FIRST TRUST
First Trust Exchange-Traded Fund VIII
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FT Cboe Vest International Equity Buffer ETF - March (YMAR)
FT Cboe Vest Nasdaq-100(R) Buffer ETF - March (QMAR)
FT Cboe Vest International Equity Buffer ETF - June (YJUN)
FT Cboe Vest Nasdaq-100(R) Buffer ETF - June (QJUN)
FT Cboe Vest U.S. Equity Enhance & Moderate Buffer ETF - June (XJUN)
FT Cboe Vest International Equity Buffer ETF - September (YSEP)
FT Cboe Vest Nasdaq-100(R) Buffer ETF - September (QSPT)
FT Cboe Vest International Equity Buffer ETF - December (YDEC)
FT Cboe Vest Nasdaq-100(R) Buffer ETF - December (QDEC)
FT Cboe Vest U.S. Equity Enhance & Moderate Buffer ETF - December (XDEC)
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Annual Report
For the Period Ended
August 31, 2022
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TABLE OF CONTENTS
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FIRST TRUST EXCHANGE-TRADED FUND VIII
ANNUAL REPORT
AUGUST 31, 2022
Shareholder Letter........................................................... 2
Fund Performance Overview
FT Cboe Vest International Equity Buffer ETF - March (YMAR)............... 3
FT Cboe Vest Nasdaq-100(R) Buffer ETF - March (QMAR)...................... 4
FT Cboe Vest International Equity Buffer ETF - June (YJUN)................ 5
FT Cboe Vest Nasdaq-100(R) Buffer ETF - June (QJUN)....................... 6
FT Cboe Vest U.S. Equity Enhance & Moderate Buffer ETF - June (XJUN)...... 7
FT Cboe Vest International Equity Buffer ETF - September (YSEP)........... 8
FT Cboe Vest Nasdaq-100(R) Buffer ETF - September (QSPT).................. 9
FT Cboe Vest International Equity Buffer ETF - December (YDEC)............ 10
FT Cboe Vest Nasdaq-100(R) Buffer ETF - December (QDEC)................... 11
FT Cboe Vest U.S. Equity Enhance & Moderate Buffer ETF - December (XDEC).. 12
Notes to Fund Performance Overview........................................... 13
Portfolio Commentary......................................................... 14
Understanding Your Fund Expenses............................................. 18
Portfolio of Investments
FT Cboe Vest International Equity Buffer ETF - March (YMAR)............... 20
FT Cboe Vest Nasdaq-100(R) Buffer ETF - March (QMAR)...................... 22
FT Cboe Vest International Equity Buffer ETF - June (YJUN)................ 24
FT Cboe Vest Nasdaq-100(R) Buffer ETF - June (QJUN)....................... 26
FT Cboe Vest U.S. Equity Enhance & Moderate Buffer ETF - June (XJUN)...... 28
FT Cboe Vest International Equity Buffer ETF - September (YSEP)........... 30
FT Cboe Vest Nasdaq-100(R) Buffer ETF - September (QSPT).................. 32
FT Cboe Vest International Equity Buffer ETF - December (YDEC)............ 34
FT Cboe Vest Nasdaq-100(R) Buffer ETF - December (QDEC)................... 36
FT Cboe Vest U.S. Equity Enhance & Moderate Buffer ETF - December (XDEC).. 38
Statements of Assets and Liabilities......................................... 40
Statements of Operations..................................................... 42
Statements of Changes in Net Assets.......................................... 44
Financial Highlights......................................................... 48
Notes to Financial Statements................................................ 54
Report of Independent Registered Public Accounting Firm...................... 65
Additional Information....................................................... 67
Board of Trustees and Officers............................................... 74
Privacy Policy............................................................... 76
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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/or Cboe Vest(SM) Financial LLC ("Cboe Vest" or the
"Sub-Advisor") and their respective representatives, taking into account the
information currently available to them. Forward-looking statements include all
statements that do not relate solely to current or historical fact. For example,
forward-looking statements include the use of words such as "anticipate,"
"estimate," "intend," "expect," "believe," "plan," "may," "should," "would" or
other words that convey uncertainty of future events or outcomes.
Forward-looking statements involve known and unknown risks, uncertainties and
other factors that may cause the actual results, performance or achievements of
the series of First Trust Exchange-Traded Fund VIII (the "Trust") described in
this report (each such series is referred to as a "Fund" and collectively, as
the "Funds") to be materially different from any future results, performance or
achievements expressed or implied by the forward-looking statements. When
evaluating the information included in this report, you are cautioned not to
place undue reliance on these forward-looking statements, which reflect the
judgment of the Advisor and/or Sub-Advisor and their respective representatives
only as of the date hereof. We undertake no obligation to publicly revise or
update these forward-looking statements to reflect events and circumstances that
arise after the date hereof.
PERFORMANCE AND RISK DISCLOSURE
There is no assurance that any Fund described in this report will achieve its
investment objective. Each Fund is subject to market risk, which is the
possibility that the market values of securities owned by the Fund will decline
and that the value of the Fund's shares may therefore be less than what you paid
for them. Accordingly, you can lose money investing in a Fund. See "Risk
Considerations" in the Additional Information section of this report for a
discussion of certain other risks of investing in the Funds.
Performance data quoted represents past performance, which is no guarantee of
future results, and current performance may be lower or higher than the figures
shown. For the most recent month-end performance figures, please visit
www.ftportfolios.com or speak with your financial advisor. Investment returns,
net asset value and share price will fluctuate and Fund shares, when sold, may
be worth more or less than their original cost.
The Advisor may also periodically provide additional information on Fund
performance on each Fund's webpage at www.ftportfolios.com.
HOW TO READ THIS REPORT
This report contains information that may help you evaluate your investment. It
includes details about each Fund and presents data and analysis that provide
insight into each Fund's performance and investment approach.
By reading the portfolio commentary from the portfolio management team of the
Funds, you may obtain an understanding of how the market environment affected
each Fund's performance. The statistical information that follows may help you
understand each 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 and/or Sub-Advisor are just that: informed opinions. They should not be
considered to be promises or advice. The opinions, like the statistics, cover
the period through the date on the cover of this report. The material risks of
investing in each Fund are spelled out in the prospectus, statement of
additional information, and other Fund regulatory filings.
Page 1
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SHAREHOLDER LETTER
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FIRST TRUST EXCHANGE-TRADED FUND VIII
ANNUAL LETTER FROM THE CHAIRMAN AND CEO
AUGUST 31, 2022
Dear Shareholders:
First Trust is pleased to provide you with the annual report for certain series
of the First Trust Exchange-Traded Fund VIII (the "Funds"), which contains
detailed information about the Funds for the twelve months ended August 31,
2022. Please note that some of the Funds were incepted after September 1, 2021,
the start of the reporting period, so information in this letter and the report
prior to those inception dates will not apply to all Funds.
At their most recent meeting (September 20-21, 2022), the Federal Open Market
Committee announced a 75 basis point interest rate hike, the third rate hike in
as many meetings. Overall, the Federal Reserve (the "Fed") has raised its
benchmark Federal Funds target rate (upper bound) from 0.25% this past March to
3.25% as of September 30, 2022, the fastest pace for rate hikes since 1994. The
Fed is hiking interest rates aggressively to combat the surge in inflation that
commenced in the second quarter of 2021. Perhaps the most common measure of
inflation is the Consumer Price Index ("CPI"). The CPI has averaged 3.0% per
year since 1926 but stood at an eye-popping 8.3% on a trailing 12-month basis in
August 2022. Its recent high point was 9.1% in June 2022. For borrowers, these
rate hikes will raise the cost of capital, making it tougher to secure loans for
consumers and businesses. The goal is to raise interest rates high enough to
cool some of the demand for goods and services so that inflation can begin to
moderate. The Fed would eventually like to see the CPI back near the 2.0% level.
It will take some time to play out. Guidance from Fed Chairman Jerome Powell
indicates that more rate hikes are coming, perhaps as much as another 100 basis
points by year-end. We'll see.
One of the areas that has yet to cool off is the housing market, in my opinion.
We have seen a substantial selloff this year in the stock and bond markets, but
not housing. Prices appreciated markedly across the U.S. during the coronavirus
("COVID-19") pandemic. Demand was high and inventories were uncharacteristically
low. Simply put, housing affordability has become a huge challenge for many
prospective buyers. The S&P CoreLogic Case-Shiller U.S. National Home Price
Index, which tracks the value of single-family homes, soared 45.2% from the end
of 2019 through June 2022. Keep in mind, historically, home prices tend to rise
with inflation over time. They are not supposed to increase 45% over 30 months.
The rapid increase in short-term lending rates has caused the rate on a 30-year
fixed-rate mortgage to nearly double from 3.27% at the end of 2021 to 6.43% as
of September 21, 2022, according to Bankrate. The sharp rise in mortgage rates
is just beginning to have a slight effect on demand. Redfin reported that close
to 63,000 deals on existing homes fell through in July 2022, or around 16% of
homes under contract that month, according to CNBC.
Fed Chairman Powell is trying to engineer a soft landing for the economy via
monetary policy. In other words, the Fed is trying to avoid a deep and lengthy
recession. That is why the relative resilience of the real estate markets, both
residential and commercial, is so critical at this juncture. One other plus
going for the U.S. economy today is the strong labor market. As of this report,
companies are still hiring. If these sources of strength eventually succumb to
the economic headwinds and turn weaker, the odds of achieving a soft landing
drop dramatically, in my opinion. For those investors who like to follow the
news closely, in addition to monitoring the state of the economy, keep an eye on
the war between Russia and Ukraine as well as the COVID-19-induced lockdowns of
cities in China. Any good news on those two fronts could be a net positive for
the markets moving forward. As I previously noted, it is going to take some time
to remedy this situation. As always, we encourage investors to be diversified
and stay the course.
Thank you for giving First Trust the opportunity to play a role in your
financial future. We value our relationship with you and will report on the
Funds again in six months.
Sincerely,
/s/ James A. Bowen
James A. Bowen
Chairman of the Board of Trustees
Chief Executive Officer of First Trust Advisors L.P.
Page 2
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FUND PERFORMANCE OVERVIEW (UNAUDITED)
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FT CBOE VEST INTERNATIONAL EQUITY BUFFER ETF - MARCH (YMAR)
The investment objective of the FT Cboe Vest International Equity Buffer ETF -
March (the "Fund") is to seek to provide investors with returns that match the
price return of the iShares MSCI EAFE ETF (the "Underlying ETF"), up to a
predetermined upside cap of 20.70% (before fees and expenses) and 19.80% (after
fees and expenses, excluding brokerage commissions, trading fees, taxes and
extraordinary expenses not included in the Fund's management fee), while
providing a buffer (before fees and expenses) against the first 10% of
Underlying ETF losses, over the period from March 21, 2022 to March 17, 2023
(the "Outcome Period").* Under normal market conditions, the Fund will invest
substantially all of its assets in FLexible EXchange(R) Options ("FLEX Options")
that reference the price performance of the Underlying ETF. Subsequent Outcome
Periods will begin on the day the prior Outcome Period ends and will end on the
approximate one-year anniversary of that new Outcome Period. On the first day of
each new Outcome Period, the Fund resets by investing in a new set of FLEX
Options that will provide a new cap for the new Outcome Period. This means that
the cap will change for each Outcome Period based upon prevailing market
conditions at the beginning of each Outcome Period. The Fund will be perpetually
offered and not terminate after the initial or any subsequent Outcome Period. An
investor that purchases Fund shares other than on the first day of an Outcome
Period and/or sells Fund shares prior to the end of an Outcome Period may
experience results that are very different from the target outcomes sought by
the Fund for that Outcome Period. The Fund is classified as non-diversified
under the Investment Company Act of 1940, as amended. The shares of the Fund are
listed and traded on the Cboe BZX Exchange, Inc., under the ticker symbol
"YMAR."
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PERFORMANCE
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AVERAGE ANNUAL CUMULATIVE
TOTAL RETURNS TOTAL RETURNS
1 Year Inception Inception
Ended (3/19/21) (3/19/21)
8/31/22 to 8/31/22 to 8/31/22
FUND PERFORMANCE
NAV -15.00% -7.17% -10.24%
Market Price -15.06% -7.31% -10.44%
INDEX PERFORMANCE
MSCI EAFE Index - Price Return -21.89% -12.42% -17.52%
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(See Notes to Fund Performance Overview on page 13.)
PERFORMANCE OF A $10,000 INITIAL INVESTMENT
MARCH 19, 2021 - AUGUST 31, 2022
FT Cboe Vest International Nasdaq 100 Stock
Equity Buffer ETF - March Index - Price Return
3/19/21 $10,000 $10,000
8/31/21 10,559 10,560
2/28/22 9,900 9,766
8/31/22 8,976 8,248
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.
FREQUENCY DISTRIBUTION OF DISCOUNTS AND PREMIUMS
Information showing the number of days the market price of the Fund's shares was
greater (at a premium) and less (at a discount) than the Fund's net asset value
for the most recently completed year, and the most recently completed calendar
quarters since that year (or life of the Fund, if shorter) is available at
https://www.ftportfolios.com/Retail/etf/home.aspx.
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* Prior to March 21, 2022, the Fund's investment objective included an
upside cap of 14.18% (before fees, expenses and taxes) and 13.29% (after
fees and expenses, excluding brokerage commissions, trading fees, taxes
and extraordinary expenses not included in the Fund's management fee) and
an Outcome Period of March 22, 2021 to March 18, 2022.
Page 3
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FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED)
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FT CBOE VEST NASDAQ-100(R) BUFFER ETF - MARCH (QMAR)
The investment objective of the FT Cboe Vest Nasdaq-100(R) Buffer ETF - March
(the "Fund") is to seek to provide investors with returns that match the price
return of the Invesco QQQ Trust(SM), Series 1 (the "Underlying ETF"), up to a
predetermined upside cap of 17.25% (before fees and expenses) and 16.35% (after
fees and expenses, excluding brokerage commissions, trading fees, taxes and
extraordinary expenses not included in the Fund's management fee), while
providing a buffer (before fees, expenses and taxes) against the first 10% of
Underlying ETF losses, over the period from March 21, 2022 to March 17, 2023
(the "Outcome Period").* Under normal market conditions, the Fund will invest
substantially all of its assets in FLexible EXchange(R) Options ("FLEX Options")
that reference the price performance of the Underlying ETF. Subsequent Outcome
Periods will begin on the day the prior Outcome Period ends and will end on the
approximate one-year anniversary of that new Outcome Period. On the first day of
each new Outcome Period, the Fund resets by investing in a new set of FLEX
Options that will provide a new cap for the new Outcome Period. This means that
the cap will change for each Outcome Period based upon prevailing market
conditions at the beginning of each Outcome Period. The Fund will be perpetually
offered and not terminate after the initial or any subsequent Outcome Period. An
investor that purchases Fund shares other than on the first day of an Outcome
Period and/or sells Fund shares prior to the end of an Outcome Period may
experience results that are very different from the target outcomes sought by
the Fund for that Outcome Period. The Fund is classified as non-diversified
under the Investment Company Act of 1940, as amended. The shares of the Fund are
listed and traded on the Cboe BZX Exchange, Inc., under the ticker symbol
"QMAR."
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PERFORMANCE
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AVERAGE ANNUAL CUMULATIVE
TOTAL RETURNS TOTAL RETURNS
1 Year Inception Inception
Ended (3/19/21) (3/19/21)
8/31/22 to 8/31/22 to 8/31/22
FUND PERFORMANCE
NAV -8.69% 0.86% 1.25%
Market Price -8.96% 0.62% 0.90%
INDEX PERFORMANCE
Nasdaq-100 Index(R) - Price Return -21.24% -3.21% -4.62%
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(See Notes to Fund Performance Overview on page 13.)
PERFORMANCE OF A $10,000 INITIAL INVESTMENT
MARCH 19, 2021 - AUGUST 31, 2022
FT Cboe Vest Nasdaq-100(R) Nasdaq-100 Index(R) -
Buffer ETF - March Price Return
3/19/21 $10,000 $10,000
8/31/21 11,088 12,110
2/28/22 10,958 11,065
8/31/22 10,125 9,538
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.
FREQUENCY DISTRIBUTION OF DISCOUNTS AND PREMIUMS
Information showing the number of days the market price of the Fund's shares was
greater (at a premium) and less (at a discount) than the Fund's net asset value
for the most recently completed year, and the most recently completed calendar
quarters since that year (or life of the Fund, if shorter) is available at
https://www.ftportfolios.com/Retail/etf/home.aspx.
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* Prior to March 21, 2022, the Fund's investment objective included an
upside cap of 15.51% (before fees, expenses and taxes) and 14.61% (after
fees and expenses, excluding brokerage commissions, trading fees, taxes
and extraordinary expenses not included in the Fund's management fee) and
an Outcome Period of March 22, 2021 to March 18, 2022.
Page 4
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FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED)
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FT CBOE VEST INTERNATIONAL EQUITY BUFFER ETF - JUNE (YJUN)
The investment objective of the FT Cboe Vest International Equity Buffer ETF -
June (the "Fund") is to seek to provide investors with returns (before fees,
expenses and taxes) that match the price return of the iShares MSCI EAFE ETF
(the "Underlying ETF"), up to a predetermined upside cap of 24.20% (before fees,
expenses and taxes) and 23.31% (after fees and expenses, excluding brokerage
commissions, trading fees, taxes and extraordinary expenses not included in the
Fund's management fee), while providing a buffer against the first 10% (before
fees, expenses and taxes) of Underlying ETF losses, over the period from June
21, 2022 to June 16, 2023 (the "Outcome Period").* Under normal market
conditions, the Fund will invest substantially all of its assets in FLexible
EXchange(R) Options ("FLEX Options") that reference the price performance of the
Underlying ETF. Subsequent Outcome Periods will begin on the day the prior
Outcome Period ends and will end on the approximate one-year anniversary of that
new Outcome Period. On the first day of each new Outcome Period, the Fund resets
by investing in a new set of FLEX Options that will provide a new cap for the
new Outcome Period. This means that the cap will change for each Outcome Period
based upon prevailing market conditions at the beginning of each Outcome Period.
The Fund will be perpetually offered and not terminate after the initial or any
subsequent Outcome Period. An investor that purchases Fund shares other than on
the first day of an Outcome Period and/or sells Fund shares prior to the end of
an Outcome Period may experience results that are very different from the target
outcomes sought by the Fund for that Outcome Period. The Fund is classified as
non-diversified under the Investment Company Act of 1940, as amended. The shares
of the Fund are listed and traded on the Cboe BZX Exchange, Inc., under the
ticker symbol "YJUN."
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PERFORMANCE
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AVERAGE ANNUAL CUMULATIVE
TOTAL RETURNS TOTAL RETURNS
1 Year Inception Inception
Ended (6/18/21) (6/18/21)
8/31/22 to 8/31/22 to 8/31/22
FUND PERFORMANCE
NAV -14.68% -10.58% -12.58%
Market Price -14.22% -10.62% -12.63%
INDEX PERFORMANCE
MSCI EAFE Index - Price Return -21.89% -17.17% -20.27%
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(See Notes to Fund Performance Overview on page 13.)
PERFORMANCE OF A $10,000 INITIAL INVESTMENT
JUNE 18, 2021 - AUGUST 31, 2022
FT Cboe Vest International MSCI EAFEE Index -
Equity Buffer ETF - June Price Return
6/16/21 $10,000 $10,000
8/31/21 10,246 10,207
2/28/22 9,664 9,439
8/31/22 8,742 7,973
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.
FREQUENCY DISTRIBUTION OF DISCOUNTS AND PREMIUMS
Information showing the number of days the market price of the Fund's shares was
greater (at a premium) and less (at a discount) than the Fund's net asset value
for the most recently completed year, and the most recently completed calendar
quarters since that year (or life of the Fund, if shorter) is available at
https://www.ftportfolios.com/Retail/etf/home.aspx.
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* Prior to June 21, 2022, the Fund's investment objective included an upside
cap of 11.81% (before fees, expenses and taxes) and 10.91% (after fees and
expenses, excluding brokerage commissions, trading fees, taxes and
extraordinary expenses not included in the Fund's management fee) and an
Outcome Period of June 21, 2021 to June 17, 2022.
Page 5
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FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED)
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FT CBOE VEST NASDAQ-100(R) BUFFER ETF - JUNE (QJUN)
The investment objective of the FT Cboe Vest Nasdaq-100(R) Buffer ETF - June
(the "Fund") is to seek to provide investors with returns (before fees, expenses
and taxes) that match the price return of the Invesco QQQ Trust(SM), Series 1
(the "Underlying ETF"), up to a predetermined upside cap of 25.19% (before fees,
expenses and taxes) and 24.30% (after fees and expenses, excluding brokerage
commissions, trading fees, taxes and extraordinary expenses not included in the
Fund's management fee), while providing a buffer against the first 10% (before
fees, expenses and taxes) of Underlying ETF losses, over the period from June
21, 2022 to June 16, 2023 (the "Outcome Period").* Under normal market
conditions, the Fund will invest substantially all of its assets in FLexible
EXchange(R) Options ("FLEX Options") that reference the price performance of the
Underlying ETF. Subsequent Outcome Periods will begin on the day the prior
Outcome Period ends and will end on the approximate one-year anniversary of that
new Outcome Period. On the first day of each new Outcome Period, the Fund resets
by investing in a new set of FLEX Options that will provide a new cap for the
new Outcome Period. This means that the cap will change for each Outcome Period
based upon prevailing market conditions at the beginning of each Outcome Period.
The Fund will be perpetually offered and not terminate after the initial or any
subsequent Outcome Period. An investor that purchases Fund shares other than on
the first day of an Outcome Period and/or sells Fund shares prior to the end of
an Outcome Period may experience results that are very different from the target
outcomes sought by the Fund for that Outcome Period. The Fund is classified as
non-diversified under the Investment Company Act of 1940, as amended. The shares
of the Fund are listed and traded on the Cboe BZX Exchange, Inc., under the
ticker symbol "QJUN."
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PERFORMANCE
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AVERAGE ANNUAL CUMULATIVE
TOTAL RETURNS TOTAL RETURNS
1 Year Inception Inception
Ended (6/18/21) (6/18/21)
8/31/22 to 8/31/22 to 8/31/22
FUND PERFORMANCE
NAV -10.35% -4.54% -5.44%
Market Price -10.41% -4.67% -5.59%
INDEX PERFORMANCE
Nasdaq-100 Index(R) - Price Return -21.24% -10.64% -12.65%
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(See Notes to Fund Performance Overview on page 13.)
PERFORMANCE OF A $10,000 INITIAL INVESTMENT
JUNE 18, 2021 - AUGUST 31, 2022
FT Cboe Vest Growth-100(R) Nasdaq-100 Index(R) -
Buffer ETF - June Price Return
6/18/21 $10,000 $10,000
8/31/21 10,549 11,091
2/28/22 10,211 10,134
8/31/22 9,456 8,735
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.
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.
-----------------------------
* Prior to June 21, 2022, the Fund's investment objective included an upside
cap of 13.00% (before fees, expenses and taxes) and 12.10% (after fees and
expenses, excluding brokerage commissions, trading fees, taxes and
extraordinary expenses not included in the Fund's management fee) and an
Outcome Period of June 21, 2021 to June 17, 2022.
Page 6
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FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED)
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FT CBOE VEST U.S. EQUITY ENHANCE & MODERATE BUFFER ETF - JUNE (XJUN)
The investment objective of the FT Cboe Vest U.S. Equity Enhance & Moderate
Buffer ETF - June (the "Fund") is to seek to provide investors with returns
approximately twice any positive price return of the SPDR(R) S&P 500(R) ETF
Trust (the "Underlying ETF"), up to a predetermined upside cap of 14.80% (before
fees, expenses and taxes) and 13.95% (after fees and expenses, excluding
brokerage commissions, trading fees, taxes and extraordinary expenses not
included in the Fund's management fee), while providing a buffer (before fees,
expenses and taxes) against the first 15% of Underlying ETF losses, over the
period from June 21, 2022 to June 16, 2023 (the "Outcome Period").* Under normal
market conditions, the Fund will invest substantially all of its assets in
FLexible EXchange(R) Options ("FLEX Options") that reference the price
performance of the Underlying ETF. Subsequent Outcome Periods will begin on the
day the prior Outcome Period ends and will end on the approximate one-year
anniversary of that new Outcome Period. On the first day of each new Outcome
Period, the Fund resets by investing in a new set of FLEX Options that will
provide a new cap for the new Outcome Period. This means that the cap will
change for each Outcome Period based upon prevailing market conditions at the
beginning of each Outcome Period. The Fund will be perpetually offered and not
terminate after the initial or any subsequent Outcome Period. An investor that
purchases Fund shares other than on the first day of an Outcome Period and/or
sells Fund shares prior to the end of an Outcome Period may experience results
that are very different from the target outcomes sought by the Fund for that
Outcome Period. The Fund is classified as non-diversified under the Investment
Company Act of 1940, as amended. The shares of the Fund are listed and traded on
the Cboe BZX Exchange, Inc., under the ticker symbol "XJUN."
---------------------------------------------------------------------------------------------------------------------
PERFORMANCE
---------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL CUMULATIVE
TOTAL RETURNS TOTAL RETURNS
1 Year Inception Inception
Ended (7/12/21) (7/12/21)
8/31/22 to 8/31/22 to 8/31/22
FUND PERFORMANCE
NAV 0.66% 1.74% 1.99%
Market Price 0.77% 1.63% 1.85%
INDEX PERFORMANCE
S&P 500(R) Index - Price Return -12.55% -8.67% -9.80%
---------------------------------------------------------------------------------------------------------------------
(See Notes to Fund Performance Overview on page 13.)
PERFORMANCE OF A $10,000 INITIAL INVESTMENT
JULY 12, 2021 - AUGUST 31, 2022
FT Cboe Vest U.S. Equity
Enhance & Moderate Buffer S&P 500(R) Index -
ETF - June Price Return
7/12/21 $10,000 $10,000
8/31/21 10,131 10,315
2/28/22 10,098 9,976
8/31/22 10,199 9,020
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.
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.
-----------------------------
* Prior to June 21, 2022, the Fund's investment objective included an upside
cap of 6.16% (before fees, expenses and taxes) and 5.37% (after fees and
expenses, excluding brokerage commissions, trading fees, taxes and
extraordinary expenses not included in the Fund's management fee) and an
Outcome Period of June 13, 2021 to June 17, 2022.
Page 7
--------------------------------------------------------------------------------
FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------
FT CBOE VEST INTERNATIONAL EQUITY BUFFER ETF - SEPTEMBER (YSEP)
The investment objective of the FT Cboe Vest International Equity Buffer ETF -
September (the "Fund") is to seek to provide investors with returns that match
the price return of the iShares MSCI EAFE ETF (the "Underlying ETF"), up to a
predetermined upside cap of 12.93% (before fees, expenses and taxes) and 12.03%
(after fees and expenses, excluding brokerage commissions, trading fees, taxes
and extraordinary expenses not included in the Fund's management fee), while
providing a buffer against the first 10% (before fees, expenses and taxes) of
Underlying ETF losses, over the period from September 20, 2021 through September
16, 2022 (the "Outcome Period"). Under normal market conditions, the Fund will
invest substantially all of its assets in FLexible EXchange(R) Options ("FLEX
Options") that reference the price performance of the Underlying ETF. Subsequent
Outcome Periods will begin on the day the prior Outcome Period ends and will end
on the approximate one-year anniversary of that new Outcome Period. On the first
day of each new Outcome Period, the Fund resets by investing in a new set of
FLEX Options that will provide a new cap for the new Outcome Period. This means
that the cap will change for each Outcome Period based upon prevailing market
conditions at the beginning of each Outcome Period. An investor that purchases
Fund shares other than on the first day of an Outcome Period and/or sells Fund
shares prior to the end of an Outcome Period may experience result that are very
different from the target outcomes sought by the Fund for that Outcome Period.
The Fund is classified as non-diversified under the Investment Company Act of
1940, as amended. The shares of the Fund are listed and traded on the Cboe BZX
Exchange, Inc., under the ticker symbol "YSEP."
---------------------------------------------------------------------------------------------------------------------
PERFORMANCE
---------------------------------------------------------------------------------------------------------------------
CUMULATIVE
TOTAL RETURNS
Inception
(9/17/21)
to 8/31/22
FUND PERFORMANCE
NAV -13.93%
Market Price -14.13%
INDEX PERFORMANCE
MSCI EAFE Index - Price Return -21.63%
---------------------------------------------------------------------------------------------------------------------
(See Notes to Fund Performance Overview on page 13.)
PERFORMANCE OF A $10,000 INITIAL INVESTMENT
SEPTEMBER 17, 2021 - AUGUST 31, 2022
FT Cboe Vest International MSCI EAFE Index -
Equity Buffer ETF - September Price Return
9/17/21 $10,000 $10,000
2/28/22 9,509 9,279
8/31/22 8,607 7,837
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.
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 8
--------------------------------------------------------------------------------
FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------
FT CBOE VEST NASDAQ-100(R) BUFFER ETF - SEPTEMBER (QSPT)
The investment objective of the FT Cboe Vest Nasdaq-100(R) Buffer ETF -
September (the "Fund") is to seek to provide investors with returns that match
the price return of the Invesco QQQ Trust(SM), Series 1 (the "Underlying ETF"),
up to a predetermined upside cap of 13.65% (before fees, expenses and taxes) and
12.75% (after fees and expenses, excluding brokerage commissions, trading fees,
taxes and extraordinary expenses not included in the Fund's management fee),
while providing a buffer against the first 10% (before fees, expenses and taxes)
of Underlying ETF losses, over the period from September 20, 2021 through
September 16, 2022 (the "Outcome Period"). Under normal market conditions, the
Fund will invest substantially all of its assets in FLexible EXchange(R) Options
("FLEX Options") that reference the price performance of the Underlying ETF.
Subsequent Outcome Periods will begin on the day the prior Outcome Period ends
and will end on the approximate one-year anniversary of that new Outcome Period.
On the first day of each new Outcome Period, the Fund resets by investing in a
new set of FLEX Options that will provide a new cap for the new Outcome Period.
This means that the cap will change for each Outcome Period based upon
prevailing market conditions at the beginning of each Outcome Period. An
investor that purchases Fund shares other than on the first day of an Outcome
Period and/or sells Fund shares prior to the end of an Outcome Period may
experience result that are very different from the target outcomes sought by the
Fund for that Outcome Period. The Fund is classified as non-diversified under
the Investment Company Act of 1940, as amended. The shares of the Fund are
listed and traded on the Cboe BZX Exchange, Inc., under the ticker symbol
"QSPT."
---------------------------------------------------------------------------------------------------------------------
PERFORMANCE
---------------------------------------------------------------------------------------------------------------------
CUMULATIVE
TOTAL RETURNS
Inception
(9/17/21)
to 8/31/22
FUND PERFORMANCE
NAV -10.75%
Market Price -10.70%
INDEX PERFORMANCE
Nasdaq-100 Index(R) - Price Return -19.97%
---------------------------------------------------------------------------------------------------------------------
(See Notes to Fund Performance Overview on page 13.)
PERFORMANCE OF A $10,000 INITIAL INVESTMENT
SEPTEMBER 17, 2021 - AUGUST 31, 2022
FT Cboe Vest Nasdaq-100(R) Nasdaq-100 Index(R) -
Buffer ETF - September Price Return
9/17/21 $10,000 $10,000
2/28/22 9,648 9,285
8/31/22 8,925 8,003
Performance figures assume reinvestment of all distributions and do not reflect
the deduction of taxes that a shareholder would pay on Fund distributions or the
redemption or sale of Fund shares. An index is a statistical composite that
tracks a specified financial market or sector. Unlike the Fund, the 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.
FREQUENCY DISTRIBUTION OF DISCOUNTS AND PREMIUMS
Information showing the number of days the market price of the Fund's shares was
greater (at a premium) and less (at a discount) than the Fund's net asset value
for the most recently completed year, and the most recently completed calendar
quarters since that year (or life of the Fund, if shorter) is available at
https://www.ftportfolios.com/Retail/etf/home.aspx.
Page 9
--------------------------------------------------------------------------------
FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------
FT CBOE VEST INTERNATIONAL EQUITY BUFFER ETF - DECEMBER (YDEC)
The investment objective of the FT Cboe Vest International Equity Buffer ETF -
December (the "Fund") is to seek to provide investors with returns (before fees,
expenses and taxes) that match the price return of the iShares MSCI EAFE ETF
(the "Underlying ETF"), up to a predetermined upside cap of 10.75% (before fees,
expenses and taxes) and 9.85% (after fees and expenses, excluding brokerage
commissions, trading fees, taxes and extraordinary expenses not included in the
Fund's management fee), while providing a buffer against the first 10% (before
fees, expenses and taxes) of Underlying ETF losses, over the period from
December 20, 2021 to December 16, 2022 (the "Outcome Period").* Under normal
market conditions, the Fund will invest substantially all of its assets in
FLexible EXchange(R) Options ("FLEX Options") that reference the price
performance of the Underlying ETF. Subsequent Outcome Periods will begin on the
day the prior Outcome Period ends and will end on the approximate one-year
anniversary of that new Outcome Period. On the first day of each new Outcome
Period, the Fund resets by investing in a new set of FLEX Options that will
provide a new cap for the new Outcome Period. This means that the cap will
change for each Outcome Period based upon prevailing market conditions at the
beginning of each Outcome Period. The Fund will be perpetually offered and not
terminate after the initial or any subsequent Outcome Period. An investor that
purchases Fund shares other than on the first day of an Outcome Period and/or
sells Fund shares prior to the end of an Outcome Period may experience results
that are very different from the target outcomes sought by the Fund for that
Outcome Period. The Fund is classified as non-diversified under the Investment
Company Act of 1940, as amended. The shares of the Fund are listed and traded on
the Cboe BZX Exchange, Inc., under the ticker symbol "YDEC."
---------------------------------------------------------------------------------------------------------------------
PERFORMANCE
---------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL CUMULATIVE
TOTAL RETURNS TOTAL RETURNS
1 Year Inception Inception
Ended (12/18/20) (12/18/20)
8/31/22 to 8/31/22 to 8/31/22
FUND PERFORMANCE
NAV -14.74% -4.25% -7.13%
Market Price -14.80% -4.37% -7.33%
INDEX PERFORMANCE
MSCI EAFE Index - Price Return -21.89% -8.27% -13.66%
---------------------------------------------------------------------------------------------------------------------
(See Notes to Fund Performance Overview on page 13.)
PERFORMANCE OF A $10,000 INITIAL INVESTMENT
DECEMBER 18, 2020 - AUGUST 31, 2022
FT Cboe Vest International MSCI EAFE Index -
Equity Buffer ETF - December Price Return
12/18/20 $10,000 $10,000
2/28/21 10,184 10,175
8/31/21 10,892 11,055
2/28/22 10,134 10,224
8/31/22 9,287 8,634
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.
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.
-----------------------------
* Prior to December 20, 2021, the Fund's investment objective included an
upside cap of 13.79% (before fees, expenses and taxes) and 12.89% (after
fees and expenses, excluding brokerage commissions, trading fees, taxes
and extraordinary expenses not included in the Fund's management fee) and
an Outcome Period of December 21, 2020 to December 17, 2021.
Page 10
--------------------------------------------------------------------------------
FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------
FT CBOE VEST NASDAQ-100(R) BUFFER ETF - DECEMBER (QDEC)
The investment objective of the FT Cboe Vest Nasdaq-100(R) Buffer ETF - December
(the "Fund") is to seek to provide investors with returns (before fees, expenses
and taxes) that match the price return of the Invesco QQQ Trust(SM), Series 1
(the "Underlying ETF"), up to a predetermined upside cap of 15.89% (before fees,
expenses and taxes) and 14.99% (after fees and expenses, excluding brokerage
commissions, trading fees, taxes and extraordinary expenses not included in the
Fund's management fee), while providing a buffer against the first 10% (before
fees, expenses and taxes) of Underlying ETF losses, over the period from
December 20, 2021 to December 16, 2022 (the "Outcome Period").* Under normal
market conditions, the Fund will invest substantially all of its assets in
FLexible EXchange(R) Options ("FLEX Options") that reference the price
performance of the Underlying ETF. Subsequent Outcome Periods will begin on the
day the prior Outcome Period ends and will end on the approximate one-year
anniversary of that new Outcome Period. On the first day of each new Outcome
Period, the Fund resets by investing in a new set of FLEX Options that will
provide a new cap for the new Outcome Period. This means that the cap will
change for each Outcome Period based upon prevailing market conditions at the
beginning of each Outcome Period. The Fund will be perpetually offered and not
terminate after the initial or any subsequent Outcome Period. An investor that
purchases Fund shares other than on the first day of an Outcome Period and/or
sells Fund shares prior to the end of an Outcome Period may experience results
that are very different from the target outcomes sought by the Fund for that
Outcome Period. The Fund is classified as non-diversified under the Investment
Company Act of 1940, as amended. The shares of the Fund are listed and traded on
the Cboe BZX Exchange, Inc., under the ticker symbol "QDEC."
---------------------------------------------------------------------------------------------------------------------
PERFORMANCE
---------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL CUMULATIVE
TOTAL RETURNS TOTAL RETURNS
1 Year Inception Inception
Ended (12/18/20) (12/18/20)
8/31/22 to 8/31/22 to 8/31/22
FUND PERFORMANCE
NAV -11.79% 0.18% 0.30%
Market Price -11.68% 0.15% 0.25%
INDEX PERFORMANCE
Nasdaq-100 Index(R) - Price Return -21.24% -2.17% -3.66%
---------------------------------------------------------------------------------------------------------------------
(See Notes to Fund Performance Overview on page 13.)
PERFORMANCE OF A $10,000 INITIAL INVESTMENT
DECEMBER 18, 2020 - AUGUST 31, 2022
FT Cboe Vest Nasdaq-100(R) Nasdaq-100 Index(R) -
Buffer ETF - December Price Return
12/18/20 $10,000 $10,000
2/28/21 10,111 10,134
8/31/21 11,371 12,233
2/28/22 10,978 11,177
8/31/22 10,030 9,634
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.
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.
-----------------------------
* Prior to December 20, 2021, the Fund's investment objective included an
upside cap of 17.04% (before fees, expenses and taxes) and 16.14% (after
fees and expenses, excluding brokerage commissions, trading fees, taxes
and extraordinary expenses not included in the Fund's management fee) and
an Outcome Period of December 21, 2020 to December 17, 2021.
Page 11
--------------------------------------------------------------------------------
FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------
FT CBOE VEST U.S. EQUITY ENHANCE & MODERATE BUFFER ETF - DECEMBER (XDEC)
The investment objective of the FT Cboe Vest U.S. Equity Enhance & Moderate
Buffer ETF - December (the "Fund") is to seek to provide investors with returns
of approximately twice any positive price return of the SPDR(R) S&P 500(R) ETF
Trust (the "Underlying ETF"), up to a predetermined upside cap of 8.58% (before
fees, expenses and taxes) and 7.73% (after fees and expenses, excluding
brokerage commissions, trading fees, taxes and extraordinary expenses not
included in the Fund's management fee), while providing a buffer against the
first 15% (before fees, expenses and taxes) of Underlying ETF losses, over the
period from December 20, 2021 through December 16, 2022 (the "Outcome Period").
Under normal market conditions, the Fund will invest substantially all of its
assets in FLexible EXchange(R) Options ("FLEX Options") that reference the price
performance of the Underlying ETF. Subsequent Outcome Periods will begin on the
day the prior Outcome Period ends and will end on the approximate one-year
anniversary of that new Outcome Period. On the first day of each new Outcome
Period, the Fund resets by investing in a new set of FLEX Options that will
provide a new cap for the new Outcome Period. This means that the cap will
change for each Outcome Period based upon prevailing market conditions at the
beginning of each Outcome Period. An investor that purchases Fund shares other
than on the first day of an Outcome Period and/or sells Fund shares prior to the
end of an Outcome Period may experience result that are very different from the
target outcomes sought by the Fund for that Outcome Period. The Fund is
classified as non-diversified under the Investment Company Act of 1940, as
amended. The shares of the Fund are listed and traded on the Cboe BZX Exchange,
Inc., under the ticker symbol "XDEC."
---------------------------------------------------------------------------------------------------------------------
PERFORMANCE
---------------------------------------------------------------------------------------------------------------------
CUMULATIVE
TOTAL RETURNS
Inception
(12/17/21)
to 8/31/22
FUND PERFORMANCE
NAV -4.98%
Market Price -5.01%
INDEX PERFORMANCE
S&P 500(R) Index - Price Return -14.41%
---------------------------------------------------------------------------------------------------------------------
(See Notes to Fund Performance Overview on page 13.)
PERFORMANCE OF A $10,000 INITIAL INVESTMENT
DECEMBER 17, 2021 - AUGUST 31, 2022
FT Cboe Vest U.S. Equity
Enhance & Moderate S&P 500(R) Index -
Buffer ETF - December Price Return
12/17/21 $10,000 $10,000
2/28/22 9,839 9,466
8/31/22 9,502 8,559
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.
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 12
--------------------------------------------------------------------------------
NOTES TO FUND PERFORMANCE OVERVIEW (UNAUDITED)
--------------------------------------------------------------------------------
Total returns for the periods since inception are calculated from the inception
date of each Fund. "Average Annual Total Returns" represent the average annual
change in value of an investment over the periods indicated. "Cumulative Total
Returns" represent the total change in value of an investment over the periods
indicated.
Each Fund's per share net asset value ("NAV") is the value of one share of the
Fund and is computed by dividing the value of all assets of the Fund (including
accrued interest and dividends), less all liabilities (including accrued
expenses and dividends declared but unpaid), by the total number of outstanding
shares. The price used to calculate market return ("Market Price") is determined
by using the midpoint of the national best bid and offer price ("NBBO") as of
the time that the Fund's NAV is calculated. Under SEC rules, the NBBO consists
of the highest displayed buy and lowest sell prices among the various exchanges
trading the Fund at the time the Fund's NAV is calculated. Since shares of each
Fund did not trade in the secondary market until after the Fund's inception, for
the period from inception to the first day of secondary market trading in shares
of the Fund, the NAV of each Fund is used as a proxy for the secondary market
trading price to calculate market returns. NAV and market returns assume that
all distributions have been reinvested in each Fund at NAV and Market Price,
respectively.
An index is a statistical composite that tracks a specified financial market or
sector. Unlike each Fund, the indices do not actually hold a portfolio of
securities and therefore do not incur the expenses incurred by each Fund. These
expenses negatively impact the performance of each Fund. Also, market returns do
not include brokerage commissions that may be payable on secondary market
transactions. If brokerage commissions were included, market returns would be
lower. The total returns presented reflect the reinvestment of dividends on
securities in the indices. The returns presented do not reflect the deduction of
taxes that a shareholder would pay on Fund distributions or the redemption or
sale of Fund shares. The investment return and principal value of shares of each
Fund will vary with changes in market conditions. Shares of each Fund may be
worth more or less than their original cost when they are redeemed or sold in
the market. Each Fund's past performance is no guarantee of future performance.
Page 13
--------------------------------------------------------------------------------
PORTFOLIO COMMENTARY
--------------------------------------------------------------------------------
FIRST TRUST EXCHANGE-TRADED FUND VIII
ANNUAL REPORT
AUGUST 31, 2022 (UNAUDITED)
ADVISOR
First Trust Advisors L.P. ("First Trust" or the "Advisor") is the investment
advisor to FT Cboe Vest International Equity Buffer ETF - March ("YMAR"), FT
Cboe Vest Nasdaq-100(R) Buffer ETF - March ("QMAR"), FT Cboe Vest International
Equity Buffer ETF - June ("YJUN"), FT Cboe Vest Nasdaq-100(R) Buffer ETF - June
("QJUN"), FT Cboe Vest U.S. Equity Enhance & Moderate Buffer ETF - June
("XJUN"), FT Cboe Vest International Equity Buffer ETF - September ("YSEP"), FT
Cboe Vest Nasdaq-100(R) Buffer ETF - September ("QSPT"), FT Cboe Vest
International Equity Buffer ETF - December ("YDEC"), FT Cboe Vest Nasdaq-100(R)
Buffer ETF - December ("QDEC"), and FT Cboe Vest U.S. Equity Enhance & Moderate
Buffer ETF - December ("XDEC") (each a "Fund" and collectively, the "Funds").
First Trust is responsible for the ongoing monitoring of each Fund's investment
portfolio, managing each Fund's business affairs and providing certain
administrative services necessary for the management of each Fund.
SUB-ADVISOR
Cboe Vest(SM) Financial LLC ("Cboe Vest" or the "Sub-Advisor") serves as the
sub-advisor to the Funds. In this capacity, Cboe Vest is responsible for the
selection and ongoing monitoring of the securities in each Fund's investment
portfolio. Cboe Vest, with principal offices at 8350 Broad St., Suite 240,
McLean, Virginia 22102, was founded in 2012. Cboe Vest had approximately $8.6
billion under management or committed to management as of August 31, 2022.
PORTFOLIO MANAGEMENT TEAM
KARAN SOOD, MANAGING DIRECTOR OF CBOE VEST
HOWARD RUBIN, MANAGING DIRECTOR OF CBOE VEST
MARKET RECAP
Each of the monthly FT Cboe Vest Funds has an investment objective that seeks to
provide investors with returns (before fees, expenses, and taxes) that match
those of a specified reference exchange-traded fund ("ETF"), either the SPDR(R)
S&P 500(R) ETF Trust, the Invesco QQQ Trust(SM), Series 1, or the iShares MSCI
EAFE ETF (the "Underlying ETF" or "Reference ETF"), up to a predetermined upside
cap (after fees and expenses, excluding brokerage commissions, trading fees,
taxes and extraordinary expenses not included in the Fund's management fee),
while providing a buffer against a specific level (before fees, expenses and
taxes) of losses in the Reference ETF, over a specified time period.
During the 12-month period ended August 31, 2022, stock markets dropped
significantly as inflation surged and U.S. gross domestic product ("GDP") fell
for two consecutive quarters.
The S&P 500(R) Index, the well-known measure of U.S. large-cap stocks, ended the
period down 11.23%. Mid- and small-capitalization stocks, as measured by the S&P
MidCap 400(R) Index and the Russell 2000(R) Small Cap Index, fell as well,
losing 10.37% and 17.88%, respectively, during the same period. The Nasdaq-100
Index(R), a tech-heavy market measure, lost 20.63% during the same period.
International markets were hit even harder than the U.S., with broad foreign
market indices such as MSCI EAFE Index and MSCI Emerging Markets Index declining
by 19.80% and 21.80%, respectively, during the same period.
Within the S&P 500(R) Index during the 12-month period ended August 31, 2022,
the market continued to see dramatic variations in returns across the major
sectors of the economy. The Energy sector soared, gaining 75.77%, and outpacing
all other sectors by a wide margin during the period. The only other sector to
post a positive return for the same period was the Consumer Staples sector,
which gained 4.08%. On the downside, the worst performing sectors for the same
period were the Telecommunications sector (-35.19%), the Consumer Discretionary
sector (-16.16%), and Information Technology sector (-14.35%).
U.S. economic data all pointed to a slowing economy. GDP growth in the most
recent four quarterly reports (the third quarter 2021 through the second quarter
2022) saw seasonally adjusted annualized rates of +2.3%, +6.9%, -1.6%, and
-0.6%, sequentially. These two most recent reports thus meet the traditional
definition of a recession, which is two consecutive quarterly declines in GDP. A
current Bloomberg survey of economists shows a consensus projection of 1.0% GDP
growth for all of 2023 (versus 2022).
Page 14
--------------------------------------------------------------------------------
PORTFOLIO COMMENTARY (CONTINUED)
--------------------------------------------------------------------------------
FIRST TRUST EXCHANGE-TRADED FUND VIII
ANNUAL REPORT
AUGUST 31, 2022 (UNAUDITED)
The U.S. unemployment rate began the 12-month period ended August 31, 2022 at
5.2% (for August 2021) and quickly dropped below 4%, where it remained for most
of the period. The most recent report showed a small uptick and the rate now
sits at 3.7% (for August 2022).
U.S inflation levels continued to post concerningly high levels. The most recent
(July 2022) Consumer Price Index report shows year-over-year inflation running
at an 8.5% rate, up from 5.4% reported twelve months earlier. One component of
the economy that continued to overheat was the housing market. Housing prices in
the U.S. increased by 18.0% over the last twelve months, according to the most
recent (June 2022) S&P Case-Shiller U.S. National Home Price Index. This was on
top of an 18.1% increase in the prior 12 months, compounding to make for a
stunning 24-month increase in home prices of 39.3%.
Persistently higher inflation forced the Federal Reserve (the "Fed") to increase
short term rates at a much more rapid pace than the market had expected at the
beginning of the 12-month period ended August 31, 2022. The Fed has a stated
target of 2% inflation. The Fed began their rate hike cycle in January 2022,
and, as of this writing, the Fed has increased the Federal Funds target rate by
2.25%. The Fed began the period with the range being 0% to 0.25% and ended the
period with the range being 2.25% to 2.50%. Market participants are factoring in
additional rate hikes by the Fed by the end of 2022.
MARKET AND FUND OUTLOOK
Over the 12-month period ended August 31, 2022, implied volatilities in U.S.
equity markets averaged about 28.5%, according to the Cboe S&P 500(R) 1-Year
Volatility Index. This index is derived from option prices and estimates the
market's expectation of S&P 500(R) Index volatility for the next twelve months.
As of the end of the same period, the index stands at 29.3%. For comparison
purposes, the historical volatility of the S&P 500(R) Index since its inception
in 1957 has been about 15.7%. We anticipate that implied volatilities will
decline over the coming year. Buffer strategies, such as those used in the FT
Cboe Vest Funds, generally benefit from declining implied volatilities.
While most fixed income securities have seen their nominal yields increase
during the 12-month period ended August 31, 2022, many still have negative real
yields (i.e., nominal yield less the inflation rate). This continues to bode
poorly for future fixed income returns. For this reason, many market analysts
are claiming the traditional "60/40 stock/bond allocation" strategy is dead.
Investors are looking to reallocate away from fixed income investments.
The FT Cboe Vest Funds are an alternative that these investors should consider.
The FT Cboe Vest Funds are designed to protect investors against varying levels
of downside movements in their Reference ETF (e.g., SPY, QQQ, or EFA), while
limiting the investor's participation in larger upside moves in the Reference
ETF. In the current negative real yield environment, such Funds, in appropriate
allocations, can be suitable alternatives to fixed income investments.
PERFORMANCE ANALYSIS
The following table provides information pertaining to recent caps and
performance for the 12-month period ended August 31, 2022 for each Fund, as well
as an attribution analysis that estimates the impact of various factors on each
Fund's performance.
Each Fund's cap is reset at the Fund's annual reset date. The table shows the
caps that were in effect both at the beginning of the period and after the
annual reset date that occurred within the period. Both of these caps are shown
pre and post expenses. Funds that were launched within the period do not yet
have new caps, as they have not yet reached their first annual reset date.
Each Fund's performance may be impacted by a number of factors. These factors
include changes in each of: the level of the Reference ETF, the Reference ETF's
dividends, interest rates, implied volatility, and time to option expiration.
Generally, changes in the level of the Reference ETF is the primary factor, but
the other factors can also contribute significantly to Fund performance.
Additionally, expenses will impact Fund performance.
Page 15
--------------------------------------------------------------------------------
PORTFOLIO COMMENTARY (CONTINUED)
--------------------------------------------------------------------------------
FIRST TRUST EXCHANGE-TRADED FUND VIII
ANNUAL REPORT
AUGUST 31, 2022 (UNAUDITED)
The impact from these factors for the period are shown in the table under
"Estimated Performance Attribution."
-------------------------------------------------------------------------------------------------------------------------------
FUND TICKER YMAR QMAR YJUN QJUN XJUN YSEP QSPT
-------------------------------------------------------------------------------------------------------------------------------
Annual Expense Ratio 0.90% 0.90% 0.90% 0.90% 0.85% 0.90% 0.90%
Reporting Period Start Date 8/31/21 8/31/21 8/31/21 8/31/21 8/31/21 9/17/21 9/17/21
Reporting Period End Date 8/31/22 8/31/22 8/31/22 8/31/22 8/31/22 8/31/22 8/31/22
CAP INFORMATION:
Cap Prior to Annual Reset (pre-expenses) 14.18% 15.51% 11.81% 13.00% 6.16% N/A N/A
Cap Prior to Annual Reset (post-expenses) 13.29% 14.61% 10.91% 12.10% 5.37% N/A N/A
Reset Date (prior to 8/31/22) 3/18/22 3/18/22 6/17/22 6/17/22 6/17/22 N/A N/A
New Cap on Annual Reset Date (pre-expenses) 20.70% 17.25% 24.20% 25.19% 14.80% 12.93% 13.65%
New Cap on Annual Reset Date (post-expenses) 19.80% 16.35% 23.31% 24.30% 13.95% 12.03% 12.75%
PERFORMANCE (LATER OF 8/31/21 OR INCEPTION DATE, TO 8/31/22):
Fund Performance (using NAVs) -15.00% -8.69% -14.68% -10.35% 0.66% -13.93% -10.75%
Fund Performance (using Market Price) -15.06% -8.96% -14.22% -10.41% 0.77% -14.13% -10.70%
Reference Asset Price Return -23.49% -21.23% -23.49% -21.23% -12.49% -23.35% -19.94%
ESTIMATED PERFORMANCE ATTRIBUTION
Fund NAV Performance Attributed to:
a) Changes in Reference Asset -15.58% -11.09% -15.14% -10.82% -4.38% -17.13% -13.47%
b) Changes in other Variables* 1.48% 3.31% 1.36% 1.37% 5.89% 4.06% 3.58%
c) Expenses (pro-rated annual expense ratio) -0.90% -0.90% -0.90% -0.90% -0.85% -0.86% -0.86%
Attribution TOTAL -15.00% -8.69% -14.68% -10.35% 0.66% -13.93% -10.75%
* Includes changes in a) Reference Asset's dividends, b) interest rates, c)
implied volatility, and d) time to option expiration.
Page 16
--------------------------------------------------------------------------------
PORTFOLIO COMMENTARY (CONTINUED)
--------------------------------------------------------------------------------
FIRST TRUST EXCHANGE-TRADED FUND VIII
ANNUAL REPORT
AUGUST 31, 2022 (UNAUDITED)
----------------------------------------------------------------------------------
FUND TICKER YDEC QDEC XDEC
----------------------------------------------------------------------------------
Annual Expense Ratio 0.90% 0.90% 0.85%
Reporting Period Start Date 8/31/21 8/31/21 12/17/21
Reporting Period End Date 8/31/22 8/31/22 8/31/22
CAP INFORMATION:
Cap Prior to Annual Reset (pre-expenses) 13.79% 17.04% N/A
Cap Prior to Annual Reset (post-expenses) 12.89% 16.14% N/A
Reset Date (prior to 8/31/22) 12/17/21 12/17/21 N/A
New Cap on Annual Reset Date (pre-expenses) 10.75% 15.89% 8.58%
New Cap on Annual Reset Date (post-expenses) 9.85% 14.99% 7.73%
PERFORMANCE (LATER OF 8/31/21 OR INCEPTION DATE, TO 8/31/22):
Fund Performance (using NAVs) -14.74% -11.79% -4.98%
Fund Performance (using Market Price) -14.80% -11.68% -5.01%
Reference Asset Price Return -23.49% -21.23% -14.07%
ESTIMATED PERFORMANCE ATTRIBUTION
Fund NAV Performance Attributed to:
a) Changes in Reference Asset -15.82% -12.69% -7.17%
b) Changes in other Variables* 1.99% 1.80% 2.79%
c) Expenses (pro-rated annual expense ratio) -0.90% -0.90% -0.60%
Attribution TOTAL -14.74% -11.79% -4.98%
* Includes changes in a) Reference Asset's dividends, b) interest rates, c)
implied volatility, and d) time to option expiration.
Page 17
FIRST TRUST EXCHANGE-TRADED FUND VIII
UNDERSTANDING YOUR FUND EXPENSES
AUGUST 31, 2022 (UNAUDITED)
As a shareholder of FT Cboe Vest International Equity Buffer ETF - March, FT
Cboe Vest Nasdaq-100(R) Buffer ETF - March, FT Cboe Vest International Equity
Buffer ETF - June, FT Cboe Vest Nasdaq-100(R) Buffer ETF - June, FT Cboe Vest
U.S. Equity Enhance & Moderate Buffer ETF - June, FT Cboe Vest International
Equity Buffer ETF - September, FT Cboe Vest Nasdaq-100(R) Buffer ETF -
September, FT Cboe Vest International Equity Buffer ETF - December, FT Cboe Vest
Nasdaq-100(R) Buffer ETF - December or FT Cboe Vest U.S. Equity Enhance &
Moderate Buffer ETF - December (each a "Fund" and collectively, the "Funds"),
you incur two types of costs: (1) transaction costs; and (2) ongoing costs,
including management fees, distribution and/or service (12b-1) fees, if any, and
other Fund expenses. This Example is intended to help you understand your
ongoing costs of investing in the Funds and to compare these costs with the
ongoing costs of investing in other funds.
The Example is based on an investment of $1,000 invested at the beginning of the
period and held through the six-month period ended August 31, 2022.
ACTUAL EXPENSES
The first line in the following table provides information about actual account
values and actual expenses. You may use the information in this line, together
with the amount you invested, to estimate the expenses that you paid over the
period. Simply divide your account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.6), then multiply the result by the number
in the first line under the heading entitled "Expenses Paid During the Six-Month
Period" to estimate the expenses you paid on your account during this six-month
period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line in the following table provides information about hypothetical
account values and hypothetical expenses based on each Fund's actual expense
ratio and an assumed rate of return of 5% per year before expenses, which is not
each Fund's actual return. The hypothetical account values and expenses may not
be used to estimate the actual ending account balance or expenses you paid for
the period. You may use this information to compare the ongoing costs of
investing in the Funds and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholder reports
of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs such as brokerage
commissions. Therefore, the second line in the table is useful in comparing
ongoing costs only, and will not help you determine the relative total costs of
owning different funds. In addition, if these transactional costs were included,
your costs would have been higher.
---------------------------------------------------------------------------------------------------------------------------
ANNUALIZED
EXPENSE RATIO EXPENSES PAID
BEGINNING ENDING BASED ON THE DURING THE
ACCOUNT VALUE ACCOUNT VALUE SIX-MONTH SIX-MONTH
MARCH 1, 2022 AUGUST 31, 2022 PERIOD PERIOD (a)
---------------------------------------------------------------------------------------------------------------------------
FT CBOE VEST INTERNATIONAL EQUITY BUFFER ETF - MARCH (YMAR)
Actual $1,000.00 $ 906.70 0.90% $4.33
Hypothetical (5% return before expenses) $1,000.00 $1,020.67 0.90% $4.58
FT CBOE VEST NASDAQ-100(R) BUFFER ETF - MARCH (QMAR)
Actual $1,000.00 $ 924.00 0.90% $4.36
Hypothetical (5% return before expenses) $1,000.00 $1,020.67 0.90% $4.58
FT CBOE VEST INTERNATIONAL EQUITY BUFFER ETF - JUNE (YJUN)
Actual $1,000.00 $ 904.60 0.90% $4.32
Hypothetical (5% return before expenses) $1,000.00 $1,020.67 0.90% $4.58
FT CBOE VEST NASDAQ-100(R) BUFFER ETF - JUNE (QJUN)
Actual $1,000.00 $ 926.10 0.90% $4.37
Hypothetical (5% return before expenses) $1,000.00 $1,020.67 0.90% $4.58
FT CBOE VEST U.S. EQUITY ENHANCE & MODERATE BUFFER ETF - JUNE (XJUN)
Actual $1,000.00 $1,010.00 0.85% $4.31
Hypothetical (5% return before expenses) $1,000.00 $1,020.92 0.85% $4.33
Page 18
FIRST TRUST EXCHANGE-TRADED FUND VIII
UNDERSTANDING YOUR FUND EXPENSES (CONTINUED)
AUGUST 31, 2022 (UNAUDITED)
---------------------------------------------------------------------------------------------------------------------------
ANNUALIZED
EXPENSE RATIO EXPENSES PAID
BEGINNING ENDING BASED ON THE DURING THE
ACCOUNT VALUE ACCOUNT VALUE SIX-MONTH SIX-MONTH
MARCH 1, 2022 AUGUST 31, 2022 PERIOD PERIOD (a)
---------------------------------------------------------------------------------------------------------------------------
FT CBOE VEST INTERNATIONAL EQUITY BUFFER ETF - SEPTEMBER (YSEP)
Actual $1,000.00 $ 905.20 0.90% $4.32
Hypothetical (5% return before expenses) $1,000.00 $1,020.67 0.90% $4.58
FT CBOE VEST NASDAQ-100(R) BUFFER ETF - SEPTEMBER (QSPT)
Actual $1,000.00 $ 925.10 0.90% $4.37
Hypothetical (5% return before expenses) $1,000.00 $1,020.67 0.90% $4.58
FT CBOE VEST INTERNATIONAL EQUITY BUFFER ETF - DECEMBER (YDEC)
Actual $1,000.00 $ 916.40 0.90% $4.35
Hypothetical (5% return before expenses) $1,000.00 $1,020.67 0.90% $4.58
FT CBOE VEST NASDAQ-100(R) BUFFER ETF - DECEMBER (QDEC)
Actual $1,000.00 $ 913.70 0.90% $4.34
Hypothetical (5% return before expenses) $1,000.00 $1,020.67 0.90% $4.58
FT CBOE VEST U.S. EQUITY ENHANCE & MODERATE BUFFER ETF - DECEMBER (XDEC)
Actual $1,000.00 $ 965.80 0.85% $4.21
Hypothetical (5% return before expenses) $1,000.00 $1,020.92 0.85% $4.33
(a) Expenses are equal to the annualized expense ratio as indicated in the
table multiplied by the average account value over the period (March 1,
2022 through August 31, 2022), multiplied by 184/365 (to reflect the
six-month period).
Page 19
FT CBOE VEST INTERNATIONAL EQUITY BUFFER ETF - MARCH (YMAR)
PORTFOLIO OF INVESTMENTS
AUGUST 31, 2022
SHARES DESCRIPTION VALUE
-------------- ----------------------------------------------------------------------------------------------- --------------
MONEY MARKET FUNDS -- 1.0%
392,904 Dreyfus Government Cash Management Fund, Institutional Shares - 2.11% (a)...................... $ 392,904
(Cost $392,904) --------------
TOTAL INVESTMENTS -- 1.0%...................................................................... 392,904
(Cost $392,904) --------------
NUMBER OF NOTIONAL EXERCISE EXPIRATION
CONTRACTS DESCRIPTION AMOUNT PRICE DATE VALUE
-------------- --------------------------------------------------- ------------- ----------- ----------- --------------
PURCHASED OPTIONS -- 108.1%
CALL OPTIONS PURCHASED -- 90.4%
5,658 iShares MSCI EAFE ETF.............................. $ 34,909,860 $ 0.74 03/17/23 34,112,352
(Cost $40,299,916) --------------
PUT OPTIONS PURCHASED -- 17.7%
5,658 iShares MSCI EAFE ETF.............................. 34,909,860 73.77 03/17/23 6,673,414
(Cost $3,648,275) --------------
TOTAL PURCHASED OPTIONS........................................................................ 40,785,766
(Cost $43,948,191) --------------
WRITTEN OPTIONS -- (9.0)%
CALL OPTIONS WRITTEN -- (0.0)%
(5,658) iShares MSCI EAFE ETF.............................. (34,909,860) 89.04 03/17/23 (20,669)
(Premiums received $592,650) --------------
PUT OPTIONS WRITTEN -- (9.0)%
(5,658) iShares MSCI EAFE ETF.............................. (34,909,860) 66.39 03/17/23 (3,398,445)
(Premiums received $1,837,434) --------------
TOTAL WRITTEN OPTIONS.......................................................................... (3,419,114)
(Premiums received $2,430,084) --------------
NET OTHER ASSETS AND LIABILITIES -- (0.1)%..................................................... (29,072)
--------------
NET ASSETS -- 100.0%........................................................................... $ 37,730,484
==============
(a) Rate shown reflects yield as of August 31, 2022.
FUND ALLOCATION % OF NET ASSETS
-------------------------------------------------------------------
Money Market Funds 1.0%
Purchased Options 108.1
Written Options (9.0)
Net Other Assets and Liabilities (0.1)
--------
Total 100.0%
========
Page 20 See Notes to Financial Statements
FT CBOE VEST INTERNATIONAL EQUITY BUFFER ETF - MARCH (YMAR)
PORTFOLIO OF INVESTMENTS (CONTINUED)
AUGUST 31, 2022
-----------------------------
VALUATION INPUTS
A summary of the inputs used to value the Fund's investments as of August 31,
2022 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial
Statements):
ASSETS TABLE
LEVEL 2 LEVEL 3
TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT
VALUE AT QUOTED OBSERVABLE UNOBSERVABLE
8/31/2022 PRICES INPUTS INPUTS
-------------- -------------- -------------- --------------
Money Market Funds................................... $ 392,904 $ 392,904 $ -- $ --
Call Options Purchased............................... 34,112,352 -- 34,112,352 --
Put Options Purchased................................ 6,673,414 -- 6,673,414 --
-------------- -------------- -------------- --------------
Total................................................ $ 41,178,670 $ 392,904 $ 40,785,766 $ --
============== ============== ============== ==============
LIABILITIES TABLE
LEVEL 2 LEVEL 3
TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT
VALUE AT QUOTED OBSERVABLE UNOBSERVABLE
8/31/2022 PRICES INPUTS INPUTS
-------------- -------------- -------------- --------------
Call Options Written................................. $ (20,669) $ -- $ (20,669) $ --
Put Options Written.................................. (3,398,445) -- (3,398,445) --
-------------- -------------- -------------- --------------
Total................................................ $ (3,419,114) $ -- $ (3,419,114) $ --
============== ============== ============== ==============
See Notes to Financial Statements Page 21
FT CBOE VEST NASDAQ-100(R) BUFFER ETF - MARCH (QMAR)
PORTFOLIO OF INVESTMENTS
AUGUST 31, 2022
SHARES DESCRIPTION VALUE
-------------- ----------------------------------------------------------------------------------------------- --------------
MONEY MARKET FUNDS -- 0.9%
433,380 Dreyfus Government Cash Management Fund, Institutional Shares - 2.11% (a)...................... $ 433,380
(Cost $433,380) --------------
TOTAL INVESTMENTS -- 0.9%...................................................................... 433,380
(Cost $433,380) --------------
NUMBER OF NOTIONAL EXERCISE EXPIRATION
CONTRACTS DESCRIPTION AMOUNT PRICE DATE VALUE
-------------- --------------------------------------------------- ------------- ----------- ----------- --------------
PURCHASED OPTIONS -- 109.3%
CALL OPTIONS PURCHASED -- 92.4%
1,461 Invesco QQQ Trust(SM), Series 1.................... $ 43,723,347 $ 3.52 03/17/23 43,092,733
(Cost $49,951,548) --------------
PUT OPTIONS PURCHASED -- 16.9%
1,461 Invesco QQQ Trust(SM), Series 1.................... 43,723,347 351.50 03/17/23 7,881,022
(Cost $5,619,419) --------------
TOTAL PURCHASED OPTIONS........................................................................ 50,973,755
(Cost $55,570,967) --------------
WRITTEN OPTIONS -- (10.1)%
CALL OPTIONS WRITTEN -- (0.3)%
(1,461) Invesco QQQ Trust(SM), Series 1.................... (43,723,347) 412.13 03/17/23 (151,704)
(Premiums received $1,211,443) --------------
PUT OPTIONS WRITTEN -- (9.8)%
(1,461) Invesco QQQ Trust(SM), Series 1.................... (43,723,347) 316.35 03/17/23 (4,562,997)
(Premiums received $3,071,068) --------------
TOTAL WRITTEN OPTIONS.......................................................................... (4,714,701)
(Premiums received $4,282,511) --------------
NET OTHER ASSETS AND LIABILITIES -- (0.1)%..................................................... (34,983)
--------------
NET ASSETS -- 100.0%........................................................................... $ 46,657,451
==============
(a) Rate shown reflects yield as of August 31, 2022.
FUND ALLOCATION % OF NET ASSETS
-------------------------------------------------------------------
Money Market Funds 0.9%
Purchased Options 109.3
Written Options (10.1)
Net Other Assets and Liabilities (0.1)
--------
Total 100.0%
========
Page 22 See Notes to Financial Statements
FT CBOE VEST NASDAQ-100(R) BUFFER ETF - MARCH (QMAR)
PORTFOLIO OF INVESTMENTS (CONTINUED)
AUGUST 31, 2022
-----------------------------
VALUATION INPUTS
A summary of the inputs used to value the Fund's investments as of August 31,
2022 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial
Statements):
ASSETS TABLE
LEVEL 2 LEVEL 3
TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT
VALUE AT QUOTED OBSERVABLE UNOBSERVABLE
8/31/2022 PRICES INPUTS INPUTS
-------------- -------------- -------------- --------------
Money Market Funds................................... $ 433,380 $ 433,380 $ -- $ --
Call Options Purchased............................... 43,092,733 -- 43,092,733 --
Put Options Purchased................................ 7,881,022 -- 7,881,022 --
-------------- -------------- -------------- --------------
Total................................................ $ 51,407,135 $ 433,380 $ 50,973,755 $ --
============== ============== ============== ==============
LIABILITIES TABLE
LEVEL 2 LEVEL 3
TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT
VALUE AT QUOTED OBSERVABLE UNOBSERVABLE
8/31/2022 PRICES INPUTS INPUTS
-------------- -------------- -------------- --------------
Call Options Written................................. $ (151,704) $ -- $ (151,704) $ --
Put Options Written.................................. (4,562,997) -- (4,562,997) --
-------------- -------------- -------------- --------------
Total................................................ $ (4,714,701) $ -- $ (4,714,701) $ --
============== ============== ============== ==============
See Notes to Financial Statements Page 23
FT CBOE VEST INTERNATIONAL EQUITY BUFFER ETF - JUNE (YJUN)
PORTFOLIO OF INVESTMENTS
AUGUST 31, 2022
SHARES DESCRIPTION VALUE
-------------- ----------------------------------------------------------------------------------------------- --------------
MONEY MARKET FUNDS -- 1.2%
346,714 Dreyfus Government Cash Management Fund, Institutional Shares - 2.11% (a)...................... $ 346,714
(Cost $346,714) --------------
TOTAL INVESTMENTS -- 1.2%...................................................................... 346,714
(Cost $346,714) --------------
NUMBER OF NOTIONAL EXERCISE EXPIRATION
CONTRACTS DESCRIPTION AMOUNT PRICE DATE VALUE
-------------- --------------------------------------------------- ------------- ----------- ----------- --------------
PURCHASED OPTIONS -- 103.6%
CALL OPTIONS PURCHASED -- 96.4%
4,827 iShares MSCI EAFE ETF.............................. $ 29,782,590 $ 0.61 06/16/23 28,590,321
(Cost $28,835,982) --------------
PUT OPTIONS PURCHASED -- 7.2%
4,827 iShares MSCI EAFE ETF.............................. 29,782,590 61.48 06/16/23 2,128,707
(Cost $2,286,304) --------------
TOTAL PURCHASED OPTIONS........................................................................ 30,719,028
(Cost $31,122,286) --------------
WRITTEN OPTIONS -- (4.8)%
CALL OPTIONS WRITTEN -- (0.7)%
(4,827) iShares MSCI EAFE ETF.............................. (29,782,590) 76.36 06/16/23 (193,080)
(Premiums received $289,160) --------------
PUT OPTIONS WRITTEN -- (4.1)%
(4,827) iShares MSCI EAFE ETF.............................. (29,782,590) 55.33 06/16/23 (1,206,750)
(Premiums received $1,314,019) --------------
TOTAL WRITTEN OPTIONS.......................................................................... (1,399,830)
(Premiums received $1,603,179) --------------
NET OTHER ASSETS AND LIABILITIES -- (0.0)%..................................................... (11,653)
--------------
NET ASSETS -- 100.0%........................................................................... $ 29,654,259
==============
(a) Rate shown reflects yield as of August 31, 2022.
FUND ALLOCATION % OF NET ASSETS
-------------------------------------------------------------------
Money Market Funds 1.2%
Purchased Options 103.6
Written Options (4.8)
Net Other Assets and Liabilities (0.0)*
--------
Total 100.0%
========
* Amount is less than 0.1%.
Page 24 See Notes to Financial Statements
FT CBOE VEST INTERNATIONAL EQUITY BUFFER ETF - JUNE (YJUN)
PORTFOLIO OF INVESTMENTS (CONTINUED)
AUGUST 31, 2022
-----------------------------
VALUATION INPUTS
A summary of the inputs used to value the Fund's investments as of August 31,
2022 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial
Statements):
ASSETS TABLE
LEVEL 2 LEVEL 3
TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT
VALUE AT QUOTED OBSERVABLE UNOBSERVABLE
8/31/2022 PRICES INPUTS INPUTS
-------------- -------------- -------------- --------------
Money Market Funds................................... $ 346,714 $ 346,714 $ -- $ --
Call Options Purchased............................... 28,590,321 -- 28,590,321 --
Put Options Purchased................................ 2,128,707 -- 2,128,707 --
-------------- -------------- -------------- --------------
Total................................................ $ 31,065,742 $ 346,714 $ 30,719,028 $ --
============== ============== ============== ==============
LIABILITIES TABLE
LEVEL 2 LEVEL 3
TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT
VALUE AT QUOTED OBSERVABLE UNOBSERVABLE
8/31/2022 PRICES INPUTS INPUTS
-------------- -------------- -------------- --------------
Call Options Written................................. $ (193,080) $ -- $ (193,080) $ --
Put Options Written.................................. (1,206,750) -- (1,206,750) --
-------------- -------------- -------------- --------------
Total................................................ $ (1,399,830) $ -- $ (1,399,830) $ --
============== ============== ============== ==============
See Notes to Financial Statements Page 25
FT CBOE VEST NASDAQ-100(R) BUFFER ETF - JUNE (QJUN)
PORTFOLIO OF INVESTMENTS
AUGUST 31, 2022
SHARES DESCRIPTION VALUE
-------------- ----------------------------------------------------------------------------------------------- --------------
MONEY MARKET FUNDS -- 1.0%
919,208 Dreyfus Government Cash Management Fund, Institutional Shares - 2.11% (a)...................... $ 919,208
(Cost $919,208) --------------
TOTAL INVESTMENTS -- 1.0%...................................................................... 919,208
(Cost $919,208) --------------
NUMBER OF NOTIONAL EXERCISE EXPIRATION
CONTRACTS DESCRIPTION AMOUNT PRICE DATE VALUE
-------------- --------------------------------------------------- ------------- ----------- ----------- --------------
PURCHASED OPTIONS -- 107.9%
CALL OPTIONS PURCHASED -- 101.7%
3,167 Invesco QQQ Trust(SM), Series 1.................... $ 94,778,809 $ 2.76 06/16/23 93,579,501
(Cost $89,426,241) --------------
PUT OPTIONS PURCHASED -- 6.2%
3,167 Invesco QQQ Trust(SM), Series 1.................... 94,778,809 274.70 06/16/23 5,709,746
(Cost $7,865,298) --------------
TOTAL PURCHASED OPTIONS........................................................................ 99,289,247
(Cost $97,291,539) --------------
WRITTEN OPTIONS -- (8.8)%
CALL OPTIONS WRITTEN -- (4.9)%
(3,167) Invesco QQQ Trust(SM), Series 1.................... (94,778,809) 343.92 06/16/23 (4,521,249)
(Premiums received $4,033,377) --------------
PUT OPTIONS WRITTEN -- (3.9)%
(3,167) Invesco QQQ Trust(SM), Series 1.................... (94,778,809) 247.23 06/16/23 (3,576,134)
(Premiums received $5,016,483) --------------
TOTAL WRITTEN OPTIONS.......................................................................... (8,097,383)
(Premiums received $9,049,860) --------------
NET OTHER ASSETS AND LIABILITIES -- (0.1)%..................................................... (62,596)
--------------
NET ASSETS -- 100.0%........................................................................... $ 92,048,476
==============
(a) Rate shown reflects yield as of August 31, 2022.
FUND ALLOCATION % OF NET ASSETS
-------------------------------------------------------------------
Money Market Funds 1.0%
Purchased Options 107.9
Written Options (8.8)
Net Other Assets and Liabilities (0.1)
--------
Total 100.0%
========
Page 26 See Notes to Financial Statements
FT CBOE VEST NASDAQ-100(R) BUFFER ETF - JUNE (QJUN)
PORTFOLIO OF INVESTMENTS (CONTINUED)
AUGUST 31, 2022
-----------------------------
VALUATION INPUTS
A summary of the inputs used to value the Fund's investments as of August 31,
2022 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial
Statements):
ASSETS TABLE
LEVEL 2 LEVEL 3
TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT
VALUE AT QUOTED OBSERVABLE UNOBSERVABLE
8/31/2022 PRICES INPUTS INPUTS
-------------- -------------- -------------- --------------
Money Market Funds................................... $ 919,208 $ 919,208 $ -- $ --
Call Options Purchased............................... 93,579,501 -- 93,579,501 --
Put Options Purchased................................ 5,709,746 -- 5,709,746 --
-------------- -------------- -------------- --------------
Total................................................ $ 100,208,455 $ 919,208 $ 99,289,247 $ --
============== ============== ============== ==============
LIABILITIES TABLE
LEVEL 2 LEVEL 3
TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT
VALUE AT QUOTED OBSERVABLE UNOBSERVABLE
8/31/2022 PRICES INPUTS INPUTS
-------------- -------------- -------------- --------------
Call Options Written................................. $ (4,521,249) $ -- $ (4,521,249) $ --
Put Options Written.................................. (3,576,134) -- (3,576,134) --
-------------- -------------- -------------- --------------
Total................................................ $ (8,097,383) $ -- $ (8,097,383) $ --
============== ============== ============== ==============
See Notes to Financial Statements Page 27
FT CBOE VEST U.S. EQUITY ENHANCE & MODERATE BUFFER ETF - JUNE (XJUN)
PORTFOLIO OF INVESTMENTS
AUGUST 31, 2022
SHARES DESCRIPTION VALUE
-------------- ----------------------------------------------------------------------------------------------- --------------
MONEY MARKET FUNDS -- 0.9%
1,033,098 Dreyfus Government Cash Management Fund, Institutional Shares - 2.11% (a)...................... $ 1,033,098
(Cost $1,033,098) --------------
TOTAL INVESTMENTS -- 0.9%...................................................................... 1,033,098
(Cost $1,033,098) --------------
NUMBER OF NOTIONAL EXERCISE EXPIRATION
CONTRACTS DESCRIPTION AMOUNT PRICE DATE VALUE
-------------- --------------------------------------------------- ------------- ----------- ----------- --------------
PURCHASED OPTIONS -- 121.5%
CALL OPTIONS PURCHASED -- 116.1%
2,905 SPDR(R) S&P 500(R) ETF Trust....................... $ 114,799,790 $ 3.67 06/16/23 112,403,549
2,905 SPDR(R) S&P 500(R) ETF Trust....................... 114,799,790 365.87 06/16/23 16,073,831
--------------
TOTAL CALL OPTIONS PURCHASED................................................................... 128,477,380
(Cost $123,774,126) --------------
PUT OPTIONS PURCHASED -- 5.4%
2,905 SPDR(R) S&P 500(R) ETF Trust....................... 114,799,790 365.87 06/16/23 5,920,976
(Cost $7,575,471) --------------
TOTAL PURCHASED OPTIONS........................................................................ 134,398,356
(Cost $131,349,597) --------------
WRITTEN OPTIONS -- (22.3)%
CALL OPTIONS WRITTEN -- (19.9)%
(5,810) SPDR(R) S&P 500(R) ETF Trust....................... (229,599,580) 392.93 06/16/23 (21,989,751)
(Premiums received $20,165,266) --------------
PUT OPTIONS WRITTEN -- (2.4)%
(2,905) SPDR(R) S&P 500(R) ETF Trust....................... (114,799,790) 310.98 06/16/23 (2,721,596)
(Premiums received $3,663,411) --------------
TOTAL WRITTEN OPTIONS.......................................................................... (24,711,347)
(Premiums received $23,828,677) --------------
NET OTHER ASSETS AND LIABILITIES -- (0.1)%..................................................... (73,050)
--------------
NET ASSETS -- 100.0%........................................................................... $ 110,647,057
==============
(a) Rate shown reflects yield as of August 31, 2022.
FUND ALLOCATION % OF NET ASSETS
-------------------------------------------------------------------
Money Market Funds 0.9%
Purchased Options 121.5
Written Options (22.3)
Net Other Assets and Liabilities (0.1)
--------
Total 100.0%
========
Page 28 See Notes to Financial Statements
FT CBOE VEST U.S. EQUITY ENHANCE & MODERATE BUFFER ETF - JUNE (XJUN)
PORTFOLIO OF INVESTMENTS (CONTINUED)
AUGUST 31, 2022
-----------------------------
VALUATION INPUTS
A summary of the inputs used to value the Fund's investments as of August 31,
2022 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial
Statements):
ASSETS TABLE
LEVEL 2 LEVEL 3
TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT
VALUE AT QUOTED OBSERVABLE UNOBSERVABLE
8/31/2022 PRICES INPUTS INPUTS
-------------- -------------- -------------- --------------
Money Market Funds................................... $ 1,033,098 $ 1,033,098 $ -- $ --
Call Options Purchased............................... 128,477,380 -- 128,477,380 --
Put Options Purchased................................ 5,920,976 -- 5,920,976 --
-------------- -------------- -------------- --------------
Total................................................ $ 135,431,454 $ 1,033,098 $ 134,398,356 $ --
============== ============== ============== ==============
LIABILITIES TABLE
LEVEL 2 LEVEL 3
TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT
VALUE AT QUOTED OBSERVABLE UNOBSERVABLE
8/31/2022 PRICES INPUTS INPUTS
-------------- -------------- -------------- --------------
Call Options Written................................. $ (21,989,751) $ -- $ (21,989,751) $ --
Put Options Written.................................. (2,721,596) -- (2,721,596) --
-------------- -------------- -------------- --------------
Total................................................ $ (24,711,347) $ -- $ (24,711,347) $ --
============== ============== ============== ==============
See Notes to Financial Statements Page 29
FT CBOE VEST INTERNATIONAL EQUITY BUFFER ETF - SEPTEMBER (YSEP)
PORTFOLIO OF INVESTMENTS
AUGUST 31, 2022
SHARES DESCRIPTION VALUE
-------------- ----------------------------------------------------------------------------------------------- --------------
MONEY MARKET FUNDS -- 0.6%
34,347 Dreyfus Government Cash Management Fund, Institutional Shares - 2.11% (a)...................... $ 34,347
(Cost $34,347) --------------
TOTAL INVESTMENTS -- 0.6%...................................................................... 34,347
(Cost $34,347) --------------
NUMBER OF NOTIONAL EXERCISE EXPIRATION
CONTRACTS DESCRIPTION AMOUNT PRICE DATE VALUE
-------------- --------------------------------------------------- ------------- ----------- ----------- --------------
PURCHASED OPTIONS -- 114.9%
CALL OPTIONS PURCHASED -- 87.9%
868 iShares MSCI EAFE ETF.............................. $ 5,355,560 $ 0.81 09/16/22 5,284,513
(Cost $6,712,937) --------------
PUT OPTIONS PURCHASED -- 27.0%
868 iShares MSCI EAFE ETF.............................. 5,355,560 80.50 09/16/22 1,623,801
(Cost $576,167) --------------
TOTAL PURCHASED OPTIONS........................................................................ 6,908,314
(Cost $7,289,104) --------------
WRITTEN OPTIONS -- (15.4)%
CALL OPTIONS WRITTEN -- (0.0)%
(868) iShares MSCI EAFE ETF.............................. (5,355,560) 90.91 09/16/22 0
(Premiums received $32,613) --------------
PUT OPTIONS WRITTEN -- (15.4)%
(868) iShares MSCI EAFE ETF.............................. (5,355,560) 72.45 09/16/22 (925,961)
(Premiums received $257,358) --------------
TOTAL WRITTEN OPTIONS.......................................................................... (925,961)
(Premiums received $289,971) --------------
NET OTHER ASSETS AND LIABILITIES -- (0.1)%..................................................... (5,371)
--------------
NET ASSETS -- 100.0%........................................................................... $ 6,011,329
==============
(a) Rate shown reflects yield as of August 31, 2022.
FUND ALLOCATION % OF NET ASSETS
-------------------------------------------------------------------
Money Market Funds 0.6%
Purchased Options 114.9
Written Options (15.4)
Net Other Assets and Liabilities (0.1)
--------
Total 100.0%
========
Page 30 See Notes to Financial Statements
FT CBOE VEST INTERNATIONAL EQUITY BUFFER ETF - SEPTEMBER (YSEP)
PORTFOLIO OF INVESTMENTS (CONTINUED)
AUGUST 31, 2022
-----------------------------
VALUATION INPUTS
A summary of the inputs used to value the Fund's investments as of August 31,
2022 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial
Statements):
ASSETS TABLE
LEVEL 2 LEVEL 3
TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT
VALUE AT QUOTED OBSERVABLE UNOBSERVABLE
8/31/2022 PRICES INPUTS INPUTS
-------------- -------------- -------------- --------------
Money Market Funds................................... $ 34,347 $ 34,347 $ -- $ --
Call Options Purchased............................... 5,284,513 -- 5,284,513 --
Put Options Purchased................................ 1,623,801 -- 1,623,801 --
-------------- -------------- -------------- --------------
Total................................................ $ 6,942,661 $ 34,347 $ 6,908,314 $ --
============== ============== ============== ==============
LIABILITIES TABLE
LEVEL 2 LEVEL 3
TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT
VALUE AT QUOTED OBSERVABLE UNOBSERVABLE
8/31/2022 PRICES INPUTS INPUTS
-------------- -------------- -------------- --------------
Call Options Written................................. $ --* $ -- $ --* $ --
Put Options Written.................................. (925,961) -- (925,961) --
-------------- -------------- -------------- --------------
Total................................................ $ (925,961) $ -- $ (925,961) $ --
============== ============== ============== ==============
* Investment is valued at $0.
See Notes to Financial Statements Page 31
FT CBOE VEST NASDAQ-100(R) BUFFER ETF - SEPTEMBER (QSPT)
PORTFOLIO OF INVESTMENTS
AUGUST 31, 2022
SHARES DESCRIPTION VALUE
-------------- ----------------------------------------------------------------------------------------------- --------------
MONEY MARKET FUNDS -- 0.4%
98,092 Dreyfus Government Cash Management Fund, Institutional Shares - 2.11% (a)...................... $ 98,092
(Cost $98,092) --------------
TOTAL INVESTMENTS -- 0.4%...................................................................... 98,092
(Cost $98,092) --------------
NUMBER OF NOTIONAL EXERCISE EXPIRATION
CONTRACTS DESCRIPTION AMOUNT PRICE DATE VALUE
-------------- --------------------------------------------------- ------------- ----------- ----------- --------------
PURCHASED OPTIONS -- 110.8%
CALL OPTIONS PURCHASED -- 88.6%
729 Invesco QQQ Trust(SM), Series 1.................... $ 21,816,783 $ 3.74 09/16/22 21,538,487
(Cost $26,504,400) --------------
PUT OPTIONS PURCHASED -- 22.2%
729 Invesco QQQ Trust(SM), Series 1.................... 21,816,783 373.83 09/16/22 5,406,937
(Cost $2,805,897) --------------
TOTAL PURCHASED OPTIONS........................................................................ 26,945,424
(Cost $29,310,297) --------------
WRITTEN OPTIONS -- (11.1)%
CALL OPTIONS WRITTEN -- (0.0)%
(729) Invesco QQQ Trust(SM), Series 1.................... (21,816,783) 424.86 09/16/22 (1)
(Premiums received $681,619) --------------
PUT OPTIONS WRITTEN -- (11.1)%
(729) Invesco QQQ Trust(SM), Series 1.................... (21,816,783) 336.45 09/16/22 (2,694,389)
(Premiums received $1,484,503) --------------
TOTAL WRITTEN OPTIONS.......................................................................... (2,694,390)
(Premiums received $2,166,122) --------------
NET OTHER ASSETS AND LIABILITIES -- (0.1)%..................................................... (19,312)
--------------
NET ASSETS -- 100.0%........................................................................... $ 24,329,814
==============
(a) Rate shown reflects yield as of August 31, 2022.
FUND ALLOCATION % OF NET ASSETS
-------------------------------------------------------------------
Money Market Funds 0.4%
Purchased Options 110.8
Written Options (11.1)
Net Other Assets and Liabilities (0.1)
--------
Total 100.0%
========
Page 32 See Notes to Financial Statements
FT CBOE VEST NASDAQ-100(R) BUFFER ETF - SEPTEMBER (QSPT)
PORTFOLIO OF INVESTMENTS (CONTINUED)
AUGUST 31, 2022
-----------------------------
VALUATION INPUTS
A summary of the inputs used to value the Fund's investments as of August 31,
2022 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial
Statements):
ASSETS TABLE
LEVEL 2 LEVEL 3
TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT
VALUE AT QUOTED OBSERVABLE UNOBSERVABLE
8/31/2022 PRICES INPUTS INPUTS
-------------- -------------- -------------- --------------
Money Market Funds................................... $ 98,092 $ 98,092 $ -- $ --
Call Options Purchased............................... 21,538,487 -- 21,538,487 --
Put Options Purchased................................ 5,406,937 -- 5,406,937 --
-------------- -------------- -------------- --------------
Total................................................ $ 27,043,516 $ 98,092 $ 26,945,424 $ --
============== ============== ============== ==============
LIABILITIES TABLE
LEVEL 2 LEVEL 3
TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT
VALUE AT QUOTED OBSERVABLE UNOBSERVABLE
8/31/2022 PRICES INPUTS INPUTS
-------------- -------------- -------------- --------------
Call Options Written................................. $ (1) $ -- $ (1) $ --
Put Options Written.................................. (2,694,389) -- (2,694,389) --
-------------- -------------- -------------- --------------
Total................................................ $ (2,694,390) $ -- $ (2,694,390) $ --
============== ============== ============== ==============
See Notes to Financial Statements Page 33
FT CBOE VEST INTERNATIONAL EQUITY BUFFER ETF - DECEMBER (YDEC)
PORTFOLIO OF INVESTMENTS
AUGUST 31, 2022
SHARES DESCRIPTION VALUE
-------------- ----------------------------------------------------------------------------------------------- --------------
MONEY MARKET FUNDS -- 0.8%
93,122 Dreyfus Government Cash Management Fund, Institutional Shares - 2.11% (a)...................... $ 93,122
(Cost $93,122) --------------
TOTAL INVESTMENTS -- 0.8%...................................................................... 93,122
(Cost $93,122) --------------
NUMBER OF NOTIONAL EXERCISE EXPIRATION
CONTRACTS DESCRIPTION AMOUNT PRICE DATE VALUE
-------------- --------------------------------------------------- ------------- ----------- ----------- --------------
PURCHASED OPTIONS -- 110.6%
CALL OPTIONS PURCHASED -- 88.6%
1,643 iShares MSCI EAFE ETF.............................. $ 10,137,310 $ 0.77 12/16/22 9,894,690
(Cost $12,163,142) --------------
PUT OPTIONS PURCHASED -- 22.0%
1,643 iShares MSCI EAFE ETF.............................. 10,137,310 76.65 12/16/22 2,460,280
(Cost $1,197,235) --------------
TOTAL PURCHASED OPTIONS........................................................................ 12,354,970
(Cost $13,360,377) --------------
WRITTEN OPTIONS -- (11.3)%
CALL OPTIONS WRITTEN -- (0.0)%
(1,643) iShares MSCI EAFE ETF.............................. (10,137,310) 84.89 12/16/22 (747)
(Premiums received $166,684) --------------
PUT OPTIONS WRITTEN -- (11.3)%
(1,643) iShares MSCI EAFE ETF.............................. (10,137,310) 68.99 12/16/22 (1,261,073)
(Premiums received $560,909) --------------
TOTAL WRITTEN OPTIONS.......................................................................... (1,261,820)
(Premiums received $727,593) --------------
NET OTHER ASSETS AND LIABILITIES -- (0.1)%..................................................... (9,127)
--------------
NET ASSETS -- 100.0%........................................................................... $ 11,177,145
==============
(a) Rate shown reflects yield as of August 31, 2022.
FUND ALLOCATION % OF NET ASSETS
-------------------------------------------------------------------
Money Market Funds 0.8%
Purchased Options 110.6
Written Options (11.3)
Net Other Assets and Liabilities (0.1)
--------
Total 100.0%
========
Page 34 See Notes to Financial Statements
FT CBOE VEST INTERNATIONAL EQUITY BUFFER ETF - DECEMBER (YDEC)
PORTFOLIO OF INVESTMENTS (CONTINUED)
AUGUST 31, 2022
-----------------------------
VALUATION INPUTS
A summary of the inputs used to value the Fund's investments as of August 31,
2022 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial
Statements):
ASSETS TABLE
LEVEL 2 LEVEL 3
TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT
VALUE AT QUOTED OBSERVABLE UNOBSERVABLE
8/31/2022 PRICES INPUTS INPUTS
-------------- -------------- -------------- --------------
Money Market Funds................................... $ 93,122 $ 93,122 $ -- $ --
Call Options Purchased............................... 9,894,690 -- 9,894,690 --
Put Options Purchased................................ 2,460,280 -- 2,460,280 --
-------------- -------------- -------------- --------------
Total................................................ $ 12,448,092 $ 93,122 $ 12,354,970 $ --
============== ============== ============== ==============
LIABILITIES TABLE
LEVEL 2 LEVEL 3
TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT
VALUE AT QUOTED OBSERVABLE UNOBSERVABLE
8/31/2022 PRICES INPUTS INPUTS
-------------- -------------- -------------- --------------
Call Options Written................................. $ (747) $ -- $ (747) $ --
Put Options Written.................................. (1,261,073) -- (1,261,073) --
-------------- -------------- -------------- --------------
Total................................................ $ (1,261,820) $ -- $ (1,261,820) $ --
============== ============== ============== ==============
See Notes to Financial Statements Page 35
FT CBOE VEST NASDAQ-100(R) BUFFER ETF - DECEMBER (QDEC)
PORTFOLIO OF INVESTMENTS
AUGUST 31, 2022
SHARES DESCRIPTION VALUE
-------------- ----------------------------------------------------------------------------------------------- --------------
MONEY MARKET FUNDS -- 0.7%
525,173 Dreyfus Government Cash Management Fund, Institutional Shares - 2.11% (a)...................... $ 525,173
(Cost $525,173) --------------
TOTAL INVESTMENTS -- 0.7%...................................................................... 525,173
(Cost $525,173) --------------
NUMBER OF NOTIONAL EXERCISE EXPIRATION
CONTRACTS DESCRIPTION AMOUNT PRICE DATE VALUE
-------------- --------------------------------------------------- ------------- ----------- ----------- --------------
PURCHASED OPTIONS -- 113.8%
CALL OPTIONS PURCHASED -- 88.8%
2,156 Invesco QQQ Trust(SM), Series 1.................... $ 64,522,612 $ 3.85 12/16/22 63,581,299
(Cost $81,848,527) --------------
PUT OPTIONS PURCHASED -- 25.0%
2,156 Invesco QQQ Trust(SM), Series 1.................... 64,522,612 384.91 12/16/22 17,930,839
(Cost $8,210,770) --------------
TOTAL PURCHASED OPTIONS........................................................................ 81,512,138
(Cost $90,059,297) --------------
WRITTEN OPTIONS -- (14.4)%
CALL OPTIONS WRITTEN -- (0.0)%
(2,156) Invesco QQQ Trust(SM), Series 1.................... (64,522,612) 446.07 12/16/22 (10,480)
(Premiums received $2,745,662) --------------
PUT OPTIONS WRITTEN -- (14.4)%
(2,156) Invesco QQQ Trust(SM), Series 1.................... (64,522,612) 346.42 12/16/22 (10,339,780)
(Premiums received $5,112,682) --------------
TOTAL WRITTEN OPTIONS.......................................................................... (10,350,260)
(Premiums received $7,858,344) --------------
NET OTHER ASSETS AND LIABILITIES -- (0.1)%..................................................... (57,891)
--------------
NET ASSETS -- 100.0%........................................................................... $ 71,629,160
==============
(a) Rate shown reflects yield as of August 31, 2022.
FUND ALLOCATION % OF NET ASSETS
-------------------------------------------------------------------
Money Market Funds 0.7%
Purchased Options 113.8
Written Options (14.4)
Net Other Assets and Liabilities (0.1)
--------
Total 100.0%
========
Page 36 See Notes to Financial Statements
FT CBOE VEST NASDAQ-100(R) BUFFER ETF - DECEMBER (QDEC)
PORTFOLIO OF INVESTMENTS (CONTINUED)
AUGUST 31, 2022
-----------------------------
VALUATION INPUTS
A summary of the inputs used to value the Fund's investments as of August 31,
2022 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial
Statements):
ASSETS TABLE
LEVEL 2 LEVEL 3
TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT
VALUE AT QUOTED OBSERVABLE UNOBSERVABLE
8/31/2022 PRICES INPUTS INPUTS
-------------- -------------- -------------- --------------
Money Market Funds................................... $ 525,173 $ 525,173 $ -- $ --
Call Options Purchased............................... 63,581,299 -- 63,581,299 --
Put Options Purchased................................ 17,930,839 -- 17,930,839 --
-------------- -------------- -------------- --------------
Total................................................ $ 82,037,311 $ 525,173 $ 81,512,138 $ --
============== ============== ============== ==============
LIABILITIES TABLE
LEVEL 2 LEVEL 3
TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT
VALUE AT QUOTED OBSERVABLE UNOBSERVABLE
8/31/2022 PRICES INPUTS INPUTS
-------------- -------------- -------------- --------------
Call Options Written................................. $ (10,480) $ -- $ (10,480) $ --
Put Options Written.................................. (10,339,780) -- (10,339,780) --
-------------- -------------- -------------- --------------
Total................................................ $ (10,350,260) $ -- $ (10,350,260) $ --
============== ============== ============== ==============
See Notes to Financial Statements Page 37
FT CBOE VEST U.S. EQUITY ENHANCE & MODERATE BUFFER ETF - DECEMBER (XDEC)
PORTFOLIO OF INVESTMENTS
AUGUST 31, 2022
SHARES DESCRIPTION VALUE
-------------- ----------------------------------------------------------------------------------------------- --------------
MONEY MARKET FUNDS -- 0.7%
524,746 Dreyfus Government Cash Management Fund, Institutional Shares - 2.11% (a)...................... $ 524,746
(Cost $524,746) --------------
TOTAL INVESTMENTS -- 0.7%...................................................................... 524,746
(Cost $524,746) --------------
NUMBER OF NOTIONAL EXERCISE EXPIRATION
CONTRACTS DESCRIPTION AMOUNT PRICE DATE VALUE
-------------- --------------------------------------------------- ------------- ----------- ----------- --------------
PURCHASED OPTIONS -- 103.6%
CALL OPTIONS PURCHASED -- 88.8%
1,781 SPDR(R) S&P 500(R) ETF Trust....................... $ 70,381,558 $ 4.61 12/16/22 68,995,052
1,781 SPDR(R) S&P 500(R) ETF Trust....................... 70,381,558 459.88 12/16/22 170,741
--------------
TOTAL CALL OPTIONS PURCHASED................................................................... 69,165,793
(Cost $78,241,447) --------------
PUT OPTIONS PURCHASED -- 14.8%
1,781 SPDR(R) S&P 500(R) ETF Trust....................... 70,381,558 459.88 12/16/22 11,500,837
(Cost $8,629,176) --------------
TOTAL PURCHASED OPTIONS........................................................................ 80,666,630
(Cost $86,870,623) --------------
WRITTEN OPTIONS -- (4.2)%
CALL OPTIONS WRITTEN -- (0.1)%
(3,562) SPDR(R) S&P 500(R) ETF Trust....................... (140,763,116) 479.60 12/16/22 (101,396)
(Premiums received $4,091,776) --------------
PUT OPTIONS WRITTEN -- (4.1)%
(1,781) SPDR(R) S&P 500(R) ETF Trust....................... (70,381,558) 390.89 12/16/22 (3,184,441)
(Premiums received $3,574,615) --------------
TOTAL WRITTEN OPTIONS.......................................................................... (3,285,837)
(Premiums received $7,666,391) --------------
NET OTHER ASSETS AND LIABILITIES -- (0.1)%..................................................... (50,479)
--------------
NET ASSETS -- 100.0%........................................................................... $ 77,855,060
==============
(a) Rate shown reflects yield as of August 31, 2022.
FUND ALLOCATION % OF NET ASSETS
-------------------------------------------------------------------
Money Market Funds 0.7%
Purchased Options 103.6
Written Options (4.2)
Net Other Assets and Liabilities (0.1)
--------
Total 100.0%
========
Page 38 See Notes to Financial Statements
FT CBOE VEST U.S. EQUITY ENHANCE & MODERATE BUFFER ETF - DECEMBER (XDEC)
PORTFOLIO OF INVESTMENTS (CONTINUED)
AUGUST 31, 2022
-----------------------------
VALUATION INPUTS
A summary of the inputs used to value the Fund's investments as of August 31,
2022 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial
Statements):
ASSETS TABLE
LEVEL 2 LEVEL 3
TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT
VALUE AT QUOTED OBSERVABLE UNOBSERVABLE
8/31/2022 PRICES INPUTS INPUTS
-------------- -------------- -------------- --------------
Money Market Funds................................... $ 524,746 $ 524,746 $ -- $ --
Call Options Purchased............................... 69,165,793 -- 69,165,793 --
Put Options Purchased................................ 11,500,837 -- 11,500,837 --
-------------- -------------- -------------- --------------
Total................................................ $ 81,191,376 $ 524,746 $ 80,666,630 $ --
============== ============== ============== ==============
LIABILITIES TABLE
LEVEL 2 LEVEL 3
TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT
VALUE AT QUOTED OBSERVABLE UNOBSERVABLE
8/31/2022 PRICES INPUTS INPUTS
-------------- -------------- -------------- --------------
Call Options Written................................. $ (101,396) $ -- $ (101,396) $ --
Put Options Written.................................. (3,184,441) -- (3,184,441) --
-------------- -------------- -------------- --------------
Total................................................ $ (3,285,837) $ -- $ (3,285,837) $ --
============== ============== ============== ==============
See Notes to Financial Statements Page 39
FIRST TRUST EXCHANGE-TRADED FUND VIII
STATEMENTS OF ASSETS AND LIABILITIES
AUGUST 31, 2022
FT CBOE VEST FT CBOE VEST FT CBOE VEST FT CBOE VEST
INTERNATIONAL NASDAQ-100(R) INTERNATIONAL NASDAQ-100(R)
EQUITY BUFFER BUFFER EQUITY BUFFER BUFFER
ETF - MARCH ETF - MARCH ETF - JUNE ETF - JUNE
(YMAR) (QMAR) (YJUN) (QJUN)
---------------- ----------------- ----------------- -----------------
ASSETS:
Investments, at value........................... $ 392,904 $ 433,380 $ 346,714 $ 919,208
Options contracts purchased, at value........... 40,785,766 50,973,755 30,719,028 99,289,247
Due from broker................................. -- 7 412 --
Receivables:
Dividends.................................... 697 745 599 3,160
Capital shares sold.......................... -- -- 872,922 --
Investment securities sold................... -- -- 40,810 --
---------------- ----------------- ----------------- -----------------
Total Assets................................. 41,179,367 51,407,887 31,980,485 100,211,615
---------------- ----------------- ----------------- -----------------
LIABILITIES:
Options contracts written, at value............. 3,419,114 4,714,701 1,399,830 8,097,383
Payables:
Investment advisory fees..................... 29,769 35,735 22,339 65,756
Investment securities purchased.............. -- -- 904,057 --
---------------- ----------------- ----------------- -----------------
Total Liabilities............................ 3,448,883 4,750,436 2,326,226 8,163,139
---------------- ----------------- ----------------- -----------------
NET ASSETS...................................... $ 37,730,484 $ 46,657,451 $ 29,654,259 $ 92,048,476
================ ================= ================= =================
NET ASSETS CONSIST OF:
Paid-in capital................................. $ 43,817,323 $ 51,701,648 $ 32,846,939 $ 97,520,034
Par value....................................... 21,000 23,000 17,000 49,000
Accumulated distributable earnings (loss)....... (6,107,839) (5,067,197) (3,209,680) (5,520,558)
---------------- ----------------- ----------------- -----------------
NET ASSETS...................................... $ 37,730,484 $ 46,657,451 $ 29,654,259 $ 92,048,476
================ ================= ================= =================
NET ASSET VALUE, per share...................... $ 17.97 $ 20.29 $ 17.44 $ 18.79
================ ================= ================= =================
Number of shares outstanding (unlimited number
of shares authorized, par value
$0.01 per share)............................. 2,100,002 2,300,002 1,700,002 4,900,002
================ ================= ================= =================
Investments, at cost............................ $ 392,904 $ 433,380 $ 346,714 $ 919,208
================ ================= ================= =================
Premiums paid on options contracts purchased.... $ 43,948,191 $ 55,570,967 $ 31,122,286 $ 97,291,539
================ ================= ================= =================
Premiums received on options contracts written.. $ 2,430,084 $ 4,282,511 $ 1,603,179 $ 9,049,860
================ ================= ================= =================
Page 40 See Notes to Financial Statements
FT CBOE VEST FT CBOE VEST
U.S. EQUITY FT CBOE VEST FT CBOE VEST FT CBOE VEST FT CBOE VEST U.S. EQUITY
ENHANCE & INTERNATIONAL NASDAQ-100(R) INTERNATIONAL NASDAQ-100(R) ENHANCE &
MODERATE BUFFER EQUITY BUFFER BUFFER EQUITY BUFFER BUFFER MODERATE BUFFER
ETF - JUNE ETF - SEPTEMBER ETF - SEPTEMBER ETF - DECEMBER ETF - DECEMBER ETF - DECEMBER
(XJUN) (YSEP) (QSPT) (YDEC) (QDEC) (XDEC)
------------------ ----------------- ----------------- ------------------ ----------------- -----------------
$ 1,033,098 $ 34,347 $ 98,092 $ 93,122 $ 525,173 $ 524,746
134,398,356 6,908,314 26,945,424 12,354,970 81,512,138 80,666,630
-- -- -- -- 13 --
1,719 68 503 172 1,432 1,567
-- -- -- -- -- --
-- -- -- -- -- --
------------------ ----------------- ----------------- ------------------ ----------------- -----------------
135,433,173 6,942,729 27,044,019 12,448,264 82,038,756 81,192,943
------------------ ----------------- ----------------- ------------------ ----------------- -----------------
24,711,347 925,961 2,694,390 1,261,820 10,350,260 3,285,837
74,769 5,439 19,815 9,299 59,336 52,046
-- -- -- -- -- --
------------------ ----------------- ----------------- ------------------ ----------------- -----------------
24,786,116 931,400 2,714,205 1,271,119 10,409,596 3,337,883
------------------ ----------------- ----------------- ------------------ ----------------- -----------------
$ 110,647,057 $ 6,011,329 $ 24,329,814 $ 11,177,145 $ 71,629,160 $ 77,855,060
================== ================= ================= ================== ================= =================
$ 111,055,693 $ 7,108,300 $ 27,025,176 $ 13,477,376 $ 91,539,751 $ 79,974,963
36,500 3,500 13,500 6,000 36,000 27,000
(445,136) (1,100,471) (2,708,862) (2,306,231) (19,946,591) (2,146,903)
------------------ ----------------- ----------------- ------------------ ----------------- -----------------
$ 110,647,057 $ 6,011,329 $ 24,329,814 $ 11,177,145 $ 71,629,160 $ 77,855,060
================== ================= ================= ================== ================= =================
$ 30.31 $ 17.18 $ 18.02 $ 18.63 $ 19.90 $ 28.84
================== ================= ================= ================== ================= =================
3,650,002 350,002 1,350,002 600,002 3,600,002 2,700,002
================== ================= ================= ================== ================= =================
$ 1,033,098 $ 34,347 $ 98,092 $ 93,122 $ 525,173 $ 524,746
================== ================= ================= ================== ================= =================
$ 131,349,597 $ 7,289,104 $ 29,310,297 $ 13,360,377 $ 90,059,297 $ 86,870,623
================== ================= ================= ================== ================= =================
$ 23,828,677 $ 289,971 $ 2,166,122 $ 727,593 $ 7,858,344 $ 7,666,391
================== ================= ================= ================== ================= =================
See Notes to Financial Statements Page 41
FIRST TRUST EXCHANGE-TRADED FUND VIII
STATEMENTS OF OPERATIONS
FOR THE PERIOD ENDED AUGUST 31, 2022
FT CBOE VEST FT CBOE VEST FT CBOE VEST FT CBOE VEST
INTERNATIONAL NASDAQ-100(R) INTERNATIONAL NASDAQ-100(R)
EQUITY BUFFER BUFFER EQUITY BUFFER BUFFER
ETF - MARCH ETF - MARCH ETF - JUNE ETF - JUNE
(YMAR) (QMAR) (YJUN) (QJUN)
---------------- ----------------- ----------------- -----------------
INVESTMENT INCOME:
Dividends....................................... $ 2,342 $ 2,444 $ 1,599 $ 4,966
---------------- ----------------- ----------------- -----------------
Total investment income...................... 2,342 2,444 1,599 4,966
---------------- ----------------- ----------------- -----------------
EXPENSES:
Investment advisory fees........................ 235,583 261,218 144,716 336,606
---------------- ----------------- ----------------- -----------------
Total expenses............................... 235,583 261,218 144,716 336,606
---------------- ----------------- ----------------- -----------------
NET INVESTMENT INCOME (LOSS).................... (233,241) (258,774) (143,117) (331,640)
---------------- ----------------- ----------------- -----------------
NET REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) on:
Purchased options contracts.................. (1,933,140) (359,750) (2,124,301) (6,028,071)
Written options contracts.................... 162,039 (134,370) (795,919) (2,195,992)
In-kind redemptions - Purchased options
contracts................................. 627,889 913,228 1,295,982 3,908,349
In-kind redemptions - Written options
contracts................................. 505,812 1,558,375 185,882 1,620,585
---------------- ----------------- ----------------- -----------------
Net realized gain (loss)........................ (637,400) 1,977,483 (1,438,356) (2,695,129)
---------------- ----------------- ----------------- -----------------
Net change in unrealized appreciation
(depreciation) on:
Purchased options contracts.................. (3,220,026) (6,346,502) (554,049) 488,810
Written options contracts.................... (1,182,049) 34,267 104,733 1,387,396
---------------- ----------------- ----------------- -----------------
Net change in unrealized appreciation
(depreciation)............................... (4,402,075) (6,312,235) (449,316) 1,876,206
---------------- ----------------- ----------------- -----------------
NET REALIZED AND UNREALIZED
GAIN (LOSS).................................. (5,039,475) (4,334,752) (1,887,672) (818,923)
---------------- ----------------- ----------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS.................... $ (5,272,716) $ (4,593,526) $ (2,030,789) $ (1,150,563)
================ ================= ================= =================
(a) Inception date is September 17, 2021, which is consistent with the
commencement of investment operations and is the date the initial creation
units were established.
(b) Inception date is December 17, 2021, which is consistent with the
commencement of investment operations and is the date the initial creation
units were established.
Page 42 See Notes to Financial Statements
FT CBOE VEST FT CBOE VEST
U.S. EQUITY FT CBOE VEST FT CBOE VEST FT CBOE VEST FT CBOE VEST U.S. EQUITY
ENHANCE & INTERNATIONAL NASDAQ-100(R) INTERNATIONAL NASDAQ-100(R) ENHANCE &
MODERATE BUFFER EQUITY BUFFER BUFFER EQUITY BUFFER BUFFER MODERATE BUFFER
ETF - JUNE ETF - SEPTEMBER ETF - SEPTEMBER ETF - DECEMBER ETF - DECEMBER ETF - DECEMBER
(XJUN) (YSEP) (a) (QSPT) (a) (YDEC) (QDEC) (XDEC) (b)
------------------ ----------------- ----------------- ------------------ ----------------- -----------------
$ 3,076 $ 227 $ 1,365 $ 542 $ 4,035 $ 2,678
------------------ ----------------- ----------------- ------------------ ----------------- -----------------
3,076 227 1,365 542 4,035 2,678
------------------ ----------------- ----------------- ------------------ ----------------- -----------------
201,538 55,222 211,256 110,223 743,983 279,820
------------------ ----------------- ----------------- ------------------ ----------------- -----------------
201,538 55,222 211,256 110,223 743,983 279,820
------------------ ----------------- ----------------- ------------------ ----------------- -----------------
(198,462) (54,995) (209,891) (109,681) (739,948) (277,142)
------------------ ----------------- ----------------- ------------------ ----------------- -----------------
(2,398,504) -- (207,262) (989,447) (6,950,524) (327,495)
(30,759) -- 142,994 6,944 (2,097,495) 280,280
1,013,495 28,329 272,852 804,333 13,512,549 --
1,304,291 (57,616) 183,681 610,135 4,501,722 --
------------------ ----------------- ----------------- ------------------ ----------------- -----------------
(111,477) (29,287) 392,265 431,965 8,966,252 (47,215)
------------------ ----------------- ----------------- ------------------ ----------------- -----------------
2,824,486 (380,790) (2,364,873) (1,385,393) (17,058,775) (6,203,993)
(728,364) (635,990) (528,268) (860,571) (2,843,260) 4,380,554
------------------ ----------------- ----------------- ------------------ ----------------- -----------------
2,096,122 (1,016,780) (2,893,141) (2,245,964) (19,902,035) (1,823,439)
------------------ ----------------- ----------------- ------------------ ----------------- -----------------
1,984,645 (1,046,067) (2,500,876) (1,813,999) (10,935,783) (1,870,654)
------------------ ----------------- ----------------- ------------------ ----------------- -----------------
$ 1,786,183 $ (1,101,062) $ (2,710,767) $ (1,923,680) $ (11,675,731) $ (2,147,796)
================== ================= ================= ================== ================= =================
See Notes to Financial Statements Page 43
FIRST TRUST EXCHANGE-TRADED FUND VIII
STATEMENTS OF CHANGES IN NET ASSETS
FT CBOE VEST FT CBOE VEST
INTERNATIONAL EQUITY NASDAQ-100(R)
BUFFER ETF - MARCH BUFFER ETF - MARCH
(YMAR) (QMAR)
------------------------------------- --------------------------------------
YEAR PERIOD YEAR PERIOD
ENDED ENDED ENDED ENDED
8/31/22 8/31/21 (a) 8/31/22 8/31/21 (a)
---------------- ----------------- ----------------- -----------------
OPERATIONS:
Net investment income (loss)................... $ (233,241) $ (25,017) $ (258,774) $ (52,940)
Net realized gain (loss)....................... (637,400) -- 1,977,483 (9,582)
Net change in unrealized appreciation
(depreciation).............................. (4,402,075) 250,620 (6,312,235) 1,282,833
---------------- ----------------- ----------------- -----------------
Net increase (decrease) in net assets resulting
from operations............................. (5,272,716) 225,603 (4,593,526) 1,220,311
---------------- ----------------- ----------------- -----------------
SHAREHOLDER TRANSACTIONS:
Proceeds from shares sold...................... 61,307,344 12,460,962 65,393,273 22,902,662
Cost of shares redeemed........................ (30,990,709) -- (33,026,951) (5,238,318)
---------------- ----------------- ----------------- -----------------
Net increase (decrease) in net assets resulting
from shareholder transactions............... 30,316,635 12,460,962 32,366,322 17,664,344
---------------- ----------------- ----------------- -----------------
Total increase (decrease) in net assets........ 25,043,919 12,686,565 27,772,796 18,884,655
NET ASSETS:
Beginning of period............................ 12,686,565 -- 18,884,655 --
---------------- ----------------- ----------------- -----------------
End of period.................................. $ 37,730,484 $ 12,686,565 $ 46,657,451 $ 18,884,655
================ ================= ================= =================
CHANGES IN SHARES OUTSTANDING:
Shares outstanding, beginning of period........ 600,002 -- 850,002 --
Shares sold.................................... 3,100,000 600,002 3,050,000 1,100,002
Shares redeemed................................ (1,600,000) -- (1,600,000) (250,000)
---------------- ----------------- ----------------- -----------------
Shares outstanding, end of period.............. 2,100,002 600,002 2,300,002 850,002
================ ================= ================= =================
(a) Inception date is March 19, 2021, which is consistent with the
commencement of investment operations and is the date the initial creation
units were established.
(b) Inception date is June 18, 2021, which is consistent with the commencement
of investment operations and is the date the initial creation units were
established.
(c) Inception date is July 12, 2021, which is consistent with the commencement
of investment operations and is the date the initial creation units were
established.
Page 44 See Notes to Financial Statements
FT CBOE VEST FT CBOE VEST FT CBOE VEST
INTERNATIONAL EQUITY NASDAQ-100(R) U.S. EQUITY ENHANCE & MODERATE
BUFFER ETF - JUNE BUFFER ETF - JUNE BUFFER ETF - JUNE
(YJUN) (QJUN) (XJUN)
------------------------------------- -------------------------------------- --------------------------------------
YEAR PERIOD YEAR PERIOD YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED
8/31/22 8/31/21 (b) 8/31/22 8/31/21 (b) 8/31/22 8/31/21 (c)
---------------- ----------------- ----------------- ----------------- ----------------- -----------------
$ (143,117) $ (13,034) $ (331,640) $ (40,287) $ (198,462) $ (5,184)
(1,438,356) -- (2,695,129) -- (111,477) --
(449,316) 249,407 1,876,206 1,073,979 2,096,122 69,967
---------------- ----------------- ----------------- ----------------- ----------------- -----------------
(2,030,789) 236,373 (1,150,563) 1,033,692 1,786,183 64,783
---------------- ----------------- ----------------- ----------------- ----------------- -----------------
39,951,781 13,048,208 116,883,507 32,499,272 118,349,822 5,958,020
(21,551,314) -- (57,217,432) -- (15,511,751) --
---------------- ----------------- ----------------- ----------------- ----------------- -----------------
18,400,467 13,048,208 59,666,075 32,499,272 102,838,071 5,958,020
---------------- ----------------- ----------------- ----------------- ----------------- -----------------
16,369,678 13,284,581 58,515,512 33,532,964 104,624,254 6,022,803
13,284,581 -- 33,532,964 -- 6,022,803 --
---------------- ----------------- ----------------- ----------------- ----------------- -----------------
$ 29,654,259 $ 13,284,581 $ 92,048,476 $ 33,532,964 $ 110,647,057 $ 6,022,803
================ ================= ================= ================= ================= =================
650,002 -- 1,600,002 -- 200,002 --
2,200,000 650,002 6,300,000 1,600,002 3,975,000 200,002
(1,150,000) -- (3,000,000) -- (525,000) --
---------------- ----------------- ----------------- ----------------- ----------------- -----------------
1,700,002 650,002 4,900,002 1,600,002 3,650,002 200,002
================ ================= ================= ================= ================= =================
See Notes to Financial Statements Page 45
FIRST TRUST EXCHANGE-TRADED FUND VIII
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FT CBOE VEST FT CBOE VEST FT CBOE VEST
INTERNATIONAL NASDAQ-100(R) INTERNATIONAL
EQUITY BUFFER BUFFER EQUITY BUFFER
ETF - SEPTEMBER ETF - SEPTEMBER ETF - DECEMBER
(YSEP) (QSPT) (YDEC)
---------------- ----------------- --------------------------------------
PERIOD PERIOD YEAR PERIOD
ENDED ENDED ENDED ENDED
8/31/22 (d) 8/31/22 (d) 8/31/22 8/31/21 (e)
---------------- ----------------- ----------------- -----------------
OPERATIONS:
Net investment income (loss)................... $ (54,995) $ (209,891) $ (109,681) $ (52,205)
Net realized gain (loss)....................... (29,287) 392,265 431,965 --
Net change in unrealized appreciation
(depreciation).............................. (1,016,780) (2,893,141) (2,245,964) 706,330
---------------- ----------------- ----------------- -----------------
Net increase (decrease) in net assets resulting
from operations............................. (1,101,062) (2,710,767) (1,923,680) 654,125
---------------- ----------------- ----------------- -----------------
SHAREHOLDER TRANSACTIONS:
Proceeds from shares sold...................... 9,899,510 45,487,054 25,417,773 11,362,368
Cost of shares redeemed........................ (2,787,119) (18,446,473) (24,333,441) --
---------------- ----------------- ----------------- -----------------
Net increase (decrease) in net assets resulting
from shareholder transactions............... 7,112,391 27,040,581 1,084,332 11,362,368
---------------- ----------------- ----------------- -----------------
Total increase (decrease) in net assets........ 6,011,329 24,329,814 (839,348) 12,016,493
NET ASSETS:
Beginning of period............................ -- -- 12,016,493 --
---------------- ----------------- ----------------- -----------------
End of period.................................. $ 6,011,329 $ 24,329,814 $ 11,177,145 $ 12,016,493
================ ================= ================= =================
CHANGES IN SHARES OUTSTANDING:
Shares outstanding, beginning of period........ -- -- 550,002 --
Shares sold.................................... 500,002 2,300,002 1,200,000 550,002
Shares redeemed................................ (150,000) (950,000) (1,150,000) --
---------------- ----------------- ----------------- -----------------
Shares outstanding, end of period.............. 350,002 1,350,002 600,002 550,002
================ ================= ================= =================
(d) Inception date is September 17, 2021, which is consistent with the
commencement of investment operations and is the date the initial creation
units were established.
(e) Inception date is December 18, 2020, which is consistent with the
commencement of investment operations and is the date the initial creation
units were established.
(f) Inception date is December 17, 2021, which is consistent with the
commencement of investment operations and is the date the initial creation
units were established.
Page 46 See Notes to Financial Statements
FT CBOE VEST
FT CBOE VEST U.S. EQUITY ENHANCE
NASDAQ-100(R) & MODERATE BUFFER
BUFFER ETF - DECEMBER ETF - DECEMBER
(QDEC) (XDEC)
------------------------------------- -----------------
YEAR PERIOD PERIOD
ENDED ENDED ENDED
8/31/22 8/31/21 (e) 8/31/22 (f)
---------------- ----------------- -----------------
$ (739,948) $ (442,607) $ (277,142)
8,966,252 809,586 (47,215)
(19,902,035) 8,862,960 (1,823,439)
---------------- ----------------- -----------------
(11,675,731) 9,229,939 (2,147,796)
---------------- ----------------- -----------------
110,993,722 89,195,903 93,120,893
(106,641,208) (19,473,465) (13,118,037)
---------------- ----------------- -----------------
4,352,514 69,722,438 80,002,856
---------------- ----------------- -----------------
(7,323,217) 78,952,377 77,855,060
78,952,377 -- --
---------------- ----------------- -----------------
$ 71,629,160 $ 78,952,377 $ 77,855,060
================ ================= =================
3,500,002 -- --
4,900,000 4,400,002 3,150,002
(4,800,000) (900,000) (450,000)
---------------- ----------------- -----------------
3,600,002 3,500,002 2,700,002
================ ================= =================
See Notes to Financial Statements Page 47
FIRST TRUST EXCHANGE-TRADED FUND VIII
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
FT CBOE VEST INTERNATIONAL EQUITY BUFFER ETF - MARCH (YMAR)
YEAR PERIOD
ENDED ENDED
8/31/2022 8/31/2021 (a)
-------------- --------------
Net asset value, beginning of period........................... $ 21.14 $ 20.02
-------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss)................................... (0.08) (0.04)
Net realized and unrealized gain (loss)........................ (3.09) 1.16
-------- --------
Total from investment operations............................... (3.17) 1.12
-------- --------
Net asset value, end of period................................. $ 17.97 $ 21.14
======== ========
TOTAL RETURN (b)............................................... (15.00)% 5.59%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000's)........................... $ 37,730 $ 12,687
RATIOS TO AVERAGE NET ASSETS:
Ratio of total expenses to average net assets.................. 0.90% 0.90% (c)
Ratio of net investment income (loss) to average net assets.... (0.89)% (0.90)% (c)
Portfolio turnover rate (d).................................... 0% 0%
FT CBOE VEST NASDAQ-100(R) BUFFER ETF - MARCH (QMAR)
YEAR PERIOD
ENDED ENDED
8/31/2022 8/31/2021 (a)
-------------- --------------
Net asset value, beginning of period........................... $ 22.22 $ 20.04
-------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss)................................... (0.07) (0.06)
Net realized and unrealized gain (loss)........................ (1.86) 2.24
-------- --------
Total from investment operations............................... (1.93) 2.18
-------- --------
Net asset value, end of period................................. $ 20.29 $ 22.22
======== ========
TOTAL RETURN (b)............................................... (8.69)% 10.88%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000's)........................... $ 46,657 $ 18,885
RATIOS TO AVERAGE NET ASSETS:
Ratio of total expenses to average net assets.................. 0.90% 0.90% (c)
Ratio of net investment income (loss) to average net assets.... (0.89)% (0.90)% (c)
Portfolio turnover rate (d).................................... 0% 0%
(a) Inception date is March 19, 2021, which is consistent with the
commencement of investment operations and is the date the initial creation
units were established.
(b) Total return is calculated assuming an initial investment made at the net
asset value at the beginning of the period, reinvestment of all
distributions at net asset value during the period, and redemption at net
asset value on the last day of the period. The returns presented do not
reflect the deduction of taxes that a shareholder would pay on Fund
distributions or the redemption or sale of Fund shares. Total return is
calculated for the time period presented and is not annualized for periods
of less than a year.
(c) Annualized.
(d) Portfolio turnover is calculated for the time period presented and is not
annualized for periods of less than a year and does not include securities
received or delivered from processing creations or redemptions,
derivatives and in-kind transactions.
Page 48 See Notes to Financial Statements
FIRST TRUST EXCHANGE-TRADED FUND VIII
FINANCIAL HIGHLIGHTS (CONTINUED)
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
FT CBOE VEST INTERNATIONAL EQUITY BUFFER ETF - JUNE (YJUN)
YEAR PERIOD
ENDED ENDED
8/31/2022 8/31/2021 (a)
-------------- --------------
Net asset value, beginning of period........................... $ 20.44 $ 19.95
-------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss)................................... (0.07) (0.02)
Net realized and unrealized gain (loss)........................ (2.93) 0.51
-------- --------
Total from investment operations............................... (3.00) 0.49
-------- --------
Net asset value, end of period................................. $ 17.44 $ 20.44
======== ========
TOTAL RETURN (b)............................................... (14.68)% 2.46%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000's)........................... $ 29,654 $ 13,285
RATIOS TO AVERAGE NET ASSETS:
Ratio of total expenses to average net assets.................. 0.90% 0.90% (c)
Ratio of net investment income (loss) to average net assets.... (0.89)% (0.90)% (c)
Portfolio turnover rate (d).................................... 0% 0%
FT CBOE VEST NASDAQ-100(R) BUFFER ETF - JUNE (QJUN)
YEAR PERIOD
ENDED ENDED
8/31/2022 8/31/2021 (a)
-------------- --------------
Net asset value, beginning of period........................... $ 20.96 $ 19.87
-------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss)................................... (0.05) (0.03)
Net realized and unrealized gain (loss)........................ (2.12) 1.12
-------- --------
Total from investment operations............................... (2.17) 1.09
-------- --------
Net asset value, end of period................................. $ 18.79 $ 20.96
======== ========
TOTAL RETURN (b)............................................... (10.35)% 5.49%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000's)........................... $ 92,048 $ 33,533
RATIOS TO AVERAGE NET ASSETS:
Ratio of total expenses to average net assets.................. 0.90% 0.90% (c)
Ratio of net investment income (loss) to average net assets.... (0.89)% (0.90)% (c)
Portfolio turnover rate (d).................................... 0% 0%
(a) Inception date is June 18, 2021, which is consistent with the commencement
of investment operations and is the date the initial creation units were
established.
(b) Total return is calculated assuming an initial investment made at the net
asset value at the beginning of the period, reinvestment of all
distributions at net asset value during the period, and redemption at net
asset value on the last day of the period. The returns presented do not
reflect the deduction of taxes that a shareholder would pay on Fund
distributions or the redemption or sale of Fund shares. Total return is
calculated for the time period presented and is not annualized for periods
of less than a year.
(c) Annualized.
(d) Portfolio turnover is calculated for the time period presented and is not
annualized for periods of less than a year and does not include securities
received or delivered from processing creations or redemptions,
derivatives and in-kind transactions.
See Notes to Financial Statements Page 49
FIRST TRUST EXCHANGE-TRADED FUND VIII
FINANCIAL HIGHLIGHTS (CONTINUED)
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
FT CBOE VEST U.S. EQUITY ENHANCE & MODERATE BUFFER ETF - JUNE (XJUN)
YEAR PERIOD
ENDED ENDED
8/31/2022 8/31/2021 (a)
-------------- --------------
Net asset value, beginning of period........................... $ 30.11 $ 29.72
-------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss)................................... (0.03) (0.03)
Net realized and unrealized gain (loss)........................ 0.23 0.42
-------- --------
Total from investment operations............................... 0.20 0.39
-------- --------
Net asset value, end of period................................. $ 30.31 $ 30.11
======== ========
TOTAL RETURN (b)............................................... 0.66% 1.31%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000's)........................... $110,647 $ 6,023
RATIOS TO AVERAGE NET ASSETS:
Ratio of total expenses to average net assets.................. 0.85% 0.85% (c)
Ratio of net investment income (loss) to average net assets.... (0.84)% (0.85)% (c)
Portfolio turnover rate (d).................................... 0% 0%
(a) Inception date is July 12, 2021, which is consistent with the commencement
of investment operations and is the date the initial creation units were
established.
(b) Total return is calculated assuming an initial investment made at the net
asset value at the beginning of the period, reinvestment of all
distributions at net asset value during the period, and redemption at net
asset value on the last day of the period. The returns presented do not
reflect the deduction of taxes that a shareholder would pay on Fund
distributions or the redemption or sale of Fund shares. Total return is
calculated for the time period presented and is not annualized for periods
of less than a year.
(c) Annualized.
(d) Portfolio turnover is calculated for the time period presented and is not
annualized for periods of less than a year and does not include securities
received or delivered from processing creations or redemptions,
derivatives and in-kind transactions.
Page 50 See Notes to Financial Statements
FIRST TRUST EXCHANGE-TRADED FUND VIII
FINANCIAL HIGHLIGHTS (CONTINUED)
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
FT CBOE VEST INTERNATIONAL EQUITY BUFFER ETF - SEPTEMBER (YSEP)
PERIOD
ENDED
8/31/2022 (a)
--------------
Net asset value, beginning of period........................... $ 19.96
--------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss)................................... (0.16)
Net realized and unrealized gain (loss)........................ (2.62)
--------
Total from investment operations............................... (2.78)
--------
Net asset value, end of period................................. $ 17.18
========
TOTAL RETURN (b)............................................... (13.93)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000's)........................... $ 6,011
RATIOS TO AVERAGE NET ASSETS:
Ratio of total expenses to average net assets.................. 0.90% (c)
Ratio of net investment income (loss) to average net assets.... (0.90)% (c)
Portfolio turnover rate (d).................................... 0%
FT CBOE VEST NASDAQ-100(R) BUFFER ETF - SEPTEMBER (QSPT)
PERIOD
ENDED
8/31/2022 (a)
--------------
Net asset value, beginning of period........................... $ 20.19
--------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss)................................... (0.16)
Net realized and unrealized gain (loss)........................ (2.01)
--------
Total from investment operations............................... (2.17)
--------
Net asset value, end of period................................. $ 18.02
========
TOTAL RETURN (b)............................................... (10.75)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000's)........................... $ 24,330
RATIOS TO AVERAGE NET ASSETS:
Ratio of total expenses to average net assets.................. 0.90% (c)
Ratio of net investment income (loss) to average net assets.... (0.89)% (c)
Portfolio turnover rate (d).................................... 0%
(a) Inception date is September 17, 2021, which is consistent with the
commencement of investment operations and is the date the initial creation
units were established.
(b) Total return is calculated assuming an initial investment made at the net
asset value at the beginning of the period, reinvestment of all
distributions at net asset value during the period, and redemption at net
asset value on the last day of the period. The return presented does not
reflect the deduction of taxes that a shareholder would pay on Fund
distributions or the redemption or sale of Fund shares. Total return is
calculated for the time period presented and is not annualized for periods
of less than a year.
(c) Annualized.
(d) Portfolio turnover is calculated for the time period presented and is not
annualized for periods of less than a year and does not include securities
received or delivered from processing creations or redemptions,
derivatives and in-kind transactions.
See Notes to Financial Statements Page 51
FIRST TRUST EXCHANGE-TRADED FUND VIII
FINANCIAL HIGHLIGHTS (CONTINUED)
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
FT CBOE VEST INTERNATIONAL EQUITY BUFFER ETF - DECEMBER (YDEC)
YEAR PERIOD
ENDED ENDED
8/31/2022 8/31/2021 (a)
-------------- --------------
Net asset value, beginning of period........................... $ 21.85 $ 20.06
-------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss)................................... (0.18) (0.09)
Net realized and unrealized gain (loss)........................ (3.04) 1.88
-------- --------
Total from investment operations............................... (3.22) 1.79
-------- --------
Net asset value, end of period................................. $ 18.63 $ 21.85
======== ========
OTAL RETURN (b)............................................... (14.74)% 8.92%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000's)........................... $ 11,177 $ 12,016
RATIOS TO AVERAGE NET ASSETS:
Ratio of total expenses to average net assets.................. 0.90% 0.90% (c)
Ratio of net investment income (loss) to average net assets.... (0.90)% (0.90)% (c)
Portfolio turnover rate (d).................................... 0% 0%
FT CBOE VEST NASDAQ-100(R) BUFFER ETF - DECEMBER (QDEC)
YEAR PERIOD
ENDED ENDED
8/31/2022 8/31/2021 (a)
-------------- --------------
Net asset value, beginning of period........................... $ 22.56 $ 19.84
-------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss)................................... (0.20) (0.13)
Net realized and unrealized gain (loss)........................ (2.46) 2.85
-------- --------
Total from investment operations............................... (2.66) 2.72
-------- --------
Net asset value, end of period................................. $ 19.90 $ 22.56
======== ========
TOTAL RETURN (b)............................................... (11.79)% 13.71%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000's)........................... $ 71,629 $ 78,952
RATIOS TO AVERAGE NET ASSETS:
Ratio of total expenses to average net assets.................. 0.90% 0.90% (c)
Ratio of net investment income (loss) to average net assets.... (0.90)% (0.90)% (c)
Portfolio turnover rate (d).................................... 0% 0%
(a) Inception date is December 18, 2020, which is consistent with the
commencement of investment operations and is the date the initial creation
units were established.
(b) Total return is calculated assuming an initial investment made at the net
asset value at the beginning of the period, reinvestment of all
distributions at net asset value during the period, and redemption at net
asset value on the last day of the period. The returns presented do not
reflect the deduction of taxes that a shareholder would pay on Fund
distributions or the redemption or sale of Fund shares. Total return is
calculated for the time period presented and is not annualized for periods
of less than a year.
(c) Annualized.
(d) Portfolio turnover is calculated for the time period presented and is not
annualized for periods of less than a year and does not include securities
received or delivered from processing creations or redemptions,
derivatives and in-kind transactions.
Page 52 See Notes to Financial Statements
FIRST TRUST EXCHANGE-TRADED FUND VIII
FINANCIAL HIGHLIGHTS (CONTINUED)
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
FT CBOE VEST U.S. EQUITY ENHANCE & MODERATE BUFFER ETF - DECEMBER (XDEC)
PERIOD
ENDED
8/31/2022 (a)
--------------
Net asset value, beginning of period........................... $ 30.35
--------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss)................................... (0.10)
Net realized and unrealized gain (loss)........................ (1.41)
--------
Total from investment operations............................... (1.51)
--------
Net asset value, end of period................................. $ 28.84
========
TOTAL RETURN (b)............................................... (4.98)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000's)........................... $ 77,855
RATIOS TO AVERAGE NET ASSETS:
Ratio of total expenses to average net assets.................. 0.85% (c)
Ratio of net investment income (loss) to average net assets.... (0.84)% (c)
Portfolio turnover rate (d).................................... 0%
(a) Inception date is December 17, 2021, which is consistent with the
commencement of investment operations and is the date the initial creation
units were established.
(b) Total return is calculated assuming an initial investment made at the net
asset value at the beginning of the period, reinvestment of all
distributions at net asset value during the period, and redemption at net
asset value on the last day of the period. The return presented does not
reflect the deduction of taxes that a shareholder would pay on Fund
distributions or the redemption or sale of Fund shares. Total return is
calculated for the time period presented and is not annualized for periods
of less than a year.
(c) Annualized.
(d) Portfolio turnover is calculated for the time period presented and is not
annualized for periods of less than a year and does not include securities
received or delivered from processing creations or redemptions,
derivatives and in-kind transactions.
See Notes to Financial Statements Page 53
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
FIRST TRUST EXCHANGE-TRADED FUND VIII
AUGUST 31, 2022
1. ORGANIZATION
First Trust Exchange-Traded Fund VIII (the "Trust") is an open-end management
investment company organized as a Massachusetts business trust on February 22,
2016, and is registered with the Securities and Exchange Commission ("SEC")
under the Investment Company Act of 1940, as amended (the "1940 Act").
The Trust currently consists of fifty-six funds that are offering shares. This
report covers the ten funds (each a "Fund" and collectively, "the Funds") listed
below. The shares of each Fund are listed and traded on the Cboe BZX Exchange,
Inc. ("Cboe BZX").
FT Cboe Vest International Equity Buffer ETF - March - (ticker "YMAR")
FT Cboe Vest Nasdaq-100(R) Buffer ETF - March - (ticker "QMAR")
FT Cboe Vest International Equity Buffer ETF - June - (ticker "YJUN")
FT Cboe Vest Nasdaq-100(R) Buffer ETF - June - (ticker "QJUN")
FT Cboe Vest U.S. Equity Enhance & Moderate Buffer ETF - June - (ticker
"XJUN")
FT Cboe Vest International Equity Buffer ETF - September - (ticker
"YSEP")(1)
FT Cboe Vest Nasdaq-100(R) Buffer ETF - September - (ticker "QSPT")(1)
FT Cboe Vest International Equity Buffer ETF - December - (ticker
"YDEC")
FT Cboe Vest Nasdaq-100(R) Buffer ETF - December - (ticker "QDEC")
FT Cboe Vest U.S. Equity Enhance & Moderate Buffer ETF - December -
(ticker "XDEC")(2)
(1) Commenced investment operations on September 17, 2021.
(2) Commenced investment operations on December 17, 2021.
Each Fund represents a separate series of shares of beneficial interest in the
Trust. Unlike conventional mutual funds, each Fund issues and redeems shares on
a continuous basis, at net asset value ("NAV"), only in large blocks of shares
known as "Creation Units."
Each Fund is an actively managed exchange-traded fund.
The investment objective of YMAR is to seek to provide investors with returns
that match the price return of the iShares MSCI EAFE ETF (the "Underlying MSCI
ETF"), up to a predetermined upside cap of 20.70% (before fees and expenses) and
19.80% (after fees and expenses, excluding brokerage commissions, trading fees,
taxes and extraordinary expenses not included in the Fund's management fee),
while providing a buffer (before fees and expenses) against the first 10% of
Underlying MSCI ETF losses, over the period from March 21, 2022 to March 17,
2023. Prior to March 21, 2022, the Fund's investment objective included an
upside cap of 14.18% (before fees, expenses and taxes) and 13.29% (after fees
and expenses, excluding brokerage commissions, trading fees, taxes and
extraordinary expenses not included in the Fund's management fee) and an Outcome
Period of March 22, 2021 to March 18, 2022.
The investment objective of QMAR is to seek to provide investors with returns
that match the price return of the Invesco QQQ Trust(SM), Series 1 (the
"Underlying Invesco ETF"), up to a predetermined upside cap of 17.25% (before
fees and expenses) and 16.35% (after fees and expenses, excluding brokerage
commissions, trading fees, taxes and extraordinary expenses not included in the
Fund's management fee), while providing a buffer (before fees, expenses and
taxes) against the first 10% of Underlying Invesco ETF losses, over the period
from March 21, 2022 to March 17, 2023. Prior to March 21, 2022, the Fund's
investment objective included an upside cap of 15.51% (before fees, expenses and
taxes) and 14.61% (after fees and expenses, excluding brokerage commissions,
trading fees, taxes and extraordinary expenses not included in the Fund's
management fee) and an Outcome Period of March 22, 2021 to March 18, 2022.
The investment objective of YJUN is to seek to provide investors with returns
that match the price return of the Underlying MSCI ETF, up to a predetermined
upside cap of 24.20% (before fees and expenses) and 23.31% (after fees and
expenses, excluding brokerage commissions, trading fees, taxes and extraordinary
expenses not included in the Fund's management fee), while providing a buffer
(before fees and expenses) against the first 10% of Underlying MSCI ETF losses,
over the period from June 21, 2022 to June 16, 2023. Prior to June 21, 2022, the
Fund's investment objective included an upside cap of 11.81% (before fees,
expenses and taxes) and 10.91% (after fees and expenses, excluding brokerage
commissions, trading fees, taxes and extraordinary expenses not included in the
Fund's management fee) and an Outcome Period of June 21, 2021 to June 17, 2022.
The investment objective of QJUN is to seek to provide investors with returns
that match the price return of the Underlying Invesco ETF, up to a predetermined
upside cap of 25.19% (before fees and expenses) and 24.30% (after fees and
expenses, excluding brokerage commissions, trading fees, taxes and extraordinary
expenses not included in the Fund's management fee), while providing a buffer
(before fees and expenses) against the first 10% of Underlying Invesco ETF
losses, over the period from June 21, 2022 to June 16, 2023. Prior to June 21,
2022, the Fund's investment objective included an upside cap of 13.00% (before
fees, expenses and taxes) and 12.10% (after fees and expenses, excluding
brokerage commissions, trading fees, taxes and extraordinary expenses not
included in the Fund's management fee) and an Outcome Period of June 21, 2021 to
June 17, 2022.
Page 54
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
--------------------------------------------------------------------------------
FIRST TRUST EXCHANGE-TRADED FUND VIII
AUGUST 31, 2022
The investment objective of XJUN is to seek to provide investors with returns of
approximately twice any positive price return of the SPDR(R) S&P 500(R) ETF
Trust (the "Underlying SPDR ETF"), up to a predetermined upside cap of 14.80%
(before fees and expenses) and 13.95% (after fees and expenses, excluding
brokerage commissions, trading fees, taxes and extraordinary expenses not
included in the Fund's management fee), while providing a buffer (before fees
and expenses) against the first 15% of Underlying SPDR ETF losses, over the
period from June 21, 2022 to June 16, 2023. Prior to June 21, 2022, the Fund's
investment objective included an upside cap of 6.16% (before fees, expenses and
taxes) and 5.37% (after fees and expenses, excluding brokerage commissions,
trading fees, taxes and extraordinary expenses not included in the Fund's
management fee) and an Outcome Period of June 21, 2021 to June 17, 2022.
The investment objective of YSEP is to seek to provide investors with returns
that match the price return of the Underlying MSCI ETF, up to a predetermined
upside cap of 12.93% (before fees, expenses and taxes) and 12.03% (after fees
and expenses, excluding brokerage commissions, trading fees, taxes and
extraordinary expenses not included in the Fund's management fee), while
providing a buffer against the first 10% (before fees, expenses and taxes) of
Underlying MSCI ETF losses, over the period from September 20, 2021 through
September 16, 2022.
The investment objective of QSPT is to seek to provide investors with returns
that match the price return of the Underlying Invesco ETF, up to a predetermined
upside cap of 13.65% (before fees, expenses and taxes) and 12.75% (after fees
and expenses, excluding brokerage commissions, trading fees, taxes and
extraordinary expenses not included in the Fund's management fee), while
providing a buffer against the first 10% (before fees, expenses and taxes) of
Underlying Invesco ETF losses, over the period from September 20, 2021 through
September 16, 2022.
The investment objective of YDEC is to seek to provide investors with returns
(before fees and expenses) that match the price return of the Underlying MSCI
ETF, up to a predetermined upside cap of 10.75% (before fees and expenses) and
9.85% (after fees and expenses, excluding brokerage commissions, trading fees,
taxes and extraordinary expenses not included in the Fund's management fee),
while providing a buffer against the first 10% (before fees and expenses) of
Underlying MSCI ETF losses, over the period from December 20, 2021 to December
16, 2022. Prior to December 20, 2021, the Fund's investment objective included
an upside cap of 13.79% (before fees, expenses and taxes) and 12.89% (after fees
and expenses, excluding brokerage commissions, trading fees, taxes and
extraordinary expenses not included in the Fund's management fee) and an Outcome
Period of December 21, 2020 to December 17, 2021.
The investment objective of QDEC is to seek to provide investors with returns
(before fees and expenses) that match the price return of the Underlying Invesco
ETF, up to a predetermined upside cap of 15.89% (before fees and expenses) and
14.99% (after fees and expenses, excluding brokerage commissions, trading fees,
taxes and extraordinary expenses not included in the Fund's management fee),
while providing a buffer against the first 10% (before fees and expenses) of
Underlying Invesco ETF losses, over the period from December 20, 2021 to
December 16, 2022. Prior to December 20, 2021, the Fund's investment objective
included an upside cap of 17.04% (before fees, expenses and taxes) and 16.14%
(after fees and expenses, excluding brokerage commissions, trading fees, taxes
and extraordinary expenses not included in the Fund's management fee) and an
Outcome Period of December 21, 2020 to December 17, 2021.
The investment objective of XDEC is to seek to provide investors with returns of
approximately twice any positive price return of the Underlying SPDR ETF, up to
a predetermined upside cap of 8.58% (before fees, expenses and taxes) and 7.73%
(after fees and expenses, excluding brokerage commissions, trading fees, taxes
and extraordinary expenses not included in the Fund's management fee), while
providing a buffer against the first 15% (before fees, expenses and taxes) of
Underlying SPDR ETF losses, over the period from December 20, 2021 through
December 16, 2022.
Under normal market conditions, each Fund will invest substantially all of its
assets in FLexible EXchange(R) Options ("FLEX Options") that reference the price
performance that match those of a specified reference ETF, either the SPDR(R)
S&P 500(R) ETF Trust, the Invesco QQQ Trust(SM), Series 1, or the iShares MSCI
EAFE ETF (the "Underlying ETF").
2. SIGNIFICANT ACCOUNTING POLICIES
The Funds are each considered an investment company and follow accounting and
reporting guidance under Financial Accounting Standards Board Accounting
Standards Codification Topic 946, "Financial Services-Investment Companies." The
following is a summary of significant accounting policies consistently followed
by the Funds in the preparation of the financial statements. The preparation of
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.
Page 55
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
--------------------------------------------------------------------------------
FIRST TRUST EXCHANGE-TRADED FUND VIII
AUGUST 31, 2022
A. PORTFOLIO VALUATION
Each Fund's NAV is determined daily as of the close of regular trading on the
New York Stock Exchange ("NYSE"), normally 4:00 p.m. Eastern time, on each day
the NYSE is open for trading. If the NYSE closes early on a valuation day, the
NAV is determined as of that time. Each 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.
Each Fund's investments are valued daily at market value or, in the absence of
market value with respect to any portfolio securities, at fair value. Market
value prices represent last sale or official closing prices from a national or
foreign exchange (i.e., a regulated market) and are primarily obtained from
third-party pricing services. Fair value prices represent any prices not
considered market value prices and are either obtained from a third-party
pricing service or are determined by the Pricing Committee of the Funds'
investment advisor, First Trust Advisors L.P. ("First Trust" or the "Advisor"),
in accordance with valuation procedures adopted by the Trust's Board of
Trustees, and in accordance with provisions of the 1940 Act. Investments valued
by the Advisor's Pricing Committee, if any, are footnoted as such in the
footnotes to the Portfolio of Investments. Each Fund's investments are valued as
follows:
Exchange-traded options contracts (other than FLEX Option 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 fair valued at the mean of their most recent bid and
asked price, if available, and otherwise at their closing bid price.
Over-the-counter options contracts are fair valued at the mean of their
most recent bid and asked price, if available, and otherwise at their
closing bid price. FLEX Option contracts are normally valued using a
model-based price provided by a third-party pricing vendor. On days when a
trade in a FLEX Option contract occurs, the trade price will be used to
value such FLEX Option contracts in lieu of the model price.
Common stocks and other equity securities listed on any national or
foreign exchange (excluding Nasdaq and the London Stock Exchange
Alternative Investment Market ("AIM")) are valued at the last sale price
on the exchange on which they are principally traded or, for Nasdaq and
AIM securities, the official closing price. Securities traded on more than
one securities exchange are valued at the last sale price or official
closing price, as applicable, at the close of the securities exchange
representing the principal market for such securities.
Shares of open-end funds are valued at fair value which is based on NAV
per share.
Certain securities may not be able to be priced by pre-established pricing
methods. Such securities may be valued by the Trust's Board of Trustees or its
delegate, the Advisor's Pricing Committee, at fair value. These securities
generally include, but are not limited to, restricted securities (securities
which may not be publicly sold without registration under the Securities Act of
1933, as amended) for which a third-party pricing service is unable to provide a
market price; securities whose trading has been formally suspended; a security
whose market or fair value price is not available from a pre-established pricing
source; a security with respect to which an event has occurred that is likely to
materially affect the value of the security after the market has closed but
before the calculation of a Fund's NAV or make it difficult or impossible to
obtain a reliable market quotation; and a security whose price, as provided by
the third-party pricing service, does not reflect the security's fair value. As
a general principle, the current fair value of a security would appear to be the
amount which the owner might reasonably expect to receive for the security upon
its current sale. When fair value prices are used, generally they will differ
from market quotations or official closing prices on the applicable exchanges. A
variety of factors may be considered in determining the fair value of such
securities, including, but not limited to, the following:
1) the type of security;
2) the size of the holding;
3) the initial cost of the security;
4) transactions in comparable securities;
5) price quotes from dealers and/or third-party pricing services;
6) relationships among various securities;
7) information obtained by contacting the issuer, analysts, or the
appropriate stock exchange;
8) an analysis of the issuer's financial statements; and
9) the existence of merger proposals or tender offers that might affect
the value of the security.
The Funds are subject to fair value accounting standards that define fair value,
establish the framework for measuring fair value and provide a three-level
hierarchy for fair valuation based upon the inputs to the valuation as of the
measurement date. The three levels of the fair value hierarchy are as follows:
o Level 1 - Level 1 inputs are quoted prices in active markets for
identical investments. An active market is a market in which
transactions for the investment occur with sufficient frequency and
volume to provide pricing information on an ongoing basis.
o Level 2 - Level 2 inputs are observable inputs, either directly or
indirectly, and include the following:
o Quoted prices for similar investments in active markets.
Page 56
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
--------------------------------------------------------------------------------
FIRST TRUST EXCHANGE-TRADED FUND VIII
AUGUST 31, 2022
o Quoted prices for identical or similar investments in markets
that are non-active. A non-active market is a market where
there are few transactions for the investment, the prices are
not current, or price quotations vary substantially either
over time or among market makers, or in which little
information is released publicly.
o Inputs other than quoted prices that are observable for the
investment (for example, interest rates and yield curves
observable at commonly quoted intervals, volatilities,
prepayment speeds, loss severities, credit risks, and default
rates).
o Inputs that are derived principally from or corroborated by
observable market data by correlation or other means.
o Level 3 - Level 3 inputs are unobservable inputs. Unobservable
inputs may reflect the reporting entity's own assumptions about the
assumptions that market participants would use in pricing the
investment.
The inputs or methodologies used for valuing investments are not necessarily an
indication of the risk associated with investing in those investments. A summary
of the inputs used to value each Fund's investments as of August 31, 2022, is
included with each Fund's Portfolio of Investments.
In December 2020, the SEC adopted Rule 2a-5 under the 1940 Act, establishing
requirements to determine fair value in good faith for purposes of the 1940 Act.
The rule permits fund boards to designate a fund's investment adviser to perform
fair value determinations, subject to board oversight and certain other
conditions. The rule also defines when market quotations are "readily available"
for purposes of the 1940 Act and requires a fund to fair value a portfolio
investment when a market quotation is not readily available. The SEC also
adopted new Rule 31a-4 under the 1940 Act, which sets forth recordkeeping
requirements associated with fair value determinations. The compliance date for
Rule 2a-5 and Rule 31a-4 is September 8, 2022.
Effective September 8, 2022 and pursuant to the requirements of Rule 2a-5, the
Trust's Board of Trustees designated the Advisor as its valuation designee to
perform fair value determinations and approved new Advisor Valuation Procedures
for the Trust.
B. SECURITIES TRANSACTIONS AND INVESTMENT INCOME
Securities transactions are recorded as of the trade date. Realized gains and
losses from securities transactions are recorded on the identified cost basis.
Dividend income is recorded on the ex-dividend date.
C. FLEX OPTIONS
FLEX Options are customized equity or index option contracts that trade on an
exchange, but provide investors with the ability to customize key contract terms
like exercise prices, styles and expiration dates. FLEX Options are guaranteed
for settlement by the Options Clearing Corporation.
Each Fund purchases and sells call and put FLEX Options based on the performance
of the Underlying ETF. The FLEX Options that each Fund holds that reference the
Underlying ETF will give each Fund the right to receive or deliver shares of the
Underlying ETF on the option expiration date at a strike price, depending on
whether the option is a put or call option and whether each Fund purchases or
sells the option. The FLEX Options held by each Fund are European style options,
which are exercisable at the strike price only on the FLEX Option expiration
date. All options held by each Fund at August 31, 2022 are FLEX Options.
D. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income of each Fund, if any, are declared and paid
annually, or as the Board of Trustees may determine from time to time.
Distributions of net realized gains earned by each Fund, if any, are distributed
at least annually.
Distributions from net investment income and realized capital gains are
determined in accordance with federal income tax regulations, which may differ
from U.S. GAAP. Certain capital accounts in the financial statements are
periodically adjusted for permanent differences in order to reflect their tax
character. These permanent differences are primarily due to the varying
treatment of income and gain/loss on significantly modified portfolio securities
held by the Funds and have no impact on net assets or NAV per share. Temporary
differences, which arise from recognizing certain items of income, expense and
gain/loss in different periods for financial statement and tax purposes, will
reverse at some time in the future. During their applicable taxable periods
ended, none of the Funds paid a distribution in 2021 or 2022.
Page 57
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NOTES TO FINANCIAL STATEMENTS (CONTINUED)
--------------------------------------------------------------------------------
FIRST TRUST EXCHANGE-TRADED FUND VIII
AUGUST 31, 2022
As of the applicable taxable year end, the components of distributable earnings
on a tax basis for each Fund were as follows:
Accumulated Net
Undistributed Capital and Unrealized
Taxable Ordinary Other Appreciation
Year End Income Gain (Loss) (Depreciation)
------------- ------------- ------------- --------------
FT Cboe Vest International Equity Buffer ETF - March 31-Mar-22 $ (34,532) $ (1,528,181) $ 50,392
FT Cboe Vest Nasdaq-100(R) Buffer ETF - March 31-Mar-22 (37,327) (157,975) 317,284
FT Cboe Vest International Equity Buffer ETF - June 30-Jun-22 (54,107) (2,915,490) 167,652
FT Cboe Vest Nasdaq-100(R) Buffer ETF - June 30-Jun-22 (129,139) (8,388,555) 325,422
FT Cboe Vest U.S. Equity Enhance & Moderate Buffer
ETF - June 30-Jun-22 (54,220) (2,446,792) 106,384
FT Cboe Vest International Equity Buffer ETF - September 30-Sep-21 -- -- (23,732)
FT Cboe Vest Nasdaq-100(R) Buffer ETF - September 30-Sep-21 -- -- (221,745)
FT Cboe Vest International Equity Buffer ETF - December 31-Dec-21 -- (969,608) 100,945
FT Cboe Vest Nasdaq-100(R) Buffer ETF - December 31-Dec-21 -- (6,990,447) 1,647,303
FT Cboe Vest U.S. Equity Enhance & Moderate Buffer
ETF - December 31-Dec-21 -- -- 60,382
E. INCOME TAXES
Each Fund intends to qualify or continue to qualify as a regulated investment
company by complying with the requirements under Subchapter M of the Internal
Revenue Code of 1986, as amended, which includes distributing substantially all
of its net investment income and net realized gains to shareholders.
Accordingly, no provision has been made for federal and state income taxes.
However, due to the timing and amount of distributions, each Fund may be subject
to an excise tax of 4% of the amount by which approximately 98% of each Fund's
taxable income exceeds the distributions from such taxable income for the
calendar year.
The Funds are subject to accounting standards that establish a minimum threshold
for recognizing, and a system for measuring, the benefits of a tax position
taken or expected to be taken in a tax return. The taxable years ended 2021 and
2022 remain open to federal and state audit. As of August 31, 2022, management
has evaluated the application of these standards to the Funds and has determined
that no provision for income tax is required in the Funds' financial statements
for uncertain tax positions.
Each Fund intends to utilize provisions of the federal income tax laws, which
allow it to carry a realized capital loss forward indefinitely following the
year of the loss and offset such loss against any future realized capital gains.
Each Fund is subject to certain limitations under U.S. tax rules on the use of
capital loss carryforwards and net unrealized built-in losses. These limitations
apply when there has been a 50% change in ownership. At each Fund's applicable
taxable year end, for federal income tax purposes, the Funds had a capital loss
carryforward available that is shown in the table below, to the extent provided
by regulations, to offset future capital gains. To the extent that these loss
carryforwards are used to offset future capital gains, it is probable that the
capital gains so offset will not be distributed to the Funds' shareholders.
Non-Expiring
Taxable Capital Loss
Year End Carryforward
-------------- --------------
FT Cboe Vest International Equity Buffer ETF - March 31-Mar-22 $ 1,528,181
FT Cboe Vest Nasdaq-100(R) Buffer ETF - March 31-Mar-22 157,975
FT Cboe Vest International Equity Buffer ETF - June 30-Jun-22 2,915,490
FT Cboe Vest Nasdaq-100(R) Buffer ETF - June 30-Jun-22 8,388,555
FT Cboe Vest U.S. Equity Enhance & Moderate Buffer ETF - June 30-Jun-22 2,446,792
FT Cboe Vest International Equity Buffer ETF - September 30-Sep-21 --
FT Cboe Vest Nasdaq-100(R) Buffer ETF - September 30-Sep-21 --
FT Cboe Vest International Equity Buffer ETF - December 31-Dec-21 969,608
FT Cboe Vest Nasdaq-100(R) Buffer ETF - December 31-Dec-21 6,990,447
FT Cboe Vest U.S. Equity Enhance & Moderate Buffer ETF - December 31-Dec-21 --
Page 58
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NOTES TO FINANCIAL STATEMENTS (CONTINUED)
--------------------------------------------------------------------------------
FIRST TRUST EXCHANGE-TRADED FUND VIII
AUGUST 31, 2022
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. At each Fund's applicable taxable year end, the following
Funds listed below incurred and elected to defer net late year ordinary or
capital losses as follows:
Qualified Late Year Losses
Taxable -----------------------------------
Year End Ordinary Losses Capital Losses
------------- ---------------- --------------
FT Cboe Vest International Equity Buffer ETF - March 31-Mar-22 $ 34,532 $ --
FT Cboe Vest Nasdaq-100(R) Buffer ETF - March 31-Mar-22 37,327 --
FT Cboe Vest International Equity Buffer ETF - June 30-Jun-22 54,107 --
FT Cboe Vest Nasdaq-100(R) Buffer ETF - June 30-Jun-22 129,139 --
FT Cboe Vest U.S. Equity Enhance & Moderate Buffer ETF - June 30-Jun-22 54,220 --
FT Cboe Vest International Equity Buffer ETF - September 30-Sep-21 -- --
FT Cboe Vest Nasdaq-100(R) Buffer ETF - September 30-Sep-21 -- --
FT Cboe Vest International Equity Buffer ETF - December 31-Dec-21 -- --
FT Cboe Vest Nasdaq-100(R) Buffer ETF - December 31-Dec-21 -- --
FT Cboe Vest U.S. Equity Enhance & Moderate Buffer ETF - December 31-Dec-21 -- --
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 Statements 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 each
Fund's applicable taxable period the adjustments were as follows:
Accumulated
Accumulated Net Realized
Taxable Net Investment Gain (Loss) Paid-in
Year End Income (Loss) on Investments Capital
-------------- -------------- -------------- --------------
FT Cboe Vest International Equity Buffer ETF - March 31-Mar-22 $ 60,442 $ (1,121,887) $ 1,061,445
FT Cboe Vest Nasdaq-100(R) Buffer ETF - March 31-Mar-22 100,983 (1,796,330) 1,695,347
FT Cboe Vest International Equity Buffer ETF - June 30-Jun-22 61,370 (1,477,134) 1,415,764
FT Cboe Vest Nasdaq-100(R) Buffer ETF - June 30-Jun-22 123,506 (5,528,935) 5,405,429
FT Cboe Vest U.S. Equity Enhance & Moderate Buffer
ETF - June 30-Jun-22 21,684 (2,317,786) 2,296,102
FT Cboe Vest International Equity Buffer ETF - September 30-Sep-21 591 -- (591)
FT Cboe Vest Nasdaq-100(R) Buffer ETF - September 30-Sep-21 1,905 -- (1,905)
FT Cboe Vest International Equity Buffer ETF - December 31-Dec-21 87,232 (1,124,878) 1,037,646
FT Cboe Vest Nasdaq-100(R) Buffer ETF - December 31-Dec-21 657,631 (18,161,689) 17,504,058
FT Cboe Vest U.S. Equity Enhance & Moderate Buffer
ETF - December 31-Dec-21 893 -- (893)
Page 59
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NOTES TO FINANCIAL STATEMENTS (CONTINUED)
--------------------------------------------------------------------------------
FIRST TRUST EXCHANGE-TRADED FUND VIII
AUGUST 31, 2022
As of August 31, 2022, the aggregate cost, gross unrealized appreciation, gross
unrealized depreciation, and net unrealized appreciation/(depreciation) on
investments (including short positions and derivatives, if any) for federal
income tax purposes were as follows:
Net
Gross Gross Unrealized
Unrealized Unrealized Appreciation
Tax Cost Appreciation (Depreciation) (Depreciation)
-------------- -------------- -------------- --------------
FT Cboe Vest International Equity Buffer ETF - March $ 41,911,011 $ 3,597,119 $ (7,748,574) $ (4,151,455)
FT Cboe Vest Nasdaq-100(R) Buffer ETF - March 51,946,411 3,300,017 (8,553,994) (5,253,977)
FT Cboe Vest International Equity Buffer ETF - June 29,865,821 324,068 (523,977) (199,909)
FT Cboe Vest Nasdaq-100(R) Buffer ETF - June 89,160,887 7,576,609 (4,626,424) 2,950,185
FT Cboe Vest U.S. Equity Enhance & Moderate Buffer
ETF - June 108,554,018 9,196,208 (7,030,119) 2,166,089
FT Cboe Vest International Equity Buffer ETF - September 7,033,480 1,080,248 (2,097,028) (1,016,780)
FT Cboe Vest Nasdaq-100(R) Buffer ETF - September 27,263,632 3,361,986 (6,276,492) (2,914,506)
FT Cboe Vest International Equity Buffer ETF - December 12,731,263 1,428,982 (2,973,973) (1,544,991)
FT Cboe Vest Nasdaq-100(R) Buffer ETF - December 82,998,233 12,203,720 (23,514,902) (11,311,182)
FT Cboe Vest U.S. Equity Enhance & Moderate Buffer
ETF - December 79,797,565 8,250,367 (10,142,393) (1,892,026)
F. 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 Funds, is a limited partnership with
one limited partner, Grace Partners of DuPage L.P., and one general partner, The
Charger Corporation. The Charger Corporation is an Illinois corporation
controlled by James A. Bowen, Chief Executive Officer of First Trust. First
Trust is responsible for the ongoing monitoring of the securities in each Fund's
portfolio, managing the Funds' business affairs and providing certain
administrative services necessary for the management of the Funds.
First Trust is paid an annual unitary management fee of 0.90% of each Fund's
average daily net assets with the exception of XJUN and XDEC which pay an annual
unitary management fee of 0.85%.
First Trust and Cboe Vest(SM) Financial LLC ("Cboe Vest"), an affiliate of First
Trust, are responsible for each Fund's expenses, including the cost of transfer
agency, sub-advisory, 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.
Cboe Vest serves as the Funds' sub-advisor and manages each Fund's portfolio
subject to First Trust's supervision. Pursuant to the Investment Management
Agreement, between the Trust, on behalf of the Funds, and the Advisor, and the
Investment Sub-Advisory Agreement among the Trust, on behalf of the Funds, the
Advisor and Cboe Vest, First Trust will supervise Cboe Vest and its management
of the investment of each Fund's assets and will pay Cboe Vest for its services
as the Funds' sub-advisor a sub-advisory fee equal to 50% of any remaining
monthly unitary management fee paid to the Advisor, after the average Fund's
expenses accrued during the most recent twelve months are subtracted from the
unitary management fee for that month.
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
each Fund. As custodian, BNYM is responsible for custody of each Fund's assets.
As fund accountant and administrator, BNYM is responsible for maintaining the
books and records of each Fund's securities and cash. As transfer agent, BNYM is
responsible for maintaining shareholder records for each Fund. BNYM is a
subsidiary of The Bank of New York Mellon Corporation, a financial holding
company.
Each Trustee who is not an officer or employee of First Trust, any sub-advisor
or any of their affiliates ("Independent Trustees") is paid a fixed annual
retainer that is allocated equally among each fund in the First Trust Fund
Complex. Each Independent Trustee is also paid an annual per fund fee that
varies based on whether the fund is a closed-end or other actively managed fund,
a defined-outcome fund or an index fund.
Page 60
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
--------------------------------------------------------------------------------
FIRST TRUST EXCHANGE-TRADED FUND VIII
AUGUST 31, 2022
Additionally, the Lead Independent Trustee and the Chairs of the Audit
Committee, Nominating and Governance Committee and Valuation Committee are paid
annual fees to serve in such capacities, with such compensation allocated pro
rata among each fund in the First Trust Fund Complex based on net assets.
Independent Trustees are reimbursed for travel and out-of-pocket expenses in
connection with all meetings. The Lead Independent Trustee and Committee Chairs
rotate every three years. The officers and "Interested" Trustee receive no
compensation from the Trust for acting in such capacities.
4. PURCHASES AND SALES OF SECURITIES
For the fiscal period ended August 31, 2022, the Funds had no purchases or sales
of investments, excluding short-term investments and in-kind transactions. Each
Fund holds options for a target outcome period of approximately one year based
on the expiration date of the options, which occurs on the third Friday of the
month corresponding to the month in each Fund name. For securities transactions
purposes, the options are considered short-term investments.
For the fiscal period ended August 31, 2022, the cost of in-kind purchases and
proceeds from in-kind sales for each Fund were as follows:
Purchases Sales
-------------- --------------
FT Cboe Vest International Equity Buffer ETF - March $ -- $ 21,126,775
FT Cboe Vest Nasdaq-100(R) Buffer ETF - March -- 21,439,796
FT Cboe Vest International Equity Buffer ETF - June 1,021,655 14,498,437
FT Cboe Vest Nasdaq-100(R) Buffer ETF - June -- 31,033,910
FT Cboe Vest U.S. Equity Enhance & Moderate Buffer ETF - June -- 11,723,904
FT Cboe Vest International Equity Buffer ETF - September 1,987,077 2,764,985
FT Cboe Vest Nasdaq-100(R) Buffer ETF - September 8,035,517 1,989,759
FT Cboe Vest International Equity Buffer ETF - December -- 15,791,154
FT Cboe Vest Nasdaq-100(R) Buffer ETF - December -- 67,144,168
FT Cboe Vest U.S. Equity Enhance & Moderate Buffer ETF - December -- --
5. DERIVATIVE TRANSACTIONS
The following table presents the types of derivatives held by each Fund at
August 31, 2022, the primary underlying risk exposure and the location of these
instruments as presented on the Statements of Assets and Liabilities.
ASSET DERIVATIVES LIABILITY DERIVATIVES
----------------------------------------- -----------------------------------------
DERIVATIVES STATEMENTS OF ASSETS AND STATEMENTS OF ASSETS AND
INSTRUMENT RISK EXPOSURE LIABILITIES LOCATION VALUE LIABILITIES LOCATION VALUE
------------------ ------------------ -------------------------- ------------ -------------------------- ------------
YMAR
Options contracts Options contracts
Options Equity Risk purchased, at value $ 40,785,766 written, at value $ 3,419,114
QMAR
Options contracts Options contracts
Options Equity Risk purchased, at value 50,973,755 written, at value 4,714,701
YJUN
Options contracts Options contracts
Options Equity Risk purchased, at value 30,719,028 written, at value 1,399,830
QJUN
Options contracts Options contracts
Options Equity Risk purchased, at value 99,289,247 written, at value 8,097,383
XJUN
Options contracts Options contracts
Options Equity Risk purchased, at value 134,398,356 written, at value 24,711,347
Page 61
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
--------------------------------------------------------------------------------
FIRST TRUST EXCHANGE-TRADED FUND VIII
AUGUST 31, 2022
ASSET DERIVATIVES LIABILITY DERIVATIVES
----------------------------------------- -----------------------------------------
DERIVATIVES STATEMENTS OF ASSETS AND STATEMENTS OF ASSETS AND
INSTRUMENT RISK EXPOSURE LIABILITIES LOCATION VALUE LIABILITIES LOCATION VALUE
------------------ ------------------ -------------------------- ------------ -------------------------- ------------
YSEP
Options contracts Options contracts
Options Equity Risk purchased, at value $ 6,908,314 written, at value $ 925,961
QSPT
Options contracts Options contracts
Options Equity Risk purchased, at value 26,945,424 written, at value 2,694,390
YDEC
Options contracts Options contracts
Options Equity Risk purchased, at value 12,354,970 written, at value 1,261,820
QDEC
Options contracts Options contracts
Options Equity Risk purchased, at value 81,512,138 written, at value 10,350,260
XDEC
Options contracts Options contracts
Options Equity Risk purchased, at value 80,666,630 written, at value 3,285,837
The following table presents the amount of net realized gain (loss) and change
in net unrealized appreciation (depreciation) recognized for the fiscal period
ended August 31, 2022, on each Fund's derivative instruments, as well as the
primary underlying risk exposure associated with the instruments.
EQUITY RISK
-------------------------------------------------------------------
STATEMENTS OF OPERATIONS LOCATION YMAR QMAR YJUN QJUN XJUN
------------------------------------- -------------------------------------------------------------------
Net realized gain (loss) on:
Purchased options contracts $(1,305,251) $ 553,478 $ (828,319) $ (2,119,722) $(1,385,009)
Written options contracts 667,851 1,424,005 (610,037) (575,407) 1,273,532
Net change in unrealized
appreciation (depreciation) on:
Purchased options contracts (3,220,026) (6,346,502) (554,049) 488,810 2,824,486
Written options contracts (1,182,049) 34,267 104,733 1,387,396 (728,364)
EQUITY RISK
-------------------------------------------------------------------
STATEMENTS OF OPERATIONS LOCATION YSEP QSPT YDEC QDEC XDEC
------------------------------------- -------------------------------------------------------------------
Net realized gain (loss) on:
Purchased options contracts $ 28,329 $ 65,590 $ (185,114) $ 6,562,025 $ (327,495)
Written options contracts (57,616) 326,675 617,079 2,404,227 280,280
Net change in unrealized
appreciation (depreciation) on:
Purchased options contracts (380,790) (2,364,873) (1,385,393) (17,058,775) (6,203,993)
Written options contracts (635,990) (528,268) (860,571) (2,843,260) 4,380,554
The Funds do not have the right to offset financial assets and financial
liabilities related to options contracts on the Statements of Assets and
Liabilities.
Page 62
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
--------------------------------------------------------------------------------
FIRST TRUST EXCHANGE-TRADED FUND VIII
AUGUST 31, 2022
The following table presents the premiums for purchased options contracts
opened, premiums for purchased options contracts closed, exercised and expired,
premiums for written options contracts opened, and premiums for written options
contracts closed, exercised and expired, for the fiscal period ended August 31,
2022, on each Fund's options contracts.
PREMIUMS FOR PREMIUMS FOR
PREMIUMS FOR PURCHASED WRITTEN OPTIONS
PURCHASED OPTIONS CONTRACTS PREMIUMS FOR CONTRACTS CLOSED,
OPTIONS CONTRACTS CLOSED, EXERCISED WRITTEN OPTIONS EXERCISED AND
OPENED AND EXPIRED CONTRACTS OPENED EXPIRED
----------------------------------------------------------------------------
YMAR $ 80,141,948 $ 49,021,832 $ 3,684,615 $ 1,749,210
QMAR 85,509,578 49,058,370 6,313,876 3,674,316
YJUN 50,270,010 32,702,196 3,041,509 2,095,072
QJUN 153,912,699 91,551,412 13,567,554 7,283,701
XJUN 154,094,502 29,393,661 25,292,142 2,217,287
YSEP 10,263,447 2,974,343 470,042 180,071
QSPT 49,228,510 19,918,213 4,156,740 1,990,618
YDEC 38,994,674 37,428,004 1,304,642 1,128,018
QDEC 195,799,559 182,280,263 17,059,217 15,989,498
XDEC 97,179,032 10,308,409 8,518,732 852,341
6. CREATIONS, REDEMPTIONS AND TRANSACTION FEES
Each Fund generally issues and redeems its shares in primary market transactions
through a creation and redemption mechanism and does not sell or redeem
individual shares. Instead, financial entities known as "Authorized
Participants" have contractual arrangements with a Fund or one of the Fund's
service providers to purchase and redeem Fund shares directly with the Fund in
large blocks of shares known as "Creation Units." Prior to the start of trading
on every business day, a Fund publishes through the National Securities Clearing
Corporation ("NSCC") the "basket" of securities, cash or other assets that it
will accept in exchange for a Creation Unit of the Fund's shares. An Authorized
Participant that wishes to effectuate a creation of a Fund's shares deposits
with the Fund the "basket" of securities, cash or other assets identified by the
Fund that day, and then receives the Creation Unit of the Fund's shares in
return for those assets. After purchasing a Creation Unit, the Authorized
Participant may continue to hold the Fund's shares or sell them in the secondary
market. The redemption process is the reverse of the purchase process: the
Authorized Participant redeems a Creation Unit of a Fund's shares for a basket
of securities, cash or other assets. The combination of the creation and
redemption process with secondary market trading in a Fund's shares and
underlying securities provides arbitrage opportunities that are designed to help
keep the market price of a Fund's shares at or close to the NAV per share of the
Fund.
Each Fund imposes fees in connection with the purchase of Creation Units. These
fees may vary based upon various fact-based circumstances, including, but not
limited to, the composition of the securities included in the Creation Unit or
the countries in which the transactions are settled. The price for each Creation
Unit will equal the daily NAV per share of a Fund times the number of shares in
a Creation Unit, plus the fees described above and, if applicable, any
operational processing and brokerage costs, transfer fees, stamp taxes and part
or all of the spread between the expected bid and offer side of the market
related to the securities comprising the creation basket.
Each Fund also imposes fees in connection with the redemption of Creation Units.
These fees may vary based upon various fact-based circumstances, including, but
not limited to, the composition of the securities included in the Creation Unit
or the countries in which the transactions are settled. The price received for
each Creation Unit will equal the daily NAV per share of a Fund times the number
of shares in a Creation Unit, minus the fees described above and, if applicable,
any operational processing and brokerage costs, transfer fees, stamp taxes and
part or all of the spread between the expected bid and offer side of the market
related to the securities comprising the redemption basket. Investors who use
the services of a broker or other such intermediary in addition to an Authorized
Participant to effect a redemption of a Creation Unit may also be assessed an
amount to cover the cost of such services. The redemption fee charged by a Fund
will comply with Rule 22c-2 of the 1940 Act which limits redemption fees to no
more than 2% of the value of the shares redeemed.
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 Funds are
authorized to pay an amount up to 0.25% of their average daily net assets each
year to reimburse First Trust Portfolios L.P. ("FTP"), the distributor of the
Funds, for amounts expended to finance activities primarily intended to result
in the sale of Creation Units or the provision of investor services. FTP may
also use this amount to compensate securities dealers or other persons that are
Authorized Participants for providing distribution assistance, including
broker-dealer and shareholder support and educational and promotional services.
Page 63
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NOTES TO FINANCIAL STATEMENTS (CONTINUED)
--------------------------------------------------------------------------------
FIRST TRUST EXCHANGE-TRADED FUND VIII
AUGUST 31, 2022
No 12b-1 fees are currently paid by the Funds, and pursuant to a contractual
arrangement, no 12b-1 fees will be paid any time before December 31, 2023 for
YMAR, QMAR, YJUN, QJUN, XJUN, YDEC and QDEC, September 1, 2023 for YSEP and
QSPT, and December 10, 2023 for XDEC.
8. INDEMNIFICATION
The Trust, on behalf of the Funds, has a variety of indemnification obligations
under contracts with its service providers. The Trust's maximum exposure under
these arrangements is unknown. However, the Trust has not had prior claims or
losses pursuant to these contracts and expects the risk of loss to be remote.
9. SUBSEQUENT EVENTS
Management has evaluated the impact of all subsequent events on the Funds
through the date the financial statements were issued and has determined that
there were the following subsequent events:
As of September 19, 2022, the investment objective of the FT Cboe Vest
International Equity Buffer ETF - September changed to include an upside cap of
25.00% (before fees, expenses and taxes) and 24.10% (after fees and expenses,
excluding brokerage commissions, trading fees, taxes and extraordinary expenses
not included in the Fund's management fee) and an Outcome Period of September
19, 2022 to September 15, 2023.
As of September 19, 2022, the investment objective of the FT Cboe Vest
Nasdaq-100(R) Buffer ETF - September changed to include an upside cap of 27.27%
(before fees, expenses and taxes) and 26.37% (after fees and expenses, excluding
brokerage commissions, trading fees, taxes and extraordinary expenses not
included in the Fund's management fee) and an Outcome Period of September 19,
2022 to September 15, 2023.
Page 64
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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
--------------------------------------------------------------------------------
TO THE SHAREHOLDERS AND THE BOARD OF TRUSTEES OF FIRST TRUST EXCHANGE-TRADED
FUND VIII:
OPINION ON THE FINANCIAL STATEMENTS AND FINANCIAL HIGHLIGHTS
We have audited the accompanying statements of assets and liabilities of FT Cboe
Vest International Equity Buffer ETF - March, FT Cboe Vest Nasdaq-100(R) Buffer
ETF - March, FT Cboe Vest International Equity Buffer ETF - June, FT Cboe Vest
Nasdaq-100(R) Buffer ETF - June, FT Cboe Vest U.S. Equity Enhance & Moderate
Buffer ETF - June, FT Cboe Vest International Equity Buffer ETF - September, FT
Cboe Vest Nasdaq-100(R) Buffer ETF - September, FT Cboe Vest International
Equity Buffer ETF - December, FT Cboe Vest Nasdaq-100(R) Buffer ETF - December,
and FT Cboe Vest U.S. Equity Enhance & Moderate Buffer ETF - December (the
"Funds"), each a series of the First Trust Exchange-Traded Fund VIII, including
the portfolios of investments, as of August 31, 2022, and the related statements
of operations, the changes in net assets, and the financial highlights for the
periods indicated in the table below, and the related notes. In our opinion, the
financial statements and financial highlights present fairly, in all material
respects, the financial position of the Funds as of August 31, 2022, and the
results of their operations, the changes in their net assets, and the financial
highlights for the periods listed in the table below, in conformity with
accounting principles generally accepted in the United States of America.
------------------------------------------------------------------------------------------------------------------------
INDIVIDUAL FUNDS STATEMENTS OF STATEMENTS OF FINANCIAL
INCLUDED IN THE TRUST OPERATIONS CHANGES IN NET ASSETS HIGHLIGHTS
------------------------------------------------------------------------------------------------------------------------
FT Cboe Vest International Equity For the year ended For the year ended August 31, 2022 and for the period
Buffer ETF - March August 31, 2022 from March 19, 2021 (commencement of operations)
through August 31, 2021
FT Cboe Vest Nasdaq-100(R)
Buffer ETF - March
------------------------------------------------------------------------------------------------------------------------
FT Cboe Vest International Equity For the year ended For the year ended August 31, 2022 and for the period
Buffer ETF - June August 31, 2022 from June 18, 2021 (commencement of operations)
through August 31, 2021
FT Cboe Vest Nasdaq-100(R)
Buffer ETF - June
------------------------------------------------------------------------------------------------------------------------
FT Cboe Vest U.S. Equity Enhance & For the year ended For the year ended August 31, 2022 and for the period
Moderate Buffer ETF - June August 31, 2022 from July 12, 2021 (commencement of operations)
through August 31, 2021
------------------------------------------------------------------------------------------------------------------------
FT Cboe Vest International Equity For the period from September 17, 2021 (commencement of operations) through
Buffer ETF - September August 31, 2022
FT Cboe Vest Nasdaq-100(R)
Buffer ETF - September
------------------------------------------------------------------------------------------------------------------------
FT Cboe Vest International Equity For the year ended For the year ended August 31, 2022 and for the period
Buffer ETF - December August 31, 2022 from December 18, 2020 (commencement of operations)
through August 31, 2021
FT Cboe Vest Nasdaq-100(R)
Buffer ETF - December
------------------------------------------------------------------------------------------------------------------------
FT Cboe Vest U.S. Equity Enhance & For the period from December 17, 2021 (commencement of operations) through
Moderate Buffer ETF - December August 31, 2022
------------------------------------------------------------------------------------------------------------------------
BASIS FOR OPINION
These financial statements and financial highlights are the responsibility of
the Funds' management. Our responsibility is to express an opinion on the Funds'
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 Funds in accordance with the U.S. federal securities laws and the applicable
rules and regulations of the Securities and Exchange Commission and the PCAOB.
Page 65
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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM (CONTINUED)
--------------------------------------------------------------------------------
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 Funds are not
required to have, nor were we engaged to perform, an audit of their 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 Funds' 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 August 31, 2022, by correspondence with
the custodian and brokers; when replies were not received from brokers, we
performed other auditing procedures. We believe that our audits provide a
reasonable basis for our opinion.
/s/ Deloitte & Touche LLP
Chicago, Illinois
October 24, 2022
We have served as the auditor of one or more First Trust investment companies
since 2001.
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FIRST TRUST EXCHANGE-TRADED FUND VIII
AUGUST 31, 2022 (UNAUDITED)
PROXY VOTING POLICIES AND PROCEDURES
A description of the policies and procedures that the Trust uses to determine
how to vote proxies and information on how each Fund voted proxies relating to
its portfolio securities during the most recent 12-month period ended June 30 is
available (1) without charge, upon request, by calling (800) 988-5891; (2) on
each Fund's website at www.ftportfolios.com; and (3) on the Securities and
Exchange Commission's ("SEC") website at www.sec.gov.
PORTFOLIO HOLDINGS
Each Fund files portfolio holdings information for each month in a fiscal
quarter within 60 days after the end of the relevant fiscal quarter on Form
N-PORT. Portfolio holdings information for the third month of each fiscal
quarter will be publicly available on the SEC's website at www.sec.gov. Each
Fund's complete schedule of portfolio holdings for the second and fourth
quarters of each fiscal year is included in the semi-annual and annual reports
to shareholders, respectively, and is filed with the SEC on Form N-CSR. The
semi-annual and annual report for each Fund is available to investors within 60
days after the period to which it relates. Each Fund's Forms N-PORT and Forms
N-CSR are available on the SEC's website listed above.
FEDERAL TAX INFORMATION
There were no distributions made by each Fund during their applicable taxable
period; therefore, no analysis for the corporate dividends received deduction
and qualified dividend income was completed.
RISK CONSIDERATIONS
RISKS ARE INHERENT IN ALL INVESTING. CERTAIN GENERAL RISKS THAT MAY BE
APPLICABLE TO A FUND ARE IDENTIFIED BELOW, BUT NOT ALL OF THE MATERIAL RISKS
RELEVANT TO EACH FUND ARE INCLUDED IN THIS REPORT AND NOT ALL OF THE RISKS BELOW
APPLY TO EACH FUND. THE MATERIAL RISKS OF INVESTING IN EACH FUND ARE SPELLED OUT
IN ITS PROSPECTUS, STATEMENT OF ADDITIONAL INFORMATION AND OTHER REGULATORY
FILINGS. BEFORE INVESTING, YOU SHOULD CONSIDER EACH FUND'S INVESTMENT OBJECTIVE,
RISKS, CHARGES AND EXPENSES, AND READ EACH FUND'S PROSPECTUS AND STATEMENT OF
ADDITIONAL INFORMATION CAREFULLY. YOU CAN DOWNLOAD EACH FUND'S PROSPECTUS AT
WWW.FTPORTFOLIOS.COM OR CONTACT FIRST TRUST PORTFOLIOS L.P. AT (800) 621-1675 TO
REQUEST A PROSPECTUS, WHICH CONTAINS THIS AND OTHER INFORMATION ABOUT EACH FUND.
CONCENTRATION RISK. To the extent that a fund is able to invest a significant
percentage of its assets in a single asset class or the securities of issuers
within the same country, state, region, industry or sector, an adverse economic,
business or political development may affect the value of the fund's investments
more than if the fund were more broadly diversified. A fund that tracks an index
will be concentrated to the extent the fund's corresponding index is
concentrated. A concentration makes a fund more susceptible to any single
occurrence and may subject the fund to greater market risk than a fund that is
more broadly diversified.
CREDIT RISK. Credit risk is the risk that an issuer of a security will be unable
or unwilling to make dividend, interest and/or principal payments when due and
the related risk that the value of a security may decline because of concerns
about the issuer's ability to make such payments.
CYBER SECURITY RISK. The funds are susceptible to potential operational risks
through breaches in cyber security. A breach in cyber security refers to both
intentional and unintentional events that may cause a fund to lose proprietary
information, suffer data corruption or lose operational capacity. Such events
could cause a fund to incur regulatory penalties, reputational damage,
additional compliance costs associated with corrective measures and/or financial
loss. In addition, cyber security breaches of a fund's third-party service
providers, such as its administrator, transfer agent, custodian, or sub-advisor,
as applicable, or issuers in which the fund invests, can also subject a fund to
many of the same risks associated with direct cyber security breaches.
DEFINED OUTCOME FUNDS RISK. To the extent a fund's investment strategy is
designed to deliver returns tied to the price performance of an underlying ETF,
an investor may not realize the returns the fund seeks to achieve if that
investor does not hold shares for the entire target outcome period. In the event
an investor purchases shares after the first day of the target outcome period or
sells shares prior to the end of the target outcome period, the buffer that the
fund seeks to provide against a decline in the value of the underlying ETF may
not be available, the enhanced returns that the fund seeks to provide (if any)
may not be available and the investor may not participate in a gain in the value
of the underlying ETF up to the cap for the investor's investment period.
Additionally, the fund will not participate in gains of the underlying ETF above
the cap and a shareholder may lose their entire investment. If the fund seeks
enhanced returns, there are certain time periods when the value of the fund may
fall faster than the value of the underlying ETF, and it is very unlikely that,
on any given day during which the underlying ETF share price increases in value,
the fund's share price will increase at the same rate as the enhanced returns
sought by the fund, which is designed for an entire target outcome period.
Trading flexible exchange options involves risks different from, or possibly
greater than, the risks associated with investing directly in securities, such
as less liquidity and correlation and valuation risks. A fund may experience
substantial downside from specific flexible exchange option positions and
certain positions may expire worthless.
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FIRST TRUST EXCHANGE-TRADED FUND VIII
AUGUST 31, 2022 (UNAUDITED)
DERIVATIVES RISK. To the extent a fund uses derivative instruments such as
futures contracts, options contracts and swaps, the fund may experience losses
because of adverse movements in the price or value of the underlying asset,
index or rate, which may be magnified by certain features of the derivative.
These risks are heightened when a fund's portfolio managers use derivatives to
enhance the fund's return or as a substitute for a position or security, rather
than solely to hedge (or offset) the risk of a position or security held by the
fund.
EQUITY SECURITIES RISK. To the extent a fund invests in equity securities, the
value of the fund's shares will fluctuate with changes in the value of the
equity securities. Equity securities prices fluctuate for several reasons,
including changes in investors' perceptions of the financial condition of an
issuer or the general condition of the relevant stock market, such as market
volatility, or when political or economic events affecting the issuers occur. In
addition, common stock prices may be particularly sensitive to rising interest
rates, as the cost of capital rises and borrowing costs increase. Equity
securities may decline significantly in price over short or extended periods of
time, and such declines may occur in the equity market as a whole, or they may
occur in only a particular country, company, industry or sector of the market.
ETF RISK. The shares of an ETF trade like common stock and represent an interest
in a portfolio of securities. The risks of owning an ETF generally reflect the
risks of owning the underlying securities, although lack of liquidity in an ETF
could result in it being more volatile and ETFs have management fees that
increase their costs. Shares of an ETF trade on an exchange at market prices
rather than net asset value, which may cause the shares to trade at a price
greater than net asset value (premium) or less than net asset value (discount).
In times of market stress, decisions by market makers to reduce or step away
from their role of providing a market for an ETF's shares, or decisions by an
ETF's authorized participants that they are unable or unwilling to proceed with
creation and/or redemption orders of an ETF's shares, could result in shares of
the ETF trading at a discount to net asset value and in greater than normal
intraday bid-ask spreads.
FIXED INCOME SECURITIES RISK. To the extent a fund invests in fixed income
securities, the fund will be subject to credit risk, income risk, interest rate
risk, liquidity risk and prepayment risk. Income risk is the risk that income
from a fund's fixed income investments could decline during periods of falling
interest rates. Interest rate risk is the risk that the value of a fund's fixed
income securities will decline because of rising interest rates. Liquidity risk
is the risk that a security cannot be purchased or sold at the time desired, or
cannot be purchased or sold without adversely affecting the price. Prepayment
risk is the risk that the securities will be redeemed or prepaid by the issuer,
resulting in lower interest payments received by the fund. In addition to these
risks, high yield securities, or "junk" bonds, are subject to greater market
fluctuations and risk of loss than securities with higher ratings, and the
market for high yield securities is generally smaller and less liquid than that
for investment grade securities.
INDEX OR MODEL CONSTITUENT RISK. Certain funds may be a constituent of one or
more indices or ETF models. As a result, such a fund may be included in one or
more index-tracking exchange-traded funds or mutual funds. Being a component
security of such a vehicle could greatly affect the trading activity involving a
fund, the size of the fund and the market volatility of the fund. Inclusion in
an index could increase demand for the fund and removal from an index could
result in outsized selling activity in a relatively short period of time. As a
result, a fund's net asset value could be negatively impacted and the fund's
market price may be significantly below its net asset value during certain
periods. In addition, index rebalances may potentially result in increased
trading activity in a fund's shares.
INDEX PROVIDER RISK. To the extent a fund seeks to track an index, it is subject
to Index Provider Risk. There is no assurance that the Index Provider will
compile the Index accurately, or that the Index will be determined, maintained,
constructed, reconstituted, rebalanced, composed, calculated or disseminated
accurately. To correct any such error, the Index Provider may carry out an
unscheduled rebalance or other modification of the Index constituents or
weightings, which may increase the fund's costs. The Index Provider does not
provide any representation or warranty in relation to the quality, accuracy or
completeness of data in the Index, and it does not guarantee that the Index will
be calculated in accordance with its stated methodology. Losses or costs
associated with any Index Provider errors generally will be borne by the fund
and its shareholders.
INVESTMENT COMPANIES RISK. To the extent a fund invests in the securities of
other investment vehicles, the fund will incur additional fees and expenses that
would not be present in a direct investment in those investment vehicles.
Furthermore, the fund's investment performance and risks are directly related to
the investment performance and risks of the investment vehicles in which the
fund invests.
LIBOR RISK. To the extent a fund invests in floating or variable rate
obligations that use the London Interbank Offered Rate ("LIBOR") as a reference
interest rate, it is subject to LIBOR Risk. The United Kingdom's Financial
Conduct Authority, which regulates LIBOR, has ceased making LIBOR available as a
reference rate over a phase-out period that began December 31, 2021. There is no
assurance that any alternative reference rate, including the Secured Overnight
Financing Rate ("SOFR") will be similar to or produce the same value or economic
equivalence as LIBOR or that instruments using an alternative rate will have the
same volume or liquidity. The unavailability or replacement of LIBOR may affect
the value, liquidity or return on certain fund investments and may result in
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.
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FIRST TRUST EXCHANGE-TRADED FUND VIII
AUGUST 31, 2022 (UNAUDITED)
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 the 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 the
Fund's shares and result in increased market volatility. During any such events,
the Fund's shares may trade at increased premiums or discounts to their net
asset value and the bid/ask spread on the Fund's shares may widen.
NON-U.S. SECURITIES RISK. To the extent a fund invests in non-U.S. securities,
it is subject to additional risks not associated with securities of domestic
issuers. Non-U.S. securities are subject to higher volatility than securities of
domestic issuers due to: possible adverse political, social or economic
developments; restrictions on foreign investment or exchange of securities;
capital controls; lack of liquidity; currency exchange rates; excessive
taxation; government seizure of assets; the imposition of sanctions by foreign
governments; different legal or accounting standards; and less government
supervision and regulation of exchanges in foreign countries. Investments in
non-U.S. securities may involve higher costs than investments in U.S.
securities, including higher transaction and custody costs, as well as
additional taxes imposed by non-U.S. governments. These risks may be heightened
for securities of companies located, or with significant operations, in emerging
market countries.
OPERATIONAL RISK. Each fund is subject to risks arising from various operational
factors, including, but not limited to, human error, processing and
communication errors, errors of a fund's service providers, counterparties or
other third-parties, failed or inadequate processes and technology or systems
failures. Each fund relies on third-parties for a range of services, including
custody. Any delay or failure relating to engaging or maintaining such service
providers may affect a fund's ability to meet its investment objective. Although
the funds and the funds' investment advisor seek to reduce these operational
risks through controls and procedures, there is no way to completely protect
against such risks.
PASSIVE INVESTMENT RISK. To the extent a fund seeks to track an index, the fund
will invest in the securities included in, or representative of, the index
regardless of their investment merit. A fund generally will not attempt to take
defensive positions in declining markets.
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
DISCLAIMER
The funds are not sponsored, endorsed, sold or promoted by Invesco QQQ
Trust(SM), Series 1, Invesco, or Nasdaq, Inc., (together with their affiliates
hereinafter referred to as the "Corporations"). The Corporations have not passed
on the legality or suitability of, or the accuracy or adequacy of, descriptions
and disclosures relating to the funds or the FLEX Options. The Corporations make
no representations or warranties, express or implied, regarding the advisability
of investing in the funds or the FLEX Options or results to be obtained by the
funds or the FLEX Options, shareholders or any other person or entity from use
of the Invesco QQQ Trust(SM). The Corporations have no liability in connection
with the management, administration, marketing or trading of the funds or the
FLEX Options.
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FIRST TRUST EXCHANGE-TRADED FUND VIII
AUGUST 31, 2022 (UNAUDITED)
MSCI EAFE ETF, BFA, or MSCI Inc., (together with their affiliates hereinafter
referred to as the "Corporations") have not passed on the legality or
suitability of, or the accuracy or adequacy of, descriptions and disclosures
relating to funds or the FLEX Options. The Corporations make no representations
or warranties, express or implied, regarding the advisability of investing in
the funds or the FLEX Options or results to be obtained by the funds or the FLEX
Options, shareholders or any other person or entity from use of iShares MSCI
EAFE ETF. The Corporations have no liability in connection with the management,
administration, marketing or trading of the funds or the FLEX Options.
The funds are not sponsored, endorsed, sold or promoted by SPDR(R) S&P 500(R)
ETF Trust, PDR, or Standard & Poor's(R) (together with their affiliates
hereinafter referred to as the "Corporations"). The Corporations have not passed
on the legality or suitability of, or the accuracy or adequacy of, descriptions
and disclosures relating to the funds or the FLEX Options. The Corporations make
no representations or warranties, express or implied, regarding the advisability
of investing in the funds or the FLEX Options or results to be obtained by the
funds or the FLEX Options, shareholders or any other person or entity from use
of the SPDR(R) S&P 500(R) ETF Trust. The Corporations have no liability in
connection with the management, administration, marketing or trading of the
funds or the FLEX Options.
ADVISORY AND SUB-ADVISORY AGREEMENTS
BOARD CONSIDERATIONS REGARDING CONTINUATION OF INVESTMENT MANAGEMENT AGREEMENT
AND INVESTMENT SUB-ADVISORY AGREEMENT FOR
FT CBOE VEST NASDAQ-100(R) BUFFER ETF - MARCH
FT CBOE VEST INTERNATIONAL EQUITY BUFFER ETF - MARCH FT
CBOE VEST NASDAQ-100(R) BUFFER ETF - JUNE
FT CBOE VEST INTERNATIONAL EQUITY BUFFER ETF - JUNE FT
CBOE VEST U.S. EQUITY ENHANCE & MODERATE BUFFER ETF - JUNE
FT CBOE VEST NASDAQ-100(R) BUFFER ETF - DECEMBER
FT CBOE VEST INTERNATIONAL EQUITY BUFFER ETF - DECEMBER
The Board of Trustees of First Trust Exchange-Traded Fund VIII (the "Trust"),
including the Independent Trustees, unanimously approved the continuation of the
Investment Management Agreement (the "Advisory Agreement") with First Trust
Advisors L.P. (the "Advisor") and the Investment Sub-Advisory Agreement (the
"Sub-Advisory Agreement" and together with the Advisory Agreement, the
"Agreements") among the Trust, the Advisor and Cboe Vest Financial LLC (the
"Sub-Advisor") on behalf of the following seven series of the Trust (each a
"Fund" and collectively, the "Funds"):
FT Cboe Vest Nasdaq-100(R) Buffer ETF - March (QMAR)
FT Cboe Vest International Equity Buffer ETF - March (YMAR)
FT Cboe Vest Nasdaq-100(R) Buffer ETF - June (QJUN)
FT Cboe Vest International Equity Buffer ETF - June (YJUN)
FT Cboe Vest U.S. Equity Enhance & Moderate Buffer ETF - June (XJUN)
FT Cboe Vest Nasdaq-100(R) Buffer ETF - December (QDEC)
FT Cboe Vest International Equity Buffer ETF - December (YDEC)
The Board approved the continuation of the Agreements for each Fund for a
one-year period ending June 30, 2023 at a meeting held on June 12-13, 2022. The
Board determined for each Fund that the continuation of the Agreements 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 for each Fund, 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 18, 2022 and June 12-13, 2022, the
Board, including the Independent Trustees, reviewed materials provided by the
Advisor and the Sub-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 and the
Sub-Advisor to each Fund (including the relevant personnel responsible for these
services and their experience); the unitary fee rate payable by each 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 sub-advisory fee rate
as compared to fees charged to other clients of the Sub-Advisor; the expense
ratio of each Fund as compared to expense ratios of the funds in the Fund's
Expense Group and Expense Universe; performance information for each Fund,
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FIRST TRUST EXCHANGE-TRADED FUND VIII
AUGUST 31, 2022 (UNAUDITED)
including, for each of QDEC and YDEC, comparisons of each 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 each Fund and the potential for the Advisor and the
Sub-Advisor to realize economies of scale, if any; profitability and other
financial data for the Advisor; financial data for the Sub-Advisor; any indirect
benefits to the Advisor and its affiliates, First Trust Portfolios L.P. ("FTP")
and First Trust Capital Partners, LLC ("FTCP"), and the Sub-Advisor; and
information on the Advisor's and the Sub-Advisor's compliance programs. The
Board reviewed initial materials with the Advisor at the meeting held on April
18, 2022, prior to which the Independent Trustees and their counsel met
separately to discuss the information provided by the Advisor and the
Sub-Advisor. Following the April meeting, counsel to the Independent Trustees,
on behalf of the Independent Trustees, requested certain clarifications and
supplements to the materials provided, and the information provided in response
to those requests was considered at an executive session of the Independent
Trustees and their counsel held prior to the June 12-13, 2022 meeting, as well
as at the June meeting. The Board applied its business judgment to determine
whether the arrangements between the Trust and the Advisor and among the Trust,
the Advisor and the Sub-Advisor continue to be reasonable business arrangements
from each Fund's perspective. The Board determined that, given the totality of
the information provided with respect to the Agreements, the Board had received
sufficient information to renew the Agreements. The Board considered that
shareholders chose to invest or remain invested in a Fund knowing that the
Advisor and the Sub-Advisor manage the Fund and knowing the Fund's unitary fee.
In reviewing the Agreements for each Fund, the Board considered the nature,
extent and quality of the services provided by the Advisor and the Sub-Advisor
under the Agreements. With respect to the Advisory Agreement, the Board
considered that the Advisor is responsible for the overall management and
administration of the Trust and each Fund and reviewed all of the services
provided by the Advisor to the Funds, including the oversight of the
Sub-Advisor, as well as the background and experience of the persons responsible
for such services. The Board noted that the Advisor oversees the Sub-Advisor's
day-to-day management of each Fund's investments, 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, the
Sub-Advisor's and each Fund's compliance with the 1940 Act, as well as each
Fund's compliance with its investment objective, 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 Funds. Finally, as part of
the Board's consideration of the Advisor's services, the Advisor, in its written
materials and at the April 18, 2022 meeting, described to the Board the scope of
its ongoing investment in additional personnel and infrastructure to maintain
and improve the quality of services provided to the Funds and the other funds in
the First Trust Fund Complex. With respect to the Sub-Advisory Agreement, the
Board noted that each Fund is an actively-managed ETF and the Sub-Advisor
actively manages the Fund's investments. In addition to the written materials
provided by the Sub-Advisor, at the June 12-13, 2022 meeting, the Board also
received a presentation from representatives of the Sub-Advisor, who discussed
the services that the Sub-Advisor provides to each Fund, including the
Sub-Advisor's day-to-day management of the Funds' investments. In considering
the Sub-Advisor's management of the Funds, the Board noted the background and
experience of the Sub-Advisor's portfolio management team. 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 each Fund
by the Advisor and the Sub-Advisor under the Agreements have been and are
expected to remain satisfactory and that the Sub-Advisor, under the oversight of
the Advisor, has managed each Fund consistent with its investment objective,
policies and restrictions.
The Board considered the unitary fee rate payable by each Fund under the
Advisory Agreement for the services provided. The Board noted that the
sub-advisory fee for each Fund is paid by the Advisor from the Fund's unitary
fee. The Board considered that as part of the unitary fee the Advisor is
responsible for each Fund's expenses, including the cost of sub-advisory,
transfer agency, custody, fund administration, legal, audit and other services
and license fees, if any, but excluding the fee payment under the Advisory
Agreement and interest, taxes, 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 Groups, as well as advisory and unitary
fee rates charged by the Advisor and the Sub-Advisor to other fund (including
ETFs) and non-fund clients, as applicable. Because each Fund pays a unitary fee,
the Board determined that expense ratios were the most relevant comparative data
point. Based on the information provided, the Board noted that the unitary fee
rate for each Fund was above the median total (net) expense ratio of the peer
funds in its Expense Group. With respect to the Expense Groups, the Board, at
the April 18, 2022 meeting, discussed with Broadridge its methodology for
assembling peer groups and discussed with the Advisor limitations in creating
peer groups for actively-managed ETFs and different business models that may
affect the pricing of services among ETF sponsors. The Board also noted that not
all peer funds employ an advisor/sub-advisor management structure. 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 Funds and other non-ETF clients that limited
their comparability. In considering the unitary fee rates 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 each Fund and the other funds in the First
Trust Fund Complex.
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FIRST TRUST EXCHANGE-TRADED FUND VIII
AUGUST 31, 2022 (UNAUDITED)
The Board considered performance information for each Fund. The Board noted the
process it has established for monitoring each Fund's performance and portfolio
risk on an ongoing basis, which includes quarterly performance reporting from
the Advisor and the Sub-Advisor for the Funds. The Board determined that this
process continues to be effective for reviewing each Fund's performance. The
Board received and reviewed information comparing the performance of each of
QDEC and YDEC for the one-year period ended December 31, 2021 to the performance
of the funds in the Fund's respective Performance Universe and a benchmark
index. Because each of QMAR, YMAR, QJUN, YJUN and XJUN commenced operations in
2021 and therefore has a limited performance history, comparative performance
information for the Fund was not reviewed. The Board noted that QMAR, QJUN and
QDEC are target outcome ETFs that seek to provide investors with returns (before
fees and expenses) over a defined period of time (typically one year) that match
the price return of the Invesco QQQ Trust(SM), Series 1 ("QQQ"), up to a
predetermined cap, while providing a buffer against certain losses on the price
return of QQQ. The Board noted that YMAR, YJUN and YDEC are target outcome ETFs
that seek to provide investors with returns (before fees and expenses) over a
defined period of time (typically one year) that match the price return of the
iShares MSCI EAFE ETF ("EFA"), up to a predetermined cap, while providing a
buffer against certain losses on the price return of EFA. The Board noted that
XJUN is a target outcome ETF that seeks to provide investors with returns
(before fees and expenses) over a defined period of time (typically one year) of
approximately twice any positive price return of the SPDR(R) S&P 500(R) ETF
Trust ("SPY"), up to a predetermined cap, while providing a buffer against
certain losses on the price return of SPY. The Board considered information
provided by the Sub-Advisor on each of QMAR's, YMAR's, QDEC's and YDEC's
performance during its respective target outcome period that ended between April
1, 2021 and March 31, 2022 and noted that each Fund delivered on its target
outcome objective. The initial target outcome period for each of QJUN, YJUN and
XJUN ended after March 31, 2022.
On the basis of all the information provided on the unitary fee and performance,
as applicable, of each Fund and the ongoing oversight by the Board, the Board
concluded that the unitary fee for each Fund (out of which the Sub-Advisor is
compensated) continues to be reasonable and appropriate in light of the nature,
extent and quality of the services provided by the Advisor and the Sub-Advisor
to each Fund under the Agreements.
The Board considered information and discussed with the Advisor whether there
were any economies of scale in connection with providing advisory services to
the Funds and noted the Advisor's statement that it believes that its expenses
relating to providing advisory services to the Funds will likely increase during
the next twelve months as the Advisor continues to build infrastructure and add
new staff. The Board noted that any reduction in fixed costs associated with the
management of the Funds would benefit the Advisor, but that the unitary fee
structure provides a level of certainty in expenses for the Funds. The Board
considered the revenues and allocated costs (including the allocation
methodology) of the Advisor in serving as investment advisor to each of QDEC and
YDEC for the twelve months ended December 31, 2021 and to each of QMAR, YMAR,
QJUN, YJUN and XJUN for the period from inception through December 31, 2021 and
the estimated profitability level for each Fund calculated by the Advisor based
on such data, as well as complex-wide and product-line profitability data, for
the twelve months ended December 31, 2021. The Board noted the inherent
limitations in the profitability analysis and concluded that, based on the
information provided, the Advisor's profitability level for each Fund was not
unreasonable. In addition, the Board considered indirect benefits described by
the Advisor that may be realized from its relationship with the Funds. 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 Funds, may have had no dealings with the Advisor or FTP. The Board also
noted that FTCP has a controlling ownership interest in the Sub-Advisor's parent
company and considered potential indirect benefits to the Advisor from such
ownership interest. The Board concluded that the character and amount of
potential indirect benefits to the Advisor were not unreasonable.
The Board considered the Sub-Advisor's statement that it believes that the
sub-advisory fee for each Fund is appropriate. The Board noted the Sub-Advisor's
statements that it continues to invest in infrastructure, technology and
personnel, and that it anticipates that its expenses relating to providing
services to the Funds will remain approximately the same for the next twelve
months. The Board did not review the profitability of the Sub-Advisor with
respect to each Fund. The Board noted that the Advisor pays the Sub-Advisor for
each Fund from its unitary fee and its understanding that each Fund's
sub-advisory fee rate was the product of an arm's length negotiation. The Board
concluded that the profitability analysis for the Advisor was more relevant. The
Board considered the potential indirect benefits to the Sub-Advisor from being
associated with the Advisor and the Funds, and noted the Sub-Advisor's
statements that it is the Sub-Advisor's policy currently not to enter into
soft-dollar arrangements for the procurement of research services in connection
with client securities transactions and that, as a result, there are no foreseen
indirect benefits from its relationship with the Funds. The Board also
considered the potential indirect benefits to the Sub-Advisor from FTCP's
controlling ownership interest in the Sub-Advisor's parent company. The Board
concluded that the character and amount of potential indirect benefits to the
Sub-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 Agreements continue to be fair and reasonable and that the continuation
of the Agreements is in the best interests of each Fund. No single factor was
determinative in the Board's analysis.
Page 72
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ADDITIONAL INFORMATION (CONTINUED)
--------------------------------------------------------------------------------
FIRST TRUST EXCHANGE-TRADED FUND VIII
AUGUST 31, 2022 (UNAUDITED)
LIQUIDITY RISK MANAGEMENT PROGRAM
In accordance with Rule 22e-4 under the Investment Company Act of 1940, as
amended (the "1940 Act"), the Funds and each other fund in the First Trust Fund
Complex, other than the closed-end funds, have adopted and implemented a
liquidity risk management program (the "Program") reasonably designed to assess
and manage the funds' liquidity risk, i.e., the risk that a fund could not meet
requests to redeem shares issued by the fund without significant dilution of
remaining investors' interests in the fund. The Board of Trustees of the First
Trust Funds has appointed First Trust Advisors, L.P. (the "Advisor") as the
person designated to administer the Program, and in this capacity the Advisor
performs its duties primarily through the activities and efforts of the First
Trust Liquidity Committee (the "Liquidity Committee").
Pursuant to the Program, the Liquidity Committee classifies the liquidity of
each fund's portfolio investments into one of the four liquidity categories
specified by Rule 22e-4: highly liquid investments, moderately liquid
investments, less liquid investments and illiquid investments. The Liquidity
Committee determines certain of the inputs for this classification process,
including reasonably anticipated trade sizes and significant investor dilution
thresholds. The Liquidity Committee also determines and periodically reviews a
highly liquid investment minimum for certain funds, monitors the funds' holdings
of assets classified as illiquid investments to seek to ensure they do not
exceed 15% of a fund's net assets and establishes policies and procedures
regarding redemptions in kind.
At the April 18, 2022 meeting of the Board of Trustees, as required by Rule
22e-4 and the Program, the Advisor provided the Board with a written report
prepared by the Advisor that addressed the operation of the Program during the
period from March 16, 2021 through the Liquidity Committee's annual meeting held
on March 17, 2022 and assessed the Program's adequacy and effectiveness of
implementation during this period, including the operation of the highly liquid
investment minimum for each fund that is required under the Program to have one,
and any material changes to the Program. Note that because the Funds primarily
hold assets that are highly liquid investments, the Funds have not adopted any
highly liquid investment minimums.
As stated in the written report, during the review period, no fund breached the
15% limitation on illiquid investments, no fund with a highly liquid investment
minimum breached that minimum and no fund filed a Form N-LIQUID. The Advisor
concluded that each fund's investment strategy is appropriate for an open-end
fund; that the Program operated effectively in all material respects during the
review period; and that the Program is reasonably designed to assess and manage
the liquidity risk of each fund and to maintain compliance with Rule 22e-4.
Page 73
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BOARD OF TRUSTEES AND OFFICERS
--------------------------------------------------------------------------------
FIRST TRUST EXCHANGE-TRADED FUND VIII
AUGUST 31, 2022 (UNAUDITED)
The following tables identify the Trustees and Officers of the Trust. Unless
otherwise indicated, the address of all persons is 120 East Liberty Drive, Suite
400, Wheaton, IL 60187.
The Trust's statement of additional information includes additional information
about the Trustees and is available, without charge, upon request, by calling
(800) 988-5891.
NUMBER OF OTHER
PORTFOLIOS IN TRUSTEESHIPS OR
TERM OF OFFICE THE FIRST TRUST DIRECTORSHIPS
NAME, AND YEAR FIRST FUND COMPLEX HELD BY TRUSTEE
YEAR OF BIRTH AND ELECTED OR PRINCIPAL OCCUPATIONS OVERSEEN BY DURING PAST
POSITION WITH THE TRUST APPOINTED DURING PAST 5 YEARS TRUSTEE 5 YEARS
------------------------------------------------------------------------------------------------------------------------------------
INDEPENDENT TRUSTEES
------------------------------------------------------------------------------------------------------------------------------------
Richard E. Erickson, Trustee o Indefinite Term Physician, Edward-Elmhurst Medical 220 None
(1951) Group; Physician and Officer,
o Since Inception Wheaton Orthopedics (1990 to 2021)
Thomas R. Kadlec, Trustee o Indefinite Term Retired; President, ADM Investors 220 Director, National Futures
(1957) Services, Inc. (Futures Commission Association and ADMIS
o Since Inception Merchant) (2010 to July 2022) Singapore Ltd.; Formerly,
Director of ADM Investor
Services, Inc., ADM
Investor Services
International, ADMISHong
Kong Ltd., and
Futures Industry
Association
Denise M. Keefe, Trustee o Indefinite Term Executive Vice President, Advocate 220 Director and Board Chair
(1964) Aurora Health and President, of Advocate Home Health
o Since 2021 Advocate Aurora Continuing Health Services, Advocate Home
Division (Integrated Healthcare Care Products and
System) Advocate Hospice;
Director and Board Chair
of Aurora At Home (since
2018); Director of
Advocate Physician
Partners Accountable Care
Organization; Director and
Board Chair of RML Long
Term Acute Care
Hospitals; and Director of
Senior Helpers (since
2021)
Robert F. Keith, Trustee o Indefinite Term President, Hibs Enterprises 220 Formerly, Director of
(1956) (Financial and Management Trust Company of Illinois
o Since Inception Consulting)
Niel B. Nielson, Trustee o Indefinite Term Senior Advisor (2018 to Present), 220 None
(1954) Managing Director and Chief
o Since Inception Operating Officer (2015 to 2018),
Pelita Harapan Educational
Foundation (Educational
Products and Services)
------------------------------------------------------------------------------------------------------------------------------------
INTERESTED TRUSTEE
------------------------------------------------------------------------------------------------------------------------------------
James A. Bowen(1), Trustee, o Indefinite Term Chief Executive Officer, First 220 None
Chairman of the Board Trust Advisors L.P. and First Trust
(1955) o Since Inception Portfolios L.P., Chairman of the
Board of Directors, BondWave LLC
(Software Development Company) and
Stonebridge Advisors LLC
(Investment Advisor)
-----------------------------
(1) Mr. Bowen is deemed an "interested person" of the Trust due to his
position as Chief Executive Officer of First Trust Advisors L.P.,
investment advisor of the Trust.
Page 74
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BOARD OF TRUSTEES AND OFFICERS (CONTINUED)
--------------------------------------------------------------------------------
FIRST TRUST EXCHANGE-TRADED FUND VIII
AUGUST 31, 2022 (UNAUDITED)
POSITION AND TERM OF OFFICE
NAME AND OFFICES AND LENGTH OF PRINCIPAL OCCUPATIONS
YEAR OF BIRTH WITH TRUST SERVICE DURING PAST 5 YEARS
------------------------------------------------------------------------------------------------------------------------------------
OFFICERS(2)
------------------------------------------------------------------------------------------------------------------------------------
James M. Dykas President and Chief o Indefinite Term Managing Director and Chief Financial Officer, First
(1966) Executive Officer Trust Advisors L.P. and First Trust Portfolios L.P.;
o Since Inception Chief Financial Officer, BondWave LLC (Software
Development Company) and Stonebridge Advisors
LLC (Investment Advisor)
Donald P. Swade Treasurer, Chief Financial o Indefinite Term Senior Vice President, First Trust Advisors L.P. and
(1972) Officer and Chief First Trust Portfolios L.P.
Accounting Officer o Since Inception
W. Scott Jardine Secretary and Chief Legal o Indefinite Term General Counsel, First Trust Advisors L.P. and First
(1960) Officer Trust Portfolios L.P.; Secretary and General Counsel,
o Since Inception BondWave LLC; Secretary, Stonebridge Advisors LLC
Daniel J. Lindquist Vice President o Indefinite Term Managing Director, First Trust Advisors L.P. and First
(1970) Trust Portfolios L.P.
o Since Inception
Kristi A. Maher Chief Compliance Officer o Indefinite Term Deputy General Counsel, First Trust Advisors L.P. and
(1966) and Assistant Secretary First Trust Portfolios L.P.
o Since Inception
Roger F. Testin Vice President o Indefinite Term Senior Vice President, First Trust Advisors L.P. and
(1966) First Trust Portfolios L.P.
o Since Inception
Stan Ueland Vice President o Indefinite Term Senior Vice President, First Trust Advisors L.P. and
(1970) First Trust Portfolios L.P.
o Since Inception
-----------------------------
(2) The term "officer" means the president, vice president, secretary,
treasurer, controller or any other officer who performs a policy making
function.
Page 75
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PRIVACY POLICY
--------------------------------------------------------------------------------
FIRST TRUST EXCHANGE-TRADED FUND VIII
AUGUST 31, 2022 (UNAUDITED)
PRIVACY POLICY
First Trust values our relationship with you and considers your privacy an
important priority in maintaining that relationship. We are committed to
protecting the security and confidentiality of your personal information.
SOURCES OF INFORMATION
We collect nonpublic personal information about you from the following sources:
o Information we receive from you and your broker-dealer, investment
professional or financial representative through interviews,
applications, agreements or other forms;
o Information about your transactions with us, our affiliates or
others;
o Information we receive from your inquiries by mail, e-mail or
telephone; and
o Information we collect on our website through the use of "cookies."
For example, we may identify the pages on our website that your
browser requests or visits.
INFORMATION COLLECTED
The type of data we collect may include your name, address, social security
number, age, financial status, assets, income, tax information, retirement and
estate plan information, transaction history, account balance, payment history,
investment objectives, marital status, family relationships and other personal
information.
DISCLOSURE OF INFORMATION
We do not disclose any nonpublic personal information about our customers or
former customers to anyone, except as permitted by law. In addition to using
this information to verify your identity (as required under law), the permitted
uses may also include the disclosure of such information to unaffiliated
companies for the following reasons:
o In order to provide you with products and services and to effect
transactions that you request or authorize, we may disclose your
personal information as described above to unaffiliated financial
service providers and other companies that perform administrative or
other services on our behalf, such as transfer agents, custodians
and trustees, or that assist us in the distribution of investor
materials such as trustees, banks, financial representatives, proxy
services, solicitors and printers.
o We may release information we have about you if you direct us to do
so, if we are compelled by law to do so, or in other legally limited
circumstances (for example to protect your account from fraud).
In addition, in order to alert you to our other financial products and services,
we may share your personal information within First Trust.
USE OF WEBSITE ANALYTICS
We currently use third party analytics tools, Google Analytics and AddThis, to
gather information for purposes of improving First Trust's website and marketing
our products and services to you. These tools employ cookies, which are small
pieces of text stored in a file by your web browser and sent to websites that
you visit, to collect information, track website usage and viewing trends such
as the number of hits, pages visited, videos and PDFs viewed and the length of
user sessions in order to evaluate website performance and enhance navigation of
the website. We may also collect other anonymous information, which is generally
limited to technical and web navigation information such as the IP address of
your device, internet browser type and operating system for purposes of
analyzing the data to make First Trust's website better and more useful to our
users. The information collected does not include any personal identifiable
information such as your name, address, phone number or email address unless you
provide that information through the website for us to contact you in order to
answer your questions or respond to your requests. To find out how to opt-out of
these services click on: Google Analytics and AddThis.
CONFIDENTIALITY AND SECURITY
With regard to our internal security procedures, First Trust restricts access to
your nonpublic personal information to those First Trust employees who need to
know that information to provide products or services to you. We maintain
physical, electronic and procedural safeguards to protect your nonpublic
personal information.
POLICY UPDATES AND INQUIRIES
As required by federal law, we will notify you of our privacy policy annually.
We reserve the right to modify this policy at any time, however, if we do change
it, we will tell you promptly. For questions about our policy, or for additional
copies of this notice, please go to www.ftportfolios.com, or contact us at
1-800-621-1675 (First Trust Portfolios) or 1-800-222-6822 (First Trust
Advisors).
March 2022
Page 76
FIRST TRUST
First Trust Exchange-Traded Fund VIII
INVESTMENT ADVISOR
First Trust Advisors L.P.
120 East Liberty Drive, Suite 400
Wheaton, IL 60187
INVESTMENT SUB-ADVISOR
Cboe Vest(SM) Financial LLC
8350 Broad Street, Suite 240
McLean, VA 22102
ADMINISTRATOR, CUSTODIAN,
FUND ACCOUNTANT &
TRANSFER AGENT
The Bank of New York Mellon
240 Greenwich Street
New York, NY 10286
INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
Deloitte & Touche LLP
111 S. Wacker Drive
Chicago, IL 60606
LEGAL COUNSEL
Chapman and Cutler LLP
320 South Canal Street
Chicago, IL 60606
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