Annual Report
For the Year Ended
October 31, 2023
 
First Trust Exchange-Traded Fund IV
 
First Trust Low Duration Opportunities ETF (LMBS)
Table of Contents 
First Trust Low Duration Opportunities ETF (LMBS)
Annual Report
October 31, 2023 
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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 the series of First Trust Exchange-Traded Fund IV (the “Trust”) described in this report (First Trust Low Duration Opportunities ETF; hereinafter referred to as the “Fund”) to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. When evaluating the information included in this report, you are cautioned not to place undue reliance on these forward-looking statements, which reflect the judgment of the Advisor and its representatives only as of the date hereof. We undertake no obligation to publicly revise or update these forward-looking statements to reflect events and circumstances that arise after the date hereof.
Performance and Risk Disclosure
There is no assurance that the Fund will achieve its investment objective. The Fund is subject to market risk, which is the possibility that the market values of securities owned by the Fund will decline and that the value of the Fund’s shares may therefore be less than what you paid for them. Accordingly, you can lose money investing in the Fund. See “Risk Considerations” in the Additional Information section of this report for a discussion of certain other risks of investing in the Fund.
Performance data quoted represents past performance, which is no guarantee of future results, and current performance may be lower or higher than the figures shown. For the most recent month-end performance figures, please visit www.ftportfolios.com or speak with your financial advisor. Investment returns, net asset value and share price will fluctuate and Fund shares, when sold, may be worth more or less than their original cost.
The Advisor may also periodically provide additional information on Fund performance on the Fund’s webpage at www.ftportfolios.com.
How to Read This Report
This report contains information that may help you evaluate your investment in the Fund. It includes details about the Fund and presents data and analysis that provide insight into the Fund’s performance and investment approach.
By reading the portfolio commentary from the portfolio management team of the Fund, you may obtain an understanding of how the market environment affected the Fund’s performance. The statistical information that follows may help you understand the Fund’s performance compared to that of a relevant market benchmark.
It is important to keep in mind that the opinions expressed by personnel of the Advisor are just that: informed opinions. They should not be considered to be promises or advice. The opinions, like the statistics, cover the period through the date on the cover of this report. The material risks of investing in the Fund are spelled out in the prospectus, the statement of additional information, and other Fund regulatory filings.
Shareholder Letter
First Trust Low Duration Opportunities ETF (LMBS)
Annual Letter from the Chairman and CEO
October 31, 2023
Dear Shareholders,
First Trust is pleased to provide you with the annual report for the First Trust Low Duration Opportunities ETF (the “Fund”), which contains detailed information about the Fund for the twelve months ended October 31, 2023.
The Bureau of Economic Analysis recently announced that U.S. real gross domestic product (“GDP”) grew by a staggering 4.9% in the third quarter of 2023 and is now up 2.9% on a year-over-year basis from where it stood in the third quarter of 2022. The most recent quarter’s GDP data represents the fastest growth rate for any quarter since 2014. Consumer spending, which rose by 4.0% over the period, was responsible for 2.7 percentage points of the total increase in GDP. Whether the consumer can keep up this pace of spending remains to be seen, especially given recent news that excess savings from the pandemic-era stimulus have likely been depleted. From a global perspective, the International Monetary Fund (“IMF”) notes that progress in fighting inflation has led to lower economic growth. In their October 2023 publication of the World Economic Outlook, the IMF projected that the growth in world economic output is expected to slow from 3.5% in 2022 to 2.9% in 2024. The economic growth in advanced economies is projected to plummet from 2.6% in 2022 to 1.4% in 2024.
In the notes to their September 2023 meeting, the Federal Open Market Committee revealed that they may need to keep interest rates “higher for longer” as they continue to battle stubbornly high inflation. As many investors are likely aware, a higher Federal Funds target rate can have deep implications for consumers, such as driving up the cost of borrowing for homes, automobiles, and other large purchases. The American consumer has yet to feel the full weight of those burdens, in my opinion. That said, the data reveals a different story among corporate America. S&P Global Market Intelligence reported that a total of 516 U.S. corporations filed for bankruptcy protection on a year-to-date basis through September 30, 2023, up from a total of 263 corporate bankruptcy filings over the same period last year. Higher interest rates and Treasury bond yields have also sapped demand for commercial property loans. Data from Trepp, LLC, a leading provider of data and analytics to the commercial real estate and banking markets, revealed that just $28.2 billion of loans converted into commercial mortgage-backed securities have been issued in 2023, the lowest figure since 2011.
The financial markets battled a myriad of headwinds over the past year, from geopolitical uncertainty resulting from war (the conflicts between Israel and Hamas and Russia and Ukraine), to slowing global economic growth and sticky inflation. Brian Wesbury, Chief Economist at First Trust, notes that a U.S. economic recession is likely to begin at some point early next year. While calls for a recession may concern some investors, the following may offer solace. Data from Bloomberg reveals that the S&P 500® Index has posted positive total returns over the 3-year period following every recession since 1948.
Thank you for giving First Trust the opportunity to play a role in your financial future. We value our relationship with you and will report on the Fund again in six months.
Sincerely,
 
James A. Bowen
Chairman of the Board of Trustees
Chief Executive Officer of First Trust Advisors L.P.
Page 1
Fund Performance Overview (Unaudited)
First Trust Low Duration Opportunities ETF (LMBS)
The primary investment objective of the First Trust Low Duration Opportunities ETF (the “Fund”) is to generate current income. The Fund’s secondary investment objective is to provide capital appreciation. The Fund is an actively managed exchange-traded fund. First Trust Advisors L.P. (“First Trust” or the “Advisor”) serves as the advisor. James Snyder, Jeremiah Charles and Owen Aronson are the Fund’s portfolio managers and are jointly and primarily responsible for the day-to-day management of the Fund’s investment portfolio.
Under normal market conditions, the Fund will seek to achieve its investment objectives by investing at least 60% of its net assets (including investment borrowings) in mortgage-related debt securities and other mortgage-related instruments (collectively, “Mortgage-Related Investments”). The Fund normally expects to invest in Mortgage-Related Investments tied to residential and commercial mortgages. Mortgage-Related Investments consist of: (1) residential mortgage-backed securities (RMBS); (2) commercial mortgage-backed securities (CMBS); (3) stripped mortgage-backed securities (SMBS), which are mortgage-backed securities where mortgage payments are divided up between paying the loan’s principal and paying the loan’s interest; and (4) collateralized mortgage obligations (CMOs) and real estate mortgage investment conduits (REMICs) where they are divided into multiple classes with each class being entitled to a different share of the principal and/or interest payments received from the pool of underlying assets. The Fund will limit its investment in Mortgage-Related Investments that are neither issued nor guaranteed by the U.S. government, its agencies or instrumentalities to 20% of its net assets (including investment borrowings). The Fund may invest up to 40% of its net assets (including investment borrowings), in the aggregate, in (i) cash, cash equivalents and short-term investments and (ii) non-mortgage direct obligations of the U.S. government and other non-mortgage securities issued and/or guaranteed by the U.S. government or its agencies or instrumentalities, or U.S. government-sponsored entities (collectively, “Government Entities”). The Fund may also invest up to 5% of its net assets (including investment borrowings) in asset-backed securities (“ABS”) (other than Mortgage-Related Investments) that are not issued and/or guaranteed by Government Entities. However, the Fund’s investments in (a) Mortgage-Related Investments that are not issued and/or guaranteed by Government Entities and (b) ABS may not, in the aggregate, exceed 20% of the Fund’s net assets (including investment borrowings). Although the Fund intends to invest primarily in investment grade securities, the Fund may invest up to 20% of its net assets (including investment borrowings) in securities of any credit quality, including securities that are below investment grade, which are also known as high yield securities, or commonly referred to as “junk” bonds, or unrated securities that have not been judged by the advisor to be of comparable quality to rated investment grade securities.
 
Performance
 
 
Average Annual Total
Returns
Cumulative Total Returns
 
1 Year
Ended
10/31/23
5 Years
Ended
10/31/23
Inception
(11/4/14)
to 10/31/23
5 Years
Ended
10/31/23
Inception
(11/4/14)
to 10/31/23
Fund Performance
NAV
3.29%
0.88%
1.93%
4.48%
18.78%
Market Price
3.50%
0.85%
1.93%
4.32%
18.74%
Index Performance
ICE BofA 1-5 Year US Treasury & Agency Index
2.45%
0.93%
0.82%
4.72%
7.57%
Total returns for the period since inception are calculated from the inception date of the Fund. “Average Annual Total Returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative Total Returns” represent the total change in value of an investment over the periods indicated.
The Fund’s per share net asset value (“NAV”) is the value of one share of the Fund and is computed by dividing the value of all assets of the Fund (including accrued interest and dividends), less all liabilities (including accrued expenses and dividends declared but unpaid), by the total number of outstanding shares. The price used to calculate market return (“Market Price”) is determined by using the midpoint of the national best bid and offer price (“NBBO”) as of the time that the Fund’s NAV is calculated. Under Securities and Exchange Commission rules, the NBBO consists of the highest displayed buy and lowest sell prices among the various exchanges trading the Fund at the time the Fund’s NAV is calculated. Prior to January 1, 2019, the price used was the midpoint between the highest bid and the lowest offer on the stock exchange on which shares of the Fund were listed for trading as of the time that the Fund’s NAV was calculated. Since shares of the Fund did not trade in the secondary market until after its inception, for the period from inception to the first day of secondary market trading in shares of the Fund, the NAV of the Fund is used as a proxy for the secondary market trading price to calculate market returns. NAV and market returns assume that all distributions have been reinvested in the Fund at NAV and Market Price, respectively.
Page 2
Fund Performance Overview (Unaudited) (Continued)
First Trust Low Duration Opportunities ETF (LMBS) (Continued) 
An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. 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 index. The returns presented do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. The Fund’s past performance is no guarantee of future performance.
 
Fund Allocation
% of
Net Assets
U.S. Government Agency Mortgage-Backed
Securities
82.4%
Mortgage-Backed Securities
12.4
U.S. Government Bonds and Notes
5.0
Asset-Backed Securities
3.5
Exchange-Traded Funds
0.0(1)
U.S. Treasury Bills
10.6
Money Market Funds
1.7
Purchased Options
0.0(1)
U.S. Government Agency Mortgage-Backed
Securities Sold Short
(6.5)
Written Options
(0.7)
Net Other Assets and Liabilities(2)
(8.4)
Total
100.0%
 
Credit Quality(3)
% of Total Long
Fixed-Income
Investments, Cash
& Cash Equivalents(4)
Government & Agency
84.5%
AAA
2.5
AA+
0.2
AA
0.4
AA-
0.5
A+
0.0(1)
BBB
0.1
BB+
0.3
B-
0.0(1)
NR
9.8
Cash & Cash Equivalents
1.7
Total
100.0%
 
Top Ten Holdings
% of
Fixed-Income
Investments(4)
Federal National Mortgage Association, Pool
TBA, 6.00%, 12/15/53
7.4%
Federal National Mortgage Association, Pool
TBA, 5.00%, 12/15/53
2.7
Federal National Mortgage Association, Pool
TBA, 5.50%, 12/15/53
2.4
U.S. Treasury Note, 4.63%, 10/15/26
2.1
Federal National Mortgage Association, Pool
FM3003, 4.00%, 05/01/49
1.8
U.S. Treasury Bill, 0.00%, 09/05/24
1.7
Federal National Mortgage Association, Pool
FM2972, 4.00%, 12/01/44
1.6
U.S. Treasury Bill, 0.00%, 05/16/24
1.6
U.S. Treasury Note, 2.50%, 05/31/24
1.4
U.S. Treasury Bill, 0.00%, 03/21/24
1.1
Total
23.8%
 
Weighted Average Effective Net Duration
October 31, 2023
2.64 Years
High - June 30, 2023
2.82 Years
Low - November 30, 2022
1.81 Years
 
(1)
Amount is less than 0.1%.
(2)
Includes variation margin on futures contracts. 
(3)
The ratings are by S&P Global Ratings. A credit rating is an assessment provided by a nationally recognized statistical rating organization
(NRSRO) of the creditworthiness of an issuer with respect to debt obligations. Ratings are measured highest to lowest on a scale that generally
ranges from AAA to D for long-term ratings and A-1+ to C for short-term ratings. Investment grade is defined as those issuers that have a long-
term credit rating of BBB- or higher or a short-term credit rating of A-3 or higher. The credit ratings shown relate to the credit worthiness of the
issuers of the underlying securities in the Fund, and not to the Fund or its shares. U.S. Treasury and U.S. Agency mortgage-backed securities
appear under “Government & Agency.” Credit ratings are subject to change.
(4)
Percentages are based on the long positions only. Money market funds and short positions are excluded.
Page 3
Fund Performance Overview (Unaudited) (Continued)
First Trust Low Duration Opportunities ETF (LMBS) (Continued) 
 
 
Performance figures assume reinvestment of
all distributions and do not reflect the
deduction of taxes that a shareholder would
pay on Fund distributions or the redemption
or sale of Fund shares. An index is a statistical
composite that tracks a specified financial
market or sector. Unlike the Fund, the index
does not actually hold a portfolio of securities
and therefore does not incur the expenses
incurred by the Fund. These expenses
negatively impact the performance of the
Fund. The Fund’s past performance does not
predict future performance.
Performance in securitized product investment
strategies can be impacted from the benefits of
purchasing odd lot positions. The impact of
these investments can be particularly
meaningful when funds have limited assets
under management and may not be a
sustainable source of performance as a fund
grows in size.
Frequency Distribution of Discounts and Premiums
Information showing the number of days the market price of the Fund’s shares was greater (at a premium) and less (at a discount) than the Fund’s net asset value for the most recently completed year, and the most recently completed calendar quarters since that year (or life of the Fund, if shorter) is available at  https://www.ftportfolios.com/Retail/etf/home.aspx.
Page 4
Portfolio Commentary
First Trust Low Duration Opportunities ETF (LMBS)
Annual Report
October 31, 2023 (Unaudited)
Advisor
First Trust Advisors L.P. (“First Trust” or the “Advisor”) is the investment advisor to the First Trust Low Duration Opportunities ETF (the “Fund” or “LMBS”). First Trust is responsible for the selection and ongoing monitoring of the investments in the Fund’s portfolio and certain other services necessary for the management of the portfolio.
Portfolio Management Team
The following persons serve as portfolio managers of the Fund:
James Snyder – Senior Vice President and Senior Portfolio Manager
Jeremiah Charles – Senior Vice President and Senior Portfolio Manager
Owen Aronson – Senior Investment Analyst and Portfolio Manager
The portfolio managers are primarily and jointly responsible for the day-to-day management of the Fund. Messrs. Snyder and Charles have served as part of the portfolio management team of the Fund since 2014 and Mr. Aronson since June 2023.
Commentary
Market Recap
The 12-month period ended October 31, 2023 began with markets under considerable strain as the Federal Reserve (the “Fed”) continued with its aggressive interest rate hiking campaign to combat soaring inflation. With volatility high and liquidity challenged as bond market participants suffered through outflows, bond market spreads remained under pressure. The market began to once again price in just how quickly inflation would cool, and how quickly the Fed would be “forced” to cut rates, just as the market incorrectly had done several times over the preceding year. Contrary to the market belief however, the labor market showed significant strength, and the Fed stood resolute pushing yields on the front end north of 5% in early March 2023, putting significant pressure on an already inverted curve, until it all unraveled mere days later as the first of the large banks, Silicon Valley Bank (“SVB”), began to fail. Front end Treasury yields plunged, which saw the 2-Year Treasury yield fall from 5.07% to sub 4%, while spreads gapped wider, with Option-Adjusted Spreads (“OAS”) on Agency mortgage-backed securities (“MBS”) widening approximately 20 basis points (“bps”), almost immediately. Ultimately the Federal Deposit Insurance Corporation took control of two banks, SVB, and Signature Bank, and eventually liquidated nearly $100 billion worth of high-quality bond assets. As markets found their footing following these relatively contained bank failures, the labor market remained stubbornly robust. Despite many forecasts the housing market, and even the broader economy, have shown significant resilience in spite of the proverbial Fed punchbowl being removed. As such, front end Treasury yields began to climb back toward 5% once again and it would not take long for the longer maturity segment of the yield curve to follow suit. We believe the market was simply wrong on its call for the timing of a recession. As this resilient, and sometimes robust, economic data came in, the market was forced to push back its call on the timing of interest rate cuts. After all, the Fed had not even stopped hiking. This change has reshaped the term “premium” across the curve. Couple that with a newly acquired market appreciation for just how poorly managed we believe the fiscal house of the United States continues to be post-pandemic, and the next, and perhaps even the final, stage of the ongoing bear market in rates made its appearance known. Volatility remained high. Spreads remained wide relative to historical data. The 2-Year Treasury yield breached 5%. The 30-Year Treasury yield breached 5%. Agency MBS spreads breached the 80 bps OAS level, with nominal spreads setting multi-decade wides near 180 bps. While the market is off these highs in rates, and wides in MBS spreads, it seems like a new world in fixed income relative to the post-Great Financial Crisis of 2008 era, which was defined by heavy handed government intervention and artificially suppressed volatility. Yes, we believe it is safe to say that the aggressive campaign the Fed was forced to undertake when it was too late to respond to the impending inflation debacle helped cause the banking issues and subsequent fallout. Less talked about however, is the importance of understanding the duration gap, and convexity embedded in a bond portfolio. These issues have been front and center in bond portfolios for the last 24 months as rates have risen so significantly in such a short amount of time. We believe that the ability to understand and manage these risks, properly and with skill, has never been more important.
Performance Analysis
For the 12-month period ended October 31, 2023, the Fund returned 3.29% on a net asset value (“NAV”) basis, net of fees.
For the same period, the ICE BofA 1-5 Year U.S. Treasury & Agency Index (the “Index”) returned 2.45%. On a NAV basis, the Fund outperformed the Index by 84 bps, net of fees.
Page 5
Portfolio Commentary (Continued)
First Trust Low Duration Opportunities ETF (LMBS)
Annual Report
October 31, 2023 (Unaudited)
The duration profile of the Fund is always very actively managed relative to economic conditions and the relative term structure of interest rates. As such, managing through a fiscal year of heightened levels of interest rate volatility, a continued hawkish Fed, and market impacts associated with banking failures, this risk managed approach to rates proved to be beneficial to the Fund. Additionally, nearing the tail end of the fiscal year, a strategic decision was made to extend its duration in excess of the Index, as bond market yields priced at levels not experienced in well over a decade. Generally speaking, the Fund is structurally positioned with meaningful positions in Agency MBS, while running against an Index comprised of predominantly U.S. Treasuries. Given this, to the extent that MBS spreads widen on the year, the Fund may underperform, and conversely, if MBS spreads were to tighten, the Fund may outperform. Over the fiscal period, OAS on Agency MBS blew out, widening from about 50 bps at the start of the year to close near 90 bps. While this would normally be quite detrimental, the Fund’s active risk management of spread beta using MBS “To-Be-Announced” securities shorts, volatility and rate management using options on Treasury futures, and opportunistic security selection and sub-sector rotations, the Fund was able to weather the storm and drive significant alpha. As a reminder, to help manage the overall duration profile, the Fund does utilize derivatives, predominantly in Treasury futures and options. The Fund uses these in both long and short positions, to manage both its overall interest rate exposure and its key rate or duration exposure by maturity point along the yield curve. The Fund is typically short Treasury futures to offset the duration from the long MBS holdings. Since the Fund uses futures in such a way, and interest rates were higher over the year, the use of futures proved beneficial to the relative performance of the Fund.
Market and Fund Outlook
In the Fed tightening cycle of 2004-2006 and subsequent pause, the funding rate peaked in early October 2007. It had been 2+ years of consistent Fed funds rate tightening but at a much slower rate than the recent cycle. Unlike that period, most homeowners of today locked into long dated mortgages and the loan underwriting of housing has been vastly superior to that deployed nearly two decades ago. The tsunami that hit the mortgage market and banks that were leveraged to it in the 2007-2009 period does not exist, in our estimation, in this cycle, and, as such, the economy remains very resilient to the Fed’s interest rate increases. Further, corporations are also not exposed in the very near term to significant funding cost increases, we believe. The implications are that the Fed’s expectation of the economy’s reaction function to its rate increases has been significantly overestimated leading it to the necessity of raising rates further than most market participants or the Fed itself would have expected necessary. So, in this world, with less sensitivity to interest rate rises and healthy U.S. hiring, where is the forward economic contraction going to come from? In short, how does this cycle end? We think the answer lies in both the government and U.S. corporations and interestingly, we believe it is likely to have similar timing as the cycle two decades ago. We believe there will be three sources of future U.S. contraction that are baked in, and all of them highly foreseeable. First, corporations will likely start to see their funding costs go up as new projects become more expensive, but also starting in 2025, we believe we will see meaningful amounts of corporate debt that need to be refinanced and now at much higher costs. Second, there will likely be cost pressures on U.S. corporations at full U.S. employment as workers’ look to recoup real wage losses experienced over the last several years as wages did not keep pace with inflation amidst government spending and Fed quantitative easing. We anticipate this financial pressure will negatively impact the economy but will be and has been more delayed in timing this cycle than prior ones. Lastly, and likely the most important fact is the U.S. government’s debt as a percentage of gross domestic product is much higher than any other period in modern US history short of the height of the pandemic when the country was shut down. Further, funding costs were near zero in the pandemic but now are approximately 400 to 500 plus basis points higher across the government’s borrowing maturities. In short, current U.S. government interest costs are much higher than the last 25 years and are comparable to those in the 1980s through late 1990s when U.S. inflation was much higher. In earlier periods however, entitlement programs were in much better shape such that very large tax increases, spending cuts or both were less necessary than today. We believe the contraction is coming; the timing is not as clear, but it is inevitable, in our opinion. The continued rise in U.S. Treasury longer maturity interest rates (10 years and longer) indicates there is little place for anyone borrowing to hide, least of all the U.S. government. We believe a recession is likely in our future, and one only needs to wait for the foreseeable events to play out.
We remain strategic, and we remain committed to finding value across the various sectors of the mortgage and securitized market. Given the massive increase in rates over the last 24 months, we have elected to manage the Fund near the Index’s duration as interest rate duration risks feel more balanced and perhaps at 5%, more skewed to go lower. We are buyers all along the term spectrum of the U.S. yield curve, and specifically will look to extend duration if the long maturity sector moves toward and through 5.0 % yield levels. To us, these real yield levels compensate us adequately for the inflation risk and equally importantly the expected slow-down in the U.S. economy. As mentioned above, we expect any further interest rate rises from here to hinder growth and more likely over a strategic period to push interest rates lower. We remain committed to actively managing the convexity component in the portfolio and will look to continue to manage the Fund to a stable duration target; meaning we do not wish to extend in duration as rates rise, and
Page 6
Portfolio Commentary (Continued)
First Trust Low Duration Opportunities ETF (LMBS)
Annual Report
October 31, 2023 (Unaudited)
conversely, and at this point in the cycle, most importantly, we do not want to shorten or lose duration into a rally. From an asset allocation perspective, we plan to continue to opportunistically position select Non-Agency commercial mortgage-backed securities (“CMBS”), residential mortgage-backed securities and Agency MBS opportunities that the managers find to be attractively priced in the short to intermediate part of the curve, while capturing intermediate and longer maturity opportunities in Agency MBS and Agency CMBS.
Page 7
First Trust Low Duration Opportunities ETF (LMBS)
Understanding Your Fund Expenses
October 31, 2023 (Unaudited)
As a shareholder of First Trust Low Duration Opportunities ETF (the “Fund”), you incur two types of costs: (1) transaction costs; and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, if any, and other Fund expenses. This Example is intended to help you understand your ongoing costs of investing in the Fund and to compare these costs with the ongoing costs of investing in other funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held through the six-month period ended October 31, 2023.
Actual Expenses
The first line in the following table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During the Six-Month Period” to estimate the expenses you paid on your account during this six-month period.
Hypothetical Example for Comparison Purposes
The second line in the following table provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs such as brokerage commissions. Therefore, the second line in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
 
 
Beginning
Account Value
May 1, 2023
Ending
Account Value
October 31, 2023
Annualized
Expense Ratio
Based on the
Six-Month
Period (a)
Expenses Paid
During the
Six-Month
Period (a) (b)
First Trust Low Duration Opportunities ETF (LMBS)
Actual
$1,000.00
$992.20
0.64%
$3.21
Hypothetical (5% return before expenses)
$1,000.00
$1,021.98
0.64%
$3.26
 
(a)
Annualized expense ratio and expenses paid during the six-month period do not include fees and expenses of the underlying funds in which the
Fund invests.
(b)
Expenses are equal to the annualized expense ratio as indicated in the table multiplied by the average account value over the period (May 1, 2023
through October 31, 2023), multiplied by 184/365 (to reflect the six-month period).
Page 8
First Trust Low Duration Opportunities ETF (LMBS)
Portfolio of Investments
October 31, 2023 
 
Principal
Value
Description
Stated
Coupon
Stated
Maturity
Value
U.S. GOVERNMENT AGENCY MORTGAGE-BACKED SECURITIES — 82.4%
Collateralized Mortgage Obligations — 31.6%
Federal Home Loan Mortgage Corporation
 
 
$453
Series 1993-1630, Class PK
6.00%
11/15/23
$452
5,566
Series 1994-1710, Class G, 30 Day Average SOFR + CSA +
1.50% (a)
6.93%
04/15/24
5,575
703
Series 1998-2089, Class PJ, IO
7.00%
10/15/28
52
2,801
Series 1998-2102, Class Z
6.00%
12/15/28
2,779
755
Series 2002-2405, Class BF
7.00%
03/25/24
751
150,747
Series 2002-2410, Class OG
6.38%
02/15/32
150,254
94,885
Series 2002-2437, Class SA, IO, (30 Day Average SOFR + CSA)
×-1+ 7.90% (b)
2.47%
01/15/29
3,738
138,226
Series 2003-2557, Class HL
5.30%
01/15/33
134,696
85,828
Series 2003-2564, Class AC
5.50%
02/15/33
84,191
212,395
Series 2003-2574, Class PE
5.50%
02/15/33
208,276
87,944
Series 2003-2577, Class LI, IO
5.50%
02/15/33
10,731
714,000
Series 2003-2581, Class LL
5.25%
03/15/33
693,566
16,446
Series 2003-2597, Class AE
5.50%
04/15/33
16,183
1,025,000
Series 2003-2613, Class LL
5.00%
05/15/33
988,224
275,813
Series 2003-2626, Class ZW
5.00%
06/15/33
257,159
601,273
Series 2003-2626, Class ZX
5.00%
06/15/33
511,691
245,855
Series 2004-2793, Class PE
5.00%
05/15/34
237,846
681,695
Series 2004-2891, Class ZA
6.50%
11/15/34
691,390
236,517
Series 2004-2907, Class DZ
4.00%
12/15/34
219,382
785,000
Series 2005-2973, Class GE
5.50%
05/15/35
752,468
92,154
Series 2005-3031, Class BI, IO, (30 Day Average SOFR + CSA)
×-1+ 6.69% (b)
1.26%
08/15/35
6,159
1,888,489
Series 2005-3054, Class ZW
6.00%
10/15/35
1,863,625
24,056
Series 2005-3074, Class ZH
5.50%
11/15/35
22,505
151,201
Series 2006-243, Class 11, IO, STRIPS (c)
7.00%
08/15/36
21,987
74,288
Series 2006-3117, Class ZU
6.00%
02/15/36
73,189
3,042,934
Series 2006-3196, Class ZK
6.50%
04/15/32
3,081,895
27,182
Series 2007-3274, Class B
6.00%
02/15/37
26,683
166,318
Series 2007-3322, Class NF, 30 Day Average SOFR ×2,566.67+
CSA - 16,683.33%, 0.00% Floor (a)
0.00%
05/15/37
143,606
32,244
Series 2007-3340, Class PF, 30 Day Average SOFR + CSA +
0.30% (a)
5.73%
07/15/37
31,240
64,737
Series 2007-3360, Class CB
5.50%
08/15/37
62,312
56,976
Series 2007-3380, Class FS, 30 Day Average SOFR + CSA +
0.35% (a)
5.78%
11/15/36
54,885
145,187
Series 2008-3406, Class B
6.00%
01/15/38
142,662
79,713
Series 2008-3413, Class B
5.50%
04/15/37
76,608
165,682
Series 2008-3420, Class AZ
5.50%
02/15/38
157,894
139,484
Series 2008-3448, Class SA, IO, (30 Day Average SOFR + CSA)
×-1+ 6.05% (b)
0.62%
05/15/38
368
1,331,875
Series 2009-3542, Class ZP
5.00%
06/15/39
1,274,641
177,000
Series 2009-3550, Class LL
4.50%
07/15/39
163,741
811,047
Series 2009-3563, Class ZP
5.00%
08/15/39
760,919
1,008,075
Series 2009-3572, Class JS, IO, (30 Day Average SOFR + CSA)
×-1+ 6.80% (b)
1.37%
09/15/39
47,273
36,190
Series 2009-3585, Class QZ
5.00%
08/15/39
28,139
94,762
Series 2009-3587, Class FX, 30 Day Average SOFR + CSA +
0.00% (a)
5.43%
12/15/37
84,592
See Notes to Financial Statements
Page 9
First Trust Low Duration Opportunities ETF (LMBS)
Portfolio of Investments (Continued)
October 31, 2023 
Principal
Value
Description
Stated
Coupon
Stated
Maturity
Value
U.S. GOVERNMENT AGENCY MORTGAGE-BACKED SECURITIES (Continued)
Collateralized Mortgage Obligations (Continued)
Federal Home Loan Mortgage Corporation (Continued)
 
 
$370,221
Series 2009-3593, Class F, 30 Day Average SOFR + CSA +
0.50% (a)
5.43%
03/15/36
$359,744
1,036,566
Series 2009-3605, Class NC
5.50%
06/15/37
1,014,100
475,022
Series 2010-3622, Class PB
5.00%
01/15/40
458,532
107,000
Series 2010-3645, Class WD
4.50%
02/15/40
98,908
483,257
Series 2010-3667, Class PL
5.00%
05/15/40
452,932
45,922
Series 2010-3699, Class FD, 30 Day Average SOFR + CSA +
0.60% (a)
6.03%
07/15/40
45,211
216,416
Series 2010-3704, Class ED
4.00%
12/15/36
213,293
550,000
Series 2010-3714, Class PB
4.75%
08/15/40
509,088
181,198
Series 2010-3735, Class IK, IO
3.50%
10/15/25
3,834
53,760
Series 2010-3735, Class JI, IO
4.50%
10/15/30
4,792
185,360
Series 2010-3740, Class SC, IO, (30 Day Average SOFR + CSA)
×-1+ 6.00% (b)
0.57%
10/15/40
12,375
160,169
Series 2010-3770, Class GZ
4.50%
10/15/40
124,001
600,000
Series 2011-3796, Class PB
5.00%
01/15/41
585,167
300,000
Series 2011-3820, Class NC
4.50%
03/15/41
276,779
1,387,000
Series 2011-3895, Class PW
4.50%
07/15/41
1,292,287
1,964,685
Series 2011-3925, Class ZD
4.50%
09/15/41
1,721,940
7,693,899
Series 2011-3954, Class GS, IO, (30 Day Average SOFR + CSA)
×-1+ 6.00% (b)
0.57%
11/15/41
546,994
298,444
Series 2012-267, Class S5, IO, STRIPS, (30 Day Average SOFR
+ CSA) ×-1+ 6.00% (b)
0.57%
08/15/42
16,331
6,085,173
Series 2012-276, Class S5, IO, STRIPS, (30 Day Average SOFR
+ CSA) ×-1+ 6.00% (b)
0.57%
09/15/42
449,893
336,525
Series 2012-3999, Class WA (c)
5.55%
08/15/40
325,396
1,878,000
Series 2012-4000, Class PY
4.50%
02/15/42
1,603,418
23,090
Series 2012-4012, Class GC
3.50%
06/15/40
22,296
20,433
Series 2012-4015, Class KB
1.75%
05/15/41
17,902
176,460
Series 2012-4021, Class IP, IO
3.00%
03/15/27
5,656
1,203,719
Series 2012-4026, Class GZ
4.50%
04/15/42
983,919
272,282
Series 2012-4030, Class IL, IO
3.50%
04/15/27
8,310
528,982
Series 2012-4054, Class AI, IO
3.00%
04/15/27
14,258
702,481
Series 2012-4090, Class YZ
4.50%
08/15/42
519,365
23,334
Series 2012-4097, Class ES, IO, (30 Day Average SOFR + CSA)
×-1+ 6.10% (b)
0.67%
08/15/42
1,761
2,261,518
Series 2012-4097, Class SA, IO, (30 Day Average SOFR + CSA)
×-1+ 6.05% (b)
0.62%
08/15/42
175,677
2,447,000
Series 2012-4098, Class PE
4.00%
08/15/42
1,888,549
173,947
Series 2012-4103, Class HI, IO
3.00%
09/15/27
6,490
27,340
Series 2012-4116, Class AS, IO, (30 Day Average SOFR + CSA)
×-1+ 6.15% (b)
0.72%
10/15/42
2,235
643,981
Series 2012-4121, Class HI, IO
3.50%
10/15/27
24,529
1,071,721
Series 2012-4132, Class AI, IO
4.00%
10/15/42
179,186
258,946
Series 2012-4136, Class TU, IO, (30 Day Average SOFR + CSA)
×-22.50+ 139.5%, 4.50% Cap (b)
4.50%
08/15/42
41,041
230,156
Series 2012-4145, Class YI, IO
3.00%
12/15/27
8,538
194,957
Series 2013-299, Class S1, IO, STRIPS, (30 Day Average SOFR
+ CSA) ×-1+ 6.00% (b)
0.57%
01/15/43
14,517
188,463
Series 2013-303, Class C2, IO, STRIPS
3.50%
01/15/28
7,775
See Notes to Financial Statements
Page 10
First Trust Low Duration Opportunities ETF (LMBS)
Portfolio of Investments (Continued)
October 31, 2023 
Principal
Value
Description
Stated
Coupon
Stated
Maturity
Value
U.S. GOVERNMENT AGENCY MORTGAGE-BACKED SECURITIES (Continued)
Collateralized Mortgage Obligations (Continued)
Federal Home Loan Mortgage Corporation (Continued)
 
 
$118,513
Series 2013-304, Class C37, IO, STRIPS
3.50%
12/15/27
$4,309
487,628
Series 2013-304, Class C40, IO, STRIPS
3.50%
09/15/26
14,433
542,209
Series 2013-4151, Class DI, IO
3.50%
11/15/31
13,776
1,773,404
Series 2013-4154, Class IB, IO
3.50%
01/15/28
71,190
7,068,044
Series 2013-4170, Class CO, PO
(d)
11/15/32
5,769,035
905,000
Series 2013-4176, Class HE
4.00%
03/15/43
731,041
732,650
Series 2013-4177, Class GL
3.00%
03/15/33
642,985
2,278,064
Series 2013-4193, Class AI, IO
3.00%
04/15/28
100,197
826,035
Series 2013-4193, Class PB
4.00%
04/15/43
662,769
14,391,500
Series 2013-4199, Class BZ
3.50%
05/15/43
12,099,616
500,000
Series 2013-4211, Class PB
3.00%
05/15/43
384,217
14,324,079
Series 2013-4218, Class ZK
2.50%
02/15/43
9,853,015
5,388,000
Series 2013-4224, Class ME
4.00%
07/15/43
4,439,981
11,838
Series 2013-4226, Class NS, (30 Day Average SOFR + CSA) ×
-3+ 10.50%, 0.00% Floor (b)
0.00%
01/15/43
4,998
1,450,000
Series 2013-4247, Class AY
4.50%
09/15/43
1,262,796
85,700
Series 2013-4265, Class IB, IO
4.50%
12/15/24
1,057
4,115,193
Series 2014-4316, Class XZ
4.50%
03/15/44
3,755,213
8,213,768
Series 2014-4329, Class VZ
4.00%
04/15/44
7,373,221
1,934,431
Series 2014-4387, Class IE, IO
2.50%
11/15/28
65,263
13,303,171
Series 2015-4499, Class CZ
3.50%
08/15/45
10,179,035
418,953
Series 2015-4512, Class W (c) (e)
5.40%
05/15/38
402,253
68,651
Series 2015-4520, Class AI, IO
3.50%
10/15/35
6,989
66,726
Series 2015-4522, Class JZ
2.00%
01/15/45
65,655
290,817
Series 2016-4546, Class PZ
4.00%
12/15/45
181,529
492,281
Series 2016-4546, Class ZT
4.00%
01/15/46
303,664
4,998,610
Series 2016-4559, Class LI, IO
2.50%
03/15/31
292,092
151,109
Series 2016-4568, Class MZ
4.00%
04/15/46
87,900
9,762,692
Series 2016-4570, Class ST, IO, (30 Day Average SOFR + CSA)
×-1+ 6.00% (b)
0.57%
04/15/46
755,340
3,576,293
Series 2016-4572, Class LI, IO
4.00%
08/15/45
565,065
7,406,140
Series 2016-4587, Class ZH
4.00%
03/15/44
6,293,182
1,040,648
Series 2016-4591, Class GI, IO
4.00%
12/15/44
152,663
771,702
Series 2016-4600, Class WT
3.50%
07/15/36
634,357
136,619
Series 2016-4605, Class KS, (30 Day Average SOFR + CSA) ×
-1.57+ 4.71%, 0.00% Floor (b)
0.00%
08/15/43
71,416
169,065
Series 2016-4609, Class YI, IO
4.00%
04/15/54
7,590
600,000
Series 2017-4681, Class JY
2.50%
05/15/47
436,338
2,631,349
Series 2018-4774, Class SL, IO, (30 Day Average SOFR + CSA)
×-1+ 6.20% (b)
0.77%
04/15/48
228,126
4,099,276
Series 2018-4826, Class ME
3.50%
09/15/48
3,515,305
2,518,723
Series 2018-4833, Class PY
4.00%
10/15/48
2,208,660
3,396,582
Series 2019-4872, Class BZ
4.00%
04/15/49
2,559,704
6,075,248
Series 2019-4910, Class SA, IO, (30 Day Average SOFR + CSA)
×-1+ 6.05% (b)
0.62%
06/15/49
700,256
9,997,923
Series 2019-4919, Class FP, 30 Day Average SOFR + CSA +
0.45% (a)
5.89%
09/25/49
9,481,149
10,214,505
Series 2019-4928, Class F, 30 Day Average SOFR + CSA +
0.50% (a)
5.94%
11/25/49
9,715,297
See Notes to Financial Statements
Page 11
First Trust Low Duration Opportunities ETF (LMBS)
Portfolio of Investments (Continued)
October 31, 2023 
Principal
Value
Description
Stated
Coupon
Stated
Maturity
Value
U.S. GOVERNMENT AGENCY MORTGAGE-BACKED SECURITIES (Continued)
Collateralized Mortgage Obligations (Continued)
Federal Home Loan Mortgage Corporation (Continued)
 
 
$7,761,056
Series 2019-4938, Class BS, IO, (30 Day Average SOFR + CSA)
×-1+ 6.00% (b)
0.56%
12/25/49
$640,430
8,570,774
Series 2019-4943, Class NS, IO, (30 Day Average SOFR + CSA)
×-1+ 6.00% (b)
0.56%
01/25/50
1,133,874
2,515,155
Series 2020-4974, Class IA, IO
3.50%
12/25/49
626,450
37,603,895
Series 2020-4991, Class DA
2.00%
02/25/44
33,461,796
36,130,708
Series 2020-5001, Class A
2.00%
01/25/45
31,393,611
37,979,867
Series 2020-5004, Class F, 30 Day Average SOFR + CSA +
0.35% (a)
5.79%
07/25/50
35,623,273
12,605,005
Series 2020-5034, Class IO, IO (c)
 
10/15/45
640,348
17,823,386
Series 2020-5045, Class AF, 30 Day Average SOFR + 0.25% (a)
5.57%
11/25/50
16,452,388
18,073,446
Series 2020-5045, Class BF, 30 Day Average SOFR + 0.30% (a)
5.62%
11/25/50
16,726,910
8,815,818
Series 2021-5178, Class HL
2.00%
01/25/52
5,025,195
11,997,895
Series 2022-5208, Class HZ
3.50%
03/25/52
8,799,069
14,011,015
Series 2022-5208, Class Z
3.00%
04/25/52
9,376,834
9,750,000
Series 2022-5210, Class LB
3.00%
08/25/50
6,690,003
12,541,722
Series 2022-5220, Class KZ
4.00%
02/25/51
9,969,078
6,547,491
Series 2022-5221, Class VE
3.50%
07/25/33
5,880,619
33,673,000
Series 2022-5221, Class YC
4.00%
05/25/52
27,529,550
5,133,112
Series 2022-5222, Class BZ
3.50%
05/25/37
4,331,787
7,417,419
Series 2022-5222, Class DP
3.25%
05/25/52
6,662,213
13,544,511
Series 2022-5224, Class DZ
4.00%
04/25/52
10,615,248
10,998,865
Series 2022-5225, Class HZ
4.00%
08/25/51
7,933,067
14,644,651
Series 2022-5225, Class NZ
4.00%
05/25/52
10,680,468
8,576,987
Series 2022-5228, Class DZ
4.50%
06/25/52
6,567,176
8,917,916
Series 2022-5230, Class DL
3.50%
09/25/44
6,800,995
9,012,230
Series 2022-5232, Class GO, PO
(d)
08/25/51
4,752,296
8,839,355
Series 2022-5255, Class KZ
4.00%
09/25/52
6,705,642
7,871,994
Series 2022-5270, Class AL
3.00%
11/25/48
5,097,621
Federal National Mortgage Association Grantor Trust
 
 
1,758,141
Series 2005-T1, Class A1, 1 Mo. LIBOR + 0.40%, 5.41% Cap (a)
5.41%
05/25/35
1,646,618
17,204,056
Series 2022-23, Class EZ
3.00%
03/25/52
9,276,052
Federal National Mortgage Association
 
 
98
Series 1993-230, Class FA, 30 Day Average SOFR + CSA +
0.60% (a)
6.04%
12/25/23
98
3,189
Series 1994-61, Class FG, 30 Day Average SOFR + CSA +
1.50% (a)
6.94%
04/25/24
3,193
11,124
Series 1996-51, Class AY, IO
7.00%
12/18/26
588
389
Series 1998-37, Class VZ
6.00%
06/17/28
388
10,767
Series 2001-34, Class SR, IO, (30 Day Average SOFR + CSA) ×
-1+ 8.10% (b)
2.66%
08/18/31
224
1,405
Series 2001-42, Class SB, (30 Day Average SOFR + CSA) ×-16
+ 128.00%, 8.50% Cap (b)
8.50%
09/25/31
1,373
43,904
Series 2001-46, Class F, 30 Day Average SOFR + CSA +
0.40% (a)
5.84%
09/18/31
43,829
4,840
Series 2002-22, Class G
6.50%
04/25/32
4,879
47,282
Series 2002-30, Class Z
6.00%
05/25/32
47,206
77,048
Series 2002-80, Class CZ
4.50%
09/25/32
68,481
58,787
Series 2002-320, Class 2, IO, STRIPS
7.00%
04/25/32
11,481
52,634
Series 2002-323, Class 6, IO, STRIPS
6.00%
01/25/32
6,985
See Notes to Financial Statements
Page 12
First Trust Low Duration Opportunities ETF (LMBS)
Portfolio of Investments (Continued)
October 31, 2023 
Principal
Value
Description
Stated
Coupon
Stated
Maturity
Value
U.S. GOVERNMENT AGENCY MORTGAGE-BACKED SECURITIES (Continued)
Collateralized Mortgage Obligations (Continued)
Federal National Mortgage Association (Continued)
 
 
$138,116
Series 2002-324, Class 2, IO, STRIPS
6.50%
07/25/32
$19,637
10,459
Series 2003-14, Class AT
4.00%
03/25/33
10,070
28,623
Series 2003-21, Class OA
4.00%
03/25/33
27,453
63,779
Series 2003-32, Class UI, IO
6.00%
05/25/33
10,037
273,483
Series 2003-45, Class JB
5.50%
06/25/33
267,677
10,197
Series 2003-63, Class F1, 30 Day Average SOFR + CSA +
0.30% (a)
5.74%
11/25/27
10,146
355,000
Series 2003-71, Class NH
4.29%
08/25/33
323,786
163,716
Series 2003-343, Class 2, IO, STRIPS
4.50%
10/25/33
20,119
165,860
Series 2003-345, Class 14, IO, STRIPS
6.00%
03/25/34
24,859
34,099
Series 2003-348, Class 17, IO, STRIPS
7.50%
12/25/33
4,567
49,618
Series 2003-348, Class 18, IO, STRIPS (c)
7.50%
12/25/33
7,601
145,902
Series 2004-10, Class ZB
6.00%
02/25/34
143,388
184,765
Series 2004-25, Class LC
5.50%
04/25/34
179,972
201,532
Series 2004-25, Class UC
5.50%
04/25/34
195,880
46,648
Series 2004-28, Class ZH
5.50%
05/25/34
42,541
779,967
Series 2004-60, Class AC
5.50%
04/25/34
764,220
1,203,382
Series 2005-2, Class S, IO, (30 Day Average SOFR + CSA) ×-1
+ 6.60% (b)
1.16%
02/25/35
64,033
242,665
Series 2005-2, Class TB, IO, (30 Day Average SOFR + CSA) ×
-1+ 5.90%, 0.40% Cap (b)
0.40%
07/25/33
1,704
63,187
Series 2005-29, Class ZT
5.00%
04/25/35
56,954
54,402
Series 2005-40, Class SA, IO, (30 Day Average SOFR + CSA) ×
-1+ 6.70% (b)
1.26%
05/25/35
3,122
329,976
Series 2005-52, Class TZ
6.50%
06/25/35
331,956
1,185,794
Series 2005-57, Class KZ
6.00%
07/25/35
1,157,497
30,045
Series 2005-79, Class NS, IO, (30 Day Average SOFR + CSA) ×
-1+ 6.09% (b)
0.65%
09/25/35
1,448
2,992,975
Series 2005-86, Class WZ
5.50%
10/25/35
2,937,355
61,672
Series 2005-95, Class WZ
6.00%
11/25/35
60,933
82,788
Series 2005-359, Class 6, IO, STRIPS
5.00%
11/25/35
12,321
71,276
Series 2005-362, Class 13, IO, STRIPS
6.00%
08/25/35
12,243
34,495
Series 2006-5, Class 2A2, 30 Day Average SOFR + CSA +
0.14% (a)
4.48%
02/25/35
34,064
15,574,157
Series 2006-5, Class N2, IO (e)
0.00%
02/25/35
9,734
36,117
Series 2006-15, Class IS, IO, (30 Day Average SOFR + CSA) ×
-1+ 6.58% (b)
1.14%
03/25/36
2,852
520,313
Series 2006-20, Class PI, IO, (30 Day Average SOFR + CSA) ×
-1+ 6.68% (b)
1.24%
11/25/30
10,246
28,501
Series 2006-31, Class PZ
6.00%
05/25/36
27,620
35,669
Series 2006-85, Class MZ
6.50%
09/25/36
35,470
167,395
Series 2006-117, Class GF, 30 Day Average SOFR + CSA +
0.35% (a)
5.79%
12/25/36
162,280
1,426,187
Series 2006-118, Class A1, 30 Day Average SOFR + CSA +
0.60% (a)
5.49%
12/25/36
1,381,861
313,274
Series 2007-7, Class KA
5.75%
08/25/36
302,599
18,900
Series 2007-25, Class FB, 30 Day Average SOFR + CSA +
0.33% (a)
5.77%
04/25/37
18,040
907,360
Series 2007-57, Class ZG
4.75%
06/25/37
825,446
589,945
Series 2007-60, Class ZS
4.75%
07/25/37
524,384
See Notes to Financial Statements
Page 13
First Trust Low Duration Opportunities ETF (LMBS)
Portfolio of Investments (Continued)
October 31, 2023 
Principal
Value
Description
Stated
Coupon
Stated
Maturity
Value
U.S. GOVERNMENT AGENCY MORTGAGE-BACKED SECURITIES (Continued)
Collateralized Mortgage Obligations (Continued)
Federal National Mortgage Association (Continued)
 
 
$505,051
Series 2007-68, Class AE
6.50%
07/25/37
$501,116
247,631
Series 2007-116, Class PB
5.50%
08/25/35
242,264
57,468
Series 2007-117, Class MD
5.50%
07/25/37
56,209
2,353,712
Series 2007-W10, Class 3A (e)
3.45%
06/25/47
2,320,927
129,325
Series 2008-3, Class FZ, 30 Day Average SOFR + CSA +
0.55% (a)
5.99%
02/25/38
117,206
17,850
Series 2008-8, Class ZA
5.00%
02/25/38
16,496
6,078
Series 2008-17, Class IP, IO
6.50%
02/25/38
375
1,481,315
Series 2009-37, Class NZ
5.71%
02/25/37
1,445,289
4,400,000
Series 2009-50, Class GX
5.00%
07/25/39
4,158,354
2,381,399
Series 2009-85, Class J
4.50%
10/25/39
2,229,909
159,464
Series 2009-91, Class HL
5.00%
11/25/39
151,478
97,000
Series 2009-92, Class DB
5.00%
11/25/39
91,354
876,309
Series 2009-103, Class PZ
6.00%
12/25/39
842,145
146,787
Series 2009-106, Class SN, IO, (30 Day Average SOFR + CSA)
×-1+ 6.25% (b)
0.81%
01/25/40
8,002
291,192
Series 2009-109, Class PZ
4.50%
01/25/40
250,094
46,157
Series 2009-115, Class HZ
5.00%
01/25/40
43,958
10
Series 2009-14, Class BS, IO, (30 Day Average SOFR + CSA) ×
-1+ 6.25% (b) (f)
0.81%
03/25/24
0
17,994
Series 2009-398, Class C13, IO, STRIPS (f)
4.00%
06/25/24
132
209,553
Series 2010-3, Class DZ
4.50%
02/25/40
175,610
121,780
Series 2010-21, Class KO, PO
(d)
03/25/40
99,892
500,000
Series 2010-35, Class EP
5.50%
04/25/40
471,995
276,062
Series 2010-38, Class KC
4.50%
04/25/40
256,841
279,956
Series 2010-45, Class WB
5.00%
05/25/40
267,484
326,212
Series 2010-68, Class BI, IO
5.50%
07/25/50
70,826
29,847
Series 2010-75, Class MT (e)
1.59%
12/25/39
24,736
78,244
Series 2010-115, Class PO, PO
(d)
04/25/40
64,629
193,936
Series 2010-129, Class SM, IO, (30 Day Average SOFR + CSA)
×-1+ 6.00% (b)
0.56%
11/25/40
3,767
2,821,000
Series 2010-142, Class DL
4.00%
12/25/40
2,477,947
146,745
Series 2011-9, Class AZ
5.00%
05/25/40
140,336
1,507,000
Series 2011-10, Class AY
6.00%
02/25/41
1,469,263
88,060
Series 2011-30, Class LS, IO (c)
(d)
04/25/41
4,828
140,520
Series 2011-30, Class ZB
5.00%
04/25/41
131,806
276,665
Series 2011-52, Class GB
5.00%
06/25/41
268,145
524,331
Series 2011-73, Class PI, IO
4.50%
05/25/41
18,536
155,093
Series 2011-74, Class TQ, IO, (30 Day Average SOFR + CSA) ×
-6.43+ 55.93%, 4.50% Cap (b)
4.50%
12/25/33
19,169
1,023,903
Series 2011-101, Class EI, IO
3.50%
10/25/26
23,415
750,000
Series 2011-105, Class MB
4.00%
10/25/41
609,559
1,878,844
Series 2011-111, Class PZ
4.50%
11/25/41
1,702,200
3,223,850
Series 2011-123, Class JS, IO, (30 Day Average SOFR + CSA) ×
-1+ 6.65% (b)
1.21%
03/25/41
125,554
776,952
Series 2012-39, Class PB
4.25%
04/25/42
695,692
365,641
Series 2012-52, Class BZ
4.00%
05/25/42
304,056
76,270
Series 2012-66, Class DI, IO
3.50%
06/25/27
2,844
1,412,304
Series 2012-101, Class AI, IO
3.00%
06/25/27
28,560
See Notes to Financial Statements
Page 14
First Trust Low Duration Opportunities ETF (LMBS)
Portfolio of Investments (Continued)
October 31, 2023 
Principal
Value
Description
Stated
Coupon
Stated
Maturity
Value
U.S. GOVERNMENT AGENCY MORTGAGE-BACKED SECURITIES (Continued)
Collateralized Mortgage Obligations (Continued)
Federal National Mortgage Association (Continued)
 
 
$1,794,774
Series 2012-103, Class HI, IO
3.00%
09/25/27
$58,825
127,000
Series 2012-118, Class IB, IO
3.50%
11/25/42
19,819
6,495,827
Series 2012-122, Class SD, IO, (30 Day Average SOFR + CSA)
×-1+ 6.10% (b)
0.66%
11/25/42
468,526
435,138
Series 2012-133, Class KO, PO
(d)
12/25/42
179,781
469,133
Series 2012-138, Class MA
1.00%
12/25/42
369,514
768,492
Series 2012-146, Class QA
1.00%
01/25/43
611,768
246,425
Series 2012-409, Class 49, IO, STRIPS (c)
3.50%
11/25/41
36,625
281,798
Series 2012-409, Class 53, IO, STRIPS (c)
3.50%
04/25/42
41,632
690,000
Series 2013-10, Class HQ
2.50%
02/25/43
433,082
247,365
Series 2013-13, Class IK, IO
2.50%
03/25/28
9,241
6,463,322
Series 2013-19, Class ZD
3.50%
03/25/43
5,120,888
52,309
Series 2013-23, Class ZB
3.00%
03/25/43
30,549
750,000
Series 2013-41, Class DB
3.00%
05/25/43
524,912
975,595
Series 2013-43, Class IX, IO
4.00%
05/25/43
192,170
316,425
Series 2013-52, Class MD
1.25%
06/25/43
245,234
468,360
Series 2013-55, Class AI, IO
3.00%
06/25/33
45,369
136,289
Series 2013-70, Class JZ
3.00%
07/25/43
109,775
72,832
Series 2013-75, Class FC, 30 Day Average SOFR + 0.36% (a)
5.69%
07/25/42
71,881
12,120,547
Series 2013-75, Class ZG
3.25%
07/25/43
8,362,408
379,979
Series 2013-105, Class BN
4.00%
05/25/43
302,532
137,151
Series 2013-105, Class KO, PO
(d)
10/25/43
114,027
195,852
Series 2013-106, Class KN
3.00%
10/25/43
134,798
19,485,929
Series 2013-115, Class Z
3.00%
11/25/33
17,580,899
45,685,745
Series 2013-119, Class VZ
3.00%
10/25/33
40,983,864
38,035,683
Series 2013-119, Class ZB
3.00%
12/25/33
33,822,839
1,003,000
Series 2013-130, Class QY
4.50%
06/25/41
901,112
44,519
Series 2014-29, Class GI, IO
3.00%
05/25/29
1,828
908,010
Series 2014-44, Class NI, IO
4.50%
08/25/29
17,109
327,228
Series 2014-46, Class KA (a)
6.50%
08/25/44
760,920
84,538
Series 2014-68, Class GI, IO
4.50%
10/25/43
6,603
626,536
Series 2014-82, Class GZ
4.00%
12/25/44
439,850
334,883
Series 2014-84, Class LI, IO
3.50%
12/25/26
8,197
875,000
Series 2015-16, Class MY
3.50%
04/25/45
655,501
206,908
Series 2015-76, Class BI, IO
4.00%
10/25/39
4,384
24,585
Series 2015-93, Class KI, IO
3.00%
09/25/44
621
4,970,369
Series 2016-2, Class EZ
2.50%
02/25/46
4,216,369
8,774,460
Series 2016-37, Class PY
3.00%
06/25/46
6,206,365
15,414,102
Series 2016-40, Class MS, IO, (30 Day Average SOFR + CSA) ×
-1+ 6.00% (b)
0.56%
07/25/46
1,413,176
11,510,000
Series 2016-50, Class GY
3.00%
08/25/46
8,139,252
5,980,442
Series 2016-62, Class SB, IO, (30 Day Average SOFR + CSA) ×
-1+ 6.10% (b)
0.66%
09/25/46
246,138
2,763,391
Series 2016-73, Class PI, IO
3.00%
08/25/46
497,888
332,209
Series 2016-74, Class HI, IO
3.50%
10/25/46
53,751
240,182
Series 2016-84, Class DF, 30 Day Average SOFR + CSA +
0.42% (a)
5.25%
11/25/46
233,147
7,183,563
Series 2017-18, Class AS, IO, (30 Day Average SOFR + CSA) ×
-1+ 6.05% (b)
0.61%
03/25/47
668,391
See Notes to Financial Statements
Page 15
First Trust Low Duration Opportunities ETF (LMBS)
Portfolio of Investments (Continued)
October 31, 2023 
Principal
Value
Description
Stated
Coupon
Stated
Maturity
Value
U.S. GOVERNMENT AGENCY MORTGAGE-BACKED SECURITIES (Continued)
Collateralized Mortgage Obligations (Continued)
Federal National Mortgage Association (Continued)
 
 
$597,364
Series 2017-46, Class BY
3.00%
06/25/47
$383,925
12,635,385
Series 2017-50, Class BZ
3.00%
07/25/47
9,876,598
5,011,144
Series 2017-65, Class SA, IO, (30 Day Average SOFR + CSA) ×
-1+ 5.90% (b)
0.46%
09/25/47
348,130
4,205,454
Series 2017-84, Class ZK
3.50%
10/25/57
3,094,242
2,981,782
Series 2017-87, Class GI, IO
4.00%
06/25/44
451,139
2,252,259
Series 2017-87, Class ZA
4.00%
11/25/57
1,509,399
2,690,547
Series 2018-17, Class Z
3.50%
03/25/48
1,852,645
20,840,944
Series 2018-84, Class ZM
4.00%
11/25/48
17,537,375
4,094,685
Series 2018-86, Class DL
3.50%
12/25/48
3,541,974
2,270,058
Series 2018-92, Class DB
3.50%
01/25/49
1,958,819
6,413,628
Series 2018-94, Class AZ
4.00%
01/25/49
5,666,490
6,764,274
Series 2019-8, Class DY
3.50%
03/25/49
5,777,529
8,637,410
Series 2019-17, Class GZ
4.00%
11/25/56
6,529,549
9,093,755
Series 2019-26, Class GA
3.50%
06/25/49
7,773,668
3,719,311
Series 2019-27, Class HA
3.00%
06/25/49
3,086,432
6,234,760
Series 2019-29, Class HT
3.00%
06/25/49
5,213,385
5,272,277
Series 2019-34, Class JA
3.00%
07/25/49
4,391,685
3,106,683
Series 2019-37, Class A
3.00%
07/25/49
2,591,807
6,151,741
Series 2019-38, Class CF, 30 Day Average SOFR + CSA +
0.45% (a)
5.89%
07/25/49
5,847,845
12,206,037
Series 2019-41, Class SN, IO, (30 Day Average SOFR + CSA) ×
-1+ 6.05% (b)
0.61%
08/25/49
863,915
9,583,616
Series 2019-57, Class JA
2.50%
10/25/49
7,785,492
3,697,135
Series 2019-59, Class PT
2.50%
10/25/49
2,982,798
8,715,596
Series 2019-66, Class C
3.00%
11/25/49
7,337,951
19,215,064
Series 2019-70, Class WA, PO
(d)
11/25/42
15,494,744
11,514,997
Series 2020-9, Class SJ, IO, (30 Day Average SOFR + CSA) ×-1
+ 6.00% (b)
0.56%
02/25/50
1,287,496
11,969,763
Series 2020-20, Class KI, IO
4.00%
03/25/50
3,760,807
17,934,153
Series 2020-34, Class FA, 30 Day Average SOFR + CSA +
0.45% (a)
5.89%
06/25/50
16,949,295
6,749,564
Series 2020-38, Class NF, 30 Day Average SOFR + CSA +
0.45% (a)
5.89%
06/25/50
6,365,751
12,495,615
Series 2020-93, Class NI, IO
3.00%
01/25/51
1,219,320
9,512,884
Series 2021-18, Class JC
1.50%
04/25/36
8,021,477
13,311,922
Series 2023-44, Class PO, PO
(d)
10/25/53
9,361,236
Government National Mortgage Association
 
 
134,237
Series 2003-4, Class MZ
5.50%
01/20/33
133,763
237,489
Series 2003-18, Class PG
5.50%
03/20/33
236,641
1,620,583
Series 2003-35, Class TZ
5.75%
04/16/33
1,514,434
136,710
Series 2003-62, Class MZ
5.50%
07/20/33
135,118
146,447
Series 2003-84, Class Z
5.50%
10/20/33
144,070
81,323
Series 2004-37, Class B
6.00%
04/17/34
81,273
470,921
Series 2004-49, Class MZ
6.00%
06/20/34
470,500
33,406
Series 2004-68, Class ZC
6.00%
08/20/34
33,365
39,653
Series 2004-71, Class ST, (1 Mo. CME Term SOFR + CSA) ×
-6.25+ 44.50%, 7.00% Cap (b)
7.00%
09/20/34
39,502
247,246
Series 2004-88, Class SM, IO, (1 Mo. CME Term SOFR + CSA)
×-1+ 6.10% (b)
0.65%
10/16/34
6,425
See Notes to Financial Statements
Page 16
First Trust Low Duration Opportunities ETF (LMBS)
Portfolio of Investments (Continued)
October 31, 2023 
Principal
Value
Description
Stated
Coupon
Stated
Maturity
Value
U.S. GOVERNMENT AGENCY MORTGAGE-BACKED SECURITIES (Continued)
Collateralized Mortgage Obligations (Continued)
Government National Mortgage Association (Continued)
 
 
$255,924
Series 2004-105, Class JZ
5.00%
12/20/34
$247,163
201,945
Series 2004-105, Class KA
5.00%
12/16/34
196,368
254,862
Series 2005-3, Class JZ
5.00%
01/16/35
234,875
254,862
Series 2005-3, Class KZ
5.00%
01/16/35
241,089
52,982
Series 2005-7, Class MA, (1 Mo. CME Term SOFR + CSA) ×
-2.81+ 18.97% (b)
3.65%
12/17/34
50,561
104,496
Series 2005-33, Class AY
5.50%
04/16/35
103,417
92,925
Series 2005-41, Class PA
4.00%
05/20/35
88,369
1,840,647
Series 2005-78, Class ZA
5.00%
10/16/35
1,790,320
163,638
Series 2005-93, Class PO, PO
(d)
06/20/35
143,375
475,448
Series 2006-38, Class OH
6.50%
08/20/36
474,158
204,673
Series 2006-61, Class ZA
5.00%
11/20/36
200,022
489,027
Series 2007-16, Class OZ
6.00%
04/20/37
486,314
108,069
Series 2007-27, Class SD, IO, (1 Mo. CME Term SOFR + CSA)
×-1+ 6.20% (b)
0.75%
05/20/37
2,897
84,782
Series 2007-41, Class OL, PO
(d)
07/20/37
73,586
153,766
Series 2007-42, Class SB, IO, (1 Mo. CME Term SOFR + CSA)
×-1+ 6.75% (b)
1.30%
07/20/37
6,491
465,792
Series 2007-71, Class ZD
6.00%
11/20/37
461,065
159,929
Series 2007-81, Class FZ, 1 Mo. CME Term SOFR + CSA +
0.35% (a)
5.80%
12/20/37
158,183
72,487
Series 2008-33, Class XS, IO, (1 Mo. CME Term SOFR + CSA)
×-1+ 7.70% (b)
2.25%
04/16/38
3,639
416,606
Series 2008-47, Class ML
5.25%
06/16/38
405,468
122,735
Series 2008-54, Class PE
5.00%
06/20/38
118,078
343,475
Series 2008-71, Class JI, IO
6.00%
04/20/38
19,128
91,735
Series 2009-14, Class KI, IO
6.50%
03/20/39
10,871
30,101
Series 2009-14, Class KS, IO, (1 Mo. CME Term SOFR + CSA)
×-1+ 6.30% (b)
0.85%
03/20/39
725
71,694
Series 2009-25, Class SE, IO, (1 Mo. CME Term SOFR + CSA)
×-1+ 7.60% (b)
2.15%
09/20/38
2,804
2,508,615
Series 2009-29, Class PC
7.00%
05/20/39
2,548,624
441,545
Series 2009-32, Class SZ
5.50%
05/16/39
429,936
3,732,412
Series 2009-57, Class VB
5.00%
06/16/39
3,619,298
305,371
Series 2009-61, Class PZ
7.50%
08/20/39
319,217
7,595,772
Series 2009-61, Class WQ, IO, (1 Mo. CME Term SOFR + CSA)
×-1+ 6.25% (b)
0.80%
11/16/35
446,877
918,944
Series 2009-69, Class ZB
6.00%
08/20/39
890,480
455,000
Series 2009-75, Class JN
5.50%
09/16/39
428,849
662,751
Series 2009-78, Class KZ
5.50%
09/16/39
626,956
87,464
Series 2009-79, Class OK, PO
(d)
11/16/37
72,893
155,941
Series 2009-81, Class TZ
5.50%
09/20/39
147,040
69,000
Series 2009-94, Class AL
5.00%
10/20/39
66,169
3,182,916
Series 2009-106, Class SL, IO, (1 Mo. CME Term SOFR + CSA)
×-1+ 6.10% (b)
0.65%
04/20/36
109,159
53,653
Series 2009-106, Class WZ
5.50%
11/16/39
50,232
732,000
Series 2009-126, Class LB
5.00%
12/20/39
684,422
16,214
Series 2010-4, Class WA
3.00%
01/16/40
15,062
1,002,232
Series 2010-59, Class ZD
6.50%
05/20/40
1,008,103
See Notes to Financial Statements
Page 17

First Trust Low Duration Opportunities ETF (LMBS)
Portfolio of Investments (Continued)
October 31, 2023 
Principal
Value
Description
Stated
Coupon
Stated
Maturity
Value
U.S. GOVERNMENT AGENCY MORTGAGE-BACKED SECURITIES (Continued)
Collateralized Mortgage Obligations (Continued)
Government National Mortgage Association (Continued)
 
 
$983,513
Series 2010-85, Class SL, IO, (1 Mo. CME Term SOFR + CSA)
×-1+ 6.60% (b)
1.15%
07/20/37
$27,249
89,000
Series 2010-116, Class BM
4.50%
09/16/40
79,042
1,406,100
Series 2010-116, Class JB
5.00%
06/16/40
1,311,038
525,156
Series 2010-157, Class OP, PO
(d)
12/20/40
422,801
290,943
Series 2011-4, Class PZ
5.00%
01/20/41
282,514
771,202
Series 2011-35, Class BP
4.50%
03/16/41
707,581
151,160
Series 2011-48, Class LI, IO
5.50%
01/16/41
15,900
5,035,018
Series 2011-61, Class WS, IO, (1 Mo. CME Term SOFR + CSA)
×-1+ 6.47% (b)
1.02%
02/20/38
173,213
37,022
Series 2011-63, Class BI, IO
6.00%
02/20/38
2,020
481,933
Series 2011-71, Class ZC
5.50%
07/16/34
474,819
1,216,249
Series 2011-81, Class IC, IO, (1 Mo. CME Term SOFR + CSA)
×-1+ 6.72%, 0.62% Cap (b)
0.62%
07/20/35
13,172
141,842
Series 2011-112, Class IP, IO
0.50%
08/16/26
3
239,265
Series 2011-129, Class CL
5.00%
03/20/41
233,120
2,679
Series 2011-136, Class GB
2.50%
05/20/40
2,530
33,133
Series 2011-151, Class TB, IO, (1 Mo. CME Term SOFR +
CSA) ×-70+ 465.50%, 3.50% Cap (b)
3.50%
04/20/41
2,482
6,483,218
Series 2012-84, Class QS, IO, (1 Mo. CME Term SOFR + CSA)
×-1+ 6.10% (b)
0.65%
07/16/42
253,660
6,711,842
Series 2012-84, Class SJ, (1 Mo. CME Term SOFR + CSA) ×
-0.57+ 2.51%, 0.00% Floor (b)
0.00%
07/16/42
3,364,053
251,623
Series 2012-108, Class KB
2.75%
09/16/42
175,009
2,094,384
Series 2012-143, Class TI, IO
3.00%
12/16/27
72,095
1,343,763
Series 2012-149, Class PC (c)
6.33%
12/20/42
1,350,041
63,793
Series 2013-5, Class IA, IO
3.50%
10/16/42
8,111
2,223,000
Series 2013-20, Class QM
2.63%
02/16/43
1,664,342
142,135
Series 2013-69, Class PI, IO
5.00%
05/20/43
14,053
953,680
Series 2013-70, Class PM
2.50%
05/20/43
674,360
1,387,720
Series 2013-91, Class PB
3.50%
09/20/42
1,344,153
697,569
Series 2013-130, Class WS, IO, (1 Mo. CME Term SOFR +
CSA) ×-1+ 6.10% (b)
0.65%
09/20/43
60,380
688,000
Series 2013-183, Class PB
4.50%
12/20/43
603,791
1,480,672
Series 2014-44, Class IC, IO
3.00%
04/20/28
57,105
5,199,035
Series 2014-44, Class ID, IO (c) (e)
0.33%
03/16/44
48,224
17,134
Series 2014-91, Class JI, IO
4.50%
01/20/40
1,017
619,284
Series 2014-94, Class Z
4.50%
01/20/44
520,934
1,184,386
Series 2014-115, Class QI, IO
3.00%
03/20/29
20,685
2,459,679
Series 2014-116, Class SB, IO, (1 Mo. CME Term SOFR + CSA)
×-1+ 5.60% (b)
0.15%
08/20/44
168,261
1,048,806
Series 2014-118, Class TV, IO, (1 Mo. CME Term SOFR +
CSA) ×-1+ 6.25% (b)
0.80%
05/20/44
67,100
11,476,602
Series 2015-24, Class BZ
3.00%
02/20/45
9,507,264
4,201,839
Series 2015-66, Class LI, IO
5.00%
05/16/45
383,089
11,497
Series 2015-95, Class IK, IO (c) (f)
0.00%
05/16/37
0
1,945,599
Series 2015-124, Class DI, IO
3.50%
01/20/38
29,187
348,883
Series 2015-137, Class WA (c) (e)
5.54%
01/20/38
343,512
275,658
Series 2015-138, Class MI, IO
4.50%
08/20/44
29,401
51,780
Series 2015-151, Class KW (c)
4.72%
04/20/34
49,639
See Notes to Financial Statements
Page 18
First Trust Low Duration Opportunities ETF (LMBS)
Portfolio of Investments (Continued)
October 31, 2023 
Principal
Value
Description
Stated
Coupon
Stated
Maturity
Value
U.S. GOVERNMENT AGENCY MORTGAGE-BACKED SECURITIES (Continued)
Collateralized Mortgage Obligations (Continued)
Government National Mortgage Association (Continued)
 
 
$20,160,221
Series 2015-164, Class MZ
3.00%
09/20/45
$13,459,054
3,183,576
Series 2015-168, Class GI, IO
5.50%
02/16/33
84,221
201,318
Series 2016-16, Class KZ
3.00%
02/16/46
137,947
5,870,028
Series 2016-37, Class AF, 1 Mo. CME Term SOFR + CSA +
0.47% (a)
5.90%
11/20/43
5,607,343
41,440
Series 2016-55, Class PB (c)
5.68%
03/20/31
40,936
816,550
Series 2016-69, Class WI, IO
4.50%
05/20/46
203,134
2,331,898
Series 2016-75, Class SA, IO, (1 Mo. CME Term SOFR + CSA)
×-1+ 6.00% (b)
0.55%
05/20/40
117,907
402,874
Series 2016-78, Class UI, IO
4.00%
06/20/46
44,053
7,231,381
Series 2016-83, Class BP
3.00%
06/20/46
5,333,229
269,214
Series 2016-99, Class JA (c)
5.51%
11/20/45
263,420
1,067,525
Series 2016-109, Class ZM
3.50%
08/20/36
851,848
5,547,461
Series 2016-111, Class PI, IO
3.50%
06/20/45
510,692
6,774,003
Series 2016-120, Class AS, IO, (1 Mo. CME Term SOFR +
CSA) ×-1+ 6.10% (b)
0.65%
09/20/46
571,361
464,000
Series 2016-141, Class PC
5.00%
10/20/46
411,847
339,171
Series 2016-145, Class LZ
3.00%
10/20/46
201,625
7,174,700
Series 2016-156, Class ZM
3.50%
11/20/46
6,138,288
303,000
Series 2016-160, Class LE
2.50%
11/20/46
183,322
171,030
Series 2016-167, Class KI, IO
6.00%
12/16/46
23,113
1,939,965
Series 2017-12, Class SD, IO, (1 Mo. CME Term SOFR + CSA)
×-1+ 6.10% (b)
0.65%
01/20/47
164,591
1,004,275
Series 2017-17, Class KZ
4.50%
02/20/47
795,896
3,434,309
Series 2017-32, Class DI, IO
5.50%
05/20/35
551,786
6,323,467
Series 2017-33, Class PZ
3.00%
02/20/47
4,811,614
3,750,867
Series 2017-56, Class BI, IO
6.00%
04/16/47
580,034
3,361,212
Series 2017-123, Class IO, IO
5.00%
08/16/47
727,151
4,272,348
Series 2017-130, Class LS, IO, (1 Mo. CME Term SOFR + CSA)
×-1+ 6.20% (b)
0.75%
08/16/47
237,667
3,575,153
Series 2017-133, Class JI, IO
7.00%
06/20/41
455,684
3,095,779
Series 2017-186, Class TI, IO, (1 Mo. CME Term SOFR + CSA)
×-1+ 6.50%, 0.50% Cap (b)
0.50%
05/20/40
39,157
938,273
Series 2018-44, Class Z
2.50%
09/20/47
593,119
4,392,516
Series 2018-79, Class IO, IO
5.00%
06/20/48
555,898
5,204,477
Series 2018-131, Class IA, IO
5.00%
04/20/44
530,469
10,000,000
Series 2018-134, Class KB
3.50%
10/20/48
8,354,469
6,734,770
Series 2018-155, Class KD
4.00%
11/20/48
6,010,817
3,837,276
Series 2018-160, Class GY
4.50%
11/20/48
3,439,959
5,577,757
Series 2018-78I, Class EZ
3.00%
04/20/48
4,575,269
941,977
Series 2019-27, Class DI, IO
5.50%
01/20/40
149,629
9,039,637
Series 2019-128, Class EF, 1 Mo. CME Term SOFR + CSA +
0.57%, 4.00% Cap (a)
4.00%
10/20/49
7,637,722
2,054,463
Series 2019-128, Class ES, IO, (1 Mo. CME Term SOFR + CSA)
×-1+ 3.43%, 0.00% Floor (b)
0.00%
10/20/49
10,853
3,000,000
Series 2020-62, Class IC, IO
2.50%
01/20/50
632,260
14,014,801
Series 2020-62, Class WI, IO
2.50%
08/20/49
2,869,158
7,097,422
Series 2020-84, Class IM, IO
2.50%
05/20/50
1,552,326
19,759,118
Series 2020-84, Class IO, IO
2.50%
04/20/50
4,484,879
6,428,474
Series 2021-46, Class IL, IO
3.00%
03/20/51
774,979
See Notes to Financial Statements
Page 19
First Trust Low Duration Opportunities ETF (LMBS)
Portfolio of Investments (Continued)
October 31, 2023 
Principal
Value
Description
Stated
Coupon
Stated
Maturity
Value
U.S. GOVERNMENT AGENCY MORTGAGE-BACKED SECURITIES (Continued)
Collateralized Mortgage Obligations (Continued)
Government National Mortgage Association (Continued)
 
 
$33,344,676
Series 2022-63, Class AZ
3.00%
08/20/51
$23,885,448
17,183,548
Series 2022-63, Class BZ
3.50%
11/20/46
12,704,827
19,896,659
Series 2022-63, Class HZ
2.50%
11/20/51
12,516,622
11,429,527
Series 2022-63, Class MZ
3.00%
05/20/51
7,621,683
16,088,065
Series 2022-65, Class BZ
3.50%
04/20/52
10,667,119
7,358,235
Series 2022-68, Class DZ
3.50%
04/20/52
4,741,133
12,825,014
Series 2022-68, Class MZ
3.50%
04/20/52
8,703,397
21,904,058
Series 2022-68, Class XA
3.50%
02/20/49
20,021,440
13,239,166
Series 2022-68, Class Z
3.50%
04/20/52
9,374,781
17,800,283
Series 2022-68, Class ZC
3.50%
04/20/52
11,638,348
12,991,946
Series 2022-69, Class QL
3.00%
04/20/52
10,034,762
15,893,306
Series 2022-76, Class PG
4.00%
04/20/52
14,828,776
10,917,513
Series 2022-78, Class AM
3.50%
04/20/52
7,468,338
14,453,676
Series 2022-90, Class KZ
3.00%
04/20/51
9,434,689
8,824,434
Series 2022-90, Class ZG
1.50%
02/20/52
3,653,593
22,341,349
Series 2022-124, Class EY
4.00%
07/20/52
17,429,574
12,000,000
Series 2022-124, Class MY
3.50%
07/20/52
9,222,640
9,698,933
Series 2022-146, Class MF, 30 Day Average SOFR + 0.45% (a)
5.77%
08/20/52
9,183,106
10,072,785
Series 2022-154, Class EZ
3.50%
09/20/52
6,907,012
10,173,000
Series 2022-204, Class YC
4.00%
07/20/52
8,528,308
12,400,587
Series 2023-83, Class CA
5.00%
11/20/60
11,801,313
Seasoned Credit Risk Transfer Trust
 
 
8,397,287
Series 2018-2, Class MA
3.50%
11/25/57
7,760,208
8,620,056
Series 2018-3, Class MA
3.50%
08/25/57
7,940,263
27,467,523
Series 2018-4, Class MA
3.50%
03/25/58
25,200,293
20,341,620
Series 2019-1, Class MA
3.50%
07/25/58
18,597,595
5,026,413
Series 2019-3, Class MA
3.50%
10/25/58
4,603,280
24,256,586
Series 2020-2, Class MAU
2.50%
11/25/59
21,256,980
Seasoned Loans Structured Transaction Trust
 
 
3,602,639
Series 2019-3, Class A1C
2.75%
11/25/29
3,203,925
5,201,231
Series 2021-1, Class A1D
2.00%
05/26/31
4,540,221
10,000,000
Series 2022-1, Class A2
3.50%
05/25/32
8,186,968
 
1,210,324,642
Commercial Mortgage-Backed Securities — 14.5%
Federal Home Loan Mortgage Corporation Multiclass Certificates
 
 
79,276,000
Series 2020-RR02, Class DX, IO (c)
1.82%
09/27/28
5,661,103
150,334,000
Series 2020-RR06, Class BX, IO (c)
1.84%
05/27/33
15,914,545
37,600,000
Series 2020-RR09, Class AX, IO (c)
2.63%
11/27/28
3,880,320
47,500,000
Series 2020-RR09, Class BX, IO (c)
2.20%
02/27/29
4,360,500
96,907,000
Series 2020-RR10, Class X, IO (c)
2.01%
12/27/27
5,814,493
112,919,000
Series 2020-RR11, Class AX, IO (c)
2.84%
01/27/29
11,824,584
44,200,500
Series 2020-RR11, Class BX, IO (c)
2.44%
12/27/28
3,204,797
35,981,681
Series 2021-P009, Class X, IO (e)
1.40%
01/25/31
1,433,474
4,047,837
Series 2021-P011, Class X1, IO (e)
1.78%
09/25/45
466,388
112,345,000
Series 2021-RR15, Class X, IO (e)
1.56%
10/27/34
11,746,759
100,924,000
Series 2021-RR18, Class X, IO (e) (g) (h)
1.90%
10/27/28
7,195,881
32,013,000
Series 2021-RR19, Class X, IO (e)
1.98%
04/27/29
1,813,591
55,000,000
Series 2021-RR20, Class X, IO (e)
1.85%
04/25/33
6,942,980
See Notes to Financial Statements
Page 20
First Trust Low Duration Opportunities ETF (LMBS)
Portfolio of Investments (Continued)
October 31, 2023 
Principal
Value
Description
Stated
Coupon
Stated
Maturity
Value
U.S. GOVERNMENT AGENCY MORTGAGE-BACKED SECURITIES (Continued)
Commercial Mortgage-Backed Securities (Continued)
Federal Home Loan Mortgage Corporation Multifamily Structured
Pass Through Certificates
 
 
$128,644,992
Series 2015-K047, Class X3, IO (e)
1.49%
06/25/43
$2,748,950
1,234,442
Series 2016-K054, Class A1
2.30%
01/25/25
1,207,561
19,868,000
Series 2016-K152, Class A2
3.08%
01/25/31
16,947,577
279,800,537
Series 2016-KIR1, Class X, IO (e)
1.03%
03/25/26
5,666,213
5,900,000
Series 2018-K156, Class A3
3.70%
06/25/33
5,055,054
1,900,000
Series 2018-K157, Class A3
3.99%
08/25/33
1,656,585
8,000,000
Series 2018-K158, Class A3
3.90%
10/25/33
6,948,510
9,101,000
Series 2018-K159, Class A3
3.95%
11/25/33
7,922,277
11,254,652
Series 2018-KSW4, Class A, 30 Day Average SOFR + CSA +
0.43% (a)
5.86%
10/25/28
11,195,417
3,000,000
Series 2019-1513, Class A2
2.73%
12/25/31
2,491,705
73,854,896
Series 2019-K097, Class X1, IO (e)
1.09%
07/25/29
3,659,835
57,392,734
Series 2019-K099, Class X1, IO (e)
0.88%
09/25/29
2,341,296
57,790,000
Series 2019-K099, Class XAM, IO (e)
1.14%
09/25/29
3,207,977
125,264,064
Series 2019-K100, Class X1, IO (e)
0.65%
09/25/29
3,897,754
69,276,280
Series 2019-K101, Class X1, IO (c)
0.83%
10/25/29
2,731,882
64,993,000
Series 2019-K102, Class XAM, IO (c)
1.08%
10/25/29
3,468,901
59,029,000
Series 2019-K103, Class XAM, IO (e)
0.90%
11/25/29
2,690,006
101,657,193
Series 2019-K734, Class X1, IO (e)
0.65%
02/25/26
1,085,811
68,018,000
Series 2019-K734, Class XAM, IO (e)
0.42%
02/25/26
650,737
41,521,965
Series 2019-K735, Class X1, IO (e)
0.96%
05/25/26
793,128
53,727,679
Series 2019-K736, Class X1, IO (e)
1.28%
07/25/26
1,447,005
28,544,609
Series 2019-K1510, Class X1, IO (e)
0.48%
01/25/34
940,662
15,780,539
Series 2019-K1511, Class X1, IO (e)
0.78%
03/25/34
815,593
157,802,599
Series 2019-K1512, Class X1, IO (e)
0.91%
04/25/34
9,361,955
56,788,785
Series 2019-K1513, Class X1, IO (e)
0.86%
08/25/34
3,261,647
35,529,637
Series 2020-K109, Class XAM, IO (e)
1.80%
04/25/30
3,361,004
108,307,522
Series 2020-K110, Class X1, IO (e)
1.70%
04/25/30
8,778,834
24,006,055
Series 2020-K110, Class XAM, IO (e)
1.87%
04/25/30
2,299,994
29,273,633
Series 2020-K112, Class XAM, IO (e)
1.67%
05/25/30
2,576,598
82,019,000
Series 2020-K113, Class XAM, IO (e)
1.59%
06/25/30
6,920,599
53,269,611
Series 2020-K114, Class XAM, IO (e)
1.34%
06/25/30
3,847,723
120,533,519
Series 2020-K115, Class X1, IO (e)
1.33%
06/25/30
8,073,805
55,537,412
Series 2020-K115, Class XAM, IO (e)
1.55%
07/25/30
4,588,934
16,385,350
Series 2020-K116, Class X1, IO (e)
1.42%
07/25/30
1,164,153
55,652,865
Series 2020-K116, Class XAM, IO (e)
1.60%
08/25/30
4,847,125
8,000,000
Series 2020-K117, Class A2
1.41%
08/25/30
6,142,532
63,500,000
Series 2020-K117, Class XAM, IO (e)
1.43%
09/25/30
4,954,359
77,265,079
Series 2020-K118, Class X1, IO (e)
0.96%
09/25/30
3,864,359
37,151,661
Series 2020-K118, Class XAM, IO (e)
1.17%
09/25/30
2,406,581
51,000,000
Series 2020-K119, Class XAM, IO (e)
1.13%
10/25/30
3,201,464
7,000,000
Series 2020-K120, Class A2
1.50%
10/25/30
5,369,250
77,535,017
Series 2020-K120, Class XAM, IO (e)
1.21%
10/25/30
5,165,701
28,126,776
Series 2020-K121, Class X1, IO (e)
1.02%
10/25/30
1,482,683
24,471,000
Series 2020-K121, Class XAM, IO (e)
1.19%
11/25/30
1,653,102
77,947,185
Series 2020-K122, Class X1, IO (e)
0.88%
11/25/30
3,604,192
35,410,560
Series 2020-K122, Class XAM, IO (e)
1.08%
11/25/30
2,154,180
74,130,848
Series 2020-K737, Class X1, IO (c)
0.63%
10/25/26
1,055,912
See Notes to Financial Statements
Page 21
First Trust Low Duration Opportunities ETF (LMBS)
Portfolio of Investments (Continued)
October 31, 2023 
Principal
Value
Description
Stated
Coupon
Stated
Maturity
Value
U.S. GOVERNMENT AGENCY MORTGAGE-BACKED SECURITIES (Continued)
Commercial Mortgage-Backed Securities (Continued)
Federal Home Loan Mortgage Corporation Multifamily Structured
Pass Through Certificates (Continued)
 
 
$38,645,000
Series 2020-K738, Class XAM, IO (c)
1.37%
03/25/27
$1,567,889
129,456,366
Series 2020-K739, Class X1, IO (e)
1.21%
09/25/27
4,473,209
46,072,531
Series 2020-K739, Class XAM, IO (e)
1.57%
09/25/27
2,313,804
70,811,000
Series 2020-K740, Class XAM, IO (e)
1.11%
10/25/27
2,606,029
89,707,038
Series 2020-K1515, Class X1, IO (e)
1.51%
02/25/35
9,731,393
44,611,726
Series 2020-K1516, Class X1, IO (e)
1.51%
05/25/35
5,122,457
55,731,526
Series 2020-K1517, Class X1, IO (e)
1.32%
07/25/35
5,566,821
89,782,322
Series 2020-KG04, Class X1, IO (e)
0.85%
11/25/30
3,975,471
5,700,000
Series 2021-K123, Class A2
1.62%
12/25/30
4,393,830
4,725,000
Series 2021-K124, Class A2
1.66%
12/25/30
3,641,795
64,367,000
Series 2021-K128, Class XAM, IO (e)
0.73%
03/25/31
2,832,830
145,866,810
Series 2021-K129, Class X1, IO (e)
1.03%
05/25/31
8,146,938
43,636,000
Series 2021-K129, Class XAM, IO (e)
1.22%
05/25/31
3,148,093
41,565,013
Series 2021-K130, Class XAM, IO (e)
1.21%
07/25/31
3,082,549
48,086,863
Series 2021-K131, Class XAM, IO (e)
0.94%
07/25/31
2,762,456
78,491,000
Series 2021-K132, Class XAM, IO (e)
0.86%
09/25/31
4,099,342
107,703,000
Series 2021-K741, Class XAM, IO (e)
0.95%
12/25/27
3,623,112
106,661,968
Series 2021-K744, Class X1, IO (e)
0.85%
07/25/28
3,512,464
9,783,521
Series 2021-K1522, Class A1
1.91%
11/25/35
7,407,087
143,990,000
Series 2021-KG05, Class X1, IO (e)
0.31%
01/25/31
2,580,430
64,431,976
Series 2021-KG06, Class X1, IO (e)
0.53%
10/25/31
2,052,796
200,000,000
Series 2022-K148, Class XAM, IO (e)
0.25%
08/25/32
4,083,982
14,000,000
Series 2023-KJ47, Class A2
5.43%
06/25/31
13,740,770
Federal Home Loan Mortgage Corporation Multifamily ML
Certificates
 
 
7,473,493
Series 2023-ML15, Class A (e)
4.00%
01/25/40
6,429,085
Federal National Mortgage Association Alternative Credit
Enhancement Securities
 
 
29,610,955
Series 2023-M1, Class 2A1 (e)
3.94%
12/25/37
26,375,881
24,693,284
Series 2023-M1, Class Z (e)
3.94%
01/25/53
17,327,920
FREMF Mortgage Trust
 
 
4,505,000
Series 2015-K44, Class B (e) (i)
3.72%
01/25/48
4,355,479
8,205,000
Series 2015-K45, Class B (e) (i)
3.61%
04/25/48
7,896,458
Government National Mortgage Association
 
 
2,897,703
Series 2011-31, Class Z (c)
3.53%
09/16/52
2,503,136
19,356,106
Series 2012-120, Class Z (c)
2.46%
01/16/55
11,403,123
91,044
Series 2013-74, Class AG (e)
2.53%
12/16/53
65,509
4,932
Series 2013-194, Class AE (c)
2.75%
11/16/44
4,481
16,781,922
Series 2015-30, Class DZ
2.95%
05/16/55
13,932,468
6,482,789
Series 2015-70, Class IO, IO (c)
0.57%
12/16/49
111,649
3,834,475
Series 2015-125, Class VA (c)
2.70%
05/16/35
3,547,928
15,611,703
Series 2016-11, Class IO, IO (c)
0.78%
01/16/56
532,829
7,534,877
Series 2016-26, Class IO, IO (c)
0.63%
02/16/58
169,401
10,295,837
Series 2016-52, Class IO, IO (c)
0.76%
03/16/58
328,823
9,528,944
Series 2016-127, Class IO, IO (c)
0.85%
05/16/58
377,463
3,266,065
Series 2017-23, Class Z
2.50%
05/16/59
1,741,994
4,249,626
Series 2017-35, Class Z (c)
2.50%
05/16/59
2,374,294
6,548,750
Series 2017-76, Class B
2.60%
12/16/56
4,468,307
See Notes to Financial Statements
Page 22
First Trust Low Duration Opportunities ETF (LMBS)
Portfolio of Investments (Continued)
October 31, 2023 
Principal
Value
Description
Stated
Coupon
Stated
Maturity
Value
U.S. GOVERNMENT AGENCY MORTGAGE-BACKED SECURITIES (Continued)
Commercial Mortgage-Backed Securities (Continued)
Government National Mortgage Association (Continued)
 
 
$2,283,069
Series 2017-106, Class AE
2.60%
12/16/56
$1,739,610
2,703,284
Series 2017-146, Class Z
2.60%
09/16/57
1,533,897
4,443,550
Series 2018-4, Class Z
2.50%
10/16/59
2,249,501
17,770,818
Series 2018-123, Class Z
2.50%
06/16/60
13,246,746
25,416,363
Series 2018-170, Class Z
2.50%
11/16/60
17,440,571
18,777,973
Series 2019-7, Class Z
2.50%
01/16/61
11,062,335
1,936,235
Series 2019-104, Class Z
2.80%
05/16/61
954,517
6,700,000
Series 2020-161, Class B
2.00%
08/16/62
3,343,677
8,963,279
Series 2020-169, Class Z
1.83%
06/16/62
3,101,163
23,054,266
Series 2022-43, Class Z
2.00%
09/16/61
10,748,867
19,658,062
Series 2022-106, Class Z
2.00%
05/16/63
11,263,886
 
555,063,082
Pass-Through Securities — 36.3%
Federal Home Loan Mortgage Corporation
925,543
Pool 760043, 5 Yr. Constant Maturity Treasury Rate + 1.39% (a)
3.57%
12/01/48
891,179
3,097,538
Pool 840359, FTSE USD IBOR Consumer Cash Fallbacks Term
1Y + 1.66% (a)
5.19%
06/01/46
3,133,965
69,268
Pool A19763
5.00%
04/01/34
66,132
314,141
Pool A47828
3.50%
08/01/35
280,116
139,384
Pool A47937
5.50%
08/01/35
137,382
58,137
Pool A48972
5.50%
05/01/36
57,035
58,179
Pool A54675
5.50%
01/01/36
57,270
129,170
Pool A65324
5.50%
09/01/37
127,152
71,252
Pool A97294
4.00%
02/01/41
63,815
537,329
Pool B70791
4.00%
06/01/39
520,004
2,320
Pool C01310
6.50%
03/01/32
2,338
8,928
Pool C03458
5.00%
02/01/40
8,589
80,447
Pool C04269
3.00%
10/01/42
68,042
13,058
Pool C91482
3.50%
07/01/32
12,176
6,655
Pool E02883
4.00%
04/01/26
6,487
11,442
Pool G01443
6.50%
08/01/32
11,509
192,265
Pool G02017
5.00%
12/01/35
186,877
88,387
Pool G04814
5.50%
10/01/38
86,924
14,708
Pool G05173
4.50%
11/01/31
13,728
208,178
Pool G05275
5.50%
02/01/39
204,665
50,396
Pool G05449
4.50%
05/01/39
46,610
148,546
Pool G06583
5.00%
06/01/41
142,414
390,206
Pool G07100
5.50%
07/01/40
383,662
37,639
Pool G07266
4.00%
12/01/42
33,507
277,216
Pool G07329
4.00%
01/01/43
247,262
273,078
Pool G07683
4.00%
03/01/44
242,929
1,495
Pool G08113
6.50%
02/01/36
1,512
37
Pool G13625
5.50%
01/01/24
37
10,388
Pool G13733
5.00%
11/01/24
10,076
13,092
Pool G14088
4.00%
02/01/26
12,762
2,479
Pool G14106
6.00%
10/01/24
2,475
6
Pool G14233
6.00%
01/01/24
6
131,468
Pool G14348
4.00%
10/01/26
128,191
2,342
Pool G14376
4.00%
09/01/25
2,297
See Notes to Financial Statements
Page 23
First Trust Low Duration Opportunities ETF (LMBS)
Portfolio of Investments (Continued)
October 31, 2023 
Principal
Value
Description
Stated
Coupon
Stated
Maturity
Value
U.S. GOVERNMENT AGENCY MORTGAGE-BACKED SECURITIES (Continued)
Pass-Through Securities (Continued)
Federal Home Loan Mortgage Corporation (Continued)
$292
Pool G14995
5.50%
12/01/24
$291
98
Pool G15821
5.00%
07/01/25
95
28,023
Pool G15949
4.00%
01/01/29
27,316
51
Pool G15957
5.50%
12/01/24
51
3,089
Pool G18287
5.50%
12/01/23
3,083
7,653
Pool G60020
4.50%
12/01/43
6,953
322,281
Pool G60114
5.50%
06/01/41
317,253
476,880
Pool G60168
4.50%
07/01/45
438,373
178,353
Pool G60194
3.50%
08/01/45
154,288
163,163
Pool G60808
3.00%
10/01/46
135,522
2,598
Pool H09034
5.50%
05/01/37
2,571
9,069
Pool J09465
4.00%
04/01/24
8,983
3,555
Pool J09504
4.00%
04/01/24
3,521
1,406
Pool J09798
4.00%
05/01/24
1,393
3,547
Pool J10623
4.00%
09/01/24
3,478
85,840
Pool N70075
5.00%
01/01/35
83,788
219,529
Pool N70081
5.50%
07/01/38
211,724
45,252
Pool Q07189
4.00%
04/01/42
40,494
15,736
Pool Q07479
3.50%
04/01/42
13,849
69,479
Pool Q11791
3.50%
10/01/42
61,060
46,168
Pool Q11836
3.50%
10/01/42
40,459
327,944
Pool Q14034
3.50%
12/01/42
288,635
313,880
Pool Q54651
4.50%
03/01/48
288,238
654,219
Pool Q55037
4.50%
04/01/48
601,400
1,786,555
Pool Q61217
4.00%
01/01/49
1,573,939
10,292,657
Pool SC0252
3.00%
01/01/42
8,598,209
9,893,794
Pool SD0887
3.50%
09/01/49
8,545,607
15,340,344
Pool SD0948
3.00%
05/01/47
12,772,257
21,904,382
Pool SD0949
3.00%
09/01/48
18,419,797
16,369,675
Pool SD0954
3.00%
02/01/47
13,825,478
10,560,470
Pool SD0961
3.50%
11/01/48
9,064,202
10,643,533
Pool SD1169
3.50%
02/01/48
9,193,324
18,788,274
Pool SD1170
3.50%
09/01/49
16,227,635
5,196,010
Pool SD1289
3.00%
10/01/50
4,299,970
7,065,163
Pool SD1361
3.50%
02/01/50
6,102,507
10,662,275
Pool SD4005
4.00%
12/01/49
9,446,923
250,778
Pool U50165
4.00%
05/01/32
225,210
1,546,346
Pool U59020
4.00%
06/01/35
1,381,397
847,147
Pool U64762
4.50%
10/01/45
779,629
79,521
Pool U80068
3.50%
10/01/32
74,696
47,989
Pool U80212
3.50%
02/01/33
45,026
67,391
Pool U90245
3.50%
10/01/42
58,686
680,585
Pool U90690
3.50%
06/01/42
592,673
9,508
Pool U90932
3.00%
02/01/43
7,900
23,713
Pool U92272
4.50%
12/01/43
21,709
76,523
Pool U99045
3.50%
03/01/43
66,718
85,683
Pool U99084
4.50%
02/01/44
79,100
42,692
Pool U99091
4.50%
03/01/44
39,084
113,114
Pool U99096
4.50%
05/01/44
103,680
See Notes to Financial Statements
Page 24
First Trust Low Duration Opportunities ETF (LMBS)
Portfolio of Investments (Continued)
October 31, 2023 
Principal
Value
Description
Stated
Coupon
Stated
Maturity
Value
U.S. GOVERNMENT AGENCY MORTGAGE-BACKED SECURITIES (Continued)
Pass-Through Securities (Continued)
Federal Home Loan Mortgage Corporation (Continued)
$10,486,063
Pool ZA4196
3.00%
04/01/43
$8,826,943
15,491,419
Pool ZL8982
3.50%
01/01/45
13,381,138
1,205,551
Pool ZS2492
6.50%
04/01/35
1,234,883
19,735,427
Pool ZS9446
3.50%
08/01/45
17,046,755
26,240,680
Pool ZS9776
3.50%
08/01/46
22,568,205
47,531,893
Pool ZT0779
3.00%
09/01/47
38,947,025
Federal National Mortgage Association
32,008
Pool 190371
6.50%
07/01/36
32,441
18,633
Pool 255190
5.50%
05/01/34
18,338
5,915
Pool 255984
4.50%
11/01/25
5,636
51,289
Pool 256181
5.50%
03/01/36
50,808
243,218
Pool 256576
5.50%
01/01/37
240,640
4,553
Pool 256808
5.50%
07/01/37
4,449
34,317
Pool 256936
6.00%
10/01/37
34,355
38,602
Pool 545759
6.50%
07/01/32
39,240
8,616
Pool 555851
6.50%
01/01/33
8,612
250,135
Pool 735415
6.50%
12/01/32
253,964
2,394
Pool 745875
6.50%
09/01/36
2,427
33,772
Pool 747097
6.00%
10/01/29
33,497
206,090
Pool 788149
5.50%
05/01/33
196,849
203,564
Pool 850000
5.50%
01/01/36
200,092
32,338
Pool 871039
5.50%
02/01/37
31,835
68,968
Pool 888163
7.00%
12/01/33
70,858
7,959
Pool 890149
6.50%
10/01/38
8,191
6,351
Pool 890231
5.00%
07/01/25
6,142
25
Pool 890378
6.00%
05/01/24
25
641,535
Pool 890556
4.50%
10/01/43
585,107
60,510
Pool 922386
5.50%
01/01/37
58,692
7,757
Pool 930562
5.00%
02/01/39
7,485
84,824
Pool 953115
5.50%
11/01/38
82,659
30,316
Pool 976871
6.50%
08/01/36
30,312
11,972
Pool 995097
6.50%
10/01/37
12,323
58,691
Pool 995149
6.50%
10/01/38
59,889
30,258
Pool 995228
6.50%
11/01/38
31,325
8
Pool 995252
5.00%
12/01/23
8
79,766
Pool AA3303
5.50%
06/01/38
76,314
343,999
Pool AB0460
5.50%
02/01/37
339,566
5,443
Pool AB2133
4.00%
01/01/26
5,326
826,809
Pool AB2506
5.00%
03/01/41
785,235
847,754
Pool AB2959
4.50%
07/01/40
801,190
414,811
Pool AB8676
3.50%
05/01/42
361,889
3,304
Pool AC1232
5.00%
07/01/24
3,202
2,229
Pool AD0889
6.00%
09/01/24
2,222
6,225
Pool AD5222
4.50%
05/01/30
5,924
145,890
Pool AE0137
4.50%
03/01/36
135,381
2,439,594
Pool AE7733
5.00%
11/01/40
2,332,151
379,812
Pool AE9959
5.00%
03/01/41
360,636
187,845
Pool AH0979
3.50%
01/01/41
158,438
75,571
Pool AH1141
4.50%
12/01/40
69,819
See Notes to Financial Statements
Page 25
First Trust Low Duration Opportunities ETF (LMBS)
Portfolio of Investments (Continued)
October 31, 2023 
Principal
Value
Description
Stated
Coupon
Stated
Maturity
Value
U.S. GOVERNMENT AGENCY MORTGAGE-BACKED SECURITIES (Continued)
Pass-Through Securities (Continued)
Federal National Mortgage Association (Continued)
$102,099
Pool AI6093
4.50%
06/01/31
$95,599
19,097
Pool AI6581
4.50%
07/01/41
17,643
266,489
Pool AI9114
4.00%
06/01/42
236,931
1,154,775
Pool AI9124
4.00%
08/01/42
1,026,696
885,588
Pool AI9158
6.50%
01/01/41
926,039
56,578
Pool AL0212
5.50%
02/01/38
55,670
70
Pool AL0399
6.00%
08/01/24
70
9
Pool AL0446
6.00%
05/01/24
9
59,127
Pool AL2142
6.50%
09/01/38
60,072
41
Pool AL2589
5.50%
05/01/25
41
62,377
Pool AL2892
3.50%
12/01/42
54,582
368,634
Pool AL3093
3.50%
02/01/43
321,622
4
Pool AL4962
6.00%
05/01/24
4
432,228
Pool AL5890
4.50%
03/01/43
399,322
22
Pool AL6057
6.00%
08/01/24
22
8,098
Pool AL6948
5.00%
09/01/25
7,847
385,197
Pool AL7637
5.00%
01/01/42
373,395
880,977
Pool AL7905
4.50%
03/01/34
806,050
12,634,721
Pool AL9401
4.00%
02/01/46
11,216,705
6,554,062
Pool AL9566
3.50%
06/01/46
5,661,264
675,396
Pool AL9777
4.50%
01/01/47
619,741
9,361,205
Pool AN2973
2.84%
10/01/36
7,145,960
177,878
Pool AP1197
3.50%
09/01/42
156,312
106,326
Pool AP7963
4.00%
09/01/42
95,013
1,440,349
Pool AQ0411
3.50%
10/01/42
1,265,738
38,800
Pool AQ9715
3.00%
01/01/43
32,185
216,119
Pool AQ9999
3.00%
02/01/43
179,271
2,014,261
Pool AS1719
5.00%
02/01/44
1,909,727
300,047
Pool AS5236
4.00%
05/01/45
274,710
155,301
Pool AS7211
3.00%
04/01/46
128,854
178,401
Pool AS9990
4.50%
07/01/47
161,910
63,029
Pool AT0332
3.00%
04/01/43
51,828
60,149
Pool AY0013
4.50%
01/01/45
55,508
221,687
Pool BE3631
4.50%
05/01/47
202,651
10,027
Pool BH9428
4.50%
09/01/47
9,138
32,249
Pool BJ6232
5.00%
04/01/48
30,264
507,314
Pool BJ9100
4.50%
02/01/48
465,635
319,370
Pool BJ9111
4.50%
03/01/48
293,129
983,907
Pool BJ9124
4.50%
04/01/48
903,094
199,935
Pool BK4769
5.00%
08/01/48
188,184
6,000,000
Pool BL0516
4.09%
12/01/38
4,986,758
11,221,905
Pool BM3867
4.00%
02/01/46
9,972,546
4,036,228
Pool BM4785
4.50%
10/01/38
3,764,296
4,859,109
Pool BM5671
4.50%
01/01/49
4,463,418
24,280,660
Pool BM6732
4.00%
11/01/48
21,932,615
16,962,036
Pool BM7079
4.00%
10/01/48
14,857,116
7,427,989
Pool BM7129
3.00%
01/01/47
6,161,528
891,783
Pool BN4059
4.00%
12/01/48
771,217
4,224,291
Pool BV8046
4.50%
09/01/52
3,846,008
See Notes to Financial Statements
Page 26
First Trust Low Duration Opportunities ETF (LMBS)
Portfolio of Investments (Continued)
October 31, 2023 
Principal
Value
Description
Stated
Coupon
Stated
Maturity
Value
U.S. GOVERNMENT AGENCY MORTGAGE-BACKED SECURITIES (Continued)
Pass-Through Securities (Continued)
Federal National Mortgage Association (Continued)
$3,484,489
Pool CA2947
4.00%
12/01/48
$3,065,941
1,661,120
Pool FM1284
3.50%
02/01/46
1,449,379
1,502,445
Pool FM1285
4.00%
10/01/43
1,344,539
26,678,338
Pool FM2863
3.50%
09/01/48
22,936,947
76,842,908
Pool FM2972
4.00%
12/01/44
68,237,316
89,247,339
Pool FM3003
4.00%
05/01/49
79,067,405
6,197,315
Pool FM8218
4.00%
04/01/48
5,488,400
4,440,732
Pool FM9408
4.50%
06/01/46
4,065,291
12,894,771
Pool FS0045
3.00%
09/01/47
10,717,388
13,969,939
Pool FS0074
3.00%
01/01/47
11,784,094
36,218,746
Pool FS0742
3.50%
05/01/44
31,464,208
36,142,464
Pool FS1797
3.50%
07/01/46
31,688,619
9,006,981
Pool FS1884
4.00%
05/01/42
7,936,132
43,928,248
Pool FS2044
4.50%
07/01/44
40,346,898
26,203,934
Pool FS2127
3.50%
06/01/48
22,561,677
8,308,392
Pool FS2787
4.00%
10/01/48
7,380,126
16,033,745
Pool FS2796
3.50%
08/01/47
13,850,530
17,303,419
Pool FS2925
3.00%
08/01/48
14,565,543
1,747,795
Pool FS4013
4.00%
04/01/42
1,560,151
1,702,562
Pool FS4015
5.50%
03/01/49
1,671,338
57,538
Pool MA0096
4.50%
06/01/29
54,751
1,427
Pool MA0293
4.50%
01/01/30
1,358
22,921
Pool MA0295
5.00%
01/01/30
21,955
19,870
Pool MA0353
4.50%
03/01/30
18,906
2,551
Pool MA0777
5.00%
06/01/31
2,417
24,629
Pool MA1222
4.00%
10/01/32
23,249
44,903
Pool MA1228
3.00%
09/01/42
37,251
1,828
Pool MA2509
3.00%
01/01/46
1,472
148,661
Pool MA3101
4.50%
08/01/47
135,984
93,897
Pool MA3123
5.00%
08/01/47
88,237
16,375,000
Pool TBA (j)
4.00%
11/15/53
14,146,465
5,000,000
Pool TBA
6.50%
11/15/53
4,969,899
20,000,000
Pool TBA
3.50%
12/15/53
16,674,480
10,000,000
Pool TBA
4.50%
12/15/53
8,934,217
125,530,000
Pool TBA (j)
5.00%
12/15/53
115,693,548
111,503,000
Pool TBA (j)
5.50%
12/15/53
105,744,916
329,825,000
Pool TBA (j)
6.00%
12/15/53
320,853,866
45,000,000
Pool TBA
6.50%
12/15/53
44,700,967
Government National Mortgage Association
44,585
Pool 3149
6.00%
10/20/31
44,925
28,233
Pool 3172
6.00%
12/20/31
28,808
30,166
Pool 3227
6.00%
04/20/32
30,265
6,364
Pool 3474
6.00%
11/20/33
6,436
16,702
Pool 455986
5.25%
07/15/25
16,232
45,991
Pool 487108
6.00%
04/15/29
45,536
25,394
Pool 553144
5.50%
04/15/33
24,658
82,228
Pool 604338
5.00%
05/15/33
79,383
57,989
Pool 604897
5.00%
12/15/33
55,977
76,282
Pool 605389
5.00%
04/15/34
73,636
See Notes to Financial Statements
Page 27
First Trust Low Duration Opportunities ETF (LMBS)
Portfolio of Investments (Continued)
October 31, 2023 
Principal
Value
Description
Stated
Coupon
Stated
Maturity
Value
U.S. GOVERNMENT AGENCY MORTGAGE-BACKED SECURITIES (Continued)
Pass-Through Securities (Continued)
Government National Mortgage Association (Continued)
$185,305
Pool 615403
4.50%
08/15/33
$173,939
6,383
Pool 627123
5.50%
03/15/34
6,243
66,119
Pool 638704
5.50%
11/15/36
65,400
136,546
Pool 653143
4.90%
04/15/36
131,315
227,240
Pool 658324
5.50%
03/15/37
224,156
96,787
Pool 677190
5.00%
06/15/38
93,794
13,785
Pool 687833
6.00%
08/15/38
13,796
39,609
Pool 706840
4.50%
05/15/40
37,356
165,428
Pool 706855
4.50%
09/15/40
156,110
211,583
Pool 711483
4.00%
01/15/40
193,534
98,736
Pool 711543
4.00%
11/15/40
90,271
681,711
Pool 711563
4.50%
03/15/41
642,653
3,894,389
Pool 720225
4.50%
07/15/39
3,645,251
193,634
Pool 723216
4.50%
08/15/40
183,049
56,008
Pool 723248
5.00%
10/15/39
54,256
209,722
Pool 724230
5.00%
08/15/39
201,926
51,644
Pool 724267
5.00%
09/15/39
49,656
130,611
Pool 724340
4.50%
09/15/39
123,320
76,900
Pool 725272
4.50%
11/15/39
72,566
32,785
Pool 726394
4.50%
10/15/39
30,972
5,009
Pool 728921
4.50%
12/15/24
4,937
168,659
Pool 733595
4.50%
04/15/40
158,772
60,834
Pool 733733
5.00%
06/15/40
58,243
448,520
Pool 736317
4.25%
06/20/36
403,602
91,245
Pool 736617
4.00%
12/15/35
83,332
632,704
Pool 737673
4.50%
11/15/40
596,372
149,602
Pool 737996
4.00%
02/15/41
136,057
229,279
Pool 739341
3.50%
10/15/41
202,369
129,646
Pool 743673
4.50%
07/15/40
122,703
222,079
Pool 745478
5.00%
08/20/40
208,248
489,851
Pool 748939
4.00%
09/20/40
437,310
69,437
Pool 754384
4.50%
03/20/42
65,798
252,139
Pool 762905
4.50%
04/15/41
237,498
893,464
Pool 769102
4.50%
07/20/41
859,637
239,808
Pool 781623
5.00%
06/15/33
227,370
37,212
Pool 781697
6.00%
11/15/33
37,625
199,843
Pool 781824
5.50%
11/15/34
196,208
7,657
Pool 781862
5.50%
01/15/35
7,518
15,727
Pool 782070
7.00%
06/15/32
15,922
38,695
Pool 782810
4.50%
11/15/39
36,674
61,070
Pool 783091
5.50%
06/15/40
60,411
2,918
Pool 783220
5.50%
09/15/24
2,910
108,488
Pool 783375
5.00%
08/15/41
104,309
163,670
Pool 783760
5.00%
02/15/42
158,788
2,603,178
Pool 784063
5.00%
09/20/45
2,477,745
356,573
Pool 784343
5.00%
02/15/41
346,076
3,354,963
Pool 784752
4.00%
03/15/45
3,067,302
1,254,491
Pool 785020
3.00%
05/20/50
1,011,239
1,819,116
Pool AC0197
4.00%
12/20/42
1,646,069
See Notes to Financial Statements
Page 28
First Trust Low Duration Opportunities ETF (LMBS)
Portfolio of Investments (Continued)
October 31, 2023 
Principal
Value
Description
Stated
Coupon
Stated
Maturity
Value
U.S. GOVERNMENT AGENCY MORTGAGE-BACKED SECURITIES (Continued)
Pass-Through Securities (Continued)
Government National Mortgage Association (Continued)
$326,652
Pool AD0026
3.50%
06/20/33
$287,922
64,474
Pool AD0856
3.75%
08/20/33
58,000
34,428
Pool AG8899
4.00%
12/20/43
30,812
527,697
Pool AI6317
4.50%
06/20/44
482,958
392,282
Pool AK2389
4.50%
11/20/44
359,741
100,242
Pool AN4469
5.00%
12/15/40
95,598
167,490
Pool AR8421
5.00%
10/20/41
156,867
848,587
Pool BB1216
4.50%
06/20/47
778,147
352,782
Pool BB4731
4.00%
07/20/47
314,531
279,174
Pool BB4757
4.00%
08/20/47
252,042
160,957
Pool BB4769
4.00%
08/20/47
143,534
228,467
Pool BD0483
4.50%
11/20/47
209,506
373,184
Pool BF0415
5.00%
06/20/35
350,950
268,045
Pool BL6909
5.00%
03/20/49
251,563
111,115
Pool MA1017
6.00%
05/20/43
113,353
79,899
Pool MA1162
6.00%
07/20/43
81,512
10,216
Pool MA2215
3.50%
09/20/44
8,656
71,363
Pool MA2683
6.00%
03/20/45
72,784
72,665
Pool MA2759
6.00%
01/20/45
74,131
34,182
Pool MA2897
6.00%
03/20/45
34,872
151,352
Pool MA2966
6.00%
09/20/39
154,407
145,194
Pool MA3249
6.00%
04/20/40
148,088
307,457
Pool MA3459
6.00%
08/20/39
313,661
197,768
Pool MA4076
7.00%
01/20/39
202,107
2,013,419
Pool MA5714
6.00%
01/20/49
2,053,903
 
1,387,081,645
Total U.S. Government Agency Mortgage-Backed Securities
3,152,469,369
(Cost $3,518,871,021)
MORTGAGE-BACKED SECURITIES — 12.4%
Collateralized Mortgage Obligations — 7.1%
Arroyo Mortgage Trust
9,000,000
Series 2019-2, Class M1 (i)
4.76%
04/25/49
7,434,726
2,288,440
Series 2019-3, Class A3 (i)
3.42%
10/25/48
2,076,085
2,396,229
Series 2021-1R, Class A2 (i)
1.48%
10/25/48
1,879,489
3,308,234
Series 2021-1R, Class A3 (i)
1.64%
10/25/48
2,594,061
BRAVO Residential Funding Trust
1,501,868
Series 2021-NQM1, Class A2 (i)
1.26%
02/25/49
1,304,957
3,754,671
Series 2021-NQM1, Class A3 (i)
1.33%
02/25/49
3,233,996
2,192,463
Series 2021-NQM2, Class A1 (i)
0.97%
03/25/60
2,015,706
6,257,609
Series 2023-NQM1, Class A1, steps up to 6.76% on
01/01/27 (i) (k)
5.76%
01/25/63
6,124,717
Chase Home Lending Mortgage Trust
1,531,423
Series 2019-ATR2, Class A11, 1 Mo. CME Term SOFR + CSA
+ 0.90% (a) (i)
6.34%
07/25/49
1,463,984
CHL Mortgage Pass-Through Trust
29,528
Series 2004-8, Class 2A1
4.50%
06/25/19
17,495
CIM Trust
1,863,659
Series 2018-J1, Class A22 (i)
3.50%
03/25/48
1,551,123
1,308,216
Series 2019-INV1, Class A11 (i)
4.00%
02/25/49
1,177,087
See Notes to Financial Statements
Page 29
First Trust Low Duration Opportunities ETF (LMBS)
Portfolio of Investments (Continued)
October 31, 2023 
Principal
Value
Description
Stated
Coupon
Stated
Maturity
Value
MORTGAGE-BACKED SECURITIES (Continued)
Collateralized Mortgage Obligations (Continued)
Citigroup Global Markets Mortgage Securities VII, Inc.
$228
Series 2003-UP2, Class PO1, PO
(d)
12/25/18
$205
COLT Mortgage Loan Trust
10,523,989
Series 2022-5, Class A1 (i)
4.55%
04/25/67
9,775,739
Connecticut Avenue Securities Trust
5,000,000
Series 2019-R01, Class 2B1, 30 Day Average SOFR + CSA +
4.35% (a) (i)
9.79%
07/25/31
5,332,523
1,266,031
Series 2019-R01, Class 2M2, 30 Day Average SOFR + CSA +
2.45% (a) (i)
7.89%
07/25/31
1,267,870
4,000,000
Series 2021-R02, Class 2M2, 30 Day Average SOFR +
2.00% (a) (i)
7.32%
11/25/41
3,931,477
5,000,000
Series 2022-R02, Class 2M2, 30 Day Average SOFR +
3.00% (a) (i)
8.32%
01/25/42
5,006,630
Ellington Financial Mortgage Trust
5,428,357
Series 2022-2, Class A1 (i)
4.30%
04/25/67
4,903,690
6,384,672
Series 2023-1, Class A1, steps up to 6.73% on 01/01/27 (i) (k)
5.73%
02/25/68
6,254,388
Federal Home Loan Mortgage Corporation STACR Debt Notes
9,246,869
Series 2020-HQA5, Class M2, 30 Day Average SOFR +
2.60% (a) (i)
7.92%
11/25/50
9,365,740
Federal Home Loan Mortgage Corporation STACR REMIC Trust
774,120
Series 2020-DNA1, Class M2, 30 Day Average SOFR + CSA +
1.70% (a) (i)
7.14%
01/25/50
775,156
5,000,000
Series 2020-DNA2, Class B1, 30 Day Average SOFR + CSA +
2.50% (a) (i)
7.94%
02/25/50
5,038,544
8,764,999
Series 2020-HQA2, Class M2, 30 Day Average SOFR + CSA +
3.10% (a) (i)
8.54%
03/25/50
9,067,691
Flagstar Mortgage Trust
275,452
Series 2018-2, Class A4 (i)
3.50%
04/25/48
267,025
3,684,229
Series 2018-4, Class B1 (e) (i)
4.17%
07/25/48
3,189,984
1,402,022
Series 2019-2, Class A11 (i)
3.50%
12/25/49
1,185,090
15,617,589
Series 2021-9INV, Class A1 (i)
2.50%
09/25/41
12,823,704
GCAT Trust
5,954,041
Series 2021-NQM7, Class A1 (i)
1.92%
08/25/66
5,012,485
4,977,305
Series 2023-NQM3, Class A1 (i)
6.89%
08/25/68
4,972,228
GMACM Mortgage Loan Trust
723
Series 2003-J10, Class A1
4.75%
01/25/19
705
GS Mortgage-Backed Securities Trust
569,862
Series 2019-PJ3, Class A1 (i)
3.50%
03/25/50
498,771
3,344,238
Series 2021-PJ6, Class A8 (i)
2.50%
11/25/51
2,762,965
JP Morgan Mortgage Trust
4,166
Series 2004-S2, Class 5A1
5.50%
12/25/19
3,670
2,417,150
Series 2015-IVR2, Class A5 (e) (i)
6.90%
01/25/45
2,399,292
1,663,442
Series 2018-5, Class A1 (i)
3.50%
10/25/48
1,379,524
1,174,695
Series 2018-5, Class A13 (i)
3.50%
10/25/48
946,323
1,217,971
Series 2018-8, Class A7 (i)
4.00%
01/25/49
1,058,505
1,413,895
Series 2019-1, Class A5 (i)
4.00%
05/25/49
1,239,025
637,304
Series 2019-8, Class A15 (i)
3.50%
03/25/50
529,779
1,137,085
Series 2019-INV2, Class A15 (i)
3.50%
02/25/50
968,501
391
Series 2019-LTV2, Class A11, 1 Mo. CME Term SOFR + CSA +
0.90% (a) (i)
6.34%
12/25/49
391
3,965,165
Series 2020-INV1, Class A15 (i)
3.50%
08/25/50
3,349,086
See Notes to Financial Statements
Page 30
First Trust Low Duration Opportunities ETF (LMBS)
Portfolio of Investments (Continued)
October 31, 2023 
Principal
Value
Description
Stated
Coupon
Stated
Maturity
Value
MORTGAGE-BACKED SECURITIES (Continued)
Collateralized Mortgage Obligations (Continued)
JP Morgan Wealth Management
$10,000,000
Series 2020-ATR1, Class A5 (i)
3.00%
02/25/50
$7,685,522
Mello Mortgage Capital Acceptance
3,723,963
Series 2018-MTG2, Class A9 (i)
4.27%
10/25/48
3,331,972
MetLife Securitization Trust
3,511,025
Series 2018-1A, Class A (i)
3.75%
03/25/57
3,206,865
MFA Trust
8,404,111
Series 2022-INV1, Class A1, steps up to 4.91% on
03/25/26 (i) (k)
3.91%
04/25/66
7,787,825
New Residential Mortgage Loan Trust
4,714,495
Series 2015-2A, Class B1 (i)
4.50%
08/25/55
4,423,498
3,558,565
Series 2016-1A, Class A1 (i)
3.75%
03/25/56
3,239,353
8,350,077
Series 2018-3A, Class A1 (i)
4.50%
05/25/58
7,792,621
9,308,476
Series 2018-4A, Class A1S, 1 Mo. CME Term SOFR + CSA +
0.75% (a) (i)
6.19%
01/25/48
9,030,317
4,301,213
Series 2019-NQM5, Class A1 (i)
2.71%
11/25/59
3,814,784
OBX Trust
1,315,240
Series 2018-EXP1, Class 1A3 (i)
4.00%
04/25/48
1,135,822
552,407
Series 2018-EXP1, Class 2A1, 1 Mo. CME Term SOFR + CSA +
0.85% (a) (i)
6.29%
04/25/48
547,908
PRKCM Trust
8,358,944
Series 2021-AFC1, Class A1 (i)
1.51%
08/25/56
6,288,107
Provident Funding Mortgage Trust
1,201,793
Series 2019-1, Class A5 (i)
3.00%
12/25/49
948,103
2,558,138
Series 2020-1, Class A5 (i)
3.00%
02/25/50
2,014,581
RUN Trust
8,737,592
Series 2022-NQM1, Class A1 (i)
4.00%
03/25/67
7,900,562
Seasoned Credit Risk Transfer Trust
5,412,697
Series 2017-2, Class M1 (i)
4.00%
08/25/56
5,302,335
Sequoia Mortgage Trust
1,654,748
Series 2017-2, Class A19 (i)
3.50%
02/25/47
1,363,512
370,009
Series 2017-CH1, Class A13 (i)
4.00%
08/25/47
334,629
4,998,365
Series 2018-CH1, Class B1B (i)
4.45%
03/25/48
4,398,433
3,300,782
Series 2020-1, Class A19 (i)
3.50%
02/25/50
2,731,670
9,682,295
Series 2020-1, Class A7 (i)
3.50%
02/25/50
8,105,998
Starwood Mortgage Residential Trust
8,001,308
Series 2022-3, Class A1 (i)
4.16%
03/25/67
7,032,230
TIAA Bank Mortgage Loan Trust
652,819
Series 2018-3, Class A1 (i)
4.00%
11/25/48
571,426
Towd Point Mortgage Trust
11,895,453
Series 2019-1, Class A1 (i)
3.75%
03/25/58
11,045,576
Verus Securitization Trust
1,871,559
Series 2019-INV3, Class A2 (i)
2.95%
11/25/59
1,806,094
6,255,000
Series 2020-INV1, Class A3, steps up to 4.89% on
05/26/24 (i) (k)
3.89%
03/25/60
5,847,312
10,818,413
Series 2022-5, Class A1, steps up to 4.80% on 06/25/26 (i) (k)
3.80%
04/25/67
9,589,697
Vista Point Securitization Trust
5,743,000
Series 2020-1, Class M1 (i)
4.15%
03/25/65
5,166,581
Wells Fargo Mortgage Backed Securities Trust
320,600
Series 2019-1, Class A1 (i)
3.93%
11/25/48
290,901
See Notes to Financial Statements
Page 31
First Trust Low Duration Opportunities ETF (LMBS)
Portfolio of Investments (Continued)
October 31, 2023 
Principal
Value
Description
Stated
Coupon
Stated
Maturity
Value
MORTGAGE-BACKED SECURITIES (Continued)
Collateralized Mortgage Obligations (Continued)
WinWater Mortgage Loan Trust
$1,087,010
Series 2016-1, Class 1A18 (i)
3.50%
01/20/46
$907,077
1,424,419
Series 2016-1, Class 2A3 (i)
3.00%
12/20/30
1,308,915
3,473,272
Series 2016-1, Class B1 (e) (i)
3.77%
01/20/46
3,135,783
 
272,266,141
Commercial Mortgage-Backed Securities — 5.3%
BAMLL Commercial Mortgage Securities Trust
5,625,000
Series 2013-WBRK, Class A (e) (i)
3.53%
03/10/37
4,905,709
BBCMS Mortgage Trust
9,394,000
Series 2018-TALL, Class A, 1 Mo. CME Term SOFR + CSA +
0.87% (a) (i)
6.25%
03/15/37
8,703,934
Benchmark Mortgage Trust
141,411,899
Series 2023-V2, Class XA, IO (e)
0.99%
05/15/55
5,317,978
BPR Trust
4,641,431
Series 2021-WILL, Class A, 1 Mo. CME Term SOFR + CSA +
1.75% (a) (i)
7.20%
06/15/38
4,492,098
10,000,000
Series 2022-OANA, Class A, 1 Mo. CME Term SOFR + CSA +
1.90% (a) (i)
7.23%
04/15/37
9,793,697
BX Commercial Mortgage Trust
10,000,000
Series 2019-IMC, Class A, 1 Mo. CME Term SOFR + CSA +
1.00% (a) (i)
6.38%
04/15/34
9,915,868
CENT Trust
4,000,000
Series 2023-CITY, Class A, 1 Mo. CME Term SOFR +
2.62% (a) (i)
7.95%
09/15/28
4,022,478
CFCRE Commercial Mortgage Trust
76,091,693
Series 2017-C8, Class XA, IO (e)
1.48%
06/15/50
2,949,824
Citigroup Commercial Mortgage Trust
2,915,000
Series 2014-GC23, Class B
4.18%
07/10/47
2,737,242
87,382,743
Series 2016-P4, Class XA, IO (e)
1.89%
07/10/49
3,246,374
8,989,195
Series 2017-P7, Class A3
3.44%
04/14/50
8,204,751
COMM Mortgage Trust
344,758
Series 2012-CR3, Class AM (i)
3.42%
10/15/45
315,367
10,000,000
Series 2013-CR13, Class AM
4.45%
11/10/46
9,923,719
11,475,000
Series 2014-CR15, Class AM
4.43%
02/10/47
11,379,184
6,850,000
Series 2014-CR21, Class AM
3.99%
12/10/47
6,484,424
Credit Suisse Mortgage Trust
7,500,000
Series 2020-WEST, Class A (i)
3.04%
02/15/35
5,269,899
CSAIL Commercial Mortgage Trust
56,874,684
Series 2020-C19, Class XA, IO (e)
1.10%
03/15/53
2,843,791
FIVE Mortgage Trust
33,859,964
Series 2023-V1, Class XA, IO (a)
0.83%
02/10/56
996,587
Hilton USA Trust
4,250,000
Series 2016-HHV, Class A (i)
3.72%
11/05/38
3,923,560
JP Morgan Chase Commercial Mortgage Securities Trust
4,060,488
Series 2017-JP5, Class A4
3.46%
03/15/50
3,858,361
10,466,125
Series 2018-PHH, Class A, 1 Mo. CME Term SOFR + CSA +
1.21% (a) (i)
6.59%
06/15/35
9,256,031
5,000,000
Series 2020-ACE, Class A (i)
3.29%
01/10/37
4,757,491
See Notes to Financial Statements
Page 32
First Trust Low Duration Opportunities ETF (LMBS)
Portfolio of Investments (Continued)
October 31, 2023 
Principal
Value
Description
Stated
Coupon
Stated
Maturity
Value
MORTGAGE-BACKED SECURITIES (Continued)
Commercial Mortgage-Backed Securities (Continued)
Life Mortgage Trust
$5,250,000
Series 2022-BMR2, Class A1, 1 Mo. CME Term SOFR +
1.30% (a) (i)
6.63%
05/15/39
$5,143,436
MHC Commercial Mortgage Trust
5,843,980
Series 2021-MHC, Class A, 1 Mo. CME Term SOFR + CSA +
0.80% (a) (i)
6.25%
04/15/38
5,758,771
Morgan Stanley Bank of America Merrill Lynch Trust
8,015,000
Series 2014-C15, Class AS
4.26%
04/15/47
7,908,065
6,319,081
Series 2016-C31, Class A4
2.84%
11/15/49
5,788,432
Morgan Stanley Capital I Trust
7,527,000
Series 2018-MP, Class A (e) (i)
4.28%
07/11/40
5,995,551
One Bryant Park Trust
10,000,000
Series 2019-OBP, Class A (i)
2.52%
09/15/54
7,853,615
Queens Center Mortgage Trust
6,097,739
Series 2013-QCA, Class A (i)
3.28%
01/11/37
5,565,919
RBS Commercial Funding, Inc. Trust
7,045,000
Series 2013-GSP, Class A (e) (i)
3.83%
01/15/32
6,961,670
Ready Capital Mortgage Financing LLC
6,757,925
Series 2021-FL6, Class A, 1 Mo. CME Term SOFR + CSA +
0.95% (a) (i)
6.39%
07/25/36
6,587,479
RIAL 2022-FL8 Issuer Ltd
4,428,000
Series 2022-FL8, Class A, 1 Mo. CME Term SOFR +
2.25% (a) (i)
7.58%
01/19/37
4,349,124
VMC Finance LLC
2,983,500
Series 2021-HT1, Class A, 1 Mo. CME Term SOFR + CSA +
1.65% (a) (i)
7.10%
01/18/37
2,912,944
Wells Fargo Commercial Mortgage Trust
7,500,000
Series 2015-NXS2, Class B (e)
4.27%
07/15/58
6,945,970
5,450,000
Series 2020-SDAL, Class C, 1 Mo. CME Term SOFR + CSA +
1.74% (a) (i)
7.19%
02/15/37
5,334,603
WFLD Mortgage Trust
3,500,000
Series 2014-MONT, Class A (e) (i)
3.75%
08/10/31
2,914,747
 
203,318,693
Total Mortgage-Backed Securities
475,584,834
(Cost $516,056,483)
U.S. GOVERNMENT BONDS AND NOTES — 5.0%
3,289,150
U.S. Treasury Inflation Indexed Note (l)
0.63%
01/15/24
3,260,111
40,000,000
U.S. Treasury Note (m)
2.25%
03/31/24
39,474,235
60,000,000
U.S. Treasury Note (m)
2.50%
05/31/24
58,965,724
91,000,000
U.S. Treasury Note
4.63%
10/15/26
90,328,164
Total U.S. Government Bonds and Notes
192,028,234
(Cost $191,792,976)
ASSET-BACKED SECURITIES — 3.5%
American Credit Acceptance Receivables Trust
627,765
Series 2022-1, Class B (i)
1.68%
09/14/26
626,793
BMW Vehicle Owner Trust
7,500,000
Series 2023-A, Class A4
5.25%
11/26/29
7,396,065
CFMT LLC
4,052,000
Series 2021-EBO1, Class M1 (i)
1.65%
11/25/50
3,442,118
See Notes to Financial Statements
Page 33
First Trust Low Duration Opportunities ETF (LMBS)
Portfolio of Investments (Continued)
October 31, 2023 
Principal
Value
Description
Stated
Coupon
Stated
Maturity
Value
ASSET-BACKED SECURITIES (Continued)
Citibank Credit Card Issuance Trust
$10,000,000
Series 2017-A6, Class A6, 1 Mo. CME Term SOFR + CSA +
0.77% (a)
6.22%
05/14/29
$10,022,554
Corevest American Finance Trust
7,791,765
Series 2020-1, Class A1 (i)
1.83%
03/15/50
7,440,048
10,023,179
Series 2020-3, Class A (i)
1.36%
08/15/53
9,159,653
6,904,261
Series 2020-4, Class A (i)
1.17%
12/15/52
6,287,970
CWABS, Inc. Asset-Backed Certificates Trust
1,939,115
Series 2004-5, Class M1, 1 Mo. CME Term SOFR + CSA +
0.86% (a)
6.29%
08/25/34
1,927,867
Diamond Resorts Owner Trust
3,501,627
Series 2021-1A, Class A (i)
1.51%
11/21/33
3,215,675
FNA VI LLC
5,746,886
Series 2021-1A, Class A (i)
1.35%
01/10/32
5,277,222
GM Financial Consumer Automobile Receivables Trust
8,500,000
Series 2023-3, Class A3
5.45%
06/16/28
8,465,393
GSAMP Trust
3,521,602
Series 2006-SEA1, Class M2, 1 Mo. CME Term SOFR + CSA +
1.65% (a) (i)
4.37%
05/25/36
3,645,413
Hyundai Auto Receivables Trust
7,500,000
Series 2023-B, Class A3
5.48%
04/17/28
7,462,917
M360 Ltd.
5,000,000
Series 2021-CRE3, Class A, 1 Mo. CME Term SOFR + CSA +
1.50% (a) (i)
6.95%
11/22/38
4,933,273
OSCAR US Funding XIV LLC
1,619,488
Series 2022-1A, Class A2 (i)
1.60%
03/10/25
1,613,062
Pagaya AI Debt Trust
9,518,248
Series 2023-5, Class A (i)
7.18%
04/15/31
9,526,185
Sierra Timeshare Receivables Funding LLC
1,207,007
Series 2019-1A, Class A (i)
3.20%
01/20/36
1,188,116
2,743,580
Series 2020-2A, Class A (i)
1.33%
07/20/37
2,576,883
Tricon American Homes
9,346,446
Series 2020-SFR1, Class A (i)
1.50%
07/17/38
8,305,262
Verizon Master Trust
10,000,000
Series 2022-7, Class A1A, steps up to 5.98% on 11/20/24 (k)
5.23%
11/22/27
9,916,451
22,500,000
Series 2023-4, Class A1A
5.16%
06/20/29
22,317,253
Total Asset-Backed Securities
134,746,173
(Cost $137,833,062)
 
Shares
Description
Value
EXCHANGE-TRADED FUNDS — 0.0%
Capital Markets — 0.0%
17,000
First Trust Intermediate Government Opportunities ETF (n)
321,980
73,956
First Trust Long Duration Opportunities ETF (n)
1,436,965
Total Exchange-Traded Funds
1,758,945
(Cost $2,098,206)
 
See Notes to Financial Statements
Page 34
First Trust Low Duration Opportunities ETF (LMBS)
Portfolio of Investments (Continued)
October 31, 2023 
Principal
Value
Description
Stated
Coupon
Stated
Maturity
Value
U.S. TREASURY BILLS — 10.6%
$40,000,000
U.S. Treasury Bill
(d)
01/04/24
$39,623,467
20,000,000
U.S. Treasury Bill
(d)
01/11/24
19,791,240
15,000,000
U.S. Treasury Bill
(d)
02/01/24
14,796,258
40,000,000
U.S. Treasury Bill
(d)
02/29/24
39,292,667
50,000,000
U.S. Treasury Bill
(d)
03/21/24
48,958,412
50,000,000
U.S. Treasury Bill
(d)
04/04/24
48,856,606
20,000,000
U.S. Treasury Bill
(d)
04/18/24
19,500,488
70,000,000
U.S. Treasury Bill
(d)
05/16/24
67,990,299
35,000,000
U.S. Treasury Bill
(d)
06/13/24
33,868,515
75,000,000
U.S. Treasury Bill
(d)
09/05/24
71,663,605
Total U.S. Treasury Bills
404,341,557
(Cost $404,361,322)
 
Shares
Description
Value
MONEY MARKET FUNDS — 1.7%
65,375,733
Morgan Stanley Institutional Liquidity Funds - Treasury Portfolio - Institutional Class - 5.22% (o)
65,375,733
(Cost $65,375,733)
Total Investments — 115.6%
4,426,304,845
(Cost $4,836,388,803)
 
Number of
Contracts
Description
Notional
Amount
Exercise
Price
Expiration
Date
Value
PURCHASED OPTIONS — 0.0%
Call Options Purchased — 0.0%
100
2 Year Mid-Curve Options on 3 Months SOFR
Futures Call
$23,965,000
$96.75
12/15/23
6,250
100
2 Year Mid-Curve Options on 3 Months SOFR
Futures Call
23,962,500
96.75
03/15/24
24,375
120
2 Year Mid-Curve Options on 3 Months SOFR
Futures Call
28,750,500
96.75
06/14/24
46,500
644
U.S. 2-Year Treasury Futures Call
130,359,678
101.50
11/24/23
161,000
50
U.S. 10-Year Treasury Futures Call
5,308,593
108.00
11/24/23
12,500
Total Purchased Options
250,625
(Cost $786,373)
 
Principal
Value
Description
Stated
Coupon
Stated
Maturity
Value
U.S. GOVERNMENT AGENCY MORTGAGE-BACKED SECURITIES SOLD SHORT — (6.5)%
Federal National Mortgage Association
 
 
(128,455,000
)
Pool TBA (j)
4.50%
11/15/53
(114,704,275
)
(20,000,000
)
Pool TBA
5.00%
11/01/53
(18,439,063
)
(39,600,000
)
Pool TBA
3.00%
11/15/53
(31,689,674
)
(28,875,000
)
Pool TBA
3.50%
11/15/53
(24,046,710
)
(8,375,000
)
Pool TBA
4.00%
12/01/53
(7,240,449
)
(10,000,000
)
Pool TBA
3.00%
12/15/53
(8,012,209
)
(5,000,000
)
Pool TBA
5.50%
11/01/53
(4,742,578
)
(17,000,000
)
Pool TBA (j)
4.50%
11/15/38
(16,124,765
)
See Notes to Financial Statements
Page 35
First Trust Low Duration Opportunities ETF (LMBS)
Portfolio of Investments (Continued)
October 31, 2023 
Principal
Value
Description
Stated
Coupon
Stated
Maturity
Value
U.S. GOVERNMENT AGENCY MORTGAGE-BACKED SECURITIES SOLD SHORT (Continued)
Federal National Mortgage Association (Continued)
 
 
$(15,000,000
)
Pool TBA
4.50%
12/15/38
$(14,233,594
)
(10,000,000
)
Pool TBA
6.00%
11/01/53
(9,731,128
)
Total Investments Sold Short — (6.5)%
(248,964,445
)
(Proceeds $257,334,338)
 
Number of
Contracts
Description
Notional
Amount
Exercise
Price
Expiration
Date
Value
WRITTEN OPTIONS — (0.7)%
Call Options Written — (0.0)%
(500
)
3 Month SOFR Futures Call
$(118,531,250
)
$96.50
06/14/24
(121,875
)
(195
)
1 Year Mid-Curve Options on 3 Months SOFR
Futures Call
(46,683,000
)
96.75
06/14/24
(93,844
)
(275
)
U.S. 2-Year Treasury Futures Call
(55,666,011
)
102.00
11/24/23
(25,781
)
(1,350
)
U.S. 5-Year Treasury Futures Call
(141,486,345
)
107.00
02/23/24
(653,906
)
(50
)
U.S. 10-Year Treasury Futures Call
(5,308,594
)
112.00
11/24/23
(1,563
)
(75
)
U.S. 10-Year Treasury Futures Call
(7,962,890
)
114.00
11/24/23
(1,172
)
(25
)
U.S. Treasury Long Bond Futures Call
(2,735,938
)
114.00
11/24/23
(10,156
)
(402
)
U.S. Treasury Long Bond Futures Call
(43,993,875
)
116.00
11/24/23
(69,094
)
(200
)
U.S. Treasury Long Bond Futures Call
(21,887,500
)
128.00
11/24/23
(0
)
(100
)
U.S. Treasury Long Bond Futures Call
(10,943,750
)
130.00
11/24/23
(0
)
(525
)
U.S. Treasury Long Bond Futures Call
(57,454,687
)
132.00
11/24/23
(0
)
(200
)
U.S. Treasury Long Bond Futures Call
(21,875,000
)
116.00
12/22/23
(131,250
)
(175
)
U.S. Treasury Long Bond Futures Call
(19,140,625
)
116.00
02/23/24
(287,109
)
(20
)
Ultra U.S. Treasury Long Bond Futures Call
(2,251,250
)
118.00
11/24/23
(13,125
)
(10
)
Ultra U.S. Treasury Long Bond Futures Call
(1,125,625
)
124.00
11/24/23
(1,406
)
(5
)
Ultra U.S. Treasury Long Bond Futures Call
(562,813
)
135.00
11/24/23
(78
)
Total Call Options Written
(1,410,359
)
(Premiums received $3,198,884)
Put Options Written — (0.7)%
(100
)
3 Month SOFR Futures Put
(23,706,250
)
94.50
06/14/24
(45,000
)
(100
)
2 Year Mid-Curve Options on 3 Months SOFR
Futures Put
(23,965,000
)
96.75
12/15/23
(228,125
)
(100
)
2 Year Mid-Curve Options on 3 Months SOFR
Futures Put
(23,962,500
)
96.75
03/15/24
(246,250
)
(75
)
U.S. 2-Year Treasury Futures Put
(15,181,640
)
101.00
11/24/23
(18,750
)
(644
)
U.S. 2-Year Treasury Futures Put
(130,359,678
)
101.50
11/24/23
(533,313
)
(555
)
U.S. 2-Year Treasury Futures Put
(112,344,132
)
102.00
11/24/23
(927,891
)
(961
)
U.S. 2-Year Treasury Futures Put
(194,527,407
)
102.50
11/24/23
(2,522,625
)
(1,136
)
U.S. 2-Year Treasury Futures Put
(229,951,233
)
102.63
11/24/23
(3,248,251
)
(400
)
U.S. 5-Year Treasury Futures Put
(41,790,624
)
103.00
11/24/23
(37,500
)
(425
)
U.S. 5-Year Treasury Futures Put
(44,402,538
)
105.00
11/24/23
(368,555
)
(1,070
)
U.S. 5-Year Treasury Futures Put
(111,789,919
)
107.00
11/24/23
(2,750,235
)
(150
)
U.S. 5-Year Treasury Futures Put
(15,671,484
)
107.25
11/24/23
(421,875
)
(625
)
U.S. 5-Year Treasury Futures Put
(65,297,850
)
107.50
11/24/23
(1,909,180
)
(25
)
U.S. 10-Year Treasury Futures Put
(2,654,297
)
106.00
11/24/23
(19,531
)
(825
)
U.S. 10-Year Treasury Futures Put
(87,591,793
)
108.00
11/24/23
(1,714,453
)
(597
)
U.S. Treasury Long Bond Futures Put
(65,334,187
)
116.00
11/24/23
(4,011,094
)
(625
)
U.S. Treasury Long Bond Futures Put
(68,398,437
)
122.00
11/24/23
(7,851,563
)
See Notes to Financial Statements
Page 36
First Trust Low Duration Opportunities ETF (LMBS)
Portfolio of Investments (Continued)
October 31, 2023 
Number of
Contracts
Description
Notional
Amount
Exercise
Price
Expiration
Date
Value
WRITTEN OPTIONS (Continued)
Put Options Written (Continued)
(15
)
Ultra U.S. Treasury Long Bond Futures Put
$(1,688,438
)
$110.00
11/24/23
$(21,563
)
(30
)
Ultra U.S. Treasury Long Bond Futures Put
(3,376,875
)
112.00
11/24/23
(67,031
)
Total Put Options Written
(26,942,785
)
(Premiums received $11,367,333)
Total Written Options
(28,353,144
)
(Premiums received $14,566,217)
Net Other Assets and Liabilities — (8.4)%
(321,612,405
)
Net Assets — 100.0%
$3,827,625,476
Futures Contracts at October 31, 2023 (See Note 2D - Futures Contracts in the Notes to Financial Statements):
 
Futures Contracts
Position
Number of
Contracts
Expiration
Date
Notional
Value
Unrealized
Appreciation
(Depreciation)/
Value
U.S. 2-Year Treasury Notes
Short
380
Dec-2023
$(76,920,313
)
$59,165
U.S. 5-Year Treasury Notes
Short
615
Dec-2023
(64,253,086
)
(44,026
)
U.S. 10-Year Treasury Notes
Short
1,448
Dec-2023
(153,736,875
)
5,188,721
U.S. Treasury Long Bond Futures
Short
653
Dec-2023
(71,462,688
)
5,756,033
Ultra 10-Year U.S. Treasury Notes
Short
8,236
Dec-2023
(896,308,437
)
47,736,118
Ultra U.S. Treasury Bond Futures
Short
1,992
Dec-2023
(224,224,500
)
17,121,680
 
$(1,486,905,899
)
$75,817,691
 
(a)
Floating or variable rate security.
(b)
Inverse floating rate security.
(c)
Weighted Average Coupon security. Coupon is based on the blended interest rate of the underlying holdings, which may have
different coupons. The coupon may change in any period.
(d)
Zero coupon security.
(e)
Collateral Strip Rate security. Coupon is based on the weighted net interest rate of the investment’s underlying collateral. The
interest rate resets periodically.
(f)
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 (the “Advisor”).
(g)
This security is fair valued by the Advisor’s Pricing Committee in accordance with procedures approved by the Trust’s Board of
Trustees, and in accordance with provisions of the Investment Company Act of 1940 and rules thereunder, as amended. At
October 31, 2023, securities noted as such are valued at $7,195,881 or 0.2% of net assets.
(h)
This security’s value was determined using significant unobservable inputs (see Note 2A- Portfolio Valuation in the Notes to
Financial Statements).
(i)
This security, sold within the terms of a private placement memorandum, is exempt from registration upon resale under
Rule 144A of the Securities Act of 1933, as amended, and may be resold in transactions exempt from registration, normally to
qualified institutional buyers. Pursuant to procedures adopted by the Trust’s Board of Trustees, this security has been determined
to be liquid by the Advisor. Although market instability can result in periods of increased overall market illiquidity, liquidity for
each security is determined based on security specific factors and assumptions, which require subjective judgment. At
October 31, 2023, securities noted as such amounted to $476,467,667 or 12.4% of net assets.
(j)
All or a portion of this security is part of a mortgage dollar roll agreement (see Note 2I - Mortgage Dollar Rolls and TBA
Transactions in the Notes to Financial Statements).
(k)
Step-up security. A security where the coupon increases or steps up at a predetermined date.
(l)
Security whose principal value is adjusted in accordance with changes to the country’s Consumer Price Index. Interest is
calculated on the basis of the current adjusted principal value.
(m)
All or a portion of this security is segregated as collateral for open futures and options contracts. At October 31, 2023, the
segregated value of these securities amounts to $78,702,841.
See Notes to Financial Statements
Page 37
First Trust Low Duration Opportunities ETF (LMBS)
Portfolio of Investments (Continued)
October 31, 2023 
(n)
Investment in an affiliated fund.
(o)
Rate shown reflects yield as of October 31, 2023.
 
Abbreviations throughout the Portfolio of Investments:
CME
–  Chicago Mercantile Exchange
CSA
–  Credit Spread Adjustment
IO
–  Interest-Only Security - Principal amount shown represents par value on which interest payments are based
LIBOR
–  London Interbank Offered Rate
PO
–  Principal-Only Security
REMIC
–  Real Estate Mortgage Investment Conduit
SOFR
–  Secured Overnight Financing Rate
STRIPS
–  Separate Trading of Registered Interest and Principal of Securities
TBA
–  To-Be-Announced Security
Valuation Inputs
A summary of the inputs used to value the Fund’s investments as of October 31, 2023 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements):
 
ASSETS TABLE
 
Total
Value at
10/31/2023
Level 1
Quoted
Prices
Level 2
Significant
Observable
Inputs
Level 3
Significant
Unobservable
Inputs
U.S. Government Agency Mortgage-Backed
Securities
$3,152,469,369
$—
$3,145,273,488
$7,195,881
Mortgage-Backed Securities
475,584,834
—
475,584,834
—
U.S. Government Bonds and Notes
192,028,234
—
192,028,234
—
Asset-Backed Securities
134,746,173
—
134,746,173
—
Exchange-Traded Funds*
1,758,945
1,758,945
—
—
U.S. Treasury Bills
404,341,557
—
404,341,557
—
Money Market Funds
65,375,733
65,375,733
—
—
Total Investments
4,426,304,845
67,134,678
4,351,974,286
7,195,881
Purchased Options
250,625
250,625
—
—
Futures Contracts**
75,861,717
75,861,717
—
—
Total
$4,502,417,187
$143,247,020
$4,351,974,286
$7,195,881
 
LIABILITIES TABLE
 
Total
Value at
10/31/2023
Level 1
Quoted
Prices
Level 2
Significant
Observable
Inputs
Level 3
Significant
Unobservable
Inputs
U.S. Government Agency Mortgage-Backed
Securities Sold Short
$(248,964,445
)
$—
$(248,964,445
)
$—
Written Options
(28,353,144
)
(28,353,144
)
—
—
Futures Contracts**
(44,026
)
(44,026
)
—
—
Total
$(277,361,615
)
$(28,397,170
)
$(248,964,445
)
$—
 
*
See Portfolio of Investments for industry breakout.
**
Includes cumulative appreciation/depreciation on futures contracts as reported in the Futures Contracts table. Only the current
day’s variation margin is presented on the Statement of Assets and Liabilities.
Level 3 investments are fair valued by the Advisor’s Pricing Committee and are footnoted in the Portfolio of Investments. All Level 3 values are based on unobservable inputs.
See Notes to Financial Statements
Page 38
First Trust Low Duration Opportunities ETF (LMBS)
Statement of Assets and Liabilities
October 31, 2023 
 
ASSETS:
Investments, at value - Unaffiliated
$4,424,545,900
Investments, at value - Affiliated
1,758,945
Total investments, at value
4,426,304,845
Options contracts purchased, at value
250,625
Cash
8,855,197
Cash segregated as collateral for open futures and written options contracts
286,607
Receivables:
Investment securities sold
1,959,286,047
Interest
16,967,880
Dividends
394,709
Total Assets
6,412,345,910
 
LIABILITIES:
Investments sold short, at value
248,964,445
Options contracts written, at value
28,353,144
Payables:
Investment securities purchased
2,280,636,854
Distributions to shareholders
17,117,500
Capital shares purchased
7,011,947
Investment advisory fees
2,165,162
Variation margin
471,382
Total Liabilities
2,584,720,434
NET ASSETS
$3,827,625,476
 
NET ASSETS consist of:
Paid-in capital
$4,281,345,758
Par value
818,500
Accumulated distributable earnings (loss)
(454,538,782
)
NET ASSETS
$3,827,625,476
NET ASSET VALUE, per share
$46.76
Number of shares outstanding (unlimited number of shares authorized, par value $0.01 per share)
81,850,002
Investments, at cost - Unaffiliated
$4,834,290,597
Investments, at cost - Affiliated
$2,098,206
Total investments, at cost
$4,836,388,803
Premiums paid on options contracts purchased
$786,373
Investments sold short, proceeds
$257,334,338
Premiums received on options contracts written
$14,566,217
See Notes to Financial Statements
Page 39
First Trust Low Duration Opportunities ETF (LMBS)
Statement of Operations
For the Year Ended October 31, 2023 
 
INVESTMENT INCOME:
Interest
$186,241,358
Dividends - Unaffiliated
1,838,542
Dividends - Affiliated
44,492
Total investment income
188,124,392
 
EXPENSES:
Investment advisory fees
28,530,503
Total expenses
28,530,503
NET INVESTMENT INCOME (LOSS)
159,593,889
 
NET REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) on:
Investments - Unaffiliated
(169,577,983
)
Investments - Affiliated
(42,307
)
Investments sold short
11,518,250
Purchased options contracts
(6,161,443
)
Written options contracts
31,179,376
Futures contracts
131,918,646
Net realized gain (loss)
(1,165,461
)
Net change in unrealized appreciation (depreciation) on:
Investments - Unaffiliated
20,240,699
Investments - Affiliated
(200,644
)
Investments sold short
4,551,837
Purchased options contracts
(573,839
)
Written options contracts
(12,830,477
)
Futures contracts
(13,551,104
)
Net change in unrealized appreciation (depreciation)
(2,363,528
)
NET REALIZED AND UNREALIZED GAIN (LOSS)
(3,528,989
)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS
$156,064,900
See Notes to Financial Statements
Page 40
First Trust Low Duration Opportunities ETF (LMBS)
Statements of Changes in Net Assets
 
 
Year
Ended
10/31/2023 
Year
Ended
10/31/2022 
OPERATIONS:
Net investment income (loss)
$159,593,889
$93,545,648
Net realized gain (loss)
(1,165,461
)
(14,952,412
)
Net change in unrealized appreciation (depreciation)
(2,363,528
)
(363,022,517
)
Net increase (decrease) in net assets resulting from operations
156,064,900
(284,429,281
)
 
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment operations
(161,397,004
)
(108,879,377
)
 
SHAREHOLDER TRANSACTIONS:
Proceeds from shares sold
80,900,132
116,467,481
Cost of shares redeemed
(1,111,189,614
)
(1,640,879,473
)
Net increase (decrease) in net assets resulting from shareholder transactions
(1,030,289,482
)
(1,524,411,992
)
Total increase (decrease) in net assets
(1,035,621,586
)
(1,917,720,650
)
 
NET ASSETS:
Beginning of period
4,863,247,062
6,780,967,712
End of period
$3,827,625,476
$4,863,247,062
 
CHANGES IN SHARES OUTSTANDING:
Shares outstanding, beginning of period
103,550,002
134,550,002
Shares sold
1,650,000
2,350,000
Shares redeemed
(23,350,000
)
(33,350,000
)
Shares outstanding, end of period
81,850,002
103,550,002
See Notes to Financial Statements
Page 41
First Trust Low Duration Opportunities ETF (LMBS)
Financial Highlights
For a share outstanding throughout each period
 
 
Year Ended October 31,
 
2023
2022
2021
2020
2019
Net asset value, beginning of period
$46.97
$50.40
$51.45
$51.87
$50.78
Income from investment operations:
Net investment income (loss)
1.72
 (a)
0.85
0.39
0.87
1.24
Net realized and unrealized gain (loss)
(0.17
)
(3.32
)
(0.40
)
(0.10
)
1.21
Total from investment operations
1.55
(2.47
)
(0.01
)
0.77
2.45
Distributions paid to shareholders from:
Net investment income
(1.76
)
(0.69
)
(0.36
)
(0.99
)
(1.23
)
Net realized gain
—
(0.27
)
—
—
(0.05
)
Return of capital
—
—
(0.68
)
(0.20
)
(0.08
)
Total distributions
(1.76
)
(0.96
)
(1.04
)
(1.19
)
(1.36
)
Net asset value, end of period
$46.76
$46.97
$50.40
$51.45
$51.87
Total return (b)
3.29
%
(4.96
)%
(0.02
)%
1.50
%
4.88
%
 
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000’s)
$3,827,625
$4,863,247
$6,780,968
$6,389,742
$3,765,469
Ratio of total expenses to average net assets (c)
0.64
%
0.65
%
0.65
%
0.65
%
0.65
%
Ratio of net investment income (loss) to average net
assets
3.60
%
1.66
%
0.75
%
1.57
%
2.41
%
Portfolio turnover rate (d) (e)
646
%
831
%
495
%
434
%
373
%
 
(a)
Based on average shares outstanding.
(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)
The Fund indirectly bears its proportionate share of fees and expenses incurred by the underlying funds in which the Fund invests. This ratio
does not include these indirect fees and expenses.
(d)
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)
The portfolio turnover rate not including mortgage dollar rolls was 556%, 641%, 368%, 245%, and 246% for the years ended October 31, 2023,
2022, 2021, 2020, and 2019 respectively.
See Notes to Financial Statements
Page 42
Notes to Financial Statements
First Trust Low Duration Opportunities ETF (LMBS)
October 31, 2023 
1. Organization
First Trust Exchange-Traded Fund IV (the “Trust”) is an open-end management investment company organized as a Massachusetts business trust on September 15, 2010, and is registered with the Securities and Exchange Commission under the Investment Company Act of 1940, as amended (the “1940 Act”).
The Trust currently consists of eighteen exchange-traded funds that are offering shares. This report covers the First Trust Low Duration Opportunities ETF (the “Fund”), a diversified series of the Trust, which trades under the ticker “LMBS” on Nasdaq, Inc. (“Nasdaq”). The Fund represents a separate series of shares of beneficial interest in the Trust. Unlike conventional mutual funds, the Fund issues and redeems shares on a continuous basis, at net asset value (“NAV”), only in large blocks of shares known as “Creation Units.” 
The Fund is an actively managed exchange-traded fund (“ETF”). The Fund’s primary investment objective is to generate current income. The Fund’s secondary investment objective is to provide capital appreciation. The Fund seeks to achieve its investment objectives by investing, under normal market conditions, at least 60% of its net assets (including investment borrowings) in mortgage-related debt securities and other mortgage-related instruments (collectively, “Mortgage-Related Investments”). The Fund normally expects to invest in Mortgage-Related Investments tied to residential and commercial mortgages. Mortgage-Related Investments consist of: (1) residential mortgage-backed securities (RMBS); (2) commercial mortgage-backed securities (CMBS); (3) stripped mortgage-backed securities (SMBS), which are mortgage-backed securities where mortgage payments are divided up between paying the loan’s principal and paying the loan’s interests; and (4) collateralized mortgage obligations (CMOs) and real estate mortgage investment conduits (REMICs) where they are divided into multiple classes with each class being entitled to a different share of the principal and/or interest payments received from the pool of underlying assets. The Fund may also invest in investment companies, including ETFs, that invest primarily in Mortgage-Related Investments. The Fund will limit its investments in Mortgage-Related Investments that are neither issued nor guaranteed by Government Entities(1). to 20% of its net assets (including investment borrowings). The Fund may invest, without limitation, in mortgage dollar rolls. The Fund intends to enter into mortgage dollar rolls only with high quality securities dealers and banks, as determined by the Fund’s investment advisor, First Trust Advisors L.P. (“First Trust” or the “Advisor”). The Fund may also invest in to-be-announced transactions (“TBA Transactions”). Further, the Fund may enter into short sales as part of its overall portfolio management strategies or to offset a potential decline in the value of a security; however, the Fund does not expect, under normal market conditions, to engage in short sales with respect to more than 30% of the value of its net assets (including investment borrowings). Although the Fund intends to invest primarily in investment grade securities, the Fund may invest up to 20% of its net assets (including investment borrowings) in securities of any credit quality, including securities that are below investment grade, which are also known as high yield securities, or commonly referred to as “junk” bonds, or unrated securities that have not been judged by the Advisor to be of comparable quality to rated investment grade securities. In the case of a split rating between one or more of the nationally recognized statistical rating organizations, the Fund will consider the highest rating. The Fund targets an estimated effective duration of three years or less.
2. Significant Accounting Policies
The Fund is considered an investment company and follows accounting and reporting guidance under Financial Accounting Standards Board Accounting Standards Codification Topic 946, “Financial Services-Investment Companies.” The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of the financial statements. The preparation of the financial statements in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.
A. Portfolio Valuation
The Fund’s NAV is determined daily as of the close of regular trading on the New York Stock Exchange (“NYSE”), normally 4:00 p.m. Eastern time, on each day the NYSE is open for trading. If the NYSE closes early on a valuation day, the NAV is determined as of that time. Domestic debt securities and foreign securities are priced using data reflecting the earlier closing of the principal markets for those securities. The Fund’s NAV is calculated by dividing the value of all assets of the Fund (including accrued interest and dividends), less all liabilities (including accrued expenses and dividends declared but unpaid), by the total number of shares outstanding.
(1)
“Government Entities” means the U.S. government, its agencies and instrumentalities, and U.S. government-sponsored entities.
Page 43
Notes to Financial Statements (Continued)
First Trust Low Duration Opportunities ETF (LMBS)
October 31, 2023 
The Fund’s investments are valued daily at market value or, in the absence of market value with respect to any portfolio securities, at fair value. Market value prices represent readily available market quotations such as last sale or official closing prices from a national or foreign exchange (i.e., a regulated market) and are primarily obtained from third-party pricing services. Fair value prices represent any prices not considered market value prices and are either obtained from a third-party pricing service or are determined by the Advisor’s Pricing Committee in accordance with valuation procedures approved by the Trust’s Board of Trustees, and in accordance with provisions of the 1940 Act and rules thereunder. Investments valued by the Advisor’s Pricing Committee, if any, are footnoted as such in the footnotes to the Portfolio of Investments. The Fund’s investments are valued as follows:
U.S. government securities, mortgage-backed securities, asset-backed securities, and other debt securities are fair valued on the basis of valuations provided by a third-party pricing service approved by the Advisor’s Pricing Committee, which may use the following valuation inputs when available:
 1)
benchmark yields;
 2)
reported trades;
 3)
broker/dealer quotes;
 4)
issuer spreads;
 5)
benchmark securities;
 6)
bids and offers; and
 7)
reference data including market research publications.
Pricing services generally value fixed-income securities assuming orderly transactions of an institutional round lot size, but a Fund may hold or transact in such securities in smaller, odd lot sizes. Odd lots may trade at lower prices than institutional round lots.
Equity securities traded in an over-the-counter market are valued at the close price or the last trade price.
Common stocks, ETFs and other equity securities listed on any national or foreign exchange (excluding Nasdaq and the London Stock Exchange Alternative Investment Market (“AIM”)) are valued at the last sale price on the exchange on which they are principally traded or, for Nasdaq and AIM securities, the official closing price. Securities traded on more than one securities exchange are valued at the last sale price or official closing price, as applicable, at the close of the securities exchange representing the primary exchange for such securities.
Shares of open-end funds are valued based on NAV per share.
Exchange-traded futures contracts are valued at the end of the day settlement price.
Exchange-traded options contracts are valued at the closing price in the market where such contracts are principally traded. If no closing price is available, exchange-traded options contracts are valued at the mean of their most recent bid and ask price, if both are available. Options contracts traded in the over-the-counter market may be valued as follows, depending on the market in which the investment trades: (1) the mean of the most recent bid and ask price, if available; or (2) a price based on the equivalent exchange-traded option.
Fixed income and other debt securities having a remaining maturity of sixty days or less when purchased are fair valued at cost adjusted for amortization of premiums and accretion of discounts (amortized cost), provided the Advisor’s Pricing Committee has determined that the use of amortized cost is an appropriate reflection of fair value given market and issuer specific conditions existing at the time of the determination. Factors that may be considered in determining the appropriateness of the use of amortized cost include, but are not limited to, the following:
 1)
the credit conditions in the relevant market and changes thereto;
 2)
the liquidity conditions in the relevant market and changes thereto;
 3)
the interest rate conditions in the relevant market and changes thereto (such as significant changes in interest rates);
 4)
issuer-specific conditions (such as significant credit deterioration); and
 5)
any other market-based data the Advisor’s Pricing Committee considers relevant. In this regard, the Advisor’s Pricing Committee may use last-obtained market-based data to assist it when valuing portfolio securities using amortized cost.
Certain securities may not be able to be priced by pre-established pricing methods. Such securities may be valued by the Advisor’s Pricing Committee at fair value. These securities generally include, but are not limited to, restricted securities (securities which may
Page 44
Notes to Financial Statements (Continued)
First Trust Low Duration Opportunities ETF (LMBS)
October 31, 2023 
not be publicly sold without registration under the Securities Act of 1933, as amended) for which a third-party pricing service is unable to provide a market price; securities whose trading has been formally suspended; a security whose market or fair value price is not available from a pre-established pricing source; a security with respect to which an event has occurred that is likely to materially affect the value of the security after the market has closed but before the calculation of the Fund’s NAV or make it difficult or impossible to obtain a reliable market quotation; and a security whose price, as provided by the third-party pricing service, does not reflect the security’s fair value. As a general principle, the current fair value of a security would appear to be the amount which the owner 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 most recent price provided by a pricing service;
 2)
available market prices for the fixed-income security;
 3)
the fundamental business data relating to the borrower/issuer;
 4)
an evaluation of the forces which influence the market in which these securities are purchased and sold;
 5)
the type, size and cost of a security;
 6)
the financial statements of the borrower/issuer or the financial condition of the country of issue;
 7)
the credit quality and cash flow of the borrower/issuer, or country of issue, based on the Pricing Committee’s, sub-advisor’s or portfolio manager’s analysis, as applicable, or external analysis;
 8)
the information as to any transactions in or offers for the security;
 9)
the price and extent of public trading in similar securities of the borrower/issuer, or comparable companies;
10)
the coupon payments;
11)
the quality, value and salability of collateral, if any, securing the security;
12)
the business prospects of the borrower/issuer, including any ability to obtain money or resources from a parent or affiliate and an assessment of the borrower’s/issuer’s management (for corporate debt only);
13)
the prospects for the borrower’s/issuer’s industry, and multiples (of earnings and/or cash flows) being paid for similar businesses in that industry (for corporate debt only);
14)
other relevant factors.
The Fund is subject to fair value accounting standards that define fair value, establish the framework for measuring fair value and provide a three-level hierarchy for fair valuation based upon the inputs to the valuation as of the measurement date. The three levels of the fair value hierarchy are as follows:
•  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.
•  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.
•  Level 3 – Level 3 inputs are unobservable inputs. Unobservable inputs may reflect the reporting entity’s own assumptions about the assumptions that market participants would use in pricing the investment.
The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in those investments. A summary of the inputs used to value the Fund’s investments as of October 31, 2023, is included with the 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 is recorded daily on the accrual basis. Amortization of premiums and accretion of discounts are recorded using the effective interest method.
Page 45
Notes to Financial Statements (Continued)
First Trust Low Duration Opportunities ETF (LMBS)
October 31, 2023 
The United Kingdom’s Financial Conduct Authority (the “FCA”), which regulates the London Interbank Offered Rates (“LIBOR”), ceased making LIBOR available as a reference rate over a phase-out period that began December 31, 2021. The overnight and 12-month USD LIBOR settings permanently ceased as of June 30, 2023. The FCA announced that the 1-, 3- and 6-month USD LIBOR settings will continue to be published using a synthetic methodology to serve as a fallback for non-U.S. contracts until September 2024. In response to the discontinuation of LIBOR, investors have added fallback provisions to existing contracts for investments whose value is tied to LIBOR, with most fallback provisions requiring the adoption of the Secured Overnight Financing Rate (“SOFR”) as a replacement rate. There is no assurance that any alternative reference rate, including 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. At this time, it is not possible to predict the full impact of the elimination of LIBOR and the establishment of an alternative reference rate on the Fund or its investments.
The Fund invests in interest-only securities. For these securities, if there is a change in the estimated cash flows, based on an evaluation of current information, then the estimated yield is adjusted. Additionally, if the evaluation of current information indicates a permanent impairment of the security, the cost basis of the security is written down and a loss is recognized. Debt obligations may be placed on non-accrual status and the related interest income may be reduced by ceasing current accruals and writing off interest receivables when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is reasonably assured.
Securities purchased or sold on a when-issued, delayed-delivery or forward purchase commitment basis may have extended settlement periods. The value of the security so purchased is subject to market fluctuations during this period. The Fund maintains liquid assets with a current value at least equal to the amount of its when-issued, delayed-delivery or forward purchase commitments until payment is made. At October 31, 2023, the Fund had no when-issued and delayed-delivery securities. At October 31, 2023, the Fund held $641,040,228 of forward purchase commitments.
C. Short Sales
Short sales are utilized to manage interest rate and spread risk, and are transactions in which securities or other instruments (such as options, forwards, futures or other derivative contracts) are sold that are not currently owned in the Fund’s portfolio. When the Fund engages in a short sale, the Fund must borrow the security sold short and deliver the security to the counterparty. Short selling allows the Fund to profit from a decline in a market price to the extent such decline exceeds the transaction costs and the costs of borrowing the securities. The Fund is charged a fee or premium to borrow the securities sold short and is obligated to repay the lenders of the securities. Any dividends or interest that accrues on the securities during the period of the loan are due to the lenders. A gain, limited to the price at which the security was sold short, or a loss, unlimited in size, will be recognized upon the termination of the short sale; which is effected by the Fund purchasing the security sold short and delivering the security to the lender. Any such gain or loss may be offset, completely or in part, by the change in the value of the long portion of the Fund’s portfolio. The Fund is subject to the risk it may be unable to reacquire a security to terminate a short position except at a price substantially in excess of the last quoted price. Also, there is the risk that the counterparty to a short sale may fail to honor its contractual terms, causing a loss to the Fund.
D. Futures Contracts
The Fund may purchase or sell (i.e., is long or short) exchange-listed futures contracts to hedge against  changes in interest rates (interest rate risk). Futures contracts are agreements between the Fund and a counterparty to buy or sell a specific quantity of an underlying instrument at a specified price and at a specified date. Depending on the terms of the contract, futures contracts are settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash settlement amount on the settlement date. Open futures contracts can also be closed out prior to settlement by entering into an offsetting transaction in a matching futures contract. If the Fund is not able to enter into an offsetting transaction, the Fund will continue to be required to maintain margin deposits on the futures contract. When the contract is closed or expires, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed or expired. This gain or loss is included in “Net realized gain (loss) on futures contracts” on the Statement of Operations.
Upon entering into a futures contract, the Fund must deposit funds, called margin, with its custodian in the name of the clearing broker equal to a specified percentage of the current value of the contract. Open futures contracts are marked-to-market daily with the change in value recognized as a component of “Net change in unrealized appreciation (depreciation) on futures contracts” on the Statement of Operations. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in value of the contract. Such receipts or payments are known as variation margin and are included in “Variation margin”
Page 46
Notes to Financial Statements (Continued)
First Trust Low Duration Opportunities ETF (LMBS)
October 31, 2023 
receivable or payable on the Statement of Assets and Liabilities. If market conditions change unexpectedly, the Fund may not achieve the anticipated benefits of the futures contract and may realize a loss. The use of futures contracts involves the risk of imperfect correlation in movements in the price of the futures contracts, interest rates and the underlying instruments.
E. Options Contracts
The Fund may invest in exchange-listed options on U.S. Treasury securities, exchange-listed options on U.S. Treasury futures contracts and exchange-listed U.S. Treasury futures contracts. The Fund may also invest up to 20% of its net assets in over-the-counter derivatives. The Fund uses derivative instruments primarily to hedge interest rate risk and actively manage interest rate exposure. The primary risk exposure is interest rate risk.
The Fund may purchase (buy) or write (sell) put and call options on futures contracts and enter into closing transactions with respect to such options to terminate an existing position. A futures option gives the holder the right, in return for the premium paid, to assume a long position (call) or short position (put) in a futures contract at a specified exercise price prior to the expiration of the option. Upon exercise of a call option, the holder acquires a long position in the futures contract and the writer is assigned the opposite short position. In the case of a put option, the opposite is true. Prior to exercise or expiration, a futures option contract may be closed out by an offsetting purchase or sale of a futures option of the same series. When the Fund writes (sells) an option, an amount equal to the premium received by the Fund is included in “Options contracts written, at value” on the Statement of Assets and Liabilities. When the Fund purchases (buys) an option, the premium paid represents the cost of the option, which is included in “Premiums paid on options contracts purchased” on the Statement of Assets and Liabilities. Options are marked-to-market daily and their value is affected by changes in the value of the underlying security, changes in interest rates, changes in the actual or perceived volatility of the securities markets and the underlying securities, and the remaining time to the option’s expiration. The value of options may also be adversely affected if the market for the options becomes less liquid or the trading volume diminishes.
The Fund uses options on futures contracts in connection with hedging strategies. Generally, these strategies are applied under the same market and market sector conditions in which the Fund uses put and call options on securities. The purchase of put options on futures contracts is analogous to the purchase of puts on securities so as to hedge the Fund’s securities holdings against the risk of declining market prices. The writing of a call option or the purchasing of a put option on a futures contract constitutes a partial hedge against declining prices of securities which are deliverable upon exercise of the futures contract. If the price at expiration of a written call option is below the exercise price, the Fund will retain the full amount of the option premium which provides a partial hedge against any decline that may have occurred in the Fund’s holdings of securities. If the price when the option is exercised is above the exercise price, however, the Fund will incur a loss, which may be offset, in whole or in part, by the increase in the value of the securities held by the Fund that were being hedged. Writing a put option or purchasing a call option on a futures contract serves as a partial hedge against an increase in the value of the securities the Fund intends to acquire. Realized gains and losses on written options are included in “Net realized gain (loss) on written options contracts” on the Statement of Operations. Realized gains and losses on purchased options are included in “Net realized gain (loss) on purchased options contracts” on the Statement of Operations.
The Fund is required to deposit and maintain margin with respect to put and call options on futures contracts written by it. Such margin deposits will vary depending on the nature of the underlying futures contract (and the related initial margin requirements), the current market value of the option and other futures positions held by the Fund. The Fund will pledge in a segregated account at the Fund’s custodian, liquid assets, such as cash, U.S. government securities or other high-grade liquid debt obligations equal in value to the amount due on the underlying obligation. Such segregated assets will be marked-to-market daily, and additional assets will be pledged in the segregated account whenever the total value of the pledged assets falls below the amount due on the underlying obligation.
The risks associated with the use of options on future contracts include the risk that the Fund may close out its position as a writer of an option only if a liquid secondary market exists for such options, which cannot be assured. The Fund’s successful use of options on futures contracts depends on the Advisor’s ability to correctly predict the movement in prices on futures contracts and the underlying instruments, which may prove to be incorrect. In addition, there may be imperfect correlation between the instruments being hedged and the futures contract subject to option.
F. Interest-Only Securities
An interest-only security (“IO Security”) is the interest-only portion of a mortgage-backed security that receives some or all of the interest portion of the underlying mortgage-backed security and little or no principal. A reference principal value called a notional value is used to calculate the amount of interest due to the IO Security. IO Securities are sold at a deep discount to their notional
Page 47
Notes to Financial Statements (Continued)
First Trust Low Duration Opportunities ETF (LMBS)
October 31, 2023 
principal amount. Generally speaking, when interest rates are falling and prepayment rates are increasing, the value of an IO Security will fall. Conversely, when interest rates are rising and prepayment rates are decreasing, generally the value of an IO Security will rise. These securities, if any, are identified on the  Portfolio of Investments.
G. Principal-Only Securities
A principal-only security (“PO Security”) is the principal-only portion of a mortgage-backed security that does not receive any interest, is priced at a deep discount to its redemption value and ultimately receives the redemption value. Generally speaking, when interest rates are falling and prepayment rates are increasing, the value of a PO Security will rise. Conversely, when interest rates are rising and prepayment rates are decreasing, generally the value of a PO Security will fall. These securities, if any, are identified on the Portfolio of Investments.
H. Stripped Mortgage-Backed Securities
Stripped mortgage-backed securities are created by segregating the cash flows from underlying mortgage loans or mortgage securities to create two or more new securities, each with a specified percentage of the underlying security’s principal or interest payments. Mortgage-backed securities may be partially stripped so that each investor class receives some interest and some principal. When securities are completely stripped, however, all of the interest is distributed to holders of one type of security known as an IO Security and all of the principal is distributed to holders of another type of security known as a PO Security. These securities, if any, are identified on the Portfolio of Investments.
I. Mortgage Dollar Rolls and TBA Transactions
The Fund may invest, without limitation, in mortgage dollar rolls. The Fund intends to enter into mortgage dollar rolls only with high quality securities dealers and banks, as determined by the Fund’s investment advisor. In a mortgage dollar roll, the Fund will sell (or buy) mortgage-backed securities for delivery on a specified date and simultaneously contract to repurchase (or sell) substantially similar (same type, coupon and maturity) securities on a future date. Mortgage dollar rolls are recorded as separate purchases and sales in the Fund. The Fund may also invest in TBA Transactions. A TBA Transaction is a method of trading mortgage-backed securities. TBA Transactions generally are conducted in accordance with widely-accepted guidelines which establish commonly observed terms and conditions for execution, settlement and delivery. In a TBA Transaction, the buyer and the seller agree on general trade parameters such as agency, settlement date, par amount and price.
J. Affiliated Transactions
The Fund invests in securities of affiliated funds. The Fund’s investment performance and risks are directly related to the investment performance and risks of the affiliated funds. Dividend income, if any, realized gains and losses, and change in appreciation (depreciation) from affiliated funds are presented on the Statement of Operations.
Amounts relating to these investments at October 31, 2023 and for the fiscal year then ended are as follows:
 
Security Name
Shares at
10/31/2023
Value at
10/31/2022
Purchases
Sales
Change in
Unrealized
Appreciation
(Depreciation)
Realized
Gain
(Loss)
Value at
10/31/2023
Dividend
Income
First Trust Intermediate Government
Opportunities ETF
17,000
$—
$336,868
$—
$(14,888
)
$—
$321,980
$2,400
First Trust Long Duration
Opportunities ETF
73,956
523,731
1,247,572
(106,275
)
(185,756
)
(42,307
)
1,436,965
42,092
 
$523,731
$1,584,440
$(106,275
)
$(200,644
)
$(42,307
)
$1,758,945
$44,492
K. Dividends and Distributions to Shareholders
Dividends from net investment income of the Fund, if any, are declared and paid monthly, or as the Board of Trustees may determine from time to time. Distributions of net realized capital gains earned by the Fund, if any, are distributed at least annually. The Fund may also designate a portion of the amount paid to redeeming shareholders as a distribution for tax purposes.
Distributions in cash may be reinvested automatically in additional whole shares only if the broker through whom the shares were purchased makes such option available. Such shares will generally be reinvested by the broker based upon the market price of those shares and investors may be subject to customary brokerage commissions charged by the broker.
Page 48
Notes to Financial Statements (Continued)
First Trust Low Duration Opportunities ETF (LMBS)
October 31, 2023 
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 portfolio securities held by the Fund and have no impact on net assets or NAV per share. Temporary differences, which arise from recognizing certain items of income, expense and gain/loss in different periods for financial statement and tax purposes, will reverse at some time in the future.
The tax character of distributions paid during the fiscal years ended October 31, 2023 and 2022 was as follows:
 
Distributions paid from:
2023
2022
Ordinary income
$155,241,504
$77,623,014
Capital gains
—
30,590,238
Return of capital
—
—
As of October 31, 2023, the components of distributable earnings on a tax basis for the Fund were as follows:
 
Undistributed ordinary income
$(11,287,841
)
Accumulated capital and other gain (loss)
(10,798,525
)
Net unrealized appreciation (depreciation)
(432,452,416
)
L. Income Taxes
The Fund intends to continue to qualify as a regulated investment company by complying with the requirements under Subchapter M of the Internal Revenue Code of 1986, as amended, which includes distributing substantially all of its net investment income and net realized gains to shareholders. Accordingly, no provision has been made for federal and state income taxes. However, due to the timing and amount of distributions, the Fund may be subject to an excise tax of 4% of the amount by which approximately 98% of the Fund’s taxable income exceeds the distributions from such taxable income for the calendar year.
The Fund is subject to accounting standards that establish a minimum threshold for recognizing, and a system for measuring, the benefits of a tax position taken or expected to be taken in a tax return. The taxable years ended 2020, 2021, 2022, and 2023 remain open to federal and state audit. As of October 31, 2023, management has evaluated the application of these standards to the Fund and has determined that no provision for income tax is required in the Fund’s financial statements for uncertain tax positions.
The Fund intends to utilize provisions of the federal income tax laws, which allow it to carry a realized capital loss forward indefinitely following the year of the loss and offset such loss against any future realized capital gains. The Fund is subject to certain limitations under U.S. tax rules on the use of capital loss carryforwards and net unrealized built-in losses. These limitations apply when there has been a 50% change in ownership. At October 31, 2023, for federal income tax purposes, the Fund had $10,798,525 of capital loss carryforwards available, 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 the Fund’s shareholders.
Certain losses realized during the current fiscal year may be deferred and treated as occurring on the first day of the following fiscal year for federal income tax purposes. For the fiscal year ended October 31, 2023, the Fund had no net late year ordinary or capital losses.
In order to present paid-in capital and accumulated distributable earnings (loss) (which consists of accumulated net investment income (loss), accumulated net realized gain (loss) on investments and net unrealized appreciation (depreciation) on investments) on the Statement of Assets and Liabilities that more closely represent their tax character, certain adjustments have been made to paid-in capital, accumulated net investment income (loss) and accumulated net realized gain (loss) on investments. These adjustments are primarily due to the difference between book and tax treatments of income and gains on various investment securities held by the Funds and in-kind transactions. The results of operations and net assets were not affected by these adjustments. For the fiscal year ended October 31, 2023, the adjustments for the Fund were as follows:
 
Page 49
Notes to Financial Statements (Continued)
First Trust Low Duration Opportunities ETF (LMBS)
October 31, 2023 
Accumulated
Net Investment
Income (Loss)
Accumulated
Net Realized
Gain (Loss)
on Investments
Paid-In
Capital
$(17,155,806
)
$17,155,806
$—
As of October 31, 2023, 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:
 
Tax Cost
Gross
Unrealized
Appreciation
Gross
Unrealized
(Depreciation)
Net Unrealized
Appreciation
(Depreciation)
$4,657,507,988
$16,389,658
$(448,842,074
)
$(432,452,416
)
M. Expenses
Expenses, other than the investment advisory fee and other excluded expenses, are paid by the Advisor (see Note 3).
3. Investment Advisory Fee, Affiliated Transactions and Other Fee Arrangements
First Trust, the investment advisor to the Fund, is a limited partnership with one limited partner, Grace Partners of DuPage L.P., and one general partner, The Charger Corporation. The Charger Corporation is an Illinois corporation controlled by James A. Bowen, Chief Executive Officer of First Trust. First Trust is responsible for the selection and ongoing monitoring of the securities in the Fund’s portfolio, managing the Fund’s business affairs and providing certain administrative services necessary for the management of the Fund.
Pursuant to the Investment Management Agreement between the Trust and the Advisor, First Trust manages the investment of the Fund’s assets and is responsible for the Fund’s expenses, including the cost of transfer agency, custody, fund administration, legal, audit, and other services, but excluding fee payments under the Investment Management Agreement, interest, taxes, acquired fund fees and expenses, if any, brokerage commissions and other expenses connected with the execution of portfolio transactions, distribution and service fees payable pursuant to a Rule 12b-1 plan, if any, and extraordinary expenses. The annual unitary management fee payable by the Fund to First Trust for these services will be reduced at certain levels of the Fund’s net assets (“breakpoints”) and calculated pursuant to the following schedule:
 
Breakpoints
 
Fund net assets up to and including $2.5 billion
0.65000
%
Fund net assets greater than $2.5 billion up to and including $5 billion
0.63375
%
Fund net assets greater than $5 billion up to and including $7.5 billion
0.61750
%
Fund net assets greater than $7.5 billion up to and including $10 billion
0.60125
%
Fund net assets greater than $10 billion
0.58500
%
In addition, the Fund incurs acquired fund fees and expenses. The total of the unitary management fee and acquired fund fees and expenses represents the Fund’s total annual operating expenses.
The Trust has multiple service agreements with The Bank of New York Mellon (“BNYM”). Under the service agreements, BNYM performs custodial, fund accounting, certain administrative services, and transfer agency services for the Fund. As custodian, BNYM is responsible for custody of the Fund’s assets. As fund accountant and administrator, BNYM is responsible for maintaining the books and records of the Fund’s securities and cash. As transfer agent, BNYM is responsible for maintaining shareholder records for the Fund. BNYM is a subsidiary of The Bank of New York Mellon Corporation, a financial holding company.
Each Trustee who is not an officer or employee of First Trust, any sub-advisor or any of their affiliates (“Independent Trustees”) is paid a fixed annual retainer that is allocated equally among each fund in the First Trust Fund Complex. Each Independent Trustee is also paid an annual per fund fee that varies based on whether the fund is a closed-end or other actively managed fund, a target outcome fund or an index fund.
Additionally, the Lead Independent Trustee and the Chairs of the Audit Committee, Nominating and Governance Committee and Valuation Committee are paid annual fees to serve in such capacities, with such compensation allocated pro rata among each fund in
Page 50
Notes to Financial Statements (Continued)
First Trust Low Duration Opportunities ETF (LMBS)
October 31, 2023 
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.
4. Purchases and Sales of Securities
The costs of purchases of U.S. Government securities and non-U.S. Government securities, excluding short-term investments and investments sold short, for the fiscal year ended October 31, 2023, were $18,510,474,458 and $357,686,554, respectively. The proceeds from sales and paydowns of U.S. Government securities and non-U.S. Government securities, excluding short-term investments and investments sold short, for the fiscal year ended October 31, 2023 were $19,023,922,288 and $546,329,019, respectively. The cost of purchases to cover short sales and the proceeds of short sales were $11,879,187,063 and $11,579,767,745, respectively. 
For the fiscal year ended October 31, 2023, the Fund had no in-kind transactions.
5. Derivative Transactions
The following table presents the types of derivatives held by the Fund at October 31, 2023, the primary underlying risk exposure and the location of these instruments as presented on the Statement of Assets and Liabilities.
 
 
 
Asset Derivatives
Liability Derivatives
Derivative
Instrument
Risk
Exposure
Statement of Assets and
Liabilities Location
Value
Statement of Assets and
Liabilities Location
Value
Options contracts
Interest Rate Risk
Options contracts
purchased, at value
$250,625
Options contracts written,
at value
$28,353,144
Futures contracts
Interest Rate Risk
Unrealized appreciation on
futures contracts*
75,861,717
Unrealized depreciation on
futures contracts*
44,026
 
*
Includes cumulative appreciation/depreciation on futures contracts as reported in the Fund’s Portfolio of Investments. Only the
current day’s variation margin is presented on the Statement of Assets and Liabilities.
The following table presents the amount of net realized gain (loss) and change in net unrealized appreciation (depreciation) recognized for the fiscal year ended October 31, 2023, on derivative instruments, as well as the primary underlying risk exposure associated with the instruments.
 
 
Statement of Operations Location
 
Interest Rate Risk Exposure
Net realized gain (loss) on:
Purchased options contracts
$(6,161,443
)
Written options contracts
31,179,376
Futures contracts
131,918,646
Net change in unrealized appreciation (depreciation) on:
Purchased options contracts
(573,839
)
Written options contracts
(12,830,477
)
Futures contracts
(13,551,104
)
During the fiscal year ended October 31, 2023, the notional value of futures contracts opened and closed were $12,903,566,130 and $13,063,735,566, respectively.
During the fiscal year ended October 31, 2023, the premiums for purchased options contracts opened were $7,215,453 and the premiums for purchased options contracts closed, exercised and expired were $6,862,083.
During the fiscal year ended October 31, 2023, the premiums for written options contracts opened were $67,511,337 and the premiums for written options contracts closed, exercised and expired were $55,534,358.
Page 51
Notes to Financial Statements (Continued)
First Trust Low Duration Opportunities ETF (LMBS)
October 31, 2023 
The Fund does not have the right to offset financial assets and financial liabilities related to futures and options contracts on the Statement of Assets and Liabilities.
6. Creations, Redemptions and Transaction Fees
The Fund generally issues and redeems its shares in primary market transactions through a creation and redemption mechanism and does not sell or redeem individual shares. Instead, financial entities known as “Authorized Participants” have contractual arrangements with the Fund or one of the Fund’s service providers to purchase and redeem Fund shares directly with the Fund in large blocks of shares known as “Creation Units.” Prior to the start of trading on every business day, the Fund publishes through the National Securities Clearing Corporation the “basket” of securities, cash or other assets that it will accept in exchange for a Creation Unit of the Fund’s shares. An Authorized Participant that wishes to effectuate a creation of the Fund’s shares deposits with the Fund the “basket” of securities, cash or other assets identified by the Fund that day, and then receives the Creation Unit of the Fund’s shares in return for those assets. After purchasing a Creation Unit, the Authorized Participant may continue to hold the Fund’s shares or sell them in the secondary market. The redemption process is the reverse of the purchase process: the Authorized Participant redeems a Creation Unit of the Fund’s shares for a basket of securities, cash or other assets. The combination of the creation and redemption process with secondary market trading in the Fund’s shares and underlying securities provides arbitrage opportunities that are designed to help keep the market price of the Fund’s shares at or close to the NAV per share of the Fund.
The Fund imposes fees in connection with the purchase of Creation Units. These fees may vary based upon various fact-based circumstances, including, but not limited to, the composition of the securities included in the Creation Unit or the countries in which the transactions are settled. The price for each Creation Unit will equal the daily NAV per share of the Fund times the number of shares in a Creation Unit, plus the fees described above and, if applicable, any operational processing and brokerage costs, transfer fees, stamp taxes and part or all of the spread between the expected bid and offer side of the market related to the securities comprising the creation basket.
The Fund also imposes fees in connection with the redemption of Creation Units. These fees may vary based upon various fact-based circumstances, including, but not limited to, the composition of the securities included in the Creation Unit or the countries in which the transactions are settled. The price received for each Creation Unit will equal the daily NAV per share of the Fund times the number of shares in a Creation Unit, minus the fees described above and, if applicable, any operational processing and brokerage costs, transfer fees, stamp taxes and part or all of the spread between the expected bid and offer side of the market related to the securities comprising the redemption basket. Investors who use the services of a broker or other such intermediary in addition to an Authorized Participant to effect a redemption of a Creation Unit may also be assessed an amount to cover the cost of such services. The redemption fee charged by the Fund will comply with Rule 22c-2 of the 1940 Act which limits redemption fees to no more than 2% of the value of the shares redeemed.
7. Distribution Plan
The Board of Trustees adopted a Distribution and Service Plan pursuant to Rule 12b-1 under the 1940 Act. In accordance with the Rule 12b-1 plan, the Fund is authorized to pay an amount up to 0.25% of its average daily net assets each year to reimburse First Trust Portfolios L.P. (“FTP”), the distributor of the Fund, for amounts expended to finance activities primarily intended to result in the sale of Creation Units or the provision of investor services. FTP may also use this amount to compensate securities dealers or other persons that are Authorized Participants for providing distribution assistance, including broker-dealer and shareholder support and educational and promotional services.
No 12b-1 fees are currently paid by the Fund, and pursuant to a contractual arrangement, no 12b-1 fees will be paid any time before March 31, 2025.
8. Indemnification
The Trust, on behalf of the Fund, has a variety of indemnification obligations under contracts with its service providers. The Trust’s maximum exposure under these arrangements is unknown. However, the Trust has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.
9. Subsequent Events
Management has evaluated the impact of all subsequent events on the Fund through the date the financial statements were issued and has determined that there were no subsequent events requiring recognition or disclosure in the financial statements that have not already been disclosed.
Page 52
Report of Independent Registered Public Accounting Firm
To the Shareholders and the Board of Trustees of First Trust Exchange-Traded Fund IV:
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of First Trust Low Duration Opportunities ETF (the “Fund”), one of the funds constituting the First Trust Exchange-Traded Fund IV, as of October 31, 2023, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of October 31, 2023, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of October 31, 2023, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/ Deloitte & Touche, LLP
Chicago, Illinois
December 22, 2023
We have served as the auditor of one or more First Trust investment companies since 2001.
Page 53
Additional Information
First Trust Low Duration Opportunities ETF (LMBS)
October 31, 2023 (Unaudited)
Proxy Voting Policies and Procedures
A description of the policies and procedures that the Trust uses to determine how to vote proxies and information on how the Fund voted proxies relating to its portfolio securities during the most recent 12-month period ended June 30 is available (1) without charge, upon request, by calling (800) 988-5891; (2) on the Fund’s website at www.ftportfolios.com; and (3) on the Securities and Exchange Commission’s (“SEC”) website at www.sec.gov.
Portfolio Holdings
The Fund files portfolio holdings information for each month in a fiscal quarter within 60 days after the end of the relevant fiscal quarter on Form N-PORT. Portfolio holdings information for the third month of each fiscal quarter will be publicly available on the SEC’s website at www.sec.gov. The Fund’s complete schedule of portfolio holdings for the second and fourth quarters of each fiscal year is included in the semi-annual and annual reports to shareholders, respectively, and is filed with the SEC on Form N-CSR. The semi-annual and annual report for the Fund is available to investors within 60 days after the period to which it relates. The Fund’s Forms N-PORT and Forms N-CSR are available on the SEC’s website listed above.
Federal Tax Information
Distributions paid to the foreign shareholders during the Fund’s fiscal year ended October 31, 2023 that were properly designated by the Fund as “interest-related dividends” or “short-term capital gain dividends,” may not be subject to federal income tax provided that the income was earned directly by such foreign shareholders.
Of the ordinary income (including short-term capital gain) distributions made by the Fund during the fiscal year ended October 31, 2023, none qualify for the corporate dividends received deduction available to corporate shareholders or as qualified dividend income.
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
Page 54
Additional Information (Continued)
First Trust Low Duration Opportunities ETF (LMBS)
October 31, 2023 (Unaudited)
participate in a gain in the value of the underlying ETF up to the cap for the investor’s investment period. Additionally, the fund will not participate in gains of the underlying ETF above the cap and a shareholder may lose their entire investment. If the fund seeks enhanced returns, there are certain time periods when the value of the fund may fall faster than the value of the underlying ETF, and it is very unlikely that, on any given day during which the underlying ETF share price increases in value, the fund’s share price will increase at the same rate as the enhanced returns sought by the fund, which is designed for an entire target outcome period. Trading flexible exchange options involves risks different from, or possibly greater than, the risks associated with investing directly in securities, such as less liquidity and correlation and valuation risks. A fund may experience substantial downside from specific flexible exchange option positions and certain positions may expire worthless.
Derivatives Risk. To the extent a fund uses derivative instruments such as futures contracts, options contracts and swaps, the fund may experience losses because of adverse movements in the price or value of the underlying asset, index or rate, which may be magnified by certain features of the derivative. These risks are heightened when a fund’s portfolio managers use derivatives to enhance the fund’s return or as a substitute for a position or security, rather than solely to hedge (or offset) the risk of a position or security held by the fund.
Equity Securities Risk. To the extent a fund invests in equity securities, the value of the fund’s shares will fluctuate with changes in the value of the equity securities. Equity securities prices fluctuate for several reasons, including changes in investors’ perceptions of the financial condition of an issuer or the general condition of the relevant stock market, such as market volatility, or when political or economic events affecting the issuers occur. In addition, common stock prices may be particularly sensitive to rising interest rates, as the cost of capital rises and borrowing costs increase. Equity securities may decline significantly in price over short or extended periods of time, and such declines may occur in the equity market as a whole, or they may occur in only a particular country, company, industry or sector of the market.
ETF Risk. The shares of an ETF trade like common stock and represent an interest in a portfolio of securities. The risks of owning an ETF generally reflect the risks of owning the underlying securities, although lack of liquidity in an ETF could result in it being more volatile and ETFs have management fees that increase their costs. Shares of an ETF trade on an exchange at market prices rather than net asset value, which may cause the shares to trade at a price greater than net asset value (premium) or less than net asset value (discount). In times of market stress, decisions by market makers to reduce or step away from their role of providing a market for an ETF’s shares, or decisions by an ETF’s authorized participants that they are unable or unwilling to proceed with creation and/or redemption orders of an ETF’s shares, could result in shares of the ETF trading at a discount to net asset value and in greater than normal intraday bid-ask spreads.
Fixed Income Securities Risk. To the extent a fund invests in fixed income securities, the fund will be subject to credit risk, income risk, interest rate risk, liquidity risk and prepayment risk. Income risk is the risk that income from a fund’s fixed income investments could decline during periods of falling interest rates. Interest rate risk is the risk that the value of a fund’s fixed income securities will decline because of rising interest rates. Liquidity risk is the risk that a security cannot be purchased or sold at the time desired, or cannot be purchased or sold without adversely affecting the price. Prepayment risk is the risk that the securities will be redeemed or prepaid by the issuer, 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
Page 55
Additional Information (Continued)
First Trust Low Duration Opportunities ETF (LMBS)
October 31, 2023 (Unaudited)
it does not guarantee that the Index will be calculated in accordance with its stated methodology. Losses or costs associated with any Index Provider errors generally will be borne by the fund and its shareholders.
Investment Companies Risk. To the extent a fund invests in the securities of other investment vehicles, the fund will incur additional fees and expenses that would not be present in a direct investment in those investment vehicles. Furthermore, the fund’s investment performance and risks are directly related to the investment performance and risks of the investment vehicles in which the fund invests.
LIBOR Risk. To the extent a fund invests in floating or variable rate obligations that use the London Interbank Offered Rate (“LIBOR”) as a reference interest rate, it is subject to LIBOR Risk. The United Kingdom’s Financial Conduct Authority, which regulates LIBOR, has ceased making LIBOR available as a reference rate over a phase-out period that began December 31, 2021. There is no assurance that any alternative reference rate, including the Secured Overnight Financing Rate (“SOFR”) will be similar to or produce the same value or economic equivalence as LIBOR or that instruments using an alternative rate will have the same volume or liquidity. The unavailability or replacement of LIBOR may affect the value, liquidity or return on certain fund investments and may result in costs incurred in connection with closing out positions and entering into new trades. Any potential effects of the transition away from LIBOR on the fund or on certain instruments in which the fund invests can be difficult to ascertain, and they may vary depending on a variety of factors, and they could result in losses to the fund.
Management Risk. To the extent that a fund is actively managed, it is subject to management risk. In managing an actively-managed fund’s investment portfolio, the fund’s portfolio managers will apply investment techniques and risk analyses that may not have the desired result. There can be no guarantee that a fund will meet its investment objective.
Market Risk. Market risk is the risk that a particular security, or shares of a fund in general, may fall in value. Securities held by a fund, as well as shares of a fund itself, are subject to market fluctuations caused by factors such as general economic conditions, political events, regulatory or market developments, changes in interest rates and perceived trends in securities prices. Shares of a fund could decline in value or underperform other investments as a result of the risk of loss associated with these market fluctuations. In addition, local, regional or global events such as war, acts of terrorism, spread of infectious diseases or other public health issues, recessions, or other events could have a significant negative impact on a fund and its investments. Such events may affect certain geographic regions, countries, sectors and industries more significantly than others. In February 2022, Russia invaded Ukraine which has caused and could continue to cause significant market disruptions and volatility within the markets in Russia, Europe, and the United States. The hostilities and sanctions resulting from those hostilities could have a significant impact on certain fund investments as well as fund performance. The COVID-19 global pandemic and the ensuing policies enacted by governments and central banks have caused and may continue to cause significant volatility and uncertainty in global financial markets. While the U.S. has resumed “reasonably” normal business activity, many countries continue to impose lockdown measures. Additionally, there is no guarantee that vaccines will be effective against emerging variants of the disease. These events also adversely affect the prices and liquidity of a fund’s portfolio securities or other instruments and could result in disruptions in the trading markets. Any of such circumstances could have a materially negative impact on the value of a fund’s shares and result in increased market volatility. During any such events, a fund’s shares may trade at increased premiums or discounts to their net asset value and the bid/ask spread on a fund’s shares may widen.
Non-U.S. Securities Risk. To the extent a fund invests in non-U.S. securities, it is subject to additional risks not associated with securities of domestic issuers. Non-U.S. securities are subject to higher volatility than securities of domestic issuers due to: possible adverse political, social or economic developments; restrictions on foreign investment or exchange of securities; capital controls; lack of liquidity; currency exchange rates; excessive taxation; government seizure of assets; the imposition of sanctions by foreign governments; different legal or accounting standards; and less government supervision and regulation of exchanges in foreign countries. Investments in non-U.S. securities may involve higher costs than investments in U.S. securities, including higher transaction and custody costs, as well as additional taxes imposed by non-U.S. governments. These risks may be heightened for securities of companies located, or with significant operations, in emerging market countries.
Operational Risk. Each fund is subject to risks arising from various operational factors, including, but not limited to, human error, processing and communication errors, errors of a fund’s service providers, counterparties or other third-parties, failed or inadequate processes and technology or systems failures. Each fund relies on third-parties for a range of services, including custody. Any delay or failure relating to engaging or maintaining such service providers may affect a fund’s ability to meet its investment objective. Although the funds and the funds’ investment advisor seek to reduce these operational risks through controls and procedures, there is no way to completely protect against such risks.
Page 56
Additional Information (Continued)
First Trust Low Duration Opportunities ETF (LMBS)
October 31, 2023 (Unaudited)
Passive Investment Risk. To the extent a fund seeks to track an index, the fund will invest in the securities included in, or representative of, the index regardless of their investment merit. A fund generally will not attempt to take defensive positions in declining markets.
Preferred Securities Risk. Preferred securities combine some of the characteristics of both common stocks and bonds. Preferred securities are typically subordinated to bonds and other debt securities in a company’s capital structure in terms of priority to corporate income, subjecting them to greater credit risk than those debt securities. Generally, holders of preferred securities have no voting rights with respect to the issuing company unless preferred dividends have been in arrears for a specified number of periods, at which time the preferred security holders may obtain limited rights. In certain circumstances, an issuer of preferred securities may defer payment on the securities and, in some cases, redeem the securities prior to a specified date. Preferred securities may also be substantially less liquid than other securities, including common stock.
Valuation Risk. The valuation of certain securities may carry more risk than that of common stock. Uncertainties in the conditions of the financial markets, unreliable reference data, lack of transparency and inconsistency of valuation models and processes may lead to inaccurate asset pricing. A fund may hold investments in sizes smaller than institutionally sized round lot positions (sometimes referred to as odd lots). However, third-party pricing services generally provide evaluations on the basis of institutionally-sized round lots. If a fund sells certain of its investments in an odd lot transaction, the sale price may be less than the value at which such securities have been held by the fund. Odd lots often trade at lower prices than institutional round lots. There is no assurance that the fund will be able to sell a portfolio security at the price established by the pricing service, which could result in a loss to the fund.
NOT FDIC INSURED  NOT BANK GUARANTEED  MAY LOSE VALUE
Advisory Agreement
Board Considerations Regarding Approval of the Continuation of the Investment Management Agreement
The Board of Trustees of First Trust Exchange-Traded Fund IV (the “Trust”), including the Independent Trustees, unanimously approved the continuation of the Investment Management Agreement (the “Agreement”) with First Trust Advisors L.P. (the “Advisor”) on behalf of the First Trust Low Duration Opportunities ETF (the “Fund”).  The Board approved the continuation of the Agreement for a one-year period ending June 30, 2024 at a meeting held on June 4–5, 2023.  The Board determined that the continuation of the Agreement is in the best interests of the Fund in light of the nature, extent and quality of the services provided and such other matters as the Board considered to be relevant in the exercise of its business judgment.
To reach this determination, the Board considered its duties under the Investment Company Act of 1940, as amended (the “1940 Act”), as well as under the general principles of state law, in reviewing and approving advisory contracts; the requirements of the 1940 Act in such matters; the fiduciary duty of investment advisors with respect to advisory agreements and compensation; the standards used by courts in determining whether investment company boards have fulfilled their duties; and the factors to be considered by the Board in voting on such agreements.  At meetings held on April 17, 2023 and June 4–5, 2023, the Board, including the Independent Trustees, reviewed materials provided by the Advisor responding to requests for information from counsel to the Independent Trustees, submitted on behalf of the Independent Trustees, that, among other things, outlined: the services provided by the Advisor to the Fund (including the relevant personnel responsible for these services and their experience); the unitary fee rate schedule payable by the Fund as compared to fees charged to a peer group of funds (the “Expense Group”) and a broad peer universe of funds (the “Expense Universe”), each assembled by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent source, and as compared to fees charged to other clients of the Advisor, including other exchange-traded funds (“ETFs”) managed by the Advisor; the expense ratio of the Fund as compared to expense ratios of the funds in the Fund’s Expense Group and Expense Universe; performance information for the Fund, including comparisons of the Fund’s performance to that of one or more relevant benchmark indexes and to that of a performance group of funds and a broad performance universe of funds (the “Performance Universe”), each assembled by Broadridge; the nature of expenses incurred in providing services to the Fund and the potential for the Advisor to realize economies of scale, if any; profitability and other financial data for the Advisor; any indirect benefits to the Advisor and its affiliate, First Trust Portfolios L.P. (“FTP”); and information on the Advisor’s compliance program. The Board reviewed initial materials with the Advisor at the meeting held on April 17, 2023, prior to which the Independent Trustees and their counsel met separately to discuss the information provided by the Advisor.  Following the April meeting, counsel to the Independent Trustees, on behalf of the Independent Trustees, requested certain clarifications and supplements to the materials provided, and the information provided in response to those requests was considered at an executive session of the Independent Trustees and their counsel held prior to the June 4–5, 2023 meeting, as well as at the June meeting. The Board applied its business judgment to determine whether the arrangement between the Trust and the Advisor continues to be a reasonable business arrangement from the Fund’s perspective. The Board
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Additional Information (Continued)
First Trust Low Duration Opportunities ETF (LMBS)
October 31, 2023 (Unaudited)
determined that, given the totality of the information provided with respect to the Agreement, the Board had received sufficient information to renew the Agreement.  The Board considered that shareholders chose to invest or remain invested in the Fund knowing that the Advisor manages the Fund and knowing the Fund’s unitary fee.
In reviewing the Agreement, the Board considered the nature, extent and quality of the services provided by the Advisor under the Agreement.  The Board considered that the Advisor is responsible for the overall management and administration of the Trust and the Fund and reviewed all of the services provided by the Advisor to the Fund, as well as the background and experience of the persons responsible for such services.  The Board noted that the Fund is an actively-managed ETF and noted that the Advisor’s Securitized Products Group is responsible for the day-to-day management of the Fund’s investments.  The Board considered the background and experience of the members of the Securitized Products Group and noted the Board’s prior meetings with members of the Group. The Board considered the Advisor’s statement that it applies the same oversight model internally with its Securitized Products Group as it uses for overseeing external sub-advisors, including portfolio risk monitoring and performance review.  In reviewing the services provided, the Board noted the compliance program that had been developed by the Advisor and considered that it includes a robust program for monitoring the Advisor’s and the Fund’s compliance with the 1940 Act, as well as the Fund’s compliance with its investment objectives, policies and restrictions.  The Board also considered a report from the Advisor with respect to its risk management functions related to the operation of the Fund.  Finally, as part of the Board’s consideration of the Advisor’s services, the Advisor, in its written materials and at the April 17, 2023 meeting, described to the Board the scope of its ongoing investment in additional personnel and infrastructure to maintain and improve the quality of services provided to the Fund and the other funds in the First Trust Fund Complex. In light of the information presented and the considerations made, the Board concluded that the nature, extent and quality of the services provided to the Trust and the Fund by the Advisor under the Agreement have been and are expected to remain satisfactory and that the Advisor has managed the Fund consistent with its investment objectives, policies and restrictions.
The Board considered the unitary fee rate schedule payable by the Fund under the Agreement for the services provided.  The Board considered that as part of the unitary fee the Advisor is responsible for the Fund’s expenses, including the cost of transfer agency, custody, fund administration, legal, audit and other services and license fees, if any, but excluding the fee payment under the Agreement and interest, taxes, acquired fund fees and expenses, brokerage commissions and other expenses connected with the execution of portfolio transactions, distribution and service fees pursuant to a Rule 12b-1 plan, if any, and extraordinary expenses, if any. The Board received and reviewed information showing the fee rates and expense ratios of the peer funds in the Expense Group, as well as advisory and unitary fee rates charged by the Advisor to other fund (including ETFs) and non-fund clients, as applicable.  Because the Fund pays a unitary fee, the Board determined that expense ratios were the most relevant comparative data point. Based on the information provided, the Board noted that the total (net) expense ratio for the Fund was above the median total (net) expense ratio of the peer funds in the Expense Group. With respect to the Expense Group, the Board, at the April 17, 2023 meeting, discussed with Broadridge its methodology for assembling peer groups and discussed with the Advisor limitations in creating peer groups for actively-managed ETFs, and different business models that may affect the pricing of services among ETF sponsors.  The Board took these limitations and differences into account in considering the peer data. With respect to fees charged to other non-ETF clients, the Board considered differences between the Fund and other non-ETF clients that limited their comparability. In considering the unitary fee rate schedule overall, the Board also considered the Advisor’s statement that it seeks to meet investor needs through innovative and value-added investment solutions and the Advisor’s demonstrated long-term commitment to the Fund and the other funds in the First Trust Fund Complex.
The Board considered performance information for the Fund.  The Board noted the process it has established for monitoring the Fund’s performance and portfolio risk on an ongoing basis, which includes quarterly performance reporting from the Advisor for the Fund.  The Board determined that this process continues to be effective for reviewing the Fund’s performance.  The Board received and reviewed information comparing the Fund’s performance for periods ended December 31, 2022 to the performance of the funds in the Performance Universe and to that of a benchmark index. Based on the information provided, the Board noted that the Fund outperformed the Performance Universe median for the one-, three- and five-year periods ended December 31, 2022, outperformed the benchmark index for the one- and three-year periods ended December 31, 2022 and performed equal to the benchmark index for the five-year period ended December 31, 2022. 
On the basis of all the information provided on the unitary fee and performance of the Fund and the ongoing oversight by the Board, the Board concluded that the unitary fee for the Fund continues to be reasonable and appropriate in light of the nature, extent and quality of the services provided by the Advisor to the Fund under the Agreement.
The Board considered information and discussed with the Advisor whether there were any economies of scale in connection with providing advisory services to the Fund at current asset levels and whether the Fund may benefit from any economies of scale.  The
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Additional Information (Continued)
First Trust Low Duration Opportunities ETF (LMBS)
October 31, 2023 (Unaudited)
Board noted that the unitary fee rate schedule for the Fund includes breakpoints pursuant to which the unitary fee rate will be reduced as assets of the Fund meet certain thresholds.  The Board considered the Advisor’s statement that it believes that its expenses relating to providing advisory services to the Fund will increase during the next twelve months as the Advisor continues to build infrastructure and add new staff. The Board also noted that under the unitary fee structure, any reduction in expenses associated with the management and operations of the Fund would benefit the Advisor, but that the unitary fee structure provides a level of certainty in expenses for shareholders of the Fund.  The Board concluded that the unitary fee rate schedule for the Fund reflects an appropriate level of sharing of any economies of scale that may be realized in the management of the Fund at current asset levels.  The Board considered the revenues and allocated costs (including the allocation methodology) of the Advisor in serving as investment advisor to the Fund for the twelve months ended December 31, 2022 and the estimated profitability level for the Fund calculated by the Advisor based on such data, as well as complex-wide and product-line profitability data, for the same period.  The Board noted the inherent limitations in the profitability analysis and concluded that, based on the information provided, the Advisor’s profitability level for the Fund was not unreasonable.  In addition, the Board considered indirect benefits described by the Advisor that may be realized from its relationship with the Fund.  The Board considered that the Advisor had identified as an indirect benefit to the Advisor and FTP their exposure to investors and brokers who, absent their exposure to the Fund, may have had no dealings with the Advisor or FTP, and noted that the Advisor does not utilize soft dollars in connection with the Fund.  The Board concluded that the character and amount of potential indirect benefits to the Advisor were not unreasonable.
Based on all of the information considered and the conclusions reached, the Board, including the Independent Trustees, unanimously determined that the terms of the Agreement continue to be fair and reasonable and that the continuation of the Agreement is in the best interests of the Fund.  No single factor was determinative in the Board’s analysis.
Remuneration
First Trust Advisors L.P. (“First Trust”) is authorised and regulated by the U.S. Securities and Exchange Commission and is entitled to market shares of certain funds it manages, including First Trust Low Duration Opportunities ETF (the “Fund”), in certain member states in the European Economic Area in accordance with the cooperation arrangements in Article 42 of the Alternative Investment Fund Managers Directive (the “Directive”). First Trust is required under the Directive to make disclosures in respect of remuneration. The following disclosures are made in line with First Trust’s interpretation of currently available regulatory guidance on remuneration disclosures.
During the year ended December 31, 2022, the amount of remuneration paid (or to be paid) by First Trust Advisors L.P. in respect of the Funds is $5,307,545. This figure is comprised of $289,032 paid (or to be paid) in fixed compensation and $5,018,513 paid (or to be paid) in variable compensation. There were a total of 26 beneficiaries of the remuneration described above. Those amounts include $1,383,548 paid (or to be paid) to senior management of First Trust Advisors L.P. and $3,923,997 paid (or to be paid) to other employees whose professional activities have a material impact on the risk profiles of First Trust Advisors L.P. or the Funds (collectively, “Code Staff”).
Code Staff included in the aggregated figures disclosed above are rewarded in line with First Trust’s remuneration policy (the “Remuneration Policy”) which is determined and implemented by First Trust’s senior management. The Remuneration Policy reflects First Trust’s ethos of good governance and encapsulates the following principal objectives:
i. 
to provide a clear link between remuneration and performance of First Trust and to avoid rewarding for failure;
ii. 
to promote sound and effective risk management consistent with the risk profiles of the funds managed by First Trust; and
iii. 
to remunerate staff in line with the business strategy, objectives, values and interests of First Trust and the funds managed by First Trust in a manner that avoids conflicts of interest.
First Trust assesses various risk factors which it is exposed to when considering and implementing remuneration for Code Staff and considers whether any potential award to such person(s) would give rise to a conflict of interest. First Trust does not reward failure, or consider the taking of risk or failure to take risk in its remuneration of Code Staff.
First Trust assesses performance for the purposes of determining payments in respect of performance-related remuneration of Code Staff by reference to a broad range of measures including (i) individual performance (using financial and non-financial criteria), and (ii) the overall performance of First Trust. Remuneration is not based upon the performance of the Fund.
Page 59
Additional Information (Continued)
First Trust Low Duration Opportunities ETF (LMBS)
October 31, 2023 (Unaudited)
The elements of remuneration are balanced between fixed and variable and the senior management sets fixed salaries at a level sufficient to ensure that variable remuneration incentivises and rewards strong individual performance but does not encourage excessive risk taking.
No individual is involved in setting his or her own remuneration.
Page 60
Board of Trustees and Officers
First Trust Low Duration Opportunities ETF (LMBS)
October 31, 2023 (Unaudited)
The following tables identify the Trustees and Officers of the Trust. Unless otherwise indicated, the address of all persons is 120 East Liberty Drive, Suite 400, Wheaton, IL 60187.
The Trust’s statement of additional information includes additional information about the Trustees and is available, without charge, upon request, by calling (800) 988-5891.
 
Name,
Year of Birth and
Position with the Trust
Term of Office
and Year First
Elected or
Appointed
Principal Occupations
During Past 5 Years
Number of
Portfolios in
the First Trust
Fund Complex
Overseen by
Trustee
Other
Trusteeships or
Directorships
Held by Trustee
During Past
5 Years
INDEPENDENT TRUSTEES
Richard E. Erickson, Trustee
(1951)
• Indefinite Term
• Since Inception
Retired; Physician, Edward-Elmhurst
Medical Group (2021 to September
2023); Physician and Officer,
Wheaton Orthopedics (1990 to 2021)
254
None
Thomas R. Kadlec, Trustee
(1957)
• Indefinite Term
• Since Inception
Retired; President, ADM Investors
Services, Inc. (Futures Commission
Merchant) (2010 to July 2022)
254
Director, National Futures
Association and ADMIS
Singapore Ltd.; Formerly,
Director of ADM Investor
Services, Inc., ADM Investor
Services International,
ADMIS Hong Kong Ltd., and
Futures Industry Association
Denise M. Keefe, Trustee
(1964)
• Indefinite Term
• Since 2021
Executive Vice President, Advocate
Aurora Health and President,
Advocate Aurora Continuing Health
Division (Integrated Healthcare
System)
254
Director and Board Chair of
Advocate Home Health
Services, Advocate Home
Care Products and Advocate
Hospice; Director and Board
Chair of Aurora At Home
(since 2018); Director of
Advocate Physician Partners
Accountable Care
Organization; Director of
RML Long Term Acute Care
Hospitals; Director of Senior
Helpers (since 2021); and
Director of MobileHelp
(since 2022)
Robert F. Keith, Trustee
(1956)
• Indefinite Term
• Since Inception
President, Hibs Enterprises (Financial
and Management Consulting)
254
Formerly, Director of Trust
Company of Illinois
Niel B. Nielson, Trustee
(1954)
• Indefinite Term
• Since Inception
Senior Advisor (2018 to Present),
Managing Director and Chief
Operating Officer (2015 to 2018),
Pelita Harapan Educational
Foundation (Educational Products
and Services)
254
None
Bronwyn Wright, Trustee
(1971)
• Indefinite Term
• Since 2023
Independent Director to a number of
Irish collective investment funds
(2009 to Present); Various roles at
international affiliates of Citibank
(1994 to 2009), including Managing
Director, Citibank Europe plc and
Head of Securities and Fund Services,
Citi Ireland (2007 to 2009)
229
None
Page 61
Board of Trustees and Officers (Continued)
First Trust Low Duration Opportunities ETF (LMBS)
October 31, 2023 (Unaudited)
Name,
Year of Birth and
Position with the Trust
Term of Office
and Year First
Elected or
Appointed
Principal Occupations
During Past 5 Years
Number of
Portfolios in
the First Trust
Fund Complex
Overseen by
Trustee
Other
Trusteeships or
Directorships
Held by Trustee
During Past
5 Years
INTERESTED TRUSTEE
James A. Bowen(1), Trustee,
Chairman of the Board
(1955)
• Indefinite Term
• Since Inception
Chief Executive Officer, First Trust
Advisors L.P. and First Trust
Portfolios L.P., Chairman of the
Board of Directors, BondWave LLC
(Software Development Company)
and Stonebridge Advisors LLC
(Investment Advisor)
254
None
 
Name and
Year of Birth
Position and
Offices
with Trust
Term of Office
and Length of
Service
Principal Occupations
During Past 5 Years
OFFICERS(2)
James M. Dykas
(1966)
President and Chief
Executive Officer
• Indefinite Term
• Since 2016
Managing Director and Chief Financial Officer, First Trust
Advisors L.P. and First Trust Portfolios L.P.; Chief Financial
Officer, BondWave LLC (Software Development Company) and
Stonebridge Advisors LLC (Investment Advisor)
Derek D. Maltbie
(1972)
Treasurer, Chief Financial
Officer and Chief
Accounting Officer
• Indefinite Term
• Since 2023
Senior Vice President, First Trust Advisors L.P. and First Trust
Portfolios L.P., July 2021 to Present. Previously, Vice President,
First Trust Advisors L.P. and First Trust Portfolios L.P., 2014 -
2021.
W. Scott Jardine
(1960)
Secretary and Chief Legal
Officer
• Indefinite Term
• Since Inception
General Counsel, First Trust Advisors L.P. and First Trust
Portfolios L.P.; Secretary and General Counsel, BondWave LLC;
Secretary, Stonebridge Advisors LLC
Daniel J. Lindquist
(1970)
Vice President
• Indefinite Term
• Since Inception
Managing Director, First Trust Advisors L.P. and First Trust
Portfolios L.P.
Kristi A. Maher
(1966)
Chief Compliance Officer
and Assistant Secretary
• Indefinite Term
• Since Inception
Deputy General Counsel, First Trust Advisors L.P. and First
Trust Portfolios L.P.
Roger F. Testin
(1966)
Vice President
• Indefinite Term
• Since Inception
Senior Vice President, First Trust Advisors L.P. and First Trust
Portfolios L.P.
Stan Ueland
(1970)
Vice President
• Indefinite Term
• Since Inception
Senior Vice President, First Trust Advisors L.P. and First Trust
Portfolios L.P.
(1)
Mr. Bowen is deemed an “interested person” of the Trust due to his position as Chief Executive Officer of First Trust Advisors L.P., investment advisor of the Trust.
(2)
The term “officer” means the president, vice president, secretary, treasurer, controller or any other officer who performs a policy making function.
Page 62
Privacy Policy
First Trust Low Duration Opportunities ETF (LMBS)
October 31, 2023 (Unaudited)
Privacy Policy
First Trust values our relationship with you and considers your privacy an important priority in maintaining that relationship. We are committed to protecting the security and confidentiality of your personal information.
Sources of Information
We collect nonpublic personal information about you from the following sources:
•  Information we receive from you and your broker-dealer, investment professional or financial representative through interviews, applications, agreements or other forms;
•  Information about your transactions with us, our affiliates or others;
•  Information we receive from your inquiries by mail, e-mail or telephone; and
•  Information we collect on our website through the use of “cookies.” For example, we may identify the pages on our website that your browser requests or visits.
Information Collected
The type of data we collect may include your name, address, social security number, age, financial status, assets, income, tax information, retirement and estate plan information, transaction history, account balance, payment history, investment objectives, marital status, family relationships and other personal information.
Disclosure of Information
We do not disclose any nonpublic personal information about our customers or former customers to anyone, except as permitted by law. In addition to using this information to verify your identity (as required under law), the permitted uses may also include the disclosure of such information to unaffiliated companies for the following reasons:
•  In order to provide you with products and services and to effect transactions that you request or authorize, we may disclose your personal information as described above to unaffiliated financial service providers and other companies that perform administrative or other services on our behalf, such as transfer agents, custodians and trustees, or that assist us in the distribution of investor materials such as trustees, banks, financial representatives, proxy services, solicitors and printers.
•  We may release information we have about you if you direct us to do so, if we are compelled by law to do so, or in other legally limited circumstances (for example to protect your account from fraud).
In addition, in order to alert you to our other financial products and services, we may share your personal information within First Trust.
Use of Website Analytics
We currently use third party analytics tools, Google Analytics and AddThis, to gather information for purposes of improving First Trust’s website and marketing our products and services to you. These tools employ cookies, which are small pieces of text stored in a file by your web browser and sent to websites that you visit, to collect information, track website usage and viewing trends such as the number of hits, pages visited, videos and PDFs viewed and the length of user sessions in order to evaluate website performance and enhance navigation of the website. We may also collect other anonymous information, which is generally limited to technical and web navigation information such as the IP address of your device, internet browser type and operating system for purposes of analyzing the data to make First Trust’s website better and more useful to our users. The information collected does not include any personal identifiable information such as your name, address, phone number or email address unless you provide that information through the website for us to contact you in order to answer your questions or respond to your requests. To find out how to opt-out of these services click on: Google Analytics and AddThis.
Confidentiality and Security
With regard to our internal security procedures, First Trust restricts access to your nonpublic personal information to those First Trust employees who need to know that information to provide products or services to you. We maintain physical, electronic and procedural safeguards to protect your nonpublic personal information.
Policy Updates and Inquiries
As required by federal law, we will notify you of our privacy policy annually. We reserve the right to modify this policy at any time, however, if we do change it, we will tell you promptly. For questions about our policy, or for additional copies of this notice, please go to www.ftportfolios.com, or contact us at 1-800-621-1675 (First Trust Portfolios) or 1-800-222-6822 (First Trust Advisors).
March 2023
Page 63
 
First Trust Exchange-Traded Fund IV
INVESTMENT ADVISOR
First Trust Advisors L.P.
120 East Liberty Drive, Suite 400
Wheaton, IL 60187
ADMINISTRATOR, CUSTODIAN,
FUND ACCOUNTANT &
TRANSFER AGENT
The Bank of New York Mellon
240 Greenwich Street
New York, NY 10286
INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
Deloitte & Touche LLP
111 South Wacker Drive
Chicago, IL 60606
LEGAL COUNSEL
Chapman and Cutler LLP
320 South Canal Street
Chicago, IL 60606