Table of Contents

 

First Trust Exchange-Traded Fund III
First Trust RiverFront Dynamic Developed International ETF (RFDI) 
 
First Trust RiverFront Dynamic Europe ETF (RFEU) 
 
First Trust RiverFront Dynamic Emerging Markets ETF (RFEM) 
Annual Report
For the Year Ended
October 31, 2023
Table of Contents
First Trust Exchange-Traded Fund III
Annual Report
October 31, 2023
 2
Fund Performance Overview
3
5
7
9
10
13
Portfolio of Investments
14
18
21
25
26
28
30
33
42
43
50
52
Table of Contents
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 RiverFront Investment Group, LLC (“RIG” 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 any series of First Trust Exchange-Traded Fund III (the “Trust”) described in this report (each such series is referred to as a “Fund” and collectively, 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 by investing in a Fund. See “Risk Considerations” in the Additional Information section of this report for a discussion of certain other risks of investing in the Funds.
Performance data quoted represents past performance, which is no guarantee of future results, and current performance may be lower or higher than the figures shown. For the most recent month-end performance figures, please visit www.ftportfolios.com or speak with your financial advisor. Investment returns, net asset value and share price will fluctuate and Fund shares, when sold, may be worth more or less than their original cost.
The Advisor may also periodically provide additional information on Fund performance on each Fund’s web page 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.
By reading the portfolio commentary by the portfolio management team(s) of the Funds, you may obtain an understanding of how the market environment affected each Fund’s performance. 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, the statement of additional information, and other Fund regulatory filings.
Page 1
Table of Contents
Shareholder Letter
First Trust Exchange-Traded Fund III
Annual Letter from the Chairman and CEO
October 31, 2023
Dear Shareholders,
First Trust is pleased to provide you with the annual report for the First Trust RiverFront Dynamic International ETFs (the “Funds”), which contains detailed information about the Funds for the twelve months ended October 31, 2023.
The Bureau of Economic Analysis recently announced that U.S. real gross domestic product (“GDP”) grew by a staggering 4.9% in the third quarter of 2023 and is now up 2.9% on a year-over-year basis from where it stood in the third quarter of 2022. The most recent quarter’s GDP data represents the fastest growth rate for any quarter since 2014. Consumer spending, which rose by 4.0% over the period, was responsible for 2.7 percentage points of the total increase in GDP. Whether the consumer can keep up this pace of spending remains to be seen, especially given recent news that excess savings from the pandemic-era stimulus have likely been depleted. From a global perspective, the International Monetary Fund (“IMF”) notes that progress in fighting inflation has led to lower economic growth. In their October 2023 publication of the World Economic Outlook, the IMF projected that the growth in world economic output is expected to slow from 3.5% in 2022 to 2.9% in 2024. The economic growth in advanced economies is projected to plummet from 2.6% in 2022 to 1.4% in 2024.
In the notes to their September 2023 meeting, the Federal Open Market Committee revealed that they may need to keep interest rates “higher for longer” as they continue to battle stubbornly high inflation. As many investors are likely aware, a higher Federal Funds target rate can have deep implications for consumers, such as driving up the cost of borrowing for homes, automobiles, and other large purchases. The American consumer has yet to feel the full weight of those burdens, in my opinion. That said, the data reveals a different story among corporate America. S&P Global Market Intelligence reported that a total of 516 U.S. corporations filed for bankruptcy protection on a year-to-date basis through September 30, 2023, up from a total of 263 corporate bankruptcy filings over the same period last year. Higher interest rates and Treasury bond yields have also sapped demand for commercial property loans. Data from Trepp, LLC, a leading provider of data and analytics to the commercial real estate and banking markets, revealed that just $28.2 billion of loans converted into commercial mortgage-backed securities have been issued in 2023, the lowest figure since 2011.
The financial markets battled a myriad of headwinds over the past year, from geopolitical uncertainty resulting from war (the conflicts between Israel and Hamas and Russia and Ukraine), to slowing global economic growth and sticky inflation. Brian Wesbury, Chief Economist at First Trust, notes that a U.S. economic recession is likely to begin at some point early next year. While calls for a recession may concern some investors, the following may offer solace. Data from Bloomberg reveals that the S&P 500® Index has posted positive total returns over the 3-year period following every recession since 1948.
Thank you for giving First Trust the opportunity to play a role in your financial future. We value our relationship with you and will report on the Funds again in six months.
Sincerely,
James A. Bowen
Chairman of the Board of Trustees
Chief Executive Officer of First Trust Advisors L.P.
Page 2
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Fund Performance Overview (Unaudited)
First Trust RiverFront Dynamic Developed International ETF (RFDI)
The investment objective of First Trust RiverFront Dynamic Developed International ETF (the “Fund”) is to provide capital appreciation. Under normal market conditions, the Fund seeks to achieve its investment objective by investing at least 80% of its net assets (including investment borrowings) in a portfolio of equity securities of developed market companies, including through investments in common stock, depositary receipts, and common and preferred shares of real estate investment trusts (“REITs”), and forward foreign currency exchange contracts and currency spot transactions used to hedge the Fund’s exposure to the currencies in which the equity securities of such developed market companies are denominated (each, a “Developed Market currency” and, collectively, the “Developed Market currencies”). Developed market companies are those companies (i) whose securities are traded principally on a stock exchange in a developed market country, (ii) that have a primary business office in a developed market country, or (iii) that have at least 50% of their assets in, or derive at least 50% of their revenues or profits from, a developed market country. Developed market countries currently include the countries comprising the Morgan Stanley Capital International World Index or countries considered to be developed by the World Bank, the International Finance Corporation or the United Nations. Under normal market conditions, the Fund invests in at least three countries and at least 40% of its net assets in countries other than the United States. Shares of the Fund are listed on Nasdaq, Inc. under the ticker symbol “RFDI.”
The Fund utilizes a dynamic currency hedging strategy through the use of forward foreign currency exchange contracts and currency spot transactions to hedge up to 100% of the Fund’s currency exposure. As a result of this hedging strategy, the portion of the Fund’s portfolio securities which are subject to currency hedging transactions may vary widely, from 0% to 100% of the portfolio securities. A forward contract on foreign currency is an obligation to purchase or sell a specific currency at a future date, which may be any fixed number of days agreed upon by the parties from the date of the contract, at a price set on the date of the contract. A forward foreign currency exchange contract may reduce the Fund’s exposure to changes in the value of the currency it will deliver and increase its exposure to changes in the value of the currency it will receive for the duration of the contract. The effect on the value of the Fund is similar to selling securities denominated in one currency and purchasing securities denominated in another currency. The Fund  also may enter into currency spot transactions as part of its dynamic currency hedging strategy. A currency spot transaction is an agreement between two parties to buy or sell a specific currency for delivery on a date that is typically two business days from the date of the agreement, as opposed to a date set in the future. The underlying currencies of the forward foreign currency exchange contracts and currency spot transactions included in the Fund’s policy relating to the investment of at least 80% of its net assets (including investment borrowings) will be limited to Developed Market currencies.
Performance
    Average Annual Total Returns   Cumulative Total Returns
  1 Year
Ended
10/31/23 		5 Years
Ended
10/31/23 		Inception
(4/13/16)
to 10/31/23 		  5 Years
Ended
10/31/23 		Inception
(4/13/16)
to 10/31/23
Fund Performance            
NAV 13.03% 2.35% 3.59%   12.34% 30.47%
Market Price 13.40% 2.35% 3.61%   12.29% 30.69%
Index Performance            
MSCI EAFE Index 14.40% 4.10% 4.84%   22.24% 42.89%
(See Notes to Fund Performance Overview on page 9.)
Page 3
Table of Contents
Fund Performance Overview (Unaudited) (Continued)
First Trust RiverFront Dynamic Developed International ETF (RFDI) (Continued)
Sector Allocation % of Total
Long-Term
Investments
Financials 18.2%
Consumer Discretionary 13.3
Industrials 11.7
Health Care 10.3
Energy 8.5
Materials 8.3
Communication Services 7.4
Consumer Staples 7.2
Information Technology 5.4
Real Estate 5.2
Utilities 4.5
Total 100.0%
    
Fund Allocation % of Net Assets
Common Stocks 99.3%
Net Other Assets and Liabilities 0.7
Total 100.0%
Top Ten Holdings % of Total
Long-Term
Investments
Novartis AG 2.1%
TotalEnergies SE 2.0
Shell PLC 1.5
Mitsubishi UFJ Financial Group, Inc. 1.5
Novo Nordisk A.S., Class B 1.5
Nestle S.A. 1.4
Allianz SE 1.4
Unilever PLC 1.4
ASML Holding N.V. 1.4
BHP Group Ltd. 1.3
Total 15.5%
 
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)
First Trust RiverFront Dynamic Europe ETF (RFEU)
The investment objective of First Trust RiverFront Dynamic Europe ETF (the “Fund”) is to provide capital appreciation. Under normal market conditions, the Fund seeks to achieve its investment objective by investing at least 80% of its net assets (including investment borrowings) in a portfolio of equity securities of European companies, including through investments in common stock, depositary receipts, and common and preferred shares of real estate investment trusts (“REITs”), and forward foreign currency exchange contracts and currency spot transactions used to hedge the Fund’s exposure to the currencies in which the equity securities of such European companies are denominated (each, a “European currency” and, collectively, the “European currencies”). European companies are those companies (i) whose securities are traded principally on a stock exchange in a European country, (ii) that have a primary business office in a European country, or (iii) that have at least 50% of their assets in, or derive at least 50% of their revenues or profits from, a European country. The Fund considers a European country to be any member country of the European Union or any country included in the MSCI Europe Index. The Fund generally focuses its European company  investments in Austria, Belgium, Denmark, Finland, France, Germany, Ireland, Italy, Luxembourg, the  Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and/or the United Kingdom. Shares of the Fund are listed on Nasdaq, Inc. under the ticker symbol “RFEU.”
The Fund utilizes a dynamic currency hedging strategy through the use of forward foreign currency exchange contracts and currency spot transactions to hedge up to 100% of the Fund’s currency exposure. As a result of this hedging strategy, the portion of the Fund’s portfolio securities which are subject to currency hedging transactions may vary widely, from 0% to 100% of the portfolio securities. A forward contract on foreign currency is an obligation to purchase or sell a specific currency at a future date, which may be any fixed number of days agreed upon by the parties from the date of the contract, at a price set on the date of the contract. A forward foreign currency exchange contract may reduce the Fund’s exposure to changes in the value of the currency it will deliver and increase its exposure to changes in the value of the currency it will receive for the duration of the contract. The effect on the value of the Fund is similar to selling securities denominated in one currency and purchasing securities denominated in another currency. The Fund also may enter into currency spot transactions as part of its dynamic currency hedging strategy. A currency spot transaction is an agreement between two parties to buy or sell a specific currency for delivery on a date that is typically two business days from the date of the agreement, as opposed to a date set in the future. The underlying currencies of the forward foreign currency exchange contracts and currency spot transactions included in the Fund’s policy relating to the investment of at least 80% of its net assets (including investment borrowings) will be limited to European currencies.
Performance
    Average Annual Total Returns   Cumulative Total Returns
  1 Year
Ended
10/31/23 		5 Years
Ended
10/31/23 		Inception
(4/13/16)
to 10/31/23 		  5 Years
Ended
10/31/23 		Inception
(4/13/16)
to 10/31/23
Fund Performance            
NAV 9.47% 2.71% 4.39%   14.33% 38.36%
Market Price 10.07% 2.84% 4.42%   15.02% 38.60%
Index Performance            
MSCI Europe Index 15.74% 4.82% 5.02%   26.53% 44.70%
(See Notes to Fund Performance Overview on page 9.)
Page 5
Table of Contents
Fund Performance Overview (Unaudited) (Continued)
First Trust RiverFront Dynamic Europe ETF (RFEU) (Continued)
Sector Allocation % of Total
Long-Term
Investments
Health Care 16.6%
Financials 14.7
Industrials 14.1
Consumer Discretionary 13.1
Consumer Staples 10.0
Energy 10.0
Communication Services 6.5
Information Technology 6.2
Utilities 5.1
Materials 2.8
Real Estate 0.9
Total 100.0%
    
Fund Allocation % of Net Assets
Common Stocks 99.1%
Net Other Assets and Liabilities 0.9
Total 100.0%
Top Ten Holdings % of Total
Long-Term
Investments
Nestle S.A. 4.3%
Novo Nordisk A.S., Class B 4.1
ASML Holding N.V. 3.7
Novartis AG 3.0
LVMH Moet Hennessy Louis Vuitton SE 2.9
TotalEnergies SE 2.8
Roche Holding AG 2.7
Shell PLC 2.4
Unilever PLC 2.2
Allianz SE 1.9
Total 30.0%
 
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)
First Trust RiverFront Dynamic Emerging Markets ETF (RFEM)
The investment objective of First Trust RiverFront Dynamic Emerging Markets ETF (the “Fund”) is to provide capital appreciation. Under normal market conditions, the Fund seeks to achieve its investment objective by investing at least 80% of its net assets (including investment borrowings) in a portfolio of equity securities of emerging market companies, including through investments in common stock, depositary receipts, and common and preferred shares of real estate investment trusts (“REITs”), and forward foreign currency exchange contracts and currency spot transactions used to hedge the Fund’s exposure to the currencies in which the equity securities of such emerging market companies are denominated (each, an “Emerging Market currency” and, collectively, the “Emerging Market currencies”). The Fund considers an emerging market company to be one (i) domiciled or with a principal place of business or primary securities trading market in an emerging market country, or (ii) that derives a substantial portion of its total revenues or profits from emerging market countries. The Fund considers an emerging market country to be any country whose issuers are included in the Morgan Stanley Capital International Emerging Markets Index and/or those countries considered to be developing by the World Bank, the International Finance Corporation or the United Nations. The Fund generally focuses its emerging market company investments in Brazil, Chile, China, Colombia, the Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Malaysia, Mexico, Morocco, Nigeria, Peru, the Philippines, Poland, Qatar, Russia, South Africa, South Korea, Taiwan, Thailand, Turkey and/or the United Arab Emirates. Shares of the Fund are listed on Nasdaq, Inc. under the ticker symbol “RFEM.”
The Fund utilizes a dynamic currency hedging strategy through the use of forward foreign currency exchange contracts and currency spot transactions to hedge up to 100% of the Fund’s currency exposure. As a result of this hedging strategy, the portion of the Fund’s portfolio securities which are subject to currency hedging transactions may vary widely, from 0% to 100% of the portfolio securities. A forward contract on foreign currency is an obligation to purchase or sell a specific currency at a future date, which may be any fixed number of days agreed upon by the parties from the date of the contract, at a price set on the date of the contract. A forward foreign currency exchange contract may reduce the Fund’s exposure to changes in the value of the currency it will deliver and increase its exposure to changes in the value of the currency it will receive for the duration of the contract. The effect on the value of the Fund is similar to selling securities denominated in one currency and purchasing securities denominated in another currency. The Fund also may enter into currency spot transactions as part of its dynamic currency hedging strategy. A currency spot transaction is an agreement between two parties to buy or sell a specific currency for delivery on a date that is typically two business days from the date of the agreement, as opposed to a date set in the future. The underlying currencies of the forward foreign currency exchange contracts and currency spot transactions included in the Fund’s policy relating to the investment of at least 80% of its net assets (including investment borrowings) will be limited to Emerging Market currencies.
Performance
    Average Annual Total Returns   Cumulative Total Returns
  1 Year
Ended
10/31/23 		5 Years
Ended
10/31/23 		Inception
(6/14/16)
to 10/31/23 		  5 Years
Ended
10/31/23 		Inception
(6/14/16)
to 10/31/23
Fund Performance            
NAV 16.00% 2.41% 4.38%   12.63% 37.25%
Market Price 16.15% 2.44% 4.36%   12.80% 37.05%
Index Performance            
MSCI Emerging Markets Index 10.80% 1.59% 4.32%   8.23% 36.60%
(See Notes to Fund Performance Overview on page 9.)
Page 7
Table of Contents
Fund Performance Overview (Unaudited) (Continued)
First Trust RiverFront Dynamic Emerging Markets ETF (RFEM) (Continued)
Sector Allocation % of Total
Long-Term
Investments
Information Technology 26.7%
Financials 16.8
Materials 10.2
Consumer Discretionary 10.1
Industrials 9.0
Energy 6.9
Consumer Staples 5.9
Communication Services 5.2
Health Care 4.1
Utilities 3.6
Real Estate 1.5
Total 100.0%
    
Fund Allocation % of Net Assets
Common Stocks 99.6%
Net Other Assets and Liabilities* 0.4
Total 100.0%
    
* Includes forward foreign currency contracts.
Top Ten Holdings % of Total
Long-Term
Investments
Taiwan Semiconductor Manufacturing Co., Ltd. 8.2%
Tencent Holdings Ltd. 3.7
Samsung Electronics Co., Ltd. 3.7
Alibaba Group Holding Ltd. 2.4
MediaTek, Inc. 2.0
ICICI Bank Ltd. 1.8
Vale S.A. 1.6
Tata Consultancy Services Ltd. 1.5
Petroleo Brasileiro S.A. 1.5
Hindustan Unilever Ltd. 1.4
Total 27.8%
 
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
Table of Contents
Notes to Fund Performance Overview  (Unaudited)
Total returns for the periods since inception are calculated from the inception date of each Fund. “Average Annual Total Returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative Total Returns” represent the total change in value of an investment over the periods indicated.
Each Fund’s per share net asset value (“NAV”) is the value of one share of the Fund and is computed by dividing the value of all assets of the Fund (including accrued interest and dividends), less all liabilities (including accrued expenses and dividends declared but unpaid), by the total number of outstanding shares. The price used to calculate market return (“Market Price”) is determined by using the midpoint of the national best bid and offer price (“NBBO”) as of the time that the Fund’s NAV is calculated. Under Securities and Exchange Commission rules, the NBBO consists of the highest displayed buy and lowest sell prices among the various exchanges trading the Fund at the time the Fund’s NAV is calculated. Prior to January 1, 2019,  the price used was the midpoint between the highest bid and the lowest offer on the stock exchange on which shares of the Fund were listed for trading as of the time that the Fund’s NAV was calculated. Since shares of each Fund did not trade in the secondary market until after 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 9
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Portfolio Commentary
First Trust Exchange-Traded Fund III
Annual Report
October 31, 2023 (Unaudited)
Advisor
First Trust Advisors L.P. (“First Trust”) serves as the investment advisor to the First Trust RiverFront Dynamic Developed International ETF (“RFDI”), the First Trust RiverFront Dynamic Europe ETF (“RFEU”), and the First Trust RiverFront Dynamic Emerging Markets ETF (“RFEM”) (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
RiverFront Investment Group, LLC
RiverFront Investment Group, LLC (“RIG”) is an SEC-registered investment advisor located in Richmond, Virginia. It is majority owned by its employees, and Baird Financial Corporation is a minority owner of RiverFront Investment Holding Group, LLC. The firm provides asset management services to a series of global tactical asset allocation portfolios and registered investment companies, including mutual funds and exchange-traded products.
Portfolio Management Team
The following persons serve as portfolio managers of the Funds.
Adam Grossman, CFA, Portfolio Manager of RIG
Chris Konstantinos, CFA, Portfolio Manager of RIG
Each of the portfolio managers is primarily and jointly responsible for the day-to-day management of the Funds. Adam Grossman and Chris Konstantinos have managed the Funds since 2016.
Commentary
The 12-month period ended October 31, 2023 saw international equity markets lead U.S. equities. Chinese equities had the highest returns during the period, with a total return of 21.1%, as measured by the MSCI China Index. However, Developed International equities outpaced broad Emerging International equities during the same period, with total returns of 14.4% and 10.8%, respectively, as measured by the MSCI EAFE Index and the MSCI Emerging Markets Index. Both European and Japanese markets posted solid total returns, 15.7% and 16.8%, respectively, during the period, as measured by the MSCI Europe Index and the MSCI Japan Index. With a total return of 10.1%, U.S. large cap stocks trailed both Emerging and Developed International equities during the period, as measured by the S&P 500® Index.
From a style standpoint, Developed International value equities, as measured by the MSCI EAFE Value Index, outperformed broad Developed International equities with a total return of 19.0% for the same period, while Developed International Growth, as measured by the MSCI EAFE Growth Free Index, and Quality, as measured by the MSCI EAFE Quality Index, underperformed the broad EAFE Index, with respective total returns of 10.8% and 13.2%.
First Trust RiverFront Dynamic Developed International ETF (RFDI)
2023 Performance Review
     2023 Performance
RFDI Market          13.40%
RFDI NAV          13.03%
Benchmark: MSCI EAFE Index          14.40%
*Inception date 4/13/16
Fund-Level Attribution
For the 12-month period ended October 31, 2023, the Fund posted net asset value (“NAV”) and market price returns below the Benchmark’s (MSCI EAFE Index) return during the fiscal year.
Currency Hedging
The portfolio had three currency hedges to begin the 12-month period ended October 31, 2023: the British Pound, the Euro, and the Japanese Yen. The Pound was hedged through March 30, 2023, the Euro was hedged through December 30, 2022, and the Yen was hedged through January 3, 2023. All three hedges were detractors to the Fund’s performance during the period.
Page 10
Table of Contents
Portfolio Commentary (Continued)
First Trust Exchange-Traded Fund III
Annual Report
October 31, 2023 (Unaudited)
First Trust RiverFront Dynamic Europe ETF (RFEU)
2023 Performance Review
      2023 Performance
RFEU Market          10.07%
RFEU NAV            9.47%
Benchmark: MSCI Europe Index   15.74%
*Inception date 4/13/16
Fund-Level Attribution
For the 12-month period ended October 31, 2023, the Fund posted NAV and market price returns below the Benchmark (MSCI Europe Index) during the fiscal year.
Currency Hedging
The portfolio had two currency hedges to begin the fiscal year: the British Pound and the Euro. The Pound was hedged through March 30, 2023 and the Euro through December 30, 2022. Both hedges were detractors to the Fund’s performance during the period.
First Trust RiverFront Dynamic Emerging Markets ETF (RFEM)
2023 Performance Review
      2023 Performance
RFEM Market          16.15%
RFEM NAV          16.00%
Benchmark: MSCI Emerging Markets Index   10.80%
*Inception date 6/14/16
Fund-Level Attribution
For the 12-month period ended October 31, 2023, the Fund posted NAV and market price returns above the Benchmark’s (MSCI Emerging Markets Index) return during the period.
Currency Hedging
The portfolio had two currency hedges to begin the fiscal year: the Taiwan Dollar and the Korean Won. The Taiwan Dollar was hedged the entire period, while the Won was hedged through March 30, 2023. Both hedges were detractors to the Fund’s performance during the period.
Market Outlook
The 12-month period ended October 31, 2023 saw equity markets snap back after poor performance in 2022. Moving forward, in our view, we see markets trending towards a version of our “Base” Case, as described below.
In our view, we see three likely paths forward for the final quarter of 2023 and moving forward:
1. Economic Growth: Slowing, but Positive/Inflation: Moderating, but Persistent (BASE CASE/MOST LIKELY OUTCOME)
• In this scenario, interest rates must go higher to combat inflation. If this plays out, we believe equity investors should expect volatility but directionless markets, an environment where we believe the “Pay Attention To The Yield” theme (a focus on investments with strong yields and free cash flows to support them) would be the most effective strategy.
2. Economic Growth: Resilient/Inflation: Under Control (BULL CASE)
• Specifically, a recession or significant slowdown quickly emerges, causing inflation pressures to dissipate quickly. In this scenario, central banks would begin to forecast rate cuts and/or monetary stimulus. In this scenario, quality and growth-oriented equities would be the strongest performers, in our view. Additionally, international stocks would benefit from strong currencies, in our opinion.
3. Economic Growth: Recessionary/Inflation: Strong (BEAR CASE)
Page 11
Table of Contents
Portfolio Commentary (Continued)
First Trust Exchange-Traded Fund III
Annual Report
October 31, 2023 (Unaudited)
• The most challenging scenario is if we see high inflation and evidence of a recession, which would force central banks to continue to raise rates even in the face of a recession. In that scenario, in our view, bonds and stocks would perform poorly as long interest rates rise and economic and earnings growth fall.
Page 12
Table of Contents
First Trust Exchange-Traded Fund III
Understanding Your Fund Expenses
October 31, 2023 (Unaudited)
As a shareholder of First Trust RiverFront Dynamic Developed International ETF, First Trust RiverFront Dynamic Europe ETF or First Trust RiverFront Dynamic Emerging Markets ETF (each a “Fund” and collectively, the “Funds”), you incur two types of costs:  (1) transaction costs; and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, if any, and other Fund expenses. This Example is intended to help you understand your ongoing costs of investing in the Funds and to compare these costs with the ongoing costs (in U.S. dollars) of investing in other funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held through the six-month period ended October 31, 2023.
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 Six-Month Period” to estimate the expenses you paid on your account during this six-month period.
Hypothetical Example for Comparison Purposes
The second line in the following table provides information about hypothetical account values and hypothetical expenses based on each Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not each Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs such as brokerage commissions. Therefore, the second line in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
  Beginning
Account Value
May 1, 2023 		Ending
Account Value
October 31, 2023 		Annualized
Expense Ratio
Based on the
Six-Month
Period 		Expenses Paid
During the
Six-Month
Period (a)
First Trust RiverFront Dynamic Developed International ETF (RFDI)
Actual $1,000.00 $955.00 0.83% $4.09
Hypothetical (5% return before expenses) $1,000.00 $1,021.02 0.83% $4.23
First Trust RiverFront Dynamic Europe ETF (RFEU)
Actual $1,000.00 $920.00 0.83% $4.02
Hypothetical (5% return before expenses) $1,000.00 $1,021.02 0.83% $4.23
First Trust RiverFront Dynamic Emerging Markets ETF (RFEM)
Actual $1,000.00 $1,014.90 0.95% $4.82
Hypothetical (5% return before expenses) $1,000.00 $1,020.42 0.95% $4.84
    
(a) Expenses are equal to the annualized expense ratios as indicated in the table multiplied by the average account value over the period (May 1, 2023 through October 31, 2023), multiplied by 184/365 (to reflect the six-month period).
Page 13
Table of Contents
First Trust RiverFront Dynamic Developed International ETF (RFDI)
Portfolio of Investments
October 31, 2023
Shares   Description   Value
COMMON STOCKS (a) (b) – 99.3%
    Australia – 10.3%    
43,974   ALS Ltd. (AUD) (c)   $300,952
48,926   BHP Group Ltd. (AUD) (c)   1,384,972
66,632   Charter Hall Group (AUD) (c)   369,140
190,430   Charter Hall Long Wale REIT (AUD) (c)   365,842
58,060   Coles Group Ltd. (AUD) (c)   563,512
4,214   Commonwealth Bank of Australia (AUD) (c)   259,228
54,166   Fortescue Metals Group Ltd. (AUD) (c)   770,556
67,510   Goodman Group (AUD) (c)   893,286
135,189   Harvey Norman Holdings Ltd. (AUD) (c)   316,000
50,109   Iluka Resources Ltd. (AUD)   230,135
242,831   Incitec Pivot Ltd. (AUD) (c)   423,906
15,684   JB Hi-Fi Ltd. (AUD) (c)   450,836
179,845   Medibank Pvt Ltd. (AUD) (c)   392,472
199,349   Metcash Ltd. (AUD) (c)   466,842
39,522   Nine Entertainment Co. Holdings Ltd. (AUD)   46,256
10,412   Rio Tinto Ltd. (AUD) (c)   777,757
35,483   Sonic Healthcare Ltd. (AUD) (c)   649,732
241,510   South32 Ltd. (AUD) (c)   516,683
195,337   Stockland (AUD) (c)   440,864
362,073   Vicinity Ltd. (AUD) (c)   392,173
171,011   Viva Energy Group Ltd. (AUD) (c) (d) (e)   307,943
25,812   Wesfarmers Ltd. (AUD) (c)   830,471
13,191   Woodside Energy Group Ltd. (AUD) (c)   287,297
        11,436,855
    Austria – 1.0%    
65,308   Telekom Austria AG (EUR)   456,076
39,562   UNIQA Insurance Group AG (EUR) (c)   319,438
14,511   Wienerberger AG (EUR) (c)   351,557
        1,127,071
    Belgium – 0.3%    
36,354   Proximus S.A.D.P. (EUR) (c)   301,321
    Bermuda – 0.2%    
19,262   Orient Overseas International Ltd. (HKD) (c)   242,890
    Canada – 3.7%    
29,196   ARC Resources Ltd. (CAD)   469,705
93,897   B2Gold Corp. (CAD)   300,633
11,693   Canadian Natural Resources Ltd. (CAD)   742,517
18,674   Emera, Inc. (CAD)   611,626
1,363   George Weston Ltd. (CAD)   147,844
14,023   Northland Power, Inc. (CAD)   197,085
23,084   Pembina Pipeline Corp. (CAD)   710,456
18,406   Suncor Energy, Inc. (CAD)   596,080
Shares   Description   Value
    Canada (Continued)    
4,738   West Fraser Timber Co., Ltd. (CAD)   $319,762
        4,095,708
    Cayman Islands – 0.7%    
150,500   CK Hutchison Holdings Ltd. (HKD) (c)   761,874
    Denmark – 2.3%    
271   AP Moller - Maersk A.S., Class A (DKK) (c)   442,478
295   AP Moller - Maersk A.S., Class B (DKK) (c)   491,538
16,793   Novo Nordisk A.S., Class B (DKK) (c)   1,620,126
        2,554,142
    Finland – 0.7%    
6,835   Elisa Oyj (EUR)   289,863
13,236   Orion Oyj, Class B (EUR) (c)   526,601
        816,464
    France – 8.7%    
34,121   AXA S.A. (EUR) (c)   1,011,020
30,097   Carmila S.A. (EUR)   420,999
454   Christian Dior SE (EUR) (c)   313,891
10,679   Covivio S.A. (EUR) (c)   457,642
66,386   Credit Agricole S.A. (EUR) (c)   801,604
551   Hermes International SCA (EUR) (c)   1,028,070
13,665   La Francaise des Jeux SAEM (EUR) (c) (d) (e)   440,791
1,539   LVMH Moet Hennessy Louis Vuitton SE (EUR) (c)   1,101,817
33,312   Metropole Television S.A. (EUR) (c)   417,531
2,964   Sanofi (EUR) (c)   269,150
33,337   TotalEnergies SE (EUR) (c)   2,228,828
10,640   Vinci S.A. (EUR) (c)   1,176,511
        9,667,854
    Germany – 8.7%    
6,515   Allianz SE (EUR) (c)   1,526,090
16,879   Bayer AG (EUR) (c)   729,317
9,194   Bayerische Motoren Werke AG (EUR) (c)   855,082
69,292   Deutsche Bank AG (EUR) (c)   762,527
63,015   Deutsche Telekom AG (EUR) (c)   1,367,657
23,402   DHL Group (EUR) (c)   913,696
64,719   E.ON SE (EUR) (c)   770,035
26,328   Fresenius SE & Co., KGaA (EUR) (c)   677,243
1,808   Hapag-Lloyd AG (EUR) (d) (e)   260,365
16,566   Mercedes-Benz Group AG (EUR) (c)   974,649
3,374   SAP SE (EUR) (c)   452,562
 
Page 14
See Notes to Financial Statements
Table of Contents
First Trust RiverFront Dynamic Developed International ETF (RFDI)
Portfolio of Investments (Continued)
October 31, 2023
Shares   Description   Value
COMMON STOCKS (a) (b) (Continued)
    Germany (Continued)    
2,449   Siemens AG (EUR) (c)   $324,980
        9,614,203
    Greece – 0.8%    
30,888   Eurobank Ergasias Services and Holdings S.A. (EUR) (c) (f)   50,487
23,320   Hellenic Telecommunications Organization S.A. (EUR) (c)   326,862
27,448   OPAP S.A. (EUR) (c)   464,922
        842,271
    Guernsey – 0.3%    
10,539   Shurgard Self Storage Ltd. (EUR) (c)   394,419
    Hong Kong – 0.2%    
26,718   AIA Group Ltd. (HKD) (c)   232,014
    Israel – 0.7%    
11,367   First International Bank of Israel (The) Ltd. (ILS) (c)   386,931
80,138   ICL Group Ltd. (ILS) (c)   389,781
        776,712
    Italy – 3.8%    
25,371   ACEA S.p.A. (EUR)   305,228
20,781   Azimut Holding S.p.A. (EUR) (c)   437,875
53,691   Banca Mediolanum S.p.A. (EUR) (c)   438,417
107,060   Banca Popolare di Sondrio S.p.A. (EUR)   583,393
61,184   Eni S.p.A. (EUR) (c)   1,000,215
93,460   Pirelli & C S.p.A. (EUR) (c) (d) (e)   416,391
59,675   Poste Italiane S.p.A. (EUR) (c) (d) (e)   590,797
85,462   Unipol Gruppo S.p.A. (EUR) (c)   462,997
        4,235,313
    Japan – 23.6%    
32,900   Advantest Corp. (JPY) (c)   847,459
30,700   Bandai Namco Holdings, Inc. (JPY) (c)   636,058
27,500   Chugai Pharmaceutical Co., Ltd. (JPY) (c)   815,556
3,700   Disco Corp. (JPY) (c)   653,416
3,100   Fast Retailing Co., Ltd. (JPY) (c)   686,329
108,600   Honda Motor Co., Ltd. (JPY) (c)   1,113,017
8,000   Hoya Corp. (JPY) (c)   770,149
28,200   ITOCHU Corp. (JPY) (c)   1,015,793
740   Japan Metropolitan Fund Investment Corp. (JPY) (c)   477,557
42,600   Japan Tobacco, Inc. (JPY) (c)   991,680
30,800   KDDI Corp. (JPY) (c)   921,374
Shares   Description   Value
    Japan (Continued)    
408   KDX Realty Investment Corp. (JPY) (c)   $425,539
9,900   Lawson, Inc. (JPY) (c)   478,432
26,500   Mitsubishi Corp. (JPY) (c)   1,235,312
193,200   Mitsubishi UFJ Financial Group, Inc. (JPY) (c)   1,620,783
16,700   Mitsui OSK Lines Ltd. (JPY) (c)   431,149
58,000   Mizuho Financial Group, Inc. (JPY) (c)   984,747
23,600   MS&AD Insurance Group Holdings, Inc. (JPY) (c)   864,717
15,750   Nintendo Co., Ltd. (JPY) (c)   650,703
698,300   Nippon Telegraph & Telephone Corp. (JPY) (c)   821,742
27,200   Nippon Yusen KK (JPY) (c)   665,509
8,400   Nissan Chemical Corp. (JPY) (c)   342,596
17,300   Niterra Co., Ltd. (JPY)   382,352
11,500   Nitto Denko Corp. (JPY) (c)   744,117
4,000   Obic Co., Ltd. (JPY) (c)   591,265
5,300   Oracle Corp., Japan (JPY) (c)   375,980
50,300   ORIX Corp. (JPY) (c)   914,773
34,100   Recruit Holdings Co., Ltd. (JPY) (c)   977,739
8,000   SCREEN Holdings Co., Ltd. (JPY) (c)   371,937
19,900   Sega Sammy Holdings, Inc. (JPY) (c)   311,228
32,000   Sekisui House Ltd. (JPY) (c)   626,648
11,700   Shinko Electric Industries Co., Ltd. (JPY) (c)   375,674
14,300   Shionogi & Co., Ltd. (JPY) (c)   665,874
40,700   SoftBank Corp. (JPY) (c)   460,190
600   Sojitz Corp. (JPY) (c)   12,459
29,000   Takeda Pharmaceutical Co., Ltd. (JPY) (c)   787,198
23,100   Tokyo Gas Co., Ltd. (JPY) (c)   518,760
20,800   USS Co., Ltd. (JPY) (c)   363,561
15,500   ZOZO, Inc. (JPY) (c)   294,729
        26,224,101
    Jersey – 0.4%    
172,050   Man Group PLC (GBP) (c)   460,000
    Luxembourg – 0.4%    
69,101   B&M European Value Retail S.A. (GBP) (c)   444,855
    Netherlands – 2.5%    
2,519   ASML Holding N.V. (EUR) (c)   1,514,222
2,142   Ferrari N.V. (EUR) (c)   648,392
187,862   Koninklijke KPN N.V. (EUR) (c)   631,438
        2,794,052
    New Zealand – 0.8%    
291,393   Genesis Energy Ltd. (NZD)   392,158
 
See Notes to Financial Statements
Page 15
Table of Contents
First Trust RiverFront Dynamic Developed International ETF (RFDI)
Portfolio of Investments (Continued)
October 31, 2023
Shares   Description   Value
COMMON STOCKS (a) (b) (Continued)
    New Zealand (Continued)    
166,735   Spark New Zealand Ltd. (NZD) (c)   $484,052
        876,210
    Norway – 1.2%    
31,961   Equinor ASA (NOK) (c)   1,071,435
9,039   Yara International ASA (NOK) (c)   295,774
        1,367,209
    Portugal – 0.6%    
92,878   Navigator (The) Co., S.A. (EUR) (c)   369,733
73,224   NOS SGPS S.A. (EUR) (c)   267,678
        637,411
    Singapore – 0.8%    
216,600   Keppel DC REIT (SGD)   267,358
143,300   Singapore Airlines Ltd. (SGD) (c)   639,872
        907,230
    Spain – 2.6%    
132,185   Banco Bilbao Vizcaya Argentaria S.A. (EUR) (c)   1,039,930
17,438   Cia de Distribucion Integral Logista Holdings S.A. (EUR) (c)   428,194
37,055   Endesa S.A. (EUR) (c)   697,178
30,930   Inmobiliaria Colonial Socimi S.A. (EUR) (c)   173,526
32,398   Redeia Corp. S.A. (EUR) (c)   505,244
        2,844,072
    Sweden – 0.8%    
4,501   Boliden AB (SEK) (c)   115,375
168,280   Telefonaktiebolaget LM Ericsson, Class B (SEK) (c)   753,849
        869,224
    Switzerland – 6.9%    
33,655   ABB Ltd. (CHF) (c)   1,130,731
34,096   EFG International AG (CHF) (c)   409,743
2,763   Kuehne + Nagel International AG (CHF) (c)   745,081
14,713   Nestle S.A. (CHF) (c)   1,586,632
25,285   Novartis AG (CHF) (c)   2,367,171
2,057   Roche Holding AG (CHF) (c)   560,555
5,057   Sandoz Group AG (CHF) (f)   131,477
8,780   SGS S.A. (CHF) (c)   717,069
        7,648,459
    United Kingdom – 16.3%    
37,078   3i Group PLC (GBP) (c)   874,210
14,533   Admiral Group PLC (GBP) (c)   431,815
Shares   Description   Value
    United Kingdom (Continued)    
325,384   Airtel Africa PLC (GBP) (d) (e)   $448,088
5,829   AstraZeneca PLC (GBP) (c)   729,813
524,171   Barclays PLC (GBP) (c)   841,319
89,673   Barratt Developments PLC (GBP) (c)   452,239
24,072   Big Yellow Group PLC (GBP) (c)   279,960
55,828   BP PLC (GBP) (c)   340,887
33,367   British American Tobacco PLC (GBP) (c)   996,754
178,344   BT Group PLC (GBP) (c)   244,943
74,354   Evraz PLC (GBP) (c) (f) (g) (h)   0
36,709   Hargreaves Lansdown PLC (GBP) (c)   316,154
82,377   HSBC Holdings PLC (GBP) (c)   594,797
54,072   IG Group Holdings PLC (GBP) (c)   420,064
38,392   Imperial Brands PLC (GBP) (c)   817,910
31,680   Inchcape PLC (GBP) (c)   256,845
60,108   Investec PLC (GBP) (c)   334,677
120,320   J Sainsbury PLC (GBP) (c)   376,460
294,318   Legal & General Group PLC (GBP) (c)   758,312
32,796   Mondi PLC (GBP) (c)   530,492
77,278   National Grid PLC (GBP) (c)   921,384
275,015   NatWest Group PLC (GBP) (c)   598,382
35,072   Persimmon PLC (GBP) (c)   434,332
20,940   Rio Tinto PLC (GBP) (c)   1,335,983
42,783   Safestore Holdings PLC (GBP) (c)   356,019
50,459   Shell PLC (GBP) (c)   1,626,135
345,112   Taylor Wimpey PLC (GBP) (c)   466,124
32,049   Unilever PLC (GBP) (c)   1,517,862
199,117   Virgin Money UK PLC (GBP) (c)   361,751
46,954   Vistry Group PLC (GBP) (c)   404,712
        18,068,423
    Total Investments – 99.3%   110,240,357
    (Cost $112,223,060)    
    Net Other Assets and Liabilities – 0.7%   748,614
    Net Assets – 100.0%   $110,988,971
    
(a) Portfolio securities are categorized based upon their country of incorporation. For a breakdown of the portfolio securities by sector, please see the Fund Performance Overview.
(b) Securities are issued in U.S. dollars unless otherwise indicated in the security description.
 
Page 16
See Notes to Financial Statements
Table of Contents
First Trust RiverFront Dynamic Developed International ETF (RFDI)
Portfolio of Investments (Continued)
October 31, 2023
(c) This security is fair valued by the Advisor’s Pricing Committee in accordance with procedures approved by the Trust’s Board of Trustees and in accordance with provisions of the Investment Company Act of 1940 and rules thereunder, as amended. At October 31, 2023, securities noted as such are valued at $101,930,901 or 91.8% of net assets. Certain of these securities are fair valued using a factor provided by a third-party pricing service due to the change in value between the foreign markets’ close and the New York Stock Exchange close exceeding a certain threshold. On days when this threshold is not exceeded, these securities are typically valued at the last sale price on the exchange on which they are principally traded.
(d) This security may be resold to qualified foreign investors and foreign institutional buyers under Regulation S of the Securities Act of 1933, as amended (the “1933 Act”).
(e) This security is exempt from registration upon resale under Rule 144A of the 1933 Act and may be resold in transactions exempt from registration, normally to qualified institutional buyers. This security is not restricted on the foreign exchange where it trades freely without any additional registration. As such, it does not require the additional disclosure required of restricted securities.
(f) Non-income producing security.
(g) Pursuant to procedures adopted by the Trust’s Board of Trustees, this security has been determined to be illiquid by First Trust Advisors L.P., the Fund’s advisor.
(h) This security’s value was determined using significant unobservable inputs (see Note 2A – Portfolio Valuation in the Notes to Financial Statements).
    
Abbreviations throughout the Portfolio of Investments:
AUD – Australian Dollar
CAD – Canadian Dollar
CHF – Swiss Franc
DKK – Danish Krone
EUR – Euro
GBP – British Pound Sterling
HKD – Hong Kong Dollar
ILS – Israeli Shekel
JPY – Japanese Yen
NOK – Norwegian Krone
NZD – New Zealand Dollar
SEK – Swedish Krona
SGD – Singapore Dollar
Currency Exposure
Diversification 		% of Total
Investments
EUR 30.2%
JPY 23.8
GBP 17.2
AUD 10.4
CHF 6.9
CAD 3.7
DKK 2.3
NOK 1.3
HKD 1.1
SGD 0.8
NZD 0.8
SEK 0.8
ILS 0.7
Total 100.0%
Valuation Inputs
A summary of the inputs used to value the Fund’s investments as of October 31, 2023 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements):
  Total
Value at
10/31/2023 		Level 1
Quoted
Prices 		Level 2
Significant
Observable
Inputs 		Level 3
Significant
Unobservable
Inputs
Common Stocks:        
Australia $ 11,436,855 $ 276,391 $ 11,160,464 $ —
Austria  1,127,071  456,076  670,995  —
Canada  4,095,708  4,095,708  —  —
Finland  816,464  289,863  526,601  —
France  9,667,854  420,999  9,246,855  —
Germany  9,614,203  260,365  9,353,838  —
Italy  4,235,313  888,621  3,346,692  —
Japan  26,224,101  382,352  25,841,749  —
New Zealand  876,210  392,158  484,052  —
Singapore  907,230  267,358  639,872  —
Switzerland  7,648,459  131,477  7,516,982  —
United Kingdom  18,068,423  448,088  17,620,335  —**
Other Country Categories*  15,522,466  —  15,522,466  —
Total Investments $ 110,240,357 $ 8,309,456 $ 101,930,901 $—**
    
* See Portfolio of Investments for country breakout.
** Investment is valued at $0.
Level 3 investments are fair valued by the Advisor’s Pricing Committee and are footnoted in the Portfolio of Investments. All Level 3 values are based on unobservable inputs.
 
See Notes to Financial Statements
Page 17
Table of Contents
First Trust RiverFront Dynamic Europe ETF (RFEU)
Portfolio of Investments
October 31, 2023
Shares   Description   Value
COMMON STOCKS (a) (b) – 99.1%
    Australia – 0.8%    
871   Rio Tinto Ltd. (AUD) (c)   $65,062
    Austria – 1.9%    
1,521   OMV AG (EUR) (c)   66,708
3,392   Raiffeisen Bank International AG (EUR) (c) (d)   49,142
6,605   Telekom Austria AG (EUR)   46,126
        161,976
    Belgium – 0.3%    
453   Cofinimmo S.A. (EUR) (c)   28,170
    Denmark – 6.9%    
36   AP Moller - Maersk A.S., Class A (DKK) (c)   58,779
38   AP Moller - Maersk A.S., Class B (DKK) (c)   63,317
513   DSV A.S. (DKK) (c)   76,663
113   Genmab A.S. (DKK) (c) (d)   31,943
3,569   Novo Nordisk A.S., Class B (DKK) (c)   344,324
        575,026
    Finland – 1.0%    
1,260   Orion Oyj, Class B (EUR) (c)   50,130
1,568   TietoEVRY oyj (EUR) (c)   32,896
        83,026
    France – 14.6%    
841   Amundi S.A. (EUR) (c) (e) (f)   43,933
3,715   Carrefour S.A. (EUR) (c)   65,129
76   Christian Dior SE (EUR) (c)   52,546
339   Cie de Saint-Gobain S.A. (EUR) (c)   18,453
1,012   Covivio S.A. (EUR) (c)   43,369
319   Dassault Aviation S.A. (EUR) (c)   63,414
29   Hermes International SCA (EUR) (c)   54,109
443   Ipsen S.A. (EUR) (c)   52,359
1,298   La Francaise des Jeux SAEM (EUR) (c) (e) (f)   41,870
333   LVMH Moet Hennessy Louis Vuitton SE (EUR) (c)   238,405
7,524   Orange S.A. (EUR) (c)   88,498
2,047   Rexel S.A. (EUR) (c)   41,806
390   Sanofi (EUR) (c)   35,414
199   Sartorius Stedim Biotech (EUR) (c)   37,257
3,444   TotalEnergies SE (EUR) (c)   230,257
1,055   Vinci S.A. (EUR) (c)   116,656
        1,223,475
    Germany – 12.0%    
675   Allianz SE (EUR) (c)   158,114
955   Bayerische Motoren Werke AG (EUR) (c)   88,819
Shares   Description   Value
    Germany (Continued)    
552   Bayerische Motoren Werke AG (Preference Shares) (EUR) (c)   $46,936
804   Brenntag SE (EUR) (c)   59,787
3,993   Deutsche Telekom AG (EUR) (c)   86,663
2,439   DHL Group (EUR) (c)   95,227
1,669   Mercedes-Benz Group AG (EUR) (c)   98,194
674   Nemetschek SE (EUR) (c)   50,364
451   SAP SE (EUR) (c)   60,494
152   Sartorius AG (Preference Shares) (EUR) (c)   38,097
295   Siemens AG (EUR) (c)   39,146
1,002   Talanx AG (EUR) (c)   63,145
18,129   Telefonica Deutschland Holding AG (EUR) (c)   30,821
528   Volkswagen AG (Preference Shares) (EUR) (c)   55,995
309   Wacker Chemie AG (EUR) (c)   37,921
        1,009,723
    Greece – 1.0%    
6,321   National Bank of Greece S.A. (EUR) (c) (d)   36,203
2,979   OPAP S.A. (EUR) (c)   50,459
        86,662
    Israel – 0.4%    
1,068   First International Bank of Israel (The) Ltd. (ILS) (c)   36,355
    Italy – 5.1%    
31,137   A2A S.p.A. (EUR) (c)   58,444
2,259   Azimut Holding S.p.A. (EUR) (c)   47,599
15,771   BPER Banca (EUR) (c)   51,321
17,219   Enel S.p.A. (EUR) (c)   109,299
7,220   Eni S.p.A. (EUR) (c)   118,030
15,324   Hera S.p.A. (EUR) (c)   43,108
        427,801
    Jersey – 1.5%    
2,801   Experian PLC (GBP) (c)   84,979
16,355   Man Group PLC (GBP) (c)   43,727
        128,706
    Luxembourg – 0.6%    
8,106   B&M European Value Retail S.A. (GBP) (c)   52,184
    Netherlands – 5.5%    
505   ASML Holding N.V. (EUR) (c)   303,566
126   Ferrari N.V. (EUR) (c)   38,141
686   OCI N.V. (EUR) (c)   15,984
771   Wolters Kluwer N.V. (EUR) (c)   98,924
        456,615
 
Page 18
See Notes to Financial Statements
Table of Contents
First Trust RiverFront Dynamic Europe ETF (RFEU)
Portfolio of Investments (Continued)
October 31, 2023
Shares   Description   Value
COMMON STOCKS (a) (b) (Continued)
    Norway – 1.8%    
3,239   Equinor ASA (NOK) (c)   $108,582
1,264   Yara International ASA (NOK) (c)   41,360
        149,942
    Portugal – 1.1%    
3,849   Galp Energia SGPS S.A. (EUR) (c)   57,946
7,702   Navigator (The) Co., S.A. (EUR) (c)   30,660
        88,606
    Spain – 5.8%    
4,381   Acerinox S.A. (EUR) (c)   42,683
14,713   Banco Bilbao Vizcaya Argentaria S.A. (EUR) (c)   115,751
1,943   Cia de Distribucion Integral Logista Holdings S.A. (EUR) (c)   47,711
3,417   Endesa S.A. (EUR) (c)   64,290
1,549   Grupo Catalana Occidente S.A. (EUR)   49,580
9,332   NH Hotel Group S.A. (EUR) (d)   38,065
3,110   Redeia Corp. S.A. (EUR) (c)   48,500
20,833   Telefonica S.A. (EUR) (c)   80,470
        487,050
    Sweden – 1.6%    
686   Evolution AB (SEK) (c) (e) (f)   61,127
15,355   Telefonaktiebolaget LM Ericsson, Class B (SEK) (c)   68,786
        129,913
    Switzerland – 15.1%    
253   Kuehne + Nagel International AG (CHF) (c)   68,225
3,295   Nestle S.A. (CHF) (c)   355,329
2,662   Novartis AG (CHF) (c)   249,215
74   Partners Group Holding AG (CHF) (c)   78,356
857   Roche Holding AG (CHF) (c)   220,857
222   Roche Holding AG (CHF) (c)   60,498
532   Sandoz Group AG (CHF) (d)   13,831
655   SGS S.A. (CHF) (c)   53,494
135   Swiss Life Holding AG (CHF) (c)   86,708
133   Swisscom AG (CHF) (c)   79,692
        1,266,205
    United Kingdom – 22.1%    
4,263   3i Group PLC (GBP) (c)   100,511
2,056   Admiral Group PLC (GBP) (c)   61,089
754   AstraZeneca PLC (GBP) (c)   94,404
7,544   Auto Trader Group PLC (GBP) (c) (e) (f)   57,065
Shares   Description   Value
    United Kingdom (Continued)    
8,582   Barratt Developments PLC (GBP) (c)   $43,281
8,471   BP PLC (GBP) (c)   51,724
4,054   British American Tobacco PLC (GBP) (c)   121,103
49,157   BT Group PLC (GBP) (c)   67,514
703   Diageo PLC (GBP) (c)   26,585
3,233   Dunelm Group PLC (GBP)   38,333
44,089   Evraz PLC (GBP) (c) (d) (g) (h)   0
8,442   GSK PLC (GBP) (c)   150,494
4,640   Hargreaves Lansdown PLC (GBP) (c)   39,962
11,328   HSBC Holdings PLC (GBP) (c)   81,793
2,595   Intermediate Capital Group PLC (GBP) (c)   41,315
1,046   Intertek Group PLC (GBP) (c)   48,716
8,316   National Grid PLC (GBP) (c)   99,151
515   Next PLC (GBP) (c)   43,179
9,339   OSB Group PLC (GBP) (c)   34,097
3,896   RELX PLC (GBP) (c)   136,078
6,080   Shell PLC (GBP) (c)   195,939
37,009   Taylor Wimpey PLC (GBP) (c)   49,986
26,638   Tesco PLC (GBP) (c)   87,414
3,790   Unilever PLC (GBP) (c)   179,497
        1,849,230
    Total Investments – 99.1%   8,305,727
    (Cost $9,293,652)    
    Net Other Assets and Liabilities – 0.9%   77,665
    Net Assets – 100.0%   $8,383,392
    
(a) Portfolio securities are categorized based upon their country of incorporation. For a breakdown of the portfolio securities by sector, please see the Fund Performance Overview.
(b) Securities are issued in U.S. dollars unless otherwise indicated in the security description.
(c) This security is fair valued by the Advisor’s Pricing Committee in accordance with procedures approved by the Trust’s Board of Trustees and in accordance with provisions of the Investment Company Act of 1940 and rules thereunder, as amended. At October 31, 2023, securities noted as such are valued at $8,119,792 or 96.9% of net assets. Certain of these securities are fair valued using a factor provided by a third-party pricing service due to the change in value between the foreign markets’ close and the New York Stock Exchange close exceeding a certain threshold. On days when this threshold is not exceeded, these securities are typically valued at the last sale price on the exchange on which they are principally traded.
(d) Non-income producing security.
(e) This security may be resold to qualified foreign investors and foreign institutional buyers under Regulation S of the Securities Act of 1933, as amended (the “1933 Act”).
 
See Notes to Financial Statements
Page 19
Table of Contents
First Trust RiverFront Dynamic Europe ETF (RFEU)
Portfolio of Investments (Continued)
October 31, 2023
(f) This security is exempt from registration upon resale under Rule 144A of the 1933 Act and may be resold in transactions exempt from registration, normally to qualified institutional buyers. This security is not restricted on the foreign exchange where it trades freely without any additional registration. As such, it does not require the additional disclosure required of restricted securities.
(g) Pursuant to procedures adopted by the Trust’s Board of Trustees, this security has been determined to be illiquid by First Trust Advisors L.P., the Fund’s advisor.
(h) This security’s value was determined using significant unobservable inputs (see Note 2A – Portfolio Valuation in the Notes to Financial Statements).
    
Abbreviations throughout the Portfolio of Investments:
AUD – Australian Dollar
CHF – Swiss Franc
DKK – Danish Krone
EUR – Euro
GBP – British Pound Sterling
ILS – Israeli Shekel
NOK – Norwegian Krone
SEK – Swedish Krona
    
Currency Exposure
Diversification 		% of Total
Investments
EUR 48.8%
GBP 24.4
CHF 15.3
DKK 6.9
NOK 1.8
SEK 1.6
AUD 0.8
ILS 0.4
Total 100.0%
Valuation Inputs
A summary of the inputs used to value the Fund’s investments as of October 31, 2023 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements):
  Total
Value at
10/31/2023 		Level 1
Quoted
Prices 		Level 2
Significant
Observable
Inputs 		Level 3
Significant
Unobservable
Inputs
Common Stocks:        
Austria $ 161,976 $ 46,126 $ 115,850 $ —
Spain  487,050  87,645  399,405  —
Switzerland  1,266,205  13,831  1,252,374  —
United Kingdom  1,849,230  38,333  1,810,897  —**
Other Country Categories*  4,541,266  —  4,541,266  —
Total Investments $ 8,305,727 $ 185,935 $ 8,119,792 $—**
    
* See Portfolio of Investments for country breakout.
** Investment is valued at $0.
Level 3 investments are fair valued by the Advisor’s Pricing Committee and are footnoted in the Portfolio of Investments. All Level 3 values are based on unobservable inputs.
 
Page 20
See Notes to Financial Statements
Table of Contents
First Trust RiverFront Dynamic Emerging Markets ETF (RFEM)
Portfolio of Investments
October 31, 2023
Shares   Description   Value
COMMON STOCKS (a) (b) – 99.6%
    Bermuda – 2.2%    
256,000   COSCO SHIPPING Ports Ltd. (HKD) (c)   $154,443
357,500   Luye Pharma Group Ltd. (HKD) (c) (d) (e) (f)   173,211
17,500   Orient Overseas International Ltd. (HKD) (c)   220,671
350,000   Skyworth Group Ltd. (HKD) (c)   126,471
        674,796
    Brazil – 11.7%    
29,720   Allos SA (BRL)   134,990
33,858   Banco do Brasil S.A. (BRL)   324,696
51,170   BB Seguridade Participacoes S.A. (BRL)   312,191
46,799   Fleury S.A. (BRL)   139,142
29,120   Gerdau S.A. (BRL)   115,862
38,972   Gerdau S.A. ADR   169,139
74,292   JBS S.A. (BRL)   295,149
62,318   Petroleo Brasileiro S.A. (BRL)   467,717
20,606   Petroleo Brasileiro S.A., ADR   309,090
22,508   Petroleo Brasileiro S.A., ADR   311,286
31,906   Suzano S.A. (BRL)   326,353
37,266   Vale S.A. (BRL)   510,012
20,216   Vale S.A., ADR   277,161
        3,692,788
    Cayman Islands – 11.3%    
73,372   Alibaba Group Holding Ltd. (HKD) (c) (d)   755,371
24,058   ANTA Sports Products Ltd. (HKD) (c)   272,084
257,000   China Feihe Ltd. (HKD) (c) (e) (f)   159,693
111,000   China Medical System Holdings Ltd. (HKD) (c)   177,500
150,000   CIMC Enric Holdings Ltd. (HKD) (c)   127,304
152,000   Dongyue Group Ltd. (HKD) (c)   121,076
280,000   Fufeng Group Ltd. (HKD) (c)   145,424
12,226   Meituan, Class B (HKD) (c) (d) (e) (f)   173,304
325   PDD Holdings, Inc. (d)   32,961
57,600   Pop Mart International Group Ltd. (HKD) (c) (e) (f)   159,005
31,633   Tencent Holdings Ltd. (HKD) (c)   1,170,698
169,000   Topsports International Holdings, Ltd. (HKD) (c) (e) (f)   142,119
102,454   Wisdom Marine Lines Co., Ltd. (TWD) (c)   132,292
        3,568,831
    Chile – 3.3%    
2,889,144   Banco de Chile (CLP) (c)   296,761
2,863,354   Cia Sud Americana de Vapores S.A. (CLP) (c)   159,002
Shares   Description   Value
    Chile (Continued)    
83,342   Empresas CMPC S.A. (CLP)   $148,991
2,381,247   Enel Chile S.A. (CLP) (c)   140,941
13,094,745   Norte Grande S.A. (CLP)   111,927
3,984   Sociedad Quimica y Minera de Chile S.A., ADR   192,826
        1,050,448
    Greece – 1.5%    
100,739   Eurobank Ergasias Services and Holdings S.A. (EUR) (c) (d)   164,661
6,375   Motor Oil Hellas Corinth Refineries S.A. (EUR)   151,771
9,620   OPAP S.A. (EUR) (c)   162,946
        479,378
    Hong Kong – 2.0%    
126,000   China Merchants Port Holdings Co., Ltd. (HKD) (c)   160,390
209,500   China Resources Pharmaceutical Group Ltd. (HKD) (c) (e) (f)   130,140
299,714   Lenovo Group Ltd. (HKD) (c)   348,787
        639,317
    India – 21.7%    
86,525   Adani Power Ltd. (INR) (d)   377,292
4,751   Bajaj Finance Ltd. (INR) (c)   427,683
123,811   Bank of Baroda (INR) (c)   291,936
5,648   Britannia Industries Ltd. (INR) (c)   300,447
59,919   CG Power & Industrial Solutions Ltd. (INR) (c)   280,606
25,562   HCL Technologies Ltd. (INR) (c)   392,081
14,967   Hindustan Unilever Ltd. (INR) (c)   446,666
52,681   ICICI Bank Ltd. (INR) (c)   579,586
148,203   IDFC Ltd. (INR) (c)   204,026
20,410   Indian Railway Catering & Tourism Corp. Ltd. (INR) (c)   163,136
2,171   Infosys Ltd. (INR) (c)   35,704
68,046   ITC Ltd. (INR) (c)   350,270
7,380   Jio Financial Services Ltd. (INR) (d)   19,412
28,206   LIC Housing Finance Ltd. (INR) (c)   155,643
2,079   LTIMindtree Ltd. (INR) (c) (e) (f)   126,488
107,200   Power Finance Corp., Ltd. (INR) (c)   317,472
56,146   REC Ltd. (INR) (c)   194,069
7,167   Reliance Industries Ltd. (INR) (c)   197,077
13,661   Shriram Transport Finance Co., Ltd. (INR) (c)   308,263
50,346   State Bank of India (INR) (c)   342,105
25,444   Sun Pharmaceutical Industries Ltd. (INR) (c)   332,659
 
See Notes to Financial Statements
Page 21
Table of Contents
First Trust RiverFront Dynamic Emerging Markets ETF (RFEM)
Portfolio of Investments (Continued)
October 31, 2023
Shares   Description   Value
COMMON STOCKS (a) (b) (Continued)
    India (Continued)    
11,787   Tata Consultancy Services Ltd. (INR) (c)   $477,180
9,895   Titan Co., Ltd. (INR) (c)   379,332
51,578