
to 3/31/24 |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
Nasdaq Technology DividendTM Index | | | | | | | | |
| | | | | | | | |
S&P 500® Information Technology Index | | | | | | | | |
(See Notes to Fund Performance Overview on page 32.)
Nasdaq® and Nasdaq Technology DividendTM 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.
Fund Performance Overview (Unaudited) (Continued)
First Trust NASDAQ Technology Dividend Index Fund (TDIV) (Continued)
| % of Total
Long-Term
Investments |
| |
| |
| |
| |
| |
| Amount is less than 0.1%. |
| % of Total
Long-Term
Investments |
International Business Machines Corp. | |
| |
| |
| |
| |
| |
| |
Taiwan Semiconductor Manufacturing Co., Ltd., ADR | |
| |
Verizon Communications, Inc. | |
| |
| Performance figures assume reinvestment of all distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the indices do not actually hold a portfolio of securities and therefore do not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. The Fund’s past performance does not predict future performance. |
Frequency Distribution of Discounts and Premiums
Information showing the number of days the market price of the Fund’s shares was greater (at a premium) and less (at a discount) than the Fund’s net asset value for the most recently completed year, and the most recently completed calendar quarters since that year (or life of the Fund, if shorter) is available at https://www.ftportfolios.com/Retail/etf/home.aspx.
Fund Performance Overview (Unaudited) (Continued)
Multi-Asset Diversified Income Index Fund (MDIV)
The Multi-Asset Diversified Income Index Fund (the “Fund”) seeks investment results that correspond generally to the price and yield (before the Fund’s fees and expenses) of an index called the Nasdaq US Multi-Asset Diversified IncomeTM Index (the “Index”). The shares of the Fund are listed and trade on Nasdaq, Inc. under the ticker symbol “MDIV.” The Fund normally invests at least 90% of its net assets (including investment borrowings) in the common stocks and/or depositary receipts, real estate investment trusts (“REITs”), preferred securities, master limited partnerships (“MLPs”) and exchange-traded fund (“ETF”) that comprise the Index. The Index allocates 20% of its weight to the equity securities segment, 20% of its weight to the REIT segment, 20% of its weight to the preferred stocks segment, 20% of its weight to the MLP segment and 20% of its weight to an ETF that invests in high yield corporate debt securities. The ETF in which the Fund invests may be advised by First Trust Advisors L.P.
The Index is designed to provide exposure to five asset segments, each selected to result in a consistent and high yield for the Index. The Index is reconstituted and rebalanced quarterly and the Fund will make corresponding changes to its portfolio shortly after the Index changes are made public.
|
| | | Average Annual Total Returns | |
| | | | | Inception
(8/13/12)
to 3/31/24 | | | Inception
(8/13/12)
to 3/31/24 |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
Nasdaq US Multi-Asset Diversified IncomeTM Index | | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| The Dow Jones U.S. Select DividendTM Index represents 100 of the United States’ leading stocks by dividend yield. |
(See Notes to Fund Performance Overview on page 32.)
Nasdaq® and Nasdaq US Multi-Asset Diversified IncomeTM 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.
Fund Performance Overview (Unaudited) (Continued)
Multi-Asset Diversified Income Index Fund (MDIV) (Continued)
| % of Total
Long-Term
Investments |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| ETF with holdings representing multiple sectors. |
| % of Total
Long-Term
Investments |
First Trust Tactical High Yield ETF | |
| |
PennyMac Mortgage Investment Trust | |
Alliance Resource Partners, L.P. | |
| |
| |
Dorchester Minerals, L.P. | |
Black Stone Minerals, L.P. | |
| |
| |
| |
| Performance figures assume reinvestment of all distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the indices do not actually hold a portfolio of securities and therefore do not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. The Fund’s past performance does not predict future performance. |
Frequency Distribution of Discounts and Premiums
Information showing the number of days the market price of the Fund’s shares was greater (at a premium) and less (at a discount) than the Fund’s net asset value for the most recently completed year, and the most recently completed calendar quarters since that year (or life of the Fund, if shorter) is available at https://www.ftportfolios.com/Retail/etf/home.aspx.
Fund Performance Overview (Unaudited) (Continued)
First Trust S&P International Dividend Aristocrats ETF (FID)
The First Trust S&P International Dividend Aristocrats ETF (the “Fund”) seeks investment results that correspond generally to the price and yield (before the Fund’s fees and expenses) of an index called the S&P International Dividend Aristocrats Index (the “Index”). The shares of the Fund are listed and trade on Nasdaq, Inc. under the ticker symbol “FID.” Under normal conditions, the Fund will invest at least 90% of its net assets (including investment borrowings) in the securities that comprise the Index. The Index measures the performance of high dividend yielding companies that have followed a managed-dividends policy of increasing or maintaining dividends for at least ten consecutive years.
|
| | | Average Annual Total Returns | |
| | | | | Inception
(8/22/13)
to 3/31/24 | | | Inception
(8/22/13)
to 3/31/24 |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
S&P International Dividend | | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| On August 30, 2018, the Fund’s underlying index changed from the Nasdaq International Multi-Asset Diversified IncomeTM Index to the S&P International Dividend Aristocrats Index (the “Index”). Therefore, the Fund’s performance and historical returns shown for the periods prior to August 30, 2018, are not necessarily indicative of the performance that the Fund, based on its current index, would have generated. Since the Index had an inception date of April 30, 2018, it was not in existence for all of the periods disclosed. The old index was terminated on November 23, 2018, so performance data does not exist for these time periods. |
| The Dow Jones EPAC Select DividendTM Index measures the performance of a selected group of companies, from non-U.S. developed markets (Europe, Pacific Asia, and Canada), that have provided relatively high dividend yields on a consistent basis over time. |
(See Notes to Fund Performance Overview on page 32.)
S&P International Dividend Aristocrats Index (“Index”) is a product of S&P Dow Jones Indices, LLC or its affiliates (“SPDJI”) and has been licensed for use by First Trust. S&P® is a registered trademark of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by First Trust. The Fund is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P or their respective affiliates and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the Index.
Fund Performance Overview (Unaudited) (Continued)
First Trust S&P International Dividend Aristocrats ETF (FID) (Continued)
| % of Total
Long-Term
Investments |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| % of Total
Long-Term
Investments |
| |
Henderson Land Development Co., Ltd. | |
| |
| |
Ping An Insurance Group Co. of China Ltd., Class H | |
| |
| |
Power Assets Holdings Ltd. | |
| |
Legal & General Group PLC | |
| |
| Performance figures assume reinvestment of all distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the indices do not actually hold a portfolio of securities and therefore do not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. The Fund’s past performance does not predict future performance. |
Frequency Distribution of Discounts and Premiums
Information showing the number of days the market price of the Fund’s shares was greater (at a premium) and less (at a discount) than the Fund’s net asset value for the most recently completed year, and the most recently completed calendar quarters since that year (or life of the Fund, if shorter) is available at https://www.ftportfolios.com/Retail/etf/home.aspx.
Fund Performance Overview (Unaudited) (Continued)
First Trust BuyWrite Income ETF (FTHI)
The First Trust BuyWrite Income ETF (the “Fund”) is an actively managed exchange-traded fund. The Fund’s primary investment objective is to provide current income. The Fund’s secondary investment objective is to provide capital appreciation. Under normal market conditions, the Fund invests primarily in equity securities listed on U.S. exchanges. The Fund also employs an “option strategy” in which it will write (sell) U.S. exchange-traded call options on the S&P 500® Index (the “Index”) to seek additional cash flow in the form of premiums on the options that may be distributed to shareholders on a monthly basis. The equity securities held by the Fund are selected using a mathematical optimization process which attempts to favor higher dividend paying common stocks for the Fund’s portfolio. The shares of the Fund are listed and trade on Nasdaq, Inc. under the ticker symbol “FTHI.”
Portfolio Management Team
Portfolio management decisions are made under the direction of the following Portfolio Managers:
John Gambla, CFA, FRM, PRM, Senior Portfolio Manager of First Trust
Rob A. Guttschow, CFA, Senior Portfolio Manager of First Trust
Each portfolio manager has served in such capacity for the Fund since 2014.
|
| | | Average Annual Total Returns | |
| | | | | Inception
(1/6/14)
to 3/31/24 | | | Inception
(1/6/14)
to 3/31/24 |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| The CBOE S&P 500 BuyWrite Monthly Index is a benchmark index designed to track the performance of a hypothetical buy-write strategy on the S&P 500® Index. |
(See Notes to Fund Performance Overview on page 32.)
Fund Performance Overview (Unaudited) (Continued)
First Trust BuyWrite Income ETF (FTHI) (Continued)
| % of Total
Long-Term
Investments |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
Net Other Assets and Liabilities | |
| |
| % of Total
Long-Term
Investments |
| |
| |
| |
| |
Meta Platforms, Inc., Class A | |
| |
| |
Berkshire Hathaway, Inc., Class B | |
| |
| |
| |
| Performance figures assume reinvestment of all distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the indices do not actually hold a portfolio of securities and therefore do not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. The Fund’s past performance does not predict future performance. |
Frequency Distribution of Discounts and Premiums
Information showing the number of days the market price of the Fund’s shares was greater (at a premium) and less (at a discount) than the Fund’s net asset value for the most recently completed year, and the most recently completed calendar quarters since that year (or life of the Fund, if shorter) is available at https://www.ftportfolios.com/Retail/etf/home.aspx.
Fund Performance Overview (Unaudited) (Continued)
First Trust Nasdaq BuyWrite Income ETF (FTQI)
The First Trust Nasdaq BuyWrite Income ETF (the “Fund”) is an actively managed exchange-traded fund. The Fund’s investment objective is to provide current income. Under normal market conditions, the Fund will pursue its investment objective by investing primarily in equity securities listed on U.S. exchanges and by utilizing an “option strategy” consisting of writing (selling) U.S. exchange-traded call options on the Nasdaq-100 Index®. Under normal market conditions, the Fund will invest at least 80% of its net assets (plus any borrowings for investment purposes) in the components of the Nasdaq CompositeTM Index. The Fund will employ an option strategy in which it will write U.S. exchange-traded call options on the Nasdaq-100 Index® in order to seek additional cash flow in the form of premiums on the options. A premium is the income received by an investor who sells an option contract to another party. In exchange for the premiums received in connection with its written U.S. exchange-traded call options on the Nasdaq-100 Index®, the Fund forfeits any upside potential of the Nasdaq-100 Index® above the strike price of the written call options. It is expected that the Fund will distribute premiums to shareholders on a monthly basis. The premiums received from the sale of call options are expected to be the Fund’s primary source of income. Under normal market conditions, the Fund will seek to distribute the majority of the option premiums collected. The Fund does not target a specific income level, but seeks to provide investors with current income primarily from options premiums through writing calls with a notional value of 50-100% of the Fund’s assets. The shares of the Fund are listed and trade on Nasdaq, Inc. under the ticker symbol “FTQI.”
Portfolio Management Team
The following persons serve as portfolio managers of the Fund.
John Gambla, CFA, FRM, PRM, Senior Portfolio Manager of First Trust
Rob A. Guttschow, CFA, Senior Portfolio Manager of First Trust
Each portfolio manager has served in such capacity since 2014.
|
| | | Average Annual Total Returns | |
| | | | | Inception
(1/6/14)
to 3/31/24 | | | Inception
(1/6/14)
to 3/31/24 |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| The Cboe Nasdaq-100 BuyWriteTM Index is a benchmark index designed to track the performance of a hypothetical buy-write strategy on the Nasdaq-100 Index®. The index is a passive total return index based on (1) buying the Nasdaq-100 Index® stock index portfolio, and (2) “writing” (or selling) the near-term Nasdaq-100 Index® “covered” call option. |
| On May 11, 2022, the Fund’s primary benchmark changed from the S&P 500® Index to the Nasdaq-100 Index® because the Advisor believes that the Nasdaq-100 Index® better reflects the investment strategies of the Fund. |
(See Notes to Fund Performance Overview on page 32.)
Fund Performance Overview (Unaudited) (Continued)
First Trust Nasdaq BuyWrite Income ETF (FTQI) (Continued)
| % of Total
Long-Term
Investments |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
Net Other Assets and Liabilities | |
| |
| % of Total
Long-Term
Investments |
| |
| |
| |
| |
| |
Meta Platforms, Inc., Class A | |
| |
Advanced Micro Devices, Inc. | |
| |
| |
| |
| Performance figures assume reinvestment of all distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the indices do not actually hold a portfolio of securities and therefore do not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. The Fund’s past performance does not predict future performance. |
Frequency Distribution of Discounts and Premiums
Information showing the number of days the market price of the Fund’s shares was greater (at a premium) and less (at a discount) than the Fund’s net asset value for the most recently completed year, and the most recently completed calendar quarters since that year (or life of the Fund, if shorter) is available at https://www.ftportfolios.com/Retail/etf/home.aspx.
Fund Performance Overview (Unaudited) (Continued)
First Trust Rising Dividend Achievers ETF (RDVY)
The First Trust Rising Dividend Achievers ETF (the “Fund”) seeks investment results that correspond generally to the price and yield (before the Fund’s fees and expenses) of an index called the Nasdaq US Rising Dividend AchieversTM Index (the “Index”). The Fund normally invests at least 90% of its net assets (including investment borrowings) in the securities that comprise the Index. The Index includes 50 U.S. exchange-traded equity securities, including securities issued by non-U.S. companies that trade on U.S. securities exchanges in the form of depositary receipts. The Index is designed to provide access to a diversified portfolio of small, mid and large capitalization companies with a history of raising their dividends while exhibiting the characteristics to continue to do so in the future by including companies with strong cash balances, low debt and increasing earnings. The shares of the Fund are listed and trade on Nasdaq, Inc. under the ticker symbol “RDVY.”
|
| | | Average Annual Total Returns | |
| | | | | Inception
(1/6/14)
to 3/31/24 | | | Inception
(1/6/14)
to 3/31/24 |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
Nasdaq US Rising Dividend AchieversTM Index | | | | | | | | |
| | | | | | | | |
| The Dow Jones U.S. Select DividendTM Index represents 100 of the United States’ leading stocks by dividend yield. |
(See Notes to Fund Performance Overview on page 32.)
Nasdaq® and Nasdaq US Rising Dividend AchieversTM 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.
Fund Performance Overview (Unaudited) (Continued)
First Trust Rising Dividend Achievers ETF (RDVY) (Continued)
| % of Total
Long-Term
Investments |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| % of Total
Long-Term
Investments |
| |
| |
| |
Capital One Financial Corp. | |
Discover Financial Services | |
Magnolia Oil & Gas Corp., Class A | |
| |
| |
Jackson Financial, Inc., Class A | |
| |
| |
| Performance figures assume reinvestment of all distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the indices do not actually hold a portfolio of securities and therefore do not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. The Fund’s past performance does not predict future performance. |
Frequency Distribution of Discounts and Premiums
Information showing the number of days the market price of the Fund’s shares was greater (at a premium) and less (at a discount) than the Fund’s net asset value for the most recently completed year, and the most recently completed calendar quarters since that year (or life of the Fund, if shorter) is available at https://www.ftportfolios.com/Retail/etf/home.aspx.
Fund Performance Overview (Unaudited) (Continued)
First Trust Dorsey Wright Focus 5 ETF (FV)
The First Trust Dorsey Wright Focus 5 ETF (the “Fund”) seeks investment results that correspond generally to the price and yield (before the Fund’s fees and expenses) of an index called the Dorsey Wright Focus FiveTM Index (the “Index”). The Fund normally invests at least 90% of its net assets (including investment borrowings) in the exchange-traded funds (“ETFs”) that comprise the Index. The ETFs comprising the Index selection universe are advised by First Trust Advisors L.P. (“First Trust”), the Fund’s investment advisor. The Index is constructed pursuant to Dorsey, Wright & Associates, LLC’s (the “Index Provider”) proprietary methodology, which takes into account the performance of each of the First Trust sector-based ETFs relative to one another. The Index is designed to provide targeted exposure to the five First Trust sector-based ETFs that the Index Provider believes offer the greatest potential to outperform the other ETFs in the selection universe and that satisfy certain trading volume and liquidity requirements. The shares of the Fund are listed and trade on Nasdaq, Inc. under the ticker symbol “FV.”
|
| | | Average Annual Total Returns | |
| | | | | Inception
(3/5/14)
to 3/31/24 | | | Inception
(3/5/14)
to 3/31/24 |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
Dorsey Wright Focus FiveTM Index | | | | | | | | |
| | | | | | | | |
(See Notes to Fund Performance Overview on page 32.)
Nasdaq® and Dorsey Wright Focus FiveTM 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.
Fund Performance Overview (Unaudited) (Continued)
First Trust Dorsey Wright Focus 5 ETF (FV) (Continued)
| Performance figures assume reinvestment of all distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the indices do not actually hold a portfolio of securities and therefore do not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. The Fund’s past performance does not predict future performance. |
Frequency Distribution of Discounts and Premiums
Information showing the number of days the market price of the Fund’s shares was greater (at a premium) and less (at a discount) than the Fund’s net asset value for the most recently completed year, and the most recently completed calendar quarters since that year (or life of the Fund, if shorter) is available at https://www.ftportfolios.com/Retail/etf/home.aspx.
Fund Performance Overview (Unaudited) (Continued)
First Trust RBA American Industrial Renaissance® ETF (AIRR)
The First Trust RBA American Industrial Renaissance® ETF (the “Fund”) seeks investment results that correspond generally to the price and yield (before the Fund’s fees and expenses) of an index called the Richard Bernstein Advisors American Industrial Renaissance® Index (the “Index”). The Fund normally invests at least 90% of its net assets (including investment borrowings) in the securities that comprise the Index. The Index is designed to measure the performance of small- and mid-cap U.S. companies in the industrial and community banking sectors. The shares of the Fund are listed and trade on Nasdaq, Inc. under the ticker symbol “AIRR.”
|
| | | Average Annual Total Returns | |
| | | | | Inception
(3/10/14)
to 3/31/24 | | | Inception
(3/10/14)
to 3/31/24 |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
Richard Bernstein Advisors American Industrial Renaissance® Index | | | | | | | | |
| | | | | | | | |
S&P 500® Industrials Index | | | | | | | | |
| | | | | | | | |
(See Notes to Fund Performance Overview on page 32.)
Richard Bernstein Advisors and Richard Bernstein Advisors American Industrial Renaissance® Index (“Index”) are trademarks and trade names of Richard Bernstein Advisors (“RBA”). The Fund is not sponsored, endorsed, sold or promoted by RBA and RBA makes no representation or warranty, express or implied, to the owners of the Fund or any member of the public regarding the advisability of trading in the Fund. RBA’s only relationship to First Trust is the licensing of certain trademarks and trade names of RBA and of the Index, which is determined, composed and calculated by RBA without regard to First Trust or the Fund. RBA has no obligation to take the needs of First Trust or the owners of the Fund into consideration in determining, composing or calculating the Index. RBA is not responsible for and has not participated in the determination of the timing of, prices at, or quantities of the Fund to be listed or in the determination or calculation of the equation by which the Fund is to be converted into cash. RBA has no obligation or liability in connection with the administration, marketing or trading of the Fund.
Fund Performance Overview (Unaudited) (Continued)
First Trust RBA American Industrial Renaissance® ETF (AIRR) (Continued)
| % of Total
Long-Term
Investments |
| |
| |
| |
| % of Total
Long-Term
Investments |
| |
| |
| |
Comfort Systems USA, Inc. | |
Sterling Infrastructure, Inc. | |
| |
MDU Resources Group, Inc. | |
| |
| |
| |
| |
| Performance figures assume reinvestment of all distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the indices do not actually hold a portfolio of securities and therefore do not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. The Fund’s past performance does not predict future performance. |
Frequency Distribution of Discounts and Premiums
Information showing the number of days the market price of the Fund’s shares was greater (at a premium) and less (at a discount) than the Fund’s net asset value for the most recently completed year, and the most recently completed calendar quarters since that year (or life of the Fund, if shorter) is available at https://www.ftportfolios.com/Retail/etf/home.aspx.
Fund Performance Overview (Unaudited) (Continued)
First Trust Dorsey Wright Momentum & Dividend ETF (DDIV)
The First Trust Dorsey Wright Momentum & Dividend ETF (the “Fund”) seeks investment results that correspond generally to the price and yield (before the Fund’s fees and expenses) of an index called the Dorsey Wright Momentum Plus Dividend YieldTM Index (the “Index”). Under normal conditions, the Fund invests at least 90% of its net assets (including investment borrowings) in the securities that comprise the Index. The Index is a rules-based equity index designed to track the overall performance of the 50 stocks with the highest dividend yield comprising the Nasdaq US Large Mid™ Index that still maintain high levels of “relative strength.” A relative strength analysis is a momentum-based investment strategy that emphasizes a security’s forward price momentum in the security selection process. The Fund, using an indexing investment approach, attempts to replicate, before fees and expenses, the performance of the Index. The shares of the Fund are listed and trade on Nasdaq, Inc. under the ticker symbol “DDIV.”
|
| | | Average Annual Total Returns | |
| | | | | Inception
(3/10/14)
to 3/31/24 | | | Inception
(3/10/14)
to 3/31/24 |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
Dorsey Wright Momentum Plus Dividend YieldTM | | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| On September 6, 2018, the Fund’s underlying index changed from the Richard Bernstein Advisors Quality Income Index to the Dorsey Wright Momentum Plus Dividend YieldTM Index (the “Index”). Therefore, the Fund’s performance and historical returns shown for the periods prior to September 6, 2018, are not necessarily indicative of the performance that the Fund, based on its current index, would have generated. Since the Index had an inception date of July 2, 2018, it was not in existence for all of the periods disclosed. |
| The Dow Jones U.S. Select DividendTM Index represents 100 of the United States’ leading stocks by dividend yield. |
(See Notes to Fund Performance Overview on page 32.)
Nasdaq® and Dorsey Wright Momentum Plus Dividend YieldTM 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.
Fund Performance Overview (Unaudited) (Continued)
First Trust Dorsey Wright Momentum & Dividend ETF (DDIV) (Continued)
| % of Total
Long-Term
Investments |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| % of Total
Long-Term
Investments |
| |
| |
Starwood Property Trust, Inc. | |
Simon Property Group, Inc. | |
| |
Lamar Advertising Co., Class A | |
Dick’s Sporting Goods, Inc. | |
| |
| |
| |
| |
| Performance figures assume reinvestment of all distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the indices do not actually hold a portfolio of securities and therefore do not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. The Fund’s past performance does not predict future performance. |
Frequency Distribution of Discounts and Premiums
Information showing the number of days the market price of the Fund’s shares was greater (at a premium) and less (at a discount) than the Fund’s net asset value for the most recently completed year, and the most recently completed calendar quarters since that year (or life of the Fund, if shorter) is available at https://www.ftportfolios.com/Retail/etf/home.aspx.
Fund Performance Overview (Unaudited) (Continued)
First Trust Dorsey Wright International Focus 5 ETF (IFV)
The First Trust Dorsey Wright International Focus 5 ETF (the “Fund”) seeks investment results that correspond generally to the price and yield (before the Fund’s fees and expenses) of an index called the Dorsey Wright International Focus FiveTM Index (the “Index”). The Fund normally invests at least 90% of its net assets (including investment borrowings) in the exchange-traded funds (“ETFs”) that comprise the Index. The ETFs comprising the Index selection universe are advised by First Trust Advisors L.P. (“First Trust”), the Fund’s investment advisor. The Index is constructed pursuant to Dorsey, Wright & Associates, LLC’s (the “Index Provider”) proprietary methodology, which takes into account the performance of certain First Trust international ETFs relative to one another. The Index is designed to provide targeted exposure to the five First Trust country/region-based ETFs that the Index Provider believes offer the greatest potential to outperform the other ETFs in the selection universe. The shares of the Fund are listed and trade on Nasdaq, Inc. under the ticker symbol “IFV.”
|
| | | Average Annual Total Returns | |
| | | | Inception
(7/22/14)
to 3/31/24 | | Inception
(7/22/14)
to 3/31/24 |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Dorsey Wright International Focus FiveTM Index | | | | | | |
| | | | | | |
(See Notes to Fund Performance Overview on page 32.)
Nasdaq® and Dorsey Wright International Focus FiveTM 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.
Fund Performance Overview (Unaudited) (Continued)
First Trust Dorsey Wright International Focus 5 ETF (IFV) (Continued)
| Performance figures assume reinvestment of all distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the indices do not actually hold a portfolio of securities and therefore do not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. The Fund’s past performance does not predict future performance. |
Frequency Distribution of Discounts and Premiums
Information showing the number of days the market price of the Fund’s shares was greater (at a premium) and less (at a discount) than the Fund’s net asset value for the most recently completed year, and the most recently completed calendar quarters since that year (or life of the Fund, if shorter) is available at https://www.ftportfolios.com/Retail/etf/home.aspx.
Fund Performance Overview (Unaudited) (Continued)
First Trust Dorsey Wright Dynamic Focus 5 ETF (FVC)
The First Trust Dorsey Wright Dynamic Focus 5 ETF (the “Fund”) seeks investment results that correspond generally to the price and yield (before the Fund’s fees and expenses) of an index called the Dorsey Wright Dynamic Focus FiveTM Index (the “Index”). The Fund normally invests at least 80% of its net assets (including investment borrowings) in the exchange-traded funds (“ETFs”) that comprise the Index, including the First Trust Enhanced Short Maturity ETF (“FTSM”), an ultra-short duration ETF. The ETFs comprising the Index selection universe are advised by First Trust Advisors L.P. (“First Trust”), the Fund’s investment advisor. The Index is constructed pursuant to Dorsey, Wright & Associates, LLC’s (the “Index Provider”) proprietary methodology, which takes into account the performance of each of the First Trust sector and industry-based ETFs relative to one another. The Index is designed to provide targeted exposure to the five First Trust sector and industry-based ETFs that the Index Provider determines offer the greatest potential to outperform the other First Trust sector and industry-based ETFs and that satisfy certain trading volume and liquidity requirements. In addition to the First Trust sector and industry-based ETFs, the Index may select FTSM. FTSM is also evaluated and its inclusion and weight in the Index is adjusted based upon its rank relative to the selection universe of sector and industry-based ETFs chosen by the Index. The shares of the Fund are listed and trade on Nasdaq, Inc. under the ticker symbol “FVC.”
|
| | | Average Annual Total Returns | |
| | | | Inception
(3/17/16)
to 3/31/24 | | Inception
(3/17/16)
to 3/31/24 |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Dorsey Wright Dynamic Focus FiveTM Index | | | | | | |
| | | | | | |
(See Notes to Fund Performance Overview on page 32.)
Nasdaq® and Dorsey Wright Focus FiveTM 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.
Fund Performance Overview (Unaudited) (Continued)
First Trust Dorsey Wright Dynamic Focus 5 ETF (FVC) (Continued)
| Performance figures assume reinvestment of all distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the indices do not actually hold a portfolio of securities and therefore do not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. The Fund’s past performance does not predict future performance. |
Frequency Distribution of Discounts and Premiums
Information showing the number of days the market price of the Fund’s shares was greater (at a premium) and less (at a discount) than the Fund’s net asset value for the most recently completed year, and the most recently completed calendar quarters since that year (or life of the Fund, if shorter) is available at https://www.ftportfolios.com/Retail/etf/home.aspx.
Fund Performance Overview (Unaudited) (Continued)
First Trust Indxx Innovative Transaction & Process ETF (LEGR)
The First Trust Indxx Innovative Transaction & Process ETF (the “Fund”) seeks investment results that correspond generally to the price and yield (before the Fund’s fees and expenses) of an index called the Indxx Blockchain Index (the “Index”). The Fund will normally invest at least 90% of its net assets (including investment borrowings) in the securities that comprise the Index. The Index is designed to track the performance of companies that are either actively using, investing in, developing, or have products that are poised to benefit from blockchain technology and/or the potential for increased efficiency that it provides to various business processes. The Index seeks to include only companies that have devoted material resources to the use of blockchain technologies. The shares of the Fund are listed and traded on Nasdaq, Inc., under the ticker symbol “LEGR.”
|
| | | Average Annual Total Returns | |
| | | | Inception
(1/24/18)
to 3/31/24 | | Inception
(1/24/18)
to 3/31/24 |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
(See Notes to Fund Performance Overview on page 32.)
Indxx and Indxx Blockchain Index (“Index”) are trademarks of Indxx, Inc. (“Indxx”) and have been licensed for use for certain purposes by First Trust. The Fund is not sponsored, endorsed, sold or promoted by Indxx, and Indxx makes no representation regarding the advisability of trading in such product. The Index is determined, composed and calculated by Indxx without regard to First Trust or the Fund.
Fund Performance Overview (Unaudited) (Continued)
First Trust Indxx Innovative Transaction & Process ETF (LEGR) (Continued)
| % of Total
Long-Term
Investments |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| % of Total
Long-Term
Investments |
| |
| |
| |
Samsung Electronics Co., Ltd. | |
| |
| |
| |
Emirates Telecommunications Group Co. PJSC | |
| |
Mastercard, Inc., Class A | |
| |
| Performance figures assume reinvestment of all distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the indices do not actually hold a portfolio of securities and therefore do not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. The Fund’s past performance does not predict future performance. |
Frequency Distribution of Discounts and Premiums
Information showing the number of days the market price of the Fund’s shares was greater (at a premium) and less (at a discount) than the Fund’s net asset value for the most recently completed year, and the most recently completed calendar quarters since that year (or life of the Fund, if shorter) is available at https://www.ftportfolios.com/Retail/etf/home.aspx.
Fund Performance Overview (Unaudited) (Continued)
First Trust Nasdaq Artificial Intelligence and Robotics ETF (ROBT)
The First Trust Nasdaq Artificial Intelligence and Robotics ETF (the “Fund”) seeks investment results that correspond generally to the price and yield (before the Fund’s fees and expenses) of an index called the Nasdaq CTA Artificial Intelligence and RoboticsTM Index (the “Index”). The Fund will normally invest at least 90% of its net assets (including investment borrowings) in the securities that comprise the Index. The Index is designed to track the performance of companies engaged in the artificial intelligence and robotics segments of the technology, industrial and other economic sectors. The shares of the Fund are listed and traded on Nasdaq, Inc., under the ticker symbol “ROBT.”
|
| | | Average Annual Total Returns | |
| | | | Inception
(2/21/18)
to 3/31/24 | | Inception
(2/21/18)
to 3/31/24 |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Nasdaq CTA Artificial Intelligence and RoboticsTM Index | | | | | | |
| | | | | | |
(See Notes to Fund Performance Overview on page 32.)
Nasdaq® and Nasdaq CTA Artificial Intelligence and RoboticsTM 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.
Fund Performance Overview (Unaudited) (Continued)
First Trust Nasdaq Artificial Intelligence and Robotics ETF (ROBT) (Continued)
| % of Total
Long-Term
Investments |
| |
| |
| |
| |
| |
| |
| |
| |
| % of Total
Long-Term
Investments |
Mobileye Global, Inc., Class A | |
| |
| |
| |
| |
| |
| |
| |
| |
Cadence Design Systems, Inc. | |
| |
| Performance figures assume reinvestment of all distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the indices do not actually hold a portfolio of securities and therefore do not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. The Fund’s past performance does not predict future performance. |
Frequency Distribution of Discounts and Premiums
Information showing the number of days the market price of the Fund’s shares was greater (at a premium) and less (at a discount) than the Fund’s net asset value for the most recently completed year, and the most recently completed calendar quarters since that year (or life of the Fund, if shorter) is available at https://www.ftportfolios.com/Retail/etf/home.aspx.
Fund Performance Overview (Unaudited) (Continued)
First Trust International Developed Capital Strength ETF (FICS)
The First Trust International Developed Capital Strength ETF (the “Fund”) seeks investment results that correspond generally to the price and yield (before the Fund’s fees and expenses) of an index called The International Developed Capital StrengthTM Index (the “Index”). The Fund seeks to achieve its investment objective by investing, under normal market conditions, at least 90% of its net assets (including investment borrowings) in the securities that comprise the Index. The Index seeks to provide exposure to
well-capitalized companies in the developed markets outside of the U.S. with strong market positions that have the potential to provide a greater degree of stability and performance over time. The shares of the Fund are listed and traded on Nasdaq, Inc., under the ticker symbol “FICS.”
|
| | | Average Annual Total Returns | |
| | | Inception
(12/15/20)
to 3/31/24 | Inception
(12/15/20)
to 3/31/24 |
| | | | |
| | | | |
| | | | |
| | | | |
The International Developed Capital StrengthTM Index | | | | |
| | | | |
(See Notes to Fund Performance Overview on page 32.)
Nasdaq® and The International Developed Capital StrengthTM 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.
Fund Performance Overview (Unaudited) (Continued)
First Trust International Developed Capital Strength ETF (FICS) (Continued)
| % of Total
Long-Term
Investments |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| % of Total
Long-Term
Investments |
Shin-Etsu Chemical Co., Ltd. | |
| |
| |
Industria de Diseno Textil S.A. | |
| |
| |
| |
| |
| |
Japan Exchange Group, Inc. | |
| |
| Performance figures assume reinvestment of all distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the indices do not actually hold a portfolio of securities and therefore do not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. The Fund’s past performance does not predict future performance. |
Frequency Distribution of Discounts and Premiums
Information showing the number of days the market price of the Fund’s shares was greater (at a premium) and less (at a discount) than the Fund’s net asset value for the most recently completed year, and the most recently completed calendar quarters since that year (or life of the Fund, if shorter) is available at https://www.ftportfolios.com/Retail/etf/home.aspx.
Notes to Fund Performance Overview (Unaudited)
Total returns for the periods since inception are calculated from the inception date of each Fund. “Average Annual Total Returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative Total Returns” represent the total change in value of an investment over the periods indicated.
Each Fund’s per share net asset value (“NAV”) is the value of one share of the Fund and is computed by dividing the value of all assets of the Fund (including accrued interest and dividends), less all liabilities (including accrued expenses and dividends declared but unpaid), by the total number of outstanding shares. The price used to calculate market return (“Market Price”) is determined by using the midpoint of the national best bid and offer price (“NBBO”) as of the time that the Fund’s NAV is calculated. Under Securities and Exchange Commission rules, the NBBO consists of the highest displayed buy and lowest sell prices among the various exchanges trading the Fund at the time the Fund’s NAV is calculated. Prior to January 1, 2019, the price used was the midpoint between the highest bid and the lowest offer on the stock exchange on which shares of the Fund were listed for trading as of the time that the Fund’s NAV was calculated. Since shares of each Fund did not trade in the secondary market until after its inception, for the period from inception to the first day of secondary market trading in shares of the Fund, the NAV of each Fund is used as a proxy for the secondary market trading price to calculate market returns. NAV and market returns assume that all distributions have been reinvested in each Fund at NAV and Market Price, respectively.
An index is a statistical composite that tracks a specified financial market or sector. Unlike each Fund, the indices do not actually hold a portfolio of securities and therefore do not incur the expenses incurred by each Fund. These expenses negatively impact the performance of each Fund. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower. The total returns presented reflect the reinvestment of dividends on securities in the indices. The returns presented do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. The investment return and principal value of shares of each Fund will vary with changes in market conditions. Shares of each Fund may be worth more or less than their original cost when they are redeemed or sold in the market. Each Fund’s past performance is no guarantee of future performance.
First Trust Exchange-Traded Fund VIUnderstanding Your Fund ExpensesMarch 31, 2024 (Unaudited) As a shareholder of First Trust NASDAQ Technology Dividend Index Fund, Multi-Asset Diversified Income Index Fund, First Trust S&P International Dividend Aristocrats ETF, First Trust BuyWrite Income ETF, First Trust Nasdaq BuyWrite Income ETF, First Trust Rising Dividend Achievers ETF, First Trust Dorsey Wright Focus 5 ETF, First Trust RBA American Industrial Renaissance® ETF, First Trust Dorsey Wright Momentum & Dividend ETF, First Trust Dorsey Wright International Focus 5 ETF, First Trust Dorsey Wright Dynamic Focus 5 ETF, First Trust Indxx Innovative Transaction & Process ETF, First Trust Nasdaq Artificial Intelligence and Robotics ETF, or First Trust International Developed Capital Strength ETF (each a “Fund” and collectively, the “Funds”), you incur two types of costs: (1) transaction costs; and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, if any, and other Fund expenses. This Example is intended to help you understand your ongoing costs (in U.S. dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held through the six-month period ended March 31, 2024.
The first line in the following table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During the Six-Month Period” to estimate the expenses you paid on your account during this six-month period.
Hypothetical Example for Comparison Purposes
The second line in the following table provides information about hypothetical account values and hypothetical expenses based on each Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not each Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs such as brokerage commissions. Therefore, the second line in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| Beginning
Account Value
October 1, 2023 | Ending
Account Value
March 31, 2024 | Annualized
Expense Ratio
Based on the
Six-Month
Period | Expenses Paid
During the
Six-Month
Period (a) |
First Trust NASDAQ Technology Dividend Index Fund (TDIV) |
| | | | |
Hypothetical (5% return before expenses) | | | | |
Multi-Asset Diversified Income Index Fund (MDIV) (b) (c) |
| | | | |
Hypothetical (5% return before expenses) | | | | |
First Trust S&P International Dividend Aristocrats ETF (FID) |
| | | | |
Hypothetical (5% return before expenses) | | | | |
First Trust BuyWrite Income ETF (FTHI) |
| | | | |
Hypothetical (5% return before expenses) | | | | |
First Trust Nasdaq BuyWrite Income ETF (FTQI) |
| | | | |
Hypothetical (5% return before expenses) | | | | |
First Trust Rising Dividend Achievers ETF (RDVY) |
| | | | |
Hypothetical (5% return before expenses) | | | | |
First Trust Exchange-Traded Fund VIUnderstanding Your Fund Expenses (Continued)March 31, 2024 (Unaudited) | Beginning Account Value October 1, 2023 | Ending Account Value March 31, 2024 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During the Six-Month Period (a) |
First Trust Dorsey Wright Focus 5 ETF (FV) (b) |
| | | | |
Hypothetical (5% return before expenses) | | | | |
First Trust RBA American Industrial Renaissance® ETF (AIRR) |
| | | | |
Hypothetical (5% return before expenses) | | | | |
First Trust Dorsey Wright Momentum & Dividend ETF (DDIV) |
| | | | |
Hypothetical (5% return before expenses) | | | | |
First Trust Dorsey Wright International Focus 5 ETF (IFV) (b) |
| | | | |
Hypothetical (5% return before expenses) | | | | |
First Trust Dorsey Wright Dynamic Focus 5 ETF (FVC) (b) |
| | | | |
Hypothetical (5% return before expenses) | | | | |
First Trust Indxx Innovative Transaction & Process ETF (LEGR) |
| | | | |
Hypothetical (5% return before expenses) | | | | |
First Trust Nasdaq Artificial Intelligence and Robotics ETF (ROBT) |
| | | | |
Hypothetical (5% return before expenses) | | | | |
First Trust International Developed Capital Strength ETF (FICS) |
| | | | |
Hypothetical (5% return before expenses) | | | | |
| Expenses are equal to the annualized expense ratio as indicated in the table multiplied by the average account value over the period (October 1, 2023 through March 31, 2024), multiplied by 183/366 (to reflect the six-month period). |
| Annualized expense ratio and expenses paid during the six-month period do not include fees and expenses of the underlying funds in which the Fund invests. |
| MDIV expense ratios reflect an expense waiver. See Note 3 in the Notes to Financial Statements. |
First Trust NASDAQ Technology Dividend Index Fund (TDIV)Portfolio of InvestmentsMarch 31, 2024 (Unaudited)
| | |
|
| | |
| | |
| | |
| | |
| Telefonaktiebolaget LM Ericsson, ADR | |
| | |
| | |
| Diversified Telecommunication | |
| | |
| | |
| | |
| Cogent Communications Holdings, Inc. | |
| Iridium Communications, Inc. | |
| | |
| | |
| Telkom Indonesia Persero Tbk PT, ADR | |
| | |
| Verizon Communications, Inc. | |
| | |
| Electronic Equipment, Instruments & Components | |
| | |
| | |
| Benchmark Electronics, Inc. | |
| | |
| | |
| Methode Electronics, Inc. | |
| | |
| | |
| Vishay Intertechnology, Inc. | |
| | |
| | |
| | |
| Interactive Media & Services | |
| | |
| | |
| | |
| | |
| | |
| Cognizant Technology Solutions Corp., Class A | |
| Hackett Group (The), Inc. | |
| | |
|
| | |
| | |
| International Business Machines Corp. | |
| | |
| | |
| | |
| | |
| | |
| Professional Services — 1.2% | |
| CSG Systems International, Inc. | |
| Dun & Bradstreet Holdings, Inc. | |
| | |
| | |
| | |
| Science Applications International Corp. | |
| SS&C Technologies Holdings, Inc. | |
| | |
| Semiconductors & Semiconductor Equipment | |
| | |
| | |
| | |
| ASE Technology Holding Co., Ltd., ADR | |
| | |
| | |
| Kulicke & Soffa Industries, Inc. | |
| | |
| Microchip Technology, Inc. | |
| | |
| Monolithic Power Systems, Inc. | |
| | |
| | |
| | |
| | |
| | |
| Taiwan Semiconductor Manufacturing Co., Ltd., ADR | |
| | |
| United Microelectronics Corp., ADR | |
| | |
| | |
| | |
| | |
| | |
| Clear Secure, Inc., Class A | |
See Notes to Financial Statements
First Trust NASDAQ Technology Dividend Index Fund (TDIV)Portfolio of Investments (Continued)March 31, 2024 (Unaudited) | | |
COMMON STOCKS (Continued) |
| | |
| Dolby Laboratories, Inc., Class A | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| Technology Hardware, Storage | |
| | |
| Dell Technologies, Inc., Class C | |
| Hewlett Packard Enterprise Co. | |
| | |
| Logitech International S.A. | |
| | |
| Seagate Technology Holdings PLC | |
| | |
| | |
| Wireless Telecommunication | |
| America Movil S.A.B. de C.V., ADR | |
| Mobile TeleSystems PJSC, ADR (a) (b) (c) (d) | |
| Rogers Communications, Inc., Class B | |
| Telephone and Data Systems, Inc. | |
| | |
| | |
| | |
| | |
MONEY MARKET FUNDS — 0.1% |
| Dreyfus Government Cash Management Fund, Institutional Shares - 5.20% (e) | |
| | |
|
|
| Total Investments — 99.9% | |
| | |
| Net Other Assets and Liabilities — 0.1% | |
| | |
| Pursuant to procedures adopted by the Trust’s Board of Trustees, this security has been determined to be illiquid by First Trust Advisors L.P., the Fund’s advisor. |
| Non-income producing security. |
| This security is fair valued by the Advisor’s Pricing Committee in accordance with procedures approved by the Trust’s Board of Trustees, and in accordance with provisions of the Investment Company Act of 1940 and rules thereunder, as amended. At March 31, 2024, securities noted as such are valued at $0 or 0.0% of net assets. |
| This security’s value was determined using significant unobservable inputs (see Note 2A - Portfolio Valuation in the Notes to Financial Statements). |
| Rate shown reflects yield as of March 31, 2024. |
Abbreviations throughout the Portfolio of Investments: |
| – American Depositary Receipt |
Valuation InputsA summary of the inputs used to value the Fund’s investments as of March 31, 2024 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements):
| | | Level 2
Significant
Observable
Inputs | Level 3
Significant
Unobservable
Inputs |
| | | | |
Wireless Telecommunication Services | | | | |
Other Industry Categories* | | | | |
| | | | |
| | | | |
| See Portfolio of Investments for industry breakout. |
| Investment is valued at $0. |
Level 3 investments are fair valued by the Advisor’s Pricing Committee and are footnoted in the Portfolio of Investments. All Level 3 values are based on unobservable inputs.
See Notes to Financial Statements
Multi-Asset Diversified Income Index Fund (MDIV)Portfolio of InvestmentsMarch 31, 2024 (Unaudited)
| | |
|
| Air Freight & Logistics — 0.4% | |
| United Parcel Service, Inc., Class B | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| T. Rowe Price Group, Inc. | |
| Victory Capital Holdings, Inc., Class A | |
| | |
| | |
| | |
| LyondellBasell Industries N.V., Class A | |
| | |
| Diversified Telecommunication Services — 1.1% | |
| | |
| Verizon Communications, Inc. | |
| | |
| Electric Utilities — 4.6% | |
| | |
| | |
| American Electric Power Co., Inc. | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| Pinnacle West Capital Corp. | |
| | |
| | |
| Financial Services — 0.6% | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| New Jersey Resources Corp. | |
| Northwest Natural Holding Co. | |
| | |
See Notes to Financial Statements
Multi-Asset Diversified Income Index Fund (MDIV)Portfolio of Investments (Continued)March 31, 2024 (Unaudited) | | |
COMMON STOCKS (Continued) |
| Gas Utilities (Continued) | |
| Southwest Gas Holdings, Inc. | |
| | |
| | |
| Household Products — 0.3% | |
| | |
| | |
| Prudential Financial, Inc. | |
| | |
| | |
| | |
| Northwestern Energy Group, Inc. | |
| Public Service Enterprise Group, Inc. | |
| | |
| | |
| Oil, Gas & Consumable Fuels — 2.0% | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
REAL ESTATE INVESTMENT TRUSTS — 20.4% |
| | | | | |
| Essential Properties Realty Trust, Inc. | |
| | | | | |
| | |
| | |
| National Health Investors, Inc. | |
| | | | | |
| Hotel & Resort REITs — 0.8% | | | | |
| Apple Hospitality REIT, Inc. | |
| | | | | |
| | |
| PennyMac Mortgage Investment Trust | |
See Notes to Financial Statements
Multi-Asset Diversified Income Index Fund (MDIV)Portfolio of Investments (Continued)March 31, 2024 (Unaudited) | | |
REAL ESTATE INVESTMENT TRUSTS (Continued) |
| Mortgage REITs (Continued) | | | | |
| | |
| | |
| | | | | |
| | | | | |
| | |
| | | | | |
| Mid-America Apartment Communities, Inc. | |
| | | | | |
| Brixmor Property Group, Inc. | |
| | |
| | |
| | |
| | |
| Simon Property Group, Inc. | |
| | | | | |
| | | | | |
| | |
| | |
| Extra Space Storage, Inc. | |
| Four Corners Property Trust, Inc. | |
| Gaming and Leisure Properties, Inc. | |
| Lamar Advertising Co., Class A | |
| | |
| | |
| | | | | |
| Total Real Estate Investment Trusts | |
| | |
EXCHANGE-TRADED FUNDS — 19.7% |
| | |
| First Trust Tactical High Yield ETF (a) | |
| | |
| | |
MASTER LIMITED PARTNERSHIPS — 19.3% |
| Energy Equipment & Services — 0.9% | |
| USA Compression Partners, L.P. | |
| Industrial Conglomerates — 1.3% | |
| | |
| Marine Transportation — 0.1% | |
| Navios Maritime Partners, L.P. | |
| Oil, Gas & Consumable Fuels — 17.0% | |
| Alliance Resource Partners, L.P. | |
| Black Stone Minerals, L.P. | |
| Cheniere Energy Partners, L.P. | |
| CrossAmerica Partners, L.P. | |
| Delek Logistics Partners, L.P. | |
See Notes to Financial Statements
Multi-Asset Diversified Income Index Fund (MDIV)Portfolio of Investments (Continued)March 31, 2024 (Unaudited) | | |
MASTER LIMITED PARTNERSHIPS (Continued) |
| Oil, Gas & Consumable Fuels (Continued) | |
| Dorchester Minerals, L.P. | |
| | |
| EnLink Midstream, LLC (b) | |
| Enterprise Products Partners, L.P. | |
| | |
| | |
| Kimbell Royalty Partners, L.P. (b) | |
| | |
| Natural Resource Partners, L.P. | |
| | |
| Plains All American Pipeline, L.P. | |
| Plains GP Holdings, L.P., Class A (b) | |
| | |
| Western Midstream Partners, L.P. | |
| | |
| Total Master Limited Partnerships | |
| | |
| | | | |
$25 PAR PREFERRED SECURITIES — 18.7% |
| | |
| Bank of America Corp., Series GG | | | |
| Bank of America Corp., Series K | | | |
| Wintrust Financial Corp., Series E (d) | | | |
| | | | | |
| | |
| Goldman Sachs Group (The), Inc., Series K (d) | | | |
| | | | |
| | | | |
| | | | |
| | | | | |
| Financial Services — 1.1% | |
| Citigroup Capital XIII, 3 Mo. CME Term SOFR + CSA + 6.37% (e) | | | |
| | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | | |
| Hotel & Resort REITs — 0.8% | |
| RLJ Lodging Trust, Series A | | | |
| | |
| Allstate (The) Corp., 3 Mo. CME Term SOFR + CSA + 3.17% (e) | | | |
See Notes to Financial Statements
Multi-Asset Diversified Income Index Fund (MDIV)Portfolio of Investments (Continued)March 31, 2024 (Unaudited) | | | | |
$25 PAR PREFERRED SECURITIES (Continued) |
| | |
| Enstar Group Ltd., Series D (d) | | | |
| Hartford Financial Services Group (The), Inc., Series G | | | |
| | | | | |
| | |
| AGNC Investment Corp., Series C, 3 Mo. CME Term SOFR + CSA + 5.11% (e) | | | |
| Annaly Capital Management, Inc., Series F, 3 Mo. CME Term SOFR + CSA + 4.99% (e) | | | |
| | | | | |
| | |
| | | | |
| Oil, Gas & Consumable Fuels — 3.0% | |
| Energy Transfer, L.P., Series E (d) | | | |
| NuStar Energy, L.P., Series B, 3 Mo. CME Term SOFR + CSA + 5.64% (e) | | | |
| NuStar Logistics, L.P., 3 Mo. CME Term SOFR + CSA + 6.73% (e) | | | |
| | | | | |
| Trading Companies & Distributors — 1.0% | |
| WESCO International, Inc., Series A (d) | | | |
| Total $25 Par Preferred Securities | |
| | |
| | |
MONEY MARKET FUNDS — 0.1% |
| Dreyfus Government Cash Management Fund, Institutional Shares - 5.20% (f) | |
| | |
|
|
| Total Investments — 99.7% | |
| | |
| Net Other Assets and Liabilities — 0.3% | |
| | |
| Investment in an affiliated fund. |
| This security is taxed as a “C” corporation for federal income tax purposes. |
| |
| Fixed-to-floating or fixed-to-variable rate security. The interest rate shown reflects the fixed rate in effect at March 31, 2024. At a predetermined date, the fixed rate will change to a floating rate or a variable rate. |
| Floating or variable rate security. |
| Rate shown reflects yield as of March 31, 2024. |
Abbreviations throughout the Portfolio of Investments: |
| – Chicago Mercantile Exchange |
| – Credit Spread Adjustment |
| – Real Estate Investment Trusts |
| – Secured Overnight Financing Rate |
See Notes to Financial Statements
Multi-Asset Diversified Income Index Fund (MDIV)Portfolio of Investments (Continued)March 31, 2024 (Unaudited)
Valuation InputsA summary of the inputs used to value the Fund’s investments as of March 31, 2024 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements):
| | | Level 2
Significant
Observable
Inputs | Level 3
Significant
Unobservable
Inputs |
| | | | |
Real Estate Investment Trusts* | | | | |
| | | | |
Master Limited Partnerships* | | | | |
$25 Par Preferred Securities* | | | | |
| | | | |
| | | | |
| See Portfolio of Investments for industry breakout. |
See Notes to Financial Statements
First Trust S&P International Dividend Aristocrats ETF (FID)Portfolio of InvestmentsMarch 31, 2024 (Unaudited)
| | |
COMMON STOCKS (a) — 99.1% |
| Air Freight & Logistics — | |
| | |
| | |
| | |
| | |
| | |
| Bank of Nova Scotia (The) (CAD) | |
| Canadian Imperial Bank of Commerce (CAD) | |
| Canadian Western Bank (CAD) | |
| Sumitomo Mitsui Trust Holdings, Inc. (JPY) | |
| Toronto-Dominion Bank (The) (CAD) | |
| | |
| | |
| Canadian Tire Corp. Ltd., Class A (CAD) | |
| | |
| | |
| | |
| IG Group Holdings PLC (GBP) | |
| Julius Baer Group Ltd. (CHF) | |
| | |
| | |
| | |
| | |
| Mitsubishi Gas Chemical Co., Inc. (JPY) | |
| | |
| | |
| Construction & Engineering | |
| | |
| | |
| | |
| | |
| | |
| | |
| Smurfit Kappa Group PLC (EUR) | |
| Diversified Telecommunication | |
| | |
| | |
| | |
|
| Diversified Telecommunication Services (Continued) | |
| | |
| | |
| | |
| | |
| | |
| Electric Utilities — 9.3% | |
| CK Infrastructure Holdings Ltd. (HKD) | |
| | |
| EDP - Energias de Portugal S.A. (EUR) | |
| | |
| Power Assets Holdings Ltd. (HKD) | |
| Saudi Electricity Co. (SAR) | |
| Terna-Rete Elettrica Nazionale (EUR) | |
| | |
| Financial Services — 1.0% | |
| | |
| | |
| | |
| | |
| | |
| Household Durables — 2.1% | |
| Open House Group Co., Ltd. (JPY) | |
| | |
| | |
| Independent Power and Renewable Electricity | |
| Capital Power Corp. (CAD) | |
| Electric Power Development Co., Ltd. (JPY) | |
| Northland Power, Inc. (CAD) | |
| | |
| | |
| | |
| | |
| Great-West Lifeco, Inc. (CAD) | |
| Helvetia Holding AG (CHF) | |
| Legal & General Group PLC (GBP) | |
| Manulife Financial Corp. (CAD) | |
| MS&AD Insurance Group Holdings, Inc. (JPY) | |
| Ping An Insurance Group Co. of China Ltd., Class H (HKD) | |
| Power Corp. of Canada (CAD) | |
See Notes to Financial Statements
First Trust S&P International Dividend Aristocrats ETF (FID)Portfolio of Investments (Continued)March 31, 2024 (Unaudited) | | |
COMMON STOCKS (a) (Continued) |
| | |
| Sun Life Financial, Inc. (CAD) | |
| Swiss Life Holding AG (CHF) | |
| Zurich Insurance Group AG (CHF) | |
| | |
| | |
| Husqvarna AB, Class B (SEK) | |
| | |
| Takeuchi Manufacturing Co., Ltd. (JPY) | |
| | |
| | |
| Yamato Kogyo Co., Ltd. (JPY) | |
| | |
| | |
| | |
| Canadian Utilities Ltd., Class A (CAD) | |
| | |
| | |
| Oil, Gas & Consumable Fuels | |
| Canadian Natural Resources Ltd. (CAD) | |
| ENEOS Holdings, Inc. (JPY) | |
| | |
| Pembina Pipeline Corp. (CAD) | |
| | |
| | |
| | |
| | |
| | |
| | |
| Takeda Pharmaceutical Co., Ltd. (JPY) | |
| | |
| Professional Services — 1.6% | |
| | |
| | |
| Henderson Land Development Co., Ltd. (HKD) | |
| Nomura Real Estate Holdings, Inc. (JPY) | |
| Sino Land Co., Ltd. (HKD) | |
| Sun Hung Kai Properties, Ltd. (HKD) | |
| | |
| | |
|
| | |
| Japan Metropolitan Fund Invest (JPY) | |
| Semiconductors & Semiconductor Equipment | |
| Vanguard International Semiconductor Corp. (TWD) | |
| | |
| | |
|
|
| Total Investments — 99.1% | |
| | |
| Net Other Assets and Liabilities — 0.9% | |
| | |
| Securities are issued in U.S. dollars unless otherwise indicated in the security description. |
Abbreviations throughout the Portfolio of Investments: |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| – Real Estate Investment Trusts |
| |
| |
| |
Currency Exposure Diversification | |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
See Notes to Financial Statements
First Trust S&P International Dividend Aristocrats ETF (FID)Portfolio of Investments (Continued)March 31, 2024 (Unaudited) | |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
Net Other Assets and Liabilities | |
| |
| Portfolio securities are categorized based upon their country of incorporation, which can be different from the country categorization of the Fund’s underlying index. |
Valuation InputsA summary of the inputs used to value the Fund’s investments as of March 31, 2024 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements):
| | | Level 2
Significant
Observable
Inputs | Level 3
Significant
Unobservable
Inputs |
| | | | |
| See Portfolio of Investments for industry breakout. |
See Notes to Financial Statements
First Trust BuyWrite Income ETF (FTHI)Portfolio of InvestmentsMarch 31, 2024 (Unaudited)
| | |
|
| Aerospace & Defense — 0.6% | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| Simmons First National Corp., Class A | |
| | |
| | |
| | |
| | |
| | |
| Coca-Cola Europacific Partners PLC (b) | |
| | |
| | |
| | |
| | |
| | |
| Apellis Pharmaceuticals, Inc. (a) | |
| Crinetics Pharmaceuticals, Inc. (a) | |
| | |
| | |
| | |
| | |
| Ares Management Corp., Class A | |
| Goldman Sachs Group (The), Inc. | |
| | |
| LPL Financial Holdings, Inc. | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| Commercial Services & Supplies — 0.3% | |
| | |
| | |
| | |
| Communications Equipment — 0.4% | |
| | |
See Notes to Financial Statements
First Trust BuyWrite Income ETF (FTHI)Portfolio of Investments (Continued)March 31, 2024 (Unaudited) | | |
COMMON STOCKS (Continued) |
| Construction Materials — 0.4% | |
| | |
| | |
| | |
| Consumer Staples Distribution & Retail — 2.3% | |
| | |
| | |
| Performance Food Group Co. (a) | |
| Sprouts Farmers Market, Inc. (a) | |
| US Foods Holding Corp. (a) | |
| | |
| | |
| Containers & Packaging — 0.2% | |
| | |
| Diversified Consumer Services — 0.3% | |
| Grand Canyon Education, Inc. (a) | |
| Diversified Telecommunication Services — 0.4% | |
| Verizon Communications, Inc. | |
| Electric Utilities — 1.0% | |
| | |
| | |
| | |
| | |
| Energy Equipment & Services — 0.3% | |
| | |
| | |
| | |
| | |
| Warner Music Group Corp., Class A | |
| | |
| Financial Services — 4.5% | |
| Berkshire Hathaway, Inc., Class B (a) (b) | |
| Jackson Financial, Inc., Class A | |
| Mastercard, Inc., Class A (b) | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| Pilgrim’s Pride Corp. (a) | |
| | |
| Ground Transportation — 0.7% | |
| Uber Technologies, Inc. (a) | |
| | |
| | |
See Notes to Financial Statements
First Trust BuyWrite Income ETF (FTHI)Portfolio of Investments (Continued)March 31, 2024 (Unaudited) | | |
COMMON STOCKS (Continued) |
| Health Care Equipment & Supplies — 0.8% | |
| | |
| Intuitive Surgical, Inc. (a) | |
| | |
| Health Care Providers & Services — 1.4% | |
| | |
| UnitedHealth Group, Inc. (b) | |
| | |
| | |
| National Health Investors, Inc. | |
| Sabra Health Care REIT, Inc. | |
| | |
| Health Care Technology — 0.4% | |
| Veeva Systems, Inc., Class A (a) | |
| Hotel & Resort REITs — 0.3% | |
| Apple Hospitality REIT, Inc. | |
| Hotels, Restaurants & Leisure — 0.8% | |
| | |
| | |
| | |
| Household Durables — 0.4% | |
| | |
| Household Products — 1.2% | |
| Procter & Gamble (The) Co. (b) | |
| Reynolds Consumer Products, Inc. | |
| | |
| Independent Power and Renewable Electricity Producers — 0.6% | |
| | |
| Industrial Conglomerates — 0.7% | |
| | |
| Honeywell International, Inc. | |
| | |
| | |
| EastGroup Properties, Inc. | |
| Innovative Industrial Properties, Inc. | |
| | |
| | |
| | |
| | |
| Fidelity National Financial, Inc. | |
| Kinsale Capital Group, Inc. | |
| | |
| Interactive Media & Services — 6.1% | |
| Alphabet, Inc., Class A (a) (b) | |
| Alphabet, Inc., Class C (a) (b) | |
| Meta Platforms, Inc., Class A (b) | |
| | |
See Notes to Financial Statements
First Trust BuyWrite Income ETF (FTHI)Portfolio of Investments (Continued)March 31, 2024 (Unaudited) | | |
COMMON STOCKS (Continued) |
| | |
| | |
| | |
| International Business Machines Corp. | |
| | |
| Life Sciences Tools & Services — 1.5% | |
| | |
| Medpace Holdings, Inc. (a) | |
| Thermo Fisher Scientific, Inc. (b) | |
| | |
| | |
| Allison Transmission Holdings, Inc. | |
| | |
| | |
| Lincoln Electric Holdings, Inc. | |
| | |
| Marine Transportation — 0.6% | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| Oil, Gas & Consumable Fuels — 6.0% | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| Hess Midstream, L.P., Class A (c) | |
| | |
| PBF Energy, Inc., Class A | |
| | |
| | |
| | |
| Paper & Forest Products — 0.3% | |
| | |
| Personal Care Products — 2.0% | |
| BellRing Brands, Inc. (a) | |
See Notes to Financial Statements
First Trust BuyWrite Income ETF (FTHI)Portfolio of Investments (Continued)March 31, 2024 (Unaudited) | | |
COMMON STOCKS (Continued) |
| Personal Care Products (Continued) | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| Novo Nordisk A/S, ADR (b) | |
| | |
| | |
| | |
| Professional Services — 0.3% | |
| Booz Allen Hamilton Holding Corp. | |
| | |
| American Homes 4 Rent, Class A | |
| Equity LifeStyle Properties, Inc. | |
| | |
| Semiconductors & Semiconductor Equipment — 8.4% | |
| Advanced Micro Devices, Inc. (a) | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| Check Point Software Technologies Ltd. (a) | |
| CommVault Systems, Inc. (a) | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| Home Depot (The), Inc. (b) | |
| | |
| | |
| | |
| | |
See Notes to Financial Statements
First Trust BuyWrite Income ETF (FTHI)Portfolio of Investments (Continued)March 31, 2024 (Unaudited) | | |
COMMON STOCKS (Continued) |
| Technology Hardware, Storage & Peripherals — 4.7% | |
| | |
| Dell Technologies, Inc., Class C (b) | |
| | |
| Textiles, Apparel & Luxury Goods — 1.0% | |
| | |
| Deckers Outdoor Corp. (a) | |
| | |
| | |
| | |
| Philip Morris International, Inc. | |
| | |
| | |
| Trading Companies & Distributors — 0.7% | |
| | |
| | |
| | |
| Wireless Telecommunication Services — 0.8% | |
| America Movil S.A.B. de C.V., ADR | |
| Rogers Communications, Inc., Class B | |
| | |
| | |
| | |
MONEY MARKET FUNDS — 4.2% |
| Dreyfus Government Cash Management Fund, Institutional Shares - 5.20% (d) | |
| | |
| Total Investments — 101.9% | |
| | |
| | | | | |
|
| Call Options Written — (2.0)% | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | |
| (Premiums received $7,123,521) | |
| Net Other Assets and Liabilities — 0.1% | |
| | |
| Non-income producing security. |
| All or a portion of this security is pledged as collateral for the options written. At March 31, 2024, the value of these securities amounts to $95,962,051. |
See Notes to Financial Statements
First Trust BuyWrite Income ETF (FTHI)Portfolio of Investments (Continued)March 31, 2024 (Unaudited) | This security is taxed as a “C” corporation for federal income tax purposes. |
| Rate shown reflects yield as of March 31, 2024. |
Abbreviations throughout the Portfolio of Investments: |
| – American Depositary Receipt |
| – Real Estate Investment Trusts |
Valuation InputsA summary of the inputs used to value the Fund’s investments as of March 31, 2024 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements):
|
| | | Level 2
Significant
Observable
Inputs | Level 3
Significant
Unobservable
Inputs |
| | | | |
| | | | |
| | | | |
|
| | | Level 2
Significant
Observable
Inputs | Level 3
Significant
Unobservable
Inputs |
| | | | |
| See Portfolio of Investments for industry breakout. |
See Notes to Financial Statements
First Trust Nasdaq BuyWrite Income ETF (FTQI)Portfolio of InvestmentsMarch 31, 2024 (Unaudited)
| | |
|
| Aerospace & Defense — 0.4% | |
| Axon Enterprise, Inc. (a) | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| Pinnacle Financial Partners, Inc. | |
| | |
| | |
| | |
| Celsius Holdings, Inc. (a) | |
| National Beverage Corp. (a) | |
| | |
| | |
| | |
| | |
| | |
| Blueprint Medicines Corp. (a) | |
| | |
| Ionis Pharmaceuticals, Inc. (a) | |
| Legend Biotech Corp., ADR (a) | |
| Neurocrine Biosciences, Inc. (a) | |
| Roivant Sciences Ltd. (a) | |
| | |
| | |
| | |
| | |
| | |
| | |
| Gibraltar Industries, Inc. (a) | |
| | |
| | |
| | |
| | |
| Charles Schwab (The) Corp. | |
| | |
| Coinbase Global, Inc., Class A (a) | |
| | |
| | |
| | |
| T. Rowe Price Group, Inc. | |
| Tradeweb Markets, Inc., Class A | |
| | |
| | |
See Notes to Financial Statements
First Trust Nasdaq BuyWrite Income ETF (FTQI)Portfolio of Investments (Continued)March 31, 2024 (Unaudited) | | |
COMMON STOCKS (Continued) |
| | |
| | |
| | |
| | |
| | |
| Commercial Services & Supplies — 0.3% | |
| | |
| | |
| | |
| | |
| Communications Equipment — 1.8% | |
| Arista Networks, Inc. (a) | |
| | |
| | |
| | |
| Construction & Engineering — 0.3% | |
| | |
| Sterling Infrastructure, Inc. (a) | |
| | |
| Construction Materials — 0.1% | |
| | |
| | |
| | |
| Consumer Staples Distribution & Retail — 3.5% | |
| Casey’s General Stores, Inc. | |
| Costco Wholesale Corp. (b) | |
| | |
| Sprouts Farmers Market, Inc. (a) | |
| | |
| | |
| | |
| | |
| | |
| Diversified Consumer Services — 0.4% | |
| | |
| Electric Utilities — 1.7% | |
| | |
| | |
| | |
| | |
| | |
| Electrical Equipment — 0.2% | |
| | |
| NEXTracker, Inc., Class A (a) | |
| | |
| Electronic Equipment, Instruments & Components — 1.6% | |
| | |
| | |
See Notes to Financial Statements
First Trust Nasdaq BuyWrite Income ETF (FTQI)Portfolio of Investments (Continued)March 31, 2024 (Unaudited) | | |
COMMON STOCKS (Continued) |
| Electronic Equipment, Instruments & Components (Continued) | |
| | |
| Keysight Technologies, Inc. (a) | |
| | |
| | |
| Zebra Technologies Corp., Class A (a) | |
| | |
| Energy Equipment & Services — 1.2% | |
| | |
| Patterson-UTI Energy, Inc. | |
| ProFrac Holding Corp., Class A (a) | |
| Weatherford International PLC (a) | |
| | |
| | |
| | |
| | |
| Take-Two Interactive Software, Inc. (a) (b) | |
| | |
| Financial Services — 0.3% | |
| Jack Henry & Associates, Inc. | |
| | |
| | |
| | |
| | |
| Ground Transportation — 0.9% | |
| Canadian Pacific Kansas City Ltd. | |
| J.B. Hunt Transport Services, Inc. | |
| | |
| | |
| | |
| Health Care Equipment & Supplies — 1.2% | |
| | |
| Edwards Lifesciences Corp. (a) | |
| | |
| | |
| | |
| | |
| | |
| Shockwave Medical, Inc. (a) | |
| UFP Technologies, Inc. (a) | |
| | |
| Health Care Providers & Services — 0.2% | |
| | |
| | |
| | |
| Health Care Technology — 0.1% | |
| Veeva Systems, Inc., Class A (a) | |
See Notes to Financial Statements
First Trust Nasdaq BuyWrite Income ETF (FTQI)Portfolio of Investments (Continued)March 31, 2024 (Unaudited) | | |
COMMON STOCKS (Continued) |
| Hotels, Restaurants & Leisure — 0.2% | |
| DoorDash, Inc., Class A (a) | |
| | |
| | |
| Household Durables — 0.0% | |
| Cavco Industries, Inc. (a) | |
| Household Products — 0.5% | |
| | |
| Reynolds Consumer Products, Inc. | |
| | |
| | |
| Independent Power and Renewable Electricity Producers — 0.1% | |
| ReNew Energy Global PLC, Class A (a) | |
| Industrial Conglomerates — 0.1% | |
| | |
| | |
| Arch Capital Group Ltd. (a) | |
| Erie Indemnity Co., Class A | |
| | |
| | |
| | |
| Interactive Media & Services — 8.0% | |
| Alphabet, Inc., Class A (a) (b) | |
| Alphabet, Inc., Class C (a) (b) | |
| Meta Platforms, Inc., Class A (b) | |
| | |
| | |
| Accenture PLC, Class A (b) | |
| Akamai Technologies, Inc. (a) (b) | |
| | |
| | |
| | |
| Life Sciences Tools & Services — 2.0% | |
| Agilent Technologies, Inc. | |
| | |
| | |
| | |
| Medpace Holdings, Inc. (a) | |
| Mettler-Toledo International, Inc. (a) | |
| | |
| | |
| | |
| | |
| | |
| Franklin Electric Co., Inc. | |
| Lincoln Electric Holdings, Inc. | |
| | |
| | |
| | |
See Notes to Financial Statements
First Trust Nasdaq BuyWrite Income ETF (FTQI)Portfolio of Investments (Continued)March 31, 2024 (Unaudited) | | |
COMMON STOCKS (Continued) |
| | |
| Comcast Corp., Class A (b) | |
| | |
| | |
| | |
| | |
| | |
| | |
| Oil, Gas & Consumable Fuels — 1.0% | |
| | |
| | |
| Plains GP Holdings, L.P., Class A (c) | |
| | |
| | |
| Passenger Airlines — 0.1% | |
| Ryanair Holdings PLC, ADR | |
| Personal Care Products — 0.2% | |
| Estee Lauder (The) Cos., Inc., Class A | |
| | |
| | |
| Royalty Pharma PLC, Class A | |
| | |
| | |
| Real Estate Management & Development — 0.2% | |
| | |
| Semiconductors & Semiconductor Equipment — 19.0% | |
| Advanced Micro Devices, Inc. (a) (b) | |
| | |
| ARM Holdings PLC, ADR (a) | |
| | |
| | |
| | |
| | |
| | |
| Monolithic Power Systems, Inc. | |
| | |
| | |
| | |
| Silicon Laboratories, Inc. (a) | |
| | |
| | |
| | |
| | |
| | |
| Bentley Systems, Inc., Class B | |
| Check Point Software Technologies Ltd. (a) (b) | |
| CommVault Systems, Inc. (a) | |
| CyberArk Software Ltd. (a) | |
| Descartes Systems Group (The), Inc. (a) | |
See Notes to Financial Statements
First Trust Nasdaq BuyWrite Income ETF (FTQI)Portfolio of Investments (Continued)March 31, 2024 (Unaudited) | | |
COMMON STOCKS (Continued) |
| | |
| | |
| Manhattan Associates, Inc. (a) | |
| | |
| | |
| | |
| | |
| | |
| | |
| Tyler Technologies, Inc. (a) | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| Technology Hardware, Storage & Peripherals — 8.5% | |
| | |
| Logitech International S.A. | |
| | |
| Seagate Technology Holdings PLC | |
| | |
| Textiles, Apparel & Luxury Goods — 0.1% | |
| | |
| Trading Companies & Distributors — 0.1% | |
| | |
| | |
| Consolidated Water Co., Ltd. | |
| Wireless Telecommunication Services — 1.3% | |
| | |
| | |
| | |
MONEY MARKET FUNDS — 5.4% |
| Dreyfus Government Cash Management Fund, Institutional Shares - 5.20% (d) | |
| | |
| Total Investments — 101.5% | |
| | |
| | | | | |
|
| Call Options Written — (1.6)% | |
| | | | | |
See Notes to Financial Statements
First Trust Nasdaq BuyWrite Income ETF (FTQI)Portfolio of Investments (Continued)March 31, 2024 (Unaudited) | | | | | |
WRITTEN OPTIONS (Continued) |
| Call Options Written (Continued) | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | |
| (Premiums received $4,495,161) | |
| Net Other Assets and Liabilities — 0.1% | |
| | |
| Non-income producing security. |
| All or a portion of this security is pledged as collateral for the options written. At March 31, 2024, the value of these securities amounts to $64,486,210. |
| This security is taxed as a “C” corporation for federal income tax purposes. |
| Rate shown reflects yield as of March 31, 2024. |
Abbreviations throughout the Portfolio of Investments: |
| – American Depositary Receipt |
| – Real Estate Investment Trusts |
Valuation InputsA summary of the inputs used to value the Fund’s investments as of March 31, 2024 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements):
|
| | | Level 2
Significant
Observable
Inputs | Level 3
Significant
Unobservable
Inputs |
| | | | |
| | | | |
| | | | |
|
| | | Level 2
Significant
Observable
Inputs | Level 3
Significant
Unobservable
Inputs |
| | | | |
| See Portfolio of Investments for industry breakout. |
See Notes to Financial Statements
First Trust Rising Dividend Achievers ETF (RDVY)Portfolio of InvestmentsMarch 31, 2024 (Unaudited)
| | |
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| CF Industries Holdings, Inc. | |
| | |
| | |
| | |
| | |
| Capital One Financial Corp. | |
| Discover Financial Services | |
| | |
| | |
| | |
| Financial Services — 12.1% | |
| | |
| Jackson Financial, Inc., Class A | |
| Mastercard, Inc., Class A | |
| | |
| | |
| | |
| | |
| | |
| Old Dominion Freight Line, Inc. | |
| | |
| | |
| Household Durables — 6.2% | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| Hartford Financial Services Group (The), Inc. | |
| | |
| | |
|
| | |
| | |
| Cognizant Technology Solutions Corp., Class A | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| Interpublic Group of (The) Cos., Inc. | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| Oil, Gas & Consumable Fuels | |
| California Resources Corp. | |
| | |
| | |
| | |
| Magnolia Oil & Gas Corp., Class A | |
| | |
| Semiconductors & Semiconductor Equipment | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| Technology Hardware, Storage | |
| | |
| Textiles, Apparel & Luxury | |
| | |
| | |
| | |
See Notes to Financial Statements
First Trust Rising Dividend Achievers ETF (RDVY)Portfolio of Investments (Continued)March 31, 2024 (Unaudited) | | |
MONEY MARKET FUNDS — 0.2% |
| Dreyfus Government Cash Management Fund, Institutional Shares - 5.20% (a) | |
| | |
|
|
| Total Investments — 100.2% | |
| | |
| Net Other Assets and Liabilities — (0.2)% | |
| | |
| Rate shown reflects yield as of March 31, 2024. |
Valuation InputsA summary of the inputs used to value the Fund’s investments as of March 31, 2024 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements):
| | | Level 2
Significant
Observable
Inputs | Level 3
Significant
Unobservable
Inputs |
| | | | |
| | | | |
| | | | |
| See Portfolio of Investments for industry breakout. |
See Notes to Financial Statements
First Trust Dorsey Wright Focus 5 ETF (FV)Portfolio of InvestmentsMarch 31, 2024 (Unaudited)
| | |
EXCHANGE-TRADED FUNDS — 100.0% |
| Capital Markets (a) — 100.0% | |
| First Trust Consumer Discretionary AlphaDEX® Fund | |
| First Trust Dow Jones Internet Index Fund (b) | |
| First Trust Industrials/Producer Durables AlphaDEX® Fund | |
| First Trust Nasdaq Semiconductor ETF | |
| First Trust NASDAQ-100- Technology Sector Index Fund | |
| Total Exchange-Traded Funds | |
| | |
MONEY MARKET FUNDS — 0.0% |
| Dreyfus Government Cash Management Fund, Institutional Shares - 5.20% (c) | |
| | |
|
|
| Total Investments — 100.0% | |
| | |
| Net Other Assets and Liabilities — (0.0)% | |
| | |
| Represents investments in affiliated funds. |
| Non-income producing security. |
| Rate shown reflects yield as of March 31, 2024. |
Valuation InputsA summary of the inputs used to value the Fund’s investments as of March 31, 2024 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements):
| | | Level 2
Significant
Observable
Inputs | Level 3
Significant
Unobservable
Inputs |
| | | | |
| | | | |
| | | | |
| See Portfolio of Investments for industry breakout. |
See Notes to Financial Statements
First Trust RBA American Industrial Renaissance® ETF (AIRR)Portfolio of InvestmentsMarch 31, 2024 (Unaudited)
| | |
|
| | |
| | |
| | |
| First Commonwealth Financial Corp. | |
| | |
| | |
| | |
| | |
| German American Bancorp, Inc. | |
| Heartland Financial USA, Inc. | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| Aris Water Solutions, Inc., Class A | |
| | |
| | |
| Construction & Engineering | |
| Ameresco, Inc., Class A (a) | |
| | |
| Comfort Systems USA, Inc. | |
| Construction Partners, Inc., Class A (a) | |
| Dycom Industries, Inc. (a) | |
| | |
| Granite Construction, Inc. | |
| Limbach Holdings, Inc. (a) | |
| | |
| MDU Resources Group, Inc. | |
| | |
| Sterling Infrastructure, Inc. (a) | |
| | |
| Electrical Equipment — 20.7% | |
| Array Technologies, Inc. (a) | |
| | |
| | |
| | |
| | |
| Shoals Technologies Group, Inc., Class A (a) | |
| | |
| | |
|
| | |
| | |
| | |
| | |
| | |
| Greenbrier (The) Cos., Inc. | |
| Mueller Water Products, Inc., Class A | |
| | |
| | |
| | |
| SPX Technologies, Inc. (a) | |
| | |
| | |
| | |
| | |
MONEY MARKET FUNDS — 0.1% |
| Dreyfus Government Cash Management Fund, Institutional Shares - 5.20% (b) | |
| | |
|
|
| Total Investments — 100.0% | |
| | |
| Net Other Assets and Liabilities — (0.0)% | |
| | |
| Non-income producing security. |
| Rate shown reflects yield as of March 31, 2024. |
Valuation InputsA summary of the inputs used to value the Fund’s investments as of March 31, 2024 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements):
| | | Level 2
Significant
Observable
Inputs | Level 3
Significant
Unobservable
Inputs |
| | | | |
| | | | |
| | | | |
| See Portfolio of Investments for industry breakout. |
See Notes to Financial Statements
First Trust Dorsey Wright Momentum & Dividend ETF (DDIV)Portfolio of InvestmentsMarch 31, 2024 (Unaudited)
| | |
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| Ares Management Corp., Class A | |
| | |
| | |
| | |
| | |
| | |
| | |
| Capital One Financial Corp. | |
| Discover Financial Services | |
| | |
| | |
| | |
| Packaging Corp. of America | |
| Financial Services — 1.0% | |
| Apollo Global Management, Inc. | |
| | |
| | |
| | |
| | |
| Hotel & Resort REITs — 2.4% | |
| Ryman Hospitality Properties, Inc. | |
| Independent Power and Renewable Electricity | |
| | |
| | |
| | |
| American International Group, Inc. | |
| Old Republic International Corp. | |
| Reinsurance Group of America, Inc. | |
| | |
| | |
| | |
| | |
|
| | |
| Illinois Tool Works, Inc. | |
| | |
| | |
| | |
| Starwood Property Trust, Inc. | |
| Oil, Gas & Consumable Fuels | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| Simon Property Group, Inc. | |
| | |
| Semiconductors & Semiconductor Equipment | |
| | |
| | |
| | |
| | |
| | |
| Lamar Advertising Co., Class A | |
| | |
| | |
| Dick’s Sporting Goods, Inc. | |
| | |
| Penske Automotive Group, Inc. | |
| | |
| | |
| Technology Hardware, Storage | |
| Dell Technologies, Inc., Class C | |
| | |
| Seagate Technology Holdings PLC | |
| | |
See Notes to Financial Statements
First Trust Dorsey Wright Momentum & Dividend ETF (DDIV)Portfolio of Investments (Continued)March 31, 2024 (Unaudited) | | |
COMMON STOCKS (Continued) |
| | |
| | |
| | |
| | |
|
|
| Total Investments — 99.8% | |
| | |
| Net Other Assets and Liabilities — 0.2% | |
| | |
Abbreviations throughout the Portfolio of Investments: |
| – Real Estate Investment Trusts |
Valuation InputsA summary of the inputs used to value the Fund’s investments as of March 31, 2024 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements):
| | | Level 2
Significant
Observable
Inputs | Level 3
Significant
Unobservable
Inputs |
| | | | |
| See Portfolio of Investments for industry breakout. |
See Notes to Financial Statements
First Trust Dorsey Wright International Focus 5 ETF (IFV)Portfolio of InvestmentsMarch 31, 2024 (Unaudited)
| | |
EXCHANGE-TRADED FUNDS — 99.9% |
| Capital Markets (a) — 99.9% | |
| First Trust India NIFTY 50 Equal Weight ETF | |
| First Trust Japan AlphaDEX® Fund | |
| First Trust Latin America AlphaDEX® Fund | |
| First Trust Switzerland AlphaDEX® Fund | |
| First Trust United Kingdom AlphaDEX® Fund | |
| Total Exchange-Traded Funds | |
| | |
MONEY MARKET FUNDS — 0.1% |
| Dreyfus Government Cash Management Fund, Institutional Shares - 5.20% (b) | |
| | |
|
|
| Total Investments — 100.0% | |
| | |
| Net Other Assets and Liabilities — (0.0)% | |
| | |
| Represents investments in affiliated funds. |
| Rate shown reflects yield as of March 31, 2024. |
Valuation InputsA summary of the inputs used to value the Fund’s investments as of March 31, 2024 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements):
| | | Level 2
Significant
Observable
Inputs | Level 3
Significant
Unobservable
Inputs |
| | | | |
| | | | |
| | | | |
| See Portfolio of Investments for industry breakout. |
See Notes to Financial Statements
First Trust Dorsey Wright Dynamic Focus 5 ETF (FVC)Portfolio of InvestmentsMarch 31, 2024 (Unaudited)
| | |
EXCHANGE-TRADED FUNDS — 100.0% |
| Capital Markets (a) — 100.0% | |
| First Trust Consumer Discretionary AlphaDEX® Fund | |
| First Trust Dow Jones Internet Index Fund (b) | |
| First Trust Enhanced Short Maturity ETF | |
| First Trust Industrials/Producer Durables AlphaDEX® Fund | |
| First Trust Nasdaq Semiconductor ETF | |
| First Trust NASDAQ-100- Technology Sector Index Fund | |
|
|
| Total Investments — 100.0% | |
| | |
| Net Other Assets and Liabilities — 0.0% | |
| | |
| Represents investments in affiliated funds. |
| Non-income producing security. |
Valuation InputsA summary of the inputs used to value the Fund’s investments as of March 31, 2024 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements):
| | | Level 2
Significant
Observable
Inputs | Level 3
Significant
Unobservable
Inputs |
| | | | |
| See Portfolio of Investments for industry breakout. |
See Notes to Financial Statements
First Trust Indxx Innovative Transaction & Process ETF (LEGR)Portfolio of InvestmentsMarch 31, 2024 (Unaudited)
| | |
COMMON STOCKS (a) — 99.5% |
| Aerospace & Defense — 2.4% | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| Bayerische Motoren Werke AG (EUR) | |
| | |
| Mercedes-Benz Group AG (EUR) | |
| | |
| | |
| | |
| ANZ Group Holdings Ltd. (AUD) | |
| | |
| Banco Bilbao Vizcaya Argentaria S.A. (EUR) (c) | |
| Banco Santander S.A. (EUR) | |
| | |
| Bank of China Ltd., Class H (HKD) | |
| Bank of Communications Co., Ltd., Class H (HKD) | |
| | |
| | |
| BOC Hong Kong Holdings Ltd. (HKD) | |
| China CITIC Bank Corp., Ltd., Class H (HKD) | |
| China Merchants Bank Co., Ltd., Class H (HKD) | |
| | |
| DBS Group Holdings Ltd. (SGD) | |
| First Abu Dhabi Bank PJSC (AED) | |
| | |
| | |
| | |
| Industrial & Commercial Bank of China Ltd., Class H (HKD) | |
| | |
| | |
| Kotak Mahindra Bank Ltd. (INR) | |
| Lloyds Banking Group PLC, ADR | |
| | |
|
| | |
| | |
| Postal Savings Bank of China Co., Ltd., Class H (HKD) (d) (e) | |
| Royal Bank of Canada (CAD) | |
| Sberbank of Russia PJSC (RUB) (b) (f) (g) | |
| | |
| Westpac Banking Corp. (AUD) | |
| | |
| | |
| Alibaba Group Holding Ltd., ADR | |
| | |
| | |
| | |
| | |
| Bank of New York Mellon (The) Corp. | |
| | |
| | |
| Goldman Sachs Group (The), Inc. | |
| London Stock Exchange Group PLC (GBP) | |
| Partners Group Holding AG (CHF) | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| Consumer Staples Distribution | |
| | |
| | |
| | |
| Diversified Telecommunication | |
| | |
| Deutsche Telekom AG (EUR) | |
| Emirates Telecommunications Group Co. PJSC (AED) | |
| | |
| Verizon Communications, Inc. | |
| | |
See Notes to Financial Statements
First Trust Indxx Innovative Transaction & Process ETF (LEGR)Portfolio of Investments (Continued)March 31, 2024 (Unaudited) | | |
COMMON STOCKS (a) (Continued) |
| Electric Utilities — 1.5% | |
| | |
| | |
| | |
| Financial Services — 3.8% | |
| Mastercard, Inc., Class A | |
| PayPal Holdings, Inc. (b) | |
| | |
| | |
| Household Durables — 0.8% | |
| Sony Group Corp., ADR (c) | |
| Industrial Conglomerates — | |
| Honeywell International, Inc. | |
| | |
| | |
| | |
| | |
| | |
| American International Group, Inc. | |
| | |
| | |
| Ping An Insurance Group Co. of China Ltd., Class H (HKD) | |
| | |
| Interactive Media & Services | |
| | |
| Tencent Holdings Ltd. (HKD) | |
| | |
| | |
| | |
| | |
| Cognizant Technology Solutions Corp., Class A | |
| | |
| International Business Machines Corp. | |
| Tata Consultancy Services Ltd. (INR) | |
| | |
| | |
| | |
| A.P. Moller - Maersk A/S, Class B (DKK) | |
| | |
|
| | |
| | |
| | |
| | |
| | |
| | |
| Oil, Gas & Consumable Fuels | |
| Gazprom PJSC, ADR (b) (f) (g) (h) | |
| Gazprom PJSC (RUB) (b) (f) (g) | |
| | |
| | |
| | |
| | |
| Semiconductors & Semiconductor Equipment | |
| Advanced Micro Devices, Inc. (b) | |
| Infineon Technologies AG (EUR) | |
| | |
| | |
| | |
| Taiwan Semiconductor Manufacturing Co., Ltd., ADR | |
| | |
| | |
| | |
| | |
| | |
| | |
| Workday, Inc., Class A (b) | |
| | |
| | |
| | |
| Technology Hardware, Storage | |
| Samsung Electronics Co., Ltd. (KRW) | |
| Wireless Telecommunication | |
| | |
| | |
| | |
See Notes to Financial Statements
First Trust Indxx Innovative Transaction & Process ETF (LEGR)Portfolio of Investments (Continued)March 31, 2024 (Unaudited) | | |
REPURCHASE AGREEMENTS — 1.0% |
| Bank of America Corp., 5.32% (i), dated 03/28/24, due 04/01/24, with a maturity value of $9,226. Collateralized by U.S. Treasury Securities, interest rates of 0.00% to 4.50%, due 10/15/26 to 08/15/35. The value of the collateral including accrued interest is $9,405. (j) | |
| JPMorgan Chase & Co., 5.32% (i), dated 03/28/24, due 04/01/24, with a maturity value of $1,000,591. Collateralized by U.S. Treasury Securities, interest rates of 0.25% to 5.00%, due 07/31/24 to 06/30/28. The value of the collateral including accrued interest is $1,020,000. (j) | |
| Total Repurchase Agreements | |
| | |
|
|
| Total Investments — 100.5% | |
| | |
| Net Other Assets and Liabilities — (0.5)% | |
| | |
| Securities are issued in U.S. dollars unless otherwise indicated in the security description. |
| Non-income producing security. |
| All or a portion of this security is on loan (see Note 2G - Securities Lending in the Notes to Financial Statements). The remaining contractual maturity of all of the securities lending transactions is overnight and continuous. The aggregate value of such securities, including those sold and pending settlement, is $974,463 and the total value of the collateral held by the Fund is $1,009,221. |
| This security is exempt from registration upon resale under Rule 144A of the Securities Act of 1933, as amended (the “1933 Act”) and may be resold in transactions exempt from registration, normally to qualified institutional buyers. This security is not restricted on the foreign exchange where it trades freely without any additional registration. |
| This security may be resold to qualified foreign investors and foreign institutional buyers under Regulation S of the 1933 Act. |
| This security is fair valued by the Advisor’s Pricing Committee in accordance with procedures approved by the Trust’s Board of Trustees, and in accordance with provisions of the Investment Company Act of 1940 and rules thereunder, as amended. At March 31, 2024, securities noted as such are valued at $0 or 0.0% of net assets. |
| This security’s value was determined using significant unobservable inputs (see Note 2A - Portfolio Valuation in the Notes to Financial Statements). |
| Pursuant to procedures adopted by the Trust’s Board of Trustees, this security has been determined to be illiquid by First Trust Advisors L.P., the Fund’s advisor. |
| Rate shown reflects yield as of March 31, 2024. |
| This security serves as collateral for securities on loan. |
Abbreviations throughout the Portfolio of Investments: |
| – American Depositary Receipt |
| – United Arab Emirates Dirham |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
Currency Exposure Diversification | |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| Investments are valued at $0. |
See Notes to Financial Statements
First Trust Indxx Innovative Transaction & Process ETF (LEGR)Portfolio of Investments (Continued)March 31, 2024 (Unaudited) | |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
Net Other Assets and Liabilities | |
| |
| Portfolio securities are categorized based upon their country of incorporation, which can be different from the country categorization of the Fund’s underlying index. |
| Investments are valued at $0. |
Valuation InputsA summary of the inputs used to value the Fund’s investments as of March 31, 2024 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements):
| | | Level 2
Significant
Observable
Inputs | Level 3
Significant
Unobservable
Inputs |
| | | | |
| | | | |
Oil, Gas & Consumable Fuels | | | | |
Other Industry Categories* | | | | |
| | | | |
| | | | |
| See Portfolio of Investments for industry breakout. |
| Investments are valued at $0. |
Level 3 investments are fair valued by the Advisor’s Pricing Committee and are footnoted in the Portfolio of Investments. All Level 3 values are based on unobservable inputs.
Offsetting Assets and Liabilities
Offsetting assets and liabilities requires entities to disclose both gross and net information about instruments and transactions eligible for offset, and to disclose instruments and transactions subject to master netting or similar agreements (see Note 2F - Offsetting on the Statements of Assets and Liabilities in the Notes to Financial Statements).
The Fund’s loaned securities were all subject to an enforceable Securities Lending Agency Agreement. Securities lent in accordance with the Securities Lending Agency Agreement on a gross basis were as follows:
Securities Lending Agency Agreement |
Total gross amount presented on the Statements of Assets and Liabilities(1) | |
| |
| |
| The amount presented on the Statements of Assets and Liabilities, which is included in “Investments, at value,” is not offset and is shown on a gross basis. |
| At March 31, 2024, the value of the collateral received from each borrower exceeded the value of the related securities loaned. This amount is disclosed on the Portfolio of Investments. |
See Notes to Financial Statements
First Trust Indxx Innovative Transaction & Process ETF (LEGR)Portfolio of Investments (Continued)March 31, 2024 (Unaudited) The Fund’s investments in repurchase agreements were all subject to an enforceable Master Repurchase Agreement. Repurchase Agreements on a gross basis were as follows:
|
Total gross amount presented on the Statements of Assets and Liabilities(3) | |
| |
| |
| The amount is included in “Investments, at value” on the Statements of Assets and Liabilities. |
| At March 31, 2024, the value of the collateral received from each seller exceeded the value of the repurchase agreements. |
See Notes to Financial Statements
First Trust Nasdaq Artificial Intelligence and Robotics ETF (ROBT)Portfolio of InvestmentsMarch 31, 2024 (Unaudited)
| | |
COMMON STOCKS (a) — 99.8% |
| Aerospace & Defense — 4.5% | |
| | |
| Kratos Defense & Security Solutions, Inc. (b) | |
| | |
| | |
| | |
| Air Freight & Logistics — | |
| | |
| | |
| | |
| | |
| | |
| Luminar Technologies, Inc. (b) (c) | |
| Magna International, Inc. | |
| Mobileye Global, Inc., Class A (b) (c) | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| Exscientia PLC, ADR (b) (c) | |
| | |
| Alibaba Group Holding Ltd., ADR | |
| | |
| | |
| | |
| | |
| Upstart Holdings, Inc. (b) (c) | |
| Consumer Staples Distribution | |
| Ocado Group PLC (GBP) (b) | |
| Electrical Equipment — 3.8% | |
| | |
| | |
| Mitsubishi Electric Corp. (JPY) | |
| | |
| Rockwell Automation, Inc. | |
| Schneider Electric SE (EUR) | |
| | |
| | |
|
| Electronic Equipment, Instruments & Components | |
| | |
| Delta Electronics, Inc. (TWD) | |
| FARO Technologies, Inc. (b) | |
| Hexagon AB, Class B (SEK) | |
| | |
| | |
| | |
| Yokogawa Electric Corp. (JPY) | |
| Zebra Technologies Corp., Class A (b) | |
| | |
| | |
| Intuitive Surgical, Inc. (b) | |
| | |
| | |
| | |
| | |
| Household Durables — 0.4% | |
| | |
| Industrial Conglomerates — | |
| | |
| Interactive Media & Services | |
| Alphabet, Inc., Class A (b) | |
| | |
| | |
| Meta Platforms, Inc., Class A | |
| | |
| Tencent Holdings Ltd. (HKD) | |
| | |
| | |
| Akamai Technologies, Inc. (b) | |
| International Business Machines Corp. | |
| | |
| Life Sciences Tools & Services | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
See Notes to Financial Statements
First Trust Nasdaq Artificial Intelligence and Robotics ETF (ROBT)Portfolio of Investments (Continued)March 31, 2024 (Unaudited) | | |
COMMON STOCKS (a) (Continued) |
| | |
| | |
| | |
| | |
| John Bean Technologies Corp. | |
| Kawasaki Heavy Industries Ltd. (JPY) | |
| | |
| Shibaura Machine Co., Ltd. (JPY) | |
| | |
| | |
| Yaskawa Electric Corp. (JPY) | |
| | |
| | |
| | |
| Semiconductors & Semiconductor Equipment | |
| Advanced Micro Devices, Inc. (b) | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| Renesas Electronics Corp. (JPY) | |
| Taiwan Semiconductor Manufacturing Co., Ltd., ADR | |
| | |
| | |
| | |
| | |
| Appian Corp., Class A (b) | |
| | |
| | |
| C3.ai, Inc., Class A (b) (c) | |
| Cadence Design Systems, Inc. (b) | |
| CCC Intelligent Solutions Holdings, Inc. (b) | |
| | |
| | |
| Dassault Systemes SE (EUR) | |
| | |
| | |
| | |
| Palantir Technologies, Inc., Class A (b) | |
| | |
|
| | |
| Palo Alto Networks, Inc. (b) | |
| | |
| PKSHA Technology, Inc. (JPY) (b) | |
| | |
| | |
| | |
| Selvas AI, Inc. (KRW) (b) | |
| SentinelOne, Inc., Class A (b) | |
| | |
| | |
| UiPath, Inc., Class A (b) | |
| Workday, Inc., Class A (b) | |
| | |
| Technology Hardware, Storage | |
| | |
| Samsung Electronics Co., Ltd. (KRW) | |
| Seiko Epson Corp. (JPY) (c) | |
| | |
| Wireless Telecommunication | |
| SoftBank Group Corp. (JPY) | |
| | |
| | |
MONEY MARKET FUNDS — 0.1% |
| Dreyfus Government Cash Management Fund, Institutional Shares - 5.20% (d) | |
| | |
| | |
REPURCHASE AGREEMENTS — 6.5% |
| Bank of America Corp., 5.32% (d), dated 03/28/24, due 04/01/24, with a maturity value of $12,723,842. Collateralized by U.S. Treasury Securities, interest rates of 0.00% to 4.50%, due 10/15/26 to 08/15/35. The value of the collateral including accrued interest is $12,970,652. (e) | |
See Notes to Financial Statements
First Trust Nasdaq Artificial Intelligence and Robotics ETF (ROBT)Portfolio of Investments (Continued)March 31, 2024 (Unaudited) | | |
REPURCHASE AGREEMENTS (Continued) |
| Daiwa Capital Markets America, Inc., 5.35% (d), dated 03/28/24, due 04/01/24, with a maturity value of $12,723,884. Collateralized by U.S. Treasury Securities, interest rates of 0.00% to 4.13%, due 06/11/24 to 02/15/42. The value of the collateral including accrued interest is $12,970,653. (e) | |
| JPMorgan Chase & Co., 5.32% (d), dated 03/28/24, due 04/01/24, with a maturity value of $10,906,150. Collateralized by U.S. Treasury Securities, interest rates of 0.25% to 5.00%, due 07/31/24 to 06/30/28. The value of the collateral including accrued interest is $11,117,701. (e) | |
| Total Repurchase Agreements | |
| | |
|
|
| Total Investments — 106.4% | |
| | |
| Net Other Assets and Liabilities — (6.4)% | |
| | |
| Securities are issued in U.S. dollars unless otherwise indicated in the security description. |
| Non-income producing security. |
| All or a portion of this security is on loan (see Note 2G - Securities Lending in the Notes to Financial Statements). The remaining contractual maturity of all of the securities lending transactions is overnight and continuous. The aggregate value of such securities, including those sold and pending settlement, is $34,447,363 and the total value of the collateral held by the Fund is $36,332,357. |
| Rate shown reflects yield as of March 31, 2024. |
| This security serves as collateral for securities on loan. |
Abbreviations throughout the Portfolio of Investments: |
| – American Depositary Receipt |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
Currency Exposure Diversification | |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
Valuation InputsA summary of the inputs used to value the Fund’s investments as of March 31, 2024 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements):
| | | Level 2
Significant
Observable
Inputs | Level 3
Significant
Unobservable
Inputs |
| | | | |
| | | | |
| | | | |
| | | | |
| See Portfolio of Investments for industry breakout. |
See Notes to Financial Statements
First Trust Nasdaq Artificial Intelligence and Robotics ETF (ROBT)Portfolio of Investments (Continued)March 31, 2024 (Unaudited)
Offsetting Assets and Liabilities
Offsetting assets and liabilities requires entities to disclose both gross and net information about instruments and transactions eligible for offset, and to disclose instruments and transactions subject to master netting or similar agreements (see Note 2F - Offsetting on the Statements of Assets and Liabilities in the Notes to Financial Statements).
The Fund’s loaned securities were all subject to an enforceable Securities Lending Agency Agreement. Securities lent in accordance with the Securities Lending Agency Agreement on a gross basis were as follows:
Securities Lending Agency Agreement |
Total gross amount presented on the Statements of Assets and Liabilities(1) | |
| |
| |
| The amount presented on the Statements of Assets and Liabilities, which is included in “Investments, at value,” is not offset and is shown on a gross basis. |
| At March 31, 2024, the value of the collateral received from each borrower exceeded the value of the related securities loaned. This amount is disclosed on the Portfolio of Investments. |
The Fund’s investments in repurchase agreements were all subject to an enforceable Master Repurchase Agreement. Repurchase Agreements on a gross basis were as follows:
|
Total gross amount presented on the Statements of Assets and Liabilities(3) | |
| |
| |
| The amount is included in “Investments, at value” on the Statements of Assets and Liabilities. |
| At March 31, 2024, the value of the collateral received from each seller exceeded the value of the repurchase agreements. |
See Notes to Financial Statements
First Trust International Developed Capital Strength ETF (FICS)Portfolio of InvestmentsMarch 31, 2024 (Unaudited)
| | |
COMMON STOCKS (a) — 99.5% |
| Aerospace & Defense — 9.1% | |
| | |
| | |
| | |
| | |
| | |
| Air Freight & Logistics — | |
| | |
| | |
| Carlsberg A/S, Class B (DKK) | |
| | |
| | |
| | |
| Assa Abloy AB, Class B (SEK) | |
| | |
| | |
| Japan Exchange Group, Inc. (JPY) | |
| | |
| | |
| Shin-Etsu Chemical Co., Ltd. (JPY) | |
| Consumer Staples Distribution | |
| Alimentation Couche-Tard, Inc. (CAD) | |
| Electrical Equipment — 7.0% | |
| | |
| | |
| Schneider Electric SE (EUR) | |
| | |
| | |
| | |
| Financial Services — 2.3% | |
| Investor AB, Class B (SEK) | |
| | |
| | |
| Hotels, Restaurants & Leisure | |
| Amadeus IT Group S.A. (EUR) | |
| Aristocrat Leisure Ltd. (AUD) | |
| | |
| | |
| Household Products — 1.3% | |
| Reckitt Benckiser Group PLC (GBP) | |
| | |
| | |
| | |
|
| | |
| | |
| Zurich Insurance Group AG (CHF) | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| Kuehne + Nagel International AG (CHF) | |
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| Oil, Gas & Consumable Fuels | |
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| Woodside Energy Group Ltd. (AUD) | |
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| Chugai Pharmaceutical Co., Ltd. (JPY) | |
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| Ono Pharmaceutical Co., Ltd. (JPY) | |
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| Shionogi & Co., Ltd. (JPY) | |
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| Professional Services — 7.9% | |
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| Thomson Reuters Corp. (CAD) | |
| Wolters Kluwer N.V. (EUR) | |
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| Constellation Software, Inc. (CAD) | |
| Sage Group (The) PLC (GBP) | |
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See Notes to Financial Statements
First Trust International Developed Capital Strength ETF (FICS)Portfolio of Investments (Continued)March 31, 2024 (Unaudited) | | |
COMMON STOCKS (a) (Continued) |
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| Industria de Diseno Textil S.A. (EUR) | |
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| Constellation Software, Inc., expiring 8/22/2028 (CAD) (b) (c) (d) (e) | |
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MONEY MARKET FUNDS — 0.1% |
| Dreyfus Government Cash Management Fund, Institutional Shares - 5.20% (f) | |
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| Total Investments — 99.6% | |
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| Net Other Assets and Liabilities — 0.4% | |
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| Securities are issued in U.S. dollars unless otherwise indicated in the security description. |
| Non-income producing security. |
| Pursuant to procedures adopted by the Trust’s Board of Trustees, this security has been determined to be illiquid by First Trust Advisors L.P., the Fund’s advisor. |
| This security is fair valued by the Advisor’s Pricing Committee in accordance with procedures approved by the Trust’s Board of Trustees, and in accordance with provisions of the Investment Company Act of 1940 and rules thereunder, as amended. At March 31, 2024, securities noted as such are valued at $0 or 0.0% of net assets. |
| This security’s value was determined using significant unobservable inputs (see Note 2A - Portfolio Valuation in the Notes to Financial Statements). |
| Rate shown reflects yield as of March 31, 2024. |
Abbreviations throughout the Portfolio of Investments: |
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Currency Exposure Diversification | |
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Valuation InputsA summary of the inputs used to value the Fund’s investments as of March 31, 2024 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements):
| | | Level 2
Significant
Observable
Inputs | Level 3
Significant
Unobservable
Inputs |
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| See Portfolio of Investments for industry breakout. |
| Investment is valued at $0. |
Level 3 investments are fair valued by the Advisor’s Pricing Committee and are footnoted in the Portfolio of Investments. All Level 3 values are based on unobservable inputs.
See Notes to Financial Statements
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First Trust Exchange-Traded Fund VIStatements of Assets and LiabilitiesMarch 31, 2024 (Unaudited)
| First Trust NASDAQ Technology Dividend Index Fund
(TDIV) | Multi-Asset Diversified Income Index Fund
(MDIV) | First Trust S&P International Dividend Aristocrats ETF
(FID) |
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Investments, at value - Unaffiliated | | | |
Investments, at value - Affiliated | | | |
Total investments, at value | | | |
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Foreign currency, at value | | | |
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Investment securities sold | | | |
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Securities lending income | | | |
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Options contracts written, at value | | | |
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Investment securities purchased | | | |
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Deferred foreign capital gains tax | | | |
Collateral for securities on loan | | | |
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Accumulated distributable earnings (loss) | | | |
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NET ASSET VALUE, per share | | | |
Number of shares outstanding (unlimited number of shares authorized, par value $0.01 per share) | | | |
Investments, at cost - Unaffiliated | | | |
Investments, at cost - Affiliated | | | |
Total investments, at cost | | | |
Foreign currency, at cost (proceeds) | | | |
Premiums received on options contracts written | | | |
Securities on loan, at value | | | |
See Notes to Financial Statements
First Trust BuyWrite Income ETF
(FTHI) | First Trust Nasdaq BuyWrite Income ETF
(FTQI) | First Trust Rising Dividend Achievers ETF
(RDVY) | First Trust Dorsey Wright Focus 5 ETF
(FV) | First Trust RBA American Industrial Renaissance® ETF
(AIRR) | First Trust Dorsey Wright Momentum & Dividend ETF
(DDIV) |
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See Notes to Financial Statements
First Trust Exchange-Traded Fund VIStatements of Assets and Liabilities (Continued)March 31, 2024 (Unaudited)
| First Trust Dorsey Wright International Focus 5 ETF
(IFV) | First Trust Dorsey Wright Dynamic Focus 5 ETF
(FVC) | First Trust Indxx Innovative Transaction & Process ETF
(LEGR) |
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Investments, at value - Unaffiliated | | | |
Investments, at value - Affiliated | | | |
Total investments, at value | | | |
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Foreign currency, at value | | | |
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Investment securities sold | | | |
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Securities lending income | | | |
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Options contracts written, at value | | | |
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Investment securities purchased | | | |
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Deferred foreign capital gains tax | | | |
Collateral for securities on loan | | | |
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Accumulated distributable earnings (loss) | | | |
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NET ASSET VALUE, per share | | | |
Number of shares outstanding (unlimited number of shares authorized, par value $0.01 per share) | | | |
Investments, at cost - Unaffiliated | | | |
Investments, at cost - Affiliated | | | |
Total investments, at cost | | | |
Foreign currency, at cost (proceeds) | | | |
Premiums received on options contracts written | | | |
Securities on loan, at value | | | |
See Notes to Financial Statements
First Trust Nasdaq Artificial Intelligence and Robotics ETF
(ROBT) | First Trust International Developed Capital Strength ETF
(FICS) |
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See Notes to Financial Statements
First Trust Exchange-Traded Fund VIStatements of OperationsFor the Six Months Ended March 31, 2024 (Unaudited)
| First Trust NASDAQ Technology Dividend Index Fund
(TDIV) | Multi-Asset Diversified Income Index Fund
(MDIV) | First Trust S&P International Dividend Aristocrats ETF
(FID) |
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Securities lending income (net of fees) | | | |
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Less fees waived by the investment advisor | | | |
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NET INVESTMENT INCOME (LOSS) | | | |
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NET REALIZED AND UNREALIZED GAIN (LOSS): | | | |
Net realized gain (loss) on: | | | |
Investments - Unaffiliated | | | |
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In-kind redemptions - Unaffiliated | | | |
In-kind redemptions - Affiliated | | | |
Written options contracts | | | |
Foreign currency transactions | | | |
Foreign capital gains tax | | | |
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Net change in unrealized appreciation (depreciation) on: | | | |
Investments - Unaffiliated | | | |
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Written options contracts | | | |
Foreign currency translation | | | |
Deferred foreign capital gains tax | | | |
Net change in unrealized appreciation (depreciation) | | | |
NET REALIZED AND UNREALIZED GAIN (LOSS) | | | |
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | | | |
See Notes to Financial Statements
First Trust BuyWrite Income ETF
(FTHI) | First Trust Nasdaq BuyWrite Income ETF
(FTQI) | First Trust Rising Dividend Achievers ETF
(RDVY) | First Trust Dorsey Wright Focus 5 ETF
(FV) | First Trust RBA American Industrial Renaissance® ETF
(AIRR) | First Trust Dorsey Wright Momentum & Dividend ETF
(DDIV) |
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See Notes to Financial Statements
First Trust Exchange-Traded Fund VIStatements of Operations (Continued)For the Six Months Ended March 31, 2024 (Unaudited)
| First Trust Dorsey Wright International Focus 5 ETF
(IFV) | First Trust Dorsey Wright Dynamic Focus 5 ETF
(FVC) | First Trust Indxx Innovative Transaction & Process ETF
(LEGR) |
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Securities lending income (net of fees) | | | |
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Less fees waived by the investment advisor | | | |
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NET INVESTMENT INCOME (LOSS) | | | |
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NET REALIZED AND UNREALIZED GAIN (LOSS): | | | |
Net realized gain (loss) on: | | | |
Investments - Unaffiliated | | | |
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In-kind redemptions - Unaffiliated | | | |
In-kind redemptions - Affiliated | | | |
Written options contracts | | | |
Foreign currency transactions | | | |
Foreign capital gains tax | | | |
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Net change in unrealized appreciation (depreciation) on: | | | |
Investments - Unaffiliated | | | |
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Written options contracts | | | |
Foreign currency translation | | | |
Deferred foreign capital gains tax | | | |
Net change in unrealized appreciation (depreciation) | | | |
NET REALIZED AND UNREALIZED GAIN (LOSS) | | | |
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | | | |
See Notes to Financial Statements
First Trust Nasdaq Artificial Intelligence and Robotics ETF
(ROBT) | First Trust International Developed Capital Strength ETF
(FICS) |
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See Notes to Financial Statements
First Trust Exchange-Traded Fund VIStatements of Changes in Net Assets
| First Trust NASDAQ Technology Dividend Index Fund (TDIV) | Multi-Asset Diversified Income Index Fund (MDIV) |
| Six Months
Ended
3/31/2024 (Unaudited) | | Six Months
Ended
3/31/2024 (Unaudited) | |
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Net investment income (loss) | | | | |
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Net change in unrealized appreciation (depreciation) | | | | |
Net increase (decrease) in net assets resulting from operations | | | | |
|
DISTRIBUTIONS TO SHAREHOLDERS FROM: | | | | |
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Total distributions to shareholders | | | | |
|
SHAREHOLDER TRANSACTIONS: | | | | |
Proceeds from shares sold | | | | |
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Net increase (decrease) in net assets resulting from shareholder transactions | | | | |
Total increase (decrease) in net assets | | | | |
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CHANGES IN SHARES OUTSTANDING: | | | | |
Shares outstanding, beginning of period | | | | |
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Shares outstanding, end of period | | | | |
See Notes to Financial Statements
First Trust S&P International Dividend Aristocrats ETF (FID) | First Trust BuyWrite Income ETF (FTHI) | First Trust Nasdaq BuyWrite Income ETF (FTQI) |
Six Months
Ended
3/31/2024 (Unaudited) | | Six Months
Ended
3/31/2024 (Unaudited) | | Six Months
Ended
3/31/2024 (Unaudited) | |
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See Notes to Financial Statements
First Trust Exchange-Traded Fund VIStatements of Changes in Net Assets (Continued)
| First Trust Rising Dividend Achievers ETF (RDVY) | First Trust Dorsey Wright Focus 5 ETF (FV) |
| Six Months
Ended
3/31/2024 (Unaudited) | | Six Months
Ended
3/31/2024 (Unaudited) | |
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Net investment income (loss) | | | | |
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Net change in unrealized appreciation (depreciation) | | | | |
Net increase (decrease) in net assets resulting from operations | | | | |
|
DISTRIBUTIONS TO SHAREHOLDERS FROM: | | | | |
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Total distributions to shareholders | | | | |
|
SHAREHOLDER TRANSACTIONS: | | | | |
Proceeds from shares sold | | | | |
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Net increase (decrease) in net assets resulting from shareholder transactions | | | | |
Total increase (decrease) in net assets | | | | |
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CHANGES IN SHARES OUTSTANDING: | | | | |
Shares outstanding, beginning of period | | | | |
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Shares outstanding, end of period | | | | |
See Notes to Financial Statements
First Trust RBA American Industrial Renaissance® ETF (AIRR) | First Trust Dorsey Wright Momentum & Dividend ETF (DDIV) | First Trust Dorsey Wright International Focus 5 ETF (IFV) |
Six Months
Ended
3/31/2024 (Unaudited) | | Six Months
Ended
3/31/2024 (Unaudited) | | Six Months
Ended
3/31/2024 (Unaudited) | |
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See Notes to Financial Statements
First Trust Exchange-Traded Fund VIStatements of Changes in Net Assets (Continued)
| First Trust Dorsey Wright Dynamic Focus 5 ETF (FVC) | First Trust Indxx Innovative Transaction & Process ETF (LEGR) |
| Six Months
Ended
3/31/2024 (Unaudited) | | Six Months
Ended
3/31/2024 (Unaudited) | |
| | | | |
Net investment income (loss) | | | | |
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Net change in unrealized appreciation (depreciation) | | | | |
Net increase (decrease) in net assets resulting from operations | | | | |
|
DISTRIBUTIONS TO SHAREHOLDERS FROM: | | | | |
| | | | |
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Total distributions to shareholders | | | | |
|
SHAREHOLDER TRANSACTIONS: | | | | |
Proceeds from shares sold | | | | |
| | | | |
Net increase (decrease) in net assets resulting from shareholder transactions | | | | |
Total increase (decrease) in net assets | | | | |
|
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CHANGES IN SHARES OUTSTANDING: | | | | |
Shares outstanding, beginning of period | | | | |
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Shares outstanding, end of period | | | | |
See Notes to Financial Statements
First Trust Nasdaq Artificial Intelligence and Robotics ETF (ROBT) | First Trust International Developed Capital Strength ETF (FICS) |
Six Months
Ended
3/31/2024 (Unaudited) | | Six Months
Ended
3/31/2024 (Unaudited) | |
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See Notes to Financial Statements
First Trust Exchange-Traded Fund VIFinancial HighlightsFor a share outstanding throughout each period First Trust NASDAQ Technology Dividend Index Fund (TDIV)
| Six Months
Ended
3/31/2024
(Unaudited) | |
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Net asset value, beginning of period | | | | | | |
Income from investment operations: | | | | | | |
Net investment income (loss) | | | | | | |
Net realized and unrealized gain (loss) | | | | | | |
Total from investment operations | | | | | | |
Distributions paid to shareholders from: | | | | | | |
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Net asset value, end of period | | | | | | |
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|
Ratios to average net assets/supplemental data: | | | | | | |
Net assets, end of period (in 000’s) | | | | | | |
Ratio of total expenses to average net assets | | | | | | |
Ratio of net investment income (loss) to average net assets | | | | | | |
Portfolio turnover rate (d) | | | | | | |
| Based on average shares outstanding. |
| Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is calculated for the time period presented and is not annualized for periods of less than a year. |
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| Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities received or delivered from processing creations or redemptions and in-kind transactions. |
See Notes to Financial Statements
First Trust Exchange-Traded Fund VIFinancial Highlights (Continued)For a share outstanding throughout each period Multi-Asset Diversified Income Index Fund (MDIV)
| Six Months
Ended
3/31/2024
(Unaudited) | |
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Net asset value, beginning of period | | | | | | |
Income from investment operations: | | | | | | |
Net investment income (loss) | | | | | | |
Net realized and unrealized gain (loss) | | | | | | |
Total from investment operations | | | | | | |
Distributions paid to shareholders from: | | | | | | |
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Net asset value, end of period | | | | | | |
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Ratios to average net assets/supplemental data: | | | | | | |
Net assets, end of period (in 000’s) | | | | | | |
Ratio of total expenses to average net assets (c) | | | | | | |
Ratio of net expenses to average net assets (c) | | | | | | |
Ratio of net investment income (loss) to average net assets | | | | | | |
Portfolio turnover rate (e) | | | | | | |
| Based on average shares outstanding. |
| Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is calculated for the time period presented and is not annualized for periods of less than a year. The total returns would have been lower if certain fees had not been waived and expenses reimbursed by the investment advisor. |
| The Fund indirectly bears its proportionate share of fees and expenses incurred by the underlying funds in which the Fund invests. This ratio does not include these indirect fees and expenses. |
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| Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities received or delivered from processing creations or redemptions and in-kind transactions. |
See Notes to Financial Statements
First Trust Exchange-Traded Fund VIFinancial Highlights (Continued)For a share outstanding throughout each period First Trust S&P International Dividend Aristocrats ETF (FID)
| Six Months
Ended
3/31/2024
(Unaudited) | |
| | | | | |
Net asset value, beginning of period | | | | | | |
Income from investment operations: | | | | | | |
Net investment income (loss) | | | | | | |
Net realized and unrealized gain (loss) | | | | | | |
Total from investment operations | | | | | | |
Distributions paid to shareholders from: | | | | | | |
| | | | | | |
Net asset value, end of period | | | | | | |
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Ratios to average net assets/supplemental data: | | | | | | |
Net assets, end of period (in 000’s) | | | | | | |
Ratio of total expenses to average net assets | | | | | | |
Ratio of net investment income (loss) to average net assets | | | | | | |
Portfolio turnover rate (d) | | | | | | |
| Based on average shares outstanding. |
| Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is calculated for the time period presented and is not annualized for periods of less than a year. |
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| Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities received or delivered from processing creations or redemptions and in-kind transactions. |
See Notes to Financial Statements
First Trust Exchange-Traded Fund VIFinancial Highlights (Continued)For a share outstanding throughout each period First Trust BuyWrite Income ETF (FTHI)
| Six Months
Ended
3/31/2024
(Unaudited) | |
| | | | | |
Net asset value, beginning of period | | | | | | |
Income from investment operations: | | | | | | |
Net investment income (loss) | | | | | | |
Net realized and unrealized gain (loss) | | | | | | |
Total from investment operations | | | | | | |
Distributions paid to shareholders from: | | | | | | |
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Net asset value, end of period | | | | | | |
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|
Ratios to average net assets/supplemental data: | | | | | | |
Net assets, end of period (in 000’s) | | | | | | |
Ratio of total expenses to average net assets | | | | | | |
Ratio of net investment income (loss) to average net assets | | | | | | |
Portfolio turnover rate (d) | | | | | | |
| Based on average shares outstanding. |
| Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is calculated for the time period presented and is not annualized for periods of less than a year. |
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| Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities received or delivered from processing creations or redemptions and in-kind transactions. |
| The variation in the portfolio turnover rate is due to lower than expected portfolio rebalancing, which was impacted by high levels of equity volatility and a downtrend in the U.S. equity markets. |
See Notes to Financial Statements
First Trust Exchange-Traded Fund VIFinancial Highlights (Continued)For a share outstanding throughout each period First Trust Nasdaq BuyWrite Income ETF (FTQI)
| Six Months
Ended
3/31/2024
(Unaudited) | |
| | | | | |
Net asset value, beginning of period | | | | | | |
Income from investment operations: | | | | | | |
Net investment income (loss) | | | | | | |
Net realized and unrealized gain (loss) | | | | | | |
Total from investment operations | | | | | | |
Distributions paid to shareholders from: | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Net asset value, end of period | | | | | | |
| | | | | | |
|
Ratios to average net assets/supplemental data: | | | | | | |
Net assets, end of period (in 000’s) | | | | | | |
Ratio of total expenses to average net assets | | | | | | |
Ratio of net investment income (loss) to average net assets | | | | | | |
Portfolio turnover rate (d) | | | | | | |
| Based on average shares outstanding. |
| Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is calculated for the time period presented and is not annualized for periods of less than a year. |
| |
| Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities received or delivered from processing creations or redemptions and in-kind transactions. |
| The variation in the portfolio turnover rate is due to the change in the Fund’s underlying index effective May 11, 2022, which resulted in fewer portfolio transactions. |
See Notes to Financial Statements
First Trust Exchange-Traded Fund VIFinancial Highlights (Continued)For a share outstanding throughout each period First Trust Rising Dividend Achievers ETF (RDVY)
| Six Months
Ended
3/31/2024
(Unaudited) | |
| | | | | |
Net asset value, beginning of period | | | | | | |
Income from investment operations: | | | | | | |
Net investment income (loss) | | | | | | |
Net realized and unrealized gain (loss) | | | | | | |
Total from investment operations | | | | | | |
Distributions paid to shareholders from: | | | | | | |
| | | | | | |
Net asset value, end of period | | | | | | |
| | | | | | |
|
Ratios to average net assets/supplemental data: | | | | | | |
Net assets, end of period (in 000’s) | | | | | | |
Ratio of total expenses to average net assets | | | | | | |
Ratio of net investment income (loss) to average net assets | | | | | | |
Portfolio turnover rate (d) | | | | | | |
| Based on average shares outstanding. |
| Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is calculated for the time period presented and is not annualized for periods of less than a year. |
| |
| Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities received or delivered from processing creations or redemptions and in-kind transactions. |
See Notes to Financial Statements
First Trust Exchange-Traded Fund VIFinancial Highlights (Continued)For a share outstanding throughout each period First Trust Dorsey Wright Focus 5 ETF (FV)
| Six Months
Ended
3/31/2024
(Unaudited) | |
| | | | | |
Net asset value, beginning of period | | | | | | |
Income from investment operations: | | | | | | |
Net investment income (loss) | | | | | | |
Net realized and unrealized gain (loss) | | | | | | |
Total from investment operations | | | | | | |
Distributions paid to shareholders from: | | | | | | |
| | | | | | |
Net asset value, end of period | | | | | | |
| | | | | | |
|
Ratios to average net assets/supplemental data: | | | | | | |
Net assets, end of period (in 000’s) | | | | | | |
Ratio of total expenses to average net assets (c) | | | | | | |
Ratio of net investment income (loss) to average net assets | | | | | | |
Portfolio turnover rate (e) | | | | | | |
| Based on average shares outstanding. |
| Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is calculated for the time period presented and is not annualized for periods of less than a year. |
| The Fund indirectly bears its proportionate share of fees and expenses incurred by the underlying funds in which the Fund invests. This ratio does not include these indirect fees and expenses. |
| |
| Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities received or delivered from processing creations or redemptions and in-kind transactions. |
See Notes to Financial Statements
First Trust Exchange-Traded Fund VIFinancial Highlights (Continued)For a share outstanding throughout each period First Trust RBA American Industrial Renaissance® ETF (AIRR)
| Six Months
Ended
3/31/2024
(Unaudited) | |
| | | | | |
Net asset value, beginning of period | | | | | | |
Income from investment operations: | | | | | | |
Net investment income (loss) | | | | | | |
Net realized and unrealized gain (loss) | | | | | | |
Total from investment operations | | | | | | |
Distributions paid to shareholders from: | | | | | | |
| | | | | | |
Net asset value, end of period | | | | | | |
| | | | | | |
|
Ratios to average net assets/supplemental data: | | | | | | |
Net assets, end of period (in 000’s) | | | | | | |
Ratio of total expenses to average net assets | | | | | | |
Ratio of net investment income (loss) to average net assets | | | | | | |
Portfolio turnover rate (d) | | | | | | |
| Based on average shares outstanding. |
| Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is calculated for the time period presented and is not annualized for periods of less than a year. |
| |
| Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities received or delivered from processing creations or redemptions and in-kind transactions. |
See Notes to Financial Statements
First Trust Exchange-Traded Fund VIFinancial Highlights (Continued)For a share outstanding throughout each period First Trust Dorsey Wright Momentum & Dividend ETF (DDIV)
| Six Months
Ended
3/31/2024
(Unaudited) | |
| | | | | |
Net asset value, beginning of period | | | | | | |
Income from investment operations: | | | | | | |
Net investment income (loss) | | | | | | |
Net realized and unrealized gain (loss) | | | | | | |
Total from investment operations | | | | | | |
Distributions paid to shareholders from: | | | | | | |
| | | | | | |
Net asset value, end of period | | | | | | |
| | | | | | |
|
Ratios to average net assets/supplemental data: | | | | | | |
Net assets, end of period (in 000’s) | | | | | | |
Ratio of total expenses to average net assets | | | | | | |
Ratio of net investment income (loss) to average net assets | | | | | | |
Portfolio turnover rate (d) | | | | | | |
| Based on average shares outstanding. |
| Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is calculated for the time period presented and is not annualized for periods of less than a year. |
| |
| Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities received or delivered from processing creations or redemptions and in-kind transactions. |
See Notes to Financial Statements
First Trust Exchange-Traded Fund VIFinancial Highlights (Continued)For a share outstanding throughout each period First Trust Dorsey Wright International Focus 5 ETF (IFV)
| Six Months
Ended
3/31/2024
(Unaudited) | |
| | | | | |
Net asset value, beginning of period | | | | | | |
Income from investment operations: | | | | | | |
Net investment income (loss) | | | | | | |
Net realized and unrealized gain (loss) | | | | | | |
Total from investment operations | | | | | | |
Distributions paid to shareholders from: | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Net asset value, end of period | | | | | | |
| | | | | | |
|
Ratios to average net assets/supplemental data: | | | | | | |
Net assets, end of period (in 000’s) | | | | | | |
Ratio of total expenses to average net assets (c) | | | | | | |
Ratio of net investment income (loss) to average net assets | | | | | | |
Portfolio turnover rate (e) | | | | | | |
| Based on average shares outstanding. |
| Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is calculated for the time period presented and is not annualized for periods of less than a year. |
| The Fund indirectly bears its proportionate share of fees and expenses incurred by the underlying funds in which the Fund invests. This ratio does not include these indirect fees and expenses. |
| |
| Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities received or delivered from processing creations or redemptions and in-kind transactions. |
See Notes to Financial Statements
First Trust Exchange-Traded Fund VIFinancial Highlights (Continued)For a share outstanding throughout each period First Trust Dorsey Wright Dynamic Focus 5 ETF (FVC)
| Six Months
Ended
3/31/2024
(Unaudited) | |
| | | | | |
Net asset value, beginning of period | | | | | | |
Income from investment operations: | | | | | | |
Net investment income (loss) | | | | | | |
Net realized and unrealized gain (loss) | | | | | | |
Total from investment operations | | | | | | |
Distributions paid to shareholders from: | | | | | | |
| | | | | | |
Net asset value, end of period | | | | | | |
| | | | | | |
|
Ratios to average net assets/supplemental data: | | | | | | |
Net assets, end of period (in 000’s) | | | | | | |
Ratio of total expenses to average net assets (c) | | | | | | |
Ratio of net investment income (loss) to average net assets | | | | | | |
Portfolio turnover rate (e) | | | | | | |
| Based on average shares outstanding. |
| Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is calculated for the time period presented and is not annualized for periods of less than a year. |
| The Fund indirectly bears its proportionate share of fees and expenses incurred by the underlying funds in which the Fund invests. This ratio does not include these indirect fees and expenses. |
| |
| Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities received or delivered from processing creations or redemptions and in-kind transactions. |
See Notes to Financial Statements
First Trust Exchange-Traded Fund VIFinancial Highlights (Continued)For a share outstanding throughout each period First Trust Indxx Innovative Transaction & Process ETF (LEGR)
| Six Months
Ended
3/31/2024
(Unaudited) | |
| | | | | |
Net asset value, beginning of period | | | | | | |
Income from investment operations: | | | | | | |
Net investment income (loss) | | | | | | |
Net realized and unrealized gain (loss) | | | | | | |
Total from investment operations | | | | | | |
Distributions paid to shareholders from: | | | | | | |
| | | | | | |
Net asset value, end of period | | | | | | |
| | | | | | |
|
Ratios to average net assets/supplemental data: | | | | | | |
Net assets, end of period (in 000’s) | | | | | | |
Ratio of total expenses to average net assets | | | | | | |
Ratio of net investment income (loss) to average net assets | | | | | | |
Portfolio turnover rate (d) | | | | | | |
| Based on average shares outstanding. |
| Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is calculated for the time period presented and is not annualized for periods of less than a year. |
| |
| Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities received or delivered from processing creations or redemptions and in-kind transactions. |
See Notes to Financial Statements
First Trust Exchange-Traded Fund VIFinancial Highlights (Continued)For a share outstanding throughout each period First Trust Nasdaq Artificial Intelligence and Robotics ETF (ROBT)
| Six Months
Ended
3/31/2024
(Unaudited) | |
| | | | | |
Net asset value, beginning of period | | | | | | |
Income from investment operations: | | | | | | |
Net investment income (loss) | | | | | | |
Net realized and unrealized gain (loss) | | | | | | |
Total from investment operations | | | | | | |
Distributions paid to shareholders from: | | | | | | |
| | | | | | |
Net asset value, end of period | | | | | | |
| | | | | | |
|
Ratios to average net assets/supplemental data: | | | | | | |
Net assets, end of period (in 000’s) | | | | | | |
Ratio of total expenses to average net assets | | | | | | |
Ratio of net investment income (loss) to average net assets | | | | | | |
Portfolio turnover rate (e) | | | | | | |
| Based on average shares outstanding. |
| The Fund received a reimbursement from the advisor in the amount of $1,987 in connection with a trade error, which represents less than $0.01 per share. Since the advisor reimbursed the Fund, there was no effect on the Fund’s total return. |
| Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is calculated for the time period presented and is not annualized for periods of less than a year. |
| |
| Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities received or delivered from processing creations or redemptions and in-kind transactions. |
See Notes to Financial Statements
First Trust Exchange-Traded Fund VIFinancial Highlights (Continued)For a share outstanding throughout each period First Trust International Developed Capital Strength ETF (FICS)
| Six Months
Ended
3/31/2024
(Unaudited) | | Period
Ended
9/30/2021 (a) |
| | |
Net asset value, beginning of period | | | | |
Income from investment operations: | | | | |
Net investment income (loss) | | | | |
Net realized and unrealized gain (loss) | | | | |
Total from investment operations | | | | |
Distributions paid to shareholders from: | | | | |
| | | | |
Net asset value, end of period | | | | |
| | | | |
|
Ratios to average net assets/supplemental data: | | | | |
Net assets, end of period (in 000’s) | | | | |
Ratio of total expenses to average net assets | | | | |
Ratio of net investment income (loss) to average net assets | | | | |
Portfolio turnover rate (e) | | | | |
| Inception date is December 15, 2020, which is consistent with the commencement of investment operations and is the date the initial creation units were established. |
| Based on average shares outstanding. |
| Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is calculated for the time period presented and is not annualized for periods of less than a year. |
| |
| Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities received or delivered from processing creations or redemptions and in-kind transactions. |
See Notes to Financial Statements
Notes to Financial Statements
First Trust Exchange-Traded Fund VIMarch 31, 2024 (Unaudited) 1. Organization
First Trust Exchange-Traded Fund VI (the “Trust”) is an open-end management investment company organized as a Massachusetts business trust on June 4, 2012, and is registered with the Securities and Exchange Commission under the Investment Company Act of 1940, as amended (the “1940 Act”).
The Trust currently consists of thirty-two exchange-traded funds that are offering shares. This report covers the fourteen funds (each a “Fund” and collectively, the “Funds”) listed below. The shares of each Fund are listed and traded on Nasdaq, Inc. (“Nasdaq”).
First Trust NASDAQ Technology Dividend Index Fund – (ticker “TDIV”) |
Multi-Asset Diversified Income Index Fund – (ticker “MDIV”) |
First Trust S&P International Dividend Aristocrats ETF – (ticker “FID”) |
First Trust BuyWrite Income ETF – (ticker “FTHI”) |
First Trust Nasdaq BuyWrite Income ETF – (ticker “FTQI”) |
First Trust Rising Dividend Achievers ETF – (ticker “RDVY”) |
First Trust Dorsey Wright Focus 5 ETF – (ticker “FV”) |
First Trust RBA American Industrial Renaissance® ETF – (ticker “AIRR”) |
First Trust Dorsey Wright Momentum & Dividend ETF – (ticker “DDIV”) |
First Trust Dorsey Wright International Focus 5 ETF – (ticker “IFV”) |
First Trust Dorsey Wright Dynamic Focus 5 ETF – (ticker “FVC”) |
First Trust Indxx Innovative Transaction & Process ETF – (ticker “LEGR”) |
First Trust Nasdaq Artificial Intelligence and Robotics ETF – (ticker “ROBT”) |
First Trust International Developed Capital Strength ETF – (ticker “FICS”) |
TDIV operates as a non-diversified series of the Trust. Each of MDIV, FID, FTHI, FTQI, RDVY, FV, AIRR, DDIV, IFV, FVC, LEGR, ROBT and FICS operates as a diversified open-end management investment company as defined in Section 5(b) of the 1940 Act. Each Fund represents a separate series of shares of beneficial interest in the Trust. Unlike conventional mutual funds, each Fund issues and redeems shares on a continuous basis, at net asset value (“NAV”), only in large blocks of shares known as “Creation Units.” The investment objective of each Fund, except for FTHI and FTQI, is to seek investment results that correspond generally to the price and yield (before the Fund’s fees and expenses) of the following indices:
| |
First Trust NASDAQ Technology Dividend Index Fund | Nasdaq Technology DividendTM Index |
Multi-Asset Diversified Income Index Fund | Nasdaq US Multi-Asset Diversified IncomeTM Index |
First Trust S&P International Dividend Aristocrats ETF | S&P International Dividend Aristocrats Index |
First Trust Rising Dividend Achievers ETF | Nasdaq US Rising Dividend AchieversTM Index |
First Trust Dorsey Wright Focus 5 ETF | Dorsey Wright Focus FiveTM Index |
First Trust RBA American Industrial Renaissance® ETF | Richard Bernstein Advisors American Industrial Renaissance® Index |
First Trust Dorsey Wright Momentum & Dividend ETF | Dorsey Wright Momentum Plus Dividend YieldTM Index |
First Trust Dorsey Wright International Focus 5 ETF | Dorsey Wright International Focus FiveTM Index |
First Trust Dorsey Wright Dynamic Focus 5 ETF | Dorsey Wright Focus FiveTM Index |
First Trust Indxx Innovative Transaction & Process ETF | |
First Trust Nasdaq Artificial Intelligence and Robotics ETF | Nasdaq CTA Artificial Intelligence and RoboticsTM Index |
First Trust International Developed Capital Strength ETF | The International Developed Capital StrengthTM Index |
FTHI and FTQI are actively managed exchange-traded funds. The primary investment objective of FTHI is to provide current income. FTHI’s secondary investment objective is to provide capital appreciation. Under normal market conditions, FTHI pursues its investment objectives by investing primarily in equity securities listed on U.S. exchanges and by utilizing an “option strategy” consisting of writing (selling) U.S. exchange-traded call options on the Standard & Poor’s 500® Index (the “S&P 500®”). The Fund employs an option strategy in which it writes U.S. exchange-traded call options on the S&P 500® in order to seek additional cash flow in the form of premiums on the options that may be distributed to shareholders on a monthly basis. A premium is the income received by an investor who sells or writes an option contract to another party. The market value of the option strategy may be up to 20% of the Fund’s overall NAV.
Notes to Financial Statements (Continued)
First Trust Exchange-Traded Fund VIMarch 31, 2024 (Unaudited) The investment objective of FTQI is to provide current income. Under normal market conditions, FTQI pursues its investment objective by investing primarily in equity securities listed on U.S. exchanges and by utilizing an “option strategy” consisting of writing (selling) U.S. exchange-traded call options on the Nasdaq-100 Index® (the “Nasdaq-100®”). Under normal market conditions, FTQI will invest at least 80% of its net assets (plus any borrowings for investment purposes) in the components of the Nasdaq Composite Index. FTQI employs an option strategy in which it writes U.S. exchange-traded call options on the Nasdaq-100® in order to seek additional cash flow in the form of premiums on the options. A premium is the income received by an investor who sells an option contract to another party. In exchange for the premiums received in connection with its written U.S. exchange-traded call options on the Nasdaq-100®, FTQI forfeits any upside potential of the Nasdaq-100® above the strike price of the written call options. It is expected that FTQI will distribute premiums to shareholders on a monthly basis. The premiums received from the sale of call options are expected to be FTQI’s primary source of income. Under normal market conditions, FTQI will seek to distribute the majority of the option premiums collected. FTQI does not target a specific income level, but seeks to provide investors with current income primarily from options premiums through writing calls with a notional value of 50-100% of FTQI’s assets.
2. Significant Accounting Policies
The Funds are each considered an investment company and follow accounting and reporting guidance under Financial Accounting Standards Board Accounting Standards Codification Topic 946, “Financial Services-Investment Companies.” The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of the financial statements. The preparation of the financial statements in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.
Each Fund’s NAV is determined daily as of the close of regular trading on the New York Stock Exchange (“NYSE”), normally 4:00 p.m. Eastern time, on each day the NYSE is open for trading. If the NYSE closes early on a valuation day, the NAV is determined as of that time. Foreign securities are priced using data reflecting the earlier closing of the principal markets for those securities. Each Fund’s NAV is calculated by dividing the value of all assets of each Fund (including accrued interest and dividends), less all liabilities (including accrued expenses and dividends declared but unpaid), by the total number of shares outstanding.
Each Fund’s investments are valued daily at market value or, in the absence of market value with respect to any portfolio securities, at fair value. Market value prices represent readily available market quotations such as last sale or official closing prices from a national or foreign exchange (i.e., a regulated market) and are primarily obtained from third-party pricing services. Fair value prices represent any prices not considered market value prices and are either obtained from a third-party pricing service or are determined by the Pricing Committee of the Funds’ investment advisor, First Trust Advisors L.P. (“First Trust” or the “Advisor”), in accordance with valuation procedures approved by the Trust’s Board of Trustees, and in accordance with provisions of the 1940 Act and rules thereunder. Investments valued by the Advisor’s Pricing Committee, if any, are footnoted as such in the footnotes to the Portfolio of Investments. Each Fund’s investments are valued as follows:
Common stocks, preferred stocks, master limited partnerships (“MLPs”), real estate investment trusts (“REITs”), exchange-traded funds, and other equity securities listed on any national or foreign exchange (excluding Nasdaq and the London Stock Exchange Alternative Investment Market (“AIM”)) are valued at the last sale price on the exchange on which they are principally traded or, for Nasdaq and AIM securities, the official closing price. Securities traded on more than one securities exchange are valued at the last sale price or official closing price, as applicable, at the close of the securities exchange representing the primary exchange for such securities.
Securities trading on foreign exchanges or over-the-counter markets that close prior to the NYSE close may be valued using a systematic fair valuation model provided by a third-party pricing service. If these foreign securities meet certain criteria in relation to the valuation model, their valuation is systematically adjusted to reflect the impact of movement in the U.S. market after the close of the foreign markets.
Shares of open-end funds are valued based on NAV per share.
Equity securities traded in an over-the-counter market are valued at the close price or the last trade price.
Overnight repurchase agreements are valued at amortized cost when it represents the most appropriate reflection of fair market value.
Notes to Financial Statements (Continued)
First Trust Exchange-Traded Fund VIMarch 31, 2024 (Unaudited) Exchange-traded options contracts are valued at the closing price in the market where such contracts are principally traded. If no closing price is available, exchange-traded options contracts are valued at the mean of their most recent bid and ask price, if both are available. Options contracts traded in the over-the-counter market may be valued as follows, depending on the market in which the investment trades: (1) the mean of the most recent bid and ask price, if available; or (2) a price based on the equivalent exchange-traded option.
U.S. Treasuries are valued on the basis of valuations provided by a third-party pricing service approved by the Trust’s Board of Trustees.
Fixed income and other debt securities having a remaining maturity of sixty days or less when purchased are fair valued at cost adjusted for amortization of premiums and accretion of discounts (amortized cost), provided the Advisor’s Pricing Committee has determined that the use of amortized cost is an appropriate reflection of fair value given market and issuer specific conditions existing at the time of the determination. Factors that may be considered in determining the appropriateness of the use of amortized cost include, but are not limited to, the following:
1)
the credit conditions in the relevant market and changes thereto;
2)
the liquidity conditions in the relevant market and changes thereto;
3)
the interest rate conditions in the relevant market and changes thereto (such as significant changes in interest rates);
4)
issuer-specific conditions (such as significant credit deterioration); and
5)
any other market-based data the Advisor’s Pricing Committee considers relevant. In this regard, the Advisor’s Pricing Committee may use last-obtained market-based data to assist it when valuing portfolio securities using amortized cost.
Certain securities may not be able to be priced by pre-established pricing methods. Such securities may be valued by the Advisor’s Pricing Committee at fair value. These securities generally include, but are not limited to, restricted securities (securities which may not be publicly sold without registration under the Securities Act of 1933, as amended) for which a third-party pricing service is unable to provide a market price; securities whose trading has been formally suspended; a security whose market or fair value price is not available from a pre-established pricing source; a security with respect to which an event has occurred that is likely to materially affect the value of the security after the market has closed but before the calculation of a Fund’s NAV or make it difficult or impossible to obtain a reliable market quotation; and a security whose price, as provided by the third-party pricing service, does not reflect the security’s fair value. As a general principle, the current fair value of a security would appear to be the amount which the owner might reasonably expect to receive for the security upon its current sale. When fair value prices are used, generally they will differ from market quotations or official closing prices on the applicable exchanges. A variety of factors may be considered in determining the fair value of such securities, including, but not limited to, the following:
1)
the last sale price on the exchange on which they are principally traded or, for Nasdaq and AIM securities, the official closing price;
3)
the size of the holding;
4)
the initial cost of the security;
5)
transactions in comparable securities;
6)
price quotes from dealers and/or third-party pricing services;
7)
relationships among various securities;
8)
information obtained by contacting the issuer, analysts, or the appropriate stock exchange;
9)
an analysis of the issuer’s financial statements;
10)
the existence of merger proposals or tender offers that might affect the value of the security; and
11)
other relevant factors.
If the securities in question are foreign securities, the following additional information may be considered:
1)
the last sale price on the exchange on which they are principally traded;
2)
the value of similar foreign securities traded on other foreign markets;
3)
ADR trading of similar securities;
4)
closed-end fund or exchange-traded fund trading of similar securities;
5)
foreign currency exchange activity;
6)
the trading prices of financial products that are tied to baskets of foreign securities;
7)
factors relating to the event that precipitated the pricing problem;
Notes to Financial Statements (Continued)
First Trust Exchange-Traded Fund VIMarch 31, 2024 (Unaudited) 8)
whether the event is likely to recur;
9)
whether the effects of the event are isolated or whether they affect entire markets, countries or regions; and
10)
other relevant factors.
In addition, differences between the prices used to calculate a Fund’s NAV and the prices used by such Fund’s corresponding index could result in a difference between a Fund’s performance and the performance of its underlying index.
Because foreign markets may be open on different days than the days during which investors may transact in the shares of a Fund, the value of the Fund’s securities may change on the days when investors are not able to transact in the shares of the Fund. The value of the securities denominated in foreign currencies is converted into U.S. dollars using exchange rates determined daily as of the close of regular trading on the NYSE. Any use of a different rate from the rates used by a relevant index may adversely affect the Fund’s ability to track the index.
The Funds are subject to fair value accounting standards that define fair value, establish the framework for measuring fair value and provide a three-level hierarchy for fair valuation based upon the inputs to the valuation as of the measurement date. The three levels of the fair value hierarchy are as follows:
• Level 1 – Level 1 inputs are quoted prices in active markets for identical investments. An active market is a market in which transactions for the investment occur with sufficient frequency and volume to provide pricing information on an ongoing basis.
• Level 2 – Level 2 inputs are observable inputs, either directly or indirectly, and include the following:
o Quoted prices for similar investments in active markets.
o Quoted prices for identical or similar investments in markets that are non-active. A non-active market is a market where there are few transactions for the investment, the prices are not current, or price quotations vary substantially either over time or among market makers, or in which little information is released publicly.
o Inputs other than quoted prices that are observable for the investment (for example, interest rates and yield curves observable at commonly quoted intervals, volatilities, prepayment speeds, loss severities, credit risks, and default rates).
o Inputs that are derived principally from or corroborated by observable market data by correlation or other means.
• Level 3 – Level 3 inputs are unobservable inputs. Unobservable inputs may reflect the reporting entity’s own assumptions about the assumptions that market participants would use in pricing the investment.
The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in those investments. A summary of the inputs used to value each Fund’s investments as of March 31, 2024, is included with each Fund’s Portfolio of Investments.
B. Securities Transactions and Investment Income
Securities transactions are recorded as of the trade date. Realized gains and losses from securities transactions are recorded on the identified cost basis. Dividend income is recorded on the ex-dividend date except that certain dividends from foreign securities are recorded as soon as the information becomes available after the ex-dividend date. Interest income is recorded daily on the accrual basis.
Withholding taxes and tax reclaims on foreign dividends have been provided for in accordance with each Fund’s understanding of the applicable country’s tax rules and rates.
Distributions received from a Fund’s investments in MLPs generally are comprised of return of capital and investment income. A Fund records estimated return of capital and investment income based on historical information available from each MLP. These estimates may subsequently be revised based on information received from the MLPs after their tax reporting periods are concluded.
Distributions received from a Fund’s investments in REITs may be comprised of return of capital, capital gains, and income. The actual character of the amounts received during the year are not known until after the REITs’ fiscal year end. A Fund records the character of distributions received from the REITs during the year based on estimates available. The characterization of distributions received by a Fund may be subsequently revised based on information received from the REITs after their tax reporting periods conclude.
Notes to Financial Statements (Continued)
First Trust Exchange-Traded Fund VIMarch 31, 2024 (Unaudited) C. Options Contracts
FTHI and FTQI are subject to equity price risk in the normal course of pursuing their investment objectives. FTHI may write (sell) U.S. exchange-traded call options on the S&P 500® and FTQI may write (sell) U.S. exchange-traded call options on the Nasdaq-100®, to hedge against changes in the value of equities. Additionally, these two Funds seek to generate additional income, in the form of premiums received, from writing (selling) the options. FTHI may write (sell) call options or put options and FTQI may write (sell) call options (“options”) on all or a portion of the equity securities held in their respective portfolios and on securities indices in their respective portfolios as determined to be appropriate by the Advisor, consistent with their investment objectives. Options on securities indices are designed to reflect price fluctuations in a group of securities or segment of the securities market rather than price fluctuations in a single security and are similar to options on single securities, except that the exercise of securities index options requires cash settlement payments and does not involve the actual purchase or sale of securities. When a Fund writes (sells) an option, an amount equal to the premium received by the Fund is included in “Options written, at value” on the Statements of Assets and Liabilities. Options are marked-to-market daily and their value will be affected by changes in the value and dividend rates of the underlying equity securities, changes in interest rates, changes in the actual or perceived volatility of the securities markets and the underlying equity securities and the remaining time to the options’ expiration. The value of options may also be adversely affected if the market for the options becomes less liquid or trading volume diminishes.
Options written (sold) by FTHI and FTQI will either be exercised, expire, or be canceled pursuant to a closing transaction. If an index option written (sold) by either of these two Funds is exercised, the Fund would be obligated to deliver cash equal to the difference between the closing price of the stock index and the exercise price of the option expressed in dollars times a specified multiple. If the price of the index is less than the option’s strike price, the index option will likely expire without being exercised. In the case of a stock option, if the price of the underlying equity security exceeds the option’s exercise price, it is likely that the option holder will exercise the option. In this case, the option premium received by the Fund will be added to the amount realized on the sale of the underlying security for purposes of determining gain or loss. If the price of the underlying equity security is less than the option’s strike price, the option will likely expire without being exercised. The option premium received by each Fund will, in this case, be treated as short-term capital gain on the expiration date of the option. Gain or loss on options is presented separately as “Net realized gain (loss) on written options contracts” on the Statements of Operations.
The index options that FTHI and FTQI write (sell) give the option holder the right, but not the obligation, to receive an amount of cash based on the difference between the closing level of the stock index and the exercise price on or prior to the option’s expiration date. The stock options that FTHI and FTQI write (sell) give the option holder the right, but not the obligation, to purchase securities from each Fund at the strike price on or prior to the option’s expiration date. The ability to successfully implement the writing (selling) of call or put options depends on the ability of the Advisor to predict pertinent market movements, which cannot be assured. As the writer (seller) of a call option, FTHI foregoes, during the option’s life, the opportunity to profit from increases in the market value of the security covering the option above the sum of the premium and the strike price of the option, but has retained the risk of loss should the price of the underlying security decline. The writer (seller) of an option has no control over the time when it may be required to fulfill its obligation as a writer (seller) of the option. Once an option writer (seller) has received an exercise notice, it cannot effect a closing purchase transaction in order to terminate its obligation under the option and must deliver the underlying security to the option holder at the exercise price.
The books and records of the Funds are maintained in U.S. dollars. Foreign currencies, investments and other assets and liabilities are translated into U.S. dollars at the exchange rates prevailing at the end of the period. Purchases and sales of investments and items of income and expense are translated on the respective dates of such transactions. Unrealized gains and losses on assets and liabilities, other than investments in securities, which result from changes in foreign currency exchange rates have been included in “Net change in unrealized appreciation (depreciation) on foreign currency translation” on the Statements of Operations. Unrealized gains and losses on investments in securities which result from changes in foreign exchange rates are included with fluctuations arising from changes in market price and are shown in “Net change in unrealized appreciation (depreciation) on investments” on the Statements of Operations. Net realized foreign currency gains and losses include the effect of changes in exchange rates between trade date and settlement date on investment security transactions, foreign currency transactions and interest and dividends received and are included in “Net realized gain (loss) on foreign currency transactions” on the Statements of Operations. The portion of foreign currency gains and losses related to fluctuations in exchange rates between the initial purchase settlement date and subsequent sale trade date is included in “Net realized gain (loss) on investments” on the Statements of Operations.
Notes to Financial Statements (Continued)
First Trust Exchange-Traded Fund VIMarch 31, 2024 (Unaudited) E. Affiliated Transactions
MDIV, FV, IFV, and FVC invest in securities of affiliated funds. Each Fund’s investment performance and risks are directly related to the investment performance and risks of the affiliated funds. The affiliated funds’ financial statements may be found at SEC.gov. Dividend income, if any, realized gains and losses, and change in appreciation (depreciation) from affiliated funds are presented on the Statements of Operations.
Amounts relating to investments in affiliated funds in MDIV at March 31, 2024, and for the six months then ended are as follows:
| | | | | Change in
Unrealized
Appreciation
(Depreciation) | | | |
First Trust Tactical High Yield ETF | | | | | | | | |
Amounts relating to investments in affiliated funds in FV at March 31, 2024, and for the six months then ended are as follows:
| | | | | Change in
Unrealized
Appreciation
(Depreciation) | | | |
First Trust Consumer Discretionary AlphaDEX® Fund | | | | | | | | |
First Trust Dow Jones Internet Index Fund | | | | | | | | |
First Trust Industrials/Producer Durables AlphaDEX® Fund | | | | | | | | |
First Trust Nasdaq Semiconductor ETF | | | | | | | | |
First Trust NASDAQ-100- Technology Sector Index Fund | | | | | | | | |
| | | | | | | | |
Amounts relating to investments in affiliated funds in IFV at March 31, 2024, and for the six months then ended are as follows:
| | | | | Change in
Unrealized
Appreciation
(Depreciation) | | | |
First Trust Dow Jones Global Select Dividend Index Fund | | | | | | | | |
First Trust India NIFTY 50 Equal Weight ETF | | | | | | | | |
First Trust Japan AlphaDEX® Fund | | | | | | | | |
Notes to Financial Statements (Continued)
First Trust Exchange-Traded Fund VIMarch 31, 2024 (Unaudited) | | | | | Change in Unrealized Appreciation (Depreciation) | | | |
First Trust Latin America AlphaDEX® Fund | | | | | | | | |
First Trust Switzerland AlphaDEX® Fund | | | | | | | | |
First Trust United Kingdom AlphaDEX® Fund | | | | | | | | |
| | | | | | | | |
Amounts relating to investments in affiliated funds in FVC at March 31, 2024, and for the six months then ended are as follows:
| | | | | Change in
Unrealized
Appreciation
(Depreciation) | | | |
First Trust Consumer Discretionary AlphaDEX® Fund | | | | | | | | |
First Trust Dow Jones Internet Index Fund | | | | | | | | |
First Trust Enhanced Short Maturity ETF | | | | | | | | |
First Trust Industrials/Producer Durables AlphaDEX® Fund | | | | | | | | |
First Trust Nasdaq Semiconductor ETF | | | | | | | | |
First Trust NASDAQ- 100-Technology Sector Index Fund | | | | | | | | |
| | | | | | | | |
F. Offsetting on the Statements of Assets and Liabilities
Offsetting assets and liabilities requires entities to disclose both gross and net information about instruments and transactions eligible for offset on the Statements of Assets and Liabilities and disclose instruments and transactions subject to master netting or similar agreements. These disclosure requirements are intended to help investors and other financial statement users better assess the effect or potential effect of offsetting arrangements on a Fund’s financial position. The transactions subject to offsetting disclosures are derivative instruments, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions.
This disclosure, if applicable, is included within each Fund’s Portfolio of Investments under the heading “Offsetting Assets and Liabilities.” For financial reporting purposes, the Funds do not offset financial assets and financial liabilities that are subject to master netting arrangements (“MNAs”) or similar agreements on the Statements of Assets and Liabilities. MNAs provide the right, in the event of default (including bankruptcy and insolvency), for the non-defaulting counterparty to liquidate the collateral and calculate the net exposure to the defaulting party or request additional collateral.
The Funds may lend securities representing up to 33 1/3% of the value of their total assets to broker-dealers, banks and other institutions to generate additional income. When a Fund loans its portfolio securities, it will receive, at the inception of each loan, collateral equal to at least 102% (for domestic securities) or 105% (for international securities) of the market value of the loaned
Notes to Financial Statements (Continued)
First Trust Exchange-Traded Fund VIMarch 31, 2024 (Unaudited) securities. The collateral amount is valued at the beginning of each business day and is compared to the market value of the loaned securities from the prior business day to determine if additional collateral is required. If additional collateral is required, a request is sent to the borrower. Securities lending involves the risk that the Fund may lose money because the borrower of the Fund’s loaned securities fails to return the securities in a timely manner or at all. The Fund could also lose money in the event of (i) a decline in the value of the collateral provided for the loaned securities, (ii) a decline in the value of any investments made with cash collateral or (iii) an increase in the value of the loaned securities if the borrower does not increase the collateral accordingly and the borrower fails to return the securities. These events could also trigger adverse tax consequences for the Funds.
Under the Funds’ Securities Lending Agency Agreement, the securities lending agent will generally bear the risk that a borrower may default on its obligation to return loaned securities. The Bank of New York Mellon (“BNYM”) acts as the Funds’ securities lending agent and is responsible for executing the lending of the portfolio securities to creditworthy borrowers. The Funds, however, will be responsible for the risks associated with the investment of cash collateral. A Fund may lose money on its investment of cash collateral, which may affect its ability to repay the collateral to the borrower without the use of other Fund assets. Each Fund that engages in securities lending receives compensation (net of any rebate and securities lending agent fees) for lending its securities. Compensation can be in the form of fees received from the securities lending agent or dividends or interest earned from the investment of cash collateral. The fees received from the securities lending agent are accrued daily. The dividend and interest earned on the securities loaned is accounted for in the same manner as other dividend and interest income. At March 31, 2024, LEGR and ROBT had securities in the securities lending program. During the six months ended March 31, 2024, AIRR, LEGR, and ROBT participated in the securities lending program.
In the event of a default by a borrower with respect to any loan, BNYM will exercise any and all remedies provided under the applicable borrower agreement to make the Funds whole. These remedies include purchasing replacement securities by applying the collateral held from the defaulting broker against the purchase cost of the replacement securities. If, despite such efforts by BNYM to exercise these remedies, a Fund sustains losses as a result of a borrower’s default, BNYM will indemnify the Fund by purchasing replacement securities at its own expense, or paying the Fund an amount equal to the market value of the replacement securities, subject to certain limitations which are set forth in detail in the Securities Lending Agency Agreement between the Trust on behalf of the Funds and BNYM.
Repurchase agreements involve the purchase of securities subject to the seller’s agreement to repurchase the securities at a mutually agreed upon date and price, under the terms of a Master Repurchase Agreement (“MRA”). During the term of a repurchase agreement, the value of the underlying securities held as collateral on behalf of a Fund, including accrued interest, is required to exceed the value of the repurchase agreement, including accrued interest. The underlying securities for all repurchase agreements are held at the Funds’ custodian or designated sub-custodians under tri-party repurchase agreements.
MRAs govern transactions between a Fund and select counterparties. The MRAs contain provisions for, among other things, initiation, income payments, events of default, and maintenance of collateral for repurchase agreements.
Repurchase agreements received for lending securities are collateralized by U.S. Treasury securities. The U.S. Treasury securities are held in a joint custody account at BNYM on behalf of the Funds participating in the securities lending program. In the event the counterparty defaults on the repurchase agreement, the U.S. Treasury securities can either be maintained as part of a Fund’s portfolio or sold for cash. A Fund could suffer a loss to the extent that the proceeds from the sale of the underlying collateral held by the Fund are less than the repurchase price and the Fund’s costs associated with the delay and enforcement of the MRA.
While the Funds may invest in repurchase agreements, any repurchase agreements held by the Funds during the six months ended March 31, 2024, were received as collateral for lending securities.
I. Dividends and Distributions to Shareholders
Dividends from net investment income of each Fund, if any, are declared and paid quarterly, with the exception of MDIV, FTHI and FTQI which declare and pay monthly, or as the Board of Trustees may determine from time to time. Distributions of net realized capital gains earned by each Fund, if any, are distributed at least annually. Each Fund may also designate a portion of the amount paid to redeeming shareholders as a distribution for tax purposes.
Distributions from net investment income and realized capital gains are determined in accordance with federal income tax regulations, which may differ from U.S. GAAP. Certain capital accounts in the financial statements are periodically adjusted for permanent
Notes to Financial Statements (Continued)
First Trust Exchange-Traded Fund VIMarch 31, 2024 (Unaudited) differences in order to reflect their tax character. These permanent differences are primarily due to the varying treatment of income and gain/loss on significantly modified portfolio securities held by the Funds and have no impact on net assets or NAV per share. Temporary differences, which arise from recognizing certain items of income, expense and gain/loss in different periods for financial statement and tax purposes, will reverse at some time in the future.
The tax character of distributions paid by each Fund during the fiscal year ended September 30, 2023 was as follows:
| Distributions
paid from
Ordinary
Income | Distributions
paid from
Capital
Gains | Distributions
paid from
Return of
Capital |
First Trust NASDAQ Technology Dividend Index Fund | | | |
Multi-Asset Diversified Income Index Fund | | | |
First Trust S&P International Dividend Aristocrats ETF | | | |
First Trust BuyWrite Income ETF | | | |
First Trust Nasdaq BuyWrite Income ETF | | | |
First Trust Rising Dividend Achievers ETF | | | |
First Trust Dorsey Wright Focus 5 ETF | | | |
First Trust RBA American Industrial Renaissance® ETF | | | |
First Trust Dorsey Wright Momentum & Dividend ETF | | | |
First Trust Dorsey Wright International Focus 5 ETF | | | |
First Trust Dorsey Wright Dynamic Focus 5 ETF | | | |
First Trust Indxx Innovative Transaction & Process ETF | | | |
First Trust Nasdaq Artificial Intelligence and Robotics ETF | | | |
First Trust International Developed Capital Strength ETF | | | |
As of September 30, 2023, the components of distributable earnings on a tax basis for each Fund were as follows:
| Undistributed
Ordinary
Income | Accumulated
Capital and
Other
Gain (Loss) | Net
Unrealized
Appreciation
(Depreciation) |
First Trust NASDAQ Technology Dividend Index Fund | | | |
Multi-Asset Diversified Income Index Fund | | | |
First Trust S&P International Dividend Aristocrats ETF | | | |
First Trust BuyWrite Income ETF | | | |
First Trust Nasdaq BuyWrite Income ETF | | | |
First Trust Rising Dividend Achievers ETF | | | |
First Trust Dorsey Wright Focus 5 ETF | | | |
First Trust RBA American Industrial Renaissance® ETF | | | |
First Trust Dorsey Wright Momentum & Dividend ETF | | | |
First Trust Dorsey Wright International Focus 5 ETF | | | |
First Trust Dorsey Wright Dynamic Focus 5 ETF | | | |
First Trust Indxx Innovative Transaction & Process ETF | | | |
First Trust Nasdaq Artificial Intelligence and Robotics ETF | | | |
First Trust International Developed Capital Strength ETF | | | |
J. Income and Other Taxes
Each Fund intends to continue to qualify as a regulated investment company by complying with the requirements under Subchapter M of the Internal Revenue Code of 1986, as amended, which includes distributing substantially all of its net investment income and net realized gains to shareholders. Accordingly, no provision has been made for federal and state income taxes. However, due to the timing and amount of distributions, each Fund may be subject to an excise tax of 4% of the amount by which approximately 98% of each Fund’s taxable income exceeds the distributions from such taxable income for the calendar year.
Notes to Financial Statements (Continued)
First Trust Exchange-Traded Fund VIMarch 31, 2024 (Unaudited) Certain countries assess a capital gains tax on securities sold in their local markets. This tax is accrued as the securities in these foreign markets appreciate in value and is paid at the time of sale to the extent a capital gain is realized. Taxes accrued on securities in an unrealized appreciation position are included in “Net change in unrealized appreciation (depreciation) on deferred foreign capital gains tax” on the Statements of Operations. The capital gains tax paid on securities sold, if any, is included in “Net realized gain (loss) on foreign capital gains tax” on the Statements of Operations.
India’s Finance Bill, 2018 (“Finance Bill, 2018”) was enacted into law on March 29, 2018 and amongst other provisions, it introduced a long-term capital gains tax beginning April 1, 2018. Long-term capital gains on the sale of listed shares in excess of INR 0.1 million are taxed at the rate of 10% (plus applicable surcharge and cess (which is a type of tax)) subject to satisfaction of certain conditions. Long-term capital gains accruing as of January 31, 2018 are considered exempt due to a grandfather clause in the provision. The aforesaid exemption from long-term capital gains tax is available with respect to shares acquired between October 1, 2004 and March 31, 2018 only if on such acquisitions Securities Transaction Tax (“STT”) was chargeable. Certain exceptions in this regard, such as acquisition of shares in a public offer, bonus, rights issued, etc. for which the condition of chargeability of STT on acquisition is not applicable, have been notified.
In the case of the sale of listed shares held by a Fund for one year or less, the income is classified as short-term capital gains and is taxable at 15% (plus applicable surcharge and cess) provided the shares are sold on the stock exchange and subjected to STT. For above purposes, the applicable rate of surcharge is 2% or 5% (depending on the level of income of the Fund). The Finance Bill, 2018 increases the cess imposed on the sum of tax and surcharge from 3% to 4%. The cess 4% rate is applied to the capital gains tax, resulting in a higher effective rate of capital gains tax.
Where the sale of shares is outside the stock exchange and not subject to STT, the long-term capital gains are taxed at 10% (plus applicable surcharge and cess) and short-term capital gains are taxed at 30% (plus applicable surcharge and cess). The Finance Bill, 2018, approves the carry forward of long-term capital losses to be offset against long-term capital gains. Short-term losses can be netted against both short-term gains and long-term gains.
Until March 31, 2020, dividends received by a Fund from Indian companies were exempt from tax in India because Indian companies were required to pay dividend distribution tax. The Indian Finance Act, 2020 has amended the dividend taxation framework effective April 1, 2020 and accordingly dividends would now be taxable in the hands of the shareholders at 20%, plus applicable surcharge and cess. Subsequent to the Indian Finance Act, 2020, “The Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Bill, 2020” (the “Bill”) was enacted into law and is effective retroactively to April 1, 2020. The Bill caps the maximum surcharge at 15% of the tax on dividend income earned by the Fund. The highest effective tax rate proposed for non-corporate entities on dividends will be 23.92%. Note the Fund will not obtain relief under the US-India tax treaty as the treaty rate of 25% is higher than the domestic rate. Any excess taxes withheld can be offset against capital gains tax liability during the year or claimed as a refund in the annual tax return.
Please note that the above description is based on current provisions of Indian law, and any change or modification made by subsequent legislation, regulation, or administrative or judicial decision could increase the Indian tax liability of a Fund and thus reduce the return to a Fund’s shareholders. There can be no assurance that the Indian tax authorities and/or regulators will not take a position contrary to the views expressed herein. If the Indian tax authorities and/or regulators take a position contrary to the views expressed herein, adverse unpredictable consequences may follow.
The Funds are subject to accounting standards that establish a minimum threshold for recognizing, and a system for measuring, the benefits of a tax position taken or expected to be taken in a tax return. For all of the Funds, with the exception of FICS, taxable years ended 2020, 2021, 2022, and 2023 remain open to federal and state audit. The taxable years ended 2021, 2022, and 2023 remain open to federal and state audit for FICS. As of March 31, 2024, management has evaluated the application of these standards to the Funds and has determined that no provision for income tax is required in the Funds’ financial statements for uncertain tax positions.
Each Fund intends to utilize provisions of the federal income tax laws, which allow it to carry a realized capital loss forward indefinitely following the year of the loss and offset such loss against any future realized capital gains. Each Fund is subject to certain limitations under U.S. tax rules on the use of capital loss carryforwards and net unrealized built-in losses. These limitations apply when there has been a 50% change in ownership. At September 30, 2023, for federal income tax purposes, each applicable Fund had a capital loss carryforward available that is shown in the following table, to the extent provided by regulations, to offset future capital gains. To the extent that these loss carryforwards are used to offset future capital gains, it is probable that the capital gains so offset will not be distributed to each applicable Fund’s shareholders.
Notes to Financial Statements (Continued)
First Trust Exchange-Traded Fund VIMarch 31, 2024 (Unaudited)
| Non-Expiring
Capital Loss
Carryforwards |
First Trust NASDAQ Technology Dividend Index Fund | |
Multi-Asset Diversified Income Index Fund | |
First Trust S&P International Dividend Aristocrats ETF | |
First Trust BuyWrite Income ETF | |
First Trust Nasdaq BuyWrite Income ETF | |
First Trust Rising Dividend Achievers ETF | |
First Trust Dorsey Wright Focus 5 ETF | |
First Trust RBA American Industrial Renaissance® ETF | |
First Trust Dorsey Wright Momentum & Dividend ETF | |
First Trust Dorsey Wright International Focus 5 ETF | |
First Trust Dorsey Wright Dynamic Focus 5 ETF | |
First Trust Indxx Innovative Transaction & Process ETF | |
First Trust Nasdaq Artificial Intelligence and Robotics ETF | |
First Trust International Developed Capital Strength ETF | |
Certain losses realized during the current fiscal year may be deferred and treated as occurring on the first day of the following fiscal year for federal income tax purposes. For the fiscal year ended September 30, 2023, the Funds had no net late year ordinary or capital losses.
As of March 31, 2024, the aggregate cost, gross unrealized appreciation, gross unrealized depreciation, and net unrealized appreciation/(depreciation) on investments (including short positions and derivatives, if any) for federal income tax purposes were as follows:
| | Gross Unrealized
Appreciation | Gross Unrealized
(Depreciation) | Net Unrealized
Appreciation
(Depreciation) |
First Trust NASDAQ Technology Dividend Index Fund | | | | |
Multi-Asset Diversified Income Index Fund | | | | |
First Trust S&P International Dividend Aristocrats ETF | | | | |
First Trust BuyWrite Income ETF | | | | |
First Trust Nasdaq BuyWrite Income ETF | | | | |
First Trust Rising Dividend Achievers ETF | | | | |
First Trust Dorsey Wright Focus 5 ETF | | | | |
First Trust RBA American Industrial Renaissance® ETF | | | | |
First Trust Dorsey Wright Momentum & Dividend ETF | | | | |
First Trust Dorsey Wright International Focus 5 ETF | | | | |
First Trust Dorsey Wright Dynamic Focus 5 ETF | | | | |
First Trust Indxx Innovative Transaction & Process ETF | | | | |
First Trust Nasdaq Artificial Intelligence and Robotics ETF | | | | |
First Trust International Developed Capital Strength ETF | | | | |
Expenses that are directly related to the Funds are charged to First Trust pursuant to the Investment Management Agreement, with the exception of advisory fees, distribution and service fees pursuant to a Rule 12b-1 plan, if any, brokerage expenses, pro rata share of fees and expenses attributable to investments in other investment companies (“acquired fund fees and expenses”), taxes, interest, and extraordinary expenses, which are paid by each respective Fund. See Note 3 relating to a reduction in MDIV’s annual unitary management fee. Expenses, other than the investment advisory fee and other excluded expenses, are paid by the Advisor.
Notes to Financial Statements (Continued)
First Trust Exchange-Traded Fund VIMarch 31, 2024 (Unaudited) First Trust has entered into licensing agreements with each of the following “Licensors” for the respective Funds:
| |
First Trust NASDAQ Technology Dividend Index Fund | |
Multi-Asset Diversified Income Index Fund | |
First Trust S&P International Dividend Aristocrats ETF | S&P Dow Jones Indices, LLC |
First Trust Rising Dividend Achievers ETF | |
First Trust Dorsey Wright Focus 5 ETF | Dorsey, Wright & Associates, LLC |
First Trust RBA American Industrial Renaissance® ETF | Richard Bernstein Advisors LLC |
First Trust Dorsey Wright Momentum & Dividend ETF | |
First Trust Dorsey Wright International Focus 5 ETF | Dorsey, Wright & Associates, LLC |
First Trust Dorsey Wright Dynamic Focus 5 ETF | Dorsey, Wright & Associates, LLC |
First Trust Indxx Innovative Transaction & Process ETF | |
First Trust Nasdaq Artificial Intelligence and Robotics ETF | |
First Trust International Developed Capital Strength ETF | |
The respective license agreements allow for the use by First Trust of each Fund’s respective index and of certain trademarks and trade names of the respective Licensor. The Funds are sub-licensees to the applicable license agreements.
3. Investment Advisory Fee, Affiliated Transactions and Other Fee Arrangements
First Trust, the investment advisor to the Funds, is a limited partnership with one limited partner, Grace Partners of DuPage L.P., and one general partner, The Charger Corporation. The Charger Corporation is an Illinois corporation controlled by James A. Bowen, Chief Executive Officer of First Trust. First Trust is responsible for the selection and ongoing monitoring of the securities in each Fund’s portfolio, managing the Funds’ business affairs and providing certain administrative services necessary for the management of the Funds.
First Trust is responsible for the expenses of each Fund including the cost of transfer agency, custody, fund administration, licensing fees, legal, audit and other services, but excluding fee payments under the Investment Management Agreement, interest, taxes, brokerage commissions and other expenses associated with the execution of portfolio transactions, acquired fund fees and expenses, distribution and service fees pursuant to a Rule 12b-1 plan, if any, and extraordinary expenses, which are paid by each respective Fund. The annual unitary management fee payable by each Fund to First Trust for these services will be reduced at certain levels of each Fund’s net assets (“breakpoints”) and calculated pursuant to the following schedules:
| | | | |
Fund net assets up to and including $2.5 billion | | | | |
Fund net assets greater than $2.5 billion up to and including $5 billion | | | | |
Fund net assets greater than $5 billion up to and including $7.5 billion | | | | |
Fund net assets greater than $7.5 billion up to and including $10 billion | | | | |
Fund net assets greater than $10 billion up to and including $15 billion | | | | |
Fund net assets greater than $15 billion | | | | |
| | | |
Fund net assets up to and including $2.5 billion | | | |
Fund net assets greater than $2.5 billion up to and including $5 billion | | | |
Fund net assets greater than $5 billion up to and including $7.5 billion | | | |
Fund net assets greater than $7.5 billion up to and including $10 billion | | | |
Fund net assets greater than $10 billion up to and including $15 billion | | | |
Fund net assets greater than $15 billion | | | |
| | | | |
Fund net assets up to and including $2.5 billion | | | | |
Fund net assets greater than $2.5 billion up to and including $5 billion | | | | |
Fund net assets greater than $5 billion up to and including $7.5 billion | | | | |
Fund net assets greater than $7.5 billion up to and including $10 billion | | | | |
Fund net assets greater than $10 billion | | | | |
Notes to Financial Statements (Continued)
First Trust Exchange-Traded Fund VIMarch 31, 2024 (Unaudited)
| | | |
Fund net assets up to and including $2.5 billion | | | |
Fund net assets greater than $2.5 billion up to and including $5 billion | | | |
Fund net assets greater than $5 billion up to and including $7.5 billion | | | |
Fund net assets greater than $7.5 billion up to and including $10 billion | | | |
Fund net assets greater than $10 billion | | | |
For FTHI and FTQI, prior to December 14, 2023, the annual unitary management fee payable to First Trust was reduced at breakpoints and calculated pursuant to the following schedule:
| |
Fund net assets up to and including $2.5 billion | |
Fund net assets greater than $2.5 billion up to and including $5 billion | |
Fund net assets greater than $5 billion up to and including $7.5 billion | |
Fund net assets greater than $7.5 billion up to and including $10 billion | |
Fund net assets greater than $10 billion | |
In addition, MDIV, FV, IFV, and FVC incur pro rata share of fees and acquired fund fees and expenses. The total of the unitary management fee and acquired fund fees and expenses represents each Fund’s total annual operating expenses.
Pursuant to a contractual agreement between the Trust, on behalf of MDIV, and First Trust, the management fees paid to First Trust will be reduced by the proportional amount of the management fees earned by MDIV on assets invested in other investment companies advised by First Trust. This contractual agreement shall continue until the earlier of (i) its termination at the direction of the Trust’s Board of Trustees or (ii) the termination of MDIV’s investment management agreement with First Trust; however, it is expected to remain in place at least until January 31, 2025. First Trust does not have the right to recover the waived fees on the shares of investment companies advised by First Trust. For the six months ended March 31, 2024, MDIV waived $256,318 of management fees.
The Trust has multiple service agreements with BNYM. Under the service agreements, BNYM performs custodial, fund accounting, certain administrative services, and transfer agency services for each Fund. As custodian, BNYM is responsible for custody of each Fund’s assets. As fund accountant and administrator, BNYM is responsible for maintaining the books and records of each Fund’s securities and cash. As transfer agent, BNYM is responsible for maintaining shareholder records for each Fund. BNYM is a subsidiary of The Bank of New York Mellon Corporation, a financial holding company.
Each Trustee who is not an officer or employee of First Trust, any sub-advisor or any of their affiliates (“Independent Trustees”) is paid a fixed annual retainer that is allocated equally among each fund in the First Trust Fund Complex. Each Independent Trustee is also paid an annual per fund fee that varies based on whether the fund is a closed-end or other actively managed fund, a target outcome fund or an index fund.
Additionally, the Chairs of the Audit Committee, Nominating and Governance Committee and Valuation Committee, the Vice Chair of the Audit Committee, the Lead Independent Trustee and the Vice Lead Independent Trustee are paid annual fees to serve in such capacities, with such compensation allocated pro rata among each fund in the First Trust Fund Complex based on net assets. Independent Trustees are reimbursed for travel and out-of-pocket expenses in connection with all meetings. The Committee Chairs, the Audit Committee Vice Chair, the Lead Independent Trustee and the Vice Lead Independent Trustee rotate periodically in serving in such capacities. The officers and “Interested” Trustee receive no compensation from the Trust for acting in such capacities.
4. Purchases and Sales of Securities
For the six months ended March 31, 2024, the cost of purchases and proceeds from sales of investments for each Fund, excluding short-term investments and in-kind transactions, were as follows:
| | |
First Trust NASDAQ Technology Dividend Index Fund | | |
Multi-Asset Diversified Income Index Fund | | |
First Trust S&P International Dividend Aristocrats ETF | | |
First Trust BuyWrite Income ETF | | |
Notes to Financial Statements (Continued)
First Trust Exchange-Traded Fund VIMarch 31, 2024 (Unaudited) | | |
First Trust Nasdaq BuyWrite Income ETF | | |
First Trust Rising Dividend Achievers ETF | | |
First Trust Dorsey Wright Focus 5 ETF | | |
First Trust RBA American Industrial Renaissance® ETF | | |
First Trust Dorsey Wright Momentum & Dividend ETF | | |
First Trust Dorsey Wright International Focus 5 ETF | | |
First Trust Dorsey Wright Dynamic Focus 5 ETF | | |
First Trust Indxx Innovative Transaction & Process ETF | | |
First Trust Nasdaq Artificial Intelligence and Robotics ETF | | |
First Trust International Developed Capital Strength ETF | | |
For the six months ended March 31, 2024, the cost of in-kind purchases and proceeds from in-kind sales for each Fund were as follows:
| | |
First Trust NASDAQ Technology Dividend Index Fund | | |
Multi-Asset Diversified Income Index Fund | | |
First Trust S&P International Dividend Aristocrats ETF | | |
First Trust BuyWrite Income ETF | | |
First Trust Nasdaq BuyWrite Income ETF | | |
First Trust Rising Dividend Achievers ETF | | |
First Trust Dorsey Wright Focus 5 ETF | | |
First Trust RBA American Industrial Renaissance® ETF | | |
First Trust Dorsey Wright Momentum & Dividend ETF | | |
First Trust Dorsey Wright International Focus 5 ETF | | |
First Trust Dorsey Wright Dynamic Focus 5 ETF | | |
First Trust Indxx Innovative Transaction & Process ETF | | |
First Trust Nasdaq Artificial Intelligence and Robotics ETF | | |
First Trust International Developed Capital Strength ETF | | |
5. Derivative Transactions
The following table presents the types of derivatives held by each Fund at March 31, 2024, the primary underlying risk exposure and the location of these instruments as presented on the Statements of Assets and Liabilities.
| | | |
| | Statements of Assets and
Liabilities Location | | Statements of Assets and
Liabilities Location | |
| | | | | |
| | Options contracts purchased, at value | | Options contracts written, at value | |
| | | | | |
| | Options contracts purchased, at value | | Options contracts written, at value | |
The following table presents the amount of net realized gain (loss) and change in net unrealized appreciation (depreciation) recognized for the six months ended March 31, 2024, on each Fund’s derivative instruments, as well as the primary underlying risk exposure associated with the instruments.
|
Statements of Operations Location | | |
| | |
Net realized gain (loss) on written options contracts | | |
Notes to Financial Statements (Continued)
First Trust Exchange-Traded Fund VIMarch 31, 2024 (Unaudited) |
Statements of Operations Location | | |
Net change in unrealized appreciation (depreciation) on written options contracts | | |
During the six months ended March 31, 2024, for FTHI, the premiums for written options contracts opened were $25,333,734 and the premiums for written options contracts closed, exercised and expired were $21,123,393.
During the six months ended March 31, 2024, for FTQI, the premiums for written options contracts opened were $13,443,548 and the premiums for written options contracts closed, exercised and expired were $10,428,489.
FTHI and FTQI do not have the right to offset on financial assets and financial liabilities related to options contracts on the Statements of Assets and Liabilities.
6. Creations, Redemptions and Transaction Fees
Each Fund generally issues and redeems its shares in primary market transactions through a creation and redemption mechanism and does not sell or redeem individual shares. Instead, financial entities known as “Authorized Participants” have contractual arrangements with a Fund or one of the Fund’s service providers to purchase and redeem Fund shares directly with the Fund in Creation Units. Prior to the start of trading on every business day, a Fund publishes through the National Securities Clearing Corporation the “basket” of securities, cash or other assets that it will accept in exchange for a Creation Unit of the Fund’s shares. An Authorized Participant that wishes to effectuate a creation of a Fund’s shares deposits with the Fund the “basket” of securities, cash or other assets identified by the Fund that day, and then receives the Creation Unit of the Fund’s shares in return for those assets. After purchasing a Creation Unit, the Authorized Participant may continue to hold the Fund’s shares or sell them in the secondary market. The redemption process is the reverse of the purchase process: the Authorized Participant redeems a Creation Unit of a Fund’s shares for a basket of securities, cash or other assets. The combination of the creation and redemption process with secondary market trading in a Fund’s shares and underlying securities provides arbitrage opportunities that are designed to help keep the market price of a Fund’s shares at or close to the NAV per share of the Fund.
Each Fund imposes fees in connection with the purchase of Creation Units. These fees may vary based upon various fact-based circumstances, including, but not limited to, the composition of the securities included in the Creation Unit or the countries in which the transactions are settled. The price for each Creation Unit will equal the daily NAV per share of a Fund times the number of shares in a Creation Unit, plus the fees described above and, if applicable, any operational processing and brokerage costs, transfer fees, stamp taxes and part or all of the spread between the expected bid and offer side of the market related to the securities comprising the creation basket.
Each Fund also imposes fees in connection with the redemption of Creation Units. These fees may vary based upon various fact-based circumstances, including, but not limited to, the composition of the securities included in the Creation Unit or the countries in which the transactions are settled. The price received for each Creation Unit will equal the daily NAV per share of a Fund times the number of shares in a Creation Unit, minus the fees described above and, if applicable, any operational processing and brokerage costs, transfer fees, stamp taxes and part or all of the spread between the expected bid and offer side of the market related to the securities comprising the redemption basket. Investors who use the services of a broker or other such intermediary in addition to an Authorized Participant to effect a redemption of a Creation Unit may also be assessed an amount to cover the cost of such services. The redemption fee charged by a Fund will comply with Rule 22c-2 of the 1940 Act which limits redemption fees to no more than 2% of the value of the shares redeemed.
The Board of Trustees adopted a Distribution and Service Plan pursuant to Rule 12b-1 under the 1940 Act. In accordance with the Rule 12b-1 plan, the Funds are authorized to pay an amount up to 0.25% of their average daily net assets each year to reimburse First Trust Portfolios L.P. (“FTP”), the distributor of the Funds, for amounts expended to finance activities primarily intended to result in the sale of Creation Units or the provision of investor services. FTP may also use this amount to compensate securities dealers or other persons that are Authorized Participants for providing distribution assistance, including broker-dealer and shareholder support and educational and promotional services.
No 12b-1 fees are currently paid by the Funds, and pursuant to a contractual arrangement, no 12b-1 fees will be paid any time before January 31, 2025.
Notes to Financial Statements (Continued)
First Trust Exchange-Traded Fund VIMarch 31, 2024 (Unaudited) 8. Indemnification
The Trust, on behalf of the Funds, has a variety of indemnification obligations under contracts with its service providers. The Trust’s maximum exposure under these arrangements is unknown. However, the Trust has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.
Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were issued and has determined that there were no subsequent events requiring recognition or disclosure in the financial statements that have not already been disclosed.
First Trust Exchange-Traded Fund VIMarch 31, 2024 (Unaudited) Proxy Voting Policies and Procedures
A description of the policies and procedures that the Trust uses to determine how to vote proxies and information on how each Fund voted proxies relating to its portfolio securities during the most recent 12-month period ended June 30 is available (1) without charge, upon request, by calling (800) 988-5891; (2) on each Fund’s website at www.ftportfolios.com; and (3) on the Securities and Exchange Commission’s (“SEC”) website at www.sec.gov.
Each Fund files portfolio holdings information for each month in a fiscal quarter within 60 days after the end of the relevant fiscal quarter on Form N-PORT. Portfolio holdings information for the third month of each fiscal quarter will be publicly available on the SEC’s website at www.sec.gov. Each Fund’s complete schedule of portfolio holdings for the second and fourth quarters of each fiscal year is included in the semi-annual and annual reports to shareholders, respectively, and is filed with the SEC on Form N-CSR. The semi-annual and annual report for each Fund is available to investors within 60 days after the period to which it relates. Each Fund’s Forms N-PORT and Forms N-CSR are available on the SEC’s website listed above.
Risks are inherent in all investing. Certain general risks that may be applicable to a Fund are identified below, but not all of the material risks relevant to each Fund are included in this report and not all of the risks below apply to each Fund. The material risks of investing in each Fund are spelled out in its prospectus, statement of additional information and other regulatory filings. Before investing, you should consider each Fund’s investment objective, risks, charges and expenses, and read each Fund’s prospectus and statement of additional information carefully. You can download each Fund’s prospectus at www.ftportfolios.com or contact First Trust Portfolios L.P. at (800) 621-1675 to request a prospectus, which contains this and other information about each Fund.
Concentration Risk. To the extent that a fund is able to invest a significant percentage of its assets in a single asset class or the securities of issuers within the same country, state, region, industry or sector, an adverse economic, business or political development may affect the value of the fund’s investments more than if the fund were more broadly diversified. A fund that tracks an index will be concentrated to the extent the fund’s corresponding index is concentrated. A concentration makes a fund more susceptible to any single occurrence and may subject the fund to greater market risk than a fund that is more broadly diversified.
Credit 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 the related risk that the value of a security may decline because of concerns about the issuer’s ability to make such payments.
Cyber Security Risk. The funds are susceptible to potential operational risks through breaches in cyber security. A breach in cyber security refers to both intentional and unintentional events that may cause a fund to lose proprietary information, suffer data corruption or lose operational capacity. Such events could cause a fund to incur regulatory penalties, reputational damage, additional compliance costs associated with corrective measures and/or financial loss. In addition, cyber security breaches of a fund’s third-party service providers, such as its administrator, transfer agent, custodian, or sub-advisor, as applicable, or issuers in which the fund invests, can also subject a fund to many of the same risks associated with direct cyber security breaches.
Defined Outcome Funds Risk. To the extent a fund’s investment strategy is designed to deliver returns tied to the price performance of an underlying ETF, an investor may not realize the returns the fund seeks to achieve if that investor does not hold shares for the entire target outcome period. In the event an investor purchases shares after the first day of the target outcome period or sells shares prior to the end of the target outcome period, the buffer that the fund seeks to provide against a decline in the value of the underlying ETF may not be available, the enhanced returns that the fund seeks to provide (if any) may not be available and the investor may not participate in a gain in the value of the underlying ETF up to the cap for the investor’s investment period. Additionally, the fund will not participate in gains of the underlying ETF above the cap and a shareholder may lose their entire investment. If the fund seeks enhanced returns, there are certain time periods when the value of the fund may fall faster than the value of the underlying ETF, and it is very unlikely that, on any given day during which the underlying ETF share price increases in value, the fund’s share price will increase at the same rate as the enhanced returns sought by the fund, which is designed for an entire target outcome period. Trading flexible exchange options involves risks different from, or possibly greater than, the risks associated with investing directly in securities, such as less liquidity and correlation and valuation risks. A fund may experience substantial downside from specific flexible exchange option positions and certain positions may expire worthless.
Additional Information (Continued)
First Trust Exchange-Traded Fund VIMarch 31, 2024 (Unaudited) Derivatives Risk. To the extent a fund uses derivative instruments such as futures contracts, options contracts and swaps, the fund may experience 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 derivative. These risks are heightened when a 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.
Equity Securities Risk. To the extent a fund invests in equity securities, the value of the fund’s shares will fluctuate with changes in the value of the equity securities. Equity securities prices fluctuate for several reasons, including changes in investors’ perceptions of the financial condition of an issuer or the general condition of the relevant stock market, such as market volatility, or when political or economic events affecting the issuers occur. In addition, common stock prices may be particularly sensitive to rising interest rates, as the cost of capital rises and borrowing costs increase. Equity securities may decline significantly in price over short or extended periods of time, and such declines may occur in the equity market as a whole, or they may occur in only a particular country, company, industry or sector of the market.
ETF Risk. The shares of an ETF trade like common stock and represent an interest in a portfolio of securities. 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. Shares of an ETF trade on an exchange at market prices rather than net asset value, which may cause the shares to trade at a price greater than net asset value (premium) or less than net asset value (discount). In times of market stress, decisions by market makers to reduce or step away from their role of providing a market for an ETF’s shares, or decisions by an ETF’s authorized participants that they are unable or unwilling to proceed with creation and/or redemption orders of an ETF’s shares, could result in shares of the ETF trading at a discount to net asset value and in greater than normal intraday bid-ask spreads.
Fixed Income Securities Risk. To the extent a fund invests in fixed income securities, the fund will be subject to credit risk, income risk, interest rate risk, liquidity risk and prepayment risk. Income risk is the risk that income from a fund’s fixed income investments could decline during periods of falling interest rates. Interest rate risk is the risk that the value of a fund’s fixed income securities will decline because of rising interest rates. Liquidity risk is the risk that a security cannot be purchased or sold at the time desired, or cannot be purchased or sold without adversely affecting the price. Prepayment risk is the risk that the securities will be redeemed or prepaid by the issuer, resulting in lower interest payments received by the fund. In addition to these risks, high yield securities, or “junk” bonds, are subject to greater market fluctuations and risk of loss than securities with higher ratings, and the market for high yield securities is generally smaller and less liquid than that for investment grade securities.
Index or Model Constituent Risk. Certain funds may be a constituent of one or more indices or ETF models. As a result, such a fund may be included in one or more index-tracking exchange-traded funds or mutual funds. Being a component security of such a vehicle could greatly affect the trading activity involving a fund, the size of the fund and the market volatility of the fund. Inclusion in an index could increase demand for the fund and removal from an index could result in outsized selling activity in a relatively short period of time. As a result, a fund’s net asset value could be negatively impacted and the fund’s market price may be significantly below its net asset value during certain periods. In addition, index rebalances may potentially result in increased trading activity in a fund’s shares.
Index Provider Risk. To the extent a fund seeks to track an index, it is subject to Index Provider Risk. There is no assurance that the Index Provider will compile the Index accurately, or that the Index will be determined, maintained, constructed, reconstituted, rebalanced, composed, calculated or disseminated accurately. To correct any such error, the Index Provider may carry out an unscheduled rebalance or other modification of the Index constituents or weightings, which may increase the fund’s costs. The Index Provider does not provide any representation or warranty in relation to the quality, accuracy or completeness of data in the Index, and it does not guarantee that the Index will be calculated in accordance with its stated methodology. Losses or costs associated with any Index Provider errors generally will be borne by the fund and its shareholders.
Investment Companies Risk. To the extent a fund invests in the securities of other investment vehicles, the fund will incur additional fees and expenses that would not be present in a direct investment in those investment vehicles. Furthermore, the fund’s investment performance and risks are directly related to the investment performance and risks of the investment vehicles in which the fund invests.
LIBOR Risk. 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, has ceased making LIBOR available as a reference rate over a phase-out period that began December 31, 2021.
Additional Information (Continued)
First Trust Exchange-Traded Fund VIMarch 31, 2024 (Unaudited) There is no assurance that any alternative reference rate, including the Secured Overnight Financing Rate (“SOFR”) will be similar to or produce the same value or economic equivalence as LIBOR or that instruments using an alternative rate will have the same volume or liquidity. 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.
Management Risk. To the extent that a fund is actively managed, it is subject to management risk. In managing an actively-managed fund’s investment portfolio, the fund’s portfolio managers will apply investment techniques and risk analyses that may not have the desired result. There can be no guarantee that a fund will meet its investment objective.
Market Risk. Market risk is the risk that a particular security, or shares of a fund in general, may fall in value. Securities held by a fund, as well as shares of a fund itself, are subject to market fluctuations caused by factors such as general economic conditions, political events, regulatory or market developments, changes in interest rates and perceived trends in securities prices. Shares of a fund could decline in value or underperform other investments as a result of the risk of loss associated with these market fluctuations. In addition, local, regional or global events such as war, acts of terrorism, spread of infectious diseases or other public health issues, recessions, or other events could have a significant negative impact on a fund and its investments. Such events may affect certain geographic regions, countries, sectors and industries more significantly than others. 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 and the ensuing policies enacted by governments and central banks have caused and may continue to cause significant volatility and uncertainty 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. These events also adversely affect the prices and liquidity of a fund’s portfolio securities or other instruments and could result in disruptions in the trading markets. Any of such circumstances could have a materially negative impact on the value of a fund’s shares and result in increased market volatility. During any such events, a fund’s shares may trade at increased premiums or discounts to their net asset value and the bid/ask spread on a fund’s shares may widen.
Non-U.S. Securities Risk. To the extent a fund invests in non-U.S. securities, it is subject to additional risks not associated with securities of domestic issuers. Non-U.S. securities are subject to higher volatility than securities of domestic issuers due to: possible adverse political, social or economic developments; restrictions on foreign investment or exchange of securities; capital controls; lack of liquidity; currency exchange rates; excessive taxation; government seizure of assets; the imposition of sanctions by foreign governments; different legal or accounting standards; and less government supervision and regulation of exchanges in foreign countries. Investments in non-U.S. securities may involve higher costs than investments in U.S. securities, including higher transaction and custody costs, as well as additional taxes imposed by non-U.S. governments. These risks may be heightened for securities of companies located, or with significant operations, in emerging market countries.
Operational Risk. Each fund is subject to risks arising from various operational factors, including, but not limited to, human error, processing and communication errors, errors of a fund’s service providers, counterparties or other third-parties, failed or inadequate processes and technology or systems failures. Each fund relies on third-parties for a range of services, including custody. Any delay or failure relating to engaging or maintaining such service providers may affect a fund’s ability to meet its investment objective. Although the funds and the funds’ investment advisor seek to reduce these operational risks through controls and procedures, there is no way to completely protect against such risks.
Passive Investment Risk. To the extent a fund seeks to track an index, the fund will invest in the securities included in, or representative of, the index regardless of their investment merit. A fund generally will not attempt to take defensive positions in declining markets.
Preferred Securities Risk. Preferred securities combine some of the characteristics of both common stocks and bonds. Preferred securities are typically subordinated to bonds and other debt securities in a company’s capital structure in terms of priority to corporate income, subjecting them to greater credit risk than those debt securities. Generally, holders of preferred securities have no voting rights with respect to the issuing company unless preferred dividends have been in arrears for a specified number of periods, at which time the preferred security holders may obtain limited rights. In certain circumstances, an issuer of preferred securities may defer
Additional Information (Continued)
First Trust Exchange-Traded Fund VIMarch 31, 2024 (Unaudited) payment on the securities and, in some cases, redeem the securities prior to a specified date. Preferred securities may also be substantially less liquid than other securities, including common stock.
Valuation Risk. The valuation of certain securities may carry more risk than that of common stock. Uncertainties in the conditions of the financial markets, unreliable reference data, lack of transparency and inconsistency of valuation models and processes may lead to inaccurate asset pricing. A fund may hold investments in sizes smaller than institutionally sized round lot positions (sometimes referred to as odd lots). However, third-party pricing services generally provide evaluations on the basis of institutionally-sized round lots. If a fund sells certain of its investments in an odd lot transaction, the sale price may be less than the value at which such securities have been held by the fund. Odd lots often trade at lower prices than institutional round lots. There is no assurance that the fund will be able to sell a portfolio security at the price established by the pricing service, which could result in a loss to the fund.
NOT FDIC INSURED NOT BANK GUARANTEED MAY LOSE VALUE
First Trust Exchange-Traded Fund VI
First Trust Advisors L.P.
120 East Liberty Drive, Suite 400
Wheaton, IL 60187
ADMINISTRATOR, CUSTODIAN,
FUND ACCOUNTANT &
TRANSFER AGENT
The Bank of New York Mellon
240 Greenwich Street
New York, NY 10286
INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
Deloitte & Touche LLP
111 South Wacker Drive
Chicago, IL 60606
Chapman and Cutler LLP
320 South Canal Street
Chicago, IL 60606
|
For the Six Months Ended
March 31, 2024 |
First Trust Exchange-Traded Fund VI
First Trust SMID Cap Rising Dividend Achievers ETF (SDVY) |
First Trust Dorsey Wright Momentum & Value ETF (DVLU) |
First Trust Dorsey Wright Momentum & Low Volatility ETF (DVOL) |
First Trust Exchange-Traded Fund VI
Semi-Annual Report
March 31, 2024
Caution Regarding Forward-Looking Statements
This report contains certain forward-looking statements within the meaning of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements regarding the goals, beliefs, plans or current expectations of First Trust Advisors L.P. (“First Trust” or the “Advisor”) and its representatives, taking into account the information currently available to them. Forward-looking statements include all statements that do not relate solely to current or historical fact. For example, forward-looking statements include the use of words such as “anticipate,” “estimate,” “intend,” “expect,” “believe,” “plan,” “may,” “should,” “would” or other words that convey uncertainty of future events or outcomes.
Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of any series of First Trust Exchange-Traded Fund VI (the “Trust”) described in this report (each such series is referred to as a “Fund” and collectively, as the “Funds”) to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. When evaluating the information included in this report, you are cautioned not to place undue reliance on these forward-looking statements, which reflect the judgment of the Advisor and its representatives only as of the date hereof. We undertake no obligation to publicly revise or update these forward-looking statements to reflect events and circumstances that arise after the date hereof.
Performance and Risk Disclosure
There is no assurance that any Fund described in this report will achieve its investment objective. Each Fund is subject to market risk, which is the possibility that the market values of securities owned by the Fund will decline and that the value of the Fund’s shares may therefore be less than what you paid for them. Accordingly, you can lose money by investing in a Fund. See “Risk Considerations” in the Additional Information section of this report for a discussion of certain other risks of investing in the Funds.
Performance data quoted represents past performance, which is no guarantee of future results, and current performance may be lower or higher than the figures shown. For the most recent month-end performance figures, please visit www.ftportfolios.com or speak with your financial advisor. Investment returns, net asset value and share price will fluctuate and Fund shares, when sold, may be worth more or less than their original cost.
The Advisor may also periodically provide additional information on Fund performance on each Fund’s webpage at www.ftportfolios.com.
This report contains information that may help you evaluate your investment. It includes details about each Fund and presents data and analysis that provide insight into each Fund’s performance and investment approach.
By reading the market overview by Robert F. Carey, Chief Market Strategist of the Advisor, you may obtain an understanding of how the market environment affected the performance of each Fund. The statistical information that follows may help you understand each Fund’s performance compared to that of relevant market benchmarks.
It is important to keep in mind that the opinions expressed by personnel of the Advisor are just that: informed opinions. They should not be considered to be promises or advice. The opinions, like the statistics, cover the period through the date on the cover of this report. The material risks of investing in each Fund are spelled out in its prospectus, statement of additional information, and other Fund regulatory filings.
First Trust Exchange-Traded Fund VI
Semi-Annual Letter from the Chairman and CEO
March 31, 2024
First Trust is pleased to provide you with the semi-annual report for certain series of the First Trust Exchange-Traded Fund VI (the “Funds”), which contains detailed information about the Funds for the six-month period ended March 31, 2024.
On March 21, 2024, the Swiss National Bank (“SNB”) unexpectedly announced a reduction of 25 basis points (“bps”) to its policy interest rate, lowering the metric from 1.75% to 1.50%. The move marked the SNB’s first interest rate cut in nine years and made Switzerland the first member of the so-called “Group of 10” (“G10”) to announce a policy rate reduction since the global battle with inflation began post COVID-19. Notably, the SNB’s announcement stood in stark contrast to the Bank of Japan’s revelation earlier in the same week that it would be raising interest rates for the first time in 17 years. Investors may be wondering why these two nations are undertaking divergent interest rate policies. From our perspective, the answer lies in the data. Despite recent disinflation, just two of the 11 countries that comprise the G10 boast headline inflation that lies below their target rate. Those countries are Denmark and Switzerland, with headline inflation of 0.8% and 1.0%, respectively. By contrast, headline inflation stood at 2.8% in Japan, above the Bank of Japan’s stated policy rate of 2.0%.
In the U.S., the trailing 12-month rate of the Consumer Price Index stood at 3.5% at the end of March 2024, down from its most-recent high of 9.1% at the end of June 2022, but up from its most recent low of 3.0% in June 2023. Continued inflationary pressures, along with better-than-expected economic data, continue to fuel the debate regarding the timing of interest rate cuts in the U.S. In December 2023, the Federal Reserve (the “Fed”) announced that they expected to implement three interest rate cuts for a total of 75 bps in 2024. The announcement was met with exuberance, sending the S&P 500® Index surging by 12.10% on a total return basis between December 13, 2023, the date of the Fed’s announcement, and the end of March 2024. That said, investors may have overestimated the timing of these cuts. On December 29, 2023, the Federal Funds rate futures market projected that the Fed would implement six rate cuts totaling 158 bps in 2024. As of the end of March 2024, that same futures market estimated that just two cuts, totaling 67 bps, were likely to occur by the end of the year.
Attention remains focused on the U.S. consumer, with reports that the current pace of spending may be unsustainable over the long-term. One justification for this view is recent analysis by the Federal Reserve Bank of San Francisco, which revealed that the excess savings consumers built up during the pandemic are likely to be completely drawn down in the first half of 2024. That said, the Fed also reported that U.S. household net worth surged by 3.2% on a quarter-over-quarter basis to a record $156.2 trillion in the fourth quarter of 2023. While it is true that many households are feeling the sting of persistent inflation, the increase in wealth brought on by surging equity valuations and home prices mitigated some of that pain, in our opinion.
Thank you for giving First Trust the opportunity to play a role in your financial future. We value our relationship with you and will report on the Funds again in six months.
Sincerely, James A. Bowen
Chairman of the Board of Trustees
Chief Executive Officer of First Trust Advisors L.P.
First Trust Exchange-Traded Fund VI
Semi-Annual Report
March 31, 2024
Robert F. Carey, CFA
Senior Vice President and Chief Market Strategist
First Trust Advisors L.P.
Mr. Carey is responsible for the overall management of research and analysis of the First Trust product line. Mr. Carey has more than 30 years of experience as an Equity and Fixed-Income Analyst and is a recipient of the Chartered Financial Analyst (“CFA”) designation. He is a graduate of the University of Illinois at Champaign-Urbana with a B.S. in Physics. He is also a member of the Investment Analysts Society of Chicago and the CFA Institute. Mr. Carey has appeared as a guest on such programs as Bloomberg TV, CNBC, and WBBM Radio, and has been quoted by several publications, including The Wall Street Journal, The Wall Street Reporter, Bloomberg News Service and Registered Rep.
State of the Global Economy/Investing
The latest global growth forecast from the International Monetary Fund (“IMF”) released in April 2024 sees real gross domestic product (“GDP”) rising by 3.2% worldwide in 2024, up from their forecast of 3.1% in January 2024. The IMF is forecasting a 2.7% increase in the U.S. GDP, up from its January 2024 estimate of 2.1%. The GDP in Emerging Market and Developing Economies is expected to grow by 4.2% this year, up from the IMF’s 4.1% estimate in January 2024. The IMF notes that its current global growth forecast remains below the historical average (2000-2019) of 3.8%, reflecting restrictive monetary policies and low productivity growth.
In the U.S., inflation, as measured by the Consumer Price Index (“CPI”), stood at 3.5% on a trailing 12-month basis at the end of March 2024, according to the U.S. Bureau of Labor Statistics. While it is true that the CPI decreased from its most recent high of 9.1% set in June 2022, the rate has increased from its most recent low of 3.0% set in June 2023.
Performance of Global Stocks and Bonds
The major U.S. stock indices were markedly higher over the past six months. The S&P 500® (the “Index”), S&P MidCap 400® and S&P SmallCap 600® Indices posted total returns of 23.48%, 22.78%, and 17.95%, respectively, for the six-month period ended March 31, 2024. Each of the 11 major sectors that comprise the Index were positive on a total return basis. The top performer was the Information Technology sector, up 32.03%, while the worst showing came from the Energy sector, which was up 5.80%.
A Bloomberg survey of twenty-one equity strategists found that their average 2024 year-end price target for the Index was 4,962 as of March 19, 2024. The highest and lowest estimates were 5,400 and 4,200, respectively. Brian Wesbury, Chief Economist at First Trust, announced in December 2023 that he is looking for a year-end price target of 4,500. The Index closed trading on March 28, 2024, at an all-time high of 5,254.35. The outlook for U.S. corporate earnings in 2024 is very strong. Bloomberg’s consensus year-over-year earnings growth rate estimates for the Index for the 2024 and 2025 calendar years stood at 8.99% and 13.34%, respectively, as of March 31, 2024.
The broader foreign stock indices experienced positive total returns over the past six months. For the six-month period ended March 31, 2024, the MSCI World ex USA and MSCI Emerging Markets equity indices posted total returns of 16.57% (USD) and 10.12% (USD), respectively, according to Bloomberg. The major foreign bond indices were also positive over the period. The Bloomberg Global Aggregate Bond Index of higher quality debt posted a total return of 6.17% (USD), while the Bloomberg EM Hard Currency Aggregate Index of emerging markets debt increased by 10.07% (USD), according to Bloomberg. The U.S. Dollar fell 1.59% over the past six months against a basket of major currencies, as measured by the U.S. Dollar Index (DXY).
The U.S. bond market also saw positive total returns. The top performing major debt group we track was long duration municipal bonds. The Bloomberg Municipal Long Bond Index (22+ Years) posted a total return of 10.78% for the six-month period ended March 31, 2024. The worst-performing U.S. debt group that we track was U.S. Treasuries. The Bloomberg U.S. Treasury Intermediate Index posted a total return of 3.69% over the period. The yield on the benchmark 10-Year Treasury Note (“T-Note”) fell by 37 basis points in the period to close at 4.20% on March 28, 2024, according to Bloomberg. For comparative purposes, the average yield on the 10-Year T-Note was 2.35% for the 10-year period ended March 31, 2024.
Fund Performance Overview (Unaudited)
First Trust SMID Cap Rising Dividend Achievers ETF (SDVY)
The First Trust SMID Cap Rising Dividend Achievers ETF (the “Fund”) seeks investment results that correspond generally to the price and yield (before the Fund’s fees and expenses) of an index called the Nasdaq US Small Mid Cap Rising Dividend AchieversTM Index (the “Index”). The Fund will normally invest at least 90% of its net assets (including investment borrowings) in the securities that comprise the Index. The Fund, using an indexing investment approach, attempts to replicate, before fees and expenses, the performance of the index. The Index is composed of securities in the small mid cap space determined by Nasdaq, Inc. (the “Index Provider”) to have increased their dividend value over the previous three year and five year annual periods, while being best positioned to continue the dividend increases. The shares of the Fund are listed and traded on Nasdaq, Inc., under the ticker symbol “SDVY.”
|
| | | Average Annual Total Returns | |
| | | | Inception
(11/1/17)
to 3/31/24 | | Inception
(11/1/17)
to 3/31/24 |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Nasdaq US Small Mid Cap Rising Dividend AchieversTM Index | | | | | | |
| | | | | | |
(See Notes to Fund Performance Overview on page 10.)
Nasdaq® and Nasdaq US Small Mid Cap Rising Dividend AchieversTM 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.
Fund Performance Overview (Unaudited) (Continued)
First Trust SMID Cap Rising Dividend Achievers ETF (SDVY) (Continued)
| % of Total
Long-Term
Investments |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| % of Total
Long-Term
Investments |
| |
Winnebago Industries, Inc. | |
Corebridge Financial, Inc. | |
| |
| |
| |
| |
| |
Century Communities, Inc. | |
| |
| |
| Performance figures assume reinvestment of all distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the indices do not actually hold a portfolio of securities and therefore do not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. The Fund’s past performance does not predict future performance. |
Frequency Distribution of Discounts and Premiums
Information showing the number of days the market price of the Fund’s shares was greater (at a premium) and less (at a discount) than the Fund’s net asset value for the most recently completed year, and the most recently completed calendar quarters since that year (or life of the Fund, if shorter) is available at https://www.ftportfolios.com/Retail/etf/home.aspx.
Fund Performance Overview (Unaudited) (Continued)
First Trust Dorsey Wright Momentum & Value ETF (DVLU)
The First Trust Dorsey Wright Momentum & Value ETF (the “Fund”) seeks investment results that correspond generally to the price and yield (before the Fund’s fees and expenses) of an index called the Dorsey Wright Momentum Plus ValueTM Index (the “Index”). Under normal conditions, the Fund will invest at least 90% of its net assets (including investment borrowings) in the securities that comprise the Index. The Fund, using an indexing investment approach, attempts to replicate, before fees and expenses, the performance of the Index. The Index is a rules-based equity index designed to track the overall performance of the 50 most undervalued stocks comprising the Nasdaq US Large Mid CapTM Index that exhibit high levels of “relative strength.” A relative strength analysis is a momentum-based investment strategy that emphasizes a security’s forward price momentum in the security selection process. The Index is owned and was developed by Nasdaq, Inc. The shares of the Fund are listed and traded on Nasdaq, Inc., under the ticker symbol “DVLU.”
|
| | | Average Annual Total Returns | |
| | | | Inception
(9/5/18)
to 3/31/24 | | Inception
(9/5/18)
to 3/31/24 |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Dorsey Wright Momentum Plus ValueTM Index | | | | | | |
| | | | | | |
(See Notes to Fund Performance Overview on page 10.)
Nasdaq® and Dorsey Wright Momentum Plus ValueTM 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.
Fund Performance Overview (Unaudited) (Continued)
First Trust Dorsey Wright Momentum & Value ETF (DVLU) (Continued)
| % of Total
Long-Term
Investments |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| % of Total
Long-Term
Investments |
Dell Technologies, Inc., Class C | |
| |
| |
Taylor Morrison Home Corp. | |
| |
| |
Reinsurance Group of America, Inc. | |
American International Group, Inc. | |
| |
| |
| |
| Performance figures assume reinvestment of all distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the indices do not actually hold a portfolio of securities and therefore do not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. The Fund’s past performance does not predict future performance. |
Frequency Distribution of Discounts and Premiums
Information showing the number of days the market price of the Fund’s shares was greater (at a premium) and less (at a discount) than the Fund’s net asset value for the most recently completed year, and the most recently completed calendar quarters since that year (or life of the Fund, if shorter) is available at https://www.ftportfolios.com/Retail/etf/home.aspx.
Fund Performance Overview (Unaudited) (Continued)
First Trust Dorsey Wright Momentum & Low Volatility ETF (DVOL)
The First Trust Dorsey Wright Momentum & Low Volatility ETF (the “Fund”) seeks investment results that correspond generally to the price and yield (before the Fund’s fees and expenses) of an index called the Dorsey Wright Momentum Plus Low VolatilityTM Index (the “Index”). Under normal conditions, the Fund will invest at least 90% of its net assets (including investment borrowings) in the securities that comprise the Index. The Fund, using an indexing investment approach, attempts to replicate, before fees and expenses, the performance of the Index. The Index is a rules-based equity index designed to track the overall performance of the 50 stocks comprising the Nasdaq US Large Mid CapTM Index that exhibit the lowest levels of volatility while still maintaining high levels of “relative strength.” A relative strength analysis is a momentum-based investment strategy that emphasizes a security’s forward price momentum in the security selection process. The Index is owned and was developed by Nasdaq, Inc. The shares of the Fund are listed and traded on Nasdaq, Inc., under the ticker symbol “DVOL.”
|
| | | Average Annual Total Returns | |
| | | | Inception
(9/5/18)
to 3/31/24 | | Inception
(9/5/18)
to 3/31/24 |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Dorsey Wright Momentum Plus Low VolatilityTM Index | | | | | | |
| | | | | | |
(See Notes to Fund Performance Overview on page 10.)
Nasdaq® and Dorsey Wright Momentum Plus Low VolatilityTM 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.
Fund Performance Overview (Unaudited) (Continued)
First Trust Dorsey Wright Momentum & Low Volatility ETF (DVOL) (Continued)
| % of Total
Long-Term
Investments |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| % of Total
Long-Term
Investments |
| |
| |
Mastercard, Inc., Class A | |
| |
| |
| |
Marsh & McLennan Cos., Inc. | |
| |
| |
| |
| |
| Performance figures assume reinvestment of all distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the indices do not actually hold a portfolio of securities and therefore do not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. The Fund’s past performance does not predict future performance. |
Frequency Distribution of Discounts and Premiums
Information showing the number of days the market price of the Fund’s shares was greater (at a premium) and less (at a discount) than the Fund’s net asset value for the most recently completed year, and the most recently completed calendar quarters since that year (or life of the Fund, if shorter) is available at https://www.ftportfolios.com/Retail/etf/home.aspx.
Notes to Fund Performance Overview (Unaudited)
Total returns for the periods since inception are calculated from the inception date of each Fund. “Average Annual Total Returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative Total Returns” represent the total change in value of an investment over the periods indicated.
Each Fund’s per share net asset value (“NAV”) is the value of one share of the Fund and is computed by dividing the value of all assets of the Fund (including accrued interest and dividends), less all liabilities (including accrued expenses and dividends declared but unpaid), by the total number of outstanding shares. The price used to calculate market return (“Market Price”) is determined by using the midpoint of the national best bid and offer price (“NBBO”) as of the time that the Fund’s NAV is calculated. Under Securities and Exchange Commission rules, the NBBO consists of the highest displayed buy and lowest sell prices among the various exchanges trading the Fund at the time the Fund’s NAV is calculated. Prior to January 1, 2019, the price used was the midpoint between the highest bid and the lowest offer on the stock exchange on which shares of the Fund were listed for trading as of the time that the Fund’s NAV was calculated. Since shares of each Fund did not trade in the secondary market until after its inception, for the period from inception to the first day of secondary market trading in shares of the Fund, the NAV of each Fund is used as a proxy for the secondary market trading price to calculate market returns. NAV and market returns assume that all distributions have been reinvested in each Fund at NAV and Market Price, respectively.
An index is a statistical composite that tracks a specified financial market or sector. Unlike each Fund, the indices do not actually hold a portfolio of securities and therefore do not incur the expenses incurred by each Fund. These expenses negatively impact the performance of each Fund. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower. The total returns presented reflect the reinvestment of dividends on securities in the indices. The returns presented do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. The investment return and principal value of shares of each Fund will vary with changes in market conditions. Shares of each Fund may be worth more or less than their original cost when they are redeemed or sold in the market. Each Fund’s past performance is no guarantee of future performance.
First Trust Exchange-Traded Fund VIUnderstanding Your Fund ExpensesMarch 31, 2024 (Unaudited) As a shareholder of First Trust SMID Cap Rising Dividend Achievers ETF, First Trust Dorsey Wright Momentum & Value ETF, or First Trust Dorsey Wright Momentum & Low Volatility ETF (each a “Fund” and collectively, the “Funds”), you incur two types of costs: (1) transaction costs; and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, if any, and other Fund expenses. This Example is intended to help you understand your ongoing costs of investing in the Funds and to compare these costs with the ongoing costs of investing in other funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held through the six-month period ended March 31, 2024.
The first line in the following table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During the Six-Month Period” to estimate the expenses you paid on your account during this six-month period.
Hypothetical Example for Comparison Purposes
The second line in the following table provides information about hypothetical account values and hypothetical expenses based on each Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not each Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs such as brokerage commissions. Therefore, the second line in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| Beginning
Account Value
October 1, 2023 | Ending
Account Value
March 31, 2024 | Annualized
Expense Ratio
Based on the
Six-Month
Period | Expenses Paid
During the
Six-Month
Period (a) |
First Trust SMID Cap Rising Dividend Achievers ETF (SDVY) |
| | | | |
Hypothetical (5% return before expenses) | | | | |
First Trust Dorsey Wright Momentum & Value ETF (DVLU) |
| | | | |
Hypothetical (5% return before expenses) | | | | |
First Trust Dorsey Wright Momentum & Low Volatility ETF (DVOL) |
| | | | |
Hypothetical (5% return before expenses) | | | | |
| Expenses are equal to the annualized expense ratio as indicated in the table multiplied by the average account value over the period (October 1, 2023 through March 31, 2024), multiplied by 183/366 (to reflect the six-month period). |
First Trust SMID Cap Rising Dividend Achievers ETF (SDVY)Portfolio of InvestmentsMarch 31, 2024 (Unaudited)
| | |
|
| Air Freight & Logistics — | |
| Expeditors International of Washington, Inc. | |
| | |
| | |
| | |
| | |
| | |
| Winnebago Industries, Inc. | |
| | |
| | |
| | |
| Citizens Financial Group, Inc. | |
| | |
| | |
| | |
| | |
| | |
| Huntington Bancshares, Inc. | |
| International Bancshares Corp. | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| Advanced Drainage Systems, Inc. | |
| | |
| | |
| | |
| | |
| | |
| | |
| CF Industries Holdings, Inc. | |
| | |
| | |
| Construction & Engineering | |
| Comfort Systems USA, Inc. | |
| | |
| | |
| | |
| | |
| | |
|
| Consumer Finance (Continued) | |
| | |
| | |
| | |
| Diversified Consumer Services | |
| | |
| Electronic Equipment, Instruments & Components | |
| Vishay Intertechnology, Inc. | |
| Energy Equipment & Services | |
| Atlas Energy Solutions, Inc. | |
| | |
| | |
| Select Water Solutions, Inc. | |
| | |
| | |
| Endeavor Group Holdings, Inc., Class A | |
| Financial Services — 7.1% | |
| Corebridge Financial, Inc. | |
| | |
| | |
| Jackson Financial, Inc., Class A | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| Hotels, Restaurants & Leisure | |
| Monarch Casino & Resort, Inc. | |
| Household Durables — 8.1% | |
| Century Communities, Inc. | |
| Ethan Allen Interiors, Inc. | |
| | |
| Installed Building Products, Inc. | |
| | |
| | |
| | |
| | |
| | |
| | |
| American Financial Group, Inc. | |
See Notes to Financial Statements
First Trust SMID Cap Rising Dividend Achievers ETF (SDVY)Portfolio of Investments (Continued)March 31, 2024 (Unaudited) | | |
COMMON STOCKS (Continued) |
| | |
| Cincinnati Financial Corp. | |
| | |
| Reinsurance Group of America, Inc. | |
| | |
| | |
| Interactive Media & Services | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| Lincoln Electric Holdings, Inc. | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| Interpublic Group of (The) Cos., Inc. | |
| | |
| | |
| | |
| Alpha Metallurgical Resources, Inc. | |
| | |
| | |
| | |
| | |
| | |
| Oil, Gas & Consumable Fuels | |
| California Resources Corp. | |
| | |
| | |
| Magnolia Oil & Gas Corp., Class A | |
| | |
| | |
| | |
| Paper & Forest Products — | |
| | |
| | |
|
| Professional Services — 3.9% | |
| | |
| | |
| | |
| | |
| | |
| Semiconductors & Semiconductor Equipment | |
| | |
| | |
| | |
| Dick’s Sporting Goods, Inc. | |
| | |
| | |
| Technology Hardware, Storage | |
| Dell Technologies, Inc., Class C | |
| | |
| | |
| Textiles, Apparel & Luxury | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
MONEY MARKET FUNDS — 0.1% |
| Dreyfus Government Cash Management Fund, Institutional Shares - 5.20% (a) | |
| | |
|
|
| Total Investments — 99.9% | |
| | |
| Net Other Assets and Liabilities — 0.1% | |
| | |
| Rate shown reflects yield as of March 31, 2024. |
See Notes to Financial Statements
First Trust SMID Cap Rising Dividend Achievers ETF (SDVY)Portfolio of Investments (Continued)March 31, 2024 (Unaudited)
Valuation InputsA summary of the inputs used to value the Fund’s investments as of March 31, 2024 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements):
| | | Level 2
Significant
Observable
Inputs | Level 3
Significant
Unobservable
Inputs |
| | | | |
| | | | |
| | | | |
| See Portfolio of Investments for industry breakout. |
See Notes to Financial Statements
First Trust Dorsey Wright Momentum & Value ETF (DVLU)Portfolio of InvestmentsMarch 31, 2024 (Unaudited)
| | |
|
| Aerospace & Defense — 1.3% | |
| | |
| | |
| First Citizens BancShares, Inc., Class A | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| Builders FirstSource, Inc. (a) | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| Capital One Financial Corp. | |
| Discover Financial Services | |
| | |
| | |
| Consumer Staples Distribution | |
| US Foods Holding Corp. (a) | |
| Electric Utilities — 1.1% | |
| | |
| Electronic Equipment, Instruments & Components | |
| | |
| | |
| | |
| | |
| | |
| Tenet Healthcare Corp. (a) | |
| | |
| Household Durables — 15.8% | |
| | |
| | |
| | |
| | |
| Taylor Morrison Home Corp. (a) | |
| | |
| | |
| | |
|
| Independent Power and Renewable Electricity | |
| | |
| | |
| American International Group, Inc. | |
| Old Republic International Corp. | |
| Reinsurance Group of America, Inc. | |
| | |
| | |
| | |
| | |
| Cleveland-Cliffs, Inc. (a) | |
| | |
| | |
| | |
| | |
| Starwood Property Trust, Inc. | |
| Oil, Gas & Consumable Fuels | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| Elanco Animal Health, Inc. (a) | |
| | |
| Jones Lang LaSalle, Inc. (a) | |
| | |
| Dick’s Sporting Goods, Inc. | |
| | |
| Penske Automotive Group, Inc. | |
| | |
| Technology Hardware, Storage | |
| Dell Technologies, Inc., Class C | |
| Textiles, Apparel & Luxury | |
| | |
| | |
| Beacon Roofing Supply, Inc. (a) | |
| | |
| | |
See Notes to Financial Statements
First Trust Dorsey Wright Momentum & Value ETF (DVLU)Portfolio of Investments (Continued)March 31, 2024 (Unaudited) | | |
MONEY MARKET FUNDS — 0.0% |
| Dreyfus Government Cash Management Fund, Institutional Shares - 5.20% (b) | |
| | |
|
|
| Total Investments — 99.9% | |
| | |
| Net Other Assets and Liabilities — 0.1% | |
| | |
| Non-income producing security. |
| Rate shown reflects yield as of March 31, 2024. |
Abbreviations throughout the Portfolio of Investments: |
| – Real Estate Investment Trusts |
Valuation InputsA summary of the inputs used to value the Fund’s investments as of March 31, 2024 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements):
| | | Level 2
Significant
Observable
Inputs | Level 3
Significant
Unobservable
Inputs |
| | | | |
| | | | |
| | | | |
| See Portfolio of Investments for industry breakout. |
See Notes to Financial Statements
First Trust Dorsey Wright Momentum & Low Volatility ETF (DVOL)Portfolio of InvestmentsMarch 31, 2024 (Unaudited)
| | |
|
| Aerospace & Defense — 5.9% | |
| | |
| | |
| | |
| | |
| | |
| Air Freight & Logistics — | |
| Expeditors International of Washington, Inc. | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| Consumer Staples Distribution | |
| | |
| US Foods Holding Corp. (a) | |
| | |
| Electric Utilities — 1.9% | |
| | |
| Electrical Equipment — 2.8% | |
| | |
| Electronic Equipment, Instruments & Components | |
| | |
| Financial Services — 7.8% | |
| | |
| Mastercard, Inc., Class A | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
| Health Care Providers & Services (Continued) | |
| | |
| | |
| | |
| Hotels, Restaurants & Leisure | |
| Hilton Worldwide Holdings, Inc. | |
| Household Durables — 1.1% | |
| | |
| Industrial Conglomerates — | |
| | |
| | |
| | |
| Arthur J. Gallagher & Co. | |
| | |
| Marsh & McLennan Cos., Inc. | |
| Old Republic International Corp. | |
| Selective Insurance Group, Inc. | |
| | |
| | |
| Illinois Tool Works, Inc. | |
| | |
| | |
| | |
| Westinghouse Air Brake Technologies Corp. | |
| | |
| Oil, Gas & Consumable Fuels | |
| | |
| | |
| | |
| Professional Services — 5.0% | |
| Booz Allen Hamilton Holding Corp. | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| O’Reilly Automotive, Inc. (a) | |
| | |
| | |
See Notes to Financial Statements
First Trust Dorsey Wright Momentum & Low Volatility ETF (DVOL)Portfolio of Investments (Continued)March 31, 2024 (Unaudited) | | |
COMMON STOCKS (Continued) |
| Technology Hardware, Storage | |
| | |
| | |
| | |
| | |
| | |
MONEY MARKET FUNDS — 0.0% |
| Dreyfus Government Cash Management Fund, Institutional Shares - 5.20% (b) | |
| | |
|
|
| Total Investments — 99.9% | |
| | |
| Net Other Assets and Liabilities — 0.1% | |
| | |
| Non-income producing security. |
| Rate shown reflects yield as of March 31, 2024. |
Abbreviations throughout the Portfolio of Investments: |
| – Real Estate Investment Trusts |
Valuation InputsA summary of the inputs used to value the Fund’s investments as of March 31, 2024 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements):
| | | Level 2
Significant
Observable
Inputs | Level 3
Significant
Unobservable
Inputs |
| | | | |
| | | | |
| | | | |
| See Portfolio of Investments for industry breakout. |
See Notes to Financial Statements
First Trust Exchange-Traded Fund VIStatements of Assets and LiabilitiesMarch 31, 2024 (Unaudited)
| First Trust SMID Cap Rising Dividend Achievers ETF
(SDVY) | First Trust Dorsey Wright Momentum & Value ETF
(DVLU) | First Trust Dorsey Wright Momentum & Low Volatility ETF
(DVOL) |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Investment securities sold | | | |
| | | |
|
| | | |
| | | |
Investment securities purchased | | | |
| | | |
| | | |
| | | |
|
| | | |
| | | |
| | | |
Accumulated distributable earnings (loss) | | | |
| | | |
NET ASSET VALUE, per share | | | |
Number of shares outstanding (unlimited number of shares authorized, par value $0.01 per share) | | | |
| | | |
See Notes to Financial Statements
First Trust Exchange-Traded Fund VIStatements of OperationsFor the Six Months Ended March 31, 2024 (Unaudited)
| First Trust SMID Cap Rising Dividend Achievers ETF
(SDVY) | First Trust Dorsey Wright Momentum & Value ETF
(DVLU) | First Trust Dorsey Wright Momentum & Low Volatility ETF
(DVOL) |
| | | |
| | | |
| | | |
| | | |
|
| | | |
| | | |
| | | |
NET INVESTMENT INCOME (LOSS) | | | |
|
NET REALIZED AND UNREALIZED GAIN (LOSS): | | | |
Net realized gain (loss) on: | | | |
| | | |
| | | |
| | | |
Net change in unrealized appreciation (depreciation) on investments | | | |
NET REALIZED AND UNREALIZED GAIN (LOSS) | | | |
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | | | |
See Notes to Financial Statements
This page intentionally left blank.
First Trust Exchange-Traded Fund VIStatements of Changes in Net Assets
| First Trust SMID Cap Rising Dividend Achievers ETF (SDVY) | First Trust Dorsey Wright Momentum & Value ETF (DVLU) |
| Six Months
Ended
3/31/2024 (Unaudited) | | Six Months
Ended
3/31/2024 (Unaudited) | |
| | | | |
Net investment income (loss) | | | | |
| | | | |
Net change in unrealized appreciation (depreciation) | | | | |
Net increase (decrease) in net assets resulting from operations | | | | |
|
DISTRIBUTIONS TO SHAREHOLDERS FROM: | | | | |
| | | | |
|
SHAREHOLDER TRANSACTIONS: | | | | |
Proceeds from shares sold | | | | |
| | | | |
Net increase (decrease) in net assets resulting from shareholder transactions | | | | |
Total increase (decrease) in net assets | | | | |
|
| | | | |
| | | | |
| | | | |
|
CHANGES IN SHARES OUTSTANDING: | | | | |
Shares outstanding, beginning of period | | | | |
| | | | |
| | | | |
Shares outstanding, end of period | | | | |
See Notes to Financial Statements
First Trust Dorsey Wright Momentum & Low Volatility ETF (DVOL) |
Six Months
Ended
3/31/2024 (Unaudited) | |
| |
| |
| |
| |
| |
|
| |
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|
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|
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|
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See Notes to Financial Statements
First Trust Exchange-Traded Fund VIFinancial HighlightsFor a share outstanding throughout each period First Trust SMID Cap Rising Dividend Achievers ETF (SDVY)
| Six Months
Ended
3/31/2024
(Unaudited) | |
| | | | | |
Net asset value, beginning of period | | | | | | |
Income from investment operations: | | | | | | |
Net investment income (loss) | | | | | | |
Net realized and unrealized gain (loss) | | | | | | |
Total from investment operations | | | | | | |
Distributions paid to shareholders from: | | | | | | |
| | | | | | |
Net asset value, end of period | | | | | | |
| | | | | | |
|
Ratios to average net assets/supplemental data: | | | | | | |
Net assets, end of period (in 000’s) | | | | | | |
Ratio of total expenses to average net assets | | | | | | |
Ratio of net investment income (loss) to average net assets | | | | | | |
Portfolio turnover rate (d) | | | | | | |
| Based on average shares outstanding. |
| Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is calculated for the time period presented and is not annualized for periods of less than a year. |
| |
| Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities received or delivered from processing creations or redemptions and in-kind transactions. |
See Notes to Financial Statements
First Trust Exchange-Traded Fund VIFinancial Highlights (Continued)For a share outstanding throughout each period First Trust Dorsey Wright Momentum & Value ETF (DVLU)
| Six Months
Ended
3/31/2024
(Unaudited) | |
| | | | | |
Net asset value, beginning of period | | | | | | |
Income from investment operations: | | | | | | |
Net investment income (loss) | | | | | | |
Net realized and unrealized gain (loss) | | | | | | |
Total from investment operations | | | | | | |
Distributions paid to shareholders from: | | | | | | |
| | | | | | |
Net asset value, end of period | | | | | | |
| | | | | | |
|
Ratios to average net assets/supplemental data: | | | | | | |
Net assets, end of period (in 000’s) | | | | | | |
Ratio of total expenses to average net assets | | | | | | |
Ratio of net investment income (loss) to average net assets | | | | | | |
Portfolio turnover rate (d) | | | | | | |
| Based on average shares outstanding. |
| Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is calculated for the time period presented and is not annualized for periods of less than a year. |
| |
| Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities received or delivered from processing creations or redemptions and in-kind transactions. |
See Notes to Financial Statements
First Trust Exchange-Traded Fund VIFinancial Highlights (Continued)For a share outstanding throughout each period First Trust Dorsey Wright Momentum & Low Volatility ETF (DVOL)
| Six Months
Ended
3/31/2024
(Unaudited) | |
| | | | | |
Net asset value, beginning of period | | | | | | |
Income from investment operations: | | | | | | |
Net investment income (loss) | | | | | | |
Net realized and unrealized gain (loss) | | | | | | |
Total from investment operations | | | | | | |
Distributions paid to shareholders from: | | | | | | |
| | | | | | |
Net asset value, end of period | | | | | | |
| | | | | | |
|
Ratios to average net assets/supplemental data: | | | | | | |
Net assets, end of period (in 000’s) | | | | | | |
Ratio of total expenses to average net assets | | | | | | |
Ratio of net investment income (loss) to average net assets | | | | | | |
Portfolio turnover rate (d) | | | | | | |
| Based on average shares outstanding. |
| Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is calculated for the time period presented and is not annualized for periods of less than a year. |
| |
| Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities received or delivered from processing creations or redemptions and in-kind transactions. |
See Notes to Financial Statements
Notes to Financial Statements
First Trust Exchange-Traded Fund VIMarch 31, 2024 (Unaudited) 1. Organization
First Trust Exchange-Traded Fund VI (the “Trust”) is an open-end management investment company organized as a Massachusetts business trust on June 4, 2012, and is registered with the Securities and Exchange Commission under the Investment Company Act of 1940, as amended (the “1940 Act”).
The Trust currently consists of thirty-two exchange-traded funds that are offering shares. This report covers the three funds (each a “Fund” and collectively, the “Funds”) listed below, each a diversified series of the Trust. The shares of each Fund are listed and traded on Nasdaq, Inc. (“Nasdaq”).
First Trust SMID Cap Rising Dividend Achievers ETF – (ticker “SDVY”) |
First Trust Dorsey Wright Momentum & Value ETF – (ticker “DVLU”) |
First Trust Dorsey Wright Momentum & Low Volatility ETF – (ticker “DVOL”) |
Each Fund represents a separate series of shares of beneficial interest in the Trust. Unlike conventional mutual funds, each Fund issues and redeems shares on a continuous basis, at net asset value (“NAV”), only in large blocks of shares known as “Creation Units.” The investment objective of each Fund is to seek investment results that correspond generally to the price and yield (before the Fund’s fees and expenses) of the following indices:
| |
First Trust SMID Cap Rising Dividend Achievers ETF | Nasdaq US Small Mid Cap Rising Dividend AchieversTM Index |
First Trust Dorsey Wright Momentum & Value ETF | Dorsey Wright Momentum Plus ValueTM Index |
First Trust Dorsey Wright Momentum & Low Volatility ETF | Dorsey Wright Momentum Plus Low VolatilityTM Index |
2. Significant Accounting Policies
The Funds are each considered an investment company and follow accounting and reporting guidance under Financial Accounting Standards Board Accounting Standards Codification Topic 946, “Financial Services-Investment Companies.” The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of the financial statements. The preparation of the financial statements in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.
Each Fund’s NAV is determined daily as of the close of regular trading on the New York Stock Exchange (“NYSE”), normally 4:00 p.m. Eastern time, on each day the NYSE is open for trading. If the NYSE closes early on a valuation day, the NAV is determined as of that time. Each Fund’s NAV is calculated by dividing the value of all assets of each Fund (including accrued interest and dividends), less all liabilities (including accrued expenses and dividends declared but unpaid), by the total number of shares outstanding.
Each Fund’s investments are valued daily at market value or, in the absence of market value with respect to any portfolio securities, at fair value. Market value prices represent readily available market quotations such as last sale or official closing prices from a national or foreign exchange (i.e., a regulated market) and are primarily obtained from third-party pricing services. Fair value prices represent any prices not considered market value prices and are either obtained from a third-party pricing service or are determined by the Pricing Committee of the Funds’ investment advisor, First Trust Advisors L.P. (“First Trust” or the “Advisor”), in accordance with valuation procedures approved by the Trust’s Board of Trustees, and in accordance with provisions of the 1940 Act and rules thereunder. Investments valued by the Advisor’s Pricing Committee, if any, are footnoted as such in the footnotes to the Portfolio of Investments. Each Fund’s investments are valued as follows:
Common stocks and other equity securities listed on any national or foreign exchange (excluding Nasdaq and the London Stock Exchange Alternative Investment Market (“AIM”)) are valued at the last sale price on the exchange on which they are principally traded or, for Nasdaq and AIM securities, the official closing price. Securities traded on more than one securities exchange are valued at the last sale price or official closing price, as applicable, at the close of the securities exchange representing the primary exchange for such securities.
Shares of open-end funds are valued based on NAV per share.
Notes to Financial Statements (Continued)
First Trust Exchange-Traded Fund VIMarch 31, 2024 (Unaudited) Equity securities traded in an over-the-counter market are valued at the close price or the last trade price.
Certain securities may not be able to be priced by pre-established pricing methods. Such securities may be valued by the Advisor’s Pricing Committee at fair value. These securities generally include, but are not limited to, restricted securities (securities which may not be publicly sold without registration under the Securities Act of 1933, as amended) for which a third-party pricing service is unable to provide a market price; securities whose trading has been formally suspended; a security whose market or fair value price is not available from a pre-established pricing source; a security with respect to which an event has occurred that is likely to materially affect the value of the security after the market has closed but before the calculation of a Fund’s NAV or make it difficult or impossible to obtain a reliable market quotation; and a security whose price, as provided by the third-party pricing service, does not reflect the security’s fair value. As a general principle, the current fair value of a security would appear to be the amount which the owner might reasonably expect to receive for the security upon its current sale. When fair value prices are used, generally they will differ from market quotations or official closing prices on the applicable exchanges. A variety of factors may be considered in determining the fair value of such securities, including, but not limited to, the following:
1)
the last sale price on the exchange on which they are principally traded or, for Nasdaq and AIM securities, the official closing price;
3)
the size of the holding;
4)
the initial cost of the security;
5)
transactions in comparable securities;
6)
price quotes from dealers and/or third-party pricing services;
7)
relationships among various securities;
8)
information obtained by contacting the issuer, analysts, or the appropriate stock exchange;
9)
an analysis of the issuer’s financial statements;
10)
the existence of merger proposals or tender offers that might affect the value of the security; and
11)
other relevant factors.
In addition, differences between the prices used to calculate a Fund’s NAV and the prices used by such Fund’s corresponding index could result in a difference between a Fund’s performance and the performance of its underlying index.
The Funds are subject to fair value accounting standards that define fair value, establish the framework for measuring fair value and provide a three-level hierarchy for fair valuation based upon the inputs to the valuation as of the measurement date. The three levels of the fair value hierarchy are as follows:
• Level 1 – Level 1 inputs are quoted prices in active markets for identical investments. An active market is a market in which transactions for the investment occur with sufficient frequency and volume to provide pricing information on an ongoing basis.
• Level 2 – Level 2 inputs are observable inputs, either directly or indirectly, and include the following:
o Quoted prices for similar investments in active markets.
o Quoted prices for identical or similar investments in markets that are non-active. A non-active market is a market where there are few transactions for the investment, the prices are not current, or price quotations vary substantially either over time or among market makers, or in which little information is released publicly.
o Inputs other than quoted prices that are observable for the investment (for example, interest rates and yield curves observable at commonly quoted intervals, volatilities, prepayment speeds, loss severities, credit risks, and default rates).
o Inputs that are derived principally from or corroborated by observable market data by correlation or other means.
• Level 3 – Level 3 inputs are unobservable inputs. Unobservable inputs may reflect the reporting entity’s own assumptions about the assumptions that market participants would use in pricing the investment.
The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in those investments. A summary of the inputs used to value each Fund’s investments as of March 31, 2024, is included with each Fund’s Portfolio of Investments.
B. Securities Transactions and Investment Income
Securities transactions are recorded as of the trade date. Realized gains and losses from securities transactions are recorded on the identified cost basis. Dividend income is recorded on the ex-dividend date. Interest income, if any, is recorded on the accrual basis.
Notes to Financial Statements (Continued)
First Trust Exchange-Traded Fund VIMarch 31, 2024 (Unaudited) Withholding taxes and tax reclaims on foreign dividends have been provided for in accordance with each Fund’s understanding of the applicable country’s tax rules and rates.
Distributions received from a Fund’s investments in real estate investment trusts (“REITs”) may be comprised of return of capital, capital gains, and income. The actual character of the amounts received during the year are not known until after the REITs’ fiscal year end. A Fund records the character of distributions received from the REITs during the year based on estimates available. The characterization of distributions received by a Fund may be subsequently revised based on information received from the REITs after their tax reporting periods conclude.
C. Dividends and Distributions to Shareholders
Dividends from net investment income of each Fund, if any, are declared and paid quarterly, or as the Board of Trustees may determine from time to time. Distributions of net realized capital gains earned by each Fund, if any, are distributed at least annually. Each Fund may also designate a portion of the amount paid to redeeming shareholders as a distribution for tax purposes.
Distributions from net investment income and realized capital gains are determined in accordance with federal income tax regulations, which may differ from U.S. GAAP. Certain capital accounts in the financial statements are periodically adjusted for permanent differences in order to reflect their tax character. These permanent differences are primarily due to the varying treatment of income and gain/loss on significantly modified portfolio securities held by the Funds and have no impact on net assets or NAV per share. Temporary differences, which arise from recognizing certain items of income, expense and gain/loss in different periods for financial statement and tax purposes, will reverse at some time in the future.
The tax character of distributions paid by each Fund during the fiscal year ended September 30, 2023 was as follows:
| Distributions
paid from
Ordinary
Income | Distributions
paid from
Capital
Gains | Distributions
paid from
Return of
Capital |
First Trust SMID Cap Rising Dividend Achievers ETF | | | |
First Trust Dorsey Wright Momentum & Value ETF | | | |
First Trust Dorsey Wright Momentum & Low Volatility ETF | | | |
As of September 30, 2023, the components of distributable earnings on a tax basis for each Fund were as follows:
| Undistributed
Ordinary
Income | Accumulated
Capital and
Other
Gain (Loss) | Net
Unrealized
Appreciation
(Depreciation) |
First Trust SMID Cap Rising Dividend Achievers ETF | | | |
First Trust Dorsey Wright Momentum & Value ETF | | | |
First Trust Dorsey Wright Momentum & Low Volatility ETF | | | |
Each Fund intends to continue to qualify as a regulated investment company by complying with the requirements under Subchapter M of the Internal Revenue Code of 1986, as amended, which includes distributing substantially all of its net investment income and net realized gains to shareholders. Accordingly, no provision has been made for federal and state income taxes. However, due to the timing and amount of distributions, each Fund may be subject to an excise tax of 4% of the amount by which approximately 98% of each Fund’s taxable income exceeds the distributions from such taxable income for the calendar year.
The Funds are subject to accounting standards that establish a minimum threshold for recognizing, and a system for measuring, the benefits of a tax position taken or expected to be taken in a tax return. The taxable years ended 2020, 2021, 2022, and 2023 remain open to federal and state audit. As of March 31, 2024, management has evaluated the application of these standards to the Funds and has determined that no provision for income tax is required in the Funds’ financial statements for uncertain tax positions.
Each Fund intends to utilize provisions of the federal income tax laws, which allow it to carry a realized capital loss forward indefinitely following the year of the loss and offset such loss against any future realized capital gains. Each Fund is subject to certain limitations under U.S. tax rules on the use of capital loss carryforwards and net unrealized built-in losses. These limitations apply
Notes to Financial Statements (Continued)
First Trust Exchange-Traded Fund VIMarch 31, 2024 (Unaudited) when there has been a 50% change in ownership. At September 30, 2023, for federal income tax purposes, each applicable Fund had a capital loss carryforward available that is shown in the following table, to the extent provided by regulations, to offset future capital gains. To the extent that these loss carryforwards are used to offset future capital gains, it is probable that the capital gains so offset will not be distributed to each applicable Fund’s shareholders.
| Non-Expiring
Capital Loss
Carryforwards |
First Trust SMID Cap Rising Dividend Achievers ETF | |
First Trust Dorsey Wright Momentum & Value ETF | |
First Trust Dorsey Wright Momentum & Low Volatility ETF | |
Certain losses realized during the current fiscal year may be deferred and treated as occurring on the first day of the following fiscal year for federal income tax purposes. For the fiscal year ended September 30, 2023, the Funds had no net late year ordinary or capital losses.
As of March 31, 2024, the aggregate cost, gross unrealized appreciation, gross unrealized depreciation, and net unrealized appreciation/(depreciation) on investments (including short positions and derivatives, if any) for federal income tax purposes were as follows:
| | Gross Unrealized
Appreciation | Gross Unrealized
(Depreciation) | Net Unrealized
Appreciation
(Depreciation) |
First Trust SMID Cap Rising Dividend Achievers ETF | | | | |
First Trust Dorsey Wright Momentum & Value ETF | | | | |
First Trust Dorsey Wright Momentum & Low Volatility ETF | | | | |
Expenses, other than the investment advisory fee and other excluded expenses, are paid by the Advisor (see Note 3).
First Trust has entered into licensing agreements with Nasdaq, Inc. (“Licensor”) for the Funds. The respective license agreements allow for the use by First Trust of each Fund’s respective index and of certain trademarks and trade names of the Licensor. The Funds are sub-licensees to the applicable license agreements.
3. Investment Advisory Fee, Affiliated Transactions and Other Fee Arrangements
First Trust, the investment advisor to the Funds, is a limited partnership with one limited partner, Grace Partners of DuPage L.P., and one general partner, The Charger Corporation. The Charger Corporation is an Illinois corporation controlled by James A. Bowen, Chief Executive Officer of First Trust. First Trust is responsible for the selection and ongoing monitoring of the securities in each Fund’s portfolio, managing the Funds’ business affairs and providing certain administrative services necessary for the management of the Funds.
First Trust is responsible for the expenses of each Fund including the cost of transfer agency, custody, fund administration, licensing fees, legal, audit and other services, but excluding fee payments under the Investment Management Agreement, interest, taxes, brokerage commissions and other expenses associated with the execution of portfolio transactions, acquired fund fees and expenses, distribution and service fees pursuant to a Rule 12b-1 plan, if any, and extraordinary expenses, which are paid by each respective Fund. The annual unitary management fee payable by each Fund to First Trust for these services will be reduced at certain levels of each Fund’s net assets (“breakpoints”) and calculated pursuant to the following schedule:
Notes to Financial Statements (Continued)
First Trust Exchange-Traded Fund VIMarch 31, 2024 (Unaudited) | |
Fund net assets up to and including $2.5 billion | |
Fund net assets greater than $2.5 billion up to and including $5 billion | |
Fund net assets greater than $5 billion up to and including $7.5 billion | |
Fund net assets greater than $7.5 billion up to and including $10 billion | |
Fund net assets greater than $10 billion up to and including $15 billion | |
Fund net assets greater than $15 billion | |
The Trust has multiple service agreements with The Bank of New York Mellon (“BNYM”). Under the service agreements, BNYM performs custodial, fund accounting, certain administrative services, and transfer agency services for each Fund. As custodian, BNYM is responsible for custody of each Fund’s assets. As fund accountant and administrator, BNYM is responsible for maintaining the books and records of each Fund’s securities and cash. As transfer agent, BNYM is responsible for maintaining shareholder records for each Fund. BNYM is a subsidiary of The Bank of New York Mellon Corporation, a financial holding company.
Each Trustee who is not an officer or employee of First Trust, any sub-advisor or any of their affiliates (“Independent Trustees”) is paid a fixed annual retainer that is allocated equally among each fund in the First Trust Fund Complex. Each Independent Trustee is also paid an annual per fund fee that varies based on whether the fund is a closed-end or other actively managed fund, a target outcome fund or an index fund.
Additionally, the Chairs of the Audit Committee, Nominating and Governance Committee and Valuation Committee, the Vice Chair of the Audit Committee, the Lead Independent Trustee and the Vice Lead Independent Trustee are paid annual fees to serve in such capacities, with such compensation allocated pro rata among each fund in the First Trust Fund Complex based on net assets. Independent Trustees are reimbursed for travel and out-of-pocket expenses in connection with all meetings. The Committee Chairs, the Audit Committee Vice Chair, the Lead Independent Trustee and the Vice Lead Independent Trustee rotate periodically in serving in such capacities. The officers and “Interested” Trustee receive no compensation from the Trust for acting in such capacities.
4. Purchases and Sales of Securities
For the six months ended March 31, 2024, the cost of purchases and proceeds from sales of investments for each Fund, excluding short-term investments and in-kind transactions, were as follows:
| | |
First Trust SMID Cap Rising Dividend Achievers ETF | | |
First Trust Dorsey Wright Momentum & Value ETF | | |
First Trust Dorsey Wright Momentum & Low Volatility ETF | | |
For the six months ended March 31, 2024, the cost of in-kind purchases and proceeds from in-kind sales for each Fund were as follows:
| | |
First Trust SMID Cap Rising Dividend Achievers ETF | | |
First Trust Dorsey Wright Momentum & Value ETF | | |
First Trust Dorsey Wright Momentum & Low Volatility ETF | | |
5. Creations, Redemptions and Transaction Fees
Each Fund generally issues and redeems its shares in primary market transactions through a creation and redemption mechanism and does not sell or redeem individual shares. Instead, financial entities known as “Authorized Participants” have contractual arrangements with a Fund or one of the Fund’s service providers to purchase and redeem Fund shares directly with the Fund in Creation Units. Prior to the start of trading on every business day, a Fund publishes through the National Securities Clearing Corporation the “basket” of securities, cash or other assets that it will accept in exchange for a Creation Unit of the Fund’s shares. An Authorized Participant that wishes to effectuate a creation of a Fund’s shares deposits with the Fund the “basket” of securities, cash or other assets identified by the Fund that day, and then receives the Creation Unit of the Fund’s shares in return for those assets. After purchasing a Creation Unit, the Authorized Participant may continue to hold the Fund’s shares or sell them in the secondary market. The redemption process is the reverse of the purchase process: the Authorized Participant redeems a Creation Unit of a Fund’s shares for a basket of securities, cash
Notes to Financial Statements (Continued)
First Trust Exchange-Traded Fund VIMarch 31, 2024 (Unaudited) or other assets. The combination of the creation and redemption process with secondary market trading in a Fund’s shares and underlying securities provides arbitrage opportunities that are designed to help keep the market price of a Fund’s shares at or close to the NAV per share of the Fund.
Each Fund imposes fees in connection with the purchase of Creation Units. These fees may vary based upon various fact-based circumstances, including, but not limited to, the composition of the securities included in the Creation Unit or the countries in which the transactions are settled. The price for each Creation Unit will equal the daily NAV per share of a Fund times the number of shares in a Creation Unit, plus the fees described above and, if applicable, any operational processing and brokerage costs, transfer fees, stamp taxes and part or all of the spread between the expected bid and offer side of the market related to the securities comprising the creation basket.
Each Fund also imposes fees in connection with the redemption of Creation Units. These fees may vary based upon various fact-based circumstances, including, but not limited to, the composition of the securities included in the Creation Unit or the countries in which the transactions are settled. The price received for each Creation Unit will equal the daily NAV per share of a Fund times the number of shares in a Creation Unit, minus the fees described above and, if applicable, any operational processing and brokerage costs, transfer fees, stamp taxes and part or all of the spread between the expected bid and offer side of the market related to the securities comprising the redemption basket. Investors who use the services of a broker or other such intermediary in addition to an Authorized Participant to effect a redemption of a Creation Unit may also be assessed an amount to cover the cost of such services. The redemption fee charged by a Fund will comply with Rule 22c-2 of the 1940 Act which limits redemption fees to no more than 2% of the value of the shares redeemed.
The Board of Trustees adopted a Distribution and Service Plan pursuant to Rule 12b-1 under the 1940 Act. In accordance with the Rule 12b-1 plan, the Funds are authorized to pay an amount up to 0.25% of their average daily net assets each year to reimburse First Trust Portfolios L.P. (“FTP”), the distributor of the Funds, for amounts expended to finance activities primarily intended to result in the sale of Creation Units or the provision of investor services. FTP may also use this amount to compensate securities dealers or other persons that are Authorized Participants for providing distribution assistance, including broker-dealer and shareholder support and educational and promotional services.
No 12b-1 fees are currently paid by the Funds, and pursuant to a contractual arrangement, no 12b-1 fees will be paid any time before January 31, 2025.
The Trust, on behalf of the Funds, has a variety of indemnification obligations under contracts with its service providers. The Trust’s maximum exposure under these arrangements is unknown. However, the Trust has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.
Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were issued and has determined that there were no subsequent events requiring recognition or disclosure in the financial statements that have not already been disclosed.
First Trust Exchange-Traded Fund VIMarch 31, 2024 (Unaudited) Proxy Voting Policies and Procedures
A description of the policies and procedures that the Trust uses to determine how to vote proxies and information on how each Fund voted proxies relating to its portfolio securities during the most recent 12-month period ended June 30 is available (1) without charge, upon request, by calling (800) 988-5891; (2) on each Fund’s website at www.ftportfolios.com; and (3) on the Securities and Exchange Commission’s (“SEC”) website at www.sec.gov.
Each Fund files portfolio holdings information for each month in a fiscal quarter within 60 days after the end of the relevant fiscal quarter on Form N-PORT. Portfolio holdings information for the third month of each fiscal quarter will be publicly available on the SEC’s website at www.sec.gov. Each Fund’s complete schedule of portfolio holdings for the second and fourth quarters of each fiscal year is included in the semi-annual and annual reports to shareholders, respectively, and is filed with the SEC on Form N-CSR. The semi-annual and annual report for each Fund is available to investors within 60 days after the period to which it relates. Each Fund’s Forms N-PORT and Forms N-CSR are available on the SEC’s website listed above.
Risks are inherent in all investing. Certain general risks that may be applicable to a Fund are identified below, but not all of the material risks relevant to each Fund are included in this report and not all of the risks below apply to each Fund. The material risks of investing in each Fund are spelled out in its prospectus, statement of additional information and other regulatory filings. Before investing, you should consider each Fund’s investment objective, risks, charges and expenses, and read each Fund’s prospectus and statement of additional information carefully. You can download each Fund’s prospectus at www.ftportfolios.com or contact First Trust Portfolios L.P. at (800) 621-1675 to request a prospectus, which contains this and other information about each Fund.
Concentration Risk. To the extent that a fund is able to invest a significant percentage of its assets in a single asset class or the securities of issuers within the same country, state, region, industry or sector, an adverse economic, business or political development may affect the value of the fund’s investments more than if the fund were more broadly diversified. A fund that tracks an index will be concentrated to the extent the fund’s corresponding index is concentrated. A concentration makes a fund more susceptible to any single occurrence and may subject the fund to greater market risk than a fund that is more broadly diversified.
Credit 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 the related risk that the value of a security may decline because of concerns about the issuer’s ability to make such payments.
Cyber Security Risk. The funds are susceptible to potential operational risks through breaches in cyber security. A breach in cyber security refers to both intentional and unintentional events that may cause a fund to lose proprietary information, suffer data corruption or lose operational capacity. Such events could cause a fund to incur regulatory penalties, reputational damage, additional compliance costs associated with corrective measures and/or financial loss. In addition, cyber security breaches of a fund’s third-party service providers, such as its administrator, transfer agent, custodian, or sub-advisor, as applicable, or issuers in which the fund invests, can also subject a fund to many of the same risks associated with direct cyber security breaches.
Defined Outcome Funds Risk. To the extent a fund’s investment strategy is designed to deliver returns tied to the price performance of an underlying ETF, an investor may not realize the returns the fund seeks to achieve if that investor does not hold shares for the entire target outcome period. In the event an investor purchases shares after the first day of the target outcome period or sells shares prior to the end of the target outcome period, the buffer that the fund seeks to provide against a decline in the value of the underlying ETF may not be available, the enhanced returns that the fund seeks to provide (if any) may not be available and the investor may not participate in a gain in the value of the underlying ETF up to the cap for the investor’s investment period. Additionally, the fund will not participate in gains of the underlying ETF above the cap and a shareholder may lose their entire investment. If the fund seeks enhanced returns, there are certain time periods when the value of the fund may fall faster than the value of the underlying ETF, and it is very unlikely that, on any given day during which the underlying ETF share price increases in value, the fund’s share price will increase at the same rate as the enhanced returns sought by the fund, which is designed for an entire target outcome period. Trading flexible exchange options involves risks different from, or possibly greater than, the risks associated with investing directly in securities, such as less liquidity and correlation and valuation risks. A fund may experience substantial downside from specific flexible exchange option positions and certain positions may expire worthless.
Additional Information (Continued)
First Trust Exchange-Traded Fund VIMarch 31, 2024 (Unaudited) Derivatives Risk. To the extent a fund uses derivative instruments such as futures contracts, options contracts and swaps, the fund may experience 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 derivative. These risks are heightened when a 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.
Equity Securities Risk. To the extent a fund invests in equity securities, the value of the fund’s shares will fluctuate with changes in the value of the equity securities. Equity securities prices fluctuate for several reasons, including changes in investors’ perceptions of the financial condition of an issuer or the general condition of the relevant stock market, such as market volatility, or when political or economic events affecting the issuers occur. In addition, common stock prices may be particularly sensitive to rising interest rates, as the cost of capital rises and borrowing costs increase. Equity securities may decline significantly in price over short or extended periods of time, and such declines may occur in the equity market as a whole, or they may occur in only a particular country, company, industry or sector of the market.
ETF Risk. The shares of an ETF trade like common stock and represent an interest in a portfolio of securities. 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. Shares of an ETF trade on an exchange at market prices rather than net asset value, which may cause the shares to trade at a price greater than net asset value (premium) or less than net asset value (discount). In times of market stress, decisions by market makers to reduce or step away from their role of providing a market for an ETF’s shares, or decisions by an ETF’s authorized participants that they are unable or unwilling to proceed with creation and/or redemption orders of an ETF’s shares, could result in shares of the ETF trading at a discount to net asset value and in greater than normal intraday bid-ask spreads.
Fixed Income Securities Risk. To the extent a fund invests in fixed income securities, the fund will be subject to credit risk, income risk, interest rate risk, liquidity risk and prepayment risk. Income risk is the risk that income from a fund’s fixed income investments could decline during periods of falling interest rates. Interest rate risk is the risk that the value of a fund’s fixed income securities will decline because of rising interest rates. Liquidity risk is the risk that a security cannot be purchased or sold at the time desired, or cannot be purchased or sold without adversely affecting the price. Prepayment risk is the risk that the securities will be redeemed or prepaid by the issuer, resulting in lower interest payments received by the fund. In addition to these risks, high yield securities, or “junk” bonds, are subject to greater market fluctuations and risk of loss than securities with higher ratings, and the market for high yield securities is generally smaller and less liquid than that for investment grade securities.
Index or Model Constituent Risk. Certain funds may be a constituent of one or more indices or ETF models. As a result, such a fund may be included in one or more index-tracking exchange-traded funds or mutual funds. Being a component security of such a vehicle could greatly affect the trading activity involving a fund, the size of the fund and the market volatility of the fund. Inclusion in an index could increase demand for the fund and removal from an index could result in outsized selling activity in a relatively short period of time. As a result, a fund’s net asset value could be negatively impacted and the fund’s market price may be significantly below its net asset value during certain periods. In addition, index rebalances may potentially result in increased trading activity in a fund’s shares.
Index Provider Risk. To the extent a fund seeks to track an index, it is subject to Index Provider Risk. There is no assurance that the Index Provider will compile the Index accurately, or that the Index will be determined, maintained, constructed, reconstituted, rebalanced, composed, calculated or disseminated accurately. To correct any such error, the Index Provider may carry out an unscheduled rebalance or other modification of the Index constituents or weightings, which may increase the fund’s costs. The Index Provider does not provide any representation or warranty in relation to the quality, accuracy or completeness of data in the Index, and it does not guarantee that the Index will be calculated in accordance with its stated methodology. Losses or costs associated with any Index Provider errors generally will be borne by the fund and its shareholders.
Investment Companies Risk. To the extent a fund invests in the securities of other investment vehicles, the fund will incur additional fees and expenses that would not be present in a direct investment in those investment vehicles. Furthermore, the fund’s investment performance and risks are directly related to the investment performance and risks of the investment vehicles in which the fund invests.
LIBOR Risk. 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, has ceased making LIBOR available as a reference rate over a phase-out period that began December 31, 2021.
Additional Information (Continued)
First Trust Exchange-Traded Fund VIMarch 31, 2024 (Unaudited) There is no assurance that any alternative reference rate, including the Secured Overnight Financing Rate (“SOFR”) will be similar to or produce the same value or economic equivalence as LIBOR or that instruments using an alternative rate will have the same volume or liquidity. 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.
Management Risk. To the extent that a fund is actively managed, it is subject to management risk. In managing an actively-managed fund’s investment portfolio, the fund’s portfolio managers will apply investment techniques and risk analyses that may not have the desired result. There can be no guarantee that a fund will meet its investment objective.
Market Risk. Market risk is the risk that a particular security, or shares of a fund in general, may fall in value. Securities held by a fund, as well as shares of a fund itself, are subject to market fluctuations caused by factors such as general economic conditions, political events, regulatory or market developments, changes in interest rates and perceived trends in securities prices. Shares of a fund could decline in value or underperform other investments as a result of the risk of loss associated with these market fluctuations. In addition, local, regional or global events such as war, acts of terrorism, spread of infectious diseases or other public health issues, recessions, or other events could have a significant negative impact on a fund and its investments. Such events may affect certain geographic regions, countries, sectors and industries more significantly than others. 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 and the ensuing policies enacted by governments and central banks have caused and may continue to cause significant volatility and uncertainty 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. These events also adversely affect the prices and liquidity of a fund’s portfolio securities or other instruments and could result in disruptions in the trading markets. Any of such circumstances could have a materially negative impact on the value of a fund’s shares and result in increased market volatility. During any such events, a fund’s shares may trade at increased premiums or discounts to their net asset value and the bid/ask spread on a fund’s shares may widen.
Non-U.S. Securities Risk. To the extent a fund invests in non-U.S. securities, it is subject to additional risks not associated with securities of domestic issuers. Non-U.S. securities are subject to higher volatility than securities of domestic issuers due to: possible adverse political, social or economic developments; restrictions on foreign investment or exchange of securities; capital controls; lack of liquidity; currency exchange rates; excessive taxation; government seizure of assets; the imposition of sanctions by foreign governments; different legal or accounting standards; and less government supervision and regulation of exchanges in foreign countries. Investments in non-U.S. securities may involve higher costs than investments in U.S. securities, including higher transaction and custody costs, as well as additional taxes imposed by non-U.S. governments. These risks may be heightened for securities of companies located, or with significant operations, in emerging market countries.
Operational Risk. Each fund is subject to risks arising from various operational factors, including, but not limited to, human error, processing and communication errors, errors of a fund’s service providers, counterparties or other third-parties, failed or inadequate processes and technology or systems failures. Each fund relies on third-parties for a range of services, including custody. Any delay or failure relating to engaging or maintaining such service providers may affect a fund’s ability to meet its investment objective. Although the funds and the funds’ investment advisor seek to reduce these operational risks through controls and procedures, there is no way to completely protect against such risks.
Passive Investment Risk. To the extent a fund seeks to track an index, the fund will invest in the securities included in, or representative of, the index regardless of their investment merit. A fund generally will not attempt to take defensive positions in declining markets.
Preferred Securities Risk. Preferred securities combine some of the characteristics of both common stocks and bonds. Preferred securities are typically subordinated to bonds and other debt securities in a company’s capital structure in terms of priority to corporate income, subjecting them to greater credit risk than those debt securities. Generally, holders of preferred securities have no voting rights with respect to the issuing company unless preferred dividends have been in arrears for a specified number of periods, at which time the preferred security holders may obtain limited rights. In certain circumstances, an issuer of preferred securities may defer
Additional Information (Continued)
First Trust Exchange-Traded Fund VIMarch 31, 2024 (Unaudited) payment on the securities and, in some cases, redeem the securities prior to a specified date. Preferred securities may also be substantially less liquid than other securities, including common stock.
Valuation Risk. The valuation of certain securities may carry more risk than that of common stock. Uncertainties in the conditions of the financial markets, unreliable reference data, lack of transparency and inconsistency of valuation models and processes may lead to inaccurate asset pricing. A fund may hold investments in sizes smaller than institutionally sized round lot positions (sometimes referred to as odd lots). However, third-party pricing services generally provide evaluations on the basis of institutionally-sized round lots. If a fund sells certain of its investments in an odd lot transaction, the sale price may be less than the value at which such securities have been held by the fund. Odd lots often trade at lower prices than institutional round lots. There is no assurance that the fund will be able to sell a portfolio security at the price established by the pricing service, which could result in a loss to the fund.
NOT FDIC INSURED NOT BANK GUARANTEED MAY LOSE VALUE
First Trust Exchange-Traded Fund VI
First Trust Advisors L.P.
120 East Liberty Drive, Suite 400
Wheaton, IL 60187
ADMINISTRATOR, CUSTODIAN,
FUND ACCOUNTANT &
TRANSFER AGENT
The Bank of New York Mellon
240 Greenwich Street
New York, NY 10286
INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
Deloitte & Touche LLP
111 South Wacker Drive
Chicago, IL 60606
Chapman and Cutler LLP
320 South Canal Street
Chicago, IL 60606
Item 2. Code of Ethics.
Not applicable.
Item 3. Audit Committee Financial Expert.
Not applicable.
Item 4. Principal Accountant Fees and Services.
Not applicable.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. Schedule of Investments.
(a) Schedules of Investments in securities of unaffiliated issuers as of the close of the reporting period are included as part of the report to shareholders filed under Item 1 of this form.
(b) Not applicable.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
There have been no material changes to the procedures by which the shareholders may recommend nominees to the registrant’s board of directors, where those changes were implemented after the registrant last provided disclosure in response to the requirements of Item 407(c)(2)(iv) of Regulation S-K (17 CFR 229.407) (as required by Item 22(b)(15) of Schedule 14A (17 CFR 240.14a-101)), or this Item.
Item 11. Controls and Procedures.
| (a) | The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3 (c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15 (b)). |
| (b) | There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the period covered by this report have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
(a) Not applicable.
(b) Not applicable.
Item [18]. Recovery of Erroneously Awarded Compensation.
Not applicable.
Item 14. Exhibits.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(registrant) | | First Trust Exchange-Traded Fund VI |
By (Signature and Title)* | | /s/ James M. Dykas |
| | James M. Dykas, President and Chief Executive Officer (principal executive officer) |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By (Signature and Title)* | | /s/ James M. Dykas |
| | James M. Dykas, President and Chief Executive Officer (principal executive officer) |
By (Signature and Title)* | | /s/ Derek D. Maltbie |
| | Derek D. Maltbie, Treasurer, Chief Financial Officer and Chief Accounting Officer (principal financial officer) |
* Print the name and title of each signing officer under his or her signature.