Caution Regarding Forward-Looking Statements

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

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

Performance and Risk Disclosure

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

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

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

How to Read This Report

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

By reading the market overview by Robert F. Carey, Chief Market Strategist of the Advisor, you may obtain an understanding of how the market environment affected the performance of each Fund. The statistical information that follows may help you understand each Fund’s performance compared to that of relevant market benchmarks.

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

Page 1

Shareholder Letter

First Trust Exchange-Traded Fund
Annual Letter from the Chairman and CEO
December 31, 2023

Dear Shareholders,

First Trust is pleased to provide you with the annual report for certain series of the First Trust Exchange-Traded Fund (the “Funds”), which contains detailed information about the Funds for the twelve months ended December 31, 2023. Please note that the First Trust Bloomberg Inflation Sensitive Equity ETF was incepted on March 13, 2023, so information contained in this letter and the report prior to that Fund’s inception date will not apply to that Fund.

As 2023 comes to a close, it strikes me that many of the critical themes investors have been navigating over the past year remain unresolved. High inflation, the direction of central bank policy, and the risk of an economic recession in the U.S. are just a few examples, but another is war. The war between Russia and Ukraine rages on and will enter its third full year in just a few short months. In addition, geopolitical tensions across the Middle East are rising. Israel is at war with Hamas, and the Houthi rebels have been attacking global shipping lanes in the Red Sea, threatening the global supply chain, and prompting a military response from the U.S. and Britain.

Despite these headwinds, the broader U.S. equity and fixed income markets surged during the year. In the U.S., the S&P 500® Index rose by 26.29% on a total return basis between December 31, 2022, and December 31, 2023, according to data from Bloomberg. The Bloomberg U.S. Aggregate Bond Index also enjoyed a positive total return, rising by 5.53% over the same period. These returns can be explained, in part, by expectations that the Federal Reserve (the “Fed”) could cut interest rates in 2024. In its December 2023 statement, the Fed indicated that it expects to reduce the Federal Funds target rate by as much as 75 basis points (“bps”) over three cuts throughout 2024. It appears investors expect even steeper cuts than the Fed announced. As of December 31, 2023, the Fed Funds Futures market was pricing in nearly six rate cuts totaling more than 150 bps by the end of 2024.

In some regards, the past year serves as a stark warning against taking an overly myopic view when it comes to investing. Data from the Investment Company Institute revealed that total net assets in money market accounts stood at a record $5.9 trillion on December 6, 2023, up from $4.8 trillion at the start of the year. While the figure may be sizable, it is not surprising, in my view, especially considering the impediments to growth mentioned above. While money market assets likely earned higher interest payments than they would have before the Fed began interest rate hikes, they certainly underperformed the S&P 500® Index’s staggering total return for the year.

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

Sincerely,

James A. Bowen
Chairman of the Board of Trustees
Chief Executive Officer of First Trust Advisors L.P.

Page 2

Market Overview

First Trust Exchange-Traded Fund
Annual Report
December 31, 2023

Robert F. Carey, CFA
Senior Vice President and Chief Market Strategist
First Trust Advisors L.P.

Mr. Carey is responsible for the overall management of research and analysis of the First Trust product line. Mr. Carey has more than 30 years of experience as an Equity and Fixed-Income Analyst and is a recipient of the Chartered Financial Analyst (“CFA”) designation. He is a graduate of the University of Illinois at Champaign-Urbana with a B.S. in Physics. He is also a member of the Investment Analysts Society of Chicago and the CFA Institute. Mr. Carey has appeared as a guest on such programs as Bloomberg TV, CNBC, and WBBM Radio, and has been quoted by several publications, including The Wall Street Journal, The Wall Street Reporter, Bloomberg News Service and Registered Rep.

State of the Economy/Investing

The direction of central bank policy, inflation, and the threat that an economic recession might befall the U.S. economy dominated global headlines throughout much of 2023. In the U.S., the Federal Reserve (the “Fed”) increased the Federal Funds target rate (upper bound) from 4.50% to 5.50% over the first three quarters of the year before pausing in September. As a result, inflation, as measured by the trailing 12-month change in the rate of the Consumer Price Index, moderated from 6.5% on December 31, 2022 to 3.4% as of December 31, 2023. While the correlation between higher interest rates and declining inflation is welcome news, the metric remains elevated well-above the Fed’s stated goal of 2.0%, fueling continued debate regarding the Fed’s ability to orchestrate a “soft landing” in the U.S. economy.

Higher interest rates appear to be hindering global growth. In their October 2023 “World Economic Outlook”, the International Monetary Fund (“IMF”) projected that real gross domestic product (“GDP”) would decline from 3.5%, where it stood in 2022, to 2.9% in 2024. For comparison, global growth averaged 3.8% from 2000-2019. On a percentage basis, advanced economies are expected to fare worse than emerging markets and developing economies. The IMF is projecting a 1.4% growth rate for advanced economies in 2024, down from 2.6% in 2022. For comparison, GDP among emerging markets and developing economies is expected to fall to 4.0% in 2024, down from 4.1% in 2022.

U.S. Stocks and Bonds

All three of the major U.S. stock indices posted substantial gains in 2023. The S&P 500® Index (the “Index”), the S&P MidCap 400® Index and the S&P SmallCap 600® Index posted total returns of 26.29%, 16.44%, and 16.05%, respectively, according to Bloomberg. Nine of the eleven major sectors that comprise the Index posted positive total returns for the year. The Index’s top performing sector was the Information Technology sector, up 57.84%, while the worst performing sector was the Utilities sector, which fell by 7.08% on a total return basis during the year. After a forecasted contraction in 2023, earnings estimates are expected to recover in 2024. Bloomberg’s consensus year-over-year earnings growth rate estimates for the Index for 2023 and 2024 stood at -3.11% and 10.73%, respectively, as of January 12, 2024.

The yield on the benchmark 10-Year Treasury Note (“T-Note”) closed trading on December 29, 2023, at 3.88%, unchanged from where it stood on December 30, 2022, according to data from Bloomberg. The 3.88% yield stood 157 basis points (“bps”) above its 2.31% average for the 10-year period ended December 29, 2023. Despite ending the year unchanged, the yield on the 10-Year T-Note was quite volatile in 2023, falling to an intra-year low of 3.31% on April 6, peaking at 4.99% on October 19, then retreating again to 3.88% at year-end. Most bond investors likely know that bond prices and yields typically move in opposite directions. Between October 19, 2023 (the peak on the yield of the 10-Year T-Note), and December 29, 2023, the total return of the Bloomberg U.S. Aggregate Bond Index stood at 9.28%, reflecting a decline of 111 bps in the yield of the 10-Year T-Note over the period. All the major U.S. bond indices we track posted positive total returns in 2023. The top performing major debt group was corporate high yield bonds. The Bloomberg U.S. Corporate High Yield Index posted a total return of 13.44% over the period. The worst performing debt group that we track was intermediate U.S. Treasuries. The Bloomberg U.S. Intermediate Treasury Index posted a total return of 4.28% over the period.

Foreign Stocks and Bonds

The U.S. Dollar depreciated by 2.11% against a basket of major currencies in 2023, as measured by the U.S. Dollar Index (“DXY”), according to Bloomberg. The DXY closed 2023 at a reading of 101.33, significantly above its 20-year average of 88.91. The weaker U.S. Dollar likely had a positive influence on the returns of unhedged foreign securities held by U.S. investors.

The Bloomberg EM Hard Currency Aggregate Index of emerging markets debt posted a total return of 9.63% (USD), while the Bloomberg Global Aggregate Index of higher quality debt rose 5.72% (USD). With respect to equities, the MSCI Emerging Markets Index of stocks posted a total return of 9.83% (USD), while the MSCI World ex USA Index rose by 17.94% (USD) on a total return basis, according to Bloomberg.

Page 3

Fund Performance Overview (Unaudited)

First Trust Dow Jones Select MicroCap Index Fund (FDM)

The First Trust Dow Jones Select MicroCap Index Fund (the “Fund”) seeks investment results that correspond generally to the price and yield (before the Fund’s fees and expenses) of an equity index called the Dow Jones Select MicroCap IndexSM (the “Index”). The Fund will normally invest at least 90% of its net assets (including investment borrowings) in the securities that comprise the Index. The Index is developed, maintained and sponsored by S&P Dow Jones Indices LLC (the “Index Provider”). According to the Index Provider, the Index is designed to measure the performance of micro-cap stocks issued by U.S. companies that are comparatively liquid and have strong fundamentals relative to the micro-cap segment as a whole. The Index is rebalanced quarterly and reconstituted annually and the Fund will make corresponding changes to its portfolio shortly after the Index changes are made public. The Fund’s shares are listed for trading on the NYSE Arca, Inc. (“NYSE Arca”). The first day of secondary market trading in shares of the Fund was September 30, 2005.

Performance
		Average Annual Total Returns			Cumulative Total Returns
	1 Year Ended 12/31/23	5 Years Ended 12/31/23	10 Years Ended 12/31/23	Inception (9/27/05) to 12/31/23	5 Years Ended 12/31/23	10 Years Ended 12/31/23	Inception (9/27/05) to 12/31/23
Fund Performance
NAV	13.01%	10.40%	8.11%	7.55%	64.04%	118.07%	277.89%
Market Price	13.21%	10.46%	8.17%	7.56%	64.43%	119.30%	278.17%
Index Performance
Dow Jones Select MicroCap IndexSM	13.72%	11.26%	8.84%	8.29%	70.49%	133.18%	328.14%
Russell 2000® Index	16.93%	9.97%	7.16%	7.80%	60.85%	99.59%	294.14%
Russell 3000® Index	25.96%	15.16%	11.48%	9.79%	102.54%	196.41%	450.50%

(See Notes to Fund Performance Overview on page 24.)

Performance Review

The Fund generated a net asset value (“NAV”) return of 13.01% during the 12-month period covered by this report. During the same period, the Russell 2000® Index (the “Benchmark”) generated a return of 16.93%. During the period covered by this report, the greatest allocation in the Fund went to securities in the Financials sector. This sector’s average weight in the Fund was 28.3% and contributed 0.8% to the Fund’s overall return. The greatest contribution to the Fund’s return was 5.7% from the allocation to the Consumer Discretionary sector and the greatest source of drag for the Fund was the -1.3% contribution to the Fund’s return which came from investments in the Health Care sector.

Dow Jones Select MicroCap IndexSM (“Index”) is a product of S&P Dow Jones Indices LLC or its affiliates (“SPDJI”) and has been licensed for use by First Trust. S&P® is a registered trademark of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by First Trust. The Fund is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P or their respective affiliates and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the Index.

Page 4

Fund Performance Overview (Unaudited) (Continued)

First Trust Dow Jones Select MicroCap Index Fund (FDM) (Continued)

Sector Allocation	% of Total Long-Term Investments
Financials	28.3%
Industrials	20.3
Energy	11.3
Consumer Discretionary	10.3
Information Technology	9.0
Materials	8.2
Health Care	3.8
Communication Services	3.0
Utilities	2.4
Real Estate	2.1
Consumer Staples	1.3
Total	100.0%

Top Ten Holdings	% of Total Long-Term Investments
Crescent Energy, Inc., Class A	1.7%
ScanSource, Inc.	1.6
ACM Research, Inc., Class A	1.5
SunCoke Energy, Inc.	1.4
VSE Corp.	1.4
Powell Industries, Inc.	1.3
Barrett Business Services, Inc.	1.2
Viad Corp.	1.2
Ambac Financial Group, Inc.	1.2
Haynes International, Inc.	1.2
Total	13.7%

Performance figures assume reinvestment of

all distributions and do not reflect the

deduction of taxes that a shareholder would

pay on Fund distributions or the redemption

or sale of Fund shares. An index is a statistical

composite that tracks a specified financial

market or sector. Unlike the Fund, the indices

do not actually hold a portfolio of securities

and therefore do not incur the expenses

incurred by the Fund. These expenses

negatively impact the performance of the

Fund. The Fund’s past performance does not

predict future performance.

Frequency Distribution of Discounts and Premiums

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

Page 5

Fund Performance Overview (Unaudited) (Continued)

First Trust Morningstar Dividend Leaders Index Fund (FDL)

The First Trust Morningstar Dividend Leaders Index Fund (the “Fund”) seeks investment results that correspond generally to the price and yield (before the Fund’s fees and expenses) of an equity index called the Morningstar® Dividend Leaders IndexSM (the “Index”). The Fund will normally invest at least 90% of its net assets (including investment borrowings) in the securities that comprise the Index. The Index is developed, maintained and sponsored by Morningstar, Inc. (the “Index Provider”). Effective December 12, 2023, the Index Provider also serves as the calculation agent. According to the Index Provider, the Index is designed to measure the performance of the 100 highest-yielding stocks that have a consistent record of dividend payment and have the ability to sustain their dividend payments. The securities comprising the Morningstar® US Market IndexSM serve as the Fund’s selection universe. The Index is rebalanced quarterly and reconstituted annually and the Fund will make corresponding changes to its portfolio shortly after the Index changes are made public. The Fund’s shares are listed for trading on the NYSE Arca. The first day of secondary market trading in shares of the Fund was March 15, 2006.

Performance
		Average Annual Total Returns			Cumulative Total Returns
	1 Year Ended 12/31/23	5 Years Ended 12/31/23	10 Years Ended 12/31/23	Inception (3/9/06) to 12/31/23	5 Years Ended 12/31/23	10 Years Ended 12/31/23	Inception (3/9/06) to 12/31/23
Fund Performance
NAV	2.90%	10.24%	9.16%	7.45%	62.83%	140.34%	259.94%
Market Price	2.90%	10.25%	9.16%	7.45%	62.90%	140.33%	259.83%
Index Performance
Morningstar® Dividend Leaders IndexSM	3.42%	10.83%	9.72%	7.99%	67.25%	152.86%	293.58%
S&P 500® Index	26.29%	15.69%	12.03%	9.87%	107.21%	211.49%	434.64%
Russell 1000® Value Index	11.46%	10.91%	8.40%	7.45%	67.79%	123.99%	259.66%

(See Notes to Fund Performance Overview on page 24.)

Performance Review

The Fund generated a NAV return of 2.90% during the 12-month period covered by this report. During the same period, the S&P 500® Index (the “Benchmark”) generated a return of 26.29%. The greatest allocations in the Fund were a 20.5% allocation in the Financials sector, which contributed 3.7% to the Fund’s overall return and a 19.1% allocation in the Energy sector, which had a contribution of -0.2% to the Fund’s return. The investments in the Financials sector were the greatest source of return for the Fund during the period covered by this report. The most negative contribution to the Fund’s return came from investments in the Health Care sector, which caused a -2.1% drag in the Fund.

Morningstar® and Morningstar® Dividend Leaders IndexSM are registered trademarks and service marks of Morningstar, Inc. (“Morningstar”) and have been licensed for use by First Trust on behalf of the Fund. The Fund is not sponsored, endorsed, issued, sold or promoted by Morningstar and Morningstar makes no representation regarding the advisability of investing in the Fund.

Page 6

Fund Performance Overview (Unaudited) (Continued)

First Trust Morningstar Dividend Leaders Index Fund (FDL) (Continued)

Sector Allocation	% of Total Long-Term Investments
Financials	24.0%
Energy	16.9
Health Care	15.4
Consumer Staples	12.7
Utilities	9.2
Communication Services	8.3
Information Technology	4.7
Consumer Discretionary	3.4
Industrials	2.9
Materials	2.5
Total	100.0%

Top Ten Holdings	% of Total Long-Term Investments
Chevron Corp.	8.5%
AbbVie, Inc.	8.4
Verizon Communications, Inc.	8.3
Pfizer, Inc.	7.0
Philip Morris International, Inc.	6.3
Altria Group, Inc.	5.1
International Business Machines Corp.	4.7
Citigroup, Inc.	3.3
3M Co.	2.7
U.S. Bancorp	2.5
Total	56.8%

Performance figures assume reinvestment of

all distributions and do not reflect the

deduction of taxes that a shareholder would

pay on Fund distributions or the redemption

or sale of Fund shares. An index is a statistical

composite that tracks a specified financial

market or sector. Unlike the Fund, the indices

do not actually hold a portfolio of securities

and therefore do not incur the expenses

incurred by the Fund. These expenses

negatively impact the performance of the

Fund. The Fund’s past performance does not

predict future performance.

Frequency Distribution of Discounts and Premiums

Page 7

Fund Performance Overview (Unaudited) (Continued)

First Trust US Equity Opportunities ETF (FPX)

The First Trust US Equity Opportunities ETF (the “Fund”) seeks investment results that correspond generally to the price and yield (before the Fund’s fees and expenses) of an equity index called the IPOX®-100 U.S. Index (the “Index”). The Fund will normally invest at least 90% of its net assets (including investment borrowings) in the securities that comprise the Index. The Index is developed, maintained and sponsored by IPOX Schuster LLC (the “Index Provider”). According to the Index Provider, the Index seeks to measure the performance of the equity securities of the 100 typically largest and most liquid initial public offerings (“IPOs”) (including spin-offs and equity carve-outs) of U.S. companies. The Index is rebalanced and reconstituted quarterly and the Fund will make corresponding changes to its portfolio shortly after the Index changes are made public. The Fund’s shares are listed for trading on the NYSE Arca. The first day of secondary market trading in shares of the Fund was April 13, 2006.

Performance
		Average Annual Total Returns			Cumulative Total Returns
	1 Year Ended 12/31/23	5 Years Ended 12/31/23	10 Years Ended 12/31/23	Inception (4/12/06) to 12/31/23	5 Years Ended 12/31/23	10 Years Ended 12/31/23	Inception (4/12/06) to 12/31/23
Fund Performance
NAV	22.01%	9.63%	8.45%	10.05%	58.34%	125.16%	446.19%
Market Price	22.22%	9.64%	8.45%	10.06%	58.43%	125.11%	446.33%
Index Performance
IPOX®-100 U.S. Index	22.65%	10.14%	9.00%	10.66%	62.06%	136.72%	502.34%
S&P 500® Index	26.29%	15.69%	12.03%	9.84%	107.21%	211.49%	427.34%
Russell 3000® Index	25.96%	15.16%	11.48%	9.62%	102.54%	196.41%	409.55%

(See Notes to Fund Performance Overview on page 24.)

Performance Review

The Fund generated a NAV return of 22.01% during the 12-month period covered by this report. During the same period, the Russell 3000® Index (the “Benchmark”) generated a return of 25.96%. The two sectors with the greatest allocation, and the most positive contributions to the Fund’s overall return, during the period covered by this report were the Information Technology sector and the Industrial sector. The Fund allocated 24.7% to investments in the Information Technology sector, which contributed 8.6% to the Fund’s overall return. The Fund also allocated 23.2% to the Industrials sector which contributed 10.1% to the Fund’s return. No sector had a significantly negative contribution to the Fund’s return. The most negative contribution to return was -0.2% from the allocation to the Health Care sector.

IPOX® and IPOX®-100 U.S. Index are registered international trademarks and service marks of IPOX® Schuster LLC (“IPOX”) and have been licensed for use by First Trust. The Fund is not sponsored, endorsed, sold or promoted by IPOX, and IPOX makes no representation regarding the advisability of trading in such Fund. IPOX® is an international trademark of IPOX Schuster LLC. Index of Initial Public Offerings (IPOX) and IPOX Derivatives Patent No. US 7,698,197.

Page 8

Fund Performance Overview (Unaudited) (Continued)

First Trust US Equity Opportunities ETF (FPX) (Continued)

Sector Allocation	% of Total Long-Term Investments
Industrials	30.7%
Information Technology	26.6
Consumer Discretionary	15.1
Health Care	10.1
Financials	9.2
Consumer Staples	2.4
Utilities	2.1
Communication Services	1.8
Energy	0.9
Real Estate	0.7
Materials	0.4
Total	100.0%

Top Ten Holdings	% of Total Long-Term Investments
Carrier Global Corp.	7.8%
Samsara, Inc., Class A	6.9
Uber Technologies, Inc.	6.6
Airbnb, Inc., Class A	6.4
Regeneron Pharmaceuticals, Inc.	5.8
Snowflake, Inc., Class A	3.5
Symbotic, Inc.	3.5
Otis Worldwide Corp.	3.2
DoorDash, Inc., Class A	3.0
Block, Inc.	2.4
Total	49.1%

Performance figures assume reinvestment of

all distributions and do not reflect the

deduction of taxes that a shareholder would

pay on Fund distributions or the redemption

or sale of Fund shares. An index is a statistical

composite that tracks a specified financial

market or sector. Unlike the Fund, the indices

do not actually hold a portfolio of securities

and therefore do not incur the expenses

incurred by the Fund. These expenses

negatively impact the performance of the

Fund. The Fund’s past performance does not

predict future performance.

Frequency Distribution of Discounts and Premiums

Page 9

Fund Performance Overview (Unaudited) (Continued)

First Trust NYSE® Arca® Biotechnology Index Fund (FBT)

The First Trust NYSE® Arca® Biotechnology Index Fund (the “Fund”) seeks investment results that correspond generally to the price and yield (before the Fund’s fees and expenses) of an equity index called the NYSE® Arca® Biotechnology Index (the “Index”). The Fund will normally invest at least 90% of its net assets (including investment borrowings) in the securities that comprise the Index. The Index is developed, maintained and sponsored by ICE Data Indices, LLC (the “Index Provider”). According to the Index Provider, the Index is an equal-dollar weighted index designed to measure the performance of a cross section of small, mid and large capitalization companies in the biotechnology industry that are primarily involved in the use of biological processes to develop products or provide services. Such processes include, but are not limited to, recombinant DNA technology, molecular biology, genetic engineering, monoclonal antibody-based technology, lipid/liposome technology and genomics. The Index is rebalanced and reconstituted quarterly and the Fund will make corresponding changes to its portfolio shortly after the Index changes are made public. The Fund’s shares are listed for trading on the NYSE Arca. The first day of secondary market trading in shares of the Fund was June 23, 2006.

Performance
		Average Annual Total Returns			Cumulative Total Returns
	1 Year Ended 12/31/23	5 Years Ended 12/31/23	10 Years Ended 12/31/23	Inception (6/19/06) to 12/31/23	5 Years Ended 12/31/23	10 Years Ended 12/31/23	Inception (6/19/06) to 12/31/23
Fund Performance
NAV	2.26%	4.92%	8.64%	12.60%	27.16%	128.96%	700.76%
Market Price	2.31%	4.92%	8.64%	12.60%	27.15%	128.96%	700.75%
Index Performance
NYSE® Arca® Biotechnology Index	2.86%	5.43%	9.13%	13.18%	30.25%	139.56%	776.78%
S&P Composite 1500® Health Care Index	1.92%	11.24%	11.32%	11.21%	70.33%	192.23%	544.37%
Nasdaq® Biotechnology Index	4.59%	8.26%	6.89%	11.27%	48.72%	94.78%	550.74%
S&P 500® Index	26.29%	15.69%	12.03%	10.16%	107.21%	211.49%	445.83%

(See Notes to Fund Performance Overview on page 24.)

Performance Review

The Fund generated a NAV return of 2.26% during the 12-month period covered by this report. During the same period, the S&P Composite 1500® Health Care Index (the “Benchmark”) returned 1.92%. The Fund was highly concentrated in the Biotechnology industry, which received an 80.4% allocation in the Fund during the period covered by this report. The Biotechnology investments in the Fund contributed 4.0% to the Fund’s overall return, by far the most significant driver of Fund return. The Fund’s only other significant allocation was a 19.5% allocation to the Life Sciences Tools & Services industry, which contributed -1.0% to the Fund’s return during the period.

Source ICE Data Indices, LLC, is used with permission. “NYSE®” is a service/trade mark of ICE Data Indices, LLC or its affiliates. This trademark has been licensed, along with the NYSE® Arca® Biotechnology Index (the “Index”) for use by First Trust Portfolios L.P. in connection with the First Trust NYSE® Arca® Biotechnology Index Fund (the “Product”). Neither First Trust Portfolios L.P., First Trust Exchange-Traded Fund (the “Trust”) nor the Product, as applicable, is sponsored, endorsed, sold or promoted by ICE Data Indices, LLC, its affiliates or its Third Party Suppliers (“ICE Data and its Suppliers”). ICE Data and its Suppliers make no representations or warranties regarding the advisability of investing in securities generally, in the Product particularly, the Trust or the ability of the Index to track general market performance. Past performance of an Index is not an indicator of or a guarantee of future results.

ICE DATA AND ITS SUPPLIERS DISCLAIM ANY AND ALL WARRANTIES AND REPRESENTATIONS, EXPRESS AND/OR IMPLIED, INCLUDING ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE, INCLUDING THE INDICES, INDEX DATA AND ANY INFORMATION INCLUDED IN, RELATED TO, OR DERIVED THEREFROM (“INDEX DATA”). ICE DATA AND ITS SUPPLIERS SHALL NOT BE SUBJECT TO ANY DAMAGES OR LIABILITY WITH RESPECT TO THE ADEQUACY, ACCURACY, TIMELINESS OR COMPLETENESS OF THE INDICES AND THE INDEX DATA, WHICH ARE PROVIDED ON AN “AS IS” BASIS AND YOUR USE IS AT YOUR OWN RISK.

Page 10

Fund Performance Overview (Unaudited) (Continued)

First Trust NYSE® Arca® Biotechnology Index Fund (FBT) (Continued)

Industry Allocation	% of Total Long-Term Investments
Biotechnology	78.8%
Life Sciences Tools & Services	21.2
Total	100.0%

Top Ten Holdings	% of Total Long-Term Investments
Ultragenyx Pharmaceutical, Inc.	4.2%
Grifols S.A., ADR	4.2
ACADIA Pharmaceuticals, Inc.	4.1
Charles River Laboratories International, Inc.	3.7
IQVIA Holdings, Inc.	3.7
Moderna, Inc.	3.6
Bio-Techne Corp.	3.5
Neurocrine Biosciences, Inc.	3.5
Mettler-Toledo International, Inc.	3.5
Alnylam Pharmaceuticals, Inc.	3.5
Total	37.5%

Performance figures assume reinvestment of

all distributions and do not reflect the

deduction of taxes that a shareholder would

pay on Fund distributions or the redemption

or sale of Fund shares. An index is a statistical

composite that tracks a specified financial

market or sector. Unlike the Fund, the indices

do not actually hold a portfolio of securities

and therefore do not incur the expenses

incurred by the Fund. These expenses

negatively impact the performance of the

Fund. The Fund’s past performance does not

predict future performance.

Frequency Distribution of Discounts and Premiums

Page 11

Fund Performance Overview (Unaudited) (Continued)

First Trust Dow Jones Internet Index Fund (FDN)

The First Trust Dow Jones Internet Index Fund (the “Fund”) seeks investment results that correspond generally to the price and yield (before the Fund’s fees and expenses) of an equity index called the Dow Jones Internet Composite IndexSM (the “Index”). The Fund will normally invest at least 90% of its net assets (including investment borrowings) in the securities that comprise the Index. The Index is developed, maintained and sponsored by S&P Dow Jones Indices LLC (the “Index Provider”). According to the Index Provider, the Index is designed to measure the performance of the largest and most actively traded securities issued by U.S. companies in the Internet industry. The Index is rebalanced and reconstituted quarterly and the Fund will make corresponding changes to its portfolio shortly after the Index changes are made public. The Fund’s shares are listed for trading on the NYSE Arca. The first day of secondary market trading in shares of the Fund was June 23, 2006.

Performance
		Average Annual Total Returns			Cumulative Total Returns
	1 Year Ended 12/31/23	5 Years Ended 12/31/23	10 Years Ended 12/31/23	Inception (6/19/06) to 12/31/23	5 Years Ended 12/31/23	10 Years Ended 12/31/23	Inception (6/19/06) to 12/31/23
Fund Performance
NAV	51.44%	9.84%	12.04%	13.61%	59.88%	211.66%	836.53%
Market Price	51.49%	9.84%	12.04%	13.61%	59.86%	211.65%	836.63%
Index Performance
Dow Jones Internet Composite IndexSM	52.23%	10.45%	12.62%	14.22%	64.36%	228.26%	929.43%
S&P Composite 1500® Information Technology Index	56.53%	26.48%	20.32%	15.81%	223.73%	536.03%	1,211.51%
S&P 500® Index	26.29%	15.69%	12.03%	10.16%	107.21%	211.49%	445.83%

(See Notes to Fund Performance Overview on page 24.)

Performance Review

The Fund generated a NAV return of 51.44% during the 12-month period covered by this report. During the same period, the S&P Composite 1500® Information Technology Index (the “Benchmark”) generated a return of 56.53%. The largest allocation was to the Information Technology sector with 43.4% average weight which generated an 18.6% contribution to the Fund’s return. The largest contribution to the Fund’s return came from the Communication Services sector, which had an average weight of 28.9% and contributed 21.4% to the Fund’s return. The only negatively contributing sector to the Fund’s return was the Financials sector, which contributed -0.8% to the Fund’s return during the period.

Dow Jones Internet Composite IndexSM (“Index”) is a product of S&P Dow Jones Indices LLC or its affiliates (“SPDJI”) and has been licensed for use by First Trust. S&P® is a registered trademark of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by First Trust. The Fund is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P or their respective affiliates and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the Index.

Page 12

Fund Performance Overview (Unaudited) (Continued)

First Trust Dow Jones Internet Index Fund (FDN) (Continued)

Sector Allocation	% of Total Long-Term Investments
Information Technology	43.1%
Communication Services	30.5
Consumer Discretionary	20.3
Financials	3.1
Health Care	3.0
Total	100.0%

Top Ten Holdings	% of Total Long-Term Investments
Amazon.com, Inc.	9.3%
Meta Platforms, Inc., Class A	7.7
Alphabet, Inc., Class A	5.3
Salesforce, Inc.	5.1
Netflix, Inc.	4.7
Cisco Systems, Inc.	4.6
Alphabet, Inc., Class C	4.5
Snowflake, Inc., Class A	3.1
PayPal Holdings, Inc.	3.1
Arista Networks, Inc.	3.0
Total	50.4%

Performance figures assume reinvestment of

all distributions and do not reflect the

deduction of taxes that a shareholder would

pay on Fund distributions or the redemption

or sale of Fund shares. An index is a statistical

composite that tracks a specified financial

market or sector. Unlike the Fund, the indices

do not actually hold a portfolio of securities

and therefore do not incur the expenses

incurred by the Fund. These expenses

negatively impact the performance of the

Fund. The Fund’s past performance does not

predict future performance.

Frequency Distribution of Discounts and Premiums

Page 13

Fund Performance Overview (Unaudited) (Continued)

First Trust Capital Strength ETF (FTCS)

The First Trust Capital Strength ETF (the “Fund”) seeks investment results that correspond generally to the price and yield (before the Fund’s fees and expenses) of an equity index called The Capital StrengthTM Index (the “Index”). The Fund will normally invest at least 90% of its net assets (including investment borrowings) in the securities that comprise the Index. The Index is developed, maintained and sponsored by Nasdaq, Inc. (the “Index Provider”). According to the Index Provider, the Index seeks to provide exposure to well-capitalized companies with strong market positions that have the potential to provide their stockholders with a greater degree of stability and performance over time. The Index is rebalanced and reconstituted quarterly and the Fund will make corresponding changes to its portfolio shortly after the Index changes are made public. The Fund’s shares are listed for trading on Nasdaq, Inc. The first day of secondary market trading in shares of the Fund was July 11, 2006.

Performance
		Average Annual Total Returns			Cumulative Total Returns
	1 Year Ended 12/31/23	5 Years Ended 12/31/23	10 Years Ended 12/31/23	Inception (7/6/06) to 12/31/23	5 Years Ended 12/31/23	10 Years Ended 12/31/23	Inception (7/6/06) to 12/31/23
Fund Performance
NAV	8.57%	12.06%	10.57%	9.83%	76.70%	173.12%	415.65%
Market Price	8.57%	12.05%	10.55%	9.83%	76.65%	172.74%	415.71%
Index Performance
The Capital StrengthTM Index(1)	9.21%	12.75%	11.27%	N/A	82.20%	190.85%	N/A
S&P 500® Index	26.29%	15.69%	12.03%	10.01%	107.21%	211.49%	430.75%

(1)

On June 4, 2013, the Fund’s underlying index changed from the Credit Suisse U.S. Value Index, Powered by HOLTTM to The Capital StrengthTM

Index. On June 18, 2010, the Fund’s underlying index changed from the Deutsche Bank CROCI® US+ IndexTM to the Credit Suisse U.S. Value

Index, Powered by HOLTTM. Therefore, the Fund’s performance and historical returns shown for the periods prior to June 4, 2013, are not

necessarily indicative of the performance that the Fund, based on its current index, would have generated. Since the Fund’s new underlying index

had an inception date of March 20, 2013, it was not in existence for some of the periods disclosed.

(See Notes to Fund Performance Overview on page 24.)

Performance Review

The Fund generated a NAV return of 8.57% during the 12-month period covered by this report. During the same period, the S&P 500® Index (the “Benchmark”) generated a return of 26.29%. The Fund allocated 26.7% to the Health Care sector, which was the largest sector weight in the Fund. The second highest weight in the Fund was in the Industrials sector, which had an average weight of 23.5%. These sectors contributed 0.0% and 1.3% to the Fund’s return, respectively. The Information Technology sector contributed 3.3% to the Fund’s return, which was the largest positive contributor. The Communication Services sectors contributed -0.2% to the Fund’s return, which was the largest detractor to the Fund’s return during the period.

Nasdaq® and The Capital StrengthTM Index are registered trademarks and service marks of Nasdaq, Inc. (together with its affiliates hereinafter referred to as the “Corporations”) and are licensed for use by First Trust. The Fund has not been passed on by the Corporations as to its legality or suitability. The Fund is not issued, endorsed, sold or promoted by the Corporations. THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE FUND.

Page 14

Fund Performance Overview (Unaudited) (Continued)

First Trust Capital Strength ETF (FTCS) (Continued)

Sector Allocation	% of Total Long-Term Investments
Industrials	23.7%
Health Care	19.2
Consumer Staples	17.7
Financials	14.5
Information Technology	12.9
Consumer Discretionary	8.6
Materials	1.8
Energy	1.6
Total	100.0%

Top Ten Holdings	% of Total Long-Term Investments
Gartner, Inc.	2.4%
Moody’s Corp.	2.3
Garmin Ltd.	2.3
Amphenol Corp., Class A	2.3
PACCAR, Inc.	2.3
Ameriprise Financial, Inc.	2.2
Home Depot (The), Inc.	2.2
Ross Stores, Inc.	2.2
TE Connectivity Ltd.	2.2
Costco Wholesale Corp.	2.2
Total	22.6%

Performance figures assume reinvestment of

all distributions and do not reflect the

deduction of taxes that a shareholder would

pay on Fund distributions or the redemption

or sale of Fund shares. An index is a statistical

composite that tracks a specified financial

market or sector. Unlike the Fund, the indices

do not actually hold a portfolio of securities

and therefore do not incur the expenses

incurred by the Fund. These expenses

negatively impact the performance of the

Fund. The Fund’s past performance does not

predict future performance.

Frequency Distribution of Discounts and Premiums

Page 15

Fund Performance Overview (Unaudited) (Continued)

First Trust Value Line® Dividend Index Fund (FVD)

The First Trust Value Line® Dividend Index Fund (the “Fund”) seeks investment results that correspond generally to the price and yield (before the Fund’s fees and expenses) of an equity index called the Value Line® Dividend Index (the “Index”). The Fund will normally invest at least 90% of its net assets (including investment borrowings) in the securities that comprise the Index. The Index is developed by Value Line Publishing, LLC (the “Index Provider”) and calculated by ICE Data Indices, LLC as the calculation agent on behalf of the Index Provider. According to the Index Provider, the Index seeks to measure the performance of the securities ranked #1 or #2 according to Value Line Publishing, LLC’s proprietary Value Line® SafetyTM Ranking System that are also still expected to provide above-average dividend yield. The Index is rebalanced and reconstituted monthly and the Fund will make corresponding changes to its portfolio shortly after the Index changes are made public. The Fund’s shares are listed for trading on the NYSE Arca.

Performance
		Average Annual Total Returns			Cumulative Total Returns
	1 Year Ended 12/31/23	5 Years Ended 12/31/23	10 Years Ended 12/31/23	Inception (8/19/03) to 12/31/23	5 Years Ended 12/31/23	10 Years Ended 12/31/23	Inception (8/19/03) to 12/31/23
Fund Performance
NAV	4.10%	9.29%	9.08%	9.20%	55.88%	138.40%	500.04%
Market Price	4.08%	9.28%	9.06%	9.19%	55.85%	138.12%	499.89%
Index Performance
Value Line® Dividend Index(1)	4.85%	10.16%	9.95%	N/A	62.26%	158.14%	N/A
S&P 500® Index	26.29%	15.69%	12.03%	10.11%	107.21%	211.49%	610.57%
S&P 500® Value Index	22.23%	14.11%	10.01%	9.01%	93.49%	159.66%	479.04%
Dow Jones U.S. Select Dividend IndexSM(1)	1.53%	10.05%	9.26%	N/A	61.40%	142.54%	N/A

On December 15, 2006, the Fund acquired the assets and adopted the financial and performance history of First Trust Value Line® Dividend

Fund (the “Predecessor FVD Fund,” a closed-end fund), which had an inception date of August 19, 2003. The inception date total returns at net

asset value (“NAV”) include the sales load of $0.675 per share on the initial offering. The investment goals, strategies and policies of the Fund

are substantially similar to those of the Predecessor FVD Fund. The inception date of the Index was July 3, 2006. Returns for the Index are only

disclosed for those periods in which the Index was in existence for the entire period. The cumulative total returns for the period from the

reorganization date (December 15, 2006) through period end (December 31, 2023) were 270.97% and 272.65% at NAV and Market Price,

respectively. That compares to an Index return of 324.18% for the same period. The average annual total returns for the period from the

reorganization date (December 15, 2006) through period end (December 31, 2023) were 8.00% and 8.02% at NAV and Market Price,

respectively. That compares to an Index return of 8.85% for the same period.

NAV and Market Price returns assume that all distributions have been reinvested in the Fund at NAV and Market Price, respectively. Prior to

December 15, 2006, NAV and Market Price returns assumed that all distributions were reinvested at prices obtained by the Dividend

Reinvestment Plan of the Predecessor FVD Fund and the price used to calculate Market Price return was the AMEX (now known as the NYSE

American) closing market price of the Predecessor FVD Fund.

(1)

Performance data is not available for all the periods shown in the table for the index because performance data does not exist for some of the

entire periods.

(See Notes to Fund Performance Overview on page 24.)

Performance Review

The Fund generated a NAV return of 4.10% during the 12-month period covered by this report. During the same period, the S&P 500® Index (the “Benchmark”) generated a return of 26.29%. The Fund allocated 22.2% to the Utilities sector, which was the largest sector weight in the Fund. This allocation contributed -2.1% to the Fund’s return, which was the most negative contribution to return of any sector. The Industrials sector contributed the most positive contribution to the Fund’s return of any sector, contributing 3.1%. The Financials sector also notably contributed positively towards the Fund’s return, contributing 2.1% during the period.

Value Line® and Value Line® Dividend Index are trademarks or registered trademarks of Value Line, Inc. (“Value Line”) and have been licensed for use for certain purposes by First Trust. The Fund is not sponsored, endorsed, recommended, sold or promoted by Value Line and Value Line makes no representation regarding the advisability of investing in products utilizing such strategy.

Page 16

Fund Performance Overview (Unaudited) (Continued)

First Trust Value Line® Dividend Index Fund (FVD) (Continued)

Sector Allocation	% of Total Long-Term Investments
Utilities	20.9%
Industrials	19.7
Consumer Staples	14.9
Financials	11.1
Health Care	10.6
Information Technology	8.0
Consumer Discretionary	5.6
Materials	4.9
Communication Services	1.9
Real Estate	1.8
Energy	0.6
Total	100.0%

Top Ten Holdings	% of Total Long-Term Investments
Novartis AG, ADR	0.6%
T-Mobile US, Inc.	0.6
Tractor Supply Co.	0.6
Toyota Motor Corp., ADR	0.6
Broadridge Financial Solutions, Inc.	0.6
Travelers (The) Cos., Inc.	0.6
Chubb Ltd.	0.6
Hershey (The) Co.	0.6
Lancaster Colony Corp.	0.6
Amgen, Inc.	0.6
Total	6.0%

Performance figures assume reinvestment of

all distributions and do not reflect the

deduction of taxes that a shareholder would

pay on Fund distributions or the redemption

or sale of Fund shares. An index is a statistical

composite that tracks a specified financial

market or sector. Unlike the Fund, the indices

do not actually hold a portfolio of securities

and therefore do not incur the expenses

incurred by the Fund. These expenses

negatively impact the performance of the

Fund. The Fund’s past performance does not

predict future performance.

Frequency Distribution of Discounts and Premiums

Page 17

Fund Performance Overview (Unaudited) (Continued)

First Trust Growth Strength ETF (FTGS)

The First Trust Growth Strength ETF (the “Fund”) seeks investment results that correspond generally to the price and yield (before the Fund’s fees and expenses) of an equity index called The Growth StrengthTM Index (the “Index”). Under normal market conditions, the Fund will invest at least 80% of its net assets (plus any borrowings for investment purposes) in the securities that comprise the Index. The Index is developed, maintained and sponsored by Nasdaq, Inc. (the “Index Provider”). According to the Index Provider, the Index seeks to provide exposure to (without limitation) a mix of domestic common stocks and real estate investment trusts (“REITs”) with filters for liquidity, return on equity, long-term debt, revenue and cash flow growth. Companies that do not meet requirements for minimum metrics on those criteria are filtered out of, or excluded from, the Index, according to the Index Provider. The Index is rebalanced and reconstituted quarterly and the Fund will make corresponding changes to its portfolio shortly after the Index changes are made public. The Fund’s shares are listed for trading on Nasdaq, Inc. The first day of secondary market trading in shares of the Fund was October 26, 2022.

Performance
		Average Annual Total Returns	Cumulative Total Returns
	1 Year Ended 12/31/23	Inception (10/25/22) to 12/31/23	Inception (10/25/22) to 12/31/23
Fund Performance
NAV	33.54%	28.97%	35.14%
Market Price	33.43%	29.09%	35.29%
Index Performance
The Growth StrengthTM Index	34.47%	29.66%	35.99%
S&P 500® Index	26.29%	21.65%	26.10%

(See Notes to Fund Performance Overview on page 24.)

Performance Review

The Fund generated a NAV return of 33.54% during the 12-month period covered by this report. During the same period, the S&P 500® Index (the “Benchmark”) generated a return of 26.29%. The Fund allocated 33.1% to the Information Technology sector during the period, which was more than the weight given to any other sector. Investments in this sector contributed 18.3% to the Fund’s return, the greatest contribution to the Fund’s return of any sector. The Consumer Discretionary sector also contributed significantly to the Fund’s performance, contributing 7.5%. During the period, no sector contributed negatively to the Fund’s return.

Nasdaq® and The Growth StrengthTM Index are registered trademarks and service marks of Nasdaq, Inc. (together with its affiliates hereinafter referred to as the “Corporations”) and are licensed for use by First Trust. The Fund has not been passed on by the Corporations as to its legality or suitability. The Fund is not issued, endorsed, sold or promoted by the Corporations. THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE FUND.

Page 18

Fund Performance Overview (Unaudited) (Continued)

First Trust Growth Strength ETF (FTGS) (Continued)

Sector Allocation	% of Total Long-Term Investments
Information Technology	33.7%
Consumer Discretionary	21.5
Health Care	13.1
Financials	8.1
Energy	8.0
Industrials	8.0
Materials	5.8
Communication Services	1.8
Total	100.0%

Top Ten Holdings	% of Total Long-Term Investments
D.R. Horton, Inc.	2.6%
Dexcom, Inc.	2.5
Lennar Corp., Class A	2.5
Blackstone, Inc.	2.4
Deckers Outdoor Corp.	2.3
Enphase Energy, Inc.	2.3
QUALCOMM, Inc.	2.3
EPAM Systems, Inc.	2.3
Lam Research Corp.	2.2
Broadcom, Inc.	2.2
Total	23.6%

Performance figures assume reinvestment of

all distributions and do not reflect the

deduction of taxes that a shareholder would

pay on Fund distributions or the redemption

or sale of Fund shares. An index is a statistical

composite that tracks a specified financial

market or sector. Unlike the Fund, the indices

do not actually hold a portfolio of securities

and therefore do not incur the expenses

incurred by the Fund. These expenses

negatively impact the performance of the

Fund. The Fund’s past performance does not

predict future performance.

Frequency Distribution of Discounts and Premiums

Page 19

Fund Performance Overview (Unaudited) (Continued)

First Trust Indxx Aerospace & Defense ETF (MISL)

The First Trust Indxx Aerospace & Defense ETF (the “Fund”) seeks investment results that correspond generally to the price and yield (before the Fund’s fees and expenses) of an equity index called the Indxx US Aerospace & Defense Index (the “Index”). Under normal market conditions, the Fund will invest at least 80% of its net assets (plus any borrowings for investment purposes) in the securities that comprise the Index. The Fund will generally employ a full replication strategy, meaning that it will normally invest in all of the securities comprising the Index in proportion to their weightings in the Index. The Index is developed, maintained and sponsored by Indxx, Inc. (the “Index Provider”).

According to the Index Provider, the Index’s starting universe consists of U.S. companies engaged in business activities associated with the following aerospace and defense sub-themes, as identified by the Index Provider: (1) Hypersonic: Companies involved in developing Hypersonic warfare weapons technology for defense related applications; (2) Directed Energy: Companies involved in developing weapons like high power microwaves, laser technology products and electromagnetic weapons for defense related applications; (3) Space Technologies: Companies involved in developing rockets, satellites and launch vehicles; (4) Unmanned Aerial Vehicle/Advanced Air Mobility: Companies that develop military aircrafts guided by remote control or programmed autonomously and companies involved in developing an air transportation system that moves cargo and people for defense related applications; or (5) Autonomous, Cybersecurity and C5ISR Systems: Companies involved in providing autonomous, cybersecurity, and C5ISR solutions for improving national security, enhancing public safety and designing better combat results. These sub-themes also include the commercial (non-government/defense) application of such activities. According to the Index Provider, the starting universe also includes Traditional Aerospace & Defense companies that manufacture construction materials, electronics, and telecommunications equipment used in the manufacture of aircraft for both defense and commercial aviation. From the starting universe, only companies that derive at least 50% of revenues from aerospace and defense activities in one or more of the sub-themes identified above will be eligible for inclusion in the Index, according to the Index Provider. These companies have their principal business strategies and/or growth prospects inextricably linked to aerospace and defense. According to the Index Provider, from the list of eligible companies, a total of 50 companies ranked from highest to lowest market capitalization will be selected. In the event there are less than 50 companies that meet the 50% revenue test, all eligible companies will be selected (i.e., there may be fewer than 50 companies in the Index). The selected securities are assigned weights based on their market capitalization. The Index is rebalanced quarterly and reconstituted semi-annually, and the Fund will make corresponding changes to its portfolio shortly after the Index changes are made public. The Fund’s shares are listed for trading on the NYSE Arca, Inc. The first day of secondary market trading in shares of the Fund was October 26, 2022.

Performance
		Average Annual Total Returns	Cumulative Total Returns
	1 Year Ended 12/31/23	Inception (10/25/22) to 12/31/23	Inception (10/25/22) to 12/31/23
Fund Performance
NAV	14.88%	19.38%	23.32%
Market Price	14.78%	19.37%	23.32%
Index Performance
Indxx US Aerospace & Defense Index	15.57%	20.03%	24.13%
S&P 500® Index	26.29%	21.65%	26.10%
S&P Composite 1500® Aerospace & Defense Index	8.69%	15.60%	18.72%

(See Notes to Fund Performance Overview on page 24.)

Performance Review

The Fund generated a NAV return of 14.88% during the 12-month period covered by this report. During the same period, the S&P 500® Index (the “Benchmark”) generated a return of 26.29%. During the period, the Fund allocated 86.3% to the Aerospace & Defense sub-industry, which was more than the weight given to any other sub-industry. Investments in the Aerospace & Defense sub-industry contributed 14.4% to the Fund’s return, the greatest contribution to return of any sector. The Research & Consulting Services sub-industry was the other significant contributor to the Fund’s return. This sub-industry had an average weight of 13.0% and contributed 1.0% to the Fund’s return during the period. No sub-industry contributed negatively to the Fund’s total return during the period.

Indxx and Indxx US Aerospace & Defense Index (“Index”) are trademarks of Indxx, Inc. (“Indxx”) and have been licensed for use for certain purposes by First Trust. The Fund is not sponsored, endorsed, sold or promoted by Indxx, and Indxx makes no representation regarding the advisability of trading in such product. The Index is determined, composed and calculated by Indxx without regard to First Trust or the Fund.

Page 20

Fund Performance Overview (Unaudited) (Continued)

First Trust Indxx Aerospace & Defense ETF (MISL) (Continued)

Sector Allocation	% of Total Long-Term Investments
Industrials	99.5%
Communication Services	0.5
Total	100.0%

Top Ten Holdings	% of Total Long-Term Investments
Boeing (The) Co.	10.0%
RTX Corp.	8.2
General Dynamics Corp.	7.6
Lockheed Martin Corp.	7.3
Northrop Grumman Corp.	6.8
Howmet Aerospace, Inc.	4.3
L3Harris Technologies, Inc.	4.2
TransDigm Group, Inc.	4.2
Leidos Holdings, Inc.	4.1
Huntington Ingalls Industries, Inc.	4.0
Total	60.7%

Performance figures assume reinvestment of

all distributions and do not reflect the

deduction of taxes that a shareholder would

pay on Fund distributions or the redemption

or sale of Fund shares. An index is a statistical

composite that tracks a specified financial

market or sector. Unlike the Fund, the indices

do not actually hold a portfolio of securities

and therefore do not incur the expenses

incurred by the Fund. These expenses

negatively impact the performance of the

Fund. The Fund’s past performance does not

predict future performance.

Frequency Distribution of Discounts and Premiums

Page 21

Fund Performance Overview (Unaudited) (Continued)

First Trust Bloomberg Inflation Sensitive Equity ETF (FTIF)

The First Trust Bloomberg Inflation Sensitive Equity ETF (the “Fund”) seeks investment results that correspond generally to the price and yield, before fees and expenses, of an equity index called the Bloomberg Inflation Sensitive Equity Index (the “Index”). Under normal market conditions, the Fund will invest at least 80% of its net assets (plus any borrowings for investment purposes) in the common stocks that comprise the Index. The Index is developed, maintained and sponsored by Bloomberg Index Services Limited (the “Index Provider”). The Fund, using an indexing investment approach, attempts to replicate, before fees and expenses, the total return performance of the Index, which includes dividends paid by the common stocks in the Index. The Fund will generally employ a full replication strategy, meaning that it will normally invest in all of the securities comprising the Index in proportion to their weightings in the Index. The Fund’s shares are listed for trading on the NYSE Arca, Inc. The first day of secondary market trading in shares of the Fund was March 14, 2023.

Performance
	Cumulative Total Returns
	Inception (3/13/23) to 12/31/23
Fund Performance
NAV	13.06%
Market Price	13.06%
Index Performance
Bloomberg Inflation Sensitive Equity Index	13.66%
S&P 500® Index	25.32%

(See Notes to Fund Performance Overview on page 24.)

Performance Review

The Fund generated a NAV return of 13.06% during the period from the Fund’s inception date of March 13, 2023 through December 31, 2023. During the same period, the S&P 500® Index (“Benchmark”) generated a return of 25.32%. The Energy sector received the greatest allocation of any sector in the Fund, with an allocation of 30.1%, and contributed 4.8% to the Fund’s return. Investments in the Industrials sector contributed 5.5% to the Fund’s return, the greatest of any sector in the Fund. During the same period, no sector contributed negatively to the Fund’s total return.

“Bloomberg®” and Bloomberg Inflation Sensitive Equity Index licensed herein (the “Indices”) are service marks of Bloomberg Finance L.P. and its affiliates, including Bloomberg Index Services Limited (“BISL”), the administrator of the Indices (collectively, “Bloomberg”) and have been licensed for use for certain purposes by First Trust Advisors L.P. (the “Licensee”). Bloomberg is not affiliated with the Licensee, and Bloomberg does not approve, endorse, review, or recommend the financial products referenced herein (the “Financial Products”). Bloomberg does not guarantee the timeliness, accurateness, or completeness of any data or information relating to the Indices or the Financial Products.

Page 22

Fund Performance Overview (Unaudited) (Continued)

First Trust Bloomberg Inflation Sensitive Equity ETF (FTIF) (Continued)

Sector Allocation	% of Total Long-Term Investments
Energy	38.6%
Industrials	25.6
Materials	19.2
Real Estate	14.4
Information Technology	2.2
Total	100.0%

Top Ten Holdings	% of Total Long-Term Investments
Weatherford International PLC	2.8%
Simon Property Group, Inc.	2.3
Carlisle Cos., Inc.	2.3
Cleveland-Cliffs, Inc.	2.3
General Dynamics Corp.	2.3
Caterpillar, Inc.	2.2
Parker-Hannifin Corp.	2.2
Diamondback Energy, Inc.	2.2
PACCAR, Inc.	2.2
Amphenol Corp., Class A	2.2
Total	23.0%

Performance figures assume reinvestment of

all distributions and do not reflect the

deduction of taxes that a shareholder would

pay on Fund distributions or the redemption

or sale of Fund shares. An index is a statistical

composite that tracks a specified financial

market or sector. Unlike the Fund, the indices

do not actually hold a portfolio of securities

and therefore do not incur the expenses

incurred by the Fund. These expenses

negatively impact the performance of the

Fund. The Fund’s past performance does not

predict future performance.

Frequency Distribution of Discounts and Premiums

Page 23

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

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

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

Page 24

First Trust Exchange-Traded Fund

Understanding Your Fund Expenses

December 31, 2023 (Unaudited)

As a shareholder of First Trust Dow Jones Select MicroCap Index Fund, First Trust Morningstar Dividend Leaders Index Fund, First Trust US Equity Opportunities ETF, First Trust NYSE® Arca® Biotechnology Index Fund, First Trust Dow Jones Internet Index Fund, First Trust Capital Strength ETF, First Trust Value Line® Dividend Index Fund, First Trust Growth Strength ETF, First Trust Indxx Aerospace & Defense ETF or First Trust Bloomberg Inflation Sensitive Equity ETF (each a “Fund” and collectively, the “Funds”), you incur two types of costs: (1) transaction costs; and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, if any, and other Fund expenses. This Example is intended to help you understand your ongoing costs of investing in the Funds and to compare these costs with the ongoing costs of investing in other funds.

The Example is based on an investment of $1,000 invested at the beginning of the period and held through the six-month period ended December 31, 2023.

Actual Expenses

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

Hypothetical Example for Comparison Purposes

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

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

	Beginning Account Value July 1, 2023	Ending Account Value December 31, 2023	Annualized Expense Ratio Based on the Six-Month Period (a)	Expenses Paid During the Six-Month Period (b)
First Trust Dow Jones Select MicroCap Index Fund (FDM)
Actual	$1,000.00	$1,102.60	0.60%	$3.18
Hypothetical (5% return before expenses)	$1,000.00	$1,022.18	0.60%	$3.06
First Trust Morningstar Dividend Leaders Index Fund (FDL)
Actual	$1,000.00	$1,080.80	0.45%	$2.36
Hypothetical (5% return before expenses)	$1,000.00	$1,022.94	0.45%	$2.29
First Trust US Equity Opportunities ETF (FPX)
Actual	$1,000.00	$1,087.60	0.58%	$3.05
Hypothetical (5% return before expenses)	$1,000.00	$1,022.28	0.58%	$2.96
First Trust NYSE® Arca® Biotechnology Index Fund (FBT)
Actual	$1,000.00	$1,035.40	0.56%	$2.87
Hypothetical (5% return before expenses)	$1,000.00	$1,022.38	0.56%	$2.85
First Trust Dow Jones Internet Index Fund (FDN)
Actual	$1,000.00	$1,144.10	0.50%	$2.70
Hypothetical (5% return before expenses)	$1,000.00	$1,022.68	0.50%	$2.55
First Trust Capital Strength ETF (FTCS)
Actual	$1,000.00	$1,074.40	0.54%	$2.82
Hypothetical (5% return before expenses)	$1,000.00	$1,022.48	0.54%	$2.75

Page 25

First Trust Exchange-Traded Fund

Understanding Your Fund Expenses (Continued)

December 31, 2023 (Unaudited)

	Beginning Account Value July 1, 2023	Ending Account Value December 31, 2023	Annualized Expense Ratio Based on the Six-Month Period (a)	Expenses Paid During the Six-Month Period (b)
First Trust Value Line® Dividend Index Fund (FVD)
Actual	$1,000.00	$1,024.00	0.56%	$2.86
Hypothetical (5% return before expenses)	$1,000.00	$1,022.38	0.56%	$2.85
First Trust Growth Strength ETF (FTGS)
Actual	$1,000.00	$1,162.40	0.60%	$3.27
Hypothetical (5% return before expenses)	$1,000.00	$1,022.18	0.60%	$3.06
First Trust Indxx Aerospace & Defense ETF (MISL)
Actual	$1,000.00	$1,099.50	0.60%	$3.18
Hypothetical (5% return before expenses)	$1,000.00	$1,022.18	0.60%	$3.06
First Trust Bloomberg Inflation Sensitive Equity ETF (FTIF)
Actual	$1,000.00	$1,081.60	0.60%	$3.15
Hypothetical (5% return before expenses)	$1,000.00	$1,022.18	0.60%	$3.06

(a)	These expense ratios reflect expense caps for certain Funds. See Note 3 in the Notes to Financial Statements.
(b)	Expenses are equal to the annualized expense ratio as indicated in the table multiplied by the average account value over the period (July 1, 2023 through December 31, 2023), multiplied by 184/365 (to reflect the six-month period).

Page 26

First Trust Dow Jones Select MicroCap Index Fund (FDM)

Portfolio of Investments

December 31, 2023

Shares	Description	Value
COMMON STOCKS — 99.9%
	Aerospace & Defense — 1.8%
37,303	Ducommun, Inc. (a)	$1,941,994
14,402	National Presto Industries, Inc.	1,156,193
		3,098,187
	Air Freight & Logistics — 0.4%
98,041	Radiant Logistics, Inc. (a)	650,992
	Banks — 21.4%
48,799	Amalgamated Financial Corp.	1,314,645
41,649	Bar Harbor Bankshares	1,222,815
29,835	BayCom Corp.	703,808
64,771	Business First Bancshares, Inc.	1,596,605
36,889	Capital City Bank Group, Inc.	1,085,643
29,609	Coastal Financial Corp. (a)	1,314,936
25,091	Codorus Valley Bancorp, Inc.	644,839
117,859	CrossFirst Bankshares, Inc. (a)	1,600,525
18,487	Esquire Financial Holdings, Inc.	923,610
29,073	First Financial Corp.	1,251,011
32,247	Five Star Bancorp	844,226
19,286	FS Bancorp, Inc.	712,811
23,986	Great Southern Bancorp, Inc.	1,423,569
35,727	HBT Financial, Inc.	754,197
167,902	Heritage Commerce Corp.	1,665,588
42,992	HomeTrust Bancshares, Inc.	1,157,345
57,269	Independent Bank Corp.	1,490,139
177,355	Kearny Financial Corp.	1,590,874
17,164	MainStreet Bancshares, Inc. (b)	425,839
40,514	Mercantile Bank Corp.	1,635,955
39,241	MidWestOne Financial Group, Inc.	1,055,975
32,202	MVB Financial Corp.	726,477
18,198	Northeast Bank	1,004,348
39,797	Northeast Community Bancorp, Inc.	705,999
15,183	Northrim BanCorp, Inc.	868,619
18,232	Oak Valley Bancorp (b)	546,048
110,548	Old Second Bancorp, Inc.	1,706,861
11,790	Orange County Bancorp, Inc. (b)	710,230
13,389	Plumas Bancorp	553,635
36,361	Sierra Bancorp	819,941
32,611	South Plains Financial, Inc.	944,415
26,167	Southern Missouri Bancorp, Inc.	1,397,056
22,273	Timberland Bancorp, Inc.	700,709
81,089	Univest Financial Corp.	1,786,391
		36,885,684
	Biotechnology — 1.0%
92,875	Cullinan Oncology, Inc. (a)	946,396
85,839	Voyager Therapeutics, Inc. (a)	724,481
		1,670,877

Shares	Description	Value

	Capital Markets — 1.4%
83,701	Bridge Investment Group Holdings, Inc., Class A	$818,596
7,909	Diamond Hill Investment Group, Inc.	1,309,651
84,739	Heritage Global, Inc. (a)	235,575
		2,363,822
	Chemicals — 1.0%
73,475	American Vanguard Corp.	806,021
20,217	Core Molding Technologies, Inc. (a)	374,621
25,671	Intrepid Potash, Inc. (a)	613,280
		1,793,922
	Commercial Services & Supplies — 4.4%
80,360	CECO Environmental Corp. (a)	1,629,701
61,568	Liquidity Services, Inc. (a)	1,059,585
84,032	Quad Graphics, Inc. (a)	455,454
57,486	Viad Corp. (a)	2,080,993
36,782	VSE Corp.	2,376,485
		7,602,218
	Communications Equipment — 0.7%
32,193	Aviat Networks, Inc. (a)	1,051,423
33,451	Cambium Networks Corp. (a)	200,706
		1,252,129
	Construction & Engineering — 1.2%
27,213	Limbach Holdings, Inc. (a)	1,237,375
27,519	Northwest Pipe Co. (a)	832,725
		2,070,100
	Consumer Finance — 1.4%
12,828	Atlanticus Holdings Corp. (a)	496,059
143,178	EZCORP, Inc., Class A (a)	1,251,376
24,594	Regional Management Corp.	616,817
		2,364,252
	Containers & Packaging — 1.1%
101,155	Myers Industries, Inc.	1,977,580
	Diversified Consumer Services — 1.0%
36,640	Carriage Services, Inc.	916,366
78,420	Lincoln Educational Services Corp. (a)	787,337
		1,703,703
	Diversified REITs — 0.5%
43,418	One Liberty Properties, Inc.	951,288
	Diversified Telecommunication Services — 1.1%
54,447	IDT Corp., Class B (a)	1,856,098

See Notes to Financial Statements

Page 27

First Trust Dow Jones Select MicroCap Index Fund (FDM)

Portfolio of Investments (Continued)

December 31, 2023

Shares	Description	Value
COMMON STOCKS (Continued)
	Electric Utilities — 1.0%
59,657	Genie Energy Ltd., Class B	$1,678,151
	Electrical Equipment — 2.6%
38,757	Allient, Inc.	1,170,849
74,707	LSI Industries, Inc.	1,051,875
25,098	Powell Industries, Inc.	2,218,663
		4,441,387
	Electronic Equipment, Instruments & Components — 4.7%
27,461	Bel Fuse, Inc., Class B	1,833,571
10,950	Climb Global Solutions, Inc.	600,389
68,275	Kimball Electronics, Inc. (a)	1,840,011
68,610	ScanSource, Inc. (a)	2,717,642
34,378	Vishay Precision Group, Inc. (a)	1,171,258
		8,162,871
	Energy Equipment & Services — 2.8%
54,307	DMC Global, Inc. (a)	1,022,058
26,330	Forum Energy Technologies, Inc. (a)	583,736
37,422	KLX Energy Services Holdings, Inc. (a)	421,372
63,238	Mammoth Energy Services, Inc. (a)	282,041
38,240	Ranger Energy Services, Inc.	391,195
79,836	Solaris Oilfield Infrastructure, Inc., Class A	635,495
321,715	TETRA Technologies, Inc. (a)	1,454,152
		4,790,049
	Entertainment — 0.5%
144,867	Vivid Seats, Inc., Class A (a)	915,559
	Financial Services — 1.9%
64,347	NewtekOne, Inc. (b)	887,989
15,190	Ocwen Financial Corp. (a)	467,244
257,364	UWM Holdings Corp. (b)	1,840,153
		3,195,386
	Ground Transportation — 0.6%
117,566	Daseke, Inc. (a)	952,285
	Health Care Equipment & Supplies — 1.0%
201,936	OraSure Technologies, Inc. (a)	1,655,875
	Health Care Providers & Services — 0.6%
349,618	Community Health Systems, Inc. (a)	1,094,304

Shares	Description	Value

	Hotels, Restaurants & Leisure — 4.7%
25,359	Bluegreen Vacations Holding Corp.	$1,904,968
145,879	Denny’s Corp. (a)	1,587,163
74,256	El Pollo Loco Holdings, Inc. (a)	654,938
67,309	Inspired Entertainment, Inc. (a)	665,013
7,624	Nathan’s Famous, Inc.	594,748
67,892	ONE Group Hospitality (The), Inc. (a)	415,499
66,157	Potbelly Corp. (a)	689,356
23,760	RCI Hospitality Holdings, Inc.	1,574,338
		8,086,023
	Household Durables — 0.5%
30,120	Landsea Homes Corp. (a)	395,777
19,439	Legacy Housing Corp. (a)	490,251
		886,028
	Household Products — 1.3%
26,181	Central Garden & Pet Co. (a)	1,311,930
14,040	Oil-Dri Corp. of America	941,803
		2,253,733
	Insurance — 1.9%
124,197	Ambac Financial Group, Inc. (a)	2,046,767
73,013	Greenlight Capital Re Ltd., Class A (a)	833,808
53,644	Kingsway Financial Services, Inc. (a) (b)	450,610
		3,331,185
	Interactive Media & Services — 0.1%
18,430	Travelzoo (a)	175,638
	IT Services — 1.1%
68,114	Hackett Group (The), Inc.	1,550,956
83,271	Information Services Group, Inc.	392,206
		1,943,162
	Leisure Products — 1.3%
18,214	Johnson Outdoors, Inc., Class A	972,992
33,151	Marine Products Corp.	377,922
41,255	MasterCraft Boat Holdings, Inc. (a)	934,013
		2,284,927
	Machinery — 2.7%
63,161	Douglas Dynamics, Inc.	1,874,618
28,483	Gencor Industries, Inc. (a)	459,716
29,020	Mayville Engineering Co., Inc. (a)	418,468
31,454	Miller Industries, Inc.	1,330,190
22,659	Park-Ohio Holdings Corp.	610,887
		4,693,879

See Notes to Financial Statements

Page 28

First Trust Dow Jones Select MicroCap Index Fund (FDM)

Portfolio of Investments (Continued)

December 31, 2023

Shares	Description	Value
COMMON STOCKS (Continued)
	Marine Transportation — 1.6%
116,899	Genco Shipping & Trading Ltd.	$1,939,355
94,493	Pangaea Logistics Solutions Ltd.	778,622
		2,717,977
	Media — 0.6%
166,409	Entravision Communications Corp., Class A	693,926
33,084	Townsquare Media, Inc., Class A	349,367
		1,043,293
	Metals & Mining — 5.1%
129,240	Gatos Silver, Inc. (a)	845,230
34,988	Haynes International, Inc.	1,996,065
26,923	Olympic Steel, Inc.	1,795,764
97,722	Ramaco Resources, Inc., Class A (b)	1,678,864
230,164	SunCoke Energy, Inc.	2,471,961
		8,787,884
	Mortgage REITs — 0.3%
43,851	AFC Gamma, Inc.	527,528
	Oil, Gas & Consumable Fuels — 8.5%
98,845	Amplify Energy Corp. (a)	586,151
185,062	Berry Corp.	1,300,986
35,400	Centrus Energy Corp., Class A (a)	1,926,114
226,455	Crescent Energy, Inc., Class A	2,991,470
83,599	Evolution Petroleum Corp.	485,710
72,157	FutureFuel Corp.	438,715
67,396	Hallador Energy Co. (a)	595,781
147,170	Overseas Shipholding Group, Inc., Class A	775,586
41,848	REX American Resources Corp. (a)	1,979,410
118,271	Ring Energy, Inc. (a)	172,676
86,638	SandRidge Energy, Inc.	1,184,341
288,980	VAALCO Energy, Inc.	1,297,520
265,841	W&T Offshore, Inc.	866,642
		14,601,102
	Paper & Forest Products — 1.0%
45,516	Clearwater Paper Corp. (a)	1,644,038
	Pharmaceuticals — 1.2%
260,153	Assertio Holdings, Inc. (a)	278,364
172,755	Omeros Corp. (a) (b)	564,909
55,889	Phibro Animal Health Corp., Class A	647,194
107,450	SIGA Technologies, Inc.	601,720
		2,092,187

Shares	Description	Value

	Professional Services — 2.6%
18,184	Barrett Business Services, Inc.	$2,105,707
19,242	CRA International, Inc.	1,902,072
15,281	RCM Technologies, Inc. (a)	443,760
		4,451,539
	Real Estate Management & Development — 0.6%
39,470	RMR Group (The), Inc., Class A	1,114,238
	Retail REITs — 0.9%
129,448	Whitestone REIT	1,590,916
	Semiconductors & Semiconductor Equipment — 1.7%
128,312	ACM Research, Inc., Class A (a)	2,507,217
31,414	inTEST Corp. (a)	427,230
		2,934,447
	Software — 0.1%
17,163	CoreCard Corp. (a)	237,364
	Specialty Retail — 2.8%
112,501	Arhaus, Inc. (a)	1,333,137
61,699	Big 5 Sporting Goods Corp. (b)	391,172
35,941	Build-A-Bear Workshop, Inc.	826,284
36,654	Haverty Furniture Cos., Inc.	1,301,217
28,407	OneWater Marine, Inc., Class A (a)	959,872
		4,811,682
	Technology Hardware, Storage & Peripherals — 0.6%
46,673	CompoSecure, Inc. (a) (b)	252,034
188,008	Eastman Kodak Co. (a)	733,231
		985,265
	Trading Companies & Distributors — 2.5%
36,451	DXP Enterprises, Inc. (a)	1,228,399
107,535	Hudson Technologies, Inc. (a)	1,450,647
55,920	Titan Machinery, Inc. (a)	1,614,970
		4,294,016
	Water Utilities — 1.5%
25,821	Artesian Resources Corp., Class A	1,070,280
41,110	Consolidated Water Co., Ltd.	1,463,516
		2,533,796
	Wireless Telecommunication Services — 0.6%
54,908	Spok Holdings, Inc.	849,976
392,573	Tingo Group, Inc. (a) (c)	270,875
		1,120,851
	Total Common Stocks	172,269,417
	(Cost $159,429,845)

See Notes to Financial Statements

Page 29

First Trust Dow Jones Select MicroCap Index Fund (FDM)

Portfolio of Investments (Continued)

December 31, 2023

Shares	Description	Value
MONEY MARKET FUNDS — 3.3%
5,614,589	Goldman Sachs Financial Square Treasury Obligations Fund - Institutional Class - 5.17% (d) (e)	$5,614,589
	(Cost $5,614,589)


	Total Investments — 103.2%	177,884,006
	(Cost $165,044,434)
	Net Other Assets and Liabilities — (3.2)%	(5,501,830 )
	Net Assets — 100.0%	$172,382,176

(a)	Non-income producing security.
(b)	All or a portion of this security is on loan (see Note 2D - Securities Lending in the Notes to Financial Statements). The remaining contractual maturity of all of the securities lending transactions is overnight and continuous. The aggregate value of such securities, including those sold and pending settlement, is $5,388,319 and the total value of the collateral held by the Fund is $5,614,589.
(c)	Pursuant to procedures adopted by the Trust’s Board of Trustees, this security has been determined to be illiquid by First Trust Advisors L.P., the Fund’s advisor.
(d)	Rate shown reflects yield as of December 31, 2023.
(e)	This security serves as collateral for securities on loan.

Valuation Inputs

A summary of the inputs used to value the Fund’s investments as of December 31, 2023 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements):

	Total Value at 12/31/2023	Level 1 Quoted Prices	Level 2 Significant Observable Inputs	Level 3 Significant Unobservable Inputs
Common Stocks:
Wireless Telecommunication Services	$ 1,120,851	$ 849,976	$ 270,875	$ —
Other Industry Categories*	171,148,566	171,148,566	—	—
Money Market Funds	5,614,589	5,614,589	—	—
Total Investments	$177,884,006	$177,613,131	$270,875	$—

*	See Portfolio of Investments for industry breakout.

Offsetting Assets and Liabilities

Offsetting assets and liabilities requires entities to disclose both gross and net information about instruments and transactions eligible for offset, and to disclose instruments and transactions subject to master netting or similar agreements (see Note 2C - Offsetting on the Statements of Assets and Liabilities in the Notes to Financial Statements).

The Fund’s loaned securities were all subject to an enforceable Securities Lending Agency Agreement. Securities lent in accordance with the Securities Lending Agency Agreement on a gross basis were as follows:

Securities Lending Agency Agreement
Total gross amount presented on the Statements of Assets and Liabilities(1)	$5,388,319
Non-cash Collateral(2)	(5,388,319 )
Net Amount	$—

(1)	The amount presented on the Statements of Assets and Liabilities, which is included in “Investments, at value,” is not offset and is shown on a gross basis.
(2)	At December 31, 2023, the value of the collateral received from each borrower exceeded the value of the related securities loaned. This amount is disclosed on the Portfolio of Investments.

See Notes to Financial Statements

Page 30

First Trust Morningstar Dividend Leaders Index Fund (FDL)

Portfolio of Investments

December 31, 2023

Shares	Description	Value
COMMON STOCKS — 99.7%
	Automobiles — 2.0%
6,622,647	Ford Motor Co.	$80,730,067
	Banks — 18.1%
209,167	Associated Banc-Corp.	4,474,082
108,593	Bank OZK	5,411,189
190,826	Cadence Bank	5,646,541
74,850	Cathay General Bancorp	3,336,065
2,543,968	Citigroup, Inc.	130,861,714
782,063	Citizens Financial Group, Inc.	25,917,568
373,336	Columbia Banking System, Inc.	9,960,604
235,773	Comerica, Inc.	13,158,491
121,246	East West Bancorp, Inc.	8,723,650
882,071	Fifth Third Bancorp	30,422,629
193,852	First Hawaiian, Inc.	4,431,457
743,260	First Horizon Corp.	10,524,562
184,551	First Interstate BancSystem, Inc., Class A	5,674,943
397,617	FNB Corp.	5,475,186
121,145	Glacier Bancorp, Inc.	5,005,711
2,201,245	Huntington Bancshares, Inc.	27,999,836
46,499	Independent Bank Corp.	3,060,099
1,777,617	KeyCorp	25,597,685
197,946	M&T Bank Corp.	27,134,438
1,518,773	New York Community Bancorp, Inc.	15,537,048
300,661	Old National Bancorp	5,078,164
531,258	PNC Financial Services Group (The), Inc.	82,265,301
1,566,824	Regions Financial Corp.	30,365,049
187,309	Synovus Financial Corp.	7,052,184
2,519,440	Truist Financial Corp.	93,017,725
2,293,169	U.S. Bancorp	99,248,354
166,373	United Bankshares, Inc.	6,247,306
124,044	United Community Banks, Inc.	3,629,527
587,878	Valley National Bancorp	6,384,355
169,606	Webster Financial Corp.	8,609,201
196,050	Zions Bancorp N.A.	8,600,714
		718,851,378
	Biotechnology — 8.4%
2,144,784	AbbVie, Inc.	332,377,176
	Capital Markets — 2.2%
242,824	Carlyle Group (The), Inc.	9,880,509
28,222	Cohen & Steers, Inc.	2,137,252
414,366	Franklin Resources, Inc.	12,343,963
233,683	Janus Henderson Group PLC	7,045,542
230,581	Northern Trust Corp.	19,456,425
325,703	T. Rowe Price Group, Inc.	35,074,956
		85,938,647
	Chemicals — 2.1%
134,254	Eastman Chemical Co.	12,058,694

Shares	Description	Value

	Chemicals (Continued)
328,154	International Flavors & Fragrances, Inc.	$26,570,629
420,058	LyondellBasell Industries N.V., Class A	39,939,115
52,453	Scotts Miracle-Gro (The) Co.	3,343,879
		81,912,317
	Construction & Engineering — 0.1%
154,839	MDU Resources Group, Inc.	3,065,812
	Consumer Finance — 0.3%
330,034	Ally Financial, Inc.	11,524,787
	Consumer Staples Distribution & Retail — 1.3%
1,929,571	Walgreens Boots Alliance, Inc.	50,381,099
	Containers & Packaging — 0.3%
3,712	Greif, Inc., Class B	245,029
78,205	Packaging Corp. of America	12,740,377
		12,985,406
	Diversified Telecommunication Services — 8.3%
8,724,921	Verizon Communications, Inc.	328,929,522
	Electric Utilities — 8.3%
75,933	ALLETE, Inc.	4,644,062
116,126	Avangrid, Inc.	3,763,644
1,010,404	Duke Energy Corp.	98,049,604
506,078	Edison International	36,179,516
281,892	Entergy Corp.	28,524,651
327,708	Evergy, Inc.	17,106,358
677,053	FirstEnergy Corp.	24,820,763
215,014	NRG Energy, Inc.	11,116,224
282,369	OGE Energy Corp.	9,863,149
157,328	Pinnacle West Capital Corp.	11,302,444
1,219,900	Southern (The) Co.	85,539,388
		330,909,803
	Financial Services — 0.3%
869,368	Western Union (The) Co.	10,362,867
	Gas Utilities — 0.5%
64,621	Southwest Gas Holdings, Inc.	4,093,740
71,929	Spire, Inc.	4,484,054
417,438	UGI Corp.	10,268,975
		18,846,769
	Household Durables — 0.4%
84,540	MDC Holdings, Inc.	4,670,835
105,383	Whirlpool Corp.	12,832,488
		17,503,323
	Industrial Conglomerates — 2.7%
968,408	3M Co.	105,866,363

See Notes to Financial Statements

Page 31

First Trust Morningstar Dividend Leaders Index Fund (FDL)

Portfolio of Investments (Continued)

December 31, 2023

Shares	Description	Value
COMMON STOCKS (Continued)
	Insurance — 3.1%
300,216	Fidelity National Financial, Inc.	$15,317,020
378,757	Lincoln National Corp.	10,215,076
610,642	MetLife, Inc.	40,381,756
553,085	Prudential Financial, Inc.	57,360,445
		123,274,297
	IT Services — 4.7%
1,136,279	International Business Machines Corp.	185,838,430
	Leisure Products — 0.3%
230,516	Hasbro, Inc.	11,770,147
	Metals & Mining — 0.0%
13,780	Arch Resources, Inc.	2,286,653
	Multi-Utilities — 0.3%
121,043	Avista Corp.	4,326,077
94,718	Black Hills Corp.	5,110,036
85,312	Northwestern Energy Group, Inc.	4,341,528
		13,777,641
	Oil, Gas & Consumable Fuels — 16.8%
2,258,228	Chevron Corp.	336,837,288
67,467	CVR Energy, Inc.	2,044,250
870,409	Devon Energy Corp.	39,429,528
138,254	HF Sinclair Corp.	7,682,775
975,156	ONEOK, Inc.	68,475,454
443,149	Phillips 66	59,000,858
403,543	Pioneer Natural Resources Co.	90,748,750
1,822,105	Williams (The) Cos., Inc.	63,463,917
		667,682,820
	Pharmaceuticals — 7.0%
9,661,448	Pfizer, Inc.	278,153,088
	Professional Services — 0.1%
57,015	ManpowerGroup, Inc.	4,530,982
	Specialty Retail — 0.6%
31,238	Advance Auto Parts, Inc.	1,906,455
273,600	Best Buy Co., Inc.	21,417,408
		23,323,863
	Textiles, Apparel & Luxury Goods — 0.1%
44,963	Carter’s, Inc.	3,367,279

Shares	Description	Value

	Tobacco — 11.4%
5,035,174	Altria Group, Inc.	$203,118,919
2,659,031	Philip Morris International, Inc.	250,161,637
		453,280,556


	Total Investments — 99.7%	3,957,471,092
	(Cost $3,982,375,224)
	Net Other Assets and Liabilities — 0.3%	13,326,914
	Net Assets — 100.0%	$3,970,798,006

Valuation Inputs

A summary of the inputs used to value the Fund’s investments as of December 31, 2023 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements):

	Total Value at 12/31/2023	Level 1 Quoted Prices	Level 2 Significant Observable Inputs	Level 3 Significant Unobservable Inputs
Common Stocks*	$ 3,957,471,092	$ 3,957,471,092	$ —	$ —

*	See Portfolio of Investments for industry breakout.

See Notes to Financial Statements

Page 32

First Trust US Equity Opportunities ETF (FPX)

Portfolio of Investments

December 31, 2023

Shares	Description	Value
COMMON STOCKS — 99.9%
	Aerospace & Defense — 0.9%
339,949	Leonardo DRS, Inc. (a)	$6,812,578
	Air Freight & Logistics — 0.2%
30,825	GXO Logistics, Inc. (a)	1,885,257
	Automobile Components — 0.6%
104,451	Mobileye Global, Inc., Class A (a)	4,524,817
	Automobiles — 0.8%
248,180	Rivian Automotive, Inc., Class A (a)	5,822,303
	Beverages — 0.1%
29,415	Vita Coco (The) Co., Inc. (a)	754,495
	Biotechnology — 8.1%
15,354	Apellis Pharmaceuticals, Inc. (a)	919,090
25,233	Arcellx, Inc. (a)	1,400,432
45,081	Bridgebio Pharma, Inc. (a)	1,819,920
37,488	Immunovant, Inc. (a)	1,579,369
9,776	Karuna Therapeutics, Inc. (a)	3,094,202
23,554	Legend Biotech Corp., ADR (a)	1,417,244
16,230	Nuvalent, Inc., Class A (a)	1,194,366
49,406	Regeneron Pharmaceuticals, Inc. (a)	43,392,796
104,163	Roivant Sciences Ltd. (a)	1,169,750
73,974	Vaxcyte, Inc. (a)	4,645,567
		60,632,736
	Building Products — 9.7%
114,823	AZEK (The) Co., Inc. (a)	4,391,980
31,964	Builders FirstSource, Inc. (a)	5,336,070
1,011,040	Carrier Global Corp.	58,084,248
166,132	Hayward Holdings, Inc. (a)	2,259,395
164,244	Masterbrand, Inc. (a)	2,439,024
		72,510,717
	Capital Markets — 2.9%
19,245	AssetMark Financial Holdings, Inc. (a)	576,388
202,297	Blue Owl Capital Corp.	2,985,904
30,998	Coinbase Global, Inc., Class A (a)	5,391,172
224,096	Robinhood Markets, Inc., Class A (a)	2,854,983
234,684	TPG, Inc.	10,131,308
		21,939,755
	Commercial Services & Supplies — 1.1%
41,835	ACV Auctions, Inc., Class A (a)	633,800
63,828	Veralto Corp.	5,250,491
101,628	Vestis Corp.	2,148,416
		8,032,707

Shares	Description	Value

	Construction Materials — 0.4%
43,975	Knife River Corp. (a)	$2,910,265
	Diversified Consumer Services — 2.2%
39,531	Coursera, Inc. (a)	765,715
70,767	Duolingo, Inc. (a)	16,053,494
		16,819,209
	Electric Utilities — 2.1%
132,422	Constellation Energy Corp.	15,478,808
	Electrical Equipment — 2.1%
9,670	Atkore, Inc. (a)	1,547,200
46,099	Fluence Energy, Inc. (a)	1,099,461
74,961	NEXTracker, Inc., Class A (a)	3,511,923
197,691	Vertiv Holdings Co., Class A	9,495,099
		15,653,683
	Electronic Equipment, Instruments & Components — 1.4%
25,326	Insight Enterprises, Inc. (a)	4,487,514
171,966	Vontier Corp.	5,941,425
		10,428,939
	Entertainment — 1.8%
98,903	Endeavor Group Holdings, Inc., Class A	2,346,968
80,817	ROBLOX Corp., Class A (a)	3,694,953
631,922	Warner Bros. Discovery, Inc. (a)	7,191,273
		13,233,194
	Financial Services — 5.0%
58,643	Affirm Holdings, Inc. (a)	2,881,717
230,745	Block, Inc. (a)	17,848,126
163,522	Corebridge Financial, Inc.	3,541,886
82,770	Enact Holdings, Inc.	2,391,225
20,601	Jackson Financial, Inc., Class A	1,054,771
513,681	Rocket Cos., Inc., Class A (a) (b)	7,438,101
32,043	Shift4 Payments, Inc., Class A (a)	2,382,077
		37,537,903
	Ground Transportation — 6.7%
30,320	RXO, Inc. (a)	705,243
799,900	Uber Technologies, Inc. (a)	49,249,843
		49,955,086
	Health Care Equipment & Supplies — 1.4%
117,970	GE HealthCare Technologies, Inc.	9,121,440
12,646	Glaukos Corp. (a)	1,005,231
		10,126,671

See Notes to Financial Statements

Page 33

First Trust US Equity Opportunities ETF (FPX)

Portfolio of Investments (Continued)

December 31, 2023

Shares	Description	Value
COMMON STOCKS (Continued)
	Health Care Providers & Services — 0.6%
66,702	HealthEquity, Inc. (a)	$4,422,343
	Hotels, Restaurants & Leisure — 11.4%
352,872	Airbnb, Inc., Class A (a)	48,039,994
227,019	DoorDash, Inc., Class A (a)	22,449,909
423,063	DraftKings, Inc., Class A (a)	14,912,971
		85,402,874
	Insurance — 1.3%
97,563	F&G Annuities & Life, Inc.	4,487,898
70,526	Fidelity National Financial, Inc.	3,598,237
33,720	Ryan Specialty Holdings, Inc. (a)	1,450,634
		9,536,769
	IT Services — 4.6%
52,206	Cloudflare, Inc., Class A (a)	4,346,672
118,925	Kyndryl Holdings, Inc. (a)	2,471,261
132,267	Snowflake, Inc., Class A (a)	26,321,133
35,234	Squarespace, Inc., Class A (a)	1,163,074
		34,302,140
	Machinery — 8.2%
44,169	Crane Co.	5,218,126
78,092	Esab Corp.	6,764,329
265,135	Otis Worldwide Corp.	23,721,628
504,800	Symbotic, Inc. (a) (b)	25,911,384
		61,615,467
	Oil, Gas & Consumable Fuels — 0.9%
24,300	Civitas Resources, Inc.	1,661,634
8,035	CONSOL Energy, Inc.	807,759
25,129	DT Midstream, Inc.	1,377,069
200,512	Permian Resources Corp.	2,726,963
		6,573,425
	Personal Care Products — 2.3%
118,891	BellRing Brands, Inc. (a)	6,590,128
496,246	Kenvue, Inc.	10,684,177
		17,274,305
	Pharmaceuticals — 0.1%
11,813	Structure Therapeutics, Inc., ADR (a)	481,498
	Professional Services — 0.3%
40,771	Parsons Corp. (a)	2,556,749
	Retail REITs — 0.7%
139,043	Phillips Edison & Co., Inc.	5,072,289

Shares	Description	Value

	Semiconductors & Semiconductor Equipment — 3.5%
83,435	Credo Technology Group Holding Ltd. (a)	$1,624,479
143,218	GLOBALFOUNDRIES, Inc. (a) (b)	8,679,011
190,853	ON Semiconductor Corp. (a)	15,941,951
		26,245,441
	Software — 17.0%
87,018	AppLovin Corp., Class A (a)	3,467,667
787,667	Aurora Innovation, Inc. (a)	3,442,105
211,195	Bentley Systems, Inc., Class B	11,020,155
129,365	Braze, Inc., Class A (a)	6,873,162
63,193	Clearwater Analytics Holdings, Inc., Class A (a)	1,265,756
34,227	Crowdstrike Holdings, Inc., Class A (a)	8,738,838
76,520	Freshworks, Inc., Class A (a)	1,797,455
191,651	Gitlab, Inc., Class A (a)	12,066,347
113,163	Informatica, Inc., Class A (a)	3,212,697
37,496	Instructure Holdings, Inc. (a)	1,012,767
58,602	Intapp, Inc. (a)	2,228,048
67,036	Klaviyo, Inc., Class A (a)	1,862,260
281,940	Palantir Technologies, Inc., Class A (a)	4,840,910
37,185	Procore Technologies, Inc. (a)	2,573,946
1,539,831	Samsara, Inc., Class A (a)	51,399,559
77,398	SentinelOne, Inc., Class A (a)	2,123,801
110,019	UiPath, Inc., Class A (a)	2,732,872
49,238	Unity Software, Inc. (a)	2,013,342
158,577	Vertex, Inc., Class A (a)	4,272,064
		126,943,751
	Technology Hardware, Storage & Peripherals — 0.1%
53,047	IonQ, Inc. (a)	657,252
	Trading Companies & Distributors — 1.4%
252,143	Core & Main, Inc., Class A (a)	10,189,099
	Total Common Stocks	746,332,525
	(Cost $628,898,764)

See Notes to Financial Statements

Page 34

First Trust US Equity Opportunities ETF (FPX)

Portfolio of Investments (Continued)

December 31, 2023

Principal Value	Description	Value
REPURCHASE AGREEMENTS — 3.0%
$10,765,272	Bank of America Corp., 5.32% (c), dated 12/29/23, due 01/02/24, with a maturity value of $10,773,226. Collateralized by U.S. Treasury Securities, interest rates of 0.00% to 3.13%, due 08/31/27 to 05/15/48. The value of the collateral including accrued interest is $10,980,577. (d)	$10,765,272
11,204,669	JPMorgan Chase & Co., 5.33% (c), dated 12/29/23, due 01/02/24, with a maturity value of $11,212,964. Collateralized by U.S. Treasury Securities, interest rates of 2.50% to 5.00%, due 02/15/29 to 08/15/53. The value of the collateral including accrued interest is $11,428,763. (d)	11,204,669
	Total Repurchase Agreements	21,969,941
	(Cost $21,969,941)


	Total Investments — 102.9%	768,302,466
	(Cost $650,868,705)
	Net Other Assets and Liabilities — (2.9)%	(21,392,031 )
	Net Assets — 100.0%	$746,910,435

(a)	Non-income producing security.
(b)	All or a portion of this security is on loan (see Note 2D - Securities Lending in the Notes to Financial Statements). The remaining contractual maturity of all of the securities lending transactions is overnight and continuous. The aggregate value of such securities, including those sold and pending settlement, is $20,663,128 and the total value of the collateral held by the Fund is $21,969,941.
(c)	Rate shown reflects yield as of December 31, 2023.
(d)	This security serves as collateral for securities on loan.

Abbreviations throughout the Portfolio of Investments:
ADR	– American Depositary Receipt

Valuation Inputs

A summary of the inputs used to value the Fund’s investments as of December 31, 2023 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements):

	Total Value at 12/31/2023	Level 1 Quoted Prices	Level 2 Significant Observable Inputs	Level 3 Significant Unobservable Inputs
Common Stocks*	$ 746,332,525	$ 746,332,525	$ —	$ —
Repurchase Agreements	21,969,941	—	21,969,941	—
Total Investments	$768,302,466	$746,332,525	$21,969,941	$—

*	See Portfolio of Investments for industry breakout.

Offsetting Assets and Liabilities

Securities Lending Agency Agreement
Total gross amount presented on the Statements of Assets and Liabilities(1)	$20,663,128
Non-cash Collateral(2)	(20,663,128 )
Net Amount	$—

(1)	The amount presented on the Statements of Assets and Liabilities, which is included in “Investments, at value,” is not offset and is shown on a gross basis.
(2)	At December 31, 2023, the value of the collateral received from each borrower exceeded the value of the related securities loaned. This amount is disclosed on the Portfolio of Investments.

See Notes to Financial Statements

Page 35

First Trust NYSE® Arca® Biotechnology Index Fund (FBT)

Portfolio of Investments

December 31, 2023

Shares	Description	Value
COMMON STOCKS — 100.0%
	Biotechnology — 78.8%
1,702,627	ACADIA Pharmaceuticals, Inc. (a)	$53,309,251
1,764,743	Agios Pharmaceuticals, Inc. (a)	39,300,827
1,419,086	Alkermes PLC (a)	39,365,446
233,205	Alnylam Pharmaceuticals, Inc. (a)	44,637,769
135,326	Amgen, Inc.	38,976,594
79,420	Argenx SE, ADR (a)	30,213,751
218,759	BeiGene Ltd., ADR (a)	39,455,373
146,554	Biogen, Inc. (a)	37,923,779
459,508	BioMarin Pharmaceutical, Inc. (a)	44,305,761
415,028	BioNTech SE, ADR (a) (b)	43,802,055
587,241	Exact Sciences Corp. (a)	43,444,089
1,787,314	Exelixis, Inc. (a)	42,877,663
1,264,417	Genmab A/S, ADR (a) (b)	40,259,037
484,964	Gilead Sciences, Inc.	39,286,934
4,663,808	Grifols S.A., ADR (a)	53,913,620
684,386	Incyte Corp. (a)	42,972,597
817,379	Ionis Pharmaceuticals, Inc. (a)	41,351,204
469,281	Moderna, Inc. (a)	46,669,995
341,635	Neurocrine Biosciences, Inc. (a)	45,013,828
46,669	Regeneron Pharmaceuticals, Inc. (a)	40,988,916
339,300	Sarepta Therapeutics, Inc. (a)	32,718,699
1,139,197	Ultragenyx Pharmaceutical, Inc. (a)	54,476,400
167,370	United Therapeutics Corp. (a)	36,802,989
104,267	Vertex Pharmaceuticals, Inc. (a)	42,425,200
		1,014,491,777
	Life Sciences Tools & Services — 21.2%
588,890	Bio-Techne Corp.	45,438,752
203,496	Charles River Laboratories International, Inc. (a)	48,106,455
315,364	Illumina, Inc. (a)	43,911,283
204,655	IQVIA Holdings, Inc. (a)	47,353,074
36,982	Mettler-Toledo International, Inc. (a)	44,857,687
1,005,335	QIAGEN N.V. (a)	43,661,699
		273,328,950
	Total Common Stocks	1,287,820,727
	(Cost $1,188,555,755)

Shares	Description	Value
MONEY MARKET FUNDS — 0.1%
1,262,244	Goldman Sachs Financial Square Treasury Obligations Fund - Institutional Class - 5.17% (c) (d)	$1,262,244
	(Cost $1,262,244)


	Total Investments — 100.1%	1,289,082,971
	(Cost $1,189,817,999)
	Net Other Assets and Liabilities — (0.1)%	(1,329,448 )
	Net Assets — 100.0%	$1,287,753,523

(a)	Non-income producing security.
(b)	All or a portion of this security is on loan (see Note 2D - Securities Lending in the Notes to Financial Statements). The remaining contractual maturity of all of the securities lending transactions is overnight and continuous. The aggregate value of such securities, including those sold and pending settlement, is $1,233,882 and the total value of the collateral held by the Fund is $1,262,244.
(c)	Rate shown reflects yield as of December 31, 2023.
(d)	This security serves as collateral for securities on loan.

Abbreviations throughout the Portfolio of Investments:
ADR	– American Depositary Receipt

Valuation Inputs

A summary of the inputs used to value the Fund’s investments as of December 31, 2023 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements):

	Total Value at 12/31/2023	Level 1 Quoted Prices	Level 2 Significant Observable Inputs	Level 3 Significant Unobservable Inputs
Common Stocks*	$ 1,287,820,727	$ 1,287,820,727	$ —	$ —
Money Market Funds	1,262,244	1,262,244	—	—
Total Investments	$1,289,082,971	$1,289,082,971	$—	$—

*	See Portfolio of Investments for industry breakout.

Offsetting Assets and Liabilities

See Notes to Financial Statements

Page 37

First Trust Dow Jones Internet Index Fund (FDN)

Portfolio of Investments

December 31, 2023

Shares	Description	Value
COMMON STOCKS — 100.0%
	Broadline Retail — 12.5%
3,657,695	Amazon.com, Inc. (a)	$555,750,178
2,626,885	eBay, Inc.	114,584,724
943,747	Etsy, Inc. (a)	76,490,694
		746,825,596
	Communications Equipment — 10.5%
761,809	Arista Networks, Inc. (a)	179,413,638
1,406,154	Ciena Corp. (a)	63,290,991
5,402,746	Cisco Systems, Inc.	272,946,728
12,977,409	CommScope Holding Co., Inc. (a)	36,596,293
2,561,925	Juniper Networks, Inc.	75,525,549
		627,773,199
	Entertainment — 6.7%
580,122	Netflix, Inc. (a)	282,449,800
2,603,860	ROBLOX Corp., Class A (a)	119,048,479
		401,498,279
	Financial Services — 3.1%
2,965,398	PayPal Holdings, Inc. (a)	182,105,091
	Health Care Technology — 3.0%
2,393,583	Teladoc Health, Inc. (a)	51,581,714
666,650	Veeva Systems, Inc., Class A (a)	128,343,458
		179,925,172
	Hotels, Restaurants & Leisure — 6.6%
1,252,718	Airbnb, Inc., Class A (a)	170,545,028
1,298,240	DoorDash, Inc., Class A (a)	128,382,954
2,695,623	DraftKings, Inc., Class A (a)	95,020,711
		393,948,693
	Interactive Media & Services — 23.8%
2,279,655	Alphabet, Inc., Class A (a)	318,445,007
1,918,620	Alphabet, Inc., Class C (a)	270,391,117
2,217,137	Match Group, Inc. (a)	80,925,501
1,300,826	Meta Platforms, Inc., Class A (a)	460,440,371
3,116,807	Pinterest, Inc., Class A (a)	115,446,531
6,283,622	Snap, Inc., Class A (a)	106,381,720
3,480,500	ZoomInfo Technologies, Inc. (a)	64,354,445
		1,416,384,692
	IT Services — 10.8%
859,426	Akamai Technologies, Inc. (a)	101,713,067
1,456,189	Cloudflare, Inc., Class A (a)	121,242,296
2,235,143	Fastly, Inc., Class A (a)	39,785,545
882,011	GoDaddy, Inc., Class A (a)	93,634,288
1,110,715	Okta, Inc. (a)	100,553,029
933,314	Snowflake, Inc., Class A (a)	185,729,486
		642,657,711

Shares	Description	Value

	Software — 21.8%
664,224	Atlassian Corp., Class A (a)	$157,992,321
1,978,097	Box, Inc., Class A (a)	50,659,064
2,437,121	Confluent, Inc., Class A (a)	57,028,631
1,182,235	Datadog, Inc., Class A (a)	143,499,684
1,592,745	DocuSign, Inc. (a)	94,688,690
2,380,310	Dropbox, Inc., Class A (a)	70,171,539
1,783,665	Nutanix, Inc., Class A (a)	85,062,984
1,144,670	Salesforce, Inc. (a)	301,208,464
1,366,072	Smartsheet, Inc., Class A (a)	65,325,563
616,346	Workday, Inc., Class A (a)	170,148,477
1,415,421	Zoom Video Communications, Inc., Class A (a)	101,782,924
		1,297,568,341
	Specialty Retail — 1.2%
1,331,222	Carvana Co. (a)	70,474,893
	Total Common Stocks	5,959,161,667
	(Cost $6,466,209,746)
MONEY MARKET FUNDS — 0.1%
2,925,653	Morgan Stanley Institutional Liquidity Funds - Treasury Portfolio - Institutional Class - 5.22% (b)	2,925,653
	(Cost $2,925,653)


	Total Investments — 100.1%	5,962,087,320
	(Cost $6,469,135,399)
	Net Other Assets and Liabilities — (0.1)%	(3,177,698 )
	Net Assets — 100.0%	$5,958,909,622

(a)	Non-income producing security.
(b)	Rate shown reflects yield as of December 31, 2023.

Valuation Inputs

A summary of the inputs used to value the Fund’s investments as of December 31, 2023 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements):

	Total Value at 12/31/2023	Level 1 Quoted Prices	Level 2 Significant Observable Inputs	Level 3 Significant Unobservable Inputs
Common Stocks*	$ 5,959,161,667	$ 5,959,161,667	$ —	$ —
Money Market Funds	2,925,653	2,925,653	—	—
Total Investments	$5,962,087,320	$5,962,087,320	$—	$—

*	See Portfolio of Investments for industry breakout.

See Notes to Financial Statements

Page 39

First Trust Capital Strength ETF (FTCS)

Portfolio of Investments

December 31, 2023

Shares	Description	Value
COMMON STOCKS — 99.8%
	Aerospace & Defense — 5.7%
680,432	General Dynamics Corp.	$176,687,778
359,906	Lockheed Martin Corp.	163,123,795
329,131	Northrop Grumman Corp.	154,079,386
		493,890,959
	Air Freight & Logistics — 3.9%
1,387,676	Expeditors International of Washington, Inc.	176,512,387
1,051,991	United Parcel Service, Inc., Class B	165,404,545
		341,916,932
	Beverages — 6.0%
2,929,451	Coca-Cola (The) Co.	172,632,547
3,198,482	Monster Beverage Corp. (a)	184,264,548
999,127	PepsiCo, Inc.	169,691,730
		526,588,825
	Biotechnology — 9.7%
1,093,212	AbbVie, Inc.	169,415,064
620,938	Biogen, Inc. (a)	160,680,126
2,054,760	Gilead Sciences, Inc.	166,456,108
197,733	Regeneron Pharmaceuticals, Inc. (a)	173,666,916
441,774	Vertex Pharmaceuticals, Inc. (a)	179,753,423
		849,971,637
	Capital Markets — 4.5%
512,062	Ameriprise Financial, Inc.	194,496,510
516,345	Moody’s Corp.	201,663,703
		396,160,213
	Chemicals — 1.8%
573,858	Air Products and Chemicals, Inc.	157,122,320
	Commercial Services & Supplies — 2.1%
3,658,963	Copart, Inc. (a)	179,289,187
	Communications Equipment — 1.7%
3,020,220	Cisco Systems, Inc.	152,581,514
	Consumer Staples Distribution & Retail — 4.0%
289,116	Costco Wholesale Corp.	190,839,689
1,006,930	Walmart, Inc.	158,742,515
		349,582,204
	Electrical Equipment — 1.9%
1,747,679	Emerson Electric Co.	170,101,597

Shares	Description	Value

	Electronic Equipment, Instruments & Components — 4.5%
2,001,755	Amphenol Corp., Class A	$198,433,973
1,359,356	TE Connectivity Ltd.	190,989,518
		389,423,491
	Financial Services — 4.1%
415,860	Mastercard, Inc., Class A	177,368,449
684,980	Visa, Inc., Class A	178,334,543
		355,702,992
	Food Products — 3.9%
2,194,376	Archer-Daniels-Midland Co.	158,477,835
2,493,920	Mondelez International, Inc., Class A	180,634,625
		339,112,460
	Ground Transportation — 2.1%
5,197,017	CSX Corp.	180,180,579
	Health Care Equipment & Supplies — 2.1%
601,680	Stryker Corp.	180,179,093
	Health Care Providers & Services — 3.8%
846,939	Cencora, Inc.	173,944,332
303,323	UnitedHealth Group, Inc.	159,690,460
		333,634,792
	Household Durables — 2.3%
1,547,835	Garmin Ltd.	198,958,711
	Household Products — 3.8%
2,181,794	Colgate-Palmolive Co.	173,910,800
1,079,772	Procter & Gamble (The) Co.	158,229,789
		332,140,589
	Industrial Conglomerates — 2.1%
881,647	Honeywell International, Inc.	184,890,192
	Insurance — 5.8%
2,060,585	Aflac, Inc.	169,998,262
851,814	Marsh & McLennan Cos., Inc.	161,393,199
2,536,924	W.R. Berkley Corp.	179,411,265
		510,802,726
	IT Services — 4.5%
538,251	Accenture PLC, Class A	188,877,659
458,366	Gartner, Inc. (a)	206,773,486
		395,651,145
	Machinery — 2.3%
2,025,656	PACCAR, Inc.	197,805,309
	Oil, Gas & Consumable Fuels — 1.6%
958,221	Chevron Corp.	142,928,244

See Notes to Financial Statements

Page 40

First Trust Capital Strength ETF (FTCS)

Portfolio of Investments (Continued)

December 31, 2023

Shares	Description	Value
COMMON STOCKS (Continued)
	Pharmaceuticals — 3.5%
2,831,387	Bristol-Myers Squibb Co.	$145,278,467
1,044,839	Johnson & Johnson	163,768,065
		309,046,532
	Professional Services — 3.6%
661,452	Automatic Data Processing, Inc.	154,098,472
1,378,104	Paychex, Inc.	164,145,968
		318,244,440
	Specialty Retail — 6.3%
558,154	Home Depot (The), Inc.	193,428,269
1,382,154	Ross Stores, Inc.	191,276,292
1,794,166	TJX (The) Cos., Inc.	168,310,712
		553,015,273
	Technology Hardware, Storage & Peripherals — 2.2%
2,151,839	NetApp, Inc.	189,706,126


	Total Investments — 99.8%	8,728,628,082
	(Cost $7,816,825,321)
	Net Other Assets and Liabilities — 0.2%	15,356,557
	Net Assets — 100.0%	$8,743,984,639

(a)	Non-income producing security.

Valuation Inputs

A summary of the inputs used to value the Fund’s investments as of December 31, 2023 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements):

	Total Value at 12/31/2023	Level 1 Quoted Prices	Level 2 Significant Observable Inputs	Level 3 Significant Unobservable Inputs
Common Stocks*	$ 8,728,628,082	$ 8,728,628,082	$ —	$ —

*	See Portfolio of Investments for industry breakout.

See Notes to Financial Statements

Page 41

First Trust Value Line® Dividend Index Fund (FVD)

Portfolio of Investments

December 31, 2023

Shares	Description	Value
COMMON STOCKS — 99.8%
	Aerospace & Defense — 3.1%
259,102	General Dynamics Corp.	$67,281,016
316,536	L3Harris Technologies, Inc.	66,668,812
147,460	Lockheed Martin Corp.	66,834,771
142,918	Northrop Grumman Corp.	66,905,633
789,822	RTX Corp.	66,455,623
		334,145,855
	Air Freight & Logistics — 1.2%
760,851	C.H. Robinson Worldwide, Inc.	65,729,918
420,076	United Parcel Service, Inc., Class B	66,048,549
		131,778,467
	Automobile Components — 0.6%
2,024,535	Gentex Corp.	66,121,313
	Automobiles — 0.6%
369,109	Toyota Motor Corp., ADR	67,687,208
	Banks — 3.1%
670,754	Bank of Montreal	66,364,401
1,360,058	Canadian Imperial Bank of Commerce	65,473,192
394,232	JPMorgan Chase & Co.	67,058,863
651,148	Royal Bank of Canada	65,850,597
1,025,085	Toronto-Dominion (The) Bank	66,240,993
		330,988,046
	Beverages — 3.1%
1,150,711	Brown-Forman Corp., Class B	65,705,598
1,133,615	Coca-Cola (The) Co.	66,803,932
455,405	Diageo PLC, ADR	66,334,292
2,008,607	Keurig Dr Pepper, Inc.	66,926,785
393,134	PepsiCo, Inc.	66,769,879
		332,540,486
	Biotechnology — 1.9%
429,338	AbbVie, Inc.	66,534,510
233,832	Amgen, Inc.	67,348,293
830,326	Gilead Sciences, Inc.	67,264,709
		201,147,512
	Building Products — 1.2%
811,048	A.O. Smith Corp.	66,862,797
1,151,909	Johnson Controls International PLC	66,396,035
		133,258,832
	Capital Markets — 2.5%
309,052	CME Group, Inc.	65,086,351
173,961	Goldman Sachs Group (The), Inc.	67,108,935
1,151,909	Nasdaq, Inc.	66,971,989
610,768	T. Rowe Price Group, Inc.	65,773,606
		264,940,881

Shares	Description	Value

	Chemicals — 2.4%
241,511	Air Products and Chemicals, Inc.	$66,125,712
119,240	NewMarket Corp.	65,084,769
443,479	PPG Industries, Inc.	66,322,284
697,463	Stepan Co.	65,945,127
		263,477,892
	Commercial Services & Supplies — 1.2%
1,120,980	Brady Corp., Class A	65,790,316
373,956	Waste Management, Inc.	66,975,520
		132,765,836
	Communications Equipment — 1.2%
1,320,296	Cisco Systems, Inc.	66,701,354
2,243,475	Juniper Networks, Inc.	66,137,643
		132,838,997
	Consumer Staples Distribution & Retail — 1.2%
1,468,032	Kroger (The) Co.	67,103,743
424,424	Walmart, Inc.	66,910,443
		134,014,186
	Containers & Packaging — 2.4%
328,800	Avery Dennison Corp.	66,470,208
404,809	Packaging Corp. of America	65,947,434
1,449,443	Silgan Holdings, Inc.	65,587,296
1,181,640	Sonoco Products Co.	66,018,227
		264,023,165
	Electric Utilities — 11.1%
1,076,095	ALLETE, Inc.	65,813,970
1,303,446	Alliant Energy Corp.	66,866,780
822,301	American Electric Power Co., Inc.	66,787,287
686,287	Duke Energy Corp.	66,597,290
661,531	Entergy Corp.	66,940,322
1,281,802	Evergy, Inc.	66,910,064
1,080,476	Eversource Energy	66,686,979
1,868,403	Exelon Corp.	67,075,668
1,621,109	Fortis, Inc.	66,676,213
677,392	IDACORP, Inc.	66,601,181
1,102,548	NextEra Energy, Inc.	66,968,766
1,897,783	OGE Energy Corp.	66,289,560
751,638	Otter Tail Corp.	63,866,681
930,407	Pinnacle West Capital Corp.	66,840,439
1,582,087	PNM Resources, Inc.	65,814,819
1,534,190	Portland General Electric Co.	66,491,795
955,857	Southern (The) Co.	67,024,693
1,066,416	Xcel Energy, Inc.	66,021,815
		1,196,274,322

See Notes to Financial Statements

Page 42

First Trust Value Line® Dividend Index Fund (FVD)

Portfolio of Investments (Continued)

December 31, 2023

Shares	Description	Value
COMMON STOCKS (Continued)
	Electrical Equipment — 1.2%
680,728	Emerson Electric Co.	$66,255,256
201,844	Hubbell, Inc.	66,392,547
		132,647,803
	Electronic Equipment, Instruments & Components — 0.6%
469,713	TE Connectivity Ltd.	65,994,676
	Food Products — 6.8%
917,040	Archer-Daniels-Midland Co.	66,228,629
2,950,418	Flowers Foods, Inc.	66,413,909
1,026,036	General Mills, Inc.	66,835,985
361,968	Hershey (The) Co.	67,485,314
2,086,906	Hormel Foods Corp.	67,010,552
607,974	Ingredion, Inc.	65,983,418
394,256	J & J Snack Foods Corp.	65,895,948
529,846	J.M. Smucker (The) Co.	66,961,937
405,527	Lancaster Colony Corp.	67,475,638
973,952	McCormick & Co., Inc.	66,637,796
925,736	Mondelez International, Inc., Class A	67,051,058
		733,980,184
	Gas Utilities — 3.1%
573,220	Atmos Energy Corp.	66,436,198
622,628	Chesapeake Utilities Corp.	65,768,196
1,480,472	New Jersey Resources Corp.	65,999,442
1,024,135	ONE Gas, Inc.	65,257,882
1,048,725	Spire, Inc.	65,377,516
		328,839,234
	Ground Transportation — 1.9%
528,748	Canadian National Railway Co.	66,426,611
280,884	Norfolk Southern Corp.	66,395,360
270,635	Union Pacific Corp.	66,473,369
		199,295,340
	Health Care Equipment & Supplies — 2.5%
607,751	Abbott Laboratories	66,895,152
1,720,695	Baxter International, Inc.	66,522,069
272,849	Becton Dickinson & Co.	66,528,772
806,615	Medtronic PLC	66,448,944
		266,394,937
	Health Care Providers & Services — 1.9%
840,310	CVS Health Corp.	66,350,877
485,408	Quest Diagnostics, Inc.	66,928,055
127,655	UnitedHealth Group, Inc.	67,206,528
		200,485,460

Shares	Description	Value

	Hotels, Restaurants & Leisure — 1.9%
226,676	McDonald’s Corp.	$67,211,701
693,890	Starbucks Corp.	66,620,379
509,632	Yum! Brands, Inc.	66,588,517
		200,420,597
	Household Durables — 0.6%
514,968	Garmin Ltd.	66,193,987
	Household Products — 3.1%
467,660	Clorox (The) Co.	66,683,639
839,882	Colgate-Palmolive Co.	66,946,994
552,787	Kimberly-Clark Corp.	67,169,148
454,873	Procter & Gamble (The) Co.	66,657,090
2,455,046	Reynolds Consumer Products, Inc.	65,893,435
		333,350,306
	Industrial Conglomerates — 0.6%
319,093	Honeywell International, Inc.	66,916,993
	Insurance — 5.6%
812,341	Aflac, Inc.	67,018,132
480,770	Allstate (The) Corp.	67,298,184
399,159	Assurant, Inc.	67,254,300
298,936	Chubb Ltd.	67,559,536
200,604	Erie Indemnity Co., Class A	67,186,292
546,330	Hanover Insurance Group (The), Inc.	66,335,389
354,051	Marsh & McLennan Cos., Inc.	67,082,043
1,297,079	Sun Life Financial, Inc.	67,266,517
354,826	Travelers (The) Cos., Inc.	67,590,805
		604,591,198
	IT Services — 2.5%
187,831	Accenture PLC, Class A	65,911,776
749,599	Amdocs Ltd.	65,882,256
879,611	Cognizant Technology Solutions Corp., Class A	66,437,019
3,598,074	Infosys Ltd., ADR	66,132,600
		264,363,651
	Machinery — 3.1%
224,552	Caterpillar, Inc.	66,393,290
277,192	Cummins, Inc.	66,406,888
1,013,040	Donaldson Co., Inc.	66,202,164
251,713	Illinois Tool Works, Inc.	65,933,703
228,981	Snap-on, Inc.	66,138,872
		331,074,917
	Media — 0.6%
1,511,139	Comcast Corp., Class A	66,263,445
	Multi-Utilities — 5.5%
924,962	Ameren Corp.	66,911,751
1,845,038	Avista Corp.	65,941,658
1,223,674	Black Hills Corp.	66,017,212

See Notes to Financial Statements

Page 43

First Trust Value Line® Dividend Index Fund (FVD)

Portfolio of Investments (Continued)

December 31, 2023

Shares	Description	Value
COMMON STOCKS (Continued)
	Multi-Utilities (Continued)
735,396	Consolidated Edison, Inc.	$66,898,974
602,562	DTE Energy Co.	66,438,486
1,292,783	Northwestern Energy Group, Inc.	65,789,727
1,093,287	Public Service Enterprise Group, Inc.	66,854,500
891,543	Sempra	66,625,009
793,690	WEC Energy Group, Inc.	66,804,887
		598,282,204
	Oil, Gas & Consumable Fuels — 0.6%
1,206,549	DT Midstream, Inc.	66,118,885
	Personal Care Products — 0.6%
1,379,274	Unilever PLC, ADR	66,867,204
	Pharmaceuticals — 4.4%
998,262	AstraZeneca PLC, ADR	67,232,946
1,290,270	Bristol-Myers Squibb Co.	66,203,754
425,161	Johnson & Johnson	66,639,735
616,784	Merck & Co., Inc.	67,241,791
673,610	Novartis AG, ADR	68,014,402
2,336,657	Pfizer, Inc.	67,272,355
1,352,574	Sanofi, ADR	67,263,505
		469,868,488
	Professional Services — 4.3%
285,474	Automatic Data Processing, Inc.	66,506,878
521,032	Booz Allen Hamilton Holding Corp.	66,645,203
328,601	Broadridge Financial Solutions, Inc.	67,609,656
1,235,287	CSG Systems International, Inc.	65,729,621
1,917,517	Genpact Ltd.	66,557,015
552,374	Paychex, Inc.	65,793,267
757,382	Robert Half, Inc.	66,589,026
		465,430,666
	Semiconductors & Semiconductor Equipment — 1.8%
333,809	Analog Devices, Inc.	66,281,115
635,562	Taiwan Semiconductor Manufacturing Co., Ltd., ADR	66,098,448
388,644	Texas Instruments, Inc.	66,248,256
		198,627,819
	Software — 1.8%
1,564,197	Open Text Corp.	65,727,558
625,147	Oracle Corp.	65,909,248
433,376	SAP SE, ADR	66,995,596
		198,632,402

Shares	Description	Value

	Specialized REITs — 1.9%
306,995	American Tower Corp.	$66,274,081
574,308	Crown Castle, Inc.	66,154,538
219,905	Public Storage	67,071,025
		199,499,644
	Specialty Retail — 1.9%
190,045	Home Depot (The), Inc.	65,860,095
297,929	Lowe’s Cos., Inc.	66,304,099
315,020	Tractor Supply Co.	67,738,750
		199,902,944
	Trading Companies & Distributors — 1.8%
1,014,275	Fastenal Co.	65,694,592
645,888	MSC Industrial Direct Co., Inc., Class A	65,402,619
155,196	Watsco, Inc.	66,496,830
		197,594,041
	Water Utilities — 1.2%
811,842	American States Water Co.	65,288,333
974,522	Middlesex Water Co.	63,948,134
		129,236,467
	Wireless Telecommunication Services — 1.2%
1,423,641	Rogers Communications, Inc., Class B	66,640,635
423,289	T-Mobile US, Inc.	67,865,926
		134,506,561


	Total Investments — 99.8%	10,771,383,051
	(Cost $9,867,772,435)
	Net Other Assets and Liabilities — 0.2%	22,479,910
	Net Assets — 100.0%	$10,793,862,961

Abbreviations throughout the Portfolio of Investments:
ADR	– American Depositary Receipt

Valuation Inputs

A summary of the inputs used to value the Fund’s investments as of December 31, 2023 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements):

	Total Value at 12/31/2023	Level 1 Quoted Prices	Level 2 Significant Observable Inputs	Level 3 Significant Unobservable Inputs
Common Stocks*	$ 10,771,383,051	$ 10,771,383,051	$ —	$ —

*	See Portfolio of Investments for industry breakout.

See Notes to Financial Statements

Page 44

First Trust Growth Strength ETF (FTGS)

Portfolio of Investments

December 31, 2023

Shares	Description	Value
COMMON STOCKS — 99.9%
	Air Freight & Logistics — 1.9%
9,688	Expeditors International of Washington, Inc.	$1,232,314
	Automobiles — 2.0%
5,265	Tesla, Inc. (a)	1,308,247
	Biotechnology — 3.8%
1,381	Regeneron Pharmaceuticals, Inc. (a)	1,212,919
3,080	Vertex Pharmaceuticals, Inc. (a)	1,253,221
		2,466,140
	Capital Markets — 2.4%
11,821	Blackstone, Inc.	1,547,605
	Chemicals — 1.6%
13,450	CF Industries Holdings, Inc.	1,069,275
	Commercial Services & Supplies — 1.9%
25,546	Copart, Inc. (a)	1,251,754
	Communications Equipment — 2.2%
5,997	Arista Networks, Inc. (a)	1,412,353
	Electronic Equipment, Instruments & Components — 2.1%
13,976	Amphenol Corp., Class A	1,385,441
	Financial Services — 3.8%
2,903	Mastercard, Inc., Class A	1,238,158
4,782	Visa, Inc., Class A	1,244,994
		2,483,152
	Health Care Equipment & Supplies — 2.5%
12,983	Dexcom, Inc. (a)	1,611,060
	Health Care Providers & Services — 6.8%
5,913	Cencora, Inc.	1,214,412
2,142	Humana, Inc.	980,629
3,199	Molina Healthcare, Inc. (a)	1,155,831
2,117	UnitedHealth Group, Inc.	1,114,537
		4,465,409
	Hotels, Restaurants & Leisure — 4.3%
405	Booking Holdings, Inc. (a)	1,436,624
609	Chipotle Mexican Grill, Inc. (a)	1,392,759
		2,829,383
	Household Durables — 7.2%
11,088	D.R. Horton, Inc.	1,685,154
10,754	Lennar Corp., Class A	1,602,776
203	NVR, Inc. (a)	1,421,092
		4,709,022

Shares	Description	Value

	Insurance — 1.9%
17,668	W.R. Berkley Corp.	$1,249,481
	Interactive Media & Services — 1.8%
8,231	Alphabet, Inc., Class A (a)	1,149,788
	IT Services — 2.3%
4,997	EPAM Systems, Inc. (a)	1,485,808
	Machinery — 4.1%
4,479	Caterpillar, Inc.	1,324,306
14,130	PACCAR, Inc.	1,379,794
		2,704,100
	Metals & Mining — 4.2%
7,895	Nucor Corp.	1,374,046
11,280	Steel Dynamics, Inc.	1,332,168
		2,706,214
	Oil, Gas & Consumable Fuels — 8.0%
6,690	Chevron Corp.	997,880
8,997	ConocoPhillips	1,044,282
8,485	EOG Resources, Inc.	1,026,261
26,354	EQT Corp.	1,018,846
8,508	Valero Energy Corp.	1,106,040
		5,193,309
	Semiconductors & Semiconductor Equipment — 17.0%
8,322	Applied Materials, Inc.	1,348,747
1,302	Broadcom, Inc.	1,453,357
11,286	Enphase Energy, Inc. (a)	1,491,332
2,408	KLA Corp.	1,399,770
1,859	Lam Research Corp.	1,456,080
2,694	NVIDIA Corp.	1,334,123
13,157	ON Semiconductor Corp. (a)	1,099,004
10,274	QUALCOMM, Inc.	1,485,929
		11,068,342
	Software — 10.1%
2,063	Adobe, Inc. (a)	1,230,786
5,506	Autodesk, Inc. (a)	1,340,601
4,591	Palo Alto Networks, Inc. (a)	1,353,794
2,057	ServiceNow, Inc. (a)	1,453,250
2,387	Synopsys, Inc. (a)	1,229,090
		6,607,521
	Specialty Retail — 3.9%
9,650	Ross Stores, Inc.	1,335,464
12,526	TJX (The) Cos., Inc.	1,175,064
		2,510,528

See Notes to Financial Statements

Page 45

First Trust Indxx Aerospace & Defense ETF (MISL)

Portfolio of Investments

December 31, 2023

Shares	Description	Value
COMMON STOCKS — 99.9%
	Aerospace & Defense — 84.6%
5,683	AAR Corp. (a)	$354,619
4,233	AeroVironment, Inc. (a)	533,527
5,237	Astronics Corp. (a)	91,229
16,164	Boeing (The) Co. (a)	4,213,308
6,168	Curtiss-Wright Corp.	1,374,169
2,346	Ducommun, Inc. (a)	122,133
12,297	General Dynamics Corp.	3,193,162
9,059	HEICO Corp.	1,620,383
13,600	Hexcel Corp.	1,003,000
33,681	Howmet Aerospace, Inc.	1,822,816
6,419	Huntington Ingalls Industries, Inc.	1,666,629
4,543	Kaman Corp.	108,805
20,759	Kratos Defense & Security Solutions, Inc. (a)	421,200
8,432	L3Harris Technologies, Inc.	1,775,948
42,186	Leonardo DRS, Inc. (a)	845,407
6,777	Lockheed Martin Corp.	3,071,608
9,549	Mercury Systems, Inc. (a)	349,207
5,144	Moog, Inc., Class A	744,748
6,098	Northrop Grumman Corp.	2,854,718
77,823	Rocket Lab USA, Inc. (a)	430,361
40,804	RTX Corp.	3,433,249
16,953	Spirit AeroSystems Holdings, Inc., Class A (a)	538,766
19,089	Textron, Inc.	1,535,137
1,743	TransDigm Group, Inc.	1,763,219
12,352	Triumph Group, Inc. (a)	204,796
59,115	Virgin Galactic Holdings, Inc. (a)	144,832
9,728	Woodward, Inc.	1,324,273
		35,541,249
	Diversified Telecommunication Services — 0.5%
35,049	AST SpaceMobile, Inc. (a)	211,345
	Professional Services — 14.8%
3,648	CACI International, Inc., Class A (a)	1,181,441
21,724	KBR, Inc.	1,203,727
15,749	Leidos Holdings, Inc.	1,704,672

Shares	Description	Value

	Professional Services (Continued)
16,888	Parsons Corp. (a)	$1,059,046
8,524	Science Applications International Corp.	1,059,704
		6,208,590


	Total Investments — 99.9%	41,961,184
	(Cost $38,928,166)
	Net Other Assets and Liabilities — 0.1%	27,679
	Net Assets — 100.0%	$41,988,863

(a)	Non-income producing security.

Valuation Inputs

A summary of the inputs used to value the Fund’s investments as of December 31, 2023 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements):

	Total Value at 12/31/2023	Level 1 Quoted Prices	Level 2 Significant Observable Inputs	Level 3 Significant Unobservable Inputs
Common Stocks*	$ 41,961,184	$ 41,961,184	$ —	$ —

*	See Portfolio of Investments for industry breakout.

See Notes to Financial Statements

Page 47

First Trust Bloomberg Inflation Sensitive Equity ETF (FTIF)

Portfolio of Investments

December 31, 2023

Shares	Description	Value
COMMON STOCKS — 99.7%
	Aerospace & Defense — 4.3%
95	General Dynamics Corp.	$24,669
105	L3Harris Technologies, Inc.	22,115
		46,784
	Building Products — 4.4%
80	Carlisle Cos., Inc.	24,995
157	Owens Corning	23,272
		48,267
	Chemicals — 11.1%
92	Albemarle Corp.	13,292
295	CF Industries Holdings, Inc.	23,453
385	Dow, Inc.	21,113
223	LyondellBasell Industries N.V., Class A	21,203
585	Mosaic (The) Co.	20,902
399	Olin Corp.	21,526
		121,489
	Electrical Equipment — 2.0%
227	Emerson Electric Co.	22,094
	Electronic Equipment, Instruments & Components — 2.2%
241	Amphenol Corp., Class A	23,890
	Energy Equipment & Services — 6.6%
660	ChampionX Corp.	19,278
621	Halliburton Co.	22,449
308	Weatherford International PLC (a)	30,132
		71,859
	Hotel & Resort REITs — 2.2%
1,217	Host Hotels & Resorts, Inc.	23,695
	Industrial Conglomerates — 2.2%
186	General Electric Co.	23,739
	Machinery — 12.6%
83	Caterpillar, Inc.	24,541
139	Dover Corp.	21,380
274	Fortive Corp.	20,175
245	PACCAR, Inc.	23,924
53	Parker-Hannifin Corp.	24,417
187	Westinghouse Air Brake Technologies Corp.	23,730
		138,167
	Metals & Mining — 8.1%
1,222	Cleveland-Cliffs, Inc. (a)	24,953
389	Commercial Metals Co.	19,466

Shares	Description	Value

	Metals & Mining (Continued)
125	Nucor Corp.	$21,755
188	Steel Dynamics, Inc.	22,203
		88,377
	Oil, Gas & Consumable Fuels — 31.9%
889	Antero Resources Corp. (a)	20,163
599	APA Corp.	21,492
295	Civitas Resources, Inc.	20,172
198	ConocoPhillips	22,982
424	Devon Energy Corp.	19,207
156	Diamondback Energy, Inc.	24,193
179	EOG Resources, Inc.	21,650
151	Hess Corp.	21,768
890	Marathon Oil Corp.	21,502
391	Matador Resources Co.	22,232
535	Murphy Oil Corp.	22,823
538	Ovintiv, Inc.	23,629
500	PBF Energy, Inc., Class A	21,980
99	Pioneer Natural Resources Co.	22,263
697	Range Resources Corp.	21,217
3,408	Southwestern Energy Co. (a)	22,322
		349,595
	Real Estate Management & Development — 2.1%
254	CBRE Group, Inc., Class A (a)	23,645
	Retail REITs — 2.3%
177	Simon Property Group, Inc.	25,247
	Specialized REITs — 7.7%
423	Gaming and Leisure Properties, Inc.	20,875
206	Lamar Advertising Co., Class A	21,894
652	VICI Properties, Inc.	20,786
611	Weyerhaeuser Co.	21,244
		84,799


	Total Investments — 99.7%	1,091,647
	(Cost $1,042,592)
	Net Other Assets and Liabilities — 0.3%	3,830
	Net Assets — 100.0%	$1,095,477

(a)	Non-income producing security.

See Notes to Financial Statements

Page 48

First Trust Exchange-Traded Fund

Statements of Assets and Liabilities

December 31, 2023

	First Trust Dow Jones Select MicroCap Index Fund (FDM)	First Trust Morningstar Dividend Leaders Index Fund (FDL)	First Trust US Equity Opportunities ETF (FPX)	First Trust NYSE® Arca® Biotechnology Index Fund (FBT)
ASSETS:
Investments, at value	$177,884,006	$3,957,471,092	$768,302,466	$1,289,082,971
Cash	122,378	3,010,563	846,353	749,114
Receivables:
Dividends	146,380	13,052,680	286,376	—
Securities lending income	9,558	—	60,584	564
Reclaims	268	—	10,993	69,294
Investment securities sold	—	23,250,686	4,784,614	101,565
Capital shares sold	—	—	—	—
Prepaid expenses	1,126	33,629	3,530	7,368
Total Assets	178,163,716	3,996,818,650	774,294,916	1,290,010,876

LIABILITIES:
Payables:
Collateral for securities on loan	5,614,589	—	21,969,941	1,262,244
Investment advisory fees	52,244	1,005,450	250,676	419,654
Licensing fees	39,299	851,528	162,532	242,243
Audit and tax fees	25,092	24,998	25,104	24,987
Shareholder reporting fees	15,036	191,454	46,438	77,779
Trustees’ fees	50	—	38	40
Investment securities purchased	—	—	—	2,036
Capital shares redeemed	—	23,330,243	4,787,808	—
Other liabilities	35,230	616,971	141,944	228,370
Total Liabilities	5,781,540	26,020,644	27,384,481	2,257,353
NET ASSETS	$172,382,176	$3,970,798,006	$746,910,435	$1,287,753,523

NET ASSETS consist of:
Paid-in capital	$220,962,622	$4,530,553,374	$1,300,307,789	$1,863,230,748
Par value	28,050	1,107,000	78,000	81,500
Accumulated distributable earnings (loss)	(48,608,496 )	(560,862,368 )	(553,475,354 )	(575,558,725 )
NET ASSETS	$172,382,176	$3,970,798,006	$746,910,435	$1,287,753,523
NET ASSET VALUE, per share	$61.46	$35.87	$95.76	$158.01
Number of shares outstanding (unlimited number of shares authorized, par value $0.01 per share)	2,805,000	110,700,002	7,800,002	8,150,002
Investments, at cost	$165,044,434	$3,982,375,224	$650,868,705	$1,189,817,999
Securities on loan, at value	$5,388,319	$—	$20,663,128	$1,233,882

See Notes to Financial Statements

Page 50

First Trust Dow Jones Internet Index Fund (FDN)	First Trust Capital Strength ETF (FTCS)	First Trust Value Line® Dividend Index Fund (FVD)	First Trust Growth Strength ETF (FTGS)	First Trust Indxx Aerospace & Defense ETF (MISL)	First Trust Bloomberg Inflation Sensitive Equity ETF (FTIF)

$5,962,087,320	$8,728,628,082	$10,771,383,051	$65,125,799	$41,961,184	$1,091,647
—	3,925,887	8,367,803	49,419	47,344	2,520

8,392	16,453,934	18,435,365	63,293	4,494	1,858
—	—	—	—	—	—
—	—	2,703,615	—	—	—
499,942	7,987,480	770,219,371	—	—	—
9,325,239	—	—	—	—	—
24,851	61,558	82,311	—	—	—
5,971,945,744	8,757,056,941	11,571,191,516	65,238,511	42,013,022	1,096,025



—	—	—	—	—	—
1,931,388	3,563,788	4,369,404	31,525	24,159	548
786,267	—	2,689,268	—	—	—
24,940	25,010	25,420	—	—	—
200,795	343,226	472,964	—	—	—
—	—	—	—	—	—
9,325,990	—	768,331,868	—	—	—
—	8,003,529	—	—	—	—
766,742	1,136,749	1,439,631	—	—	—
13,036,122	13,072,302	777,328,555	31,525	24,159	548
$5,958,909,622	$8,743,984,639	$10,793,862,961	$65,206,986	$41,988,863	$1,095,477


$7,568,386,203	$8,729,690,101	$10,687,370,270	$58,028,418	$39,029,339	$1,064,372
319,500	1,092,500	2,661,909	24,000	16,500	500
(1,609,796,081 )	13,202,038	103,830,782	7,154,568	2,943,024	30,605
$5,958,909,622	$8,743,984,639	$10,793,862,961	$65,206,986	$41,988,863	$1,095,477
$186.51	$80.04	$40.55	$27.17	$25.45	$21.91
31,950,002	109,250,002	266,190,884	2,400,002	1,650,002	50,002
$6,469,135,399	$7,816,825,321	$9,867,772,435	$57,689,666	$38,928,166	$1,042,592
$—	$—	$—	$—	$—	$—

See Notes to Financial Statements

Page 51

First Trust Exchange-Traded Fund

Statements of Operations

For the Period Ended December 31, 2023

	First Trust Dow Jones Select MicroCap Index Fund (FDM)	First Trust Morningstar Dividend Leaders Index Fund (FDL)	First Trust US Equity Opportunities ETF (FPX)
INVESTMENT INCOME:
Dividends	$3,759,734	$226,491,067	$4,888,799
Securities lending income (net of fees)	159,168	—	1,478,673
Foreign withholding tax	(828 )	—	—
Total investment income	3,918,074	226,491,067	6,367,472

EXPENSES:
Investment advisory fees	761,755	13,534,809	3,058,739
Licensing fees	91,411	4,124,644	764,685
Accounting and administration fees	82,273	1,718,967	386,519
Shareholder reporting fees	33,056	496,641	79,244
Audit and tax fees	29,987	28,996	29,144
Custodian fees	15,029	19,070	22,644
Listing fees	7,812	17,500	7,812
Transfer agent fees	7,618	139,117	38,234
Trustees’ fees and expenses	7,207	11,008	7,664
Legal fees	3,747	129,268	19,654
Excise tax	—	—	—
Other expenses	3,507	64,491	15,297
Total expenses	1,043,402	20,284,511	4,429,636
Less fees waived by the investment advisor	(129,295 )	—	—
Net expenses	914,107	20,284,511	4,429,636
NET INVESTMENT INCOME (LOSS)	3,003,967	206,206,556	1,937,836

NET REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) on:
Investments	(7,087,492 )	(191,819,298 )	(56,331,802 )
In-kind redemptions	2,663,375	272,029,876	43,287,800
Foreign currency transactions	—	—	—
Net realized gain (loss)	(4,424,117 )	80,210,578	(13,044,002 )
Net change in unrealized appreciation (depreciation) on:
Investments	22,992,909	(249,758,782 )	156,996,014
Foreign currency translation	—	—	—
Net change in unrealized appreciation (depreciation)	22,992,909	(249,758,782 )	156,996,014
NET REALIZED AND UNREALIZED GAIN (LOSS)	18,568,792	(169,548,204 )	143,952,012
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$21,572,759	$36,658,352	$145,889,848

(a)	Fund is subject to a unitary fee (see Note 3 in the Notes to Financial Statements).

See Notes to Financial Statements

Page 52

First Trust NYSE® Arca® Biotechnology Index Fund (FBT)	First Trust Dow Jones Internet Index Fund (FDN)	First Trust Capital Strength ETF (FTCS)	First Trust Value Line® Dividend Index Fund (FVD)	First Trust Growth Strength ETF (FTGS)

$3,455,323	$11,684,261	$180,325,773	$354,095,149	$260,447
20,816	7,190	—	—	—
—	—	—	(7,683,988 )	(138 )
3,476,139	11,691,451	180,325,773	346,411,161	260,309


5,533,029	19,150,285	41,764,570	55,735,407	104,534 (a)
1,106,606	2,820,310	99,999	9,314,987	—
656,945	1,785,358	2,669,205	3,359,895	—
160,035	335,906	758,630	1,022,013	—
28,672	23,968	24,920	23,831	—
58,595	373,493	221,429	72,232	—
7,812	9,750	4,601	35,000	—
59,581	146,367	240,620	317,280	—
8,248	11,027	13,825	16,437	—
36,499	102,750	215,266	302,907	—
—	—	—	—	150
22,778	70,589	131,486	191,001	—
7,678,800	24,829,803	46,144,551	70,390,990	104,684
—	—	—	—	—
7,678,800	24,829,803	46,144,551	70,390,990	104,684
(4,202,661 )	(13,138,352 )	134,181,222	276,020,171	155,625



(37,708,196 )	(576,826,562 )	(54,013,718 )	(83,491,182 )	(318,805 )
63,449,546	657,641,880	264,196,509	469,772,222	763,945
—	—	—	(4,302 )	—
25,741,350	80,815,318	210,182,791	386,276,738	445,140

(607,012 )	1,755,649,051	372,122,905	(260,437,697 )	7,428,679
—	—	—	329	—
(607,012 )	1,755,649,051	372,122,905	(260,437,368 )	7,428,679
25,134,338	1,836,464,369	582,305,696	125,839,370	7,873,819
$20,931,677	$1,823,326,017	$716,486,918	$401,859,541	$8,029,444

See Notes to Financial Statements

Page 53

First Trust Exchange-Traded Fund

Statements of Operations (Continued)

For the Period Ended December 31, 2023

	First Trust Indxx Aerospace & Defense ETF (MISL)	First Trust Bloomberg Inflation Sensitive Equity ETF (FTIF) (b)
INVESTMENT INCOME:
Dividends	$395,135	$21,516
Securities lending income (net of fees)	—	—
Foreign withholding tax	—	—
Total investment income	395,135	21,516

EXPENSES:
Investment advisory fees	162,286 (a)	5,013 (a)
Licensing fees	—	—
Accounting and administration fees	—	—
Shareholder reporting fees	—	—
Audit and tax fees	—	—
Custodian fees	—	—
Listing fees	—	—
Transfer agent fees	—	—
Trustees’ fees and expenses	—	—
Legal fees	—	—
Excise tax	—	—
Other expenses	—	—
Total expenses	162,286	5,013
Less fees waived by the investment advisor	—	—
Net expenses	162,286	5,013
NET INVESTMENT INCOME (LOSS)	232,849	16,503

NET REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) on:
Investments	(181,052 )	(18,844 )
In-kind redemptions	3,009,536	78,632
Foreign currency transactions	—	—
Net realized gain (loss)	2,828,484	59,788
Net change in unrealized appreciation (depreciation) on:
Investments	2,942,661	49,055
Foreign currency translation	—	—
Net change in unrealized appreciation (depreciation)	2,942,661	49,055
NET REALIZED AND UNREALIZED GAIN (LOSS)	5,771,145	108,843
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$6,003,994	$125,346

(a)	Fund is subject to a unitary fee (see Note 3 in the Notes to Financial Statements).
(b)	Inception date is March 13, 2023, which is consistent with the commencement of investment operations and is the date the initial creation units were established.

See Notes to Financial Statements

Page 54

First Trust Exchange-Traded Fund

Statements of Changes in Net Assets

	First Trust Dow Jones Select MicroCap Index Fund (FDM)		First Trust Morningstar Dividend Leaders Index Fund (FDL)
	Year Ended 12/31/2023	Year Ended 12/31/2022	Year Ended 12/31/2023	Year Ended 12/31/2022
OPERATIONS:
Net investment income (loss)	$3,003,967	$2,691,970	$206,206,556	$122,503,215
Net realized gain (loss)	(4,424,117 )	8,379,423	80,210,578	35,160,034
Net change in unrealized appreciation (depreciation)	22,992,909	(34,793,960 )	(249,758,782 )	(5,208,289 )
Net increase (decrease) in net assets resulting from operations	21,572,759	(23,722,567 )	36,658,352	152,454,960

DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment operations	(3,022,144 )	(2,696,103 )	(206,188,898 )	(122,518,973 )

SHAREHOLDER TRANSACTIONS:
Proceeds from shares sold	23,930,860	113,413,517	1,747,025,494	3,837,574,234
Cost of shares redeemed	(14,540,849 )	(131,289,899 )	(2,408,514,348 )	(828,602,429 )
Net increase (decrease) in net assets resulting from shareholder transactions	9,390,011	(17,876,382 )	(661,488,854 )	3,008,971,805
Total increase (decrease) in net assets	27,940,626	(44,295,052 )	(831,019,400 )	3,038,907,792

NET ASSETS:
Beginning of period	144,441,550	188,736,602	4,801,817,406	1,762,909,614
End of period	$172,382,176	$144,441,550	$3,970,798,006	$4,801,817,406

CHANGES IN SHARES OUTSTANDING:
Shares outstanding, beginning of period	2,605,000	2,955,000	131,400,002	49,600,002
Shares sold	450,000	1,900,000	49,150,000	105,600,000
Shares redeemed	(250,000 )	(2,250,000 )	(69,850,000 )	(23,800,000 )
Shares outstanding, end of period	2,805,000	2,605,000	110,700,002	131,400,002

See Notes to Financial Statements

Page 56

First Trust US Equity Opportunities ETF (FPX)		First Trust NYSE® Arca® Biotechnology Index Fund (FBT)		First Trust Dow Jones Internet Index Fund (FDN)
Year Ended 12/31/2023	Year Ended 12/31/2022	Year Ended 12/31/2023	Year Ended 12/31/2022	Year Ended 12/31/2023	Year Ended 12/31/2022

$1,937,836	$9,971,724	$(4,202,661 )	$(3,533,844 )	$(13,138,352 )	$(13,722,408 )
(13,044,002 )	(201,088,840 )	25,741,350	(231,261,606 )	80,815,318	400,961,949
156,996,014	(386,182,483 )	(607,012 )	140,025,277	1,755,649,051	(4,159,637,254 )
145,889,848	(577,299,599 )	20,931,677	(94,770,173 )	1,823,326,017	(3,772,397,713 )


(2,404,856 )	(9,427,777 )	—	—	—	—


27,613,553	49,560,039	45,817,917	126,254,644	5,248,074,135	2,488,710,947
(227,281,860 )	(515,443,931 )	(262,351,148 )	(256,885,942 )	(4,665,330,390 )	(5,131,046,629 )
(199,668,307 )	(465,883,892 )	(216,533,231 )	(130,631,298 )	582,743,745	(2,642,335,682 )
(56,183,315 )	(1,052,611,268 )	(195,601,554 )	(225,401,471 )	2,406,069,762	(6,414,733,395 )


803,093,750	1,855,705,018	1,483,355,077	1,708,756,548	3,552,839,860	9,967,573,255
$746,910,435	$803,093,750	$1,287,753,523	$1,483,355,077	$5,958,909,622	$3,552,839,860


10,200,002	15,150,002	9,600,002	10,550,002	28,850,002	44,100,002
300,000	500,000	300,000	850,000	32,000,000	17,850,000
(2,700,000 )	(5,450,000 )	(1,750,000 )	(1,800,000 )	(28,900,000 )	(33,100,000 )
7,800,002	10,200,002	8,150,002	9,600,002	31,950,002	28,850,002

See Notes to Financial Statements

Page 57

First Trust Exchange-Traded Fund

Statements of Changes in Net Assets (Continued)

	First Trust Capital Strength ETF (FTCS)		First Trust Value Line® Dividend Index Fund (FVD)
	Year Ended 12/31/2023	Year Ended 12/31/2022	Year Ended 12/31/2023	Year Ended 12/31/2022
OPERATIONS:
Net investment income (loss)	$134,181,222	$101,795,857	$276,020,171	$251,184,769
Net realized gain (loss)	210,182,791	(117,550,809 )	386,276,738	494,800,079
Net change in unrealized appreciation (depreciation)	372,122,905	(1,009,131,344 )	(260,437,368 )	(1,448,623,545 )
Net increase (decrease) in net assets resulting from operations	716,486,918	(1,024,886,296 )	401,859,541	(702,638,697 )

DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment operations	(133,727,407 )	(104,442,497 )	(274,259,890 )	(255,493,903 )

SHAREHOLDER TRANSACTIONS:
Proceeds from shares sold	1,899,324,126	3,134,829,083	666,352,515	2,857,719,852
Cost of shares redeemed	(2,430,246,599 )	(2,805,284,887 )	(2,442,760,000 )	(2,411,103,178 )
Net increase (decrease) in net assets resulting from shareholder transactions	(530,922,473 )	329,544,196	(1,776,407,485 )	446,616,674
Total increase (decrease) in net assets	51,837,038	(799,784,597 )	(1,648,807,834 )	(511,515,926 )

NET ASSETS:
Beginning of period	8,692,147,601	9,491,932,198	12,442,670,795	12,954,186,721
End of period	$8,743,984,639	$8,692,147,601	$10,793,862,961	$12,442,670,795

CHANGES IN SHARES OUTSTANDING:
Shares outstanding, beginning of period	116,100,002	112,300,002	311,940,884	301,240,884
Shares sold	25,600,000	40,300,000	16,650,000	70,050,000
Shares redeemed	(32,450,000 )	(36,500,000 )	(62,400,000 )	(59,350,000 )
Shares outstanding, end of period	109,250,002	116,100,002	266,190,884	311,940,884

(a)	Inception date is October 25, 2022, which is consistent with the commencement of investment operations and is the date the initial creation units were established.
(b)	Inception date is March 13, 2023, which is consistent with the commencement of investment operations and is the date the initial creation units were established.

See Notes to Financial Statements

Page 58

First Trust Exchange-Traded Fund

Financial Highlights

For a share outstanding throughout each period

First Trust Dow Jones Select MicroCap Index Fund (FDM)

	Year Ended December 31,
	2023	2022	2021	2020	2019
Net asset value, beginning of period	$55.45	$63.87	$47.94	$51.09	$40.76
Income from investment operations:
Net investment income (loss)	1.10 (a)	1.00	0.64	0.80	0.66
Net realized and unrealized gain (loss)	6.02	(8.42 )	15.98	(3.15 )	10.37
Total from investment operations	7.12	(7.42 )	16.62	(2.35 )	11.03
Distributions paid to shareholders from:
Net investment income	(1.11 )	(1.00 )	(0.69 )	(0.80 )	(0.70 )
Net asset value, end of period	$61.46	$55.45	$63.87	$47.94	$51.09
Total return (b)	13.01 %	(11.56 )%	34.71 %	(4.25 )%	27.25 %

Ratios to average net assets/supplemental data:
Net assets, end of period (in 000’s)	$172,382	$144,442	$188,737	$122,482	$156,067
Ratio of total expenses to average net assets	0.68 %	0.69 %	0.69 %	0.71 %	0.70 %
Ratio of net expenses to average net assets	0.60 %	0.60 %	0.60 %	0.60 %	0.60 %
Ratio of net investment income (loss) to average net assets	1.97 %	1.72 %	1.10 %	1.88 %	1.42 %
Portfolio turnover rate (c)	72 %	84 %	95 %	95 %	64 %

(a)	Based on average shares outstanding.
(b)	Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is calculated for the time period presented and is not annualized for periods of less than a year. The total returns would have been lower if certain fees had not been waived and expenses reimbursed by the investment advisor.
(c)	Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities received or delivered from processing creations or redemptions and in-kind transactions.

See Notes to Financial Statements

Page 60

First Trust Exchange-Traded Fund

Financial Highlights (Continued)

For a share outstanding throughout each period

First Trust Morningstar Dividend Leaders Index Fund (FDL)

	Year Ended December 31,
	2023	2022	2021	2020	2019
Net asset value, beginning of period	$36.54	$35.54	$29.59	$32.58	$27.24
Income from investment operations:
Net investment income (loss)	1.59 (a)	1.30	1.29	1.32	1.22
Net realized and unrealized gain (loss)	(0.62 )	1.01	5.95	(2.98 )	5.34
Total from investment operations	0.97	2.31	7.24	(1.66 )	6.56
Distributions paid to shareholders from:
Net investment income	(1.64 )	(1.31 )	(1.29 )	(1.33 )	(1.22 )
Net asset value, end of period	$35.87	$36.54	$35.54	$29.59	$32.58
Total return (b)	2.90 %	6.71 %	24.76 %	(4.42 )%	24.36 %

Ratios to average net assets/supplemental data:
Net assets, end of period (in 000’s)	$3,970,798	$4,801,817	$1,762,910	$1,399,483	$1,841,000
Ratio of total expenses to average net assets	0.44 %	0.45 %	0.46 %	0.46 %	0.46 %
Ratio of net expenses to average net assets	0.44 %	0.45 %	0.45 %	0.45 %	0.45 %
Ratio of net investment income (loss) to average net assets	4.52 %	4.15 %	3.90 %	4.73 %	4.06 %
Portfolio turnover rate (c)	46 %	60 %	59 %	63 %	39 %

(a)	Based on average shares outstanding.
(b)	Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is calculated for the time period presented and is not annualized for periods of less than a year. The total returns would have been lower if certain fees had not been waived and expenses reimbursed by the investment advisor.
(c)	Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities received or delivered from processing creations or redemptions and in-kind transactions.

See Notes to Financial Statements

Page 61

First Trust Exchange-Traded Fund

Financial Highlights (Continued)

For a share outstanding throughout each period

First Trust US Equity Opportunities ETF (FPX)

	Year Ended December 31,
	2023	2022	2021	2020	2019
Net asset value, beginning of period	$78.73	$122.49	$118.32	$80.41	$62.07
Income from investment operations:
Net investment income (loss)	0.22 (a)	0.90	0.08	0.24	0.58
Net realized and unrealized gain (loss)	17.07	(43.81 )	4.26	38.01	18.30
Total from investment operations	17.29	(42.91 )	4.34	38.25	18.88
Distributions paid to shareholders from:
Net investment income	(0.26 )	(0.85 )	(0.17 )	(0.34 )	(0.54 )
Net asset value, end of period	$95.76	$78.73	$122.49	$118.32	$80.41
Total return (b)	22.01 %	(35.05 )%	3.67 %	47.76 %	30.45 %

Ratios to average net assets/supplemental data:
Net assets, end of period (in 000’s)	$746,910	$803,094	$1,855,705	$1,946,373	$1,330,835
Ratio of total expenses to average net assets	0.58 %	0.58 %	0.57 %	0.57 %	0.58 %
Ratio of net investment income (loss) to average net assets	0.25 %	0.86 %	0.07 %	0.26 %	0.79 %
Portfolio turnover rate (c)	123 %	115 %	85 %	75 %	81 %

(a)	Based on average shares outstanding.
(b)	Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is calculated for the time period presented and is not annualized for periods of less than a year.
(c)	Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities received or delivered from processing creations or redemptions and in-kind transactions.

See Notes to Financial Statements

Page 62

First Trust Exchange-Traded Fund

Financial Highlights (Continued)

For a share outstanding throughout each period

First Trust NYSE® Arca® Biotechnology Index Fund (FBT)

	Year Ended December 31,
	2023	2022	2021	2020	2019
Net asset value, beginning of period	$154.52	$161.97	$168.08	$148.84	$124.26
Income from investment operations:
Net investment income (loss)	(0.46 ) (a)	(0.37 )	(0.42 )	(0.45 )	(0.51 )
Net realized and unrealized gain (loss)	3.95	(7.08 )	(5.69 )	19.69	25.09
Total from investment operations	3.49	(7.45 )	(6.11 )	19.24	24.58
Net asset value, end of period	$158.01	$154.52	$161.97	$168.08	$148.84
Total return (b)	2.26 %	(4.60 )%	(3.64 )%	12.93 %	19.78 %

Ratios to average net assets/supplemental data:
Net assets, end of period (in 000’s)	$1,287,754	$1,483,355	$1,708,757	$2,042,173	$1,800,927
Ratio of total expenses to average net assets	0.56 %	0.56 %	0.55 %	0.55 %	0.55 %
Ratio of net investment income (loss) to average net assets	(0.30 )%	(0.25 )%	(0.23 )%	(0.28 )%	(0.25 )%
Portfolio turnover rate (c)	30 %	39 %	39 %	26 %	31 %

(a)	Based on average shares outstanding.
(b)	Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is calculated for the time period presented and is not annualized for periods of less than a year.
(c)	Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities received or delivered from processing creations or redemptions and in-kind transactions.

See Notes to Financial Statements

Page 63

First Trust Exchange-Traded Fund

Financial Highlights (Continued)

For a share outstanding throughout each period

First Trust Dow Jones Internet Index Fund (FDN)

	Year Ended December 31,
	2023	2022	2021	2020	2019
Net asset value, beginning of period	$123.15	$226.02	$212.37	$139.12	$116.66
Income from investment operations:
Net investment income (loss)	(0.42 ) (a)	(0.48 )	(0.73 )	(0.34 )	(0.14 )
Net realized and unrealized gain (loss)	63.78	(102.39 )	14.38	73.59	22.60
Total from investment operations	63.36	(102.87 )	13.65	73.25	22.46
Net asset value, end of period	$186.51	$123.15	$226.02	$212.37	$139.12
Total return (b)	51.44 %	(45.51 )%	6.43 %	52.65 %	19.26 %

Ratios to average net assets/supplemental data:
Net assets, end of period (in 000’s)	$5,958,910	$3,552,840	$9,967,573	$11,075,029	$7,853,367
Ratio of total expenses to average net assets	0.51 %	0.52 %	0.51 %	0.51 %	0.52 %
Ratio of net investment income (loss) to average net assets	(0.27 )%	(0.26 )%	(0.30 )%	(0.20 )%	(0.10 )%
Portfolio turnover rate (c)	24 %	24 %	19 %	39 %	28 %

(a)	Based on average shares outstanding.
(b)	Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is calculated for the time period presented and is not annualized for periods of less than a year.
(c)	Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities received or delivered from processing creations or redemptions and in-kind transactions.

See Notes to Financial Statements

Page 64

First Trust Exchange-Traded Fund

Financial Highlights (Continued)

For a share outstanding throughout each period

First Trust Capital Strength ETF (FTCS)

	Year Ended December 31,
	2023	2022	2021	2020	2019
Net asset value, beginning of period	$74.87	$84.52	$67.55	$60.37	$48.29
Income from investment operations:
Net investment income (loss)	1.16 (a)	0.90	0.91	0.63	0.76
Net realized and unrealized gain (loss)	5.19	(9.63 )	16.95	7.18	12.08
Total from investment operations	6.35	(8.73 )	17.86	7.81	12.84
Distributions paid to shareholders from:
Net investment income	(1.18 )	(0.92 )	(0.89 )	(0.63 )	(0.76 )
Net asset value, end of period	$80.04	$74.87	$84.52	$67.55	$60.37
Total return (b)	8.57 %	(10.28 )%	26.61 %	13.07 %	26.72 %

Ratios to average net assets/supplemental data:
Net assets, end of period (in 000’s)	$8,743,985	$8,692,148	$9,491,932	$7,021,909	$3,392,623
Ratio of total expenses to average net assets	0.54 %	0.55 %	0.55 %	0.56 %	0.58 %
Ratio of net investment income (loss) to average net assets	1.56 %	1.21 %	1.23 %	1.10 %	1.46 %
Portfolio turnover rate (c)	104 %	135 %	117 %	133 %	125 %

(a)	Based on average shares outstanding.
(b)	Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is calculated for the time period presented and is not annualized for periods of less than a year.
(c)	Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities received or delivered from processing creations or redemptions and in-kind transactions.

See Notes to Financial Statements

Page 65

First Trust Exchange-Traded Fund

Financial Highlights (Continued)

For a share outstanding throughout each period

First Trust Value Line® Dividend Index Fund (FVD)

	Year Ended December 31,
	2023	2022	2021	2020	2019
Net asset value, beginning of period	$39.89	$43.00	$35.10	$36.03	$29.07
Income from investment operations:
Net investment income (loss)	0.93 (a)	0.82	0.74	0.79	0.73
Net realized and unrealized gain (loss)	0.68	(3.10 )	7.91	(0.91 )	6.96
Total from investment operations	1.61	(2.28 )	8.65	(0.12 )	7.69
Distributions paid to shareholders from:
Net investment income	(0.95 )	(0.83 )	(0.75 )	(0.81 )	(0.73 )
Net asset value, end of period	$40.55	$39.89	$43.00	$35.10	$36.03
Total return (b)	4.10 %	(5.24 )%	24.86 %	(0.04 )%	26.60 %

Ratios to average net assets/supplemental data:
Net assets, end of period (in 000’s)	$10,793,863	$12,442,671	$12,954,187	$10,149,204	$9,665,219
Ratio of total expenses to average net assets	0.60 %	0.65 %	0.67 %	0.70 %	0.71 %
Ratio of net expenses to average net assets	0.60 %	0.65 %	0.67 %	0.70 %	0.70 %
Ratio of net investment income (loss) to average net assets	2.36 %	2.04 %	1.91 %	2.47 %	2.36 %
Portfolio turnover rate (c)	57 %	53 %	47 %	86 %	53 %

(a)	Based on average shares outstanding.
(b)	Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is calculated for the time period presented and is not annualized for periods of less than a year. The total returns would have been lower if certain fees had not been waived and expenses reimbursed by the investment advisor.
(c)	Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities received or delivered from processing creations or redemptions and in-kind transactions.

See Notes to Financial Statements

Page 66

First Trust Exchange-Traded Fund

Financial Highlights (Continued)

For a share outstanding throughout each period

First Trust Growth Strength ETF (FTGS)

	Year Ended 12/31/2023	Period Ended 12/31/2022 (a)
	Year Ended 12/31/2023	Period Ended 12/31/2022 (a)
Net asset value, beginning of period	$20.49	$20.29
Income from investment operations:
Net investment income (loss)	0.22 (b)	0.04
Net realized and unrealized gain (loss)	6.63	0.20
Total from investment operations	6.85	0.24
Distributions paid to shareholders from:
Net investment income	(0.17 )	(0.04 )
Net realized gain	(0.00 ) (c)	—
Total distributions	(0.17 )	(0.04 )
Net asset value, end of period	$27.17	$20.49
Total return (d)	33.54 %	1.20 %

Ratios to average net assets/supplemental data:
Net assets, end of period (in 000’s)	$65,207	$1,024
Ratio of total expenses to average net assets	0.60 %	0.60 % (e)
Ratio of net investment income (loss) to average net assets	0.89 %	1.11 % (e)
Portfolio turnover rate (f)	66 %	25 %

(a)	Inception date is October 25, 2022, which is consistent with the commencement of investment operations and is the date the initial creation units were established.
(b)	Based on average shares outstanding.
(c)	Amount represents less than $0.01.
(d)	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.
(e)	Annualized.
(f)	Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities received or delivered from processing creations or redemptions and in-kind transactions.

See Notes to Financial Statements

Page 67

First Trust Exchange-Traded Fund

Financial Highlights (Continued)

For a share outstanding throughout each period

First Trust Indxx Aerospace & Defense ETF (MISL)

	Year Ended 12/31/2023	Period Ended 12/31/2022 (a)
	Year Ended 12/31/2023	Period Ended 12/31/2022 (a)
Net asset value, beginning of period	$22.30	$20.79
Income from investment operations:
Net investment income (loss)	0.20 (b)	0.02
Net realized and unrealized gain (loss)	3.11	1.51
Total from investment operations	3.31	1.53
Distributions paid to shareholders from:
Net investment income	(0.14 )	(0.02 )
Net realized gain	(0.02 )	—
Total distributions	(0.16 )	(0.02 )
Net asset value, end of period	$25.45	$22.30
Total return (c)	14.88 %	7.34 %

Ratios to average net assets/supplemental data:
Net assets, end of period (in 000’s)	$41,989	$2,230
Ratio of total expenses to average net assets	0.60 %	0.60 % (d)
Ratio of net investment income (loss) to average net assets	0.86 %	0.53 % (d)
Portfolio turnover rate (e)	12 %	2 %

(a)	Inception date is October 25, 2022, which is consistent with the commencement of investment operations and is the date the initial creation units were established.
(b)	Based on average shares outstanding.
(c)	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.
(d)	Annualized.
(e)	Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities received or delivered from processing creations or redemptions and in-kind transactions.

See Notes to Financial Statements

Page 68

First Trust Exchange-Traded Fund

Financial Highlights (Continued)

For a share outstanding throughout the period

First Trust Bloomberg Inflation Sensitive Equity ETF (FTIF)

	Period Ended 12/31/2023 (a)
	Period Ended 12/31/2023 (a)
Net asset value, beginning of period	$19.69
Income from investment operations:
Net investment income (loss) (b)	0.33
Net realized and unrealized gain (loss)	2.23
Total from investment operations	2.56
Distributions paid to shareholders from:
Net investment income	(0.34 )
Net asset value, end of period	$21.91
Total return (c)	13.06 %

Ratios to average net assets/supplemental data:
Net assets, end of period (in 000’s)	$1,095
Ratio of total expenses to average net assets	0.60 % (d)
Ratio of net investment income (loss) to average net assets	1.98 % (d)
Portfolio turnover rate (e)	44 %

(a)	Inception date is March 13, 2023, which is consistent with the commencement of investment operations and is the date the initial creation units were established.
(b)	Based on average shares outstanding.
(c)	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.
(d)	Annualized.
(e)	Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities received or delivered from processing creations or redemptions and in-kind transactions.

See Notes to Financial Statements

Page 69

Notes to Financial Statements

First Trust Exchange-Traded Fund

December 31, 2023

1. Organization

First Trust Exchange-Traded Fund (the “Trust”) is an open-end management investment company organized as a Massachusetts business trust on August 8, 2003, and is registered with the Securities and Exchange Commission under the Investment Company Act of 1940, as amended (the “1940 Act”).

The Trust currently consists of twenty-four exchange-traded funds. This report covers the ten funds (each a “Fund” and collectively, the “Funds”) listed below:

First Trust Dow Jones Select MicroCap Index Fund – (NYSE Arca, Inc. (“NYSE Arca”) ticker “FDM”)

First Trust Morningstar Dividend Leaders Index Fund – (NYSE Arca ticker “FDL”)

First Trust US Equity Opportunities ETF – (NYSE Arca ticker “FPX”)

First Trust NYSE® Arca® Biotechnology Index Fund – (NYSE Arca ticker “FBT”)

First Trust Dow Jones Internet Index Fund – (NYSE Arca ticker “FDN”)

First Trust Capital Strength ETF – (Nasdaq, Inc. (“Nasdaq”) ticker “FTCS”)

First Trust Value Line® Dividend Index Fund – (NYSE Arca ticker “FVD”)

First Trust Growth Strength ETF – (Nasdaq ticker “FTGS”)

First Trust Indxx Aerospace & Defense ETF – (NYSE Arca ticker “MISL”)

First Trust Bloomberg Inflation Sensitive Equity ETF – (NYSE Arca ticker “FTIF”)(1)

(1)	Commenced investment operations on March 13, 2023.

Each Fund represents a separate series of shares of beneficial interest in the Trust. Unlike conventional mutual funds, each Fund issues and redeems shares on a continuous basis at net asset value (“NAV”), only in large blocks of shares known as “Creation Units.” The investment objective of each Fund is to seek investment results that correspond generally to the price and yield (before the Fund’s fees and expenses) of the following indices:

Fund	Index
First Trust Dow Jones Select MicroCap Index Fund	Dow Jones Select MicroCap IndexSM
First Trust Morningstar Dividend Leaders Index Fund	Morningstar® Dividend Leaders IndexSM
First Trust US Equity Opportunities ETF	IPOX®-100 U.S. Index
First Trust NYSE® Arca® Biotechnology Index Fund	NYSE® Arca® Biotechnology Index
First Trust Dow Jones Internet Index Fund	Dow Jones Internet Composite IndexSM
First Trust Capital Strength ETF	The Capital StrengthTM Index
First Trust Value Line® Dividend Index Fund	Value Line® Dividend Index
First Trust Growth Strength ETF	The Growth StrengthTM Index
First Trust Indxx Aerospace & Defense ETF	Indxx US Aerospace & Defense Index
First Trust Bloomberg Inflation Sensitive Equity ETF	Bloomberg Inflation Sensitive Equity Index

2. Significant Accounting Policies

The Funds are each considered an investment company and follow accounting and reporting guidance under Financial Accounting Standards Board Accounting Standards Codification Topic 946, “Financial Services-Investment Companies.” The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of the financial statements. The preparation of the financial statements in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.

A. Portfolio Valuation

Each Fund’s NAV is determined daily as of the close of regular trading on the New York Stock Exchange (“NYSE”), normally 4:00 p.m. Eastern time, on each day the NYSE is open for trading. If the NYSE closes early on a valuation day, the NAV is determined as of that time. Each Fund’s NAV is calculated by dividing the value of all assets of each Fund (including accrued interest and dividends), less all liabilities (including accrued expenses and dividends declared but unpaid), by the total number of shares outstanding.

Each Fund’s investments are valued daily at market value or, in the absence of market value with respect to any portfolio securities, at fair value. Market value prices represent readily available market quotations such as last sale or official closing prices from a national

Page 70

Notes to Financial Statements (Continued)

First Trust Exchange-Traded Fund

December 31, 2023

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 approved by the Trust’s Board of Trustees, and in accordance with provisions of the 1940 Act and rules thereunder. Investments valued by the Advisor’s Pricing Committee, if any, are footnoted as such in the footnotes to the Portfolio of Investments. Each Fund’s investments are valued as follows:

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

Shares of open-end funds are valued based on NAV per share.

Equity securities traded in an over-the-counter market are valued at the close price or the last trade price.

Overnight repurchase agreements are valued at amortized cost when it represents the most appropriate reflection of fair market value.

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

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

the type of security;

the size of the holding;

the initial cost of the security;

transactions in comparable securities;

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

relationships among various securities;

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

an analysis of the issuer’s financial statements;

10)

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

11)

other relevant factors.

In addition, differences between the prices used to calculate a Fund’s NAV and the prices used by such Fund’s corresponding index could result in a difference between a Fund’s performance and the performance of its underlying index.

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:

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Notes to Financial Statements (Continued)

First Trust Exchange-Traded Fund

December 31, 2023

• Level 1 – Level 1 inputs are quoted prices in active markets for identical investments. An active market is a market in which transactions for the investment occur with sufficient frequency and volume to provide pricing information on an ongoing basis.

• Level 2 – Level 2 inputs are observable inputs, either directly or indirectly, and include the following:

o Quoted prices for similar investments in active markets.

o Quoted prices for identical or similar investments in markets that are non-active. A non-active market is a market where there are few transactions for the investment, the prices are not current, or price quotations vary substantially either over time or among market makers, or in which little information is released publicly.

o Inputs other than quoted prices that are observable for the investment (for example, interest rates and yield curves observable at commonly quoted intervals, volatilities, prepayment speeds, loss severities, credit risks, and default rates).

o Inputs that are derived principally from or corroborated by observable market data by correlation or other means.

• Level 3 – Level 3 inputs are unobservable inputs. Unobservable inputs may reflect the reporting entity’s own assumptions about the assumptions that market participants would use in pricing the investment.

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in those investments. A summary of the inputs used to value each Fund’s investments as of December 31, 2023, is included with each Fund’s Portfolio of Investments.

B. Securities Transactions and Investment Income

Securities transactions are recorded as of the trade date. Realized gains and losses from securities transactions are recorded on the identified cost basis. Dividend income is recorded on the ex-dividend date. Interest income, if any, is recorded on the accrual basis.

Withholding taxes and tax reclaims on foreign dividends have been provided for in accordance with each Fund’s understanding of the applicable country’s tax rules and rates.

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

C. Offsetting on the Statements of Assets and Liabilities

Offsetting assets and liabilities requires entities to disclose both gross and net information about instruments and transactions eligible for offset on the Statements of Assets and Liabilities and disclose instruments and transactions subject to master netting or similar agreements. These disclosure requirements are intended to help investors and other financial statement users better assess the effect or potential effect of offsetting arrangements on a Fund’s financial position. The transactions subject to offsetting disclosures are derivative instruments, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions.

This disclosure, if applicable, is included within each Fund’s Portfolio of Investments under the heading “Offsetting Assets and Liabilities.” For financial reporting purposes, the Funds do not offset financial assets and financial liabilities that are subject to master netting arrangements (“MNAs”) or similar agreements on the Statements of Assets and Liabilities. MNAs provide the right, in the event of default (including bankruptcy and insolvency), for the non-defaulting counterparty to liquidate the collateral and calculate the net exposure to the defaulting party or request additional collateral.

D. Securities Lending

The Funds may lend securities representing up to 33 1/3% of the value of their total assets to broker-dealers, banks and other institutions to generate additional income. When a Fund loans its portfolio securities, it will receive, at the inception of each loan, collateral equal to at least 102% (for domestic securities) or 105% (for international securities) of the market value of the loaned securities. The collateral amount is valued at the beginning of each business day and is compared to the market value of the loaned securities from the prior business day to determine if additional collateral is required. If additional collateral is required, a request is sent to the borrower. Securities lending involves the risk that the Fund may lose money because the borrower of the Fund’s loaned securities fails to return the securities in a timely manner or at all. The Fund could also lose money in the event of (i) a decline in the value of the collateral provided for the loaned securities, (ii) a decline in the value of any investments made with cash collateral or (iii)

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Notes to Financial Statements (Continued)

First Trust Exchange-Traded Fund

December 31, 2023

an increase in the value of the loaned securities if the borrower does not increase the collateral accordingly and the borrower fails to return the securities. These events could also trigger adverse tax consequences for the Funds.

Under the Funds’ Securities Lending Agency Agreement, the securities lending agent will generally bear the risk that a borrower may default on its obligation to return loaned securities. Brown Brothers Harriman & Co. (“BBH”) acts as the Funds’ securities lending agent and is responsible for executing the lending of the portfolio securities to creditworthy borrowers with the exception of FPX. The Bank of New York Mellon (“BNYM”) acts as FPX’s securities lending agent and is responsible for executing the lending of the portfolio securities to creditworthy borrowers. The Funds, however, will be responsible for the risks associated with the investment of cash collateral. A Fund may lose money on its investment of cash collateral, which may affect its ability to repay the collateral to the borrower without the use of other Fund assets. Each Fund that engages in securities lending receives compensation (net of any rebate and securities lending agent fees) for lending its securities. Compensation can be in the form of fees received from the securities lending agent or dividends or interest earned from the investment of cash collateral. The fees received from the securities lending agent are accrued daily. The dividend and interest earned on the securities loaned is accounted for in the same manner as other dividend and interest income. At December 31, 2023, only FDM, FPX, and FBT had securities in the securities lending program. During the fiscal period ended December 31, 2023, FDM, FPX, FBT, and FDN participated in the securities lending program.

In the event of a default by a borrower with respect to any loan, BBH or BNYM will exercise any and all remedies provided under the applicable borrower agreement to make the Funds whole. These remedies include purchasing replacement securities by applying the collateral held from the defaulting broker against the purchase cost of the replacement securities. If, despite such efforts by BBH and BNYM to exercise these remedies, a Fund sustains losses as a result of a borrower’s default, BBH or BNYM will indemnify the Fund by purchasing replacement securities at its own expense, or paying the Fund an amount equal to the market value of the replacement securities, subject to certain limitations which are set forth in detail in the Securities Lending Agency Agreement between the Trust on behalf of the Funds and BBH or BNYM.

E. Repurchase Agreements

Repurchase agreements involve the purchase of securities subject to the seller’s agreement to repurchase the securities at a mutually agreed upon date and price, under the terms of a Master Repurchase Agreement (“MRA”). During the term of a repurchase agreement, the value of the underlying securities held as collateral on behalf of a Fund, including accrued interest, is required to exceed the value of the repurchase agreement, including accrued interest. The underlying securities for all repurchase agreements are held at the Funds’ custodian or designated sub-custodians under tri-party repurchase agreements.

MRAs govern transactions between a Fund and select counterparties. The MRAs contain provisions for, among other things, initiation, income payments, events of default, and maintenance of collateral for repurchase agreements.

Repurchase agreements received for lending securities are collateralized by U.S. Treasury securities. The U.S. Treasury securities are held in a joint custody account at BBH or BNYM on behalf of the Funds participating in the securities lending program. In the event the counterparty defaults on the repurchase agreement, the U.S. Treasury securities can either be maintained as part of a Fund’s portfolio or sold for cash. A Fund could suffer a loss to the extent that the proceeds from the sale of the underlying collateral held by the Fund are less than the repurchase price and the Fund’s costs associated with the delay and enforcement of the MRA.

While the Funds may invest in repurchase agreements, any repurchase agreements held by the Funds during the fiscal period ended December 31, 2023, were received as collateral for lending securities.

F. Dividends and Distributions to Shareholders

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

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

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Notes to Financial Statements (Continued)

First Trust Exchange-Traded Fund

December 31, 2023

The tax character of distributions paid by each Fund during the fiscal period ended December 31, 2023 was as follows:

	Distributions paid from Ordinary Income	Distributions paid from Capital Gains	Distributions paid from Return of Capital
First Trust Dow Jones Select MicroCap Index Fund	$3,022,144	$—	$—
First Trust Morningstar Dividend Leaders Index Fund	206,188,898	—	—
First Trust US Equity Opportunities ETF	2,404,856	—	—
First Trust NYSE® Arca® Biotechnology Index Fund	—	—	—
First Trust Dow Jones Internet Index Fund	—	—	—
First Trust Capital Strength ETF	133,727,407	—	—
First Trust Value Line® Dividend Index Fund	274,259,890	—	—
First Trust Growth Strength ETF	160,004	87	—
First Trust Indxx Aerospace & Defense ETF	247,120	—	—
First Trust Bloomberg Inflation Sensitive Equity ETF	16,931	—	—

The tax character of distributions paid by each Fund during the fiscal period ended December 31, 2022 was as follows:

	Distributions paid from Ordinary Income	Distributions paid from Capital Gains	Distributions paid from Return of Capital
First Trust Dow Jones Select MicroCap Index Fund	$2,696,103	$—	$—
First Trust Morningstar Dividend Leaders Index Fund	122,518,973	—	—
First Trust US Equity Opportunities ETF	9,427,777	—	—
First Trust NYSE® Arca® Biotechnology Index Fund	—	—	—
First Trust Dow Jones Internet Index Fund	—	—	—
First Trust Capital Strength ETF	104,442,497	—	—
First Trust Value Line® Dividend Index Fund	255,493,903	—	—
First Trust Growth Strength ETF	2,140	—	—
First Trust Indxx Aerospace & Defense ETF	1,690	—	—

As of December 31, 2023, the components of distributable earnings on a tax basis for each Fund were as follows:

	Undistributed Ordinary Income	Accumulated Capital and Other Gain (Loss)	Net Unrealized Appreciation (Depreciation)
First Trust Dow Jones Select MicroCap Index Fund	$38,433	$(60,407,373 )	$11,760,444
First Trust Morningstar Dividend Leaders Index Fund	889,346	(443,919,569 )	117,832,145
First Trust US Equity Opportunities ETF	78,995	(670,354,553 )	116,800,204
First Trust NYSE® Arca® Biotechnology Index Fund	—	(647,288,577 )	71,729,852
First Trust Dow Jones Internet Index Fund	—	(891,208,115 )	(718,587,966 )
First Trust Capital Strength ETF	619,558	(874,114,791 )	886,697,271
First Trust Value Line® Dividend Index Fund	3,303,745	(541,442,011 )	641,969,048
First Trust Growth Strength ETF	—	(196,325 )	7,350,893
First Trust Indxx Aerospace & Defense ETF	14,091	—	2,928,933
First Trust Bloomberg Inflation Sensitive Equity ETF	—	(7,544 )	38,149

G. 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,

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Notes to Financial Statements (Continued)

First Trust Exchange-Traded Fund

December 31, 2023

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. For all the Funds, with the exception of FTGS, MISL, and FTIF, the taxable years ended 2020, 2021, 2022, and 2023 remain open to federal and state audit. For FTGS and MISL, the taxable period ended 2022 and year ended 2023 remain open to federal and state audit. For FTIF, the taxable period ended 2023 remains open to federal and state audit. As of December 31, 2023, 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 December 31, 2023, for federal income tax purposes, each applicable Fund had a capital loss carryforward available that is shown in the following table, to the extent provided by regulations, to offset future capital gains. To the extent that these loss carryforwards are used to offset future capital gains, it is probable that the capital gains so offset will not be distributed to each applicable Fund’s shareholders.

	Non-Expiring Capital Loss Carryforwards
First Trust Dow Jones Select MicroCap Index Fund	$60,407,373
First Trust Morningstar Dividend Leaders Index Fund	443,919,569
First Trust US Equity Opportunities ETF	670,354,553
First Trust NYSE® Arca® Biotechnology Index Fund	647,288,577
First Trust Dow Jones Internet Index Fund	891,208,115
First Trust Capital Strength ETF	874,114,791
First Trust Value Line® Dividend Index Fund*	541,442,011
First Trust Growth Strength ETF	196,325
First Trust Indxx Aerospace & Defense ETF	—
First Trust Bloomberg Inflation Sensitive Equity ETF	7,544

*	$11,007,161 of First Trust Value Line® Dividend Index Fund’s non-expiring net capital losses is subject to loss limitation resulting from reorganization activity. This limitation generally reduces the utilization of these losses to a maximum of $364,518 per year.

Certain losses realized during the current fiscal period may be deferred and treated as occurring on the first day of the following fiscal year for federal income tax purposes. For the fiscal period ended December 31, 2023, the Funds had no net late year ordinary or capital losses.

In order to present paid-in capital and accumulated distributable earnings (loss) (which consists of accumulated net investment income (loss), accumulated net realized gain (loss) on investments and net unrealized appreciation (depreciation) on investments) on the 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 the fiscal period ended December 31, 2023, the adjustments for each Fund were as follows:

	Accumulated Net Investment Income (Loss)	Accumulated Net Realized Gain (Loss) on Investments	Paid-In Capital
First Trust Dow Jones Select MicroCap Index Fund	$56,610	$(1,974,599 )	$1,917,989
First Trust Morningstar Dividend Leaders Index Fund	443,599	(195,628,914 )	195,185,315
First Trust US Equity Opportunities ETF	942	(42,869,417 )	42,868,475
First Trust NYSE® Arca® Biotechnology Index Fund	4,202,661	(57,148,651 )	52,945,990
First Trust Dow Jones Internet Index Fund	13,138,352	(391,776,245 )	378,637,893

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Notes to Financial Statements (Continued)

First Trust Exchange-Traded Fund

December 31, 2023

	Accumulated Net Investment Income (Loss)	Accumulated Net Realized Gain (Loss) on Investments	Paid-In Capital
First Trust Capital Strength ETF	$—	$(247,649,996 )	$247,649,996
First Trust Value Line® Dividend Index Fund	1,543,464	(377,369,817 )	375,826,353
First Trust Growth Strength ETF	1,837	(726,737 )	724,900
First Trust Indxx Aerospace & Defense ETF	—	(2,904,317 )	2,904,317
First Trust Bloomberg Inflation Sensitive Equity ETF	428	(78,238 )	77,810

As of December 31, 2023, the aggregate cost, gross unrealized appreciation, gross unrealized depreciation, and net unrealized appreciation/(depreciation) on investments (including short positions and derivatives, if any) for federal income tax purposes were as follows:

	Tax Cost	Gross Unrealized Appreciation	Gross Unrealized (Depreciation)	Net Unrealized Appreciation (Depreciation)
First Trust Dow Jones Select MicroCap Index Fund	$166,123,562	$23,999,448	$(12,239,004 )	$11,760,444
First Trust Morningstar Dividend Leaders Index Fund	4,075,303,237	222,691,300	(340,523,445 )	(117,832,145 )
First Trust US Equity Opportunities ETF	651,502,262	130,462,109	(13,661,905 )	116,800,204
First Trust NYSE® Arca® Biotechnology Index Fund	1,217,353,119	237,742,658	(166,012,806 )	71,729,852
First Trust Dow Jones Internet Index Fund	6,680,675,286	517,248,102	(1,235,836,068 )	(718,587,966 )
First Trust Capital Strength ETF	7,841,930,811	1,036,816,322	(150,119,051 )	886,697,271
First Trust Value Line® Dividend Index Fund	10,129,414,102	1,167,284,229	(525,315,280 )	641,968,949
First Trust Growth Strength ETF	57,774,906	7,837,349	(486,456 )	7,350,893
First Trust Indxx Aerospace & Defense ETF	39,032,251	3,720,781	(791,848 )	2,928,933
First Trust Bloomberg Inflation Sensitive Equity ETF	1,053,498	68,071	(29,922 )	38,149

H. Expenses

Expenses that are directly related to one of the Funds are charged directly to the respective Fund, except for First Trust Growth Strength ETF, First Trust Indxx Aerospace & Defense ETF, and First Trust Bloomberg Inflation Sensitive Equity ETF (the “Unitary Fee Funds”), for which expenses other than excluded expenses (discussed in Note 3) are paid by the Advisor. General expenses of the Trust are allocated to all the Funds based upon the net assets of each Fund.

First Trust has entered into licensing agreements with each of the following “Licensors” for the respective Funds:

Fund	Licensor
First Trust Dow Jones Select MicroCap Index Fund	S&P Dow Jones Indices LLC
First Trust Morningstar Dividend Leaders Index Fund	Morningstar, Inc.
First Trust US Equity Opportunities ETF	IPOX® Schuster LLC
First Trust NYSE® Arca® Biotechnology Index Fund	ICE Data Indices, LLC
First Trust Dow Jones Internet Index Fund	S&P Dow Jones Indices LLC
First Trust Capital Strength ETF	Nasdaq, Inc.
First Trust Value Line® Dividend Index Fund	Value Line Publishing LLC
First Trust Growth Strength ETF	Nasdaq, Inc.
First Trust Indxx Aerospace & Defense ETF	Indxx, Inc.
First Trust Bloomberg Inflation Sensitive Equity ETF	Bloomberg Index Services Limited

The respective license agreements allow for the use by First Trust of certain trademarks and trade names of the respective Licensors. The Funds are sub-licensees to the applicable license agreement. The respective Funds are required to pay licensing fees, which are shown on the Statements of Operations.

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,

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Notes to Financial Statements (Continued)

First Trust Exchange-Traded Fund

December 31, 2023

Chief Executive Officer of First Trust. First Trust is responsible for the selection and ongoing monitoring of the securities in each Fund’s portfolio, managing the Funds’ business affairs and providing certain administrative services necessary for the management of the Funds.

For the Unitary Fee Funds, First Trust is paid an annual unitary management fee based on a percentage of each Fund’s average daily net assets and is responsible for the expenses of such Fund including the cost of transfer agency, custody, fund administration, legal, audit, license and other services, and excluding fee payments under the Investment Management Agreement, distribution and service fees pursuant to a Rule 12b-1 plan, if any, brokerage expenses, acquired fund fees and expenses, taxes, interest, and extraordinary expenses. The annual unitary management fee payable by each Fund to First Trust for these services will be reduced at certain levels of each Fund’s net assets (“breakpoints”) and calculated pursuant to the following schedule:

Breakpoints	FTGS	MISL	FTIF
Fund net assets up to and including $2.5 billion	0.600 %	0.600 %	0.600 %
Fund net assets greater than $2.5 billion up to and including $5 billion	0.585 %	0.585 %	0.585 %
Fund net assets greater than $5 billion up to and including $7.5 billion	0.570 %	0.570 %	0.570 %
Fund net assets greater than $7.5 billion up to and including $10 billion	0.555 %	0.555 %	0.555 %
Fund net assets greater than $10 billion up to and including $15 billion	0.540 %	0.540 %	0.540 %
Fund net assets greater than $15 billion	0.510 %	0.510 %	0.510 %

For the First Trust Dow Jones Select MicroCap Index Fund, First Trust Morningstar Dividend Leaders Index Fund, First Trust US Equity Opportunities ETF, First Trust NYSE® Arca® Biotechnology Index Fund, First Trust Dow Jones Internet Index Fund, First Trust Capital Strength ETF and First Trust Value Line Dividend Index Fund (such Funds, the “Expense Cap Funds”), First Trust is paid an annual management fee of each Fund’s average daily net assets and calculated pursuant to the following schedule:

Breakpoints	FDM	FDL	FPX	FBT	FDN	FTCS	FVD
Fund net assets up to and including $2.5 billion	0.5000 %	0.3000 %	0.40 %	0.40 %	0.40 %	0.5000 %	0.5000 %
Fund net assets greater than $2.5 billion up to and including $5 billion	0.4875 %	0.2925 %	0.39 %	0.39 %	0.39 %	0.4875 %	0.4875 %
Fund net assets greater than $5 billion up to and including $7.5 billion	0.4750 %	0.2850 %	0.38 %	0.38 %	0.38 %	0.4750 %	0.4750 %
Fund net assets greater than $7.5 billion up to and including $10 billion	0.4625 %	0.2775 %	0.37 %	0.37 %	0.37 %	0.4625 %	0.4625 %
Fund net assets greater than $10 billion up to and including $15 billion	0.4500 %	0.2700 %	0.36 %	0.36 %	0.36 %	0.4500 %	0.4500 %
Fund net assets greater than $15 billion	0.4250 %	0.2550 %	0.34 %	0.34 %	0.34 %	0.4250 %	0.4250 %

For the Expense Cap Funds, the Trust and the Advisor have entered into an Expense Reimbursement and Fee Waiver Agreement (“Agreement”) in which First Trust has agreed to waive fees and/or reimburse Fund expenses to the extent that the operating expenses of each Fund (excluding interest expense, brokerage commissions and other trading expenses, acquired fund fees and expenses, taxes and extraordinary expenses) exceed the below amount as a percentage of average daily net assets per year (the “Expense Cap”). The Expense Cap will be in effect until at least April 30, 2025.

	Expense Cap
First Trust Dow Jones Select MicroCap Index Fund	0.60 %
First Trust Morningstar Dividend Leaders Index Fund	0.45 %
First Trust US Equity Opportunities ETF	0.60 %
First Trust NYSE® Arca® Biotechnology Index Fund	0.60 %
First Trust Dow Jones Internet Index Fund	0.60 %
First Trust Capital Strength ETF	0.65 %
First Trust Value Line® Dividend Index Fund	0.70 %

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Notes to Financial Statements (Continued)

First Trust Exchange-Traded Fund

December 31, 2023

The Trust has multiple service agreements with BNYM. Under the service agreements, BNYM performs custodial, fund accounting, certain administrative services, and transfer agency services for each Fund. As custodian, BNYM is responsible for custody of each Fund’s assets. As fund accountant and administrator, BNYM is responsible for maintaining the books and records of each Fund’s securities and cash. As transfer agent, BNYM is responsible for maintaining shareholder records for each Fund. BNYM is a subsidiary of The Bank of New York Mellon Corporation, a financial holding company.

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

Additionally, the Lead Independent Trustee and the Chairs of the Audit Committee, Nominating and Governance Committee and Valuation Committee are paid annual fees to serve in such capacities, with such compensation allocated pro rata among each fund in the First Trust Fund Complex based on net assets. Independent Trustees are reimbursed for travel and out-of-pocket expenses in connection with all meetings. The Lead Independent Trustee and Committee Chairs 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 December 31, 2023, the cost of purchases and proceeds from sales of investments for each Fund, excluding short-term investments and in-kind transactions, were as follows:

	Purchases	Sales
First Trust Dow Jones Select MicroCap Index Fund	$110,723,803	$110,532,943
First Trust Morningstar Dividend Leaders Index Fund	2,080,047,955	2,076,725,205
First Trust US Equity Opportunities ETF	948,069,014	946,650,315
First Trust NYSE® Arca® Biotechnology Index Fund	415,761,702	419,949,692
First Trust Dow Jones Internet Index Fund	1,174,545,872	1,187,700,262
First Trust Capital Strength ETF	8,927,597,069	8,926,564,991
First Trust Value Line® Dividend Index Fund	6,644,540,002	6,637,886,540
First Trust Growth Strength ETF	11,932,950	11,992,494
First Trust Indxx Aerospace & Defense ETF	3,226,387	3,184,692
First Trust Bloomberg Inflation Sensitive Equity ETF	447,411	447,689

For the fiscal period ended December 31, 2023, the cost of in-kind purchases and proceeds from in-kind sales for each Fund were as follows:

	Purchases	Sales
First Trust Dow Jones Select MicroCap Index Fund	$23,892,211	$14,517,670
First Trust Morningstar Dividend Leaders Index Fund	1,738,646,919	2,399,677,314
First Trust US Equity Opportunities ETF	27,614,552	227,083,144
First Trust NYSE® Arca® Biotechnology Index Fund	45,816,214	262,310,703
First Trust Dow Jones Internet Index Fund	5,247,464,980	4,663,548,198
First Trust Capital Strength ETF	1,896,742,138	2,440,582,024
First Trust Value Line® Dividend Index Fund	664,480,287	2,439,412,618
First Trust Growth Strength ETF	62,082,627	5,789,592
First Trust Indxx Aerospace & Defense ETF	54,520,820	20,601,774
First Trust Bloomberg Inflation Sensitive Equity ETF	2,037,965	1,053,759

5. Creations, Redemptions and Transaction Fees

Each Fund generally issues and redeems its shares in primary market transactions through a creation and redemption mechanism and does not sell or redeem individual shares. Instead, financial entities known as “Authorized Participants” have contractual arrangements with a Fund or one of the Fund’s service providers to purchase and redeem Fund shares directly with the Fund in Creation Units. Prior to the start of trading on every business day, a Fund publishes through the National Securities Clearing Corporation the “basket” of securities, cash or other assets that it will accept in exchange for a Creation Unit of the Fund’s shares. An Authorized Participant that wishes to effectuate a creation of a Fund’s shares deposits with the Fund the “basket” of securities, cash or other assets identified by

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Notes to Financial Statements (Continued)

First Trust Exchange-Traded Fund

December 31, 2023

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.

6. Distribution Plan

The Board of Trustees adopted a Distribution and Service Plan pursuant to Rule 12b-1 under the 1940 Act. In accordance with the Rule 12b-1 plan, the Funds are authorized to pay an amount up to 0.25% of their average daily net assets each year to reimburse First Trust Portfolios L.P. (“FTP”), the distributor of the Funds, for amounts expended to finance activities primarily intended to result in the sale of Creation Units or the provision of investor services. FTP may also use this amount to compensate securities dealers or other persons that are Authorized Participants for providing distribution assistance, including broker-dealer and shareholder support and educational and promotional services.

No 12b-1 fees are currently paid by the Funds, and pursuant to a contractual arrangement, no 12b-1 fees will be paid any time before April 30, 2025 for FDM, FDL, FPX, FBT, FDN, FTCS, and FVD, October 20, 2024 for FTGS and MISL, and March 9, 2025 for FTIF.

7. Indemnification

The Trust, on behalf of the Funds, has a variety of indemnification obligations under contracts with its service providers. The Trust’s maximum exposure under these arrangements is unknown. However, the Trust has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.

8. 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 no subsequent events requiring recognition or disclosure in the financial statements that have not already been disclosed.

Page 79

Report of Independent Registered Public Accounting Firm

To the Shareholders and the Board of Trustees of First Trust Exchange-Traded Fund:

Opinion on the Financial Statements and Financial Highlights

We have audited the accompanying statements of assets and liabilities of First Trust Dow Jones Select MicroCap Index Fund, First Trust Morningstar Dividend Leaders Index Fund, First Trust US Equity Opportunities ETF, First Trust NYSE® Arca® Biotechnology Index Fund, First Trust Dow Jones Internet Index Fund, First Trust Capital Strength ETF, First Trust Value Line® Dividend Index Fund, First Trust Growth Strength ETF, First Trust Indxx Aerospace & Defense ETF, and First Trust Bloomberg Inflation Sensitive Equity ETF (the “Funds”), each a series of First Trust Exchange-Traded Fund, including the portfolios of investments, as of December 31, 2023, the related statements of operations, 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 each of the Funds as of December 31, 2023, and the results of their operations, changes in their net assets, and the financial highlights for the periods indicated in the table below in conformity with accounting principles generally accepted in the United States of America.

Individual Funds Included in the Trust	Statements of Operations	Statements of Changes in Net Assets	Financial Highlights
First Trust Dow Jones Select MicroCap Index Fund	For the year ended December 31, 2023	For the years ended December 31, 2023 and 2022	For the years ended December 31, 2023, 2022, 2021, 2020, and 2019
First Trust Morningstar Dividend Leaders Index Fund
First Trust US Equity Opportunities ETF
First Trust NYSE® Arca® Biotechnology Index Fund
First Trust Dow Jones Internet Index Fund
First Trust Capital Strength ETF Fund
First Trust Value Line® Dividend Index Fund
First Trust Growth Strength ETF	For the year ended December 31, 2023	For the year ended December 31, 2023, and the period from October 25, 2022 (commencement of investment operations) through December 31, 2022
First Trust Indxx Aerospace & Defense ETF
First Trust Bloomberg Inflation Sensitive Equity ETF	For the period from March 13, 2023 (commencement of investment operations) through December 31, 2023

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.

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 December 31, 2023, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

/s/ Deloitte & Touche, LLP

Chicago, Illinois
February 22, 2024

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

Page 80

Additional Information

First Trust Exchange-Traded Fund

December 31, 2023 (Unaudited)

Proxy Voting Policies and Procedures

A description of the policies and procedures that the Trust uses to determine how to vote proxies and information on how 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

For the taxable period ended December 31, 2023, the following percentages of income dividends paid by the Funds qualify for the dividends received deduction available to corporations:

	Dividends Received Deduction
First Trust Dow Jones Select MicroCap Index Fund	88.26 %
First Trust Morningstar Dividend Leaders Index Fund	100.00 %
First Trust US Equity Opportunities ETF	100.00 %
First Trust NYSE® Arca® Biotechnology Index Fund	0.00 %
First Trust Dow Jones Internet Index Fund	0.00 %
First Trust Capital Strength ETF	100.00 %
First Trust Value Line® Dividend Index Fund	100.00 %
First Trust Growth Strength ETF	100.00 %
First Trust Indxx Aerospace & Defense ETF	100.00 %
First Trust Bloomberg Inflation Sensitive Equity ETF	92.80 %

For the taxable period ended December 31, 2023, the following percentages of income dividends paid by the Funds are hereby designated as qualified dividend income:

	Qualified Dividend Income
First Trust Dow Jones Select MicroCap Index Fund	88.26 %
First Trust Morningstar Dividend Leaders Index Fund	100.00 %
First Trust US Equity Opportunities ETF	100.00 %
First Trust NYSE® Arca® Biotechnology Index Fund	0.00 %
First Trust Dow Jones Internet Index Fund	0.00 %
First Trust Capital Strength ETF	100.00 %
First Trust Value Line® Dividend Index Fund	100.00 %
First Trust Growth Strength ETF	100.00 %
First Trust Indxx Aerospace & Defense ETF	100.00 %
First Trust Bloomberg Inflation Sensitive Equity ETF	100.00 %

A portion of each of the Funds’ 2023 ordinary dividends (including short-term capital gains) paid to its shareholders during the fiscal period ended December 31, 2023, may be eligible for the Qualified Business Income Deduction (QBI) under the Internal Revenue Code of 1986, as amended, Section 199A for the aggregate dividends each Fund received from the underlying Real Estate Investment Trusts (REITs) these Funds invest in.

Page 81

Additional Information (Continued)

First Trust Exchange-Traded Fund

December 31, 2023 (Unaudited)

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.

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.

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Additional Information (Continued)

First Trust Exchange-Traded Fund

December 31, 2023 (Unaudited)

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.

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

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Additional Information (Continued)

First Trust Exchange-Traded Fund

December 31, 2023 (Unaudited)

could decline in value or underperform other investments as a result of the risk of loss associated with these market fluctuations. In addition, local, regional or global events such as war, acts of terrorism, spread of infectious diseases or other public health issues, recessions, or other events could have a significant negative impact on a fund and its investments. Such events may affect certain geographic regions, countries, sectors and industries more significantly than others. In February 2022, Russia invaded Ukraine which has caused and could continue to cause significant market disruptions and volatility within the markets in Russia, Europe, and the United States. The hostilities and sanctions resulting from those hostilities could have a significant impact on certain fund investments as well as fund performance. The COVID-19 global pandemic and the ensuing policies enacted by governments and central banks have caused and may continue to cause significant volatility and uncertainty in global financial markets. While the U.S. has resumed “reasonably” normal business activity, many countries continue to impose lockdown measures. Additionally, there is no guarantee that vaccines will be effective against emerging variants of the disease. These events also adversely affect the prices and liquidity of a fund’s portfolio securities or other instruments and could result in disruptions in the trading markets. Any of such circumstances could have a materially negative impact on the value of a fund’s shares and result in increased market volatility. During any such events, a fund’s shares may trade at increased premiums or discounts to their net asset value and the bid/ask spread on a fund’s shares may widen.

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

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

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

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

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

NOT FDIC INSURED NOT BANK GUARANTEED MAY LOSE VALUE

Page 84

Additional Information (Continued)

First Trust Exchange-Traded Fund

December 31, 2023 (Unaudited)

Remuneration

First Trust Advisors L.P. (“First Trust”) is authorised and regulated by the U.S. Securities and Exchange Commission and is entitled to market shares of certain First Trust Exchange-Traded Fund funds it manages (the “Funds”) in certain member states in the European Economic Area in accordance with the cooperation arrangements in Article 42 of the Alternative Investment Fund Managers Directive (the “Directive”). First Trust is required under the Directive to make disclosures in respect of remuneration. The following disclosures are made in line with First Trust’s interpretation of currently available regulatory guidance on remuneration disclosures.

During the year ended December 31, 2023, the amount of remuneration paid (or to be paid) by First Trust Advisors L.P. in respect of the Funds is $15,215,422. This figure is comprised of $669,344 paid (or to be paid) in fixed compensation and $14,546,078 paid (or to be paid) in variable compensation. There were a total of 26 beneficiaries of the remuneration described above. Those amounts include $7,600,816 paid (or to be paid) to senior management of First Trust Advisors L.P. and $7,614,606 paid (or to be paid) to other employees whose professional activities have a material impact on the risk profiles of First Trust Advisors L.P. or the Funds (collectively, “Code Staff”).

Code Staff included in the aggregated figures disclosed above are rewarded in line with First Trust’s remuneration policy (the “Remuneration Policy”) which is determined and implemented by First Trust’s senior management. The Remuneration Policy reflects First Trust’s ethos of good governance and encapsulates the following principal objectives:

to provide a clear link between remuneration and performance of First Trust and to avoid rewarding for failure;

ii.

to promote sound and effective risk management consistent with the risk profiles of the funds managed by First Trust; and

iii.

to remunerate staff in line with the business strategy, objectives, values and interests of First Trust and the funds managed by First Trust in a manner that avoids conflicts of interest.

First Trust assesses various risk factors which it is exposed to when considering and implementing remuneration for Code Staff and considers whether any potential award to such person(s) would give rise to a conflict of interest. First Trust does not reward failure, or consider the taking of risk or failure to take risk in its remuneration of Code Staff.

First Trust assesses performance for the purposes of determining payments in respect of performance-related remuneration of Code Staff by reference to a broad range of measures including (i) individual performance (using financial and non-financial criteria), and (ii) the overall performance of First Trust. Remuneration is not based upon the performance of the Funds.

The elements of remuneration are balanced between fixed and variable and the senior management sets fixed salaries at a level sufficient to ensure that variable remuneration incentivises and rewards strong individual performance but does not encourage excessive risk taking.

No individual is involved in setting his or her own remuneration.

Page 85

Board of Trustees and Officers

First Trust Exchange-Traded Fund

December 31, 2023 (Unaudited)

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

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

Name, Year of Birth and Position with the Trust	Term of Office and Year First Elected or Appointed	Principal Occupations During Past 5 Years	Number of Portfolios in the First Trust Fund Complex Overseen by Trustee	Other Trusteeships or Directorships Held by Trustee During Past 5 Years
INDEPENDENT TRUSTEES
Richard E. Erickson, Trustee (1951)	• Indefinite Term • Since Inception	Retired; Physician, Edward-Elmhurst Medical Group (2021 to September 2023); Physician and Officer, Wheaton Orthopedics (1990 to 2021)	257	None
Thomas R. Kadlec, Trustee (1957)	• Indefinite Term • Since Inception	Retired; President, ADM Investors Services, Inc. (Futures Commission Merchant) (2010 to July 2022)	257	Director, National Futures Association and ADMIS Singapore Ltd.; Formerly, Director of ADM Investor Services, Inc., ADM Investor Services International, ADMIS Hong Kong Ltd., and Futures Industry Association
Denise M. Keefe, Trustee (1964)	• Indefinite Term • Since 2021	Executive Vice President, Advocate Aurora Health and President, Advocate Aurora Continuing Health Division (Integrated Healthcare System)	257	Director and Board Chair of Advocate Home Health Services, Advocate Home Care Products and Advocate Hospice; Director and Board Chair of Aurora At Home (since 2018); Director of Advocate Physician Partners Accountable Care Organization; Director of RML Long Term Acute Care Hospitals; Director of Senior Helpers (since 2021); and Director of MobileHelp (since 2022)
Robert F. Keith, Trustee (1956)	• Indefinite Term • Since Inception	President, Hibs Enterprises (Financial and Management Consulting)	257	Formerly, Director of Trust Company of Illinois
Niel B. Nielson, Trustee (1954)	• Indefinite Term • Since Inception	Senior Advisor (2018 to Present), Managing Director and Chief Operating Officer (2015 to 2018), Pelita Harapan Educational Foundation (Educational Products and Services)	257	None

INTERESTED TRUSTEE
James A. Bowen(1), Trustee, Chairman of the Board (1955)	• Indefinite Term • Since Inception	Chief Executive Officer, First Trust Advisors L.P. and First Trust Portfolios L.P., Chairman of the Board of Directors, BondWave LLC (Software Development Company) and Stonebridge Advisors LLC (Investment Advisor)	257	None

(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 86

Board of Trustees and Officers (Continued)

First Trust Exchange-Traded Fund

December 31, 2023 (Unaudited)

Name and Year of Birth	Position and Offices with Trust	Term of Year First Elected or Appointed	Principal Occupations During Past 5 Years
ADVISORY BOARD OF THE TRUST
Bronwyn Wright (1971)	Advisory Board Member	• Indefinite term • Since 2023	Independent Director to a number of Irish collective investment funds (2009 to Present); Various roles at international affiliates of Citibank (1994 to 2009), including Managing Director, Citibank Europe plc and Head of Securities and Fund Services, Citi Ireland (2007 to 2009)

Name and Year of Birth	Position and Offices with Trust	Term of Office and Length of Service	Principal Occupations During Past 5 Years
OFFICERS(2)
James M. Dykas (1966)	President and Chief Executive Officer	• Indefinite Term • Since 2016	Managing Director and Chief Financial Officer, First Trust Advisors L.P. and First Trust Portfolios L.P.; Chief Financial Officer, BondWave LLC (Software Development Company) and Stonebridge Advisors LLC (Investment Advisor)
Derek D. Maltbie (1972)	Treasurer, Chief Financial Officer and Chief Accounting Officer	• Indefinite Term • Since 2023	Senior Vice President, First Trust Advisors L.P. and First Trust Portfolios L.P., July 2021 to Present. Previously, Vice President, First Trust Advisors L.P. and First Trust Portfolios L.P., 2014 - 2021.
W. Scott Jardine (1960)	Secretary and Chief Legal Officer	• Indefinite Term • Since Inception	General Counsel, First Trust Advisors L.P. and First Trust Portfolios L.P.; Secretary and General Counsel, BondWave LLC; Secretary, Stonebridge Advisors LLC
Daniel J. Lindquist (1970)	Vice President	• Indefinite Term • Since Inception	Managing Director, First Trust Advisors L.P. and First Trust Portfolios L.P.
Kristi A. Maher (1966)	Chief Compliance Officer and Assistant Secretary	• Indefinite Term • Chief Compliance Officer Since January 2011 • Assistant Secretary Since Inception	Deputy General Counsel, First Trust Advisors L.P. and First Trust Portfolios L.P.
Roger F. Testin (1966)	Vice President	• Indefinite Term • Since Inception	Senior Vice President, First Trust Advisors L.P. and First Trust Portfolios L.P.
Stan Ueland (1970)	Vice President	• Indefinite Term • Since Inception	Senior Vice President, First Trust Advisors L.P. and First Trust Portfolios L.P.

(2)

The term “officer” means the president, vice president, secretary, treasurer, controller or any other officer who performs a policy making function.

Page 87

First Trust Exchange-Traded Fund

December 31, 2023 (Unaudited)

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

Sources of Information

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

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

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

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

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

Information Collected

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

Disclosure of Information

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

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

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

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

Use of Website Analytics

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

Confidentiality and Security

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

Policy Updates and Inquiries

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

March 2023

Page 88

Shareholder Letter	2
Market Overview	3
Fund Performance Overview
First Trust Dow Jones Select MicroCap Index Fund (FDM)	4
First Trust Morningstar Dividend Leaders Index Fund (FDL)	6
First Trust US Equity Opportunities ETF (FPX)	8
First Trust NYSE® Arca® Biotechnology Index Fund (FBT)	10
First Trust Dow Jones Internet Index Fund (FDN)	12
First Trust Capital Strength ETF (FTCS)	14
First Trust Value Line® Dividend Index Fund (FVD)	16
First Trust Growth Strength ETF (FTGS)	18
First Trust Indxx Aerospace & Defense ETF (MISL)	20
First Trust Bloomberg Inflation Sensitive Equity ETF (FTIF)	22
Notes to Fund Performance Overview	24
Understanding Your Fund Expenses	25
Portfolio of Investments
First Trust Dow Jones Select MicroCap Index Fund (FDM)	27
First Trust Morningstar Dividend Leaders Index Fund (FDL)	31
First Trust US Equity Opportunities ETF (FPX)	33
First Trust NYSE® Arca® Biotechnology Index Fund (FBT)	37
First Trust Dow Jones Internet Index Fund (FDN)	39
First Trust Capital Strength ETF (FTCS)	40
First Trust Value Line® Dividend Index Fund (FVD)	42
First Trust Growth Strength ETF (FTGS)	45
First Trust Indxx Aerospace & Defense ETF (MISL)	47
First Trust Bloomberg Inflation Sensitive Equity ETF (FTIF)	48
Statements of Assets and Liabilities	50
Statements of Operations	52
Statements of Changes in Net Assets	56
Financial Highlights	60
Notes to Financial Statements	70
Report of Independent Registered Public Accounting Firm	80
Additional Information	81
Board of Trustees and Officers	86
Privacy Policy	88

Repurchase Agreements
Total gross amount presented on the Statements of Assets and Liabilities(3)	$21,969,941
Non-cash Collateral(4)	(21,969,941 )
Net Amount	$—

(3)	The amount is included in “Investments, at value” on the Statements of Assets and Liabilities.
(4)	At December 31, 2023, the value of the collateral received from each seller exceeded the value of the repurchase agreements.

First Trust Growth Strength ETF (FTGS)		First Trust Indxx Aerospace & Defense ETF (MISL)		First Trust Bloomberg Inflation Sensitive Equity ETF (FTIF)
Year Ended 12/31/2023	Period Ended 12/31/2022 (a)	Year Ended 12/31/2023	Period Ended 12/31/2022 (a)	Period Ended 12/31/2023 (b)

$155,625	$2,146	$232,849	$1,699	$16,503
445,140	2,655	2,828,484	101	59,788
7,428,679	7,454	2,942,661	90,357	49,055
8,029,444	12,255	6,003,994	92,157	125,346


(160,091 )	(2,140 )	(247,120 )	(1,690 )	(16,931 )


62,191,053	1,014,356	54,631,858	2,139,654	2,041,251
(5,877,891 )	—	(20,629,990 )	—	(1,054,189 )
56,313,162	1,014,356	34,001,868	2,139,654	987,062
64,182,515	1,024,471	39,758,742	2,230,121	1,095,477


1,024,471	—	2,230,121	—	—
$65,206,986	$1,024,471	$41,988,863	$2,230,121	$1,095,477


50,002	—	100,002	—	—
2,600,000	50,002	2,400,000	100,002	100,002
(250,000 )	—	(850,000 )	—	(50,000 )
2,400,002	50,002	1,650,002	100,002	50,002