FIRST TRUST
First Trust Exchange-Traded Fund VIII
INVESTMENT ADVISOR
First Trust Advisors L.P.
120 East Liberty Drive, Suite 400
Wheaton, IL 60187
INVESTMENT SUB-ADVISOR
Cboe Vest(SM) Financial LLC
1765 Greensboro Station Pl, 9th Floor
McLean, VA 22102
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 S. Wacker Drive
Chicago, IL 60606
LEGAL COUNSEL
Chapman and Cutler LLP
320 South Canal Street
Chicago, IL 60606
[BLANK BACK COVER]
FIRST TRUST
First Trust Exchange-Traded Fund VIII
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FT Cboe Vest International Equity Buffer ETF - March (YMAR)
FT Cboe Vest Nasdaq-100(R) Buffer ETF - March (QMAR)
FT Cboe Vest International Equity Buffer ETF - June (YJUN)
FT Cboe Vest Nasdaq-100(R) Buffer ETF - June (QJUN)
FT Cboe Vest U.S. Equity Enhance & Moderate Buffer ETF - June (XJUN)
FT Cboe Vest International Equity Buffer ETF - September (YSEP)
FT Cboe Vest Nasdaq-100(R) Buffer ETF - September (QSPT)
FT Cboe Vest International Equity Buffer ETF - December (YDEC)
FT Cboe Vest Nasdaq-100(R) Buffer ETF - December (QDEC)
FT Cboe Vest U.S. Equity Enhance & Moderate Buffer ETF - December (XDEC)
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Semi-Annual Report
For the Period Ended
February 28, 2022
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TABLE OF CONTENTS
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FIRST TRUST EXCHANGE-TRADED FUND VIII
SEMI-ANNUAL REPORT
FEBRUARY 28, 2022
Shareholder Letter........................................................... 2
Fund Performance Overview
FT Cboe Vest International Equity Buffer ETF - March (YMAR)............... 3
FT Cboe Vest Nasdaq-100(R) Buffer ETF - March (QMAR)...................... 4
FT Cboe Vest International Equity Buffer ETF - June (YJUN)................ 5
FT Cboe Vest Nasdaq-100(R) Buffer ETF - June (QJUN)....................... 6
FT Cboe Vest U.S. Equity Enhance & Moderate Buffer ETF - June (XJUN)...... 7
FT Cboe Vest International Equity Buffer ETF - September (YSEP)........... 8
FT Cboe Vest Nasdaq-100(R) Buffer ETF - September (QSPT).................. 9
FT Cboe Vest International Equity Buffer ETF - December (YDEC)............ 10
FT Cboe Vest Nasdaq-100(R) Buffer ETF - December (QDEC)................... 11
FT Cboe Vest U.S. Equity Enhance & Moderate Buffer ETF - December (XDEC).. 12
Notes to Fund Performance Overview........................................... 13
Portfolio Management......................................................... 14
Understanding Your Fund Expenses............................................. 16
Portfolio of Investments
FT Cboe Vest International Equity Buffer ETF - March (YMAR)............... 18
FT Cboe Vest Nasdaq-100(R) Buffer ETF - March (QMAR)...................... 20
FT Cboe Vest International Equity Buffer ETF - June (YJUN)................ 22
FT Cboe Vest Nasdaq-100(R) Buffer ETF - June (QJUN)....................... 24
FT Cboe Vest U.S. Equity Enhance & Moderate Buffer ETF - June (XJUN)...... 26
FT Cboe Vest International Equity Buffer ETF - September (YSEP)........... 28
FT Cboe Vest Nasdaq-100(R) Buffer ETF - September (QSPT).................. 30
FT Cboe Vest International Equity Buffer ETF - December (YDEC)............ 32
FT Cboe Vest Nasdaq-100(R) Buffer ETF - December (QDEC)................... 34
FT Cboe Vest U.S. Equity Enhance & Moderate Buffer ETF - December (XDEC).. 36
Statements of Assets and Liabilities......................................... 38
Statements of Operations..................................................... 40
Statements of Changes in Net Assets.......................................... 42
Financial Highlights......................................................... 46
Notes to Financial Statements................................................ 52
Additional Information....................................................... 61
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FIRST TRUST EXCHANGE-TRADED FUND VIII
SEMI-ANNUAL REPORT
FEBRUARY 28, 2022
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/or Cboe Vest(SM) Financial LLC ("Cboe Vest" or the
"Sub-Advisor") and their respective 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
the series of First Trust Exchange-Traded Fund VIII (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/or Sub-Advisor and their respective 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 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.
HOW TO READ THIS REPORT
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.
The statistical information that follows may help you understand each Fund's
performance compared to that of a relevant market benchmark.
It is important to keep in mind that the opinions expressed by personnel of the
Advisor and/or Sub-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 the prospectus, statement of
additional information, and other Fund regulatory filings.
Page 1
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SHAREHOLDER LETTER
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FIRST TRUST EXCHANGE-TRADED FUND VIII
SEMI-ANNUAL LETTER FROM THE CHAIRMAN AND CEO
FEBRUARY 28, 2022
Dear Shareholders:
First Trust is pleased to provide you with the semi-annual report for certain
series of the First Trust Exchange-Traded Fund VIII (the "Funds"), which
contains detailed information about the Funds for the six-month period ended
February 28, 2022. Please note that some of the Funds were incepted after
September 1, 2021, the start of the reporting period, so information in this
letter and the report prior to those inception dates will not apply to all
Funds.
Interest rates, bond yields and inflation are trending higher in the U.S., and
perhaps what matters most is that all three are moving in tandem, which has not
happened for quite some time. To start, let us focus on bond yields, which, like
interest rates and inflation, have traded at or near their historic lows for
many years. Over the past decade, we have seen the yield on the 10-Year Treasury
Note ("T-Note") climb from its artificial lows to the 3.00% level on two
occasions only to have it reverse course soon thereafter. In 2013, the yield on
the benchmark government bond rose from 1.75% at the start of the year to 3.03%
at the close of trading on December 31, 2013. One year later it stood at 2.17%.
In 2018, the yield rose from 2.41% at the start of the year to a 2018 high of
3.24% on November 8, 2018. At the end of 2019, it yielded 1.92%. In 2022, it has
reached as high as 2.78% (on April 11), representing a significant move from
1.51% at the start of the year. The point is that we have endured substantial
upward moves in the yield on the 10-Year T-Note, but they were not sustained.
Short-term interest rates, as controlled by the Federal Reserve (the "Fed") via
its Federal Funds target rate, only accompanied bond yields higher in one of
those two instances. In 2013, bond yields rose but the Fed did not raise
short-term interest rates at all. In 2017 and 2018, the Fed executed multiple
interest rate hikes, but reversed course in 2019, undoing the entirety of its
2017-2018 tightening phase. On March 16, 2022, the Fed initiated a 25-basis
point ("bps") hike in the Federal Funds target rate. The median member of the
Federal Open Market Committee is signaling another six hikes, totaling 150 bps,
through year-end, according to Brian Wesbury, Chief Economist at First Trust.
That would equate to 175 bps in aggregate in 2022. The Fed also signaled it
could raise interest rates an additional 75-100 bps in 2023. So, for all intents
and purposes, unless something dramatic happens, such as an escalation of the
war between Russia and Ukraine, we believe interest rates are heading much
higher. With respect to inflation, as measured by the Consumer Price Index
("CPI"), it was essentially a non-event when bond yields rose in 2013 and 2018.
The year-over-year changes in the CPI in 2013 and 2018 were 1.5% and 1.9%,
respectively, according to data from the U.S. Bureau of Labor Statistics. The
CPI has averaged 3.0% per year since 1926. In February 2022, the CPI stood at
7.9%. The last time it was this high was 1982.
The current climate for interest rates, bond yields and inflation, indicates
that this time around could be different than what we experienced in 2013 and
2018. By that I mean that higher levels of all three might be sustainable.
Having said that, I do not believe that investors need to shift into panic mode.
The Fed's guidance is reassuring to us in that, as of now, it intends to raise
short-term interest rates slowly and methodically. While we believe the bond
market may be in for a bumpy ride over the next year or so, higher rates and
yields are not necessarily death knells for the stock market. In general, I
believe that investors should be able to make better decisions about where to
position their money moving forward thanks to the in-depth guidance from the
Fed. It could not be more transparent, in my 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,
/s/ James A. Bowen
James A. Bowen
Chairman of the Board of Trustees
Chief Executive Officer of First Trust Advisors L.P.
Page 2
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FUND PERFORMANCE OVERVIEW (UNAUDITED)
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FT CBOE VEST INTERNATIONAL EQUITY BUFFER ETF - MARCH (YMAR)
The investment objective of the FT Cboe Vest International Equity Buffer ETF -
March (the "Fund") is to seek to provide investors with returns that match the
price return of the iShares MSCI EAFE ETF (the "Underlying ETF"), up to a
predetermined upside cap of 14.18% (before fees and expenses) and 13.29% (after
fees and expenses, excluding brokerage commissions, trading fees, taxes and
extraordinary expenses not included in the Fund's management fee), while
providing a buffer (before fees and expenses) against the first 10% of
Underlying ETF losses, over the period from March 22, 2021 to March 18, 2022
(the "Outcome Period"). Under normal market conditions, the Fund will invest
substantially all of its assets in FLexible EXchange(R) Options ("FLEX Options")
that reference the price performance of the Underlying ETF. Subsequent Outcome
Periods will begin on the day the prior Outcome Period ends and will end on the
approximate one-year anniversary of that new Outcome Period. On the first day of
each new Outcome Period, the Fund resets by investing in a new set of FLEX
Options that will provide a new cap for the new Outcome Period. This means that
the cap will change for each Outcome Period based upon prevailing market
conditions at the beginning of each Outcome Period. The Fund will be perpetually
offered and not terminate after the initial or any subsequent Outcome Period. An
investor that purchases Fund shares other than on the first day of an Outcome
Period and/or sells Fund shares prior to the end of an Outcome Period may
experience results that are very different from the target outcomes sought by
the Fund for that Outcome Period. The Fund is classified as non-diversified
under the Investment Company Act of 1940, as amended. The shares of the Fund are
listed and traded on the Cboe BZX Exchange, Inc., under the ticker symbol
"YMAR."
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PERFORMANCE
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CUMULATIVE
TOTAL RETURNS
6 Months Inception
Ended (3/19/21)
2/28/22 to 2/28/22
FUND PERFORMANCE
NAV -6.24% -1.00%
Market Price -6.06% -0.95%
INDEX PERFORMANCE
MSCI EAFE Index -7.52% -2.35%
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(See Notes to Fund Performance Overview on page 13.)
PERFORMANCE OF A $10,000 INITIAL INVESTMENT
MARCH 19, 2021 - FEBRUARY 28, 2022
FT Cboe Vest International Nasdaq 100
Equity Buffer ETF - March Stock Index
3/19/21 $10,000 $10,000
8/31/21 10,559 10,560
2/28/22 9,900 9,765
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 index does
not actually hold a portfolio of securities and therefore does 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.
Page 3
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FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED)
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FT CBOE VEST NASDAQ-100(R) BUFFER ETF - MARCH (QMAR)
The investment objective of the FT Cboe Vest Nasdaq-100(R) Buffer ETF - March
(the "Fund") is to seek to provide investors with returns that match the price
return of the Invesco QQQ Trust(SM), Series 1 (the "Underlying ETF"), up to a
predetermined upside cap of 15.51% (before fees and expenses) and 14.61% (after
fees and expenses, excluding brokerage commissions, trading fees, taxes and
extraordinary expenses not included in the Fund's management fee), while
providing a buffer (before fees, expenses and taxes) against the first 10% of
Underlying ETF losses, over the period from March 22, 2021 to March 18, 2022
(the "Outcome Period"). Under normal market conditions, the Fund will invest
substantially all of its assets in FLexible EXchange(R) Options ("FLEX Options")
that reference the price performance of the Underlying ETF. Subsequent Outcome
Periods will begin on the day the prior Outcome Period ends and will end on the
approximate one-year anniversary of that new Outcome Period. On the first day of
each new Outcome Period, the Fund resets by investing in a new set of FLEX
Options that will provide a new cap for the new Outcome Period. This means that
the cap will change for each Outcome Period based upon prevailing market
conditions at the beginning of each Outcome Period. The Fund will be perpetually
offered and not terminate after the initial or any subsequent Outcome Period. An
investor that purchases Fund shares other than on the first day of an Outcome
Period and/or sells Fund shares prior to the end of an Outcome Period may
experience results that are very different from the target outcomes sought by
the Fund for that Outcome Period. The Fund is classified as non-diversified
under the Investment Company Act of 1940, as amended. The shares of the Fund are
listed and traded on the Cboe BZX Exchange, Inc., under the ticker symbol
"QMAR."
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PERFORMANCE
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CUMULATIVE
TOTAL RETURNS
6 Months Inception
Ended (3/19/21)
2/28/22 to 2/28/22
FUND PERFORMANCE
NAV -1.17% 9.58%
Market Price -1.13% 9.58%
INDEX PERFORMANCE
Nasdaq 100 Stock Index -8.63% 10.65%
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(See Notes to Fund Performance Overview on page 13.)
PERFORMANCE OF A $10,000 INITIAL INVESTMENT
MARCH 19, 2021 - FEBRUARY 28, 2022
FT Cboe Vest Nasdaq-100(R) Nasdaq 100
Buffer ETF - March Stock Index
3/19/21 $10,000 $10,000
8/31/21 11,088 12,110
2/28/22 10,958 11,065
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 index does
not actually hold a portfolio of securities and therefore does 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.
Page 4
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FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED)
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FT CBOE VEST INTERNATIONAL EQUITY BUFFER ETF - JUNE (YJUN)
The investment objective of the FT Cboe Vest International Equity Buffer ETF -
June (the "Fund") is to seek to provide investors with returns that match the
price return of the iShares MSCI EAFE ETF (the "Underlying ETF"), up to a
predetermined upside cap of 11.81% (before fees and expenses) and 10.91% (after
fees and expenses, excluding brokerage commissions, trading fees, taxes and
extraordinary expenses not included in the Fund's management fee), while
providing a buffer (before fees and expenses) against the first 10% of
Underlying ETF losses, over the period from June 21, 2021 to June 17, 2022 (the
"Outcome Period"). Under normal market conditions, the Fund will invest
substantially all of its assets in FLexible EXchange(R) Options ("FLEX Options")
that reference the price performance of the Underlying ETF. Subsequent Outcome
Periods will begin on the day the prior Outcome Period ends and will end on the
approximate one-year anniversary of that new Outcome Period. On the first day of
each new Outcome Period, the Fund resets by investing in a new set of FLEX
Options that will provide a new cap for the new Outcome Period. This means that
the cap will change for each Outcome Period based upon prevailing market
conditions at the beginning of each Outcome Period. The Fund will be perpetually
offered and not terminate after the initial or any subsequent Outcome Period. An
investor that purchases Fund shares other than on the first day of an Outcome
Period and/or sells Fund shares prior to the end of an Outcome Period may
experience results that are very different from the target outcomes sought by
the Fund for that Outcome Period. The Fund is classified as non-diversified
under the Investment Company Act of 1940, as amended. The shares of the Fund are
listed and traded on the Cboe BZX Exchange, Inc., under the ticker symbol
"YJUN."
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PERFORMANCE
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CUMULATIVE
TOTAL RETURNS
6 Months Inception
Ended (6/18/21)
2/28/22 to 2/28/22
FUND PERFORMANCE
NAV -5.68% -3.36%
Market Price -5.12% -3.36%
INDEX PERFORMANCE
MSCI EAFE Index -7.52% -5.61%
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(See Notes to Fund Performance Overview on page 13.)
PERFORMANCE OF A $10,000 INITIAL INVESTMENT
JUNE 18, 2021 - FEBRUARY 28, 2022
FT Cboe Vest International Nasdaq 100
Equity Buffer ETF - June Stock Index
6/16/21 $10,000 $10,000
8/31/21 10,246 10,207
2/28/22 9,664 9,439
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 index does
not actually hold a portfolio of securities and therefore does 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.
Page 5
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FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED)
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FT CBOE VEST NASDAQ-100(R) BUFFER ETF - JUNE (QJUN)
The investment objective of the FT Cboe Vest Nasdaq-100(R) Buffer ETF - June
(the "Fund") is to seek to provide investors with returns that match the price
return of the Invesco QQQ Trust(SM), Series 1 (the "Underlying ETF"), up to a
predetermined upside cap of 13.00% (before fees and expenses) and 12.10% (after
fees and expenses, excluding brokerage commissions, trading fees, taxes and
extraordinary expenses not included in the Fund's management fee), while
providing a buffer (before fees and expenses) against the first 10% of
Underlying ETF losses, over the period from June 21, 2021 to June 17, 2022 (the
"Outcome Period"). Under normal market conditions, the Fund will invest
substantially all of its assets in FLexible EXchange(R) Options ("FLEX Options")
that reference the price performance of the Underlying ETF. Subsequent Outcome
Periods will begin on the day the prior Outcome Period ends and will end on the
approximate one-year anniversary of that new Outcome Period. On the first day of
each new Outcome Period, the Fund resets by investing in a new set of FLEX
Options that will provide a new cap for the new Outcome Period. This means that
the cap will change for each Outcome Period based upon prevailing market
conditions at the beginning of each Outcome Period. The Fund will be perpetually
offered and not terminate after the initial or any subsequent Outcome Period. An
investor that purchases Fund shares other than on the first day of an Outcome
Period and/or sells Fund shares prior to the end of an Outcome Period may
experience results that are very different from the target outcomes sought by
the Fund for that Outcome Period. The Fund is classified as non-diversified
under the Investment Company Act of 1940, as amended. The shares of the Fund are
listed and traded on the Cboe BZX Exchange, Inc., under the ticker symbol
"QJUN."
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PERFORMANCE
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CUMULATIVE
TOTAL RETURNS
6 Months Inception
Ended (6/18/21)
2/28/22 to 2/28/22
FUND PERFORMANCE
NAV -3.20% 2.11%
Market Price -3.01% 2.21%
INDEX PERFORMANCE
Nasdaq 100 Stock Index -8.63% 1.34%
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(See Notes to Fund Performance Overview on page 13.)
PERFORMANCE OF A $10,000 INITIAL INVESTMENT
JUNE 18, 2021 - FEBRUARY 28, 2022
FT Cboe Vest Growth-100(R) Nasdaq 100
Buffer ETF - June Stock Index
6/18/21 $10,000 $10,000
8/31/21 10,549 11,091
2/28/22 10,211 10,134
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 index does
not actually hold a portfolio of securities and therefore does 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.
Page 6
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FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED)
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FT CBOE VEST U.S. EQUITY ENHANCE & MODERATE BUFFER ETF - JUNE (XJUN)
The investment objective of the FT Cboe Vest U.S. Equity Enhance & Moderate
Buffer ETF - June (the "Fund") is to seek to provide investors with returns of
approximately twice any positive price return of the SPDR(R) S&P 500(R) ETF
Trust (the "Underlying ETF"), up to a predetermined upside cap of 6.16% (before
fees and expenses) and 5.37% (after fees and expenses, excluding brokerage
commissions, trading fees, taxes and extraordinary expenses not included in the
Fund's management fee), while providing a buffer (before fees and expenses)
against the first 15% of Underlying ETF losses, over the period from July 13,
2021 to June 17, 2022 (the "Outcome Period"). Under normal market conditions,
the Fund will invest substantially all of its assets in FLexible EXchange(R)
Options ("FLEX Options") that reference the price performance of the Underlying
ETF. Subsequent Outcome Periods will begin on the day the prior Outcome Period
ends and will end on the approximate one-year anniversary of that new Outcome
Period. On the first day of each new Outcome Period, the Fund resets by
investing in a new set of FLEX Options that will provide a new cap for the new
Outcome Period. This means that the cap will change for each Outcome Period
based upon prevailing market conditions at the beginning of each Outcome Period.
The Fund will be perpetually offered and not terminate after the initial or any
subsequent Outcome Period. An investor that purchases Fund shares other than on
the first day of an Outcome Period and/or sells Fund shares prior to the end of
an Outcome Period may experience results that are very different from the target
outcomes sought by the Fund for that Outcome Period. The Fund is classified as
non-diversified under the Investment Company Act of 1940, as amended. The shares
of the Fund are listed and traded on the Cboe BZX Exchange, Inc., under the
ticker symbol "XJUN."
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PERFORMANCE
---------------------------------------------------------------------------------------------------------------------
CUMULATIVE
TOTAL RETURNS
6 Months Inception
Ended (7/12/21)
2/28/22 to 2/28/22
FUND PERFORMANCE
NAV -0.33% 0.98%
Market Price 0.00% 1.08%
INDEX PERFORMANCE
S&P 500(R) Index - Price Return -3.29% -0.24%
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(See Notes to Fund Performance Overview on page 13.)
PERFORMANCE OF A $10,000 INITIAL INVESTMENT
JULY 12, 2021 - FEBRUARY 28, 2022
FT Cboe Vest U.S. Equity
Enhance & Moderate Buffer S&P 500(R) Index -
ETF - June Price Return
7/12/21 $10,000 $10,000
8/31/21 10,131 10,315
2/28/22 10,098 9,976
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 index does
not actually hold a portfolio of securities and therefore does 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.
Page 7
--------------------------------------------------------------------------------
FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------
FT CBOE VEST INTERNATIONAL EQUITY BUFFER ETF - SEPTEMBER (YSEP)
The investment objective of the FT Cboe Vest International Equity Buffer ETF -
September (the "Fund") is to seek to provide investors with returns that match
the price return of the iShares MSCI EAFE ETF (the "Underlying ETF"), up to a
predetermined upside cap of 12.93% (before fees, expenses and taxes) and 12.03%
(after fees and expenses, excluding brokerage commissions, trading fees, taxes
and extraordinary expenses not included in the Fund's management fee), while
providing a buffer against the first 10% (before fees, expenses and taxes) of
Underlying ETF losses, over the period from September 20, 2021 through September
16, 2022 (the "Outcome Period"). Under normal market conditions, the Fund will
invest substantially all of its assets in FLexible Exchange(R) Options ("FLEX
Options") that reference the price performance of the Underlying ETF. Subsequent
Outcome Periods will begin on the day the prior Outcome Period ends and will end
on the approximate on-year anniversary of that new Outcome Period. On the first
day of each new Outcome Period, the Fund resets by investing in a new set of
FLEX Options that will provide a new cap for the new Outcome Period. This means
that the cap will change for each Outcome Period based upon prevailing market
conditions at the beginning of each Outcome Period. An investor that purchases
Fund shares other than on the first day of an Outcome Period and/or sells Fund
shares prior to the end of an Outcome Period may experience result that are very
different from the target outcomes sought by the Fund for that Outcome Period.
The Fund is classified as non-diversified under the Investment Company Act of
1940, as amended. The shares of the Fund are listed and traded on the Cboe BZX
Exchange, Inc., under the ticker symbol "YSEP."
---------------------------------------------------------------------------------------------------------------------
PERFORMANCE
---------------------------------------------------------------------------------------------------------------------
CUMULATIVE
TOTAL RETURNS
Inception
(9/17/21)
to 2/28/22
FUND PERFORMANCE
NAV -4.91%
Market Price -4.86%
INDEX PERFORMANCE
MSCI EAFE Index -7.21%
---------------------------------------------------------------------------------------------------------------------
(See Notes to Fund Performance Overview on page 13.)
PERFORMANCE OF A $10,000 INITIAL INVESTMENT
SEPTEMBER 17, 2021 - FEBRUARY 28, 2022
FT Cboe Vest International MSCI EAFE
Equity Buffer ETF - September Index
9/17/21 $10,000 $10,000
2/28/22 9,509 9,279
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 index does
not actually hold a portfolio of securities and therefore does 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.
Page 8
--------------------------------------------------------------------------------
FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------
FT CBOE VEST NASDAQ-100(R) BUFFER ETF - SEPTEMBER (QSPT)
The investment objective of the FT Cboe Vest Nasdaq-100(R) Buffer ETF -
September (the "Fund") is to seek to provide investors with returns that match
the price return of the Invesco QQQ Trust(SM), Series 1 (the "Underlying ETF"),
up to a predetermined upside cap of 13.65% (before fees, expenses and taxes) and
12.75% (after fees and expenses, excluding brokerage commissions, trading fees,
taxes and extraordinary expenses not included in the Fund's management fee),
while providing a buffer against the first 10% (before fees, expenses and taxes)
of Underlying ETF losses, over the period from September 20, 2021 through
September 16, 2022 (the "Outcome Period"). Under normal market conditions, the
Fund will invest substantially all of its assets in FLexible Exchange(R) Options
("FLEX Options") that reference the price performance of the Underlying ETF.
Subsequent Outcome Periods will begin on the day the prior Outcome Period ends
and will end on the approximate on-year anniversary of that new Outcome Period.
On the first day of each new Outcome Period, the Fund resets by investing in a
new set of FLEX Options that will provide a new cap for the new Outcome Period.
This means that the cap will change for each Outcome Period based upon
prevailing market conditions at the beginning of each Outcome Period. An
investor that purchases Fund shares other than on the first day of an Outcome
Period and/or sells Fund shares prior to the end of an Outcome Period may
experience result that are very different from the target outcomes sought by the
Fund for that Outcome Period. The Fund is classified as non-diversified under
the Investment Company Act of 1940, as amended. The shares of the Fund are
listed and traded on the Cboe BZX Exchange, Inc., under the ticker symbol
"QSPT."
---------------------------------------------------------------------------------------------------------------------
PERFORMANCE
---------------------------------------------------------------------------------------------------------------------
CUMULATIVE
TOTAL RETURNS
Inception
(9/17/21)
to 2/28/22
FUND PERFORMANCE
NAV -3.52%
Market Price -3.91%
INDEX PERFORMANCE
Nasdaq 100 Stock Index -7.15%
---------------------------------------------------------------------------------------------------------------------
(See Notes to Fund Performance Overview on page 13.)
PERFORMANCE OF A $10,000 INITIAL INVESTMENT
SEPTEMBER 17, 2021 - FEBRUARY 28, 2022
FT Cboe Vest Nasdaq-100(R) Nasdaq 100
Buffer ETF - September Stock Index
9/17/21 $10,000 $10,000
2/28/22 9,648 9,285
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 index does
not actually hold a portfolio of securities and therefore does 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.
Page 9
--------------------------------------------------------------------------------
FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------
FT CBOE VEST INTERNATIONAL EQUITY BUFFER ETF - DECEMBER (YDEC)
The investment objective of the FT Cboe Vest International Equity Buffer ETF -
December (the "Fund") is to seek to provide investors with returns that match
the price return of the iShares MSCI EAFE ETF (the "Underlying ETF"), up to a
predetermined upside cap of 10.75% (before fees and expenses) and 9.85% (after
fees and expenses, excluding brokerage commissions, trading fees, taxes and
extraordinary expenses not included in the Fund's management fee), while
providing a buffer (before fees and expenses) against the first 10% of
Underlying ETF losses, over the period from December 20, 2021 to December 16,
2022 (the "Outcome Period")*. Under normal market conditions, the Fund will
invest substantially all of its assets in FLexible EXchange(R) Options ("FLEX
Options") that reference the price performance of the Underlying ETF. Subsequent
Outcome Periods will begin on the day the prior Outcome Period ends and will end
on the approximate one-year anniversary of that new Outcome Period. On the first
day of each new Outcome Period, the Fund resets by investing in a new set of
FLEX Options that will provide a new cap for the new Outcome Period. This means
that the cap will change for each Outcome Period based upon prevailing market
conditions at the beginning of each Outcome Period. The Fund will be perpetually
offered and not terminate after the initial or any subsequent Outcome Period. An
investor that purchases Fund shares other than on the first day of an Outcome
Period and/or sells Fund shares prior to the end of an Outcome Period may
experience results that are very different from the target outcomes sought by
the Fund for that Outcome Period. The Fund is classified as non-diversified
under the Investment Company Act of 1940, as amended. The shares of the Fund are
listed and traded on the Cboe BZX Exchange, Inc., under the ticker symbol
"YDEC."
---------------------------------------------------------------------------------------------------------------------
PERFORMANCE
---------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL CUMULATIVE
TOTAL RETURNS TOTAL RETURNS
6 Months 1 Year Inception Inception
Ended Ended (12/18/20) (12/18/20)
2/28/22 2/28/22 to 2/28/22 to 8/31/21
FUND PERFORMANCE
NAV -6.96% -0.49% 1.12% 1.35%
Market Price -6.87% -0.25% 1.08% 1.30%
INDEX PERFORMANCE
MSCI EAFE Index -7.52% 0.47% 1.86% 2.23%
---------------------------------------------------------------------------------------------------------------------
(See Notes to Fund Performance Overview on page 13.)
PERFORMANCE OF A $10,000 INITIAL INVESTMENT
DECEMBER 18, 2020 - FEBRUARY 28, 2022
FT Cboe Vest International Nasdaq 100
Equity Buffer ETF - December Stock Index
12/18/20 $10,000 $10,000
2/28/21 10,184 10,175
8/31/21 10,892 11,055
2/28/22 10,135 10,223
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 index does
not actually hold a portfolio of securities and therefore does 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.
-----------------------------
* Prior to December 20, 2021, the Fund's investment objective included an
upside cap of 13.79% (before fees, expenses and taxes) and 12.89% (after
fees and expenses, excluding brokerage commissions, trading fees, taxes
and extraordinary expenses not included in the Fund's management fee) and
an Outcome Period of December 21, 2020 to December 17, 2021.
Page 10
--------------------------------------------------------------------------------
FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------
FT CBOE VEST NASDAQ-100(R) BUFFER ETF - DECEMBER (QDEC)
The investment objective of the FT Cboe Vest Nasdaq-100(R) Buffer ETF - December
(the "Fund") is to seek to provide investors with returns that match the price
return of the Invesco QQQ Trust(SM), Series 1 (the "Underlying ETF"), up to a
predetermined upside cap of 15.89% (before fees and expenses) and 14.99% (after
fees and expenses, excluding brokerage commissions, trading fees, taxes and
extraordinary expenses not included in the Fund's management fee), while
providing a buffer (before fees and expenses) against the first 10% of
Underlying ETF losses, over the period from December 20, 2021 to December 16,
2022 (the "Outcome Period")*. Under normal market conditions, the Fund will
invest substantially all of its assets in FLexible EXchange(R) Options ("FLEX
Options") that reference the price performance of the Underlying ETF. Subsequent
Outcome Periods will begin on the day the prior Outcome Period ends and will end
on the approximate one-year anniversary of that new Outcome Period. On the first
day of each new Outcome Period, the Fund resets by investing in a new set of
FLEX Options that will provide a new cap for the new Outcome Period. This means
that the cap will change for each Outcome Period based upon prevailing market
conditions at the beginning of each Outcome Period. The Fund will be perpetually
offered and not terminate after the initial or any subsequent Outcome Period. An
investor that purchases Fund shares other than on the first day of an Outcome
Period and/or sells Fund shares prior to the end of an Outcome Period may
experience results that are very different from the target outcomes sought by
the Fund for that Outcome Period. The Fund is classified as non-diversified
under the Investment Company Act of 1940, as amended. The shares of the Fund are
listed and traded on the Cboe BZX Exchange, Inc., under the ticker symbol
"QDEC."
---------------------------------------------------------------------------------------------------------------------
PERFORMANCE
---------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL CUMULATIVE
TOTAL RETURNS TOTAL RETURNS
6 Months 1 Year Inception Inception
Ended Ended (12/18/20) (12/18/20)
2/28/22 2/28/22 to 2/28/22 to 8/31/21
FUND PERFORMANCE
NAV -3.46% 8.57% 8.10% 9.78%
Market Price -3.77% 8.35% 7.65% 9.22%
INDEX PERFORMANCE
Nasdaq 100 Stock Index -8.63% 10.29% 9.74% 11.77%
---------------------------------------------------------------------------------------------------------------------
(See Notes to Fund Performance Overview on page 13.)
PERFORMANCE OF A $10,000 INITIAL INVESTMENT
DECEMBER 18, 2020 - FEBRUARY 28, 2022
FT Cboe Vest Nasdaq-100(R) Nasdaq 100
Buffer ETF - December Stock Index
12/18/20 $10,000 $10,000
2/28/21 10,111 10,134
8/31/21 11,371 12,233
2/28/22 10,978 11,177
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 index does
not actually hold a portfolio of securities and therefore does 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.
-----------------------------
* Prior to December 20, 2021, the Fund's investment objective included an
upside cap of 17.04% (before fees, expenses and taxes) and 16.14% (after
fees and expenses, excluding brokerage commissions, trading fees, taxes
and extraordinary expenses not included in the Fund's management fee) and
an Outcome Period of December 21, 2020 to December 17, 2021.
Page 11
--------------------------------------------------------------------------------
FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------
FT CBOE VEST U.S. EQUITY ENHANCE & MODERATE BUFFER ETF - DECEMBER (XDEC)
The investment objective of the FT Cboe Vest U.S. Equity Enhance & Moderate
Buffer ETF - December (the "Fund") is to seek to provide investors with returns
of approximately twice any positive price return of the SPDR(R) S&P 500(R) ETF
Trust (the "Underlying ETF"), up to a predetermined upside cap of 8.58% (before
fees, expenses and taxes) and 7.73% (after fees and expenses, excluding
brokerage commissions, trading fees, taxes and extraordinary expenses not
included in the Fund's management fee), while providing a buffer against the
first 15% (before fees, expenses and taxes) of Underlying ETF losses, over the
period from December 20, 2021 through December 16, 2022 (the "Outcome Period").
Under normal market conditions, the Fund will invest substantially all of its
assets in FLexible Exchange(R) Options ("FLEX Options") that reference the price
performance of the Underlying ETF. Subsequent Outcome Periods will begin on the
day the prior Outcome Period ends and will end on the approximate on-year
anniversary of that new Outcome Period. On the first day of each new Outcome
Period, the Fund resets by investing in a new set of FLEX Options that will
provide a new cap for the new Outcome Period. This means that the cap will
change for each Outcome Period based upon prevailing market conditions at the
beginning of each Outcome Period. An investor that purchases Fund shares other
than on the first day of an Outcome Period and/or sells Fund shares prior to the
end of an Outcome Period may experience result that are very different from the
target outcomes sought by the Fund for that Outcome Period. The Fund is
classified as non-diversified under the Investment Company Act of 1940, as
amended. The shares of the Fund are listed and traded on the Cboe BZX Exchange,
Inc., under the ticker symbol "XDEC."
---------------------------------------------------------------------------------------------------------------------
PERFORMANCE
---------------------------------------------------------------------------------------------------------------------
CUMULATIVE
TOTAL RETURNS
Inception
(12/17/21)
to 2/28/22
FUND PERFORMANCE
NAV -1.61%
Market Price -1.78%
INDEX PERFORMANCE
S&P 500(R) Index - Price Return -5.34%
---------------------------------------------------------------------------------------------------------------------
(See Notes to Fund Performance Overview on page 13.)
PERFORMANCE OF A $10,000 INITIAL INVESTMENT
DECEMBER 17, 2021 - FEBRUARY 28, 2022
FT Cboe Vest U.S. Equity
Enhance & Moderate Buffer S&P 500(R) Index -
ETF - December Price Return
12/17/21 $10,000 $10,000
2/28/22 9,839 9,466
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 index does
not actually hold a portfolio of securities and therefore does 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.
Page 12
--------------------------------------------------------------------------------
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 SEC 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. Since shares of each
Fund did not trade in the secondary market until after the Fund's 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.
Page 13
--------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT
--------------------------------------------------------------------------------
FIRST TRUST EXCHANGE-TRADED FUND VIII
SEMI-ANNUAL REPORT
FEBRUARY 28, 2022 (UNAUDITED)
ADVISOR
First Trust Advisors L.P. ("First Trust" or the "Advisor") is the investment
advisor to FT Cboe Vest International Equity Buffer ETF - March ("YMAR"), FT
Cboe Vest Nasdaq-100(R) Buffer ETF - March ("QMAR"), FT Cboe Vest International
Equity Buffer ETF - June ("YJUN"), FT Cboe Vest Nasdaq-100(R) Buffer ETF - June
("QJUN"), FT Cboe Vest U.S. Equity Enhance & Moderate Buffer ETF - June
("XJUN"), FT Cboe Vest International Equity Buffer ETF - September ("YSEP"), FT
Cboe Vest Nasdaq-100(R) Buffer ETF - September ("QSPT"), FT Cboe Vest
International Equity Buffer ETF - December ("YDEC"), FT Cboe Vest Nasdaq-100(R)
Buffer ETF - December ("QDEC"), and FT Cboe Vest U.S. Equity Enhance & Moderate
Buffer ETF - December ("XDEC") (each a "Fund" and collectively, the "Funds").
First Trust is responsible for the ongoing monitoring of each Fund's investment
portfolio, managing each Fund's business affairs and providing certain
administrative services necessary for the management of each Fund.
SUB-ADVISOR
Cboe Vest(SM) Financial LLC ("Cboe Vest" or the "Sub-Advisor") serves as the
investment sub-advisor to the Funds. In this capacity, Cboe Vest is responsible
for the selection and ongoing monitoring of the securities in each Fund's
investment portfolio. Cboe Vest, with principal offices at 1765 Greensboro
Station Pl, 9th Floor, McLean, Virginia 22102, was founded in 2012. Cboe Vest
had approximately $6.0 billion under management or committed to management as of
February 28, 2022.
PORTFOLIO MANAGEMENT TEAM
KARAN SOOD, MANAGING DIRECTOR OF CBOE VEST
HOWARD RUBIN, MANAGING DIRECTOR OF CBOE VEST
Page 14
This page intentionally left blank.
FIRST TRUST EXCHANGE-TRADED FUND VIII
UNDERSTANDING YOUR FUND EXPENSES
FEBRUARY 28, 2022 (UNAUDITED)
As a shareholder of FT Cboe Vest International Equity Buffer ETF - March, FT
Cboe Vest Nasdaq-100(R) Buffer ETF - March, FT Cboe Vest International Equity
Buffer ETF - June, FT Cboe Vest Nasdaq-100(R) Buffer ETF - June, FT Cboe Vest
U.S. Equity Enhance & Moderate Buffer ETF - June, FT Cboe Vest International
Equity Buffer ETF - September, FT Cboe Vest Nasdaq-100(R) Buffer ETF -
September, FT Cboe Vest International Equity Buffer ETF - December, FT Cboe Vest
Nasdaq-100(R) Buffer ETF - December or FT Cboe Vest U.S. Equity Enhance &
Moderate Buffer ETF - December (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 (or since inception) and held through the six-month (or shorter) period
ended February 28, 2022.
ACTUAL EXPENSES
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 Period"
to estimate the expenses you paid on your account during this six-month (or
shorter) 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.
---------------------------------------------------------------------------------------------------------------------------------
ANNUALIZED
EXPENSE RATIO EXPENSES PAID
BEGINNING ENDING BASED ON THE DURING THE
ACCOUNT VALUE ACCOUNT VALUE SIX-MONTH SIX-MONTH
SEPTEMBER 1, 2021 FEBRUARY 28, 2022 PERIOD PERIOD (a)
---------------------------------------------------------------------------------------------------------------------------------
FT CBOE VEST INTERNATIONAL EQUITY BUFFER ETF - MARCH (YMAR)
Actual $1,000.00 $ 937.60 0.90% $4.32
Hypothetical (5% return before expenses) $1,000.00 $1,020.33 0.90% $4.51
FT CBOE VEST NASDAQ-100(R) BUFFER ETF - MARCH (QMAR)
Actual $1,000.00 $ 988.30 0.90% $4.44
Hypothetical (5% return before expenses) $1,000.00 $1,020.33 0.90% $4.51
FT CBOE VEST INTERNATIONAL EQUITY BUFFER ETF - JUNE (YJUN)
Actual $1,000.00 $ 943.20 0.90% $4.34
Hypothetical (5% return before expenses) $1,000.00 $1,020.33 0.90% $4.51
FT CBOE VEST NASDAQ-100(R) BUFFER ETF - JUNE (QJUN)
Actual $1,000.00 $ 968.00 0.90% $4.39
Hypothetical (5% return before expenses) $1,000.00 $1,020.33 0.90% $4.51
FT CBOE VEST U.S. EQUITY ENHANCE & MODERATE BUFFER ETF - JUNE (XJUN)
Actual $1,000.00 $ 996.70 0.85% $4.21
Hypothetical (5% return before expenses) $1,000.00 $1,020.58 0.85% $4.26
Page 16
FIRST TRUST EXCHANGE-TRADED FUND VIII
UNDERSTANDING YOUR FUND EXPENSES (CONTINUED)
FEBRUARY 28, 2022 (UNAUDITED)
---------------------------------------------------------------------------------------------------------------------------------
ANNUALIZED
EXPENSE RATIO EXPENSES PAID
BEGINNING ENDING BASED ON THE DURING THE
ACCOUNT VALUE ACCOUNT VALUE SIX-MONTH SIX-MONTH
SEPTEMBER 1, 2021 FEBRUARY 28, 2022 PERIOD PERIOD (a)
---------------------------------------------------------------------------------------------------------------------------------
FT CBOE VEST INTERNATIONAL EQUITY BUFFER ETF - DECEMBER (YDEC)
Actual $1,000.00 $ 930.40 0.90% $4.31
Hypothetical (5% return before expenses) $1,000.00 $1,020.33 0.90% $4.51
FT CBOE VEST NASDAQ-100(R) BUFFER ETF - DECEMBER (QDEC)
Actual $1,000.00 $ 965.40 0.90% $4.39
Hypothetical (5% return before expenses) $1,000.00 $1,020.33 0.90% $4.51
---------------------------------------------------------------------------------------------------------------------------------
ANNUALIZED EXPENSES PAID
EXPENSE RATIO DURING THE PERIOD
BEGINNING ENDING BASED ON THE SEPTEMBER 17, 2021 (b)
ACCOUNT VALUE ACCOUNT VALUE NUMBER OF DAYS TO
SEPTEMBER 17, 2021 (b) FEBRUARY 28, 2022 IN THE PERIOD FEBRUARY 28, 2022 (c)
---------------------------------------------------------------------------------------------------------------------------------
FT CBOE VEST INTERNATIONAL EQUITY BUFFER ETF - SEPTEMBER (YSEP)
Actual $1,000.00 $ 950.90 0.90% $3.97
Hypothetical (5% return before expenses) $1,000.00 $1,020.33 0.90% $4.51
FT CBOE VEST NASDAQ-100(R) BUFFER ETF - SEPTEMBER (QSPT)
Actual $1,000.00 $ 964.80 0.90% $4.00
Hypothetical (5% return before expenses) $1,000.00 $1,020.33 0.90% $4.51
---------------------------------------------------------------------------------------------------------------------------------
ANNUALIZED EXPENSES PAID
EXPENSE RATIO DURING THE PERIOD
BEGINNING ENDING BASED ON THE DECEMBER 17, 2021 (b)
ACCOUNT VALUE ACCOUNT VALUE NUMBER OF DAYS TO
DECEMBER 17, 2021 (b) FEBRUARY 28, 2022 IN THE PERIOD FEBRUARY 28, 2022 (d)
---------------------------------------------------------------------------------------------------------------------------------
FT CBOE VEST U.S. EQUITY ENHANCE & MODERATE BUFFER ETF - DECEMBER (XDEC)
Actual $1,000.00 $ 983.90 0.85% $1.71
Hypothetical (5% return before expenses) $1,000.00 $1,020.58 0.85% $4.26
(a) Expenses are equal to the annualized expense ratio as indicated in the
table multiplied by the average account value over the period (September
1, 2021 through February 28, 2022), multiplied by 181/365 (to reflect the
six-month period).
(b) Inception date.
(c) Actual expenses are equal to the annualized expense ratio as indicated in
the table multiplied by the average account value over the period
(September 17, 2021 through February 28, 2022), multiplied by 165/365.
Hypothetical expenses are assumed for the most recent six-month period.
(d) Actual expenses are equal to the annualized expense ratio as indicated in
the table multiplied by the average account value over the period
(December 17, 2021 through February 28, 2022), multiplied by 74/365.
Hypothetical expenses are assumed for the most recent six-month period.
Page 17
FT CBOE VEST INTERNATIONAL EQUITY BUFFER ETF - MARCH (YMAR)
PORTFOLIO OF INVESTMENTS
FEBRUARY 28, 2022 (UNAUDITED)
SHARES DESCRIPTION VALUE
-------------- ----------------------------------------------------------------------------------------------- --------------
MONEY MARKET FUNDS -- 0.5%
72,708 Dreyfus Government Cash Management Fund, Institutional Shares - 0.03% (a)...................... $ 72,708
(Cost $72,708) --------------
TOTAL INVESTMENTS -- 0.5%...................................................................... 72,708
(Cost $72,708) --------------
NUMBER OF NOTIONAL EXERCISE EXPIRATION
CONTRACTS DESCRIPTION AMOUNT PRICE DATE VALUE
-------------- --------------------------------------------------- ------------- ----------- ----------- --------------
PURCHASED OPTIONS -- 100.6%
CALL OPTIONS PURCHASED -- 95.8%
2,096 iShares MSCI EAFE ETF.............................. $ 15,346,912 $ 0.76 03/18/22 15,189,386
(Cost $16,058,676) --------------
PUT OPTIONS PURCHASED -- 4.8%
2,096 iShares MSCI EAFE ETF.............................. 15,346,912 76.43 03/18/22 759,151
(Cost $713,338) --------------
TOTAL PURCHASED OPTIONS........................................................................ 15,948,537
(Cost $16,772,014) --------------
WRITTEN OPTIONS -- (1.0)%
CALL OPTIONS WRITTEN -- (0.0)%
(2,096) iShares MSCI EAFE ETF.............................. (15,346,912) 87.27 03/18/22 (1,770)
(Premiums received $126,357) --------------
PUT OPTIONS WRITTEN -- (1.0)%
(2,096) iShares MSCI EAFE ETF.............................. (15,346,912) 68.79 03/18/22 (152,182)
(Premiums received $315,207) --------------
TOTAL WRITTEN OPTIONS.......................................................................... (153,952)
(Premiums received $441,564) --------------
NET OTHER ASSETS AND LIABILITIES -- (0.1)%..................................................... (10,031)
--------------
NET ASSETS -- 100.0%........................................................................... $ 15,857,262
==============
(a) Rate shown reflects yield as of February 28, 2022.
Page 18 See Notes to Financial Statements
FT CBOE VEST INTERNATIONAL EQUITY BUFFER ETF - MARCH (YMAR)
PORTFOLIO OF INVESTMENTS (CONTINUED)
FEBRUARY 28, 2022 (UNAUDITED)
-----------------------------
VALUATION INPUTS
A summary of the inputs used to value the Fund's investments as of February 28,
2022 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial
Statements):
ASSETS TABLE
LEVEL 2 LEVEL 3
TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT
VALUE AT QUOTED OBSERVABLE UNOBSERVABLE
2/28/2022 PRICES INPUTS INPUTS
-------------- -------------- -------------- --------------
Money Market Funds................................... $ 72,708 $ 72,708 $ -- $ --
Call Options Purchased............................... 15,189,386 -- 15,189,386 --
Put Options Purchased................................ 759,151 -- 759,151 --
-------------- -------------- -------------- --------------
Total................................................ $ 16,021,245 $ 72,708 $ 15,948,537 $ --
============== ============== ============== ==============
LIABILITIES TABLE
LEVEL 2 LEVEL 3
TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT
VALUE AT QUOTED OBSERVABLE UNOBSERVABLE
2/28/2022 PRICES INPUTS INPUTS
-------------- -------------- -------------- --------------
Call Options Written................................. $ (1,770) $ -- $ (1,770) $ --
Put Options Written.................................. (152,182) -- (152,182) --
-------------- -------------- -------------- --------------
Total................................................ $ (153,952) $ -- $ (153,952) $ --
============== ============== ============== ==============
See Notes to Financial Statements Page 19
FT CBOE VEST NASDAQ-100(R) BUFFER ETF - MARCH (QMAR)
PORTFOLIO OF INVESTMENTS
FEBRUARY 28, 2022 (UNAUDITED)
SHARES DESCRIPTION VALUE
-------------- ----------------------------------------------------------------------------------------------- --------------
MONEY MARKET FUNDS -- 0.3%
44,034 Dreyfus Government Cash Management Fund, Institutional Shares - 0.03% (a)...................... $ 44,034
(Cost $44,034) --------------
TOTAL INVESTMENTS -- 0.3%...................................................................... 44,034
(Cost $44,034) --------------
NUMBER OF NOTIONAL EXERCISE EXPIRATION
CONTRACTS DESCRIPTION AMOUNT PRICE DATE VALUE
-------------- --------------------------------------------------- ------------- ----------- ----------- --------------
PURCHASED OPTIONS -- 100.7%
CALL OPTIONS PURCHASED -- 100.2%
448 Invesco QQQ Trust(SM), Series 1.................... $ 15,536,640 $ 3.13 03/18/22 15,397,633
(Cost $14,435,726) --------------
PUT OPTIONS PURCHASED -- 0.5%
448 Invesco QQQ Trust(SM), Series 1.................... 15,536,640 313.14 03/18/22 77,932
(Cost $1,138,532) --------------
TOTAL PURCHASED OPTIONS........................................................................ 15,475,565
(Cost $15,574,258) --------------
WRITTEN OPTIONS -- (0.9)%
CALL OPTIONS WRITTEN -- (0.8)%
(448) Invesco QQQ Trust(SM), Series 1.................... (15,536,640) 361.71 03/18/22 (121,436)
(Premiums received $645,266) --------------
PUT OPTIONS WRITTEN -- (0.1)%
(448) Invesco QQQ Trust(SM), Series 1.................... (15,536,640) 281.83 03/18/22 (18,435)
(Premiums received $692,770) --------------
TOTAL WRITTEN OPTIONS.......................................................................... (139,871)
(Premiums received $1,338,036) --------------
NET OTHER ASSETS AND LIABILITIES -- (0.1)%..................................................... (10,618)
--------------
NET ASSETS -- 100.0%........................................................................... $ 15,369,110
==============
(a) Rate shown reflects yield as of February 28, 2022.
Page 20 See Notes to Financial Statements
FT CBOE VEST NASDAQ-100(R) BUFFER ETF - MARCH (QMAR)
PORTFOLIO OF INVESTMENTS (CONTINUED)
FEBRUARY 28, 2022 (UNAUDITED)
-----------------------------
VALUATION INPUTS
A summary of the inputs used to value the Fund's investments as of February 28,
2022 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial
Statements):
ASSETS TABLE
LEVEL 2 LEVEL 3
TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT
VALUE AT QUOTED OBSERVABLE UNOBSERVABLE
2/28/2022 PRICES INPUTS INPUTS
-------------- -------------- -------------- --------------
Money Market Funds................................... $ 44,034 $ 44,034 $ -- $ --
Call Options Purchased............................... 15,397,633 -- 15,397,633 --
Put Options Purchased................................ 77,932 -- 77,932 --
-------------- -------------- -------------- --------------
Total................................................ $ 15,519,599 $ 44,034 $ 15,475,565 $ --
============== ============== ============== ==============
LIABILITIES TABLE
LEVEL 2 LEVEL 3
TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT
VALUE AT QUOTED OBSERVABLE UNOBSERVABLE
2/28/2022 PRICES INPUTS INPUTS
-------------- -------------- -------------- --------------
Call Options Written................................. $ (121,436) $ -- $ (121,436) $ --
Put Options Written.................................. (18,435) -- (18,435) --
-------------- -------------- -------------- --------------
Total................................................ $ (139,871) $ -- $ (139,871) $ --
============== ============== ============== ==============
See Notes to Financial Statements Page 21
FT CBOE VEST INTERNATIONAL EQUITY BUFFER ETF - JUNE (YJUN)
PORTFOLIO OF INVESTMENTS
FEBRUARY 28, 2022 (UNAUDITED)
SHARES DESCRIPTION VALUE
-------------- ----------------------------------------------------------------------------------------------- --------------
MONEY MARKET FUNDS -- 0.7%
100,777 Dreyfus Government Cash Management Fund, Institutional Shares - 0.03% (a)...................... $ 100,777
(Cost $100,777) --------------
TOTAL INVESTMENTS -- 0.7%...................................................................... 100,777
(Cost $100,777) --------------
NUMBER OF NOTIONAL EXERCISE EXPIRATION
CONTRACTS DESCRIPTION AMOUNT PRICE DATE VALUE
-------------- --------------------------------------------------- ------------- ----------- ----------- --------------
PURCHASED OPTIONS -- 103.2%
CALL OPTIONS PURCHASED -- 94.0%
1,905 iShares MSCI EAFE ETF.............................. $ 13,948,410 $ 0.79 06/17/22 13,588,952
(Cost $14,511,299) --------------
PUT OPTIONS PURCHASED -- 9.2%
1,905 iShares MSCI EAFE ETF.............................. 13,948,410 78.52 06/17/22 1,333,745
(Cost $1,044,485) --------------
TOTAL PURCHASED OPTIONS........................................................................ 14,922,697
(Cost $15,555,784) --------------
WRITTEN OPTIONS -- (3.8)%
CALL OPTIONS WRITTEN -- (0.1)%
(1,905) iShares MSCI EAFE ETF.............................. (13,948,410) 87.79 06/17/22 (9,613)
(Premiums received $142,081) --------------
PUT OPTIONS WRITTEN -- (3.7)%
(1,905) iShares MSCI EAFE ETF.............................. (13,948,410) 70.67 06/17/22 (543,927)
(Premiums received $501,564) --------------
TOTAL WRITTEN OPTIONS.......................................................................... (553,540)
(Premiums received $643,645) --------------
NET OTHER ASSETS AND LIABILITIES -- (0.1)%..................................................... (9,495)
--------------
NET ASSETS -- 100.0%........................................................................... $ 14,460,439
==============
(a) Rate shown reflects yield as of February 28, 2022.
Page 22 See Notes to Financial Statements
FT CBOE VEST INTERNATIONAL EQUITY BUFFER ETF - JUNE (YJUN)
PORTFOLIO OF INVESTMENTS (CONTINUED)
FEBRUARY 28, 2022 (UNAUDITED)
-----------------------------
VALUATION INPUTS
A summary of the inputs used to value the Fund's investments as of February 28,
2022 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial
Statements):
ASSETS TABLE
LEVEL 2 LEVEL 3
TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT
VALUE AT QUOTED OBSERVABLE UNOBSERVABLE
2/28/2022 PRICES INPUTS INPUTS
-------------- -------------- -------------- --------------
Money Market Funds................................... $ 100,777 $ 100,777 $ -- $ --
Call Options Purchased............................... 13,588,952 -- 13,588,952 --
Put Options Purchased................................ 1,333,745 -- 1,333,745 --
-------------- -------------- -------------- --------------
Total................................................ $ 15,023,474 $ 100,777 $ 14,922,697 $ --
============== ============== ============== ==============
LIABILITIES TABLE
LEVEL 2 LEVEL 3
TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT
VALUE AT QUOTED OBSERVABLE UNOBSERVABLE
2/28/2022 PRICES INPUTS INPUTS
-------------- -------------- -------------- --------------
Call Options Written................................. $ (9,613) $ -- $ (9,613) $ --
Put Options Written.................................. (543,927) -- (543,927) --
-------------- -------------- -------------- --------------
Total................................................ $ (553,540) $ -- $ (553,540) $ --
============== ============== ============== ==============
See Notes to Financial Statements Page 23
FT CBOE VEST NASDAQ-100(R) BUFFER ETF - JUNE (QJUN)
PORTFOLIO OF INVESTMENTS
FEBRUARY 28, 2022 (UNAUDITED)
SHARES DESCRIPTION VALUE
-------------- ----------------------------------------------------------------------------------------------- --------------
MONEY MARKET FUNDS -- 0.5%
120,255 Dreyfus Government Cash Management Fund, Institutional Shares - 0.03% (a)...................... $ 120,255
(Cost $120,255) --------------
TOTAL INVESTMENTS -- 0.5%...................................................................... 120,255
(Cost $120,255) --------------
NUMBER OF NOTIONAL EXERCISE EXPIRATION
CONTRACTS DESCRIPTION AMOUNT PRICE DATE VALUE
-------------- --------------------------------------------------- ------------- ----------- ----------- --------------
PURCHASED OPTIONS -- 103.5%
CALL OPTIONS PURCHASED -- 98.1%
667 Invesco QQQ Trust(SM), Series 1.................... $ 23,131,560 $ 3.43 06/17/22 22,889,723
(Cost $23,190,508) --------------
PUT OPTIONS PURCHASED -- 5.4%
667 Invesco QQQ Trust(SM), Series 1.................... 23,131,560 342.63 06/17/22 1,248,373
(Cost $1,703,708) --------------
TOTAL PURCHASED OPTIONS........................................................................ 24,138,096
(Cost $24,894,216) --------------
WRITTEN OPTIONS -- (3.9)%
CALL OPTIONS WRITTEN -- (1.4)%
(667) Invesco QQQ Trust(SM), Series 1.................... (23,131,560) 387.17 06/17/22 (319,940)
(Premiums received $863,562) --------------
PUT OPTIONS WRITTEN -- (2.5)%
(667) Invesco QQQ Trust(SM), Series 1.................... (23,131,560) 308.37 06/17/22 (591,435)
(Premiums received $973,455) --------------
TOTAL WRITTEN OPTIONS.......................................................................... (911,375)
(Premiums received $1,837,017) --------------
NET OTHER ASSETS AND LIABILITIES -- (0.1)%..................................................... (15,586)
--------------
NET ASSETS -- 100.0%........................................................................... $ 23,331,390
==============
(a) Rate shown reflects yield as of February 28, 2022.
Page 24 See Notes to Financial Statements
FT CBOE VEST NASDAQ-100(R) BUFFER ETF - JUNE (QJUN)
PORTFOLIO OF INVESTMENTS (CONTINUED)
FEBRUARY 28, 2022 (UNAUDITED)
-----------------------------
VALUATION INPUTS
A summary of the inputs used to value the Fund's investments as of February 28,
2022 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial
Statements):
ASSETS TABLE
LEVEL 2 LEVEL 3
TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT
VALUE AT QUOTED OBSERVABLE UNOBSERVABLE
2/28/2022 PRICES INPUTS INPUTS
-------------- -------------- -------------- --------------
Money Market Funds................................... $ 120,255 $ 120,255 $ -- $ --
Call Options Purchased............................... 22,889,723 -- 22,889,723 --
Put Options Purchased................................ 1,248,373 -- 1,248,373 --
-------------- -------------- -------------- --------------
Total................................................ $ 24,258,351 $ 120,255 $ 24,138,096 $ --
============== ============== ============== ==============
LIABILITIES TABLE
LEVEL 2 LEVEL 3
TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT
VALUE AT QUOTED OBSERVABLE UNOBSERVABLE
2/28/2022 PRICES INPUTS INPUTS
-------------- -------------- -------------- --------------
Call Options Written................................. $ (319,940) $ -- $ (319,940) $ --
Put Options Written.................................. (591,435) -- (591,435) --
-------------- -------------- -------------- --------------
Total................................................ $ (911,375) $ -- $ (911,375) $ --
============== ============== ============== ==============
See Notes to Financial Statements Page 25
FT CBOE VEST U.S. EQUITY ENHANCE & MODERATE BUFFER ETF - JUNE (XJUN)
PORTFOLIO OF INVESTMENTS
FEBRUARY 28, 2022 (UNAUDITED)
SHARES DESCRIPTION VALUE
-------------- ----------------------------------------------------------------------------------------------- --------------
MONEY MARKET FUNDS -- 0.6%
72,655 Dreyfus Government Cash Management Fund, Institutional Shares - 0.03% (a)...................... $ 72,655
(Cost $72,655) --------------
TOTAL INVESTMENTS -- 0.6%...................................................................... 72,655
(Cost $72,655) --------------
NUMBER OF NOTIONAL EXERCISE EXPIRATION
CONTRACTS DESCRIPTION AMOUNT PRICE DATE VALUE
-------------- --------------------------------------------------- ------------- ----------- ----------- --------------
PURCHASED OPTIONS -- 107.0%
CALL OPTIONS PURCHASED -- 101.7%
272 SPDR(R) S&P 500(R) ETF Trust....................... $ 11,876,336 $ 4.37 06/17/22 11,666,577
272 SPDR(R) S&P 500(R) ETF Trust....................... 11,876,336 437.08 06/17/22 544,402
--------------
TOTAL CALL OPTIONS PURCHASED................................................................... 12,210,979
(Cost $12,451,812) --------------
PUT OPTIONS PURCHASED -- 5.3%
272 SPDR(R) S&P 500(R) ETF Trust....................... 11,876,336 437.08 06/17/22 631,881
(Cost $747,299) --------------
TOTAL PURCHASED OPTIONS........................................................................ 12,842,860
(Cost $13,199,111) --------------
WRITTEN OPTIONS -- (7.5)%
CALL OPTIONS WRITTEN -- (5.8)%
(544) SPDR(R) S&P 500(R) ETF Trust....................... (23,752,672) 450.54 06/17/22 (703,000)
(Premiums received $1,034,929) --------------
PUT OPTIONS WRITTEN -- (1.7)%
(272) SPDR(R) S&P 500(R) ETF Trust....................... (11,876,336) 371.52 06/17/22 (202,571)
(Premiums received $312,207) --------------
TOTAL WRITTEN OPTIONS.......................................................................... (905,571)
(Premiums received $1,347,136) --------------
NET OTHER ASSETS AND LIABILITIES -- (0.1)%..................................................... (7,857)
--------------
NET ASSETS -- 100.0%........................................................................... $ 12,002,087
==============
(a) Rate shown reflects yield as of February 28, 2022.
Page 26 See Notes to Financial Statements
FT CBOE VEST U.S. EQUITY ENHANCE & MODERATE BUFFER ETF - JUNE (XJUN)
PORTFOLIO OF INVESTMENTS (CONTINUED)
FEBRUARY 28, 2022 (UNAUDITED)
-----------------------------
VALUATION INPUTS
A summary of the inputs used to value the Fund's investments as of February 28,
2022 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial
Statements):
ASSETS TABLE
LEVEL 2 LEVEL 3
TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT
VALUE AT QUOTED OBSERVABLE UNOBSERVABLE
2/28/2022 PRICES INPUTS INPUTS
-------------- -------------- -------------- --------------
Money Market Funds................................... $ 72,655 $ 72,655 $ -- $ --
Call Options Purchased............................... 12,210,979 -- 12,210,979 --
Put Options Purchased................................ 631,881 -- 631,881 --
-------------- -------------- -------------- --------------
Total................................................ $ 12,915,515 $ 72,655 $ 12,842,860 $ --
============== ============== ============== ==============
LIABILITIES TABLE
LEVEL 2 LEVEL 3
TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT
VALUE AT QUOTED OBSERVABLE UNOBSERVABLE
2/28/2022 PRICES INPUTS INPUTS
-------------- -------------- -------------- --------------
Call Options Written................................. $ (703,000) $ -- $ (703,000) $ --
Put Options Written.................................. (202,571) -- (202,571) --
-------------- -------------- -------------- --------------
Total................................................ $ (905,571) $ -- $ (905,571) $ --
============== ============== ============== ==============
See Notes to Financial Statements Page 27
FT CBOE VEST INTERNATIONAL EQUITY BUFFER ETF - SEPTEMBER (YSEP)
PORTFOLIO OF INVESTMENTS
FEBRUARY 28, 2022 (UNAUDITED)
SHARES DESCRIPTION VALUE
-------------- ----------------------------------------------------------------------------------------------- --------------
MONEY MARKET FUNDS -- 0.9%
79,532 Dreyfus Government Cash Management Fund, Institutional Shares - 0.03% (a)...................... $ 79,532
(Cost $79,532) --------------
TOTAL INVESTMENTS -- 0.9%...................................................................... 79,532
(Cost $79,532) --------------
NUMBER OF NOTIONAL EXERCISE EXPIRATION
CONTRACTS DESCRIPTION AMOUNT PRICE DATE VALUE
-------------- --------------------------------------------------- ------------- ----------- ----------- --------------
PURCHASED OPTIONS -- 105.1%
CALL OPTIONS PURCHASED -- 93.2%
1,116 iShares MSCI EAFE ETF.............................. $ 8,171,352 $ 0.81 09/16/22 7,961,925
(Cost $8,536,675) --------------
PUT OPTIONS PURCHASED -- 11.9%
1,116 iShares MSCI EAFE ETF.............................. 8,171,352 80.50 09/16/22 1,011,489
(Cost $713,244) --------------
TOTAL PURCHASED OPTIONS........................................................................ 8,973,414
(Cost $9,249,919) --------------
WRITTEN OPTIONS -- (5.9)%
CALL OPTIONS WRITTEN -- (0.1)%
(1,116) iShares MSCI EAFE ETF.............................. (8,171,352) 90.91 09/16/22 (11,195)
(Premiums received $54,858) --------------
PUT OPTIONS WRITTEN -- (5.8)%
(1,116) iShares MSCI EAFE ETF.............................. (8,171,352) 72.45 09/16/22 (494,772)
(Premiums received $353,631) --------------
TOTAL WRITTEN OPTIONS.......................................................................... (505,967)
(Premiums received $408,489) --------------
NET OTHER ASSETS AND LIABILITIES -- (0.1)%..................................................... (5,445)
--------------
NET ASSETS -- 100.0%........................................................................... $ 8,541,534
==============
(a) Rate shown reflects yield as of February 28, 2022.
Page 28 See Notes to Financial Statements
FT CBOE VEST INTERNATIONAL EQUITY BUFFER ETF - SEPTEMBER (YSEP)
PORTFOLIO OF INVESTMENTS (CONTINUED)
FEBRUARY 28, 2022 (UNAUDITED)
-----------------------------
VALUATION INPUTS
A summary of the inputs used to value the Fund's investments as of February 28,
2022 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial
Statements):
ASSETS TABLE
LEVEL 2 LEVEL 3
TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT
VALUE AT QUOTED OBSERVABLE UNOBSERVABLE
2/28/2022 PRICES INPUTS INPUTS
-------------- -------------- -------------- --------------
Money Market Funds................................... $ 79,532 $ 79,532 $ -- $ --
Call Options Purchased............................... 7,961,925 -- 7,961,925 --
Put Options Purchased................................ 1,011,489 -- 1,011,489 --
-------------- -------------- -------------- --------------
Total................................................ $ 9,052,946 $ 79,532 $ 8,973,414 $ --
============== ============== ============== ==============
LIABILITIES TABLE
LEVEL 2 LEVEL 3
TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT
VALUE AT QUOTED OBSERVABLE UNOBSERVABLE
2/28/2022 PRICES INPUTS INPUTS
-------------- -------------- -------------- --------------
Call Options Written................................. $ (11,195) $ -- $ (11,195) $ --
Put Options Written.................................. (494,772) -- (494,772) --
-------------- -------------- -------------- --------------
Total................................................ $ (505,967) $ -- $ (505,967) $ --
============== ============== ============== ==============
See Notes to Financial Statements Page 29
FT CBOE VEST NASDAQ-100(R) BUFFER ETF - SEPTEMBER (QSPT)
PORTFOLIO OF INVESTMENTS
FEBRUARY 28, 2022 (UNAUDITED)
SHARES DESCRIPTION VALUE
-------------- ----------------------------------------------------------------------------------------------- --------------
MONEY MARKET FUNDS -- 0.8%
193,936 Dreyfus Government Cash Management Fund, Institutional Shares - 0.03% (a)...................... $ 193,936
(Cost $193,936) --------------
TOTAL INVESTMENTS -- 0.8%...................................................................... 193,936
(Cost $193,936) --------------
NUMBER OF NOTIONAL EXERCISE EXPIRATION
CONTRACTS DESCRIPTION AMOUNT PRICE DATE VALUE
-------------- --------------------------------------------------- ------------- ----------- ----------- --------------
PURCHASED OPTIONS -- 106.3%
CALL OPTIONS PURCHASED -- 95.0%
675 Invesco QQQ Trust(SM), Series 1.................... $ 23,409,000 $ 3.74 09/16/22 23,126,604
(Cost $24,924,991) --------------
PUT OPTIONS PURCHASED -- 11.3%
675 Invesco QQQ Trust(SM), Series 1.................... 23,409,000 373.83 09/16/22 2,750,324
(Cost $2,287,116) --------------
TOTAL PURCHASED OPTIONS........................................................................ 25,876,928
(Cost $27,212,107) --------------
WRITTEN OPTIONS -- (7.0)%
CALL OPTIONS WRITTEN -- (0.8)%
(675) Invesco QQQ Trust(SM), Series 1.................... (23,409,000) 424.86 09/16/22 (186,337)
(Premiums received $748,493) --------------
PUT OPTIONS WRITTEN -- (6.2)%
(675) Invesco QQQ Trust(SM), Series 1.................... (23,409,000) 336.45 09/16/22 (1,518,627)
(Premiums received $1,349,875) --------------
TOTAL WRITTEN OPTIONS.......................................................................... (1,704,964)
(Premiums received $2,098,368) --------------
NET OTHER ASSETS AND LIABILITIES -- (0.1)%..................................................... (17,590)
--------------
NET ASSETS -- 100.0%........................................................................... $ 24,348,310
==============
(a) Rate shown reflects yield as of February 28, 2022.
Page 30 See Notes to Financial Statements
FT CBOE VEST NASDAQ-100(R) BUFFER ETF - SEPTEMBER (QSPT)
PORTFOLIO OF INVESTMENTS (CONTINUED)
FEBRUARY 28, 2022 (UNAUDITED)
-----------------------------
VALUATION INPUTS
A summary of the inputs used to value the Fund's investments as of February 28,
2022 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial
Statements):
ASSETS TABLE
LEVEL 2 LEVEL 3
TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT
VALUE AT QUOTED OBSERVABLE UNOBSERVABLE
2/28/2022 PRICES INPUTS INPUTS
-------------- -------------- -------------- --------------
Money Market Funds................................... $ 193,936 $ 193,936 $ -- $ --
Call Options Purchased............................... 23,126,604 -- 23,126,604 --
Put Options Purchased................................ 2,750,324 -- 2,750,324 --
-------------- -------------- -------------- --------------
Total................................................ $ 26,070,864 $ 193,936 $ 25,876,928 $ --
============== ============== ============== ==============
LIABILITIES TABLE
LEVEL 2 LEVEL 3
TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT
VALUE AT QUOTED OBSERVABLE UNOBSERVABLE
2/28/2022 PRICES INPUTS INPUTS
-------------- -------------- -------------- --------------
Call Options Written................................. $ (186,337) $ -- $ (186,337) $ --
Put Options Written.................................. (1,518,627) -- (1,518,627) --
-------------- -------------- -------------- --------------
Total................................................ $ (1,704,964) $ -- $ (1,704,964) $ --
============== ============== ============== ==============
See Notes to Financial Statements Page 31
FT CBOE VEST INTERNATIONAL EQUITY BUFFER ETF - DECEMBER (YDEC)
PORTFOLIO OF INVESTMENTS
FEBRUARY 28, 2022 (UNAUDITED)
SHARES DESCRIPTION VALUE
-------------- ----------------------------------------------------------------------------------------------- --------------
MONEY MARKET FUNDS -- 1.2%
133,554 Dreyfus Government Cash Management Fund, Institutional Shares - 0.03% (a)...................... $ 133,554
(Cost $133,554) --------------
TOTAL INVESTMENTS -- 1.2%....................................................................... 133,554
(Cost $133,554) --------------
NUMBER OF NOTIONAL EXERCISE EXPIRATION
CONTRACTS DESCRIPTION AMOUNT PRICE DATE VALUE
-------------- --------------------------------------------------- ------------- ----------- ----------- --------------
PURCHASED OPTIONS -- 105.2%
CALL OPTIONS PURCHASED -- 95.3%
1,506 iShares MSCI EAFE ETF.............................. $ 11,026,932 $ 0.77 12/16/22 10,659,838
(Cost $11,203,621) --------------
PUT OPTIONS PURCHASED -- 9.9%
1,506 iShares MSCI EAFE ETF.............................. 11,026,932 76.65 12/16/22 1,110,654
(Cost $907,085) --------------
TOTAL PURCHASED OPTIONS........................................................................ 11,770,492
(Cost $12,110,706) --------------
WRITTEN OPTIONS -- (6.4)%
CALL OPTIONS WRITTEN -- (0.9)%
(1,506) iShares MSCI EAFE ETF.............................. (11,026,932) 84.89 12/16/22 (101,393)
(Premiums received $202,150) --------------
PUT OPTIONS WRITTEN -- (5.5)%
(1,506) iShares MSCI EAFE ETF.............................. (11,026,932) 68.99 12/16/22 (610,733)
(Premiums received $500,876) --------------
TOTAL WRITTEN OPTIONS.......................................................................... (712,126)
(Premiums received $703,026) --------------
NET OTHER ASSETS AND LIABILITIES -- (0.0)%..................................................... (7,884)
--------------
NET ASSETS -- 100.0%........................................................................... $ 11,184,036
==============
(a) Rate shown reflects yield as of February 28, 2022.
Page 32 See Notes to Financial Statements
FT CBOE VEST INTERNATIONAL EQUITY BUFFER ETF - DECEMBER (YDEC)
PORTFOLIO OF INVESTMENTS (CONTINUED)
FEBRUARY 28, 2022 (UNAUDITED)
-----------------------------
VALUATION INPUTS
A summary of the inputs used to value the Fund's investments as of February 28,
2022 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial
Statements):
ASSETS TABLE
LEVEL 2 LEVEL 3
TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT
VALUE AT QUOTED OBSERVABLE UNOBSERVABLE
2/28/2022 PRICES INPUTS INPUTS
-------------- -------------- -------------- --------------
Money Market Funds................................... $ 133,554 $ 133,554 $ -- $ --
Call Options Purchased............................... 10,659,838 -- 10,659,838 --
Put Options Purchased................................ 1,110,654 -- 1,110,654 --
-------------- -------------- -------------- --------------
Total................................................ $ 11,904,046 $ 133,554 $ 11,770,492 $ --
============== ============== ============== ==============
LIABILITIES TABLE
LEVEL 2 LEVEL 3
TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT
VALUE AT QUOTED OBSERVABLE UNOBSERVABLE
2/28/2022 PRICES INPUTS INPUTS
-------------- -------------- -------------- --------------
Call Options Written................................. $ (101,393) $ -- $ (101,393) $ --
Put Options Written.................................. (610,733) -- (610,733) --
-------------- -------------- -------------- --------------
Total................................................ $ (712,126) $ -- $ (712,126) $ --
============== ============== ============== ==============
See Notes to Financial Statements Page 33
FT CBOE VEST NASDAQ-100(R) BUFFER ETF - DECEMBER (QDEC)
PORTFOLIO OF INVESTMENTS
FEBRUARY 28, 2022 (UNAUDITED)
SHARES DESCRIPTION VALUE
-------------- ----------------------------------------------------------------------------------------------- --------------
MONEY MARKET FUNDS -- 1.1%
1,125,651 Dreyfus Government Cash Management Fund, Institutional Shares - 0.03% (a)...................... $ 1,125,651
(Cost $1,125,651) --------------
TOTAL INVESTMENTS -- 1.1%...................................................................... 1,125,651
(Cost $1,125,651) --------------
NUMBER OF NOTIONAL EXERCISE EXPIRATION
CONTRACTS DESCRIPTION AMOUNT PRICE DATE VALUE
-------------- --------------------------------------------------- ------------- ----------- ----------- --------------
PURCHASED OPTIONS -- 108.5%
CALL OPTIONS PURCHASED -- 94.1%
2,875 Invesco QQQ Trust(SM), Series 1.................... $ 99,705,000 $ 3.85 12/16/22 98,381,776
(Cost $107,302,061) --------------
PUT OPTIONS PURCHASED -- 14.4%
2,875 Invesco QQQ Trust(SM), Series 1.................... 99,705,000 384.91 12/16/22 14,986,205
(Cost $11,554,146) --------------
TOTAL PURCHASED OPTIONS........................................................................ 113,367,981
(Cost $118,856,207) --------------
WRITTEN OPTIONS -- (9.5)%
CALL OPTIONS WRITTEN -- (0.9)%
(2,875) Invesco QQQ Trust(SM), Series 1.................... (99,705,000) 446.07 12/16/22 (887,932)
(Premiums received $3,188,981) --------------
PUT OPTIONS WRITTEN -- (8.6)%
(2,875) Invesco QQQ Trust(SM), Series 1.................... (99,705,000) 346.42 12/16/22 (9,015,131)
(Premiums received $7,207,577) --------------
TOTAL WRITTEN OPTIONS.......................................................................... (9,903,063)
(Premiums received $10,396,558) --------------
NET OTHER ASSETS AND LIABILITIES -- (0.1)%..................................................... (69,237)
--------------
NET ASSETS -- 100.0%........................................................................... $ 104,521,332
==============
(a) Rate shown reflects yield as of February 28, 2022.
Page 34 See Notes to Financial Statements
FT CBOE VEST NASDAQ-100(R) BUFFER ETF - DECEMBER (QDEC)
PORTFOLIO OF INVESTMENTS (CONTINUED)
FEBRUARY 28, 2022 (UNAUDITED)
-----------------------------
VALUATION INPUTS
A summary of the inputs used to value the Fund's investments as of February 28,
2022 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial
Statements):
ASSETS TABLE
LEVEL 2 LEVEL 3
TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT
VALUE AT QUOTED OBSERVABLE UNOBSERVABLE
2/28/2022 PRICES INPUTS INPUTS
-------------- -------------- -------------- --------------
Money Market Funds................................... $ 1,125,651 $ 1,125,651 $ -- $ --
Call Options Purchased............................... 98,381,776 -- 98,381,776 --
Put Options Purchased................................ 14,986,205 -- 14,986,205 --
-------------- -------------- -------------- --------------
Total................................................ $ 114,493,632 $ 1,125,651 $ 113,367,981 $ --
============== ============== ============== ==============
LIABILITIES TABLE
LEVEL 2 LEVEL 3
TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT
VALUE AT QUOTED OBSERVABLE UNOBSERVABLE
2/28/2022 PRICES INPUTS INPUTS
-------------- -------------- -------------- --------------
Call Options Written................................. $ (887,932) $ -- $ (887,932) $ --
Put Options Written.................................. (9,015,131) -- (9,015,131) --
-------------- -------------- -------------- --------------
Total................................................ $ (9,903,063) $ -- $ (9,903,063) $ --
============== ============== ============== ==============
See Notes to Financial Statements Page 35
FT CBOE VEST U.S. EQUITY ENHANCE & MODERATE BUFFER ETF - DECEMBER (XDEC)
PORTFOLIO OF INVESTMENTS
FEBRUARY 28, 2022 (UNAUDITED)
SHARES DESCRIPTION VALUE
-------------- ----------------------------------------------------------------------------------------------- --------------
MONEY MARKET FUNDS -- 1.0%
361,298 Dreyfus Government Cash Management Fund, Institutional Shares - 0.03% (a)...................... $ 361,298
(Cost $361,298) --------------
TOTAL INVESTMENTS -- 1.0%...................................................................... 361,298
(Cost $361,298) --------------
NUMBER OF NOTIONAL EXERCISE EXPIRATION
CONTRACTS DESCRIPTION AMOUNT PRICE DATE VALUE
-------------- --------------------------------------------------- ------------- ----------- ----------- --------------
PURCHASED OPTIONS -- 109.2%
CALL OPTIONS PURCHASED -- 99.1%
792 SPDR(R) S&P 500(R) ETF Trust....................... $ 34,581,096 $ 4.61 12/16/22 33,841,941
792 SPDR(R) S&P 500(R) ETF Trust....................... 34,581,096 459.88 12/16/22 1,647,408
--------------
TOTAL CALL OPTIONS PURCHASED................................................................... 35,489,349
(Cost $36,763,418) --------------
PUT OPTIONS PURCHASED -- 10.1%
792 SPDR(R) S&P 500(R) ETF Trust....................... 34,581,096 459.88 12/16/22 3,623,740
(Cost $3,389,891) --------------
TOTAL PURCHASED OPTIONS........................................................................ 39,113,089
(Cost $40,153,309) --------------
WRITTEN OPTIONS -- (10.1)%
CALL OPTIONS WRITTEN -- (5.6)%
(1,584) SPDR(R) S&P 500(R) ETF Trust....................... (69,162,192) 479.60 12/16/22 (2,024,252)
(Premiums received $2,836,997) --------------
PUT OPTIONS WRITTEN -- (4.5)%
(792) SPDR(R) S&P 500(R) ETF Trust....................... (34,581,096) 390.89 12/16/22 (1,597,467)
(Premiums received $1,628,707) --------------
TOTAL WRITTEN OPTIONS.......................................................................... (3,621,719)
(Premiums received $4,465,704) --------------
NET OTHER ASSETS AND LIABILITIES -- (0.1)%..................................................... (20,672)
--------------
NET ASSETS -- 100.0%........................................................................... $ 35,831,996
==============
(a) Rate shown reflects yield as of February 28, 2022.
Page 36 See Notes to Financial Statements
FT CBOE VEST U.S. EQUITY ENHANCE & MODERATE BUFFER ETF - DECEMBER (XDEC)
PORTFOLIO OF INVESTMENTS (CONTINUED)
FEBRUARY 28, 2022 (UNAUDITED)
-----------------------------
VALUATION INPUTS
A summary of the inputs used to value the Fund's investments as of February 28,
2022 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial
Statements):
ASSETS TABLE
LEVEL 2 LEVEL 3
TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT
VALUE AT QUOTED OBSERVABLE UNOBSERVABLE
2/28/2022 PRICES INPUTS INPUTS
-------------- -------------- -------------- --------------
Money Market Funds................................... $ 361,298 $ 361,298 $ -- $ --
Call Options Purchased............................... 35,489,349 -- 35,489,349 --
Put Options Purchased................................ 3,623,740 -- 3,623,740 --
-------------- -------------- -------------- --------------
Total................................................ $ 39,474,387 $ 361,298 $ 39,113,089 $ --
============== ============== ============== ==============
LIABILITIES TABLE
LEVEL 2 LEVEL 3
TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT
VALUE AT QUOTED OBSERVABLE UNOBSERVABLE
2/28/2022 PRICES INPUTS INPUTS
-------------- -------------- -------------- --------------
Call Options Written................................. $ (2,024,252) $ -- $ (2,024,252) $ --
Put Options Written.................................. (1,597,467) -- (1,597,467) --
-------------- -------------- -------------- --------------
Total................................................ $ (3,621,719) $ -- $ (3,621,719) $ --
============== ============== ============== ==============
See Notes to Financial Statements Page 37
FIRST TRUST EXCHANGE-TRADED FUND VIII
STATEMENTS OF ASSETS AND LIABILITIES
FEBRUARY 28, 2022 (UNAUDITED)
FT CBOE VEST FT CBOE VEST FT CBOE VEST FT CBOE VEST
INTERNATIONAL NASDAQ-100(R) INTERNATIONAL NASDAQ-100(R)
EQUITY BUFFER BUFFER EQUITY BUFFER BUFFER
ETF - MARCH ETF - MARCH ETF - JUNE ETF - JUNE
(YMAR) (QMAR) (YJUN) (QJUN)
---------------- ----------------- ----------------- -----------------
ASSETS:
Investments, at value........................... $ 72,708 $ 44,034 $ 100,777 $ 120,255
Options contracts purchased, at value........... 15,948,537 15,475,565 14,922,697 24,138,096
Cash............................................ -- 13 26 --
Dividends receivable............................ 1 2 2 3
---------------- ----------------- ----------------- -----------------
Total Assets................................. 16,021,246 15,519,614 15,023,502 24,258,354
---------------- ----------------- ----------------- -----------------
LIABILITIES:
Options contracts written, at value............. 153,952 139,871 553,540 911,375
Investment advisory fees payable................ 10,032 10,633 9,523 15,589
---------------- ----------------- ----------------- -----------------
Total Liabilities............................ 163,984 150,504 563,063 926,964
---------------- ----------------- ----------------- -----------------
NET ASSETS...................................... $ 15,857,262 $ 15,369,110 $ 14,460,439 $ 23,331,390
================ ================= ================= =================
NET ASSETS CONSIST OF:
Paid-in capital................................. $ 16,482,065 $ 14,345,980 $ 15,038,317 $ 22,999,338
Par value....................................... 8,000 7,000 7,500 11,500
Accumulated distributable earnings (loss)....... (632,803) 1,016,130 (585,378) 320,552
---------------- ----------------- ----------------- -----------------
NET ASSETS...................................... $ 15,857,262 $ 15,369,110 $ 14,460,439 $ 23,331,390
================ ================= ================= =================
NET ASSET VALUE, per share...................... $ 19.82 $ 21.96 $ 19.28 $ 20.29
================ ================= ================= =================
Number of shares outstanding (unlimited number
of shares authorized, par value
$0.01 per share)............................. 800,002 700,002 750,002 1,150,002
================ ================= ================= =================
Investments, at cost............................ $ 72,708 $ 44,034 $ 100,777 $ 120,255
================ ================= ================= =================
Premiums paid on options contracts purchased.... $ 16,772,014 $ 15,574,258 $ 15,555,784 $ 24,894,216
================ ================= ================= =================
Premiums received on options contracts written.. $ 441,564 $ 1,338,036 $ 643,645 $ 1,837,017
================ ================= ================= =================
Page 38 See Notes to Financial Statements
FT CBOE VEST FT CBOE VEST
U.S. EQUITY FT CBOE VEST FT CBOE VEST FT CBOE VEST FT CBOE VEST U.S. EQUITY
ENHANCE & INTERNATIONAL NASDAQ-100(R) INTERNATIONAL NASDAQ-100(R) ENHANCE &
MODERATE BUFFER EQUITY BUFFER BUFFER EQUITY BUFFER BUFFER MODERATE BUFFER
ETF - JUNE ETF - SEPTEMBER ETF - SEPTEMBER ETF - DECEMBER ETF - DECEMBER ETF - DECEMBER
(XJUN) (YSEP) (QSPT) (YDEC) (QDEC) (XDEC)
------------------ ----------------- ----------------- ------------------ ----------------- -----------------
$ 72,655 $ 79,532 $ 193,936 $ 133,554 $ 1,125,651 $ 361,298
12,842,860 8,973,414 25,876,928 11,770,492 113,367,981 39,113,089
-- -- -- -- -- --
2 2 9 3 25 5
------------------ ----------------- ----------------- ------------------ ----------------- -----------------
12,915,517 9,052,948 26,070,873 11,904,049 114,493,657 39,474,392
------------------ ----------------- ----------------- ------------------ ----------------- -----------------
905,571 505,967 1,704,964 712,126 9,903,063 3,621,719
7,859 5,447 17,599 7,887 69,262 20,677
------------------ ----------------- ----------------- ------------------ ----------------- -----------------
913,430 511,414 1,722,563 720,013 9,972,325 3,642,396
------------------ ----------------- ----------------- ------------------ ----------------- -----------------
$ 12,002,087 $ 8,541,534 $ 24,348,310 $ 11,184,036 $ 104,521,332 $ 35,831,996
================== ================= ================= ================== ================= =================
$ 11,947,328 $ 8,907,861 $ 25,219,847 $ 11,486,630 $ 99,105,418 $ 36,053,913
4,000 4,500 12,500 5,500 48,000 12,000
50,759 (370,827) (884,037) (308,094) 5,367,914 (233,917)
------------------ ----------------- ----------------- ------------------ ----------------- -----------------
$ 12,002,087 $ 8,541,534 $ 24,348,310 $ 11,184,036 $ 104,521,332 $ 35,831,996
================== ================= ================= ================== ================= =================
$ 30.01 $ 18.98 $ 19.48 $ 20.33 $ 21.78 $ 29.86
================== ================= ================= ================== ================= =================
400,002 450,002 1,250,002 550,002 4,800,002 1,200,002
================== ================= ================= ================== ================= =================
$ 72,655 $ 79,532 $ 193,936 $ 133,554 $ 1,125,651 $ 361,298
================== ================= ================= ================== ================= =================
$ 13,199,111 $ 9,249,919 $ 27,212,107 $ 12,110,706 $ 118,856,207 $ 40,153,309
================== ================= ================= ================== ================= =================
$ 1,347,136 $ 408,489 $ 2,098,368 $ 703,026 $ 10,396,558 $ 4,465,704
================== ================= ================= ================== ================= =================
See Notes to Financial Statements Page 39
FIRST TRUST EXCHANGE-TRADED FUND VIII
STATEMENTS OF OPERATIONS
FOR THE PERIOD ENDED FEBRUARY 28, 2022 (UNAUDITED)
FT CBOE VEST FT CBOE VEST FT CBOE VEST FT CBOE VEST
INTERNATIONAL NASDAQ-100(R) INTERNATIONAL NASDAQ-100(R)
EQUITY BUFFER BUFFER EQUITY BUFFER BUFFER
ETF - MARCH ETF - MARCH ETF - JUNE ETF - JUNE
(YMAR) (QMAR) (YJUN) (QJUN)
---------------- ----------------- ----------------- -----------------
INVESTMENT INCOME:
Dividends....................................... $ 1 $ 30 $ 25 $ 40
---------------- ----------------- ----------------- -----------------
Total investment income...................... 1 30 25 40
---------------- ----------------- ----------------- -----------------
EXPENSES:
Investment advisory fees........................ 56,422 72,313 69,093 117,943
---------------- ----------------- ----------------- -----------------
Total expenses............................... 56,422 72,313 69,093 117,943
---------------- ----------------- ----------------- -----------------
NET INVESTMENT INCOME (LOSS).................... (56,421) (72,283) (69,068) (117,903)
---------------- ----------------- ----------------- -----------------
NET REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) on:
Purchased options contracts.................. (72,710) 93,666 (106,096) 332,652
Written options contracts.................... 56,491 (43,568) 85,339 (91,999)
In-kind redemptions - Purchased options
contracts................................. -- -- 27,570 27,523
In-kind redemptions - Written options
contracts................................. -- -- 32,393 39,302
---------------- ----------------- ----------------- -----------------
Net realized gain (loss)........................ (16,219) 50,098 39,206 307,478
---------------- ----------------- ----------------- -----------------
Net change in unrealized appreciation
(depreciation) on:
Purchased options contracts.................. (881,078) (1,847,983) (783,878) (2,265,018)
Written options contracts.................... 94,593 1,664,622 (8,511) 1,360,561
---------------- ----------------- ----------------- -----------------
Net change in unrealized appreciation
(depreciation)............................... (786,485) (183,361) (792,389) (904,457)
---------------- ----------------- ----------------- -----------------
NET REALIZED AND UNREALIZED
GAIN (LOSS).................................. (802,704) (133,263) (753,183) (596,979)
---------------- ----------------- ----------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS.................... $ (859,125) $ (205,546) $ (822,251) $ (714,882)
================ ================= ================= =================
(a) Inception date is September 17, 2021, which is consistent with the
commencement of investment operations and is the date the initial creation
units were established.
(b) Inception date is December 17, 2021, which is consistent with the
commencement of investment operations and is the date the initial creation
units were established.
Page 40 See Notes to Financial Statements
FT CBOE VEST FT CBOE VEST
U.S. EQUITY FT CBOE VEST FT CBOE VEST FT CBOE VEST FT CBOE VEST U.S. EQUITY
ENHANCE & INTERNATIONAL NASDAQ-100(R) INTERNATIONAL NASDAQ-100(R) ENHANCE &
MODERATE BUFFER EQUITY BUFFER BUFFER EQUITY BUFFER BUFFER MODERATE BUFFER
ETF - JUNE ETF - SEPTEMBER ETF - SEPTEMBER ETF - DECEMBER ETF - DECEMBER ETF - DECEMBER
(XJUN) (YSEP) (a) (QSPT) (a) (YDEC) (QDEC) (XDEC) (b)
------------------ ----------------- ----------------- ------------------ ----------------- -----------------
$ 10 $ 8 $ 33 $ 18 $ 91 $ 10
------------------ ----------------- ----------------- ------------------ ----------------- -----------------
10 8 33 18 91 10
------------------ ----------------- ----------------- ------------------ ----------------- -----------------
29,723 20,192 96,891 52,118 352,374 28,822
------------------ ----------------- ----------------- ------------------ ----------------- -----------------
29,723 20,192 96,891 52,118 352,374 28,822
------------------ ----------------- ----------------- ------------------ ----------------- -----------------
(29,713) (20,184) (96,858) (52,100) (352,283) (28,812)
------------------ ----------------- ----------------- ------------------ ----------------- -----------------
19,173 -- (126,570) (989,447) (5,836,305) (12,903)
(18,831) -- 130,060 6,944 (1,727,770) 4,033
-- 18,274 111,486 643,329 13,485,751 --
-- 5,066 39,620 483,729 4,423,014 --
------------------ ----------------- ----------------- ------------------ ----------------- -----------------
342 23,340 154,596 144,555 10,344,690 (8,870)
------------------ ----------------- ----------------- ------------------ ----------------- -----------------
(580,524) (276,505) (1,335,179) (720,200) (13,999,842) (1,040,220)
595,871 (97,478) 393,404 (335,444) 142,151 843,985
------------------ ----------------- ----------------- ------------------ ----------------- -----------------
15,347 (373,983) (941,775) (1,055,644) (13,857,691) (196,235)
------------------ ----------------- ----------------- ------------------ ----------------- -----------------
15,689 (350,643) (787,179) (911,089) (3,513,001) (205,105)
------------------ ----------------- ----------------- ------------------ ----------------- -----------------
$ (14,024) $ (370,827) $ (884,037) $ (963,189) $ (3,865,284) $ (233,917)
================== ================= ================= ================== ================= =================
See Notes to Financial Statements Page 41
FIRST TRUST EXCHANGE-TRADED FUND VIII
STATEMENTS OF CHANGES IN NET ASSETS
FT CBOE VEST FT CBOE VEST
INTERNATIONAL EQUITY NASDAQ-100(R)
BUFFER ETF - MARCH BUFFER ETF - MARCH
(YMAR) (QMAR)
------------------------------------- --------------------------------------
SIX MONTHS ENDED PERIOD SIX MONTHS ENDED PERIOD
2/28/22 ENDED 2/28/22 ENDED
(UNAUDITED) 8/31/21 (a) (UNAUDITED) 8/31/21 (a)
---------------- ----------------- ----------------- -----------------
OPERATIONS:
Net investment income (loss)................... $ (56,421) $ (25,017) $ (72,283) $ (52,940)
Net realized gain (loss)....................... (16,219) -- 50,098 (9,582)
Net change in unrealized appreciation
(depreciation)................................ (786,485) 250,620 (183,361) 1,282,833
---------------- ----------------- ----------------- -----------------
Net increase (decrease) in net assets resulting
from operations............................. (859,125) 225,603 (205,546) 1,220,311
---------------- ----------------- ----------------- -----------------
SHAREHOLDER TRANSACTIONS:
Proceeds from shares sold...................... 9,288,758 12,460,962 2,252,803 22,902,662
Cost of shares redeemed........................ (5,258,936) -- (5,562,802) (5,238,318)
---------------- ----------------- ----------------- -----------------
Net increase (decrease) in net assets resulting
from shareholder transactions............... 4,029,822 12,460,962 (3,309,999) 17,664,344
---------------- ----------------- ----------------- -----------------
Total increase (decrease) in net assets........ 3,170,697 12,686,565 (3,515,545) 18,884,655
NET ASSETS:
Beginning of period............................ 12,686,565 -- 18,884,655 --
---------------- ----------------- ----------------- -----------------
End of period.................................. $ 15,857,262 $ 12,686,565 $ 15,369,110 $ 18,884,655
================ ================= ================= =================
CHANGES IN SHARES OUTSTANDING:
Shares outstanding, beginning of period........ 600,002 -- 850,002 --
Shares sold.................................... 450,000 600,002 100,000 1,100,002
Shares redeemed................................ (250,000) -- (250,000) (250,000)
---------------- ----------------- ----------------- -----------------
Shares outstanding, end of period.............. 800,002 600,002 700,002 850,002
================ ================= ================= =================
(a) Inception date is March 19, 2021, which is consistent with the
commencement of investment operations and is the date the initial creation
units were established.
(b) Inception date is June 18, 2021, which is consistent with the commencement
of investment operations and is the date the initial creation units were
established.
(c) Inception date is July 12, 2021, which is consistent with the commencement
of investment operations and is the date the initial creation units were
established.
Page 42 See Notes to Financial Statements
FT CBOE VEST FT CBOE VEST FT CBOE VEST
INTERNATIONAL EQUITY NASDAQ-100(R) U.S. EQUITY ENHANCE & MODERATE
BUFFER ETF - JUNE BUFFER ETF - JUNE BUFFER ETF - JUNE
(YJUN) (QJUN) (XJUN)
------------------------------------- -------------------------------------- --------------------------------------
SIX MONTHS ENDED PERIOD SIX MONTHS ENDED PERIOD SIX MONTHS ENDED PERIOD
2/28/22 ENDED 2/28/22 ENDED 2/28/22 ENDED
(UNAUDITED) 8/31/21 (b) (UNAUDITED) 8/31/21 (b) (UNAUDITED) 8/31/21 (c)
---------------- ----------------- ----------------- ----------------- ----------------- -----------------
$ (69,068) $ (13,034) $ (117,903) $ (40,287) $ (29,713) $ (5,184)
39,206 -- 307,478 -- 342 --
(792,389) 249,407 (904,457) 1,073,979 15,347 69,967
---------------- ----------------- ----------------- ----------------- ----------------- -----------------
(822,251) 236,373 (714,882) 1,033,692 (14,024) 64,783
---------------- ----------------- ----------------- ----------------- ----------------- -----------------
9,027,279 13,048,208 4,060,104 32,499,272 7,491,486 5,958,020
(7,029,170) -- (13,546,796) -- (1,498,178) --
---------------- ----------------- ----------------- ----------------- ----------------- -----------------
1,998,109 13,048,208 (9,486,692) 32,499,272 5,993,308 5,958,020
---------------- ----------------- ----------------- ----------------- ----------------- -----------------
1,175,858 13,284,581 (10,201,574) 33,532,964 5,979,284 6,022,803
13,284,581 -- 33,532,964 -- 6,022,803 --
---------------- ----------------- ----------------- ----------------- ----------------- -----------------
$ 14,460,439 $ 13,284,581 $ 23,331,390 $ 33,532,964 $ 12,002,087 $ 6,022,803
================ ================= ================= ================= ================= =================
650,002 -- 1,600,002 -- 200,002 --
450,000 650,002 200,000 1,600,002 250,000 200,002
(350,000) -- (650,000) -- (50,000) --
---------------- ----------------- ----------------- ----------------- ----------------- -----------------
750,002 650,002 1,150,002 1,600,002 400,002 200,002
================ ================= ================= ================= ================= =================
See Notes to Financial Statements Page 43
FIRST TRUST EXCHANGE-TRADED FUND VIII
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FT CBOE VEST FT CBOE VEST FT CBOE VEST
INTERNATIONAL NASDAQ-100(R) INTERNATIONAL
EQUITY BUFFER BUFFER EQUITY BUFFER
ETF - SEPTEMBER ETF - SEPTEMBER ETF - DECEMBER
(YSEP) (QSPT) (YDEC)
---------------- ----------------- --------------------------------------
PERIOD ENDED PERIOD ENDED SIX MONTHS ENDED PERIOD
2/28/22 (d) 2/28/22 (d) 2/28/22 ENDED
(UNAUDITED) (UNAUDITED) (UNAUDITED) 8/31/21 (e)
---------------- ----------------- ----------------- -----------------
OPERATIONS:
Net investment income (loss)................... $ (20,184) $ (96,858) $ (52,100) $ (52,205)
Net realized gain (loss)....................... 23,340 154,596 144,555 --
Net change in unrealized appreciation
(depreciation).............................. (373,983) (941,775) (1,055,644) 706,330
---------------- ----------------- ----------------- -----------------
Net increase (decrease) in net assets resulting
from operations............................. (370,827) (884,037) (963,189) 654,125
---------------- ----------------- ----------------- -----------------
SHAREHOLDER TRANSACTIONS:
Proceeds from shares sold...................... 9,899,509 36,477,282 21,453,693 11,362,368
Cost of shares redeemed........................ (987,148) (11,244,935) (21,322,961) --
---------------- ----------------- ----------------- -----------------
Net increase (decrease) in net assets resulting
from shareholder transactions............... 8,912,361 25,232,347 130,732 11,362,368
---------------- ----------------- ----------------- -----------------
Total increase (decrease) in net assets........ 8,541,534 24,348,310 (832,457) 12,016,493
NET ASSETS:
Beginning of period............................ -- -- 12,016,493 --
---------------- ----------------- ----------------- -----------------
End of period.................................. $ 8,541,534 $ 24,348,310 $ 11,184,036 $ 12,016,493
================ ================= ================= =================
CHANGES IN SHARES OUTSTANDING:
Shares outstanding, beginning of period........ -- -- 550,002 --
Shares sold.................................... 500,002 1,800,002 1,000,000 550,002
Shares redeemed................................ (50,000) (550,000) (1,000,000) --
---------------- ----------------- ----------------- -----------------
Shares outstanding, end of period.............. 450,002 1,250,002 550,002 550,002
================ ================= ================= =================
(d) Inception date is September 17, 2021, which is consistent with the
commencement of investment operations and is the date the initial creation
units were established.
(e) Inception date is December 18, 2020, which is consistent with the
commencement of investment operations and is the date the initial creation
units were established.
(f) Inception date is December 17, 2021, which is consistent with the
commencement of investment operations and is the date the initial creation
units were established.
Page 44 See Notes to Financial Statements
FT CBOE VEST
FT CBOE VEST U.S. EQUITY ENHANCE
NASDAQ-100(R) & MODERATE BUFFER
BUFFER ETF - DECEMBER ETF - DECEMBER
(QDEC) (XDEC)
------------------------------------- -----------------
SIX MONTHS ENDED PERIOD PERIOD ENDED
2/28/22 ENDED 2/28/22 (f)
(UNAUDITED) 8/31/21 (e) (UNAUDITED)
---------------- ----------------- -----------------
$ (352,283) $ (442,607) $ (28,812)
10,344,690 809,586 (8,870)
(13,857,691) 8,862,960 (196,235)
---------------- ----------------- -----------------
(3,865,284) 9,229,939 (233,917)
---------------- ----------------- -----------------
105,866,365 89,195,903 37,548,963
(76,432,126) (19,473,465) (1,483,050)
---------------- ----------------- -----------------
29,434,239 69,722,438 36,065,913
---------------- ----------------- -----------------
25,568,955 78,952,377 35,831,996
78,952,377 -- --
---------------- ----------------- -----------------
$ 104,521,332 $ 78,952,377 $ 35,831,996
================ ================= =================
3,500,002 -- --
4,650,000 4,400,002 1,250,002
(3,350,000) (900,000) (50,000)
---------------- ----------------- -----------------
4,800,002 3,500,002 1,200,002
================ ================= =================
See Notes to Financial Statements Page 45
FIRST TRUST EXCHANGE-TRADED FUND VIII
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
FT CBOE VEST INTERNATIONAL EQUITY BUFFER ETF - MARCH (YMAR)
SIX MONTHS
ENDED PERIOD
2/28/2022 ENDED
(UNAUDITED) 8/31/2021 (a)
-------------- --------------
Net asset value, beginning of period........................... $ 21.14 $ 20.02
-------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss)................................... (0.06) (0.04)
Net realized and unrealized gain (loss)........................ (1.26) 1.16
-------- --------
Total from investment operations............................... (1.32) 1.12
-------- --------
Net asset value, end of period................................. $ 19.82 $ 21.14
======== ========
TOTAL RETURN (b)............................................... (6.24)% 5.59%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000's)........................... $ 15,857 $ 12,687
RATIOS TO AVERAGE NET ASSETS:
Ratio of total expenses to average net assets.................. 0.90% (c) 0.90% (c)
Ratio of net investment income (loss) to average net assets ... (0.90)% (c) (0.90)% (c)
Portfolio turnover rate (d).................................... 0% 0%
FT CBOE VEST NASDAQ-100(R) BUFFER ETF - MARCH (QMAR)
SIX MONTHS
ENDED PERIOD
2/28/2022 ENDED
(UNAUDITED) 8/31/2021 (a)
-------------- --------------
Net asset value, beginning of period........................... $ 22.22 $ 20.04
-------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss)................................... (0.12) (0.06)
Net realized and unrealized gain (loss)........................ (0.14) 2.24
-------- --------
Total from investment operations............................... (0.26) 2.18
-------- --------
Net asset value, end of period................................. $ 21.96 $ 22.22
======== ========
TOTAL RETURN (b)............................................... (1.17)% 10.88%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000's)........................... $ 15,369 $ 18,885
RATIOS TO AVERAGE NET ASSETS:
Ratio of total expenses to average net assets.................. 0.90% (c) 0.90% (c)
Ratio of net investment income (loss) to average net assets ... (0.90)% (c) (0.90)% (c)
Portfolio turnover rate (d).................................... 0% 0%
(a) Inception date is March 19, 2021, which is consistent with the
commencement of investment operations and is the date the initial creation
units were established.
(b) 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.
(c) Annualized.
(d) 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,
derivatives and in-kind transactions.
Page 46 See Notes to Financial Statements
FIRST TRUST EXCHANGE-TRADED FUND VIII
FINANCIAL HIGHLIGHTS (CONTINUED)
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
FT CBOE VEST INTERNATIONAL EQUITY BUFFER ETF - JUNE (YJUN)
SIX MONTHS
ENDED PERIOD
2/28/2022 ENDED
(UNAUDITED) 8/31/2021 (a)
-------------- --------------
Net asset value, beginning of period........................... $ 20.44 $ 19.95
-------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss)................................... (0.09) (0.02)
Net realized and unrealized gain (loss)........................ (1.07) 0.51
-------- --------
Total from investment operations............................... (1.16) 0.49
-------- --------
Net asset value, end of period................................. $ 19.28 $ 20.44
======== ========
TOTAL RETURN (b)............................................... (5.68)% 2.46%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000's)........................... $ 14,460 $ 13,285
RATIOS TO AVERAGE NET ASSETS:
Ratio of total expenses to average net assets.................. 0.90% (c) 0.90% (c)
Ratio of net investment income (loss) to average net assets ... (0.90)% (c) (0.90)%(c)
Portfolio turnover rate (d).................................... 0% 0%
FT CBOE VEST NASDAQ-100(R) BUFFER ETF - JUNE (QJUN)
SIX MONTHS
ENDED PERIOD
2/28/2022 ENDED
(UNAUDITED) 8/31/2021 (a)
-------------- --------------
Net asset value, beginning of period........................... $ 20.96 $ 19.87
-------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss)................................... (0.11) (0.03)
Net realized and unrealized gain (loss)........................ (0.56) 1.12
-------- --------
Total from investment operations............................... (0.67) 1.09
-------- --------
Net asset value, end of period................................. $ 20.29 $ 20.96
======== ========
TOTAL RETURN (b)............................................... (3.20)% 5.49%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000's)........................... $ 23,331 $ 33,533
RATIOS TO AVERAGE NET ASSETS:
Ratio of total expenses to average net assets.................. 0.90% (c) 0.90% (c)
Ratio of net investment income (loss) to average net assets ... (0.90)% (c) (0.90)% (c)
Portfolio turnover rate (d).................................... 0% 0%
(a) Inception date is June 18, 2021, which is consistent with the commencement
of investment operations and is the date the initial creation units were
established.
(b) 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.
(c) Annualized.
(d) 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,
derivatives and in-kind transactions.
See Notes to Financial Statements Page 47
FIRST TRUST EXCHANGE-TRADED FUND VIII
FINANCIAL HIGHLIGHTS (CONTINUED)
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
FT CBOE VEST U.S. EQUITY ENHANCE & MODERATE BUFFER ETF - JUNE (XJUN)
SIX MONTHS
ENDED PERIOD
2/28/2022 ENDED
(UNAUDITED) 8/31/2021 (a)
-------------- --------------
Net asset value, beginning of period........................... $ 30.11 $ 29.72
-------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss)................................... (0.06) (0.03)
Net realized and unrealized gain (loss)........................ (0.04) (b) 0.42
-------- --------
Total from investment operations............................... (0.10) 0.39
-------- --------
Net asset value, end of period................................. $ 30.01 $ 30.11
======== ========
TOTAL RETURN (c)............................................... (0.33)% 1.31%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000's)........................... $ 12,002 $ 6,023
RATIOS TO AVERAGE NET ASSETS:
Ratio of total expenses to average net assets.................. 0.85% (d) 0.85% (d)
Ratio of net investment income (loss) to average net assets ... (0.85)% (d) (0.85)% (d)
Portfolio turnover rate (e).................................... 0% 0%
(a) Inception date is July 12, 2021, which is consistent with the commencement
of investment operations and is the date the initial creation units were
established.
(b) The per share amount does not correlate with the aggregate realized and
unrealized gain (loss) due to the timing of the Fund share sales and
repurchases in relation to market value fluctuation of the underlying
investments.
(c) 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.
(d) Annualized.
(e) 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,
derivatives and in-kind transactions.
Page 48 See Notes to Financial Statements
FIRST TRUST EXCHANGE-TRADED FUND VIII
FINANCIAL HIGHLIGHTS (CONTINUED)
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
FT CBOE VEST INTERNATIONAL EQUITY BUFFER ETF - SEPTEMBER (YSEP)
PERIOD
ENDED
2/28/2022 (a)
(UNAUDITED)
--------------
Net asset value, beginning of period........................... $ 19.96
--------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss)................................... (0.04)
Net realized and unrealized gain (loss)........................ (0.94)
--------
Total from investment operations............................... (0.98)
--------
Net asset value, end of period................................. $ 18.98
========
TOTAL RETURN (b)............................................... (4.91)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000's)........................... $ 8,542
RATIOS TO AVERAGE NET ASSETS:
Ratio of total expenses to average net assets.................. 0.90% (c)
Ratio of net investment income (loss) to average net assets.... (0.90)% (c)
Portfolio turnover rate (d).................................... 0%
FT CBOE VEST NASDAQ-100(R) BUFFER ETF - SEPTEMBER (QSPT)
PERIOD
ENDED
2/28/2022 (a)
(UNAUDITED)
--------------
Net asset value, beginning of period........................... $ 20.19
--------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss)................................... (0.08)
Net realized and unrealized gain (loss)........................ (0.63)
--------
Total from investment operations............................... (0.71)
--------
Net asset value, end of period................................. $ 19.48
========
TOTAL RETURN (b)............................................... (3.52)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000's)........................... $ 24,348
RATIOS TO AVERAGE NET ASSETS:
Ratio of total expenses to average net assets.................. 0.90% (c)
Ratio of net investment income (loss) to average net assets.... (0.90)% (c)
Portfolio turnover rate (d).................................... 0%
(a) Inception date is September 17, 2021, which is consistent with the
commencement of investment operations and is the date the initial creation
units were established.
(b) 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 return presented does 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.
(c) Annualized.
(d) 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,
derivatives and in-kind transactions.
See Notes to Financial Statements Page 49
FIRST TRUST EXCHANGE-TRADED FUND VIII
FINANCIAL HIGHLIGHTS (CONTINUED)
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
FT CBOE VEST INTERNATIONAL EQUITY BUFFER ETF - DECEMBER (YDEC)
SIX MONTHS
ENDED PERIOD
2/28/2022 ENDED
(UNAUDITED) 8/31/2021 (a)
-------------- --------------
Net asset value, beginning of period........................... $ 21.85 $ 20.06
-------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss)................................... (0.09) (0.09)
Net realized and unrealized gain (loss)........................ (1.43) 1.88
-------- --------
Total from investment operations............................... (1.52) 1.79
-------- --------
Net asset value, end of period................................. $ 20.33 $ 21.85
======== ========
TOTAL RETURN (b)............................................... (6.96)% 8.92%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000's)........................... $ 11,184 $ 12,016
RATIOS TO AVERAGE NET ASSETS:
Ratio of total expenses to average net assets.................. 0.90% (c) 0.90% (c)
Ratio of net investment income (loss) to average net assets ... (0.90)% (c) (0.90)% (c)
Portfolio turnover rate (d).................................... 0% 0%
FT CBOE VEST NASDAQ-100(R) BUFFER ETF - DECEMBER (QDEC)
SIX MONTHS
ENDED PERIOD
2/28/2022 ENDED
(UNAUDITED) 8/31/2021 (a)
-------------- --------------
Net asset value, beginning of period........................... $ 22.56 $ 19.84
-------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss)................................... (0.04) (0.13)
Net realized and unrealized gain (loss)........................ (0.74) 2.85
-------- --------
Total from investment operations............................... (0.78) 2.72
-------- --------
Net asset value, end of period................................. $ 21.78 $ 22.56
======== ========
TOTAL RETURN (b)............................................... (3.46)% 13.71%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000's)........................... $104,521 $ 78,952
RATIOS TO AVERAGE NET ASSETS:
Ratio of total expenses to average net assets.................. 0.90% (c) 0.90% (c)
Ratio of net investment income (loss) to average net assets ... (0.90)% (c) (0.90)% (c)
Portfolio turnover rate (d).................................... 0% 0%
(a) Inception date is December 18, 2020, which is consistent with the
commencement of investment operations and is the date the initial creation
units were established.
(b) 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.
(c) Annualized.
(d) 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,
derivatives and in-kind transactions.
Page 50 See Notes to Financial Statements
FIRST TRUST EXCHANGE-TRADED FUND VIII
FINANCIAL HIGHLIGHTS (CONTINUED)
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
FT CBOE VEST U.S. EQUITY ENHANCE & MODERATE BUFFER ETF - DECEMBER (XDEC)
PERIOD
ENDED
2/28/2021 (a)
(UNAUDITED)
--------------
Net asset value, beginning of period........................... $ 30.35
--------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss)................................... (0.02)
Net realized and unrealized gain (loss)........................ (0.47)
--------
Total from investment operations............................... (0.49)
--------
Net asset value, end of period................................. $ 29.86
========
TOTAL RETURN (b)............................................... (1.61)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000's)........................... $ 35,832
RATIOS TO AVERAGE NET ASSETS:
Ratio of total expenses to average net assets.................. 0.85% (c)
Ratio of net investment income (loss) to average net assets.... (0.85)% (c)
Portfolio turnover rate (d).................................... 0%
(a) Inception date is December 17, 2021, which is consistent with the
commencement of investment operations and is the date the initial creation
units were established.
(b) 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 return presented does 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.
(c) Annualized.
(d) 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,
derivatives and in-kind transactions.
See Notes to Financial Statements Page 51
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
FIRST TRUST EXCHANGE-TRADED FUND VIII
FEBRUARY 28, 2022 (UNAUDITED)
1. ORGANIZATION
First Trust Exchange-Traded Fund VIII (the "Trust") is an open-end management
investment company organized as a Massachusetts business trust on February 22,
2016, 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 fifty-five funds that are offering shares. This
report covers the ten funds (each a "Fund" and collectively, "the Funds") listed
below. The shares of each Fund are listed and traded on the Cboe BZX Exchange,
Inc. ("Cboe BZX").
FT Cboe Vest International Equity Buffer ETF - March - (ticker "YMAR")
FT Cboe Vest Nasdaq-100(R) Buffer ETF - March - (ticker "QMAR")
FT Cboe Vest International Equity Buffer ETF - June - (ticker "YJUN")
FT Cboe Vest Nasdaq-100(R) Buffer ETF - June - (ticker "QJUN")
FT Cboe Vest U.S. Equity Enhance & Moderate Buffer ETF - June - (ticker
"XJUN")
FT Cboe Vest International Equity Buffer ETF - September - (ticker
"YSEP")(1)
FT Cboe Vest Nasdaq-100(R) Buffer ETF - September - (ticker "QSPT")(1)
FT Cboe Vest International Equity Buffer ETF - December - (ticker
"YDEC")
FT Cboe Vest Nasdaq-100(R) Buffer ETF - December - (ticker "QDEC")
FT Cboe Vest U.S. Equity Enhance & Moderate Buffer ETF - December -
(ticker "XDEC")(2)
(1) Commenced investment operations on September 17, 2021.
(2) Commenced investment operations on December 17, 2021.
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."
Each Fund is an actively managed exchange-traded fund.
The investment objective of YMAR is to seek to provide investors with returns
that match the price return of the iShares MSCI EAFE ETF (the "Underlying MSCI
ETF"), up to a predetermined upside cap of 14.18% (before fees and expenses) and
13.29% (after fees and expenses, excluding brokerage commissions, trading fees,
taxes and extraordinary expenses not included in the Fund's management fee),
while providing a buffer (before fees and expenses) against the first 10% of
Underlying MSCI ETF losses, over the period from March 22, 2021 to March 18,
2022.
The investment objective of QMAR is to seek to provide investors with returns
that match the price return of the Invesco QQQ Trust(SM), Series 1 (the
"Underlying Invesco ETF"), up to a predetermined upside cap of 15.51% (before
fees and expenses) and 14.61% (after fees and expenses, excluding brokerage
commissions, trading fees, taxes and extraordinary expenses not included in the
Fund's management fee), while providing a buffer (before fees, expenses and
taxes) against the first 10% of Underlying Invesco ETF losses, over the period
from March 22, 2021 to March 18, 2022.
The investment objective of YJUN is to seek to provide investors with returns
that match the price return of the Underlying MSCI ETF, up to a predetermined
upside cap of 11.81% (before fees and expenses) and 10.91% (after fees and
expenses, excluding brokerage commissions, trading fees, taxes and extraordinary
expenses not included in the Fund's management fee), while providing a buffer
(before fees and expenses) against the first 10% of Underlying MSCI ETF losses,
over the period from June 21, 2021 to June 17, 2022.
The investment objective of QJUN is to seek to provide investors with returns
that match the price return of the Underlying Invesco ETF, up to a predetermined
upside cap of 13.00% (before fees and expenses) and 12.10% (after fees and
expenses, excluding brokerage commissions, trading fees, taxes and extraordinary
expenses not included in the Fund's management fee), while providing a buffer
(before fees and expenses) against the first 10% of Underlying Invesco ETF
losses, over the period from June 21, 2021 to June 17, 2022.
The investment objective of XJUN is to seek to provide investors with returns of
approximately twice any positive price return of the SPDR(R) S&P 500(R) ETF
Trust (the "Underlying SPDR ETF"), up to a predetermined upside cap of 6.16%
(before fees and expenses) and 5.37% (after fees and expenses, excluding
brokerage commissions, trading fees, taxes and extraordinary expenses not
included in the Fund's management fee), while providing a buffer (before fees
and expenses) against the first 15% of Underlying SPDR ETF losses, over the
period from July 13, 2021 to June 17, 2022.
Page 52
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
--------------------------------------------------------------------------------
FIRST TRUST EXCHANGE-TRADED FUND VIII
FEBRUARY 28, 2022 (UNAUDITED)
The investment objective of YSEP is to seek to provide investors with returns
that match the price return of the Underlying MSCI ETF, up to a predetermined
upside cap of 12.93% (before fees, expenses and taxes) and 12.03% (after fees
and expenses, excluding brokerage commissions, trading fees, taxes and
extraordinary expenses not included in the Fund's management fee), while
providing a buffer against the first 10% (before fees, expenses and taxes) of
Underlying MSCI ETF losses, over the period from September 20, 2021 through
September 16, 2022.
The investment objective of QSPT is to seek to provide investors with returns
that match the price return of the Underlying Invesco ETF, up to a predetermined
upside cap of 13.65% (before fees, expenses and taxes) and 12.75% (after fees
and expenses, excluding brokerage commissions, trading fees, taxes and
extraordinary expenses not included in the Fund's management fee), while
providing a buffer against the first 10% (before fees, expenses and taxes) of
Underlying Invesco ETF losses, over the period from September 20, 2021 through
September 16, 2022.
The investment objective of YDEC is to seek to provide investors with returns
(before fees and expenses) that match the price return of the Underlying MSCI
ETF, up to a predetermined upside cap of 10.75% (before fees and expenses) and
9.85% (after fees and expenses, excluding brokerage commissions, trading fees,
taxes and extraordinary expenses not included in the Fund's management fee),
while providing a buffer against the first 10% (before fees and expenses) of
Underlying MSCI ETF losses, over the period from December 20, 2021 to December
16, 2022. Prior to December 20, 2021, the Fund's investment objective included
an upside cap of 13.79% (before fees, expenses and taxes) and 12.89% (after fees
and expenses, excluding brokerage commissions, trading fees, taxes and
extraordinary expenses not included in the Fund's management fee) and an Outcome
Period of December 21, 2020 to December 17, 2021.
The investment objective of QDEC is to seek to provide investors with returns
(before fees and expenses) that match the price return of the Underlying Invesco
ETF, up to a predetermined upside cap of 15.89% (before fees and expenses) and
14.99% (after fees and expenses, excluding brokerage commissions, trading fees,
taxes and extraordinary expenses not included in the Fund's management fee),
while providing a buffer against the first 10% (before fees and expenses) of
Underlying Invesco ETF losses, over the period from December 20, 2021 to
December 16, 2022. Prior to December 20, 2021, the Fund's investment objective
included an upside cap of 17.04% (before fees, expenses and taxes) and 16.14%
(after fees and expenses, excluding brokerage commissions, trading fees, taxes
and extraordinary expenses not included in the Fund's management fee) and an
Outcome Period of December 21, 2020 to December 17, 2021.
The investment objective of XDEC is to seek to provide investors with returns of
approximately twice any positive price return of the Underlying SPDR ETF, up to
a predetermined upside cap of 8.58% (before fees, expenses and taxes) and 7.73%
(after fees and expenses, excluding brokerage commissions, trading fees, taxes
and extraordinary expenses not included in the Fund's management fee), while
providing a buffer against the first 15% (before fees, expenses and taxes) of
Underlying SPDR ETF losses, over the period from December 20, 2021 through
December 16, 2022.
Under normal market conditions, each Fund will invest substantially all of its
assets in FLexible EXchange(R) Options ("FLEX Options") that reference the price
performance that match those of a specified reference ETF, either the SPDR(R)
S&P 500(R) ETF Trust, the Invesco QQQ Trust(SM) Series 1 ETF, or the iShares
MSCI EAFE ETF (the "Underlying ETF").
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.
A. PORTFOLIO VALUATION
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 the 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 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'
Page 53
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NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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FIRST TRUST EXCHANGE-TRADED FUND VIII
FEBRUARY 28, 2022 (UNAUDITED)
investment advisor, First Trust Advisors L.P. ("First Trust" or the "Advisor"),
in accordance with valuation procedures adopted by the Trust's Board of
Trustees, and in accordance with provisions of the 1940 Act. 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:
Exchange-traded options contracts (other than FLEX Option 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 fair valued at the mean of their most recent bid and
asked price, if available, and otherwise at their closing bid price.
Over-the-counter options contracts are fair valued at the mean of their
most recent bid and asked price, if available, and otherwise at their
closing bid price. FLEX Option contracts are normally valued using a
model-based price provided by a third-party pricing vendor. On days when a
trade in a FLEX Option contract occurs, the trade price will be used to
value such FLEX Option contracts in lieu of the model price.
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 principal market for such securities.
Shares of open-end funds are valued at fair value which is based on NAV
per share.
Certain securities may not be able to be priced by pre-established pricing
methods. Such securities may be valued by the Trust's Board of Trustees or its
delegate, 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 type of security;
2) the size of the holding;
3) the initial cost of the security;
4) transactions in comparable securities;
5) price quotes from dealers and/or third-party pricing services;
6) relationships among various securities;
7) information obtained by contacting the issuer, analysts, or the
appropriate stock exchange;
8) an analysis of the issuer's financial statements; and
9) the existence of merger proposals or tender offers that might affect
the value of the security.
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:
o 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.
o 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.
o 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.
Page 54
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NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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FIRST TRUST EXCHANGE-TRADED FUND VIII
FEBRUARY 28, 2022 (UNAUDITED)
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 February 28, 2022, 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.
C. FLEX OPTIONS
FLEX Options are customized equity or index option contracts that trade on an
exchange, but provide investors with the ability to customize key contract terms
like exercise prices, styles and expiration dates. FLEX Options are guaranteed
for settlement by the Options Clearing Corporation.
Each Fund purchases and sells call and put FLEX Options based on the performance
of the Underlying ETF. The FLEX Options that each Fund holds that reference the
Underlying ETF will give each Fund the right to receive or deliver shares of the
Underlying ETF on the option expiration date at a strike price, depending on
whether the option is a put or call option and whether each Fund purchases or
sells the option. The FLEX Options held by each Fund are European style options,
which are exercisable at the strike price only on the FLEX Option expiration
date. All options held by each Fund at February 28, 2022 are FLEX Options.
D. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income of each Fund, if any, are declared and paid
annually, or as the Board of Trustees may determine from time to time.
Distributions of net realized gains earned by each Fund, if any, are distributed
at least annually.
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. During their applicable taxable periods
ended, none of the Funds paid a distribution in 2021.
As of August 31, 2021, the components of distributable earnings on a tax basis
for each Fund were as follows:
Accumulated Net
Undistributed Capital and Unrealized
Ordinary Other Appreciation
Income Gain (Loss) (Depreciation)
------------- ------------- --------------
FT Cboe Vest International Equity Buffer ETF - March $ (24,298) $ -- $ 250,620
FT Cboe Vest Nasdaq-100(R) Buffer ETF - March (51,575) 3,818 1,269,433
FT Cboe Vest International Equity Buffer ETF - June (12,534) -- 249,407
FT Cboe Vest Nasdaq-100(R) Buffer ETF - June (38,545) -- 1,073,979
FT Cboe Vest U.S. Equity Enhance & Moderate Buffer ETF - June (5,184) -- 69,967
FT Cboe Vest International Equity Buffer ETF - December (51,235) -- 706,330
FT Cboe Vest Nasdaq-100(R) Buffer ETF - December (298,323) 853,295 8,678,226
E. INCOME TAXES
Each Fund intends 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 year ended 2021
remains open to federal and state audit. As of February 28, 2022, 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.
Page 55
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NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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FIRST TRUST EXCHANGE-TRADED FUND VIII
FEBRUARY 28, 2022 (UNAUDITED)
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 each Fund's applicable
taxable year end, the Funds had no capital loss carryforwards for federal income
tax purposes.
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. At each Fund's applicable taxable year end, the Funds had
no net late year ordinary or capital losses.
As of February 28, 2022, 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:
Net
Gross Gross Unrealized
Unrealized Unrealized Appreciation
Tax Cost Appreciation (Depreciation) (Depreciation)
-------------- -------------- -------------- --------------
FT Cboe Vest International Equity Buffer ETF - March $ 16,403,158 $ 333,425 $ (869,290) $ (535,865)
FT Cboe Vest Nasdaq-100(R) Buffer ETF - March 14,280,256 2,160,072 (1,060,600) 1,099,472
FT Cboe Vest International Equity Buffer ETF - June 15,012,916 421,728 (964,710) (542,982)
FT Cboe Vest Nasdaq-100(R) Buffer ETF - June 23,177,454 925,642 (756,120) 169,522
FT Cboe Vest U.S. Equity Enhance & Moderate Buffer
ETF - June 11,924,630 441,565 (356,251) 85,314
FT Cboe Vest International Equity Buffer ETF - September 8,920,962 341,908 (715,891) (373,983)
FT Cboe Vest Nasdaq-100(R) Buffer ETF - September 25,307,675 1,025,364 (1,967,139) (941,775)
FT Cboe Vest International Equity Buffer ETF - December 11,541,234 304,326 (653,640) (349,314)
FT Cboe Vest Nasdaq-100(R) Buffer ETF - December 109,585,300 5,733,108 (10,727,839) (4,994,731)
FT Cboe Vest U.S. Equity Enhance & Moderate Buffer
ETF - December 36,048,903 1,077,834 (1,274,069) (196,235)
F. EXPENSES
Expenses, other than the investment advisory fee and other excluded expenses,
are paid by the Advisor (see Note 3).
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 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 paid an annual unitary management fee of 0.90% of each Fund's
average daily net assets with the exception of XJUN and XDEC which pay an annual
unitary management fee of 0.85%.
First Trust and Cboe Vest(SM) Financial LLC ("Cboe Vest"), an affiliate of First
Trust, are responsible for each Fund's expenses, including the cost of transfer
agency, sub-advisory, custody, fund administration, legal, audit and other
services, but excluding fee payments under the Investment Management Agreement,
interest, taxes, acquired fund fees and expenses, if any, brokerage commissions
and other expenses connected with the execution of portfolio transactions,
distribution and service fees payable pursuant to a Rule 12b-1 plan, if any, and
extraordinary expenses.
Cboe Vest serves as the Funds' sub-advisor and manages each Fund's portfolio
subject to First Trust's supervision. Pursuant to the Investment Management
Agreement, between the Trust, on behalf of the Funds, and the Advisor, and the
Investment Sub-Advisory Agreement among the Trust, on behalf of the Funds, the
Advisor and Cboe Vest, First Trust will supervise Cboe Vest and its management
of the investment of each Fund's assets and will pay Cboe Vest for its services
as the Funds' sub-advisor a sub-advisory fee equal to 50% of any remaining
monthly unitary management fee paid to the Advisor, after the average Fund's
expenses accrued during the most recent twelve months are subtracted from the
unitary management fee for that month.
Page 56
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NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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FIRST TRUST EXCHANGE-TRADED FUND VIII
FEBRUARY 28, 2022 (UNAUDITED)
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 defined-outcome fund or an index fund.
Additionally, the Lead Independent Trustee and the Chairs of the Audit
Committee, Nominating and Governance Committee and Valuation Committee 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 Lead Independent Trustee and Committee Chairs
rotate every three years. The officers and "Interested" Trustee receive no
compensation from the Trust for acting in such capacities.
4. PURCHASES AND SALES OF SECURITIES
For the period ended February 28, 2022, the Funds had no purchases or sales of
investments, excluding short-term investments and in-kind transactions. Each
Fund holds options for a target outcome period of approximately one year based
on the expiration date of the options, which occurs on the third Friday of the
month corresponding to the month in each Fund name. For securities transactions
purposes, the options are considered short-term investments.
For the period ended February 28, 2022, the cost of in-kind purchases and
proceeds from in-kind sales for each Fund were as follows:
Purchases Sales
-------------- --------------
FT Cboe Vest International Equity Buffer ETF - March $ -- $ --
FT Cboe Vest Nasdaq-100(R) Buffer ETF - March -- --
FT Cboe Vest International Equity Buffer ETF - June 1,021,655 995,545
FT Cboe Vest Nasdaq-100(R) Buffer ETF - June -- 1,013,022
FT Cboe Vest U.S. Equity Enhance & Moderate Buffer ETF - June -- --
FT Cboe Vest International Equity Buffer ETF - September 1,987,077 975,314
FT Cboe Vest Nasdaq-100(R) Buffer ETF - September 8,035,517 1,036,058
FT Cboe Vest International Equity Buffer ETF - December -- 12,807,114
FT Cboe Vest Nasdaq-100(R) Buffer ETF - December -- 65,078,165
FT Cboe Vest U.S. Equity Enhance & Moderate Buffer ETF - December -- --
5. DERIVATIVE TRANSACTIONS
The following table presents the types of derivatives held by each Fund at
February 28, 2022, the primary underlying risk exposure and the location of
these instruments as presented on the Statements of Assets and Liabilities.
ASSET DERIVATIVES LIABILITY DERIVATIVES
----------------------------------------- -----------------------------------------
DERIVATIVES STATEMENTS OF ASSETS AND STATEMENTS OF ASSETS AND
INSTRUMENT RISK EXPOSURE LIABILITIES LOCATION VALUE LIABILITIES LOCATION VALUE
------------------ ------------------ -------------------------- ------------ -------------------------- ------------
YMAR
Options contracts Options contracts
Options Equity Risk purchased, at value $ 15,948,537 written, at value $ 153,952
QMAR
Options contracts Options contracts
Options Equity Risk purchased, at value 15,475,565 written, at value 139,871
YJUN
Options contracts Options contracts
Options Equity Risk purchased, at value 14,922,697 written, at value 553,540
Page 57
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NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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FIRST TRUST EXCHANGE-TRADED FUND VIII
FEBRUARY 28, 2022 (UNAUDITED)
ASSET DERIVATIVES LIABILITY DERIVATIVES
----------------------------------------- -----------------------------------------
DERIVATIVES STATEMENTS OF ASSETS AND STATEMENTS OF ASSETS AND
INSTRUMENT RISK EXPOSURE LIABILITIES LOCATION VALUE LIABILITIES LOCATION VALUE
------------------ ------------------ -------------------------- ------------ -------------------------- ------------
QJUN
Options contracts Options contracts
Options Equity Risk purchased, at value $ 24,138,096 written, at value $ 911,375
XJUN
Options contracts Options contracts
Options Equity Risk purchased, at value 12,842,860 written, at value 905,571
YSEP
Options contracts Options contracts
Options Equity Risk purchased, at value 8,973,414 written, at value 505,967
QSPT
Options contracts Options contracts
Options Equity Risk purchased, at value 25,876,928 written, at value 1,704,964
YDEC
Options contracts Options contracts
Options Equity Risk purchased, at value 11,770,492 written, at value 712,126
QDEC
Options contracts Options contracts
Options Equity Risk purchased, at value 113,367,981 written, at value 9,903,063
XDEC
Options contracts Options contracts
Options Equity Risk purchased, at value 39,113,089 written, at value 3,621,719
The following table presents the amount of net realized gain (loss) and change
in net unrealized appreciation (depreciation) recognized for the period ended
February 28, 2022, on each Fund's derivative instruments, as well as the primary
underlying risk exposure associated with the instruments.
EQUITY RISK
----------------------------------------------------------------
STATEMENTS OF OPERATIONS LOCATION YMAR QMAR YJUN QJUN XJUN
------------------------------------- ----------------------------------------------------------------
Net realized gain (loss) on:
Purchased options contracts $ (72,710) $ 93,666 $ (78,526) $ 360,175 $ 19,173
Written options contracts 56,491 (43,568) 117,732 (52,697) (18,831)
Net change in unrealized
appreciation (depreciation) on:
Purchased options contracts (881,078) (1,847,983) (783,878) (2,265,018) (580,524)
Written options contracts 94,593 1,664,622 (8,511) 1,360,561 595,871
EQUITY RISK
----------------------------------------------------------------
STATEMENTS OF OPERATIONS LOCATION YSEP QSPT YDEC QDEC XDEC
------------------------------------- ----------------------------------------------------------------
Net realized gain (loss) on:
Purchased options contracts $ 18,274 $ (15,084) $ (346,118) $ 7,649,446 $ (12,903)
Written options contracts 5,066 169,680 490,673 2,695,244 4,033
Net change in unrealized
appreciation (depreciation) on:
Purchased options contracts (276,505) (1,335,179) (720,200) (13,999,842) (1,040,220)
Written options contracts (97,478) 393,404 (335,444) 142,151 843,985
The Funds do not have the right to offset financial assets and financial
liabilities related to options contracts on the Statements of Assets and
Liabilities.
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NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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FIRST TRUST EXCHANGE-TRADED FUND VIII
FEBRUARY 28, 2022 (UNAUDITED)
The following table presents the premiums for purchased options contracts
opened, premiums for purchased options contracts closed, exercised and expired,
premiums for written options contracts opened, and premiums for written options
contracts closed, exercised and expired, for the period ended February 28, 2022,
on each Fund's options contracts.
PREMIUMS FOR PREMIUMS FOR
PREMIUMS FOR PURCHASED WRITTEN OPTIONS
PURCHASED OPTIONS CONTRACTS PREMIUMS FOR CONTRACTS CLOSED,
OPTIONS CONTRACTS CLOSED, EXERCISED WRITTEN OPTIONS EXERCISED AND
OPENED AND EXPIRED CONTRACTS OPENED EXPIRED
----------------------------------------------------------------------------
YMAR $ 9,336,926 $ 5,392,987 $ 106,942 $ 160,057
QMAR 2,450,212 5,995,713 206,075 510,990
YJUN 9,275,254 7,273,942 333,835 346,932
QJUN 4,278,990 14,315,026 245,386 1,174,376
XJUN 8,239,727 1,689,372 799,407 206,093
YSEP 10,263,446 1,013,527 470,042 61,553
QSPT 39,232,004 12,019,897 3,119,079 1,020,711
YDEC 34,749,539 34,432,540 981,241 829,184
QDEC 190,103,117 147,786,911 16,412,077 12,804,144
XDEC 41,805,862 1,652,553 4,642,076 176,372
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
large blocks of shares known as "Creation Units." Prior to the start of trading
on every business day, a Fund publishes through the National Securities Clearing
Corporation ("NSCC") 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.
7. DISTRIBUTION PLAN
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
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NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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FIRST TRUST EXCHANGE-TRADED FUND VIII
FEBRUARY 28, 2022 (UNAUDITED)
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 December 31, 2022 for
YDEC and QDEC, March 8, 2023 for YMAR and QMAR, June 1, 2023 for YJUN and QJUN,
June 28, 2023 for XJUN, September 1, 2023 for YSEP and QSPT, and December 10,
2023 for XDEC.
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.
9. SUBSEQUENT EVENTS
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 the following subsequent events:
As of March 21, 2022, the investment objective of the FT Cboe Vest International
Equity Buffer ETF - March changed to include an upside cap of 20.70% (before
fees, expenses and taxes) and 19.80% (after fees and expenses, excluding
brokerage commissions, trading fees, taxes and extraordinary expenses not
included in the Fund's management fee) and an Outcome Period of March 21, 2022
to March 17, 2023.
As of March 21, 2022, the investment objective of the FT Cboe Vest Nasdaq-100
Buffer ETF - March changed to include an upside cap of 17.25% (before fees,
expenses and taxes) and 16.35% (after fees and expenses, excluding brokerage
commissions, trading fees, taxes and extraordinary expenses not included in the
Fund's management fee) and an Outcome Period of March 21, 2022 to March 17,
2023.
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FIRST TRUST EXCHANGE-TRADED FUND VIII
FEBRUARY 28, 2022 (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.
PORTFOLIO HOLDINGS
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.
RISK CONSIDERATIONS
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.
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.
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FIRST TRUST EXCHANGE-TRADED FUND VIII
FEBRUARY 28, 2022 (UNAUDITED)
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. 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.
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FIRST TRUST EXCHANGE-TRADED FUND VIII
FEBRUARY 28, 2022 (UNAUDITED)
MARKET RISK. 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 outbreak of the respiratory disease
designated as COVID-19 in December 2019 has caused significant volatility and
declines in global financial markets, which have caused losses for investors.
While the development of vaccines has slowed the spread of the virus and allowed
for the resumption of "reasonably" normal business activity in the United
States, many countries continue to impose lockdown measures in an attempt to
slow the spread. Additionally, there is no guarantee that vaccines will be
effective against emerging variants of the disease.
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.
DISCLAIMER
The funds are not sponsored, endorsed, sold or promoted by Invesco QQQ
Trust(SM), Series 1, Invesco, or Nasdaq, Inc., (together with their affiliates
hereinafter referred to as the "Corporations"). The Corporations have not passed
on the legality or suitability of, or the accuracy or adequacy of, descriptions
and disclosures relating to the funds or the FLEX Options. The Corporations make
no representations or warranties, express or implied, regarding the advisability
of investing in the funds or the FLEX Options or results to be obtained by the
funds or the FLEX Options, shareholders or any other person or entity from use
of the Invesco QQQ Trust(SM). The Corporations have no liability in connection
with the management, administration, marketing or trading of the funds or the
FLEX Options.
MSCI EAFE ETF, BFA, or MSCI Inc., (together with their affiliates hereinafter
referred to as the "Corporations") have not passed on the legality or
suitability of, or the accuracy or adequacy of, descriptions and disclosures
relating to funds or the FLEX Options. The Corporations make no representations
or warranties, express or implied, regarding the advisability of investing in
the funds or the FLEX Options or results to be obtained by the funds or the FLEX
Options, shareholders or any other person or entity from use of iShares MSCI
EAFE ETF. The Corporations have no liability in connection with the management,
administration, marketing or trading of the funds or the FLEX Options.
The funds are not sponsored, endorsed, sold or promoted by SPDR(R) S&P 500(R)
ETF Trust, PDR, or Standard & Poor's(R) (together with their affiliates
hereinafter referred to as the "Corporations"). The Corporations have not passed
on the legality or suitability of, or the accuracy or adequacy of, descriptions
and disclosures relating to the funds or the FLEX Options. The Corporations make
no representations or warranties, express or implied, regarding the advisability
of investing in the funds or the FLEX Options or results to be obtained by the
funds or the FLEX Options, shareholders or any other person or entity from use
of the SPDR(R) S&P 500(R) ETF Trust. The Corporations have no liability in
connection with the management, administration, marketing or trading of the
funds or the FLEX Options.
NOT FDIC INSURED NOT BANK GUARANTEED MAY LOSE VALUE
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FIRST TRUST EXCHANGE-TRADED FUND VIII
FEBRUARY 28, 2022 (UNAUDITED)
ADVISORY AND SUB-ADVISORY AGREEMENTS
BOARD CONSIDERATIONS REGARDING APPROVAL OF INVESTMENT MANAGEMENT AGREEMENT
AND INVESTMENT SUB-ADVISORY AGREEMENT FOR
FT CBOE VEST INTERNATIONAL EQUITY BUFFER ETF - SEPTEMBER
The Board of Trustees of First Trust Exchange-Traded Fund VIII (the "Trust"),
including the Independent Trustees, approved the Investment Management Agreement
(the "Advisory Agreement") with First Trust Advisors L.P. (the "Advisor"), on
behalf of FT Cboe Vest International Equity Buffer ETF - September (the "Fund"),
and the Investment Sub-Advisory Agreement (the "Sub-Advisory Agreement" and
together with the Advisory Agreement, the "Agreements") among the Trust, on
behalf of the Fund, the Advisor and Cboe Vest Financial LLC (the "Sub-Advisor")
for an initial two-year term at a meeting held on December 7, 2020. The Board
determined that the Agreements are in the best interests of the Fund in light of
the nature, extent and quality of the services expected to be provided and such
other matters as the Board considered to be relevant in the exercise of its
reasonable business judgment.
To reach this determination, the Board considered its duties under the
Investment Company Act of 1940, as amended (the "1940 Act"), as well as under
the general principles of state law, in reviewing and approving advisory
contracts; the requirements of the 1940 Act in such matters; the fiduciary duty
of investment advisors with respect to advisory agreements and compensation; the
standards used by courts in determining whether investment company boards have
fulfilled their duties; and the factors to be considered by the Board in voting
on such agreements. To assist the Board in its evaluation of the Agreements for
the Fund, the Independent Trustees received a separate report from each of the
Advisor and the Sub-Advisor in advance of the Board meeting responding to
requests for information from counsel to the Independent Trustees, submitted on
behalf of the Independent Trustees, that, among other things, outlined: the
services to be provided by the Advisor and the Sub-Advisor to the Fund
(including the relevant personnel responsible for these services and their
experience); the proposed unitary fee rate payable by the Fund as compared to
fees charged to a peer group of funds (the "Expense Group") and a broad peer
universe of funds (the "Expense Universe"), each assembled by Broadridge
Financial Solutions, Inc. ("Broadridge"), an independent source, and as compared
to fees charged to other exchange-traded funds ("ETFs") managed by the Advisor;
the proposed sub-advisory fee rate as compared to fees charged to other clients
of the Sub-Advisor; the estimated expense ratio of the Fund as compared to
expense ratios of the funds in the Fund's Expense Group and Expense Universe;
the nature of expenses to be incurred in providing services to the Fund and the
potential for the Advisor and the Sub-Advisor to realize economies of scale, if
any; profitability and other financial data for the Advisor; financial data for
the Sub-Advisor; any fall-out benefits to the Advisor and its affiliates, First
Trust Portfolios L.P. ("FTP") and First Trust Capital Partners, LLC ("FTCP"),
and the Sub-Advisor; and information on the Advisor's and the Sub-Advisor's
compliance programs. The Independent Trustees and their counsel also met
separately to discuss the information provided by the Advisor and the
Sub-Advisor. The Board applied its business judgment to determine whether the
arrangements between the Trust and the Advisor and among the Trust, the Advisor
and the Sub-Advisor are reasonable business arrangements from the Fund's
perspective.
In evaluating whether to approve the Agreements for the Fund, the Board
considered the nature, extent and quality of the services to be provided by the
Advisor and the Sub-Advisor under the Agreements. With respect to the Advisory
Agreement, the Board considered that the Advisor will be responsible for the
overall management and administration of the Fund and reviewed all of the
services to be provided by the Advisor to the Fund, including the oversight of
the Sub-Advisor, as well as the background and experience of the persons
responsible for such services. The Board considered that the Fund will be an
actively-managed ETF and will employ an advisor/sub-advisor management structure
and considered that the Advisor manages other ETFs with a similar structure in
the First Trust Fund Complex. The Board noted that the Advisor will oversee the
Sub-Advisor's day-to-day management of the Fund's investments, including
portfolio risk monitoring and performance review. In reviewing the services to
be provided, the Board noted the compliance program that had been developed by
the Advisor and considered that it includes a robust program for monitoring the
Advisor's, the Sub-Advisor's and the Fund's compliance with the 1940 Act, as
well as the Fund's compliance with its investment objective, policies and
restrictions. The Board noted that employees of the Advisor provide management
services to other ETFs and to other funds in the First Trust Fund Complex with
diligence and care. With respect to the Sub-Advisory Agreement, in addition to
the written materials provided by the Sub-Advisor, at the December 7, 2020
meeting, the Board also received a presentation from representatives of the
Sub-Advisor discussing the services that the Sub-Advisor will provide to the
Fund, and the Trustees were able to ask questions about the proposed investment
strategy for the Fund. The Board noted the background and experience of the
Sub-Advisor's portfolio management team and the Sub-Advisor's investment style.
The Board also noted that the Sub-Advisor manages a number of other
defined-outcome ETFs with strategies similar to those of the Funds in the First
Trust Fund Complex. Because the Fund had yet to commence investment operations,
the Board could not consider the historical investment performance of the Fund.
In light of the information presented and the considerations made, the Board
concluded that the nature, extent and quality of the services to be provided to
the Fund by the Advisor and the Sub-Advisor under the Agreements are expected to
be satisfactory.
The Board considered the proposed unitary fee rate payable by the Fund under the
Advisory Agreement for the services to be provided. The Board noted that, under
the unitary fee arrangement, the Fund would pay the Advisor a unitary fee equal
to an annual rate of 0.90% of its average daily net assets. The Board considered
that, from the unitary fee for the Fund, the Advisor would pay the Sub-Advisor a
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FIRST TRUST EXCHANGE-TRADED FUND VIII
FEBRUARY 28, 2022 (UNAUDITED)
sub-advisory fee equal to 50% of the Fund's unitary fee less one-half of the
Fund's expenses. The Board noted that the Advisor and the Sub-Advisor would be
responsible for the Fund's expenses, including the cost of sub-advisory,
transfer agency, custody, fund administration, legal, audit and other services
and license fees, if any, but excluding the fee payment under the Advisory
Agreement and interest, taxes, acquired fund fees and expenses, if any,
brokerage commissions and other expenses connected with the execution of
portfolio transactions, distribution and service fees pursuant to a Rule 12b-1
plan, if any, and extraordinary expenses, if any. The Board received and
reviewed information showing the advisory or unitary fee rates and expense
ratios of the peer funds in the Expense Group, as well as advisory and unitary
fee rates charged by the Advisor and the Sub-Advisor to other fund (including
ETF) and non-fund clients, as applicable. Because the Fund will pay a unitary
fee, the Board determined that expense ratios were the most relevant comparative
data point. Based on the information provided, the Board noted that the unitary
fee rate for the Fund was equal to the median total (net) expense ratio of the
peer funds in the Expense Group. With respect to the Expense Group, the Board
discussed with representatives of the Advisor how the Expense Group was
assembled and how the Fund compared and differed from the peer funds. The Board
took this information into account in considering the peer data. With respect to
fees charged to other clients, the Board considered the Advisor's statement that
the Fund will be unique to the market and the First Trust Fund Complex, but will
be most similar to the ETFs in the FT Cboe Vest U.S. Equity Target Outcome ETF
product line in the First Trust Fund Complex that are managed by the Advisor and
sub-advised by the Sub-Advisor, as well as two other actively-managed ETFs in
the First Trust Fund Complex that are managed by the Advisor and employ
options-based strategies, each of which pays a unitary fee equal to an annual
rate of 0.85% of its average daily net assets. In light of the information
considered and the nature, extent and quality of the services expected to be
provided to the Fund under the Agreements, the Board determined that the
proposed unitary fee, including the sub-advisory fee to be paid by the Advisor
to the Sub-Advisor from the unitary fee, was fair and reasonable.
The Board noted that the proposed unitary fee for the Fund was not structured to
pass on to shareholders the benefits of any economies of scale as the Fund's
assets grow. The Board noted that any reduction in fixed costs associated with
the management of the Fund would benefit the Advisor and the Sub-Advisor, but
that the unitary fee structure provides a level of certainty in expenses for the
Fund. The Board noted that the Advisor has continued to hire personnel and build
infrastructure, including technology, to improve the services to the funds in
the First Trust Fund Complex. The Board took into consideration the types of
costs to be borne by the Advisor in connection with its services to be performed
for the Fund under the Advisory Agreement. The Board considered the Advisor's
estimate of the asset level for the Fund at which the Advisor expects the
Advisory Agreement to be profitable to the Advisor and the Advisor's estimate of
the profitability of the Advisory Agreement if the Fund's assets reach $100
million. The Board noted the inherent limitations in the profitability analysis
and concluded that, based on the information provided, the Advisor's estimated
profitability level for the Fund was not unreasonable. The Board reviewed
financial information provided by the Sub-Advisor, but did not review any
potential profitability of the Sub-Advisory Agreement to the Sub-Advisor. The
Board considered that the Sub-Advisor would be paid by the Advisor from the
Fund's unitary fee and its understanding that the sub-advisory fee rate was the
product of an arm's length negotiation. In addition, the Board considered
fall-out benefits described by the Advisor that may be realized from its
relationship with the Fund. The Board noted that FTCP has a controlling
ownership interest in the Sub-Advisor's parent company and considered potential
fall-out benefits to the Advisor from such ownership interest. The Board also
considered that the Advisor had identified as a fall-out benefit to the Advisor
and FTP their exposure to investors and brokers who, absent their exposure to
the Fund, may have had no dealings with the Advisor or FTP. The Board also
considered the potential fall-out benefits to the Sub-Advisor from FTCP's
controlling ownership interest in the Sub-Advisor's parent company. The Board
noted the Sub-Advisor's statements that it does not foresee any fall-out
benefits from its relationship with the Fund and that, as a policy, it does not
enter into soft-dollar arrangements for the procurement of research services in
connection with client securities transactions. The Board concluded that the
character and amount of potential fall-out benefits to the Advisor and the
Sub-Advisor were not unreasonable.
Based on all of the information considered and the conclusions reached, the
Board, including the Independent Trustees, determined that the terms of the
Agreements are fair and reasonable and that the approval of the Agreements is in
the best interests of the Fund. No single factor was determinative in the
Board's analysis.
BOARD CONSIDERATIONS REGARDING APPROVAL OF INVESTMENT MANAGEMENT AGREEMENT
AND INVESTMENT SUB-ADVISORY AGREEMENT FOR
FT CBOE VEST NASDAQ-100(R) BUFFER ETF - SEPTEMBER
The Board of Trustees of First Trust Exchange-Traded Fund VIII (the "Trust"),
including the Independent Trustees, approved the Investment Management Agreement
(the "Advisory Agreement") with First Trust Advisors L.P. (the "Advisor"), on
behalf of FT Cboe Vest Nasdaq-100(R) Buffer ETF - September (the "Fund"), and
the Investment Sub-Advisory Agreement (the "Sub-Advisory Agreement" and together
with the Advisory Agreement, the "Agreements") among the Trust, on behalf of the
Fund, the Advisor and Cboe Vest Financial LLC (the "Sub-Advisor") for an initial
two-year term at a meeting held on December 7, 2020. The Board determined that
the Agreements are in the best interests of the Fund in light of the nature,
extent and quality of the services expected to be provided and such other
matters as the Board considered to be relevant in the exercise of its reasonable
business judgment.
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ADDITIONAL INFORMATION (CONTINUED)
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FIRST TRUST EXCHANGE-TRADED FUND VIII
FEBRUARY 28, 2022 (UNAUDITED)
To reach this determination, the Board considered its duties under the
Investment Company Act of 1940, as amended (the "1940 Act"), as well as under
the general principles of state law, in reviewing and approving advisory
contracts; the requirements of the 1940 Act in such matters; the fiduciary duty
of investment advisors with respect to advisory agreements and compensation; the
standards used by courts in determining whether investment company boards have
fulfilled their duties; and the factors to be considered by the Board in voting
on such agreements. To assist the Board in its evaluation of the Agreements for
the Fund, the Independent Trustees received a separate report from each of the
Advisor and the Sub-Advisor in advance of the Board meeting responding to
requests for information from counsel to the Independent Trustees, submitted on
behalf of the Independent Trustees, that, among other things, outlined: the
services to be provided by the Advisor and the Sub-Advisor to the Fund
(including the relevant personnel responsible for these services and their
experience); the proposed unitary fee rate payable by the Fund as compared to
fees charged to a peer group of funds (the "Expense Group") and a broad peer
universe of funds (the "Expense Universe"), each assembled by Broadridge
Financial Solutions, Inc. ("Broadridge"), an independent source, and as compared
to fees charged to other exchange-traded funds ("ETFs") managed by the Advisor;
the proposed sub-advisory fee rate as compared to fees charged to other clients
of the Sub-Advisor; the estimated expense ratio of the Fund as compared to
expense ratios of the funds in the Fund's Expense Group and Expense Universe;
the nature of expenses to be incurred in providing services to the Fund and the
potential for the Advisor and the Sub-Advisor to realize economies of scale, if
any; profitability and other financial data for the Advisor; financial data for
the Sub-Advisor; any fall-out benefits to the Advisor and its affiliates, First
Trust Portfolios L.P. ("FTP") and First Trust Capital Partners, LLC ("FTCP"),
and the Sub-Advisor; and information on the Advisor's and the Sub-Advisor's
compliance programs. The Independent Trustees and their counsel also met
separately to discuss the information provided by the Advisor and the
Sub-Advisor. The Board applied its business judgment to determine whether the
arrangements between the Trust and the Advisor and among the Trust, the Advisor
and the Sub-Advisor are reasonable business arrangements from the Fund's
perspective.
In evaluating whether to approve the Agreements for the Fund, the Board
considered the nature, extent and quality of the services to be provided by the
Advisor and the Sub-Advisor under the Agreements. With respect to the Advisory
Agreement, the Board considered that the Advisor will be responsible for the
overall management and administration of the Fund and reviewed all of the
services to be provided by the Advisor to the Fund, including the oversight of
the Sub-Advisor, as well as the background and experience of the persons
responsible for such services. The Board considered that the Fund will be an
actively-managed ETF and will employ an advisor/sub-advisor management structure
and considered that the Advisor manages other ETFs with a similar structure in
the First Trust Fund Complex. The Board noted that the Advisor will oversee the
Sub-Advisor's day-to-day management of the Fund's investments, including
portfolio risk monitoring and performance review. In reviewing the services to
be provided, the Board noted the compliance program that had been developed by
the Advisor and considered that it includes a robust program for monitoring the
Advisor's, the Sub-Advisor's and the Fund's compliance with the 1940 Act, as
well as the Fund's compliance with its investment objective, policies and
restrictions. The Board noted that employees of the Advisor provide management
services to other ETFs and to other funds in the First Trust Fund Complex with
diligence and care. With respect to the Sub-Advisory Agreement, in addition to
the written materials provided by the Sub-Advisor, at the December 7, 2020
meeting, the Board also received a presentation from representatives of the
Sub-Advisor discussing the services that the Sub-Advisor will provide to the
Fund, and the Trustees were able to ask questions about the proposed investment
strategy for the Fund. The Board noted the background and experience of the
Sub-Advisor's portfolio management team and the Sub-Advisor's investment style.
The Board also noted that the Sub-Advisor manages a number of other
defined-outcome ETFs with strategies similar to those of the Funds in the First
Trust Fund Complex. Because the Fund had yet to commence investment operations,
the Board could not consider the historical investment performance of the Fund.
In light of the information presented and the considerations made, the Board
concluded that the nature, extent and quality of the services to be provided to
the Fund by the Advisor and the Sub-Advisor under the Agreements are expected to
be satisfactory.
The Board considered the proposed unitary fee rate payable by the Fund under the
Advisory Agreement for the services to be provided. The Board noted that, under
the unitary fee arrangement, the Fund would pay the Advisor a unitary fee equal
to an annual rate of 0.90% of its average daily net assets. The Board considered
that, from the unitary fee for the Fund, the Advisor would pay the Sub-Advisor a
sub-advisory fee equal to 50% of the Fund's unitary fee less one-half of the
Fund's expenses. The Board noted that the Advisor and the Sub-Advisor would be
responsible for the Fund's expenses, including the cost of sub-advisory,
transfer agency, custody, fund administration, legal, audit and other services
and license fees, if any, but excluding the fee payment under the Advisory
Agreement and interest, taxes, acquired fund fees and expenses, if any,
brokerage commissions and other expenses connected with the execution of
portfolio transactions, distribution and service fees pursuant to a Rule 12b-1
plan, if any, and extraordinary expenses, if any. The Board received and
reviewed information showing the advisory or unitary fee rates and expense
ratios of the peer funds in the Expense Group, as well as advisory and unitary
fee rates charged by the Advisor and the Sub-Advisor to other fund (including
ETF) and non-fund clients, as applicable. Because the Fund will pay a unitary
fee, the Board determined that expense ratios were the most relevant comparative
data point. Based on the information provided, the Board noted that the unitary
fee rate for the Fund was above the median total (net) expense ratio of the peer
funds in the Expense Group. With respect to the Expense Group, the Board
discussed with representatives of the Advisor how the Expense Group was
assembled and how the Fund compared and differed from the peer funds. The Board
took this information into account in considering the peer data. With respect to
fees charged to other clients, the Board considered the Advisor's statement that
the Fund will be unique to the market and the First Trust Fund Complex, but will
Page 66
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ADDITIONAL INFORMATION (CONTINUED)
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FIRST TRUST EXCHANGE-TRADED FUND VIII
FEBRUARY 28, 2022 (UNAUDITED)
be most similar to the ETFs in the FT Cboe Vest U.S. Equity Target Outcome ETF
product line in the First Trust Fund Complex that are managed by the Advisor and
sub-advised by the Sub-Advisor, as well as two other actively-managed ETFs in
the First Trust Fund Complex that are managed by the Advisor and employ
options-based strategies, each of which pays a unitary fee equal to an annual
rate of 0.85% of its average daily net assets. In light of the information
considered and the nature, extent and quality of the services expected to be
provided to the Fund under the Agreements, the Board determined that the
proposed unitary fee, including the sub-advisory fee to be paid by the Advisor
to the Sub-Advisor from the unitary fee, was fair and reasonable.
The Board noted that the proposed unitary fee for the Fund was not structured to
pass on to shareholders the benefits of any economies of scale as the Fund's
assets grow. The Board noted that any reduction in fixed costs associated with
the management of the Fund would benefit the Advisor and the Sub-Advisor, but
that the unitary fee structure provides a level of certainty in expenses for the
Fund. The Board noted that the Advisor has continued to hire personnel and build
infrastructure, including technology, to improve the services to the funds in
the First Trust Fund Complex. The Board took into consideration the types of
costs to be borne by the Advisor in connection with its services to be performed
for the Fund under the Advisory Agreement. The Board considered the Advisor's
estimate of the asset level for the Fund at which the Advisor expects the
Advisory Agreement to be profitable to the Advisor and the Advisor's estimate of
the profitability of the Advisory Agreement if the Fund's assets reach $100
million. The Board noted the inherent limitations in the profitability analysis
and concluded that, based on the information provided, the Advisor's estimated
profitability level for the Fund was not unreasonable. The Board reviewed
financial information provided by the Sub-Advisor, but did not review any
potential profitability of the Sub-Advisory Agreement to the Sub-Advisor. The
Board considered that the Sub-Advisor would be paid by the Advisor from the
Fund's unitary fee and its understanding that the sub-advisory fee rate was the
product of an arm's length negotiation. In addition, the Board considered
fall-out benefits described by the Advisor that may be realized from its
relationship with the Fund. The Board noted that FTCP has a controlling
ownership interest in the Sub-Advisor's parent company and considered potential
fall-out benefits to the Advisor from such ownership interest. The Board also
considered that the Advisor had identified as a fall-out benefit to the Advisor
and FTP their exposure to investors and brokers who, absent their exposure to
the Fund, may have had no dealings with the Advisor or FTP. The Board also
considered the potential fall-out benefits to the Sub-Advisor from FTCP's
controlling ownership interest in the Sub-Advisor's parent company. The Board
noted the Sub-Advisor's statements that it does not foresee any fall-out
benefits from its relationship with the Fund and that, as a policy, it does not
enter into soft-dollar arrangements for the procurement of research services in
connection with client securities transactions. The Board concluded that the
character and amount of potential fall-out benefits to the Advisor and the
Sub-Advisor were not unreasonable.
Based on all of the information considered and the conclusions reached, the
Board, including the Independent Trustees, determined that the terms of the
Agreements are fair and reasonable and that the approval of the Agreements is in
the best interests of the Fund. No single factor was determinative in the
Board's analysis.
BOARD CONSIDERATIONS REGARDING APPROVAL OF INVESTMENT MANAGEMENT AGREEMENT
AND INVESTMENT SUB-ADVISORY AGREEMENT FOR
FT CBOE VEST U.S. EQUITY ENHANCE & MODERATE BUFFER ETF - DECEMBER
The Board of Trustees of First Trust Exchange-Traded Fund VIII (the "Trust"),
including the Independent Trustees, approved the Investment Management Agreement
(the "Advisory Agreement") with First Trust Advisors L.P. (the "Advisor"), on
behalf of FT Cboe Vest U.S. Equity Enhance & Moderate Buffer ETF - December (the
"Fund"), and the Investment Sub-Advisory Agreement (the "Sub-Advisory Agreement"
and together with the Advisory Agreement, the "Agreements") among the Trust, on
behalf of the Fund, the Advisor and Cboe Vest Financial LLC (the "Sub-Advisor")
for an initial two-year term at a meeting held on June 7, 2021. The Board
determined that the Agreements are in the best interests of the Fund in light of
the nature, extent and quality of the services expected to be provided and such
other matters as the Board considered to be relevant in the exercise of its
business judgment.
To reach this determination, the Board considered its duties under the
Investment Company Act of 1940, as amended (the "1940 Act"), as well as under
the general principles of state law, in reviewing and approving advisory
contracts; the requirements of the 1940 Act in such matters; the fiduciary duty
of investment advisors with respect to advisory agreements and compensation; the
standards used by courts in determining whether investment company boards have
fulfilled their duties; and the factors to be considered by the Board in voting
on such agreements. To assist the Board in its evaluation of the Agreements for
the Fund, the Independent Trustees received a separate report from each of the
Advisor and the Sub-Advisor in advance of the Board meeting responding to
requests for information from counsel to the Independent Trustees, submitted on
behalf of the Independent Trustees, that, among other things, outlined: the
services to be provided by the Advisor and the Sub-Advisor to the Fund
(including the relevant personnel responsible for these services and their
experience); the proposed unitary fee rate payable by the Fund as compared to
fees charged to a peer group of funds (the "Expense Group") and a broad peer
universe of funds (the "Expense Universe"), each assembled by Broadridge
Financial Solutions, Inc. ("Broadridge"), an independent source, and as compared
to fees charged to other exchange-traded funds ("ETFs") managed by the Advisor;
the proposed sub-advisory fee rate as compared to fees charged to other clients
of the Sub-Advisor; the estimated expense ratio of the Fund as compared to
expense ratios of the funds in the Fund's Expense Group and Expense Universe;
the nature of expenses to be incurred in providing services to the Fund and the
potential for the Advisor and the Sub-Advisor to realize economies of scale, if
any; profitability and other financial data for the Advisor; financial data for
the Sub-Advisor; any fall-out benefits to the Advisor and its affiliates,
Page 67
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ADDITIONAL INFORMATION (CONTINUED)
--------------------------------------------------------------------------------
FIRST TRUST EXCHANGE-TRADED FUND VIII
FEBRUARY 28, 2022 (UNAUDITED)
First Trust Portfolios L.P. ("FTP") and First Trust Capital Partners, LLC
("FTCP"), and the Sub-Advisor; and information on the Advisor's and the
Sub-Advisor's compliance programs. The Independent Trustees and their counsel
also met separately to discuss the information provided by the Advisor and the
Sub-Advisor. The Board applied its business judgment to determine whether the
arrangements between the Trust and the Advisor and among the Trust, the Advisor
and the Sub-Advisor are reasonable business arrangements from the Fund's
perspective.
In evaluating whether to approve the Agreements for the Fund, the Board
considered the nature, extent and quality of the services to be provided by the
Advisor and the Sub-Advisor under the Agreements. With respect to the Advisory
Agreement, the Board considered that the Advisor will be responsible for the
overall management and administration of the Fund and reviewed all of the
services to be provided by the Advisor to the Fund, including the oversight of
the Sub-Advisor, as well as the background and experience of the persons
responsible for such services. The Board considered that the Fund will be an
actively-managed ETF and will employ an advisor/sub-advisor management structure
and considered that the Advisor manages other ETFs with a similar structure in
the First Trust Fund Complex. The Board noted that the Advisor will oversee the
Sub-Advisor's day-to-day management of the Fund's investments, including
portfolio risk monitoring and performance review. In reviewing the services to
be provided, the Board noted the compliance program that had been developed by
the Advisor and considered that it includes a robust program for monitoring the
Advisor's, the Sub-Advisor's and the Fund's compliance with the 1940 Act, as
well as the Fund's compliance with its investment objective, policies and
restrictions. The Board noted that employees of the Advisor provide management
services to other ETFs and to other funds in the First Trust Fund Complex with
diligence and care. With respect to the Sub-Advisory Agreement, in addition to
the written materials provided by the Sub-Advisor, at the June 7, 2021 meeting,
the Board also received a presentation from representatives of the Sub-Advisor
discussing the services that the Sub-Advisor will provide to the Fund, and the
Trustees were able to ask questions about the proposed investment strategy for
the Fund. The Board noted the background and experience of the Sub-Advisor's
portfolio management team and the Sub-Advisor's investment style. The Board also
noted that the Sub-Advisor manages a number of other defined-outcome ETFs with
strategies similar to those of the Funds in the First Trust Fund Complex.
Because the Fund had yet to commence investment operations, the Board could not
consider the historical investment performance of the Fund. In light of the
information presented and the considerations made, the Board concluded that the
nature, extent and quality of the services to be provided to the Fund by the
Advisor and the Sub-Advisor under the Agreements are expected to be
satisfactory.
The Board considered the proposed unitary fee rate payable by the Fund under the
Advisory Agreement for the services to be provided. The Board noted that, under
the unitary fee arrangement, the Fund would pay the Advisor a unitary fee equal
to an annual rate of 0.85% of its average daily net assets. The Board considered
that, from the unitary fee for the Fund, the Advisor would pay the Sub-Advisor a
sub-advisory fee equal to 50% of the Fund's unitary fee less one-half of the
Fund's expenses. The Board noted that the Advisor and the Sub-Advisor would be
responsible for the Fund's expenses, including the cost of sub-advisory,
transfer agency, custody, fund administration, legal, audit and other services
and license fees, if any, but excluding the fee payment under the Advisory
Agreement and interest, taxes, acquired fund fees and expenses, if any,
brokerage commissions and other expenses connected with the execution of
portfolio transactions, distribution and service fees pursuant to a Rule 12b-1
plan, if any, and extraordinary expenses, if any. The Board received and
reviewed information showing the unitary fee rates and expense ratios of the
peer funds in the Expense Group, as well as advisory and unitary fee rates
charged by the Advisor and the Sub-Advisor to other fund (including ETF) and
non-fund clients, as applicable. Because the Fund will pay a unitary fee, the
Board determined that expense ratios were the most relevant comparative data
point. Based on the information provided, the Board noted that the unitary fee
rate for the Fund was above the median total (net) expense ratio of the peer
funds in the Expense Group. With respect to the Expense Group, the Board
discussed with representatives of the Advisor how the Expense Group was
assembled and how the Fund compared and differed from the peer funds. The Board
took this information into account in considering the peer data. With respect to
fees charged to other clients, the Board considered the Advisor's statement that
the Fund will be unique to the market and the First Trust Fund Complex, but will
be most similar to the ETFs in the FT Cboe Vest U.S. Equity Buffer ETF and FT
Cboe Vest U.S. Equity Deep Buffer ETF product lines in the First Trust Fund
Complex that are managed by the Advisor and sub-advised by the Sub-Advisor, each
of which pays a unitary fee equal to an annual rate of 0.85% of its average
daily net assets. In light of the information considered and the nature, extent
and quality of the services expected to be provided to the Fund under the
Agreements, the Board determined that the proposed unitary fee, including the
sub-advisory fee to be paid by the Advisor to the Sub-Advisor from the unitary
fee, was fair and reasonable.
The Board noted that the proposed unitary fee for the Fund was not structured to
pass on to shareholders the benefits of any economies of scale as the Fund's
assets grow. The Board noted that any reduction in fixed costs associated with
the management of the Fund would benefit the Advisor and the Sub-Advisor, but
that the unitary fee structure provides a level of certainty in expenses for the
Fund. The Board noted that the Advisor has continued to hire personnel and build
infrastructure, including technology, to improve the services to the funds in
the First Trust Fund Complex. The Board took into consideration the types of
costs to be borne by the Advisor in connection with its services to be performed
for the Fund under the Advisory Agreement. The Board considered the Advisor's
estimate of the asset level for the Fund at which the Advisor expects the
Advisory Agreement to be profitable to the Advisor and the Advisor's estimate of
the profitability of the Advisory Agreement if the Fund's assets reach $100
million. The Board noted the inherent limitations in the profitability analysis
and concluded that, based on the information provided, the Advisor's estimated
Page 68
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ADDITIONAL INFORMATION (CONTINUED)
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FIRST TRUST EXCHANGE-TRADED FUND VIII
FEBRUARY 28, 2022 (UNAUDITED)
profitability level for the Fund was not unreasonable. The Board reviewed
financial information provided by the Sub-Advisor, but did not review any
potential profitability of the Sub-Advisory Agreement to the Sub-Advisor. The
Board considered that the Sub-Advisor would be paid by the Advisor from the
Fund's unitary fee and its understanding that the sub-advisory fee rate was the
product of an arm's length negotiation. In addition, the Board considered
fall-out benefits described by the Advisor that may be realized from its
relationship with the Fund. The Board noted that FTCP has a controlling
ownership interest in the Sub-Advisor's parent company and considered potential
fall-out benefits to the Advisor from such ownership interest. The Board also
considered that the Advisor had identified as a fall-out benefit to the Advisor
and FTP their exposure to investors and brokers who, absent their exposure to
the Fund, may have had no dealings with the Advisor or FTP. The Board also
considered the potential fall-out benefits to the Sub-Advisor from FTCP's
controlling ownership interest in the Sub-Advisor's parent company. The Board
noted the Sub-Advisor's statements that it does not foresee any fall-out
benefits from its relationship with the Fund and that, as a policy, it does not
enter into soft-dollar arrangements for the procurement of research services in
connection with client securities transactions. The Board concluded that the
character and amount of potential fall-out benefits to the Advisor and the
Sub-Advisor were not unreasonable.
Based on all of the information considered and the conclusions reached, the
Board, including the Independent Trustees, determined that the terms of the
Agreements are fair and reasonable and that the approval of the Agreements is in
the best interests of the Fund. No single factor was determinative in the
Board's analysis.
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