FIRST TRUST
First Trust Exchange-Traded Fund II
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Book 1
First Trust STOXX(R) European Select Dividend Index Fund (FDD)
First Trust FTSE EPRA/NAREIT Developed Markets Real Estate Index Fund (FFR)
First Trust Dow Jones Global Select Dividend Index Fund (FGD)
First Trust Global Wind Energy ETF (FAN)
First Trust Global Engineering and Construction ETF (FLM)
First Trust NASDAQ(R) Clean Edge(R) Smart Grid Infrastructure Index Fund (GRID)
First Trust Indxx Global Natural Resources Income ETF (FTRI)
First Trust Indxx Global Agriculture ETF (FTAG)
First Trust BICK Index Fund (BICK) First Trust Indxx NextG ETF (NXTG)
First Trust S-Network Future Vehicles & Technology ETF (CARZ) (formerly First
Trust NASDAQ Global Auto Index Fund)
First Trust Cloud Computing ETF (SKYY)
First Trust International Equity Opportunities ETF (FPXI)
First Trust Nasdaq Cybersecurity ETF (CIBR)
First Trust IPOX(R) Europe Equity Opportunities ETF (FPXE)
First Trust Dow Jones International Internet ETF (FDNI)
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Semi-Annual Report
March 31, 2022
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TABLE OF CONTENTS
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FIRST TRUST EXCHANGE-TRADED FUND II
SEMI-ANNUAL REPORT
MARCH 31, 2022
Shareholder Letter....................................................................... 2
Market Overview.......................................................................... 3
Fund Performance Overview
First Trust STOXX(R) European Select Dividend Index Fund (FDD)..................... 4
First Trust FTSE EPRA/NAREIT Developed Markets Real Estate Index Fund (FFR)........ 6
First Trust Dow Jones Global Select Dividend Index Fund (FGD)...................... 8
First Trust Global Wind Energy ETF (FAN)........................................... 10
First Trust Global Engineering and Construction ETF (FLM).......................... 12
First Trust NASDAQ(R) Clean Edge(R) Smart Grid Infrastructure Index Fund (GRID).... 14
First Trust Indxx Global Natural Resources Income ETF (FTRI)....................... 16
First Trust Indxx Global Agriculture ETF (FTAG).................................... 18
First Trust BICK Index Fund (BICK)................................................. 20
First Trust Indxx NextG ETF (NXTG)................................................. 22
First Trust S-Network Future Vehicles & Technology ETF (CARZ)...................... 24
First Trust Cloud Computing ETF (SKYY)............................................. 26
First Trust International Equity Opportunities ETF (FPXI).......................... 28
First Trust Nasdaq Cybersecurity ETF (CIBR)........................................ 30
First Trust IPOX(R) Europe Equity Opportunities ETF (FPXE)......................... 32
First Trust Dow Jones International Internet ETF (FDNI)............................ 34
Notes to Fund Performance Overview....................................................... 36
Understanding Your Fund Expenses......................................................... 37
Portfolio of Investments
First Trust STOXX(R) European Select Dividend Index Fund (FDD)..................... 39
First Trust FTSE EPRA/NAREIT Developed Markets Real Estate Index Fund (FFR)........ 41
First Trust Dow Jones Global Select Dividend Index Fund (FGD)...................... 48
First Trust Global Wind Energy ETF (FAN)........................................... 51
First Trust Global Engineering and Construction ETF (FLM).......................... 55
First Trust NASDAQ(R) Clean Edge(R) Smart Grid Infrastructure Index Fund (GRID).... 58
First Trust Indxx Global Natural Resources Income ETF (FTRI)....................... 62
First Trust Indxx Global Agriculture ETF (FTAG).................................... 65
First Trust BICK Index Fund (BICK)................................................. 67
First Trust Indxx NextG ETF (NXTG)................................................. 71
First Trust S-Network Future Vehicles & Technology ETF (CARZ)...................... 75
First Trust Cloud Computing ETF (SKYY)............................................. 79
First Trust International Equity Opportunities ETF (FPXI).......................... 82
First Trust Nasdaq Cybersecurity ETF (CIBR)........................................ 86
First Trust IPOX(R) Europe Equity Opportunities ETF (FPXE)......................... 89
First Trust Dow Jones International Internet ETF (FDNI)............................ 93
Statements of Assets and Liabilities..................................................... 96
Statements of Operations................................................................. 100
Statements of Changes in Net Assets...................................................... 104
Financial Highlights..................................................................... 111
Notes to Financial Statements............................................................ 119
Additional Information................................................................... 131
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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
any series of First Trust Exchange-Traded Fund II (the "Trust") described in
this report (each such series is referred to as a "Fund" and collectively, as
the "Funds") to be materially different from any future results, performance or
achievements expressed or implied by the forward-looking statements. When
evaluating the information included in this report, you are cautioned not to
place undue reliance on these forward-looking statements, which reflect the
judgment of the Advisor and 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 any Fund described in this report will achieve its
investment objectives. 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 webpage at www.ftportfolios.com.
HOW TO READ THIS REPORT
This report contains information that may help you evaluate your investment. It
includes details about each Fund and presents data and analysis that provide
insight into each Fund's performance and investment approach.
By reading the market overview by Robert F. Carey, Chief Market Strategist of
the Advisor, you may obtain an understanding of how the market environment
affected the performance of each Fund. 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 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 its prospectus, statement of additional information, and
other Fund regulatory filings.
Page 1
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SHAREHOLDER LETTER
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FIRST TRUST EXCHANGE-TRADED FUND II
SEMI-ANNUAL LETTER FROM THE CHAIRMAN AND CEO
MARCH 31, 2022
Dear Shareholders,
First Trust is pleased to provide you with the semi-annual report for certain
series of the First Trust Exchange-Traded Fund II (the "Funds"), which contains
detailed information about the Funds for the six months ended March 31, 2022.
How are investors expected to make sense of the markets in a climate like the
one we are in today? For what it is worth, the famous adage that "perception is
reality" is a complete misnomer, in my opinion. Perception is a perspective of
reality. Reality is the truth. When it comes to investing one's capital, it can
be difficult to ascertain the truth, especially in the age of the internet and
the 24/7 news cycle. There is so much information pumped out daily pertaining to
the securities markets that it can be counterproductive if you consume too much
of it, particularly if you do not have a discerning eye. To be frank, a lot of
financial information adds up to nothing more than noise, or is an extension of
someone's agenda, and we at First Trust encourage investors to ignore it as best
they can. That is why we believe that investors should lean on those market
principles that are tried and true. That is how you make sense of the markets,
in my opinion.
There is essentially nothing major transpiring around the globe today that we
have not encountered to some degree before, including war. Even the coronavirus
("COVID-19") pandemic, which arrived in the U.S. in the first quarter of 2020,
was somewhat matched in scope by the 1918 flu (Spanish flu) pandemic.
Approximately 987,000 lives have been lost so far in the U.S. from the COVID-19
pandemic, compared to 675,000 spanning the 1918 flu pandemic, according to data
from the Centers for Disease Control and Prevention. While we have had more
deaths from the COVID-19 virus, the speed in which no fewer than three effective
vaccines were brought to bear to combat this virus was astounding. U.S.
ingenuity is what keeps this country ascending, in my opinion. I believe it to
be one of the main reasons why the investment philosophy "time in the market"
has been such a tried and true principle of the wealth building process. Endure
the ups and downs of the stock market and you can persevere over time. In the
short-run, it is anybody's guess, and guessing should not play any role in
developing a financial plan. History is on your side. Keep in mind, the S&P
500(R) Index has never failed to fully recover any losses sustained in a
downturn and it stood at its all-time closing high on January 3, 2022.
The stock and bond markets have been more volatile of late and may stay that
way, at least over the near-term. Based on some thorough guidance from the
Federal Reserve (the "Fed") with respect to its bias towards raising short-term
interest rates more aggressively than once thought to fight inflation, there is
a good chance that the days of artificially low interest rates are finally
coming to an end. Bond yields have spiked recently to reflect the surge in
inflation, which stood at 8.5% on a trailing 12-month basis in March 2022, and
the anticipated rate hikes from the Fed. In other words, interest rates and bond
yields are in the process of normalizing. What is normal? Well, the Federal
Funds target rate (upper bound), which stood at 0.50% at the close on April 21,
2022, averaged 2.48% for the 30-year period ended April 21, 2022, according to
Bloomberg. It reached as high as 6.50% in 2000. The yield on the 10-Year
Treasury Note ("T-Note"), which stood at 2.91% at the close on April 21, 2022,
averaged 3.98% over that same 30-year period. The 10-Year T-Note reached as high
as 8.03% in 1994. All eyes will likely be on the Fed for the remainder of this
year. The economy is still growing, albeit at a slower clip, and it looks like
more Americans are heading back to work. Keep an eye on interest rates, bond
yields and inflation in the months ahead. We would prefer slow and steady as
they rise as opposed to sharp moves higher. As always, stay the course!
Thank you for giving First Trust the opportunity to play a role in your
financial future. We value our relationship with you and will report on the
Funds again in six months.
Sincerely,
/s/ James A. Bowen
James A. Bowen
Chairman of the Board of Trustees
Chief Executive Officer of First Trust Advisors L.P.
Page 2
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MARKET OVERVIEW
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FIRST TRUST EXCHANGE-TRADED FUND II
SEMI-ANNUAL REPORT
MARCH 31, 2022
ROBERT F. CAREY, CFA
SENIOR VICE PRESIDENT AND CHIEF MARKET STRATEGIST
FIRST TRUST ADVISORS L.P.
Mr. Carey is responsible for the overall management of research and analysis of
the First Trust product line. Mr. Carey has more than 30 years of experience as
an Equity and Fixed-Income Analyst and is a recipient of the Chartered Financial
Analyst ("CFA") designation. He is a graduate of the University of Illinois at
Champaign-Urbana with a B.S. in Physics. He is also a member of the Investment
Analysts Society of Chicago and the CFA Institute. Mr. Carey has appeared as a
guest on such programs as Bloomberg TV, CNBC, and WBBM Radio, and has been
quoted by several publications, including The Wall Street Journal, The Wall
Street Reporter, Bloomberg News Service and Registered Rep.
STATE OF THE GLOBAL ECONOMY
The latest global growth forecast from the International Monetary Fund ("IMF")
released in April 2022 sees real gross domestic product growth rising by 3.6%
worldwide in 2022, down from its 4.4% projection in January 2022. The IMF is
calling for a 3.7% growth rate for the U.S., down from its January estimate of
4.0%. Emerging Market and Developing Economies are expected to grow by 3.8% this
year, down markedly from the IMF's 4.8% estimate in January. While global growth
is expected to slow some in 2022, there does not appear to be a significant
threat of recession in the near-term. The IMF notes that the reduction in its
economic growth targets is largely a byproduct of Russia's decision to invade
Ukraine back on February 24, 2022.
Robust inflation and the war between Russia and Ukraine have been the dominant
stories of late, in our opinion. Inflation, as measured by the Consumer Price
Index, stood at 8.5% on a trailing 12-month basis at the end of March 2022,
according to the U.S. Bureau of Labor Statistics. The last time inflation in the
U.S. was this high was in 1982. Consumer prices are up significantly across the
board, including groceries, gasoline, automobiles, homes, and apartment rents.
It has been reported that the war between Russia and Ukraine could lead to
global food shortages. It has already helped drive energy prices higher. These
two events are worth monitoring closely. If one or both end up being protracted,
then we would anticipate higher levels of volatility in the markets moving
forward. Perhaps the biggest beneficiary of the spike in inflation is commodity
prices, which surged 27.03% in the first quarter of 2022, as measured by the
Refinitiv/CC CRB Excess Return Index.
PERFORMANCE OF GLOBAL STOCKS AND BONDS
The major U.S. stock indices delivered mixed results over the past six months.
The S&P 500(R), S&P MidCap 400(R) and S&P SmallCap 600(R) Indices posted total
returns of 5.92%, 2.73% and -0.30%, respectively, for the six-month period ended
March 31, 2022. Due to the ongoing economic headwinds stemming from the
coronavirus pandemic, rising inflation, and, more recently, the war between
Russia and Ukraine, large-capitalization ("cap") stocks outperformed their mid-
and small-cap counterparts over the period, an indication that investors were
somewhat concerned about the level of risk they were willing to assume, in our
opinion. Ten of the 11 major sectors that comprise the S&P 500(R) Index (the
"Index") were up on a total return basis. The top-performer was Energy, up
50.11%, while the worst showing came from Communication Services, down 11.93%.
A Bloomberg survey of 24 equity strategists found that their average 2022
year-end price target for the Index was 4,868 as of April 2022, according to its
own release. The highest and lowest estimates were 5,330 and 4,400,
respectively. Brian Wesbury, Chief Economist at First Trust, announced in May
2022 that he is looking for a year-end price target of 4,900, a downward
revision from his 5,250 projection at the close of 2021. The Index closed
trading on March 31, 2022, at 4,530.41. The outlook for corporate earnings
remains optimistic. Bloomberg's consensus year-over-year earnings growth rate
estimates for the Index for 2022 and 2023 were 10.25% and 9.44%, respectively,
as of April 1, 2022.
The broader foreign stock indices lagged the performance of the major U.S. stock
indices. Over the past six months, the MSCI World ex USA and MSCI Emerging
Markets equity indices posted total returns of -1.82% (USD) and -8.20% (USD),
respectively, according to Bloomberg. The major foreign bond indices were also
down over the same period. The Bloomberg Global Aggregate Index of higher
quality debt posted a total return of -6.79% (USD), while the Bloomberg EM Hard
Currency Aggregate Index of emerging markets debt declined by 10.58% (USD),
according to Bloomberg. The U.S. dollar rose by 4.33% over the past six months
against a basket of major currencies, as measured by the U.S. Dollar Index
(DXY). The sizable jump in the dollar provided a drag on the performance of both
foreign stock and bond indices, in our opinion.
In the U.S. bond market, the results were also disappointing. The top-performing
major debt group we track was speculative-grade corporate bonds. The Bloomberg
U.S. Corporate High Yield Index posted a total return of -4.16% for the
six-month period ended March 31, 2022. The worst-performing U.S. debt group that
we track was long-term municipal bonds. The Bloomberg Municipal Bond: Long Bond
(22+ years) posted a total return of -7.21%. The yield on the benchmark 10-Year
Treasury Note ("T-Note") rose by 85 basis points in the period to close at 2.34%
on March 31, 2022, according to Bloomberg. For comparative purposes, the average
yield on the 10-Year T-Note was 2.03% for the 10-year period ended March 31,
2022.
Page 3
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FUND PERFORMANCE OVERVIEW (UNAUDITED)
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FIRST TRUST STOXX(R) EUROPEAN SELECT DIVIDEND INDEX FUND (FDD)
First Trust STOXX(R) European Select Dividend Index Fund (the "Fund") seeks
investment results that correspond generally to the price and yield (before the
Fund's fees and expenses) of an equity index called the STOXX(R) Europe Select
Dividend 30 Index (the "STOXX Index"). The shares of the Fund are listed and
trade on the NYSE Arca, Inc. under the ticker symbol "FDD." The Fund will
normally invest at least 90% of its net assets (including investment borrowings)
in the common stocks and depositary receipts that comprise the STOXX Index.
The STOXX Index consists of 30 high dividend-yielding securities selected from
the STOXX(R) Europe 600 Index, including secondary lines of those companies
(where there are multiple lines of equity capital in a company), which covers 18
European countries: Austria, Belgium, Czech Republic, Denmark, Finland, France,
Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Norway, Portugal,
Spain, Sweden, Switzerland and the United Kingdom. In addition, a company must
have a non-negative five-year dividend-per-share growth rate and a
dividend-to-earnings ratio of 60% or less. The STOXX Index is compiled and
maintained by STOXX Limited.
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PERFORMANCE
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AVERAGE ANNUAL TOTAL RETURNS CUMULATIVE TOTAL RETURNS
6 Months 1 Year 5 Years 10 Years Inception 5 Years 10 Years Inception
Ended Ended Ended Ended (8/27/07) Ended Ended (8/27/07)
3/31/22 3/31/22 3/31/22 3/31/22 to 3/31/22 3/31/22 3/31/22 to 3/31/22
FUND PERFORMANCE
NAV -2.98% -1.46% 6.03% 5.20% -1.07% 34.01% 66.01% -14.48%
Market Price -3.27% -1.83% 5.90% 5.08% -1.09% 33.18% 64.09% -14.78%
INDEX PERFORMANCE
STOXX(R) Europe Select
Dividend 30 Index -2.40% -0.60% 6.64% 5.69% -0.55% 37.88% 73.88% -7.78%
STOXX(R) Europe 600 Index -2.96% 2.71% 7.13% 6.59% 2.82% 41.10% 89.32% 50.06%
MSCI Europe Index -2.12% 3.51% 6.92% 6.27% 2.57% 39.74% 83.76% 44.75%
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(See Notes to Fund Performance Overview on page 36.)
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The STOXX(R) Europe Select Dividend 30 Index ("STOXX Index") is the intellectual
property (including registered trademarks) of STOXX Ltd., Zug, Switzerland
("STOXX"), Deutsche Borse Group or their licensors, which is used under license.
The Fund is neither sponsored nor promoted, distributed or in any other manner
supported by STOXX Deutsche Borse Group or their licensors, research partners or
data providers and STOXX, Deutsche Borse Group and their licensors, research
partners or data providers do not give any warranty, and exclude any liability
(whether in negligence or otherwise) with respect thereto generally or
specifically in relation to any errors, omissions or interruptions in the STOXX
Index or its data.
Page 4
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FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED)
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FIRST TRUST STOXX(R) EUROPEAN SELECT DIVIDEND INDEX FUND (FDD) (CONTINUED)
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% OF TOTAL
SECTOR CLASSIFICATION LONG-TERM INVESTMENTS
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Financials 39.8%
Utilities 14.8
Materials 12.1
Industrials 10.2
Communication Services 8.6
Consumer Discretionary 6.7
Real Estate 4.3
Health Care 3.5
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Total 100.0%
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% OF TOTAL
TOP TEN HOLDINGS LONG-TERM INVESTMENTS
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Rio Tinto PLC 6.9%
AP Moller - Maersk A/S, Class A 5.8
ACS Actividades de Construccion y
Servicios S.A. 4.4
Legal & General Group PLC 4.3
Credit Agricole S.A. 3.8
IG Group Holdings PLC 3.8
ASR Nederland N.V. 3.8
Electricite de France S.A. 3.6
Mercedes-Benz Group AG 3.6
GlaxoSmithKline PLC 3.5
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Total 43.5%
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PERFORMANCE OF A $10,000 INITIAL INVESTMENT
SEPTEMBER 30, 2011 - MARCH 31, 2022
First Trust STOXX(R) European STOXX(R) Europe Select STOXX(R) Europe MSCI Europe
Select Dividend Index Fund Dividend 30 Index 600 Index Index
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9/30/11 $10,000 $10,000 $10,000 $10,000
3/31/12 10,756 10,697 11,681 11,663
9/30/12 10,773 10,725 11,770 11,731
3/31/13 10,763 10,731 12,979 12,894
9/30/13 12,205 12,206 14,738 14,573
3/31/14 13,654 13,676 16,308 16,052
9/30/14 13,265 13,307 15,615 15,421
3/31/15 13,038 13,119 15,515 15,259
9/30/15 12,217 12,257 14,354 13,982
3/31/16 12,548 12,658 14,358 13,971
9/30/16 12,691 12,797 14,670 14,330
3/31/17 13,324 13,489 15,673 15,335
9/30/17 15,093 15,282 17,944 17,526
3/31/18 15,470 15,682 17,994 17,558
9/30/18 15,204 15,447 17,891 17,474
3/31/19 14,985 15,251 17,286 16,904
9/30/19 15,562 15,827 17,748 17,342
3/31/20 11,810 12,271 14,678 14,283
9/30/20 13,127 13,478 17,917 17,205
3/31/21 18,121 18,712 21,533 20,703
9/30/21 18,404 19,056 22,788 21,896
3/31/22 17,856 18,599 22,113 21,432
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.
Page 5
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FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED)
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FIRST TRUST FTSE EPRA/NAREIT DEVELOPED MARKETS REAL ESTATE INDEX FUND (FFR)
First Trust FTSE EPRA/NAREIT Developed Markets Real Estate Index Fund (the
"Fund") seeks investment results that correspond generally to the price and
yield (before the Fund's fees and expenses) of an equity index called the FTSE
EPRA/NAREIT Developed Index (the "FTSE Index"). The shares of the Fund are
listed and trade on the NYSE Arca, Inc. under the ticker symbol "FFR." The Fund
will normally invest at least 90% of its net assets (including investment
borrowings) in the common stocks and depositary receipts that comprise the FTSE
Index.
The FTSE Index is compiled and maintained by FTSE International Limited. The
FTSE Index is modified market cap weighted based on free float market
capitalization and includes the securities of listed real estate companies or
real estate investment trusts ("REITs") that are publicly traded on an official
stock exchange located in North America, Europe or Asia and provide an audited
annual report in English.
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PERFORMANCE
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AVERAGE ANNUAL TOTAL RETURNS CUMULATIVE TOTAL RETURNS
6 Months 1 Year 5 Years 10 Years Inception 5 Years 10 Years Inception
Ended Ended Ended Ended (8/27/07) Ended Ended (8/27/07)
3/31/22 3/31/22 3/31/22 3/31/22 to 3/31/22 3/31/22 3/31/22 to 3/31/22
FUND PERFORMANCE
NAV 5.56% 14.57% 6.67% 7.00% 3.60% 38.11% 96.73% 67.55%
Market Price 5.29% 14.36% 6.61% 7.00% 3.58% 37.74% 96.77% 67.18%
INDEX PERFORMANCE
FTSE EPRA/NAREIT
Developed Index 6.21% 15.37% 7.49% 7.83% 4.45% 43.52% 112.60% 88.80%
S&P Global REIT Index 8.07% 18.97% 7.10% 7.48% 4.35% 40.93% 105.76% 86.22%
MSCI World REIT Index 8.06% 20.41% 9.25% 8.61% 4.73% 55.67% 128.32% 96.38%
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(See Notes to Fund Performance Overview on page 36.)
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The Fund has been developed solely by First Trust. The Fund is not in any way
connected to or sponsored, endorsed, sold or promoted by the London Stock
Exchange Group plc and its group undertakings, including FTSE International
Limited (collectively, the "LSE Group"), European Public Real Estate Association
("EPRA"), or the National Association of Real Estate Investments Trusts
("Nareit") (and together the "Licensor Parties"). FTSE Russell is a trading name
of certain of the LSE Group companies. All rights in the FTSE Index vest in the
Licensor Parties. "FTSE(R)" and "FTSE Russell(R)" are trademarks of the relevant
LSE Group company and are used by any other LSE Group company under license.
"Nareit(R)" is a trademark of Nareit, "EPRA(R)" is a trademark of EPRA and all
are used by the LSE Group under license. The FTSE Index is calculated by or on
behalf of FTSE International Limited or its affiliate, agent or partner. The
Licensor Parties do not accept any liability whatsoever to any person arising
out of (a) the use of, reliance on or any error in the FTSE Index or (b)
investment in or operation of the Fund. The Licensor Parties make no claim,
prediction, warranty or representation either as to the results to be obtained
from the Fund or the suitability of the FTSE Index for the purpose to which it
is being put by First Trust.
Page 6
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FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED)
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FIRST TRUST FTSE EPRA/NAREIT DEVELOPED MARKETS REAL ESTATE INDEX FUND (FFR)
(CONTINUED)
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% OF TOTAL
SECTOR CLASSIFICATION LONG-TERM INVESTMENTS
-----------------------------------------------------------
Real Estate 99.9%
Health Care 0.1
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Total 100.0%
======
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% OF TOTAL
TOP TEN HOLDINGS LONG-TERM INVESTMENTS
-----------------------------------------------------------
Prologis, Inc. 6.0%
Equinix, Inc. 3.4
Public Storage 3.0
Simon Property Group, Inc. 2.2
Welltower, Inc. 2.1
Digital Realty Trust, Inc. 2.0
Realty Income Corp. 2.0
Vonovia SE 1.8
AvalonBay Communities, Inc. 1.8
Alexandria Real Estate Equities, Inc. 1.7
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Total 26.0%
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PERFORMANCE OF A $10,000 INITIAL INVESTMENT
SEPTEMBER 30, 2011 - MARCH 31, 2022
First Trust FTSE EPRA/ NAREIT Developed FTSE EPRA/NAREIT S&P Global MSCI World
Markets Real Estate Index Fund Developed Index REIT Index REIT Index
-------------------------------------- ---------------- ---------- ----------
9/30/11 $10,000 $10,000 $10,000 $10,000
3/31/12 12,146 12,121 12,098 12,055
9/30/12 13,022 13,059 12,880 12,960
3/31/13 14,620 14,697 14,397 14,185
9/30/13 14,327 14,489 13,742 13,500
3/31/14 14,770 14,998 14,561 14,191
9/30/14 15,167 15,461 15,076 14,862
3/31/15 17,007 17,406 17,135 16,760
9/30/15 15,618 16,014 15,696 15,605
3/31/16 17,095 17,627 17,605 17,632
9/30/16 17,951 18,552 18,351 18,337
3/31/17 17,299 17,955 17,665 17,681
9/30/17 18,071 18,835 18,165 18,295
3/31/18 17,908 18,699 17,622 17,949
9/30/18 18,791 19,703 18,683 18,875
3/31/19 20,322 21,395 20,077 20,929
9/30/19 21,269 22,482 21,500 22,718
3/31/20 15,471 16,428 15,383 17,411
9/30/20 17,414 18,547 17,506 20,052
3/31/21 20,850 22,334 20,928 22,857
9/30/21 22,635 24,263 23,035 25,470
3/31/22 23,894 25,770 24,894 27,523
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.
Page 7
--------------------------------------------------------------------------------
FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------
FIRST TRUST DOW JONES GLOBAL SELECT DIVIDEND INDEX FUND (FGD)
First Trust Dow Jones Global Select Dividend Index Fund (the "Fund") seeks
investment results that correspond generally to the price and yield (before the
Fund's fees and expenses) of an equity index called the Dow Jones Global Select
Dividend Index (the "Select Dividend Index"). The shares of the Fund are listed
and trade on the NYSE Arca, Inc. under the ticker symbol "FGD." The Fund will
normally invest at least 90% of its net assets (including investment borrowings)
in the common stocks and depositary receipts that comprise the Select Dividend
Index.
The Index is compiled and maintained by S&P Dow Jones Indices LLC. The Select
Dividend Index is an indicated annual dividend yield weighted index of 100
stocks selected from the developed-market portion of the Dow Jones World
Index(SM). Indicated annual dividend yield is a stock's unadjusted indicated
annual dividend (not including any special dividends) divided by its unadjusted
price.
-------------------------------------------------------------------------------------------------------------------------
PERFORMANCE
-------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS CUMULATIVE TOTAL RETURNS
6 Months 1 Year 5 Years 10 Years Inception 5 Years 10 Years Inception
Ended Ended Ended Ended (11/21/07) Ended Ended (11/21/07)
3/31/22 3/31/22 3/31/22 3/31/22 to 3/31/22 3/31/22 3/31/22 to 3/31/22
FUND PERFORMANCE
NAV 3.73% 6.51% 6.42% 6.10% 3.95% 36.49% 80.74% 74.43%
Market Price 3.78% 6.25% 6.42% 6.06% 3.95% 36.48% 80.15% 74.37%
INDEX PERFORMANCE
Dow Jones Global Select
Dividend Index 4.13% 7.13% 6.79% 6.37% 4.19% 38.90% 85.42% 80.21%
Dow Jones World Developed
Markets Index 1.19% 8.41% 12.20% 10.98% 7.25% 77.80% 183.40% 173.30%
MSCI World Index 2.21% 10.12% 12.42% 10.88% 6.97% 79.58% 180.98% 162.99%
-------------------------------------------------------------------------------------------------------------------------
(See Notes to Fund Performance Overview on page 36.)
-----------------------------
The Select Dividend Index is a product of S&P Dow Jones Indices LLC or its
affiliates ("SPDJI"), and has been licensed for use by First Trust. S&P(R) is a
registered trademark of Standard & Poor's Financial Services LLC ("S&P"); Dow
Jones(R) is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow
Jones"); and these trademarks have been licensed for use by SPDJI and
sublicensed for certain purposes by First Trust. The Fund is not sponsored,
endorsed, sold or promoted by SPDJI, Dow Jones, S&P, or their respective
affiliates, and none of such parties make any representation regarding the
advisability of investing in such product(s) nor do they have any liability for
any errors, omissions, or interruptions of the Select Dividend Index.
Page 8
--------------------------------------------------------------------------------
FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------
FIRST TRUST DOW JONES GLOBAL SELECT DIVIDEND INDEX FUND (FGD) (CONTINUED)
-----------------------------------------------------------
% OF TOTAL
SECTOR CLASSIFICATION LONG-TERM INVESTMENTS
-----------------------------------------------------------
Financials 44.6%
Materials 11.7
Communication Services 9.4
Industrials 7.8
Consumer Discretionary 6.6
Utilities 6.4
Consumer Staples 5.1
Real Estate 4.9
Energy 3.5
------
Total 100.0%
======
-----------------------------------------------------------
% OF TOTAL
TOP TEN HOLDINGS LONG-TERM INVESTMENTS
-----------------------------------------------------------
Fortescue Metals Group Ltd. 2.8%
AP Moller - Maersk A/S, Class A 1.9
Rio Tinto PLC 1.6
Mitsui OSK Lines Ltd. 1.6
Lumen Technologies, Inc. 1.6
Samsung Securities Co., Ltd. 1.4
Enagas S.A. 1.4
Mapfre S.A. 1.4
Jupiter Fund Management PLC 1.4
PCCW Ltd. 1.3
------
Total 16.4%
======
PERFORMANCE OF A $10,000 INITIAL INVESTMENT
SEPTEMBER 30, 2011 - MARCH 31, 2022
First Trust Dow Jones Global Dow Jones Global Dow Jones World Developed MSCI World
Select Dividend Index Fund Select Dividend Index Markets Index(SM) Index
---------------------------- ----------------------- ------------------------- ----------
9/30/11 $10,000 $10,000 $10,000 $10,000
3/31/12 11,311 11,211 12,018 12,003
9/30/12 11,758 11,675 12,166 12,159
3/31/13 12,367 12,274 13,529 13,426
9/30/13 13,450 13,370 14,774 14,616
3/31/14 14,788 14,719 16,197 15,984
9/30/14 14,601 14,527 16,544 16,399
3/31/15 14,173 14,114 17,176 16,948
9/30/15 12,482 12,371 15,776 15,565
3/31/16 13,276 13,244 16,615 16,363
9/30/16 14,189 14,105 17,662 17,332
3/31/17 14,978 14,965 19,154 18,779
9/30/17 16,196 16,180 20,954 20,480
3/31/18 16,345 16,292 21,910 21,318
9/30/18 16,562 16,558 23,301 22,783
3/31/19 15,686 15,682 22,625 22,188
9/30/19 16,030 16,024 23,578 23,200
3/31/20 11,601 11,627 20,088 19,882
9/30/20 13,405 13,488 25,962 25,612
3/31/21 19,184 19,402 31,414 30,624
9/30/21 19,708 19,963 33,655 32,996
3/31/22 20,443 20,787 34,055 33,725
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.
Page 9
--------------------------------------------------------------------------------
FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------
FIRST TRUST GLOBAL WIND ENERGY ETF (FAN)
First Trust Global Wind Energy ETF (the "Fund") seeks investment results that
correspond generally to the price and yield (before the Fund's fees and
expenses) of an equity index called the ISE Clean Edge Global Wind Energy
Index(TM) (the "Index"). The shares of the Fund are listed and trade on the NYSE
Arca, Inc. under the ticker symbol "FAN." The Fund will normally invest at least
90% of its net assets (including investment borrowings) in the common stocks and
depositary receipts that comprise the Index.
The Index is developed, maintained and sponsored by Nasdaq, Inc. The Index
provides a benchmark for investors interested in tracking public companies
throughout the world that are active in the wind energy industry.
-------------------------------------------------------------------------------------------------------------------------
PERFORMANCE
-------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS CUMULATIVE TOTAL RETURNS
6 Months 1 Year 5 Years 10 Years Inception 5 Years 10 Years Inception
Ended Ended Ended Ended (6/16/08) Ended Ended (6/16/08)
3/31/22 3/31/22 3/31/22 3/31/22 to 3/31/22 3/31/22 3/31/22 to 3/31/22
FUND PERFORMANCE
NAV -5.51% -10.65% 11.72% 12.23% -1.03% 74.03% 216.97% -13.28%
Market Price -5.14% -11.10% 11.73% 12.34% -1.01% 74.10% 220.17% -13.07%
INDEX PERFORMANCE
ISE Clean Edge Global Wind
Energy Index(TM) -4.61% -9.38% 12.68% 13.21% -0.17% 81.67% 245.70% -2.25%
Russell 3000(R) Index 3.51% 11.92% 15.40% 14.28% 11.18% 104.64% 280.04% 331.01%
MSCI World Index 2.21% 10.12% 12.42% 10.88% 7.54% 79.58% 180.98% 172.61%
-------------------------------------------------------------------------------------------------------------------------
(See Notes to Fund Performance Overview on page 36.)
-----------------------------
Nasdaq(R), Clean Edge(R), and ISE Clean Edge Global Wind Energy Index(TM) are
registered trademarks and service marks of Nasdaq, Inc. and Clean Edge, Inc.,
respectively (together with its affiliates hereinafter referred to as the
"Corporations") and are licensed for use by First Trust. The Fund has not been
passed on by the Corporations as to its legality or suitability. The Fund is not
issued, endorsed, sold or promoted by the Corporations. THE CORPORATIONS MAKE NO
WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE FUND.
Page 10
--------------------------------------------------------------------------------
FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------
FIRST TRUST GLOBAL WIND ENERGY ETF (FAN) (CONTINUED)
-----------------------------------------------------------
% OF TOTAL
SECTOR CLASSIFICATION LONG-TERM INVESTMENTS
-----------------------------------------------------------
Utilities 66.9%
Industrials 30.3
Materials 2.4
Energy 0.4
------
Total 100.0%
======
-----------------------------------------------------------
% OF TOTAL
TOP TEN HOLDINGS LONG-TERM INVESTMENTS
-----------------------------------------------------------
Orsted A/S 7.7%
China Longyuan Power Group Corp., Ltd.,
Class H 7.5
Northland Power, Inc. 7.3
Vestas Wind Systems A/S 7.2
EDP Renovaveis S.A. 6.5
Innergex Renewable Energy, Inc. 3.3
Boralex, Inc., Class A 3.2
Siemens Gamesa Renewable Energy S.A. 3.0
Duke Energy Corp. 2.2
NextEra Energy, Inc. 2.2
------
Total 50.1%
======
PERFORMANCE OF A $10,000 INITIAL INVESTMENT
SEPTEMBER 30, 2011 - MARCH 31, 2022
First Trust Global ISE Clean Edge Global Russell 3000(R) MSCI World
Wind Energy ETF Wind Energy Index(TM) Index Index
------------------ --------------------- --------------- ----------
9/30/11 $10,000 $10,000 $10,000 $10,000
3/31/12 9,705 9,691 12,655 12,003
9/30/12 8,386 8,424 13,021 12,159
3/31/13 9,624 9,667 14,499 13,426
9/30/13 13,135 13,272 15,833 14,617
3/31/14 15,298 15,519 17,777 15,985
9/30/14 14,734 14,977 18,645 16,399
3/31/15 14,180 14,486 19,974 16,948
9/30/15 13,648 13,965 18,552 15,565
3/31/16 15,460 15,962 19,906 16,363
9/30/16 17,799 18,406 21,327 17,332
3/31/17 17,676 18,443 23,500 18,779
9/30/17 18,904 19,740 25,314 20,480
3/31/18 19,248 20,068 26,744 21,318
9/30/18 18,351 19,263 29,763 22,783
3/31/19 19,390 20,403 29,087 22,188
9/30/19 19,743 20,891 30,632 23,200
3/31/20 18,475 19,679 26,435 19,882
9/30/20 26,737 28,531 35,227 25,612
3/31/21 34,427 36,973 42,963 30,624
9/30/21 32,555 35,121 46,464 32,996
3/31/22 30,762 33,502 48,094 33,726
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.
Page 11
--------------------------------------------------------------------------------
FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------
FIRST TRUST GLOBAL ENGINEERING AND CONSTRUCTION ETF (FLM)
First Trust Global Engineering and Construction ETF (the "Fund") seeks
investment results that correspond generally to the price and yield (before the
Fund's fees and expenses) of an equity index called the ISE Global Engineering
and Construction(TM) Index (the "Index"). The shares of the Fund are listed and
trade on the NYSE Arca, Inc. under the ticker symbol "FLM." The Fund will
normally invest in at least 90% of its net assets (including investment
borrowings) in the common stocks and depositary receipts that comprise the
Index.
The Index is developed, maintained and sponsored by Nasdaq, Inc. The Index
provides a benchmark for investors interested in tracking public companies
throughout the world that are active in the engineering and construction
industries.
-------------------------------------------------------------------------------------------------------------------------
PERFORMANCE
-------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS CUMULATIVE TOTAL RETURNS
6 Months 1 Year 5 Years 10 Years Inception 5 Years 10 Years Inception
Ended Ended Ended Ended (10/13/08) Ended Ended (10/13/08)
3/31/22 3/31/22 3/31/22 3/31/22 to 3/31/22 3/31/22 3/31/22 to 3/31/22
FUND PERFORMANCE
NAV 1.48% 0.24% 2.94% 4.79% 6.32% 15.61% 59.62% 128.32%
Market Price 1.29% -0.18% 2.93% 4.75% 6.32% 15.51% 59.10% 128.10%
INDEX PERFORMANCE
ISE Global Engineering and
Construction(TM) Index 2.21% 1.66% 4.13% 6.02% 7.86% 22.41% 79.44% 176.97%
Russell 3000(R) Index 3.51% 11.92% 15.40% 14.28% 14.05% 104.64% 280.04% 486.79%
MSCI World Industrials Index -0.73% 1.46% 9.34% 9.77% 10.48% 56.29% 153.92% 282.66%
-------------------------------------------------------------------------------------------------------------------------
(See Notes to Fund Performance Overview on page 36.)
-----------------------------
Nasdaq(R) and the ISE Global Engineering and Construction(TM) Index are
registered trademarks and service marks of Nasdaq, Inc. (together with its
affiliates hereinafter referred to as the "Corporations") and are licensed for
use by First Trust. The Fund has not been passed on by the Corporations as to
its legality or suitability. The Fund is not issued, endorsed, sold or promoted
by the Corporations. THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY
WITH RESPECT TO THE FUND.
Page 12
--------------------------------------------------------------------------------
FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------
FIRST TRUST GLOBAL ENGINEERING AND CONSTRUCTION ETF (FLM) (CONTINUED)
-----------------------------------------------------------
% OF TOTAL
SECTOR CLASSIFICATION LONG-TERM INVESTMENTS
-----------------------------------------------------------
Industrials 99.3%
Utilities 0.6
Energy 0.1
------
Total 100.0%
======
-----------------------------------------------------------
% OF TOTAL
TOP TEN HOLDINGS LONG-TERM INVESTMENTS
-----------------------------------------------------------
Quanta Services, Inc. 3.7%
Vinci S.A. 3.6
AECOM 3.5
KBR, Inc. 3.5
Fluor Corp. 3.3
Eiffage S.A. 3.2
Jacobs Engineering Group, Inc. 3.1
Bouygues S.A. 3.1
ACS Actividades de Construccion y
Servicios S.A. 3.0
Taisei Corp. 2.9
------
Total 32.9%
======
PERFORMANCE OF A $10,000 INITIAL INVESTMENT
SEPTEMBER 30, 2011 - MARCH 31, 2022
First Trust Global Engineering ISE Global Engineering and Russell 3000(R) MSCI World
and Construction ETF Construction(TM) Index Index Industrials Index
------------------------------ -------------------------- --------------- -----------------
9/30/11 $10,000 $10,000 $10,000 $10,000
3/31/12 12,202 12,135 12,655 12,357
9/30/12 11,793 11,811 13,021 12,092
3/31/13 13,006 13,047 14,499 13,893
9/30/13 14,745 14,922 15,833 15,500
3/31/14 16,153 16,413 17,777 16,899
9/30/14 15,049 15,358 18,645 16,766
3/31/15 14,661 15,188 19,974 17,356
9/30/15 13,967 14,510 18,552 15,598
3/31/16 14,822 15,513 19,906 17,224
9/30/16 15,700 16,462 21,327 18,393
3/31/17 16,848 17,788 23,500 20,076
9/30/17 18,588 19,707 25,314 22,375
3/31/18 18,720 19,808 26,744 23,116
9/30/18 18,900 20,157 29,763 24,024
3/31/19 16,708 17,907 29,087 23,003
9/30/19 15,943 17,150 30,632 23,932
3/31/20 12,306 13,459 26,435 18,978
9/30/20 14,745 16,120 35,227 24,881
3/31/21 19,432 21,419 42,963 30,925
9/30/21 19,193 21,306 46,464 31,607
3/31/22 19,477 21,777 48,095 31,376
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.
Page 13
--------------------------------------------------------------------------------
FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------
FIRST TRUST NASDAQ(R) CLEAN EDGE(R) SMART GRID INFRASTRUCTURE INDEX FUND (GRID)
First Trust NASDAQ(R) Clean Edge(R) Smart Grid Infrastructure Index Fund (the
"Fund") seeks investment results that correspond generally to the price and
yield (before the Fund's fees and expenses) of an equity index called the Nasdaq
Clean Edge Smart Grid Infrastructure Index(TM) (the "Index"). The shares of the
Fund are listed and trade on The Nasdaq Stock Market LLC under the ticker symbol
"GRID." The Fund will normally invest at least 90% of its net assets (including
investment borrowings) in the common stocks and depositary receipts that
comprise the Index.
The Index is designed to act as a transparent and liquid benchmark for the grid
and electric energy infrastructure sector. The Index includes companies that are
primarily engaged and involved in electric grid, electric meters and devices,
networks, energy storage and management, and enabling software used by the smart
grid infrastructure sector. Clean Edge, Inc. and Nasdaq, Inc. serve as index
providers to the Index.
-------------------------------------------------------------------------------------------------------------------------
PERFORMANCE
-------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS CUMULATIVE TOTAL RETURNS
6 Months 1 Year 5 Years 10 Years Inception 5 Years 10 Years Inception
Ended Ended Ended Ended (11/16/09) Ended Ended (11/16/09)
3/31/22 3/31/22 3/31/22 3/31/22 to 3/31/22 3/31/22 3/31/22 to 3/31/22
FUND PERFORMANCE
NAV 1.88% 10.31% 18.81% 14.08% 10.82% 136.76% 273.24% 256.56%
Market Price 1.61% 9.82% 18.87% 14.08% 10.81% 137.37% 273.19% 255.87%
INDEX PERFORMANCE
Nasdaq Clean Edge Smart Grid
Infrastructure Index(TM) 2.49% 11.54% 19.91% 15.07% 11.78% 147.95% 306.87% 296.38%
Russell 3000(R) Index 3.51% 11.92% 15.40% 14.28% 14.14% 104.64% 280.04% 413.26%
S&P Composite 1500(R)
Industrials Index 5.51% 5.61% 11.52% 12.88% 13.38% 72.47% 235.91% 372.96%
MSCI World Industrials Index -0.73% 1.46% 9.34% 9.77% 9.84% 56.29% 153.92% 219.25%
-------------------------------------------------------------------------------------------------------------------------
(See Notes to Fund Performance Overview on page 36.)
-----------------------------
Nasdaq(R), Clean Edge(R), and Nasdaq Clean Edge Smart Grid Infrastructure
Index(TM) are registered trademarks and service marks of Nasdaq, Inc. and Clean
Edge, Inc. respectively (together with its affiliates hereinafter referred to as
the "Corporations") and are licensed for use by First Trust. The Fund has not
been passed on by the Corporations as to its legality or suitability. The Fund
is not issued, endorsed, sold, or promoted by the Corporations. THE CORPORATIONS
MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE FUND.
Page 14
--------------------------------------------------------------------------------
FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------
FIRST TRUST NASDAQ(R) CLEAN EDGE(R) SMART GRID INFRASTRUCTURE INDEX FUND (GRID)
(CONTINUED)
-----------------------------------------------------------
% OF TOTAL
SECTOR CLASSIFICATION LONG-TERM INVESTMENTS
-----------------------------------------------------------
Industrials 51.7%
Information Technology 25.2
Utilities 13.0
Consumer Discretionary 10.1
Materials 0.0*
------
Total 100.0%
======
-----------------------------------------------------------
% OF TOTAL
TOP TEN HOLDINGS LONG-TERM INVESTMENTS
-----------------------------------------------------------
Schneider Electric SE 8.3%
Johnson Controls International PLC 7.8
Eaton Corp. PLC 7.6
ABB Ltd. 7.4
Aptiv PLC 7.2
Enphase Energy, Inc. 4.7
Quanta Services, Inc. 4.7
Samsung SDI Co., Ltd. 4.1
Terna Rete Elettrica Nazionale S.p.A. 4.0
SolarEdge Technologies, Inc. 3.9
------
Total 59.7%
======
PERFORMANCE OF A $10,000 INITIAL INVESTMENT
SEPTEMBER 30, 2011 - MARCH 31, 2022
First Trust NASDAQ(R) NASDAQ Russell MSCI World
Clean Edge(R) Smart Grid Clean Edge Smart Grid 3000(R) S&P Composite 1500(R) Industrials
Infrastructure Index Fund Infrastructure Index(TM) Index Industrials Index Index
------------------------- ------------------------ ------- ------------------- -----------
9/30/11 $10,000 $10,000 $10,000 $10,000 $10,000
3/31/12 11,706 11,679 12,655 13,107 12,357
9/30/12 12,082 12,113 13,021 13,035 12,092
3/31/13 13,474 13,565 14,499 15,241 13,892
9/30/13 14,310 14,486 15,833 17,041 15,500
3/31/14 16,481 16,753 17,777 19,330 16,900
9/30/14 15,195 15,503 18,645 19,643 16,766
3/31/15 15,418 15,787 19,974 20,939 17,356
9/30/15 13,679 14,025 18,552 18,939 15,598
3/31/16 15,073 15,558 19,906 21,390 17,225
9/30/16 17,197 17,777 21,327 22,682 18,395
3/31/17 18,458 19,165 23,500 25,526 20,078
9/30/17 21,793 22,691 25,314 27,895 22,377
3/31/18 22,100 23,034 26,744 29,187 23,118
9/30/18 21,433 22,451 29,763 31,236 24,027
3/31/19 19,721 20,725 29,087 30,005 23,006
9/30/19 22,575 23,902 30,632 31,478 23,935
3/31/20 19,613 20,914 26,435 24,150 18,980
9/30/20 28,917 30,917 35,227 31,868 24,883
3/31/21 39,619 42,607 42,963 41,687 30,927
9/30/21 42,889 46,364 46,464 41,726 31,607
3/31/22 43,695 47,518 48,095 44,028 31,376
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.
Page 15
--------------------------------------------------------------------------------
FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------
FIRST TRUST INDXX GLOBAL NATURAL RESOURCES INCOME ETF (FTRI)
First Trust Indxx Global Natural Resources Income ETF (the "Fund") seeks
investment results that correspond generally to the price and yield (before the
Fund's fees and expenses) of an equity index called the Indxx Global Natural
Resources Income Index (the "Index"). The shares of the Fund are listed and
traded on The Nasdaq Stock Market LLC under the ticker symbol "FTRI." The Fund
will normally invest at least 90% of its net assets (including investment
borrowings) in the common stocks and depositary receipts that comprise the
Index.
The Index is owned and is developed, maintained and sponsored by Indxx, LLC. The
Index is a free float adjusted market capitalization weighted index designed to
measure the market performance of the 50 highest dividend yielding companies
involved in the upstream (i.e., generally exploration and production) segment of
the natural resources sector.
-------------------------------------------------------------------------------------------------------------------------
PERFORMANCE
-------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS CUMULATIVE TOTAL RETURNS
6 Months 1 Year 5 Years 10 Years Inception 5 Years 10 Years Inception
Ended Ended Ended Ended (3/11/10) Ended Ended (3/11/10)
3/31/22 3/31/22 3/31/22 3/31/22 to 3/31/22 3/31/22 3/31/22 to 3/31/22
FUND PERFORMANCE
NAV 31.75% 33.78% 13.76% -2.58% -1.38% 90.56% -23.02% -15.44%
Market Price 31.63% 33.45% 13.72% -2.56% -1.36% 90.16% -22.85% -15.22%
INDEX PERFORMANCE
Indxx Global Natural Resources
Income Index* 32.79% 35.90% 15.08% N/A N/A 101.85% N/A N/A
MSCI ACWI Materials Index 10.09% 10.88% 11.61% 5.96% 5.37% 73.16% 78.40% 87.85%
MSCI ACWI Index 0.96% 7.28% 11.64% 10.00% 9.50% 73.43% 159.26% 198.64%
-------------------------------------------------------------------------------------------------------------------------
(See Notes to Fund Performance Overview on page 36.)
* Effective on the close of business December 18, 2015, the Fund's underlying
index changed from the ISE Global Copper(TM) Index to the Indxx Global Natural
Resources Income Index. Therefore, the Fund's performance and total returns
shown for the period prior to December 18, 2015, are not necessarily indicative
of the performance the Fund, based on its current index, would have generated.
Since the Fund's new underlying index had an inception date of June 1, 2015, it
was not in existence for all the periods disclosed.
-----------------------------
Indxx and the Index are trademarks of Indxx, LLC ("Indxx") and have been
licensed for use for certain purposes by First Trust. The Fund is not sponsored,
endorsed, sold or promoted by Indxx, and Indxx makes no representation regarding
the advisability of trading in such product. The Index is determined, composed
and calculated by Indxx without regard to First Trust or the Fund.
Page 16
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FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------
FIRST TRUST INDXX GLOBAL NATURAL RESOURCES INCOME ETF (FTRI) (CONTINUED)
-----------------------------------------------------------
% OF TOTAL
SECTOR CLASSIFICATION LONG-TERM INVESTMENTS
-----------------------------------------------------------
Materials 67.1%
Energy 14.1
Consumer Staples 9.8
Utilities 9.0
------
Total 100.0%
======
-----------------------------------------------------------
% OF TOTAL
TOP TEN HOLDINGS LONG-TERM INVESTMENTS
-----------------------------------------------------------
BHP Group Ltd., ADR 10.3%
Vale S.A., ADR 9.9
Rio Tinto PLC, ADR 9.6
Nutrien Ltd. 9.1
Archer-Daniels-Midland Co. 4.7
Fortescue Metals Group Ltd. 4.5
Petroleo Brasileiro S.A., ADR 4.5
Tyson Foods, Inc., Class A 4.2
Veolia Environnement S.A. 4.0
Coterra Energy, Inc. 4.0
------
Total 64.8%
======
PERFORMANCE OF A $10,000 INITIAL INVESTMENT
SEPTEMBER 30, 2011 - MARCH 31, 2022
First Trust Indxx Global MSCI ACWI MSCI ACWI
Natural Resources Income ETF Materials Index Index
---------------------------- --------------- ---------
9/30/11 $10,000 $10,000 $10,000
3/31/12 12,328 11,575 11,991
9/30/12 11,382 11,066 12,098
3/31/13 10,388 11,083 13,253
9/30/13 9,075 11,109 14,243
3/31/14 9,010 11,653 15,451
9/30/14 8,860 11,333 15,856
3/31/15 6,947 10,831 16,289
9/30/15 4,652 8,663 14,800
3/31/16 4,349 9,485 15,581
9/30/16 4,661 10,746 16,569
3/31/17 4,980 11,927 17,924
9/30/17 5,382 13,300 19,659
3/31/18 5,735 13,812 20,571
9/30/18 5,982 13,914 21,581
3/31/19 5,902 13,394 21,121
9/30/19 5,717 13,242 21,879
3/31/20 4,277 10,545 18,745
9/30/20 5,043 14,794 24,164
3/31/21 7,096 18,624 28,980
9/30/21 7,203 18,759 30,794
3/31/22 9,490 20,652 31,090
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.
Page 17
--------------------------------------------------------------------------------
FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------
FIRST TRUST INDXX GLOBAL AGRICULTURE ETF (FTAG)
First Trust Indxx Global Agriculture ETF (the "Fund") seeks investment results
that correspond generally to the price and yield (before the Fund's fees and
expenses) of an equity index called the Indxx Global Agriculture Index (the
"Index"). The shares of the Fund are listed and traded on The Nasdaq Stock
Market LLC under the ticker symbol "FTAG." The Fund will normally invest at
least 90% of its net assets (including investment borrowings) in the common
stocks and depositary receipts that comprise the Index.
The Index is owned and is developed, maintained and sponsored by Indxx, LLC. The
Index is a market capitalization weighted index designed to measure the
performance of companies that are directly or indirectly engaged in improving
agricultural yields. The Index is composed of farmland companies and firms
involved in chemicals and fertilizers, seeds, irrigation equipment, and farm
machinery.
-------------------------------------------------------------------------------------------------------------------------
PERFORMANCE
-------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS CUMULATIVE TOTAL RETURNS
6 Months 1 Year 5 Years 10 Years Inception 5 Years 10 Years Inception
Ended Ended Ended Ended (3/11/10) Ended Ended (3/11/10)
3/31/22 3/31/22 3/31/22 3/31/22 to 3/31/22 3/31/22 3/31/22 to 3/31/22
FUND PERFORMANCE
NAV 13.63% 12.38% 8.26% -8.68% -10.43% 48.69% -59.69% -73.49%
Market Price 14.40% 12.69% 8.31% -8.73% -10.41% 49.06% -59.90% -73.41%
INDEX PERFORMANCE
Indxx Global Agriculture Index* 14.38% 14.15% 9.40% N/A N/A 56.70% N/A N/A
MSCI ACWI Index 0.96% 7.28% 11.64% 10.00% 9.50% 73.43% 159.26% 198.64%
MSCI ACWI Materials Index 10.09% 10.88% 11.61% 5.96% 5.37% 73.16% 78.40% 87.85%
-------------------------------------------------------------------------------------------------------------------------
(See Notes to Fund Performance Overview on page 36.)
* Effective on the close of business December 18, 2015, the Fund's underlying
index changed from the ISE Global Platinum(TM) Index to the Indxx Global
Agriculture Index. Therefore, the Fund's performance and total returns shown for
the period prior to December 18, 2015, are not necessarily indicative of the
performance the Fund, based on its current Index, would have generated. Since
the Fund's new underlying index had an inception date of June 1, 2015, it was
not in existence for all the periods disclosed.
-----------------------------
Indxx and the Index are trademarks of Indxx, LLC ("Indxx") and have been
licensed for use for certain purposes by First Trust. The Fund is not sponsored,
endorsed, sold or promoted by Indxx and Indxx makes no representation regarding
the advisability of trading in such product. The Index is determined, composed
and calculated by Indxx without regard to First Trust or the Fund.
Page 18
--------------------------------------------------------------------------------
FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------
FIRST TRUST INDXX GLOBAL AGRICULTURE ETF (FTAG) (CONTINUED)
-----------------------------------------------------------
% OF TOTAL
SECTOR CLASSIFICATION LONG-TERM INVESTMENTS
-----------------------------------------------------------
Materials 55.4%
Industrials 26.8
Health Care 9.8
Consumer Staples 6.0
Consumer Discretionary 2.0
------
Total 100.0%
======
-----------------------------------------------------------
% OF TOTAL
TOP TEN HOLDINGS LONG-TERM INVESTMENTS
-----------------------------------------------------------
Deere & Co. 10.4%
Bayer AG 9.8
Nutrien Ltd. 8.3
BASF SE 7.7
Corteva, Inc. 4.7
Industries Qatar QSC 4.0
Mosaic (The) Co. 3.7
Kubota Corp. 3.4
Wilmar International Ltd. 3.4
CNH Industrial N.V. 3.3
------
Total 58.7%
======
PERFORMANCE OF A $10,000 INITIAL INVESTMENT
SEPTEMBER 30, 2011 - MARCH 31, 2022
First Trust Indxx MSCI ACWI MSCI ACWI
Global Agriculture ETF Index Materials Index
---------------------- --------- ---------------
9/30/11 $10,000 $10,000 $10,000
3/31/12 10,249 11,991 11,575
9/30/12 7,592 12,098 11,066
3/31/13 7,274 13,253 11,083
9/30/13 6,845 14,243 11,109
3/31/14 6,801 15,451 11,653
9/30/14 6,117 15,856 11,333
3/31/15 5,062 16,289 10,831
9/30/15 2,985 14,800 8,663
3/31/16 2,308 15,581 9,485
9/30/16 2,420 16,569 10,746
3/31/17 2,779 17,924 11,927
9/30/17 3,076 19,659 13,300
3/31/18 3,034 20,571 13,812
9/30/18 3,029 21,581 13,914
3/31/19 2,712 21,121 13,394
9/30/19 2,723 21,879 13,241
3/31/20 1,944 18,744 10,544
9/30/20 2,638 24,163 14,792
3/31/21 3,679 28,979 18,622
9/30/21 3,637 30,794 18,759
3/31/22 4,133 31,090 20,652
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.
Page 19
--------------------------------------------------------------------------------
FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------
FIRST TRUST BICK INDEX FUND (BICK)
The First Trust BICK Index Fund (the "Fund") seeks investment results that
correspond generally to the price and yield (before the Fund's fees and
expenses) of an equity index called the ISE BICK(TM) Index (the "Index"). The
shares of the Fund are listed and trade on The Nasdaq Stock Market LLC under the
ticker symbol "BICK." The Fund will normally invest at least 90% of its net
assets (including investment borrowings) in the common stocks and depositary
receipts that comprise the Index.
The Index is developed, maintained and sponsored by Nasdaq, Inc. The Index is
designed to provide a benchmark for investors interested in tracking some of the
largest and most liquid public companies that are domiciled in Brazil, India,
China (including Hong Kong) and South Korea that are accessible for investment
by U.S. investors.
-------------------------------------------------------------------------------------------------------------------------
PERFORMANCE
-------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS CUMULATIVE TOTAL RETURNS
6 Months 1 Year 5 Years 10 Years Inception 5 Years 10 Years Inception
Ended Ended Ended Ended (4/12/10) Ended Ended (4/12/10)
3/31/22 3/31/22 3/31/22 3/31/22 to 3/31/22 3/31/22 3/31/22 to 3/31/22
FUND PERFORMANCE
NAV -7.73% -15.31% 5.96% 3.20% 1.77% 33.57% 37.08% 23.32%
Market Price -8.61% -16.87% 5.83% 2.99% 1.67% 32.74% 34.24% 21.91%
INDEX PERFORMANCE
ISE BICK(TM) Index -7.16% -14.09% 7.22% 4.23% 2.75% 41.68% 51.35% 38.32%
MSCI ACWI Index 0.96% 7.28% 11.64% 10.00% 9.19% 73.43% 159.26% 186.35%
MSCI Emerging Markets Index -8.20% -11.37% 5.98% 3.36% 3.20% 33.67% 39.14% 45.75%
-------------------------------------------------------------------------------------------------------------------------
(See Notes to Fund Performance Overview on page 36.)
-----------------------------
Nasdaq(R) and ISE BICK(TM) Index are registered trademarks and service marks of
Nasdaq, Inc. (together with its affiliates hereinafter referred to as the
"Corporations") and are licensed for use by First Trust. The Fund has not been
passed on by the Corporations as to its legality or suitability. The Fund is not
issued, endorsed, sold or promoted by the Corporations. THE CORPORATIONS MAKE NO
WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE FUND.
Page 20
--------------------------------------------------------------------------------
FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------
FIRST TRUST BICK INDEX FUND (BICK) (CONTINUED)
-----------------------------------------------------------
% OF TOTAL
SECTOR CLASSIFICATION LONG-TERM INVESTMENTS
-----------------------------------------------------------
Consumer Discretionary 21.2%
Financials 17.7
Information Technology 16.6
Communication Services 10.3
Health Care 7.3
Materials 6.5
Industrials 5.7
Utilities 5.4
Energy 5.3
Consumer Staples 3.4
Real Estate 0.6
------
Total 100.0%
======
-----------------------------------------------------------
% OF TOTAL
TOP TEN HOLDINGS LONG-TERM INVESTMENTS
-----------------------------------------------------------
Infosys Ltd., ADR 2.3%
Reliance Industries Ltd., GDR 2.3
Wipro Ltd., ADR 2.2
Dr. Reddy's Laboratories Ltd., ADR 2.2
ReNew Energy Global PLC, Class A 2.1
WNS (Holdings) Ltd., ADR 2.1
Azure Power Global Ltd. 2.1
State Bank of India, GDR 2.0
HDFC Bank Ltd., ADR 2.0
ICICI Bank Ltd., ADR 2.0
------
Total 21.3%
======
PERFORMANCE OF A $10,000 INITIAL INVESTMENT
SEPTEMBER 30, 2011 - MARCH 31, 2022
First Trust BICK ISE BICK(TM) MSCI ACWI MSCI Emerging
Index Fund Index Index Markets Index
---------------- ------------ --------- -------------
9/30/11 $10,000 $10,000 $10,000 $10,000
3/31/12 11,859 11,724 11,991 11,913
9/30/12 10,978 10,924 12,098 11,693
3/31/13 11,178 11,116 13,253 12,119
9/30/13 11,054 11,098 14,243 11,808
3/31/14 11,611 11,709 15,451 11,972
9/30/14 11,930 12,100 15,856 12,316
3/31/15 11,201 11,443 16,289 12,024
9/30/15 9,049 9,189 14,800 9,940
3/31/16 9,732 9,971 15,581 10,577
9/30/16 11,220 11,491 16,569 11,608
3/31/17 12,171 12,525 17,924 12,397
9/30/17 14,264 14,767 19,659 14,214
3/31/18 15,307 15,820 20,571 15,466
9/30/18 13,293 13,939 21,581 14,099
3/31/19 13,823 14,575 21,121 14,340
9/30/19 13,058 13,800 21,878 13,817
3/31/20 10,518 11,231 18,744 11,807
9/30/20 14,895 15,907 24,165 15,273
3/31/21 19,194 20,655 28,981 18,699
9/30/21 17,619 19,114 30,794 18,054
3/31/22 16,257 17,745 31,090 16,574
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.
Page 21
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FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------
FIRST TRUST INDXX NEXTG ETF (NXTG)
The First Trust Indxx NextG ETF (the "Fund") seeks investment results that
correspond generally to the price and yield (before the Fund's fees and
expenses) of an equity index called the Indxx 5G & NextG Thematic Index(SM) (the
"Index"). The shares of the Fund are listed and trade on The Nasdaq Stock Market
LLC under the ticker symbol "NXTG." The Fund will normally invest at least 90%
of its net assets (including investment borrowings) in the common stocks and
depositary receipts that comprise the Index.
The Index is owned and is developed, maintained and sponsored by Indxx, LLC. The
Index is designed to track the performance of companies that have devoted, or
have committed to devote, material resources to the research, development and
application of fifth generation (5G) and next generation digital cellular
technologies as they emerge.
-------------------------------------------------------------------------------------------------------------------------
PERFORMANCE
-------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS CUMULATIVE TOTAL RETURNS
6 Months 1 Year 5 Years 10 Years Inception 5 Years 10 Years Inception
Ended Ended Ended Ended (2/17/11) Ended Ended (2/17/11)
3/31/22 3/31/22 3/31/22 3/31/22 to 3/31/22 3/31/22 3/31/22 to 3/31/22
FUND PERFORMANCE
NAV 0.70% 6.47% 11.81% 12.04% 9.98% 74.75% 211.59% 187.86%
Market Price 0.75% 5.99% 11.79% 12.04% 9.98% 74.59% 211.72% 187.88%
INDEX PERFORMANCE
Indxx 5G & NextG Thematic
IndexSM (1) (2) 1.54% 8.09% N/A N/A N/A N/A N/A N/A
MSCI ACWI Information
Technology Index 1.02% 12.27% 23.63% 18.12% 16.94% 188.82% 428.64% 469.50%
MSCI ACWI Index 0.96% 7.28% 11.64% 10.00% 8.82% 73.43% 159.26% 155.80%
-------------------------------------------------------------------------------------------------------------------------
(See Notes to Fund Performance Overview on page 36.)
(1) On May 30, 2019, the Fund's underlying index changed from the Nasdaq CTA
Smartphone Index(SM) to the Indxx 5G & NextG Thematic Index(SM).
Therefore, the Fund's performance and historical returns shown for the
periods prior to this date are not necessarily indicative of the
performance that the Fund, based on its current index, would have
generated.
(2) Performance data is not available for all the periods shown in the table
for the index because performance data does not exist for some of the
entire periods.
-----------------------------
Indxx and the Index are trademarks of Indxx, LLC ("Indxx") and have been
licensed for use for certain purposes by First Trust. The Fund is not sponsored,
endorsed, sold or promoted by Indxx and Indxx makes no representation regarding
the advisability of trading in such product. The Index is determined, composed
and calculated by Indxx without regard to First Trust or the Fund.
Page 22
--------------------------------------------------------------------------------
FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------
FIRST TRUST INDXX NEXTG ETF (NXTG) (CONTINUED)
-----------------------------------------------------------
% OF TOTAL
SECTOR CLASSIFICATION LONG-TERM INVESTMENTS
-----------------------------------------------------------
Information Technology 58.7%
Communication Services 31.6
Real Estate 6.2
Consumer Discretionary 2.3
Industrials 1.2
------
Total 100.0%
======
-----------------------------------------------------------
% OF TOTAL
TOP TEN HOLDINGS LONG-TERM INVESTMENTS
-----------------------------------------------------------
Advanced Micro Devices, Inc. 2.2%
Amdocs Ltd. 1.5
Juniper Networks, Inc. 1.5
Hewlett Packard Enterprise Co. 1.4
Arista Networks, Inc. 1.4
Broadcom, Inc. 1.4
Infosys Ltd., ADR 1.4
Nippon Telegraph & Telephone Corp. 1.4
International Business Machines Corp. 1.4
Tata Consultancy Services Ltd. 1.4
------
Total 15.0%
======
PERFORMANCE OF A $10,000 INITIAL INVESTMENT
SEPTEMBER 30, 2011 - MARCH 31, 2022
First Trust Indxx MSCI ACWI Information MSCI ACWI
NextG ETF Technology Index Index
--------------------- --------------------- ---------
9/30/11 $10,000 $10,000 $10,000
3/31/12 12,312 12,841 11,991
9/30/12 10,403 12,594 12,098
3/31/13 12,024 12,842 13,253
9/30/13 14,628 14,012 14,243
3/31/14 16,151 15,919 15,451
9/30/14 16,992 17,285 15,856
3/31/15 18,554 18,457 16,289
9/30/15 16,253 17,078 14,800
3/31/16 17,457 18,815 15,581
9/30/16 19,438 20,984 16,569
3/31/17 21,955 23,504 17,924
9/30/17 24,043 27,276 19,659
3/31/18 25,231 30,377 20,571
9/30/18 24,091 33,506 21,581
3/31/19 23,744 32,993 21,121
9/30/19 24,518 35,623 21,879
3/31/20 22,821 35,206 18,744
9/30/20 29,168 51,577 24,163
3/31/21 36,037 60,453 28,979
9/30/21 38,098 67,195 30,794
3/31/22 38,365 67,880 31,090
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.
Page 23
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FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------
FIRST TRUST S-NETWORK FUTURE VEHICLES & TECHNOLOGY ETF (CARZ)
The First Trust S-Network Future Vehicles & Technology ETF (the "Fund"),
formerly First Trust NASDAQ Global Auto Index Fund, seeks investment results
that correspond generally to the price and yield (before the Fund's fees and
expenses) of an equity index called the S-Network Electric & Future Vehicle
Ecosystem Index (the "Index"). The shares of the Fund are listed and trade on
The Nasdaq Stock Market LLC under the ticker symbol "CARZ." The Fund will
normally invest at least 90% of its net assets (including investment borrowings)
in the common stocks and depositary receipts that comprise the Index.
The Index is owned and is developed, maintained and sponsored by S-Network
Global Indexes, Inc. To be eligible for inclusion in the Index a company must be
listed on a major recognized stock exchange and engaged in one of the following
sectors: (a) electric and autonomous vehicle manufacturing; (b) enabling
technologies; or (c) enabling materials.
-------------------------------------------------------------------------------------------------------------------------
PERFORMANCE
-------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS CUMULATIVE TOTAL RETURNS
6 Months 1 Year 5 Years 10 Years Inception 5 Years 10 Years Inception
Ended Ended Ended Ended (5/9/11) Ended Ended (5/9/11)
3/31/22 3/31/22 3/31/22 3/31/22 to 3/31/22 3/31/22 3/31/22 to 3/31/22
FUND PERFORMANCE
NAV 0.96% 3.04% 12.25% 9.60% 8.08% 78.20% 150.13% 133.24%
Market Price 0.69% 2.46% 12.22% 9.56% 8.09% 78.01% 149.16% 133.50%
INDEX PERFORMANCE
S-Network Electric & Future
Vehicle Ecosystem Index(1)(2) -0.77% N/A N/A N/A N/A N/A N/A N/A
MSCI ACWI Index 0.96% 7.28% 11.64% 10.00% 8.92% 73.43% 159.26% 153.62%
MSCI World Index 2.21% 10.12% 12.42% 10.88% 9.83% 79.58% 180.98% 177.63%
Nasdaq Global Auto Index(SM) (1) -8.28% -5.84% 11.07% 9.49% 8.12% 69.07% 147.56% 134.17%
-------------------------------------------------------------------------------------------------------------------------
(See Notes to Fund Performance Overview on page 36.)
(1) On January 26, 2022, the Fund's underlying index changed from the Nasdaq
Global Auto Index(SM) to the S-Network Electric & Future Vehicle Ecosystem
Index. Therefore, the Fund's performance and historical returns shown for
the periods prior to this date are not necessarily indicative of the
performance that the Fund, based on its current index, would have
generated.
(2) Performance data is not available for all the periods shown in the table
for the index because performance data does not exist for some of the
entire periods.
-----------------------------
S-Network and S-Network Electric & Future Vehicle Ecosystem Index are service
marks of S-Network Global Indexes, Inc. and have been licensed for use by First
Trust Advisors L.P. The Fund is not issued, sponsored, endorsed, sold or
promoted by S-Network Global Indexes, Inc. or its affiliates (collectively,
"S-Network"). S-Network makes no representation or warranty, express or implied,
to the purchasers or owners of the Fund or any member of the public regarding
the advisability of investing in securities generally or in the Fund
particularly or the ability of the Index to track general market performance.
Page 24
--------------------------------------------------------------------------------
FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------
FIRST TRUST S-NETWORK FUTURE VEHICLES & TECHNOLOGY ETF (CARZ) (CONTINUED)
-----------------------------------------------------------
% OF TOTAL
SECTOR CLASSIFICATION LONG-TERM INVESTMENTS
-----------------------------------------------------------
Information Technology 49.8%
Consumer Discretionary 30.4
Materials 8.8
Communication Services 5.9
Industrials 5.1
------
Total 100.0%
======
-----------------------------------------------------------
% OF TOTAL
TOP TEN HOLDINGS LONG-TERM INVESTMENTS
-----------------------------------------------------------
Tesla, Inc. 5.3%
NVIDIA Corp. 5.2
Apple, Inc. 5.1
Alphabet, Inc., Class A 5.1
Intel Corp. 4.6
Samsung Electronics Co., Ltd. 4.4
Toyota Motor Corp. 4.3
QUALCOMM, Inc. 4.2
Taiwan Semiconductor Manufacturing
Co., Ltd., ADR 3.8
Advanced Micro Devices, Inc. 3.0
------
Total 45.0%
======
PERFORMANCE OF A $10,000 INITIAL INVESTMENT
SEPTEMBER 30, 2011 - MARCH 31, 2022
First Trust S-Network
Future Vehicles & MSCI ACWI MSCI World Nasdaq Global
Technology ETF Index Index Auto Index(SM)
---------------------- ---------- ---------- --------------
9/30/11 $10,000 $10,000 $10,000 $10,000
3/31/12 12,358 11,991 12,003 12,258
9/30/12 10,977 12,098 12,159 10,935
3/31/13 13,532 13,253 13,426 13,478
9/30/13 17,502 14,243 14,616 17,598
3/31/14 18,017 15,451 15,984 18,191
9/30/14 17,343 15,856 16,398 17,565
3/31/15 18,600 16,289 16,947 18,919
9/30/15 15,542 14,800 15,564 15,818
3/31/16 15,673 15,581 16,362 16,090
9/30/16 15,891 16,569 17,331 16,261
3/31/17 17,350 17,924 18,778 17,947
9/30/17 19,619 19,659 20,479 20,368
3/31/18 20,147 20,571 21,317 20,873
9/30/18 18,134 21,581 22,781 18,990
3/31/19 16,551 21,121 22,186 17,397
9/30/19 16,505 21,879 23,200 17,441
3/31/20 12,452 18,744 19,883 13,259
9/30/20 20,355 24,163 25,613 21,750
3/31/21 30,000 28,979 30,626 32,225
9/30/21 30,620 30,793 32,996 33,082
3/31/22 30,913 31,090 33,725 30,343
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.
Page 25
--------------------------------------------------------------------------------
FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------
FIRST TRUST CLOUD COMPUTING ETF (SKYY)
The First Trust Cloud Computing ETF (the "Fund") seeks investment results that
correspond generally to the price and yield (before the Fund's fees and
expenses) of an equity index called the ISE CTA Cloud Computing Index(TM) (the
"Index"). The shares of the Fund are listed and trade on The Nasdaq Stock Market
LLC under the ticker symbol "SKYY." The Fund will normally invest at least 90%
of its net assets (including investment borrowings) in the common stocks and
depositary receipts that comprise the Index.
The Index is developed, maintained and sponsored by Nasdaq, Inc. The Index is
designed to provide a benchmark for investors interested in tracking companies
involved in the cloud computing industry. To be eligible for inclusion in the
Index, a security must be issued by a "cloud computing" company as classified by
the Consumer Technology Association ("CTA"). A cloud computing company is a
company engaged in one or more of the following activities:
Infrastructure-as-a-Service, Platform-as-a-Service or Software-as-a-Service.
-------------------------------------------------------------------------------------------------------------------------
PERFORMANCE
-------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS CUMULATIVE TOTAL RETURNS
6 Months 1 Year 5 Years 10 Years Inception 5 Years 10 Years Inception
Ended Ended Ended Ended (7/5/11) Ended Ended (7/5/11)
3/31/22 3/31/22 3/31/22 3/31/22 to 3/31/22 3/31/22 3/31/22 to 3/31/22
FUND PERFORMANCE
NAV -13.54% -4.71% 19.20% 15.97% 15.42% 140.67% 340.16% 366.73%
Market Price -13.47% -4.68% 19.21% 15.98% 15.43% 140.70% 340.45% 367.04%
INDEX PERFORMANCE
ISE CTA Cloud Computing
Index(TM) (1) -13.23% -4.10% 19.99% 16.63% 16.08% 148.73% 365.83% 395.70%
S&P 500(R) Index 5.92% 15.65% 15.99% 14.64% 14.29% 109.94% 291.97% 319.47%
S&P Composite 1500(R) Information
Technology Index 6.62% 19.84% 26.17% 20.23% 20.51% 219.74% 531.17% 640.89%
-------------------------------------------------------------------------------------------------------------------------
(See Notes to Fund Performance Overview on page 36.)
(1) On June 24, 2019, the Fund's underlying index changed its methodology and
changed its name from "ISE Cloud Computing(TM) Index" to "ISE CTA Cloud
Computing Index(TM)."
-----------------------------
Nasdaq(R) and the Index are registered trademarks and service marks of Nasdaq,
Inc. (together with its affiliates hereinafter referred to as the
"Corporations") and are licensed for use by First Trust. The Fund has not been
passed on by the Corporations as to its legality or suitability. The Fund is not
issued, endorsed, sold or promoted by the Corporations. THE CORPORATIONS MAKE NO
WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE FUND.
Page 26
--------------------------------------------------------------------------------
FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------
FIRST TRUST CLOUD COMPUTING ETF (SKYY) (CONTINUED)
-----------------------------------------------------------
% OF TOTAL
SECTOR CLASSIFICATION LONG-TERM INVESTMENTS
-----------------------------------------------------------
Information Technology 86.2%
Consumer Discretionary 6.9
Communication Services 6.4
Health Care 0.5
------
Total 100.0%
======
-----------------------------------------------------------
% OF TOTAL
TOP TEN HOLDINGS LONG-TERM INVESTMENTS
-----------------------------------------------------------
Pure Storage, Inc., Class A 4.5%
Arista Networks, Inc. 3.7
Oracle Corp. 3.6
Amazon.com, Inc. 3.5
Alibaba Group Holding Ltd., ADR 3.4
Microsoft Corp. 3.4
Alphabet, Inc., Class A 3.4
Rackspace Technology, Inc. 3.3
DigitalOcean Holdings, Inc. 3.2
VMware, Inc., Class A 3.2
------
Total 35.2%
======
PERFORMANCE OF A $10,000 INITIAL INVESTMENT
SEPTEMBER 30, 2011 - MARCH 31, 2022
First Trust Cloud ISE CTA Cloud S&P 500(R) S&P Composite 1500(R)
Computing ETF Computing Index(TM) Index Information Technology Index
----------------- ------------------- ---------- ----------------------------
9/30/11 $10,000 $10,000 $10,000 $10,000
3/31/12 13,419 13,454 12,589 13,211
9/30/12 12,483 12,561 13,020 13,161
3/31/13 13,327 13,454 14,347 13,147
9/30/13 15,456 15,648 15,538 14,313
3/31/14 16,944 17,211 17,482 16,493
9/30/14 17,186 17,514 18,604 18,179
3/31/15 18,413 18,821 19,707 19,417
9/30/15 17,708 18,149 18,489 18,623
3/31/16 18,714 19,278 20,059 20,793
9/30/16 21,656 22,376 21,343 22,874
3/31/17 24,538 25,200 23,503 26,081
9/30/17 26,638 27,440 25,315 29,425
3/31/18 30,836 31,863 26,793 33,083
9/30/18 36,177 37,512 29,850 38,370
3/31/19 37,049 38,559 29,337 38,017
9/30/18 36,382 38,027 31,121 41,587
3/31/20 35,243 36,928 27,290 41,450
9/30/20 50,768 53,365 35,834 60,268
3/31/21 61,983 65,361 42,668 69,585
9/30/21 68,315 72,242 46,586 78,206
3/31/22 59,065 62,670 49,344 83,383
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.
Page 27
--------------------------------------------------------------------------------
FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------
FIRST TRUST INTERNATIONAL EQUITY OPPORTUNITIES ETF (FPXI)
First Trust International Equity Opportunities ETF (the "Fund") seeks investment
results that correspond generally to the price and yield (before the Fund's fees
and expenses) of an index called the IPOX(R) International Index (the "Index").
The shares of the Fund are listed and trade on The Nasdaq Stock Market LLC under
the ticker symbol "FPXI." The Fund will normally invest at least 90% of its net
assets (including investment borrowings) in the common stocks and depositary
receipts that comprise the Index.
The Index is owned and is developed, maintained and sponsored by IPOX(R)
Schuster LLC (the "Index Provider"). The Index is a market-cap weighted
portfolio measuring the performance of the top 50 companies domiciled outside
the United States ranked quarterly by market capitalization in the IPOX(R)
Global Composite Index (the "Base Index") and represents, on average, 25% of the
total market capitalization of the Base Index, a fully market
capitalization-weighted index constructed and managed to provide a broad and
objective view of global aftermarket performance of initial public offerings and
spin-offs in all world countries (both developed and emerging market countries).
-------------------------------------------------------------------------------------------------------------------------
PERFORMANCE
-------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL CUMULATIVE
TOTAL RETURNS TOTAL RETURNS
6 Months 1 Year 5 Years Inception 5 Years Inception
Ended Ended Ended (11/4/14) Ended (11/4/14)
3/31/22 3/31/22 3/31/22 to 3/31/22 3/31/22 to 3/31/22
FUND PERFORMANCE
NAV -23.48% -24.82% 12.12% 7.91% 77.21% 75.67%
Market Price -23.28% -25.24% 12.16% 7.91% 77.47% 75.67%
INDEX PERFORMANCE
IPOX(R) International Index -22.68% -23.72% 13.28% 8.89% 86.55% 87.88%
MSCI ACWI ex USA Index -3.72% -1.48% 6.76% 5.10% 38.71% 44.47%
MSCI World ex USA Index -1.82% 3.04% 7.14% 5.47% 41.15% 48.29%
-------------------------------------------------------------------------------------------------------------------------
(See Notes to Fund Performance Overview on page 36.)
-----------------------------
IPOX(R) and the Index are registered international trademarks and service marks
of IPOX(R) Schuster LLC ("IPOX") and have been licensed for use by First Trust.
The Fund is not sponsored, endorsed, sold or promoted by IPOX, and IPOX makes no
representation regarding the advisability of trading in such Fund.
Page 28
--------------------------------------------------------------------------------
FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------
FIRST TRUST INTERNATIONAL EQUITY OPPORTUNITIES ETF (FPXI) (CONTINUED)
-----------------------------------------------------------
% OF TOTAL
SECTOR CLASSIFICATION LONG-TERM INVESTMENTS
-----------------------------------------------------------
Health Care 19.2%
Financials 17.9
Consumer Discretionary 15.1
Information Technology 12.5
Energy 11.7
Communication Services 9.4
Utilities 5.4
Industrials 4.6
Consumer Staples 2.3
Materials 1.9
------
Total 100.0%
======
-----------------------------------------------------------
% OF TOTAL
TOP TEN HOLDINGS LONG-TERM INVESTMENTS
-----------------------------------------------------------
Saudi Arabian Oil Co. 10.0%
Adyen N.V. 8.6
China Merchants Bank Co., Ltd., Class H 6.0
SoftBank Corp. 5.8
Siemens Healthineers AG 5.6
BioNTech SE, ADR 5.0
Meituan, Class B 4.2
Macquarie Group Ltd. 3.7
Prosus N.V. 3.6
Gulf Energy Development PCL 2.9
------
Total 55.4%
======
PERFORMANCE OF A $10,000 INITIAL INVESTMENT
NOVEMBER 4, 2014 - MARCH 31, 2022
First Trust International IPOX(R) International MSCI ACWI MSCI World
Equity Opportunities ETF Index ex USA Index ex USA Index
------------------------- --------------------- ------------ ------------
11/4/14 $10,000 $10,000 $10,000 $10,000
3/31/15 9,798 9,813 10,137 10,252
9/30/15 8,526 8,522 8,950 9,212
3/31/16 8,864 8,954 9,206 9,386
9/30/16 9,432 9,523 9,779 9,872
3/31/17 9,913 10,072 10,415 10,506
9/30/17 11,952 12,204 11,696 11,722
3/31/18 12,949 13,217 12,118 11,951
9/30/18 12,352 12,713 11,903 12,036
3/31/19 12,308 12,716 11,625 11,594
9/30/19 12,920 13,403 11,756 11,922
3/31/20 13,086 13,684 9,815 9,866
9/30/20 20,185 21,054 12,109 11,940
3/31/21 23,365 24,630 14,664 14,391
9/30/21 22,956 24,297 15,005 15,104
3/31/22 17,567 18,788 14,447 14,829
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.
Page 29
--------------------------------------------------------------------------------
FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------
FIRST TRUST NASDAQ CYBERSECURITY ETF (CIBR)
The First Trust Nasdaq Cybersecurity ETF (the "Fund") seeks investment results
that correspond generally to the price and yield (before the Fund's fees and
expenses) of an equity index called the Nasdaq CTA Cybersecurity Index(TM) (the
"Index"). The shares of the Fund are listed and trade on The Nasdaq Stock Market
LLC under the ticker symbol "CIBR." The Fund will normally invest at least 90%
of its net assets (including investment borrowings) in the common stocks and
depositary receipts that comprise the Index.
The Index is owned by Nasdaq, Inc. (the "Index Provider"). The Index Provider
and the Consumer Technology Association ("CTA") have jointly developed the
eligibility and selection criteria and rules for the Index. The Index includes
securities of companies classified as "cybersecurity" companies by the CTA.
-------------------------------------------------------------------------------------------------------------------------
PERFORMANCE
-------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL CUMULATIVE
TOTAL RETURNS TOTAL RETURNS
6 Months 1 Year 5 Years Inception 5 Years Inception
Ended Ended Ended (7/6/15) Ended (7/6/15)
3/31/22 3/31/22 3/31/22 to 3/31/22 3/31/22 to 3/31/22
FUND PERFORMANCE
NAV 9.02% 27.61% 20.26% 16.29% 151.51% 176.47%
Market Price 9.23% 27.58% 20.32% 16.32% 152.16% 176.93%
INDEX PERFORMANCE
Nasdaq CTA Cybersecurity Index(TM) 9.66% 28.78% 21.17% 17.18% 161.17% 190.91%
S&P 500(R) Index 5.92% 15.65% 15.99% 14.50% 109.94% 148.93%
S&P Composite 1500(R) Information Technology Index 6.62% 19.84% 26.17% 24.08% 219.74% 327.51%
-------------------------------------------------------------------------------------------------------------------------
(See Notes to Fund Performance Overview on page 36.)
-----------------------------
Nasdaq(R) and the Index are registered trademarks and service marks of Nasdaq,
Inc. (together with its affiliates hereinafter referred to as the
"Corporations") and are licensed for use by First Trust. The Fund has not been
passed on by the Corporations as to its legality or suitability. The Fund is not
issued, endorsed, sold or promoted by the Corporations. THE CORPORATIONS MAKE NO
WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE FUND.
Page 30
--------------------------------------------------------------------------------
FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------
FIRST TRUST NASDAQ CYBERSECURITY ETF (CIBR) (CONTINUED)
-----------------------------------------------------------
% OF TOTAL
SECTOR CLASSIFICATION LONG-TERM INVESTMENTS
-----------------------------------------------------------
Information Technology 90.1%
Industrials 9.9
------
Total 100.0%
======
-----------------------------------------------------------
% OF TOTAL
TOP TEN HOLDINGS LONG-TERM INVESTMENTS
-----------------------------------------------------------
Crowdstrike Holdings, Inc., Class A 6.6%
Palo Alto Networks, Inc. 5.9
Cloudflare, Inc., Class A 5.8
Zscaler, Inc. 5.7
Cisco Systems, Inc. 5.7
Splunk, Inc. 3.6
Akamai Technologies, Inc. 3.1
Juniper Networks, Inc. 3.1
Infosys Ltd., ADR 3.1
Mandiant, Inc. 3.1
------
Total 45.7%
======
PERFORMANCE OF A $10,000 INITIAL INVESTMENT
JULY 6, 2015 - MARCH 31, 2022
First Trust Nasdaq Nasdaq CTA S&P 500(R) S&P Composite 1500(R)
Cybersecurity ETF Cybersecurity Index(TM) Index Information Technology Index
------------------ ----------------------- ---------- ----------------------------
7/6/15 $10,000 $10,000 $10,000 $10,000
9/30/15 8,575 8,585 9,328 9,547
3/31/16 8,595 8,645 10,120 10,659
9/30/16 10,018 10,113 10,768 11,726
3/31/17 10,993 11,137 11,858 13,370
9/30/17 11,093 11,276 12,772 15,084
3/31/18 12,713 12,943 13,518 16,959
9/30/18 14,475 14,808 15,060 19,669
3/31/19 14,271 14,642 14,801 19,488
9/30/19 14,074 14,493 15,701 21,318
3/31/20 13,318 13,794 13,767 21,250
9/30/20 18,050 18,758 18,077 30,898
3/31/21 21,665 22,591 21,525 35,674
9/30/21 25,359 26,529 23,501 40,098
3/31/22 27,647 29,091 24,893 42,751
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.
Page 31
--------------------------------------------------------------------------------
FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------
FIRST TRUST IPOX(R) EUROPE EQUITY OPPORTUNITIES ETF (FPXE)
The First Trust IPOX(R) Europe Equity Opportunities ETF (the "Fund") seeks
investment results that correspond generally to the price and yield (before the
Fund's fees and expenses) of an equity index called the IPOX(R)-100 Europe Index
(the "Index"). The shares of the Fund are listed and trade on The Nasdaq Stock
Market LLC under the ticker symbol "FPXE." The Fund will normally invest at
least 90% of its net assets (including investment borrowings) in the common
stocks and depositary receipts that comprise the Index. The Index is owned,
developed, maintained and sponsored by IPOX(R) Schuster LLC. The Index seeks to
measure the performance of the equity securities of the 100 largest and
typically most liquid initial public offerings ("IPOs") (including spin-offs and
equity carve-outs) of companies that are economically tied to Europe.
-------------------------------------------------------------------------------------------------------------------------
PERFORMANCE
-------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL CUMULATIVE
TOTAL RETURNS TOTAL RETURNS
Inception Inception
6 Months Ended 1 Year Ended (10/4/18) (10/4/18)
3/31/22 3/31/22 to 3/31/22 to 3/31/22
FUND PERFORMANCE
NAV -17.74% -9.98% 8.48% 32.83%
Market Price -17.79% -10.14% 8.48% 32.82%
INDEX PERFORMANCE
IPOX(R)-100 Europe Index -16.58% -8.09% 10.10% 39.86%
MSCI Europe Index -2.12% 3.51% 6.53% 24.69%
-------------------------------------------------------------------------------------------------------------------------
(See Notes to Fund Performance Overview on page 36.)
-----------------------------
IPOX(R) and the Index are registered international trademarks of IPOX(R)
Schuster LLC ("IPOX") and have been licensed for use by First Trust. The Fund is
not sponsored, endorsed, sold or promoted by IPOX, and IPOX makes no
representation regarding the advisability of trading in such Fund. IPOX(R) is an
international trademark of IPOX Schuster LLC. Index of Initial Public Offerings
(IPOX) and IPOX Derivatives Patent No. US 7,698,197.
Page 32
--------------------------------------------------------------------------------
FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------
FIRST TRUST IPOX(R) EUROPE EQUITY OPPORTUNITIES ETF (FPXE) (CONTINUED)
-----------------------------------------------------------
% OF TOTAL
SECTOR CLASSIFICATION LONG-TERM INVESTMENTS
-----------------------------------------------------------
Health Care 22.2%
Information Technology 18.3
Industrials 16.9
Consumer Discretionary 13.5
Financials 9.1
Communication Services 8.7
Utilities 2.6
Real Estate 2.6
Energy 2.4
Materials 2.1
Consumer Staples 1.6
------
Total 100.0%
======
-----------------------------------------------------------
% OF TOTAL
TOP TEN HOLDINGS LONG-TERM INVESTMENTS
-----------------------------------------------------------
Siemens Healthineers AG 8.5%
Adyen N.V. 7.7
Prosus N.V. 4.5
BioNTech SE, ADR 4.2
UCB S.A. 3.5
EQT AB 2.9
Vantage Towers AG 2.7
Universal Music Group N.V. 2.4
Daimler Truck Holding AG 2.3
Volvo Car AB, Class B 2.2
------
Total 40.9%
======
PERFORMANCE OF A $10,000 INITIAL INVESTMENT
OCTOBER 4, 2018 - MARCH 31, 2022
First Trust IPOX(R) Europe IPOX(R)-100 MSCI Europe
Equity Opportunities ETF Europe Index Index
-------------------------- ------------ ------------
10/4/18 $10,000 $10,000 $10,000
3/31/19 9,715 9,769 9,836
9/30/19 10,132 10,255 10,091
3/31/20 9,587 9,800 8,311
9/30/20 13,003 13,352 10,011
3/31/21 14,757 15,217 12,046
9/30/21 16,147 16,766 12,739
3/31/22 13,283 13,986 12,469
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.
Page 33
--------------------------------------------------------------------------------
FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------
FIRST TRUST DOW JONES INTERNATIONAL INTERNET ETF (FDNI)
The First Trust Dow Jones International Internet ETF (the "Fund") seeks
investment results that correspond generally to the price and yield (before the
Fund's fees and expenses) of an equity index called the Dow Jones International
Internet Index (the "Index"). The shares of the Fund are listed and trade on The
Nasdaq Stock Market LLC under the ticker symbol "FDNI." The Fund will normally
invest at least 90% of its net assets (including investment borrowings) in the
common stocks and depositary receipts that comprise the Index. The Index is
developed, maintained and sponsored by S&P Dow Jones Indices LLC and is designed
to measure the performance of securities of non-US issuers whose primary
business focus is Internet-related.
-------------------------------------------------------------------------------------------------------------------------
PERFORMANCE
-------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL CUMULATIVE
TOTAL RETURNS TOTAL RETURNS
Inception Inception
6 Months Ended 1 Year Ended (11/5/18) (11/5/18)
3/31/22 3/31/22 to 3/31/22 to 3/31/22
FUND PERFORMANCE
NAV -34.53% -41.59% 9.86% 37.68%
Market Price -33.42% -41.07% 10.36% 39.80%
INDEX PERFORMANCE
Dow Jones International Internet Index -33.47% -40.43% 11.15% 43.23%
MSCI ACWI ex-USA Information
Technology Index -10.67% -5.35% 20.74% 89.78%
MSCI ACWI ex-USA Index -3.72% -1.48% 8.03% 30.03%
-------------------------------------------------------------------------------------------------------------------------
(See Notes to Fund Performance Overview on page 36.)
-----------------------------
Dow Jones International Internet Index ("Index") is a product of S&P Dow Jones
Indices LLC or its affiliates ("SPDJI") and has been licensed for use by First
Trust. S&P(R) is a registered trademark of Standard & Poor's Financial Services
LLC ("S&P"); Dow Jones(R) is a registered trademark of Dow Jones Trademark
Holdings LLC ("Dow Jones"); and these trademarks have been licensed for use by
SPDJI and sublicensed for certain purposes by First Trust. The Fund is not
sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, or their
respective affiliates and none of such parties make any representation regarding
the advisability of investing in such product nor do they have any liability for
any errors, omissions, or interruptions of the Index.
Page 34
--------------------------------------------------------------------------------
FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------
FIRST TRUST DOW JONES INTERNATIONAL INTERNET ETF (FDNI) (CONTINUED)
-----------------------------------------------------------
% OF TOTAL
SECTOR CLASSIFICATION LONG-TERM INVESTMENTS
-----------------------------------------------------------
Communication Services 39.1%
Consumer Discretionary 38.9
Information Technology 19.9
Health Care 1.6
Financials 0.5
------
Total 100.0%
======
-----------------------------------------------------------
% OF TOTAL
TOP TEN HOLDINGS LONG-TERM INVESTMENTS
-----------------------------------------------------------
Alibaba Group Holding Ltd., ADR 10.8%
Tencent Holdings Ltd. 9.5
Shopify, Inc., Class A 8.0
Meituan, Class B 7.9
Prosus N.V. 4.8
Adyen N.V. 4.8
Atlassian Corp. PLC, Class A 4.3
NAVER Corp. 4.2
Sea Ltd., ADR 4.2
JD.com, Inc., ADR 4.1
------
Total 62.6%
======
PERFORMANCE OF A $10,000 INITIAL INVESTMENT
NOVEMBER 5, 2018 - MARCH 31, 2022
MSCI All Country World
First Trust Dow Jones Dow Jones International ex-USA Information MSCI All Country
International Internet ETF Internet Index Technology Index World ex-USA Index
-------------------------- --------------------- ---------------------- ------------------
11/5/18 $10,000 $10,000 $10,000 $10,000
3/31/19 11,275 11,318 10,863 10,463
9/30/19 10,907 10,977 11,546 10,581
3/31/20 11,865 12,008 11,000 8,834
9/30/20 20,535 20,785 15,539 10,899
3/31/21 23,574 24,042 20,050 13,199
9/30/21 21,033 21,527 21,243 13,505
3/31/22 13,770 14,322 18,976 13,003
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.
Page 35
--------------------------------------------------------------------------------
NOTES TO FUND PERFORMANCE OVERVIEW (UNAUDITED)
--------------------------------------------------------------------------------
Total returns for the periods since inception are calculated from the inception
date of each Fund. "Average Annual Total Returns" represent the average annual
change in value of an investment over the periods indicated. "Cumulative Total
Returns" represent the total change in value of an investment over the periods
indicated. For certain Funds, the total returns would have been lower if certain
fees had not been waived and expenses reimbursed by the Advisor.
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 36
FIRST TRUST EXCHANGE-TRADED FUND II
UNDERSTANDING YOUR FUND EXPENSES
MARCH 31, 2022 (UNAUDITED)
As a shareholder of First Trust STOXX(R) European Select Dividend Index Fund,
First Trust FTSE EPRA/NAREIT Developed Markets Real Estate Index Fund, First
Trust Dow Jones Global Select Dividend Index Fund, First Trust Global Wind
Energy ETF, First Trust Global Engineering and Construction ETF, First Trust
NASDAQ(R) Clean Edge(R) Smart Grid Infrastructure Index Fund, First Trust Indxx
Global Natural Resources Income ETF, First Trust Indxx Global Agriculture ETF,
First Trust BICK Index Fund, First Trust Indxx NextG ETF, First Trust S-Network
Future Vehicles & Technology ETF, First Trust Cloud Computing ETF, First Trust
International Equity Opportunities ETF, First Trust Nasdaq Cybersecurity ETF,
First Trust IPOX(R) Europe Equity Opportunities ETF or First Trust Dow Jones
International Internet 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 (in U.S. dollars) 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 March 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 each Fund's actual expense
ratio and an assumed rate of return of 5% per year before expenses, which is not
each Fund's actual return. The hypothetical account values and expenses may not
be used to estimate the actual ending account balance or expenses you paid for
the period. You may use this information to compare the ongoing costs of
investing in the Funds and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholder reports
of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs such as brokerage
commissions. Therefore, the second line in the table is useful in comparing
ongoing costs only, and will not help you determine the relative total costs of
owning different funds. In addition, if these transactional costs were included,
your costs would have been higher.
------------------------------------------------------------------------------------------------------------------------
ANNUALIZED
EXPENSE RATIO EXPENSES PAID
BEGINNING ENDING BASED ON THE DURING THE
ACCOUNT VALUE ACCOUNT VALUE SIX-MONTH SIX-MONTH
OCTOBER 1, 2021 MARCH 31, 2022 PERIOD (a) PERIOD (b)
------------------------------------------------------------------------------------------------------------------------
FIRST TRUST STOXX(R) EUROPEAN SELECT DIVIDEND INDEX FUND (FDD)
Actual $1,000.00 $ 970.20 0.57% $2.80
Hypothetical (5% return before expenses) $1,000.00 $1,022.09 0.57% $2.87
FIRST TRUST FTSE EPRA/NAREIT DEVELOPED MARKETS REAL ESTATE INDEX FUND (FFR)
Actual $1,000.00 $1,055.60 0.60% $3.07
Hypothetical (5% return before expenses) $1,000.00 $1,021.94 0.60% $3.02
FIRST TRUST DOW JONES GLOBAL SELECT DIVIDEND INDEX FUND (FGD)
Actual $1,000.00 $1,037.30 0.56% $2.84
Hypothetical (5% return before expenses) $1,000.00 $1,022.14 0.56% $2.82
FIRST TRUST GLOBAL WIND ENERGY ETF (FAN)
Actual $1,000.00 $ 944.90 0.60% $2.91
Hypothetical (5% return before expenses) $1,000.00 $1,021.94 0.60% $3.02
FIRST TRUST GLOBAL ENGINEERING AND CONSTRUCTION ETF (FLM)
Actual $1,000.00 $1,014.80 0.70% $3.52
Hypothetical (5% return before expenses) $1,000.00 $1,021.44 0.70% $3.53
Page 37
FIRST TRUST EXCHANGE-TRADED FUND II
UNDERSTANDING YOUR FUND EXPENSES (CONTINUED)
MARCH 31, 2022 (UNAUDITED)
------------------------------------------------------------------------------------------------------------------------
ANNUALIZED
EXPENSE RATIO EXPENSES PAID
BEGINNING ENDING BASED ON THE DURING THE
ACCOUNT VALUE ACCOUNT VALUE SIX-MONTH SIX-MONTH
OCTOBER 1, 2021 MARCH 31, 2022 PERIOD (a) PERIOD (b)
------------------------------------------------------------------------------------------------------------------------
FIRST TRUST NASDAQ(R) CLEAN EDGE(R) SMART GRID INFRASTRUCTURE INDEX FUND (GRID)
Actual $1,000.00 $1,018.80 0.57% $2.87
Hypothetical (5% return before expenses) $1,000.00 $1,022.09 0.57% $2.87
FIRST TRUST INDXX GLOBAL NATURAL RESOURCES INCOME ETF (FTRI)
Actual $1,000.00 $1,317.50 0.70% $4.04
Hypothetical (5% return before expenses) $1,000.00 $1,021.44 0.70% $3.53
FIRST TRUST INDXX GLOBAL AGRICULTURE ETF (FTAG)
Actual $1,000.00 $1,136.30 0.70% $3.73
Hypothetical (5% return before expenses) $1,000.00 $1,021.44 0.70% $3.53
FIRST TRUST BICK INDEX FUND (BICK)
Actual $1,000.00 $ 922.70 0.64% $3.07
Hypothetical (5% return before expenses) $1,000.00 $1,021.74 0.64% $3.23
FIRST TRUST INDXX NEXTG ETF (NXTG)
Actual $1,000.00 $1,007.00 0.70% $3.50
Hypothetical (5% return before expenses) $1,000.00 $1,021.44 0.70% $3.53
FIRST TRUST S-NETWORK FUTURE VEHICLES & TECHNOLOGY ETF (CARZ)
Actual $1,000.00 $1,009.60 0.70% $3.51
Hypothetical (5% return before expenses) $1,000.00 $1,021.44 0.70% $3.53
FIRST TRUST CLOUD COMPUTING ETF (SKYY)
Actual $1,000.00 $ 864.60 0.60% $2.79
Hypothetical (5% return before expenses) $1,000.00 $1,021.94 0.60% $3.02
FIRST TRUST INTERNATIONAL EQUITY OPPORTUNITIES ETF (FPXI)
Actual $1,000.00 $ 765.20 0.70% $3.08
Hypothetical (5% return before expenses) $1,000.00 $1,021.44 0.70% $3.53
FIRST TRUST NASDAQ CYBERSECURITY ETF (CIBR)
Actual $1,000.00 $1,090.20 0.60% $3.13
Hypothetical (5% return before expenses) $1,000.00 $1,021.94 0.60% $3.02
FIRST TRUST IPOX(R) EUROPE EQUITY OPPORTUNITIES ETF (FPXE)
Actual $1,000.00 $ 822.60 0.70% $3.18
Hypothetical (5% return before expenses) $1,000.00 $1,021.44 0.70% $3.53
FIRST TRUST DOW JONES INTERNATIONAL INTERNET ETF (FDNI)
Actual $1,000.00 $ 654.70 0.65% $2.68
Hypothetical (5% return before expenses) $1,000.00 $1,021.69 0.65% $3.28
(a) These expense ratios reflect expense caps for certain Funds. See Note 3 in
the Notes to Financial Statements.
(b) Expenses are equal to the annualized expense ratio as indicated in the
table multiplied by the average account value over the period (October 1,
2021 through March 31, 2022), multiplied by 182/365 (to reflect the
six-month period).
Page 38
FIRST TRUST STOXX(R) EUROPEAN SELECT DIVIDEND INDEX FUND (FDD)
PORTFOLIO OF INVESTMENTS
MARCH 31, 2022 (UNAUDITED)
SHARES DESCRIPTION VALUE
-------------------------------------------------------------
COMMON STOCKS (a) -- 98.8%
BELGIUM -- 6.0%
169,193 Ageas S.A./N.V. (b) $ 8,553,309
433,250 Proximus SADP (b) 8,067,758
--------------
16,621,067
--------------
DENMARK -- 5.7%
5,376 AP Moller - Maersk A/S,
Class A (b) 15,872,074
--------------
FINLAND -- 5.5%
371,368 Fortum OYJ (b) 6,787,552
524,739 Nokian Renkaat OYJ (b) 8,516,452
--------------
15,304,004
--------------
FRANCE -- 22.6%
166,055 BNP Paribas S.A. (b) 9,489,209
88,820 Covivio (b) 7,068,690
876,300 Credit Agricole S.A. (b) 10,470,577
1,056,245 Electricite de France S.A. (b) 9,914,175
720,287 Orange S.A. 8,529,180
285,573 Rubis SCA (b) 8,393,857
278,416 SCOR SE (b) 8,952,638
--------------
62,818,326
--------------
GERMANY -- 9.9%
30,863 Allianz SE (b) 7,370,376
204,232 Evonik Industries AG (b) 5,665,928
138,784 Mercedes-Benz Group AG (b) 9,741,240
209,912 TAG Immobilien AG (b) 4,753,242
--------------
27,530,786
--------------
ITALY -- 8.2%
392,232 Assicurazioni Generali S.p.A. (b) 8,971,241
596,408 Poste Italiane S.p.A. (b) (c) (d) 6,763,665
1,205,647 Snam S.p.A. (b) 6,952,462
--------------
22,687,368
--------------
NETHERLANDS -- 7.1%
220,834 ASR Nederland N.V. (b) 10,309,895
186,804 NN Group N.V. (b) 9,467,047
--------------
19,776,942
--------------
SPAIN -- 4.3%
443,310 ACS Actividades de Construccion
y Servicios S.A. (b) 11,951,459
--------------
SWEDEN -- 2.6%
469,233 Tele2 AB, Class B (b) 7,092,831
--------------
SWITZERLAND -- 5.5%
175,972 Holcim Ltd. (b) 8,558,710
13,665 Zurich Insurance Group AG (b) 6,749,143
--------------
15,307,853
--------------
UNITED KINGDOM -- 21.4%
443,319 GlaxoSmithKline PLC (b) 9,592,045
962,492 IG Group Holdings PLC (b) 10,337,831
3,295,869 Legal & General Group PLC (b) 11,685,112
237,950 Rio Tinto PLC (b) 19,023,229
377,951 SSE PLC (b) 8,635,794
--------------
59,274,011
--------------
TOTAL COMMON STOCKS -- 98.8% 274,236,721
(Cost $265,113,720) --------------
SHARES DESCRIPTION VALUE
-------------------------------------------------------------
MONEY MARKET FUNDS -- 0.0%
77,040 Morgan Stanley Institutional
Liquidity Funds - Treasury
Portfolio - Institutional
Class - 0.19% (e) $ 77,040
(Cost $77,040) --------------
TOTAL INVESTMENTS -- 98.8% 274,313,761
(Cost $265,190,760)
NET OTHER ASSETS AND
LIABILITIES -- 1.2% 3,357,878
--------------
NET ASSETS -- 100.0% $ 277,671,639
==============
(a) Portfolio securities are categorized based upon their country of
incorporation, which can be different from the country categorization of
the Fund's underlying index. For a breakdown of the portfolio securities
by sector, please see the Fund Performance Overview.
(b) This security is fair valued by the Advisor's Pricing Committee in
accordance with procedures adopted by the Trust's Board of Trustees, and
in accordance with provisions of the Investment Company Act of 1940, as
amended. At March 31, 2022, securities noted as such are valued at
$265,707,541 or 95.7% of net assets. Certain of these securities are fair
valued using a factor provided by a third-party pricing service due to the
change in value between the foreign markets' close and the New York Stock
Exchange close exceeding a certain threshold. On days when this threshold
is not exceeded, these securities are typically valued at the last sale
price on the exchange on which they are principally traded.
(c) This security is exempt from registration upon resale under Rule 144A of
the Securities Act of 1933, as amended (the "1933 Act") and may be resold
in transactions exempt from registration, normally to qualified
institutional buyers. This security is not restricted on the foreign
exchange where it trades freely without any additional registration. As
such, it does not require the additional disclosure required of restricted
securities.
(d) This security may be resold to qualified foreign investors and foreign
institutional buyers under Regulation S of the 1933 Act.
(e) Rate shown reflects yield as of March 31, 2022.
% OF TOTAL
CURRENCY EXPOSURE DIVERSIFICATION INVESTMENTS
-------------------------------------------------------------
Euro 64.4%
British Pound Sterling 21.6
Danish Krone 5.8
Swiss Franc 5.6
Swedish Krona 2.6
United States Dollar 0.0*
------
Total 100.0%
======
* Amount is less than 0.1%.
See Notes to Financial Statements Page 39
FIRST TRUST STOXX(R) EUROPEAN SELECT DIVIDEND INDEX FUND (FDD)
PORTFOLIO OF INVESTMENTS (CONTINUED)
MARCH 31, 2022 (UNAUDITED)
------------------------------
VALUATION INPUTS
A summary of the inputs used to value the Fund's investments as of March 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
3/31/2022 PRICES INPUTS INPUTS
--------------- --------------- --------------- ---------------
Common Stocks:
France........................................ $ 62,818,326 $ 8,529,180 $ 54,289,146 $ --
Other Country Categories*..................... 211,418,395 -- 211,418,395 --
Money Market Funds.............................. 77,040 77,040 -- --
--------------- --------------- --------------- ---------------
Total Investments............................... $ 274,313,761 $ 8,606,220 $ 265,707,541 $ --
=============== =============== =============== ===============
* See Portfolio of Investments for country breakout.
Page 40 See Notes to Financial Statements
FIRST TRUST FTSE EPRA/NAREIT DEVELOPED MARKETS REAL ESTATE INDEX FUND (FFR)
PORTFOLIO OF INVESTMENTS
MARCH 31, 2022 (UNAUDITED)
SHARES DESCRIPTION VALUE
-------------------------------------------------------------
COMMON STOCKS (a) -- 98.7%
AUSTRALIA -- 3.7%
8,413 Abacus Property Group (b) $ 20,728
5,738 Arena REIT (b) 20,997
196,196 BGP Holdings
PLC (b) (c) (d) (e) (f) 0
8,721 BWP Trust (b) 26,158
9,376 Centuria Industrial REIT (b) 26,811
8,254 Centuria Office REIT (b) 13,536
11,748 Charter Hall Long Wale REIT (b) 46,600
8,688 Charter Hall Retail REIT (b) 27,242
5,888 Charter Hall Social Infrastructure
REIT (b) 17,233
25,412 Cromwell Property Group (b) 15,724
19,294 Dexus (b) 157,491
3,810 Dexus Industria REIT (b) 9,646
34,363 GPT Group (The) (b) 132,549
4,984 Growthpoint Properties Australia
Ltd. (b) 16,263
2,459 Home Consortium Ltd. (b) 12,665
23,691 HomeCo Daily Needs REIT (g) 25,440
3,408 Hotel Property Investments (b) 9,802
6,570 Ingenia Communities Group (b) 24,803
8,824 Irongate Group (b) 12,588
1,684 Lifestyle Communities Ltd. (b) 21,298
70,557 Mirvac Group (b) 130,831
20,440 National Storage REIT (b) 41,124
93,025 Scentre Group (b) 211,507
19,888 Shopping Centres Australasia
Property Group (b) 43,265
42,785 Stockland (b) 135,586
67,576 Vicinity Centres (b) 93,772
12,942 Waypoint REIT Ltd. (b) 25,760
--------------
1,319,419
--------------
AUSTRIA -- 0.1%
744 CA Immobilien Anlagen AG (b) 23,051
--------------
BELGIUM -- 1.1%
651 Aedifica S.A. (b) 81,867
92 Ascencio 5,242
385 Befimmo S.A. (b) 20,138
568 Cofinimmo S.A. (b) 82,721
423 Intervest Offices & Warehouses
N.V. 12,798
219 Montea N.V. (b) 28,548
74 Nextensa S.A. 5,771
188 Retail Estates N.V. (b) 15,330
2,523 Warehouses De Pauw C.V.A. (b) 108,858
397 Xior Student Housing N.V. (b) (g) 22,175
--------------
383,448
--------------
BERMUDA -- 0.3%
20,817 Hongkong Land Holdings Ltd. (b) 101,710
--------------
CANADA -- 3.0%
2,252 Allied Properties Real Estate
Investment Trust 83,999
1,641 Artis Real Estate Investment Trust 17,156
SHARES DESCRIPTION VALUE
-------------------------------------------------------------
CANADA (CONTINUED)
678 Boardwalk Real Estate
Investment Trust $ 31,884
3,102 Canadian Apartment Properties
REIT 133,122
4,139 Chartwell Retirement Residences 41,054
4,576 Choice Properties Real Estate
Investment Trust 56,699
1,836 Crombie Real Estate Investment
Trust 26,949
3,988 Dream Industrial Real Estate
Investment Trust 51,487
633 Dream Office Real Estate
Investment Trust 14,112
3,879 First Capital Real Estate
Investment Trust 55,696
1,103 Granite Real Estate Investment
Trust 85,035
5,043 H&R Real Estate Investment
Trust 52,643
2,335 InterRent Real Estate Investment
Trust 29,866
2,026 Killam Apartment Real Estate
Investment Trust 34,713
3,453 NorthWest Healthcare Properties
Real Estate Investment Trust 38,034
1,727 Primaris Real Estate Investment
Trust 21,398
5,610 RioCan Real Estate Investment
Trust 113,219
2,320 SmartCentres Real Estate
Investment Trust 60,925
2,902 Summit Industrial Income REIT 51,115
4,331 Tricon Residential, Inc. 68,837
--------------
1,067,943
--------------
CAYMAN ISLANDS -- 1.1%
35,160 CK Asset Holdings Ltd. (b) 240,334
29,227 Wharf Real Estate Investment
Co., Ltd. (b) 144,447
--------------
384,781
--------------
FINLAND -- 0.3%
1,299 Citycon OYJ (b) 9,833
3,495 Kojamo OYJ (b) 83,979
--------------
93,812
--------------
FRANCE -- 0.9%
718 Carmila S.A. (b) 11,306
897 Covivio (b) 71,387
924 Gecina S.A. (b) 116,451
583 ICADE (b) 37,508
3,314 Klepierre S.A. (b) 88,233
1,119 Mercialys S.A. (b) 11,089
--------------
335,974
--------------
GERMANY -- 2.5%
916 Deutsche EuroShop AG (b) 16,880
883 Deutsche Wohnen SE (b) 29,607
1,266 Hamborner REIT AG (b) 13,371
See Notes to Financial Statements Page 41
FIRST TRUST FTSE EPRA/NAREIT DEVELOPED MARKETS REAL ESTATE INDEX FUND (FFR)
PORTFOLIO OF INVESTMENTS (CONTINUED)
MARCH 31, 2022 (UNAUDITED)
SHARES DESCRIPTION VALUE
-------------------------------------------------------------
COMMON STOCKS (a) (CONTINUED)
GERMANY (CONTINUED)
1,307 LEG Immobilien SE (b) $ 148,839
2,262 TAG Immobilien AG (b) 51,221
13,931 Vonovia SE (b) 649,333
--------------
909,251
--------------
GUERNSEY -- 0.2%
4,299 BMO Real Estate Investments
Ltd. (b) 5,297
7,882 Regional REIT Ltd. (g) (h) 9,060
8,801 Schroder Real Estate Investment
Trust Ltd. (b) 6,655
19,311 Sirius Real Estate Ltd. 31,811
7,114 Standard Life Investment
Property Income Trust Ltd. (b) 7,992
--------------
60,815
--------------
HONG KONG -- 3.1%
35,827 Champion REIT (b) 16,264
24,393 Fortune Real Estate Investment
Trust (b) 21,919
36,716 Hang Lung Properties Ltd. (b) 74,004
23,314 Henderson Land Development
Co., Ltd. (b) 96,777
10,861 Hysan Development Co., Ltd. 31,751
37,770 Link REIT 323,055
25,101 New World Development Co.,
Ltd. (b) 101,838
20,873 Prosperity REIT (b) 7,593
64,571 Sino Land Co., Ltd. (b) 83,259
25,312 Sun Hung Kai Properties Ltd. (b) 301,149
19,196 Sunlight Real Estate Investment
Trust (b) 9,434
18,862 Swire Properties Ltd. (b) 46,612
--------------
1,113,655
--------------
IRELAND -- 0.1%
11,872 Hibernia REIT PLC 21,224
7,933 Irish Residential Properties REIT
PLC (b) 12,751
--------------
33,975
--------------
ISRAEL -- 0.2%
2,917 Amot Investments Ltd. (b) 21,855
656 Azrieli Group Ltd. (b) 57,633
--------------
79,488
--------------
ITALY -- 0.0%
1,169 Immobiliare Grande Distribuzione
SIIQ S.p.A. (b) (e) 5,617
--------------
JAPAN -- 9.0%
13 Activia Properties, Inc. (b) 45,321
23 Advance Residence Investment
Corp. (b) 64,916
2,123 AEON Mall Co., Ltd. (b) 28,251
30 AEON REIT Investment Corp. (b) 37,110
12 Comforia Residential REIT,
Inc. (b) 32,331
SHARES DESCRIPTION VALUE
-------------------------------------------------------------
JAPAN (CONTINUED)
9 CRE Logistics REIT, Inc. (b) $ 15,302
38 Daiwa House REIT Investment
Corp. (b) 102,448
5 Daiwa Office Investment
Corp. (b) 31,040
36 Daiwa Securities Living
Investments Corp. (b) 33,966
9 Frontier Real Estate Investment
Corp. (b) 37,438
13 Fukuoka REIT Corp. (b) 17,922
17 Global One Real Estate
Investment Corp. (b) 15,622
76 GLP J-REIT (b) 115,482
12 Hankyu Hanshin REIT, Inc. (b) 15,141
600 Heiwa Real Estate Co., Ltd. (b) 19,432
16 Heiwa Real Estate REIT, Inc. (b) 19,617
4 Hoshino Resorts REIT, Inc. (b) 22,397
7,467 Hulic Co., Ltd. (b) 66,990
23 Hulic REIT, Inc. (b) 31,422
21 Ichigo Office REIT Investment
Corp. (b) 15,187
34 Industrial & Infrastructure Fund
Investment Corp. (b) 51,512
87 Invincible Investment Corp. (b) 30,027
11 Itochu Advance Logistics
Investment Corp. (b) 14,237
22 Japan Excellent, Inc. (b) 24,356
80 Japan Hotel REIT Investment
Corp. (b) 40,786
15 Japan Logistics Fund, Inc. (b) 39,044
123 Japan Metropolitan Fund
Invest (b) 103,788
16 Japan Prime Realty Investment
Corp. (b) 52,375
23 Japan Real Estate Investment
Corp. (b) 120,465
7 Kenedix Office Investment
Corp. (b) 41,908
18 Kenedix Residential Next
Investment Corp. (b) 31,471
10 Kenedix Retail REIT Corp. (b) 22,935
32 LaSalle Logiport REIT (b) 46,027
29 Mirai Corp. (b) 12,560
20,442 Mitsubishi Estate Co., Ltd. (b) 304,391
7 Mitsubishi Estate Logistics REIT
Investment Corp. (b) 27,233
16,453 Mitsui Fudosan Co., Ltd. (b) 352,132
10 Mitsui Fudosan Logistics Park,
Inc. (b) 47,156
28 Mori Hills REIT Investment
Corp. (b) 34,686
18 Mori Trust Sogo REIT, Inc. (b) 21,104
8 Nippon Accommodations Fund,
Inc. (b) 42,055
27 Nippon Building Fund, Inc. (b) 153,166
41 Nippon Prologis REIT, Inc. (b) 119,714
Page 42 See Notes to Financial Statements
FIRST TRUST FTSE EPRA/NAREIT DEVELOPED MARKETS REAL ESTATE INDEX FUND (FFR)
PORTFOLIO OF INVESTMENTS (CONTINUED)
MARCH 31, 2022 (UNAUDITED)
SHARES DESCRIPTION VALUE
-------------------------------------------------------------
COMMON STOCKS (a) (CONTINUED)
JAPAN (CONTINUED)
8 NIPPON REIT Investment
Corp. (b) $ 25,104
2,020 Nomura Real Estate Holdings,
Inc. (b) 48,377
80 Nomura Real Estate Master Fund,
Inc. (b) 105,753
24 NTT UD REIT Investment
Corp. (b) 31,713
4 One REIT, Inc. (b) 9,834
47 Orix JREIT, Inc. (b) 63,738
8 Sankei Real Estate, Inc. (b) 7,345
74 Sekisui House REIT, Inc. (b) 48,957
12 SOSiLA Logistics REIT, Inc. (b) 15,817
29 Star Asia Investment Corp. (b) 14,761
4 Starts Proceed Investment
Corp. (b) 7,810
7,079 Sumitomo Realty & Development
Co., Ltd. (b) 195,914
10 Takara Leben Real Estate
Investment Corp. (b) 10,105
3,550 Tokyo Tatemono Co., Ltd. (b) 53,198
16 Tokyu REIT, Inc. (b) 25,896
53 United Urban Investment
Corp. (b) 61,085
--------------
3,225,870
--------------
JERSEY -- 0.0%
1,419 Phoenix Spree Deutschland
Ltd. (b) 7,097
--------------
LUXEMBOURG -- 0.6%
1,634 ADLER Group S.A. (b) (g) (h) 21,613
20,433 Aroundtown S.A. (b) 116,762
1,725 Grand City Properties S.A. (b) 34,460
450 Shurgard Self Storage S.A. (b) 27,871
--------------
200,706
--------------
MULTI-NATIONAL -- 0.4%
1,840 Unibail-Rodamco-
Westfield (b) (e) 137,830
--------------
NETHERLANDS -- 0.2%
905 Eurocommercial Properties
N.V. (b) 24,810
318 NSI N.V. (b) 13,968
307 Vastned Retail N.V. (b) 9,214
722 Wereldhave N.V. (b) 14,072
--------------
62,064
--------------
NEW ZEALAND -- 0.3%
14,910 Argosy Property Ltd. (b) 14,212
19,569 Goodman Property Trust (b) 31,956
28,141 Kiwi Property Group Ltd. (b) 21,407
23,830 Precinct Properties New Zealand
Ltd. (b) 25,875
8,636 Stride Property Group (b) 11,881
7,647 Vital Healthcare Property
Trust (b) 17,207
--------------
122,538
--------------
SHARES DESCRIPTION VALUE
-------------------------------------------------------------
NORWAY -- 0.0%
983 Entra ASA (b) (g) (h) $ 19,674
--------------
SINGAPORE -- 3.1%
9,900 AIMS APAC REIT (b) 10,126
22,800 ARA LOGOS Logistics Trust (b) 14,277
61,056 Ascendas Real Estate Investment
Trust (b) 131,565
33,776 Ascott Residence Trust (b) 28,034
87,191 CapitaLand Integrated
Commercial Trust (b) 144,244
45,634 Capitaland Investment Ltd. (b) (e) 133,711
14,267 CDL Hospitality Trusts (b) 13,516
8,420 City Developments Ltd. (b) 48,674
5,700 Cromwell European Real Estate
Investment Trust (g) 14,377
47,800 ESR-REIT (b) 15,142
17,300 Far East Hospitality Trust (b) 8,268
19,273 Frasers Centrepoint Trust (b) 34,587
50,464 Frasers Logistics & Commercial
Trust (b) (g) 54,125
22,794 Keppel DC REIT (b) 38,252
15,100 Keppel Pacific Oak US
REIT (b) (g) 11,084
38,493 Keppel REIT (b) 34,536
15,800 Lendlease Global Commercial
REIT (b) 9,008
28,476 Manulife US Real Estate
Investment Trust (g) 19,221
39,266 Mapletree Commercial Trust (b) 54,631
33,182 Mapletree Industrial Trust (b) 65,691
57,377 Mapletree Logistics Trust 78,317
38,300 OUE Commercial Real Estate
Investment Trust (b) 11,832
6,959 Parkway Life Real Estate
Investment Trust (b) 24,091
11,400 Prime US REIT (b) (g) 8,591
16,800 SPH REIT (b) 11,999
25,300 Starhill Global REIT (b) 11,359
37,279 Suntec Real Estate Investment
Trust (b) 47,936
8,815 UOL Group Ltd. (b) 45,642
--------------
1,122,836
--------------
SPAIN -- 0.4%
6,153 Inmobiliaria Colonial Socimi
S.A. (b) 56,091
1,062 Lar Espana Real Estate Socimi
S.A. (b) 5,806
5,946 Merlin Properties Socimi S.A. (b) 69,516
--------------
131,413
--------------
SWEDEN -- 2.3%
803 Atrium Ljungberg AB, Class B (b) 16,451
4,850 Castellum AB (b) 119,745
494 Catena AB (b) 29,763
777 Cibus Nordic Real Estate AB (b) 20,676
12,043 Corem Property Group AB,
Class B (b) 31,257
See Notes to Financial Statements Page 43
FIRST TRUST FTSE EPRA/NAREIT DEVELOPED MARKETS REAL ESTATE INDEX FUND (FFR)
PORTFOLIO OF INVESTMENTS (CONTINUED)
MARCH 31, 2022 (UNAUDITED)
SHARES DESCRIPTION VALUE
-------------------------------------------------------------
COMMON STOCKS (a) (CONTINUED)
SWEDEN (CONTINUED)
1,585 Dios Fastigheter AB (b) $ 17,193
4,619 Fabege AB (b) 68,208
1,804 Fastighets AB Balder,
Class B (b) (e) 118,776
1,922 Hufvudstaden AB, Class A (b) 27,281
1,104 K-fast Holding AB (b) (e) (g) 7,777
496 NP3 Fastigheter AB (b) 16,381
3,256 Nyfosa AB (b) 46,551
1,582 Pandox AB (b) (e) 23,824
966 Platzer Fastigheter Holding AB,
Class B (b) 11,931
3,079 Sagax AB, Class B (b) 93,432
19,804 Samhallsbyggnadsbolaget i
Norden AB (b) 88,400
2,990 Wallenstam AB, Class B (b) 43,412
2,376 Wihlborgs Fastigheter AB (b) 49,702
--------------
830,760
--------------
SWITZERLAND -- 1.0%
260 Allreal Holding AG (b) 55,667
63 Hiag Immobilien Holding AG 7,091
20 Intershop Holding AG 13,831
116 Mobimo Holding AG (b) 37,006
214 Peach Property Group AG (b) 13,186
771 PSP Swiss Property AG (b) 101,257
1,346 Swiss Prime Site AG (b) 132,749
--------------
360,787
--------------
UNITED KINGDOM -- 4.4%
7,016 Abrdn European Logistics
Income PLC (b) (g) (h) 10,117
51,922 Assura PLC 45,630
3,027 Big Yellow Group PLC (b) 61,025
16,573 British Land (The) Co. PLC (b) 114,749
13,175 Capital & Counties Properties
PLC (b) 30,064
10,989 Civitas Social Housing PLC (g) 12,617
2,796 CLS Holdings PLC (b) 7,329
7,292 Custodian REIT PLC 9,751
1,806 Derwent London PLC (b) 75,809
10,512 Empiric Student Property PLC 12,608
13,050 Grainger PLC (b) 49,770
4,541 Great Portland Estates PLC (b) 42,168
79,071 Hammerson PLC 34,298
1,807 Helical PLC (b) 9,692
10,071 Home REIT PLC 16,405
5,220 Impact Healthcare REIT
PLC (b) (g) 8,386
12,772 Land Securities Group PLC (b) 131,038
16,974 LondonMetric Property PLC (b) 61,396
13,174 LXI REIT PLC (b) (g) 25,586
5,418 NewRiver REIT PLC 6,092
23,510 Primary Health Properties PLC (b) 45,679
9,253 PRS REIT (The) PLC (b) 13,054
3,674 Safestore Holdings PLC (b) 64,513
21,458 Segro PLC (b) 377,210
SHARES DESCRIPTION VALUE
-------------------------------------------------------------
UNITED KINGDOM (CONTINUED)
4,986 Shaftesbury PLC (b) $ 40,234
11,113 Target Healthcare REIT PLC (b) 16,353
6,538 Triple Point Social Housing REIT
PLC (b) (g) (h) 8,036
33,451 Tritax Big Box REIT PLC (b) 105,916
14,463 Tritax EuroBox PLC (b) (g) (h) 20,004
5,704 Unite Group (The) PLC (b) 86,401
8,258 Urban Logistics REIT PLC 20,666
2,392 Workspace Group PLC (b) 21,365
--------------
1,583,961
--------------
UNITED STATES -- 60.4%
1,544 Acadia Realty Trust 33,459
1,251 Agree Realty Corp. 83,016
1,288 Alexander & Baldwin, Inc. 29,869
2,981 Alexandria Real Estate Equities,
Inc. 599,926
888 American Assets Trust, Inc. 33,646
2,450 American Campus Communities,
Inc. 137,127
5,268 American Homes 4 Rent, Class A 210,878
4,773 Americold Realty Trust 133,071
2,796 Apartment Income REIT Corp. 149,474
2,687 Apartment Investment and
Management Co., Class A (e) 19,669
3,811 Apple Hospitality REIT, Inc. 68,484
1,185 Armada Hoffler Properties, Inc. 17,301
2,495 AvalonBay Communities, Inc. 619,683
2,794 Boston Properties, Inc. 359,867
3,017 Brandywine Realty Trust 42,660
5,297 Brixmor Property Group, Inc. 136,716
2,798 Broadstone Net Lease, Inc. 60,940
1,769 Camden Property Trust 294,008
1,716 CareTrust REIT, Inc. 33,119
254 Centerspace 24,923
425 Community Healthcare Trust, Inc. 17,939
2,008 Corporate Office Properties Trust 57,308
2,652 Cousins Properties, Inc. 106,849
3,900 CubeSmart 202,917
3,718 DiamondRock Hospitality Co. (e) 37,552
5,025 Digital Realty Trust, Inc. 712,545
8,626 DigitalBridge Group, Inc. (e) 62,107
4,219 Diversified Healthcare Trust 13,501
2,976 Douglas Emmett, Inc. 99,458
6,804 Duke Realty Corp. 395,040
1,539 Easterly Government Properties,
Inc. 32,534
719 EastGroup Properties, Inc. 146,158
2,542 Empire State Realty Trust, Inc.,
Class A 24,962
1,324 EPR Properties 72,436
1,601 Equinix, Inc. 1,187,334
1,934 Equity Commonwealth (e) 54,558
3,166 Equity LifeStyle Properties, Inc. 242,136
6,597 Equity Residential 593,202
2,153 Essential Properties Realty Trust,
Inc. 54,471
Page 44 See Notes to Financial Statements
FIRST TRUST FTSE EPRA/NAREIT DEVELOPED MARKETS REAL ESTATE INDEX FUND (FFR)
PORTFOLIO OF INVESTMENTS (CONTINUED)
MARCH 31, 2022 (UNAUDITED)
SHARES DESCRIPTION VALUE
-------------------------------------------------------------
COMMON STOCKS (a) (CONTINUED)
UNITED STATES (CONTINUED)
1,160 Essex Property Trust, Inc. $ 400,757
2,347 Extra Space Storage, Inc. 482,543
1,396 Federal Realty Investment Trust 170,410
2,302 First Industrial Realty Trust,
Inc. 142,517
1,374 Four Corners Property Trust, Inc. 37,153
4,170 Gaming and Leisure Properties,
Inc. 195,698
724 Getty Realty Corp. 20,721
1,854 Global Net Lease, Inc. 29,163
2,623 Healthcare Realty Trust, Inc. 72,080
3,893 Healthcare Trust of America,
Inc., Class A 122,007
9,648 Healthpeak Properties, Inc. 331,216
1,839 Highwoods Properties, Inc. 84,116
12,653 Host Hotels & Resorts, Inc. 245,848
2,652 Hudson Pacific Properties, Inc. 73,593
3,928 Independence Realty Trust, Inc. 103,856
1,155 Industrial Logistics Properties
Trust 26,184
421 Innovative Industrial Properties,
Inc. 86,473
1,203 InvenTrust Properties Corp. 37,028
10,682 Invitation Homes, Inc. 429,203
2,186 JBG SMITH Properties 63,875
2,112 Kennedy-Wilson Holdings, Inc. 51,512
2,077 Kilroy Realty Corp. 158,724
10,397 Kimco Realty Corp. 256,806
3,859 Kite Realty Group Trust 87,869
1,458 Life Storage, Inc. 204,747
692 LTC Properties, Inc. 26,621
4,969 LXP Industrial Trust 78,013
3,802 Macerich (The) Co. 59,463
10,575 Medical Properties Trust, Inc. 223,556
2,065 Mid-America Apartment
Communities, Inc. 432,514
778 National Health Investors, Inc. 45,910
3,125 National Retail Properties, Inc. 140,438
1,444 National Storage Affiliates Trust 90,625
2,207 Necessity Retail REIT (The), Inc. 17,457
396 NexPoint Residential Trust, Inc. 35,763
851 Office Properties Income Trust 21,896
4,269 Omega Healthcare Investors, Inc. 133,022
1,012 Orion Office REIT, Inc. 14,168
3,319 Paramount Group, Inc. 36,210
4,201 Park Hotels & Resorts, Inc. 82,046
2,311 Pebblebrook Hotel Trust 56,573
3,920 Physicians Realty Trust 68,757
2,205 Piedmont Office Realty Trust,
Inc., Class A 37,970
13,206 Prologis, Inc. 2,132,505
357 PS Business Parks, Inc. 60,005
2,699 Public Storage 1,053,366
10,128 Realty Income Corp. 701,870
3,022 Regency Centers Corp. 215,589
2,113 Retail Opportunity Investments
Corp. 40,971
SHARES DESCRIPTION VALUE
-------------------------------------------------------------
UNITED STATES (CONTINUED)
2,875 Rexford Industrial Realty, Inc. $ 214,446
2,941 RLJ Lodging Trust 41,409
1,489 RPT Realty 20,504
956 Ryman Hospitality Properties,
Inc. (e) 88,688
4,060 Sabra Health Care REIT, Inc. 60,453
369 Safehold, Inc. 20,461
2,918 Service Properties Trust 25,766
5,839 Simon Property Group, Inc. 768,179
3,080 SITE Centers Corp. 51,467
1,211 SL Green Realty Corp. 98,309
2,278 Spirit Realty Capital, Inc. 104,834
3,185 STAG Industrial, Inc. 131,700
4,371 STORE Capital Corp. 127,764
1,844 Summit Hotel Properties, Inc. (e) 18,366
2,050 Sun Communities, Inc. 359,345
3,871 Sunstone Hotel Investors, Inc. (e) 45,600
1,819 Tanger Factory Outlet Centers,
Inc. 31,269
1,311 Terreno Realty Corp. 97,080
5,665 UDR, Inc. 325,001
228 Universal Health Realty Income
Trust 13,308
2,059 Urban Edge Properties 39,327
7,133 Ventas, Inc. 440,534
1,562 Veris Residential, Inc. (e) 27,163
11,258 VICI Properties, Inc. 320,403
3,140 Vornado Realty Trust 142,305
1,505 Washington Real Estate
Investment Trust 38,378
7,796 Welltower, Inc. 749,507
3,382 WP Carey, Inc. 273,401
2,026 Xenia Hotels & Resorts, Inc. (e) 39,082
--------------
21,634,299
--------------
TOTAL COMMON STOCKS
-- 98.7% 35,352,774
(Cost $31,402,176) --------------
INVESTMENT COMPANIES (a) -- 0.2%
GUERNSEY -- 0.2%
8,815 BMO Commercial Property Trust
Ltd. (b) 13,333
9,808 Picton Property Income Ltd. (b) 12,632
13,191 UK Commercial Property REIT
Ltd. (b) 15,237
--------------
TOTAL INVESTMENT COMPANIES
-- 0.2% 41,202
(Cost $41,761) --------------
RIGHTS (a) -- 0.0%
SINGAPORE -- 0.0%
4,582 Lendlease Global Commercial
REIT, expiring
4/12/22 (b) (d) (e) 186
(Cost $0) --------------
See Notes to Financial Statements Page 45
FIRST TRUST FTSE EPRA/NAREIT DEVELOPED MARKETS REAL ESTATE INDEX FUND (FFR)
PORTFOLIO OF INVESTMENTS (CONTINUED)
MARCH 31, 2022 (UNAUDITED)
SHARES DESCRIPTION VALUE
-------------------------------------------------------------
MONEY MARKET FUNDS -- 0.9%
332,788 Morgan Stanley Institutional
Liquidity Funds - Treasury
Portfolio - Institutional
Class - 0.19% (i) $ 332,788
(Cost $332,788) --------------
TOTAL INVESTMENTS -- 99.8% 35,726,950
(Cost $31,776,725)
NET OTHER ASSETS AND
LIABILITIES -- 0.2% 86,265
--------------
NET ASSETS -- 100.0% $ 35,813,215
==============
(a) Portfolio securities are categorized based upon their country of
incorporation, which can be different from the country categorization of
the Fund's underlying index. For a breakdown of the portfolio securities
by sector, please see the Fund Performance Overview.
(b) This security is fair valued by the Advisor's Pricing Committee in
accordance with procedures adopted by the Trust's Board of Trustees, and
in accordance with provisions of the Investment Company Act of 1940, as
amended. At March 31, 2022, securities noted as such are valued at
$11,934,864 or 33.3% of net assets. Certain of these securities are fair
valued using a factor provided by a third-party pricing service due to the
change in value between the foreign markets' close and the New York Stock
Exchange close exceeding a certain threshold. On days when this threshold
is not exceeded, these securities are typically valued at the last sale
price on the exchange on which they are principally traded.
(c) This security's value was determined using significant unobservable inputs
(see Note 2A - Portfolio Valuation in the Notes to Financial Statements).
(d) Pursuant to procedures adopted by the Trust's Board of Trustees, this
security has been determined to be illiquid by First Trust Advisors, L.P.,
the Fund's Advisor.
(e) Non-income producing security.
(f) This is a restricted security which cannot be traded as a result of the
in-specie distribution. It was acquired on August 6, 2009 at a cost of $0
and has a carrying value per share of $0.
(g) This security may be resold to qualified foreign investors and foreign
institutional buyers under Regulation S of the Securities Act of 1933, as
amended (the "1933 Act").
(h) This security is exempt from registration upon resale under Rule 144A of
the 1933 Act and may be resold in transactions exempt from registration,
normally to qualified institutional buyers. This security is not
restricted on the foreign exchange where it trades freely without any
additional registration. As such, it does not require the additional
disclosure required of restricted securities.
(i) Rate shown reflects yield as of March 31, 2022.
% OF TOTAL
CURRENCY EXPOSURE DIVERSIFICATION INVESTMENTS
-------------------------------------------------------------
United States Dollar 61.9%
Japanese Yen 9.0
Euro 6.5
British Pound Sterling 4.7
Hong Kong Dollar 4.2
Australian Dollar 3.7
Singapore Dollar 3.0
Canadian Dollar 3.0
Swedish Krona 2.3
Swiss Franc 1.0
New Zealand Dollar 0.4
Israeli Shekel 0.2
Norwegian Krone 0.1
------
Total 100.0%
======
Page 46 See Notes to Financial Statements
FIRST TRUST FTSE EPRA/NAREIT DEVELOPED MARKETS REAL ESTATE INDEX FUND (FFR)
PORTFOLIO OF INVESTMENTS (CONTINUED)
MARCH 31, 2022 (UNAUDITED)
------------------------------
VALUATION INPUTS
A summary of the inputs used to value the Fund's investments as of March 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
3/31/2022 PRICES INPUTS INPUTS
--------------- --------------- --------------- ---------------
Common Stocks:
Australia..................................... $ 1,319,419 $ 25,440 $ 1,293,979 $ --**
Belgium....................................... 383,448 23,811 359,637 --
Canada........................................ 1,067,943 1,067,943 -- --
Guernsey...................................... 60,815 40,871 19,944 --
Hong Kong..................................... 1,113,655 354,806 758,849 --
Ireland....................................... 33,975 21,224 12,751 --
Singapore..................................... 1,122,836 111,915 1,010,921 --
Switzerland................................... 360,787 20,922 339,865 --
United Kingdom................................ 1,583,961 158,067 1,425,894 --
United States................................. 21,634,299 21,634,299 -- --
Other Country Categories*..................... 6,671,636 -- 6,671,636 --
Investment Companies*........................... 41,202 -- 41,202 --
Rights*......................................... 186 -- 186 --
Money Market Funds.............................. 332,788 332,788 -- --
--------------- --------------- --------------- ---------------
Total Investments............................. $ 35,726,950 $ 23,792,086 $ 11,934,864 $ --**
=============== =============== =============== ===============
* See Portfolio of Investments for country breakout.
** Investment is valued at $0.
Level 3 Common Stocks are fair valued by the Advisor's Pricing Committee and are
footnoted in the Portfolio of Investments. Level 3 Common Stocks values are
based on unobservable and non-quantitative inputs.
See Notes to Financial Statements Page 47
FIRST TRUST DOW JONES GLOBAL SELECT DIVIDEND INDEX FUND (FGD)
PORTFOLIO OF INVESTMENTS
MARCH 31, 2022 (UNAUDITED)
SHARES DESCRIPTION VALUE
-------------------------------------------------------------
COMMON STOCKS (a) -- 98.7%
AUSTRALIA -- 5.9%
1,148,450 Fortescue Metals Group Ltd. (b) $ 17,653,829
1,668,617 Harvey Norman Holdings Ltd. (b) 6,649,486
145,627 JB Hi-Fi Ltd. (b) 5,886,281
976,874 Super Retail Group Ltd. (b) 7,504,190
--------------
37,693,786
--------------
BELGIUM -- 1.0%
129,698 Ageas S.A./N.V. (b) 6,556,696
--------------
BERMUDA -- 1.6%
761,821 CK Infrastructure Holdings
Ltd. (b) 5,092,650
157,268 Lazard Ltd., Class A 5,425,746
--------------
10,518,396
--------------
CANADA -- 9.5%
58,254 Bank of Nova Scotia (The) 4,175,146
98,972 BCE, Inc. 5,486,349
31,228 Canadian Imperial Bank of
Commerce 3,790,624
172,940 Canadian Utilities Ltd., Class A 5,301,013
175,591 Great-West Lifeco, Inc. 5,174,397
137,273 IGM Financial, Inc. 4,850,097
244,696 Labrador Iron Ore Royalty Corp. 8,222,756
121,444 Laurentian Bank of Canada 4,037,286
253,091 Manulife Financial Corp. 5,397,277
163,558 Power Corp. of Canada 5,063,148
91,821 TC Energy Corp. 5,178,818
151,535 TELUS Corp. 3,958,831
--------------
60,635,742
--------------
CAYMAN ISLANDS -- 0.8%
652,181 CK Hutchison Holdings Ltd. (b) 4,769,015
--------------
DENMARK -- 1.9%
4,151 AP Moller - Maersk A/S,
Class A (b) 12,255,390
--------------
FINLAND -- 0.9%
316,684 Fortum OYJ (b) 5,788,084
--------------
FRANCE -- 1.9%
193,041 Nexity S.A. (b) 6,796,085
109,679 TotalEnergies SE (b) 5,549,738
--------------
12,345,823
--------------
GERMANY -- 2.7%
23,073 Allianz SE (b) 5,510,050
91,698 BASF SE (b) 5,232,368
253,294 Freenet AG (b) 6,778,437
--------------
17,520,855
--------------
HONG KONG -- 5.8%
1,252,116 BOC Hong Kong Holdings
Ltd. (b) 4,711,444
1,334,419 Henderson Land Development
Co., Ltd. (b) 5,539,206
2,218,105 Hysan Development Co., Ltd. 6,484,445
1,673,424 New World Development Co.,
Ltd. (b) 6,789,332
15,016,075 PCCW Ltd. (b) 8,439,298
SHARES DESCRIPTION VALUE
-------------------------------------------------------------
HONG KONG (CONTINUED)
828,914 Swire Pacific Ltd., Class A (b) $ 5,040,727
--------------
37,004,452
--------------
ISRAEL -- 0.8%
276,791 Plus500 Ltd. (b) 5,107,278
--------------
ITALY -- 5.1%
2,842,356 A2A S.p.A. (b) 4,868,332
1,246,842 Anima Holding S.p.A. (b) (c) (d) 5,562,849
189,054 Azimut Holding S.p.A. (b) 4,382,972
311,776 Eni S.p.A. (b) 4,546,724
428,565 Poste Italiane S.p.A. (b) (c) (d) 4,860,213
2,824,063 UnipolSai Assicurazioni
S.p.A. (b) 8,348,742
--------------
32,569,832
--------------
JAPAN -- 8.1%
264,254 Aozora Bank Ltd. (b) 5,567,626
1,051,100 Daiwa Securities Group, Inc. (b) 5,945,767
392,000 Haseko Corp. (b) 4,502,440
393,770 Japan Tobacco, Inc. (b) 6,724,640
359,100 Mitsui OSK Lines Ltd. (b) 9,975,361
130,600 MS&AD Insurance Group
Holdings, Inc. (b) 4,240,313
942,800 Resona Holdings, Inc. (b) 4,015,706
347,600 Sumitomo Corp. (b) 6,019,966
154,400 Sumitomo Mitsui Financial
Group, Inc. (b) 4,877,246
--------------
51,869,065
--------------
JERSEY -- 1.5%
3,740,954 Centamin PLC (b) 4,461,168
137,218 Janus Henderson Group PLC 4,805,374
--------------
9,266,542
--------------
LUXEMBOURG -- 0.5%
78,423 APERAM S.A. (b) 3,466,072
--------------
NETHERLANDS -- 3.8%
143,016 ASR Nederland N.V. (b) 6,676,870
45,701 LyondellBasell Industries N.V.,
Class A 4,698,977
120,724 NN Group N.V. (b) 6,118,177
414,453 SBM Offshore N.V. (b) 6,570,186
--------------
24,064,210
--------------
NEW ZEALAND -- 1.0%
1,963,185 Spark New Zealand Ltd. (b) 6,212,738
--------------
SOUTH KOREA -- 13.9%
1,159,870 BNK Financial Group, Inc. (b) 7,550,551
120,989 DB Insurance Co., Ltd. (b) 6,966,734
901,393 DGB Financial Group, Inc. (b) 6,889,386
171,900 Hana Financial Group, Inc. (b) 6,837,008
80,811 Hyundai Motor Co. (Preference
Shares) (b) 5,743,135
842,754 Industrial Bank of Korea (b) 7,489,065
110,743 KB Financial Group, Inc. (b) 5,549,765
89,280 KT&G Corp. (b) 5,939,804
644,489 NH Investment & Securities Co.,
Ltd. (b) 6,026,324
25,807 POSCO Holdings, Inc. (b) 6,190,421
Page 48 See Notes to Financial Statements
FIRST TRUST DOW JONES GLOBAL SELECT DIVIDEND INDEX FUND (FGD)
PORTFOLIO OF INVESTMENTS (CONTINUED)
MARCH 31, 2022 (UNAUDITED)
SHARES DESCRIPTION VALUE
-------------------------------------------------------------
COMMON STOCKS (a) (CONTINUED)
SOUTH KOREA (CONTINUED)
41,636 Samsung Fire & Marine
Insurance Co., Ltd. (b) $ 7,498,017
262,126 Samsung Securities Co., Ltd. (b) 9,001,459
557,726 Woori Financial Group, Inc. (b) 6,990,374
--------------
88,672,043
--------------
SPAIN -- 8.1%
306,011 ACS Actividades de Construccion
y Servicios S.A. (b) 8,249,933
424,416 Cia de Distribucion Integral
Logista Holdings S.A. (b) 7,762,891
395,478 Enagas S.A. (b) 8,782,148
4,138,295 Mapfre S.A. (b) 8,655,737
174,745 Naturgy Energy Group S.A. (b) 5,235,296
274,243 Red Electrica Corp., S.A. (b) 5,630,522
1,547,417 Telefonica S.A. (b) 7,499,223
--------------
51,815,750
--------------
SWEDEN -- 1.0%
1,549,741 Telia Co., AB (b) 6,214,016
--------------
SWITZERLAND -- 2.8%
37,354 Helvetia Holding AG (b) 4,876,635
74,276 Swiss Re AG (b) 7,070,626
11,366 Zurich Insurance Group AG (b) 5,613,667
--------------
17,560,928
--------------
UNITED KINGDOM -- 11.7%
2,721,778 abrdn PLC (b) 7,621,221
345,225 Antofagasta PLC (b) 7,501,350
2,171,527 Ashmore Group PLC (b) 6,595,390
160,276 British American Tobacco
PLC (b) 6,731,126
2,153,962 Direct Line Insurance Group
PLC (b) 7,761,504
3,188,725 Jupiter Fund Management
PLC (b) 8,625,065
1,818,080 Legal & General Group PLC (b) 6,445,787
916,644 Phoenix Group Holdings PLC (b) 7,344,030
126,024 Rio Tinto PLC (b) 10,075,156
1,591,439 Synthomer PLC (b) 6,359,014
--------------
75,059,643
--------------
UNITED STATES -- 8.4%
133,091 Altria Group, Inc. 6,954,005
194,801 AT&T, Inc. 4,603,148
255,262 Camping World Holdings, Inc.,
Class A 7,134,573
170,567 H&R Block, Inc. 4,441,565
878,941 Lumen Technologies, Inc. 9,905,665
398,156 Northwest Bancshares, Inc. 5,379,087
38,891 Prudential Financial, Inc. 4,595,749
99,056 Universal Corp. 5,752,182
150,919 Unum Group 4,755,458
--------------
53,521,432
--------------
TOTAL COMMON STOCKS
-- 98.7% 630,487,788
(Cost $607,352,603) --------------
SHARES DESCRIPTION VALUE
-------------------------------------------------------------
MONEY MARKET FUNDS -- 0.2%
1,315,239 Morgan Stanley Institutional
Liquidity Funds - Treasury
Portfolio - Institutional
Class - 0.19% (e) $ 1,315,239
(Cost $1,315,239) --------------
TOTAL INVESTMENTS -- 98.9% 631,803,027
(Cost $608,667,842)
NET OTHER ASSETS AND
LIABILITIES -- 1.1% 7,335,332
--------------
NET ASSETS -- 100.0% $ 639,138,359
==============
(a) Portfolio securities are categorized based upon their country of
incorporation, which can be different from the country categorization of
the Fund's underlying index. For a breakdown of the portfolio securities
by sector, please see the Fund Performance Overview.
(b) This security is fair valued by the Advisor's Pricing Committee in
accordance with procedures adopted by the Trust's Board of Trustees, and
in accordance with provisions of the Investment Company Act of 1940, as
amended. At March 31, 2022, securities noted as such are valued at
$494,916,072 or 77.4% of net assets. Certain of these securities are fair
valued using a factor provided by a third-party pricing service due to the
change in value between the foreign markets' close and the New York Stock
Exchange close exceeding a certain threshold. On days when this threshold
is not exceeded, these securities are typically valued at the last sale
price on the exchange on which they are principally traded.
(c) This security is exempt from registration upon resale under Rule 144A of
the Securities Act of 1933, as amended (the "1933 Act") and may be resold
in transactions exempt from registration, normally to qualified
institutional buyers. This security is not restricted on the foreign
exchange where it trades freely without any additional registration. As
such, it does not require the additional disclosure required of restricted
securities.
(d) This security may be resold to qualified foreign investors and foreign
institutional buyers under Regulation S of the 1933 Act.
(e) Rate shown reflects yield as of March 31, 2022.
See Notes to Financial Statements Page 49
FIRST TRUST DOW JONES GLOBAL SELECT DIVIDEND INDEX FUND (FGD)
PORTFOLIO OF INVESTMENTS (CONTINUED)
MARCH 31, 2022 (UNAUDITED)
% OF TOTAL
CURRENCY EXPOSURE DIVERSIFICATION INVESTMENTS
-------------------------------------------------------------
Euro 23.7%
South Korean Won 14.0
British Pound Sterling 13.4
United States Dollar 11.0
Canadian Dollar 9.6
Japanese Yen 8.2
Hong Kong Dollar 7.4
Australian Dollar 6.0
Swiss Franc 2.8
Danish Krone 1.9
Swedish Krona 1.0
New Zealand Dollar 1.0
------
Total 100.0%
======
------------------------------
VALUATION INPUTS
A summary of the inputs used to value the Fund's investments as of March 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
3/31/2022 PRICES INPUTS INPUTS
--------------- --------------- --------------- ---------------
Common Stocks:
Bermuda....................................... $ 10,518,396 $ 5,425,746 $ 5,092,650 $ --
Canada........................................ 60,635,742 60,635,742 -- --
Hong Kong..................................... 37,004,452 6,484,445 30,520,007 --
Jersey........................................ 9,266,542 4,805,374 4,461,168 --
Netherlands................................... 24,064,210 4,698,977 19,365,233 --
United States................................. 53,521,432 53,521,432 -- --
Other Country Categories*..................... 435,477,014 -- 435,477,014 --
Money Market Funds.............................. 1,315,239 1,315,239 -- --
--------------- --------------- --------------- ---------------
Total Investments............................... $ 631,803,027 $ 136,886,955 $ 494,916,072 $ --
=============== =============== =============== ===============
* See Portfolio of Investments for country breakout.
Page 50 See Notes to Financial Statements
FIRST TRUST GLOBAL WIND ENERGY ETF (FAN)
PORTFOLIO OF INVESTMENTS
MARCH 31, 2022 (UNAUDITED)
SHARES DESCRIPTION VALUE
-------------------------------------------------------------
COMMON STOCKS (a) -- 99.7%
BERMUDA -- 0.7%
23,518,460 Concord New Energy Group
Ltd. (b) $ 2,175,895
--------------
CANADA -- 15.6%
322,649 Boralex, Inc., Class A 10,457,735
679,857 Innergex Renewable Energy,
Inc. (c) 10,811,148
724,106 Northland Power, Inc. 24,072,188
394,852 TransAlta Renewables, Inc. 5,836,792
--------------
51,177,863
--------------
CAYMAN ISLANDS -- 0.3%
1,572,608 China High Speed Transmission
Equipment Group Co.,
Ltd. (b) (d) 948,627
--------------
CHINA -- 9.8%
7,678,266 China Datang Corp. Renewable
Power Co., Ltd., Class H (b) 3,152,065
10,881,192 China Longyuan Power Group
Corp., Ltd., Class H (b) 24,458,148
2,263,703 China Suntien Green Energy
Corp., Ltd., Class H (b) 1,266,752
2,346,461 Xinjiang Goldwind Science &
Technology Co., Ltd.,
Class H (b) 3,514,071
--------------
32,391,036
--------------
DENMARK -- 15.0%
164,028 Cadeler A/S (b) (d) 625,679
202,011 Orsted A/S (b) (e) (f) 25,286,021
799,870 Vestas Wind Systems A/S (b) 23,464,043
--------------
49,375,743
--------------
FRANCE -- 2.5%
409,801 Engie S.A. (b) 5,387,683
67,328 Neoen S.A. (b) (d) (e) (f) 2,860,276
--------------
8,247,959
--------------
GERMANY -- 7.0%
24,556 Energiekontor AG (b) 2,362,128
361,070 Nordex SE (b) (c) (d) 6,252,777
135,934 PNE AG (b) 1,572,746
140,927 RWE AG (b) 6,136,350
75,303 SGL Carbon SE (b) (d) 467,753
272,844 Siemens Energy AG (b) 6,207,435
--------------
22,999,189
--------------
GREECE -- 1.1%
192,847 Terna Energy S.A. (b) 3,533,281
--------------
ITALY -- 5.1%
886,050 Enel S.p.A. (b) 5,915,971
431,177 Falck Renewables S.p.A. 4,207,070
198,071 Prysmian S.p.A. (b) 6,721,814
--------------
16,844,855
--------------
JAPAN -- 1.8%
1,146,610 Toray Industries, Inc. (b) 5,961,875
--------------
SHARES DESCRIPTION VALUE
-------------------------------------------------------------
PORTUGAL -- 2.0%
1,339,836 EDP - Energias de Portugal
S.A. (b) $ 6,594,559
--------------
SOUTH KOREA -- 1.9%
18,782 CS Bearing Co., Ltd. (b) (d) 296,629
96,715 CS Wind Corp. (b) 5,012,857
38,231 Dongkuk Structures &
Construction Co., Ltd. (b) 185,813
393,411 Unison Co., Ltd. (b) (d) 920,462
--------------
6,415,761
--------------
SPAIN -- 15.3%
33,031 Acciona S.A. (b) (c) 6,313,423
823,479 EDP Renovaveis S.A. (b) 21,172,366
297,333 Endesa S.A. (b) 6,482,975
574,366 Iberdrola S.A. (b) 6,277,843
564,114 Siemens Gamesa Renewable
Energy S.A. (b) (d) 9,894,185
--------------
50,140,792
--------------
SWEDEN -- 2.0%
80,386 Eolus Vind AB, Class B (b) (c) 824,772
352,585 SKF AB, Class B (b) (c) 5,749,238
--------------
6,574,010
--------------
SWITZERLAND -- 3.6%
193,427 ABB Ltd. (b) 6,274,911
26,847 BKW AG (b) 3,362,649
1,289 Gurit Holding AG (b) 2,064,784
--------------
11,702,344
--------------
UNITED KINGDOM -- 3.1%
428,235 ReNew Energy Global PLC,
Class A (c) (d) 3,520,092
287,161 SSE PLC (b) 6,561,335
--------------
10,081,427
--------------
UNITED STATES -- 12.9%
112,455 Alliant Energy Corp. 7,026,188
30,844 American Superconductor
Corp. (d) 234,723
54,949 Arcosa, Inc. 3,145,830
88,734 Clearway Energy, Inc., Class C 3,239,678
65,406 Duke Energy Corp. 7,303,234
68,761 General Electric Co. 6,291,632
96,649 Hexcel Corp. 5,747,716
64,194 Infrastructure and Energy
Alternatives, Inc. (d) 760,699
83,907 NextEra Energy, Inc. 7,107,762
118,275 TPI Composites, Inc. (d) 1,662,947
--------------
42,520,409
--------------
TOTAL COMMON STOCKS
-- 99.7% 327,685,625
(Cost $323,208,734) --------------
See Notes to Financial Statements Page 51
FIRST TRUST GLOBAL WIND ENERGY ETF (FAN)
PORTFOLIO OF INVESTMENTS (CONTINUED)
MARCH 31, 2022 (UNAUDITED)
PRINCIPAL
VALUE DESCRIPTION VALUE
-------------------------------------------------------------
REPURCHASE AGREEMENTS -- 6.6%
$ 667,471 Bank of America Corp., 0.26% (g),
dated 03/31/22, due 04/01/22,
with a maturity value of
$667,476. Collateralized by
U.S. Treasury Securities,
interest rate of 0.00%, due
11/15/42 to 05/15/50. The
value of the collateral
including accrued interest is
$680,820. (h) $ 667,471
10,434,895 Citigroup, Inc., 0.30% (g),
dated 03/31/22, due 04/01/22,
with a maturity value of
$10,434,982. Collateralized by
U.S. Treasury Securities,
interest rates of 0.00% to
7.13%, due 04/07/22 to
02/15/50. The value of the
collateral including accrued
interest is $10,643,593. (h) 10,434,895
10,434,895 JPMorgan Chase & Co., 0.28% (g),
dated 03/31/22, due 04/01/22,
with a maturity value of
$10,434,976. Collateralized by
U.S. Treasury Securities,
interest rates of 1.88% to
2.88%, due 08/31/24 to
08/15/49. The value of the
collateral including accrued
interest is $10,643,593. (h) 10,434,895
--------------
TOTAL REPURCHASE AGREEMENTS
-- 6.6% 21,537,261
(Cost $21,537,261) --------------
TOTAL INVESTMENTS -- 106.3% 349,222,886
(Cost $344,745,995)
NET OTHER ASSETS AND
LIABILITIES -- (6.3)% (20,648,391)
--------------
NET ASSETS -- 100.0% $ 328,574,495
==============
(a) Portfolio securities are categorized based upon their country of
incorporation, which can be different from the country categorization of
the Fund's underlying index. For a breakdown of the portfolio securities
by sector, please see the Fund Performance Overview.
(b) This security is fair valued by the Advisor's Pricing Committee in
accordance with procedures adopted by the Trust's Board of Trustees, and
in accordance with provisions of the Investment Company Act of 1940, as
amended. At March 31, 2022, securities noted as such are valued at
$226,260,191 or 68.9% of net assets. Certain of these securities are fair
valued using a factor provided by a third-party pricing service due to the
change in value between the foreign markets' close and the New York Stock
Exchange close exceeding a certain threshold. On days when this threshold
is not exceeded, these securities are typically valued at the last sale
price on the exchange on which they are principally traded.
(c) All or a portion of this security is on loan (see Note 2E - Securities
Lending in the Notes to Financial Statements). The remaining contractual
maturity of all of the securities lending transactions is overnight and
continuous. The aggregate value of such securities is $20,428,434 and the
total value of the collateral held by the Fund is $21,537,261.
(d) Non-income producing security.
(e) This security is exempt from registration upon resale under Rule 144A of
the Securities Act of 1933, as amended (the "1933 Act") and may be resold
in transactions exempt from registration, normally to qualified
institutional buyers. This security is not restricted on the foreign
exchange where it trades freely without any additional registration. As
such, it does not require the additional disclosure required of restricted
securities.
(f) This security may be resold to qualified foreign investors and foreign
institutional buyers under Regulation S of the 1933 Act.
(g) Rate shown reflects yield as of March 31, 2022.
(h) This security serves as collateral for securities on loan.
Page 52 See Notes to Financial Statements
FIRST TRUST GLOBAL WIND ENERGY ETF (FAN)
PORTFOLIO OF INVESTMENTS (CONTINUED)
MARCH 31, 2022 (UNAUDITED)
---------------------------------
OFFSETTING ASSETS AND LIABILITIES
-------------------------------------------------------------
Offsetting assets and liabilities requires entities to disclose both gross and
net information about instruments and transactions eligible for offset, and to
disclose instruments and transactions subject to master netting or similar
agreements (see Note 2C - Offsetting on the Statements of Assets and Liabilities
in the Notes to Financial Statements).
The Fund's loaned securities were all subject to an enforceable Securities
Lending Agency Agreement. Securities lent in accordance with the Securities
Lending Agency Agreement on a gross basis were as follows:
SECURITIES LENDING AGENCY AGREEMENT
-------------------------------------------------------------
Total gross amount presented on the
Statements of Assets and Liabilities(1) $ 20,428,434
Non-cash Collateral(2) (20,428,434)
--------------
Net Amount $ --
==============
(1) The amount presented on the Statements of Assets and Liabilities, which is
included in "Investments, at value," is not offset and is shown on a gross
basis.
(2) At March 31, 2022, the value of the collateral received from each borrower
exceeded the value of the related securities loaned. This amount is
disclosed on the Portfolio of Investments.
The Fund's investments in repurchase agreements were all subject to an
enforceable Master Repurchase Agreement. Repurchase Agreements on a gross basis
were as follows:
REPURCHASE AGREEMENTS
-------------------------------------------------------------
Total gross amount presented on the
Statements of Assets and Liabilities(3) $ 21,537,261
Non-cash Collateral(4) (21,537,261)
--------------
Net Amount $ --
==============
(3) The amount is included in "Investments, at value" on the Statements of
Assets and Liabilities.
(4) At March 31, 2022, the value of the collateral received from each seller
exceeded the value of the repurchase agreements.
% OF TOTAL
CURRENCY EXPOSURE DIVERSIFICATION INVESTMENTS
-------------------------------------------------------------
Euro 31.0%
United States Dollar 19.3
Canadian Dollar 14.7
Danish Krone 14.0
Hong Kong Dollar 10.2
Swiss Franc 3.3
Swedish Krona 1.9
British Pound Sterling 1.9
South Korean Won 1.8
Japanese Yen 1.7
Norwegian Krone 0.2
------
Total 100.0%
======
See Notes to Financial Statements Page 53
FIRST TRUST GLOBAL WIND ENERGY ETF (FAN)
PORTFOLIO OF INVESTMENTS (CONTINUED)
MARCH 31, 2022 (UNAUDITED)
------------------------------
VALUATION INPUTS
A summary of the inputs used to value the Fund's investments as of March 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
3/31/2022 PRICES INPUTS INPUTS
--------------- --------------- --------------- ---------------
Common Stocks:
Canada........................................ $ 51,177,863 $ 51,177,863 $ -- $ --
Italy......................................... 16,844,855 4,207,070 12,637,785 --
United Kingdom................................ 10,081,427 3,520,092 6,561,335 --
United States................................. 42,520,409 42,520,409 -- --
Other Country Categories*..................... 207,061,071 -- 207,061,071 --
Repurchase Agreements........................... 21,537,261 -- 21,537,261 --
--------------- --------------- --------------- ---------------
Total Investments............................... $ 349,222,886 $ 101,425,434 $ 247,797,452 $ --
=============== =============== =============== ===============
* See Portfolio of Investments for country breakout.
Page 54 See Notes to Financial Statements
FIRST TRUST GLOBAL ENGINEERING AND CONSTRUCTION ETF (FLM)
PORTFOLIO OF INVESTMENTS
MARCH 31, 2022 (UNAUDITED)
SHARES DESCRIPTION VALUE
-------------------------------------------------------------
COMMON STOCKS (a) -- 99.3%
AUSTRALIA -- 3.3%
7,594 CIMIC Group Ltd. (b) (c) $ 124,596
50,652 Downer EDI Ltd. (b) 203,218
3,706 Monadelphous Group Ltd. (b) 30,297
--------------
358,111
--------------
CANADA -- 4.9%
5,358 Aecon Group, Inc. 72,731
9,501 SNC-Lavalin Group, Inc. 228,757
4,586 Stantec, Inc. 230,043
--------------
531,531
--------------
CAYMAN ISLANDS -- 1.9%
152,326 China State Construction
International Holdings Ltd. (b) 201,996
--------------
CHINA -- 2.1%
402,901 China Railway Group Ltd.,
Class H (b) 224,404
--------------
FINLAND -- 0.1%
2,496 YIT OYJ (b) 9,431
--------------
FRANCE -- 9.9%
9,719 Bouygues S.A. (b) 339,235
3,407 Eiffage S.A. (b) 349,670
3,807 Vinci S.A. (b) 388,973
--------------
1,077,878
--------------
GERMANY -- 1.4%
2,308 HOCHTIEF AG (b) 155,474
--------------
IRELAND -- 2.6%
2,902 Kingspan Group PLC (b) 283,663
--------------
ITALY -- 0.5%
33,117 Webuild S.p.A. (b) (c) 58,718
--------------
JAPAN -- 27.1%
18,800 Chiyoda Corp. (b) (d) 71,922
11,100 COMSYS Holdings Corp. (b) 241,714
9,300 EXEO Group, Inc. (b) 171,508
17,200 INFRONEER Holdings, Inc. (b) 146,797
25,700 JGC Holdings Corp. (b) 307,181
25,200 Kajima Corp. (b) 306,601
2,600 Kandenko Co., Ltd. (b) 17,738
9,400 Kinden Corp. (b) 121,150
3,470 Kumagai Gumi Co., Ltd. (b) 76,808
6,220 Nishimatsu Construction Co.,
Ltd. (b) 186,754
36,100 Obayashi Corp. (b) 264,964
1,300 Okumura Corp. (b) 31,554
25,900 Penta-Ocean Construction Co.,
Ltd. (b) 129,208
2,800 Raito Kogyo Co., Ltd. (b) 44,705
40,100 Shimizu Corp. (b) 240,646
3,900 SHO-BOND Holdings Co.,
Ltd. (b) 169,682
11,000 Taisei Corp. (b) 317,560
17,900 Toda Corp. (b) 108,417
--------------
2,954,909
--------------
SHARES DESCRIPTION VALUE
-------------------------------------------------------------
NETHERLANDS -- 4.4%
4,751 Arcadis N.V. (b) $ 213,465
4,826 Boskalis Westminster (b) 172,811
31,323 Koninklijke BAM Groep
N.V. (b) (d) 94,502
--------------
480,778
--------------
NORWAY -- 0.4%
3,033 Veidekke ASA (b) 42,131
--------------
PHILIPPINES -- 0.6%
9,730 Manila Electric Co. (b) 70,142
--------------
SOUTH KOREA -- 3.9%
24,614 Daewoo Engineering &
Construction Co., Ltd. (b) (d) 141,083
7,603 GS Engineering & Construction
Corp. (b) 288,721
--------------
429,804
--------------
SPAIN -- 4.2%
12,170 ACS Actividades de Construccion
y Servicios S.A. (b) 328,098
52,504 Sacyr S.A. (b) 126,778
794 Tecnicas Reunidas S.A. (b) (d) 6,764
--------------
461,640
--------------
SWEDEN -- 4.6%
5,120 NCC AB, Class B (b) 72,741
13,644 Peab AB, Class B (b) 137,227
12,914 Skanska AB, Class B (b) 288,915
--------------
498,883
--------------
UNITED KINGDOM -- 1.2%
37,971 Balfour Beatty PLC (b) 127,952
--------------
UNITED STATES -- 26.2%
4,932 AECOM 378,827
2,777 Dycom Industries, Inc. (d) 264,537
2,383 EMCOR Group, Inc. 268,397
12,302 Fluor Corp. (d) 352,944
4,611 Granite Construction, Inc. 151,241
2,472 Jacobs Engineering Group, Inc. 340,666
6,884 KBR, Inc. 376,761
3,353 MasTec, Inc. (d) 292,046
3,042 Quanta Services, Inc. 400,358
2,403 Tutor Perini Corp. (d) 25,953
--------------
2,851,730
--------------
TOTAL COMMON STOCKS
-- 99.3% 10,819,175
(Cost $9,631,015) --------------
WARRANTS (a) -- 0.0%
ITALY -- 0.0%
1,985 Webuild S.p.A., expiring
8/2/30 (b) (c) (d) (e) 1,056
(Cost $0) --------------
See Notes to Financial Statements Page 55
FIRST TRUST GLOBAL ENGINEERING AND CONSTRUCTION ETF (FLM)
PORTFOLIO OF INVESTMENTS (CONTINUED)
MARCH 31, 2022 (UNAUDITED)
SHARES DESCRIPTION VALUE
-------------------------------------------------------------
MONEY MARKET FUNDS -- 2.7%
290,996 Goldman Sachs Financial Square
Treasury Obligations Fund -
Institutional Class -
0.20% (f) (g) $ 290,996
(Cost $290,996) --------------
PRINCIPAL
VALUE DESCRIPTION VALUE
-------------------------------------------------------------
REPURCHASE AGREEMENTS -- 0.3%
$ 32,457 BNP Paribas S.A., 0.24% (f),
dated 03/31/22, due 04/01/22,
with a maturity value of
$32,457. Collateralized by
U.S. Treasury Note, interest
rate of 0.25%, due 09/30/25.
The value of the collateral
including accrued interest is
$33,069. (g) 32,457
(Cost $32,457) --------------
TOTAL INVESTMENTS -- 102.3% 11,143,684
(Cost $9,954,468)
NET OTHER ASSETS AND
LIABILITIES -- (2.3)% (248,607)
--------------
NET ASSETS -- 100.0% $ 10,895,077
==============
(a) Portfolio securities are categorized based upon their country of
incorporation, which can be different from the country categorization of
the Fund's underlying index. For a breakdown of the portfolio securities
by sector, please see the Fund Performance Overview.
(b) This security is fair valued by the Advisor's Pricing Committee in
accordance with procedures adopted by the Trust's Board of Trustees, and
in accordance with provisions of the Investment Company Act of 1940, as
amended. At March 31, 2022, securities noted as such are valued at
$7,436,970 or 68.3% of net assets. Certain of these securities are fair
valued using a factor provided by a third-party pricing service due to the
change in value between the foreign markets' close and the New York Stock
Exchange close exceeding a certain threshold. On days when this threshold
is not exceeded, these securities are typically valued at the last sale
price on the exchange on which they are principally traded.
(c) All or a portion of this security is on loan (see Note 2E - Securities
Lending in the Notes to Financial Statements). The remaining contractual
maturity of all of the securities lending transactions is overnight and
continuous. The aggregate value of such securities is $126,607 and the
total value of the collateral held by the Fund is $323,453.
(d) Non-income producing security.
(e) Pursuant to procedures adopted by the Trust's Board of Trustees, this
security has been determined to be illiquid by First Trust Advisors, L.P.,
the Fund's Advisor.
(f) Rate shown reflects yield as of March 31, 2022.
(g) This security serves as collateral for securities on loan.
---------------------------------
OFFSETTING ASSETS AND LIABILITIES
-------------------------------------------------------------
Offsetting assets and liabilities requires entities to disclose both gross and
net information about instruments and transactions eligible for offset, and to
disclose instruments and transactions subject to master netting or similar
agreements (see Note 2C - Offsetting on the Statements of Assets and Liabilities
in the Notes to Financial Statements).
The Fund's loaned securities were all subject to an enforceable Securities
Lending Agency Agreement. Securities lent in accordance with the Securities
Lending Agency Agreement on a gross basis were as follows:
SECURITIES LENDING AGENCY AGREEMENT
-------------------------------------------------------------
Total gross amount presented on the
Statements of Assets and Liabilities(1) $ 126,607
Non-cash Collateral(2) (126,607)
--------------
Net Amount $ --
==============
(1) The amount presented on the Statements of Assets and Liabilities, which is
included in "Investments, at value," is not offset and is shown on a gross
basis.
(2) At March 31, 2022, the value of the collateral received from each borrower
exceeded the value of the related securities loaned. This amount is
disclosed on the Portfolio of Investments.
The Fund's investments in repurchase agreements were all subject to an
enforceable Master Repurchase Agreement. Repurchase Agreements on a gross basis
were as follows:
REPURCHASE AGREEMENTS
-------------------------------------------------------------
Total gross amount presented on the
Statements of Assets and Liabilities(3) $ 32,457
Non-cash Collateral(4) (32,457)
--------------
Net Amount $ --
==============
(3) The amount is included in "Investments, at value" on the Statements of
Assets and Liabilities.
(4) At March 31, 2022, the value of the collateral received from each seller
exceeded the value of the repurchase agreements.
Page 56 See Notes to Financial Statements
FIRST TRUST GLOBAL ENGINEERING AND CONSTRUCTION ETF (FLM)
PORTFOLIO OF INVESTMENTS (CONTINUED)
MARCH 31, 2022 (UNAUDITED)
% OF TOTAL
CURRENCY EXPOSURE DIVERSIFICATION INVESTMENTS
-------------------------------------------------------------
United States Dollar 28.5%
Japanese Yen 26.5
Euro 22.7
Canadian Dollar 4.8
Swedish Krona 4.5
South Korean Won 3.9
Hong Kong Dollar 3.8
Australian Dollar 3.2
British Pound Sterling 1.1
Philippine Peso 0.6
Norwegian Krone 0.4
------
Total 100.0%
======
------------------------------
VALUATION INPUTS
A summary of the inputs used to value the Fund's investments as of March 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
3/31/2022 PRICES INPUTS INPUTS
--------------- --------------- --------------- ---------------
Common Stocks:
Canada........................................ $ 531,531 $ 531,531 $ -- $ --
United States................................. 2,851,730 2,851,730 -- --
Other Country Categories*..................... 7,435,914 -- 7,435,914 --
Warrants*....................................... 1,056 -- 1,056 --
Money Market Funds.............................. 290,996 290,996 -- --
Repurchase Agreements........................... 32,457 -- 32,457 --
--------------- --------------- --------------- ---------------
Total Investments............................... $ 11,143,684 $ 3,674,257 $ 7,469,427 $ --
=============== =============== =============== ===============
* See Portfolio of Investments for country breakout.
See Notes to Financial Statements Page 57
FIRST TRUST NASDAQ(R) CLEAN EDGE(R) SMART GRID INFRASTRUCTURE INDEX FUND (GRID)
PORTFOLIO OF INVESTMENTS
MARCH 31, 2022 (UNAUDITED)
SHARES DESCRIPTION VALUE
-------------------------------------------------------------
COMMON STOCKS (a) -- 99.7%
BELGIUM -- 2.3%
108,755 Elia Group S.A./N.V. (b) $ 16,592,945
--------------
CANADA -- 0.3%
38,723 Fortis, Inc. 1,915,165
4,035 Stella-Jones, Inc. 121,261
--------------
2,036,426
--------------
CAYMAN ISLANDS -- 0.1%
1,512,657 Wasion Holdings Ltd. (b) 540,410
--------------
CHILE -- 0.1%
177,107 Enel Americas S.A., ADR (c) 1,057,329
--------------
CHINA -- 0.3%
71,585 BYD Co., Ltd., Class H (b) 1,991,158
--------------
DENMARK -- 0.9%
138,938 NKT A/S (b) (d) 6,269,688
--------------
FRANCE -- 8.6%
150,927 Engie S.A. (b) 1,984,248
2,069 Nexans S.A. (b) 193,619
359,052 Schneider Electric SE (b) 60,281,690
11,142 SPIE S.A. (b) 263,536
--------------
62,723,093
--------------
GERMANY -- 2.2%
172,311 E. ON SE (b) 2,001,946
99,038 Infineon Technologies AG (b) 3,350,477
691 PSI Software AG 29,659
60,996 Siemens AG (b) 8,445,999
61,700 SMA Solar Technology AG (b) (c) 2,560,807
--------------
16,388,888
--------------
IRELAND -- 17.8%
365,361 Eaton Corp. PLC 55,447,186
867,788 Johnson Controls International
PLC 56,900,859
493,958 nVent Electric PLC 17,179,859
--------------
129,527,904
--------------
ITALY -- 8.4%
547,174 Enel S.p.A. (b) 3,653,366
823,542 Prysmian S.p.A. (b) 27,948,039
3,417,892 Terna Rete Elettrica Nazionale
S.p.A. (b) 29,350,556
--------------
60,951,961
--------------
JAPAN -- 1.9%
5,935 GS Yuasa Corp. (b) 112,760
78,924 Hitachi Ltd. (b) 3,949,689
130,999 Meidensha Corp. (b) 2,709,438
22,253 NEC Corp. (b) 934,864
20,425 NGK Insulators Ltd. (b) 291,364
170,790 Nissin Electric Co., Ltd. (b) 2,050,002
127,426 Osaki Electric Co., Ltd. (b) 486,574
200,070 Panasonic Corp. (b) 1,943,096
34,200 Takaoka Toko Co., Ltd. (b) 411,566
28,986 Toshiba Corp. (b) 1,101,279
--------------
13,990,632
--------------
SHARES DESCRIPTION VALUE
-------------------------------------------------------------
JERSEY -- 7.1%
435,503 Aptiv PLC (d) $ 52,134,064
--------------
NETHERLANDS -- 1.5%
70,316 Alfen Beheer BV (b) (d) (e) (f) 7,129,002
18,840 NXP Semiconductors N.V. 3,486,907
5,335 STMicroelectronics N.V. 230,579
--------------
10,846,488
--------------
PORTUGAL -- 0.5%
1,143,194 REN - Redes Energeticas
Nacionais SGPS S.A. (b) 3,599,786
--------------
SOUTH KOREA -- 4.2%
15,676 Hyosung Heavy Industries
Corp. (b) (d) 784,408
61,842 Samsung SDI Co., Ltd. (b) 30,097,867
--------------
30,882,275
--------------
SPAIN -- 3.7%
1,311,947 Red Electrica Corp., S.A. (b) (c) 26,935,770
--------------
SWITZERLAND -- 8.0%
1,660,291 ABB Ltd. (b) 53,861,033
69,160 Landis+Gyr Group AG (b) 4,374,394
--------------
58,235,427
--------------
TAIWAN -- 0.4%
39,826 Advantech Co., Ltd. (b) 510,315
1,339,190 Chung-Hsin Electric & Machinery
Manufacturing Corp. (b) 2,543,423
--------------
3,053,738
--------------
UNITED KINGDOM -- 0.8%
261,560 National Grid PLC (b) 4,019,699
79,094 SSE PLC (b) 1,807,217
--------------
5,826,916
--------------
UNITED STATES -- 30.6%
104,733 Advanced Energy Industries, Inc. 9,015,417
44,083 AES (The) Corp. 1,134,256
74,521 American Superconductor
Corp. (d) 567,105
42,674 Analog Devices, Inc. 7,048,891
3,349 Arcosa, Inc. 191,730
1,510 AZZ, Inc. 72,842
3,008 Belden, Inc. 166,643
252,696 Cisco Systems, Inc. 14,090,329
2,055 Digi International, Inc. (d) 44,224
48,438 Emerson Electric Co. 4,749,346
3,027 EnerSys 225,723
169,081 Enphase Energy, Inc. (d) 34,117,164
1,590 ESCO Technologies, Inc. 111,173
92,771 Fluence Energy, Inc. (c) (d) 1,216,228
4,941 Generac Holdings, Inc. (d) 1,468,762
75,302 General Electric Co. 6,890,133
55,926 Honeywell International, Inc. 10,882,081
3,816 Hubbell, Inc. 701,266
73,335 International Business Machines
Corp. 9,535,017
114,952 Itron, Inc. (d) 6,055,671
1,711 Littelfuse, Inc. 426,741
Page 58 See Notes to Financial Statements
FIRST TRUST NASDAQ(R) CLEAN EDGE(R) SMART GRID INFRASTRUCTURE INDEX FUND (GRID)
PORTFOLIO OF INVESTMENTS (CONTINUED)
MARCH 31, 2022 (UNAUDITED)
SHARES DESCRIPTION VALUE
-------------------------------------------------------------
COMMON STOCKS (a) (CONTINUED)
UNITED STATES (CONTINUED)
4,363 MasTec, Inc. (d) $ 380,017
42,756 MYR Group, Inc. (d) 4,020,774
57,793 NVIDIA Corp. 15,769,398
126,303 Oracle Corp. 10,449,047
9,821 Preformed Line Products Co. 622,848
258,727 Quanta Services, Inc. 34,051,060
88,240 SolarEdge Technologies, Inc. (d) 28,445,929
16,191 Tesla, Inc. (d) 17,447,422
19,256 Trimble, Inc. (d) 1,389,128
1,510 Valmont Industries, Inc. 360,286
3,432 WESCO International, Inc. (d) 446,640
34,738 Willdan Group, Inc. (d) 1,066,109
--------------
223,159,400
--------------
TOTAL COMMON STOCKS
-- 99.7% 726,744,298
(Cost $701,091,289) --------------
MONEY MARKET FUNDS -- 3.5%
25,802,764 Goldman Sachs Financial Square
Treasury Obligations Fund -
Institutional Class -
0.20% (g) (h) 25,802,764
(Cost $25,802,764) --------------
PRINCIPAL
VALUE DESCRIPTION VALUE
-------------------------------------------------------------
REPURCHASE AGREEMENTS -- 0.4%
$ 2,878,003 BNP Paribas S.A., 0.24% (g),
dated 03/31/22, due 04/01/22,
with a maturity value of
$2,878,022. Collateralized by
U.S. Treasury Note, interest
rate of 0.25%, due 09/30/25.
The value of the collateral
including accrued interest is
$2,932,252. (h) 2,878,003
(Cost $2,878,003) --------------
TOTAL INVESTMENTS -- 103.6% 755,425,065
(Cost $729,772,056)
NET OTHER ASSETS AND
LIABILITIES -- (3.6)% (26,507,002)
--------------
NET ASSETS -- 100.0% $ 728,918,063
==============
(a) Portfolio securities are categorized based upon their country of
incorporation, which can be different from the country categorization of
the Fund's underlying index. For a breakdown of the portfolio securities
by sector, please see the Fund Performance Overview.
(b) This security is fair valued by the Advisor's Pricing Committee in
accordance with procedures adopted by the Trust's Board of Trustees, and
in accordance with provisions of the Investment Company Act of 1940, as
amended. At March 31, 2022, securities noted as such are valued at
$315,082,030 or 43.2% of net assets. Certain of these securities are fair
valued using a factor provided by a third-party pricing service due to the
change in value between the foreign markets' close and the New York Stock
Exchange close exceeding a certain threshold. On days when this threshold
is not exceeded, these securities are typically valued at the last sale
price on the exchange on which they are principally traded.
(c) All or a portion of this security is on loan (see Note 2E - Securities
Lending in the Notes to Financial Statements). The remaining contractual
maturity of all of the securities lending transactions is overnight and
continuous. The aggregate value of such securities is $27,381,518 and the
total value of the collateral held by the Fund is $28,680,767.
(d) Non-income producing security.
(e) This security is exempt from registration upon resale under Rule 144A of
the Securities Act of 1933, as amended (the "1933 Act") and may be resold
in transactions exempt from registration, normally to qualified
institutional buyers. This security is not restricted on the foreign
exchange where it trades freely without any additional registration. As
such, it does not require the additional disclosure required of restricted
securities.
(f) This security may be resold to qualified foreign investors and foreign
institutional buyers under Regulation S of the 1933 Act.
(g) Rate shown reflects yield as of March 31, 2022.
(h) This security serves as collateral for securities on loan.
ADR - American Depositary Receipt
See Notes to Financial Statements Page 59
FIRST TRUST NASDAQ(R) CLEAN EDGE(R) SMART GRID INFRASTRUCTURE INDEX FUND (GRID)
PORTFOLIO OF INVESTMENTS (CONTINUED)
MARCH 31, 2022 (UNAUDITED)
---------------------------------
OFFSETTING ASSETS AND LIABILITIES
-------------------------------------------------------------
Offsetting assets and liabilities requires entities to disclose both gross and
net information about instruments and transactions eligible for offset, and to
disclose instruments and transactions subject to master netting or similar
agreements (see Note 2C - Offsetting on the Statements of Assets and Liabilities
in the Notes to Financial Statements).
The Fund's loaned securities were all subject to an enforceable Securities
Lending Agency Agreement. Securities lent in accordance with the Securities
Lending Agency Agreement on a gross basis were as follows:
OFFSETTING ASSETS AND LIABILITIES
-------------------------------------------------------------
Total gross amount presented on the
Statements of Assets and Liabilities(1) $ 27,381,518
Non-cash Collateral(2) (27,381,518)
--------------
Net Amount $ --
==============
(1) The amount presented on the Statements of Assets and Liabilities, which is
included in "Investments, at value," is not offset and is shown on a gross
basis.
(2) At March 31, 2022, the value of the collateral received from each borrower
exceeded the value of the related securities loaned. This amount is
disclosed on the Portfolio of Investments.
The Fund's investments in repurchase agreements were all subject to an
enforceable Master Repurchase Agreement. Repurchase Agreements on a gross basis
were as follows:
REPURCHASE AGREEMENTS
-------------------------------------------------------------
Total gross amount presented on the
Statements of Assets and Liabilities(3) $ 2,878,003
Non-cash Collateral(4) (2,878,003)
--------------
Net Amount $ --
==============
(3) The amount is included in "Investments, at value" on the Statements of
Assets and Liabilities.
(4) At March 31, 2022, the value of the collateral received from each seller
exceeded the value of the repurchase agreements.
% OF TOTAL
CURRENCY EXPOSURE DIVERSIFICATION INVESTMENTS
-------------------------------------------------------------
United States Dollar 58.0%
Euro 25.7
Swiss Franc 7.7
South Korean Won 4.1
Japanese Yen 1.9
Danish Krone 0.8
British Pound Sterling 0.8
New Taiwan Dollar 0.4
Hong Kong Dollar 0.3
Canadian Dollar 0.3
------
Total 100.0%
======
Page 60 See Notes to Financial Statements
FIRST TRUST NASDAQ(R) CLEAN EDGE(R) SMART GRID INFRASTRUCTURE INDEX FUND (GRID)
PORTFOLIO OF INVESTMENTS (CONTINUED)
MARCH 31, 2022 (UNAUDITED)
------------------------------
VALUATION INPUTS
A summary of the inputs used to value the Fund's investments as of March 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
3/31/2022 PRICES INPUTS INPUTS
--------------- --------------- --------------- ---------------
Common Stocks:
Canada........................................ $ 2,036,426 $ 2,036,426 $ -- $ --
Chile......................................... 1,057,329 1,057,329 -- --
Germany....................................... 16,388,888 29,659 16,359,229 --
Ireland....................................... 129,527,904 129,527,904 -- --
Jersey........................................ 52,134,064 52,134,064 -- --
Netherlands................................... 10,846,488 3,717,486 7,129,002 --
United States................................. 223,159,400 223,159,400 -- --
Other Country Categories*..................... 291,593,799 -- 291,593,799 --
Money Market Funds.............................. 25,802,764 25,802,764 -- --
Repurchase Agreements........................... 2,878,003 -- 2,878,003 --
--------------- --------------- --------------- ---------------
Total Investments............................... $ 755,425,065 $ 437,465,032 $ 317,960,033 $ --
=============== =============== =============== ===============
* See Portfolio of Investments for country breakout.
See Notes to Financial Statements Page 61
FIRST TRUST INDXX GLOBAL NATURAL RESOURCES INCOME ETF (FTRI)
PORTFOLIO OF INVESTMENTS
MARCH 31, 2022 (UNAUDITED)
SHARES DESCRIPTION VALUE
-------------------------------------------------------------
COMMON STOCKS (a) -- 99.3%
AUSTRALIA -- 17.5%
300,855 Beach Energy Ltd. (b) $ 351,079
137,538 BHP Group Ltd., ADR (c) 10,624,810
348,910 Evolution Mining Ltd. (b) 1,151,583
303,928 Fortescue Metals Group Ltd. (b) 4,671,943
31,354 Mineral Resources Ltd. (b) 1,235,985
135,128 St Barbara Ltd. (b) 142,439
--------------
18,177,839
--------------
BERMUDA -- 1.0%
153,947 China Water Affairs Group
Ltd. (b) 167,762
763,261 Kunlun Energy Co., Ltd. (b) 659,637
295,813 Nine Dragons Paper Holdings
Ltd. (b) 256,868
--------------
1,084,267
--------------
BRAZIL -- 14.7%
36,555 Cia de Saneamento de Minas
Gerais-COPASA 105,034
315,020 Petroleo Brasileiro S.A., ADR 4,662,296
18,748 SLC Agricola S.A. 196,929
513,120 Vale S.A., ADR 10,257,269
--------------
15,221,528
--------------
CANADA -- 9.0%
90,302 Nutrien Ltd. 9,390,505
--------------
CAYMAN ISLANDS -- 0.1%
228,954 Lee & Man Paper Manufacturing
Ltd. (b) 118,792
--------------
CHINA -- 3.1%
379,057 China Coal Energy Co., Ltd.,
Class H (b) 283,431
653,447 China Shenhua Energy Co., Ltd.,
Class H (b) 2,080,052
279,848 Yankuang Energy Group Co.,
Ltd., Class H (b) 827,424
--------------
3,190,907
--------------
FRANCE -- 4.3%
6,394 Imerys S.A. (b) 274,330
130,230 Veolia Environnement S.A. (b) 4,175,650
--------------
4,449,980
--------------
INDIA -- 1.5%
2,381 Bayer CropScience Ltd. (b) 155,830
404,275 Coal India Ltd. (b) 972,611
218,320 NMDC Ltd. (b) 464,904
--------------
1,593,345
--------------
INDONESIA -- 0.5%
2,712,637 Adaro Energy Indonesia Tbk
PT (b) 506,289
--------------
IRELAND -- 2.1%
49,951 Smurfit Kappa Group PLC (b) 2,218,704
--------------
JAPAN -- 0.1%
25,026 Itoham Yonekyu Holdings,
Inc. (b) 132,905
--------------
SHARES DESCRIPTION VALUE
-------------------------------------------------------------
LUXEMBOURG -- 0.4%
8,888 APERAM S.A. (b) $ 392,824
--------------
MALAYSIA -- 0.3%
83,200 PPB Group Bhd 338,360
--------------
NORWAY -- 1.4%
29,755 Yara International ASA (b) 1,488,004
--------------
PORTUGAL -- 0.2%
41,327 Navigator (The) Co., S.A. (b) 153,847
--------------
SOUTH AFRICA -- 4.0%
20,485 African Rainbow Minerals Ltd. 401,148
46,762 Exxaro Resources Ltd. (b) 707,031
163,418 Impala Platinum Holdings Ltd. (b) 2,515,380
10,839 Kumba Iron Ore Ltd. (b) 481,474
--------------
4,105,033
--------------
SWEDEN -- 2.5%
51,954 Boliden AB (b) 2,620,831
--------------
TAIWAN -- 0.6%
143,978 Taiwan Fertilizer Co., Ltd. (b) 366,336
201,522 YFY, Inc. (b) 239,024
--------------
605,360
--------------
THAILAND -- 0.1%
253,050 TTW PCL 84,477
--------------
UNITED KINGDOM -- 15.1%
97,635 Ferrexpo PLC (b) 237,051
93,278 Mondi PLC (b) 1,813,119
123,591 Rio Tinto PLC, ADR 9,936,716
45,464 Severn Trent PLC (b) 1,832,388
129,736 United Utilities Group PLC (b) 1,910,424
--------------
15,729,698
--------------
UNITED STATES -- 20.8%
6,071 Andersons (The), Inc. 305,128
53,395 Archer-Daniels-Midland Co. 4,819,433
39,859 CF Industries Holdings, Inc. 4,107,869
153,946 Coterra Energy, Inc. 4,151,924
72,481 International Paper Co. 3,344,998
5,374 SJW Group 373,923
6,784 Sylvamo Corp. (d) 225,771
48,166 Tyson Foods, Inc., Class A 4,317,119
--------------
21,646,165
--------------
TOTAL COMMON STOCKS
-- 99.3% 103,249,660
(Cost $92,413,488) --------------
MONEY MARKET FUNDS -- 7.3%
7,576,525 Goldman Sachs Financial Square
Treasury Obligations Fund -
Institutional Class -
0.20% (e) (f) 7,576,525
(Cost $7,576,525) --------------
Page 62 See Notes to Financial Statements
FIRST TRUST INDXX GLOBAL NATURAL RESOURCES INCOME ETF (FTRI)
PORTFOLIO OF INVESTMENTS (CONTINUED)
MARCH 31, 2022 (UNAUDITED)
PRINCIPAL
VALUE DESCRIPTION VALUE
-------------------------------------------------------------
REPURCHASE AGREEMENTS -- 0.8%
$ 845,075 BNP Paribas S.A., 0.24% (e),
dated 03/31/22, due 04/01/22,
with a maturity value of
$845,080. Collateralized by
U.S. Treasury Note, interest
rate of 0.25%, due 09/30/25.
The value of the collateral
including accrued interest is
$861,004. (f) $ 845,075
(Cost $845,075) --------------
TOTAL INVESTMENTS -- 107.4% 111,671,260
(Cost $100,835,088)
NET OTHER ASSETS AND
LIABILITIES -- (7.4)% (7,739,230)
--------------
NET ASSETS -- 100.0% $ 103,932,030
==============
(a) Portfolio securities are categorized based upon their country of
incorporation, which can be different from the country categorization of
the Fund's underlying index. For a breakdown of the portfolio securities
by sector, please see the Fund Performance Overview.
(b) This security is fair valued by the Advisor's Pricing Committee in
accordance with procedures adopted by the Trust's Board of Trustees, and
in accordance with provisions of the Investment Company Act of 1940, as
amended. At March 31, 2022, securities noted as such are valued at
$35,605,951 or 34.3% of net assets. Certain of these securities are fair
valued using a factor provided by a third-party pricing service due to the
change in value between the foreign markets' close and the New York Stock
Exchange close exceeding a certain threshold. On days when this threshold
is not exceeded, these securities are typically valued at the last sale
price on the exchange on which they are principally traded.
(c) All or a portion of this security is on loan (see Note 2E - Securities
Lending in the Notes to Financial Statements). The remaining contractual
maturity of all of the securities lending transactions is overnight and
continuous. The aggregate value of such securities is $8,157,600 and the
total value of the collateral held by the Fund is $8,421,600.
(d) Non-income producing security.
(e) Rate shown reflects yield as of March 31, 2022.
(f) This security serves as collateral for securities on loan.
ADR - American Depositary Receipt
---------------------------------
OFFSETTING ASSETS AND LIABILITIES
-------------------------------------------------------------
Offsetting assets and liabilities requires entities to disclose both gross and
net information about instruments and transactions eligible for offset, and to
disclose instruments and transactions subject to master netting or similar
agreements (see Note 2C - Offsetting on the Statements of Assets and Liabilities
in the Notes to Financial Statements).
The Fund's loaned securities were all subject to an enforceable Securities
Lending Agency Agreement. Securities lent in accordance with the Securities
Lending Agency Agreement on a gross basis were as follows:
SECURITIES LENDING AGENCY AGREEMENT
-------------------------------------------------------------
Total gross amount presented on the
Statements of Assets and Liabilities(1) $ 8,157,600
Non-cash Collateral(2) (8,157,600)
--------------
Net Amount $ --
==============
(1) The amount presented on the Statements of Assets and Liabilities, which is
included in "Investments, at value," is not offset and is shown on a gross
basis.
(2) At March 31, 2022, the value of the collateral received from each borrower
exceeded the value of the related securities loaned. This amount is
disclosed on the Portfolio of Investments.
The Fund's investments in repurchase agreements were all subject to an
enforceable Master Repurchase Agreement. Repurchase Agreements on a gross basis
were as follows:
REPURCHASE AGREEMENTS
-------------------------------------------------------------
Total gross amount presented on the
Statements of Assets and Liabilities(3) $ 845,075
Non-cash Collateral(4) (845,075)
--------------
Net Amount $ --
==============
(3) The amount is included in "Investments, at value" on the Statements of
Assets and Liabilities.
(4) At March 31, 2022, the value of the collateral received from each seller
exceeded the value of the repurchase agreements.
See Notes to Financial Statements Page 63
FIRST TRUST INDXX GLOBAL NATURAL RESOURCES INCOME ETF (FTRI)
PORTFOLIO OF INVESTMENTS (CONTINUED)
MARCH 31, 2022 (UNAUDITED)
% OF TOTAL
CURRENCY EXPOSURE DIVERSIFICATION INVESTMENTS
-------------------------------------------------------------
United States Dollar 67.1%
Australian Dollar 6.8
Euro 6.5
British Pound Sterling 5.2
Hong Kong Dollar 3.9
South African Rand 3.7
Swedish Krona 2.3
Indian Rupee 1.4
Norwegian Krone 1.3
New Taiwan Dollar 0.5
Indonesian Rupiah 0.5
Malaysian Ringgit 0.3
Brazilian Real 0.3
Japanese Yen 0.1
Thai Baht 0.1
------
Total 100.0%
======
------------------------------
VALUATION INPUTS
A summary of the inputs used to value the Fund's investments as of March 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
3/31/2022 PRICES INPUTS INPUTS
--------------- --------------- --------------- ---------------
Common Stocks:
Australia..................................... $ 18,177,839 $ 10,624,810 $ 7,553,029 $ --
Brazil........................................ 15,221,528 15,221,528 -- --
Canada........................................ 9,390,505 9,390,505 -- --
Malaysia...................................... 338,360 338,360 -- --
South Africa.................................. 4,105,033 401,148 3,703,885 --
United Kingdom................................ 15,729,698 9,936,716 5,792,982 --
United States................................. 21,646,165 21,646,165 -- --
Other Country Categories*..................... 18,640,532 -- 18,640,532 --
Money Market Funds.............................. 7,576,525 7,576,525 -- --
Repurchase Agreements........................... 845,075 -- 845,075 --
--------------- --------------- --------------- ---------------
Total Investments............................... $ 111,671,260 $ 75,135,757 $ 36,535,503 $ --
=============== =============== =============== ===============
* See Portfolio of Investments for country breakout.
Page 64 See Notes to Financial Statements
FIRST TRUST INDXX GLOBAL AGRICULTURE ETF (FTAG)
PORTFOLIO OF INVESTMENTS
MARCH 31, 2022 (UNAUDITED)
SHARES DESCRIPTION VALUE
-------------------------------------------------------------
COMMON STOCKS (a) -- 99.7%
AUSTRALIA -- 1.1%
48,100 Incitec Pivot Ltd. (b) $ 136,158
9,411 Nufarm Ltd. (b) 44,339
--------------
180,497
--------------
BERMUDA -- 2.4%
3,502 Bunge Ltd. 388,057
--------------
CANADA -- 8.3%
13,148 Nutrien Ltd. 1,359,025
--------------
CHILE -- 1.9%
3,537 Sociedad Quimica y Minera de
Chile S.A., ADR 302,767
--------------
CHINA -- 0.1%
42,907 China BlueChemical Ltd.,
Class H (b) 14,640
--------------
GERMANY -- 20.3%
21,903 BASF SE (b) 1,249,804
23,428 Bayer AG (b) 1,602,463
11,542 Evonik Industries AG (b) 320,205
4,741 K+S AG (b) (c) 142,641
--------------
3,315,113
--------------
INDIA -- 6.9%
1,116 Bayer CropScience Ltd. (b) 73,039
10,306 Chambal Fertilisers and
Chemicals Ltd. (b) 57,046
7,261 Coromandel International Ltd. (b) 76,348
3,338 Escorts Ltd. (b) 74,335
3,850 Gujarat Narmada Valley
Fertilizers & Chemicals
Ltd. (b) 42,628
30,800 Mahindra & Mahindra Ltd. (b) 325,724
3,756 PI Industries Ltd. (b) 139,095
12,346 Sumitomo Chemical India Ltd. (b) 72,791
6,305 Tata Chemicals Ltd. (b) 80,596
18,922 UPL Ltd. (b) 191,230
--------------
1,132,832
--------------
ISRAEL -- 2.3%
31,878 ICL Group Ltd. (b) 378,952
--------------
JAPAN -- 6.8%
29,700 Kubota Corp. (b) 556,705
5,000 Mitsui Chemicals, Inc. (b) 125,698
3,600 Nissan Chemical Corp. (b) 211,168
1,100 Sakata Seed Corp. (b) 33,345
41,000 Sumitomo Chemical Co., Ltd. (b) 187,731
--------------
1,114,647
--------------
MALAYSIA -- 2.8%
198,101 Petronas Chemicals Group Bhd 452,291
--------------
MEXICO -- 0.8%
49,780 Orbia Advance Corp. SAB de CV 131,670
--------------
NETHERLANDS -- 4.4%
33,539 CNH Industrial N.V. 531,929
5,219 OCI N.V. (b) (c) 184,255
--------------
716,184
--------------
SHARES DESCRIPTION VALUE
-------------------------------------------------------------
NORWAY -- 1.9%
6,309 Yara International ASA (b) $ 315,504
--------------
QATAR -- 4.0%
126,134 Industries Qatar QSC (b) 657,439
--------------
RUSSIA -- 0.0%
1,918 PhosAgro PJSC (b) (d) (e) 7,871
--------------
SINGAPORE -- 3.4%
158,600 Wilmar International Ltd. (b) 549,267
--------------
SWITZERLAND -- 0.6%
254 Bucher Industries AG (b) 102,669
--------------
TAIWAN -- 0.4%
24,271 Taiwan Fertilizer Co., Ltd. (b) 61,755
--------------
TURKEY -- 0.3%
8,272 Gubre Fabrikalari TAS (c) 44,992
--------------
UNITED STATES -- 31.0%
1,845 AGCO Corp. 269,425
295 Alamo Group, Inc. 42,418
5,134 CF Industries Holdings, Inc. 529,110
843 Compass Minerals International,
Inc. 52,932
13,241 Corteva, Inc. 761,093
265 CVR Partners, L.P. (f) 36,562
4,069 Deere & Co. 1,690,507
3,114 FMC Corp. 409,709
272 Lindsay Corp. 42,707
2,217 LSB Industries, Inc. (g) 48,419
9,122 Mosaic (The) Co. 606,613
1,376 Scotts Miracle-Gro (The) Co. 169,193
1,110 SiteOne Landscape Supply,
Inc. (c) 179,476
2,598 Toro (The) Co. 222,103
--------------
5,060,267
--------------
TOTAL INVESTMENTS -- 99.7% 16,286,439
(Cost $15,494,903)
NET OTHER ASSETS AND
LIABILITIES -- 0.3% 42,096
--------------
NET ASSETS -- 100.0% $ 16,328,535
==============
(a) Portfolio securities are categorized based upon their country of
incorporation, which can be different from the country categorization of
the Fund's underlying index. For a breakdown of the portfolio securities
by sector, please see the Fund Performance Overview.
(b) This security is fair valued by the Advisor's Pricing Committee in
accordance with procedures adopted by the Trust's Board of Trustees, and
in accordance with provisions of the Investment Company Act of 1940, as
amended. At March 31, 2022, securities noted as such are valued at
$8,015,441 or 49.1% of net assets. Certain of these securities are fair
valued using a factor provided by a third-party pricing service due to the
change in value between the foreign markets' close and the New York Stock
Exchange close exceeding a certain threshold. On days
See Notes to Financial Statements Page 65
FIRST TRUST INDXX GLOBAL AGRICULTURE ETF (FTAG)
PORTFOLIO OF INVESTMENTS (CONTINUED)
MARCH 31, 2022 (UNAUDITED)
when this threshold is not exceeded, these securities are typically
valued at the last sale price on the exchange on which they are
principally traded.
(c) Non-income producing security.
(d) This security's value was determined using significant unobservable inputs
(see Note 2A - Portfolio Valuation in the Notes to Financial Statements).
(e) Pursuant to procedures adopted by the Trust's Board of Trustees, this
security has been determined to be illiquid by First Trust Advisors, L.P.,
the Fund's Advisor.
(f) Security is a Master Limited Partnership ("MLP").
(g) Non-income producing security which makes payment-in-kind ("PIK")
distributions. There were no in-kind distributions received for the six
months ended March 31, 2022.
ADR - American Depositary Receipt
% OF TOTAL
CURRENCY EXPOSURE DIVERSIFICATION INVESTMENTS
-------------------------------------------------------------
United States Dollar 38.6%
Euro 21.5
Canadian Dollar 8.3
Indian Rupee 7.0
Japanese Yen 6.8
Qatar Riyal 4.0
Singapore Dollar 3.4
Malaysian Ringgit 2.8
Israeli Shekel 2.3
Norwegian Krone 1.9
Australian Dollar 1.1
Mexican Peso 0.8
Swiss Franc 0.6
New Taiwan Dollar 0.4
Turkish Lira 0.3
Hong Kong Dollar 0.1
Russian Ruble 0.1
------
Total 100.0%
======
------------------------------
VALUATION INPUTS
A summary of the inputs used to value the Fund's investments as of March 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
3/31/2022 PRICES INPUTS INPUTS
--------------- --------------- --------------- ---------------
Common Stocks:
Bermuda....................................... $ 388,057 $ 388,057 $ -- $ --
Canada........................................ 1,359,025 1,359,025 -- --
Chile......................................... 302,767 302,767 -- --
Malaysia...................................... 452,291 452,291 -- --
Mexico........................................ 131,670 131,670 -- --
Netherlands................................... 716,184 531,929 184,255 --
Russia........................................ 7,871 -- -- 7,871
Turkey........................................ 44,992 44,992 -- --
United States................................. 5,060,267 5,060,267 -- --
Other Country Categories*..................... 7,823,315 -- 7,823,315 --
--------------- --------------- --------------- ---------------
Total Investments............................... $ 16,286,439 $ 8,270,998 $ 8,007,570 $ 7,871
=============== =============== =============== ===============
* See Portfolio of Investments for country breakout.
Level 3 Common Stocks are fair valued by the Advisor's Pricing Committee and are
footnoted in the Portfolio of Investments. Level 3 Common Stocks values are
based on unobservable and non-quantitative inputs.
Page 66 See Notes to Financial Statements
FIRST TRUST BICK INDEX FUND (BICK)
PORTFOLIO OF INVESTMENTS
MARCH 31, 2022 (UNAUDITED)
SHARES DESCRIPTION VALUE
-------------------------------------------------------------
COMMON STOCKS (a) -- 99.5%
BRAZIL -- 26.1%
72,257 Ambev S.A., ADR $ 233,390
35,760 Americanas S.A. 244,331
74,807 B3 S.A. - Brasil Bolsa Balcao 246,526
54,848 Banco Bradesco S.A., ADR 254,495
30,977 Banco do Brasil S.A. 225,119
31,369 Centrais Eletricas Brasileiras
S.A. 250,238
43,454 Cia Siderurgica Nacional S.A. 236,936
42,839 Gerdau S.A. (Preference Shares) 276,413
89,917 Hapvida Participacoes e
Investimentos S.A. (b) (e) 225,121
43,833 Itau Unibanco Holding S.A., ADR 250,287
108,851 Itausa S.A. (Preference Shares) 246,461
30,390 JBS S.A. 239,300
18,962 Localiza Rent a Car S.A. 243,783
43,076 Lojas Renner S.A. 249,894
181,479 Magazine Luiza S.A. 261,104
47,114 Natura & Co. Holding S.A. (c) 258,080
42,242 Petro Rio S.A. (c) 212,672
14,816 Petroleo Brasileiro S.A., ADR 219,277
21,386 Rede D'Or Sao Luiz S.A. (b) (e) 225,132
70,367 Rumo S.A. (c) 274,607
19,805 Suzano S.A. 229,829
11,450 Vale S.A., ADR 228,886
37,098 WEG S.A. 271,940
--------------
5,603,821
--------------
CAYMAN ISLANDS -- 18.1%
2,013 Alibaba Group Holding Ltd.,
ADR (c) 219,014
13,851 ANTA Sports Products Ltd. (d) 171,822
1,389 Baidu, Inc., ADR (c) 183,765
6,698 Bilibili, Inc., ADR (c) 171,335
2,956 JD.com, Inc., ADR (c) 171,064
10,907 KE Holdings, Inc., ADR (c) 134,920
18,448 Kuaishou
Technology (b) (c) (d) (e) 169,034
6,953 Li Auto, Inc., ADR (c) 179,457
21,509 Li Ning Co., Ltd. (d) 182,641
9,558 Meituan, Class B (b) (c) (d) (e) 181,066
2,221 NetEase, Inc., ADR 199,201
9,269 NIO, Inc., ADR (c) 195,112
13,282 Pagseguro Digital Ltd.,
Class A (c) 266,304
4,082 Pinduoduo, Inc., ADR (c) 163,729
18,836 StoneCo., Ltd., Class A (c) 220,381
8,847 Sunny Optical Technology Group
Co., Ltd. (d) 140,502
3,886 Tencent Holdings Ltd. (d) 179,123
8,200 Trip.com Group Ltd., ADR (c) 189,584
25,541 Wuxi Biologics Cayman,
Inc. (b) (c) (d) (e) 202,811
112,831 Xiaomi Corp.,
Class B (b) (c) (d) (e) 197,164
5,821 XPeng, Inc., ADR (c) 160,601
--------------
3,878,630
--------------
SHARES DESCRIPTION VALUE
-------------------------------------------------------------
CHINA -- 4.7%
7,179 BYD Co., Ltd., Class H (d) $ 199,686
281,843 China Construction Bank Corp.,
Class H (d) 211,119
25,119 China Merchants Bank Co., Ltd.,
Class H (d) 195,537
354,276 Industrial & Commercial Bank of
China Ltd., Class H (d) 217,190
27,148 Ping An Insurance (Group) Co. of
China Ltd., Class H (d) 189,793
--------------
1,013,325
--------------
INDIA -- 16.8%
8,257 Dr. Reddy's Laboratories Ltd.,
ADR 460,162
7,095 HDFC Bank Ltd., ADR 435,136
22,654 ICICI Bank Ltd., ADR 429,067
19,638 Infosys Ltd., ADR 488,790
7,023 Reliance Industries Ltd.,
GDR (b) (d) 481,805
6,849 State Bank of India, GDR (d) (e) 435,844
14,562 Tata Motors Ltd., ADR (c) (f) 407,008
60,504 Wipro Ltd., ADR 466,486
--------------
3,604,298
--------------
JERSEY -- 2.1%
5,338 WNS (Holdings) Ltd., ADR (c) 456,346
--------------
MAURITIUS -- 4.0%
26,651 Azure Power Global Ltd. (c) (f) 443,472
15,708 MakeMyTrip Ltd. (c) 421,446
--------------
864,918
--------------
SOUTH KOREA -- 24.1%
1,596 Celltrion, Inc. (d) 224,707
12,238 Doosan Heavy Industries &
Construction Co., Ltd. (c) (d) 203,703
678 Ecopro BM Co., Ltd. (d) 219,108
1,455 Hyundai Motor Co. (d) 214,672
2,705 Kakao Corp. 237,682
3,463 Kakao Games Corp. (c) (d) 220,781
5,303 KakaoBank Corp. (c) (d) 223,974
4,264 KB Financial Group, Inc. (d) 213,686
3,449 Kia Corp. (d) 208,900
863 Krafton, Inc. (c) (d) 194,423
1,305 L&F Co., Ltd. (c) (d) 240,150
451 LG Chem Ltd. (d) 197,072
2,061 LG Electronics, Inc. (d) 202,727
778 LG Innotek Co., Ltd. (d) 245,646
800 NAVER Corp. (d) 222,343
574 NCSoft Corp. (d) 220,133
893 POSCO Holdings, Inc. (d) 214,207
1,533 Samsung Electro-Mechanics Co.,
Ltd. (d) 206,411
3,531 Samsung Electronics Co., Ltd. (d) 202,054
465 Samsung SDI Co., Ltd. (d) 226,311
1,744 SK Bioscience Co., Ltd. (c) (d) 223,730
2,061 SK Hynix, Inc. (d) 198,267
1,271 SK Innovation Co., Ltd. (d) (g) 222,952
See Notes to Financial Statements Page 67
FIRST TRUST BICK INDEX FUND (BICK)
PORTFOLIO OF INVESTMENTS (CONTINUED)
MARCH 31, 2022 (UNAUDITED)
SHARES DESCRIPTION VALUE
-------------------------------------------------------------
COMMON STOCKS (a) (CONTINUED)
SOUTH KOREA (CONTINUED)
2,333 Wemade Co., Ltd. (d) $ 195,395
--------------
5,179,034
--------------
UNITED KINGDOM -- 2.1%
55,832 ReNew Energy Global PLC,
Class A (c) 458,939
--------------
UNITED STATES -- 1.5%
7,983 Coupang, Inc. (c) 141,139
4,070 Yum China Holdings, Inc. 169,068
--------------
310,207
--------------
TOTAL COMMON STOCKS
-- 99.5% 21,369,518
(Cost $21,450,971) --------------
MONEY MARKET FUNDS -- 2.7%
579,638 Goldman Sachs Financial Square
Treasury Obligations Fund -
Institutional Class -
0.20% (h) (i) 579,638
(Cost $579,638) --------------
PRINCIPAL
VALUE DESCRIPTION VALUE
-------------------------------------------------------------
REPURCHASE AGREEMENTS -- 0.3%
$ 64,652 BNP Paribas S.A., 0.24% (h),
dated 03/31/22, due 04/01/22,
with a maturity value of
$64,652. Collateralized by
U.S. Treasury Note, interest
rate of 0.25%, due 09/30/25.
The value of the collateral
including accrued interest is
$65,871. (i) 64,652
(Cost $64,652) --------------
TOTAL INVESTMENTS -- 102.5% 22,013,808
(Cost $22,095,261)
NET OTHER ASSETS AND
LIABILITIES -- (2.5)% (541,609)
--------------
NET ASSETS -- 100.0% $ 21,472,199
==============
(a) Portfolio securities are categorized based upon their country of
incorporation, which can be different from the country categorization of
the Fund's underlying index. For a breakdown of the portfolio securities
by sector, please see the Fund Performance Overview.
(b) This security is exempt from registration upon resale under Rule 144A of
the Securities Act of 1933, as amended (the "1933 Act") and may be resold
in transactions exempt from registration, normally to qualified
institutional buyers. This security is not restricted on the foreign
exchange where it trades freely without any additional registration. As
such, it does not require the additional disclosure required of restricted
securities.
(c) Non-income producing security.
(d) This security is fair valued by the Advisor's Pricing Committee in
accordance with procedures adopted by the Trust's Board of Trustees, and
in accordance with provisions of the Investment Company Act of 1940, as
amended. At March 31, 2022, securities noted as such are valued at
$8,296,489 or 38.6% of net assets. Certain of these securities are fair
valued using a factor provided by a third-party pricing service due to the
change in value between the foreign markets' close and the New York Stock
Exchange close exceeding a certain threshold. On days when this threshold
is not exceeded, these securities are typically valued at the last sale
price on the exchange on which they are principally traded.
(e) This security may be resold to qualified foreign investors and foreign
institutional buyers under Regulation S of the 1933 Act.
(f) All or a portion of this security is on loan (see Note 2E - Securities
Lending in the Notes to Financial Statements). The remaining contractual
maturity of all of the securities lending transactions is overnight and
continuous. The aggregate value of such securities is $607,820 and the
total value of the collateral held by the Fund is $644,290.
(g) Non-income producing security which makes payment-in-kind ("PIK")
distributions. For the six months ended March 31, 2022, the Fund received
16 PIK shares of SK Innovation Co., Ltd.
(h) Rate shown reflects yield as of March 31, 2022.
(i) This security serves as collateral for securities on loan.
ADR -American Depositary Receipt
GDR -Global Depositary Receipt
Page 68 See Notes to Financial Statements
FIRST TRUST BICK INDEX FUND (BICK)
PORTFOLIO OF INVESTMENTS (CONTINUED)
MARCH 31, 2022 (UNAUDITED)
---------------------------------
OFFSETTING ASSETS AND LIABILITIES
-------------------------------------------------------------
Offsetting assets and liabilities requires entities to disclose both gross and
net information about instruments and transactions eligible for offset, and to
disclose instruments and transactions subject to master netting or similar
agreements (see Note 2C - Offsetting on the Statements of Assets and Liabilities
in the Notes to Financial Statements).
The Fund's loaned securities were all subject to an enforceable Securities
Lending Agency Agreement. Securities lent in accordance with the Securities
Lending Agency Agreement on a gross basis were as follows:
SECURITIES LENDING AGENCY AGREEMENT
-------------------------------------------------------------
Total gross amount presented on the
Statements of Assets and Liabilities(1) $ 607,820
Non-cash Collateral(2) (607,820)
--------------
Net Amount $ --
==============
(1) The amount presented on the Statements of Assets and Liabilities, which is
included in "Investments, at value," is not offset and is shown on a gross
basis.
(2) At March 31, 2022, the value of the collateral received from each borrower
exceeded the value of the related securities loaned. This amount is
disclosed on the Portfolio of Investments.
The Fund's investments in repurchase agreements were all subject to an
enforceable Master Repurchase Agreement. Repurchase Agreements on a gross basis
were as follows:
REPURCHASE AGREEMENTS
-------------------------------------------------------------
Total gross amount presented on the
Statements of Assets and Liabilities(3) $ 64,652
Non-cash Collateral(4) (64,652)
--------------
Net Amount $ --
==============
(3) The amount is included in "Investments, at value" on the Statements of
Assets and Liabilities.
(4) At March 31, 2022, the value of the collateral received from each seller
exceeded the value of the repurchase agreements.
% OF TOTAL
CURRENCY EXPOSURE DIVERSIFICATION INVESTMENTS
-------------------------------------------------------------
United States Dollar 45.3%
South Korean Won 23.5
Brazilian Real 20.1
Hong Kong Dollar 11.1
------
Total 100.0%
======
See Notes to Financial Statements Page 69
FIRST TRUST BICK INDEX FUND (BICK)
PORTFOLIO OF INVESTMENTS (CONTINUED)
MARCH 31, 2022 (UNAUDITED)
------------------------------
VALUATION INPUTS
A summary of the inputs used to value the Fund's investments as of March 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
3/31/2022 PRICES INPUTS INPUTS
--------------- --------------- --------------- ---------------
Common Stocks:
Cayman Islands................................ $ 3,878,630 $ 2,454,467 $ 1,424,163 $ --
China......................................... 1,013,325 -- 1,013,325 --
India......................................... 3,604,298 2,686,649 917,649 --
South Korea................................... 5,179,034 237,682 4,941,352 --
Other Country Categories*..................... 7,694,231 7,694,231 -- --
Money Market Funds.............................. 579,638 579,638 -- --
Repurchase Agreements........................... 64,652 -- 64,652 --
--------------- --------------- --------------- ---------------
Total Investments............................... $ 22,013,808 $ 13,652,667 $ 8,361,141 $ --
=============== =============== =============== ===============
* See Portfolio of Investments for country breakout.
Page 70 See Notes to Financial Statements
FIRST TRUST INDXX NEXTG ETF (NXTG)
PORTFOLIO OF INVESTMENTS
MARCH 31, 2022 (UNAUDITED)
SHARES DESCRIPTION VALUE
-------------------------------------------------------------
COMMON STOCKS (a) -- 98.4%
AUSTRALIA -- 0.6%
2,030,975 Telstra Corp., Ltd. (b) $ 6,000,443
--------------
BRAZIL -- 0.8%
687,190 Telefonica Brasil S.A., ADR (c) 7,730,888
--------------
CANADA -- 2.2%
113,999 BCE, Inc. 6,319,346
129,577 Rogers Communications, Inc.,
Class B 7,334,215
256,969 TELUS Corp. 6,713,280
--------------
20,366,841
--------------
CAYMAN ISLANDS -- 1.9%
224,894 GDS Holdings Ltd., ADR (c) (d) 8,827,089
4,865,352 Xiaomi Corp.,
Class B (b) (d) (e) (f) 8,501,842
--------------
17,328,931
--------------
CHINA -- 2.2%
102,593,983 China Tower Corp., Ltd.,
Class H (b) (e) (f) 11,484,611
4,290,250 ZTE Corp., Class H (b) 8,690,559
--------------
20,175,170
--------------
FINLAND -- 2.5%
200,972 Elisa OYJ (b) 12,120,030
2,021,199 Nokia OYJ, ADR (d) 11,035,747
--------------
23,155,777
--------------
FRANCE -- 0.7%
567,740 Orange S.A. 6,722,815
--------------
GERMANY -- 2.3%
327,101 Deutsche Telekom AG (b) 6,092,004
265,250 Infineon Technologies AG (b) 8,973,465
2,205,071 Telefonica Deutschland Holding
AG (b) 5,997,376
--------------
21,062,845
--------------
GUERNSEY -- 1.5%
169,157 Amdocs Ltd. 13,906,397
--------------
HONG KONG -- 1.3%
11,039,184 Lenovo Group Ltd. (b) 11,958,269
--------------
INDIA -- 7.0%
621,454 Bharti Airtel Ltd. (b) (d) 6,161,378
782,394 HCL Technologies Ltd. (b) 11,957,208
520,726 Infosys Ltd., ADR 12,960,870
253,835 Tata Consultancy Services Ltd. (b) 12,474,822
567,434 Tech Mahindra Ltd. (b) 11,164,260
1,390,010 Wipro Ltd., ADR 10,716,977
--------------
65,435,515
--------------
ITALY -- 1.7%
1,064,808 Infrastrutture Wireless Italiane
S.p.A. (b) (e) (f) 11,919,788
11,792,033 Telecom Italia S.p.A. (b) 4,329,207
--------------
16,248,995
--------------
SHARES DESCRIPTION VALUE
-------------------------------------------------------------
JAPAN -- 10.0%
69,432 Fujitsu Ltd. (b) $ 10,402,700
197,748 KDDI Corp. (b) 6,483,493
191,871 Kyocera Corp. (b) 10,736,995
933,565 Mitsubishi Electric Corp. (b) 10,706,920
254,359 NEC Corp. (b) 10,685,800
441,166 Nippon Telegraph & Telephone
Corp. (b) 12,817,596
936,959 Renesas Electronics Corp. (b) (d) 10,856,515
907,498 SoftBank Corp. (b) 10,584,252
97,576 Sony Group Corp. (b) 10,038,201
--------------
93,312,472
--------------
MALAYSIA -- 0.6%
6,013,155 DiGi.Com Bhd (b) 5,567,996
--------------
NETHERLANDS -- 2.2%
53,764 NXP Semiconductors N.V. 9,950,641
250,154 STMicroelectronics N.V. (b) 10,831,865
--------------
20,782,506
--------------
NEW ZEALAND -- 0.7%
1,954,011 Spark New Zealand Ltd. (b) 6,183,706
--------------
NORWAY -- 0.6%
395,454 Telenor ASA (b) 5,674,579
--------------
PHILIPPINES -- 1.1%
86,335 Globe Telecom, Inc. (b) 4,237,205
171,095 PLDT, Inc., ADR (c) 6,012,278
--------------
10,249,483
--------------
QATAR -- 0.7%
3,119,040 Ooredoo QPSC 6,091,196
--------------
RUSSIA -- 0.0%
739,978 Mobile TeleSystems PJSC,
ADR (b) (g) (h) 263,761
--------------
SINGAPORE -- 0.7%
3,274,752 Singapore Telecommunications
Ltd. (b) 6,358,748
--------------
SOUTH AFRICA -- 1.6%
591,716 MTN Group Ltd. (b) 7,656,288
705,276 Vodacom Group Ltd. 7,722,441
--------------
15,378,729
--------------
SOUTH KOREA -- 4.1%
445,875 KT Corp., ADR 6,393,848
115,578 LG Electronics, Inc. (b) 11,368,642
181,796 Samsung Electronics Co., Ltd. (b) 10,402,909
92,016 Samsung SDS Co., Ltd. (b) 10,439,260
--------------
38,604,659
--------------
SPAIN -- 1.2%
99,048 Cellnex Telecom S.A. (b) (e) (f) 4,766,652
1,408,788 Telefonica S.A. (b) 6,827,387
--------------
11,594,039
--------------
SWEDEN -- 2.5%
419,139 Tele2 AB, Class B (b) 6,335,621
1,168,293 Telefonaktiebolaget LM Ericsson,
Class B (b) (c) 10,649,626
See Notes to Financial Statements Page 71
FIRST TRUST INDXX NEXTG ETF (NXTG)
PORTFOLIO OF INVESTMENTS (CONTINUED)
MARCH 31, 2022 (UNAUDITED)
SHARES DESCRIPTION VALUE
-------------------------------------------------------------
COMMON STOCKS (a) (CONTINUED)
SWEDEN (CONTINUED)
1,537,252 Telia Co., AB (b) (c) $ 6,163,938
--------------
23,149,185
--------------
SWITZERLAND -- 0.7%
10,696 Swisscom AG (b) 6,426,225
--------------
TAIWAN -- 7.7%
3,208,832 ASE Technology Holding Co.,
Ltd. (b) 11,434,560
1,421,370 Chunghwa Telecom Co., Ltd. (b) 6,295,071
1,246,309 Delta Electronics, Inc. (b) 11,555,438
308,313 MediaTek, Inc. (b) 9,594,866
3,394,261 Taiwan Mobile Co., Ltd. (b) 12,420,755
101,312 Taiwan Semiconductor
Manufacturing Co., Ltd., ADR 10,562,789
5,240,029 United Microelectronics Corp. (b) 9,622,918
--------------
71,486,397
--------------
THAILAND -- 0.7%
910,400 Advanced Info Service PCL (b) 6,361,246
--------------
UNITED ARAB EMIRATES -- 0.7%
616,889 Emirates Telecommunications
Group Co. PJSC (b) 6,212,211
--------------
UNITED KINGDOM -- 2.0%
5,189,208 BT Group PLC (b) 12,372,646
3,929,822 Vodafone Group PLC (b) 6,444,048
--------------
18,816,694
--------------
UNITED STATES -- 35.9%
185,835 Advanced Micro Devices, Inc. (d) 20,319,199
44,660 American Tower Corp. 11,219,485
65,912 Analog Devices, Inc. 10,887,344
69,355 Apple, Inc. 12,110,077
94,097 Arista Networks, Inc. (d) 13,077,601
256,125 AT&T, Inc. 6,052,234
20,755 Broadcom, Inc. 13,069,008
168,320 Ciena Corp. (d) 10,205,242
210,375 Cisco Systems, Inc. 11,730,510
63,844 Crown Castle International Corp. 11,785,602
72,793 Digital Realty Trust, Inc. 10,322,047
15,152 Equinix, Inc. 11,237,026
53,342 F5, Inc. (d) 11,145,811
787,187 Hewlett Packard Enterprise Co. 13,153,895
239,835 Intel Corp. 11,886,223
97,980 International Business Machines
Corp. 12,739,360
369,795 Juniper Networks, Inc. 13,741,582
60,349 Keysight Technologies, Inc. (d) 9,533,332
124,849 Lumentum Holdings, Inc. (d) 12,185,262
134,472 Marvell Technology, Inc. 9,642,987
139,757 Microchip Technology, Inc. 10,501,341
142,557 Micron Technology, Inc. 11,103,765
39,713 NVIDIA Corp. 10,836,089
75,882 Qorvo, Inc. (d) 9,416,956
66,426 QUALCOMM, Inc. 10,151,221
34,303 SBA Communications Corp. 11,803,662
75,185 Skyworks Solutions, Inc. 10,020,657
SHARES DESCRIPTION VALUE
-------------------------------------------------------------
UNITED STATES (CONTINUED)
51,536 T-Mobile US, Inc. (d) $ 6,614,646
117,136 Verizon Communications, Inc. 5,966,908
107,354 VMware, Inc., Class A 12,224,400
--------------
334,683,472
--------------
TOTAL COMMON STOCKS
-- 98.4% 917,290,190
(Cost $818,595,303) --------------
MONEY MARKET FUNDS -- 3.1%
28,862,942 Goldman Sachs Financial Square
Treasury Obligations Fund -
Institutional Class -
0.20% (i) (j) 28,862,942
(Cost $28,862,942) --------------
PRINCIPAL
VALUE DESCRIPTION VALUE
-------------------------------------------------------------
REPURCHASE AGREEMENTS -- 0.3%
$ 3,219,330 BNP Paribas S.A., 0.24% (i),
dated 03/31/22, due 04/01/22,
with a maturity value of
$3,219,352. Collateralized by
U.S. Treasury Note, interest
rate of 0.25%, due 09/30/25.
The value of the collateral
including accrued interest is
$3,280,013. (j) 3,219,330
(Cost $3,219,330) --------------
TOTAL INVESTMENTS -- 101.8% 949,372,462
(Cost $850,677,575)
NET OTHER ASSETS AND
LIABILITIES -- (1.8)% (17,108,213)
--------------
NET ASSETS -- 100.0% $ 932,264,249
==============
(a) Portfolio securities are categorized based upon their country of
incorporation, which can be different from the country categorization of
the Fund's underlying index. For a breakdown of the portfolio securities
by sector, please see the Fund Performance Overview.
(b) This security is fair valued by the Advisor's Pricing Committee in
accordance with procedures adopted by the Trust's Board of Trustees, and
in accordance with provisions of the Investment Company Act of 1940, as
amended. At March 31, 2022, securities noted as such are valued at
$443,605,901 or 47.6% of net assets. Certain of these securities are fair
valued using a factor provided by a third-party pricing service due to the
change in value between the foreign markets' close and the New York Stock
Exchange close exceeding a certain threshold. On days when this threshold
is not exceeded, these securities are typically valued at the last sale
price on the exchange on which they are principally traded.
Page 72 See Notes to Financial Statements
FIRST TRUST INDXX NEXTG ETF (NXTG)
PORTFOLIO OF INVESTMENTS (CONTINUED)
MARCH 31, 2022 (UNAUDITED)
(c) All or a portion of this security is on loan (see Note 2E - Securities
Lending in the Notes to Financial Statements). The remaining contractual
maturity of all of the securities lending transactions is overnight and
continuous. The aggregate value of such securities is $30,017,259 and the
total value of the collateral held by the Fund is $32,082,272.
(d) Non-income producing security.
(e) This security is exempt from registration upon resale under Rule 144A of
the Securities Act of 1933, as amended (the "1933 Act") and may be resold
in transactions exempt from registration, normally to qualified
institutional buyers. This security is not restricted on the foreign
exchange where it trades freely without any additional registration. As
such, it does not require the additional disclosure required of restricted
securities.
(f) This security may be resold to qualified foreign investors and foreign
institutional buyers under Regulation S of the 1933 Act.
(g) This security's value was determined using significant unobservable inputs
(see Note 2A - Portfolio Valuation in the Notes to Financial Statements).
(h) Pursuant to procedures adopted by the Trust's Board of Trustees, this
security has been determined to be illiquid by First Trust Advisors, L.P.,
the Fund's Advisor.
(i) Rate shown reflects yield as of March 31, 2022.
(j) This security serves as collateral for securities on loan.
ADR - American Depositary Receipt
---------------------------------
OFFSETTING ASSETS AND LIABILITIES
-------------------------------------------------------------
Offsetting assets and liabilities requires entities to disclose both gross and
net information about instruments and transactions eligible for offset, and to
disclose instruments and transactions subject to master netting or similar
agreements (see Note 2C - Offsetting on the Statements of Assets and Liabilities
in the Notes to Financial Statements).
The Fund's loaned securities were all subject to an enforceable Securities
Lending Agency Agreement. Securities lent in accordance with the Securities
Lending Agency Agreement on a gross basis were as follows:
SECURITIES LENDING AGENCY AGREEMENT
-------------------------------------------------------------
Total gross amount presented on the
Statements of Assets and Liabilities(1) $ 30,017,259
Non-cash Collateral(2) (30,017,259)
--------------
Net Amount $ --
==============
(1) The amount presented on the Statements of Assets and Liabilities, which is
included in "Investments, at value," is not offset and is shown on a gross
basis.
(2) At March 31, 2022, the value of the collateral received from each borrower
exceeded the value of the related securities loaned. This amount is
disclosed on the Portfolio of Investments.
The Fund's investments in repurchase agreements were all subject to an
enforceable Master Repurchase Agreement. Repurchase Agreements on a gross basis
were as follows:
REPURCHASE AGREEMENTS
-------------------------------------------------------------
Total gross amount presented on the
Statements of Assets and Liabilities(3) $ 3,219,330
Non-cash Collateral(4) (3,219,330)
--------------
Net Amount $ --
==============
(3) The amount is included in "Investments, at value" on the Statements of
Assets and Liabilities.
(4) At March 31, 2022, the value of the collateral received from each seller
exceeded the value of the repurchase agreements.
See Notes to Financial Statements Page 73
FIRST TRUST INDXX NEXTG ETF (NXTG)
PORTFOLIO OF INVESTMENTS (CONTINUED)
MARCH 31, 2022 (UNAUDITED)
% OF TOTAL
CURRENCY EXPOSURE DIVERSIFICATION INVESTMENTS
-------------------------------------------------------------
United States Dollar 49.0%
Japanese Yen 9.8
Euro 8.3
New Taiwan Dollar 6.4
Indian Rupee 4.4
Hong Kong Dollar 4.3
South Korean Won 3.4
Swedish Krona 2.4
Canadian Dollar 2.1
British Pound Sterling 2.0
South African Rand 1.6
Swiss Franc 0.7
Thai Baht 0.7
Singapore Dollar 0.7
United Arab Emirates Dirham 0.7
New Zealand Dollar 0.7
Qatar Riyal 0.6
Australian Dollar 0.6
Norwegian Krone 0.6
Malaysian Ringgit 0.6
Philippine Peso 0.4
------
Total 100.0%
======
------------------------------
VALUATION INPUTS
A summary of the inputs used to value the Fund's investments as of March 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
3/31/2022 PRICES INPUTS INPUTS
--------------- --------------- --------------- ---------------
Common Stocks:
Brazil........................................ $ 7,730,888 $ 7,730,888 $ -- $ --
Canada........................................ 20,366,841 20,366,841 -- --
Cayman Islands................................ 17,328,931 8,827,089 8,501,842 --
Finland....................................... 23,155,777 11,035,747 12,120,030 --
France........................................ 6,722,815 6,722,815 -- --
Guernsey...................................... 13,906,397 13,906,397 -- --
India......................................... 65,435,515 23,677,847 41,757,668 --
Netherlands................................... 20,782,506 9,950,641 10,831,865 --
Philippines................................... 10,249,483 6,012,278 4,237,205 --
Qatar......................................... 6,091,196 6,091,196 -- --
Russia........................................ 263,761 -- -- 263,761
South Africa.................................. 15,378,729 7,722,441 7,656,288 --
South Korea................................... 38,604,659 6,393,848 32,210,811 --
Taiwan........................................ 71,486,397 10,562,789 60,923,608 --
United States................................. 334,683,472 334,683,472 -- --
Other Country Categories*..................... 265,102,823 -- 265,102,823 --
Money Market Funds.............................. 28,862,942 28,862,942 -- --
Repurchase Agreements........................... 3,219,330 -- 3,219,330 --
--------------- --------------- --------------- ---------------
Total Investments............................... $ 949,372,462 $ 502,547,231 $ 446,561,470 $ 263,761
=============== =============== =============== ===============
* See Portfolio of Investments for country breakout.
Level 3 Common Stocks are fair valued by the Advisor's Pricing Committee and are
footnoted in the Portfolio of Investments. Level 3 Common Stocks values are
based on unobservable and non-quantitative inputs.
Page 74 See Notes to Financial Statements
FIRST TRUST S-NETWORK FUTURE VEHICLES & TECHNOLOGY ETF (CARZ)
PORTFOLIO OF INVESTMENTS
MARCH 31, 2022 (UNAUDITED)
SHARES DESCRIPTION VALUE
-------------------------------------------------------------
COMMON STOCKS (a) -- 99.6%
AUSTRALIA -- 2.0%
45,608 Allkem Ltd. (b) (c) $ 384,950
660,597 ioneer Ltd. (b) (c) 337,769
326,245 Nickel Mines Ltd. (b) 309,037
142,569 Pilbara Minerals Ltd. (b) (c) 336,824
--------------
1,368,580
--------------
AUSTRIA -- 0.5%
21,971 ams-OSRAM AG (b) (c) 336,310
--------------
BELGIUM -- 0.5%
3,186 Solvay S.A. (b) 314,000
--------------
CANADA -- 1.4%
13,537 First Quantum Minerals Ltd. 468,649
12,917 Lithium Americas Corp. (c) (d) 497,710
--------------
966,359
--------------
CAYMAN ISLANDS -- 4.3%
2,493 Ambarella, Inc. (c) 261,565
4,099 Baidu, Inc., ADR (c) 542,298
150,571 Geely Automobile Holdings
Ltd. (b) 233,237
30,607 Himax Technologies, Inc.,
ADR (d) 332,392
12,612 Li Auto, Inc., ADR (c) 325,516
17,423 NIO, Inc., ADR (c) 366,754
26,383 Niu Technologies, ADR (c) 254,860
10,581 XPeng, Inc., ADR (c) 291,930
223,633 Yadea Group Holdings
Ltd. (b) (e) (f) 342,574
--------------
2,951,126
--------------
CHILE -- 0.9%
6,986 Sociedad Quimica y Minera de
Chile S.A., ADR 598,002
--------------
CHINA -- 2.6%
30,945 BYD Co., Ltd., Class H (b) 860,744
25,668 Ganfeng Lithium Co., Ltd.,
Class H (b) (e) (f) 361,120
192,599 Great Wall Motor Co., Ltd.,
Class H (b) 302,281
363,156 Guangzhou Automobile Group
Co., Ltd., Class H (b) 299,451
--------------
1,823,596
--------------
GERMANY -- 5.4%
4,031 Bayerische Motoren Werke
AG (b) 348,351
3,498 Continental AG (b) (c) 250,760
14,182 Infineon Technologies AG (b) 479,780
9,042 Mercedes-Benz Group AG (b) 634,657
3,800 Porsche Automobil Holding SE
(Preference Shares) (b) 365,539
7,435 Volkswagen AG
(Preference Shares) (b) 1,277,722
2,387 Wacker Chemie AG (b) 406,267
--------------
3,763,076
--------------
SHARES DESCRIPTION VALUE
-------------------------------------------------------------
INDIA -- 0.5%
11,414 Tata Motors Ltd., ADR (c) (d) $ 319,021
--------------
JAPAN -- 8.5%
9,200 Aisin Corp. (b) 314,434
6,200 Denso Corp. (b) 395,561
21,364 Honda Motor Co., Ltd. (b) 605,581
68,509 Nissan Motor Co., Ltd. (b) (c) 304,408
33,700 Panasonic Corp. (b) 327,297
30,600 Renesas Electronics Corp. (b) (c) 354,561
19,910 Subaru Corp. (b) 316,230
19,700 Tanaka Chemical Corp. (b) (c) 276,805
165,260 Toyota Motor Corp. (b) 2,980,961
--------------
5,875,838
--------------
JERSEY -- 0.5%
3,186 Aptiv PLC (c) 381,396
--------------
NETHERLANDS -- 2.5%
4,255 Alfen Beheer BV (b) (c) (e) (f) 431,394
2,756 NXP Semiconductors N.V. 510,081
27,535 Stellantis N.V. (b) 445,780
7,731 STMicroelectronics N.V. (b) 334,758
7,416 Yandex N.V.,
Class A (b) (c) (g) (h) 9,103
--------------
1,731,116
--------------
SOUTH KOREA -- 8.1%
1,039 Ecopro BM Co., Ltd. (b) 335,771
2,191 Hyundai Motor Co. (b) 323,262
4,054 Iljin Materials Co., Ltd. (b) 319,493
5,420 Kia Corp. (b) 328,280
610 LG Chem Ltd. (b) 266,550
3,122 LX Semicon Co., Ltd. (b) 369,589
53,162 Samsung Electronics Co., Ltd. (b) 3,042,088
691 Samsung SDI Co., Ltd. (b) 336,303
2,959 SK IE Technology Co.,
Ltd. (b) (c) (e) (f) 304,861
--------------
5,626,197
--------------
SWEDEN -- 0.6%
23,980 Volvo AB, Class B (b) 447,355
--------------
TAIWAN -- 4.5%
84,038 Coremax Corp. (b) 469,903
25,094 Taiwan Semiconductor
Manufacturing Co., Ltd., ADR 2,616,300
--------------
3,086,203
--------------
UNITED STATES -- 56.8%
18,950 Advanced Micro Devices, Inc. (c) 2,071,993
1,650 Albemarle Corp. 364,897
12,596 Allegro MicroSystems, Inc. (c) 357,726
1,260 Alphabet, Inc., Class A (c) 3,504,501
6,318 Analog Devices, Inc. 1,043,607
20,285 Apple, Inc. 3,541,964
3,633 Autoliv, Inc. 277,707
16,932 Blink Charging Co. (c) (d) 448,021
7,781 BorgWarner, Inc. 302,681
5,144 Cerence, Inc. (c) 185,698
26,241 ChargePoint Holdings, Inc. (c) (d) 521,671
See Notes to Financial Statements Page 75
FIRST TRUST S-NETWORK FUTURE VEHICLES & TECHNOLOGY ETF (CARZ)
PORTFOLIO OF INVESTMENTS (CONTINUED)
MARCH 31, 2022 (UNAUDITED)
SHARES DESCRIPTION VALUE
-------------------------------------------------------------
COMMON STOCKS (a) (CONTINUED)
UNITED STATES (CONTINUED)
4,190 Cirrus Logic, Inc. (c) $ 355,270
1,644 Cummins, Inc. 337,201
44,052 EVgo, Inc. (c) (d) 566,509
47,072 Ford Motor Co. 795,988
15,049 General Motors Co. (c) 658,243
10,976 Gentex Corp. 320,170
63,576 Intel Corp. 3,150,827
2,035 Lear Corp. 290,171
15,828 Livent Corp. (c) 412,636
24,610 Luminar Technologies, Inc. (c) (d) 384,654
8,342 Marvell Technology, Inc. 598,205
6,012 MaxLinear, Inc. (c) 350,800
5,817 Microchip Technology, Inc. 437,089
12,530 Micron Technology, Inc. 975,962
76,548 Microvast Holdings, Inc. (c) (d) 512,872
13,143 NVIDIA Corp. 3,586,199
6,004 ON Semiconductor Corp. (c) 375,910
94,657 Ouster, Inc. (c) (d) 425,956
16,232 Plug Power, Inc. (c) 464,398
2,645 Qorvo, Inc. (c) 328,244
18,995 QUALCOMM, Inc. 2,902,816
13,931 Rambus, Inc. (c) 444,260
2,081 Silicon Laboratories, Inc. (c) 312,566
1,692 SiTime Corp. (c) 419,311
2,543 Skyworks Solutions, Inc. 338,931
1,595 Synaptics, Inc. (c) 318,203
3,386 Tesla, Inc. (c) 3,648,754
10,334 Texas Instruments, Inc. 1,896,082
92,845 Velodyne Lidar, Inc. (c) (d) 237,683
98,751 Workhorse Group, Inc. (c) (d) 493,755
21,081 Xperi Holding Corp. 365,123
--------------
39,325,254
--------------
TOTAL COMMON STOCKS
-- 99.6% 68,913,429
(Cost $67,339,706) --------------
MONEY MARKET FUNDS -- 5.2%
3,618,077 Goldman Sachs Financial Square
Treasury Obligations Fund -
Institutional Class -
0.20% (i) (j) 3,618,077
(Cost $3,618,077) --------------
PRINCIPAL
VALUE DESCRIPTION VALUE
-------------------------------------------------------------
REPURCHASE AGREEMENTS -- 0.6%
$ 403,555 BNP Paribas S.A., 0.24% (i),
dated 03/31/22, due 04/01/22,
with a maturity value of
$403,558. Collateralized by
U.S. Treasury Note, interest
rate of 0.25%, due 09/30/25.
The value of the collateral
including accrued interest is
$411,162. (j) 403,555
(Cost $403,555) --------------
DESCRIPTION VALUE
-------------------------------------------------------------
TOTAL INVESTMENTS -- 105.4% $ 72,935,061
(Cost $71,361,338)
NET OTHER ASSETS AND
LIABILITIES -- (5.4)% (3,764,425)
--------------
NET ASSETS -- 100.0% $ 69,170,636
==============
(a) Portfolio securities are categorized based upon their country of
incorporation, which can be different from the country categorization of
the Fund's underlying index. For a breakdown of the portfolio securities
by sector, please see the Fund Performance Overview.
(b) This security is fair valued by the Advisor's Pricing Committee in
accordance with procedures adopted by the Trust's Board of Trustees, and
in accordance with provisions of the Investment Company Act of 1940, as
amended. At March 31, 2022, securities noted as such are valued at
$21,821,701 or 31.5% of net assets. Certain of these securities are fair
valued using a factor provided by a third-party pricing service due to the
change in value between the foreign markets' close and the New York Stock
Exchange close exceeding a certain threshold. On days when this threshold
is not exceeded, these securities are typically valued at the last sale
price on the exchange on which they are principally traded.
(c) Non-income producing security.
(d) All or a portion of this security is on loan (see Note 2E - Securities
Lending in the Notes to Financial Statements). The remaining contractual
maturity of all of the securities lending transactions is overnight and
continuous. The aggregate value of such securities is $3,901,797 and the
total value of the collateral held by the Fund is $4,021,632.
(e) This security is exempt from registration upon resale under Rule 144A of
the Securities Act of 1933, as amended (the "1933 Act") and may be resold
in transactions exempt from registration, normally to qualified
institutional buyers. This security is not restricted on the foreign
exchange where it trades freely without any additional registration. As
such, it does not require the additional disclosure required of restricted
securities.
(f) This security may be resold to qualified foreign investors and foreign
institutional buyers under Regulation S of the 1933 Act.
(g) This security's value was determined using significant unobservable inputs
(see Note 2A - Portfolio Valuation in the Notes to Financial Statements).
(h) Pursuant to procedures adopted by the Trust's Board of Trustees, this
security has been determined to be illiquid by First Trust Advisors, L.P.,
the Fund's Advisor.
(i) Rate shown reflects yield as of March 31, 2022.
(j) This security serves as collateral for securities on loan.
ADR - American Depositary Receipt
Page 76 See Notes to Financial Statements
FIRST TRUST S-NETWORK FUTURE VEHICLES & TECHNOLOGY ETF (CARZ)
PORTFOLIO OF INVESTMENTS (CONTINUED)
MARCH 31, 2022 (UNAUDITED)
---------------------------------
OFFSETTING ASSETS AND LIABILITIES
-------------------------------------------------------------
Offsetting assets and liabilities requires entities to disclose both gross and
net information about instruments and transactions eligible for offset, and to
disclose instruments and transactions subject to master netting or similar
agreements (see Note 2C - Offsetting on the Statements of Assets and Liabilities
in the Notes to Financial Statements).
The Fund's loaned securities were all subject to an enforceable Securities
Lending Agency Agreement. Securities lent in accordance with the Securities
Lending Agency Agreement on a gross basis were as follows:
SECURITIES LENDING AGENCY AGREEMENT
-------------------------------------------------------------
Total gross amount presented on the
Statements of Assets and Liabilities(1) $ 3,901,797
Non-cash Collateral(2) (3,901,797)
--------------
Net Amount $ --
==============
(1) The amount presented on the Statements of Assets and Liabilities, which is
included in "Investments, at value," is not offset and is shown on a gross
basis.
(2) At March 31, 2022, the value of the collateral received from each borrower
exceeded the value of the related securities loaned. This amount is
disclosed on the Portfolio of Investments.
The Fund's investments in repurchase agreements were all subject to an
enforceable Master Repurchase Agreement. Repurchase Agreements on a gross basis
were as follows:
REPURCHASE AGREEMENTS
-------------------------------------------------------------
Total gross amount presented on the
Statements of Assets and Liabilities(3) $ 403,555
Non-cash Collateral(4) (403,555)
--------------
Net Amount $ --
==============
(3) The amount is included in "Investments, at value" on the Statements of
Assets and Liabilities.
(4) At March 31, 2022, the value of the collateral received from each seller
exceeded the value of the repurchase agreements.
% OF TOTAL
CURRENCY EXPOSURE DIVERSIFICATION INVESTMENTS
-------------------------------------------------------------
United States Dollar 68.8%
Japanese Yen 8.1
South Korean Won 7.7
Euro 7.2
Hong Kong Dollar 3.3
Australian Dollar 1.9
Canadian Dollar 1.3
New Taiwan Dollar 0.6
Swedish Krona 0.6
Swiss Franc 0.5
------
Total 100.0%
======
See Notes to Financial Statements Page 77
FIRST TRUST S-NETWORK FUTURE VEHICLES & TECHNOLOGY ETF (CARZ)
PORTFOLIO OF INVESTMENTS (CONTINUED)
MARCH 31, 2022 (UNAUDITED)
------------------------------
VALUATION INPUTS
A summary of the inputs used to value the Fund's investments as of March 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
3/31/2022 PRICES INPUTS INPUTS
--------------- --------------- --------------- ---------------
Common Stocks:
Canada........................................ $ 966,359 $ 966,359 $ -- $ --
Cayman Islands................................ 2,951,126 2,375,315 575,811 --
Chile......................................... 598,002 598,002 -- --
India......................................... 319,021 319,021 -- --
Jersey........................................ 381,396 381,396 -- --
Netherlands................................... 1,731,116 510,081 1,211,932 9,103
Taiwan........................................ 3,086,203 2,616,300 469,903 --
United States................................. 39,325,254 39,325,254 -- --
Other Country Categories*..................... 19,554,952 -- 19,554,952 --
Money Market Funds.............................. 3,618,077 3,618,077 -- --
Repurchase Agreements........................... 403,555 -- 403,555 --
--------------- --------------- --------------- ---------------
Total Investments............................... $ 72,935,061 $ 50,709,805 $ 22,216,153 $ 9,103
=============== =============== =============== ===============
* See Portfolio of Investments for country breakout.
Level 3 Common Stocks are fair valued by the Advisor's Pricing Committee and are
footnoted in the Portfolio of Investments. Level 3 Common Stocks values are
based on unobservable and non-quantitative inputs.
Page 78 See Notes to Financial Statements
FIRST TRUST CLOUD COMPUTING ETF (SKYY)
PORTFOLIO OF INVESTMENTS
MARCH 31, 2022 (UNAUDITED)
SHARES DESCRIPTION VALUE
-------------------------------------------------------------
COMMON STOCKS (a) -- 100.0%
CANADA -- 2.1%
673,553 Open Text Corp. $ 28,558,647
126,609 Shopify, Inc., Class A (b) 85,582,620
--------------
114,141,267
--------------
CAYMAN ISLANDS -- 3.4%
1,671,240 Alibaba Group Holding Ltd.,
ADR (b) 181,830,912
--------------
GERMANY -- 1.1%
520,515 SAP SE, ADR (c) 57,756,344
--------------
ISRAEL -- 1.2%
639,873 Wix.com Ltd. (b) 66,841,134
--------------
NETHERLANDS -- 0.6%
338,139 Elastic N.V. (b) 30,077,464
--------------
UNITED KINGDOM -- 1.6%
287,516 Atlassian Corp. PLC, Class A (b) 84,480,826
--------------
UNITED STATES -- 90.0%
187,947 Adobe, Inc. (b) 85,632,412
1,082,565 Akamai Technologies, Inc. (b) 129,247,435
65,083 Alphabet, Inc., Class A (b) 181,018,602
57,244 Amazon.com, Inc. (b) 186,612,578
618,530 Anaplan, Inc. (b) 40,235,377
258,969 Appfolio, Inc., Class A (b) 29,317,881
961,277 Appian Corp. (b) 58,464,867
1,513,414 AppLovin Corp., Class A (b) 83,343,709
1,432,394 Arista Networks, Inc. (b) 199,074,118
534,766 Asana, Inc., Class A (b) 21,374,597
281,968 Avalara, Inc. (b) 28,058,636
468,867 Blackbaud, Inc. (b) 28,071,067
389,055 Blackline, Inc. (b) 28,486,607
1,144,070 Box, Inc., Class A (b) 33,246,674
2,101,462 Cisco Systems, Inc. 117,177,521
1,006,685 Cloudflare, Inc., Class A (b) 120,500,195
2,054,192 Confluent, Inc., Class A (b) 84,221,872
1,390,589 Couchbase, Inc. (b) (c) 24,224,060
242,125 Coupa Software, Inc. (b) 24,607,164
150,093 Crowdstrike Holdings, Inc.,
Class A (b) 34,083,118
181,860 Datadog, Inc., Class A (b) 27,546,334
2,963,552 DigitalOcean Holdings, Inc. (b) 171,441,483
247,403 DocuSign, Inc. (b) 26,501,809
1,316,838 Domo, Inc., Class B (b) 66,592,498
1,291,306 Dropbox, Inc., Class A (b) 30,022,865
741,390 Everbridge, Inc. (b) 32,354,260
4,725,750 Fastly, Inc., Class A (b) 82,133,535
5,521,291 Hewlett Packard Enterprise Co. 92,260,773
167,424 HubSpot, Inc. (b) 79,516,355
717,484 International Business Machines
Corp. 93,287,270
61,768 Intuit, Inc. 29,700,525
14,140,757 Lumen Technologies, Inc. 159,366,331
588,364 Microsoft Corp. 181,398,505
198,416 MicroStrategy, Inc.,
Class A (b) (c) 96,493,669
383,517 MongoDB, Inc. (b) 170,124,306
1,121,444 NetApp, Inc. 93,079,852
SHARES DESCRIPTION VALUE
-------------------------------------------------------------
UNITED STATES (CONTINUED)
2,314,041 Oracle Corp. $ 191,440,612
49,303 Palo Alto Networks, Inc. (b) 30,691,611
86,377 Paycom Software, Inc. (b) 29,919,265
137,917 Paylocity Holding Corp. (b) 28,379,181
6,777,092 Pure Storage, Inc., Class A (b) 239,299,119
450,417 Q2 Holdings, Inc. (b) 27,768,208
966,031 Qualtrics International, Inc.,
Class A (b) 27,580,185
233,816 Qualys, Inc. (b) 33,297,737
15,794,953 Rackspace Technology, Inc. (b) (c) 176,271,675
671,808 RingCentral, Inc., Class A (b) 78,742,616
417,514 salesforce.com, Inc. (b) 88,646,572
151,573 ServiceNow, Inc. (b) 84,409,488
551,057 Smartsheet, Inc., Class A (b) 30,186,902
110,293 Snowflake, Inc., Class A (b) 25,271,435
744,272 Splunk, Inc. (b) 110,606,262
450,000 Sprout Social, Inc., Class A (b) 36,054,000
989,520 Squarespace, Inc., Class A (b) 25,351,502
1,427,857 Toast, Inc., Class A (b) (c) 31,027,333
343,405 Trade Desk (The), Inc.,
Class A (b) 23,780,796
502,858 Twilio, Inc., Class A (b) 82,876,027
127,920 Veeva Systems, Inc., Class A (b) 27,177,883
1,498,446 VMware, Inc., Class A 170,628,046
127,920 Workday, Inc., Class A (b) 30,631,723
834,749 Workiva, Inc. (b) 98,500,382
251,136 Zendesk, Inc. (b) 30,209,149
220,962 Zoom Video Communications,
Inc., Class A (b) 25,903,375
122,513 Zscaler, Inc. (b) 29,559,937
1,930,147 Zuora, Inc., Class A (b) 28,913,602
--------------
4,811,943,483
--------------
TOTAL COMMON STOCKS
-- 100.0% 5,347,071,430
(Cost $5,145,325,493) --------------
MONEY MARKET FUNDS -- 2.5%
134,129,399 Goldman Sachs Financial Square
Treasury Obligations Fund -
Institutional Class -
0.20% (d) (e) 134,129,399
(Cost $134,129,399) --------------
PRINCIPAL
VALUE DESCRIPTION VALUE
-------------------------------------------------------------
REPURCHASE AGREEMENTS -- 0.3%
$ 14,960,597 BNP Paribas S.A., 0.24% (d),
dated 03/31/22, due 04/01/22,
with a maturity value of
$14,960,697. Collateralized by
U.S. Treasury Note, interest
rate of 0.25%, due 09/30/25.
The value of the collateral
including accrued interest is
$15,242,597. (e) 14,960,597
(Cost $14,960,597) --------------
See Notes to Financial Statements Page 79
FIRST TRUST CLOUD COMPUTING ETF (SKYY)
PORTFOLIO OF INVESTMENTS (CONTINUED)
MARCH 31, 2022 (UNAUDITED)
DESCRIPTION VALUE
-------------------------------------------------------------
TOTAL INVESTMENTS -- 102.8% $5,496,161,426
(Cost $5,294,415,489)
NET OTHER ASSETS AND
LIABILITIES -- (2.8)% (149,745,079)
--------------
NET ASSETS -- 100.0% $5,346,416,347
==============
(a) Portfolio securities are categorized based upon their country of
incorporation, which can be different from the country categorization of
the Fund's underlying index. For a breakdown of the portfolio securities
by sector, please see the Fund Performance Overview.
(b) Non-income producing security.
(c) All or a portion of this security is on loan (see Note 2E - Securities
Lending in the Notes to Financial Statements). The remaining contractual
maturity of all of the securities lending transactions is overnight and
continuous. The aggregate value of such securities is $141,356,084 and the
total value of the collateral held by the Fund is $149,089,996.
(d) Rate shown reflects yield as of March 31, 2022.
(e) This security serves as collateral for securities on loan.
ADR - American Depositary Receipt
---------------------------------
OFFSETTING ASSETS AND LIABILITIES
-------------------------------------------------------------
Offsetting assets and liabilities requires entities to disclose both gross and
net information about instruments and transactions eligible for offset, and to
disclose instruments and transactions subject to master netting or similar
agreements (see Note 2C - Offsetting on the Statements of Assets and Liabilities
in the Notes to Financial Statements).
The Fund's loaned securities were all subject to an enforceable Securities
Lending Agency Agreement. Securities lent in accordance with the Securities
Lending Agency Agreement on a gross basis were as follows:
SECURITIES LENDING AGENCY AGREEMENT
-------------------------------------------------------------
Total gross amount presented on the
Statements of Assets and Liabilities(1) $ 141,356,084
Non-cash Collateral(2) (141,356,084)
--------------
Net Amount $ --
==============
(1) The amount presented on the Statements of Assets and Liabilities, which is
included in "Investments, at value," is not offset and is shown on a gross
basis.
(2) At March 31, 2022, the value of the collateral received from each borrower
exceeded the value of the related securities loaned. This amount is
disclosed on the Portfolio of Investments.
The Fund's investments in repurchase agreements were all subject to an
enforceable Master Repurchase Agreement. Repurchase Agreements on a gross basis
were as follows:
REPURCHASE AGREEMENTS
-------------------------------------------------------------
Total gross amount presented on the
Statements of Assets and Liabilities(3) $ 14,960,597
Non-cash Collateral(4) (14,960,597)
--------------
Net Amount $ --
==============
(3) The amount is included in "Investments, at value" on the Statements of
Assets and Liabilities.
(4) At March 31, 2022, the value of the collateral received from each seller
exceeded the value of the repurchase agreements.
Page 80 See Notes to Financial Statements
FIRST TRUST CLOUD COMPUTING ETF (SKYY)
PORTFOLIO OF INVESTMENTS (CONTINUED)
MARCH 31, 2022 (UNAUDITED)
------------------------------
VALUATION INPUTS
A summary of the inputs used to value the Fund's investments as of March 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
3/31/2022 PRICES INPUTS INPUTS
--------------- --------------- --------------- ---------------
Common Stocks*.................................. $ 5,347,071,430 $ 5,347,071,430 $ -- $ --
Money Market Funds.............................. 134,129,399 134,129,399 -- --
Repurchase Agreements........................... 14,960,597 -- 14,960,597 --
--------------- --------------- --------------- ---------------
Total Investments............................... $ 5,496,161,426 $ 5,481,200,829 $ 14,960,597 $ --
=============== =============== =============== ===============
* See Portfolio of Investments for country breakout.
See Notes to Financial Statements Page 81
FIRST TRUST INTERNATIONAL EQUITY OPPORTUNITIES ETF (FPXI)
PORTFOLIO OF INVESTMENTS
MARCH 31, 2022 (UNAUDITED)
SHARES DESCRIPTION VALUE
-------------------------------------------------------------
COMMON STOCKS (a) -- 99.4%
AUSTRALIA -- 4.1%
135,895 Macquarie Group Ltd. $ 20,670,610
194,268 Netwealth Group Ltd. (b) 2,157,287
--------------
22,827,897
--------------
BERMUDA -- 1.2%
1,821,230 AutoStore Holdings Ltd. (b) (c) 6,598,645
--------------
BRAZIL -- 2.9%
2,529,340 Hapvida Participacoes e
Investimentos S.A. (d) (e) 6,332,581
711,934 Rede D'Or Sao Luiz S.A. (d) (e) 7,494,593
715,476 Sendas Distribuidora S.A. 2,461,536
--------------
16,288,710
--------------
CANADA -- 2.1%
32,672 ATS Automation Tooling
Systems, Inc. (c) 1,178,664
62,355 Intact Financial Corp. 9,213,467
25,806 Stelco Holdings, Inc. 1,073,195
--------------
11,465,326
--------------
CAYMAN ISLANDS -- 10.8%
1,571,639 China Risun Group Ltd. (b) (e) 829,759
1,508,700 Kuaishou
Technology (b) (c) (d) (e) 13,823,782
365,768 Li Auto, Inc., ADR (c) 9,440,472
1,222,402 Meituan, Class B (b) (c) (d) (e) 23,157,111
1,641,837 NU Holdings Ltd. (c) (f) 12,674,982
--------------
59,926,106
--------------
CHINA -- 6.3%
4,269,709 China Merchants Bank Co., Ltd.,
Class H (b) 33,237,237
1,539,714 China Merchants Securities Co.,
Ltd., Class H (b) (d) (e) 1,801,987
--------------
35,039,224
--------------
DENMARK -- 0.5%
73,656 Genmab A/S, ADR (c) 2,664,874
--------------
FRANCE -- 0.5%
67,639 La Francaise des Jeux
SAEM (b) (d) (e) 2,683,431
--------------
GERMANY -- 12.0%
161,031 BioNTech SE, ADR (c) 27,465,447
291,432 Daimler Truck Holding AG (b) (c) 8,082,908
499,324 Siemens Healthineers
AG (b) (d) (e) 30,943,672
--------------
66,492,027
--------------
IRELAND -- 1.6%
28,882 ICON PLC (c) 7,024,680
58,813 nVent Electric PLC 2,045,516
--------------
9,070,196
--------------
ISRAEL -- 0.8%
63,608 ZIM Integrated Shipping Services
Ltd. (f) 4,624,938
--------------
SHARES DESCRIPTION VALUE
-------------------------------------------------------------
ITALY -- 1.0%
463,980 Nexi S.p.A. (b) (c) (d) (e) $ 5,354,228
--------------
JAPAN -- 9.2%
307,416 Mercari, Inc. (b) (c) 7,935,646
2,737,717 SoftBank Corp. (b) 31,930,303
787,958 Takeda Pharmaceutical Co., Ltd.,
ADR (f) 11,283,558
--------------
51,149,507
--------------
LUXEMBOURG -- 0.3%
763,479 Samsonite International
S.A. (b) (c) (d) (e) 1,708,197
--------------
MALAYSIA -- 1.0%
6,674,940 MR DIY Group M Bhd (b) (d) (e) 5,484,930
--------------
MEXICO -- 0.5%
1,271,749 Becle SAB de CV 3,116,392
--------------
NETHERLANDS -- 13.1%
24,089 Adyen N.V. (b) (c) (d) (e) 47,713,213
177,757 JDE Peet's N.V. (b) 5,089,829
367,960 Prosus N.V. (b) 19,843,395
--------------
72,646,437
--------------
NORWAY -- 1.1%
244,007 Adevinta ASA (b) (c) 2,227,587
884,054 Var Energi AS (c) 3,705,378
--------------
5,932,965
--------------
SAUDI ARABIA -- 14.5%
258,904 ACWA Power Co. (b) (c) 9,175,507
185,919 Dr. Sulaiman Al Habib Medical
Services Group Co. (b) 9,399,075
28,330 Elm Co. (c) 1,622,094
4,813,807 Saudi Arabian Oil Co. (b) (d) (e) 55,217,700
106,239 Saudi Tadawul Group Holding
Co. (c) 5,408,943
--------------
80,823,319
--------------
SOUTH KOREA -- 1.2%
31,439 Hyundai Heavy Industries Co.,
Ltd. (b) (c) 3,077,485
36,572 SD Biosensor, Inc. (b) 1,677,440
27,734 SK Biopharmaceuticals Co.,
Ltd. (b) (c) 2,042,718
--------------
6,797,643
--------------
SPAIN -- 0.6%
87,449 Corp ACCIONA Energias
Renovables S.A. (b) (c) 3,232,803
--------------
SWEDEN -- 4.5%
264,256 EQT AB (b) 10,305,538
194,772 Nordnet AB publ (b) 3,486,722
244,471 Tele2 AB, Class B (b) 3,695,374
1,055,143 Volvo Car AB, Class B (b) (c) 7,588,539
--------------
25,076,173
--------------
SWITZERLAND -- 1.5%
219,715 On Holding AG, Class A (c) (f) 5,545,606
119,525 SIG Combibloc Group AG (b) 3,013,210
--------------
8,558,816
--------------
Page 82 See Notes to Financial Statements
FIRST TRUST INTERNATIONAL EQUITY OPPORTUNITIES ETF (FPXI)
PORTFOLIO OF INVESTMENTS (CONTINUED)
MARCH 31, 2022 (UNAUDITED)
SHARES DESCRIPTION VALUE
-------------------------------------------------------------
COMMON STOCKS (a) (CONTINUED)
THAILAND -- 3.7%
10,387,600 Gulf Energy Development
PCL (b) (e) $ 15,932,517
1,595,700 Osotspa PCL (b) (e) 1,792,530
1,520,200 SCG Packaging PCL (b) 2,755,892
--------------
20,480,939
--------------
UNITED ARAB EMIRATES -- 1.6%
5,666,099 ADNOC Drilling, Co. PJSC (c) 5,846,508
2,204,817 Fertiglobe PLC (b) 2,999,107
--------------
8,845,615
--------------
UNITED KINGDOM -- 1.7%
552,344 Avast PLC (d) (e) 4,106,809
247,695 Darktrace PLC (b) (c) 1,454,157
141,378 Drax Group PLC (b) 1,453,876
19,733 Endava PLC, ADR (c) 2,625,081
--------------
9,639,923
--------------
UNITED STATES -- 1.1%
18,706 SolarEdge Technologies, Inc. (c) 6,030,253
--------------
TOTAL COMMON STOCKS
-- 99.4% 552,559,514
(Cost $589,723,944) --------------
MONEY MARKET FUNDS -- 3.7%
20,380,543 Goldman Sachs Financial Square
Treasury Obligations Fund -
Institutional Class -
0.20% (g) (h) 20,380,543
(Cost $20,380,543) --------------
PRINCIPAL
VALUE DESCRIPTION VALUE
-------------------------------------------------------------
REPURCHASE AGREEMENTS -- 0.4%
$ 2,273,216 BNP Paribas S.A., 0.24% (g),
dated 03/31/22, due 04/01/22,
with a maturity value of
$2,273,231. Collateralized by
U.S. Treasury Note, interest
rate of 0.25%, due 09/30/25.
The value of the collateral
including accrued interest is
$2,316,065. (h) 2,273,216
(Cost $2,273,216) --------------
TOTAL INVESTMENTS -- 103.5% 575,213,273
(Cost $612,377,703)
NET OTHER ASSETS AND
LIABILITIES -- (3.5)% (19,429,412)
--------------
NET ASSETS -- 100.0% $ 555,783,861
==============
(a) Portfolio securities are categorized based upon their country of
incorporation, which can be different from the country categorization of
the Fund's underlying index. For a breakdown of the portfolio securities
by sector, please see the Fund Performance Overview.
(b) This security is fair valued by the Advisor's Pricing Committee in
accordance with procedures adopted by the Trust's Board of Trustees, and
in accordance with provisions of the Investment Company Act of 1940, as
amended. At March 31, 2022, securities noted as such are valued at
$388,903,337 or 70.0% of net assets. Certain of these securities are fair
valued using a factor provided by a third-party pricing service due to the
change in value between the foreign markets' close and the New York Stock
Exchange close exceeding a certain threshold. On days when this threshold
is not exceeded, these securities are typically valued at the last sale
price on the exchange on which they are principally traded.
(c) Non-income producing security.
(d) This security is exempt from registration upon resale under Rule 144A of
the Securities Act of 1933, as amended (the "1933 Act") and may be resold
in transactions exempt from registration, normally to qualified
institutional buyers. This security is not restricted on the foreign
exchange where it trades freely without any additional registration. As
such, it does not require the additional disclosure required of restricted
securities.
(e) This security may be resold to qualified foreign investors and foreign
institutional buyers under Regulation S of the 1933 Act.
(f) All or a portion of this security is on loan (see Note 2E - Securities
Lending in the Notes to Financial Statements). The remaining contractual
maturity of all of the securities lending transactions is overnight and
continuous. The aggregate value of such securities is $21,088,947 and the
total value of the collateral held by the Fund is $22,653,759.
(g) Rate shown reflects yield as of March 31, 2022.
(h) This security serves as collateral for securities on loan.
ADR - American Depositary Receipt
See Notes to Financial Statements Page 83
FIRST TRUST INTERNATIONAL EQUITY OPPORTUNITIES ETF (FPXI)
PORTFOLIO OF INVESTMENTS (CONTINUED)
MARCH 31, 2022 (UNAUDITED)
---------------------------------
OFFSETTING ASSETS AND LIABILITIES
-------------------------------------------------------------
Offsetting assets and liabilities requires entities to disclose both gross and
net information about instruments and transactions eligible for offset, and to
disclose instruments and transactions subject to master netting or similar
agreements (see Note 2C - Offsetting on the Statements of Assets and Liabilities
in the Notes to Financial Statements).
The Fund's loaned securities were all subject to an enforceable Securities
Lending Agency Agreement. Securities lent in accordance with the Securities
Lending Agency Agreement on a gross basis were as follows:
SECURITIES LENDING AGENCY AGREEMENT
-------------------------------------------------------------
Total gross amount presented on the
Statements of Assets and Liabilities(1) $ 21,088,947
Non-cash Collateral(2) (21,088,947)
--------------
Net Amount $ --
==============
(1) The amount presented on the Statements of Assets and Liabilities, which is
included in "Investments, at value," is not offset and is shown on a gross
basis.
(2) At March 31, 2022, the value of the collateral received from each borrower
exceeded the value of the related securities loaned. This amount is
disclosed on the Portfolio of Investments.
The Fund's investments in repurchase agreements were all subject to an
enforceable Master Repurchase Agreement. Repurchase Agreements on a gross basis
were as follows:
REPURCHASE AGREEMENTS
-------------------------------------------------------------
Total gross amount presented on the
Statements of Assets and Liabilities(3) $ 2,273,216
Non-cash Collateral(4) (2,273,216)
--------------
Net Amount $ --
==============
(3) The amount is included in "Investments, at value" on the Statements of
Assets and Liabilities.
(4) At March 31, 2022, the value of the collateral received from each seller
exceeded the value of the repurchase agreements.
% OF TOTAL
CURRENCY EXPOSURE DIVERSIFICATION INVESTMENTS
-------------------------------------------------------------
Euro 21.4%
United States Dollar 19.8
Saudi Riyal 14.0
Hong Kong Dollar 13.0
Japanese Yen 6.9
Swedish Krona 4.4
Australian Dollar 4.0
Thai Baht 3.6
Brazilian Real 2.8
Norwegian Krone 2.2
Canadian Dollar 2.0
United Arab Emirates Dirham 1.5
British Pound Sterling 1.2
South Korean Won 1.2
Malaysian Ringgit 1.0
Mexican Peso 0.5
Swiss Franc 0.5
------
Total 100.0%
======
Page 84 See Notes to Financial Statements
FIRST TRUST INTERNATIONAL EQUITY OPPORTUNITIES ETF (FPXI)
PORTFOLIO OF INVESTMENTS (CONTINUED)
MARCH 31, 2022 (UNAUDITED)
------------------------------
VALUATION INPUTS
A summary of the inputs used to value the Fund's investments as of March 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
3/31/2022 PRICES INPUTS INPUTS
--------------- --------------- --------------- ---------------
Common Stocks:
Australia..................................... $ 22,827,897 $ 20,670,610 $ 2,157,287 $ --
Brazil........................................ 16,288,710 16,288,710 -- --
Canada........................................ 11,465,326 11,465,326 -- --
Cayman Islands................................ 59,926,106 22,115,454 37,810,652 --
Denmark....................................... 2,664,874 2,664,874 -- --
Germany....................................... 66,492,027 27,465,447 39,026,580 --
Ireland....................................... 9,070,196 9,070,196 -- --
Israel........................................ 4,624,938 4,624,938 -- --
Japan......................................... 51,149,507 11,283,558 39,865,949 --
Mexico........................................ 3,116,392 3,116,392 -- --
Norway........................................ 5,932,965 3,705,378 2,227,587 --
Saudi Arabia.................................. 80,823,319 7,031,037 73,792,282 --
Switzerland................................... 8,558,816 5,545,606 3,013,210 --
United Arab Emirates.......................... 8,845,615 5,846,508 2,999,107 --
United Kingdom................................ 9,639,923 6,731,890 2,908,033 --
United States................................. 6,030,253 6,030,253 -- --
Other Country Categories*..................... 185,102,650 -- 185,102,650 --
Money Market Funds.............................. 20,380,543 20,380,543 -- --
Repurchase Agreements........................... 2,273,216 -- 2,273,216 --
--------------- --------------- --------------- ---------------
Total Investments............................... $ 575,213,273 $ 184,036,720 $ 391,176,553 $ --
=============== =============== =============== ===============
* See Portfolio of Investments for country breakout.
See Notes to Financial Statements Page 85
FIRST TRUST NASDAQ CYBERSECURITY ETF (CIBR)
PORTFOLIO OF INVESTMENTS
MARCH 31, 2022 (UNAUDITED)
SHARES DESCRIPTION VALUE
-------------------------------------------------------------
COMMON STOCKS (a) -- 100.1%
CAYMAN ISLANDS -- 0.4%
1,675,728 Arqit Quantum, Inc. (b) (c) $ 26,107,842
--------------
FRANCE -- 1.7%
852,014 Thales S.A. (d) 106,703,081
--------------
INDIA -- 3.1%
8,032,071 Infosys Ltd., ADR 199,918,247
--------------
ISRAEL -- 6.1%
1,262,315 Check Point Software
Technologies Ltd. (c) 174,527,672
1,046,043 CyberArk Software Ltd. (c) 176,519,756
1,087,604 Radware Ltd. (c) 34,770,700
1,073,116 Tufin Software Technologies
Ltd. (c) 9,582,926
--------------
395,401,054
--------------
JAPAN -- 1.5%
1,691,673 Trend Micro, Inc. (d) 98,790,526
--------------
SOUTH KOREA -- 2.3%
1,420,703 Ahnlab, Inc. (d) 144,470,617
--------------
UNITED KINGDOM -- 0.8%
8,459,867 Darktrace PLC (c) (d) 49,665,812
--------------
UNITED STATES -- 84.2%
2,294,786 A10 Networks, Inc. 32,012,265
1,689,307 Akamai Technologies, Inc. (c) 201,686,363
2,266,490 Booz Allen Hamilton Holding
Corp. 199,088,482
6,558,495 Cisco Systems, Inc. 365,701,681
3,141,785 Cloudflare, Inc., Class A (c) 376,071,665
1,873,722 Crowdstrike Holdings, Inc.,
Class A (c) 425,484,792
910,544 F5, Inc. (c) 190,258,169
530,828 Fortinet, Inc. (c) 181,405,161
5,412,364 Juniper Networks, Inc. 201,123,446
2,745,001 KnowBe4, Inc., Class A (c) 63,189,923
1,795,808 Leidos Holdings, Inc. 193,983,180
8,937,298 Mandiant, Inc. (c) 199,391,118
575,949 ManTech International Corp.,
Class A 49,641,044
6,310,687 NortonLifeLock, Inc. 167,359,419
1,000,239 Okta, Inc. (c) 150,996,079
629,298 OneSpan, Inc. (c) 9,087,063
615,510 Palo Alto Networks, Inc. (c) 383,161,130
2,558,742 Ping Identity Holding Corp. (c) 70,186,293
872,853 Qualys, Inc. (c) 124,302,996
1,317,532 Rapid7, Inc. (c) 146,562,260
2,266,589 Ribbon Communications, Inc. (c) 7,003,760
2,758,483 Sailpoint Technologies Holdings,
Inc. (c) 141,179,160
984,288 Science Applications International
Corp. 90,721,825
4,406,849 SentinelOne, Inc., Class A (c) 170,721,330
1,548,554 Splunk, Inc. (c) 230,130,610
2,573,270 Telos Corp. (c) 25,655,502
2,507,568 Tenable Holdings, Inc. (c) 144,912,355
SHARES DESCRIPTION VALUE
-------------------------------------------------------------
UNITED STATES (CONTINUED)
3,012,853 Varonis Systems, Inc. (c) $ 143,231,032
855,720 VeriSign, Inc. (c) 190,363,471
1,558,836 VMware, Inc., Class A 177,504,655
1,529,444 Zscaler, Inc. (c) 369,024,248
--------------
5,421,140,477
--------------
TOTAL COMMON STOCKS
-- 100.1% 6,442,197,656
(Cost $5,330,243,116) --------------
MONEY MARKET FUNDS -- 0.0%
3,682,868 Goldman Sachs Financial Square
Treasury Obligations Fund -
Institutional Class -
0.20% (e) (f) 3,682,868
(Cost $3,682,868) --------------
PRINCIPAL
VALUE DESCRIPTION VALUE
-------------------------------------------------------------
REPURCHASE AGREEMENTS -- 0.0%
$ 410,782 BNP Paribas S.A., 0.24% (e),
dated 03/31/22, due 04/01/22,
with a maturity value of
$410,784. Collateralized by
U.S. Treasury Note, interest
ate of 0.25%, due 09/30/25.
The value of the collateral
including accrued interest is
$418,525. (f) 410,782
(Cost $410,782) --------------
TOTAL INVESTMENTS -- 100.1% 6,446,291,306
(Cost $5,334,336,766)
NET OTHER ASSETS AND
LIABILITIES -- (0.1)% (7,908,859)
--------------
NET ASSETS -- 100.0% $6,438,382,447
==============
(a) Portfolio securities are categorized based upon their country of
incorporation, which can be different from the country categorization of
the Fund's underlying index. For a breakdown of the portfolio securities
by sector, please see the Fund Performance Overview.
(b) All or a portion of this security is on loan (see Note 2E - Securities
Lending in the Notes to Financial Statements). The remaining contractual
maturity of all of the securities lending transactions is overnight and
continuous. The aggregate value of such securities is $3,865,398 and the
total value of the collateral held by the Fund is $4,093,650.
(c) Non-income producing security.
(d) This security is fair valued by the Advisor's Pricing Committee in
accordance with procedures adopted by the Trust's Board of Trustees, and
in accordance with provisions of the Investment Company Act of 1940, as
amended. At March 31, 2022, securities noted as such are valued at
$399,630,036 or 6.2% of net assets. Certain of these securities are fair
valued using a factor provided by a
Page 86 See Notes to Financial Statements
FIRST TRUST NASDAQ CYBERSECURITY ETF (CIBR)
PORTFOLIO OF INVESTMENTS (CONTINUED)
MARCH 31, 2022 (UNAUDITED)
third-party pricing service due to the change in value between the foreign
markets' close and the New York Stock Exchange close exceeding a certain
threshold. On days when this threshold is not exceeded, these securities
are typically valued at the last sale price on the exchange on which they
are principally traded.
(e) Rate shown reflects yield as of March 31, 2022.
(f) This security serves as collateral for securities on loan.
ADR - American Depositary Receipt
---------------------------------
OFFSETTING ASSETS AND LIABILITIES
-------------------------------------------------------------
Offsetting assets and liabilities requires entities to disclose both gross and
net information about instruments and transactions eligible for offset, and to
disclose instruments and transactions subject to master netting or similar
agreements (see Note 2C - Offsetting on the Statements of Assets and Liabilities
in the Notes to Financial Statements).
The Fund's loaned securities were all subject to an enforceable Securities
Lending Agency Agreement. Securities lent in accordance with the Securities
Lending Agency Agreement on a gross basis were as follows:
SECURITIES LENDING AGENCY AGREEMENT
-------------------------------------------------------------
Total gross amount presented on the
Statements of Assets and Liabilities(1) $ 3,865,398
Non-cash Collateral(2) (3,865,398)
--------------
Net Amount $ --
==============
(1) The amount presented on the Statements of Assets and Liabilities, which is
included in "Investments, at value," is not offset and is shown on a gross
basis.
(2) At March 31, 2022, the value of the collateral received from each borrower
exceeded the value of the related securities loaned. This amount is
disclosed on the Portfolio of Investments.
The Fund's investments in repurchase agreements were all subject to an
enforceable Master Repurchase Agreement. Repurchase Agreements on a gross basis
were as follows:
REPURCHASE AGREEMENTS
-------------------------------------------------------------
Total gross amount presented on the
Statements of Assets and Liabilities(3) $ 410,782
Non-cash Collateral(4) (410,782)
--------------
Net Amount $ --
==============
(3) The amount is included in "Investments, at value" on the Statements of
Assets and Liabilities.
(4) At March 31, 2022, the value of the collateral received from each seller
exceeded the value of the repurchase agreements.
% OF TOTAL
CURRENCY EXPOSURE DIVERSIFICATION INVESTMENTS
-------------------------------------------------------------
United States Dollar 93.8%
South Korean Won 2.2
Euro 1.7
Japanese Yen 1.5
British Pound Sterling 0.8
------
Total 100.0%
======
See Notes to Financial Statements Page 87
FIRST TRUST NASDAQ CYBERSECURITY ETF (CIBR)
PORTFOLIO OF INVESTMENTS (CONTINUED)
MARCH 31, 2022 (UNAUDITED)
------------------------------
VALUATION INPUTS
A summary of the inputs used to value the Fund's investments as of March 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
3/31/2022 PRICES INPUTS INPUTS
--------------- --------------- --------------- ---------------
Common Stocks:
France........................................ $ 106,703,081 $ -- $ 106,703,081 $ --
Japan......................................... 98,790,526 -- 98,790,526 --
South Korea................................... 144,470,617 -- 144,470,617 --
United Kingdom................................ 49,665,812 -- 49,665,812 --
Other Country Categories*..................... 6,042,567,620 6,042,567,620 -- --
Money Market Funds.............................. 3,682,868 3,682,868 -- --
Repurchase Agreements........................... 410,782 -- 410,782 --
--------------- --------------- --------------- ---------------
Total Investments............................... $ 6,446,291,306 $ 6,046,250,488 $ 400,040,818 $ --
=============== =============== =============== ===============
* See Portfolio of Investments for country breakout.
Page 88 See Notes to Financial Statements
FIRST TRUST IPOX(R) EUROPE EQUITY OPPORTUNITIES ETF (FPXE)
PORTFOLIO OF INVESTMENTS
MARCH 31, 2022 (UNAUDITED)
SHARES DESCRIPTION VALUE
-------------------------------------------------------------
COMMON STOCKS (a) -- 99.5%
AUSTRIA -- 0.9%
915 ANDRITZ AG (b) $ 42,259
784 BAWAG Group AG (b) (c) (d) 39,560
--------------
81,819
--------------
BELGIUM -- 3.7%
1,936 Euronav N.V. (b) 20,588
2,567 UCB S.A. (b) 307,007
--------------
327,595
--------------
BERMUDA -- 3.7%
3,335 Arch Capital Group Ltd. (e) 161,481
45,253 AutoStore Holdings Ltd. (b) (e) 163,960
--------------
325,441
--------------
CYPRUS -- 0.0%
1,795 HeadHunter Group PLC,
ADR (b) (f) (h) 1,748
--------------
DENMARK -- 1.6%
686 Everfuel A/S (b) (e) 4,419
2,892 Genmab A/S, ADR (e) 104,633
440 Netcompany Group A/S (b) (c) (d) 28,996
--------------
138,048
--------------
FINLAND -- 1.3%
3,262 Kojamo OYJ (b) 78,381
295 Musti Group OYJ (b) 7,781
1,042 TietoEVRY OYJ (b) 27,734
--------------
113,896
--------------
FRANCE -- 2.4%
1,536 Antin Infrastructure Partners
S.A. (b) (e) 49,340
844 Believe S.A. (b) (e) 13,478
1,681 La Francaise des Jeux
SAEM (b) (c) (d) 66,690
942 Neoen S.A. (b) (c) (d) (e) 40,019
1,675 OVH Groupe SAS (b) (e) 42,952
--------------
212,479
--------------
GERMANY -- 20.1%
1,638 About You Holding SE (e) 22,560
2,134 BioNTech SE, ADR (e) 363,975
7,241 Daimler Truck Holding AG (b) (e) 200,830
924 Hensoldt AG (b) 26,903
12,010 Siemens Healthineers
AG (b) (c) (d) 744,273
1,955 Synlab AG (b) (e) 34,463
3,539 TeamViewer AG (b) (c) (d) (e) 52,262
4,400 Traton SE (b) 81,565
6,676 Vantage Towers AG (b) 235,800
--------------
1,762,631
--------------
IRELAND -- 2.6%
835 Dole PLC 10,354
574 ICON PLC (e) 139,608
2,192 nVent Electric PLC 76,238
--------------
226,200
--------------
SHARES DESCRIPTION VALUE
-------------------------------------------------------------
ISRAEL -- 3.2%
1,282 Global-e Online Ltd. (e) $ 43,306
732 Inmode Ltd. (e) 27,018
388 Monday.com Ltd. (e) 61,331
2,107 ZIM Integrated Shipping Services
Ltd. 153,200
--------------
284,855
--------------
ITALY -- 3.1%
7,130 Italgas S.p.A. (b) 45,743
11,529 Nexi S.p.A. (b) (c) (d) (e) 133,042
2,620 Stevanato Group S.p.A. (e) 52,714
5,288 Technoprobe S.p.A. (e) 38,960
--------------
270,459
--------------
JERSEY -- 0.6%
1,713 Atotech Ltd. (e) 37,600
1,299 JTC PLC (b) (c) (d) 14,364
--------------
51,964
--------------
LUXEMBOURG -- 2.4%
1,408 Befesa S.A. (b) (c) (d) 110,661
783 Shurgard Self Storage S.A. (b) 48,495
1,487 SUSE S.A. (b) (e) 47,872
--------------
207,028
--------------
NETHERLANDS -- 18.4%
340 Adyen N.V. (b) (c) (d) (e) 673,440
383 Alfen Beheer BV (b) (c) (d) (e) 38,831
3,808 CTP N.V. (b) (c) (d) 63,749
501 IMCD N.V. (b) 85,467
4,417 JDE Peet's N.V. (b) 126,475
7,314 Prosus N.V. (b) 394,430
1,582 Technip Energies N.V. (b) (e) 19,291
7,978 Universal Music Group N.V. (b) 212,967
--------------
1,614,650
--------------
NORWAY -- 2.1%
771 Crayon Group Holding
ASA (b) (c) (d) (e) 14,518
16,880 Elkem ASA (b) (c) (d) 72,030
1,469 Europris ASA (b) (c) (d) 9,421
21,967 Var Energi AS (e) 92,071
--------------
188,040
--------------
SPAIN -- 1.2%
2,897 Corp ACCIONA Energias
Renovables S.A. (b) (e) 107,096
--------------
SWEDEN -- 12.5%
1,793 Bravida Holding AB (b) (c) (d) 20,617
387 Cibus Nordic Real Estate AB (b) 10,298
6,566 EQT AB (b) 256,063
890 Hemnet Group AB (b) (e) 13,385
2,293 Instalco AB (b) (d) 17,157
5,995 Lifco AB, Class B (b) 152,187
230 MIPS AB (b) (d) 21,389
2,200 Nordnet AB publ (b) 39,383
1,681 Nyfosa AB (b) 24,033
1,113 Olink Holding AB, ADR (e) 19,656
14,388 OX2 AB (b) (e) 108,265
See Notes to Financial Statements Page 89
FIRST TRUST IPOX(R) EUROPE EQUITY OPPORTUNITIES ETF (FPXE)
PORTFOLIO OF INVESTMENTS (CONTINUED)
MARCH 31, 2022 (UNAUDITED)
SHARES DESCRIPTION VALUE
-------------------------------------------------------------
COMMON STOCKS (a) (CONTINUED)
SWEDEN (CONTINUED)
2,702 Swedish Orphan Biovitrum
AB (b) (e) $ 63,966
1,320 Synsam AB (b) (e) 9,618
6,074 Tele2 AB, Class B (b) 91,813
920 Thule Group AB (b) (c) (d) 36,419
3,288 Truecaller AB, Class B (b) (e) 22,481
26,218 Volvo Car AB, Class B (b) (e) 188,559
--------------
1,095,289
--------------
SWITZERLAND -- 7.0%
104 Medartis Holding AG (c) (d) (e) 13,934
5,459 On Holding AG, Class A (e) (g) 137,785
291 PolyPeptide Group
AG (b) (c) (d) (e) 23,022
137 Sensirion Holding
AG (b) (c) (d) (e) 16,855
2,970 SIG Combibloc Group AG (b) 74,873
9,759 Sportradar Holding AG (e) (g) 162,390
880 Stadler Rail AG (b) 34,081
396 VAT Group AG (b) (c) (d) 150,773
--------------
613,713
--------------
UNITED KINGDOM -- 10.2%
66,138 Airtel Africa PLC (b) (c) (d) 120,740
5,538 Allfunds Group PLC (b) (e) 63,438
1,060 Auction Technology Group
PLC (b) (e) 13,617
9,150 Avast PLC (c) (d) 68,032
260 Bicycle Therapeutics PLC,
ADR (e) 11,409
2,692 Biffa PLC (b) (c) (d) 11,225
7,244 Bridgepoint Group PLC (c) (d) (e) 33,449
12,309 Darktrace PLC (b) (e) 72,263
3,513 Drax Group PLC (b) 36,126
490 Endava PLC, ADR (e) 65,185
4,688 Energean PLC (e) 73,346
1,532 Finablr PLC (b) (c) (e) (f) (h) 0
28,597 M&G PLC (b) 82,397
8,119 Ninety One PLC 27,176
7,238 Oxford Nanopore Technologies
PLC (b) (e) 37,644
14,414 Quilter PLC (b) (c) (d) 26,911
22,296 Vivo Energy PLC (b) (c) (d) 39,817
2,108 Watches of Switzerland Group
PLC (b) (c) (e) 31,326
12,526 Wise PLC, Class A (b) (e) 80,988
--------------
895,089
--------------
UNITED STATES -- 2.5%
3,626 Playtika Holding Corp. (e) 70,091
465 SolarEdge Technologies, Inc. (e) 149,902
--------------
219,993
--------------
TOTAL COMMON STOCKS
-- 99.5% 8,738,033
(Cost $9,566,343) --------------
SHARES DESCRIPTION VALUE
-------------------------------------------------------------
MONEY MARKET FUNDS -- 2.4%
214,289 Goldman Sachs Financial Square
Treasury Obligations Fund -
Institutional Class -
0.20% (i) (j) $ 214,289
(Cost $214,289) --------------
PRINCIPAL
VALUE DESCRIPTION VALUE
-------------------------------------------------------------
REPURCHASE AGREEMENTS -- 0.3%
$ 23,901 BNP Paribas S.A., 0.24% (i),
dated 03/31/22, due 04/01/22,
with a maturity value of
$23,902. Collateralized by
U.S. Treasury Note, interest
rate of 0.25%, due 09/30/25.
The value of the collateral
including accrued interest is
$24,352. (j) 23,901
(Cost $23,901) --------------
TOTAL INVESTMENTS -- 102.2% 8,976,223
(Cost $9,804,533)
NET OTHER ASSETS AND
LIABILITIES -- (2.2)% (195,923)
--------------
NET ASSETS -- 100.0% $ 8,780,300
==============
(a) Portfolio securities are categorized based upon their country of
incorporation, which can be different from the country categorization of
the Fund's underlying index. For a breakdown of the portfolio securities
by sector, please see the Fund Performance Overview.
(b) This security is fair valued by the Advisor's Pricing Committee in
accordance with procedures adopted by the Trust's Board of Trustees, and
in accordance with provisions of the Investment Company Act of 1940, as
amended. At March 31, 2022, securities noted as such are valued at
$6,520,629 or 74.3% of net assets. Certain of these securities are fair
valued using a factor provided by a third-party pricing service due to the
change in value between the foreign markets' close and the New York Stock
Exchange close exceeding a certain threshold. On days when this threshold
is not exceeded, these securities are typically valued at the last sale
price on the exchange on which they are principally traded.
(c) This security is exempt from registration upon resale under Rule 144A of
the Securities Act of 1933, as amended (the "1933 Act") and may be resold
in transactions exempt from registration, normally to qualified
institutional buyers. This security is not restricted on the foreign
exchange where it trades freely without any additional registration. As
such, it does not require the additional disclosure required of restricted
securities.
(d) This security may be resold to qualified foreign investors and foreign
institutional buyers under Regulation S of the 1933 Act.
(e) Non-income producing security.
Page 90 See Notes to Financial Statements
FIRST TRUST IPOX(R) EUROPE EQUITY OPPORTUNITIES ETF (FPXE)
PORTFOLIO OF INVESTMENTS (CONTINUED)
MARCH 31, 2022 (UNAUDITED)
(f) This security's value was determined using significant unobservable inputs
(see Note 2A - Portfolio Valuation in the Notes to Financial Statements).
(g) All or a portion of this security is on loan (see Note 2E - Securities
Lending in the Notes to Financial Statements). The remaining contractual
maturity of all of the securities lending transactions is overnight and
continuous. The aggregate value of such securities is $229,441 and the
total value of the collateral held by the Fund is $238,190.
(h) Pursuant to procedures adopted by the Trust's Board of Trustees, this
security has been determined to be illiquid by First Trust Advisors, L.P.,
the Fund's Advisor.
(i) Rate shown reflects yield as of March 31, 2022.
(j) This security serves as collateral for securities on loan.
ADR - American Depositary Receipt
---------------------------------
OFFSETTING ASSETS AND LIABILITIES
-------------------------------------------------------------
Offsetting assets and liabilities requires entities to disclose both gross and
net information about instruments and transactions eligible for offset, and to
disclose instruments and transactions subject to master netting or similar
agreements (see Note 2C - Offsetting on the Statements of Assets and Liabilities
in the Notes to Financial Statements).
The Fund's loaned securities were all subject to an enforceable Securities
Lending Agency Agreement. Securities lent in accordance with the Securities
Lending Agency Agreement on a gross basis were as follows:
SECURITIES LENDING AGENCY AGREEMENT
-------------------------------------------------------------
Total gross amount presented on the
Statements of Assets and Liabilities(1) $ 229,441
Non-cash Collateral(2) (229,441)
--------------
Net Amount $ --
==============
(1) The amount presented on the Statements of Assets and Liabilities, which is
included in "Investments, at value," is not offset and is shown on a gross
basis.
(2) At March 31, 2022, the value of the collateral received from each borrower
exceeded the value of the related securities loaned. This amount is
disclosed on the Portfolio of Investments.
The Fund's investments in repurchase agreements were all subject to an
enforceable Master Repurchase Agreement. Repurchase Agreements on a gross basis
were as follows:
REPURCHASE AGREEMENTS
-------------------------------------------------------------
Total gross amount presented on the
Statements of Assets and Liabilities(3) $ 23,901
Non-cash Collateral(4) (23,901)
--------------
Net Amount $ --
==============
(3) The amount is included in "Investments, at value" on the Statements of
Assets and Liabilities.
(4) At March 31, 2022, the value of the collateral received from each seller
exceeded the value of the repurchase agreements.
% OF TOTAL
CURRENCY EXPOSURE DIVERSIFICATION INVESTMENTS
-------------------------------------------------------------
Euro 48.4%
United States Dollar 23.2
Swedish Krona 12.0
British Pound Sterling 8.6
Norwegian Krone 4.0
Swiss Franc 3.5
Danish Krone 0.3
------
Total 100.0%
======
See Notes to Financial Statements Page 91
FIRST TRUST IPOX(R) EUROPE EQUITY OPPORTUNITIES ETF (FPXE)
PORTFOLIO OF INVESTMENTS (CONTINUED)
MARCH 31, 2022 (UNAUDITED)
------------------------------
VALUATION INPUTS
A summary of the inputs used to value the Fund's investments as of March 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
3/31/2022 PRICES INPUTS INPUTS
--------------- --------------- --------------- ---------------
Common Stocks:
Bermuda....................................... $ 325,441 $ 161,481 $ 163,960 $ --
Cyprus........................................ 1,748 -- -- 1,748
Denmark....................................... 138,048 104,633 33,415 --
Germany....................................... 1,762,631 386,535 1,376,096 --
Ireland....................................... 226,200 226,200 -- --
Israel........................................ 284,855 284,855 -- --
Italy......................................... 270,459 91,674 178,785 --
Jersey........................................ 51,964 37,600 14,364 --
Norway........................................ 188,040 92,071 95,969 --
Sweden........................................ 1,095,289 19,656 1,075,633 --
Switzerland................................... 613,713 314,109 299,604 --
United Kingdom................................ 895,089 278,597 616,492 --*
United States................................. 219,993 219,993 -- --
Other Country Categories**.................... 2,664,563 -- 2,664,563 --
Money Market Funds.............................. 214,289 214,289 -- --
Repurchase Agreements........................... 23,901 -- 23,901 --
--------------- --------------- --------------- ---------------
Total Investments............................... $ 8,976,223 $ 2,431,693 $ 6,542,782 $ 1,748
=============== =============== =============== ===============
* Investment is valued at $0.
** See Portfolio of Investments for country breakout.
Level 3 Common Stocks are fair valued by the Advisor's Pricing Committee and are
footnoted in the Portfolio of Investments. Level 3 Common Stocks values are
based on unobservable and non-quantitative inputs.
Page 92 See Notes to Financial Statements
FIRST TRUST DOW JONES INTERNATIONAL INTERNET ETF (FDNI)
PORTFOLIO OF INVESTMENTS
MARCH 31, 2022 (UNAUDITED)
SHARES DESCRIPTION VALUE
-------------------------------------------------------------
COMMON STOCKS (a) -- 96.4%
AUSTRALIA -- 1.9%
2,010 REA Group Ltd. (b) $ 201,502
13,809 SEEK Ltd. (b) 304,110
6,366 WiseTech Global Ltd. (b) 239,609
--------------
745,221
--------------
CANADA -- 8.3%
3,303 Descartes Systems Group (The),
Inc. (c) 241,830
4,448 Shopify, Inc., Class A (c) 3,008,159
--------------
3,249,989
--------------
CAYMAN ISLANDS -- 46.5%
37,472 Alibaba Group Holding Ltd.,
ADR (c) 4,076,954
11,066 Baidu, Inc., ADR (c) 1,464,032
8,680 Bilibili, Inc., ADR (c) 222,034
41,126 JD Health International,
Inc. (b) (c) (d) (e) 246,246
26,764 JD.com, Inc., ADR (c) 1,548,833
58,608 Kuaishou
Technology (b) (c) (d) (e) 537,008
157,577 Meituan, Class B (b) (c) (d) (e) 2,985,129
14,559 NetEase, Inc., ADR 1,305,797
17,115 Pinduoduo, Inc., ADR (c) 686,483
13,110 Sea Ltd., ADR (c) 1,570,447
78,049 Tencent Holdings Ltd. (b) 3,597,617
--------------
18,240,580
--------------
GERMANY -- 2.3%
7,442 Delivery Hero SE (b) (c) (d) (e) 324,352
3,262 Scout24 SE (b) (d) (e) 185,975
7,565 Zalando SE (b) (c) (d) (e) 383,050
--------------
893,377
--------------
IRELAND -- 1.8%
5,962 Flutter Entertainment PLC (c) 692,527
--------------
ISLE OF MAN -- 1.2%
22,885 Entain PLC (b) (c) 490,219
--------------
ISRAEL -- 0.6%
2,222 Wix.com Ltd. (c) 232,110
--------------
JAPAN -- 5.0%
16,000 CyberAgent, Inc. (b) 197,994
16,672 M3, Inc. (b) 602,126
18,282 Nexon Co., Ltd. (b) 437,374
35,773 Rakuten Group, Inc. (b) 281,273
101,576 Z Holdings Corp. (b) 439,122
--------------
1,957,889
--------------
LUXEMBOURG -- 2.1%
5,398 Spotify Technology S.A. (c) 815,206
--------------
NETHERLANDS -- 9.8%
908 Adyen N.V. (b) (c) (d) (e) 1,798,481
5,890 Just Eat Takeaway.com
N.V. (b) (c) (d) (e) 197,539
33,981 Prosus N.V. (b) 1,832,532
SHARES DESCRIPTION VALUE
-------------------------------------------------------------
NETHERLANDS (CONTINUED)
15,088 Yandex N.V.,
Class A (b) (c) (f) (g) $ 18,520
--------------
3,847,072
--------------
NEW ZEALAND -- 1.0%
5,059 Xero Ltd. (b) (c) 383,410
--------------
SOUTH AFRICA -- 2.4%
8,496 Naspers Ltd., Class N (b) 959,558
--------------
SOUTH KOREA -- 7.4%
12,180 Kakao Corp. 1,070,228
5,761 NAVER Corp. (b) 1,601,149
625 NCSoft Corp. (b) 239,692
--------------
2,911,069
--------------
UNITED KINGDOM -- 6.1%
5,507 Atlassian Corp. PLC, Class A (c) 1,618,122
37,807 Auto Trader Group
PLC (b) (d) (e) 312,106
16,839 IG Group Holdings PLC (b) 180,862
34,161 Rightmove PLC (b) 282,328
--------------
2,393,418
--------------
TOTAL INVESTMENTS
-- 96.4% 37,811,645
(Cost $62,753,792)
NET OTHER ASSETS AND
LIABILITIES -- 3.6% 1,431,796
--------------
NET ASSETS -- 100.0% $ 39,243,441
==============
(a) Portfolio securities are categorized based upon their country of
incorporation, which can be different from the country categorization of
the Fund's underlying index. For a breakdown of the portfolio securities
by sector, please see the Fund Performance Overview.
(b) This security is fair valued by the Advisor's Pricing Committee in
accordance with procedures adopted by the Trust's Board of Trustees, and
in accordance with provisions of the Investment Company Act of 1940, as
amended. At March 31, 2022, securities noted as such are valued at
$19,258,883 or 49.1% of net assets. Certain of these securities are fair
valued using a factor provided by a third-party pricing service due to the
change in value between the foreign markets' close and the New York Stock
Exchange close exceeding a certain threshold. On days when this threshold
is not exceeded, these securities are typically valued at the last sale
price on the exchange on which they are principally traded.
(c) Non-income producing security.
(d) This security is exempt from registration upon resale under Rule 144A of
the Securities Act of 1933, as amended (the "1933 Act") and may be resold
in transactions exempt from registration, normally to qualified
institutional buyers. This security is not restricted on the foreign
exchange where it trades freely without any additional registration. As
such, it does not require the additional disclosure required of restricted
securities.
See Notes to Financial Statements Page 93
FIRST TRUST DOW JONES INTERNATIONAL INTERNET ETF (FDNI)
PORTFOLIO OF INVESTMENTS (CONTINUED)
MARCH 31, 2022 (UNAUDITED)
(e) This security may be resold to qualified foreign investors and foreign
institutional buyers under Regulation S of the 1933 Act.
(f) This security's value was determined using significant unobservable inputs
(see Note 2A - Portfolio Valuation in the Notes to Financial Statements).
(g) Pursuant to procedures adopted by the Trust's Board of Trustees, this
security has been determined to be illiquid by First Trust Advisor, L.P.,
the Fund's Advisor.
ADR - American Depositary Receipt
% OF TOTAL
CURRENCY EXPOSURE DIVERSIFICATION INVESTMENTS
-------------------------------------------------------------
United States Dollar 35.9%
Hong Kong Dollar 19.5
Euro 14.3
Canadian Dollar 8.6
South Korean Won 7.7
Japanese Yen 5.2
British Pound Sterling 3.3
Australian Dollar 3.0
South African Rand 2.5
------
Total 100.0%
======
------------------------------
VALUATION INPUTS
A summary of the inputs used to value the Fund's investments as of March 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
3/31/2022 PRICES INPUTS INPUTS
--------------- --------------- --------------- ---------------
Common Stocks:
Canada........................................ $ 3,249,989 $ 3,249,989 $ -- $ --
Cayman Islands................................ 18,240,580 10,874,580 7,366,000 --
Ireland....................................... 692,527 692,527 -- --
Israel........................................ 232,110 232,110 -- --
Luxembourg.................................... 815,206 815,206 -- --
Netherlands................................... 3,847,072 -- 3,828,552 18,520
South Korea................................... 2,911,069 1,070,228 1,840,841 --
United Kingdom................................ 2,393,418 1,618,122 775,296 --
Other Country Categories*..................... 5,429,674 -- 5,429,674 --
--------------- --------------- --------------- ---------------
Total Investments............................... $ 37,811,645 $ 18,552,762 $ 19,240,363 $ 18,520
=============== =============== =============== ===============
* See Portfolio of Investments for country breakout.
Level 3 Common Stocks are fair valued by the Advisor's Pricing Committee and are
footnoted in the Portfolio of Investments. Level 3 Common Stocks values are
based on unobservable and non-quantitative inputs.
Page 94 See Notes to Financial Statements
This page intentionally left blank.
Page 95
FIRST TRUST EXCHANGE-TRADED FUND II
STATEMENTS OF ASSETS AND LIABILITIES
MARCH 31, 2022 (UNAUDITED)
FIRST TRUST
FIRST TRUST FTSE FIRST TRUST
STOXX(R) EPRA/NAREIT DOW JONES
EUROPEAN DEVELOPED MARKETS GLOBAL SELECT
SELECT DIVIDEND REAL ESTATE DIVIDEND
INDEX FUND INDEX FUND INDEX FUND
(FDD) (FFR) (FGD)
------------------ ------------------ ------------------
ASSETS:
Investments, at value............................................ $ 274,313,761 $ 35,726,950 $ 631,803,027
Cash............................................................. -- -- --
Foreign currency, at value....................................... 3,643 7,955 533,005
Receivables:
Reclaims...................................................... 1,286,335 13,553 866,850
Dividends..................................................... 2,379,065 125,227 7,182,468
Investment securities sold.................................... -- -- --
Capital shares sold........................................... -- -- 2,988,675
Securities lending income..................................... -- -- --
Prepaid expenses.............................................. 1,269 132 2,190
---------------- ---------------- ----------------
TOTAL ASSETS.................................................. 277,984,073 35,873,817 643,376,215
---------------- ---------------- ----------------
LIABILITIES:
Due to custodian................................................. -- -- --
Due to custodian foreign currency................................ -- -- --
Payables:
Licensing fees................................................ 112,938 10,618 60,605
Investment advisory fees...................................... 93,223 1,237 204,886
Audit and tax fees............................................ 57,918 25,656 60,672
Shareholder reporting fees.................................... 10,230 6,731 21,995
Capital shares purchased...................................... -- -- --
Investment securities purchased............................... -- -- 3,798,459
Foreign capital gains tax..................................... -- -- --
Collateral for securities on loan............................. -- -- --
Other liabilities................................................ 38,125 16,360 91,239
---------------- ---------------- ----------------
TOTAL LIABILITIES............................................. 312,434 60,602 4,237,856
---------------- ---------------- ----------------
NET ASSETS....................................................... $ 277,671,639 $ 35,813,215 $ 639,138,359
================ ================ ================
NET ASSETS CONSIST OF:
Paid-in capital.................................................. $ 333,322,751 $ 33,464,896 $ 797,979,366
Par value........................................................ 208,533 6,916 252,500
Accumulated distributable earnings (loss)........................ (55,859,645) 2,341,403 (159,093,507)
---------------- ---------------- ----------------
NET ASSETS....................................................... $ 277,671,639 $ 35,813,215 $ 639,138,359
================ ================ ================
NET ASSET VALUE, per share....................................... $ 13.32 $ 51.78 $ 25.31
================ ================ ================
Number of shares outstanding (unlimited number of shares
authorized, par value $0.01 per share)........................ 20,853,334 691,608 25,250,002
================ ================ ================
Investments, at cost............................................. $ 265,190,760 $ 31,776,725 $ 608,667,842
================ ================ ================
Foreign currency, at cost (proceeds)............................. $ 3,615 $ 7,952 $ 534,492
================ ================ ================
Securities on loan, at value..................................... $ -- $ -- $ --
================ ================ ================
Page 96 See Notes to Financial Statements
FIRST TRUST FIRST TRUST
FIRST TRUST GLOBAL NASDAQ(R) CLEAN FIRST TRUST FIRST TRUST
GLOBAL ENGINEERING EDGE(R) SMART GRID INDXX GLOBAL INDXX GLOBAL
WIND ENERGY AND CONSTRUCTION INFRASTRUCTURE NATURAL RESOURCES AGRICULTURE
ETF ETF INDEX FUND INCOME ETF ETF
(FAN) (FLM) (GRID) (FTRI) (FTAG)
------------------ ------------------ ------------------ ------------------ ------------------
$ 349,222,886 $ 11,143,684 $ 755,425,065 $ 111,671,260 $ 16,286,439
-- 33,820 643,661 53,375 138,227
451,132 -- 954,760 105,421 368,347
475,435 7,060 628,237 12,272 10,248
397,263 73,560 453,937 574,022 19,737
-- 203,611 -- -- 136,297
-- -- -- -- 3,637
10,958 774 6,252 169 --
1,761 49 5,932 -- --
---------------- ---------------- ---------------- ---------------- ----------------
350,559,435 11,462,558 758,117,844 112,416,519 16,962,932
---------------- ---------------- ---------------- ---------------- ----------------
149,212 -- -- -- --
-- 200,260 -- -- --
78,790 2,695 164,444 -- --
110,321 538 238,364 48,900 7,338
23,615 23,579 26,782 -- --
34,912 5,048 12,918 -- --
-- -- -- -- 477,674
-- 3,205 -- -- 139,904
-- -- -- 13,989 9,481
21,537,261 323,453 28,680,767 8,421,600 --
50,829 8,703 76,506 -- --
---------------- ---------------- ---------------- ---------------- ----------------
21,984,940 567,481 29,199,781 8,484,489 634,397
---------------- ---------------- ---------------- ---------------- ----------------
$ 328,574,495 $ 10,895,077 $ 728,918,063 $ 103,932,030 $ 16,328,535
================ ================ ================ ================ ================
$ 376,074,127 $ 18,260,078 $ 693,610,415 $ 154,602,319 $ 33,962,762
167,000 2,000 77,500 63,000 4,899
(47,666,632) (7,367,001) 35,230,148 (50,733,289) (17,639,126)
---------------- ---------------- ---------------- ---------------- ----------------
$ 328,574,495 $ 10,895,077 $ 728,918,063 $ 103,932,030 $ 16,328,535
================ ================ ================ ================ ================
$ 19.68 $ 54.47 $ 94.05 $ 16.50 $ 33.33
================ ================ ================ ================ ================
16,700,002 200,002 7,750,002 6,300,002 489,928
================ ================ ================ ================ ================
$ 344,745,995 $ 9,954,468 $ 729,772,056 $ 100,835,088 $ 15,494,903
================ ================ ================ ================ ================
$ 449,274 $ (200,092) $ 958,343 $ 105,473 $ 368,347
================ ================ ================ ================ ================
$ 20,428,434 $ 126,607 $ 27,381,518 $ 8,157,600 $ --
================ ================ ================ ================ ================
See Notes to Financial Statements Page 97
FIRST TRUST EXCHANGE-TRADED FUND II
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
MARCH 31, 2022 (UNAUDITED)
FIRST TRUST
S-NETWORK
FIRST TRUST FIRST TRUST FUTURE VEHICLES
BICK INDXX NEXTG & TECHNOLOGY
INDEX FUND ETF ETF
(BICK) (NXTG) (CARZ)
------------------ ------------------ ------------------
ASSETS:
Investments, at value............................................ $ 22,013,808 $ 949,372,462 $ 72,935,061
Cash............................................................. 37,914 13,584,154 7,847
Foreign currency, at value....................................... 15 113,008 18
Receivables:
Reclaims...................................................... -- 161,505 28,869
Dividends..................................................... 74,768 2,887,004 228,861
Investment securities sold.................................... -- -- --
Capital shares sold........................................... -- 11,363 --
Securities lending income..................................... 1,717 16,473 31,874
Prepaid expenses.............................................. -- -- --
---------------- ---------------- ----------------
TOTAL ASSETS.................................................. 22,128,222 966,145,969 73,232,530
---------------- ---------------- ----------------
LIABILITIES:
Due to custodian................................................. -- -- --
Due to custodian foreign currency................................ -- -- --
Payables:
Licensing fees................................................ -- -- --
Investment advisory fees...................................... 11,733 554,870 40,262
Audit and tax fees............................................ -- -- --
Shareholder reporting fees.................................... -- -- --
Capital shares purchased...................................... -- -- --
Investment securities purchased............................... -- -- --
Foreign capital gains tax..................................... -- 1,244,578 --
Collateral for securities on loan............................. 644,290 32,082,272 4,021,632
Other liabilities................................................ -- -- --
---------------- ---------------- ----------------
TOTAL LIABILITIES............................................. 656,023 33,881,720 4,061,894
---------------- ---------------- ----------------
NET ASSETS....................................................... $ 21,472,199 $ 932,264,249 $ 69,170,636
================ ================ ================
NET ASSETS CONSIST OF:
Paid-in capital.................................................. $ 44,196,780 $ 766,717,786 $ 73,394,562
Par value........................................................ 7,000 123,000 12,000
Accumulated distributable earnings (loss)........................ (22,731,581) 165,423,463 (4,235,926)
---------------- ---------------- ----------------
NET ASSETS....................................................... $ 21,472,199 $ 932,264,249 $ 69,170,636
================ ================ ================
NET ASSET VALUE, per share....................................... $ 30.67 $ 75.79 $ 57.64
================ ================ ================
Number of shares outstanding (unlimited number of shares
authorized, par value $0.01 per share)........................ 700,002 12,300,002 1,200,002
================ ================ ================
Investments, at cost............................................. $ 22,095,261 $ 850,677,575 $ 71,361,338
================ ================ ================
Foreign currency, at cost (proceeds)............................. $ 15 $ 113,203 $ 18
================ ================ ================
Securities on loan, at value..................................... $ 607,820 $ 30,017,259 $ 3,901,797
================ ================ ================
Page 98 See Notes to Financial Statements
FIRST TRUST FIRST TRUST
FIRST TRUST FIRST TRUST FIRST TRUST IPOX(R) EUROPE DOW JONES
CLOUD INTERNATIONAL NASDAQ EQUITY INTERNATIONAL
COMPUTING EQUITY CYBERSECURITY OPPORTUNITIES INTERNET
ETF OPPORTUNITIES ETF ETF ETF ETF
(SKYY) (FPXI) (CIBR) (FPXE) (FDNI)
------------------ ------------------ ------------------ ------------------ ------------------
$ 5,496,161,426 $ 575,213,273 $ 6,446,291,306 $ 8,976,223 $ 37,811,645
667,479 1,041,088 13,391,189 1,710 124,485
-- -- -- 25 --
395,272 192,092 84,720 5,543 --
879,885 2,219,074 -- 37,367 15,124
27,570,010 -- -- -- 1,410,495
-- -- 45,019,859 -- --
24,782 112,867 3,568 2,817 --
-- -- -- -- --
---------------- ---------------- ---------------- ---------------- ----------------
5,525,698,854 578,778,394 6,504,790,642 9,023,685 39,361,749
---------------- ---------------- ---------------- ---------------- ----------------
-- -- -- -- --
-- 77 57 -- 8
-- -- -- -- --
2,614,133 340,697 3,075,894 5,195 23,562
-- -- -- -- --
-- -- -- -- --
27,578,378 -- -- -- --
-- 59,238,594 -- 94,738
-- -- -- -- --
149,089,996 22,653,759 4,093,650 238,190 --
-- -- -- -- --
---------------- ---------------- ---------------- ---------------- ----------------
179,282,507 22,994,533 66,408,195 243,385 118,308
---------------- ---------------- ---------------- ---------------- ----------------
$ 5,346,416,347 $ 555,783,861 $ 6,438,382,447 $ 8,780,300 $ 39,243,441
================ ================ ================ ================ ================
$ 5,364,112,734 $ 785,003,664 $ 5,233,207,535 $ 10,608,871 $ 77,153,358
591,000 113,500 1,217,000 3,500 15,000
(18,287,387) (229,333,303) 1,203,957,912 (1,832,071) (37,924,917)
---------------- ---------------- ---------------- ---------------- ----------------
$ 5,346,416,347 $ 555,783,861 $ 6,438,382,447 $ 8,780,300 $ 39,243,441
================ ================ ================ ================ ================
$ 90.46 $ 48.97 $ 52.90 $ 25.09 $ 26.16
================ ================ ================ ================ ================
59,100,002 11,350,002 121,700,002 350,002 1,500,002
================ ================ ================ ================ ================
$ 5,294,415,489 $ 612,377,703 $ 5,334,336,766 $ 9,804,533 $ 62,753,792
================ ================ ================ ================ ================
$ -- $ (79) $ (57) $ 25 $ (8)
================ ================ ================ ================ ================
$ 141,356,084 $ 21,088,947 $ 3,865,398 $ 229,441 $ --
================ ================ ================ ================ ================
See Notes to Financial Statements Page 99
FIRST TRUST EXCHANGE-TRADED FUND II
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED MARCH 31, 2022 (UNAUDITED)
FIRST TRUST
FIRST TRUST FTSE FIRST TRUST
STOXX(R) EPRA/NAREIT DOW JONES
EUROPEAN DEVELOPED MARKETS GLOBAL SELECT
SELECT DIVIDEND REAL ESTATE DIVIDEND
INDEX FUND INDEX FUND INDEX FUND
(FDD) (FFR) (FGD)
------------------ ------------------ ------------------
INVESTMENT INCOME:
Dividends........................................................ $ 4,305,768 $ 592,550 $ 14,908,876
Securities lending income (net of fees).......................... -- -- --
Foreign withholding tax.......................................... (317,603) (30,976) (1,615,214)
---------------- ---------------- ----------------
Total investment income....................................... 3,988,165 561,574 13,293,662
---------------- ---------------- ----------------
EXPENSES:
Investment advisory fees......................................... 577,745 72,549 1,091,777
Licensing fees................................................... 86,662 21,764 152,618
Accounting and administration fees............................... 73,004 12,121 137,743
Audit and tax fees............................................... 27,628 19,905 30,112
Shareholder reporting fees....................................... 17,431 9,094 28,303
Custodian fees................................................... 13,859 26,690 47,488
Transfer agent fees.............................................. 7,222 907 13,647
Legal fees....................................................... 3,924 881 7,004
Trustees' fees and expenses...................................... 3,674 3,607 3,748
Listing fees..................................................... 2,431 2,431 2,431
Registration and filing fees..................................... 322 6 4,357
Other expenses................................................... 2,649 550 4,600
---------------- ---------------- ----------------
Total expenses................................................ 816,551 170,505 1,523,828
Less fees waived and expenses reimbursed by the investment
advisor.................................................... -- (61,682) --
---------------- ---------------- ----------------
Net expenses.................................................. 816,551 108,823 1,523,828
---------------- ---------------- ----------------
NET INVESTMENT INCOME (LOSS)..................................... 3,171,614 452,751 11,769,834
---------------- ---------------- ----------------
NET REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) on:
Investments................................................... 745,595 (34,714) 10,471,380
In-kind redemptions........................................... 1,494,893 739,842 1,525,889
Foreign currency transactions................................. 3,221 (2,287) 74,006
Foreign capital gains tax..................................... -- -- --
---------------- ---------------- ----------------
Net realized gain (loss)......................................... 2,243,709 702,841 12,071,275
---------------- ---------------- ----------------
Net change in unrealized appreciation (depreciation) on:
Investments................................................... (14,615,620) 741,907 (7,853,785)
Foreign currency translation.................................. (68,107) (2,564) (93,210)
Deferred foreign capital gains tax............................ -- -- --
---------------- ---------------- ----------------
Net change in unrealized appreciation (depreciation)............. (14,683,727) 739,343 (7,946,995)
---------------- ---------------- ----------------
NET REALIZED AND UNREALIZED GAIN (LOSS).......................... (12,440,018) 1,442,184 4,124,280
---------------- ---------------- ----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS............................................... $ (9,268,404) $ 1,894,935 $ 15,894,114
================ ================ ================
(a) Fund is subject to a unitary fee (see Note 3 in the Notes to Financial
Statements).
Page 100 See Notes to Financial Statements
FIRST TRUST FIRST TRUST
FIRST TRUST GLOBAL NASDAQ(R) CLEAN FIRST TRUST FIRST TRUST
GLOBAL ENGINEERING EDGE(R) SMART GRID INDXX GLOBAL INDXX GLOBAL
WIND ENERGY AND CONSTRUCTION INFRASTRUCTURE NATURAL RESOURCES AGRICULTURE
ETF ETF INDEX FUND INCOME ETF ETF
(FAN) (FLM) (GRID) (FTRI) (FTAG)
------------------ ------------------ ------------------ ------------------ ------------------
$ 2,470,145 $ 112,991 $ 5,199,780 $ 1,952,840 $ 79,394
39,858 2,363 32,343 5,724 --
(313,305) (11,967) (390,551) (63,476) (4,156)
---------------- ---------------- ---------------- ---------------- ----------------
2,196,698 103,387 4,841,572 1,895,088 75,238
---------------- ---------------- ---------------- ---------------- ----------------
686,774 21,713 1,437,450 164,816 (a) 25,731 (a)
171,694 5,428 322,128 -- --
86,805 3,784 180,588 -- --
17,445 17,463 18,112 -- --
38,783 7,655 27,316 -- --
29,217 3,551 28,772 -- --
8,585 272 17,968 -- --
4,798 137 7,778 -- --
3,691 3,600 3,797 -- --
2,692 2,692 5,253 -- --
737 6 10,623 -- --
3,684 893 5,991 -- --
---------------- ---------------- ---------------- ---------------- ----------------
1,054,905 67,194 2,065,776 164,816 25,731
(24,744) (29,190) -- -- --
---------------- ---------------- ---------------- ---------------- ----------------
1,030,161 38,004 2,065,776 164,816 25,731
---------------- ---------------- ---------------- ---------------- ----------------
1,166,537 65,383 2,775,796 1,730,272 49,507
---------------- ---------------- ---------------- ---------------- ----------------
(10,631,767) (94,435) (8,897,440) (543,836) (71,421)
14,467,543 -- 22,005,322 -- 1,095,761
(20,755) (4,850) 34,367 2,446 (2,350)
-- -- -- (1,376) (48)
---------------- ---------------- ---------------- ---------------- ----------------
3,815,021 (99,285) 13,142,249 (542,766) 1,021,942
---------------- ---------------- ---------------- ---------------- ----------------
(26,370,410) 190,477 (25,018,862) 13,239,261 24,480
(7,435) 2,570 (10,177) (499) (488)
-- -- -- (7,927) 1,062
---------------- ---------------- ---------------- ---------------- ----------------
(26,377,845) 193,047 (25,029,039) 13,230,835 25,054
---------------- ---------------- ---------------- ---------------- ----------------
(22,562,824) 93,762 (11,886,790) 12,688,069 1,046,996
---------------- ---------------- ---------------- ---------------- ----------------
$ (21,396,287) $ 159,145 $ (9,110,994) $ 14,418,341 $ 1,096,503
================ ================ ================ ================ ================
See Notes to Financial Statements Page 101
FIRST TRUST EXCHANGE-TRADED FUND II
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE SIX MONTHS ENDED MARCH 31, 2022 (UNAUDITED)
FIRST TRUST
S-NETWORK
FIRST TRUST FIRST TRUST FUTURE VEHICLES
BICK INDXX NEXTG & TECHNOLOGY
INDEX FUND ETF ETF
(BICK) (NXTG) (CARZ)
------------------ ------------------ ------------------
INVESTMENT INCOME:
Dividends........................................................ $ 543,467 $ 14,593,369 $ 1,529,487
Securities lending income (net of fees).......................... 10,337 98,973 71,003
Foreign withholding tax.......................................... (11,680) (844,095) (45,407)
---------------- ---------------- ----------------
Total investment income....................................... 542,124 13,848,247 1,555,083
---------------- ---------------- ----------------
EXPENSES:
Investment advisory fees......................................... 98,306 (a) 3,569,528 (a) 257,326 (a)
Licensing fees................................................... -- -- --
Accounting and administration fees............................... -- -- --
Audit and tax fees............................................... -- -- --
Shareholder reporting fees....................................... -- -- --
Custodian fees................................................... -- -- --
Transfer agent fees.............................................. -- -- --
Legal fees....................................................... -- -- --
Trustees' fees and expenses...................................... -- -- --
Listing fees..................................................... -- -- --
Registration and filing fees..................................... -- -- --
Other expenses................................................... -- -- --
---------------- ---------------- ----------------
Total expenses................................................ 98,306 3,569,528 257,326
Less fees waived and expenses reimbursed by the investment
advisor.................................................... -- -- --
---------------- ---------------- ----------------
Net expenses.................................................. 98,306 3,569,528 257,326
---------------- ---------------- ----------------
NET INVESTMENT INCOME (LOSS)..................................... 443,818 10,278,719 1,297,757
---------------- ---------------- ----------------
NET REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) on:
Investments................................................... (1,527,274) 10,695,893 (5,365,999)
In-kind redemptions........................................... 11,503,459 65,882,607 4,870,769
Foreign currency transactions................................. 15,273 (110,897) (23,973)
Foreign capital gains tax..................................... -- (933,255) --
---------------- ---------------- ----------------
Net realized gain (loss)......................................... 9,991,458 75,534,348 (519,203)
---------------- ---------------- ----------------
Net change in unrealized appreciation (depreciation) on:
Investments................................................... (10,060,399) (79,037,083) (1,598,607)
Foreign currency translation.................................. 1,130 (12,147) (4,729)
Deferred foreign capital gains tax............................ -- 1,385,893 --
---------------- ---------------- ----------------
Net change in unrealized appreciation (depreciation)............. (10,059,269) (77,663,337) (1,603,336)
---------------- ---------------- ----------------
NET REALIZED AND UNREALIZED GAIN (LOSS).......................... (67,811) (2,128,989) (2,122,539)
---------------- ---------------- ----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS............................................... $ 376,007 $ 8,149,730 $ (824,782)
================ ================ ================
(a) Fund is subject to a unitary fee (see Note 3 in the Notes to Financial
Statements).
Page 102 See Notes to Financial Statements
FIRST TRUST FIRST TRUST
FIRST TRUST FIRST TRUST FIRST TRUST IPOX(R) EUROPE DOW JONES
CLOUD INTERNATIONAL NASDAQ EQUITY INTERNATIONAL
COMPUTING EQUITY CYBERSECURITY OPPORTUNITIES INTERNET
ETF OPPORTUNITIES ETF ETF ETF ETF
(SKYY) (FPXI) (CIBR) (FPXE) (FDNI)
------------------ ------------------ ------------------ ------------------ ------------------
$ 60,063,007 $ 5,710,872 $ 47,360,615 $ 89,950 $ 263,530
1,060,863 182,287 1,120,589 3,100 --
(48,191) (623,053) (611,374) (13,528) (3,144)
---------------- ---------------- ---------------- ---------------- ----------------
61,075,679 5,270,106 47,869,830 79,522 260,386
---------------- ---------------- ---------------- ---------------- ----------------
17,716,926 (a) 3,077,798 (a) 16,366,016 (a) 36,573 (a) 247,597 (a)
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
---------------- ---------------- ---------------- ---------------- ----------------
17,716,926 3,077,798 16,366,016 36,573 247,597
-- -- -- -- --
---------------- ---------------- ---------------- ---------------- ----------------
17,716,926 3,077,798 16,366,016 36,573 247,597
---------------- ---------------- ---------------- ---------------- ----------------
43,358,753 2,192,308 31,503,814 42,949 12,789
---------------- ---------------- ---------------- ---------------- ----------------
(388,157,874) (122,140,082) (53,725,476) (732,633) (6,296,766)
341,298,702 20,636,169 252,702,363 134,323 (1,381,965)
-- (417,785) (270,008) (681) (1,727)
-- -- -- -- --
---------------- ---------------- ---------------- ---------------- ----------------
(46,859,172) (101,921,698) 198,706,879 (598,991) (7,680,458)
---------------- ---------------- ---------------- ---------------- ----------------
(836,629,094) (133,701,597) 241,704,676 (1,555,992) (19,010,992)
-- (19,908) 2,902 (51) 284
-- -- -- -- --
---------------- ---------------- ---------------- ---------------- ----------------
(836,629,094) (133,721,505) 241,707,578 (1,556,043) (19,010,708)
---------------- ---------------- ---------------- ---------------- ----------------
(883,488,266) (235,643,203) 440,414,457 (2,155,034) (26,691,166)
---------------- ---------------- ---------------- ---------------- ----------------
$ (840,129,513) $ (233,450,895) $ 471,918,271 $ (2,112,085) $ (26,678,377)
================ ================ ================ ================ ================
See Notes to Financial Statements Page 103
FIRST TRUST EXCHANGE-TRADED FUND II
STATEMENTS OF CHANGES IN NET ASSETS
FIRST TRUST FIRST TRUST
STOXX(R) EUROPEAN FTSE EPRA/NAREIT
SELECT DIVIDEND DEVELOPED MARKETS REAL ESTATE
INDEX FUND INDEX FUND
(FDD) (FFR)
----------------------------------- -----------------------------------
SIX MONTHS ENDED SIX MONTHS ENDED
3/31/2022 YEAR ENDED 3/31/2022 YEAR ENDED
(UNAUDITED) 9/30/2021 (UNAUDITED) 9/30/2021
---------------- ---------------- ---------------- ----------------
OPERATIONS:
Net investment income (loss)............................ $ 3,171,614 $ 9,854,187 $ 452,751 $ 745,716
Net realized gain (loss)................................ 2,243,709 21,411,028 702,841 1,100,313
Net change in unrealized appreciation (depreciation).... (14,683,727) 35,038,440 739,343 6,368,752
---------------- ---------------- ---------------- ----------------
Net increase (decrease) in net assets resulting
from operations...................................... (9,268,404) 66,303,655 1,894,935 8,214,781
---------------- ---------------- ---------------- ----------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment operations................................... (3,103,511) (9,883,719) (858,563) (233,141)
---------------- ---------------- ---------------- ----------------
SHAREHOLDER TRANSACTIONS:
Proceeds from shares sold............................... 13,719,382 81,399,807 2,663,290 2,562,370
Cost of shares redeemed................................. (9,706,674) (32,016,164) (2,543,440) (8,557,560)
---------------- ---------------- ---------------- ----------------
Net increase (decrease) in net assets resulting
from shareholder transactions........................ 4,012,708 49,383,643 119,850 (5,995,190)
---------------- ---------------- ---------------- ----------------
Total increase (decrease) in net assets................. (8,359,207) 105,803,579 1,156,222 1,986,450
NET ASSETS:
Beginning of period..................................... 286,030,846 180,227,267 34,656,993 32,670,543
---------------- ---------------- ---------------- ----------------
End of period........................................... $ 277,671,639 $ 286,030,846 $ 35,813,215 $ 34,656,993
================ ================ ================ ================
CHANGES IN SHARES OUTSTANDING:
Shares outstanding, beginning of period................. 20,603,334 17,553,334 691,608 841,608
Shares sold............................................. 950,000 5,550,000 50,000 50,000
Shares redeemed......................................... (700,000) (2,500,000) (50,000) (200,000)
---------------- ---------------- ---------------- ----------------
Shares outstanding, end of period....................... 20,853,334 20,603,334 691,608 691,608
================ ================ ================ ================
Page 104 See Notes to Financial Statements
FIRST TRUST FIRST TRUST
DOW JONES FIRST TRUST GLOBAL ENGINEERING
GLOBAL SELECT DIVIDEND GLOBAL WIND ENERGY AND CONSTRUCTION
INDEX FUND ETF ETF
(FGD) (FAN) (FLM)
----------------------------------- ----------------------------------- -----------------------------------
SIX MONTHS ENDED SIX MONTHS ENDED SIX MONTHS ENDED
3/31/2022 YEAR ENDED 3/31/2022 YEAR ENDED 3/31/2022 YEAR ENDED
(UNAUDITED) 9/30/2021 (UNAUDITED) 9/30/2021 (UNAUDITED) 9/30/2021
---------------- ---------------- ---------------- ---------------- ---------------- ----------------
$ 11,769,834 $ 23,115,111 $ 1,166,537 $ 5,180,381 $ 65,383 $ 160,246
12,071,275 46,690,866 3,815,021 35,096,746 (99,285) (280,169)
(7,946,995) 76,332,374 (26,377,845) (2,908,716) 193,047 1,887,797
---------------- ---------------- ---------------- ---------------- ---------------- ----------------
15,894,114 146,138,351 (21,396,287) 37,368,411 159,145 1,767,874
---------------- ---------------- ---------------- ---------------- ---------------- ----------------
(12,536,351) (22,659,267) (1,524,885) (6,120,596) (53,701) (143,267)
---------------- ---------------- ---------------- ---------------- ---------------- ----------------
143,324,714 231,712,385 20,348,359 237,937,542 -- 2,855,164
(11,998,261) (195,225,987) (54,772,948) (88,339,911) -- --
---------------- ---------------- ---------------- ---------------- ---------------- ----------------
131,326,453 36,486,398 (34,424,589) 149,597,631 -- 2,855,164
---------------- ---------------- ---------------- ---------------- ---------------- ----------------
134,684,216 159,965,482 (57,345,761) 180,845,446 105,444 4,479,771
504,454,143 344,488,661 385,920,256 205,074,810 10,789,633 6,309,862
---------------- ---------------- ---------------- ---------------- ---------------- ----------------
$ 639,138,359 $ 504,454,143 $ 328,574,495 $ 385,920,256 $ 10,895,077 $ 10,789,633
================ ================ ================ ================ ================ ================
20,200,002 19,300,002 18,450,002 11,750,002 200,002 150,002
5,550,000 9,050,000 1,000,000 10,800,000 -- 50,000
(500,000) (8,150,000) (2,750,000) (4,100,000) -- --
---------------- ---------------- ---------------- ---------------- ---------------- ----------------
25,250,002 20,200,002 16,700,002 18,450,002 200,002 200,002
================ ================ ================ ================ ================ ================
See Notes to Financial Statements Page 105
FIRST TRUST EXCHANGE-TRADED FUND II
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FIRST TRUST FIRST TRUST
NASDAQ(R) CLEAN EDGE(R) INDXX GLOBAL
SMART GRID INFRASTRUCTURE NATURAL RESOURCES
INDEX FUND INDEX FUND
(GRID) (FTRI)
----------------------------------- -----------------------------------
SIX MONTHS ENDED SIX MONTHS ENDED
3/31/2022 YEAR ENDED 3/31/2022 YEAR ENDED
(UNAUDITED) 9/30/2021 (UNAUDITED) 9/30/2021
---------------- ---------------- ---------------- ----------------
OPERATIONS:
Net investment income (loss)............................ $ 2,775,796 $ 3,242,273 $ 1,730,272 $ 1,894,518
Net realized gain (loss)................................ 13,142,249 8,840,140 (542,766) 1,321,619
Net change in unrealized appreciation (depreciation).... (25,029,039) 42,350,049 13,230,835 (2,205,536)
---------------- ---------------- ---------------- ----------------
Net increase (decrease) in net assets resulting
from operations...................................... (9,110,994) 54,432,462 14,418,341 1,010,601
---------------- ---------------- ---------------- ----------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment operations................................... (1,306,926) (3,258,036) (2,238,231) (1,526,281)
---------------- ---------------- ---------------- ----------------
SHAREHOLDER TRANSACTIONS:
Proceeds from shares sold............................... 249,739,834 474,084,702 55,440,179 31,087,104
Cost of shares redeemed................................. (60,666,346) (31,575,616) -- --
---------------- ---------------- ---------------- ----------------
Net increase (decrease) in net assets resulting
from shareholder transactions........................ 189,073,488 442,509,086 55,440,179 31,087,104
---------------- ---------------- ---------------- ----------------
Total increase (decrease) in net assets................. 178,655,568 493,683,512 67,620,289 30,571,424
NET ASSETS:
Beginning of period..................................... 550,262,495 56,578,983 36,311,741 5,740,317
---------------- ---------------- ---------------- ----------------
End of period........................................... $ 728,918,063 $ 550,262,495 $ 103,932,030 $ 36,311,741
================ ================ ================ ================
CHANGES IN SHARES OUTSTANDING:
Shares outstanding, beginning of period................. 5,950,002 900,002 2,800,002 600,002
Shares sold............................................. 2,450,000 5,400,000 3,500,000 2,200,000
Shares redeemed......................................... (650,000) (350,000) -- --
---------------- ---------------- ---------------- ----------------
Shares outstanding, end of period....................... 7,750,002 5,950,002 6,300,002 2,800,002
================ ================ ================ ================
Page 106 See Notes to Financial Statements
FIRST TRUST FIRST TRUST FIRST TRUST
INDXX GLOBAL BICK INDXX NEXTG
AGRICULTURE ETF INDEX FUND ETF
(FTAG) (BICK) (NXTG)
----------------------------------- ----------------------------------- -----------------------------------
SIX MONTHS ENDED SIX MONTHS ENDED SIX MONTHS ENDED
3/31/2022 YEAR ENDED 3/31/2022 YEAR ENDED 3/31/2022 YEAR ENDED
(UNAUDITED) 9/30/2021 (UNAUDITED) 9/30/2021 (UNAUDITED) 9/30/2021
---------------- ---------------- ---------------- ---------------- ---------------- ----------------
$ 49,507 $ 83,374 $ 443,818 $ 704,323 $ 10,278,719 $ 13,190,505
1,021,942 46,035 9,991,458 286,285 75,534,348 81,514,040
25,054 942,633 (10,059,269) 8,021,532 (77,663,337) 114,759,221
---------------- ---------------- ---------------- ---------------- ---------------- ----------------
1,096,503 1,072,042 376,007 9,012,140 8,149,730 209,463,766
---------------- ---------------- ---------------- ---------------- ---------------- ----------------
(54,379) (76,502) (615,976) (563,280) (16,774,178) (8,671,946)
---------------- ---------------- ---------------- ---------------- ---------------- ----------------
13,040,464 1,573,503 -- 24,312,835 69,222,977 509,273,872
(3,363,097) -- (65,253,074) (6,733,788) (209,943,913) (218,991,266)
---------------- ---------------- ---------------- ---------------- ---------------- ----------------
9,677,367 1,573,503 (65,253,074) 17,579,047 (140,720,936) 290,282,606
---------------- ---------------- ---------------- ---------------- ---------------- ----------------
10,719,491 2,569,043 (65,493,043) 26,027,907 (149,345,384) 491,074,426
5,609,044 3,040,001 86,965,242 60,937,335 1,081,609,633 590,535,207
---------------- ---------------- ---------------- ---------------- ---------------- ----------------
$ 16,328,535 $ 5,609,044 $ 21,472,199 $ 86,965,242 $ 932,264,249 $ 1,081,609,633
================ ================ ================ ================ ================ ================
189,928 139,928 2,550,002 2,100,002 14,150,002 10,000,002
400,000 50,000 -- 650,000 850,000 7,200,000
(100,000) -- (1,850,000) (200,000) (2,700,000) (3,050,000)
---------------- ---------------- ---------------- ---------------- ---------------- ----------------
489,928 189,928 700,002 2,550,002 12,300,002 14,150,002
================ ================ ================ ================ ================ ================
See Notes to Financial Statements Page 107
FIRST TRUST EXCHANGE-TRADED FUND II
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FIRST TRUST
S-NETWORK FUTURE FIRST TRUST
VEHICLES & TECHNOLOGY CLOUD COMPUTING
ETF ETF
(CARZ) (SKYY)
----------------------------------- -----------------------------------
SIX MONTHS ENDED SIX MONTHS ENDED
3/31/2022 YEAR ENDED 3/31/2022 YEAR ENDED
(UNAUDITED) 9/30/2021 (UNAUDITED) 9/30/2021
---------------- ---------------- ---------------- ----------------
OPERATIONS:
Net investment income (loss)............................ $ 1,297,757 $ 691,487 $ 43,358,753 $ 9,472,360
Net realized gain (loss)................................ (519,203) 10,838,183 (46,859,172) 1,433,936,513
Net change in unrealized appreciation (depreciation).... (1,603,336) 5,024,127 (836,629,094) 235,787,379
---------------- ---------------- ---------------- ----------------
Net increase (decrease) in net assets resulting
from operations...................................... (824,782) 16,553,797 (840,129,513) 1,679,196,252
---------------- ---------------- ---------------- ----------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment operations................................... (1,400,932) (535,126) (44,797,606) (11,051,410)
---------------- ---------------- ---------------- ----------------
SHAREHOLDER TRANSACTIONS:
Proceeds from shares sold............................... 36,355,270 66,534,380 832,312,950 2,762,307,799
Cost of shares redeemed................................. (28,948,280) (47,810,092) (840,418,627) (3,154,828,076)
---------------- ---------------- ---------------- ----------------
Net increase (decrease) in net assets resulting
from shareholder transactions........................ 7,406,990 18,724,288 (8,105,677) (392,520,277)
---------------- ---------------- ---------------- ----------------
Total increase (decrease) in net assets................. 5,181,276 34,742,959 (893,032,796) 1,275,624,565
NET ASSETS:
Beginning of period..................................... 63,989,360 29,246,401 6,239,449,143 4,963,824,578
---------------- ---------------- ---------------- ----------------
End of period........................................... $ 69,170,636 $ 63,989,360 $ 5,346,416,347 $ 6,239,449,143
================ ================ ================ ================
CHANGES IN SHARES OUTSTANDING:
Shares outstanding, beginning of period................. 1,100,002 750,002 59,200,002 63,250,002
Shares sold............................................. 600,000 1,200,000 8,250,000 27,200,000
Shares redeemed......................................... (500,000) (850,000) (8,350,000) (31,250,000)
---------------- ---------------- ---------------- ----------------
Shares outstanding, end of period....................... 1,200,002 1,100,002 59,100,002 59,200,002
================ ================ ================ ================
Page 108 See Notes to Financial Statements
FIRST TRUST FIRST TRUST
INTERNATIONAL FIRST TRUST IPOX(R) EUROPE
EQUITY NASDAQ EQUITY
OPPORTUNITIES ETF CYBERSECURITY ETF OPPORTUNITIES ETF
(FPXI) (CIBR) (FPXE)
----------------------------------- ----------------------------------- -----------------------------------
SIX MONTHS ENDED SIX MONTHS ENDED SIX MONTHS ENDED
3/31/2022 YEAR ENDED 3/31/2022 YEAR ENDED 3/31/2022 YEAR ENDED
(UNAUDITED) 9/30/2021 (UNAUDITED) 9/30/2021 (UNAUDITED) 9/30/2021
---------------- ---------------- ---------------- ---------------- ---------------- ----------------
$ 2,192,308 $ 7,462,351 $ 31,503,814 $ 2,436,706 $ 42,949 $ 26,647
(101,921,698) (58,454,798) 198,706,879 415,138,506 (598,991) 47,668
(133,721,505) 60,066,212 241,707,578 582,202,103 (1,556,043) 182,124
---------------- ---------------- ---------------- ---------------- ---------------- ----------------
(233,450,895) 9,073,765 471,918,271 999,777,315 (2,112,085) 256,439
---------------- ---------------- ---------------- ---------------- ---------------- ----------------
(1,344,495) (6,104,611) (33,146,626) (4,694,250) (17,640) (43,541)
---------------- ---------------- ---------------- ---------------- ---------------- ----------------
16,791,408 893,325,867 2,119,288,286 2,560,530,212 1,384,468 9,415,730
(389,470,960) (89,839,649) (889,975,048) (964,304,085) (1,166,372) (1,424,855)
---------------- ---------------- ---------------- ---------------- ---------------- ----------------
(372,679,552) 803,486,218 1,229,313,238 1,596,226,127 218,096 7,990,875
---------------- ---------------- ---------------- ---------------- ---------------- ----------------
(607,474,942) 806,455,372 1,668,084,883 2,591,309,192 (1,911,629) 8,203,773
1,163,258,803 356,803,431 4,770,297,564 2,178,988,372 10,691,929 2,488,156
---------------- ---------------- ---------------- ---------------- ---------------- ----------------
$ 555,783,861 $ 1,163,258,803 $ 6,438,382,447 $ 4,770,297,564 $ 8,780,300 $ 10,691,929
================ ================ ================ ================ ================ ================
18,150,002 6,300,002 97,750,002 62,650,002 350,002 100,002
250,000 13,200,000 41,600,000 55,350,000 50,000 300,000
(7,050,000) (1,350,000) (17,650,000) (20,250,000) (50,000) (50,000)
---------------- ---------------- ---------------- ---------------- ---------------- ----------------
11,350,002 18,150,002 121,700,002 97,750,002 350,002 350,002
================ ================ ================ ================ ================ ================
See Notes to Financial Statements Page 109
FIRST TRUST EXCHANGE-TRADED FUND II
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FIRST TRUST
DOW JONES
INTERNATIONAL
INTERNET ETF
(FDNI)
-----------------------------------
SIX MONTHS ENDED
3/31/2022 YEAR ENDED
(UNAUDITED) 9/30/2021
---------------- ----------------
OPERATIONS:
Net investment income (loss).................................................................. $ 12,789 $ (591,485)
Net realized gain (loss)...................................................................... (7,680,458) 4,460,345
Net change in unrealized appreciation (depreciation).......................................... (19,010,708) (12,737,659)
---------------- ----------------
Net increase (decrease) in net assets resulting
from operations............................................................................ (26,678,377) (8,868,799)
---------------- ----------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment operations......................................................................... -- (145,080)
---------------- ----------------
SHAREHOLDER TRANSACTIONS:
Proceeds from shares sold..................................................................... -- 93,036,318
Cost of shares redeemed....................................................................... (37,980,924) (28,969,729)
---------------- ----------------
Net increase (decrease) in net assets resulting
from shareholder transactions.............................................................. (37,980,924) 64,066,589
---------------- ----------------
Total increase (decrease) in net assets....................................................... (64,659,301) 55,052,710
NET ASSETS:
Beginning of period........................................................................... 103,902,742 48,850,032
---------------- ----------------
End of period................................................................................. $ 39,243,441 $ 103,902,742
================ ================
CHANGES IN SHARES OUTSTANDING:
Shares outstanding, beginning of period....................................................... 2,600,002 1,250,002
Shares sold................................................................................... -- 2,000,000
Shares redeemed............................................................................... (1,100,000) (650,000)
---------------- ----------------
Shares outstanding, end of period............................................................. 1,500,002 2,600,002
================ ================
Page 110 See Notes to Financial Statements
FIRST TRUST EXCHANGE-TRADED FUND II
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
FIRST TRUST STOXX(R) EUROPEAN SELECT DIVIDEND INDEX FUND (FDD)
SIX MONTHS
ENDED YEAR ENDED SEPTEMBER 30,
3/31/2022 ------------------------------------------------------------------------
(UNAUDITED) 2021 2020 2019 2018 2017
------------ ------------ ------------ ------------ ------------ ------------
Net asset value, beginning of period $ 13.88 $ 10.27 $ 12.75 $ 13.12 $ 13.61 $ 11.82
---------- ---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.15 0.52 0.52 0.66 0.59 0.42
Net realized and unrealized gain (loss) (0.56) 3.61 (2.50) (0.37) (0.49) 1.79
---------- ---------- ---------- ---------- ---------- ----------
Total from investment operations (0.41) 4.13 (1.98) 0.29 0.10 2.21
---------- ---------- ---------- ---------- ---------- ----------
DISTRIBUTIONS PAID TO SHAREHOLDERS FROM:
Net investment income (0.15) (0.52) (0.50) (0.66) (0.59) (0.42)
---------- ---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 13.32 $ 13.88 $ 10.27 $ 12.75 $ 13.12 $ 13.61
========== ========== ========== ========== ========== ==========
TOTAL RETURN (a) (2.98)% 40.19% (15.64)% 2.35% 0.74% 18.93%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000's) $ 277,672 $ 286,031 $ 180,227 $ 293,918 $ 454,824 $ 529,527
RATIOS TO AVERAGE NET ASSETS:
Ratio of total expenses to average net
assets 0.57% (b) 0.58% 0.57% 0.58% 0.57% 0.60%
Ratio of net expenses to average net
assets 0.57% (b) 0.58% 0.57% 0.58% 0.57% 0.60%
Ratio of net investment income (loss) to
average net assets 2.20% (b) 4.06% 3.84% 4.84% 4.25% 3.96%
Portfolio turnover rate (c) 38% 58% 98% 24% 35% 21%
FIRST TRUST FTSE EPRA/NAREIT DEVELOPED MARKETS REAL ESTATE INDEX FUND (FFR)
SIX MONTHS
ENDED YEAR ENDED SEPTEMBER 30,
3/31/2022 ------------------------------------------------------------------------
(UNAUDITED) 2021 2020 2019 2018 2017
------------ ------------ ------------ ------------ ------------ ------------
Net asset value, beginning of period $ 50.11 $ 38.82 $ 49.44 $ 45.07 $ 44.96 $ 46.18
---------- ---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.57 0.89 0.62 1.25 1.48 0.89
Net realized and unrealized gain (loss) 2.26 10.74 (9.27) 4.55 0.31 (0.65)
---------- ---------- ---------- ---------- ---------- ----------
Total from investment operations 2.83 11.63 (8.65) 5.80 1.79 0.24
---------- ---------- ---------- ---------- ---------- ----------
DISTRIBUTIONS PAID TO SHAREHOLDERS FROM:
Net investment income (1.16) (0.34) (1.97) (1.43) (1.68) (1.46)
---------- ---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 51.78 $ 50.11 $ 38.82 $ 49.44 $ 45.07 $ 44.96
========== ========== ========== ========== ========== ==========
TOTAL RETURN (a) 5.56% 29.95% (18.12)% 13.19% 3.99% 0.67%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000's) $ 35,813 $ 34,657 $ 32,671 $ 56,436 $ 45,074 $ 51,700
RATIOS TO AVERAGE NET ASSETS:
Ratio of total expenses to average net
assets 0.94% (b) 0.92% 0.85% 0.89% 0.85% 0.70%
Ratio of net expenses to average net
assets 0.60% (b) 0.60% 0.60% 0.60% 0.60% 0.60%
Ratio of net investment income (loss) to
average net assets 2.50% (b) 2.21% 2.52% 2.61% 3.48% 2.40%
Portfolio turnover rate (c) 6% 11% 7% 7% 9% 6%
(a) 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 and expenses reimbursed by the investment
advisor.
(b) Annualized.
(c) 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 111
FIRST TRUST EXCHANGE-TRADED FUND II
FINANCIAL HIGHLIGHTS (CONTINUED)
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
FIRST TRUST DOW JONES GLOBAL SELECT DIVIDEND INDEX FUND (FGD)
SIX MONTHS
ENDED YEAR ENDED SEPTEMBER 30,
3/31/2022 ------------------------------------------------------------------------
(UNAUDITED) 2021 2020 2019 2018 2017
------------ ------------ ------------ ------------ ------------ ------------
Net asset value, beginning of period $ 24.97 $ 17.85 $ 22.90 $ 25.16 $ 25.73 $ 23.49
---------- ---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.54 1.22 1.30 1.39 1.15 1.03
Net realized and unrealized gain (loss) 0.39 7.10 (5.04) (2.24) (0.58) 2.23
---------- ---------- ---------- ---------- ---------- ----------
Total from investment operations 0.93 8.32 (3.74) (0.85) 0.57 3.26
---------- ---------- ---------- ---------- ---------- ----------
DISTRIBUTIONS PAID TO SHAREHOLDERS FROM:
Net investment income (0.59) (1.20) (1.31) (1.41) (1.14) (1.02)
---------- ---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 25.31 $ 24.97 $ 17.85 $ 22.90 $ 25.16 $ 25.73
========== ========== ========== ========== ========== ==========
TOTAL RETURN (a) 3.73% 46.94% (16.33)% (3.21)% 2.26% 14.14%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000's) $ 639,138 $ 504,454 $ 344,489 $ 532,532 $ 484,280 $ 470,887
RATIOS TO AVERAGE NET ASSETS:
Ratio of total expenses to average net
assets 0.56% (b) 0.57% 0.57% 0.59% 0.58% 0.58%
Ratio of net expenses to average net
assets 0.56% (b) 0.57% 0.57% 0.59% 0.58% 0.58%
Ratio of net investment income (loss) to
average net assets 4.31% (b) 5.11% 6.16% 6.20% 4.48% 4.43%
Portfolio turnover rate (c) 34% 38% 67% 31% 31% 35%
FIRST TRUST GLOBAL WIND ENERGY ETF (FAN)
SIX MONTHS
ENDED YEAR ENDED SEPTEMBER 30,
3/31/2022 ------------------------------------------------------------------------
(UNAUDITED) 2021 2020 2019 2018 2017
------------ ------------ ------------ ------------ ------------ ------------
Net asset value, beginning of period $ 20.92 $ 17.45 $ 13.13 $ 12.50 $ 13.13 $ 13.30
---------- ---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.07 0.28 0.26 0.30 0.28 0.41
Net realized and unrealized gain (loss) (1.22) 3.52 4.33 0.64 (0.66) 0.32
---------- ---------- ---------- ---------- ---------- ----------
Total from investment operations (1.15) 3.80 4.59 0.94 (0.38) 0.73
---------- ---------- ---------- ---------- ---------- ----------
DISTRIBUTIONS PAID TO SHAREHOLDERS FROM:
Net investment income (0.09) (0.33) (0.27) (0.31) (0.25) (0.90)
---------- ---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 19.68 $ 20.92 $ 17.45 $ 13.13 $ 12.50 $ 13.13
========== ========== ========== ========== ========== ==========
TOTAL RETURN (a) (5.51)% 21.76% 35.42% 7.58% (2.92)% 6.21%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000's) $ 328,574 $ 385,920 $ 205,075 $ 75,502 $ 79,362 $ 100,467
RATIOS TO AVERAGE NET ASSETS:
Ratio of total expenses to average net
assets 0.61% (b) 0.62% 0.66% 0.71% 0.68% 0.71%
Ratio of net expenses to average net
assets 0.60% (b) 0.60% 0.60% 0.60% 0.60% 0.60%
Ratio of net investment income (loss) to
average net assets 0.68% (b) 1.34% 1.86% 2.32% 2.21% 2.88%
Portfolio turnover rate (c) 8% 31% 42% 30% 22% 78%
(a) 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 and expenses reimbursed by the investment
advisor.
(b) Annualized.
(c) 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.
Page 112 See Notes to Financial Statements
FIRST TRUST EXCHANGE-TRADED FUND II
FINANCIAL HIGHLIGHTS (CONTINUED)
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
FIRST TRUST GLOBAL ENGINEERING AND CONSTRUCTION ETF (FLM)
SIX MONTHS
ENDED YEAR ENDED SEPTEMBER 30,
3/31/2022 ------------------------------------------------------------------------
(UNAUDITED) 2021 2020 2019 2018 2017
------------ ------------ ------------ ------------ ------------ ------------
Net asset value, beginning of period $ 53.95 $ 42.07 $ 47.05 $ 56.78 $ 56.89 $ 48.63
---------- ---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.33 0.87 1.28 0.87 0.79 0.62
Net realized and unrealized gain (loss) 0.46 11.79 (4.93) (9.71) 0.16 8.27
---------- ---------- ---------- ---------- ---------- ----------
Total from investment operations 0.79 12.66 (3.65) (8.84) 0.95 8.89
---------- ---------- ---------- ---------- ---------- ----------
DISTRIBUTIONS PAID TO SHAREHOLDERS FROM:
Net investment income (0.27) (0.78) (1.33) (0.89) (1.06) (0.63)
---------- ---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 54.47 $ 53.95 $ 42.07 $ 47.05 $ 56.78 $ 56.89
========== ========== ========== ========== ========== ==========
TOTAL RETURN (a) 1.48% 30.19% (7.52)% (15.64)% 1.67% 18.39%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000's) $ 10,895 $ 10,790 $ 6,310 $ 9,409 $ 14,194 $ 17,066
RATIOS TO AVERAGE NET ASSETS:
Ratio of total expenses to average net
assets 1.24% (b) 1.42% 1.43% 1.21% 0.88% 0.92%
Ratio of net expenses to average net
assets 0.70% (b) 0.70% 0.70% 0.70% 0.70% 0.70%
Ratio of net investment income (loss) to
average net assets 1.20% (b) 1.81% 2.68% 1.64% 1.45% 1.20%
Portfolio turnover rate (c) 11% 18% 20% 14% 16% 20%
FIRST TRUST NASDAQ(R) CLEAN EDGE(R) SMART GRID INFRASTRUCTURE INDEX FUND (GRID)
SIX MONTHS
ENDED YEAR ENDED SEPTEMBER 30,
3/31/2022 ------------------------------------------------------------------------
(UNAUDITED) 2021 2020 2019 2018 2017
------------ ------------ ------------ ------------ ------------ ------------
Net asset value, beginning of period $ 92.48 $ 62.87 $ 49.51 $ 47.62 $ 49.00 $ 39.19
---------- ---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.36 0.64 0.58 0.67 0.52 0.57
Net realized and unrealized gain (loss) 1.38 (d) 29.73 13.27 1.84 (1.32) 9.82
---------- ---------- ---------- ---------- ---------- ----------
Total from investment operations 1.74 30.37 13.85 2.51 (0.80) 10.39
---------- ---------- ---------- ---------- ---------- ----------
DISTRIBUTIONS PAID TO SHAREHOLDERS FROM:
Net investment income (0.17) (0.76) (0.49) (0.62) (0.58) (0.58)
---------- ---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 94.05 $ 92.48 $ 62.87 $ 49.51 $ 47.62 $ 49.00
========== ========== ========== ========== ========== ==========
TOTAL RETURN (a) 1.88% 48.35% 28.10% 5.32% (1.66)% 26.73%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000's) $ 728,918 $ 550,262 $ 56,579 $ 27,232 $ 33,333 $ 26,951
RATIOS TO AVERAGE NET ASSETS:
Ratio of total expenses to average net
assets 0.57% (b) 0.63% 0.75% 0.82% 0.74% 0.84%
Ratio of net expenses to average net
assets 0.57% (b) 0.63% 0.70% 0.70% 0.70% 0.70%
Ratio of net investment income (loss) to
average net assets 0.77% (b) 1.11% 1.30% 1.40% 1.10% 1.44%
Portfolio turnover rate (c) 10% 20% 53% 31% 60% 32%
(a) 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 and expenses reimbursed by the investment
advisor.
(b) Annualized.
(c) 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.
(d) The per share amount does not correlate with the aggregate realized and
unrealized gain (loss) due to the timing of the Fund share sales and
repurchases in relation to market value fluctuation of the underlying
investments.
See Notes to Financial Statements Page 113
FIRST TRUST EXCHANGE-TRADED FUND II
FINANCIAL HIGHLIGHTS (CONTINUED)
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
FIRST TRUST INDXX GLOBAL NATURAL RESOURCES INCOME ETF (FTRI)
SIX MONTHS
ENDED YEAR ENDED SEPTEMBER 30,
3/31/2022 ------------------------------------------------------------------------
(UNAUDITED) 2021 2020 2019 2018 2017
------------ ------------ ------------ ------------ ------------ ------------
Net asset value, beginning of period $ 12.97 $ 9.57 $ 11.47 $ 12.73 $ 11.88 $ 10.66
---------- ---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.37 0.80 0.53 0.72 0.48 0.41
Net realized and unrealized gain (loss) 3.69 3.29 (a) (1.86) (1.28) 0.83 1.22
---------- ---------- ---------- ---------- ---------- ----------
Total from investment operations 4.06 4.09 (1.33) (0.56) 1.31 1.63
---------- ---------- ---------- ---------- ---------- ----------
DISTRIBUTIONS PAID TO SHAREHOLDERS FROM:
Net investment income (0.53) (0.69) (0.57) (0.70) (0.46) (0.41)
---------- ---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 16.50 $ 12.97 $ 9.57 $ 11.47 $ 12.73 $ 11.88
========== ========== ========== ========== ========== ==========
TOTAL RETURN (b) 31.75% 42.87% (11.80)% (4.42)% 11.12% 15.47%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000's) $ 103,932 $ 36,312 $ 5,740 $ 7,452 $ 8,908 $ 8,913
RATIOS TO AVERAGE NET ASSETS:
Ratio of total expenses to average net
assets 0.70% (c) 0.70% 0.70% 0.70% 0.70% 0.70%
Ratio of net expenses to average net
assets 0.70% (c) 0.70% 0.70% 0.70% 0.70% 0.70%
Ratio of net investment income (loss) to
average net assets 7.35% (c) 9.06% 4.94% 5.95% 3.74% 3.39%
Portfolio turnover rate (d) 18% 99% 66% 84% 50% 61%
FIRST TRUST INDXX GLOBAL AGRICULTURE ETF (FTAG)
SIX MONTHS
ENDED YEAR ENDED SEPTEMBER 30,
3/31/2022 ------------------------------------------------------------------------
(UNAUDITED) 2021 2020 2019 2018 2017
------------ ------------ ------------ ------------ ------------ ------------
Net asset value, beginning of period $ 29.53 $ 21.73 $ 22.87 $ 26.21 $ 26.96 $ 21.55
---------- ---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.16 0.45 0.45 0.51 0.44 0.39
Net realized and unrealized gain (loss) 3.85 7.78 (1.20) (3.17) (0.83) 5.41
---------- ---------- ---------- ---------- ---------- ----------
Total from investment operations 4.01 8.23 (0.75) (2.66) (0.39) 5.80
---------- ---------- ---------- ---------- ---------- ----------
DISTRIBUTIONS PAID TO SHAREHOLDERS FROM:
Net investment income (0.21) (0.43) (0.39) (0.64) (0.36) (0.39)
Return on Capital -- -- -- (0.04) -- --
---------- ---------- ---------- ---------- ---------- ----------
Total distributions (0.21) (0.43) (0.39) (0.68) (0.36) (0.39)
---------- ---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 33.33 $ 29.53 $ 21.73 $ 22.87 $ 26.21 $ 26.96
========== ========== ========== ========== ========== ==========
TOTAL RETURN (b) 13.63% 37.94% (3.19)% (10.16)% (1.46)% 27.09%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000's) $ 16,329 $ 5,609 $ 3,040 $ 3,200 $ 4,979 $ 7,816
RATIOS TO AVERAGE NET ASSETS:
Ratio of total expenses to average net
assets 0.70% (c) 0.70% 0.70% 0.70% 0.70% 0.70%
Ratio of net expenses to average net
assets 0.70% (c) 0.70% 0.70% 0.70% 0.70% 0.70%
Ratio of net investment income (loss) to
average net assets 1.35% (c) 1.84% 2.16% 1.93% 1.56% 1.80%
Portfolio turnover rate (d) 13% 12% 17% 20% 30% 38%
(a) The per share amount does not correlate with the aggregate realized and
unrealized gain (loss) due to the timing of the Fund share sales and
repurchases in relation to market value fluctuation of the underlying
investments.
(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 and expenses reimbursed by the investment
advisor.
(c) Annualized.
(d) Portfolio turnover is calculated for the time period presented and is not
annualized for periods of less than a year and does not include securities
received or delivered from processing creations or redemptions and in-kind
transactions.
Page 114 See Notes to Financial Statements
FIRST TRUST EXCHANGE-TRADED FUND II
FINANCIAL HIGHLIGHTS (CONTINUED)
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
FIRST TRUST BICK INDEX FUND (BICK)
SIX MONTHS
ENDED YEAR ENDED SEPTEMBER 30,
3/31/2022 ------------------------------------------------------------------------
(UNAUDITED) 2021 2020 2019 2018 2017
------------ ------------ ------------ ------------ ------------ ------------
Net asset value, beginning of period $ 34.10 $ 29.02 $ 25.61 $ 26.48 $ 28.77 $ 22.94
---------- ---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.62 0.30 0.08 0.33 0.40 0.33
Net realized and unrealized gain (loss) (3.23) 5.01 3.53 (0.80) (2.34) 5.85
---------- ---------- ---------- ---------- ---------- ----------
Total from investment operations (2.61) 5.31 3.61 (0.47) (1.94) 6.18
---------- ---------- ---------- ---------- ---------- ----------
DISTRIBUTIONS PAID TO SHAREHOLDERS FROM:
Net investment income (0.82) (0.23) (0.20) (0.40) (0.35) (0.35)
---------- ---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 30.67 $ 34.10 $ 29.02 $ 25.61 $ 26.48 $ 28.77
========== ========== ========== ========== ========== ==========
TOTAL RETURN (a) (7.73)% 18.28% 14.07% (1.76)% (6.82)% 27.14%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000's) $ 21,472 $ 86,965 $ 60,937 $ 116,503 $ 190,648 $ 202,863
RATIOS TO AVERAGE NET ASSETS:
Ratio of total expenses to average net
assets 0.64% (b) 0.64% 0.64% 0.64% 0.64% 0.64%
Ratio of net expenses to average net
assets 0.64% (b) 0.64% 0.64% 0.64% 0.64% 0.64%
Ratio of net investment income (loss) to
average net assets 2.89% (b) 0.83% 0.60% 1.25% 1.33% 2.15%
Portfolio turnover rate (c) 26% 92% 58% 66% 65% 86%
FIRST TRUST INDXX NEXTG ETF (NXTG)
SIX MONTHS
ENDED YEAR ENDED SEPTEMBER 30,
3/31/2022 ------------------------------------------------------------------------
(UNAUDITED) 2021 2020 2019 2018 2017
------------ ------------ ------------ ------------ ------------ ------------
Net asset value, beginning of period $ 76.44 $ 59.05 $ 50.26 $ 49.63 $ 50.52 $ 41.29
---------- ---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.82 0.95 0.69 0.37 0.72 0.44
Net realized and unrealized gain (loss) (0.19) 17.10 8.79 0.50 (0.60) 9.29
---------- ---------- ---------- ---------- ---------- ----------
Total from investment operations 0.63 18.05 9.48 0.87 0.12 9.73
---------- ---------- ---------- ---------- ---------- ----------
DISTRIBUTIONS PAID TO SHAREHOLDERS FROM:
Net investment income (1.03) (0.62) (0.69) (0.24) (1.01) (0.50)
Net realized gain (0.25) (0.04) -- -- -- --
---------- ---------- ---------- ---------- ---------- ----------
Total distributions (1.28) (0.66) (0.69) (0.24) (1.01) (0.50)
---------- ---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 75.79 $ 76.44 $ 59.05 $ 50.26 $ 49.63 $ 50.52
========== ========== ========== ========== ========== ==========
TOTAL RETURN (a) 0.70% 30.62% 18.97% 1.78% 0.20% 23.68%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000's) $ 932,264 $1,081,610 $ 590,535 $ 196,015 $ 17,370 $ 17,683
RATIOS TO AVERAGE NET ASSETS:
Ratio of total expenses to average net
assets 0.70% (b) 0.70% 0.70% 0.70% 0.70% 0.70%
Ratio of net expenses to average net
assets 0.70% (b) 0.70% 0.70% 0.70% 0.70% 0.70%
Ratio of net investment income (loss) to
average net assets 2.02% (b) 1.47% 1.52% 1.73% 1.34% 1.04%
Portfolio turnover rate (c) 9% 27% 30% 59% 80% 18%
(a) 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.
(b) Annualized.
(c) 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 115
FIRST TRUST EXCHANGE-TRADED FUND II
FINANCIAL HIGHLIGHTS (CONTINUED)
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
FIRST TRUST S-NETWORK FUTURE VEHICLES & TECHNOLOGY ETF (CARZ)
SIX MONTHS
ENDED YEAR ENDED SEPTEMBER 30,
3/31/2022 ------------------------------------------------------------------------
(UNAUDITED) 2021 2020 2019 2018 2017
------------ ------------ ------------ ------------ ------------ ------------
Net asset value, beginning of period $ 58.17 $ 39.00 $ 32.04 $ 36.33 $ 40.25 $ 33.39
---------- ---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 1.02 0.60 0.34 1.02 0.98 0.87
Net realized and unrealized gain (loss) (0.43) 19.04 7.07 (4.28) (3.98) 6.87
---------- ---------- ---------- ---------- ---------- ----------
Total from investment operations 0.59 19.64 7.41 (3.26) (3.00) 7.74
---------- ---------- ---------- ---------- ---------- ----------
DISTRIBUTIONS PAID TO SHAREHOLDERS FROM:
Net investment income (1.12) (0.47) (0.45) (1.03) (0.92) (0.88)
---------- ---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 57.64 $ 58.17 $ 39.00 $ 32.04 $ 36.33 $ 40.25
========== ========== ========== ========== ========== ==========
TOTAL RETURN (a) 0.96% 50.43% 23.33% (8.97)% (7.57)% 23.46%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000's) $ 69,171 $ 63,989 $ 29,246 $ 17,623 $ 18,167 $ 18,112
RATIOS TO AVERAGE NET ASSETS:
Ratio of total expenses to average net
assets 0.70% (b) 0.70% 0.70% 0.70% 0.70% 0.70%
Ratio of net expenses to average net
assets 0.70% (b) 0.70% 0.70% 0.70% 0.70% 0.70%
Ratio of net investment income (loss) to
average net assets 3.53% (b) 1.17% 1.09% 3.19% 2.44% 2.20%
Portfolio turnover rate (c) 94% 42% 36% 24% 16% 17%
FIRST TRUST CLOUD COMPUTING ETF (SKYY)
SIX MONTHS
ENDED YEAR ENDED SEPTEMBER 30,
3/31/2022 ------------------------------------------------------------------------
(UNAUDITED) 2021 2020 2019 2018 2017
------------ ------------ ------------ ------------ ------------ ------------
Net asset value, beginning of period $ 105.40 $ 78.48 $ 56.39 $ 56.71 $ 41.88 $ 34.17
---------- ---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.74 0.15 0.16 0.59 0.14 0.13
Net realized and unrealized gain (loss) (14.92) 26.95 22.10 (0.31) 14.84 7.72
---------- ---------- ---------- ---------- ---------- ----------
Total from investment operations (14.18) 27.10 22.26 0.28 14.98 7.85
---------- ---------- ---------- ---------- ---------- ----------
DISTRIBUTIONS PAID TO SHAREHOLDERS FROM:
Net investment income (0.76) (0.18) (0.17) (0.60) (0.15) (0.14)
---------- ---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 90.46 $ 105.40 $ 78.48 $ 56.39 $ 56.71 $ 41.88
========== ========== ========== ========== ========== ==========
TOTAL RETURN (a) (13.54)% 34.55% 39.54% 0.57% 35.80% 23.00%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000's) $5,346,416 $6,239,449 $4,963,825 $2,168,198 $2,067,140 $1,088,930
RATIOS TO AVERAGE NET ASSETS:
Ratio of total expenses to average net
assets 0.60% (b) 0.60% 0.60% 0.60% 0.60% 0.60%
Ratio of net expenses to average net
assets 0.60% (b) 0.60% 0.60% 0.60% 0.60% 0.60%
Ratio of net investment income (loss) to
average net assets 1.47% (b) 0.16% 0.24% 1.02% 0.28% 0.34%
Portfolio turnover rate (c) 21% 33% 35% 85% 7% 14%
(a) 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.
(b) Annualized.
(c) 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.
Page 116 See Notes to Financial Statements
FIRST TRUST EXCHANGE-TRADED FUND II
FINANCIAL HIGHLIGHTS (CONTINUED)
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
FIRST TRUST INTERNATIONAL EQUITY OPPORTUNITIES ETF (FPXI)
SIX MONTHS
ENDED YEAR ENDED SEPTEMBER 30,
3/31/2022 ------------------------------------------------------------------------
(UNAUDITED) 2021 2020 2019 2018 2017
------------ ------------ ------------ ------------ ------------ ------------
Net asset value, beginning of period $ 64.09 $ 56.64 $ 36.39 $ 35.10 $ 34.51 $ 27.47
---------- ---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.21 0.40 0.11 0.30 0.49 0.22
Net realized and unrealized gain (loss) (15.24) 7.39 20.32 (a) 1.29 0.66 7.07
---------- ---------- ---------- ---------- ---------- ----------
Total from investment operations (15.03) 7.79 20.43 1.59 1.15 7.29
---------- ---------- ---------- ---------- ---------- ----------
DISTRIBUTIONS PAID TO SHAREHOLDERS FROM:
Net investment income (0.09) (0.34) (0.18) (0.30) (0.56) (0.25)
---------- ---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 48.97 $ 64.09 $ 56.64 $ 36.39 $ 35.10 $ 34.51
========== ========== ========== ========== ========== ==========
TOTAL RETURN (b) (23.48)% 13.73% 56.24% (a) 4.60% 3.35% 26.71%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000's) $ 555,784 $1,163,259 $ 356,803 $ 30,931 $ 26,322 $ 22,429
RATIOS TO AVERAGE NET ASSETS:
Ratio of total expenses to average net
assets 0.70% (c) 0.70% 0.70% 0.70% 0.70% 0.70%
Ratio of net expenses to average net
assets 0.70% (c) 0.70% 0.70% 0.70% 0.70% 0.70%
Ratio of net investment income (loss) to
average net assets 0.50% (c) 0.76% 0.38% 0.86% 1.42% 1.62%
Portfolio turnover rate (d) 48% 118% 114% 98% 83% 58%
FIRST TRUST NASDAQ CYBERSECURITY ETF (CIBR)
SIX MONTHS
ENDED YEAR ENDED SEPTEMBER 30,
3/31/2022 ------------------------------------------------------------------------
(UNAUDITED) 2021 2020 2019 2018 2017
------------ ------------ ------------ ------------ ------------ ------------
Net asset value, beginning of period $ 48.80 $ 34.78 $ 27.63 $ 28.49 $ 21.85 $ 19.77
---------- ---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.29 0.04 0.50 0.06 0.02 0.03
Net realized and unrealized gain (loss) 4.11 14.04 7.16 (0.86) 6.64 2.09
---------- ---------- ---------- ---------- ---------- ----------
Total from investment operations 4.40 14.08 7.66 (0.80) 6.66 2.12
---------- ---------- ---------- ---------- ---------- ----------
DISTRIBUTIONS PAID TO SHAREHOLDERS FROM:
Net investment income (0.30) (0.06) (0.51) (0.06) (0.02) (0.04)
---------- ---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 52.90 $ 48.80 $ 34.78 $ 27.63 $ 28.49 $ 21.85
========== ========== ========== ========== ========== ==========
TOTAL RETURN (b) 9.02% 40.50% 28.27% (2.78)% 30.49% 10.73%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000's) $6,438,382 $4,770,298 $2,178,988 $ 979,650 $ 847,673 $ 313,575
RATIOS TO AVERAGE NET ASSETS:
Ratio of total expenses to average net
assets 0.60% (c) 0.60% 0.60% 0.60% 0.60% 0.60%
Ratio of net expenses to average net
assets 0.60% (c) 0.60% 0.60% 0.60% 0.60% 0.60%
Ratio of net investment income (loss) to
average net assets 1.15% (c) 0.07% 1.54% 0.20% 0.04% 0.13%
Portfolio turnover rate (d) 29% 35% 46% 58% 56% 67%
(a) The Fund received a payment from the advisor in the amount of $806, 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.
(c) Annualized.
(d) Portfolio turnover is calculated for the time period presented and is not
annualized for periods of less than a year and does not include securities
received or delivered from processing creations or redemptions and in-kind
transactions.
See Notes to Financial Statements Page 117
FIRST TRUST EXCHANGE-TRADED FUND II
FINANCIAL HIGHLIGHTS (CONTINUED)
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
FIRST TRUST IPOX(R) EUROPE EQUITY OPPORTUNITIES ETF (FPXE)
SIX MONTHS
ENDED YEAR ENDED SEPTEMBER 30, PERIOD
3/31/2022 --------------------------- ENDED
(UNAUDITED) 2021 2020 9/30/2019 (a)
------------ ------------ ------------ ------------
Net asset value, beginning of period $ 30.55 $ 24.88 $ 19.66 $ 19.70
---------- ---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.12 0.25 0.22 0.33
Net realized and unrealized gain (loss) (5.53) 5.75 5.30 (0.06)
---------- ---------- ---------- ----------
Total from investment operations (5.41) 6.00 5.52 0.27
---------- ---------- ---------- ----------
DISTRIBUTIONS PAID TO SHAREHOLDERS FROM:
Net investment income (0.05) (0.33) (0.30) (0.31)
---------- ---------- ---------- ----------
Net asset value, end of period $ 25.09 $ 30.55 $ 24.88 $ 19.66
========== ========== ========== ==========
TOTAL RETURN (b) (17.74)% 24.19% 28.33% 1.32%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000's) $ 8,780 $ 10,692 $ 2,488 $ 1,966
RATIOS TO AVERAGE NET ASSETS:
Ratio of total expenses to average net
assets 0.70% (c) 0.70% 0.70% 0.70% (c)
Ratio of net investment income (loss) to
average net assets 0.82% (c) 0.51% 0.74% 1.77% (c)
Portfolio turnover rate (d) 54% 118% 63% 67%
FIRST TRUST DOW JONES INTERNATIONAL INTERNET ETF (FDNI)
SIX MONTHS
ENDED YEAR ENDED SEPTEMBER 30, PERIOD
3/31/2022 --------------------------- ENDED
(UNAUDITED) 2021 2020 9/30/2019 (a)
------------ ------------ ------------ ------------
Net asset value, beginning of period $ 39.96 $ 39.08 $ 21.02 $ 19.69
---------- ---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.01 (e) (0.18) (0.03) 0.75
Net realized and unrealized gain (loss) (13.81) 1.13 (f) 18.40 1.04
---------- ---------- ---------- ----------
Total from investment operations (13.80) 0.95 18.37 1.79
---------- ---------- ---------- ----------
DISTRIBUTIONS PAID TO SHAREHOLDERS FROM:
Net investment income -- (0.07) (0.31) (0.46)
---------- ---------- ---------- ----------
Net asset value, end of period $ 26.16 $ 39.96 $ 39.08 $ 21.02
========== ========== ========== ==========
TOTAL RETURN (b) (34.53)% 2.42% 88.27% 9.07%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000's) $ 39,243 $ 103,903 $ 48,850 $ 4,204
RATIOS TO AVERAGE NET ASSETS:
Ratio of total expenses to average net
assets 0.65% (c) 0.65% 0.65% 0.65% (c)
Ratio of net investment income (loss) to
average net assets 0.03% (c) (0.55)% (0.50)% 4.42% (c)
Portfolio turnover rate (d) 17% 34% 23% 61%
(a) Inception dates for FPXE and FDNI are October 4, 2018 and November 5,
2018, respectively, which are consistent with the respective Fund's
commencement of investment operations and are the dates the initial
creation units were established.
(b) Total return is calculated assuming an initial investment made at the net
asset value at the beginning of the period, reinvestment of all
distributions at net asset value during the period, and redemption at net
asset value on the last day of the period. The returns presented do not
reflect the deduction of taxes that a shareholder would pay on Fund
distributions or the redemption or sale of Fund shares. Total return is
calculated for the time period presented and is not annualized for periods
of less than a year.
(c) Annualized.
(d) Portfolio turnover is calculated for the time period presented and is not
annualized for periods of less than a year and does not include securities
received or delivered from processing creations or redemptions and in-kind
transactions.
(e) Based on average shares outstanding.
(f) The per share amount does not correlate with the aggregate realized and
unrealized gain (loss) due to the timing of the Fund share sales and
repurchases in relation to market value fluctuation of the underlying
investments.
Page 118 See Notes to Financial Statements
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NOTES TO FINANCIAL STATEMENTS
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FIRST TRUST EXCHANGE-TRADED FUND II
MARCH 31, 2022 (UNAUDITED)
1. ORGANIZATION
First Trust Exchange-Traded Fund II (the "Trust") is an open-end management
investment company organized as a Massachusetts business trust on July 6, 2006,
and is registered with the Securities and Exchange Commission under the
Investment Company Act of 1940, as amended (the "1940 Act").
The Trust currently consists of seventeen exchange-traded funds. This report
covers the sixteen funds (each a "Fund" and collectively, the "Funds") listed
below:
First Trust STOXX(R) European Select Dividend Index Fund - (NYSE Arca, Inc.
("NYSE Arca") ticker "FDD")
First Trust FTSE EPRA/NAREIT Developed Markets Real Estate Index Fund -
(NYSE Arca ticker "FFR")
First Trust Dow Jones Global Select Dividend Index Fund - (NYSE Arca ticker
"FGD")
First Trust Global Wind Energy ETF - (NYSE Arca ticker "FAN")
First Trust Global Engineering and Construction ETF - (NYSE Arca ticker
"FLM")
First Trust NASDAQ(R) Clean Edge(R) Smart Grid Infrastructure Index Fund -
(The Nasdaq Stock Market LLC ("Nasdaq") ticker "GRID")
First Trust Indxx Global Natural Resources Income ETF - (Nasdaq ticker
"FTRI")
First Trust Indxx Global Agriculture ETF - (Nasdaq ticker "FTAG")
First Trust BICK Index Fund - (Nasdaq ticker "BICK")
First Trust Indxx NextG ETF - (Nasdaq ticker "NXTG")
First Trust S-Network Future Vehicles & Technology ETF - (Nasdaq ticker
"CARZ")(1)
First Trust Cloud Computing ETF - (Nasdaq ticker "SKYY")
First Trust International Equity Opportunities ETF - (Nasdaq ticker "FPXI")
First Trust Nasdaq Cybersecurity ETF - (Nasdaq ticker "CIBR")
First Trust IPOX(R) Europe Equity Opportunities ETF - (Nasdaq ticker "FPXE")
First Trust Dow Jones International Internet ETF - (Nasdaq ticker "FDNI")
(1) Effective on January 26, 2022, First Trust NASDAQ Global Auto Index Fund
changed its name to First Trust S-Network Future Vehicles & Technology
ETF. The Fund's ticker symbol was not changed.
Each Fund represents a separate series of shares of beneficial interest in the
Trust. Unlike conventional mutual funds, each Fund issues and redeems shares on
a continuous basis, at net asset value ("NAV"), only in large blocks of shares
known as "Creation Units." The investment objective of each Fund is to seek
investment results that correspond generally to the price and yield (before the
Fund's fees and expenses) of the following indices:
FUND INDEX
First Trust STOXX(R) European Select Dividend Index Fund STOXX(R) Europe Select Dividend 30 Index
First Trust FTSE EPRA/NAREIT Developed Markets Real Estate Index Fund FTSE EPRA/NAREIT Developed Index
First Trust Dow Jones Global Select Dividend Index Fund Dow Jones Global Select Dividend Index
First Trust Global Wind Energy ETF ISE Clean Edge Global Wind Energy Index(TM)
First Trust Global Engineering and Construction ETF ISE Global Engineering and Construction(TM) Index
First Trust NASDAQ(R) Clean Edge(R) Smart Grid Infrastructure Index Fund Nasdaq Clean Edge Smart Grid
Infrastructure Index(TM)
First Trust Indxx Global Natural Resources Income ETF Indxx Global Natural Resources Income Index
First Trust Indxx Global Agriculture ETF Indxx Global Agriculture Index
First Trust BICK Index Fund ISE BICK(TM) Index
First Trust Indxx NextG ETF Indxx 5G & NextG Thematic Index(SM)
First Trust S-Network Future Vehicles & Technology ETF S-Network Electric & Future Vehicle Ecosystem Index
First Trust Cloud Computing ETF ISE CTA Cloud Computing Index(TM)
First Trust International Equity Opportunities ETF IPOX(R) International Index
First Trust Nasdaq Cybersecurity ETF Nasdaq CTA Cybersecurity Index(TM)
First Trust IPOX(R) Europe Equity Opportunities ETF IPOX(R)-100 Europe Index
First Trust Dow Jones International Internet ETF Dow Jones International Internet Index
2. SIGNIFICANT ACCOUNTING POLICIES
The Funds are each considered an investment company and follow accounting and
reporting guidance under Financial Accounting Standards Board Accounting
Standards Codification Topic 946, "Financial Services-Investment Companies." The
following is a summary of significant accounting policies consistently followed
by the Funds in the preparation of the financial statements. The preparation of
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NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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FIRST TRUST EXCHANGE-TRADED FUND II
MARCH 31, 2022 (UNAUDITED)
the financial statements in accordance with accounting principles generally
accepted in the United States of America ("U.S. GAAP") requires management to
make estimates and assumptions that affect the reported amounts and disclosures
in the financial statements. Actual results could differ from those estimates.
A. PORTFOLIO VALUATION
Each Fund's NAV is determined daily as of the close of regular trading on the
New York Stock Exchange ("NYSE"), normally 4:00 p.m. Eastern time, on each day
the NYSE is open for trading. If the NYSE closes early on a valuation day, the
NAV is determined as of that time. Foreign securities are priced using data
reflecting the earlier closing of the principal markets for those securities.
Each Fund's NAV is calculated by dividing the value of all assets of each Fund
(including accrued interest and dividends), less all liabilities (including
accrued expenses and dividends declared but unpaid), by the total number of
shares outstanding.
Each Fund's investments are valued daily at market value or, in the absence of
market value with respect to any portfolio securities, at fair value. Market
value prices represent last sale or official closing prices from a national or
foreign exchange (i.e., a regulated market) and are primarily obtained from
third-party pricing services. Fair value prices represent any prices not
considered market value prices and are either obtained from a third-party
pricing service or are determined by the Pricing Committee of the Funds'
investment advisor, First Trust Advisors L.P. ("First Trust" or the "Advisor"),
in accordance with valuation procedures adopted by the Trust's Board of
Trustees, and in accordance with provisions of the 1940 Act. Investments valued
by the Advisor's Pricing Committee, if any, are footnoted as such in the
footnotes to the Portfolio of Investments. Each Fund's investments are valued as
follows:
Common stocks and other equity securities listed on any national or
foreign exchange (excluding Nasdaq and the London Stock Exchange
Alternative Investment Market ("AIM")) are valued at the last sale price
on the exchange on which they are principally traded or, for Nasdaq and
AIM securities, the official closing price. Securities traded on more than
one securities exchange are valued at the last sale price or official
closing price, as applicable, at the close of the securities exchange
representing the principal market for such securities.
Securities trading on foreign exchanges or over-the-counter markets that
close prior to the NYSE close may be valued using a systematic fair
valuation model provided by a third-party pricing service. If these
foreign securities meet certain criteria in relation to the valuation
model, their valuation is systematically adjusted to reflect the impact of
movement in the U.S. market after the close of the foreign markets.
Shares of open-end funds are valued at fair value which is based on NAV
per share.
Securities traded in an over-the-counter market are fair valued at the
mean of their most recent bid and asked price, if available, and otherwise
at their closing bid price.
Overnight repurchase agreements are valued at amortized cost when it
represents the best estimate of fair value.
Certain securities may not be able to be priced by pre-established pricing
methods. Such securities may be valued by the Trust's Board of Trustees or its
delegate, the Advisor's Pricing Committee, at fair value. These securities
generally include, but are not limited to, restricted securities (securities
which may not be publicly sold without registration under the Securities Act of
1933, as amended) for which a third-party pricing service is unable to provide a
market price; securities whose trading has been formally suspended; a security
whose market or fair value price is not available from a pre-established pricing
source; a security with respect to which an event has occurred that is likely to
materially affect the value of the security after the market has closed but
before the calculation of a Fund's NAV or make it difficult or impossible to
obtain a reliable market quotation; and a security whose price, as provided by
the third-party pricing service, does not reflect the security's fair value. As
a general principle, the current fair value of a security would appear to be the
amount which the owner might reasonably expect to receive for the security upon
its current sale. When fair value prices are used, generally they will differ
from market quotations or official closing prices on the applicable exchanges. A
variety of factors may be considered in determining the fair value of such
securities, including, but not limited to, the following:
1) the type of security;
2) the size of the holding;
3) the initial cost of the security;
4) transactions in comparable securities;
5) price quotes from dealers and/or third-party pricing services;
6) relationships among various securities;
7) information obtained by contacting the issuer, analysts, or the
appropriate stock exchange;
8) an analysis of the issuer's financial statements; and
9) the existence of merger proposals or tender offers that might affect
the value of the security.
Page 120
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NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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FIRST TRUST EXCHANGE-TRADED FUND II
MARCH 31, 2022 (UNAUDITED)
If the securities in question are foreign securities, the following additional
information may be considered:
1) the value of similar foreign securities traded on other foreign
markets;
2) ADR trading of similar securities;
3) closed-end fund or exchange-traded fund trading of similar
securities;
4) foreign currency exchange activity;
5) the trading prices of financial products that are tied to baskets of
foreign securities;
6) factors relating to the event that precipitated the pricing problem;
7) whether the event is likely to recur; and
8) whether the effects of the event are isolated or whether they affect
entire markets, countries or regions.
In addition, differences between the prices used to calculate a Fund's NAV and
the prices used by such Fund's corresponding index could result in a difference
between a Fund's performance and the performance of its underlying index.
Because foreign markets may be open on different days than the days during which
investors may transact in the shares of a Fund, the value of the Fund's
securities may change on the days when investors are not able to transact in the
shares of the Fund. The value of securities denominated in foreign currencies is
converted into U.S. dollars using exchange rates determined daily as of the
close of regular trading on the NYSE. Any use of a different rate from the rates
used by a relevant index may adversely affect the Fund's ability to track the
index.
The Funds are subject to fair value accounting standards that define fair value,
establish the framework for measuring fair value and provide a three-level
hierarchy for fair valuation based upon the inputs to the valuation as of the
measurement date. The three levels of the fair value hierarchy are as follows:
o Level 1 - Level 1 inputs are quoted prices in active markets for
identical investments. An active market is a market in which
transactions for the investment occur with sufficient frequency and
volume to provide pricing information on an ongoing basis.
o Level 2 - Level 2 inputs are observable inputs, either directly or
indirectly, and include the following:
o Quoted prices for similar investments in active markets.
o Quoted prices for identical or similar investments in markets
that are non-active. A non-active market is a market where
there are few transactions for the investment, the prices are
not current, or price quotations vary substantially either
over time or among market makers, or in which little
information is released publicly.
o Inputs other than quoted prices that are observable for the
investment (for example, interest rates and yield curves
observable at commonly quoted intervals, volatilities,
prepayment speeds, loss severities, credit risks, and default
rates).
o Inputs that are derived principally from or corroborated by
observable market data by correlation or other means.
o Level 3 - Level 3 inputs are unobservable inputs. Unobservable
inputs may reflect the reporting entity's own assumptions about the
assumptions that market participants would use in pricing the
investment.
The inputs or methodologies used for valuing investments are not necessarily an
indication of the risk associated with investing in those investments. A summary
of the inputs used to value each Fund's investments as of March 31, 2022, is
included with each Fund's Portfolio of Investments.
B. SECURITIES TRANSACTIONS AND INVESTMENT INCOME
Securities transactions are recorded as of the trade date. Realized gains and
losses from securities transactions are recorded on the identified cost basis.
Dividend income is recorded on the ex-dividend date. Interest income, if any, is
recorded on the accrual basis.
Withholding taxes and tax reclaims on foreign dividends have been provided for
in accordance with each Fund's understanding of the applicable country's tax
rules and rates.
Distributions received from a Fund's investments in master limited partnerships
("MLPs") generally are comprised of return of capital and investment income. A
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 a 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. A Fund records the character of
distributions received from the REITs during the year based on estimates
available. The characterization of distributions received by a Fund may be
subsequently revised based on information received from the REITs after their
tax reporting periods conclude.
C. OFFSETTING ON THE STATEMENTS OF ASSETS AND LIABILITIES
Offsetting assets and liabilities requires entities to disclose both gross and
net information about instruments and transactions eligible for offset on the
Statements of Assets and Liabilities and disclose instruments and transactions
subject to master netting or similar agreements. These disclosure requirements
are intended to help investors and other financial statement users better assess
Page 121
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NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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FIRST TRUST EXCHANGE-TRADED FUND II
MARCH 31, 2022 (UNAUDITED)
the effect or potential effect of offsetting arrangements on a Fund's financial
position. The transactions subject to offsetting disclosures are derivative
instruments, repurchase agreements and reverse repurchase agreements, and
securities borrowing and securities lending transactions.
This disclosure, if applicable, is included within each Fund's Portfolio of
Investments under the heading "Offsetting Assets and Liabilities." For financial
reporting purposes, the Funds do not offset financial assets and financial
liabilities that are subject to master netting arrangements ("MNAs") or similar
agreements on the Statements of Assets and Liabilities. MNAs provide the right,
in the event of default (including bankruptcy and insolvency), for the
non-defaulting counterparty to liquidate the collateral and calculate the net
exposure to the defaulting party or request additional collateral.
D. FOREIGN CURRENCY
The books and records of the Funds 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
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 Statements 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
shown in "Net change in unrealized appreciation (depreciation) on investments"
on the Statements 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 and are included in "Net
realized gain (loss) on foreign currency transactions" on the Statements of
Operations. The portion of foreign currency gains and losses related to
fluctuations in exchange rates between the initial purchase settlement date and
subsequent sale trade date is included in "Net realized gain (loss) on
investments" on the Statements of Operations.
E. SECURITIES LENDING
The Funds may lend securities representing up to 33 1/3% of the value of their
total assets to broker-dealers, banks and other institutions to generate
additional income. When a Fund loans its portfolio securities, it will receive,
at the inception of each loan, collateral equal to at least 102% (for domestic
securities) or 105% (for international securities) of the market value of the
loaned securities. The collateral amount is valued at the beginning of each
business day and is compared to the market value of the loaned securities from
the prior business day to determine if additional collateral is required. If
additional collateral is required, a request is sent to the borrower. Securities
lending involves the risk that the Fund may lose money because the borrower of
the Fund's loaned securities fails to return the securities in a timely manner
or at all. The Fund could also lose money in the event of (i) a decline in the
value of the collateral provided for the loaned securities, (ii) a decline in
the value of any investments made with cash collateral or (iii) an increase in
the value of the loaned securities if the borrower does not increase the
collateral accordingly and the borrower fails to return the securities. These
events could also trigger adverse tax consequences for the Funds.
Under the Funds' Securities Lending Agency Agreement, the securities lending
agent will generally bear the risk that a borrower may default on its obligation
to return loaned securities. Brown Brothers Harriman & Co. ("BBH") acts as each
Fund's securities lending agent and is responsible for executing the lending of
the portfolio securities to creditworthy borrowers with the exception of FAN.
The Bank of New York Mellon ("BNYM") acts as FAN's securities lending agent and
is responsible for executing the lending of the portfolio securities to
creditworthy borrowers. The Funds, however, will be responsible for the risks
associated with the investment of cash collateral. A Fund may lose money on its
investment of cash collateral, which may affect its ability to repay the
collateral to the borrower without the use of other Fund assets. Each Fund that
engages in securities lending receives compensation (net of any rebate and
securities lending agent fees) for lending its securities. Compensation can be
in the form of fees received from the securities lending agent or dividends or
interest earned from the investment of cash collateral. The fees received from
the securities lending agent are accrued daily. The dividend and interest earned
on the securities loaned is accounted for in the same manner as other dividend
and interest income. At March 31, 2022, FAN, FLM, GRID, FTRI, BICK, NXTG, CARZ,
SKYY, FPXI, CIBR, and FPXE had securities in the securities lending program.
During the six months ended March 31, 2022, FAN, FLM, GRID, FTRI, BICK, NXTG,
CARZ, SKYY, FPXI, CIBR, and FPXE participated in the securities lending program.
In the event of a default by a borrower with respect to any loan, BBH or BNYM
will exercise any and all remedies provided under the applicable borrower
agreement to make the Funds whole. These remedies include purchasing replacement
securities by applying the collateral held from the defaulting broker against
the purchase cost of the replacement securities. If, despite such efforts by BBH
and BNYM to exercise these remedies, a Fund sustains losses as a result of a
borrower's default, BBH or BNYM will indemnify the Fund by purchasing
replacement securities at its own expense, or paying the Fund an amount equal to
the market value of the replacement securities, subject to certain limitations
which are set forth in detail in the Securities Lending Agency Agreement between
the Trust on behalf of the Funds and BBH or BNYM.
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NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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FIRST TRUST EXCHANGE-TRADED FUND II
MARCH 31, 2022 (UNAUDITED)
F. REPURCHASE AGREEMENTS
Repurchase agreements involve the purchase of securities subject to the seller's
agreement to repurchase the securities at a mutually agreed upon date and price,
under the terms of a Master Repurchase Agreement ("MRA"). During the term of a
repurchase agreement, the value of the underlying securities held as collateral
on behalf of a Fund, including accrued interest, is required to exceed the value
of the repurchase agreement, including accrued interest. The underlying
securities for all repurchase agreements are held at the Funds' custodian or
designated sub-custodians under tri-party repurchase agreements.
MRAs govern transactions between a Fund and select counterparties. The MRAs
contain provisions for, among other things, initiation, income payments, events
of default, and maintenance of collateral for repurchase agreements.
Repurchase agreements received for lending securities are collateralized by U.S.
Treasury securities. The U.S. Treasury securities are held in a joint custody
account at BBH or BNYM on behalf of the Funds participating in the securities
lending program. In the event the counterparty defaults on the repurchase
agreement, the U.S. Treasury securities can either be maintained as part of a
Fund's portfolio or sold for cash. A Fund could suffer a loss to the extent that
the proceeds from the sale of the underlying collateral held by the Fund is less
than the repurchase price and the Fund's costs associated with the delay and
enforcement of the MRA.
While the Funds may invest in repurchase agreements, any repurchase agreements
held by the Funds during the six months ended March 31, 2022, were received as
collateral for lending securities.
G. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income of each Fund, if any, are declared and paid
quarterly, or as the Board of Trustees may determine from time to time.
Distributions of net realized gains earned by each Fund, if any, are distributed
at least annually.
Distributions from net investment income and realized capital gains are
determined in accordance with federal income tax regulations, which may differ
from U.S. GAAP. Certain capital accounts in the financial statements are
periodically adjusted for permanent differences in order to reflect their tax
character. These permanent differences are primarily due to the varying
treatment of income and gain/loss on significantly modified portfolio securities
held by the Funds and have no impact on net assets or NAV per share. Temporary
differences, which arise from recognizing certain items of income, expense and
gain/loss in different periods for financial statement and tax purposes, will
reverse at some time in the future.
The tax character of distributions paid by each Fund during the fiscal year
ended September 30, 2021 was as follows:
Distributions Distributions Distributions
paid from paid from paid from
Ordinary Capital Return of
Income Gains Capital
----------------- -------------- --------------
First Trust STOXX(R) European Select Dividend Index Fund $ 9,883,719 $ -- $ --
First Trust FTSE EPRA/NAREIT Developed Markets Real Estate Index Fund 233,141 -- --
First Trust Dow Jones Global Select Dividend Index Fund 22,659,267 -- --
First Trust Global Wind Energy ETF 6,120,596 -- --
First Trust Global Engineering and Construction ETF 143,267 -- --
First Trust NASDAQ(R) Clean Edge(R) Smart Grid Infrastructure Index Fund 3,258,036 -- --
First Trust Indxx Global Natural Resources Income ETF 1,526,281 -- --
First Trust Indxx Global Agriculture ETF 76,502 -- --
First Trust BICK Index Fund 563,280 -- --
First Trust Indxx NextG ETF 8,671,946 -- --
First Trust S-Network Future Vehicles & Technology ETF 535,126 -- --
First Trust Cloud Computing ETF 11,051,410 -- --
First Trust International Equity Opportunities ETF 6,104,611 -- --
First Trust Nasdaq Cybersecurity ETF 4,694,250 -- --
First Trust IPOX(R) Europe Equity Opportunities ETF 43,541 -- --
First Trust Dow Jones International Internet ETF 145,080 -- --
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FIRST TRUST EXCHANGE-TRADED FUND II
MARCH 31, 2022 (UNAUDITED)
As of September 30, 2021, the components of distributable earnings on a tax
basis for each Fund were as follows:
Accumulated Net
Undistributed Capital and Unrealized
Ordinary Other Appreciation
Income Gain (Loss) (Depreciation)
----------------- -------------- --------------
First Trust STOXX(R) European Select Dividend Index Fund $ 312,025 $ (66,398,474) $ 22,598,719
First Trust FTSE EPRA/NAREIT Developed Markets Real Estate Index Fund 522,614 (1,484,414) 2,266,831
First Trust Dow Jones Global Select Dividend Index Fund 4,063,610 (188,171,697) 21,656,817
First Trust Global Wind Energy ETF 844,206 (53,254,998) 27,665,332
First Trust Global Engineering and Construction ETF 48,711 (8,360,205) 839,049
First Trust NASDAQ(R) Clean Edge(R) Smart Grid Infrastructure Index Fund 49,897 (573,216) 46,171,387
First Trust Indxx Global Natural Resources Income ETF 398,906 (60,586,878) (2,725,427)
First Trust Indxx Global Agriculture ETF 15,681 (19,433,604) 736,673
First Trust BICK Index Fund 152,143 (30,940,610) 8,296,855
First Trust Indxx NextG ETF 4,740,124 2,009,586 167,298,201
First Trust S-Network Future Vehicles & Technology ETF 209,766 (4,106,876) 1,886,898
First Trust Cloud Computing ETF -- (117,037,002) 983,676,734
First Trust International Equity Opportunities ETF 1,343,451 (85,061,565) 89,180,201
First Trust Nasdaq Cybersecurity ETF -- (43,875,482) 809,061,749
First Trust IPOX(R) Europe Equity Opportunities ETF 10,268 (354,453) 641,839
First Trust Dow Jones International Internet ETF (726,839) (2,315,094) (8,204,607)
H. INCOME AND OTHER TAXES
Each 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, each Fund may be subject to an excise tax of
4% of the amount by which approximately 98% of each Fund's taxable income
exceeds the distributions from such taxable income for the calendar year.
Certain countries assess a capital gains tax on securities sold in their local
markets. This tax is accrued as the securities in these foreign markets
appreciate in value and is paid at the time of sale to the extent a capital gain
is realized. Taxes accrued on securities in an unrealized appreciation position
are included in "Net change in unrealized appreciation (depreciation) on
deferred foreign capital gains tax" on the Statements of Operations. The capital
gains tax paid on securities sold, if any, is included in "Net realized gain
(loss) on foreign capital gains tax" on the Statements of Operations.
India's Finance Bill, 2018 ("Finance Bill, 2018") was enacted into law on March
29, 2018 and amongst other provisions, it introduced a long-term capital gains
tax beginning April 1, 2018. Long-term capital gains on the sale of listed
shares in excess of INR 0.1 million are taxed at the rate of 10% (plus
applicable surcharge and cess (which is a type of tax)) subject to satisfaction
of certain conditions. Long-term capital gains accruing as of January 31, 2018
are considered exempt due to a grandfather clause in the provision. The
aforesaid exemption from long-term capital gains tax is available with respect
to shares acquired between October 1, 2004 and March 31, 2018 only if on such
acquisitions Securities Transaction Tax ("STT") was chargeable. Certain
exceptions in this regard, such as acquisition of shares in a public offer,
bonus, rights issued, etc. for which the condition of chargeability of STT on
acquisition is not applicable, have been notified.
In the case of the sale of listed shares held by a Fund for one year or less,
the income is classified as short-term capital gains and is taxable at 15% (plus
applicable surcharge and cess) provided the shares are sold on the stock
exchange and subjected to STT. For above purposes, the applicable rate of
surcharge is 2% or 5% (depending on the level of income of the Fund). The
Finance Bill, 2018 increases the cess imposed on the sum of tax and surcharge
from 3% to 4%. The cess 4% rate is applied to the capital gains tax, resulting
in a higher effective rate of capital gains tax.
Where the sale of shares is outside the stock exchange and not subject to STT,
the long-term capital gains are taxed at 10% (plus applicable surcharge and
cess) and short-term capital gains are taxed at 30% (plus applicable surcharge
and cess). The Finance Bill, 2018, approves the carry forward of long-term
capital losses to be offset against long-term capital gains. Short-term losses
can be netted against both short-term gains and long-term gains.
Page 124
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NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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FIRST TRUST EXCHANGE-TRADED FUND II
MARCH 31, 2022 (UNAUDITED)
Until March 31, 2020, dividends received by the Fund from Indian companies were
exempt from tax in India because Indian companies were required to pay dividend
distribution tax. The Indian Finance Act, 2020 has amended the dividend taxation
framework effective April 1, 2020 and accordingly dividends would now be taxable
in the hands of the shareholders at 20%, plus applicable surcharge and cess.
Subsequent to the Indian Finance Act, 2020, "The Taxation and Other Laws
(Relaxation and Amendment of Certain Provisions) Bill, 2020" (the "Bill") was
enacted into law and is effective retroactively to April 1, 2020. The Bill caps
the maximum surcharge at 15% of the tax on dividend income earned by the Fund.
The highest effective tax rate proposed for non-corporate entities on dividends
will be 23.92%. Note the Fund will not obtain relief under the US-India tax
treaty as the treaty rate of 25% is higher than the domestic rate. Any excess
taxes withheld can be offset against capital gains tax liability during the year
or claimed as a refund in the annual tax return.
Please note that the above description is based on current provisions of Indian
law, and any change or modification made by subsequent legislation, regulation,
or administrative or judicial decision could increase the Indian tax liability
of a Fund and thus reduce the return to a Fund's shareholders. There can be no
assurance that the Indian tax authorities and/or regulators will not take a
position contrary to the views expressed herein. If the Indian tax authorities
and/or regulators take a position contrary to the views expressed herein,
adverse unpredictable consequences may follow.
The Funds are subject to accounting standards that establish a minimum threshold
for recognizing, and a system for measuring, the benefits of a tax position
taken or expected to be taken in a tax return. Taxable years ended 2018, 2019,
2020, and 2021 remain open to federal and state audit. As of March 31, 2022,
management has evaluated the application of these standards to the Funds and has
determined that no provision for income tax is required in the Funds' financial
statements for uncertain tax positions.
Each Fund intends to utilize provisions of the federal income tax laws, which
allow it to carry a realized capital loss forward indefinitely following the
year of the loss and offset such loss against any future realized capital gains.
Each Fund is subject to certain limitations under U.S. tax rules on the use of
capital loss carryforwards and net unrealized built-in losses. These limitations
apply when there has been a 50% change in ownership. At September 30, 2021, for
federal income tax purposes, each applicable Fund had a capital loss
carryforward available that is shown in the table below, to the extent provided
by regulations, to offset future capital gains. To the extent that these loss
carryforwards are used to offset future capital gains, it is probable that the
capital gains so offset will not be distributed to each applicable Fund's
shareholders.
Non-Expiring
Capital Loss
Carryforward
---------------------
First Trust STOXX(R) European Select Dividend Index Fund $ 66,398,474
First Trust FTSE EPRA/NAREIT Developed Markets Real Estate Index Fund* 1,484,414
First Trust Dow Jones Global Select Dividend Index Fund 188,171,697
First Trust Global Wind Energy ETF 53,254,998
First Trust Global Engineering and Construction ETF 8,360,205
First Trust NASDAQ(R) Clean Edge(R) Smart Grid Infrastructure Index Fund 573,216
First Trust Indxx Global Natural Resources Income ETF 60,586,878
First Trust Indxx Global Agriculture ETF 19,433,604
First Trust BICK Index Fund 30,940,610
First Trust Indxx NextG ETF --
First Trust S-Network Future Vehicles & Technology ETF 4,106,876
First Trust Cloud Computing ETF 117,037,002
First Trust International Equity Opportunities ETF 85,061,565
First Trust Nasdaq Cybersecurity ETF 43,875,482
First Trust IPOX(R) Europe Equity Opportunities ETF 354,453
First Trust Dow Jones International Internet ETF 2,315,094
* $75,097 of First Trust FTSE EPRA/NAREIT Developed Markets Real Estate
Index Fund's non-expiring net capital losses is subject to loss limitation
resulting from reorganization activity. This limitation generally reduces
the utilization of these losses to a maximum of $34,965 per year.
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NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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FIRST TRUST EXCHANGE-TRADED FUND II
MARCH 31, 2022 (UNAUDITED)
During the taxable year ended September 30, 2021, the following Funds utilized
non-expiring capital loss carryforwards in the following amounts:
Capital Loss
Carryforward
Utilized
---------------------
First Trust STOXX(R) European Select Dividend Index Fund $ 14,703,151
First Trust FTSE EPRA/NAREIT Developed Markets Real Estate Index Fund 156,259
First Trust Indxx Global Natural Resources Income ETF 1,611,960
First Trust Indxx Global Agriculture ETF 50,032
First Trust Indxx NextG ETF 342,410
First Trust Nasdaq Cybersecurity ETF 1,901,108
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 September 30, 2021, the following
Fund incurred and elected to defer late year ordinary or capital losses as
follows:
Qualified Late Year Losses
------------------------------------------
Ordinary Losses Capital Losses
--------------- --------------
First Trust Dow Jones International Internet ETF $ 726,839 $ --
As of March 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)
----------------------------------------------------------------------------
First Trust STOXX(R) European Select
Dividend Index Fund $ 265,190,760 $ 22,802,985 $ (13,679,984) $ 9,123,001
First Trust FTSE EPRA/NAREIT Developed
Markets Real Estate Index Fund 31,776,725 6,852,622 (2,902,397) 3,950,225
First Trust Dow Jones Global Select Dividend
Index Fund 608,667,842 47,929,772 (24,794,587) 23,135,185
First Trust Global Wind Energy ETF 344,745,995 40,303,618 (35,826,727) 4,476,891
First Trust Global Engineering and
Construction ETF 9,954,468 2,114,921 (925,705) 1,189,216
First Trust NASDAQ(R) Clean Edge(R) Smart
Grid Infrastructure Index Fund 729,772,056 51,767,884 (26,114,875) 25,653,009
First Trust Indxx Global Natural Resources
Income ETF 100,835,088 11,760,703 (924,531) 10,836,172
First Trust Indxx Global Agriculture ETF 15,494,903 1,354,172 (562,636) 791,536
First Trust BICK Index Fund 22,095,261 3,189,075 (3,270,528) (81,453)
First Trust Indxx NextG ETF 850,677,575 147,044,796 (48,349,909) 98,694,887
First Trust S-Network Future Vehicles
& Technology ETF 71,361,338 5,949,250 (4,375,527) 1,573,723
First Trust Cloud Computing ETF 5,294,415,489 929,448,050 (727,702,113) 201,745,937
First Trust International Equity
Opportunities ETF 612,377,703 33,617,480 (70,781,910) (37,164,430)
First Trust Nasdaq Cybersecurity ETF 5,334,336,766 1,227,881,002 (115,926,462) 1,111,954,540
First Trust IPOX(R) Europe Equity
Opportunities ETF 9,804,533 277,996 (1,106,306) (828,310)
First Trust Dow Jones International
Internet ETF 62,753,792 1,325,387 (26,267,534) (24,942,147)
I. EXPENSES
Expenses that are directly related to one of the Funds are charged directly to
the respective Fund, except for First Trust Indxx Global Natural Resources
Income ETF, First Trust Indxx Global Agriculture ETF, First Trust BICK Index
Fund, First Trust Indxx NextG ETF, First Trust S-Network Future Vehicles &
Technology ETF, First Trust Cloud Computing ETF, First Trust International
Page 126
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NOTES TO FINANCIAL STATEMENTS (CONTINUED)
--------------------------------------------------------------------------------
FIRST TRUST EXCHANGE-TRADED FUND II
MARCH 31, 2022 (UNAUDITED)
Equity Opportunities ETF, First Trust Nasdaq Cybersecurity ETF, First Trust
IPOX(R) Europe Equity Opportunities ETF, and First Trust Dow Jones International
Internet ETF (the "Unitary Fee Funds"), for which expenses other than excluded
expenses (discussed in Note 3) are paid by the Advisor. General expenses of the
Trust are allocated to all the Funds based upon the net assets of each Fund.
First Trust has entered into licensing agreements with each of the following
"Licensors" for the respective Funds:
FUND LICENSOR
First Trust STOXX(R) European Select Dividend Index Fund STOXX Limited
First Trust FTSE EPRA/NAREIT Developed Markets Real Estate Index Fund FTSE International Limited
First Trust Dow Jones Global Select Dividend Index Fund S&P Dow Jones Indices LLC
First Trust Global Wind Energy ETF Nasdaq, Inc.
First Trust Global Engineering and Construction ETF Nasdaq, Inc.
First Trust NASDAQ(R) Clean Edge(R) Smart Grid Infrastructure Index Fund Nasdaq, Inc.
First Trust Indxx Global Agriculture ETF Indxx, LLC
First Trust BICK Index Fund Nasdaq, Inc.
First Trust Indxx NextG ETF Indxx, LLC
First Trust S-Network Future Vehicles & Technology ETF S-Network Global Indexes, Inc.
First Trust Cloud Computing ETF Nasdaq, Inc.
First Trust International Equity Opportunities ETF IPOX(R) Schuster LLC
First Trust Nasdaq Cybersecurity ETF Nasdaq, Inc.
First Trust IPOX(R) Europe Equity Opportunities ETF IPOX(R) Schuster LLC
First Trust Dow Jones International Internet ETF S&P Dow Jones Indices LLC
The respective license agreements allow for the use of each Fund's respective
index and of certain trademarks and trade names of the respective Licensors. The
Funds are sub-licensees to the applicable license agreements. The Funds, except
for the Unitary Fee Funds, are required to pay licensing fees, which are shown
on the Statements of Operations. The licensing fees for the Unitary Fee Funds
are paid by First Trust from the unitary investment advisory fees it receives
from each of these Funds.
3. INVESTMENT ADVISORY FEE, AFFILIATED TRANSACTIONS AND OTHER FEE ARRANGEMENTS
First Trust, the investment advisor to the Funds, is a limited partnership with
one limited partner, Grace Partners of DuPage L.P., and one general partner, The
Charger Corporation. The Charger Corporation is an Illinois corporation
controlled by James A. Bowen, Chief Executive Officer of First Trust. First
Trust is responsible for the selection and ongoing monitoring of the securities
in each Fund's portfolio, managing the Funds' business affairs and providing
certain administrative services necessary for the management of the Funds.
For the following Unitary Fee Funds, First Trust is paid an annual unitary
management fee at the specified rate of such Fund's average daily net assets and
is responsible for the expenses of such Fund including the cost of transfer
agency, custody, fund administration, legal, audit and other services, and
excluding fee payments under the Investment Management Agreement, distribution
and service fees payable pursuant to a Rule 12b-1 plan, if any, brokerage
expense, acquired fund fees and expenses, taxes, interest, and extraordinary
expenses.
% of Daily
Net Assets
------------
First Trust Indxx Global Natural Resources Income ETF 0.70%
First Trust Indxx Global Agriculture ETF 0.70%
First Trust BICK Index Fund 0.64%
First Trust Indxx NextG ETF 0.70%
First Trust S-Network Future Vehicles & Technology ETF 0.70%
First Trust Cloud Computing ETF 0.60%
First Trust International Equity Opportunities ETF 0.70%
First Trust Nasdaq Cybersecurity ETF 0.60%
First Trust IPOX(R) Europe Equity Opportunities ETF 0.70%
First Trust Dow Jones International Internet ETF 0.65%
For the First Trust STOXX(R) European Select Dividend Index Fund, First Trust
FTSE EPRA/NAREIT Developed Markets Real Estate Index Fund, First Trust Dow Jones
Global Select Dividend Index Fund, First Trust Global Wind Energy ETF, First
Trust Global Engineering and Construction ETF, and First Trust NASDAQ(R) Clean
Edge(R) Smart Grid Infrastructure Index Fund (such Funds, the "Expense Cap
Funds"), First Trust is paid an annual management fee of 0.40% of such Fund's
average daily net assets.
Page 127
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NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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FIRST TRUST EXCHANGE-TRADED FUND II
MARCH 31, 2022 (UNAUDITED)
For the Expense Cap Funds, the Trust and First Trust have entered into an
Expense Reimbursement, Fee Waiver and Recovery Agreement ("Recovery Agreement")
in which First Trust has agreed to waive fees and/or reimburse Fund expenses to
the extent that the operating expenses of each such Fund (excluding interest
expense, brokerage commissions and other trading expenses, acquired fund fees
and expenses, taxes and extraordinary expenses) exceed the following amount as a
percentage of average daily net assets per year (the "Expense Cap") at least
through January 31, 2023.
Expense Cap
-------------
First Trust STOXX(R) European Select Dividend Index Fund 0.60%
First Trust FTSE EPRA/NAREIT Developed Markets Real Estate Index Fund 0.60%
First Trust Dow Jones Global Select Dividend Index Fund 0.60%
First Trust Global Wind Energy ETF 0.60%
First Trust Global Engineering and Construction ETF 0.70%
First Trust NASDAQ(R) Clean Edge(R) Smart Grid Infrastructure Index Fund 0.70%
Expenses reimbursed and fees waived by First Trust under the Recovery Agreement
are subject to recovery by First Trust for up to three years from the date the
fee or expense was incurred, but no reimbursement payment will be made by a 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. These amounts would be included
in "Expenses previously waived or reimbursed" on the Statements of Operations.
The advisory fee waivers and expense reimbursements for the six months ended
March 31, 2022 and the fees waived or expenses borne by First Trust subject to
recovery from the applicable Fund for the periods indicated were as follows:
Fees Waived or Expenses Borne by First Trust
Subject to Recovery
---------------------------------------------------------
Advisory Expense Six Months Year Year Six Months
Fee Reim- Ended Ended Ended Ended
Waivers bursements 9/30/2019 9/30/2020 9/30/2021 3/31/2022 Total
---------- ---------- ---------- ---------- ---------- ---------- ---------
First Trust FTSE EPRA/NAREIT
Developed Markets Real Estate
Index Fund $ 61,682 $ -- $ 63,863 $ 114,648 $ 108,383 $ 61,682 $ 348,576
First Trust Global Wind Energy ETF 24,744 -- 39,810 69,675 66,999 24,744 201,228
First Trust Global Engineering and
Construction ETF 21,713 7,477 30,067 55,317 63,848 29,190 178,422
The Trust has multiple service agreements with BNYM. Under the service
agreements, BNYM performs custodial, fund accounting, certain administrative
services, and transfer agency services for each Fund. As custodian, BNYM is
responsible for custody of each Fund's assets. As fund accountant and
administrator, BNYM is responsible for maintaining the books and records of each
Fund's securities and cash. As transfer agent, BNYM is responsible for
maintaining shareholder records for each Fund. BNYM is a subsidiary of The Bank
of New York Mellon Corporation, a financial holding company.
Each Trustee who is not an officer or employee of First Trust, any sub-advisor
or any of their affiliates ("Independent Trustees") is paid a fixed annual
retainer that is allocated equally among each fund in the First Trust Fund
Complex. Each Independent Trustee is also paid an annual per fund fee that
varies based on whether the fund is a closed-end or other actively managed fund,
a defined-outcome fund or an index fund.
Additionally, the Lead Independent Trustee and the Chairs of the Audit
Committee, Nominating and Governance Committee and Valuation Committee are paid
annual fees to serve in such capacities, with such compensation allocated pro
rata among each fund in the First Trust Fund Complex based on net assets.
Independent Trustees are reimbursed for travel and out-of-pocket expenses in
connection with all meetings. The Lead Independent Trustee and Committee Chairs
rotate every three years. The officers and "Interested" Trustee receive no
compensation from the Trust for acting in such capacities.
Page 128
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NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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FIRST TRUST EXCHANGE-TRADED FUND II
MARCH 31, 2022 (UNAUDITED)
4. PURCHASES AND SALES OF SECURITIES
For the six months ended March 31, 2022, the cost of purchases and proceeds from
sales of investments for each Fund, excluding short-term investments and in-kind
transactions, were as follows:
Purchases Sales
---------------- --------------
First Trust STOXX(R) European Select Dividend Index Fund $ 109,015,765 $ 109,573,271
First Trust FTSE EPRA/NAREIT Developed Markets Real Estate Index Fund 2,001,550 2,369,215
First Trust Dow Jones Global Select Dividend Index Fund 207,270,952 184,322,458
First Trust Global Wind Energy ETF 29,732,484 28,950,957
First Trust Global Engineering and Construction ETF 1,160,041 1,182,456
First Trust NASDAQ(R) Clean Edge(R) Smart Grid Infrastructure Index Fund 99,412,519 67,815,321
First Trust Indxx Global Natural Resources Income ETF 12,343,190 8,699,810
First Trust Indxx Global Agriculture ETF 2,521,093 1,021,086
First Trust BICK Index Fund 8,643,986 40,477,266
First Trust Indxx NextG ETF 95,752,970 128,049,565
First Trust S-Network Future Vehicles & Technology ETF 71,177,637 67,902,228
First Trust Cloud Computing ETF 1,236,885,773 1,221,245,972
First Trust International Equity Opportunities ETF 420,627,708 465,975,601
First Trust Nasdaq Cybersecurity ETF 1,607,359,378 1,578,727,537
First Trust IPOX(R) Europe Equity Opportunities ETF 5,635,800 5,646,745
First Trust Dow Jones International Internet ETF 12,875,694 12,944,740
For the six months ended March 31, 2022, the cost of in-kind purchases and
proceeds from in-kind sales for each Fund were as follows:
Purchases Sales
---------------- --------------
First Trust STOXX(R) European Select Dividend Index Fund $ 13,620,210 $ 9,639,707
First Trust FTSE EPRA/NAREIT Developed Markets Real Estate Index Fund 2,548,883 2,520,806
First Trust Dow Jones Global Select Dividend Index Fund 115,127,725 10,638,221
First Trust Global Wind Energy ETF 17,763,800 53,561,831
First Trust Global Engineering and Construction ETF -- --
First Trust NASDAQ(R) Clean Edge(R) Smart Grid Infrastructure Index Fund 216,656,595 59,478,951
First Trust Indxx Global Natural Resources Income ETF 51,239,194 --
First Trust Indxx Global Agriculture ETF 11,023,098 2,882,147
First Trust BICK Index Fund -- 33,541,945
First Trust Indxx NextG ETF 55,925,698 184,053,719
First Trust S-Network Future Vehicles & Technology ETF 32,203,362 28,132,850
First Trust Cloud Computing ETF 831,176,906 843,288,948
First Trust International Equity Opportunities ETF 13,214,346 339,507,214
First Trust Nasdaq Cybersecurity ETF 2,090,866,839 878,338,729
First Trust IPOX(R) Europe Equity Opportunities ETF 1,382,278 1,162,843
First Trust Dow Jones International Internet ETF -- 35,618,147
5. CREATIONS, REDEMPTIONS AND TRANSACTION FEES
Each Fund generally issues and redeems its shares in primary market transactions
through a creation and redemption mechanism and does not sell or redeem
individual shares. Instead, financial entities known as "Authorized
Participants" have contractual arrangements with a Fund or one of the Fund's
service providers to purchase and redeem Fund shares directly with the Fund in
large blocks of shares known as "Creation Units." Prior to the start of trading
on every business day, a Fund publishes through the National Securities Clearing
Corporation ("NSCC") the "basket" of securities, cash or other assets that it
will accept in exchange for a Creation Unit of the Fund's shares. An Authorized
Participant that wishes to effectuate a creation of a Fund's shares deposits
with the Fund the "basket" of securities, cash or other assets identified by the
Fund that day, and then receives the Creation Unit of the Fund's shares in
return for those assets. After purchasing a Creation Unit, the Authorized
Participant may continue to hold the Fund's shares or sell them in the secondary
market. The redemption process is the reverse of the purchase process: the
Authorized Participant redeems a Creation Unit of a Fund's shares for a basket
of securities, cash or other assets. The combination of the creation and
redemption process with secondary market trading in a Fund's shares and
underlying securities provides arbitrage opportunities that are designed to help
keep the market price of a Fund's shares at or close to the NAV per share of the
Fund.
Each Fund imposes fees in connection with the purchase of Creation Units. These
fees may vary based upon various fact-based circumstances, including, but not
limited to, the composition of the securities included in the Creation Unit or
the countries in which the transactions are settled. The price for each Creation
Unit will equal the daily NAV per share of a Fund times the number of shares
Page 129
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NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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FIRST TRUST EXCHANGE-TRADED FUND II
MARCH 31, 2022 (UNAUDITED)
in a Creation Unit, plus the fees described above and, if applicable, any
operational processing and brokerage costs, transfer fees, stamp taxes and part
or all of the spread between the expected bid and offer side of the market
related to the securities comprising the creation basket.
Each Fund also imposes fees in connection with the redemption of Creation Units.
These fees may vary based upon various fact-based circumstances, including, but
not limited to, the composition of the securities included in the Creation Unit
or the countries in which the transactions are settled. The price received for
each Creation Unit will equal the daily NAV per share of a Fund times the number
of shares in a Creation Unit, minus the fees described above and, if applicable,
any operational processing and brokerage costs, transfer fees, stamp taxes and
part or all of the spread between the expected bid and offer side of the market
related to the securities comprising the redemption basket. Investors who use
the services of a broker or other such intermediary in addition to an Authorized
Participant to effect a redemption of a Creation Unit may also be assessed an
amount to cover the cost of such services. The redemption fee charged by a Fund
will comply with Rule 22c-2 of the 1940 Act which limits redemption fees to no
more than 2% of the value of the shares redeemed.
6. DISTRIBUTION PLAN
The Board of Trustees adopted a Distribution and Service Plan pursuant to Rule
12b-1 under the 1940 Act. In accordance with the Rule 12b-1 plan, the Funds are
authorized to pay an amount up to 0.25% of their average daily net assets each
year to reimburse First Trust Portfolios L.P. ("FTP"), the distributor of the
Funds, for amounts expended to finance activities primarily intended to result
in the sale of Creation Units or the provision of investor services. FTP may
also use this amount to compensate securities dealers or other persons that are
Authorized Participants for providing distribution assistance, including
broker-dealer and shareholder support and educational and promotional services.
No 12b-1 fees are currently paid by the Funds, and pursuant to a contractual
arrangement, no 12b-1 fees will be paid any time before January 31, 2023.
7. INDEMNIFICATION
The Trust, on behalf of the Funds, has a variety of indemnification obligations
under contracts with its service providers. The Trust's maximum exposure under
these arrangements is unknown. However, the Trust has not had prior claims or
losses pursuant to these contracts and expects the risk of loss to be remote.
8. OTHER MATTERS
First Trust previously announced that, subject to shareholder approval of the
matters described below, First Trust Global Engineering and Construction ETF
will seek investment results that correspond generally to the price and yield
(before the Fund's fees and expenses) of an equity index called the Alerian US
NextGen Infrastructure Index (the "New NextGen Index"). The New NextGen Index
will be composed of securities issued by U.S. companies that build, operate and
own infrastructure assets. The New NextGen Index includes companies domiciled
and incorporated in the United States that are engaged in the construction,
development, operation and maintenance of infrastructure. Additionally, First
Trust Global Engineering and Construction ETF is expected to change its name to
First Trust Alerian US NextGen Infrastructure ETF and its new ticker symbol is
expected to be RBLD. The Fund's shares will continue to be listed for trading on
NYSE Arca, Inc. and S-Network Global Indexes, Inc. will serve as the Fund's
index provider.
First Trust previously announced that, subject to shareholder approval of the
matters described below, First Trust FTSE EPRA/NAREIT Developed Markets Real
Estate Index Fund will seek investment results that correspond generally to the
price and yield (before the Fund's fees and expenses) of an index called the
Alerian Disruptive Technology Real Estate Index (the "New Real Estate Index").
The New Real Estate Index will be composed of securities issued by companies
that own and lease real estate that support wired communication, wireless
communication, data infrastructure, warehouses and fulfillment centers. The New
Real Estate Index includes operating companies and real estate investment trusts
that are engaged in communications activities including the development and
ownership of broadcast and mobile network towers, satellites, fiber-optic and
other forms of data-transmitting cable, warehouses and fulfillment centers.
Additionally, First Trust FTSE EPRA/NAREIT Developed Markets Real Estate Index
Fund is expected to change its name to First Trust Alerian Disruptive Technology
Real Estate ETF and its new ticker symbol is expected to be DTRE. The Fund's
shares will continue to be listed for trading on NYSE Arca, Inc. and S-Network
Global Indexes, Inc. will serve as the Fund's index provider.
9. SUBSEQUENT EVENTS
Management has evaluated the impact of all subsequent events on the Funds
through the date the financial statements were issued, and has determined that
there was the following subsequent event:
On April 20, 2022, First Trust Indxx Metaverse ETF, an additional series of the
Trust, began trading under the symbol "ARVR" on Nasdaq.
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ADDITIONAL INFORMATION
--------------------------------------------------------------------------------
FIRST TRUST EXCHANGE-TRADED FUND II
MARCH 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 each Fund voted proxies relating to
its portfolio securities during the most recent 12-month period ended June 30 is
available (1) without charge, upon request, by calling (800) 988-5891; (2) on
each Fund's website at www.ftportfolios.com; and (3) on the Securities and
Exchange Commission's ("SEC") website at www.sec.gov.
PORTFOLIO HOLDINGS
Each Fund files portfolio holdings information for each month in a fiscal
quarter within 60 days after the end of the relevant fiscal quarter on Form
N-PORT. Portfolio holdings information for the third month of each fiscal
quarter will be publicly available on the SEC's website at www.sec.gov. Each
Fund's complete schedule of portfolio holdings for the second and fourth
quarters of each fiscal year is included in the semi-annual and annual reports
to shareholders, respectively, and is filed with the SEC on Form N-CSR. The
semi-annual and annual report for each Fund is available to investors within 60
days after the period to which it relates. Each Fund's Forms N-PORT and Forms
N-CSR are available on the SEC's website listed above.
RISK CONSIDERATIONS
RISKS ARE INHERENT IN ALL INVESTING. CERTAIN GENERAL RISKS THAT MAY BE
APPLICABLE TO A FUND ARE IDENTIFIED BELOW, BUT NOT ALL OF THE MATERIAL RISKS
RELEVANT TO EACH FUND ARE INCLUDED IN THIS REPORT AND NOT ALL OF THE RISKS BELOW
APPLY TO EACH FUND. THE MATERIAL RISKS OF INVESTING IN EACH FUND ARE SPELLED OUT
IN ITS PROSPECTUS, STATEMENT OF ADDITIONAL INFORMATION AND OTHER REGULATORY
FILINGS. BEFORE INVESTING, YOU SHOULD CONSIDER EACH FUND'S INVESTMENT OBJECTIVE,
RISKS, CHARGES AND EXPENSES, AND READ EACH FUND'S PROSPECTUS AND STATEMENT OF
ADDITIONAL INFORMATION CAREFULLY. YOU CAN DOWNLOAD EACH FUND'S PROSPECTUS AT
WWW.FTPORTFOLIOS.COM OR CONTACT FIRST TRUST PORTFOLIOS L.P. AT (800) 621-1675 TO
REQUEST A PROSPECTUS, WHICH CONTAINS THIS AND OTHER INFORMATION ABOUT EACH FUND.
CONCENTRATION RISK. To the extent that a fund is able to invest a significant
percentage of its assets in a single asset class or the securities of issuers
within the same country, state, region, industry or sector, an adverse economic,
business or political development may affect the value of the fund's investments
more than if the fund were more broadly diversified. A fund that tracks an index
will be concentrated to the extent the fund's corresponding index is
concentrated. A concentration makes a fund more susceptible to any single
occurrence and may subject the fund to greater market risk than a fund that is
more broadly diversified.
CREDIT RISK. Credit risk is the risk that an issuer of a security will be unable
or unwilling to make dividend, interest and/or principal payments when due and
the related risk that the value of a security may decline because of concerns
about the issuer's ability to make such payments.
CYBER SECURITY RISK. The funds are susceptible to potential operational risks
through breaches in cyber security. A breach in cyber security refers to both
intentional and unintentional events that may cause a fund to lose proprietary
information, suffer data corruption or lose operational capacity. Such events
could cause a fund to incur regulatory penalties, reputational damage,
additional compliance costs associated with corrective measures and/or financial
loss. In addition, cyber security breaches of a fund's third-party service
providers, such as its administrator, transfer agent, custodian, or sub-advisor,
as applicable, or issuers in which the fund invests, can also subject a fund to
many of the same risks associated with direct cyber security breaches.
DEFINED OUTCOME FUNDS RISK. To the extent a fund's investment strategy is
designed to deliver returns tied to the price performance of an underlying ETF,
an investor may not realize the returns the fund seeks to achieve if that
investor does not hold shares for the entire target outcome period. In the event
an investor purchases shares after the first day of the target outcome period or
sells shares prior to the end of the target outcome period, the buffer that the
fund seeks to provide against a decline in the value of the underlying ETF may
not be available, the enhanced returns that the fund seeks to provide (if any)
may not be available and the investor may not participate in a gain in the value
of the underlying ETF up to the cap for the investor's investment period.
Additionally, the fund will not participate in gains of the underlying ETF above
the cap and a shareholder may lose their entire investment. If the fund seeks
enhanced returns, there are certain time periods when the value of the fund may
fall faster than the value of the underlying ETF, and it is very unlikely that,
on any given day during which the underlying ETF share price increases in value,
the fund's share price will increase at the same rate as the enhanced returns
sought by the fund, which is designed for an entire target outcome period.
Trading flexible exchange options involves risks different from, or possibly
greater than, the risks associated with investing directly in securities, such
as less liquidity and correlation and valuation risks. A fund may experience
substantial downside from specific flexible exchange option positions and
certain positions may expire worthless.
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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,
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
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MARCH 31, 2022 (UNAUDITED)
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. Securities held by a fund, as well as shares of a fund itself, are
subject to market fluctuations caused by factors such as general economic
conditions, political events, regulatory or market developments, changes in
interest rates and perceived trends in securities prices. Shares of a fund could
decline in value or underperform other investments as a result of the risk of
loss associated with these market fluctuations. In addition, local, regional or
global events such as war, acts of terrorism, spread of infectious diseases or
other public health issues, recessions, or other events could have a significant
negative impact on a fund and its investments. Such events may affect certain
geographic regions, countries, sectors and industries more significantly than
others. In February 2022, Russia invaded Ukraine which has caused and could
continue to cause significant market disruptions and volatility within the
markets in Russia, Europe, and the United States. The hostilities and sanctions
resulting from those hostilities could have a significant impact on certain fund
investments as well as fund performance. The outbreak of the respiratory disease
designated as COVID-19 in December 2019 has caused significant volatility and
declines in global financial markets, which have caused losses for investors.
While the development of vaccines has slowed the spread of the virus and allowed
for the resumption of "reasonably" normal business activity in the United
States, many countries continue to impose lockdown measures in an attempt to
slow the spread. Additionally, there is no guarantee that vaccines will be
effective against emerging variants of the disease.
NON-U.S. SECURITIES RISK. To the extent a fund invests in non-U.S. securities,
it is subject to additional risks not associated with securities of domestic
issuers. Non-U.S. securities are subject to higher volatility than securities of
domestic issuers due to: possible adverse political, social or economic
developments; restrictions on foreign investment or exchange of securities;
capital controls; lack of liquidity; currency exchange rates; excessive
taxation; government seizure of assets; the imposition of sanctions by foreign
governments; different legal or accounting standards; and less government
supervision and regulation of exchanges in foreign countries. Investments in
non-U.S. securities may involve higher costs than investments in U.S.
securities, including higher transaction and custody costs, as well as
additional taxes imposed by non-U.S. governments. These risks may be heightened
for securities of companies located, or with significant operations, in emerging
market countries.
OPERATIONAL RISK. Each fund is subject to risks arising from various operational
factors, including, but not limited to, human error, processing and
communication errors, errors of a fund's service providers, counterparties or
other third-parties, failed or inadequate processes and technology or systems
failures. Each fund relies on third-parties for a range of services, including
custody. Any delay or failure relating to engaging or maintaining such service
providers may affect a fund's ability to meet its investment objective. Although
the funds and the funds' investment advisor seek to reduce these operational
risks through controls and procedures, there is no way to completely protect
against such risks.
PASSIVE INVESTMENT RISK. To the extent a fund seeks to track an index, the fund
will invest in the securities included in, or representative of, the index
regardless of their investment merit. A fund generally will not attempt to take
defensive positions in declining markets.
NOT FDIC INSURED NOT BANK GUARANTEED MAY LOSE VALUE
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FIRST TRUST
First Trust Exchange-Traded Fund II
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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