First Trust Exchange-Traded Fund III

Semi-Annual Report

April 30, 2023

Shareholder Letter	1
Fund Performance Overview
First Trust Preferred Securities and Income ETF (FPE)	2
First Trust Institutional Preferred Securities and Income ETF (FPEI)	5
Notes to Fund Performance Overview	8
Portfolio Management	9
Understanding Your Fund Expenses	10
Portfolio of Investments
First Trust Preferred Securities and Income ETF (FPE)	11
First Trust Institutional Preferred Securities and Income ETF (FPEI)	21
Statements of Assets and Liabilities	27
Statements of Operations	28
Statements of Changes in Net Assets	29
Financial Highlights	30
Notes to Financial Statements	32
Additional Information	40

Caution Regarding Forward-Looking Statements

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

Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of any series of First Trust Exchange-Traded Fund III (the “Trust”) described in this report (each such series is referred to as a “Fund” and collectively, the “Funds”) to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. When evaluating the information included in this report, you are cautioned not to place undue reliance on these forward-looking statements, which reflect the judgment of the Advisor and/or Sub-Advisor and their respective representatives only as of the date hereof. We undertake no obligation to publicly revise or update these forward-looking statements to reflect events and circumstances that arise after the date hereof.

Performance and Risk Disclosure

There is no assurance that any Fund described in this report will achieve its investment objective. Each Fund is subject to market risk, which is the possibility that the market values of securities owned by the Fund will decline and that the value of the Fund’s shares may therefore be less than what you paid for them. Accordingly, you can lose money by investing in a Fund. See “Risk Considerations” in the Additional Information section of this report for a discussion of certain other risks of investing in the Funds.

Performance data quoted represents past performance, which is no guarantee of future results, and current performance may be lower or higher than the figures shown. For the most recent month-end performance figures, please visit www.ftportfolios.com or speak with your financial advisor. Investment returns, net asset value and share price will fluctuate and Fund shares, when sold, may be worth more or less than their original cost.

The Advisor may also periodically provide additional information on Fund performance on each Fund’s web page at www.ftportfolios.com.

How to Read This Report

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

The statistical information that follows may help you understand each Fund’s performance compared to that of relevant market
benchmarks.

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

First Trust Exchange-Traded Fund III

Semi-Annual Letter from the Chairman and CEO

April 30, 2023

Dear Shareholders,

First Trust is pleased to provide you with the semi-annual report for certain series of First Trust Exchange-Traded Fund III (the “Funds”), which contains detailed information about the Funds for the six months ended April 30, 2023.

It pleases me to write that on May 5, 2023, the World Health Organization officially declared that the coronavirus (“COVID-19”) pandemic no longer qualified as a global health emergency. While the virus officially no longer poses an immediate threat, its full impact on the world economy remains to be seen, in my opinion. Recall, if you will, those early days of the pandemic; companies sent workers home, consumers were afraid or unwilling to leave their homes, supply chains dried up, and grocery shelves were left bare. Hoping to provide relief to their constituents and to bolster economic activity, governments across the globe funneled trillions of dollars in stimulus directly into the hands of their citizens. Unfortunately, economist Milton Friedman’s age-old economic adage “there’s no such thing as a free lunch” still holds. As a result of the U.S. government stimulus, gross domestic product rebounded quickly, but so did inflation.

As many investors are aware, the Federal Reserve (the “Fed”) has been locked in a battle with stubbornly high inflation for several years now. Inflation, as measured by the trailing 12-month rate of change in the Consumer Price Index (“CPI”), surged from 1.4% on December 31, 2020, to 9.1% as of June 30, 2022. Since then, the trailing rate on the CPI has come down, but remains elevated. On April 30, 2023, the CPI stood at 4.9%, well above the Fed’s goal of 2.0%. Surging prices have not been restricted to the U.S. Headline inflation rates in each of the countries that make up the so-called Group of Ten (G-10) stand above the targets set by their central banks, according to data from Bloomberg.

From the Fed’s perspective, monetary policy is the most efficient means to combat rising prices. From December 31, 2020 through May 3, 2023, the Fed increased the Federal Funds target rate (upper bound) a total of ten times, raising the rate from 0.25% to 5.25%. As mentioned, tighter monetary policy resulted in a decrease in the CPI, but there have been casualties in the Fed’s battle with rising prices. The most recent banking turmoil is one example. Another is the spike in mortgage rates. According to Bankrate, the national average for a 30-year mortgage stood at just 2.87% on December 31, 2020. As of May 1, 2023, the average 30-year mortgage rate had surged to 6.88%. Not all the news is negative, however. Driven by a strong U.S. labor market, consumer spending remained robust in April 2023. Notably, American corporations added 253,000 jobs during the month, and the unemployment rate stood at a 53-year low. Bob Carey, Chief Market Strategist at First Trust, recently summed up the current situation, noting that “we’re not out of the woods yet.” That said, even the most difficult situations don’t last forever. In my opinion, like the COVID-19 pandemic, inflation, and the tighter monetary policy it ushered in, will pass with time.

Thank you for giving First Trust the opportunity to play a role in your financial future. We value our relationship with you and will report on the Funds again in six months.

Sincerely,

James A. Bowen

Chairman of the Board of Trustees

Chief Executive Officer of First Trust Advisors L.P.

Page 1

First Trust Preferred Securities and Income ETF (FPE)

The First Trust Preferred Securities and Income ETF’s (the “Fund”) investment objective is to seek total return and to provide current income. Under normal market conditions, the Fund invests at least 80% of its net assets (including investment borrowings) in preferred securities (“Preferred Securities”) and income-producing debt securities (“Income Securities”). The Fund invests in securities that are traded over-the-counter or listed on an exchange. For purposes of the 80% test set forth above, securities of open-end funds, closed-end funds or other exchange-traded funds (“ETFs”) registered under the Investment Company Act of 1940, as amended, that invest primarily in Preferred Securities or Income Securities are deemed to be Preferred Securities or Income Securities.

Preferred Securities held by the Fund generally pay fixed or adjustable-rate distributions to investors and have preference over common stock in the payment of distributions and the liquidation of a company’s assets, but are generally junior to all forms of the company’s debt, including both senior and subordinated debt. Certain of the Preferred Securities may be issued by trusts or other special purpose entities created by companies specifically for the purpose of issuing such securities. Income Securities that may be held by the Fund include corporate bonds, high yield securities (commonly referred to as “junk” bonds) and convertible securities. The broad category of corporate debt securities includes debt issued by U.S. and non-U.S. companies of all kinds, including those with small, mid and large capitalizations. Corporate debt may carry fixed or floating rates of interest.

Performance
			Average Annual Total Returns				Cumulative Total Returns
	6 Months Ended 4/30/23	1 Year Ended 4/30/23	5 Years Ended 4/30/23	10 Years Ended 4/30/23	Inception (2/11/13) to 4/30/23		5 Years Ended 4/30/23	10 Years Ended 4/30/23	Inception (2/11/13) to 4/30/23
Fund Performance
NAV	-0.58%	-7.40%	1.45%	3.05%	3.31%		7.46%	34.99%	39.45%
Market Price	-0.16%	-7.11%	1.40%	3.03%	3.29%		7.22%	34.73%	39.25%
Index Performance
ICE BofA US Investment Grade Institutional Capital Securities Index	6.57%	-0.17%	3.34%	4.06%	4.30%		17.83%	48.91%	53.76%
Blended Benchmark(1)(2)	2.85%	-4.66%	1.93%	N/A	N/A		10.04%	N/A	N/A

(See Notes to Fund Performance Overview Page 8.)

(1)

The Blended Benchmark consists of a 30/30/30/10 blend of the ICE BofA Core Plus Fixed Rate Preferred Securities Index, the ICE BofA US Investment Grade Institutional Capital Securities Index, the ICE USD Contingent Capital Index and the ICE BofA US High Yield Institutional Capital Securities Index. The Blended Benchmark is intended to reflect the proportional market cap of each segment of the preferred and hybrid securities market. The indices do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the performance shown. Indices are unmanaged and an investor cannot invest directly in an index. The Blended Benchmark returns are calculated by using the monthly returns of the four indices during each period shown above. At the beginning of each month the four indices are rebalanced to a 30/30/30/10 ratio to account for divergence from that ratio that occurred during the course of each month. The monthly returns are then compounded for each period shown above, giving the performance for the Blended Benchmark for each period shown above.

(2)	Since the ICE USD Contingent Capital Index had an inception date of December 31, 2013, the performance of the Blended Benchmark is not available for all of the periods disclosed.

Page 2

First Trust Preferred Securities and Income ETF (FPE) (Continued)

Sector Allocation	% of Total Investments
Financials	72.8%
Energy	9.4
Utilities	7.7
Industrials	3.6
Consumer Staples	2.8
Real Estate	1.9
Communication Services	1.1
Materials	0.5
Consumer Discretionary	0.2
Total	100.0%

    

Credit Rating(3)	% of Total Fixed-Income Investments
A	0.1%
BBB+	11.2
BBB	21.0
BBB-	33.4
BB+	15.6
BB	10.8
BB-	3.5
B+	0.4
B	0.4
Not Rated	3.6
Total	100.0%

    

Top Ten Holdings	% of Total Investments
AerCap Holdings N.V.	2.5%
Barclays PLC	2.1
Wells Fargo & Co., Series L	2.1
Highlands Holdings Bond Issuer Ltd./Highlands Holdings Bond Co-Issuer, Inc.	1.8
Barclays PLC	1.7
Bank of America Corp., Series L	1.4
UniCredit S.p.A.	1.3
Global Atlantic Fin Co.	1.3
Intesa Sanpaolo S.p.A.	1.2
Enbridge, Inc., Series 16-A	1.1
Total	16.5%

Country Allocation	% of Total Investments
United States	54.1%
United Kingdom	10.3
Canada	8.7
Bermuda	6.1
France	4.8
Netherlands	2.9
Italy	2.9
Australia	2.7
Spain	1.8
Multinational	1.8
Mexico	1.5
Germany	1.2
Denmark	0.8
Switzerland	0.4
Total	100.0%

(3)

The credit quality and ratings information presented above reflect the ratings assigned by one or more nationally recognized statistical rating organizations (NRSROs), including S&P Global Ratings, Moody’s Investors Service, Inc., Fitch Ratings or a comparably rated NRSRO. For situations in which a security is rated by more than one NRSRO and the ratings are not equivalent, the highest rating is used. Sub-investment grade ratings are those rated BB+/Ba1 or lower. Investment grade ratings are those rated BBB-/Baa3 or higher. The credit ratings shown relate to the creditworthiness of the issuers of the underlying securities in the Fund, and not to the Fund or its shares. Credit ratings are subject to change.

Page 3

First Trust Preferred Securities and Income ETF (FPE) (Continued)

Frequency Distribution of Discounts and Premiums

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

Page 4

First Trust Institutional Preferred Securities and Income ETF (FPEI)

The First Trust Institutional Preferred Securities and Income ETF’s (the “Fund”) investment objective is to seek total return and to provide current income. Under normal market conditions, the Fund invests at least 80% of its net assets (including investment borrowings) in institutional preferred securities (“Preferred Securities”) and income-producing debt securities (“Income Securities”). Preferred Securities are a type of equity security that have preference over common stock in the payment of distributions and the liquidation of a company’s assets, but are generally junior to all forms of the company’s debt, including both senior and subordinated debt. The Fund’s investments in Preferred Securities will primarily be in institutional preferred securities. Institutional preferred securities are targeted to institutional, rather than retail, investors, are generally traded over-the-counter and may also be known as “$1,000 par preferred securities.” They are typically issued in large, institutional lot sized by U.S. and non-U.S. financial services companies and other companies. While all income-producing debt securities will be categorized as “Income Securities” for purposes of the 80% test above, the Income Securities in which the Fund intends to invest as part of its principal investment strategy include hybrid capital securities, contingent capital securities, U.S. and non-U.S. corporate bonds and convertible securities.

Performance
			Average Annual Total Returns			Cumulative Total Returns
	6 Months Ended 4/30/23	1 Year Ended 4/30/23	5 Years Ended 4/30/23	Inception (8/22/17) to 4/30/23		5 Years Ended 4/30/23	Inception (8/22/17) to 4/30/23
Fund Performance
NAV	0.05%	-5.86%	2.17%	2.02%		11.34%	12.02%
Market Price	0.16%	-5.68%	2.24%	2.07%		11.74%	12.35%
Index Performance
Blended Benchmark(1)	1.26%	-6.00%	2.10%	1.91%		10.98%	11.34%
ICE BofA US Investment Grade Institutional Capital Securities Index	6.57%	-0.17%	3.34%	2.78%		17.83%	16.89%

(See Notes to Fund Performance Overview Page 8.)

(1)

The Blended Benchmark consists of a 45/40/15 blend of the ICE BofA US Investment Grade Institutional Capital Securities Index, the ICE USD Contingent Capital Index and the ICE BofA US High Yield Institutional Capital Securities Index. The Blended Benchmark is intended to reflect the proportional market cap of each segment within the institutional market. The Blended Benchmark returns are calculated by using the monthly returns of the three indices during each period shown above. At the beginning of each month the three indices are rebalanced to a 45/40/15 ratio to account for divergence from that ratio that occurred during the course of each month. The monthly returns are then compounded for each period shown above, giving the performance for the Blended Benchmark for each period shown above.

Page 5

First Trust Institutional Preferred Securities and Income ETF (FPEI) (Continued)

Sector Allocation	% of Total Investments
Financials	77.1%
Energy	9.6
Utilities	9.5
Industrials	2.2
Consumer Staples	1.1
Materials	0.5
Total	100.0%

    

Credit Quality(2)	% of Total Investments
A+	0.1%
A	0.3
BBB+	15.4
BBB	23.2
BBB-	39.4
BB+	9.2
BB	7.3
BB-	3.8
B+	0.8
Not Rated	0.5
Total	100.0%

    

Top Ten Holdings	% of Total Investments
Toronto-Dominion Bank (The)	3.5%
Bank of America Corp., Series TT	2.4
Intesa Sanpaolo S.p.A.	2.3
Bank of Nova Scotia (The)	2.1
Lincoln National Corp., Series C	2.1
Corebridge Financial, Inc.	2.1
NatWest Group PLC	1.9
Barclays PLC	1.9
PNC Financial Services Group (The), Inc., Series V	1.9
HSBC Holdings PLC	1.8
Total	22.0%

Country Allocation	% of Total Investments
United States	54.6%
Canada	11.7
United Kingdom	11.1
France	5.4
Australia	3.5
Italy	3.4
Netherlands	2.1
Spain	1.7
Multinational	1.7
Mexico	1.3
Bermuda	1.3
Germany	1.2
Denmark	0.6
Switzerland	0.3
Sweden	0.1
Total	100.0%

(2)

The credit quality and ratings information presented above reflect the ratings assigned by one or more nationally recognized statistical rating organizations (NRSROs), including S&P Global Ratings, Moody’s Investors Service, Inc., Fitch Ratings or a comparably rated NRSRO. For situations in which a security is rated by more than one NRSRO and the ratings are not equivalent, the highest rating is used. Sub-investment grade ratings are those rated BB+/Ba1 or lower. Investment grade ratings are those rated BBB-/Baa3 or higher. The credit ratings shown relate to the creditworthiness of the issuers of the underlying securities in the Fund, and not to the Fund or its shares. Credit ratings are subject to change.

Page 6

First Trust Institutional Preferred Securities and Income ETF (FPEI) (Continued)

Frequency Distribution of Discounts and Premiums

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

Page 7

Total returns for the periods since inception are calculated from the inception date of each Fund. “Average Annual Total Returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative Total Returns” represent the total change in value of an investment over the periods indicated.

Each Fund’s per share net asset value (“NAV”) is the value of one share of the Fund and is computed by dividing the value of all assets of the Fund (including accrued interest and dividends), less all liabilities (including accrued expenses and dividends declared but unpaid), by the total number of outstanding shares. The price used to calculate market return (“Market Price”) is determined by using the midpoint of the national best bid and offer price (“NBBO”) as of the time that the Fund’s NAV is calculated. Under SEC rules, the NBBO consists of the highest displayed buy and lowest sell prices among the various exchanges trading the Fund at the time the Fund’s NAV is calculated. Prior to January 1, 2019, the price used was the midpoint between the highest bid and the lowest offer on the stock exchange on which shares of the Fund were listed for trading as of the time that the Fund’s NAV was calculated. Since shares of each Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Fund, the NAV of each Fund is used as a proxy for the secondary market trading price to calculate market returns. NAV and market returns assume that all distributions have been reinvested in each Fund at NAV and Market Price, respectively.

An index is a statistical composite that tracks a specified financial market or sector. Unlike each Fund, the indices do not actually hold a portfolio of securities and therefore do not incur the expenses incurred by each Fund. These expenses negatively impact the performance of each Fund. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower. The total returns presented reflect the reinvestment of dividends on securities in the indices. The returns presented do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. The investment return and principal value of shares of each Fund will vary with changes in market conditions. Shares of each Fund may be worth more or less than their original cost when they are redeemed or sold in the market. Each Fund’s past performance is no guarantee of future performance.

Page 8

Portfolio Management

First Trust Exchange-Traded Fund III

Semi-Annual Report

April 30, 2023 (Unaudited)

Advisor

First Trust Advisors L.P. (“First Trust”) serves as the investment advisor to the First Trust Preferred Securities and Income ETF and the First Trust Institutional Preferred Securities and Income ETF (each a “Fund” and collectively the “Funds”). First Trust is responsible for the ongoing monitoring of each Fund’s investment portfolio, managing each Fund’s business affairs and providing certain administrative services necessary for the management of each Fund.

Sub-Advisor

Stonebridge Advisors LLC

Stonebridge Advisors LLC (“Stonebridge” or the “Sub-Advisor”) is the sub-advisor to the Funds and is a registered investment advisor based in Wilton, Connecticut. Stonebridge specializes in the management of preferred and hybrid securities.

Stonebridge Advisors LLC Portfolio Management Team

Scott T. Fleming - Chief Executive Officer and President

Robert Wolf - Chief Investment Officer, Executive Vice President and Senior Portfolio Manager

Eric Weaver - Executive Vice President, Chief Strategist and Portfolio Manager

Angelo Graci, CFA - Executive Vice President, Head of Credit Research and Portfolio Manager

The portfolio managers are primarily and jointly responsible for the day-to-day management of the Funds.  Each portfolio manager has served as part of the portfolio management team of the Funds since 2013 and 2017, respectively, except for Eric Weaver and Angelo Graci, who have served as members of the portfolio management team since 2020 and 2022, respectively.

Page 9

First Trust Exchange-Traded Fund III

Understanding Your Fund Expenses

April 30, 2023 (Unaudited)

As a shareholder of First Trust Preferred Securities and Income ETF or First Trust Institutional Preferred Securities and Income ETF (each a “Fund” and collectively, the “Funds”), you incur two types of costs: (1) transaction costs; and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, if any, and other Fund expenses. This Example is intended to help you understand your ongoing costs of investing in the Funds and to compare these costs with the ongoing costs of investing in other funds.

The Example is based on an investment of $1,000 invested at the beginning of the period and held through the six-month period ended April 30, 2023.

Actual Expenses

The first line in the following table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During the Six-Month Period” to estimate the expenses you paid on your account during this six-month period.

Hypothetical Example for Comparison Purposes

The second line in the following table provides information about hypothetical account values and hypothetical expenses based on each Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not each Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs such as brokerage commissions. Therefore, the second line in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

	Beginning Account Value November 1, 2022	Ending Account Value April 30, 2023	Annualized Expense Ratio Based on the Six-Month Period	Expenses Paid During the Six-Month Period (a)
First Trust Preferred Securities and Income ETF (FPE)
Actual	$1,000.00	$994.20	0.83%	$4.10
Hypothetical (5% return before expenses)	$1,000.00	$1,020.68	0.83%	$4.16
First Trust Institutional Preferred Securities and Income ETF (FPEI)
Actual	$1,000.00	$1,000.50	0.85%	$4.22
Hypothetical (5% return before expenses)	$1,000.00	$1,020.58	0.85%	$4.26

    

(a)	Expenses are equal to the annualized expense ratios as indicated in the table multiplied by the average account value over the period (November 1, 2022 through April 30, 2023), multiplied by 181/365 (to reflect the six-month period).

Page 10

First Trust Preferred Securities and Income ETF (FPE)

Portfolio of Investments

April 30, 2023 (Unaudited)

Shares		Description		Stated Rate		Stated Maturity		Value
$25 PAR PREFERRED SECURITIES – 23.1%
		Automobiles – 0.2%
517,645		Ford Motor Co.		6.50%		08/15/62		$12,470,068
		Banks – 3.0%
5,461		Atlantic Union Bankshares Corp., Series A		6.88%		(a)		114,845
399,962		Bank of America Corp., Series KK		5.38%		(a)		9,471,100
30		Bank of America Corp., Series LL		5.00%		(a)		668
922,751		Bank of America Corp., Series NN		4.38%		(a)		17,947,507
87,814		Bank of America Corp., Series SS		4.75%		(a)		1,835,313
185,575		Citizens Financial Group, Inc., Series D (b)		6.35%		(a)		4,257,090
486		Citizens Financial Group, Inc., Series E		5.00%		(a)		9,526
98,808		Fifth Third Bancorp, Series A		6.00%		(a)		2,371,392
337,184		Fulton Financial Corp., Series A		5.13%		(a)		5,597,254
6,945		Huntington Bancshares, Inc., Series H		4.50%		(a)		133,066
792		JPMorgan Chase & Co., Series DD		5.75%		(a)		19,966
51		JPMorgan Chase & Co., Series JJ		4.55%		(a)		1,086
305,005		JPMorgan Chase & Co., Series LL		4.63%		(a)		6,545,407
766,584		KeyCorp (b)		6.20%		(a)		17,018,165
218,650		KeyCorp, Series F		5.65%		(a)		4,698,788
551,392		New York Community Bancorp, Inc., Series A (b)		6.38%		(a)		12,908,087
104,109		Old National Bancorp, Series A		7.00%		(a)		2,572,533
819,765		Pinnacle Financial Partners, Inc., Series B		6.75%		(a)		19,461,221
116,076		Texas Capital Bancshares, Inc., Series B		5.75%		(a)		2,360,986
146		Truist Financial Corp., Series R		4.75%		(a)		3,138
52,030		Valley National Bancorp, Series B, 3 Mo. LIBOR + 3.58% (c)		8.91%		(a)		1,005,220
172,668		Washington Federal, Inc., Series A		4.88%		(a)		2,710,888
169,290		Wells Fargo & Co., Series AA		4.70%		(a)		3,345,170
629		Wells Fargo & Co., Series Q (b)		5.85%		(a)		15,272
746,818		Wells Fargo & Co., Series Y		5.63%		(a)		17,662,246
553,987		WesBanco, Inc., Series A (b)		6.75%		(a)		12,952,216
682,362		Wintrust Financial Corp., Series E (b)		6.88%		(a)		16,151,509
								161,169,659
		Capital Markets – 2.0%
106,463		Affiliated Managers Group, Inc.		5.88%		03/30/59		2,697,772
197,282		Affiliated Managers Group, Inc.		4.75%		09/30/60		3,933,803
980,305		Affiliated Managers Group, Inc.		4.20%		09/30/61		17,214,156
1,521,354		Carlyle Finance LLC		4.63%		05/15/61		28,723,164
400,858		Goldman Sachs Group (The), Inc., Series J (b)		5.50%		(a)		10,061,536
813,286		KKR Group Finance Co., IX LLC		4.63%		04/01/61		15,509,364
276		Morgan Stanley, Series P		6.50%		(a)		7,215
511,642		Oaktree Capital Group LLC, Series A		6.63%		(a)		11,481,246
836,767		Oaktree Capital Group LLC, Series B		6.55%		(a)		18,718,478
								108,346,734
		Consumer Finance – 0.1%
229,359		Capital One Financial Corp., Series I		5.00%		(a)		4,706,447
161,439		Capital One Financial Corp., Series J		4.80%		(a)		3,141,603
								7,848,050
		Diversified REITs – 0.4%
850,146		Global Net Lease, Inc., Series A		7.25%		(a)		18,830,734
		Diversified Telecommunication Services – 0.7%
78,274		AT&T, Inc.		5.35%		11/01/66		1,856,659
368,758		AT&T, Inc., Series C		4.75%		(a)		7,699,667
959,138		Qwest Corp.		6.50%		09/01/56		12,775,718

See Notes to Financial Statements

Page 11

First Trust Preferred Securities and Income ETF (FPE)

Portfolio of Investments (Continued)

April 30, 2023 (Unaudited)

Shares		Description		Stated Rate		Stated Maturity		Value
$25 PAR PREFERRED SECURITIES (Continued)
		Diversified Telecommunication Services (Continued)
1,048,347		Qwest Corp.		6.75%		06/15/57		$14,551,057
								36,883,101
		Electric Utilities – 1.1%
14,755		BIP Bermuda Holdings I Ltd.		5.13%		(a)		253,786
891,011		Brookfield BRP Holdings Canada, Inc.		4.63%		(a)		14,363,097
641,027		Brookfield Infrastructure Finance ULC		5.00%		05/24/81		11,064,126
133,530		SCE Trust III, Series H (b)		5.75%		(a)		2,857,542
449,933		SCE Trust IV, Series J (b)		5.38%		(a)		9,156,137
972,098		SCE Trust V, Series K (b)		5.45%		(a)		21,658,344
29,644		Southern (The) Co., Series 2020		4.95%		01/30/80		684,480
35,379		Southern (The) Co., Series C		4.20%		10/15/60		717,132
								60,754,644
		Financial Services – 1.5%
529,821		Apollo Asset Management, Inc., Series B		6.38%		(a)		13,415,068
1,271,099		Equitable Holdings, Inc., Series A		5.25%		(a)		27,290,495
1,595,143		Jackson Financial, Inc. (b)		8.00%		(a)		39,766,915
								80,472,478
		Food Products – 0.7%
236,637		CHS, Inc., Series 2 (b)		7.10%		(a)		5,868,598
1,328,988		CHS, Inc., Series 3 (b)		6.75%		(a)		33,331,019
								39,199,617
		Gas Utilities – 0.3%
1,061,567		South Jersey Industries, Inc.		5.63%		09/16/79		15,482,954
331		Spire, Inc., Series A		5.90%		(a)		8,444
								15,491,398
		Independent Power & Renewable Electricity Producers – 0.2%
671,606		Brookfield Renewable Partners L.P., Series 17		5.25%		(a)		12,760,514
		Insurance – 7.6%
2,086,912		Aegon Funding Co., LLC		5.10%		12/15/49		46,392,054
3,173		Allstate (The) Corp., 3 Mo. LIBOR + 3.17% (c)		8.47%		01/15/53		80,753
18,058		Allstate (The) Corp., Series H		5.10%		(a)		430,683
1,838,148		American Equity Investment Life Holding Co., Series A (b)		5.95%		(a)		42,387,693
930,693		American Equity Investment Life Holding Co., Series B (b)		6.63%		(a)		22,224,949
312,756		AmTrust Financial Services, Inc.		7.25%		06/15/55		5,298,087
363,925		AmTrust Financial Services, Inc.		7.50%		09/15/55		5,862,832
24,750		Arch Capital Group Ltd., Series F		5.45%		(a)		574,447
536,629		Arch Capital Group Ltd., Series G		4.55%		(a)		10,292,544
120,086		Argo Group International Holdings Ltd. (b)		7.00%		(a)		2,878,461
308,062		Aspen Insurance Holdings Ltd.		5.63%		(a)		6,315,271
1,711,649		Aspen Insurance Holdings Ltd. (d)		5.63%		(a)		35,105,921
548,288		Aspen Insurance Holdings Ltd. (b)		5.95%		(a)		13,224,706
579,255		Assurant, Inc.		5.25%		01/15/61		12,320,754
913,257		Athene Holding Ltd., Series A (b)		6.35%		(a)		19,808,544
63,751		Athene Holding Ltd., Series B		5.63%		(a)		1,279,483
17,356		Athene Holding Ltd., Series C (b)		6.38%		(a)		391,378
116,860		Athene Holding Ltd., Series D		4.88%		(a)		1,952,731
1,574,033		Athene Holding Ltd., Series E (b)		7.75%		(a)		38,910,096
433,529		Axis Capital Holdings Ltd., Series E		5.50%		(a)		9,845,444
754,186		CNO Financial Group, Inc.		5.13%		11/25/60		11,908,597

Page 12

See Notes to Financial Statements

First Trust Preferred Securities and Income ETF (FPE)

Portfolio of Investments (Continued)

April 30, 2023 (Unaudited)

Shares		Description		Stated Rate		Stated Maturity		Value
$25 PAR PREFERRED SECURITIES (Continued)
		Insurance (Continued)
1,262,506		Delphi Financial Group, Inc., 3 Mo. LIBOR + 3.19% (c)		8.05%		05/15/37		$28,090,758
367,029		Enstar Group Ltd., Series D (b)		7.00%		(a)		8,404,964
372,530		Globe Life, Inc.		4.25%		06/15/61		7,197,280
1,200,894		Lincoln National Corp., Series D		9.00%		(a)		31,667,575
221,423		Phoenix Cos. (The), Inc.		7.45%		01/15/32		3,908,116
763,887		Prudential Financial, Inc.		5.95%		09/01/62		19,555,507
2		Reinsurance Group of America, Inc. (b)		7.13%		10/15/52		52
105,253		RenaissanceRe Holdings Ltd., Series F		5.75%		(a)		2,542,912
1,061,951		RenaissanceRe Holdings Ltd., Series G		4.20%		(a)		19,465,562
21,531		Selective Insurance Group, Inc., Series B		4.60%		(a)		373,563
280,958		W.R. Berkley Corp.		5.10%		12/30/59		6,321,555
								415,013,272
		Mortgage Real Estate Investment Trusts – 0.6%
3,349		AGNC Investment Corp., Series C, 3 Mo. LIBOR + 5.11% (c)		10.41%		(a)		83,022
300,285		AGNC Investment Corp., Series D (b)		6.88%		(a)		6,287,968
136,881		AGNC Investment Corp., Series E (b)		6.50%		(a)		2,949,785
661,920		AGNC Investment Corp., Series F (b)		6.13%		(a)		13,523,026
52,416		Annaly Capital Management, Inc., Series F, 3 Mo. LIBOR + 4.99% (c)		10.16%		(a)		1,307,255
276,583		Annaly Capital Management, Inc., Series I (b)		6.75%		(a)		6,615,865
								30,766,921
		Multi-Utilities – 1.2%
350,119		Algonquin Power & Utilities Corp. (b)		6.88%		10/17/78		8,108,756
729,192		Algonquin Power & Utilities Corp., Series 19-A (b)		6.20%		07/01/79		16,683,913
639,721		Brookfield Infrastructure Partners L.P., Series 13		5.13%		(a)		11,387,034
61,546		Brookfield Infrastructure Partners L.P., Series 14		5.00%		(a)		1,104,135
173,128		CMS Energy Corp.		5.88%		10/15/78		4,305,693
5,502		CMS Energy Corp.		5.88%		03/01/79		136,615
209,707		CMS Energy Corp., Series C		4.20%		(a)		4,114,451
329,174		DTE Energy Co., Series E		5.25%		12/01/77		7,857,384
574,952		Sempra Energy		5.75%		07/01/79		14,166,817
								67,864,798
		Office REITs – 0.2%
1,080,167		Hudson Pacific Properties, Inc., Series C		4.75%		(a)		10,045,553
		Oil, Gas & Consumable Fuels – 1.3%
72,481		Energy Transfer L.P., Series C (b)		7.38%		(a)		1,733,746
2,111,571		Energy Transfer L.P., Series E (b)		7.60%		(a)		48,819,522
809,860		NuStar Energy L.P., Series A, 3 Mo. LIBOR + 6.77% (c)		12.10%		(a)		20,060,232
1,397		NuStar Logistics L.P., 3 Mo. LIBOR + 6.73% (c)		11.53%		01/15/43		35,679
								70,649,179
		Real Estate Management & Development – 1.4%
1,595,793		Brookfield Property Partners L.P., Series A		5.75%		(a)		19,947,412
165,257		Brookfield Property Partners L.P., Series A-1		6.50%		(a)		2,506,949
1,311,368		Brookfield Property Partners L.P., Series A2		6.38%		(a)		18,201,788
1,542,214		Brookfield Property Preferred L.P.		6.25%		07/26/81		23,164,054
677		DigitalBridge Group, Inc., Series H		7.13%		(a)		14,041
464,411		DigitalBridge Group, Inc., Series I		7.15%		(a)		9,520,425
41,320		DigitalBridge Group, Inc., Series J		7.13%		(a)		852,432
								74,207,101

See Notes to Financial Statements

Page 13

First Trust Preferred Securities and Income ETF (FPE)

Portfolio of Investments (Continued)

April 30, 2023 (Unaudited)

Shares		Description		Stated Rate		Stated Maturity		Value
$25 PAR PREFERRED SECURITIES (Continued)
		Specialized REITs – 0.0%
333		Digital Realty Trust, Inc., Series L		5.20%		(a)		$7,419
957		National Storage Affiliates Trust, Series A		6.00%		(a)		23,303
								30,722
		Trading Companies & Distributors – 0.2%
545,021		Air Lease Corp., Series A (b)		6.15%		(a)		11,930,509
9,799		WESCO International, Inc., Series A (b)		10.63%		(a)		266,533
								12,197,042
		Wireless Telecommunication Services – 0.4%
259,030		United States Cellular Corp.		6.25%		09/01/69		4,349,114
267,143		United States Cellular Corp.		5.50%		03/01/70		4,041,873
944,499		United States Cellular Corp.		5.50%		06/01/70		14,403,610
								22,794,597
		Total $25 Par Preferred Securities						1,257,796,182
		(Cost $1,493,260,399)
$100 PAR PREFERRED SECURITIES – 0.2%
		Banks – 0.2%
49,330		CoBank ACB, Series H (b)		6.20%		(a)		4,729,514
85,015		Farm Credit Bank of Texas (b) (e)		6.75%		(a)		8,320,843
								13,050,357
		Food Products – 0.0%
700		Dairy Farmers of America, Inc. (e)		7.88%		(a)		64,750
		Total $100 Par Preferred Securities						13,115,107
		(Cost $14,076,640)
$1,000 PAR PREFERRED SECURITIES – 3.5%
		Banks – 3.4%
63,260		Bank of America Corp., Series L		7.25%		(a)		74,895,412
94,460		Wells Fargo & Co., Series L		7.50%		(a)		110,332,114
								185,227,526
		Financial Services – 0.1%
7,900		Compeer Financial ACA (b) (e)		6.75%		(a)		7,860,628
		Total $1,000 Par Preferred Securities						193,088,154
		(Cost $221,434,825)
Par Amount		Description		Stated Rate		Stated Maturity		Value
CAPITAL PREFERRED SECURITIES – 69.3%
		Banks – 32.2%
$32,549,000		Australia & New Zealand Banking Group Ltd. (b) (e) (f)		6.75%		(a)		31,432,997
35,200,000		Banco Bilbao Vizcaya Argentaria S.A., Series 9 (b) (f)		6.50%		(a)		32,187,935
11,250,000		Banco Mercantil del Norte S.A. (b) (e) (f)		7.50%		(a)		9,937,688
15,700,000		Banco Mercantil del Norte S.A. (b) (e) (f)		7.63%		(a)		14,302,707
21,630,000		Banco Mercantil del Norte S.A. (b) (e) (f)		8.38%		(a)		20,478,202
35,600,000		Banco Santander S.A. (b) (f)		4.75%		(a)		27,796,480
40,200,000		Banco Santander S.A. (b) (f) (g)		7.50%		(a)		38,810,487
14,075,000		Bank of America Corp., Series RR (b)		4.38%		(a)		12,034,125
40,283,000		Bank of America Corp., Series TT (b)		6.13%		(a)		39,157,586
6,350,000		Bank of America Corp., Series X (b)		6.25%		(a)		6,223,635
13,800,000		Bank of Nova Scotia (The) (b)		4.90%		(a)		12,660,706

Page 14

See Notes to Financial Statements

First Trust Preferred Securities and Income ETF (FPE)

Portfolio of Investments (Continued)

April 30, 2023 (Unaudited)

Par Amount		Description		Stated Rate		Stated Maturity		Value
CAPITAL PREFERRED SECURITIES (Continued)
		Banks (Continued)
$33,764,000		Bank of Nova Scotia (The) (b)		8.63%		10/27/82		$34,643,618
3,000,000		Bank of Nova Scotia (The), Series 2 (b)		3.63%		10/27/81		2,150,960
10,575,000		Barclays PLC (b) (f)		4.38%		(a)		7,031,549
5,760,000		Barclays PLC (b) (f)		7.75%		(a)		5,434,675
100,800,000		Barclays PLC (b) (f)		8.00%		(a)		93,229,920
126,420,000		Barclays PLC (b) (f)		8.00%		(a)		111,047,328
11,600,000		BBVA Bancomer S.A. (b) (e) (f)		5.88%		09/13/34		10,507,396
11,850,000		BNP Paribas S.A. (b) (e) (f)		4.63%		(a)		9,330,690
44,450,000		BNP Paribas S.A. (b) (e) (f)		4.63%		(a)		31,643,955
27,895,000		BNP Paribas S.A. (b) (e) (f)		7.75%		(a)		26,709,462
8,300,000		BNP Paribas S.A. (b) (e) (f)		9.25%		(a)		8,556,470
37,946,000		Citigroup, Inc. (b)		3.88%		(a)		32,491,262
8,000,000		Citigroup, Inc. (b)		7.38%		(a)		7,920,000
16,365,000		Citigroup, Inc., Series M (b)		6.30%		(a)		15,498,473
16,200,000		Citigroup, Inc., Series P (b)		5.95%		(a)		15,208,037
17,355,000		Citigroup, Inc., Series T (b)		6.25%		(a)		17,064,651
19,803,000		Citigroup, Inc., Series W (b)		4.00%		(a)		17,299,901
7,860,000		Citigroup, Inc., Series Y (b)		4.15%		(a)		6,484,500
5,436,000		Citizens Financial Group, Inc., Series F (b)		5.65%		(a)		4,934,264
8,653,000		Citizens Financial Group, Inc., Series G (b)		4.00%		(a)		6,749,340
18,474,000		CoBank ACB, Series I (b)		6.25%		(a)		17,435,761
35,655,000		CoBank ACB, Series K (b)		6.45%		(a)		33,691,202
11,200,000		Commerzbank AG (b) (f) (g)		7.00%		(a)		9,885,400
11,810,000		Credit Agricole S.A. (b) (e) (f)		6.88%		(a)		11,361,811
59,405,000		Credit Agricole S.A. (b) (e) (f)		8.13%		(a)		59,131,796
26,200,000		Danske Bank A.S. (b) (f) (g)		4.38%		(a)		22,420,571
23,210,000		Danske Bank A.S. (b) (f) (g)		7.00%		(a)		21,747,886
7,650,000		Farm Credit Bank of Texas, Series 3 (b) (e)		6.20%		(a)		6,789,375
20,300,000		Farm Credit Bank of Texas, Series 4 (b) (e)		5.70%		(a)		17,864,000
18,985,000		Fifth Third Bancorp, Series L (b)		4.50%		(a)		16,861,574
12,800,000		HSBC Holdings PLC (b) (f)		4.60%		(a)		9,704,000
56,700,000		HSBC Holdings PLC (b) (f)		8.00%		(a)		56,416,500
3,250,000		Huntington Bancshares, Inc., Series G (b)		4.45%		(a)		2,697,175
17,836,000		ING Groep N.V. (b) (f)		5.75%		(a)		15,547,462
4,579,000		ING Groep N.V. (b) (f)		6.50%		(a)		4,237,656
6,800,000		ING Groep N.V. (b) (f) (g)		7.50%		(a)		6,217,750
73,545,000		Intesa Sanpaolo S.p.A. (b) (e) (f)		7.70%		(a)		67,100,603
4,800,000		JPMorgan Chase & Co., Series S (b)		6.75%		(a)		4,797,240
21,145,000		Lloyds Banking Group PLC (b) (f)		6.75%		(a)		19,491,655
39,931,668		Lloyds Banking Group PLC (b) (f)		7.50%		(a)		38,457,790
42,017,000		Lloyds Banking Group PLC (b) (f)		7.50%		(a)		39,940,940
50,095,000		Lloyds Banking Group PLC (b) (f)		8.00%		(a)		45,937,115
3,083,602		M&T Bank Corp. (b)		3.50%		(a)		2,035,177
2,195,000		M&T Bank Corp., Series F (b)		5.13%		(a)		1,708,201
7,932,000		M&T Bank Corp., Series G (b)		5.00%		(a)		6,433,172
7,700,000		NatWest Group PLC (b) (f)		6.00%		(a)		7,237,230
24,825,000		NatWest Group PLC (b) (f)		8.00%		(a)		24,605,671
8,975,000		PNC Financial Services Group (The), Inc., Series U (b)		6.00%		(a)		8,346,750
40,615,000		PNC Financial Services Group (The), Inc., Series V (b)		6.20%		(a)		38,348,990
49,832,000		PNC Financial Services Group (The), Inc., Series W (b)		6.25%		(a)		45,795,608
79,050,000		Societe Generale S.A. (b) (e) (f)		5.38%		(a)		55,532,625
33,820,000		Societe Generale S.A. (b) (e) (f)		9.38%		(a)		32,193,258
61,460,000		Standard Chartered PLC (b) (e) (f)		4.30%		(a)		43,489,096
52,790,000		Standard Chartered PLC (b) (e) (f)		7.75%		(a)		51,263,841
5,695,000		Texas Capital Bancshares, Inc. (b)		4.00%		05/06/31		4,606,162

See Notes to Financial Statements

Page 15

First Trust Preferred Securities and Income ETF (FPE)

Portfolio of Investments (Continued)

April 30, 2023 (Unaudited)

Par Amount		Description		Stated Rate		Stated Maturity		Value
CAPITAL PREFERRED SECURITIES (Continued)
		Banks (Continued)
$56,130,000		Toronto-Dominion Bank (The) (b)		8.13%		10/31/82		$57,310,414
5,000,000		Truist Financial Corp., Series N (b)		4.80%		(a)		4,356,250
3,500,000		Truist Financial Corp., Series P (b)		4.95%		(a)		3,297,350
74,380,000		UniCredit S.p.A. (b) (f) (g)		8.00%		(a)		72,217,997
4,400,000		UniCredit S.p.A. (b) (e)		7.30%		04/02/34		4,214,753
13,500,000		UniCredit S.p.A. (b) (e)		5.46%		06/30/35		11,516,289
55,777,000		Wells Fargo & Co., Series BB (b)		3.90%		(a)		48,571,588
								1,759,774,683
		Capital Markets – 3.9%
40,096,000		Apollo Management Holdings L.P. (b) (e)		4.95%		01/14/50		33,915,960
25,033,000		Charles Schwab (The) Corp., Series G (b)		5.38%		(a)		23,953,452
7,668,000		Charles Schwab (The) Corp., Series H (b)		4.00%		(a)		5,904,360
57,820,000		Charles Schwab (The) Corp., Series I (b)		4.00%		(a)		48,569,956
15,800,000		Charles Schwab (The) Corp., Series K (b)		5.00%		(a)		13,667,000
81,425,000		Credit Suisse Group AG (b) (f) (h) (i)		5.25%		(a)		0
1,200,000		Credit Suisse Group AG (b) (f) (h) (i)		6.25%		(a)		0
51,775,000		Credit Suisse Group AG (b) (f) (h) (i)		6.38%		(a)		0
76,900,000		Credit Suisse Group AG (b) (f) (h) (i)		7.50%		(a)		0
27,200,000		Credit Suisse Group AG (b) (f) (h) (i)		9.75%		(a)		0
63,400,000		Deutsche Bank AG, Series 2020 (b) (f)		6.00%		(a)		47,543,660
25,475,000		EFG International AG (b) (f) (g)		5.50%		(a)		18,357,922
24,875,000		Goldman Sachs Group (The), Inc., Series R (b)		4.95%		(a)		23,319,372
								215,231,682
		Construction Materials – 0.5%
27,550,000		Cemex SAB de CV (b) (e)		9.13%		(a)		27,391,620
		Consumer Finance – 1.2%
31,492,000		Ally Financial, Inc., Series B (b)		4.70%		(a)		23,323,763
28,779,000		American Express Co. (b)		3.55%		(a)		24,251,464
23,077,000		Capital One Financial Corp., Series M (b)		3.95%		(a)		17,080,169
								64,655,396
		Electric Utilities – 1.3%
3,000,000		American Electric Power Co., Inc. (b)		3.88%		02/15/62		2,415,970
17,965,000		Edison International, Series B (b)		5.00%		(a)		15,401,670
5,058,000		Emera, Inc., Series 16-A (b)		6.75%		06/15/76		4,836,271
5,000,000		NextEra Energy Capital Holdings, Inc. (b)		5.65%		05/01/79		4,540,039
16,409,000		Southern (The) Co., Series 21-A (b)		3.75%		09/15/51		14,004,697
30,516,000		Southern California Edison Co., Series E, 3 Mo. LIBOR + 4.20% (c)		9.01%		(a)		30,210,840
								71,409,487
		Energy Equipment & Services – 1.0%
27,600,000		Transcanada Trust (b)		5.50%		09/15/79		23,488,919
34,700,000		Transcanada Trust (b)		5.60%		03/07/82		29,383,600
								52,872,519
		Financial Services – 3.4%
64,250,000		American AgCredit Corp. (b) (e)		5.25%		(a)		56,138,439
40,400,000		Ares Finance Co. III LLC (b) (e)		4.13%		06/30/51		30,735,063
28,250,000		Capital Farm Credit ACA, Series 1 (b) (e)		5.00%		(a)		25,495,625
13,950,000		Compeer Financial ACA (b) (e)