FIRST TRUST

First Trust Exchange-Traded Fund IV

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First Trust High Income Strategic Focus ETF (HISF) (formerly First Trust
Strategic Income ETF (FDIV))


Annual Report
For the Year Ended
October 31, 2022





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TABLE OF CONTENTS
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               FIRST TRUST HIGH INCOME STRATEGIC FOCUS ETF (HISF)
                                 ANNUAL REPORT
                                OCTOBER 31, 2022

Shareholder Letter...........................................................  1
Fund Performance Overview....................................................  2
Portfolio Commentary.........................................................  4
Understanding Your Fund Expenses.............................................  6
Portfolio of Investments.....................................................  7
Statement of Assets and Liabilities..........................................  8
Statement of Operations......................................................  9
Statements of Changes in Net Assets.......................................... 10
Financial Highlights......................................................... 11
Notes to Financial Statements................................................ 12
Report of Independent Registered Public Accounting Firm...................... 21
Additional Information....................................................... 22
Board of Trustees and Officers............................................... 29
Privacy Policy............................................................... 31

                  CAUTION REGARDING FORWARD-LOOKING STATEMENTS

This report contains certain forward-looking statements within the meaning of
the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934,
as amended. Forward-looking statements include statements regarding the goals,
beliefs, plans or current expectations of First Trust Advisors L.P. ("First
Trust" or the "Advisor") and its representatives, taking into account the
information currently available to them. Forward-looking statements include all
statements that do not relate solely to current or historical fact. For example,
forward-looking statements include the use of words such as "anticipate,"
"estimate," "intend," "expect," "believe," "plan," "may," "should," "would" or
other words that convey uncertainty of future events or outcomes.

Forward-looking statements involve known and unknown risks, uncertainties and
other factors that may cause the actual results, performance or achievements of
the series of First Trust Exchange-Traded Fund IV (the "Trust") described in
this report (First Trust High Income Strategic Focus ETF; hereinafter referred
to as the "Fund") to be materially different from any future results,
performance or achievements expressed or implied by the forward-looking
statements. When evaluating the information included in this report, you are
cautioned not to place undue reliance on these forward-looking statements, which
reflect the judgment of the Advisor and its representatives only as of the date
hereof. We undertake no obligation to publicly revise or update these
forward-looking statements to reflect events and circumstances that arise after
the date hereof.

                        PERFORMANCE AND RISK DISCLOSURE

There is no assurance that the Fund will achieve its investment objectives. The
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 the Fund. See "Risk Considerations" in the Additional
Information section of this report for a discussion of certain other risks of
investing in the Fund.

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 the Fund's webpage at www.ftportfolios.com.

                            HOW TO READ THIS REPORT

This report contains information that may help you evaluate your investment in
the Fund. It includes details about the Fund and presents data and analysis that
provide insight into the Fund's performance and investment approach.

By reading the portfolio commentary from the portfolio management team of the
Fund, you may obtain an understanding of how the market environment affected the
Fund's performance. The statistical information that follows may help you
understand the Fund's performance compared to that of relevant market
benchmarks.

It is important to keep in mind that the opinions expressed by personnel of the
Advisor are just that: informed opinions. They should not be considered to be
promises or advice. The opinions, like the statistics, cover the period through
the date on the cover of this report. The material risks of investing in the
Fund are spelled out in the prospectus, the statement of additional information,
and other Fund regulatory filings.





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SHAREHOLDER LETTER
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               FIRST TRUST HIGH INCOME STRATEGIC FOCUS ETF (HISF)
                    ANNUAL LETTER FROM THE CHAIRMAN AND CEO
                                OCTOBER 31, 2022


Dear Shareholders:

First Trust is pleased to provide you with the annual report for the First Trust
High Income Strategic Focus ETF (the "Fund"), which contains detailed
information about the Fund for the twelve months ended October 31, 2022.

As I'm writing this letter in mid-November, it strikes me that things appear to
be a little more chaotic in the current climate than normal. One of the things
that may have contributed to the chaotic nature of the news flow of late was the
November mid-term election. For the most part, except for a few seats in
Congress, the election is behind us. We learned there would be no "red wave"
(Republicans gaining a strong majority in Congress) but likely gridlock ahead.
Gridlock has been good for stock market investors in the past few decades,
particularly when there's been a Democratic president and the Republicans have
control of at least one house of Congress, according to Brian Wesbury, Chief
Economist at First Trust.

The Federal Reserve (the "Fed") has kept its promise to aggressively hike
interest rates to combat robust inflation. As of November 13, 2022, the Fed has
increased the Federal Funds target rate (upper bound) six times, from 0.25% to
4.00%. The Fed's actions have some investors and pundits looking for evidence
linking the interest rate hikes to a downturn in the economy. In short, the hope
is that a pullback in economic activity might deter the Fed from executing
further interest rate hikes. Fed Chairman Jerome Powell, however, recently said
that the terminal rate (the ultimate rate the Fed is targeting) will likely need
to be higher than previously estimated in order to curb stubbornly high
inflation. The Consumer Price Index ("CPI") is a commonly used measure of
inflation. The CPI stood at 7.7% on a trailing 12-month basis as of October 31,
2022, according to the U.S. Bureau of Labor Statistics. That is down from its
recent high of 9.1% in June 2022. Prior to this year, the last time the CPI was
higher than 7.0% was over 40 years ago. While monetary policy is an ongoing
process subject to change, the Fed does appear to be steadfast in its mission to
bring the rate of inflation back to its preferred level of 2.0%, and that will
take some time, in my opinion. Stay tuned!

Equity and fixed income markets have contended with numerous headwinds this
year, such as the war between Russia and Ukraine. Since setting its all-time
high of 4,796.56 on January 3, 2022, the S&P 500(R) Index has been in a bear
market (a price decline of 20% or more from the most recent high) for the better
part of 310 days. Suffice it to say, we are all looking forward to the end of
this bear market. With respect to corrections and bear markets, the silver
lining is that the S&P 500(R) Index has never failed to fully recover the losses
sustained in any previous downturn. Where might we see demand for stocks moving
forward? One such source could be stock buybacks. As of the last week of October
2022, U.S. companies had announced stock buybacks totaling $1 trillion so far
this year, according to Birinyi Associates. The fixed income market has not been
immune to selling pressure either. Year-to-date through November 10, 2022,
yields on the 10-Year Treasury Note increased by 258 basis points. As you may be
aware, bond yields and bond prices are inversely related, particularly with
respect to investment-grade bonds. As yields rise, prices fall and vice versa.
As noted above, the Fed has more work to do, so bond investors should not be
surprised to see interest rates and bond yields trend at least a bit higher in
the months ahead.

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 Fund
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 1





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FUND PERFORMANCE OVERVIEW (UNAUDITED)
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FIRST TRUST HIGH INCOME STRATEGIC FOCUS ETF (HISF)

The First Trust High Income Strategic Focus ETF's (the "Fund"), formerly First
Trust Strategic Income ETF, primary investment objective is to seek
risk-adjusted income. The Fund's secondary investment objective is capital
appreciation. Under normal market conditions, the Fund seeks to achieve its
investment objectives by investing in a portfolio of U.S.-listed exchange-traded
funds ("Underlying ETFs") that are designed to follow the High Income Model (the
"High Income Model") developed by the Fund's investment advisor, First Trust
Advisors L.P. ("First Trust" or the "Advisor"). The Fund, through its
investments in the Underlying ETFs comprising the High Income Model, seeks to
provide investors with a diversified income stream by holding a blend of fixed
income assets that are actively managed to seek levels of high income and total
return. The High Income Model is principally composed of ETFs for which First
Trust serves as investment advisor. Therefore, a significant portion of the ETFs
in which the Fund invests are advised by First Trust. However, the Fund may also
invest in ETFs other than First Trust ETFs. Shares of the Fund are listed on The
Nasdaq Stock Market LLC under the ticker symbol "HISF."

Prior to February 28, 2022, the Fund was a multi-manager, multi-strategy
actively managed exchange-traded fund. The following served as investment
sub-advisors to the Fund: First Trust Global Portfolios Limited ("FTGP"); Energy
Income Partners, LLC ("EIP"); Stonebridge Advisors LLC ("Stonebridge"); and
Richard Bernstein Advisors LLC ("RBA") (each, a "Sub-Advisor" and together, the
"Sub-Advisors"). The Advisor's Investment Committee determined the Fund's
strategic allocation among various general investment categories and allocated
the Fund's assets to portfolio management teams comprised of personnel of the
Advisor and/or a Sub-Advisor (each, a "Management Team"), which employed their
respective investment strategies. The Fund sought to achieve its objectives by
having each Management Team focus on those securities within its respective
investment category. The Fund added or removed investment categories or
Management Teams at the discretion of the Advisor.

The Fund's investment categories were: (i) high-yield corporate bonds, commonly
referred to as "junk" bonds, and first lien senior secured floating rate bank
loans; (ii) mortgage-related investments; (iii) preferred securities; (iv)
international sovereign bonds, including securities issued by emerging market
countries; (v) equity securities of Energy Infrastructure Companies(1), certain
of which are master limited partnerships ("MLPs"); and (vi) dividend paying U.S.
exchange-traded equity securities (including common stock) of companies (that
may be domiciled in or outside of the United States) and depositary receipts.
The Management Teams utilized a related option overlay strategy and/or
derivative instruments in implementing their respective investment strategies
for the Fund. Additionally, the Management Teams sought exposure to these asset
classes directly or through investments in ETFs.



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PERFORMANCE
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                                                                          AVERAGE ANNUAL TOTAL RETURNS   CUMULATIVE TOTAL RETURNS
                                                                1 Year      5 Years       Inception      5 Years       Inception
                                                                Ended        Ended        (8/13/14)       Ended        (8/13/14)
                                                               10/31/22     10/31/22     to 10/31/22     10/31/22     to 10/31/22
                                                                                                           
FUND PERFORMANCE
NAV                                                            -10.38%        1.12%         2.34%          5.73%         20.96%
Market Price                                                   -10.49%        1.11%         2.34%          5.67%         20.97%

INDEX PERFORMANCE
Blended Index(2)                                               -14.37%        0.25%         1.45%          1.27%         12.53%
Bloomberg U.S. Aggregate Bond Index                            -15.68%       -0.54%         0.63%         -2.68%          5.34%
Russell 3000(R) Index                                          -16.52%        9.87%        10.33%         60.08%        124.20%
Prior Blended Benchmark(3)                                      -5.81%        3.36%         3.29%         17.96%         30.44%
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On February 28, 2022, the Fund changed its principal investment strategies.
Therefore, the Fund's performance and historical returns shown above are not
necessarily indicative of the performance that the Fund, under its current
strategy, would have generated.

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(1)   Energy Infrastructure Companies are publicly-traded MLPs or limited
      liability companies that are taxed as partnerships; entities that control
      MLPs, entities that own general partner interests in an MLP, or MLP
      affiliates (such as I-shares or I-units); U.S. and Canadian energy yield
      corporations ("yieldcos"); pipeline companies; utilities; and other
      companies that are involved in operating or providing services in support
      of infrastructure assets such as pipeline, power transmission,
      terminalling and petroleum and natural gas storage in the petroleum,
      natural gas and power generation industries.

(2)   The Blended Index is comprised of the Bloomberg US Aggregate Bond Index
      (the "Agg") (70%) and the ICE BofA U.S. High Yield Constrained Index
      (30%).

(3)   The Prior Blended Index is equally weighted to include these six indices:
      the Alerian MLP Index, Dow Jones U.S. Select Dividend Index, ICE BofA
      Fixed Rate Preferred Securities Index, ICE BofA U.S. High Yield Index,
      Bloomberg EM USD Aggregate Index and Bloomberg U.S. MBS Index. An index
      does not charge management fees or brokerage expenses, and no such fees or
      expenses were deducted from the index performance shown. Indices are
      unmanaged and an investor cannot invest directly in an index. The Prior
      Blended Index returns are calculated by using the monthly return of the
      six indices during each period shown above. At the beginning of each month
      the six indices are rebalanced to a 16.66 percentage weighting for each to
      account for divergence from that percentage weighting that occurred during
      the course of each month. The monthly returns are then compounded for each
      period shown above, giving the performance of the Prior Blended Index for
      each period shown above.


Page 2





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FUND PERFORMANCE OVERVIEW (UNAUDITED)
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Total returns for the period since inception are calculated from the inception
date of the Fund. "Average Annual Total Returns" represent the average annual
change in value of an investment over the period indicated. "Cumulative Total
Returns" represent the total change in value of an investment over the period
indicated.

The 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. 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 the 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 the 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 the Fund at NAV and Market Price,
respectively.

An index is a statistical composite that tracks a specified financial market or
sector. Unlike the Fund, the indices do not actually hold a portfolio of
securities and therefore do not incur the expenses incurred by the Fund. These
expenses negatively impact the performance of the Fund. 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 the
Fund will vary with changes in market conditions. Shares of the Fund may be
worth more or less than their original cost when they are redeemed or sold in
the market. The Fund's past performance is no guarantee of future performance.

-----------------------------------------------------------
                                             % OF
FUND ALLOCATION                           NET ASSETS
-----------------------------------------------------------
Exchange-Traded Funds                        99.9%
Net Other Assets and Liabilities              0.1
                                            ------
     Total                                  100.0%
                                            ======



                                         PERFORMANCE OF A $10,000 INITIAL INVESTMENT
                                              AUGUST 13, 2014 - OCTOBER 31, 2022

            First Trust High Income      Blended         Bloomberg U.S.         Russell 3000(R)      Prior Blended
              Strategic Focus ETF        Index        Aggregate Bond Index           Index               Index
                                                                                         
8/13/14             $10,000              $10,000            $10,000                 $10,000             $10,000
10/31/14             10,177               10,053             10,080                  10,371              10,129
4/30/15              10,330               10,246             10,288                  10,863              10,191
10/31/15              9,989               10,133             10,280                  10,837               9,735
4/30/16              10,436               10,406             10,571                  10,844              10,006
10/31/16             10,856               10,755             10,731                  11,297              10,446
4/30/17              11,275               10,878             10,659                  12,859              10,981
10/31/17             11,442               11,112             10,827                  14,006              11,058
4/30/18              11,340               10,959             10,625                  14,537              11,029
10/31/18             11,303               10,982             10,605                  14,929              11,093
4/30/19              12,100               11,591             11,187                  16,379              11,766
10/31/19             12,502               12,146             11,826                  16,942              11,977
4/30/20              11,156               12,279             12,401                  16,208              10,915
10/31/20             11,604               12,785             12,558                  18,662              11,270
4/30/21              13,166               12,952             12,367                  24,462              13,434
10/31/21             13,499               13,141             12,498                  26,854              13,849
4/30/22              12,775               11,987             11,314                  23,699              13,341
10/31/22             12,096               11,253             10,534                  22,420              13,044


Performance figures assume reinvestment of all distributions and do not reflect
the deduction of taxes that a shareholder would pay on Fund distributions or the
redemption or sale of Fund shares. An index is a statistical composite that
tracks a specified financial market or sector. Unlike the Fund, the indices do
not actually hold a portfolio of securities and therefore do not incur the
expenses incurred by the Fund. These expenses negatively impact the performance
of the Fund. The Fund's past performance does not predict future performance.

FREQUENCY DISTRIBUTION OF DISCOUNTS AND PREMIUMS

Information showing the number of days the market price of the Fund's shares was
greater (at a premium) and less (at a discount) than the Fund's net asset value
for the most recently completed year, and the most recently completed calendar
quarters since that year (or life of the Fund, if shorter) is available at
https://www.ftportfolios.com/Retail/etf/home.aspx.


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PORTFOLIO COMMENTARY
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               FIRST TRUST HIGH INCOME STRATEGIC FOCUS ETF (HISF)
                                 ANNUAL REPORT
                          OCTOBER 31, 2022 (UNAUDITED)


                               INVESTMENT ADVISOR

First Trust Advisors L.P. ("First Trust" or the "Advisor") is the investment
advisor to the First Trust High Income Strategic Focus ETF (the "Fund" or
"HISF"). Prior to February 28, 2022, the following served as investment
sub-advisors (each, a "Sub-Advisor") to the Fund: First Trust Global Portfolios
Limited ("FTGP"); Energy Income Partners, LLC ("EIP"); Stonebridge Advisors LLC
("Stonebridge"); and Richard Bernstein Advisors LLC ("RBA"). The Advisor's
Investment Committee determined the Fund's strategic allocation among various
general investment categories and allocated the Fund's assets to portfolio
management teams comprised of personnel of the Advisor and/or Sub-Advisor, which
employed their respective investment strategies. As of March 1, 2022, First
Trust is responsible for the selection and ongoing monitoring of the investments
in the Fund's portfolio and certain other services necessary for the management
of the portfolio.

                           PORTFOLIO MANAGEMENT TEAM

DANIEL J. LINDQUIST, CHAIRMAN OF THE INVESTMENT COMMITTEE AND MANAGING DIRECTOR
   OF FIRST TRUST;
DAVID G. MCGAREL, CHIEF INVESTMENT OFFICER, CHIEF OPERATING OFFICER AND MANAGING
   DIRECTOR OF FIRST TRUST;
CHRIS A. PETERSON, CFA, SENIOR VICE PRESIDENT OF FIRST TRUST;
WILLIAM HOUSEY, CFA, MANAGING DIRECTOR OF FIXED INCOME OF FIRST TRUST; AND
STEVE COLLINS, CFA, SENIOR VICE PRESIDENT OF FIRST TRUST.

The portfolio managers are primarily and jointly responsible for the day-to-day
management of the Fund. Daniel J. Lindquist, David G. McGarel and William Housey
have served as part of the portfolio management team of the Fund since 2014.
Chris A. Peterson has served as part of the portfolio management team of the
Fund since 2016. Steve Collins has served as part of the portfolio management
team of the Fund since 2021.

                                   COMMENTARY

MARKET RECAP

For the 12-month period ended October 31, 2022, persistently high inflation, the
Federal Reserve's (the "Fed") pivot from monetary accommodation and the Russian
invasion of Ukraine in February 2022 resulted in a shift in the markets' focus
from economic growth to concern that recession risk may be meaningfully pulled
forward. Interest rates were higher across the board and the U.S. Treasury yield
curve inverted between the 2-Year and 10-Year tenors during the period. On
October 29, 2021, the 2-Year U.S. Treasury yield was 0.49% and by October 31,
2022, it had increased to 4.48% while the 10-Year U.S. Treasury yield increased
from 1.55% to 4.05%. Over the period, the Fed increased the Federal Funds target
range from 0% - 0.25% to 2.75% - 3.25%. Higher rates were a headwind for broad
based fixed income assets as the Bloomberg US Aggregate Bond Index returned
-15.68% and high yield bonds, reflected in the ICE BofA US High Yield
Constrained Index, declined 11.45% as high yield spreads increased from 317
basis points ("bps") to 465 bps, during the period. In the period following the
change in the Fund's investment strategy, from February 28, 2022 through October
31, 2022, the 10-Year yield rose from 1.83% to 4.05% while high yield corporate
bond spreads increased from 378 bps to 465 bps. The Bloomberg US Aggregate Bond
Index and ICE BofA US High Yield Constrained Index declined 12.88% and 8.89%,
respectively, over this shorter period.

In the fourth quarter of 2021, the Fed moved on from its belief that inflation
would be transitory, conceding that while it initially may have been limited to
areas related to the reopening of the economy and supply chain, it had broadened
and accelerated. They announced an accelerated pace of asset purchase tapering
and a more hawkish path for increasing its policy rate at the December 2022
Federal Open Market Committee ("FOMC") meeting.

In February 2022, the Russian invasion of Ukraine sent a shockwave through
global risk markets, which included a spike in oil and commodity prices, further
exacerbating inflationary pressure. In response, the Fed increased the Federal
Funds target rate by a quarter percentage point at the March 2022 FOMC meeting
and indicated additional rate hikes would be forthcoming throughout the year.
Through the second quarter of 2022, the curve continued to flatten and
ultimately 2-Year and 10-Year Treasuries inverted.

By mid-summer 2022, inflation remained at the highest levels in decades inducing
the Fed to hike the Federal Funds target rate 75 bps at the June 2022 FOMC
meeting. Amidst a backdrop of slowing growth and very high inflation with a
significant Fed response, risk assets tumbled in the second quarter of 2022 as
high yield bond spreads widened 245 bps and the S&P 500(R) Index declined
16.10%.


Page 4





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PORTFOLIO COMMENTARY (CONTINUED)
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               FIRST TRUST HIGH INCOME STRATEGIC FOCUS ETF (HISF)
                                 ANNUAL REPORT
                          OCTOBER 31, 2022 (UNAUDITED)

Market sentiment rebounded sharply as the third quarter of 2022 began as
resilient corporate earnings and labor market optimism fueled a rally in risk
assets that proved to be short-lived. Fed Chairman Jerome Powell made the Fed's
position on inflation abundantly clear in August 2022 at the FOMC in Jackson
Hole, stating the "overarching focus" is to bring inflation back down to the
2.0% level which "will also bring some pain to households and businesses."
Equities resumed downward and high yield bond spreads weakened through September
2022. The Fed increased the Federal Funds target rate by 75 bps in July 2022 and
again in September 2002 at the respective FOMC meetings.

PERFORMANCE ANALYSIS

The Fund returned -10.38% based on net asset value ("NAV") and -10.49% based on
market price for the 12-month period ended October 31, 2022. As noted above, the
Fund converted to a fund-of-funds strategy that follows the First Trust High
Income Model on February 28, 2022. Prior to the transition, the benchmark was
equally weighted including these six indices: the Alerian MLP Index, Dow Jones
U.S. Select Dividend Index, ICE BofA Fixed Rate Preferred Securities Index, ICE
BofA U.S. High Yield Index, Bloomberg EM USD Aggregate Index and Bloomberg U.S.
MBS Index (the "Prior Benchmark"). After the transition, the new benchmark
consists of 70% of the Bloomberg US Aggregate Bond Index, which is a broad-based
benchmark that measures the investment grade, U.S. Dollar denominated,
fixed-rate taxable bond market, and 30% of the ICE BofA US High Yield
Constrained Index which tracks the performance of U.S. dollar denominated below
investment grade corporate debt publicly issued in the U.S. domestic market but
caps issuer exposure at 2% (the "New Benchmark"). Over the same 12-month period,
the Prior Benchmark returned -5.81% and the New Benchmark returned -14.37%.

Because of the change in investment strategy, the Fund's performance and
historical returns shown in this report are not necessarily indicative of the
performance that the Fund would have generated during the same 12-month period
based upon its current strategy.

The performance discussion below will focus on the Fund's performance 8-month
period since the transition, February 28, 2022 through October 31, 2022. During
that period, the Fund returned -9.27% based on a NAV basis and -9.14% based on
market price for the 8-month period from February 28, 2022 through October 31,
2022, while the New Benchmark returned -11.65%.

The negative total return for the Fund for the 8-month period reflected the
impact higher interest rates had on fixed income assets while the relative
outperformance was largely driven by the Fund's duration which was below the New
Benchmark's duration.

Exposure to higher quality, short duration corporate and mortgage-backed
securities contributed to outperformance as the First Trust Enhanced Short
Maturity ETF returned -0.57% from June 30, 2022 through October 31, 2022 when it
was added to the strategy. The First Trust Low Duration Opportunities ETF
returned -4.13% and the iShares 0-5 Year Investment Grade Corporate Bond ETF
returned -4.66%, all better than the benchmark returns from February 28, 2022.
The short duration positioning, and higher credit quality allowed these funds to
hold up better than the New Benchmark as interest rates rose and credit spreads
widened.

Exposure to emerging market debt was a drag on performance during the period as
U.S. dollar strength weighed on the sector. The U.S. Dollar Index rose from
96.71 on February 28, 2022 to 112.17 on September 30, 2022 when the Fund exited
the position in the emerging market debt fund, the First Trust Emerging Markets
Local Currency Bond ETF, which was down 17.00% over this period.

The Fund's position in the First Trust TCW Opportunistic Fixed Income ETF
("FIXD"), with a duration longer than the New Benchmark, was the largest
detractor from relative performance and was down 15.38% over the period. FIXD's
duration ranged between 6.3 and 6.7 years over the period.

MARKET AND FUND OUTLOOK

Due to persistently high inflation, the Fed has continued to reiterate its
commitment to lowering inflation to its 2% target. The Federal Funds target rate
was increased by 75 basis points in each of the last four FOMC meetings, moving
the upper bound to 4.00% as of November 2022. We expect the Fed to continue to
raise interest rates into next year, stabilizing the Federal Funds terminal rate
around 5.0% - 5.5% before pausing further interest rate increases and observing
the implications of such a dramatic move in interest rates over such a short
period of time. Importantly, given that the Fed's dual mandate centers on
inflation and employment, both of which are typically lagging indicators with
respect to overall economic activity, we believe the risk of a policy error by
the Fed that results in recession has increased dramatically in 2023.

Therefore, as the Fed continues to raise the Federal Funds target rate, we
continue to favor duration profiles short of the New Benchmark, however, due to
what we view as more balanced risks in the market and rising recession risk, we
believe duration extension is warranted. Furthermore, given the potential for a
shorter business cycle and increasing recession risk in 2023, we believe it is
prudent to increase credit quality.


                                                                          Page 5





FIRST TRUST HIGH INCOME STRATEGIC FOCUS ETF (HISF)

UNDERSTANDING YOUR FUND EXPENSES
OCTOBER 31, 2022 (UNAUDITED)

As a shareholder of First Trust High Income Strategic Focus ETF (the "Fund"),
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 Fund and to compare these costs with the
ongoing costs of investing in other funds.

The Example is based on an investment of $1,000 invested at the beginning of the
period and held through the six-month period ended October 31, 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 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 the Fund's actual expense
ratio and an assumed rate of return of 5% per year before expenses, which is not
the 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 Fund 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
                                                    MAY 1, 2022      OCTOBER 31, 2022      PERIOD (a)       PERIOD (a) (b)
--------------------------------------------------------------------------------------------------------------------------
                                                                                              
FIRST TRUST HIGH INCOME STRATEGIC FOCUS ETF (HISF)
Actual                                               $1,000.00          $  946.90             0.20%             $0.98
Hypothetical (5% return before expenses)             $1,000.00          $1,024.20             0.20%             $1.02


(a)   Annualized expense ratio and expenses paid during the six-month period do
      not include fees and expenses of the underlying funds in which the Fund
      invests.

(b)   Expenses are equal to the annualized expense ratio as indicated in the
      table multiplied by the average account value over the period (May 1, 2022
      through October 31, 2022), multiplied by 184/365 (to reflect the six-month
      period).


Page 6





FIRST TRUST HIGH INCOME STRATEGIC FOCUS ETF (HISF)

PORTFOLIO OF INVESTMENTS
OCTOBER 31, 2022

   SHARES               DESCRIPTION                 VALUE
------------  --------------------------------  --------------
              EXCHANGE-TRADED FUNDS -- 99.9%
              CAPITAL MARKETS -- 99.9%
      66,364  First Trust Enhanced Short
                 Maturity ETF (a)               $    3,934,721
     114,166  First Trust Institutional
                 Preferred Securities and
                 Income ETF (a)                      1,975,072
     207,229  First Trust Low Duration
                 Opportunities ETF (a)               9,708,679
     205,074  First Trust Tactical High Yield
                 ETF (a)                             8,077,865
     246,715  First Trust TCW Opportunistic
                 Fixed Income ETF (a)               10,532,263
     103,457  iShares 0-5 Year Investment
                 Grade Corporate Bond ETF            4,893,516
                                                --------------

              TOTAL INVESTMENTS -- 99.9%            39,122,116
              (Cost $43,255,502)
              NET OTHER ASSETS AND
                 LIABILITIES -- 0.1%                    39,724
                                                --------------
              NET ASSETS -- 100.0%              $   39,161,840
                                                ==============

(a)   Investment in an affiliated fund.

-----------------------------

VALUATION INPUTS

A summary of the inputs used to value the Fund's investments as of October 31,
2022 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial
Statements):



                                                                                               LEVEL 2            LEVEL 3
                                                          TOTAL             LEVEL 1          SIGNIFICANT        SIGNIFICANT
                                                        VALUE AT            QUOTED           OBSERVABLE        UNOBSERVABLE
                                                       10/31/2022           PRICES             INPUTS             INPUTS
                                                     ---------------    ---------------    ---------------    ---------------
                                                                                                  
Exchange-Traded Funds*..........................     $    39,122,116    $    39,122,116    $            --    $            --
                                                     ===============    ===============    ===============    ===============


* See Portfolio of Investments for industry breakout.


                        See Notes to Financial Statements                 Page 7





FIRST TRUST HIGH INCOME STRATEGIC FOCUS ETF (HISF)

STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 2022



ASSETS:
                                                                         
Investments, at value - Affiliated.....................................     $     34,228,600
Investments, at value - Unaffiliated...................................            4,893,516
                                                                            ----------------
Total investments, at value............................................           39,122,116
Cash...................................................................               12,287
Receivables:
   Dividends...........................................................               30,851
   Reclaims............................................................                3,705
                                                                            ----------------
   Total Assets........................................................           39,168,959
                                                                            ----------------
LIABILITIES:
Investment advisory fees payable.......................................                7,119
                                                                            ----------------
   Total Liabilities...................................................                7,119
                                                                            ----------------
NET ASSETS.............................................................     $     39,161,840
                                                                            ================
NET ASSETS CONSIST OF:
Paid-in capital........................................................     $     51,320,777
Par value..............................................................                9,000
Accumulated distributable earnings (loss)..............................          (12,167,937)
                                                                            ----------------
NET ASSETS.............................................................     $     39,161,840
                                                                            ================
NET ASSET VALUE, per share.............................................     $          43.51
                                                                            ================
Number of shares outstanding (unlimited number of shares authorized,
   par value $0.01 per share)..........................................              900,002
                                                                            ================
Investments, at cost - Affiliated......................................     $     38,090,579
                                                                            ================
Investments, at cost - Unaffiliated....................................     $      5,164,923
                                                                            ================
Total investments, at cost.............................................     $     43,255,502
                                                                            ================



Page 8                  See Notes to Financial Statements





FIRST TRUST HIGH INCOME STRATEGIC FOCUS ETF (HISF)

STATEMENT OF OPERATIONS
FOR THE YEAR ENDED OCTOBER 31, 2022



INVESTMENT INCOME:
                                                                         
Dividends - Affiliated.................................................     $      1,406,804
Dividends - Unaffiliated...............................................              448,500
Interest...............................................................                1,445
Foreign withholding tax................................................               (6,053)
                                                                            ----------------
   Total investment income.............................................            1,850,696
                                                                            ----------------
EXPENSES:
Investment advisory fees...............................................              271,585
                                                                            ----------------
   Total expenses......................................................              271,585
   Less fees waived by the investment advisor..........................              (92,981)
                                                                            ----------------
   Net expenses........................................................              178,604
                                                                            ----------------
NET INVESTMENT INCOME (LOSS)...........................................            1,672,092
                                                                            ----------------
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) on:
   Investments - Affiliated............................................           (3,401,013)
   Investments - Unaffiliated..........................................           (1,296,214)
   In-kind redemptions - Affiliated....................................             (235,480)
   In-kind redemptions - Unaffiliated..................................            2,384,346
   Futures contracts...................................................              (12,821)
   Foreign currency transactions.......................................                 (526)
                                                                            ----------------
Net realized gain (loss)...............................................           (2,561,708)
                                                                            ----------------
Net change in unrealized appreciation (depreciation) on:
   Investments - Affiliated............................................           (3,159,502)
   Investments - Unaffiliated..........................................           (2,647,356)
   Futures contracts...................................................                 (741)
   Foreign currency translation........................................                  737
                                                                            ----------------
Net change in unrealized appreciation (depreciation)...................           (5,806,862)
                                                                            ----------------
NET REALIZED AND UNREALIZED GAIN (LOSS)................................           (8,368,570)
                                                                            ----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
   FROM OPERATIONS.....................................................     $     (6,696,478)
                                                                            ================



                        See Notes to Financial Statements                 Page 9





FIRST TRUST HIGH INCOME STRATEGIC FOCUS ETF (HISF)

STATEMENTS OF CHANGES IN NET ASSETS



                                                                                  YEAR                   YEAR
                                                                                 ENDED                  ENDED
                                                                               10/31/2022             10/31/2021
                                                                            ----------------       ----------------
                                                                                             
OPERATIONS:
Net investment income (loss)...........................................     $      1,672,092       $      2,011,416
Net realized gain (loss)...............................................           (2,561,708)             6,369,796
Net increase from payment by the advisor...............................                   --                  1,758
Net change in unrealized appreciation (depreciation)...................           (5,806,862)             2,091,269
                                                                            ----------------       ----------------
Net increase (decrease) in net assets resulting from operations........           (6,696,478)            10,474,239
                                                                            ----------------       ----------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment operations..................................................           (2,147,053)            (2,628,954)
                                                                            ----------------       ----------------
SHAREHOLDER TRANSACTIONS:
Proceeds from shares sold..............................................           63,936,474             72,475,535
Cost of shares redeemed................................................          (86,408,488)           (70,562,092)
                                                                            ----------------       ----------------
Net increase (decrease) in net assets resulting
 from shareholder transactions.........................................          (22,472,014)             1,913,443
                                                                            ----------------       ----------------
Total increase (decrease) in net assets................................          (31,315,545)             9,758,728

NET ASSETS:
Beginning of period....................................................           70,477,385             60,718,657
                                                                            ----------------       ----------------
End of period..........................................................     $     39,161,840       $     70,477,385
                                                                            ================       ================
CHANGES IN SHARES OUTSTANDING:
Shares outstanding, beginning of period................................            1,400,002              1,350,002
Shares sold............................................................            1,300,000              1,500,000
Shares redeemed........................................................           (1,800,000)            (1,450,000)
                                                                            ----------------       ----------------
Shares outstanding, end of period......................................              900,002              1,400,002
                                                                            ================       ================



Page 10                 See Notes to Financial Statements





FIRST TRUST HIGH INCOME STRATEGIC FOCUS ETF (HISF)

FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD



                                                                          YEAR ENDED OCTOBER 31,
                                          --------------------------------------------------------------------------------------
                                               2022              2021              2020              2019              2018
                                          --------------    --------------    --------------    --------------    --------------
                                                                                                     
Net asset value, beginning of period        $    50.34        $    44.98        $    50.62        $    47.72        $    50.68
                                            ----------        ----------        ----------        ----------        ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss)                      0.99              1.47              1.46              1.63              1.69
Net realized and unrealized gain (loss)          (6.12)             5.80 (a)         (5.07)             3.34             (2.26)
                                            ----------        ----------        ----------        ----------        ----------
Total from investment operations                 (5.13)             7.27             (3.61)             4.97             (0.57)
                                            ----------        ----------        ----------        ----------        ----------
DISTRIBUTIONS PAID TO SHAREHOLDERS FROM:
Net investment income                            (1.70)            (1.91)            (1.97)            (2.07)            (2.10)
Return of capital                                   --                --             (0.06)               --             (0.29)
                                            ----------        ----------        ----------        ----------        ----------
Total distributions                              (1.70)            (1.91)            (2.03)            (2.07)            (2.39)
                                            ----------        ----------        ----------        ----------        ----------
Net asset value, end of period              $    43.51        $    50.34        $    44.98        $    50.62        $    47.72
                                            ==========        ==========        ==========        ==========        ==========
TOTAL RETURN (b)                                (10.38)%           16.33% (a)           (7.19)%        10.60%            (1.21)%

RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000's)        $   39,162        $   70,477        $   60,719        $   91,120        $   83,504
RATIOS TO AVERAGE NET ASSETS:
Ratio of total expenses to average
   net assets (c)                                 0.46%             0.85%             0.85%             0.85%             0.86% (d)
Ratio of net expenses to average
   net assets (c)                                 0.30%             0.42%             0.46%             0.50%             0.50% (d)
Ratio of net investment income (loss) to
   average net assets                             2.83%             2.94%             3.08%             3.21%             3.40%
Portfolio turnover rate (e)                        149%              101%              118%               91%              113%


(a)   The Fund received a reimbursement from the Advisor in the amount of $1,758
      in connection with a trade error, which represents less than $0.01 per
      share. Since the Advisor reimbursed the Fund, there was no effect on the
      Fund's total return.

(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. The total returns would have been lower if certain
      fees had not been waived by the Advisor.

(c)   The Fund indirectly bears its proportionate share of fees and expenses
      incurred by the underlying funds in which the Fund invests. This ratio
      does not include these indirect fees and expenses.

(d)   Includes excise tax. If this excise tax expense was not included, the
      total and net expense ratios would have been 0.85% and 0.49%,
      respectively.

(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 and in-kind
      transactions.


                        See Notes to Financial Statements                Page 11





--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------

               FIRST TRUST HIGH INCOME STRATEGIC FOCUS ETF (HISF)
                                OCTOBER 31, 2022

                                1. ORGANIZATION

First Trust Exchange-Traded Fund IV (the "Trust") is an open-end management
investment company organized as a Massachusetts business trust on September 15,
2010, and is registered with the Securities and Exchange Commission ("SEC")
under the Investment Company Act of 1940, as amended (the "1940 Act").

The Trust currently consists of twelve funds that are offering shares. This
report covers the First Trust High Income Strategic Focus ETF (formerly known as
First Trust Strategic Income ETF) (the "Fund"), which trades under the ticker
"HISF" (formerly "FDIV") on The Nasdaq Stock Market LLC ("Nasdaq"). Effective
February 28, 2022, the Fund's name and ticker changed to its current name and
ticker. The Fund's CUSIP did not change. The Fund represents a separate series
of shares of beneficial interest in the Trust. Unlike conventional mutual funds,
the Fund issues and redeems shares on a continuous basis, at net asset value
("NAV"), only in large blocks of shares known as "Creation Units."

The Fund is an actively managed exchange-traded fund ("ETF"). The Fund's primary
investment objective is to seek risk-adjusted income. The Fund's secondary
investment objective is capital appreciation. Under normal market conditions,
the Fund seeks to achieve its investment objectives by investing in a portfolio
of U.S.-listed exchange-traded funds ("Underlying ETFs") that is designed to
follow the High Income Model (the "High Income Model") developed by the Fund's
investment advisor, First Trust Advisors L.P. ("First Trust" or the "Advisor").
The Fund, through its investments in the Underlying ETFs comprising the High
Income Model, seeks to provide investors with a diversified income stream by
holding a blend of fixed income assets that are actively managed to seek levels
of high income and total return. The High Income Model is principally composed
of ETFs for which First Trust serves as investment advisor. Therefore, a
significant portion of the ETFs in which the Fund invests are advised by First
Trust. However, the Fund may also invest in ETFs other than First Trust ETFs.

Prior to February 28, 2022, the Fund was a multi-manager, multi-strategy
actively managed exchange-traded fund. The following served as investment
sub-advisors to the Fund: First Trust Global Portfolios Limited ("FTGP"); Energy
Income Partners, LLC ("EIP"); Stonebridge Advisors LLC ("Stonebridge"); and
Richard Bernstein Advisors LLC ("RBA") (each, a "Sub-Advisor" and together, the
"Sub-Advisors"). The Advisor's Investment Committee determined the Fund's
strategic allocation among various general investment categories and allocated
the Fund's assets to portfolio management teams comprised of personnel of the
Advisor and/or a Sub-Advisor (each, a "Management Team"), which employed their
respective investment strategies. The Fund sought to achieve its objectives by
having each Management Team focus on those securities within its respective
investment category. The Fund added or removed investment categories or
Management Teams at the discretion of the Advisor.

The Fund's investment categories were: (i) high-yield corporate bonds, commonly
referred to as "junk" bonds, and first lien senior secured floating rate bank
loans; (ii) mortgage-related investments; (iii) preferred securities; (iv)
international sovereign bonds, including securities issued by emerging market
countries; (v) equity securities of Energy Infrastructure Companies(1), certain
of which are master limited partnerships ("MLPs"); and (vi) dividend paying U.S.
exchange-traded equity securities (including common stock) of companies (that
may be domiciled in or outside of the United States) and depositary receipts.
The Management Teams utilized a related option overlay strategy and/or
derivative instruments in implementing their respective investment strategies
for the Fund. Additionally, the Management Teams sought exposure to these asset
classes directly or through investments in ETFs.

                       2. SIGNIFICANT ACCOUNTING POLICIES

The Fund is considered an investment company and follows 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 Fund 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

The 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. Domestic debt securities and foreign securities
are priced using data reflecting the earlier closing of the principal markets

-----------------------------

(1)   Energy Infrastructure Companies are publicly-traded MLPs or limited
      liability companies that are taxed as partnerships; entities that control
      MLPs, entities that own general partner interests in an MLP, or MLP
      affiliates (such as I-shares or I-units); U.S. and Canadian energy yield
      corporations ("yieldcos"); pipeline companies; utilities; and other
      companies that are involved in operating or providing services in support
      of infrastructure assets such as pipeline, power transmission,
      terminalling and petroleum and natural gas storage in the petroleum,
      natural gas and power generation industries.


Page 12





--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
--------------------------------------------------------------------------------

               FIRST TRUST HIGH INCOME STRATEGIC FOCUS ETF (HISF)
                                OCTOBER 31, 2022

for those securities. The 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.

The Fund's investments are valued daily at market value or, in the absence of
market value with respect to any portfolio securities, at fair value. Market
value prices represent readily available market quotations such as last sale or
official closing prices from a national or foreign exchange (i.e., a regulated
market) and are primarily obtained from third-party pricing services. Fair value
prices represent any prices not considered market value prices and are either
obtained from a third-party pricing service or are determined by the Advisor's
Pricing Committee in accordance with valuation procedures approved by the
Trust's Board of Trustees, and in accordance with provisions of the 1940 Act and
rules thereunder. Investments valued by the Advisor's Pricing Committee, if any,
are footnoted as such in the footnotes to the Portfolio of Investments. All
securities and other assets of the Fund initially expressed in foreign
currencies will be converted to U.S. dollars using exchange rates in effect at
the time of valuation. The Fund's investments are valued as follows:

      Corporate bonds, corporate notes, U.S. government securities,
      mortgage-backed securities, asset-backed securities and other debt
      securities are fair valued on the basis of valuations provided by a
      third-party pricing service approved by the Advisor's Pricing Committee,
      which may use the following valuation inputs when available:

            1)    benchmark yields;
            2)    reported trades;
            3)    broker/dealer quotes;
            4)    issuer spreads;
            5)    benchmark securities;
            6)    bids and offers; and
            7)    reference data including market research publications.

      Exchange-traded funds, common stocks, preferred stocks, MLPs and other
      equity securities listed on any national or foreign exchange (excluding
      Nasdaq and the London Stock Exchange Alternative Investment Market
      ("AIM")) are valued at the last sale price on the exchange on which they
      are principally traded or, for Nasdaq and AIM securities, the official
      closing price. Securities traded on more than one securities exchange are
      valued at the last sale price or official closing price, as applicable, at
      the close of the securities exchange representing the primary exchange for
      such securities.

      Securities traded in an over-the-counter market are valued at the mean of
      their most recent bid and asked price, if available, and otherwise at
      their last trade price.

      Exchange-traded futures contracts are valued at the closing price in the
      market where such contracts are principally traded. If no closing price is
      available, exchange-traded futures contracts are valued at the mean of
      their most recent bid and asked price, if available, and otherwise at
      their closing bid price.

      Fixed income and other debt securities having a remaining maturity of
      sixty days or less when purchased are fair valued at cost adjusted for
      amortization of premiums and accretion of discounts (amortized cost),
      provided the Advisor's Pricing Committee has determined that the use of
      amortized cost is an appropriate reflection of fair value given market and
      issuer-specific conditions existing at the time of the determination.
      Factors that may be considered in determining the appropriateness of the
      use of amortized cost include, but are not limited to, the following:

            1)    the credit conditions in the relevant market and changes
                  thereto;

            2)    the liquidity conditions in the relevant market and changes
                  thereto;

            3)    the interest rate conditions in the relevant market and
                  changes thereto (such as significant changes in interest
                  rates);

            4)    issuer-specific conditions (such as significant credit
                  deterioration); and

            5)    any other market-based data the Advisor's Pricing Committee
                  considers relevant. In this regard, the Advisor's Pricing
                  Committee may use last-obtained market-based data to assist it
                  when valuing portfolio securities using amortized cost.

Certain securities may not be able to be priced by pre-established pricing
methods. Such securities may be valued by the Advisor's Pricing Committee at
fair value. These securities generally include, but are not limited to,
restricted securities (securities which may not be publicly sold without
registration under the Securities Act of 1933, as amended) for which a
third-party pricing service is unable to provide a market price; securities
whose trading has been formally suspended; a security whose market or fair value
price is not available from a pre-established pricing source; a security with
respect to which an event has occurred that is likely to materially affect the
value of the security after the market has closed but before the calculation of
the 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


                                                                         Page 13





--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
--------------------------------------------------------------------------------

               FIRST TRUST HIGH INCOME STRATEGIC FOCUS ETF (HISF)
                                OCTOBER 31, 2022

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.

Fair valuation of a debt security will be based on the consideration of all
available information, including, but not limited to, the following:

            1)    the most recent price provided by a pricing service;

            2)    the fundamental business data relating to the issuer;

            3)    an evaluation of the forces which influence the market in
                  which these securities are purchased and sold;

            4)    the type, size and cost of a security;

            5)    the financial statements of the issuer/borrower, or the
                  condition of the country of issue;

            6)    the credit quality and cash flow of the issuer/borrower, or
                  country of issue, based on the Pricing Committee's,
                  sub-advisor's or portfolio manager's analysis, as applicable,
                  or external analysis;

            7)    the information as to any transactions in or offers for the
                  security;

            8)    the price and extent of public trading in similar securities
                  of the issuer/borrower, or comparable companies;

            9)    the coupon payments;

           10)    the quality, value and salability of collateral, if any,
                  securing the security;

           11)    the business prospects of the issuer, including any ability to
                  obtain money or resources from a parent or affiliate and an
                  assessment of the issuer's management (for corporate debt
                  only);

           12)    the economic, political and social prospects/developments of
                  the country of issue and the assessment of the country's
                  government leaders/officials (for sovereign debt only);

           13)    the prospects for the issuer's industry, and multiples (of
                  earnings and/or cash flows) being paid for similar businesses
                  in that industry (for corporate debt only); and

           14)    other relevant factors.

Fair valuation of an equity security will be based on the consideration of all
available information, including, but not limited to, the following:

            1)    the last sale price on the exchange on which they are
                  principally traded or, for Nasdaq and AIM securities, the
                  official closing price;

            2)    the type of security;

            3)    the size of the holding;

            4)    the initial cost of the security;

            5)    transactions in comparable securities;

            6)    price quotes from dealers and/or third-party pricing services;

            7)    relationships among various securities;

            8)    information obtained by contacting the issuer, analysts, or
                  the appropriate stock exchange;

            9)    an analysis of the issuer's financial statements;

           10)    the existence of merger proposals or tender offers that might
                  affect the value of the security; and

           11)    other relevant factors.

The Fund is 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).


Page 14





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NOTES TO FINANCIAL STATEMENTS (CONTINUED)
--------------------------------------------------------------------------------

               FIRST TRUST HIGH INCOME STRATEGIC FOCUS ETF (HISF)
                                OCTOBER 31, 2022

            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.

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 the Fund's investments as of October 31, 2022, is
included with the Fund's Portfolio of Investments.

In December 2020, the SEC adopted Rule 2a-5 under the 1940 Act, establishing
requirements to determine fair value in good faith for purposes of the 1940 Act.
The rule permits fund boards to designate a fund's investment adviser to perform
fair value determinations, subject to board oversight and certain other
conditions. The rule also defines when market quotations are "readily available"
for purposes of the 1940 Act and requires a fund to fair value a portfolio
investment when a market quotation is not readily available. The SEC also
adopted new Rule 31a-4 under the 1940 Act, which sets forth recordkeeping
requirements associated with fair value determinations. The compliance date for
Rule 2a-5 and Rule 31a-4 was September 8, 2022.

Effective September 8, 2022 and pursuant to the requirements of Rule 2a-5, the
Trust's Board of Trustees designated the Advisor as its valuation designee to
perform fair value determinations and approved new Advisor Valuation Procedures
for the Trust.

B. SECURITIES TRANSACTIONS AND INVESTMENT INCOME

Securities transactions are recorded as of the trade date. Realized gains and
losses from securities transactions are recorded on the identified cost basis.
Dividend income is recorded on the ex-dividend date. Interest income is recorded
daily on the accrual basis. Amortization of premiums and accretion of discounts
are recorded using the effective interest method.

Distributions received from the Fund's investments in MLPs generally are
comprised of return of capital and investment income. The Fund records estimated
return of capital and investment income based on historical information
available from each MLP. These estimates may subsequently be revised based on
information received from the MLPs after their tax reporting periods are
concluded.

Distributions received from the Fund's investments in real estate investment
trusts ("REITs") may be comprised of return of capital, capital gains and
income. The actual character of the amounts received during the year is not
known until after the REITs' fiscal year end. The Fund records the character of
distributions received from the REITs during the year based on estimates
available. The characterization of distributions received by the Fund may be
subsequently revised based on information received from the REITs after their
tax reporting periods conclude.

C. FUTURES CONTRACTS

Prior to February 28, 2022, the Fund purchased or sold (i.e., is long or short)
exchange-listed futures contracts to hedge against changes in interest rates
(interest rate risk). Futures contracts are agreements between the Fund and a
counterparty to buy or sell a specific quantity of an underlying instrument at a
specified price and at a specified date. Depending on the terms of the contract,
futures contracts are settled either through physical delivery of the underlying
instrument on the settlement date or by payment of a cash settlement amount on
the settlement date. Open futures contracts can also be closed out prior to
settlement by entering into an offsetting transaction in a matching futures
contract. If the Fund is not able to enter into an offsetting transaction, the
Fund will continue to be required to maintain margin deposits on the futures
contract. When the contract is closed or expires, the Fund records a realized
gain or loss equal to the difference between the value of the contract at the
time it was opened and the value at the time it was closed or expired. This gain
or loss is included in "Net realized gain (loss) on futures contracts" on the
Statement of Operations.

Upon entering into a futures contract, the Fund must deposit funds, called
margin, with its custodian in the name of the clearing broker equal to a
specified percentage of the current value of the contract. Open futures
contracts are marked-to-market daily with the change in value recognized as a
component of "Net change in unrealized appreciation (depreciation) on futures
contracts" on the Statement of Operations. Pursuant to the contract, the Fund
agrees to receive from or pay to the broker an amount of cash equal to the daily
fluctuation in value of the contract. Such receipts or payments are known as
variation margin and are included in "Variation margin" receivable or payable on
the Statement of Assets and Liabilities. If market conditions change
unexpectedly, the Fund may not achieve the anticipated benefits of the futures
contract and may realize a loss. The use of futures contracts involves the risk
of imperfect correlation in movements in the price of the futures contracts,
interest rates and the underlying instruments.

D. FOREIGN CURRENCY

The books and records of the Fund are maintained in U.S. dollars. Foreign
currencies, investments and other assets and liabilities are translated into
U.S. dollars at the exchange rates prevailing at the end of the period.
Purchases and sales of investments and items of income and expense are
translated on the respective dates of such transactions. Unrealized gains and


                                                                         Page 15





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NOTES TO FINANCIAL STATEMENTS (CONTINUED)
--------------------------------------------------------------------------------

               FIRST TRUST HIGH INCOME STRATEGIC FOCUS ETF (HISF)
                                OCTOBER 31, 2022

losses on assets and liabilities, other than investments in securities, which
result from changes in foreign currency exchange rates have been included in
"Net change in unrealized appreciation (depreciation) on foreign currency
translation" on the Statement of Operations. Unrealized gains and losses on
investments in securities which result from changes in foreign exchange rates
are included with fluctuations arising from changes in market price and are
included in "Net change in unrealized appreciation (depreciation) on investments
- Unaffiliated" on the Statement of Operations. Net realized foreign currency
gains and losses include the effect of changes in exchange rates between trade
date and settlement date on investment security transactions, foreign currency
transactions and interest and dividends received is included in "Net realized
gain (loss) on foreign currency transactions" on the Statement of Operations.
The portion of foreign currency gains and losses related to fluctuation in
exchange rates between the initial purchase settlement date and subsequent sale
trade date is included in "Net realized gain (loss) on investments -
Unaffiliated" on the Statement of Operations.

E. AFFILIATED TRANSACTIONS

The Fund invests in securities of affiliated funds. Dividend income, realized
gains and losses, and change in appreciation (depreciation) from affiliated
funds are presented on the Statement of Operations. The Fund's investment
performance and risks are directly related to the investment performance and
risks of the affiliated funds.

Amounts related to these investments at October 31, 2022 and for the fiscal year
then ended are as follows:



                                                                             CHANGE IN
                     SHARES        VALUE                                     UNREALIZED     REALIZED       VALUE
                       AT            AT                                     APPRECIATION      GAIN           AT        DIVIDEND
  SECURITY NAME    10/31/2022    10/31/2021    PURCHASES        SALES      (DEPRECIATION)    (LOSS)      10/31/2022     INCOME
--------------------------------------------------------------------------------------------------------------------------------
                                                                                              
First Trust
   Emerging
   Markets Local
   Currency Bond
   ETF                      --  $  6,342,663  $  3,719,524  $  (9,125,203) $      794,885  $(1,731,869) $         --  $   88,825

First Trust
   Enhanced Short
   Maturity ETF         66,364            --     5,825,533     (1,884,030)         (6,249)        (533)    3,934,721      33,745

First Trust
   Institutional
   Preferred
   Securities and
   Income ETF          114,166     2,140,432     2,885,089     (2,598,430)       (368,744)     (83,275)    1,975,072     116,463

First Trust
   Low Duration
   Opportunities
   ETF                 207,229     4,096,540    14,161,875     (8,003,004)       (511,490)     (35,242)    9,708,679      89,841

First Trust
   Preferred
   Securities and
   Income ETF               --     6,433,669     5,989,982    (11,952,349)       (145,646)    (325,656)           --      94,643

First Trust
   Senior Loan
   Fund                     --    13,753,384    12,620,819    (25,745,134)         42,774     (671,843)           --     268,028

First Trust
  Tactical High
   Yield ETF           205,074            --    19,380,127     (9,743,294)     (1,152,999)    (405,969)    8,077,865     504,163

First Trust
   TCW
   Opportunistic
   Fixed Income
   ETF                 246,715            --    33,982,220    (21,255,818)     (1,812,033)    (382,106)   10,532,263     211,096
                                ------------------------------------------------------------------------------------------------
Total Investments
   in Affiliates                $ 32,766,688  $ 98,565,169  $ (90,307,262) $   (3,159,502) $(3,636,493) $ 34,228,600  $1,406,804
                                ================================================================================================



F. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS

Dividends from net investment income, if any, are declared and paid monthly by
the Fund, or as the Board of Trustees may determine from time to time.
Distributions of net realized capital gains earned by the Fund, if any, are
distributed at least annually. The Fund may also designate a portion of the
amount paid to redeeming shareholders as a distribution for tax purposes.

Distributions from net investment income and realized capital gains are
determined in accordance with federal income tax regulations, which may differ
from U.S. GAAP. Certain capital accounts in the financial statements are
periodically adjusted for permanent differences in order to reflect their tax
character. These permanent differences are primarily due to the varying
treatment of income and gain/loss on significantly modified portfolio securities
held by the Fund 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.


Page 16





--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
--------------------------------------------------------------------------------

               FIRST TRUST HIGH INCOME STRATEGIC FOCUS ETF (HISF)
                                OCTOBER 31, 2022

The tax character of distributions paid during the fiscal years ended October
31, 2022 and 2021 was as follows:

Distributions paid from:                             2022         2021
Ordinary income.................................  $ 2,147,053  $ 2,628,954
Capital gains...................................           --           --
Return of capital...............................           --           --

As of October 31, 2022, the components of distributable earnings on a tax basis
for the Fund were as follows:

Undistributed ordinary income...................  $        --
Accumulated capital and other gain (loss).......   (8,004,465)
Net unrealized appreciation (depreciation)......   (4,163,472)

G. INCOME TAXES

The Fund intends to continue to qualify as a regulated investment company by
complying with the requirements under Subchapter M of the Internal Revenue Code
of 1986, as amended, which includes distributing substantially all of its net
investment income and net realized gains to shareholders. Accordingly, no
provision has been made for federal and state income taxes. However, due to the
timing and amount of distributions, the Fund may be subject to an excise tax of
4% of the amount by which approximately 98% of the Fund's taxable income exceeds
the distributions from such taxable income for the calendar year.

The Fund is subject to accounting standards that establish a minimum threshold
for recognizing, and a system for measuring, the benefits of a tax position
taken or expected to be taken in a tax return. The taxable years ended 2019,
2020, 2021, and 2022 remain open to federal and state audit. As of October 31,
2022, management has evaluated the application of these standards to the Fund
and has determined that no provision for income tax is required in the Fund's
financial statements for uncertain tax positions.

The 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.
The 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 October 31, 2022, the
Fund had non-expiring capital loss carryforwards available for federal income
tax purposes of $8,004,465.

Certain losses realized during the current fiscal year may be deferred and
treated as occurring on the first day of the following fiscal year for federal
income tax purposes. For the fiscal year ended October 31, 2022, the Fund had no
net late year ordinary or capital losses.

In order to present paid-in capital and accumulated distributable earnings
(loss) (which consists of accumulated net investment income (loss), accumulated
net realized gain (loss) on investments and net unrealized appreciation
(depreciation) on investments) on the Statement of Assets and Liabilities that
more closely represent their tax character, certain adjustments have been made
to paid-in capital, accumulated net investment income (loss) and accumulated net
realized gain (loss) on investments. These adjustments are primarily due to the
difference between book and tax treatments of income and gains on various
investment securities held by the Fund and in-kind transactions. The results of
operations and net assets were not affected by these adjustments. For the fiscal
year ended October 31, 2022, the adjustments for the Fund were as follows:

                               Accumulated
           Accumulated         Net Realized
          Net Investment       Gain (Loss)            Paid-In
          Income (Loss)       on Investments          Capital
          --------------      --------------      ---------------
          $      932,150      $   (1,228,523)     $       296,373

As of October 31, 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:



                                     Gross               Gross          Net Unrealized
                                   Unrealized         Unrealized         Appreciation
                 Tax Cost         Appreciation      (Depreciation)      (Depreciation)
              --------------     --------------     ---------------     ---------------
                                                            
              $   43,285,569     $        3,607     $    (4,167,060)    $    (4,163,453)



                                                                         Page 17





--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
--------------------------------------------------------------------------------

               FIRST TRUST HIGH INCOME STRATEGIC FOCUS ETF (HISF)
                                OCTOBER 31, 2022

H. 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 Fund, is a limited partnership with
one limited partner, Grace Partners of DuPage L.P., and one general partner, The
Charger Corporation. The Charger Corporation is an Illinois corporation
controlled by James A. Bowen, Chief Executive Officer of First Trust. First
Trust is responsible for the selection and ongoing monitoring of the securities
in the Fund's portfolio, managing the Fund's business affairs and providing
certain administrative services necessary for the management of the Fund.

Pursuant to the Investment Management Agreement between the Trust and the
Advisor, First Trust manages the investment of the Fund's assets and is
responsible for the Fund's expenses, including the cost of transfer agency,
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 pursuant to a Rule 12b-1 plan, if any, and extraordinary expenses. The Fund
has agreed to pay First Trust an annual unitary management fee equal to 0.20% of
its average daily net assets. In addition, the Fund incurs acquired fund fees
and expenses. The total of the unitary management fee and acquired fund fees and
expenses represents the Fund's total annual operating expenses.

Pursuant to contractual agreement, First Trust has agreed to waive fees and/or
reimburse Fund expenses to the extent that the operating expenses of the Fund
(excluding interest expense, brokerage commissions and other trading expenses,
taxes and extraordinary expenses but including acquired fund fees and expenses)
exceed 0.87% of its average daily net assets (the "Expense Cap") at least
through March 1, 2023. Expenses reimbursed and fees waived under such agreement
are not subject to recovery by the First Trust.

Prior to February 28, 2022, the Fund and First Trust retained the Sub-Advisors
to provide recommendations to the Advisor regarding the selection and ongoing
monitoring of the securities in the Fund's investment portfolio. First Trust
executed all transactions on behalf of the Fund, with the exception of the
securities that were selected by FTGP. EIP, an affiliate of First Trust,
provided recommendations regarding the selection of MLP securities for the
Fund's investment portfolio and provided ongoing monitoring of the MLP
securities, MLP affiliate and energy infrastructure securities in the Fund's
investment portfolio selected by EIP. EIP exercised discretion only with respect
to assets of the Fund allocated to EIP by the Advisor. FTGP, an affiliate of
First Trust, selected international sovereign debt securities for the Fund's
investment portfolio and provided ongoing monitoring of the international
sovereign debt securities in the Fund's investment portfolio selected by FTGP.
RBA provided recommendations regarding longer term investment strategies that
combine top-down, macroeconomic analysis and quantitatively-driven portfolio
construction. RBA exercised discretion only with respect to assets allocated to
RBA by the Advisor. Stonebridge, an affiliate of First Trust, provided
recommendations regarding the selection and ongoing monitoring of the preferred
and hybrid securities in the Fund's investment portfolio.

Pursuant to the former Investment Management Agreement between the Trust and
Advisor, First Trust supervised the Sub-Advisors and their management of the
investment of the Fund's assets and paid EIP, FTGP, RBA and Stonebridge for
their services as the Fund's sub-advisors. EIP and FTGP each received a
sub-advisory fee from First Trust equal to 40% of any remaining monthly
investment management fee paid to First Trust for the average daily net assets
allocated to the Sub-Advisor after the average Fund expenses accrued during the
most recent twelve months were subtracted from the investment management fee in
a given month. RBA and Stonebridge each received annual sub-advisory fees equal
to 0.20% of the average daily net assets on the assets of the Fund allocated to
the Sub-Advisor by First Trust. First Trust was also responsible for the Fund's
expenses, including the cost of transfer agency, custody, fund administration,
legal, audit and other services, but excluding fee payments under the Investment
Management Agreement, interest, taxes, pro rata share of fees and expenses
attributable to investments in other investment companies ("acquired fund fees
and expenses") with the exception of those attributable to affiliated Funds,
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. The Fund paid First Trust an annual
unitary management fee equal to 0.85% of its average daily net assets. The total
of the unitary management fee, acquired fund fees and expenses, and other
excluded expenses represents the Fund's total annual operating expenses.
Pursuant to a contractual agreement between the Trust, on behalf of the Fund,
and First Trust, the management fees paid to First Trust were reduced by the
proportional amount of the acquired fund fees and expenses of the shares of
investment companies held by the Fund so that the Fund would not bear the
indirect costs of holding them, provided that the investment companies were
advised by First Trust. During the fiscal year ended October 31, 2022, the
Advisor waived fees of $92,981.


Page 18





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NOTES TO FINANCIAL STATEMENTS (CONTINUED)
--------------------------------------------------------------------------------

               FIRST TRUST HIGH INCOME STRATEGIC FOCUS ETF (HISF)
                                OCTOBER 31, 2022

During the fiscal year ended October 31, 2021, the Fund received a reimbursement
from the Advisor of $1,758 in connection with a trade error.

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
the Fund. As custodian, BNYM is responsible for custody of the Fund's assets. As
fund accountant and administrator, BNYM is responsible for maintaining the books
and records of the Fund's securities and cash. As transfer agent, BNYM is
responsible for maintaining shareholder records for the Fund. BNYM is a
subsidiary of The Bank of New York Mellon Corporation, a financial holding
company. 

Each Trustee who is not an officer or employee of First Trust, any sub-advisor
or any of their affiliates ("Independent Trustees") is paid a fixed annual
retainer that is allocated equally among each fund in the First Trust Fund
Complex. Each independent Trustee is also paid an annual per fund fee that
varies based on whether the fund is a closed-end or other actively managed fund,
a target outcome fund or an index fund.

Additionally, the 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
will 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

The cost of purchases of U.S. Government securities and non-U.S. Government
securities, excluding short-term investments and in-kind transactions for the
fiscal year ended October 31, 2022, were $0 and $92,930,049, respectively. The
proceeds from sales and paydowns of U.S. Government securities and non-U.S.
Government securities, excluding short-term investments and in-kind transactions
for the fiscal year ended October 31, 2022, were $378,337 and $87,983,685,
respectively.

For the fiscal year ended October 31, 2022, the cost of in-kind purchases and
proceeds from in-kind sales were $56,488,927 and $82,757,797, respectively.

                           5. DERIVATIVE TRANSACTIONS

The following table presents the amount of net realized gain (loss) and change
in net unrealized appreciation (depreciation) recognized for the fiscal year
ended October 31, 2022, on derivative instruments, as well as the primary
underlying risk exposure associated with the instruments.

STATEMENTS OF OPERATIONS LOCATION                        INTEREST RATE RISK
--------------------------------------------------------------------------------
Net realized gain (loss) on futures contracts                $ (12,821)
Net change in unrealized appreciation (depreciation)
   on futures contracts                                           (741)

During the fiscal year ended October 31, 2022, the notional value of futures
contracts opened and closed were $2,042,970 and $2,575,792, respectively.

The Fund does not have the right to offset financial assets and financial
liabilities related to futures contracts on the Statement of Assets and
Liabilities.

                 6. CREATIONS, REDEMPTIONS AND TRANSACTION FEES

The 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 the 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, the 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 the 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


                                                                         Page 19





--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
--------------------------------------------------------------------------------

               FIRST TRUST HIGH INCOME STRATEGIC FOCUS ETF (HISF)
                                OCTOBER 31, 2022

process: the Authorized Participant redeems a Creation Unit of the 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 the Fund's
shares and underlying securities provides arbitrage opportunities that are
designed to help keep the market price of the Fund's shares at or close to the
NAV per share of the Fund.

The 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 the 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.

The 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 the 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 the 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 Fund is
authorized to pay an amount up to 0.25% of its average daily net assets each
year to reimburse First Trust Portfolios L.P. ("FTP"), the distributor of the
Fund, for amounts expended to finance activities primarily intended to result in
the sale of Creation Units or the provision of investor services. FTP may also
use this amount to compensate securities dealers or other persons that are
Authorized Participants for providing distribution assistance, including
broker-dealer and shareholder support and educational and promotional services.

No 12b-1 fees are currently paid by the Fund, and pursuant to a contractual
arrangement, no 12b-1 fees will be paid any time before March 31, 2024.

                               8. INDEMNIFICATION

The Trust, on behalf of the Fund, 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 Fund through
the date the financial statements were issued and has determined that there was
the following subsequent event:

At a meeting on October 24, 2022, the Board of Trustees approved a breakpoint
pricing arrangement for each of the series of the Trust, including the Fund.
Pursuant to this arrangement, which is effective as of November 1, 2022, the
management fee the Fund pays to First Trust, as investment manager, will be
discounted as the Fund's net assets reach certain predefined levels.


Page 20





--------------------------------------------------------------------------------
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
--------------------------------------------------------------------------------

TO THE SHAREHOLDERS AND THE BOARD OF TRUSTEES OF FIRST TRUST EXCHANGE-TRADED
FUND IV:

OPINION ON THE FINANCIAL STATEMENTS AND FINANCIAL HIGHLIGHTS

We have audited the accompanying statement of assets and liabilities of First
Trust High Income Strategic Focus ETF (formerly First Trust Strategic Income
ETF) (the "Fund"), a series of the First Trust Exchange-Traded Fund IV,
including the portfolio of investments, as of October 31, 2022, the related
statement of operations for the year then ended, the statements of changes in
net assets for each of the two years in the period then ended, the financial
highlights for each of the five years in the period then ended, and the related
notes. In our opinion, the financial statements and financial highlights present
fairly, in all material respects, the financial position of the Fund as of
October 31, 2022, and the results of its operations for the year then ended, the
changes in its net assets for each of the two years in the period then ended,
and the financial highlights for each of the five years in the period then ended
in conformity with accounting principles generally accepted in the United States
of America.

BASIS FOR OPINION

These financial statements and financial highlights are the responsibility of
the Fund's management. Our responsibility is to express an opinion on the Fund's
financial statements and financial highlights based on our audits. We are a
public accounting firm registered with the Public Company Accounting Oversight
Board (United States) (PCAOB) and are required to be independent with respect to
the Fund in accordance with the U.S. federal securities laws and the applicable
rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those
standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements and financial highlights are
free of material misstatement, whether due to error or fraud. The Fund is not
required to have, nor were we engaged to perform, an audit of its internal
control over financial reporting. As part of our audits we are required to
obtain an understanding of internal control over financial reporting but not for
the purpose of expressing an opinion on the effectiveness of the Fund's internal
control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material
misstatement of the financial statements and financial highlights, whether due
to error or fraud, and performing procedures that respond to those risks. Such
procedures included examining, on a test basis, evidence regarding the amounts
and disclosures in the financial statements and financial highlights. Our audits
also included evaluating the accounting principles used and significant
estimates made by management, as well as evaluating the overall presentation of
the financial statements and financial highlights. Our procedures included
confirmation of securities owned as of October 31, 2022, by correspondence with
the custodian and brokers; when replies were not received from brokers, we
performed other auditing procedures. We believe that our audits provide a
reasonable basis for our opinion.

/s/ Deloitte & Touche LLP

Chicago, Illinois
December 21, 2022

We have served as the auditor of one or more First Trust investment companies
since 2001.


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               FIRST TRUST HIGH INCOME STRATEGIC FOCUS ETF (HISF)
                          OCTOBER 31, 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 the 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
the Fund's website at www.ftportfolios.com; and (3) on the Securities and
Exchange Commission's ("SEC") website at www.sec.gov.

                               PORTFOLIO HOLDINGS

The 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. The 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 the Fund is available to investors within 60 days after the
period to which it relates. The Fund's Forms N-PORT and Forms N-CSR are
available on the SEC's website listed above.

                SUBMISSION OF MATTERS TO A VOTE OF SHAREHOLDERS

At a special meeting of shareholders held on February 22, 2022, shareholders of
the Fund voted to approve certain changes to the Fund's principal investment
strategies. Those changes resulted in the conversion of the Fund from its
previous multi-manager, multi-strategy actively managed investment strategy, to
its current fund-of-funds actively managed investment strategy that follows
First Trust's First Trust High Income Model. The new investment strategy
resulted in a reduction of the Fund's management fee from 0.85% of average daily
net assets to 0.20% of average daily net assets; however, the Fund now incurs
acquired fund fees and expenses and its total fees and expenses are subject to a
cap of 0.87% of average daily net assets. Concurrently with the implementation
of those changes, the Fund's name changed from First Trust Strategic Income ETF
to First Trust High Income Strategic Focus ETF. The number of shares voted in
favor of the proposal was 370,690, the number voted against was 7,630, and the
number of abstentions was 94,434.

                            FEDERAL TAX INFORMATION

For the taxable year ended October 31, 2022, the following percentages of income
paid by the Fund qualify for the dividends received deduction available to
corporations and are hereby designated as qualified dividend income:

          Dividends Received Deduction         Qualified Dividend Income
          ----------------------------         -------------------------
                     11.86%                             12.55%

A portion of the Fund's 2022 ordinary dividends (including short-term capital
gains) paid to its shareholders during the fiscal year ended October 31, 2022,
may be eligible for the Qualified Business Income Deduction (QBI) under Internal
Revenue Code Section 199A for the aggregate dividends the Fund received from the
underlying Real Estate Investment Trusts (REITs) it invests in.

                              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.


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               FIRST TRUST HIGH INCOME STRATEGIC FOCUS ETF (HISF)
                          OCTOBER 31, 2022 (UNAUDITED)

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.

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,


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               FIRST TRUST HIGH INCOME STRATEGIC FOCUS ETF (HISF)
                          OCTOBER 31, 2022 (UNAUDITED)

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.

MARKET RISK. Market risk is the risk that a particular security, or shares of a
fund in general, may fall in value. Securities held by a fund, as well as shares
of a fund itself, are subject to market fluctuations caused by factors such as
general economic conditions, political events, regulatory or market
developments, changes in interest rates and perceived trends in securities
prices. Shares of a fund could decline in value or underperform other
investments as a result of the risk of loss associated with these market
fluctuations. In addition, local, regional or global events such as war, acts of
terrorism, spread of infectious diseases or other public health issues,
recessions, or other events could have a significant negative impact on a fund
and its investments. Such events may affect certain geographic regions,
countries, sectors and industries more significantly than others. In February
2022, Russia invaded Ukraine which has caused and could continue to cause
significant market disruptions and volatility within the markets in Russia,
Europe, and the United States. The hostilities and sanctions resulting from
those hostilities could have a significant impact on certain fund investments as
well as fund performance. The COVID-19 global pandemic and the ensuing policies
enacted by governments and central banks have caused and may continue to cause
significant volatility and uncertainty in global financial markets. While the
U.S. has resumed "reasonably" normal business activity, many countries continue
to impose lockdown measures. Additionally, there is no guarantee that vaccines
will be effective against emerging variants of the disease. These events also
adversely affect the prices and liquidity of a fund's portfolio securities or
other instruments and could result in disruptions in the trading markets. Any of


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               FIRST TRUST HIGH INCOME STRATEGIC FOCUS ETF (HISF)
                          OCTOBER 31, 2022 (UNAUDITED)

such circumstances could have a materially negative impact on the value of a
fund's shares and result in increased market volatility. During any such events,
a fund's shares may trade at increased premiums or discounts to their net asset
value and the bid/ask spread on a fund's shares may widen.

NON-U.S. SECURITIES RISK. To the extent a fund invests in non-U.S. securities,
it is subject to additional risks not associated with securities of domestic
issuers. Non-U.S. securities are subject to higher volatility than securities of
domestic issuers due to: possible adverse political, social or economic
developments; restrictions on foreign investment or exchange of securities;
capital controls; lack of liquidity; currency exchange rates; excessive
taxation; government seizure of assets; the imposition of sanctions by foreign
governments; different legal or accounting standards; and less government
supervision and regulation of exchanges in foreign countries. Investments in
non-U.S. securities may involve higher costs than investments in U.S.
securities, including higher transaction and custody costs, as well as
additional taxes imposed by non-U.S. governments. These risks may be heightened
for securities of companies located, or with significant operations, in emerging
market countries.

OPERATIONAL RISK. Each fund is subject to risks arising from various operational
factors, including, but not limited to, human error, processing and
communication errors, errors of a fund's service providers, counterparties or
other third-parties, failed or inadequate processes and technology or systems
failures. Each fund relies on third-parties for a range of services, including
custody. Any delay or failure relating to engaging or maintaining such service
providers may affect a fund's ability to meet its investment objective. Although
the funds and the funds' investment advisor seek to reduce these operational
risks through controls and procedures, there is no way to completely protect
against such risks.

PASSIVE INVESTMENT RISK. To the extent a fund seeks to track an index, the fund
will invest in the securities included in, or representative of, the index
regardless of their investment merit. A fund generally will not attempt to take
defensive positions in declining markets.

PREFERRED SECURITIES RISK. Preferred securities combine some of the
characteristics of both common stocks and bonds. Preferred securities are
typically subordinated to bonds and other debt securities in a company's capital
structure in terms of priority to corporate income, subjecting them to greater
credit risk than those debt securities. Generally, holders of preferred
securities have no voting rights with respect to the issuing company unless
preferred dividends have been in arrears for a specified number of periods, at
which time the preferred security holders may obtain limited rights. In certain
circumstances, an issuer of preferred securities may defer payment on the
securities and, in some cases, redeem the securities prior to a specified date.
Preferred securities may also be substantially less liquid than other
securities, including common stock.

VALUATION RISK. The valuation of certain securities may carry more risk than
that of common stock. Uncertainties in the conditions of the financial markets,
unreliable reference data, lack of transparency and inconsistency of valuation
models and processes may lead to inaccurate asset pricing. A fund may hold
investments in sizes smaller than institutionally sized round lot positions
(sometimes referred to as odd lots). However, third-party pricing services
generally provide evaluations on the basis of institutionally-sized round lots.
If a fund sells certain of its investments in an odd lot transaction, the sale
price may be less than the value at which such securities have been held by the
fund. Odd lots often trade at lower prices than institutional round lots. There
is no assurance that the fund will be able to sell a portfolio security at the
price established by the pricing service, which could result in a loss to the
fund.

          NOT FDIC INSURED   NOT BANK GUARANTEED   MAY LOSE VALUE

                               ADVISORY AGREEMENT

BOARD CONSIDERATIONS REGARDING APPROVAL OF CONTINUATION OF INVESTMENT MANAGEMENT
AGREEMENT

The Board of Trustees of First Trust Exchange-Traded Fund IV (the "Trust"),
including the Independent Trustees, unanimously approved the continuation of the
Investment Management Agreement (the "Agreement") with First Trust Advisors L.P.
(the "Advisor") on behalf of the First Trust High Income Strategic Focus ETF
(the "Fund"). The Board approved the continuation of the Agreement for a
one-year period ending June 30, 2023 at a meeting held on June 12-13, 2022. The
Board determined that the continuation of the Agreement is in the best interests
of the Fund in light of the nature, extent and quality of the services 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


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               FIRST TRUST HIGH INCOME STRATEGIC FOCUS ETF (HISF)
                          OCTOBER 31, 2022 (UNAUDITED)

on such agreements. At meetings held on April 18, 2022 and June 12-13, 2022, the
Board, including the Independent Trustees, reviewed materials provided by the
Advisor 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 provided by the Advisor to the Fund (including
the relevant personnel responsible for these services and their experience); the
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
clients of the Advisor, including other exchange-traded funds ("ETFs") managed
by the Advisor; the expense ratio of the Fund as compared to expense ratios of
the funds in the Fund's Expense Group and Expense Universe; performance
information for the Fund, including comparisons of the Fund's performance to
that of one or more relevant benchmark indexes and to that of a performance
group of funds and a broad performance universe of funds (the "Performance
Universe"), each assembled by Broadridge; the nature of expenses incurred in
providing services to the Fund and the potential for the Advisor to realize
economies of scale, if any; profitability and other financial data for the
Advisor; any indirect benefits to the Advisor and its affiliate, First Trust
Portfolios L.P. ("FTP"); and information on the Advisor's compliance program.
The Board reviewed initial materials with the Advisor at the meeting held on
April 18, 2022, prior to which the Independent Trustees and their counsel met
separately to discuss the information provided by the Advisor. Following the
April meeting, counsel to the Independent Trustees, on behalf of the Independent
Trustees, requested certain clarifications and supplements to the materials
provided, and the information provided in response to those requests was
considered at an executive session of the Independent Trustees and their counsel
held prior to the June 12-13, 2022 meeting, as well as at the June meeting. The
Board applied its business judgment to determine whether the arrangement between
the Trust and the Advisor continues to be a reasonable business arrangement from
the Fund's perspective. The Board determined that, given the totality of the
information provided with respect to the Agreement, the Board had received
sufficient information to renew the Agreement. The Board considered that
shareholders chose to invest or remain invested in the Fund knowing that the
Advisor manages the Fund and knowing the Fund's unitary fee.

In reviewing the Agreement, the Board considered the nature, extent and quality
of the services provided by the Advisor under the Agreement. The Board
considered that the Advisor is responsible for the overall management and
administration of the Trust and the Fund and reviewed all of the services
provided by the Advisor to the Fund, as well as the background and experience of
the persons responsible for such services. The Board noted that the Fund is an
actively-managed ETF and noted that the Advisor's Investment Committee is
responsible for the day-to-day management of the Fund's investments. The Board
considered the background and experience of the members of the Investment
Committee and noted the Board's prior meetings with members of the Investment
Committee. In reviewing the services 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 and the Fund's compliance with the
1940 Act, as well as the Fund's compliance with its investment objectives,
policies and restrictions. The Board also considered a report from the Advisor
with respect to its risk management functions related to the operation of the
Fund. Finally, as part of the Board's consideration of the Advisor's services,
the Advisor, in its written materials and at the April 18, 2022 meeting,
described to the Board the scope of its ongoing investment in additional
personnel and infrastructure to maintain and improve the quality of services
provided to the Fund and the other funds in the First Trust Fund Complex. In
light of the information presented and the considerations made, the Board
concluded that the nature, extent and quality of the services provided to the
Trust and the Fund by the Advisor under the Agreement have been and are expected
to remain satisfactory and that the Advisor has managed the Fund consistent with
the Fund's investment objectives, policies and restrictions.

The Board considered the unitary fee rate payable by the Fund under the
Agreement for the services provided. The Board considered that as part of the
unitary fee the Advisor is responsible for the Fund's expenses, including the
cost of transfer agency, custody, fund administration, legal, audit and other
services and license fees, if any, but excluding the fee payment under the
Agreement and interest, taxes, acquired fund fees and expenses, 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 noted that because the Fund
invests in underlying ETFs, including ETFs in the First Trust Fund Complex, the
Fund incurs acquired fund fees and expenses, which are not payable out of the
unitary fee, and that such acquired fund fees and expenses will change over time
as assets are reallocated among the underlying ETFs. The Board considered that
the Advisor agreed to cap the Fund's combined unitary fee and acquired fund fees
and expenses at 0.87% of its average daily net assets at least through March 1,
2023. The Board noted that expenses reimbursed and fees waived are subject to
recovery by the Advisor for up to three years from the date the fee was waived
or expense was incurred, but no reimbursement payment would be made by the Fund
if it results in the Fund exceeding (i) the applicable expense limitation in
place for the most recent fiscal year for which such expense limitation was in
place, (ii) the applicable expense limitation in place at the time the fees were
waived, or (iii) the current expense limitation. The Board received and reviewed
information showing the fee rates and expense ratios of the peer funds in the


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               FIRST TRUST HIGH INCOME STRATEGIC FOCUS ETF (HISF)
                          OCTOBER 31, 2022 (UNAUDITED)

Expense Group, as well as advisory and unitary fee rates charged by the Advisor
to other fund (including ETFs) and non-fund clients, as applicable. Because the
Fund pays 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, after taking into account fee
waivers, was below the median total (net) expense ratio (excluding acquired fund
fees and expenses) of the peer funds in the Expense Group. The Board also noted
that the Fund's total (net) expense ratio (including acquired fund fees and
expenses) was below the median total (net) expense ratio (including acquired
fund fees and expenses) of the peer funds in the Expense Group. With respect to
the Expense Group, the Board, at the April 18, 2022 meeting, discussed with
Broadridge its methodology for assembling peer groups and discussed with the
Advisor limitations in creating peer groups for actively-managed ETFs, and
different business models may affect the pricing of services among ETF sponsors.
The Board also noted that the Expense Group contained both actively-managed ETFs
and open-end mutual funds. The Board took these limitations and differences into
account in considering the peer data. With respect to fees charged to other
non-ETF clients, the Board considered differences between the Fund and other
non-ETF clients that limited their comparability. The Board noted that, in
connection with a change in the Fund's investment strategy from a multi-manager,
multi-strategy investment strategy to a fund-of-funds investment strategy that
follows the Advisor's High Income model, which shareholders approved effective
February 28, 2022, the Fund's unitary fee rate was reduced from 0.85% to 0.20%
of the Fund's average daily net assets. In considering the unitary fee rate
overall, the Board also considered the Advisor's statement that it seeks to meet
investor needs through innovative and value-added investment solutions and the
Advisor's demonstrated long-term commitment to the Fund and the other funds in
the First Trust Fund Complex.

The Board considered performance information for the Fund. The Board noted the
process it has established for monitoring the Fund's performance and portfolio
risk on an ongoing basis, which includes quarterly performance reporting from
the Advisor for the Fund. The Board determined that this process continues to be
effective for reviewing the Fund's performance. The Board received and reviewed
information comparing the Fund's performance for periods ended December 31, 2021
to the performance of the funds in the Performance Universe and to that of a
blended benchmark index. Based on the information provided, the Board noted that
the Fund outperformed the Performance Universe median and underperformed the
blended benchmark index for the one-, three- and five-year periods ended
December 31, 2021. The Board noted the change in the Fund's investment strategy
approved by shareholders effective February 28, 2022.

On the basis of all the information provided on the unitary fee and performance
of the Fund and the ongoing oversight by the Board, the Board concluded that the
unitary fee for the Fund continues to be reasonable and appropriate in light of
the nature, extent and quality of the services provided by the Advisor to the
Fund under the Agreement.

The Board considered information and discussed with the Advisor whether there
were any economies of scale in connection with providing advisory services to
the Fund and noted the Advisor's statement that it believes that its expenses
relating to providing advisory services to the Fund will likely increase during
the next twelve months as the Advisor continues to build infrastructure and add
new staff. The Board noted that any reduction in fixed costs associated with the
management of the Fund would benefit the Advisor, but that the unitary fee
structure provides a level of certainty in expenses for the Fund. The Board
considered the revenues and allocated costs (including the allocation
methodology) of the Advisor in serving as investment advisor to the Fund for the
twelve months ended December 31, 2021 and the estimated profitability level for
the Fund calculated by the Advisor based on such data, as well as complex-wide
and product-line profitability data, for the same period. The Board noted the
inherent limitations in the profitability analysis and concluded that, based on
the information provided, the Advisor's profitability level for the Fund was not
unreasonable. In addition, the Board considered indirect benefits described by
the Advisor that may be realized from its relationship with the Fund. The Board
considered that the Advisor had identified as an indirect 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, and noted that the
Advisor does not utilize soft-dollars in connection with the Fund. In addition,
the Board considered that the Advisor, as the investment advisor to certain of
the underlying ETFs in which the Fund invests, will recognize additional revenue
from such underlying ETFs if investment by the Fund causes the assets of the
underlying ETFs to grow. The Board concluded that the character and amount of
potential indirect benefits to the Advisor were not unreasonable.

Based on all of the information considered and the conclusions reached, the
Board, including the Independent Trustees, unanimously determined that the terms
of the Agreement continue to be fair and reasonable and that the continuation of
the Agreement is in the best interests of the Fund. No single factor was
determinative in the Board's analysis.


                                                                         Page 27





--------------------------------------------------------------------------------
ADDITIONAL INFORMATION (CONTINUED)
--------------------------------------------------------------------------------

               FIRST TRUST HIGH INCOME STRATEGIC FOCUS ETF (HISF)
                          OCTOBER 31, 2022 (UNAUDITED)

BOARD CONSIDERATIONS REGARDING APPROVAL OF AMENDMENT TO THE INVESTMENT
MANAGEMENT AGREEMENT

The Board of Trustees of First Trust Exchange-Traded Fund IV (the "Trust"),
including the Independent Trustees, unanimously approved the amendment (the
"Amendment") of the Investment Management Agreement (the "Agreement") with First
Trust Advisors L.P. (the "Advisor") on behalf of the First Trust High Income
Strategic Focus ETF (the "Fund").

The Board approved the Amendment at a meeting held on October 24, 2022. As part
of the review process, the Board reviewed information and had preliminary
discussions with the Advisor regarding the proposed Amendment at meetings held
on April 18, 2022, June 12-13, 2022 and September 18-19, 2022. Following those
preliminary discussions, the Board requested and received information from the
Advisor regarding the proposed Amendment, and that information was considered at
an executive session of the Independent Trustees and their counsel held prior to
the October 24, 2022 meeting, as well as at the October meeting.

In reviewing the Amendment, the Board considered that the purpose of the
Amendment is to modify the unitary fee rate for the Fund under the Agreement by
introducing a breakpoint schedule pursuant to which the unitary fee rate paid by
the Fund to the Advisor will be reduced as assets of the Fund meet certain
thresholds. The Board noted the Advisor's representations that the quality and
quantity of the services provided to the Fund by the Advisor under the Agreement
will not be reduced or modified as a result of the Amendment, and that the
obligations of the Advisor under the Agreement will remain the same in all
respects.

The Board noted that it, including the Independent Trustees, last approved the
continuation of the Agreement for a one-year period ending June 30, 2023 at a
meeting held on June 12-13, 2022. The Board noted that in connection with such
approval it had determined, based upon the information provided, that the terms
of the Agreement were fair and reasonable and that the continuation of the
Agreement was in the best interests of the Fund in light of the nature, extent
and quality of the services provided and such other matters as the Board
considered to be relevant in the exercise of its business judgment.

Based on all of the information considered, the Board, including the Independent
Trustees, unanimously determined that the terms of the Amendment are fair and
reasonable and that the Amendment is in the best interests of the Fund.


Page 28





--------------------------------------------------------------------------------
BOARD OF TRUSTEES AND OFFICERS
--------------------------------------------------------------------------------

               FIRST TRUST HIGH INCOME STRATEGIC FOCUS ETF (HISF)
                          OCTOBER 31, 2022 (UNAUDITED)

The following tables identify the Trustees and Officers of the Trust. Unless
otherwise indicated, the address of all persons is 120 East Liberty Drive, Suite
400, Wheaton, IL 60187.

The Trust's statement of additional information includes additional information
about the Trustees and is available, without charge, upon request, by calling
(800) 988-5891.



                                                                                           NUMBER OF                OTHER
                                                                                         PORTFOLIOS IN         TRUSTEESHIPS OR
                               TERM OF OFFICE                                           THE FIRST TRUST         DIRECTORSHIPS
           NAME,               AND YEAR FIRST                                            FUND COMPLEX          HELD BY TRUSTEE
     YEAR OF BIRTH AND           ELECTED OR              PRINCIPAL OCCUPATIONS            OVERSEEN BY            DURING PAST
  POSITION WITH THE TRUST         APPOINTED               DURING PAST 5 YEARS               TRUSTEE                5 YEARS
------------------------------------------------------------------------------------------------------------------------------------
                                                        INDEPENDENT TRUSTEES
------------------------------------------------------------------------------------------------------------------------------------
                                                                                             
Richard E. Erickson, Trustee  o Indefinite Term  Physician, Edward-Elmhurst Medical           223        None
(1951)                                           Group; Physician and Officer,
                              o Since Inception  Wheaton Orthopedics (1990 to 2021)

Thomas R. Kadlec, Trustee     o Indefinite Term  Retired; President, ADM Investors            223        Director, National Futures
(1957)                                           Services, Inc. (Futures Commission                      Association and ADMIS
                              o Since Inception  Merchant) (2010 to July 2022)                           Singapore Ltd.; Formerly,
                                                                                                         Director of ADM Investor
                                                                                                         Services, Inc., ADM
                                                                                                         Investor Services
                                                                                                         International, ADMIS
                                                                                                         Hong Kong Ltd., and
                                                                                                         Futures Industry
                                                                                                         Association

Denise M. Keefe, Trustee      o Indefinite Term  Executive Vice President, Advocate           223        Director and Board Chair
(1964)                                           Aurora Health and President, Advocate                   of Advocate Home Health
                              o Since 2021       Aurora Continuing Health Division                       Services, Advocate Home
                                                 (Integrated Healthcare System)                          Care Products and
                                                                                                         Advocate Hospice;
                                                                                                         Director and Board Chair of
                                                                                                         Aurora At Home (since
                                                                                                         2018); Director of
                                                                                                         Advocate Physician
                                                                                                         Partners Accountable Care
                                                                                                         Organization; Director and
                                                                                                         Board Chair of RML Long
                                                                                                         Term Acute Care
                                                                                                         Hospitals; and Director of
                                                                                                         Senior Helpers (since
                                                                                                         2021)

Robert F. Keith, Trustee      o Indefinite Term  President, Hibs Enterprises                  223        Formerly, Director of Trust
(1956)                                           (Financial and Management Consulting)                   Company of Illinois
                              o Since Inception

Niel B. Nielson, Trustee      o Indefinite Term  Senior Advisor (2018 to Present),            223        None
(1954)                                           Managing Director and Chief Operating
                              o Since Inception  Officer (2015 to 2018), Pelita
                                                 Harapan Educational Foundation
                                                 (Educational Products and Services)

------------------------------------------------------------------------------------------------------------------------------------
                                                         INTERESTED TRUSTEE
------------------------------------------------------------------------------------------------------------------------------------
James A. Bowen(1), Trustee,   o Indefinite Term  Chief Executive Officer, First Trust         223        None
Chairman of the Board                            Advisors L.P. and First Trust
                              o Since Inception  Portfolios L.P., (1955)
                                                 Chairman of the Board of Directors,
                                                 BondWave LLC (Software Development
                                                 Company) and Stonebridge Advisors LLC
                                                 (Investment Advisor)


-----------------------------

(1)   Mr. Bowen is deemed an "interested person" of the Trust due to his
      position as Chief Executive Officer of First Trust Advisors L.P.,
      investment advisor of the Trust.


                                                                         Page 29





--------------------------------------------------------------------------------
BOARD OF TRUSTEES AND OFFICERS (CONTINUED)
--------------------------------------------------------------------------------

               FIRST TRUST HIGH INCOME STRATEGIC FOCUS ETF (HISF)
                          OCTOBER 31, 2022 (UNAUDITED)



                             POSITION AND             TERM OF OFFICE
     NAME AND                  OFFICES                AND LENGTH OF                         PRINCIPAL OCCUPATIONS
   YEAR OF BIRTH              WITH TRUST                 SERVICE                             DURING PAST 5 YEARS
------------------------------------------------------------------------------------------------------------------------------------
                                                            OFFICERS(2)
------------------------------------------------------------------------------------------------------------------------------------
                                                                
James M. Dykas       President and Chief           o Indefinite Term     Managing Director and Chief Financial Officer, First
(1966)               Executive Officer                                   Trust Advisors L.P. and First Trust Portfolios L.P.;
                                                   o Since 2016          Chief Financial Officer, BondWave LLC (Software
                                                                         Development Company) and Stonebridge Advisors
                                                                         LLC (Investment Advisor)

Donald P. Swade      Treasurer, Chief Financial    o Indefinite Term     Senior Vice President, First Trust Advisors L.P. and
(1972)               Officer and Chief Accounting                        First Trust Portfolios L.P.
                     Officer                       o Since 2016

W. Scott Jardine     Secretary and Chief Legal     o Indefinite Term     General Counsel, First Trust Advisors L.P. and First
(1960)               Officer                                             Trust Portfolios L.P.; Secretary and General Counsel,
                                                   o Since Inception     BondWave LLC; Secretary, Stonebridge Advisors LLC

Daniel J. Lindquist  Vice President                o Indefinite Term     Managing Director, First Trust Advisors L.P. and First
(1970)                                                                   Trust Portfolios L.P.
                                                   o Since Inception

Kristi A. Maher      Chief Compliance Officer and  o Indefinite Term     Deputy General Counsel, First Trust Advisors L.P. and
(1966)               Assistant Secretary                                 First Trust Portfolios L.P.
                                                   o Since Inception

Roger F. Testin      Vice President                o Indefinite Term     Senior Vice President, First Trust Advisors L.P. and
(1966)                                                                   First Trust Portfolios L.P.
                                                   o Since Inception

Stan Ueland          Vice President                o Indefinite Term     Senior Vice President, First Trust Advisors L.P. and
(1970)                                                                   First Trust Portfolios L.P.
                                                   o Since Inception


-----------------------------

(2)   The term "officer" means the president, vice president, secretary,
      treasurer, controller or any other officer who performs a policy making
      function.


Page 30





--------------------------------------------------------------------------------
PRIVACY POLICY
--------------------------------------------------------------------------------

               FIRST TRUST HIGH INCOME STRATEGIC FOCUS ETF (HISF)
                          OCTOBER 31, 2022 (UNAUDITED)

                                 PRIVACY POLICY

First Trust values our relationship with you and considers your privacy an
important priority in maintaining that relationship. We are committed to
protecting the security and confidentiality of your personal information.

SOURCES OF INFORMATION

We collect nonpublic personal information about you from the following sources:

      o     Information we receive from you and your broker-dealer, investment
            professional or financial representative through interviews,
            applications, agreements or other forms;

      o     Information about your transactions with us, our affiliates or
            others;

      o     Information we receive from your inquiries by mail, e-mail or
            telephone; and

      o     Information we collect on our website through the use of "cookies."
            For example, we may identify the pages on our website that your
            browser requests or visits.

INFORMATION COLLECTED

The type of data we collect may include your name, address, social security
number, age, financial status, assets, income, tax information, retirement and
estate plan information, transaction history, account balance, payment history,
investment objectives, marital status, family relationships and other personal
information.

DISCLOSURE OF INFORMATION

We do not disclose any nonpublic personal information about our customers or
former customers to anyone, except as permitted by law. In addition to using
this information to verify your identity (as required under law), the permitted
uses may also include the disclosure of such information to unaffiliated
companies for the following reasons:

      o     In order to provide you with products and services and to effect
            transactions that you request or authorize, we may disclose your
            personal information as described above to unaffiliated financial
            service providers and other companies that perform administrative or
            other services on our behalf, such as transfer agents, custodians
            and trustees, or that assist us in the distribution of investor
            materials such as trustees, banks, financial representatives, proxy
            services, solicitors and printers.

      o     We may release information we have about you if you direct us to do
            so, if we are compelled by law to do so, or in other legally limited
            circumstances (for example to protect your account from fraud).

In addition, in order to alert you to our other financial products and services,
we may share your personal information within First Trust.

USE OF WEBSITE ANALYTICS

We currently use third party analytics tools, Google Analytics and AddThis, to
gather information for purposes of improving First Trust's website and marketing
our products and services to you. These tools employ cookies, which are small
pieces of text stored in a file by your web browser and sent to websites that
you visit, to collect information, track website usage and viewing trends such
as the number of hits, pages visited, videos and PDFs viewed and the length of
user sessions in order to evaluate website performance and enhance navigation of
the website. We may also collect other anonymous information, which is generally
limited to technical and web navigation information such as the IP address of
your device, internet browser type and operating system for purposes of
analyzing the data to make First Trust's website better and more useful to our
users. The information collected does not include any personal identifiable
information such as your name, address, phone number or email address unless you
provide that information through the website for us to contact you in order to
answer your questions or respond to your requests. To find out how to opt-out of
these services click on: Google Analytics and AddThis.

CONFIDENTIALITY AND SECURITY

With regard to our internal security procedures, First Trust restricts access to
your nonpublic personal information to those First Trust employees who need to
know that information to provide products or services to you. We maintain
physical, electronic and procedural safeguards to protect your nonpublic
personal information.

POLICY UPDATES AND INQUIRIES

As required by federal law, we will notify you of our privacy policy annually.
We reserve the right to modify this policy at any time, however, if we do change
it, we will tell you promptly. For questions about our policy, or for additional
copies of this notice, please go to www.ftportfolios.com, or contact us at
1-800-621-1675 (First Trust Portfolios) or 1-800-222-6822 (First Trust
Advisors).

March 2022

                                                                         Page 31





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FIRST TRUST

First Trust Exchange-Traded Fund IV

INVESTMENT ADVISOR
First Trust Advisors L.P.
120 East Liberty Drive, Suite 400
Wheaton, IL 60187

ADMINISTRATOR, CUSTODIAN,
FUND ACCOUNTANT &
TRANSFER AGENT
The Bank of New York Mellon
240 Greenwich Street
New York, NY 10286

INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
Deloitte & Touche LLP
111 S. Wacker Drive
Chicago, IL 60606

LEGAL COUNSEL
Chapman and Cutler LLP
320 South Canal Street
Chicago, IL 60606





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