FUND
NAME |
TICKER
SYMBOL |
EXCHANGE |
First Trust
High Income Strategic Focus ETF |
HISF |
Nasdaq |
Portfolio
Turnover Rate
| |
Fiscal
Year Ended October 31, | |
2023 |
2022 |
38% |
149% |
Name
and
Year of
Birth |
Position
and
Offices
with
Trust |
Term
of
Office
and
Year
First
Elected
or
Appointed |
Principal
Occupations
During
Past 5 Years |
Number
of
Portfolios
in the
First
Trust
Fund
Complex
Overseen
by
Trustee |
Other
Trusteeships
or
Directorships
Held
by
Trustee
During
the
Past 5
Years |
TRUSTEE
WHO IS AN INTERESTED PERSON OF THE TRUST | |||||
James A.
Bowen (1)
1955 |
Chairman of
the
Board and
Trustee |
•Indefinite
term
•Since
inception |
Chief
Executive Officer, First Trust
Advisors
L.P. and First Trust Portfolios
L.P.;
Chairman of the Board of Directors,
BondWave
LLC (Software Development
Company)
and Stonebridge Advisors LLC
(Investment
Advisor) |
261
Portfolios |
None |
INDEPENDENT
TRUSTEES | |||||
Richard E.
Erickson
1951 |
Trustee |
•Indefinite
term
•Since
inception |
Retired;
Physician, Edward-Elmhurst
Medical
Group (2021 to September
2023);
Physician and Officer, Wheaton
Orthopedics
(1990 to 2021) |
261
Portfolios |
None |
Thomas R.
Kadlec
1957 |
Trustee |
•Indefinite
term
•Since
inception |
Retired;
President, ADM Investor
Services,
Inc. (Futures Commission
Merchant)
(2010 to July 2022) |
261
Portfolios |
Director,
National
Futures
Association;
formerly,
Director
of ADM
Investor
Services,
Inc.,
ADM
Investor
Services
International,
ADMIS Hong
Kong
Ltd., ADMIS
Singapore
Ltd. and
Futures
Industry
Association
|
Name
and
Year of
Birth |
Position
and
Offices
with
Trust |
Term
of
Office
and
Year
First
Elected
or
Appointed |
Principal
Occupations
During
Past 5 Years |
Number
of
Portfolios
in the
First
Trust
Fund
Complex
Overseen
by
Trustee |
Other
Trusteeships
or
Directorships
Held
by
Trustee
During
the
Past 5
Years |
INDEPENDENT
TRUSTEES | |||||
Denise M.
Keefe
1964 |
Trustee |
•Indefinite
term
•Since
2021 |
Executive
Vice President, Advocate
Aurora
Health and President, Advocate
Aurora
Continuing Health Division
(Integrated
Healthcare System) |
261
Portfolios |
Director
and Board
Chair of
Advocate
Home Health
Services,
Advocate
Home Care
Products
and
Advocate
Hospice;
Director
and Board
Chair of
Aurora At
Home (since
2018);
Director of
Advocate
Physician
Partners
Accountable
Care
Organization;
Director of
RML
Long Term
Acute
Care
Hospitals;
Director of
Senior
Helpers
(since
2021); and
Director of
MobileHelp
(since
2022) |
Robert F.
Keith
1956 |
Trustee |
•Indefinite
term
•Since
inception |
President,
Hibs Enterprises (Financial and
Management
Consulting) |
261
Portfolios |
Formerly,
Director
of Trust
Company
of
Illinois |
Niel B.
Nielson
1954 |
Trustee |
•Indefinite
term
•Since
inception |
Senior
Advisor (2018 to present),
Managing
Director and Chief Operating
Officer
(2015 to 2018), Pelita Harapan
Educational
Foundation (Educational
Products
and Services) |
261
Portfolios |
None |
Bronwyn
Wright
1971 |
Trustee |
•Indefinite
term
•Since
2023 |
Independent
Director to a number of Irish
collective
investment funds (2009 to
present);
Various roles at international
affiliates
of Citibank (1994 to 2009),
including
Managing Director, Citibank
Europe plc
and Head of Securities and
Fund
Services, Citi Ireland (2007 to
2009) |
237
Portfolios |
None |
Name
and
Year
of Birth |
Position
and
Offices
with Trust |
Term
of Office and
Length
of Service |
Principal
Occupations
During
Past 5 Years |
OFFICERS
OF THE TRUST | |||
James
M. Dykas
1966 |
President
and Chief
Executive
Officer |
•Indefinite
term
•Since
2016 |
Managing
Director and Chief Financial Officer, First
Trust
Advisors L.P. and First Trust Portfolios L.P.;
Chief
Financial Officer, BondWave LLC (Software
Development
Company) and Stonebridge Advisors
LLC
(Investment Advisor) |
W.
Scott Jardine
1960 |
Secretary
and Chief Legal
Officer |
•Indefinite
term
•Since
inception |
General
Counsel, First Trust Advisors L.P. and First
Trust
Portfolios L.P.; Secretary and General Counsel,
BondWave
LLC; and Secretary, Stonebridge Advisors
LLC |
Daniel
J. Lindquist
1970 |
Vice
President |
•Indefinite
term
•Since
inception |
Managing
Director, First Trust Advisors L.P. and First
Trust
Portfolios L.P. |
Kristi
A. Maher
1966 |
Chief
Compliance Officer
and
Assistant Secretary |
•Indefinite
term
•Chief
Compliance
Officer
since January
2011
•Assistant
Secretary
since
inception |
Deputy
General Counsel, First Trust Advisors L.P.
and
First Trust Portfolios L.P.
|
Name
and
Year of
Birth |
Position
and
Offices
with Trust |
Term of
Office and
Length of
Service |
Principal
Occupations
During
Past 5 Years |
Derek D.
Maltbie
1972 |
Treasurer,
Chief Financial
Officer and
Chief
Accounting
Officer |
•Indefinite
term
•Since
2023 |
Senior Vice
President, First Trust Advisors L.P. and
First Trust
Portfolios L.P., July 2021 – present.
Previously,
Vice President, First Trust Advisors L.P.
and First
Trust Portfolios L.P., 2014 –2021. |
Roger F.
Testin
1966 |
Vice
President |
•Indefinite
term
•Since
inception |
Senior Vice
President, First Trust Advisors L.P. and
First Trust
Portfolios L.P. |
Stan
Ueland
1970 |
Vice
President |
•Indefinite
term
•Since
inception |
Senior Vice
President, First Trust Advisors L.P. and
First Trust
Portfolios L.P. |
Name
of Trustee |
Total
Compensation from
the Fund
(1)
|
Total
Compensation from
the First
Trust Fund Complex (2)
|
Richard E.
Erickson |
$3,684 |
$575,698 |
Thomas R.
Kadlec |
$3,683 |
$570,691 |
Denise M.
Keefe |
$3,678 |
$550,664 |
Robert F.
Keith |
$3,685 |
$580,705 |
Niel B.
Nielson |
$3,684 |
$570,691 |
Bronwyn
Wright (3) |
$943 |
$274,250 |
Trustee |
Dollar
Range of Equity
Securities
in the Fund
(Number
of Shares
Held) |
Aggregate
Dollar
Range
of Equity
Securities
in All
Registered
Investment
Companies
Overseen
by
Trustee in the First
Trust
Fund Complex |
Interested
Trustee | ||
James
A. Bowen |
None |
Over
$100,000
|
Trustee |
Dollar
Range of Equity
Securities
in the Fund
(Number of
Shares
Held) |
Aggregate
Dollar
Range of
Equity
Securities
in All
Registered
Investment
Companies
Overseen
by Trustee
in the First
Trust Fund
Complex |
Independent
Trustees | ||
Richard E.
Erickson |
None |
Over
$100,000 |
Thomas R.
Kadlec |
None |
Over
$100,000 |
Denise M.
Keefe |
None |
Over
$100,000 |
Robert F.
Keith |
None |
Over
$100,000 |
Niel B.
Nielson |
None |
Over
$100,000 |
Bronwyn
Wright(1) |
None |
None |
Management
Fee |
Breakpoints |
0.20000% |
Fund net
assets up to and including $2.5 billion |
0.19500% |
Fund net
assets greater than $2.5 billion up to and including $5
billion |
0.19000% |
Fund net
assets greater than $5 billion up to and including $7.5
billion |
0.18500% |
Fund net
assets greater than $7.5 billion up to and including $10
billion |
0.18000% |
Fund net
assets greater than $10 billion up to and including $15
billion |
0.17000% |
Fund net
assets greater than $15
billion |
Amount of
Unitary Fees
|
Amount of
Fees Waived By First Trust
| ||||
Fiscal
Year Ended October 31, |
Fiscal
Year Ended October 31, | ||||
2023 |
2022 |
2021 |
2023 |
2022 |
2021 |
$72,162 |
$178,604 |
$290,388 |
$0 |
$92,981 |
$290,630 |
Name |
Position
with
First
Trust |
Length
of Service
with
First Trust |
Principal
Occupation During
Past
Five Years |
Daniel
J. Lindquist |
Chairman of
the
Investment
Committee
and Managing
Director |
Since
2004 |
Chairman
of the Investment Committee
and
Managing Director (2012 to present),
Senior
Vice President (2005 to 2012), First Trust
Advisors
L.P. and First Trust Portfolios L.P. |
David
G. McGarel |
Chief
Investment Officer,
Chief
Operating Officer
and Managing
Director |
Since
1997 |
Chief
Operating Officer and
Managing
Director (2012 to present),
First
Trust Advisors L. P. and First Trust Portfolios
L.P. |
Chris
A. Peterson |
Senior Vice
President |
Since
2000 |
Senior
Vice President, First Trust Advisors L.P. |
William
Housey |
Managing
Director of
Fixed
Income |
Since
2010 |
Senior
Vice President and Senior Portfolio Manager,
First
Trust Advisors L.P. |
Steve
Collins |
Senior Vice
President |
Since
2007 |
Senior
Vice President (2019 to present),
Vice
President (2016-2019), First Trust Advisors
L.P. |
Portfolio
Managers |
Registered
Investment
Companies
Number
of
Accounts
($ Assets
in
Thousands) |
Other
Pooled
Investment
Vehicles
Number
of
Accounts
($ Assets
in
Thousands) |
Other
Accounts
Number
of
Accounts
($ Assets
in
Thousands) |
Registered
Investment
Companies
With
Performance
Fees
Number
of
Accounts
($ Assets
in
Thousands) |
Other
Pooled
Investment
Vehicles
With
Performance
Fees
Number
of
Accounts
($ Assets
in
Thousands) |
Other
Accounts
With
Performance
Fees
Number
of
Accounts
($ Assets
in
Thousands) |
Daniel J.
Lindquist |
120
($77,365,820) |
43
($1,744,206) |
1,102
($361,571) |
N/A |
N/A |
N/A |
David G.
McGarel |
121
($77,381,347) |
43
($1,744,206) |
1,102
($361,571) |
N/A |
N/A |
N/A |
Chris A.
Peterson |
121
($77,381,347) |
43
($1,744,206) |
1,102
($361,571) |
N/A |
N/A |
N/A |
William
Housey |
9
($5,544,987) |
1
($198) |
N/A |
N/A |
N/A |
N/A |
Steve
Collins |
1
($10,070) |
N/A |
N/A |
N/A |
N/A |
N/A |
Aggregate
Amount of Brokerage Commissions
| ||
Fiscal
Year Ended October 31, | ||
2023 |
2022 |
2021 |
$8,151 |
$13,615 |
$31,762 |
Total
Non-Expiring
Capital
Loss
Available |
$8,546,144 |
NAME OF
BENEFICIAL OWNER |
%
OF
OUTSTANDING
SHARES
OWNED |
FIRST
TRUST HIGH INCOME STRATEGIC FOCUS INCOME ETF | |
LPL Financial
LLC |
21.54% |
Charles
Schwab & Co., Inc. |
17.04% |
Pershing
LLC |
16.03% |
National
Financial Services LLC |
14.90% |
Raymond James
& Associates, Inc. |
9.17% |
RBC Capital
Markets, LLC |
7.21% |
AAA |
An
obligation rated “AAA” has the highest rating assigned by S&P Global
Ratings. The obligor’s capacity to
meet
its financial commitment on the obligation is extremely
strong. |
AA |
An
obligation rated “AA” differs from the highest rated obligations only in
small degree. The obligor’s capacity
to
meet its financial commitment on the obligation is very
strong. |
A |
An
obligation rated “A” is somewhat more susceptible to the adverse effects
of changes in circumstances and
economic
conditions than obligations in higher rated categories. However, the
obligor’s capacity to meet its
financial
commitment on the obligation is still strong. |
BBB |
An
obligation rated “BBB” exhibits adequate protection parameters. However,
adverse economic conditions
or
changing circumstances are more likely to lead to a weakened capacity of
the obligor to meet its financial
commitment
on the obligation. |
BB |
An
obligation rated “BB” is less vulnerable to nonpayment than other
speculative issues. However, it faces
major
ongoing uncertainties or exposure to adverse business, financial, or
economic conditions which could
lead
to the obligor’s inadequate capacity to meet its financial commitment on
the obligation. |
B |
An
obligation rated “B” is more vulnerable to nonpayment than obligations
rated “BB,” but the obligor
currently
has the capacity to meet its financial commitment on the obligation.
Adverse business, financial, or
economic
conditions will likely impair the obligor’s capacity or willingness to
meet its financial commitment on
the
obligation. |
CCC |
An
obligation rated “CCC” is currently vulnerable to nonpayment, and is
dependent upon favorable business,
financial,
and economic conditions for the obligor to meet its financial commitment
on the obligation. In the
event
of adverse business, financial, or economic conditions, the obligor is not
likely to have the capacity to
meet
its financial commitment on the obligation. |
CC |
An
obligation rated “CC” is currently highly vulnerable to nonpayment. The
“CC” rating is used when a default
has
not yet occurred but S&P expects default to be a virtual certainty
regardless of the anticipated time to
default.
|
C |
An
obligation rated “C” is currently highly vulnerable to nonpayment and the
obligation is expected to have
lower
relative seniority or lower ultimate recovery compared to obligations that
are rated higher. |
D |
An
obligation rated “D” is in default or in breach of an imputed promise. For
non-hybrid capital instruments,
the
“D” rating category is used when payments on an obligation are not made on
the date due unless S&P
believes
that such payments will be made within the next five business days in the
absence of a stated grace
period
or within the earlier of the stated grace period or the next 30 calendar
days. The “D” rating also will be
used
upon the filing of a bankruptcy petition or the taking of similar action
and where default on an obligation
is
a virtual certainty, for example due to automatic stay provisions. A
rating on an obligation is lowered to 'D' if
it
is subject to a distressed debt
restructuring. |
Aaa |
Obligations
rated Aaa are judged to be of the highest quality, subject to the lowest
level of credit risk. |
Aa |
Obligations
rated Aa are judged to be of high quality and are subject to very low
credit risk. |
A |
Obligations
rated A are judged to be upper-medium grade and are subject to low credit
risk. |
Baa |
Obligations
rated Baa are judged to be medium-grade and subject to moderate credit
risk and as such may
possess
certain speculative characteristics. |
Ba |
Obligations
rated Ba are judged to be speculative and are subject to substantial
credit risk. |
B |
Obligations
rated B are considered speculative and are subject to high credit
risk. |
Caa |
Obligations
rated Caa are judged to be speculative of poor standing and are subject to
very high credit risk. |
Ca |
Obligations
rated Ca are highly speculative and are likely in, or very near, default,
with some prospect of
recovery
of principal and interest. |
C |
Obligations
rated C are the lowest rated and are typically in default, with little
prospect for recovery of
principal
or interest. |
AAA |
Highest
credit quality. ‘AAA’ ratings denote the lowest expectation of default
risk. They are assigned only in
cases
of exceptionally strong capacity for payment of financial commitments.
This capacity is highly unlikely
to
be adversely affected by foreseeable events. |
AA |
Very
high credit quality. ‘AA’ ratings denote expectations of very low default
risk. They indicate very strong
capacity
for payment of financial commitments. This capacity is not significantly
vulnerable to foreseeable
events. |
A |
High
credit quality. ‘A’ ratings denote expectations of low default risk. The
capacity for payment of financial
commitments
is considered strong. This capacity may, nevertheless, be more vulnerable
to adverse business
or
economic conditions than is the case for higher
ratings. |
BBB |
Good
credit quality. ‘BBB’ ratings indicate that expectations of default risk
are currently low. The capacity for
payment
of financial commitments is considered adequate but adverse business or
economic conditions are
more
likely to impair this capacity. |
BB |
Speculative.
‘BB’ ratings indicate an elevated vulnerability to default risk,
particularly in the event of adverse
changes
in business or economic conditions over time; however, business or
financial flexibility exists which
supports
the servicing of financial commitments. |
B |
Highly
speculative. ‘B’ ratings indicate that material default risk is present,
but a limited margin of safety
remains.
Financial commitments are currently being met; however, capacity for
continued payment is
vulnerable
to deterioration in the business and economic
environment. |
CCC |
Substantial
credit risk. Default is a real possibility. |
CC |
Very
high levels of credit risk. Default of some kind appears
probable. |
C |
Exceptionally
high levels of credit risk. Default is imminent or inevitable, or the
issuer is in standstill.
Conditions
that are indicative of a ‘C’ category rating for an issuer
include:
•the
issuer has entered into a grace or cure period following non-payment of a
material financial obligation;
•the
issuer has entered into a temporary negotiated waiver or standstill
agreement following a payment
default
on a material financial obligation; or
•Fitch
otherwise believes a condition of ‘RD’ or ‘D’ to be imminent or
inevitable, including through the formal
announcement
of a distressed debt exchange.
|
RD |
Restricted
default. ‘RD’ ratings indicate an issuer that in Fitch’s opinion has
experienced an uncured payment
default
on a bond, loan or other material financial obligation but which has not
entered into bankruptcy
filings,
administration, receivership, liquidation or other formal winding-up
procedure, and which has not
otherwise
ceased operating. This would include:
•the
selective payment default on a specific class or currency of
debt;
•the
uncured expiry of any applicable grace period, cure period or default
forbearance period following a
payment
default on a bank loan, capital markets security or other material
financial obligation;
•the
extension of multiple waivers or forbearance periods upon a payment
default on one or more material
financial
obligations, either in series or in parallel; or
•execution
of a distressed debt exchange on one or more material financial
obligations. |
D |
Default.
‘D’ ratings indicate an issuer that in Fitch’s opinion has entered into
bankruptcy filings,
administration,
receivership, liquidation or other formal winding-up procedure, or which
has otherwise ceased
business. |