UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-22717
First Trust Exchange-Traded Fund VI |
(Exact name of registrant as specified in charter) |
120 East Liberty Drive, Suite 400
Wheaton, IL 60187 |
(Address of principal executive offices) |
W. Scott Jardine, Esq.
First Trust Portfolios L.P.
120 East Liberty Drive, Suite 400
Wheaton, IL 60187 |
(Name and address of agent for service) |
Registrant’s telephone number, including
area code: (630) 765-8000
Date of fiscal year end: September 30
Date of reporting period: September 30, 2022
Form N-CSR is to be used by management investment
companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required
to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use
the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information
specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection
of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”)
control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing
the burden to Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549. The OMB has reviewed this collection
of information under the clearance requirements of 44 U.S.C. § 3507.
Item 1. Report to Stockholders.
The registrant’s annual report transmitted
to shareholders pursuant to Rule 30e-1 under the Investment Company Act of 1940 is as follows:
First
Trust Exchange-Traded Fund VI
Book 1
First Trust NASDAQ Technology Dividend Index Fund (TDIV)
Multi-Asset Diversified Income Index Fund (MDIV)
First Trust S&P International Dividend Aristocrats ETF (FID)
First Trust BuyWrite Income ETF (FTHI)
First Trust Nasdaq BuyWrite Income ETF (FTQI)
(formerlyFirst
Trust Hedged BuyWrite Income ETF (FTLB))
First Trust Rising Dividend Achievers ETF (RDVY)
First Trust Dorsey Wright Focus 5 ETF (FV)
First Trust RBA American Industrial Renaissance® ETF
(AIRR)
First Trust Dorsey Wright Momentum & Dividend ETF (DDIV)
First Trust Dorsey Wright International Focus 5 ETF (IFV)
First Trust Dorsey Wright Dynamic Focus 5 ETF (FVC)
First Trust Indxx Innovative Transaction & Process ETF (LEGR)
First Trust Nasdaq Artificial Intelligence and Robotics ETF (ROBT)
First Trust International Developed Capital Strength ETF (FICS)
Annual Report
For the Year Ended
September 30, 2022
First
Trust Exchange-Traded Fund VI
Annual
Report
September
30, 2022
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 VI (the “Trust”) described in this report (each such series is referred
to as a “Fund” and collectively, the “Funds”) to be materially different from any future results, performance
or achievements expressed or implied by the forward-looking statements. When evaluating the information included in this report, you are
cautioned not to place undue reliance on these forward-looking statements, which reflect the judgment of the Advisor and its representatives
only as of the date hereof. We undertake no obligation to publicly revise or update these forward-looking statements to reflect events
and circumstances that arise after the date hereof.
Performance
and Risk Disclosure
There
is no assurance that any Fund described in this report will achieve its investment objectives. Each Fund is subject to market risk, which
is the possibility that the market values of securities owned by the Fund will decline and that the value of the Fund’s shares may
therefore be less than what you paid for them. Accordingly, you can lose money by investing in a Fund. See “Risk Considerations”
in the Additional Information section of this report for a discussion of certain other risks of investing in the Funds.
Performance
data quoted represents past performance, which is no guarantee of future results, and current performance may be lower or higher than
the figures shown. For the most recent month-end performance figures, please visit www.ftportfolios.com
or speak with your financial advisor. Investment returns, net asset value and share price will fluctuate and Fund shares, when sold, may
be worth more or less than their original cost.
The
Advisor may also periodically provide additional information on Fund performance on each Fund’s web page at www.ftportfolios.com.
How
to Read This Report
This
report contains information that may help you evaluate your investment. It includes details about each Fund and presents data and analysis
that provide insight into each Fund’s performance and investment approach.
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 the prospectus, the statement of additional information, and other Fund
regulatory filings.
First
Trust Exchange-Traded Fund VI
Annual
Letter from the Chairman and CEO
September
30, 2022
Dear
Shareholders,
First
Trust is pleased to provide you with the annual report for certain series of the First Trust Exchange-Traded Fund VI (the “Funds”),
which contains detailed information about the Funds for the twelve months ended September 30, 2022.
It
is times like these that really test the mettle of investors. Are you someone that is implementing an investment plan with a long time
horizon, a trader by nature, or do you fall somewhere in between? Frankly, the current climate is challenging for just about any strategy.
While most investors are accustomed to dealing with high levels of volatility in the stock market, some of the daily swings we have witnessed
lately have not only been uncharacteristically sharp but have occasionally seemed nearly inexplicable, in my opinion.
In
case you have not noticed, volatility is also elevated in the fixed-income market. Bond valuations are down big in 2022. Year-to-date
through October 31, 2022, the ICE BofA 15+ Year U.S. Treasury Index experienced a price decline of 33.51%, according to Bloomberg. It
was down 31.87% on a total return basis, which includes reinvested interest. To put this into perspective, over the past 40 years, the
worst annual showing by the U.S. Long-Term Government Bond Index (20-Year) tracked by Morningstar was the -14.90% total return posted
in 2009 (think 2008-2009 global financial crisis). For those who may be unaware, investors benefitted from a trend of declining bond yields
from September 1981 through August 2020. While that is an incredible run, nothing lasts forever. Suffice it to say, a lot of pain has
been endured by investors in the markets this year and we believe there could be more to come in the near-term. The aggressive interest
rate hikes by the Federal Reserve (the “Fed”) are a signal to the markets that it is behind the inflation curve. Moving forward,
the Fed will be looking to lower inflation while simultaneously engineering a soft landing in the economy. That will be easier said than
done, in my opinion.
There
are far more headwinds challenging the securities markets than tailwinds. Here are just a few of those headwinds: stubbornly high inflation;
additional rate hikes expected from the Fed from their November and December 2022 meetings, which could potentially push bond yields higher;
the ongoing war between Russia and Ukraine, which is impacting the supply and prices of crude oil and natural gas; China enforcing a zero-tolerance
policy to combat the spread of the coronavirus by locking down entire cities to its own economic detriment; and the potential for food
and energy shortages this coming winter. With the housing market looking like it is finally cooling off, due largely to a huge spike in
mortgage rates this year, which were up more than double the rate at the start of the year, the last big tailwind standing may just be
the strong U.S. labor market. If the job market can hang in there, the Fed’s goal of a soft landing for the economy may be attainable.
I think we will have a clearer picture of things at the start of 2023.
Year-to-date
through October 31, 2022, the S&P 500® Index (the “Index”)
posted a total return of -17.70%, according to Bloomberg, which puts the Index in bear market territory. A bear market is defined as a
20% or greater decline in the price of a security or index from its most recent peak. While the 17.70% decline in the Index would technically
qualify as a stock market correction, investors should continue to view the current downturn as a bear market, in my opinion. Keep in
mind, since World War II, there have been 12 bear markets in the Index, excluding the current bear market, according to Yardeni Research.
The average price decline of those 12 bear markets was 33.6%. The average price gain over the 12-months following the trough reached during
those bear markets was 40.8%, according to Bloomberg. Bear markets come and go. You can’t catch the turn if you are not in the market
when the turn comes.
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.
First
Trust Exchange-Traded Fund VI
Annual
Report
September
30, 2022
Robert
F. Carey, CFA
Senior
Vice President and Chief Market Strategist
First
Trust Advisors L.P.
Mr.
Carey is responsible for the overall management of research and analysis of the First Trust product line. Mr. Carey has more than 30 years
of experience as an Equity and Fixed-Income Analyst and is a recipient of the Chartered Financial Analyst (“CFA”) designation.
He is a graduate of the University of Illinois at Champaign-Urbana with a B.S. in Physics. He is also a member of the Investment Analysts
Society of Chicago and the CFA Institute. Mr. Carey has appeared as a guest on such programs as Bloomberg TV, CNBC, and WBBM Radio, and
has been quoted by several publications, including The Wall Street Journal, The
Wall Street Reporter, Bloomberg News Service, and Registered
Rep.
State
of the Global Economy
The
International Monetary Fund (“IMF”) reported in its October 2022 release that global gross domestic product (“GDP”)
growth is expected to come in at 3.2% in 2022 and 2.7% in 2023, down from 6.0% in 2021. The IMF sees the U.S. economy growing 1.6% in
2022 and 1.0% in 2023, down from 5.7% in 2021. With respect to all Advanced Economies, the IMF is projecting GDP growth of 2.4% in 2022
and 1.1% in 2023, down from 5.2% in 2021. Lastly, it sees Emerging Markets and Developing Economies growing 3.7% in 2022 and 3.7% again
in 2023, down from 6.6% in 2021. From 1970 to 2021, the average global GDP growth rate was 3.6%, according to the IMF. Looking ahead,
the IMF notes that the global economy must navigate three key pressures: the war in Ukraine, world-wide inflation and continued economic
headwinds in the U.S., Europe and China.
Russia’s
war with Ukraine continues to destabilize the global economy, increasing the cost of living and impeding economic growth. European natural
gas prices have spiked four-fold since 2021, according to the IMF. Russia has decreased natural gas deliveries to Europe by over 80% of
their 2021 total, greatly increasing the likelihood of an energy shortage. Worldwide inflationary pressures continue to fester, with global
inflation forecast to surge to 8.8% in 2022, up from 4.7% in 2021. Central banks have rapidly tightened monetary policy in response, and
will likely have to continue to do so, in our opinion. These tighter financial conditions have produced significant headwinds to growth
among most major economies and are likely to have at least some impact in 2023.
Performance
of Global Stocks and Bonds
U.S.
equities have turned negative over the past year. The S&P 500®
(the “Index”), S&P MidCap 400® and S&P
SmallCap 600®
Indices posted total returns of -15.47%, -15.25% and -18.83%, respectively, for the 12-month period ended September 30, 2022, according
to Bloomberg. Value stocks outperformed growth stocks over the period. The S&P 500®
Value Index posted a total return of -9.63% versus -21.11% for the S&P 500®
Growth Index; an indication that investors may be anticipating slower growth over the near-term and are opting for companies that are
trading at more attractive valuations. Nine of the eleven sectors that comprise the Index were down on a total return basis, with Energy
and Utilities posting the only positive returns. The top-performer was Energy, up 45.70%, while the worst showing came from Communication
Services, down 39.05%.
A
Bloomberg survey of 23 equity strategists found that the average 2022 year-end price target for the Index was 4,346 as of September 15,
2022, down from 4,376 on August 16, 2022, according to its own release. Heading into 2022 (December 16, 2021), strategists had an average
target of 4,950. The highest and lowest estimates on September 15, 2022, were 5,100 and 3,400, respectively. On September 15, 2022, the
Index closed at 3,901.35, which was 18.66% below its all-time closing high of 4,796.56 on January 3, 2022. As of September 30, 2022, Bloomberg’s
2022, 2023 and 2024 consensus earnings growth rate estimates for the Index stood at 9.61%, 6.14% and 8.44%, respectively.
The
performance of foreign equities continues to lag that of major U.S. stock indices. Over the past 12 months, the MSCI World ex USA and
MSCI Emerging Markets equity indices posted total returns of -23.91% (USD) and -28.11% (USD), respectively, according to Bloomberg. Major
foreign bond indices were also in negative territory. The Bloomberg Global Aggregate Index of higher quality debt posted a total return
of -20.43% (USD), while the EM Hard Currency Aggregate Index of emerging markets debt fell by 23.01% (USD), according to Bloomberg. Over
that same period, the U.S. dollar surged by 18.98% against a basket of major currencies, as measured by the U.S. Dollar Index (DXY), pressuring
the returns on unhedged foreign securities held by U.S. investors.
U.S.
bond indices have not been immune to the aggressive tightening of monetary policy by central banks, particularly the U.S. Federal Reserve.
The best performing index we track was the U.S. Treasury: Intermediate Index, which posted a total return of -9.23% for the 12-month period
ended September 30, 2022. The worst performer was the U.S. Corporate Investment Grade Index which posted a total return of -18.53% for
the same period. The yield on the benchmark 10-Year Treasury Note (“T-Note”) rose by 234 basis points (a 157.47% increase
over the period) to close at 3.83% on September 30, 2022, according to Bloomberg. For comparative purposes, the average yield on the 10-Year
T-Note was 2.10% for the 10-year period ended September 30, 2022.
Fund
Performance Overview (Unaudited)
First
Trust NASDAQ Technology Dividend Index Fund (TDIV)
The
First Trust NASDAQ Technology 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 Nasdaq Technology Dividend IndexTM
(the “Index”). The shares of the Fund are listed and trade on The Nasdaq Stock Market LLC under the ticker symbol “TDIV.”
The Fund normally invests at least 90% of its net assets (including investment borrowings) in the common stocks and depositary receipts
that comprise the Index.
The
Index includes up to 100 technology and telecommunications companies that pay a regular or common dividend. To be selected for the Index,
a company must be classified as a technology or telecommunications company under the Industry Classification Benchmark and have a minimum
market capitalization of $500 million. The Index may include U.S.-listed securities of non-U.S. companies, including companies located
in emerging market countries.
Performance
|
|
|
|
|
|
|
|
|
|
Average
Annual Total Returns |
|
Cumulative
Total Returns |
|
1
Year Ended 9/30/22 |
5
Years Ended 9/30/22 |
10
Years Ended 9/30/22 |
Inception
(8/13/12) to 9/30/22 |
|
5
Years Ended 9/30/22 |
10
Years Ended 9/30/22 |
Inception
(8/13/12) to 9/30/22 |
Fund
Performance |
|
|
|
|
|
|
|
|
NAV
|
-20.93%
|
8.61%
|
10.97%
|
10.74%
|
|
51.16%
|
183.23%
|
181.19%
|
Market
Price |
-20.90%
|
8.63%
|
10.97%
|
10.74%
|
|
51.23%
|
183.12%
|
181.22%
|
Index
Performance |
|
|
|
|
|
|
|
|
Nasdaq
Technology Dividend IndexTM |
-20.54%
|
9.30%
|
11.68%
|
11.45%
|
|
55.98%
|
201.83%
|
199.88%
|
S&P
500® Index |
-15.47%
|
9.24%
|
11.70%
|
11.86%
|
|
55.55%
|
202.44%
|
211.22%
|
S&P
500® Information Technology Index |
-20.00%
|
16.74%
|
17.09%
|
17.13%
|
|
116.78%
|
384.27%
|
396.21%
|
(See
Notes to Fund Performance Overview on page 36.)
The
Fund generated a net asset value (“NAV”) return of -20.93% during the 12-month period covered by this report. During the same
period, the S&P 500® Information Technology Index (the
Benchmark”) generated a return of -20.00%. Two industries comprised 99% of the Fund’s investments during the period: 83.3%
was allocated to the Information Technology sector, which contributed -16.4% to the Fund’s return, and 15.7% was allocated to the
Communication Services sector, which contributed -3.7% to the Fund’s return.
Nasdaq®
and Nasdaq Technology Dividend IndexTM 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 their 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.
Fund
Performance Overview (Unaudited) (Continued)
First
Trust NASDAQ Technology Dividend Index Fund (TDIV) (Continued)
Sector
Allocation |
%
of Total Investments |
Information
Technology |
85.4%
|
Communication
Services |
14.1
|
Industrials
|
0.5
|
Total
|
100.0%
|
Top
Ten Holdings |
%
of Total Investments |
International
Business Machines Corp. |
8.5%
|
Microsoft
Corp. |
8.1
|
Broadcom,
Inc. |
8.1
|
Apple,
Inc. |
8.0
|
Intel
Corp. |
7.4
|
Texas
Instruments, Inc. |
4.3
|
QUALCOMM,
Inc. |
3.9
|
Oracle
Corp. |
3.8
|
Taiwan
Semiconductor Manufacturing Co., Ltd., ADR |
2.9
|
Analog
Devices, Inc. |
2.4
|
Total
|
57.4%
|
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
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.
Fund
Performance Overview (Unaudited) (Continued)
Multi-Asset
Diversified Income Index Fund (MDIV)
The
Multi-Asset Diversified Income Index Fund (the “Fund”) seeks investment results that correspond generally to the price and
yield (before the Fund’s fees and expenses) of an index called the Nasdaq US Multi-Asset Diversified Income IndexSM
(the “Index”). The shares of the Fund are listed and trade on The Nasdaq Stock Market LLC under the ticker symbol “MDIV.”
The Fund normally invests at least 90% of its net assets (including investment borrowings) in the common stocks and/or depositary receipts,
real estate investment trusts (“REITs”), preferred securities, master limited partnerships (“MLPs”) and exchange-traded
fund (“ETF”) that comprise the Index. The Index allocates 20% of its weight to the equity securities segment, 20% of its weight
to the REIT segment, 20% of its weight to the preferred securities segment, 20% of its weight to the MLP segment and 20% of its weight
to an ETF that invests in high yield corporate debt securities. The ETF in which the Fund invests may be advised by First Trust Advisors
L.P.
The
Index is designed to provide exposure to five asset segments, each selected to result in a consistent and high yield for the Index. The
Index is reconstituted and rebalanced quarterly and the Fund will make corresponding changes to its portfolio shortly after the Index
changes are made public.
Performance
|
|
|
|
|
|
|
|
|
|
Average
Annual Total Returns |
|
Cumulative
Total Returns |
|
1
Year Ended 9/30/22 |
5
Years Ended 9/30/22 |
10
Years Ended 9/30/22 |
Inception
(8/13/12) to 9/30/22 |
|
5
Years Ended 9/30/22 |
10
Years Ended 9/30/22 |
Inception
(8/13/12) to 9/30/22 |
Fund
Performance |
|
|
|
|
|
|
|
|
NAV
|
-6.25%
|
0.30%
|
2.71%
|
2.79%
|
|
1.52%
|
30.59%
|
32.14%
|
Market
Price |
-6.25%
|
0.35%
|
2.71%
|
2.80%
|
|
1.75%
|
30.62%
|
32.23%
|
Index
Performance |
|
|
|
|
|
|
|
|
Nasdaq
US Multi-Asset Diversified Income IndexSM |
-5.80%
|
0.84%
|
3.34%
|
3.43%
|
|
4.29%
|
38.87%
|
40.71%
|
S&P
500® Index |
-15.47%
|
9.24%
|
11.70%
|
11.86%
|
|
55.55%
|
202.44%
|
211.22%
|
Dow
Jones U.S. Select DividendTM Index* |
-3.10%
|
6.89%
|
10.53%
|
10.53%
|
|
39.56%
|
172.03%
|
175.69%
|
(See
Notes to Fund Performance Overview on page 36.)
The
Fund generated a NAV return of -6.25% during the 12-month period covered by this report. During the same period, the S&P 500®
Index (the “Benchmark”) generated a return of -15.47%. The Fund seeks to invest approximately 20% of its assets in each of
five categories: Equities, Real Estate Investment Trusts (“REITs”), Preferred Securities, Master Limited Partnerships (“MLPs”),
and a high-yield corporate debt exchange-traded fund. During the period covered by this report, the most significant positive contribution
came from the allocation to MLPs, which contributed 2.7% to the Fund’s overall return. During that same period, the most significant
negative contribution to the Fund’s return came from the allocation to REITs, which caused a -5.2% return for the Fund.
*
|
The
Dow Jones U.S. Select DividendTM Index represents 100 of the United
States’ leading stocks by dividend yield. |
Nasdaq®
and Nasdaq US Multi-Asset Diversified Income IndexSM 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 their 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.
Fund
Performance Overview (Unaudited) (Continued)
Multi-Asset
Diversified Income Index Fund (MDIV) (Continued)
Sector
Allocation |
%
of Total Investments |
Financials
|
31.3%
|
Other*
|
20.7
|
Energy
|
19.8
|
Real
Estate |
11.8
|
Communication
Services |
3.4
|
Industrials
|
3.3
|
Consumer
Staples |
2.9
|
Utilities
|
2.4
|
Materials
|
1.6
|
Information
Technology |
1.1
|
Consumer
Discretionary |
1.0
|
Health
Care |
0.7
|
Total
|
100.0%
|
*
|
Exchange-traded
fund with holdings representing multiple sectors. |
Top
Ten Holdings |
%
of Total Investments |
First
Trust Tactical High Yield ETF |
20.7%
|
Icahn
Enterprises, L.P. |
1.5
|
SL
Green Realty Corp. |
1.4
|
Old
Republic International Corp. |
1.2
|
USA
Compression Partners, L.P. |
1.2
|
WESCO
International, Inc., Series A |
1.2
|
Ready
Capital Corp. |
1.1
|
KNOT
Offshore Partners, L.P. |
1.1
|
Broadmark
Realty Capital, Inc. |
1.1
|
Two
Harbors Investment Corp. |
1.0
|
Total
|
31.5%
|
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
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.
Fund
Performance Overview (Unaudited) (Continued)
First
Trust S&P International Dividend Aristocrats ETF (FID)
The
First Trust S&P International Dividend Aristocrats ETF (the “Fund”) seeks investment results that correspond generally
to the price and yield (before the Fund’s fees and expenses) of an index called the S&P International Dividend Aristocrats Index
(the “Index”). The shares of the Fund are listed and trade on The Nasdaq Stock Market LLC under the ticker symbol “FID.”
The Fund normally invests at least 90% of its net assets (including investment borrowings) in the equity securities that comprise the
Index. The Index measures the performance of high dividend yielding companies that have followed a managed-dividends policy of increasing
or maintaining dividends for at least ten consecutive years.
Performance
|
|
|
|
|
|
|
|
Average
Annual Total Returns |
|
Cumulative
Total Returns |
|
1
Year Ended 9/30/22 |
5
Years Ended 9/30/22 |
Inception
(8/22/13) to 9/30/22 |
|
5
Years Ended 9/30/22 |
Inception
(8/22/13) to 9/30/22 |
Fund
Performance |
|
|
|
|
|
|
NAV
|
-18.39%
|
-1.73%
|
0.53%
|
|
-8.34%
|
4.93%
|
Market
Price |
-18.15%
|
-1.80%
|
0.54%
|
|
-8.69%
|
4.99%
|
Index
Performance |
|
|
|
|
|
|
S&P
International Dividend Aristocrats Index(1) |
-17.19%
|
N/A
|
N/A
|
|
N/A
|
N/A
|
Dow
Jones EPAC Select DividendTM Index(2)
|
-20.66%
|
-1.91%
|
0.95%
|
|
-9.21%
|
8.95%
|
MSCI
World ex USA Index |
-23.91%
|
-0.39%
|
2.33%
|
|
-1.96%
|
23.34%
|
(See
Notes to Fund Performance Overview on page 36.)
The
Fund generated a NAV return of -18.39% during the 12-month period covered by this report. During the same period, the MSCI World ex USA
Index (the “Benchmark”) generated a return of -23.91%. Japan received the greatest allocation of any country in the Fund during
the period. With an allocation of 20.1%, investments in Japan contributed -2.6% to the Fund’s return, which was the most negative
contribution to the Fund’s return of any country in the Fund. The only positive contribution came from investments in Mexico with
a contribution to the Fund’s return of 0.3%. The Fund’s currency exposure caused -10.4% of underperformance during the
period covered by this report.
(1)
|
On
August 30, 2018, the Fund’s underlying index changed from the Nasdaq International Multi-Asset Diversified Income IndexSM
to the S&P International Dividend Aristocrats Index (the “Index”). Therefore, the Fund’s performance and historical
returns shown for the periods prior to August 30, 2018, are not necessarily indicative of the performance that the Fund, based on its
current index, would have generated. Since the Index had an inception date of April 30, 2018, it was not in existence for all of the periods
disclosed. The old index was terminated on November 23, 2018, so performance data does not exist for these time periods. |
(2)
|
The
Dow Jones EPAC Select DividendTM Index measures the performance
of a selected group of companies, from non-U.S. developed markets (Europe, Pacific Asia, and Canada), that have provided relatively high
dividend yields on a consistent basis over time. |
S&P
International Dividend Aristocrats Index (“Index”) is a product of S&P Dow Jones Indices LLC or its affiliates (“SPDJI”)
and has been licensed for use by First Trust. Standard & Poor’s®
and S&P® are registered trademarks of Standard &
Poor’s Financial Services LLC (“S&P”); and these trademarks have been licensed for use by SPDJI and sublicensed
for certain purposes by First Trust. The Fund is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, or their respective
affiliates and none of such parties make any representation regarding the advisability of investing in such product nor do they have any
liability for any errors, omissions, or interruptions of the Index.
Fund
Performance Overview (Unaudited) (Continued)
First
Trust S&P International Dividend Aristocrats ETF (FID) (Continued)
Sector
Allocation |
%
of Total Investments |
Financials
|
24.9%
|
Utilities
|
24.0
|
Real
Estate |
16.4
|
Industrials
|
7.9
|
Energy
|
7.8
|
Communication
Services |
6.9
|
Materials
|
4.6
|
Consumer
Staples |
4.2
|
Health
Care |
3.3
|
Total
|
100.0%
|
Country
Allocation |
%
of Total Investments |
Canada
|
25.3%
|
Japan
|
17.4
|
Hong
Kong |
14.8
|
Switzerland
|
10.5
|
United
Kingdom |
6.1
|
France
|
3.3
|
Germany
|
2.8
|
Spain
|
2.2
|
South
Korea |
2.2
|
Mexico
|
2.0
|
Finland
|
2.0
|
Australia
|
1.8
|
Bermuda
|
1.6
|
Norway
|
1.4
|
Singapore
|
1.4
|
Portugal
|
1.3
|
Belgium
|
1.2
|
Cayman
Islands |
1.0
|
Sweden
|
0.9
|
Netherlands
|
0.8
|
Total
|
100.0%
|
Top
Ten Holdings |
%
of Total Investments |
Sino
Land Co., Ltd. |
2.3%
|
Capital
Power Corp. |
2.3
|
Enagas
S.A. |
2.2
|
Keyera
Corp. |
2.2
|
KT&G
Corp. |
2.2
|
Electric
Power Development Co., Ltd. |
2.1
|
Takeda
Pharmaceutical Co., Ltd. |
2.0
|
Arca
Continental S.A.B. de C.V. |
2.0
|
New
World Development Co., Ltd. |
1.9
|
Sun
Hung Kai Properties Ltd. |
1.9
|
Total
|
21.1%
|
Fund
Performance Overview (Unaudited) (Continued)
First
Trust S&P International Dividend Aristocrats ETF (FID) (Continued)
Performance figures assume reinvestment of all distributions and do not reflect the deduction of taxes that a shareholder would pay on
Fund distributions or the redemption or sale of Fund shares. An index is a statistical composite that tracks a specified financial market
or sector. Unlike the Fund, the 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.
Fund
Performance Overview (Unaudited) (Continued)
First
Trust BuyWrite Income ETF (FTHI)
The
First Trust BuyWrite Income ETF (the “Fund”) is an actively managed exchange-traded fund. The Fund’s primary investment
objective is to provide current income. The Fund’s secondary investment objective is to provide capital appreciation. Under normal
market conditions, the Fund invests primarily in equity securities listed on U.S. exchanges. The Fund also employs an “option strategy”
in which it will write (sell) U.S. exchange-traded covered call options on the S&P 500®
Index (the “Index”) to seek additional cash flow in the form of premiums on the options that may be distributed to shareholders
on a monthly basis. The equity securities held by the Fund are selected using a mathematical optimization process which attempts to favor
higher dividend paying common stocks for the Fund’s portfolio. The shares of the Fund are listed and trade on the Nasdaq Stock Market
LLC under the ticker symbol “FTHI.”
Portfolio
management decisions are made under the direction of the following Portfolio Managers:
John
Gambla, CFA, FRM, PRM, Senior Portfolio Manager of First Trust
Rob
A. Guttschow, CFA, Senior Portfolio Manager of First Trust
Overall
Market Recap
U.S.
economic growth was mixed during the fiscal period from October 1, 2021 through September 30, 2022. The first quarter of the fiscal period
was strong, with quarter-over-quarter annualized gross domestic product (“GDP”) growth of 7.0%. However, as 2022 began, growth
turned negative for the first half of 2022 with GDP declining by 1.9% on an annualized basis for the semi-annual period. Third quarter
annualized growth is expected to be positive at 2.3%. Despite two quarters of negative growth, the economy does not appear to be in a
recession as the unemployment rate is very low at 3.5%, down from 4.7% one year ago. Job growth has been positive each and every month
of the fiscal period with 5.69 million new jobs (BLS Non-Farm Payrolls) created during the same period.
Good
news on the jobs front is being partially offset by bad news on the inflation and earnings front. After years of declining and/or low
inflation, numbers as measured by the Consumer Price Index (“CPI”) show that inflation continued its surge from the pandemic
lows of 0.1% year-over-year (“YOY”) in May of 2020. After jumping to 5.4% YOY at this time last year, it continued to surge
higher, reaching a cycle high of 9.1% YOY in June of 2022. Subsequently, with a decline in energy prices, the CPI has fallen back to “only”
8.2% as of the September 2022 reading. Inflation is pernicious as it gradually eats away at the purchase power of the dollar and earnings,
with a resultant decline in real living standards. As a measure of its impact, on the surface, earnings growth looks attractive for 2022,
with average hourly earnings up 5.0% for the fiscal period. However, after accounting for inflation, U.S. real average weekly earnings
declined by 3.8% during the fiscal period, meaning that on average, U.S. workers took a big pay cut in 2022.
The
Federal Reserve (the “Fed”), reacting to the high inflation rates, has begun to aggressively hike interest rates. The Fed
raised its benchmark short term interest rate by 0.25% in March 2022, 0.50% in May 2022, and then by 0.75% in June, July, and September
2022. Current expectations are for another 0.75% increase in November 2022. With the increasing Fed benchmark rate, interest rates for
U.S. consumers have also risen. One common and very impactful rate, the 30-year mortgage rate as measured by Freddie Mac, increased from
3.01% one year ago to 6.70% as of September 30, 2022. Higher short term interest rates have increased the attractiveness of the U.S. Dollar,
with the U.S. Dollar Index rising by 18.98% during the fiscal period.
The
U.S. equity market, as represented by the Index, sold off during the fiscal period, down 15.47%, as higher inflation, higher interest
rates, and a strong U.S. Dollar are all potential drags on future earnings. Riskier, smaller capitalization stocks, as represented by
the Russell 2000® Index, performed poorly during the fiscal
period, declining by 23.50%. With rising interest rates, bond investments also were hard hit during the fiscal period with the broad-based
Bloomberg U.S. Aggregate Bond Index down 14.60% for the fiscal period.
Fund
Performance Overview (Unaudited) (Continued)
First
Trust BuyWrite Income ETF (FTHI) (Continued)
Performance
|
|
|
|
|
|
|
|
Average
Annual Total Returns |
|
Cumulative
Total Returns |
|
1
Year Ended 9/30/22 |
5
Years Ended 9/30/22 |
Inception
(1/6/14) to 9/30/22 |
|
5
Years Ended 9/30/22 |
Inception
(1/6/14) to 9/30/22 |
Fund
Performance |
|
|
|
|
|
|
NAV
|
-7.60%
|
1.07%
|
3.97%
|
|
5.49%
|
40.53%
|
Market
Price |
-7.40%
|
1.11%
|
4.01%
|
|
5.67%
|
40.90%
|
Index
Performance |
|
|
|
|
|
|
CBOE
S&P 500 BuyWrite Monthly Index(1) |
-11.21%
|
1.94%
|
4.28%
|
|
10.11%
|
44.16%
|
S&P
500® Index |
-15.47%
|
9.24%
|
10.12%
|
|
55.55%
|
131.98%
|
(See
Notes to Fund Performance Overview on page 36.)
Performance
Review
The
Fund returned -7.40% on a market price basis and -7.60% on a net asset value (“NAV”) basis for the 12-month period ended September
30, 2022. The Fund’s benchmark, the CBOE S&P 500 BuyWrite Monthly Index (the “Benchmark”) returned -11.21% during
the same period. During the fiscal period, the Fund paid a distribution in each month, with a total distribution for the fiscal period
of $1.580 per share. The distribution per share as of September 30, 2022 was $0.150 per share.
The
Fund tilts its equity holdings toward higher paying dividend stocks and attempts to limit the amount of overlap between the equity holdings
and the Index. By limiting the overlap between the equity holdings and the Index, the Fund seeks to maintain the favorable tax treatment
for any gains/losses from the Index options held in the portfolio. Additionally, during this performance period where possible, the portfolio
managers favored companies that were generating enough free cash flow to pay dividends, execute stock buybacks, and/or pay-down debt.
The portfolio managers believe that a portfolio tilted toward higher dividend paying companies with solid cash flow fundamentals will,
over time, offer investors attractive risk-adjusted total returns relative to the Index.
The
Fund’s equity holdings during the 12-month period ended September 30, 2022 outperformed the Benchmark equity holdings. Overall,
the Fund’s tilt toward higher dividend paying, cash flow generating companies was rewarded with solid relative returns during the
period, however; a declining market dragged absolute returns into the negative territory. Relative returns for the same period were positively
affected by the Fund’s conservative positioning within the Information Technology sector, the largest sector by weight within the
Benchmark. The Fund, on average, held 16.95% of its portfolio in Information Technology stocks versus the Benchmark’s weight of
27.83%. Additionally, the Fund was helped by its overweight to the Materials and Energy sectors, which were both outperforming sectors
during the same period. Offsetting some of the positive relative performance from the Information Technology, Materials, and Energy sector
allocations was the Fund’s stock selections within the Health Care and Financial sectors, where the portfolio managers’ selections
over the period underperformed the Benchmark’s holdings. Finally, poor selection in companies in the Industrials and Communication
Services sectors detracted from relative returns throughout the period.
For
the fiscal period, the Fund’s “option strategy” of selling Index call options underperformed the Benchmark’s option
strategy. Both option strategies added value during the fiscal period, but the Fund’s smaller structural over-write, capped at 75%
of the Fund’s NAV, reduced the overall positive benefit relative to the overwrite of the Benchmark.
Market
and Fund Outlook
Today,
we believe the Fund is well positioned to achieve its primary and secondary investment objectives of providing current income and seeking
capital appreciation. The Fund is invested in a broad array of U.S. equity securities with a market cap-weighted dividend yield of 2.83%
versus the Index’s dividend yield of 2.30%. As of the end of the fiscal period, the Fund’s option strategy was overwriting
69.7% of the Fund’s assets with an average time to expiration of 27 days. The combination of our dividend tilted equity holdings
plus our options strategy provide a strong base that we believe will allow the Fund to generate attractive risk-adjusted total returns
going forward and will be supportive of the Fund’s primary objective of providing current income.
(1)
|
The
CBOE S&P 500 BuyWrite Monthly Index is a benchmark index designed to track the performance of a hypothetical buy-write strategy on
the S&P 500® Index. |
Fund
Performance Overview (Unaudited) (Continued)
First
Trust BuyWrite Income ETF (FTHI) (Continued)
Sector
Allocation |
%
of Total Investments |
Information
Technology |
25.2%
|
Health
Care |
14.1
|
Energy
|
10.2
|
Consumer
Discretionary |
10.1
|
Consumer
Staples |
9.3
|
Communication
Services |
8.1
|
Financials
|
8.0
|
Industrials
|
4.7
|
Utilities
|
3.9
|
Real
Estate |
3.2
|
Materials
|
3.2
|
Total
|
100.0%
|
Fund
Allocation |
%
of Net Assets |
Common
Stocks |
94.9%
|
Real
Estate Investment Trusts |
3.2
|
Master
Limited Partnerships |
0.5
|
Call
Options Written |
(0.1)
|
Net
Other Assets and Liabilities |
1.5
|
Total
|
100.0%
|
Top
Ten Holdings |
%
of Total Investments |
Apple,
Inc. |
7.2%
|
Microsoft
Corp. |
6.0
|
Amazon.com,
Inc. |
3.4
|
Tesla,
Inc. |
2.2
|
Alphabet,
Inc., Class A |
2.1
|
Alphabet,
Inc., Class C |
1.9
|
Berkshire
Hathaway, Inc., Class B |
1.7
|
Johnson
& Johnson |
1.7
|
Lantheus
Holdings, Inc. |
1.5
|
UnitedHealth
Group, Inc. |
1.5
|
Total
|
29.2%
|
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.
Fund
Performance Overview (Unaudited) (Continued)
First
Trust Nasdaq BuyWrite Income ETF (FTQI)
The
First Trust Nasdaq BuyWrite Income ETF (the “Fund”), formerly the First Trust Hedged BuyWrite Income ETF, is an actively managed
exchange-traded fund. The Fund’s investment objective is to provide current income. Under normal market conditions, the Fund will
pursue its investment objective by investing primarily in equity securities listed on U.S. exchanges and by utilizing an “option
strategy” consisting of writing (selling) U.S. exchange-traded call options on the Nasdaq-100 Index®.
Under normal market conditions, the Fund will invest at least 80% of its net assets (plus any borrowings for investment purposes) in the
components of the Nasdaq Composite Index. The Fund will employ an option strategy in which it will write U.S. exchange-traded call options
on the Nasdaq-100 Index® in order to seek additional cash
flow in the form of premiums on the options. A premium is the income received by an investor who sells an option contract to another party.
In exchange for the premiums received in connection with its written U.S. exchange-traded call options on the Nasdaq-100 Index®,
the Fund forfeits any upside potential of the Nasdaq-100 Index®
above the strike price of the written call options. It is expected that the Fund will distribute premiums to shareholders on a monthly
basis. The premiums received from the sale of call options are expected to be the Fund’s primary source of income. Under normal
market conditions, the Fund will seek to distribute the majority of the option premiums collected. The Fund does not target a specific
income level, but seeks to provide investors with current income primarily from options premiums through writing calls with a notional
value of 50-100% of the Fund’s assets. The shares of the Fund are listed and trade on The Nasdaq Stock Market LLC under the ticker
symbol “FTQI.”
Portfolio
Management Team
Portfolio
management decisions are made under the direction of the following Portfolio Managers:
John
Gambla, CFA, FRM, PRM, Senior Portfolio Manager of First Trust
Rob
A. Guttschow, CFA, Senior Portfolio Manager of First Trust
Overall
Market Recap
U.S.
economic growth was mixed during the fiscal period from October 1, 2021 through September 30, 2022. The first quarter of the fiscal period
was strong, with quarter-over-quarter annualized gross domestic product (“GDP”) growth of 7.0%. However, as 2022 began, growth
turned negative for the first half of 2022 with GDP declining by 1.9% on an annualized basis for the semi-annual period. Third quarter
annualized growth is expected to be positive at 2.3%. Despite two quarters of negative growth, the economy does not appear to be in a
recession as the unemployment rate is very low at 3.5%, down from 4.7% one year ago. Job growth has been positive each and every month
of the fiscal period with 5.69 million new jobs (BLS Non-Farm Payrolls) created during the same period.
Good
news on the jobs front is being partially offset by bad news on the inflation and earnings front. After years of declining and/or low
inflation, numbers as measured by the Consumer Price Index (“CPI”) show that inflation continued its surge from the pandemic
lows of 0.1% year-over-year (“YOY”) in May of 2020. After jumping to 5.4% YOY at this time last year, it continued to surge
higher, reaching a cycle high of 9.1% YOY in June of 2022. Subsequently, with a decline in energy prices, the CPI has fallen back to “only”
8.2% as of the September 2022 reading. Inflation is pernicious as it gradually eats away at the purchase power of dollar and earnings,
with a resultant decline in real living standards. As a measure of its impact, on the surface, earnings growth looks attractive for 2022,
with average hourly earnings up 5.0% for the fiscal period. However, after accounting for inflation, U.S. real average weekly earnings
declined by 3.8% during the fiscal period, meaning that on average, U.S. workers took a big pay cut in 2022.
The
Federal Reserve (the “Fed”), reacting to the high inflation rates, has begun to aggressively hike interest rates. The Fed
raised its benchmark short term interest rate by 0.25% in March 2022, 0.50% in May 2022, and then by 0.75% in June, July, and September
2022. Current expectations are for another 0.75% increase in November 2022. With the increasing Fed benchmark rate, interest rates for
U.S. consumers have also risen. One common and very impactful rate, the 30-year mortgage rate as measured by Freddie Mac, increased from
3.01% one year ago to 6.70% as of September 30, 2022. Higher short term interest rates have increased the attractiveness of the U.S. Dollar,
with the U.S. Dollar Index rising by 18.98% during the fiscal period.
The
U.S. equity market, as represented by the S&P 500® Index,
sold off during the fiscal period, down 15.47%, as higher inflation, higher interest rates, and a strong U.S. Dollar are all potential
drags on future earnings. Riskier, smaller capitalization stocks, as represented by the Russell 2000®
Index, performed poorly during the fiscal period, declining by 23.50%. With rising interest rates, bond investments also were hard hit
during the fiscal period with the broad-based Bloomberg U.S. Aggregate Bond Index down 14.60% for the fiscal period.
Fund
Performance Overview (Unaudited) (Continued)
First
Trust Nasdaq BuyWrite Income ETF (FTQI) (Continued)
Performance
|
|
|
|
|
|
|
|
Average
Annual Total Returns |
|
Cumulative
Total Returns |
|
1
Year Ended 9/30/22 |
5
Years Ended 9/30/22 |
Inception
(1/6/14) to 9/30/22 |
|
5
Years Ended 9/30/22 |
Inception
(1/6/14) to 9/30/22 |
Fund
Performance |
|
|
|
|
|
|
NAV
|
-9.00%
|
-0.44%
|
2.45%
|
|
-2.16%
|
23.53%
|
Market
Price |
-8.89%
|
-0.47%
|
2.47%
|
|
-2.31%
|
23.76%
|
Index
Performance |
|
|
|
|
|
|
CBOE
S&P 500 95-110 Collar IndexSM(1)
|
-10.92%
|
9.69%
|
7.82%
|
|
58.82%
|
93.06%
|
S&P
500® Index |
-15.47%
|
9.24%
|
10.12%
|
|
55.55%
|
131.98%
|
CBOE
Nasdaq-100 Buywrite IndexSM(2)
|
-18.19%
|
2.40%
|
4.91%
|
|
12.61%
|
52.02%
|
Nasdaq-100
Index®(3)
|
-24.72%
|
13.95%
|
15.09%
|
|
92.16%
|
241.03%
|
(See
Notes to Fund Performance Overview on page 36.)
Performance
Review
On
May 11, 2022, the Fund changed its investment strategy. The Fund adopted an amended investment strategy that involves investing primarily
in equity securities listed on U.S. exchanges and utilizing an “option strategy” consisting of writing (selling) U.S. exchange-traded
call options on the Nasdaq-100 Index®. The Fund also changed
its primary index to the Nasdaq-100 Index® and its secondary
benchmark to the Cboe Nasdaq-100 BuyWrite IndexSM (the “BXN
Index”). Performance comparisons for this report will compare the performance for the 12-month period ended September 30, 2022 versus
the Nasdaq-100 Index® and BXN Index.
The
Fund returned -8.89% on a market price basis and -9.00% on a net asset value (“NAV”) basis for the 12-month period ended September
30, 2022. The Fund’s benchmark, the Nasdaq-100 Index®,
returned -24.72% during the same period. During the period, the Fund paid a distribution in each month, with a total distribution for
the period of $1.41 per share. The distribution per share as of September 30, 2022 was $0.20 per share.
The
Fund seeks to earn a return that is reasonably correlated to the underlying indices over a full market cycle by purchasing equity securities
based upon a several factors such as liquidity, market capitalization, price level, sector classification, and contribution to risk and
return. At the same time, the Fund seeks to limit the direct overlap with the underlying equity indices. By limiting the overlap between
the equity holdings and the Index, the Fund seeks to maintain the favorable tax treatment for any gains/losses from the Index options
held in the portfolio. For the period from September 30, 2021 to May 10, 2022, the underlying equity index was the S&P 500®
Index. From May 11, 2022 to September 30, 2022, the underlying equity index was the Nasdaq-100 Index®.
The
Fund’s equity holdings outperformed the benchmark equity holdings from October 1, 2021 through May 10, 2022. The Fund benefitted
from a relative overweight to the Energy and Materials sectors prior to the investment strategy change during the same period. During
that period, stocks in the Energy and Materials sectors, as measured by S&P 500®
sector returns, were positive at 50.71% and 3.85%, respectively. The Nasdaq-100 Index®
was down -15.59% during the time period prior to the investment strategy change while the broader S&P 500®
Index was down -6.36% for the same period. Hurting relative performance during the same period was the Fund’s underweight to the
Consumer Staples and Utilities sectors, which returned positive 12.74% and 12.51%, respectively, prior to the investment strategy change.
Stock selection helped relative performance in the Information Technology sector while it hurt relative performance in the Health Care,
Financials, and Consumer Staples sectors. After the investment strategy change on May 11, 2022, the Fund’s equity holdings outperformed
the new underlying equity index with the Fund’s underweight in the Information Technology and Communication Services sectors contributing
to relative outperformance for the period from May 11, 2022 through September 30, 2022. Stock selection was a positive contributor to
relative performance in the Health Care sector after the investment strategy change, while stock selection in the Information Technology
and Communication Services sectors hurt relative performance for the same period.
(1)
|
The
CBOE S&P 500 95-110 Collar IndexSM is designed to protect
an investment in S&P 500® stocks against market declines.
The passive collar strategy reflected by the index entails: holding the stocks in the S&P 500®
Index; buying three-month S&P 500® put options to protect
this S&P 500® portfolio from market decreases; and selling
one-month S&P 500® call options to help finance the cost
of the put options. |
(2)
|
The
Cboe Nasdaq-100 BuyWrite IndexSM is a benchmark index designed
to track the performance of a hypothetical buy-write strategy on the Nasdaq-100 Index®.
The index is a passive total return index based on (1) buying the Nasdaq-100 Index®
stock index portfolio, and (2) “writing” (or selling) the near-term Nasdaq-100 Index®
“covered” call option. |
(3)
|
On
May 11, 2022, the Fund’s primary benchmark changed from the S&P 500®
Index to the Nasdaq-100 Index®, because the Advisor believes
that the Nasdaq-100 Index® better reflects the investment
strategies of the Fund. |
Fund
Performance Overview (Unaudited) (Continued)
First
Trust Nasdaq BuyWrite Income ETF (FTQI) (Continued)
For
the 12-month period ended September 30, 2022, the Fund’s option strategy of selling Index call options outperformed the benchmark’s
option strategy. Prior to the investment strategy change, the Fund’s option strategy added to the absolute and relative returns
of the Fund as the premiums received from the written call options helped offset some of the losses of the underlying equity portfolio
in the down market. The Collar Index strategy sells call options 10% out-of-the-money and thus received less call option premium to protect
the indices downside. After the investment strategy change, the Fund’s written call options also added to relative and absolute
returns for the Fund while the BXN Index option strategy detracted from absolute returns. The Fund’s strategy of writing one, two,
and three month call options slightly out-of-the-money was better able to navigate the extreme market rally and subsequent sell-off from
June 16, 2022 to August 15, 2022 (the Nasdaq-100 Index® was
up 22.97% during that period) and then from August 15, 2022 to September 30, 2022 (the Nadaq-100 Index®
was down 19.63% during that period).
Market
and Fund Outlook
Today,
we believe the Fund is well positioned to achieve its investment objective of providing current income to its shareholders. The Fund is
invested in a broad array of U.S. equity securities with a market cap-weighted dividend yield of 1.71% versus the Nasdaq-100 Index®
dividend yield of 1.58%. As of the end of the fiscal period, the Fund’s option strategy was overwriting 75.51% of the Fund’s
assets with an average time to expiration of 27 days. The combination of the dividend yield of the underlying equities plus our options
strategy provide a strong base that we believe will allow the Fund to generate attractive risk-adjusted total returns going forward and
will be supportive of the Fund’s objective of providing current income.
Fund
Performance Overview (Unaudited) (Continued)
First
Trust Nasdaq BuyWrite Income ETF (FTQI) (Continued)
Sector
Allocation |
%
of Total Investments |
Information
Technology |
42.1%
|
Communication
Services |
15.1
|
Financials
|
11.6
|
Consumer
Discretionary |
9.8
|
Health
Care |
7.2
|
Consumer
Staples |
6.1
|
Utilities
|
4.8
|
Industrials
|
3.0
|
Real
Estate |
0.3
|
Total
|
100.0%
|
Fund
Allocation |
%
of Net Assets |
Common
Stocks |
97.6%
|
Call
Options Written |
(0.4)
|
Net
Other Assets and Liabilities |
2.8
|
Total
|
100.0%
|
Top
Ten Holdings |
%
of Total Investments |
Apple,
Inc. |
12.4%
|
Microsoft
Corp. |
9.8
|
Tesla,
Inc. |
4.6
|
Amazon.com,
Inc. |
4.3
|
NVIDIA
Corp. |
2.5
|
Meta
Platforms, Inc., Class A |
2.4
|
Costco
Wholesale Corp. |
2.3
|
Alphabet,
Inc., Class C |
2.2
|
Alphabet,
Inc., Class A |
2.2
|
PepsiCo,
Inc. |
2.2
|
Total
|
44.9%
|
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.
Fund
Performance Overview (Unaudited) (Continued)
First
Trust Rising Dividend Achievers ETF (RDVY)
The
First Trust Rising Dividend Achievers ETF (the “Fund”) seeks investment results that correspond generally to the price and
yield (before the Fund’s fees and expenses) of an index called Nasdaq US Rising Dividend AchieversTM
Index (the “Index”). The Fund normally invests at least 90% of its net assets (including investment borrowings) in the common
stocks and depositary receipts that comprise the Index. The Index includes 50 U.S. exchange-traded equity securities, including securities
issued by non-U.S. companies that trade on U.S. securities exchanges in the form of depositary receipts. The Index is designed to provide
access to a diversified portfolio of small, mid and large capitalization companies with a history of raising their dividends while exhibiting
the characteristics to continue to do so in the future by including companies with strong cash balances, low debt and increasing earnings.
The shares of the Fund are listed and trade on The Nasdaq Stock Market LLC under the ticker symbol “RDVY.”
Performance
|
|
|
|
|
|
|
|
Average
Annual Total Returns |
|
Cumulative
Total Returns |
|
1
Year Ended 9/30/22 |
5
Years Ended 9/30/22 |
Inception
(1/6/14) to 9/30/22 |
|
5
Years Ended 9/30/22 |
Inception
(1/6/14) to 9/30/22 |
Fund
Performance |
|
|
|
|
|
|
NAV
|
-16.76%
|
8.61%
|
9.86%
|
|
51.12%
|
127.27%
|
Market
Price |
-16.72%
|
8.59%
|
9.86%
|
|
51.00%
|
127.32%
|
Index
Performance |
|
|
|
|
|
|
Nasdaq
US Rising Dividend AchieversTM Index |
-16.41%
|
9.18%
|
10.44%
|
|
55.16%
|
137.99%
|
Dow
Jones U.S. Select DividendTM Index* |
-3.10%
|
6.89%
|
9.07%
|
|
39.56%
|
113.38%
|
(See
Notes to Fund Performance Overview on page 36.)
The
Fund generated a NAV return of -16.76% during the 12-month period covered by this report. During the same period, the Dow Jones U.S. Select
Dividend™ Index (the “Benchmark”) generated a return of -3.10%. During the period covered by this report, the Fund allocated
34.2% to the Financials sector, which was the largest allocation during the period. This sector was also the largest detracting sector
with a -7.3% contribution to the Fund’s return. The 2.1% allocation to the Consumer Staples sector contributed 0.6% to the Fund’s
return, the greatest contribution of any sector during the period covered by this report.
*
|
The
Dow Jones U.S. Select DividendTM Index represents 100 of the United
States’ leading stocks by dividend yield. |
Nasdaq®
and Nasdaq US Rising Dividend AchieversTM 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 their 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.
Fund
Performance Overview (Unaudited) (Continued)
First
Trust Rising Dividend Achievers ETF (RDVY) (Continued)
Sector
Allocation |
%
of Total Investments |
Financials
|
35.4%
|
Information
Technology |
25.8
|
Health
Care |
10.4
|
Materials
|
8.2
|
Consumer
Discretionary |
5.9
|
Industrials
|
4.1
|
Communication
Services |
4.1
|
Energy
|
4.0
|
Consumer
Staples |
2.1
|
Total
|
100.0%
|
Top
Ten Holdings |
%
of Total Investments |
Johnson
& Johnson |
2.1%
|
Louisiana-Pacific
Corp. |
2.1
|
Humana,
Inc. |
2.1
|
UnitedHealth
Group, Inc. |
2.1
|
Cummins,
Inc. |
2.1
|
Allstate
(The) Corp. |
2.1
|
Huntsman
Corp. |
2.1
|
PulteGroup,
Inc. |
2.1
|
Microsoft
Corp. |
2.1
|
Pfizer,
Inc. |
2.1
|
Total
|
21.0%
|
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
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.
Fund
Performance Overview (Unaudited) (Continued)
First
Trust Dorsey Wright Focus 5 ETF (FV)
The
First Trust Dorsey Wright Focus 5 ETF (the “Fund”) seeks investment results that correspond generally to the price and yield
(before the Fund’s fees and expenses) of an index called the Dorsey Wright Focus FiveTM
Index (the “Index”). The Fund normally invests at least 90% of its net assets (including investment borrowings) in the exchange-traded
funds (“ETFs”) that comprise the Index. The ETFs comprising the Index selection universe are advised by First Trust Advisors
L.P. (“First Trust”), the Fund’s investment advisor. The Index is constructed pursuant to Dorsey, Wright & Associates,
LLC’s (the “Index Provider”) proprietary methodology, which takes into account the performance of each of the First
Trust sector-based ETFs relative to one another. The Index is designed to provide targeted exposure to the five First Trust sector-based
ETFs that the Index Provider believes offer the greatest potential to outperform the other ETFs in the selection universe and that satisfy
certain trading volume and liquidity requirements. The shares of the Fund are listed and trade on The Nasdaq Stock Market LLC under the
ticker symbol “FV.”
Performance
|
|
|
|
|
|
|
|
Average
Annual Total Returns |
|
Cumulative
Total Returns |
|
1
Year Ended 9/30/22 |
5
Years Ended 9/30/22 |
Inception
(3/5/14) to 9/30/22 |
|
5
Years Ended 9/30/22 |
Inception
(3/5/14) to 9/30/22 |
Fund
Performance |
|
|
|
|
|
|
NAV
|
-9.32%
|
9.95%
|
9.23%
|
|
60.71%
|
113.19%
|
Market
Price |
-9.32%
|
9.94%
|
9.22%
|
|
60.59%
|
113.03%
|
Index
Performance |
|
|
|
|
|
|
Dorsey
Wright Focus FiveTM Index |
-8.95%
|
10.27%
|
9.61%
|
|
63.01%
|
119.57%
|
S&P
500® Index |
-15.47%
|
9.24%
|
9.94%
|
|
55.55%
|
125.34%
|
(See
Notes to Fund Performance Overview on page 36.)
The
Fund generated a NAV return of -9.32% during the 12-month period covered by this report. During the same period, the S&P 500®
Index (the “Benchmark”) generated a return of -15.47%. The Energy sector received the greatest allocation of any sector during
the period covered by this report. With an average weight in the Fund of 27.7% and a contribution to the Fund’s return of 5.0%,
representing the greatest positive contribution to the Fund’s return. The Materials sector received an allocation of 12.7% and contributed
-4.1% to the Fund’s return, representing the worst performance of any sector during the period covered by this report.
Nasdaq®
and Dorsey Wright Focus FiveTM 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 their 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.
Fund
Performance Overview (Unaudited) (Continued)
First
Trust Dorsey Wright Focus 5 ETF (FV) (Continued)
Performance figures assume reinvestment of all distributions and do not reflect the deduction of taxes that a shareholder would pay on
Fund distributions or the redemption or sale of Fund shares. An index is a statistical composite that tracks a specified financial market
or sector. Unlike the Fund, the 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.
Fund
Performance Overview (Unaudited) (Continued)
First
Trust RBA American Industrial Renaissance® ETF (AIRR)
The
First Trust RBA American Industrial Renaissance® ETF (the
“Fund”) seeks investment results that correspond generally to the price and yield (before the Fund’s fees and expenses)
of an index called the Richard Bernstein Advisors American Industrial Renaissance®
Index (the “Index”). The Fund normally invests at least 90% of its net assets (including investment borrowings) in the equity
securities that comprise the Index. The Index is designed to measure the performance of small- and mid-cap U.S. companies in the industrial
and community banking sectors. The shares of the Fund are listed and trade on The Nasdaq Stock Market LLC under the ticker symbol “AIRR.”
Performance
|
|
|
|
|
|
|
|
Average
Annual Total Returns |
|
Cumulative
Total Returns |
|
1
Year Ended 9/30/22 |
5
Years Ended 9/30/22 |
Inception
(3/10/14) to 9/30/22 |
|
5
Years Ended 9/30/22 |
Inception
(3/10/14) to 9/30/22 |
Fund
Performance |
|
|
|
|
|
|
NAV
|
-6.41%
|
8.16%
|
8.12%
|
|
48.01%
|
95.10%
|
Market
Price |
-6.38%
|
8.18%
|
8.14%
|
|
48.15%
|
95.36%
|
Index
Performance |
|
|
|
|
|
|
Richard
Bernstein Advisors American Industrial Renaissance® Index
|
-5.74%
|
8.93%
|
8.94%
|
|
53.34%
|
108.12%
|
S&P
500® Index |
-15.47%
|
9.24%
|
9.93%
|
|
55.55%
|
124.86%
|
S&P
500® Industrials Index |
-13.87%
|
4.87%
|
7.32%
|
|
26.87%
|
83.13%
|
Russell
2500® Index |
-21.11%
|
5.45%
|
6.46%
|
|
30.40%
|
70.93%
|
(See
Notes to Fund Performance Overview on page 36.)
The
Fund generated a NAV return of -6.41% during the 12-month period covered by this report. During the same period, the S&P 500®
Industrials Index (the “Benchmark”) generated a return of -13.87%. Investments in the Construction & Engineering industry
received an allocation of 40.7%, more than any other industry during the period covered by this report. Investments in this industry contributed
-2.0% to the Fund’s overall return. Investments in the Machinery industry received an allocation of 30.8% and caused a -6.2% contribution
to the Fund’s return, the most negative contribution of any industry. The most positive source of return came from investments in
the Commercial Services & Supplies industry. Investments in this industry caused a 2.2% contribution to the Fund’s return for
the period covered by this report.
Richard
Bernstein Advisors and Richard Bernstein Advisors American Industrial Renaissance®
Index (“Index”) are trademarks and trade names of Richard Bernstein Advisors (“RBA”). The Fund is not sponsored,
endorsed, sold or promoted by RBA and RBA makes no representation or warranty, express or implied, to the owners of the Fund or any member
of the public regarding the advisability of trading in the Fund. RBA’s only relationship to First Trust is the licensing of certain
trademarks and trade names of RBA and of the Index, which is determined, composed and calculated by RBA without regard to First Trust
or the Fund. RBA has no obligation to take the needs of First Trust or the owners of the Fund into consideration in determining, composing
or calculating the Index. RBA is not responsible for and has not participated in the determination of the timing of, prices at, or quantities
of the Fund to be listed or in the determination or calculation of the equation by which the Fund is to be converted into cash. RBA has
no obligation or liability in connection with the administration, marketing or trading of the Fund.
Fund
Performance Overview (Unaudited) (Continued)
First
Trust RBA American Industrial Renaissance® ETF (AIRR) (Continued)
Sector
Allocation |
%
of Total Investments |
Industrials
|
89.7%
|
Financials
|
10.3
|
Total
|
100.0%
|
Top
Ten Holdings |
%
of Total Investments |
Clean
Harbors, Inc. |
3.9%
|
Arcosa,
Inc. |
3.8
|
Hubbell,
Inc. |
3.6
|
Comfort
Systems USA, Inc. |
3.4
|
EMCOR
Group, Inc. |
3.4
|
Wabash
National Corp. |
3.3
|
NV5
Global, Inc. |
3.2
|
Federal
Signal Corp. |
3.2
|
SPX
Technologies, Inc. |
3.2
|
RBC
Bearings, Inc. |
3.1
|
Total
|
34.1%
|
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
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.
Fund
Performance Overview (Unaudited) (Continued)
First
Trust Dorsey Wright Momentum & Dividend ETF (DDIV)
The
First Trust Dorsey Wright Momentum & Dividend ETF (the “Fund”) seeks investment results that correspond generally to the
price and yield (before the Fund’s fees and expenses) of an index called the Dorsey Wright Momentum Plus Dividend YieldTM
Index (the “Index”). Under normal conditions, the Fund invests at least 90% of its net assets (including investment borrowings)
in the equity securities that comprise the Index. The Index is a rules-based equity index designed to track the overall performance of
the 50 stocks with the highest dividend yield comprising the Nasdaq US Large Mid Index™ that still maintain high levels of “relative
strength.” A relative strength analysis is a momentum-based investment strategy that emphasizes a security’s forward price
momentum in the security selection process. The Fund, using an indexing investment approach, attempts to replicate, before fees and expenses,
the performance of the Index. The shares of the Fund are listed and trade on The Nasdaq Stock Market LLC under the ticker symbol “DDIV.”
Performance
|
|
|
|
|
|
|
|
Average
Annual Total Returns |
|
Cumulative
Total Returns |
|
1
Year Ended 9/30/22 |
5
Years Ended 9/30/22 |
Inception
(3/10/14) to 9/30/22 |
|
5
Years Ended 9/30/22 |
Inception
(3/10/14) to 9/30/22 |
Fund
Performance |
|
|
|
|
|
|
NAV
|
-11.08%
|
4.76%
|
6.34%
|
|
26.17%
|
69.30%
|
Market
Price |
-11.02%
|
4.73%
|
6.35%
|
|
26.02%
|
69.38%
|
Index
Performance |
|
|
|
|
|
|
Dorsey
Wright Momentum Plus Dividend YieldTM Index(1)
|
-10.57%
|
N/A
|
N/A
|
|
N/A
|
N/A
|
Dow
Jones U.S. Select DividendTM Index(2)
|
-3.10%
|
6.89%
|
8.91%
|
|
39.56%
|
107.69%
|
S&P
500® Index |
-15.47%
|
9.24%
|
9.93%
|
|
55.55%
|
124.86%
|
(See
Notes to Fund Performance Overview on page 36.)
The
Fund generated a NAV return of -11.08% during the 12-month period covered by this report. During the same period, the S&P 500®
Index (the “Benchmark”) generated a return of -15.47%. An allocation of 32.8% was given to the Financials sector, the most
of any sector in the Fund during the period covered by this report. The second largest allocation was the 32.4% allocation to the Real
Estate sector. The investments in the Financials sector contributed -5.8% to the Fund’s overall return, the worst contribution of
any sector, while the Real Estate sector contributed a -3.2% return. The most positive contribution to the Fund’s return during
the period covered by this report came from the 17.3% allocation in the Energy sector, which contributed 1.3% to the Fund’s return.
(1)
|
On
September 6, 2018, the Fund’s underlying index changed from the Richard Bernstein Advisors Quality Income Index to the Dorsey Wright
Momentum Plus Dividend YieldTM Index (the “Index”).
Therefore, the Fund’s performance and historical returns shown for the periods prior to September 6, 2018, are not necessarily indicative
of the performance that the Fund, based on its current index, would have generated. Since the Index had an inception date of July 2, 2018,
it was not in existence for all of the periods disclosed. |
(2)
|
The
Dow Jones U.S. Select DividendTM Index represents 100 of the United
States’ leading stocks by dividend yield. |
Nasdaq®
and Dorsey Wright Momentum Plus Dividend YieldTM 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.
Fund
Performance Overview (Unaudited) (Continued)
First
Trust Dorsey Wright Momentum & Dividend ETF (DDIV) (Continued)
Sector
Allocation |
%
of Total Investments |
Financials
|
30.6%
|
Real
Estate |
30.3
|
Energy
|
15.7
|
Utilities
|
5.4
|
Materials
|
4.8
|
Consumer
Discretionary |
4.1
|
Information
Technology |
4.0
|
Health
Care |
3.4
|
Industrials
|
1.7
|
Total
|
100.0%
|
Top
Ten Holdings |
%
of Total Investments |
Rithm
Capital Corp. |
4.4%
|
Starwood
Property Trust, Inc. |
4.2
|
Blackstone
Mortgage Trust, Inc., Class A |
4.1
|
Kinder
Morgan, Inc. |
3.7
|
ONEOK,
Inc. |
3.4
|
Spirit
Realty Capital, Inc. |
3.3
|
DT
Midstream, Inc. |
3.1
|
Williams
(The) Cos., Inc. |
2.9
|
Lamar
Advertising Co., Class A |
2.8
|
VICI
Properties, Inc. |
2.7
|
Total
|
34.6%
|
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
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.
Fund
Performance Overview (Unaudited) (Continued)
First
Trust Dorsey Wright International Focus 5 ETF (IFV)
The
First Trust Dorsey Wright International Focus 5 ETF (the “Fund”) seeks investment results that correspond generally to the
price and yield (before the Fund’s fees and expenses) of an index called the Dorsey Wright International Focus FiveTM
Index (the “Index”). The Fund normally invests at least 90% of its net assets (including investment borrowings) in the exchange-traded
funds (“ETFs”) that comprise the Index. The ETFs comprising the Index selection universe are advised by First Trust Advisors
L.P. (“First Trust”), the Fund’s investment advisor. The Index is constructed pursuant to Dorsey, Wright & Associates,
LLC’s (the “Index Provider”) proprietary methodology, which takes into account the performance of certain First Trust
international ETFs relative to one another. The Index is designed to provide targeted exposure to the five First Trust country/region-based
ETFs that the Index Provider believes offer the greatest potential to outperform the other ETFs in the selection universe. The shares
of the Fund are listed and trade on The Nasdaq Stock Market LLC under the ticker symbol “IFV.”
Performance
|
|
|
|
|
|
|
|
Average
Annual Total Returns |
|
Cumulative
Total Returns |
|
1
Year Ended 9/30/22 |
5
Years Ended 9/30/22 |
Inception
(7/22/14) to 9/30/22 |
|
5
Years Ended 9/30/22 |
Inception
(7/22/14) to 9/30/22 |
Fund
Performance |
|
|
|
|
|
|
NAV
|
-26.89%
|
-3.39%
|
-0.93%
|
|
-15.85%
|
-7.38%
|
Market
Price |
-26.81%
|
-3.38%
|
-0.92%
|
|
-15.79%
|
-7.31%
|
Index
Performance |
|
|
|
|
|
|
Dorsey
Wright International Focus FiveTM Index |
-26.69%
|
-2.91%
|
-0.52%
|
|
-13.72%
|
-4.16%
|
MSCI
ACWI ex USA Index |
-25.17%
|
-0.81%
|
0.49%
|
|
-4.00%
|
4.10%
|
(See
Notes to Fund Performance Overview on page 36.)
The
Fund generated a NAV return of -26.89% during the 12-month period covered by this report. During the same period, the MSCI ACWI ex USA
Index (the “Benchmark”) generated a return of -25.17%. The Fund’s exposure to India was greater than that of any other
country during the period covered by this report. Indian investments received an allocation of 22.3% but contributed only -0.6% to the
Fund’s overall return. The most negative contribution to the Fund’s return came from investments in the United Kingdom. This
country received an allocation of 17.4% and caused a -5.0% contribution to the Fund’s overall return. The total currency impact
to the Fund over the period covered by this report was -9.7%.
Nasdaq®
and Dorsey Wright International Focus FiveTM 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 their 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.
Fund
Performance Overview (Unaudited) (Continued)
First
Trust Dorsey Wright International Focus 5 ETF (IFV) (Continued)
Performance figures assume reinvestment of all distributions and do not reflect the deduction of taxes that a shareholder would pay on
Fund distributions or the redemption or sale of Fund shares. An index is a statistical composite that tracks a specified financial market
or sector. Unlike the Fund, the 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.
Fund
Performance Overview (Unaudited) (Continued)
First
Trust Dorsey Wright Dynamic Focus 5 ETF (FVC)
The
First Trust Dorsey Wright Dynamic Focus 5 ETF (the “Fund”) seeks investment results that correspond generally to the price
and yield (before the Fund’s fees and expenses) of an index called the Dorsey Wright Dynamic Focus FiveTM
Index (the “Index”). The Fund normally invests at least 80% of its net assets (including investment borrowings) in the exchange-traded
funds (“ETFs”) that comprise the Index, including the First Trust Enhanced Short Maturity ETF (“FTSM”), an ultra-short
duration ETF. The ETFs comprising the Index selection universe are advised by First Trust Advisors L.P. (“First Trust”), the
Fund’s investment advisor. The Index is constructed pursuant to Dorsey, Wright & Associates, LLC’s (the “Index Provider”)
proprietary methodology, which takes into account the performance of each of the First Trust sector and industry-based ETFs relative to
one another. The Index is designed to provide targeted exposure to the five First Trust sector and industry-based ETFs that the Index
Provider determines offer the greatest potential to outperform the other First Trust sector and industry-based ETFs and that satisfy certain
trading volume and liquidity requirements. In addition to the First Trust sector and industry-based ETFs, the Index may select FTSM. FTSM
is also evaluated and its inclusion and weight in the Index is adjusted based upon its rank relative to the selection universe of sector
and industry-based ETFs chosen by the Index. The shares of the Fund are listed and trade on The Nasdaq Stock Market LLC under the ticker
symbol “FVC.”
Performance
|
|
|
|
|
|
|
|
Average
Annual Total Returns |
|
Cumulative
Total Returns |
|
1
Year Ended 9/30/22 |
5
Years Ended 9/30/22 |
Inception
(3/17/16) to 9/30/22 |
|
5
Years Ended 9/30/22 |
Inception
(3/17/16) to 9/30/22 |
Fund
Performance |
|
|
|
|
|
|
NAV
|
-4.18%
|
7.11%
|
8.76%
|
|
40.98%
|
73.15%
|
Market
Price |
-4.01%
|
7.13%
|
8.78%
|
|
41.13%
|
73.41%
|
Index
Performance |
|
|
|
|
|
|
Dorsey
Wright Dynamic Focus FiveTM Index |
-3.74%
|
7.44%
|
9.11%
|
|
43.15%
|
76.82%
|
S&P
500® Index |
-15.47%
|
9.24%
|
11.03%
|
|
55.55%
|
98.24%
|
(See
Notes to Fund Performance Overview on page 36.)
The
Fund generated a NAV return of -4.18% during the 12-month period covered by this report. During the same period, the S&P 500®
Index (the “Benchmark”) generated a return of -15.47%. The greatest allocation to the Fund was the 20.7% allocated to the
Energy sector. Investments in this sector contributed 7.2% to the Fund’s return, the greatest of any sector during the period covered
by this report. The most negative contribution to the Fund’s return for the period came from investments in the Consumer Discretionary
sector. These investments received an allocation of 11.5% and contributed -2.4% to the Fund’s overall return.
Nasdaq®
and Dorsey Wright Dynamic Focus FiveTM 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 their 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.
Fund
Performance Overview (Unaudited) (Continued)
First
Trust Dorsey Wright Dynamic Focus 5 ETF (FVC) (Continued)
Performance figures assume reinvestment of all distributions and do not reflect the deduction of taxes that a shareholder would pay on
Fund distributions or the redemption or sale of Fund shares. An index is a statistical composite that tracks a specified financial market
or sector. Unlike the Fund, the 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.
Fund
Performance Overview (Unaudited) (Continued)
First
Trust Indxx Innovative Transaction & Process ETF (LEGR)
The
First Trust Indxx Innovative Transaction & Process ETF (the “Fund”) seeks investment results that correspond generally
to the price and yield (before the Fund’s fees and expenses) of an index called the Indxx Blockchain Index (the “Index”).
The Fund will normally invest at least 90% of its net assets (including investment borrowings) in the common stocks and depositary receipts
that comprise the Index. The Index is designed to track the performance of companies that are either actively using, investing in, developing,
or have products that are poised to benefit from blockchain technology and/or the potential for increased efficiency that it provides
to various business processes. The Index seeks to include only companies that have devoted material resources to the use of blockchain
technologies. The shares of the Fund are listed and traded on The Nasdaq Stock Market LLC, under the ticker symbol “LEGR.”
Performance
|
|
|
|
|
|
Average
Annual Total Returns |
Cumulative
Total Returns |
|
1
Year Ended 9/30/22 |
Inception
(1/24/18) to 9/30/22 |
Inception
(1/24/18) to 9/30/22 |
Fund
Performance |
|
|
|
NAV
|
-25.55%
|
2.14%
|
10.42%
|
Market
Price |
-25.97%
|
2.08%
|
10.09%
|
Index
Performance |
|
|
|
Indxx
Blockchain Index |
-25.03%
|
3.11%
|
15.40%
|
S&P
500® Index |
-15.47%
|
7.01%
|
37.31%
|
(See
Notes to Fund Performance Overview on page 36.)
The
Fund generated a NAV return of -25.55% during the 12-month period covered by this report. During the same period, the S&P 500®
Index (the “Benchmark”) generated a return of -15.47%. The Fund allocated 37.8% to the Financials sector, a greater allocation
to the Fund than any other sector. Investments in this sector contributed -7.2% to the Fund’s return for the period covered by this
report. The most significant contribution to the Fund’s return for the period was the -10.4% from the 31.8% allocation to the Information
Technology sector. No invested sector had a significant positive contribution to the Fund’s return for the period. The total currency
impact to the Fund during the period covered by his report was -4.8%.
Indxx
and Indxx Blockchain 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.
Fund
Performance Overview (Unaudited) (Continued)
First
Trust Indxx Innovative Transaction & Process ETF (LEGR) (Continued)
Sector
Allocation |
%
of Total Long-Term Investments |
Financials
|
36.0%
|
Information
Technology |
31.7
|
Communication
Services |
9.5
|
Consumer
Discretionary |
8.5
|
Industrials
|
5.7
|
Utilities
|
2.9
|
Materials
|
1.8
|
Consumer
Staples |
1.7
|
Health
Care |
1.3
|
Energy
|
0.9
|
Total
|
100.0%
|
Top
Ten Holdings |
%
of Total Long-Term Investments |
Emirates
Telecommunications Group Co., PJSC |
1.4%
|
SAP
SE |
1.4
|
Industrial
& Commercial Bank of China Ltd., Class H |
1.4
|
Softbank
Corp. |
1.3
|
Zoetis,
Inc. |
1.3
|
China
CITIC Bank Corp., Ltd., Class H |
1.3
|
Swisscom
AG |
1.3
|
International
Business Machines Corp. |
1.3
|
Tata
Consultancy Services Ltd. |
1.3
|
Nordea
Bank Abp |
1.3
|
Total
|
13.3%
|
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.
Fund
Performance Overview (Unaudited) (Continued)
First
Trust Nasdaq Artificial Intelligence and Robotics ETF (ROBT)
The
First Trust Nasdaq Artificial Intelligence and Robotics ETF (the “Fund”) seeks investment results that correspond generally
to the price and yield (before the Fund’s fees and expenses) of an index called the Nasdaq CTA Artificial Intelligence and Robotics
IndexSM (the “Index”). The Fund will normally invest
at least 90% of its net assets (including investment borrowings) in the common stocks and depositary receipts that comprise the Index.
The Index is designed to track the performance of companies engaged in the artificial intelligence and robotics segments of the technology,
industrial and other economic sectors. The shares of the Fund are listed and traded on The Nasdaq Stock Market LLC, under the ticker symbol
“ROBT.”
Performance
|
|
|
|
|
|
Average
Annual Total Returns |
Cumulative
Total Returns |
|
1
Year Ended 9/30/22 |
Inception
(2/21/18) to 9/30/22 |
Inception
(2/21/18) to 9/30/22 |
Fund
Performance |
|
|
|
NAV
|
-36.76%
|
2.87%
|
13.93%
|
Market
Price |
-36.85%
|
2.86%
|
13.86%
|
Index
Performance |
|
|
|
Nasdaq
CTA Artificial Intelligence and Robotics IndexSM |
-36.54%
|
3.58%
|
17.56%
|
S&P
500® Index |
-15.47%
|
8.24%
|
43.97%
|
(See
Notes to Fund Performance Overview on page 36.)
The
Fund generated a NAV return of -36.76% during the 12-month period covered by this report. During the same period, the S&P 500®
Index (the “Benchmark”) generated a return of -15.47%. The greatest allocation in the Fund for the period was the 33.4% allocated
to the Software industry. Investments in this industry contributed -11.8% to the Fund’s overall return, which was by far the worst
contribution to the Fund’s return of any industry during the period covered by this report. The best contribution to the Fund’s
return came from the Aerospace & Defense industry which had an average weight of 6.9% and contributed 0.7% to the Fund’s overall
return for the period. The total currency impact to the Fund over the period covered by this report was -6.2%.
Nasdaq®
and Nasdaq CTA Artificial Intelligence and Robotics IndexSM 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 their 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.
Fund
Performance Overview (Unaudited) (Continued)
First
Trust Nasdaq Artificial Intelligence and Robotics ETF (ROBT) (Continued)
Sector
Allocation |
%
of Total Long-Term Investments |
Information
Technology |
60.6%
|
Industrials
|
22.3
|
Consumer
Discretionary |
8.9
|
Health
Care |
5.4
|
Communication
Services |
2.3
|
Real
Estate |
0.3
|
Consumer
Staples |
0.2
|
Total
|
100.0%
|
Top
Ten Holdings |
%
of Total Long-Term Investments |
PROS
Holdings, Inc. |
2.6%
|
AVEVA
Group PLC |
2.3
|
Illumina,
Inc. |
2.1
|
Cadence
Design Systems, Inc. |
2.1
|
AeroVironment,
Inc. |
2.1
|
Halma
PLC |
2.1
|
Dynatrace,
Inc. |
2.0
|
Hexagon
AB, Class B |
2.0
|
QinetiQ
Group PLC |
2.0
|
ANSYS,
Inc. |
2.0
|
Total
|
21.3%
|
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.
Fund
Performance Overview (Unaudited) (Continued)
First
Trust International Developed Capital Strength ETF (FICS)
The
First Trust International Developed 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 index called The International Developed Capital Strength IndexSM
(the “Index”). The Fund seeks to achieve its investment objective by investing, under normal market conditions, at least
90% of its net assets (including investment borrowings) in the common stocks and real estate investment trusts that comprise the Index.
The Index seeks to provide exposure to well-capitalized companies in the developed markets outside of the U.S. with strong market positions
that have the potential to provide a greater degree of stability and performance over time. The shares of the Fund are listed and traded
on The Nasdaq Stock Market LLC, under the ticker symbol “FICS.”
Performance
|
|
|
|
|
|
Average
Annual Total Returns |
Cumulative
Total Returns |
|
1
Year Ended 9/30/22 |
Inception
(12/15/20) to 9/30/22 |
Inception
(12/15/20) to 9/30/22 |
Fund
Performance |
|
|
|
NAV
|
-22.50%
|
-6.56%
|
-11.45%
|
Market
Price |
-22.33%
|
-6.34%
|
-11.08%
|
Index
Performance |
|
|
|
The
International Developed Capital Strength IndexSM |
-21.93%
|
-5.38%
|
-9.43%
|
MSCI
World ex USA Index |
-23.91%
|
-8.86%
|
-15.32%
|
(See
Notes to Fund Performance Overview on page 36.)
The
Fund generated a NAV return of -22.50% during the 12-month period covered by this report. During the same period, the MSCI World ex USA
Index (the “Benchmark”) generated a return of -23.91%. The Fund was most heavily weighted towards the Industrials sector during
the period covered by this report. This sector received an allocation of 31.7% and contributed -7.8% to the Fund’s overall return,
which was the most negative contribution of any sector. No sector contributed positively to the Fund’s total return for the period.
The Fund’s currency exposure caused -12.5% of underperformance during the period covered by this report.
Nasdaq®
and The International Developed Capital Strength IndexSM 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 their 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.
Fund
Performance Overview (Unaudited) (Continued)
First
Trust International Developed Capital Strength ETF (FICS) (Continued)
Sector
Allocation |
%
of Total Investments |
Industrials
|
31.6%
|
Consumer
Staples |
17.1
|
Financials
|
16.3
|
Health
Care |
13.7
|
Information
Technology |
10.5
|
Materials
|
3.3
|
Consumer
Discretionary |
2.1
|
Communication
Services |
2.1
|
Energy
|
1.8
|
Real
Estate |
1.5
|
Total
|
100.0%
|
Top
Ten Holdings |
%
of Total Investments |
Unilever
PLC |
2.5%
|
Intact
Financial Corp. |
2.4
|
Thomson
Reuters Corp. |
2.4
|
CGI,
Inc. |
2.3
|
CSL
Ltd. |
2.3
|
Obic
Co., Ltd. |
2.3
|
Wolters
Kluwer N.V. |
2.3
|
Deutsche
Boerse AG |
2.3
|
Heineken
N.V. |
2.3
|
Alimentation
Couche-Tard, Inc. |
2.3
|
Total
|
23.4%
|
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
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.
Notes
to Fund Performance Overview (Unaudited)
Total
returns for the periods since inception are calculated from the inception date of each Fund. “Average Annual Total Returns”
represent the average annual change in value of an investment over the periods indicated. “Cumulative Total Returns” represent
the total change in value of an investment over the periods indicated.
Each
Fund’s per share net asset value (“NAV”) is the value of one share of the Fund and is computed by dividing the value
of all assets of the Fund (including accrued interest and dividends), less all liabilities (including accrued expenses and dividends declared
but unpaid), by the total number of outstanding shares. The price used to calculate market return (“Market Price”) is determined
by using the midpoint of the national best bid and offer price (“NBBO”) as of the time that the Fund’s NAV is calculated.
Under SEC rules, the NBBO consists of the highest displayed buy and lowest sell prices among the various exchanges trading the Fund at
the time the Fund’s NAV is calculated. 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.
First
Trust Exchange-Traded Fund VI
Understanding
Your Fund Expenses
September
30, 2022 (Unaudited)
As
a shareholder of First Trust NASDAQ Technology Dividend Index Fund, Multi-Asset Diversified Income Index Fund, First Trust S&P International
Dividend Aristocrats ETF, First Trust BuyWrite Income ETF, First Trust Nasdaq BuyWrite Income ETF, First Trust Rising Dividend Achievers
ETF, First Trust Dorsey Wright Focus 5 ETF, First Trust RBA American Industrial Renaissance®
ETF, First Trust Dorsey Wright Momentum & Dividend ETF, First Trust Dorsey Wright International Focus 5 ETF, First Trust Dorsey Wright
Dynamic Focus 5 ETF, First Trust Indxx Innovative Transaction & Process ETF, First Trust Nasdaq Artificial Intelligence and Robotics
ETF, or First Trust International Developed Capital Strength 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 (in U.S. dollars) 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 September
30, 2022.
Actual
Expenses
The
first line in the following table provides information about actual account values and actual expenses. You may use the information in
this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value
by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under
the heading entitled “Expenses Paid During the Six-Month Period” to estimate the expenses you paid on your account during
this six-month period.
Hypothetical
Example for Comparison Purposes
The
second line in the following table provides information about hypothetical account values and hypothetical expenses based on each Fund’s
actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not each Fund’s actual return. The hypothetical
account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may
use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, compare this 5% hypothetical example
with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please
note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs such
as brokerage commissions. Therefore, the second line in the table is useful in comparing ongoing costs only, and will not help you determine
the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been
higher.
|
Beginning
Account Value April 1, 2022 |
Ending
Account Value September 30, 2022 |
Annualized
Expense Ratio Based on the Six-Month Period |
Expenses
Paid During the Six-Month Period (a) |
First
Trust NASDAQ Technology Dividend Index Fund (TDIV) |
Actual
|
$1,000.00
|
$750.00
|
0.50%
|
$2.19
|
Hypothetical
(5% return before expenses) |
$1,000.00
|
$1,022.56
|
0.50%
|
$2.54
|
Multi-Asset
Diversified Income Index Fund (MDIV) (b) |
Actual
|
$1,000.00
|
$885.30
|
0.49%
|
$2.32
|
Hypothetical
(5% return before expenses) |
$1,000.00
|
$1,022.61
|
0.49%
|
$2.48
|
First
Trust S&P International Dividend Aristocrats ETF (FID) |
Actual
|
$1,000.00
|
$799.80
|
0.60%
|
$2.71
|
Hypothetical
(5% return before expenses) |
$1,000.00
|
$1,022.06
|
0.60%
|
$3.04
|
First
Trust BuyWrite Income ETF (FTHI) |
Actual
|
$1,000.00
|
$841.30
|
0.85%
|
$3.92
|
Hypothetical
(5% return before expenses) |
$1,000.00
|
$1,020.81
|
0.85%
|
$4.31
|
First
Trust Nasdaq BuyWrite Income ETF (FTQI) |
Actual
|
$1,000.00
|
$837.40
|
0.85%
|
$3.92
|
Hypothetical
(5% return before expenses) |
$1,000.00
|
$1,020.81
|
0.85%
|
$4.31
|
First
Trust Exchange-Traded Fund VI
Understanding
Your Fund Expenses (Continued)
September
30, 2022 (Unaudited)
|
Beginning
Account Value April 1, 2022 |
Ending
Account Value September 30, 2022 |
Annualized
Expense Ratio Based on the Six-Month Period |
Expenses
Paid During the Six-Month Period (a) |
First
Trust Rising Dividend Achievers ETF (RDVY) |
Actual
|
$1,000.00
|
$802.00
|
0.50%
|
$2.26
|
Hypothetical
(5% return before expenses) |
$1,000.00
|
$1,022.56
|
0.50%
|
$2.54
|
First
Trust Dorsey Wright Focus 5 ETF (FV) (b) |
Actual
|
$1,000.00
|
$867.70
|
0.30%
|
$1.40
|
Hypothetical
(5% return before expenses) |
$1,000.00
|
$1,023.56
|
0.30%
|
$1.52
|
First
Trust RBA American Industrial Renaissance® ETF (AIRR) |
Actual
|
$1,000.00
|
$903.90
|
0.70%
|
$3.34
|
Hypothetical
(5% return before expenses) |
$1,000.00
|
$1,021.56
|
0.70%
|
$3.55
|
First
Trust Dorsey Wright Momentum & Dividend ETF (DDIV) |
Actual
|
$1,000.00
|
$813.80
|
0.60%
|
$2.73
|
Hypothetical
(5% return before expenses) |
$1,000.00
|
$1,022.06
|
0.60%
|
$3.04
|
First
Trust Dorsey Wright International Focus 5 ETF (IFV) (b) |
Actual
|
$1,000.00
|
$784.10
|
0.30%
|
$1.34
|
Hypothetical
(5% return before expenses) |
$1,000.00
|
$1,023.56
|
0.30%
|
$1.52
|
First
Trust Dorsey Wright Dynamic Focus 5 ETF (FVC) (b) |
Actual
|
$1,000.00
|
$916.70
|
0.30%
|
$1.44
|
Hypothetical
(5% return before expenses) |
$1,000.00
|
$1,023.56
|
0.30%
|
$1.52
|
First
Trust Indxx Innovative Transaction & Process ETF (LEGR) |
Actual
|
$1,000.00
|
$772.10
|
0.65%
|
$2.89
|
Hypothetical
(5% return before expenses) |
$1,000.00
|
$1,021.81
|
0.65%
|
$3.29
|
First
Trust Nasdaq Artificial Intelligence and Robotics ETF (ROBT) |
Actual
|
$1,000.00
|
$714.00
|
0.65%
|
$2.79
|
Hypothetical
(5% return before expenses) |
$1,000.00
|
$1,021.81
|
0.65%
|
$3.29
|
First
Trust International Developed Capital Strength ETF (FICS) |
Actual
|
$1,000.00
|
$798.60
|
0.70%
|
$3.16
|
Hypothetical
(5% return before expenses) |
$1,000.00
|
$1,021.56
|
0.70%
|
$3.55
|
(a)
|
Expenses
are equal to the annualized expense ratios as indicated in the table multiplied by the average account value over the period (April 1,
2022 through September 30, 2022), multiplied by 183/365 (to reflect the six-month period). |
(b)
|
Annualized
expense ratio and expenses paid during the six-month period do not include fees and expenses of the underlying funds in which the Fund
invests. |
First
Trust NASDAQ Technology Dividend Index Fund (TDIV)
Portfolio
of Investments
September
30, 2022
Shares
|
|
Description
|
|
Value
|
COMMON
STOCKS – 99.8% |
|
|
Communications
Equipment – 5.9% |
|
|
67,424
|
|
ADTRAN
Holdings, Inc. |
|
$1,320,162
|
28,100
|
|
AudioCodes
Ltd. |
|
612,861
|
729,895
|
|
Cisco
Systems, Inc. |
|
29,195,800
|
523,303
|
|
Juniper
Networks, Inc. |
|
13,668,674
|
118,718
|
|
Motorola
Solutions, Inc. |
|
26,589,271
|
428,335
|
|
Nokia
Oyj, ADR |
|
1,828,990
|
634,465
|
|
Telefonaktiebolaget
LM Ericsson, ADR |
|
3,641,829
|
26,269
|
|
Ubiquiti,
Inc. |
|
7,711,528
|
|
|
|
|
84,569,115
|
|
|
Diversified
Telecommunication Services – 9.4% |
|
|
12,860
|
|
ATN
International, Inc. |
|
496,010
|
677,197
|
|
BCE,
Inc. |
|
28,401,642
|
90,892
|
|
Chunghwa
Telecom Co., Ltd., ADR |
|
3,229,393
|
170,832
|
|
Cogent
Communications Holdings, Inc. |
|
8,910,597
|
332,068
|
|
KT
Corp., ADR |
|
4,057,871
|
3,277,195
|
|
Lumen
Technologies, Inc. |
|
23,857,980
|
588,470
|
|
Telefonica
Brasil S.A., ADR |
|
4,425,294
|
80,903
|
|
Telkom
Indonesia Persero Tbk PT, ADR |
|
2,334,052
|
1,449,417
|
|
TELUS
Corp. |
|
28,785,422
|
780,694
|
|
Verizon
Communications, Inc. |
|
29,642,951
|
|
|
|
|
134,141,212
|
|
|
Electronic
Equipment, Instruments & Components – 4.2% |
|
|
150,387
|
|
Amphenol
Corp., Class A |
|
10,069,913
|
53,821
|
|
Avnet,
Inc. |
|
1,944,015
|
21,097
|
|
Benchmark
Electronics, Inc. |
|
522,784
|
37,563
|
|
CDW
Corp. |
|
5,862,833
|
626,905
|
|
Corning,
Inc. |
|
18,192,783
|
18,214
|
|
Jabil,
Inc. |
|
1,051,130
|
12,695
|
|
Methode
Electronics, Inc. |
|
471,619
|
91,347
|
|
National
Instruments Corp. |
|
3,447,436
|
27,324
|
|
TD
SYNNEX Corp. |
|
2,218,436
|
130,264
|
|
TE
Connectivity Ltd. |
|
14,375,935
|
65,485
|
|
Vishay
Intertechnology, Inc. |
|
1,164,978
|
|
|
|
|
59,321,862
|
|
|
Interactive
Media & Services – 0.2% |
|
|
97,365
|
|
JOYY,
Inc., ADR |
|
2,531,490
|
14,580
|
|
Shutterstock,
Inc. |
|
731,479
|
|
|
|
|
3,262,969
|
|
|
IT
Services – 10.4% |
|
|
53,768
|
|
Amdocs
Ltd. |
|
4,271,868
|
208,625
|
|
Cognizant
Technology Solutions Corp., Class A |
|
11,983,420
|
Shares
|
|
Description
|
|
Value
|
|
|
|
IT
Services (Continued) |
|
|
10,324
|
|
Concentrix
Corp. |
|
$1,152,468
|
14,253
|
|
CSG
Systems International, Inc. |
|
753,699
|
16,172
|
|
Hackett
Group (The), Inc. |
|
286,568
|
328,964
|
|
Infosys
Ltd., ADR |
|
5,582,519
|
1,016,455
|
|
International
Business Machines Corp. |
|
120,765,019
|
86,738
|
|
SS&C
Technologies Holdings, Inc. |
|
4,141,739
|
49,130
|
|
Wipro
Ltd., ADR |
|
231,402
|
|
|
|
|
149,168,702
|
|
|
Media –
2.0% |
|
|
3,203
|
|
Cable
One, Inc. |
|
2,732,319
|
901,928
|
|
Comcast
Corp., Class A |
|
26,453,548
|
|
|
|
|
29,185,867
|
|
|
Professional
Services – 0.6% |
|
|
33,044
|
|
KBR,
Inc. |
|
1,428,162
|
51,618
|
|
Leidos
Holdings, Inc. |
|
4,515,026
|
22,581
|
|
Science
Applications International Corp. |
|
1,996,838
|
|
|
|
|
7,940,026
|
|
|
Semiconductors
& Semiconductor Equipment – 37.4% |
|
|
57,667
|
|
Amkor
Technology, Inc. |
|
983,222
|
245,629
|
|
Analog
Devices, Inc. |
|
34,225,945
|
223,644
|
|
Applied
Materials, Inc. |
|
18,323,153
|
522,495
|
|
ASE
Technology Holding Co., Ltd., ADR |
|
2,607,250
|
26,233
|
|
ASML
Holding N.V. |
|
10,895,877
|
261,592
|
|
Broadcom,
Inc. |
|
116,149,464
|
531,270
|
|
Himax
Technologies, Inc., ADR |
|
2,571,347
|
4,090,337
|
|
Intel
Corp. |
|
105,407,984
|
43,186
|
|
KLA
Corp. |
|
13,069,379
|
22,405
|
|
Kulicke
& Soffa Industries, Inc. |
|
863,265
|
46,836
|
|
Lam
Research Corp. |
|
17,141,976
|
206,956
|
|
Microchip
Technology, Inc. |
|
12,630,525
|
202,083
|
|
Micron
Technology, Inc. |
|
10,124,358
|
6,954
|
|
Monolithic
Power Systems, Inc. |
|
2,527,084
|
112,077
|
|
NXP
Semiconductors N.V. |
|
16,532,478
|
12,766
|
|
Power
Integrations, Inc. |
|
821,109
|
493,548
|
|
QUALCOMM,
Inc. |
|
55,761,053
|
91,003
|
|
Skyworks
Solutions, Inc. |
|
7,759,826
|
12,128
|
|
STMicroelectronics
N.V. |
|
375,240
|
613,354
|
|
Taiwan
Semiconductor Manufacturing Co., Ltd., ADR |
|
42,051,550
|
395,144
|
|
Texas
Instruments, Inc. |
|
61,160,388
|
224,943
|
|
United
Microelectronics Corp., ADR |
|
1,252,933
|
10,549
|
|
Universal
Display Corp. |
|
995,298
|
|
|
|
|
534,230,704
|
|
|
Software –
14.7% |
|
|
20,514
|
|
A10
Networks, Inc. |
|
272,221
|
See
Notes to Financial Statements
Page
39
First
Trust NASDAQ Technology Dividend Index Fund (TDIV)
Portfolio
of Investments (Continued)
September
30, 2022
Shares
|
|
Description
|
|
Value
|
COMMON
STOCKS (Continued) |
|
|
Software (Continued)
|
|
|
23,617
|
|
American
Software, Inc., Class A |
|
$361,812
|
20,356
|
|
Dolby
Laboratories, Inc., Class A |
|
1,326,193
|
8,889
|
|
Ebix,
Inc. |
|
168,624
|
46,537
|
|
InterDigital,
Inc. |
|
1,881,026
|
44,339
|
|
Intuit,
Inc. |
|
17,173,381
|
499,346
|
|
Microsoft
Corp. |
|
116,297,683
|
315,572
|
|
NortonLifeLock,
Inc. |
|
6,355,620
|
188,983
|
|
Open
Text Corp. |
|
4,996,711
|
880,399
|
|
Oracle
Corp. |
|
53,765,967
|
15,774
|
|
Progress
Software Corp. |
|
671,184
|
15,920
|
|
Roper
Technologies, Inc. |
|
5,725,469
|
29,201
|
|
Sapiens
International Corp., N.V. |
|
560,075
|
32,684
|
|
Xperi
Holding Corp. |
|
462,152
|
|
|
|
|
210,018,118
|
|
|
Technology
Hardware, Storage & Peripherals – 12.6% |
|
|
830,450
|
|
Apple,
Inc. |
|
114,768,190
|
114,278
|
|
Dell
Technologies, Inc., Class C |
|
3,904,879
|
1,144,332
|
|
Hewlett
Packard Enterprise Co. |
|
13,709,097
|
848,312
|
|
HP,
Inc. |
|
21,139,935
|
76,513
|
|
Logitech
International S.A. |
|
3,519,598
|
150,394
|
|
NetApp,
Inc. |
|
9,301,869
|
215,495
|
|
Seagate
Technology Holdings PLC |
|
11,470,799
|
233,574
|
|
Xerox
Holdings Corp. |
|
3,055,148
|
|
|
|
|
180,869,515
|
|
|
Wireless
Telecommunication Services – 2.4% |
|
|
1,324,111
|
|
Mobile
TeleSystems PJSC, ADR (a) (b) (c) |
|
182,304
|
56,108
|
|
PLDT,
Inc., ADR |
|
1,419,532
|
758,034
|
|
Rogers
Communications, Inc., Class B |
|
29,214,630
|
261,351
|
|
Telephone
& Data Systems, Inc. |
|
3,632,779
|
|
|
|
|
34,449,245
|
|
|
Total
Investments – 99.8% |
|
1,427,157,335
|
|
|
(Cost
$1,601,923,830) |
|
|
|
|
Net
Other Assets and Liabilities – 0.2% |
|
3,453,622
|
|
|
Net
Assets – 100.0% |
|
$1,430,610,957
|
(a)
|
This
security is fair valued by the Advisor’s Pricing Committee in accordance with procedures approved by the Trust’s Board of
Trustees, and in accordance with the provisions of the Investment Company Act of 1940 and rules thereunder, as amended. At September 30,
2022, securities noted as such are valued at $182,304 or 0.0% of net assets. |
(b)
|
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. |
(c)
|
This
security’s value was determined using significant unobservable inputs (see Note 2A – Portfolio Valuation in the Notes to Financial
Statements). |
ADR
|
American
Depositary Receipt |
Valuation
Inputs
A
summary of the inputs used to value the Fund’s investments as of September 30, 2022 is as follows (see Note 2A - Portfolio Valuation
in the Notes to Financial Statements):
|
Total
Value at 9/30/2022 |
Level
1 Quoted Prices |
Level
2 Significant Observable Inputs |
Level
3 Significant Unobservable Inputs |
Common
Stocks: |
|
|
|
|
Wireless
Telecommunication Services |
$ 34,449,245
|
$ 34,266,941
|
$ —
|
$ 182,304
|
Other
Industry Categories* |
1,392,708,090
|
1,392,708,090
|
—
|
—
|
Total
Investments |
$ 1,427,157,335
|
$ 1,426,975,031
|
$—
|
$ 182,304
|
*
|
See
Portfolio of Investments for industry breakout. |
Level
3 Common Stocks are fair valued by the Advisor’s Pricing Committee and are footnoted in the Portfolio of Investments. The Level
3 Common Stocks values are based on unobservable and non-quantitative inputs.
Page
40
See
Notes to Financial Statements
Multi-Asset
Diversified Income Index Fund (MDIV)
Portfolio
of Investments
September
30, 2022
Shares/
Units |
|
Description
|
|
Value
|
MASTER
LIMITED PARTNERSHIPS – 20.2% |
|
|
Energy
Equipment & Services – 1.2% |
|
|
302,427
|
|
USA Compression Partners, L.P.
|
|
$5,262,230
|
|
|
Industrial
Conglomerates – 1.5% |
|
|
133,447
|
|
Icahn Enterprises, L.P.
|
|
6,628,312
|
|
|
Oil,
Gas & Consumable Fuels – 17.5% |
|
|
251,368
|
|
Black Stone Minerals, L.P.
|
|
3,933,909
|
62,324
|
|
Cheniere Energy Partners, L.P.
|
|
3,325,609
|
163,844
|
|
Crestwood Equity Partners, L.P.
|
|
4,549,948
|
208,406
|
|
CrossAmerica Partners, L.P.
|
|
3,895,108
|
57,227
|
|
DCP Midstream, L.P.
|
|
2,150,018
|
52,426
|
|
Delek Logistics Partners, L.P.
|
|
2,670,581
|
160,184
|
|
Dorchester Minerals, L.P.
|
|
4,001,396
|
263,607
|
|
Energy Transfer, L.P.
|
|
2,907,585
|
199,635
|
|
EnLink Midstream, LLC (a)
|
|
1,774,755
|
121,532
|
|
Enterprise Products Partners, L.P.
|
|
2,890,031
|
135,213
|
|
Global Partners, L.P.
|
|
3,346,522
|
214,221
|
|
Holly Energy Partners, L.P.
|
|
3,515,367
|
256,583
|
|
Kimbell Royalty Partners, L.P. (a)
|
|
4,356,779
|
342,361
|
|
KNOT Offshore Partners, L.P. (a)
|
|
4,786,207
|
71,941
|
|
Magellan Midstream Partners, L.P.
|
|
3,417,917
|
147,560
|
|
MPLX, L.P.
|
|
4,428,276
|
62,993
|
|
Natural Resource Partners, L.P.
|
|
2,787,440
|
305,395
|
|
NuStar Energy, L.P.
|
|
4,122,833
|
282,470
|
|
Plains All American Pipeline, L.P.
|
|
2,971,584
|
273,312
|
|
Plains GP Holdings, L.P., Class A (a)
|
|
2,981,834
|
92,726
|
|
Sunoco, L.P.
|
|
3,613,532
|
114,461
|
|
Viper Energy Partners, L.P. (a)
|
|
3,280,452
|
100,987
|
|
Western Midstream Partners, L.P.
|
|
2,540,833
|
|
|
|
|
78,248,516
|
|
|
Total Master Limited Partnerships
|
|
90,139,058
|
|
|
(Cost
$74,218,615) |
|
|
COMMON
STOCKS – 19.7% |
|
|
Banks –
4.5% |
|
|
76,544
|
|
Associated Banc-Corp.
|
|
1,537,004
|
31,044
|
|
Citigroup, Inc.
|
|
1,293,604
|
73,553
|
|
First Financial Bancorp
|
|
1,550,497
|
61,164
|
|
First Hawaiian, Inc.
|
|
1,506,469
|
38,509
|
|
First Interstate BancSystem, Inc., Class A
|
|
1,553,838
|
129,769
|
|
FNB Corp.
|
|
1,505,320
|
133,112
|
|
Huntington Bancshares, Inc.
|
|
1,754,416
|
92,873
|
|
KeyCorp
|
|
1,487,826
|
152,414
|
|
Northwest Bancshares, Inc.
|
|
2,059,113
|
46,157
|
|
Pacific Premier Bancorp, Inc.
|
|
1,429,021
|
31,947
|
|
Truist Financial Corp.
|
|
1,390,972
|
32,951
|
|
US Bancorp
|
|
1,328,584
|
44,263
|
|
WesBanco, Inc.
|
|
1,477,056
|
|
|
|
|
19,873,720
|
|
|
Biotechnology –
0.7% |
|
|
11,042
|
|
AbbVie, Inc.
|
|
1,481,947
|
29,281
|
|
Gilead Sciences, Inc.
|
|
1,806,345
|
|
|
|
|
3,288,292
|
See
Notes to Financial Statements
Page
41
Multi-Asset
Diversified Income Index Fund (MDIV)
Portfolio
of Investments (Continued)
September
30, 2022
Shares/
Units |
|
Description
|
|
Value
|
COMMON
STOCKS (Continued) |
|
|
Capital
Markets – 1.4% |
|
|
53,761
|
|
Lazard Ltd., Class A
|
|
$1,711,213
|
97,337
|
|
Moelis & Co., Class A
|
|
3,290,964
|
69,069
|
|
Virtu Financial, Inc., Class A
|
|
1,434,563
|
|
|
|
|
6,436,740
|
|
|
Chemicals –
1.3% |
|
|
39,778
|
|
Dow, Inc.
|
|
1,747,447
|
51,271
|
|
LyondellBasell Industries N.V., Class A
|
|
3,859,681
|
|
|
|
|
5,607,128
|
|
|
Containers
& Packaging – 0.3% |
|
|
40,051
|
|
International Paper Co.
|
|
1,269,617
|
|
|
Diversified
Telecommunication Services – 1.1% |
|
|
186,628
|
|
AT&T, Inc.
|
|
2,862,874
|
51,083
|
|
Verizon Communications, Inc.
|
|
1,939,621
|
|
|
|
|
4,802,495
|
|
|
Electric
Utilities – 1.2% |
|
|
27,065
|
|
ALLETE, Inc.
|
|
1,354,603
|
23,198
|
|
Edison International
|
|
1,312,543
|
37,967
|
|
OGE Energy Corp.
|
|
1,384,277
|
23,680
|
|
Pinnacle West Capital Corp.
|
|
1,527,597
|
|
|
|
|
5,579,020
|
|
|
Food
& Staples Retailing – 0.4% |
|
|
53,062
|
|
Walgreens Boots Alliance, Inc.
|
|
1,666,147
|
|
|
Food
Products – 0.3% |
|
|
44,783
|
|
Kraft Heinz (The) Co.
|
|
1,493,513
|
|
|
Household
Durables – 0.3% |
|
|
43,247
|
|
Leggett & Platt, Inc.
|
|
1,436,665
|
|
|
Household
Products – 0.3% |
|
|
55,744
|
|
Energizer Holdings, Inc.
|
|
1,401,404
|
|
|
Industrial
Conglomerates – 0.3% |
|
|
12,870
|
|
3M Co.
|
|
1,422,135
|
|
|
Insurance –
2.6% |
|
|
42,420
|
|
Fidelity National Financial, Inc.
|
|
1,535,604
|
258,624
|
|
Old Republic International Corp.
|
|
5,413,000
|
19,633
|
|
Principal Financial Group, Inc.
|
|
1,416,521
|
19,121
|
|
Prudential Financial, Inc.
|
|
1,640,199
|
17,798
|
|
Safety Insurance Group, Inc.
|
|
1,451,605
|
|
|
|
|
11,456,929
|
|
|
IT
Services – 0.8% |
|
|
15,108
|
|
International Business Machines Corp.
|
|
1,794,981
|
143,647
|
|
Western Union (The) Co.
|
|
1,939,235
|
|
|
|
|
3,734,216
|
|
|
Leisure
Products – 0.4% |
|
|
31,248
|
|
Sturm Ruger & Co., Inc.
|
|
1,587,086
|
|
|
Media –
0.3% |
|
|
23,109
|
|
Omnicom Group, Inc.
|
|
1,457,947
|
Page
42
See
Notes to Financial Statements
Multi-Asset
Diversified Income Index Fund (MDIV)
Portfolio
of Investments (Continued)
September
30, 2022
Shares/
Units |
|
Description
|
|
Value
|
COMMON
STOCKS (Continued) |
|
|
Multi-Utilities –
0.4% |
|
|
32,801
|
|
NorthWestern Corp.
|
|
$1,616,433
|
|
|
Semiconductors
& Semiconductor Equipment – 0.3% |
|
|
47,960
|
|
Intel Corp.
|
|
1,235,929
|
|
|
Textiles,
Apparel & Luxury Goods – 0.3% |
|
|
41,415
|
|
VF Corp.
|
|
1,238,723
|
|
|
Thrifts
& Mortgage Finance – 0.8% |
|
|
252,107
|
|
New York Community Bancorp, Inc.
|
|
2,150,473
|
65,380
|
|
Provident Financial Services, Inc.
|
|
1,274,910
|
|
|
|
|
3,425,383
|
|
|
Tobacco –
1.1% |
|
|
70,127
|
|
Altria Group, Inc.
|
|
2,831,728
|
42,287
|
|
Universal Corp.
|
|
1,946,894
|
|
|
|
|
4,778,622
|
|
|
Trading
Companies & Distributors – 0.3% |
|
|
25,440
|
|
Triton International Ltd.
|
|
1,392,331
|
|
|
Wireless
Telecommunication Services – 0.3% |
|
|
106,389
|
|
Telephone & Data Systems, Inc.
|
|
1,478,807
|
|
|
Total Common Stocks
|
|
87,679,282
|
|
|
(Cost
$100,203,318) |
|
|
REAL
ESTATE INVESTMENT TRUSTS – 17.9% |
|
|
Diversified
REITs – 1.2% |
|
|
101,445
|
|
Essential Properties Realty Trust, Inc.
|
|
1,973,105
|
104,779
|
|
STORE Capital Corp.
|
|
3,282,726
|
|
|
|
|
5,255,831
|
|
|
Health
Care REITs – 0.6% |
|
|
241,104
|
|
Medical Properties Trust, Inc.
|
|
2,859,494
|
|
|
Mortgage
REITs – 8.9% |
|
|
264,072
|
|
Annaly Capital Management, Inc.
|
|
4,531,476
|
320,945
|
|
Arbor Realty Trust, Inc.
|
|
3,690,867
|
147,183
|
|
Blackstone Mortgage Trust, Inc., Class A
|
|
3,435,251
|
523,667
|
|
BrightSpire Capital, Inc.
|
|
3,304,339
|
913,978
|
|
Broadmark Realty Capital, Inc.
|
|
4,670,428
|
244,084
|
|
KKR Real Estate Finance Trust, Inc.
|
|
3,966,365
|
332,436
|
|
Ladder Capital Corp.
|
|
2,978,627
|
491,117
|
|
Ready Capital Corp.
|
|
4,979,926
|
188,836
|
|
Starwood Property Trust, Inc.
|
|
3,440,592
|
1,388,179
|
|
Two Harbors Investment Corp.
|
|
4,608,754
|
|
|
|
|
39,606,625
|
|
|
Office
REITs – 2.5% |
|
|
28,826
|
|
Boston Properties, Inc.
|
|
2,161,085
|
276,044
|
|
Piedmont Office Realty Trust, Inc., Class A
|
|
2,915,025
|
151,998
|
|
SL Green Realty Corp.
|
|
6,104,240
|
|
|
|
|
11,180,350
|
|
|
Retail
REITs – 2.1% |
|
|
100,019
|
|
Brixmor Property Group, Inc.
|
|
1,847,351
|
97,777
|
|
Getty Realty Corp.
|
|
2,629,223
|
See
Notes to Financial Statements
Page
43
Multi-Asset
Diversified Income Index Fund (MDIV)
Portfolio
of Investments (Continued)
September
30, 2022
Shares/
Units |
|
Description
|
|
Value
|
REAL
ESTATE INVESTMENT TRUSTS (Continued) |
|
|
Retail
REITs (Continued) |
|
|
53,330
|
|
National Retail Properties, Inc.
|
|
$2,125,734
|
31,264
|
|
Simon Property Group, Inc.
|
|
2,805,944
|
|
|
|
|
9,408,252
|
|
|
Specialized
REITs – 2.6% |
|
|
89,118
|
|
Four Corners Property Trust, Inc.
|
|
2,155,764
|
63,148
|
|
Gaming and Leisure Properties, Inc.
|
|
2,793,667
|
26,934
|
|
Lamar Advertising Co., Class A
|
|
2,221,786
|
341,379
|
|
Uniti Group, Inc.
|
|
2,372,584
|
68,002
|
|
VICI Properties, Inc.
|
|
2,029,860
|
|
|
|
|
11,573,661
|
|
|
Total Real Estate Investment Trusts
|
|
79,884,213
|
|
|
(Cost
$99,101,171) |
|
|
Shares
|
|
Description
|
|
Stated
Rate |
|
Stated
Maturity |
|
Value
|
$25
PAR PREFERRED SECURITIES – 20.8% |
|
|
Banks –
4.0% |
|
|
|
|
|
|
128,745
|
|
Citigroup Capital XIII, 3 Mo. LIBOR + 6.37% (b)
|
|
9.18%
|
|
10/30/40
|
|
3,591,986
|
146,052
|
|
Citigroup, Inc., Series J (c)
|
|
7.13%
|
|
(d)
|
|
3,743,313
|
141,116
|
|
Citigroup, Inc., Series K (c)
|
|
6.88%
|
|
(d)
|
|
3,616,803
|
130,701
|
|
PNC Financial Services Group (The), Inc., Series P, 3 Mo. LIBOR + 4.07% (b)
|
|
6.85%
|
|
(d)
|
|
3,317,191
|
141,435
|
|
Wells Fargo & Co., Series R (c)
|
|
6.63%
|
|
(d)
|
|
3,585,377
|
|
|
|
|
17,854,670
|
|
|
Capital
Markets – 1.7% |
|
|
|
|
|
|
148,292
|
|
Morgan Stanley, Series E (c)
|
|
7.13%
|
|
(d)
|
|
3,787,378
|
143,737
|
|
Morgan Stanley, Series F (c)
|
|
6.88%
|
|
(d)
|
|
3,604,924
|
|
|
|
|
7,392,302
|
|
|
Diversified
Financial Services – 1.5% |
|
|
|
|
|
|
144,200
|
|
Apollo Asset Management, Inc., Class A
|
|
6.38%
|
|
(d)
|
|
3,492,524
|
140,753
|
|
Apollo Asset Management, Inc., Series B
|
|
6.38%
|
|
(d)
|
|
3,335,846
|
|
|
|
|
6,828,370
|
|
|
Diversified
Telecommunication Services – 1.7% |
|
|
|
|
|
|
162,185
|
|
Qwest Corp.
|
|
6.50%
|
|
09/01/56
|
|
3,675,112
|
164,937
|
|
Qwest Corp.
|
|
6.75%
|
|
06/15/57
|
|
3,793,551
|
|
|
|
|
7,468,663
|
|
|
Food
Products – 0.8% |
|
|
|
|
|
|
140,544
|
|
CHS, Inc., Series 1
|
|
7.88%
|
|
(d)
|
|
3,644,306
|
|
|
Insurance –
1.5% |
|
|
|
|
|
|
150,095
|
|
Axis Capital Holdings Ltd., Series E
|
|
5.50%
|
|
(d)
|
|
3,164,002
|
136,559
|
|
Reinsurance Group of America, Inc., 3 Mo. LIBOR + 4.37% (b)
|
|
7.66%
|
|
09/15/42
|
|
3,444,018
|
|
|
|
|
6,608,020
|
|
|
Mortgage
Real Estate Investment Trusts – 4.2% |
|
|
|
|
|
|
165,611
|
|
AGNC Investment Corp., Series C (c)
|
|
7.00%
|
|
(d)
|
|
3,858,736
|
180,591
|
|
AGNC Investment Corp., Series E (c)
|
|
6.50%
|
|
(d)
|
|
3,720,175
|
178,895
|
|
AGNC Investment Corp., Series F (c)
|
|
6.13%
|
|
(d)
|
|
3,445,518
|
229,162
|
|
Chimera Investment Corp., Series B (c)
|
|
8.00%
|
|
(d)
|
|
4,033,251
|
Page
44
See
Notes to Financial Statements
Multi-Asset
Diversified Income Index Fund (MDIV)
Portfolio
of Investments (Continued)
September
30, 2022
Shares
|
|
Description
|
|
Stated
Rate |
|
Stated
Maturity |
|
Value
|
$25
PAR PREFERRED SECURITIES (Continued) |
|
|
Mortgage
Real Estate Investment Trusts (Continued) |
|
|
|
|
|
|
221,814
|
|
Two Harbors Investment Corp., Series B (c)
|
|
7.63%
|
|
(d)
|
|
$3,912,799
|
|
|
|
|
18,970,479
|
|
|
Multi-Utilities –
0.7% |
|
|
|
|
|
|
134,545
|
|
NiSource, Inc., Series B (c)
|
|
6.50%
|
|
(d)
|
|
3,320,571
|
|
|
Oil,
Gas & Consumable Fuels – 0.9% |
|
|
|
|
|
|
161,100
|
|
NuStar Logistics L.P., 3 Mo. LIBOR + 6.73% (b)
|
|
9.25%
|
|
01/15/43
|
|
3,932,451
|
|
|
Real
Estate Management & Development – 2.7% |
|
|
|
|
|
|
174,640
|
|
DigitalBridge Group, Inc., Class H
|
|
7.13%
|
|
(d)
|
|
3,917,175
|
177,214
|
|
DigitalBridge Group, Inc., Series I
|
|
7.15%
|
|
(d)
|
|
3,962,505
|
176,656
|
|
DigitalBridge Group, Inc., Series J
|
|
7.13%
|
|
(d)
|
|
4,003,025
|
|
|
|
|
11,882,705
|
|
|
Trading
Companies & Distributors – 1.1% |
|
|
|
|
|
|
189,556
|
|
WESCO International, Inc., Series A (c)
|
|
10.63%
|
|
(d)
|
|
5,108,534
|
|
|
Total $25 Par Preferred Securities
|
|
93,011,071
|
|
|
(Cost
$100,261,602) |
|
|
|
|
|
|
Shares
|
|
Description
|
|
Value
|
EXCHANGE-TRADED
FUNDS – 20.6% |
2,396,347
|
|
First Trust Tactical High Yield ETF (e)
|
|
91,828,017
|
|
|
(Cost
$113,970,109) |
|
|
|
|
Total Investments – 99.2%
|
|
442,541,641
|
|
|
(Cost
$487,754,815) |
|
|
|
|
Net Other Assets and Liabilities – 0.8%
|
|
3,559,303
|
|
|
Net Assets – 100.0%
|
|
$446,100,944
|
(a)
|
This
security is taxed as a “C” corporation for federal income tax purposes. |
(b)
|
Floating
rate security. |
(c)
|
Fixed-to-floating
or fixed-to-variable rate security. The interest rate shown reflects the fixed rate in effect at September 30, 2022. At a predetermined
date, the fixed rate will change to a floating rate or a variable rate. |
(d)
|
Perpetual
maturity. |
(e)
|
Investment
in an affiliated fund. |
LIBOR
|
London
Interbank Offered Rate |
See
Notes to Financial Statements
Page
45
Multi-Asset
Diversified Income Index Fund (MDIV)
Portfolio
of Investments (Continued)
September
30, 2022
Valuation
Inputs
A
summary of the inputs used to value the Fund’s investments as of September 30, 2022 is as follows (see Note 2A - Portfolio Valuation
in the Notes to Financial Statements):
|
Total
Value at 9/30/2022 |
Level
1 Quoted Prices |
Level
2 Significant Observable Inputs |
Level
3 Significant Unobservable Inputs |
Master Limited Partnerships*
|
$ 90,139,058
|
$ 90,139,058
|
$ —
|
$ —
|
Common Stocks*
|
87,679,282
|
87,679,282
|
—
|
—
|
Real Estate Investment Trusts*
|
79,884,213
|
79,884,213
|
—
|
—
|
$25 Par Preferred Securities*
|
93,011,071
|
93,011,071
|
—
|
—
|
Exchange-Traded Funds
|
91,828,017
|
91,828,017
|
—
|
—
|
Total Investments
|
$ 442,541,641
|
$ 442,541,641
|
$—
|
$—
|
*
|
See
Portfolio of Investments for industry breakout. |
Page
46
See
Notes to Financial Statements
First
Trust S&P International Dividend Aristocrats ETF (FID)
Portfolio
of Investments
September
30, 2022
Shares
|
|
Description
|
|
Value
|
COMMON
STOCKS – 91.3% |
|
|
Aerospace
& Defense – 3.3% |
|
|
93,234
|
|
BAE
Systems PLC (a) |
|
$819,193
|
249,600
|
|
Singapore
Technologies Engineering Ltd. (a) |
|
620,120
|
|
|
|
|
1,439,313
|
|
|
Banks –
7.4% |
|
|
3,988
|
|
Bank
of Montreal |
|
349,533
|
7,304
|
|
Bank
of Nova Scotia (The) |
|
347,394
|
7,859
|
|
Banque
Cantonale Vaudoise (a) |
|
743,524
|
8,035
|
|
Canadian
Imperial Bank of Commerce |
|
351,682
|
33,300
|
|
Fukuoka
Financial Group, Inc. (a) |
|
593,046
|
96,200
|
|
Mitsubishi
UFJ Financial Group, Inc. (a) |
|
435,798
|
15,100
|
|
Sumitomo
Mitsui Trust Holdings, Inc. (a) |
|
429,440
|
|
|
|
|
3,250,417
|
|
|
Beverages –
2.0% |
|
|
121,539
|
|
Arca
Continental S.A.B. de C.V. |
|
875,115
|
|
|
Capital
Markets – 3.8% |
|
|
192,277
|
|
Ashmore
Group PLC (a) |
|
419,859
|
60,017
|
|
IG
Group Holdings PLC (a) |
|
508,630
|
15,505
|
|
IGM
Financial, Inc. |
|
386,348
|
19,600
|
|
SBI
Holdings, Inc. (a) |
|
351,723
|
|
|
|
|
1,666,560
|
|
|
Chemicals –
2.0% |
|
|
12,093
|
|
BASF
SE (a) |
|
464,110
|
19,500
|
|
Denka
Co., Ltd. (a) |
|
428,790
|
|
|
|
|
892,900
|
|
|
Commercial
Services & Supplies – 0.9% |
|
|
31,494
|
|
Intrum
AB (a) |
|
395,839
|
|
|
Construction
& Engineering – 1.5% |
|
|
25,558
|
|
Bouygues
S.A. (a) |
|
668,559
|
|
|
Diversified
Telecommunication Services – 5.7% |
|
|
16,182
|
|
BCE,
Inc. |
|
678,511
|
1,301
|
|
Swisscom
AG (a) |
|
609,182
|
68,216
|
|
Telenor
ASA (a) |
|
624,321
|
29,707
|
|
TELUS
Corp. |
|
589,903
|
|
|
|
|
2,501,917
|
|
|
Electric
Utilities – 7.9% |
|
|
137,084
|
|
CK
Infrastructure Holdings Ltd. (a) |
|
699,173
|
68,212
|
|
CLP
Holdings, Ltd. (a) |
|
515,528
|
129,413
|
|
EDP
- Energias de Portugal S.A. (a) |
|
561,654
|
Shares
|
|
Description
|
|
Value
|
|
|
|
Electric
Utilities (Continued) |
|
|
14,125
|
|
Emera,
Inc. |
|
$571,504
|
25,042
|
|
Fortum
Oyj (a) |
|
336,491
|
161,084
|
|
Power
Assets Holdings Ltd. (a) |
|
807,478
|
|
|
|
|
3,491,828
|
|
|
Gas
Utilities – 7.0% |
|
|
124,767
|
|
APA
Group (a) |
|
767,685
|
204,004
|
|
Beijing
Enterprises Holdings Ltd. (a) |
|
571,734
|
62,978
|
|
Enagas
S.A. (a) |
|
974,833
|
36,656
|
|
Rubis
SCA (a) |
|
762,818
|
|
|
|
|
3,077,070
|
|
|
Independent
Power & Renewable Electricity Producers – 4.4% |
|
|
28,887
|
|
Capital
Power Corp. |
|
980,780
|
65,800
|
|
Electric
Power Development Co., Ltd. (a) |
|
930,510
|
|
|
|
|
1,911,290
|
|
|
Insurance –
13.5% |
|
|
14,775
|
|
Ageas
S.A./N.V. (a) |
|
538,869
|
2,337
|
|
Allianz
SE (a) |
|
368,158
|
3,190
|
|
Baloise
Holding AG (a) |
|
407,601
|
19,985
|
|
Great-West
Lifeco, Inc. |
|
431,428
|
4,786
|
|
Helvetia
Holding AG (a) |
|
448,475
|
188,783
|
|
Legal
& General Group PLC (a) |
|
450,621
|
27,001
|
|
Manulife
Financial Corp. |
|
423,775
|
17,500
|
|
MS&AD
Insurance Group Holdings, Inc. (a) |
|
463,448
|
1,573
|
|
Muenchener
Rueckversicherungs-Gesellschaft AG in Muenchen (a) |
|
378,654
|
16,926
|
|
Power
Corp. of Canada |
|
381,443
|
7,838
|
|
Sun
Life Financial, Inc. |
|
311,682
|
754
|
|
Swiss
Life Holding AG (a) |
|
333,126
|
24,900
|
|
Tokio
Marine Holdings, Inc. (a) |
|
442,551
|
1,339
|
|
Zurich
Insurance Group AG (a) |
|
533,793
|
|
|
|
|
5,913,624
|
|
|
Machinery –
1.0% |
|
|
7,908
|
|
Sulzer
AG (a) |
|
454,925
|
|
|
Media –
1.1% |
|
|
26,062
|
|
Quebecor,
Inc., Class B |
|
480,544
|
|
|
Metals
& Mining – 1.3% |
|
|
41,400
|
|
Asahi
Holdings, Inc. (a) |
|
581,464
|
|
|
Multi-Utilities –
3.0% |
|
|
20,593
|
|
ATCO
Ltd., Class I |
|
632,840
|
26,925
|
|
Canadian
Utilities Ltd., Class A |
|
700,340
|
|
|
|
|
1,333,180
|
See
Notes to Financial Statements
Page
47
First
Trust S&P International Dividend Aristocrats ETF (FID)
Portfolio
of Investments (Continued)
September
30, 2022
Shares
|
|
Description
|
|
Value
|
COMMON
STOCKS (Continued) |
|
|
Oil,
Gas & Consumable Fuels – 7.8% |
|
|
13,315
|
|
Canadian
Natural Resources Ltd. |
|
$619,796
|
220,300
|
|
ENEOS
Holdings, Inc. (a) |
|
710,501
|
47,248
|
|
Keyera
Corp. |
|
972,768
|
19,658
|
|
Koninklijke
Vopak N.V. (a) |
|
357,671
|
18,546
|
|
TC
Energy Corp. |
|
747,022
|
|
|
|
|
3,407,758
|
|
|
Paper
& Forest Products – 1.2% |
|
|
16,743
|
|
UPM-Kymmene
Oyj (a) |
|
531,330
|
|
|
Pharmaceuticals –
3.3% |
|
|
7,275
|
|
Novartis
AG (a) |
|
554,624
|
34,100
|
|
Takeda
Pharmaceutical Co., Ltd. (a) |
|
885,502
|
|
|
|
|
1,440,126
|
|
|
Professional
Services – 1.1% |
|
|
17,191
|
|
Adecco
Group AG (a) |
|
474,464
|
|
|
Real
Estate Management & Development – 8.5% |
|
|
215,914
|
|
Henderson
Land Development Co., Ltd. (a) |
|
604,605
|
153,082
|
|
Longfor
Group Holdings Ltd. (a) (b) (c) |
|
438,817
|
292,914
|
|
New
World Development Co., Ltd. (a) |
|
831,902
|
774,146
|
|
Sino
Land Co., Ltd. (a) |
|
1,018,256
|
74,269
|
|
Sun
Hung Kai Properties Ltd. (a) |
|
819,653
|
|
|
|
|
3,713,233
|
|
|
Tobacco –
2.2% |
|
|
15,929
|
|
KT&G
Corp. (a) |
|
961,793
|
|
|
Water
Utilities – 1.4% |
|
|
789,839
|
|
Guangdong
Investment Ltd. (a) |
|
630,939
|
|
|
Total
Common Stocks |
|
40,094,188
|
|
|
(Cost
$49,981,207) |
|
|
REAL
ESTATE INVESTMENT TRUSTS – 7.8% |
|
|
Equity
Real Estate Investment Trusts – 7.8% |
|
|
17,441
|
|
Allied
Properties Real Estate Investment Trust |
|
345,449
|
122
|
|
Daiwa
Office Investment Corp. (a) |
|
567,495
|
992
|
|
Japan
Metropolitan Fund Investment Corp. (a) |
|
744,807
|
88,806
|
|
Link
REIT (a) |
|
619,911
|
358,827
|
|
Primary
Health Properties PLC (a) |
|
454,674
|
Shares
|
|
Description
|
|
Value
|
|
|
|
Equity
Real Estate Investment Trusts (Continued) |
|
|
36,623
|
|
SmartCentres
Real Estate Investment Trust |
|
$687,999
|
|
|
Total
Real Estate Investment Trusts |
|
3,420,335
|
|
|
(Cost
$4,523,237) |
|
|
|
|
Total
Investments – 99.1% |
|
43,514,523
|
|
|
(Cost
$54,504,444) |
|
|
|
|
Net
Other Assets and Liabilities – 0.9% |
|
396,995
|
|
|
Net
Assets – 100.0% |
|
$43,911,518
|
(a)
|
This
security is fair valued by the Advisor’s Pricing Committee in accordance with procedures approved by the Trust’s Board of
Trustees and in accordance with provisions of the Investment Company Act of 1940 and rules thereunder, as amended. At September 30, 2022,
securities noted as such are valued at $31,648,667 or 72.1% of net assets. Certain of these securities are fair valued using a factor
provided by a third-party pricing service due to the change in value between the foreign markets’ close and the New York Stock Exchange
close exceeding a certain threshold. On days when this threshold is not exceeded, these securities are typically valued at the last sale
price on the exchange on which they are principally traded. |
(b)
|
This
security may be resold to qualified foreign investors and foreign institutional buyers under Regulation S of the Securities Act of 1933,
as amended (the “1933 Act”). |
(c)
|
This
security is exempt from registration upon resale under Rule 144A of the 1933 Act and may be resold in transactions exempt from registration,
normally to qualified institutional buyers. This security is not restricted on the foreign exchange where it trades freely without any
additional registration. As such, it does not require the additional disclosure required of restricted securities. |
Currency
Exposure Diversification |
%
of Total Investments |
Canadian
Dollar |
25.2%
|
Japanese
Yen |
17.4
|
Hong
Kong Dollar |
17.4
|
Euro
|
13.7
|
Swiss
Franc |
10.5
|
British
Pound Sterling |
6.1
|
South
Korean Won |
2.2
|
Mexican
Peso |
2.0
|
Australian
Dollar |
1.8
|
Norwegian
Krone |
1.4
|
Singapore
Dollar |
1.4
|
Swedish
Krona |
0.9
|
Total
|
100.0%
|
Page
48
See
Notes to Financial Statements
First
Trust S&P International Dividend Aristocrats ETF (FID)
Portfolio
of Investments (Continued)
September
30, 2022
Valuation
Inputs
A
summary of the inputs used to value the Fund’s investments as of September 30, 2022 is as follows (see Note 2A - Portfolio Valuation
in the Notes to Financial Statements):
|
Total
Value at 9/30/2022 |
Level
1 Quoted Prices |
Level
2 Significant Observable Inputs |
Level
3 Significant Unobservable Inputs |
Common
Stocks: |
|
|
|
|
Banks
|
$ 3,250,417
|
$ 1,048,609
|
$ 2,201,808
|
$ —
|
Beverages
|
875,115
|
875,115
|
—
|
—
|
Capital
Markets |
1,666,560
|
386,348
|
1,280,212
|
—
|
Diversified
Telecommunication Services |
2,501,917
|
1,268,414
|
1,233,503
|
—
|
Electric
Utilities |
3,491,828
|
571,504
|
2,920,324
|
—
|
Independent
Power & Renewable Electricity Producers |
1,911,290
|
980,780
|
930,510
|
—
|
Insurance
|
5,913,624
|
1,548,328
|
4,365,296
|
—
|
Media
|
480,544
|
480,544
|
—
|
—
|
Multi-Utilities
|
1,333,180
|
1,333,180
|
—
|
—
|
Oil,
Gas & Consumable Fuels |
3,407,758
|
2,339,586
|
1,068,172
|
—
|
Other
Industry Categories* |
15,261,955
|
—
|
15,261,955
|
—
|
Real
Estate Investment Trusts* |
3,420,335
|
1,033,448
|
2,386,887
|
—
|
Total
Investments |
$ 43,514,523
|
$ 11,865,856
|
$ 31,648,667
|
$—
|
*
|
See
Portfolio of Investments for industry breakout. |
See
Notes to Financial Statements
Page
49
First
Trust BuyWrite Income ETF (FTHI)
Portfolio
of Investments
September
30, 2022
Shares
|
|
Description
|
|
Value
|
COMMON
STOCKS – 94.9% |
|
|
Aerospace
& Defense – 0.8% |
|
|
1,627
|
|
Boeing (The) Co. (a)
|
|
$196,997
|
616
|
|
Lockheed Martin Corp.
|
|
237,955
|
3,384
|
|
Raytheon Technologies Corp.
|
|
277,014
|
|
|
|
|
711,966
|
|
|
Air
Freight & Logistics – 0.3% |
|
|
1,645
|
|
United Parcel Service, Inc., Class B
|
|
265,733
|
|
|
Automobiles –
2.8% |
|
|
44,320
|
|
Stellantis N.V.
|
|
524,749
|
7,335
|
|
Tesla, Inc. (a) (b)
|
|
1,945,609
|
|
|
|
|
2,470,358
|
|
|
Banks –
3.2% |
|
|
23,239
|
|
Bank of America Corp.
|
|
701,818
|
5,112
|
|
Citigroup, Inc.
|
|
213,017
|
4,232
|
|
HDFC Bank, Ltd., ADR
|
|
247,233
|
9,741
|
|
JPMorgan Chase & Co. (b)
|
|
1,017,935
|
3,466
|
|
Royal Bank of Canada
|
|
312,079
|
8,679
|
|
Wells Fargo & Co. (b)
|
|
349,069
|
|
|
|
|
2,841,151
|
|
|
Beverages –
3.1% |
|
|
9,961
|
|
Coca-Cola (The) Co.
|
|
558,015
|
31,096
|
|
Coca-Cola European Partners PLC (b)
|
|
1,325,312
|
2,998
|
|
MGP Ingredients, Inc.
|
|
318,268
|
3,567
|
|
PepsiCo, Inc.
|
|
582,348
|
|
|
|
|
2,783,943
|
|
|
Biotechnology –
1.0% |
|
|
4,733
|
|
AbbVie, Inc. (b)
|
|
635,216
|
1,230
|
|
Amgen, Inc.
|
|
277,242
|
|
|
|
|
912,458
|
|
|
Building
Products – 0.2% |
|
|
2,741
|
|
UFP Industries, Inc.
|
|
197,791
|
|
|
Capital
Markets – 2.7% |
|
|
17,351
|
|
Artisan Partners Asset Management, Inc., Class A
|
|
467,262
|
571
|
|
BlackRock, Inc.
|
|
314,210
|
3,607
|
|
Charles Schwab (The) Corp.
|
|
259,235
|
791
|
|
Goldman Sachs Group (The), Inc.
|
|
231,803
|
10,166
|
|
Moelis & Co., Class A
|
|
343,712
|
5,401
|
|
Morgan Stanley
|
|
426,733
|
1,323
|
|
S&P Global, Inc.
|
|
403,978
|
|
|
|
|
2,446,933
|
|
|
Chemicals –
1.1% |
|
|
6,443
|
|
Chemours (The) Co.
|
|
158,820
|
1,169
|
|
Linde PLC
|
|
315,151
|
8,832
|
|
Valvoline, Inc.
|
|
223,803
|
3,373
|
|
Westlake Corp.
|
|
293,046
|
|
|
|
|
990,820
|
|
|
Communications
Equipment – 0.9% |
|
|
13,826
|
|
Cisco Systems, Inc.
|
|
553,040
|
Page
50
See
Notes to Financial Statements
First
Trust BuyWrite Income ETF (FTHI)
Portfolio
of Investments (Continued)
September
30, 2022
Shares
|
|
Description
|
|
Value
|
COMMON
STOCKS (Continued) |
|
|
Communications
Equipment (Continued) |
|
|
35,661
|
|
Telefonaktiebolaget LM Ericsson, ADR
|
|
$204,694
|
|
|
|
|
757,734
|
|
|
Consumer
Finance – 0.3% |
|
|
1,920
|
|
American Express Co.
|
|
259,027
|
|
|
Containers
& Packaging – 1.2% |
|
|
18,919
|
|
Sonoco Products Co. (b)
|
|
1,073,275
|
|
|
Diversified
Financial Services – 1.7% |
|
|
5,777
|
|
Berkshire Hathaway, Inc., Class B (a) (b)
|
|
1,542,574
|
|
|
Diversified
Telecommunication Services – 0.9% |
|
|
15,622
|
|
AT&T, Inc. (b)
|
|
239,641
|
15,632
|
|
Verizon Communications, Inc.
|
|
593,547
|
|
|
|
|
833,188
|
|
|
Electric
Utilities – 2.4% |
|
|
20,190
|
|
Avangrid, Inc.
|
|
841,923
|
7,306
|
|
IDACORP, Inc.
|
|
723,367
|
4,749
|
|
NextEra Energy, Inc.
|
|
372,369
|
3,697
|
|
Otter Tail Corp.
|
|
227,440
|
|
|
|
|
2,165,099
|
|
|
Electrical
Equipment – 0.4% |
|
|
13,808
|
|
ABB, Ltd., ADR
|
|
354,313
|
|
|
Entertainment –
0.9% |
|
|
1,107
|
|
Netflix, Inc. (a)
|
|
260,632
|
6,118
|
|
Walt Disney (The) Co. (a)
|
|
577,111
|
|
|
|
|
837,743
|
|
|
Food
& Staples Retailing – 1.5% |
|
|
1,142
|
|
Costco Wholesale Corp.
|
|
539,332
|
6,465
|
|
Grocery Outlet Holding Corp. (a)
|
|
215,220
|
4,832
|
|
Walmart, Inc.
|
|
626,711
|
|
|
|
|
1,381,263
|
|
|
Food
Products – 2.6% |
|
|
22,811
|
|
Cal-Maine Foods, Inc. (b)
|
|
1,268,064
|
32,331
|
|
Flowers Foods, Inc.
|
|
798,252
|
4,174
|
|
Mondelez International, Inc., Class A
|
|
228,860
|
|
|
|
|
2,295,176
|
|
|
Health
Care Equipment & Supplies – 3.1% |
|
|
6,408
|
|
Abbott Laboratories
|
|
620,038
|
1,634
|
|
Intuitive Surgical, Inc. (a)
|
|
306,277
|
14,486
|
|
Koninklijke Philips N.V.
|
|
222,940
|
19,072
|
|
Lantheus Holdings, Inc. (a) (b)
|
|
1,341,334
|
2,986
|
|
Medtronic PLC
|
|
241,119
|
|
|
|
|
2,731,708
|
|
|
Health
Care Providers & Services – 2.9% |
|
|
944
|
|
Cigna Corp.
|
|
261,932
|
3,026
|
|
CVS Health Corp. (b)
|
|
288,590
|
560
|
|
Elevance Health, Inc.
|
|
254,374
|
20,410
|
|
Patterson Cos., Inc.
|
|
490,248
|
See
Notes to Financial Statements
Page
51
First
Trust BuyWrite Income ETF (FTHI)
Portfolio
of Investments (Continued)
September
30, 2022
Shares
|
|
Description
|
|
Value
|
COMMON
STOCKS (Continued) |
|
|
Health
Care Providers & Services (Continued) |
|
|
2,635
|
|
UnitedHealth Group, Inc. (b)
|
|
$1,330,780
|
|
|
|
|
2,625,924
|
|
|
Hotels,
Restaurants & Leisure – 0.9% |
|
|
1,809
|
|
McDonald’s Corp.
|
|
417,409
|
4,477
|
|
Starbucks Corp.
|
|
377,232
|
|
|
|
|
794,641
|
|
|
Household
Durables – 0.3% |
|
|
4,766
|
|
Sony Group Corp., ADR
|
|
305,262
|
|
|
Household
Products – 1.1% |
|
|
7,933
|
|
Procter & Gamble (The) Co. (b)
|
|
1,001,541
|
|
|
Independent
Power & Renewable Electricity Producers – 1.0% |
|
|
15,766
|
|
Atlantica Sustainable Infrastructure PLC
|
|
414,646
|
6,564
|
|
Clearway Energy, Inc., Class C
|
|
209,063
|
10,570
|
|
Vistra Corp.
|
|
221,970
|
|
|
|
|
845,679
|
|
|
Industrial
Conglomerates – 0.8% |
|
|
2,537
|
|
3M Co.
|
|
280,339
|
2,558
|
|
Honeywell International, Inc.
|
|
427,109
|
|
|
|
|
707,448
|
|
|
Interactive
Media & Services – 5.2% |
|
|
19,324
|
|
Alphabet, Inc., Class A (a) (b)
|
|
1,848,341
|
17,785
|
|
Alphabet, Inc., Class C (a) (b)
|
|
1,710,028
|
7,764
|
|
Meta Platforms, Inc., Class A (a) (b)
|
|
1,053,419
|
|
|
|
|
4,611,788
|
|
|
Internet
& Direct Marketing Retail – 3.3% |
|
|
26,473
|
|
Amazon.com, Inc. (a) (b)
|
|
2,991,449
|
|
|
IT
Services – 3.7% |
|
|
1,569
|
|
Accenture PLC, Class A
|
|
403,704
|
1,048
|
|
Automatic Data Processing, Inc.
|
|
237,047
|
13,632
|
|
Infosys Ltd., ADR
|
|
231,335
|
1,965
|
|
International Business Machines Corp.
|
|
233,462
|
2,866
|
|
Mastercard, Inc., Class A
|
|
814,918
|
4,684
|
|
PayPal Holdings, Inc. (a)
|
|
403,152
|
5,520
|
|
Visa, Inc., Class A (b)
|
|
980,628
|
|
|
|
|
3,304,246
|
|
|
Life
Sciences Tools & Services – 1.4% |
|
|
2,314
|
|
Danaher Corp.
|
|
597,683
|
1,309
|
|
Thermo Fisher Scientific, Inc. (b)
|
|
663,912
|
|
|
|
|
1,261,595
|
|
|
Machinery –
0.5% |
|
|
1,382
|
|
Caterpillar, Inc.
|
|
226,758
|
746
|
|
Deere & Co.
|
|
249,082
|
|
|
|
|
475,840
|
|
|
Media –
0.6% |
|
|
16,857
|
|
Comcast Corp., Class A
|
|
494,416
|
Page
52
See
Notes to Financial Statements
First
Trust BuyWrite Income ETF (FTHI)
Portfolio
of Investments (Continued)
September
30, 2022
Shares
|
|
Description
|
|
Value
|
COMMON
STOCKS (Continued) |
|
|
Metals
& Mining – 0.8% |
|
|
2,846
|
|
Reliance Steel & Aluminum Co.
|
|
$496,371
|
3,213
|
|
Steel Dynamics, Inc.
|
|
227,962
|
|
|
|
|
724,333
|
|
|
Multi-Utilities –
0.5% |
|
|
12,080
|
|
Avista Corp.
|
|
447,564
|
|
|
Oil,
Gas & Consumable Fuels – 9.6% |
|
|
39,481
|
|
Antero Midstream Corp.
|
|
362,436
|
6,542
|
|
Antero Resources Corp. (a)
|
|
199,727
|
10,258
|
|
Archaea Energy, Inc. (a)
|
|
184,747
|
10,637
|
|
Chesapeake Energy Corp. (b)
|
|
1,002,112
|
5,164
|
|
Chevron Corp.
|
|
741,912
|
58,129
|
|
Comstock Resources, Inc. (a) (b)
|
|
1,005,050
|
2,654
|
|
ConocoPhillips
|
|
271,610
|
17,634
|
|
CVR Energy, Inc.
|
|
511,033
|
14,423
|
|
Delek US Holdings, Inc.
|
|
391,440
|
13,027
|
|
EQT Corp.
|
|
530,850
|
11,234
|
|
Exxon Mobil Corp. (b)
|
|
980,841
|
11,401
|
|
Magnolia Oil & Gas Corp., Class A
|
|
225,854
|
8,369
|
|
Murphy Oil Corp.
|
|
294,338
|
6,333
|
|
New Fortress Energy, Inc.
|
|
276,815
|
10,601
|
|
Ovintiv, Inc.
|
|
487,646
|
7,622
|
|
PBF Energy, Inc., Class A (a)
|
|
267,990
|
7,548
|
|
PDC Energy, Inc.
|
|
436,199
|
7,923
|
|
Range Resources Corp.
|
|
200,135
|
26,037
|
|
SFL Corp., Ltd.
|
|
237,197
|
|
|
|
|
8,607,932
|
|
|
Personal
Products – 0.5% |
|
|
9,495
|
|
Unilever PLC, ADR
|
|
416,261
|
|
|
Pharmaceuticals –
5.5% |
|
|
4,984
|
|
Bristol-Myers Squibb Co.
|
|
354,313
|
2,012
|
|
Eli Lilly & Co.
|
|
650,580
|
9,241
|
|
Johnson & Johnson (b)
|
|
1,509,610
|
6,361
|
|
Merck & Co., Inc.
|
|
547,809
|
10,932
|
|
Novartis AG, ADR
|
|
830,942
|
15,082
|
|
Pfizer, Inc.
|
|
659,988
|
9,418
|
|
Royalty Pharma PLC, Class A
|
|
378,415
|
|
|
|
|
4,931,657
|
|
|
Professional
Services – 0.2% |
|
|
3,316
|
|
TransUnion
|
|
197,269
|
|
|
Road
& Rail – 0.3% |
|
|
1,382
|
|
Union Pacific Corp.
|
|
269,241
|
|
|
Semiconductors
& Semiconductor Equipment – 3.8% |
|
|
3,817
|
|
Advanced Micro Devices, Inc. (a)
|
|
241,845
|
1,589
|
|
Analog Devices, Inc.
|
|
221,411
|
3,694
|
|
Applied Materials, Inc.
|
|
302,650
|
1,039
|
|
Broadcom, Inc.
|
|
461,326
|
11,434
|
|
Intel Corp.
|
|
294,654
|
6,414
|
|
NVIDIA Corp. (b)
|
|
778,596
|
2,648
|
|
QUALCOMM, Inc.
|
|
299,171
|
5,632
|
|
Taiwan Semiconductor Manufacturing Co., Ltd., ADR
|
|
386,130
|
See
Notes to Financial Statements
Page
53
First
Trust BuyWrite Income ETF (FTHI)
Portfolio
of Investments (Continued)
September
30, 2022
Shares
|
|
Description
|
|
Value
|
COMMON
STOCKS (Continued) |
|
|
Semiconductors
& Semiconductor Equipment (Continued) |
|
|
2,842
|
|
Texas Instruments, Inc.
|
|
$439,885
|
|
|
|
|
3,425,668
|
|
|
Software –
9.4% |
|
|
1,810
|
|
Adobe, Inc. (a)
|
|
498,112
|
1,091
|
|
Intuit, Inc.
|
|
422,566
|
22,682
|
|
Microsoft Corp. (b)
|
|
5,282,638
|
1,401
|
|
Nice Ltd., ADR (a)
|
|
263,724
|
6,086
|
|
Oracle Corp.
|
|
371,672
|
3,705
|
|
salesforce.com, Inc. (a)
|
|
532,927
|
8,797
|
|
SAP SE, ADR
|
|
714,756
|
816
|
|
ServiceNow, Inc. (a)
|
|
308,130
|
|
|
|
|
8,394,525
|
|
|
Specialty
Retail – 2.2% |
|
|
11,839
|
|
Buckle (The), Inc.
|
|
374,823
|
2,695
|
|
Home Depot (The), Inc. (b)
|
|
743,658
|
1,431
|
|
Lowe’s Cos., Inc.
|
|
268,756
|
2,054
|
|
Murphy USA, Inc.
|
|
564,665
|
|
|
|
|
1,951,902
|
|
|
Technology
Hardware, Storage & Peripherals – 7.1% |
|
|
46,018
|
|
Apple, Inc. (b)
|
|
6,359,688
|
|
|
Textiles,
Apparel & Luxury Goods – 0.5% |
|
|
4,807
|
|
NIKE, Inc., Class B
|
|
399,558
|
|
|
Tobacco –
0.3% |
|
|
3,591
|
|
Philip Morris International, Inc.
|
|
298,089
|
|
|
Trading
Companies & Distributors – 1.0% |
|
|
1,574
|
|
Veritiv Corp (a)
|
|
153,890
|
3,024
|
|
Watsco, Inc.
|
|
778,559
|
|
|
|
|
932,449
|
|
|
Wireless
Telecommunication Services – 0.4% |
|
|
2,536
|
|
T-Mobile US, Inc. (a)
|
|
340,255
|
|
|
Total Common Stocks
|
|
84,968,473
|
|
|
(Cost
$93,396,209) |
|
|
REAL
ESTATE INVESTMENT TRUSTS – 3.2% |
|
|
Equity
Real Estate Investment Trusts – 3.2% |
|
|
1,829
|
|
American Tower Corp.
|
|
392,686
|
47,409
|
|
Apartment Investment and Management Co., Class A
|
|
346,086
|
8,943
|
|
EPR Properties
|
|
320,696
|
23,074
|
|
Equity Commonwealth
|
|
562,083
|
13,921
|
|
Omega Healthcare Investors, Inc.
|
|
410,530
|
1,986
|
|
Prologis, Inc.
|
|
201,778
|
20,550
|
|
VICI Properties, Inc.
|
|
613,417
|
|
|
Total Real Estate Investment Trusts
|
|
2,847,276
|
|
|
(Cost
$3,255,596) |
|
|
Page
54
See
Notes to Financial Statements
First
Trust BuyWrite Income ETF (FTHI)
Portfolio
of Investments (Continued)
September
30, 2022
Units
|
|
Description
|
|
Value
|
MASTER
LIMITED PARTNERSHIPS – 0.5% |
|
|
Oil,
Gas & Consumable Fuels – 0.5% |
|
|
15,020
|
|
Viper Energy Partners, L.P. (c)
|
|
$430,473
|
|
|
(Cost
$446,751) |
|
|
|
|
Total Investments – 98.6%
|
|
88,246,222
|
|
|
(Cost
$97,098,556) |
|
|
Number
of Contracts |
|
Description
|
|
Notional
Amount |
|
Exercise
Price |
|
Expiration
Date |
|
Value
|
CALL
OPTIONS WRITTEN – (0.1)% |
(16)
|
|
S&P 500® Index
|
|
$(5,736,992)
|
|
$3,950.00
|
|
10/21/22
|
|
(6,912)
|
(13)
|
|
S&P 500® Index
|
|
(4,661,306)
|
|
4,050.00
|
|
10/21/22
|
|
(2,041)
|
(50)
|
|
S&P 500® Index
|
|
(17,928,100)
|
|
4,100.00
|
|
10/21/22
|
|
(4,750)
|
(18)
|
|
S&P 500® Index
|
|
(6,454,116)
|
|
4,300.00
|
|
10/21/22
|
|
(360)
|
(38)
|
|
S&P 500® Index
|
|
(13,625,356)
|
|
4,325.00
|
|
10/21/22
|
|
(855)
|
(16)
|
|
S&P 500® Index
|
|
(5,736,992)
|
|
3,975.00
|
|
11/18/22
|
|
(29,008)
|
(23)
|
|
S&P 500® Index
|
|
(8,246,926)
|
|
4,000.00
|
|
11/18/22
|
|
(35,420)
|
|
|
Total Call Options Written
|
|
(79,346)
|
|
|
(Premiums
received $1,911,411) |
|
|
|
|
|
|
|
|
|
Net Other Assets and Liabilities – 1.5%
|
|
1,360,012
|
|
Net Assets – 100.0%
|
|
$89,526,888
|
(a)
|
Non-income
producing security. |
(b)
|
All
or a portion of this security is pledged to cover options written. |
(c)
|
This
security is taxed as a “C” corporation for federal income tax purposes. |
ADR
|
American
Depositary Receipt |
Valuation
Inputs
A
summary of the inputs used to value the Fund’s investments as of September 30, 2022 is as follows (see Note 2A - Portfolio Valuation
in the Notes to Financial Statements):
ASSETS
TABLE |
|
Total
Value at 9/30/2022 |
Level
1 Quoted Prices |
Level
2 Significant Observable Inputs |
Level
3 Significant Unobservable Inputs |
Common Stocks*
|
$ 84,968,473
|
$ 84,968,473
|
$ —
|
$ —
|
Real Estate Investment Trusts*
|
2,847,276
|
2,847,276
|
—
|
—
|
Master Limited Partnerships*
|
430,473
|
430,473
|
—
|
—
|
Total Investments
|
$ 88,246,222
|
$ 88,246,222
|
$—
|
$—
|
|
LIABILITIES
TABLE |
|
Total
Value at 9/30/2022 |
Level
1 Quoted Prices |
Level
2 Significant Observable Inputs |
Level
3 Significant Unobservable Inputs |
Call Options Written
|
$ (79,346)
|
$ (78,491)
|
$ (855)
|
$ —
|
*
|
See
Portfolio of Investments for industry breakout. |
See
Notes to Financial Statements
Page
55
First
Trust Nasdaq BuyWrite Income ETF (FTQI)
Portfolio
of Investments
September
30, 2022
Shares
|
|
Description
|
|
Value
|
COMMON
STOCKS – 97.6% |
|
|
Aerospace
& Defense – 0.5% |
|
|
635
|
|
AeroVironment, Inc. (a)
|
|
$52,934
|
9,973
|
|
Rocket Lab USA, Inc. (a)
|
|
40,590
|
|
|
|
|
93,524
|
|
|
Auto
Components – 0.2% |
|
|
5,059
|
|
Luminar Technologies, Inc. (a)
|
|
36,855
|
|
|
Automobiles –
4.5% |
|
|
3,217
|
|
Tesla, Inc. (a) (b)
|
|
853,309
|
|
|
Banks –
3.4% |
|
|
2,588
|
|
ConnectOne Bancorp, Inc.
|
|
59,679
|
690
|
|
Independent Bank Group, Inc.
|
|
42,359
|
2,184
|
|
Lakeland Financial Corp.
|
|
159,017
|
1,492
|
|
Live Oak Bancshares, Inc.
|
|
45,655
|
1,030
|
|
Triumph Bancorp, Inc. (a)
|
|
55,981
|
1,327
|
|
UMB Financial Corp.
|
|
111,853
|
4,540
|
|
Valley National Bancorp
|
|
49,032
|
2,080
|
|
Veritex Holdings, Inc.
|
|
55,307
|
1,154
|
|
Zions Bancorp N.A.
|
|
58,693
|
|
|
|
|
637,576
|
|
|
Beverages –
2.4% |
|
|
899
|
|
Coca-Cola (The) Co.
|
|
50,362
|
2,431
|
|
PepsiCo, Inc. (b)
|
|
396,885
|
|
|
|
|
447,247
|
|
|
Biotechnology –
3.7% |
|
|
2,351
|
|
Ascendis Pharma A.S., ADR (a)
|
|
242,764
|
4,410
|
|
Avidity Biosciences, Inc. (a)
|
|
72,015
|
1,805
|
|
Legend Biotech Corp., ADR (a)
|
|
73,644
|
2,435
|
|
Prometheus Biosciences, Inc. (a)
|
|
143,690
|
5,056
|
|
Relay Therapeutics, Inc. (a)
|
|
113,103
|
2,285
|
|
Xencor, Inc. (a)
|
|
59,364
|
|
|
|
|
704,580
|
|
|
Capital
Markets – 5.1% |
|
|
37,754
|
|
BGC Partners, Inc., Class A
|
|
118,547
|
1,129
|
|
Coinbase Global, Inc., Class A (a)
|
|
72,809
|
877
|
|
MarketAxess Holdings, Inc.
|
|
195,124
|
928
|
|
Morningstar, Inc.
|
|
197,033
|
2,103
|
|
Northern Trust Corp.
|
|
179,933
|
19,113
|
|
Perella Weinberg Partners
|
|
120,985
|
3,825
|
|
Victory Capital Holdings, Inc., Class A
|
|
89,161
|
|
|
|
|
973,592
|
|
|
Communications
Equipment – 1.5% |
|
|
6,998
|
|
Cisco Systems, Inc. (b)
|
|
279,920
|
|
|
Consumer
Finance – 0.3% |
|
|
13,521
|
|
SoFi Technologies, Inc. (a)
|
|
65,983
|
|
|
Diversified
Telecommunication Services – 0.3% |
|
|
1,387
|
|
Anterix, Inc. (a)
|
|
49,544
|
|
|
Electric
Utilities – 3.1% |
|
|
3,712
|
|
Alliant Energy Corp. (b)
|
|
196,699
|
2,727
|
|
MGE Energy, Inc. (b)
|
|
178,973
|
Page
56
See
Notes to Financial Statements
First
Trust Nasdaq BuyWrite Income ETF (FTQI)
Portfolio
of Investments (Continued)
September
30, 2022
Shares
|
|
Description
|
|
Value
|
COMMON
STOCKS (Continued) |
|
|
Electric
Utilities (Continued) |
|
|
3,401
|
|
Otter Tail Corp. (b)
|
|
$209,229
|
|
|
|
|
584,901
|
|
|
Electrical
Equipment – 0.5% |
|
|
4,932
|
|
Enovix Corp. (a)
|
|
90,428
|
|
|
Financial
Services – 1.2% |
|
|
23,126
|
|
FTAC Hera Acquisition Corp., Class A (a) (b)
|
|
229,526
|
|
|
Food
& Staples Retailing – 2.2% |
|
|
884
|
|
Costco Wholesale Corp. (b)
|
|
417,487
|
|
|
Health
Care Equipment & Supplies – 1.6% |
|
|
440
|
|
Insulet Corp. (a)
|
|
100,936
|
4,242
|
|
OrthoPediatrics Corp. (a)
|
|
195,726
|
|
|
|
|
296,662
|
|
|
Health
Care Providers & Services – 0.9% |
|
|
3,233
|
|
Premier, Inc., Class A
|
|
109,728
|
106
|
|
UnitedHealth Group, Inc.
|
|
53,534
|
|
|
|
|
163,262
|
|
|
Household
Products – 1.4% |
|
|
5,248
|
|
Central Garden & Pet Co., Class A (a)
|
|
179,272
|
709
|
|
Procter & Gamble (The) Co.
|
|
89,511
|
|
|
|
|
268,783
|
|
|
Independent
Power & Renewable Electricity Producers – 0.6% |
|
|
6,473
|
|
Montauk Renewables, Inc. (a)
|
|
112,889
|
|
|
Interactive
Media & Services – 6.8% |
|
|
4,152
|
|
Alphabet, Inc., Class A (a) (b)
|
|
397,139
|
4,155
|
|
Alphabet, Inc., Class C (a) (b)
|
|
399,503
|
3,196
|
|
Kanzhun Ltd., ADR (a)
|
|
53,948
|
3,239
|
|
Meta Platforms, Inc., Class A (a) (b)
|
|
439,468
|
|
|
|
|
1,290,058
|
|
|
Internet
& Direct Marketing Retail – 4.2% |
|
|
6,948
|
|
Amazon.com, Inc. (a) (b)
|
|
785,124
|
|
|
IT
Services – 0.7% |
|
|
2,329
|
|
GDS Holdings Ltd., ADR (a)
|
|
41,130
|
165
|
|
Mastercard, Inc., Class A
|
|
46,916
|
272
|
|
Visa, Inc., Class A
|
|
48,321
|
|
|
|
|
136,367
|
|
|
Leisure
Products – 0.3% |
|
|
3,861
|
|
Clarus Corp.
|
|
52,008
|
|
|
Life
Sciences Tools & Services – 0.5% |
|
|
194
|
|
Danaher Corp.
|
|
50,108
|
101
|
|
Thermo Fisher Scientific, Inc.
|
|
51,226
|
|
|
|
|
101,334
|
|
|
Machinery –
0.2% |
|
|
18,043
|
|
Sarcos Technology and Robotics Corp. (a)
|
|
40,055
|
|
|
Media –
5.0% |
|
|
9,153
|
|
Comcast Corp., Class A (b)
|
|
268,457
|
See
Notes to Financial Statements
Page
57
First
Trust Nasdaq BuyWrite Income ETF (FTQI)
Portfolio
of Investments (Continued)
September
30, 2022
Shares
|
|
Description
|
|
Value
|
COMMON
STOCKS (Continued) |
|
|
Media (Continued)
|
|
|
6,993
|
|
Fox Corp, Class B (b)
|
|
$199,301
|
2,058
|
|
Liberty Broadband Corp., Class A (a)
|
|
153,527
|
1,976
|
|
Liberty Broadband Corp., Class C (a)
|
|
145,829
|
12,008
|
|
News Corp., Class B
|
|
185,163
|
|
|
|
|
952,277
|
|
|
Pharmaceuticals –
0.3% |
|
|
394
|
|
Zoetis, Inc.
|
|
58,426
|
|
|
Real
Estate Management & Development – 0.3% |
|
|
1,684
|
|
Zillow Group, Inc., Class C (a)
|
|
48,179
|
|
|
Road
& Rail – 0.7% |
|
|
3,782
|
|
Werner Enterprises, Inc.
|
|
142,203
|
|
|
Semiconductors
& Semiconductor Equipment – 10.7% |
|
|
2,914
|
|
Advanced Micro Devices, Inc. (a) (b)
|
|
184,631
|
717
|
|
Broadcom, Inc. (b)
|
|
318,355
|
1,915
|
|
Canadian Solar, Inc. (a)
|
|
71,334
|
9,550
|
|
indie Semiconductor, Inc., Class A (a)
|
|
69,906
|
7,581
|
|
Intel Corp. (b)
|
|
195,362
|
6,933
|
|
Navitas Semiconductor Corp. (a)
|
|
33,625
|
2,291
|
|
Nova, Ltd. (a)
|
|
195,422
|
3,842
|
|
NVIDIA Corp. (b)
|
|
466,381
|
1,908
|
|
QUALCOMM, Inc. (b)
|
|
215,566
|
1,741
|
|
Texas Instruments, Inc. (b)
|
|
269,472
|
|
|
|
|
2,020,054
|
|
|
Software –
16.2% |
|
|
6,467
|
|
ACI Worldwide, Inc. (a)
|
|
135,160
|
864
|
|
Adobe, Inc. (a) (b)
|
|
237,773
|
1,805
|
|
Check Point Software Technologies Ltd. (a) (b)
|
|
202,196
|
818
|
|
Intuit, Inc.
|
|
316,828
|
7,754
|
|
Microsoft Corp. (b)
|
|
1,805,907
|
273
|
|
MicroStrategy, Inc., Class A (a)
|
|
57,947
|
2,579
|
|
Paycor HCM, Inc. (a)
|
|
76,235
|
530
|
|
Paylocity Holding Corp. (a)
|
|
128,037
|
341
|
|
salesforce.com, Inc. (a)
|
|
49,050
|
122
|
|
ServiceNow, Inc. (a)
|
|
46,068
|
|
|
|
|
3,055,201
|
|
|
Specialty
Retail – 0.2% |
|
|
7,544
|
|
Brilliant Earth Group, Inc., Class A (a)
|
|
43,227
|
|
|
Technology
Hardware, Storage & Peripherals – 12.1% |
|
|
16,504
|
|
Apple, Inc. (b)
|
|
2,280,853
|
|
|
Textiles,
Apparel & Luxury Goods – 0.2% |
|
|
502
|
|
NIKE, Inc., Class B
|
|
41,726
|
|
|
Thrifts
& Mortgage Finance – 1.2% |
|
|
10,096
|
|
Enact Holdings, Inc. (b)
|
|
223,828
|
|
|
Trading
Companies & Distributors – 1.0% |
|
|
4,180
|
|
Rush Enterprises, Inc., Class A
|
|
183,335
|
|
|
Water
Utilities – 1.0% |
|
|
2,494
|
|
Middlesex Water Co. (b)
|
|
192,537
|
Page
58
See
Notes to Financial Statements
First
Trust Nasdaq BuyWrite Income ETF (FTQI)
Portfolio
of Investments (Continued)
September
30, 2022
Shares
|
|
Description
|
|
Value
|
COMMON
STOCKS (Continued) |
|
|
Wireless
Telecommunication Services – 2.6% |
|
|
3,466
|
|
Shenandoah Telecommunications Co.
|
|
$58,991
|
2,293
|
|
T-Mobile US, Inc. (a)
|
|
307,652
|
10,692
|
|
Vodafone Group PLC, ADR
|
|
121,141
|
|
|
|
|
487,784
|
|
|
Total Investments – 97.6%
|
|
18,440,644
|
|
|
(Cost
$20,994,169) |
|
|
Number
of Contracts |
|
Description
|
|
Notional
Amount |
|
Exercise
Price |
|
Expiration
Date |
|
Value
|
CALL
OPTIONS WRITTEN – (0.4)% |
(2)
|
|
Nasdaq-100 Index®
|
|
$(2,194,244)
|
|
$11,500.00
|
|
10/21/22
|
|
(30,200)
|
(2)
|
|
Nasdaq-100 Index®
|
|
(2,194,244)
|
|
12,000.00
|
|
10/21/22
|
|
(9,460)
|
(2)
|
|
Nasdaq-100 Index®
|
|
(2,194,244)
|
|
12,500.00
|
|
10/21/22
|
|
(3,780)
|
(2)
|
|
Nasdaq-100 Index®
|
|
(2,194,244)
|
|
13,000.00
|
|
10/21/22
|
|
(612)
|
(2)
|
|
Nasdaq-100 Index®
|
|
(2,194,244)
|
|
13,250.00
|
|
10/21/22
|
|
(360)
|
(2)
|
|
Nasdaq-100 Index®
|
|
(2,194,244)
|
|
12,250.00
|
|
11/18/22
|
|
(22,260)
|
(1)
|
|
Nasdaq-100 Index®
|
|
(1,097,122)
|
|
12,500.00
|
|
11/18/22
|
|
(6,835)
|
|
|
Total Call Options Written
|
|
(73,507)
|
|
|
(Premiums
received $454,504) |
|
|
|
|
|
|
|
|
|
Net Other Assets and Liabilities – 2.8%
|
|
520,425
|
|
Net Assets – 100.0%
|
|
$18,887,562
|
(a)
|
Non-income
producing security. |
(b)
|
All
or a portion of this security is pledged to cover options written. |
ADR
|
American
Depositary Receipt |
Valuation
Inputs
A
summary of the inputs used to value the Fund’s investments as of September 30, 2022 is as follows (see Note 2A - Portfolio Valuation
in the Notes to Financial Statements):
ASSETS
TABLE |
|
Total
Value at 9/30/2022 |
Level
1 Quoted Prices |
Level
2 Significant Observable Inputs |
Level
3 Significant Unobservable Inputs |
Common Stocks*
|
$ 18,440,644
|
$ 18,440,644
|
$ —
|
$ —
|
|
LIABILITIES
TABLE |
|
Total
Value at 9/30/2022 |
Level
1 Quoted Prices |
Level
2 Significant Observable Inputs |
Level
3 Significant Unobservable Inputs |
Call Options Written
|
$ (73,507)
|
$ (50,887)
|
$ (22,620)
|
$ —
|
*
|
See
Portfolio of Investments for industry breakout. |
See
Notes to Financial Statements
Page
59
First
Trust Rising Dividend Achievers ETF (RDVY)
Portfolio
of Investments
September
30, 2022
Shares
|
|
Description
|
|
Value
|
COMMON
STOCKS – 99.8% |
|
|
Banks –
11.7% |
|
|
4,626,764
|
|
Bank
of America Corp. |
|
$139,728,273
|
4,281,665
|
|
Citizens
Financial Group, Inc. |
|
147,118,009
|
1,348,355
|
|
JPMorgan
Chase & Co. |
|
140,903,097
|
8,918,932
|
|
KeyCorp
|
|
142,881,291
|
7,198,559
|
|
Regions
Financial Corp. |
|
144,475,079
|
3,441,546
|
|
US
Bancorp |
|
138,763,135
|
|
|
|
|
853,868,884
|
|
|
Capital
Markets – 5.8% |
|
|
483,930
|
|
Goldman
Sachs Group (The), Inc. |
|
141,815,686
|
4,807,068
|
|
Jefferies
Financial Group, Inc. |
|
141,808,506
|
1,805,605
|
|
Morgan
Stanley |
|
142,660,851
|
|
|
|
|
426,285,043
|
|
|
Chemicals –
4.1% |
|
|
2,573,201
|
|
Corteva,
Inc. |
|
147,058,437
|
6,147,339
|
|
Huntsman
Corp. |
|
150,855,699
|
|
|
|
|
297,914,136
|
|
|
Communications
Equipment – 2.0% |
|
|
3,645,831
|
|
Cisco
Systems, Inc. |
|
145,833,240
|
|
|
Consumer
Finance – 7.7% |
|
|
1,031,230
|
|
American
Express Co. |
|
139,123,239
|
1,552,580
|
|
Capital
One Financial Corp. |
|
143,101,299
|
1,564,368
|
|
Discover
Financial Services |
|
142,232,338
|
4,855,816
|
|
Synchrony
Financial |
|
136,885,453
|
|
|
|
|
561,342,329
|
|
|
Food
Products – 2.1% |
|
|
1,862,277
|
|
Archer-Daniels-Midland
Co. |
|
149,820,185
|
|
|
Health
Care Providers & Services – 6.2% |
|
|
328,698
|
|
Elevance
Health, Inc. |
|
149,307,779
|
315,866
|
|
Humana,
Inc. |
|
153,255,025
|
302,971
|
|
UnitedHealth
Group, Inc. |
|
153,012,474
|
|
|
|
|
455,575,278
|
|
|
Household
Durables – 2.1% |
|
|
4,010,823
|
|
PulteGroup,
Inc. |
|
150,405,862
|
|
|
Insurance –
10.1% |
|
|
2,653,153
|
|
Aflac,
Inc. |
|
149,107,199
|
1,219,793
|
|
Allstate
(The) Corp. |
|
151,900,822
|
1,620,649
|
|
Cincinnati
Financial Corp. |
|
145,161,531
|
3,933,789
|
|
Fidelity
National Financial, Inc. |
|
142,403,162
|
1,717,431
|
|
Prudential
Financial, Inc. |
|
147,321,231
|
|
|
|
|
735,893,945
|
|
|
IT
Services – 5.9% |
|
|
2,537,999
|
|
Cognizant
Technology Solutions Corp., Class A |
|
145,782,663
|
500,975
|
|
Mastercard,
Inc., Class A |
|
142,447,231
|
Shares
|
|
Description
|
|
Value
|
|
|
|
IT
Services (Continued) |
|
|
816,712
|
|
Visa,
Inc., Class A |
|
$145,088,887
|
|
|
|
|
433,318,781
|
|
|
Machinery –
4.1% |
|
|
747,503
|
|
Cummins,
Inc. |
|
152,124,336
|
732,686
|
|
Snap-on,
Inc. |
|
147,526,326
|
|
|
|
|
299,650,662
|
|
|
Media –
4.1% |
|
|
5,782,568
|
|
Interpublic
Group of (The) Cos., Inc. |
|
148,033,741
|
2,356,535
|
|
Omnicom
Group, Inc. |
|
148,673,793
|
|
|
|
|
296,707,534
|
|
|
Metals
& Mining – 2.0% |
|
|
5,382,337
|
|
Freeport-McMoRan,
Inc. |
|
147,099,270
|
|
|
Oil,
Gas & Consumable Fuels – 3.9% |
|
|
1,299,844
|
|
EOG
Resources, Inc. |
|
145,231,570
|
659,115
|
|
Pioneer
Natural Resources Co. |
|
142,718,171
|
|
|
|
|
287,949,741
|
|
|
Paper
& Forest Products – 2.1% |
|
|
3,005,826
|
|
Louisiana-Pacific
Corp. |
|
153,868,233
|
|
|
Pharmaceuticals –
4.2% |
|
|
941,908
|
|
Johnson
& Johnson |
|
153,870,091
|
3,429,651
|
|
Pfizer,
Inc. |
|
150,081,528
|
|
|
|
|
303,951,619
|
|
|
Semiconductors
& Semiconductor Equipment – 13.8% |
|
|
1,776,350
|
|
Applied
Materials, Inc. |
|
145,536,356
|
5,398,942
|
|
Intel
Corp. |
|
139,130,735
|
470,510
|
|
KLA
Corp. |
|
142,390,441
|
385,747
|
|
Lam
Research Corp. |
|
141,183,402
|
1,196,083
|
|
NVIDIA
Corp. |
|
145,192,515
|
1,263,461
|
|
QUALCOMM,
Inc. |
|
142,745,824
|
955,270
|
|
Texas
Instruments, Inc. |
|
147,856,691
|
|
|
|
|
1,004,035,964
|
|
|
Software –
2.1% |
|
|
645,012
|
|
Microsoft
Corp. |
|
150,223,295
|
|
|
Specialty
Retail – 3.8% |
|
|
2,173,535
|
|
Best
Buy Co., Inc. |
|
137,671,707
|
1,175,121
|
|
Williams-Sonoma,
Inc. |
|
138,488,010
|
|
|
|
|
276,159,717
|
Page
60
See
Notes to Financial Statements
First
Trust Rising Dividend Achievers ETF (RDVY)
Portfolio
of Investments (Continued)
September
30, 2022
Shares
|
|
Description
|
|
Value
|
COMMON
STOCKS (Continued) |
|
|
Technology
Hardware, Storage & Peripherals – 2.0% |
|
|
1,047,546
|
|
Apple,
Inc. |
|
$144,770,857
|
|
|
Total
Investments – 99.8% |
|
7,274,674,575
|
|
|
(Cost
$8,974,782,477) |
|
|
|
|
Net
Other Assets and Liabilities – 0.2% |
|
16,100,204
|
|
|
Net
Assets – 100.0% |
|
$7,290,774,779
|
Valuation
Inputs
A
summary of the inputs used to value the Fund’s investments as of September 30, 2022 is as follows (see Note 2A - Portfolio Valuation
in the Notes to Financial Statements):
|
Total
Value at 9/30/2022 |
Level
1 Quoted Prices |
Level
2 Significant Observable Inputs |
Level
3 Significant Unobservable Inputs |
Common
Stocks* |
$ 7,274,674,575
|
$ 7,274,674,575
|
$ —
|
$ —
|
*
|
See
Portfolio of Investments for industry breakout. |
See
Notes to Financial Statements
Page
61
First
Trust Dorsey Wright Focus 5 ETF (FV)
Portfolio
of Investments
September
30, 2022
Shares
|
|
Description
|
|
Value
|
EXCHANGE-TRADED
FUNDS – 99.8% |
|
|
Capital
Markets (a) – 99.8% |
|
|
37,233,368
|
|
First
Trust Energy AlphaDEX® Fund |
|
$581,212,875
|
11,002,143
|
|
First
Trust Industrials/Producer Durables AlphaDEX® Fund |
|
505,548,471
|
8,230,205
|
|
First
Trust Materials AlphaDEX® Fund |
|
426,900,733
|
21,438,168
|
|
First
Trust Nasdaq Food & Beverage ETF |
|
532,524,093
|
22,047,884
|
|
First
Trust Nasdaq Oil & Gas ETF |
|
541,275,552
|
|
|
Total
Investments – 99.8% |
|
2,587,461,724
|
|
|
(Cost
$2,786,423,151) |
|
|
|
|
Net
Other Assets and Liabilities – 0.2% |
|
5,343,666
|
|
|
Net
Assets – 100.0% |
|
$2,592,805,390
|
(a)
|
Represents
investments in affiliated funds. |
Valuation
Inputs
A
summary of the inputs used to value the Fund’s investments as of September 30, 2022 is as follows (see Note 2A - Portfolio Valuation
in the Notes to Financial Statements):
|
Total
Value at 9/30/2022 |
Level
1 Quoted Prices |
Level
2 Significant Observable Inputs |
Level
3 Significant Unobservable Inputs |
Exchange-Traded
Funds* |
$ 2,587,461,724
|
$ 2,587,461,724
|
$ —
|
$ —
|
*
|
See
Portfolio of Investments for industry breakout. |
Page
62
See
Notes to Financial Statements
First
Trust RBA American Industrial Renaissance® ETF (AIRR)
Portfolio
of Investments
September
30, 2022
Shares
|
|
Description
|
|
Value
|
COMMON
STOCKS – 99.9% |
|
|
Banks –
10.2% |
|
|
19,220
|
|
1st
Source Corp. |
|
$889,886
|
48,647
|
|
Associated
Banc-Corp. |
|
976,832
|
27,076
|
|
First
Business Financial Services, Inc. |
|
874,825
|
79,375
|
|
First
Commonwealth Financial Corp. |
|
1,019,175
|
47,134
|
|
First
Financial Bancorp |
|
993,585
|
21,695
|
|
First
Financial Corp. |
|
980,397
|
23,412
|
|
First
Merchants Corp. |
|
905,576
|
122,247
|
|
FNB
Corp. |
|
1,418,065
|
69,762
|
|
Fulton
Financial Corp. |
|
1,102,240
|
24,346
|
|
German
American Bancorp, Inc. |
|
869,396
|
23,905
|
|
Heartland
Financial USA, Inc. |
|
1,036,521
|
12,530
|
|
Lakeland
Financial Corp. |
|
912,309
|
26,307
|
|
Mercantile
Bank Corp. |
|
781,581
|
65,218
|
|
Old
National Bancorp |
|
1,074,140
|
7,018
|
|
Park
National Corp. |
|
873,601
|
37,100
|
|
Peoples
Bancorp, Inc. |
|
1,073,303
|
15,587
|
|
QCR
Holdings, Inc. |
|
794,002
|
10,550
|
|
Wintrust
Financial Corp. |
|
860,352
|
|
|
|
|
17,435,786
|
|
|
Commercial
Services & Supplies – 6.2% |
|
|
123,368
|
|
Aris
Water Solution, Inc., Class A |
|
1,574,176
|
59,722
|
|
Clean
Harbors, Inc. (a) |
|
6,568,225
|
78,939
|
|
Heritage-Crystal
Clean, Inc. (a) |
|
2,334,226
|
|
|
|
|
10,476,627
|
|
|
Construction
& Engineering – 43.2% |
|
|
333,806
|
|
APi
Group Corp. (a) |
|
4,429,606
|
113,394
|
|
Arcosa,
Inc. |
|
6,483,869
|
100,769
|
|
Argan,
Inc. |
|
3,241,739
|
60,187
|
|
Comfort
Systems USA, Inc. |
|
5,858,001
|
193,665
|
|
Construction
Partners, Inc., Class A (a) |
|
5,079,833
|
45,803
|
|
Dycom
Industries, Inc. (a) |
|
4,375,560
|
50,524
|
|
EMCOR
Group, Inc. |
|
5,834,511
|
203,029
|
|
Infrastructure
and Energy Alternatives, Inc. (a) |
|
2,749,013
|
71,624
|
|
MasTec,
Inc. (a) |
|
4,548,124
|
190,656
|
|
MDU
Resources Group, Inc. |
|
5,214,442
|
59,877
|
|
MYR
Group, Inc. (a) |
|
5,073,378
|
42,253
|
|
Northwest
Pipe Co. (a) |
|
1,187,309
|
43,950
|
|
NV5
Global, Inc. (a) |
|
5,441,889
|
240,408
|
|
Primoris
Services Corp. |
|
3,906,630
|
39,961
|
|
Quanta
Services, Inc. |
|
5,090,632
|
165,865
|
|
Sterling
Infrastructure, Inc. (a) |
|
3,561,121
|
234,804
|
|
Tutor
Perini Corp. (a) |
|
1,296,118
|
|
|
|
|
73,371,775
|
|
|
Electrical
Equipment – 10.5% |
|
|
102,089
|
|
Array
Technologies, Inc. (a) |
|
1,692,636
|
Shares
|
|
Description
|
|
Value
|
|
|
|
Electrical
Equipment (Continued) |
|
|
47,902
|
|
Atkore,
Inc. (a) |
|
$3,727,255
|
43,053
|
|
Encore
Wire Corp. |
|
4,974,343
|
27,586
|
|
Hubbell,
Inc. |
|
6,151,678
|
64,245
|
|
Shoals
Technologies Group, Inc., Class A (a) |
|
1,384,480
|
|
|
|
|
17,930,392
|
|
|
Machinery –
29.8% |
|
|
101,095
|
|
Astec
Industries, Inc. |
|
3,153,153
|
114,090
|
|
Blue
Bird Corp. (a) |
|
952,651
|
83,686
|
|
Douglas
Dynamics, Inc. |
|
2,344,882
|
155,087
|
|
Evoqua
Water Technologies Corp. (a) |
|
5,128,727
|
143,974
|
|
Federal
Signal Corp. |
|
5,373,110
|
438,854
|
|
Mueller
Water Products, Inc., Class A |
|
4,507,031
|
63,409
|
|
Oshkosh
Corp. |
|
4,457,019
|
92,844
|
|
Proto
Labs, Inc. (a) |
|
3,382,307
|
25,700
|
|
RBC
Bearings, Inc. (a) |
|
5,340,717
|
249,254
|
|
Shyft
Group (The), Inc. |
|
5,092,259
|
96,939
|
|
SPX
Technologies, Inc. (a) |
|
5,352,971
|
359,680
|
|
Wabash
National Corp. |
|
5,596,621
|
|
|
|
|
50,681,448
|
|
|
Total
Investments – 99.9% |
|
169,896,028
|
|
|
(Cost
$189,361,048) |
|
|
|
|
Net
Other Assets and Liabilities – 0.1% |
|
88,189
|
|
|
Net
Assets – 100.0% |
|
$169,984,217
|
(a)
|
Non-income
producing security. |
Valuation
Inputs
A
summary of the inputs used to value the Fund’s investments as of September 30, 2022 is as follows (see Note 2A - Portfolio Valuation
in the Notes to Financial Statements):
|
Total
Value at 9/30/2022 |
Level
1 Quoted Prices |
Level
2 Significant Observable Inputs |
Level
3 Significant Unobservable Inputs |
Common
Stocks* |
$ 169,896,028
|
$ 169,896,028
|
$ —
|
$ —
|
*
|
See
Portfolio of Investments for industry breakout. |
See
Notes to Financial Statements
Page
63
First
Trust Dorsey Wright Momentum & Dividend ETF (DDIV)
Portfolio
of Investments
September
30, 2022
Shares
|
|
Description
|
|
Value
|
COMMON
STOCKS – 56.7% |
|
|
Banks –
8.8% |
|
|
15,394
|
|
Comerica,
Inc. |
|
$1,094,513
|
4,054
|
|
M&T
Bank Corp. |
|
714,801
|
58,053
|
|
Regions
Financial Corp. |
|
1,165,124
|
33,615
|
|
Synovus
Financial Corp. |
|
1,260,899
|
46,346
|
|
United
Bankshares, Inc. |
|
1,656,870
|
|
|
|
|
5,892,207
|
|
|
Biotechnology –
1.7% |
|
|
8,507
|
|
AbbVie,
Inc. |
|
1,141,725
|
|
|
Chemicals –
3.6% |
|
|
9,121
|
|
Eastman
Chemical Co. |
|
648,047
|
23,610
|
|
LyondellBasell
Industries N.V., Class A |
|
1,777,361
|
|
|
|
|
2,425,408
|
|
|
Communications
Equipment – 2.1% |
|
|
22,038
|
|
Cisco
Systems, Inc. |
|
881,520
|
20,665
|
|
Juniper
Networks, Inc. |
|
539,770
|
|
|
|
|
1,421,290
|
|
|
Containers
& Packaging – 1.2% |
|
|
6,977
|
|
Packaging
Corp. of America |
|
783,447
|
|
|
Electric
Utilities – 4.6% |
|
|
45,613
|
|
FirstEnergy
Corp. |
|
1,687,681
|
35,700
|
|
NRG
Energy, Inc. |
|
1,366,239
|
|
|
|
|
3,053,920
|
|
|
Gas
Utilities – 0.8% |
|
|
8,878
|
|
National
Fuel Gas Co. |
|
546,441
|
|
|
Household
Durables – 2.2% |
|
|
10,725
|
|
Whirlpool
Corp. |
|
1,445,837
|
|
|
Insurance –
9.0% |
|
|
12,276
|
|
Axis
Capital Holdings Ltd. |
|
603,365
|
11,899
|
|
MetLife,
Inc. |
|
723,221
|
21,791
|
|
Principal
Financial Group, Inc. |
|
1,572,221
|
20,306
|
|
Prudential
Financial, Inc. |
|
1,741,849
|
36,358
|
|
Unum
Group |
|
1,410,690
|
|
|
|
|
6,051,346
|
|
|
Oil,
Gas & Consumable Fuels – 15.6% |
|
|
40,292
|
|
DT
Midstream, Inc. |
|
2,090,752
|
19,389
|
|
Exxon
Mobil Corp. |
|
1,692,854
|
148,228
|
|
Kinder
Morgan, Inc. |
|
2,466,514
|
44,581
|
|
ONEOK,
Inc. |
|
2,284,330
|
68,151
|
|
Williams
(The) Cos., Inc. |
|
1,951,163
|
|
|
|
|
10,485,613
|
|
|
Pharmaceuticals –
1.7% |
|
|
25,923
|
|
Organon
& Co. |
|
606,598
|
Shares
|
|
Description
|
|
Value
|
|
|
|
Pharmaceuticals (Continued)
|
|
|
11,716
|
|
Pfizer,
Inc. |
|
$512,692
|
|
|
|
|
1,119,290
|
|
|
Semiconductors
& Semiconductor Equipment – 1.1% |
|
|
1,606
|
|
Broadcom,
Inc. |
|
713,080
|
|
|
Specialty
Retail – 1.0% |
|
|
4,210
|
|
Advance
Auto Parts, Inc. |
|
658,191
|
|
|
Technology
Hardware, Storage & Peripherals – 0.8% |
|
|
22,863
|
|
HP,
Inc. |
|
569,746
|
|
|
Textiles,
Apparel & Luxury Goods – 0.9% |
|
|
21,969
|
|
Tapestry,
Inc. |
|
624,579
|
|
|
Trading
Companies & Distributors – 1.6% |
|
|
4,290
|
|
Watsco,
Inc. |
|
1,104,503
|
|
|
Total
Common Stocks |
|
38,036,623
|
|
|
(Cost
$41,560,086) |
|
|
REAL
ESTATE INVESTMENT TRUSTS – 42.7% |
|
|
Equity
Real Estate Investment Trusts – 30.1% |
|
|
41,438
|
|
Apartment
Income REIT Corp. |
|
1,600,336
|
91,710
|
|
Brixmor
Property Group, Inc. |
|
1,693,884
|
5,168
|
|
Crown
Castle, Inc. |
|
747,034
|
37,147
|
|
CubeSmart
|
|
1,488,109
|
5,310
|
|
Extra
Space Storage, Inc. |
|
917,090
|
40,584
|
|
Iron
Mountain, Inc. |
|
1,784,479
|
75,980
|
|
Kimco
Realty Corp. |
|
1,398,792
|
22,361
|
|
Lamar
Advertising Co., Class A |
|
1,844,559
|
12,215
|
|
Life
Storage, Inc. |
|
1,352,933
|
17,753
|
|
Rayonier,
Inc. |
|
532,057
|
27,931
|
|
Regency
Centers Corp. |
|
1,504,084
|
61,721
|
|
Spirit
Realty Capital, Inc. |
|
2,231,831
|
20,193
|
|
Ventas,
Inc. |
|
811,153
|
59,850
|
|
VICI
Properties, Inc. |
|
1,786,523
|
7,448
|
|
Welltower,
Inc. |
|
479,055
|
|
|
|
|
20,171,919
|
|
|
Mortgage
Real Estate Investment Trusts – 12.6% |
|
|
116,931
|
|
Blackstone
Mortgage Trust, Inc., Class A |
|
2,729,170
|
400,220
|
|
Rithm
Capital Corp. |
|
2,929,610
|
Page
64
See
Notes to Financial Statements
First
Trust Dorsey Wright Momentum & Dividend ETF (DDIV)
Portfolio
of Investments (Continued)
September
30, 2022
Shares
|
|
Description
|
|
Value
|
REAL
ESTATE INVESTMENT TRUSTS (Continued) |
|
|
Mortgage
Real Estate Investment Trusts (Continued) |
|
|
153,673
|
|
Starwood
Property Trust, Inc. |
|
$2,799,922
|
|
|
|
|
8,458,702
|
|
|
Total
Real Estate Investment Trusts |
|
28,630,621
|
|
|
(Cost
$35,762,373) |
|
|
|
|
Total
Investments – 99.4% |
|
66,667,244
|
|
|
(Cost
$77,322,459) |
|
|
|
|
Net
Other Assets and Liabilities – 0.6% |
|
432,947
|
|
|
Net
Assets – 100.0% |
|
$67,100,191
|
Valuation
Inputs
A
summary of the inputs used to value the Fund’s investments as of September 30, 2022 is as follows (see Note 2A - Portfolio Valuation
in the Notes to Financial Statements):
|
Total
Value at 9/30/2022 |
Level
1 Quoted Prices |
Level
2 Significant Observable Inputs |
Level
3 Significant Unobservable Inputs |
Common
Stocks* |
$ 38,036,623
|
$ 38,036,623
|
$ —
|
$ —
|
Real
Estate Investment Trusts* |
28,630,621
|
28,630,621
|
—
|
—
|
Total
Investments |
$ 66,667,244
|
$ 66,667,244
|
$—
|
$—
|
*
|
See
Portfolio of Investments for industry breakout. |
See
Notes to Financial Statements
Page
65
First
Trust Dorsey Wright International Focus 5 ETF (IFV)
Portfolio
of Investments
September
30, 2022
Shares
|
|
Description
|
|
Value
|
EXCHANGE-TRADED
FUNDS – 99.9% |
|
|
Capital
Markets (a) – 99.9% |
|
|
1,148,699
|
|
First
Trust BICK Index Fund |
|
$27,247,140
|
788,140
|
|
First
Trust Chindia ETF |
|
27,506,086
|
1,455,665
|
|
First
Trust Dow Jones Global Select Dividend Index Fund |
|
26,988,029
|
691,061
|
|
First
Trust India NIFTY 50 Equal Weight ETF |
|
29,598,143
|
1,765,963
|
|
First
Trust Latin America AlphaDEX® Fund |
|
27,672,640
|
|
|
Total
Investments – 99.9% |
|
139,012,038
|
|
|
(Cost
$161,210,119) |
|
|
|
|
Net
Other Assets and Liabilities – 0.1% |
|
199,485
|
|
|
Net
Assets – 100.0% |
|
$139,211,523
|
(a)
|
Represents
investments in affiliated funds. |
Valuation
Inputs
A
summary of the inputs used to value the Fund’s investments as of September 30, 2022 is as follows (see Note 2A - Portfolio Valuation
in the Notes to Financial Statements):
|
Total
Value at 9/30/2022 |
Level
1 Quoted Prices |
Level
2 Significant Observable Inputs |
Level
3 Significant Unobservable Inputs |
Exchange-Traded
Funds* |
$ 139,012,038
|
$ 139,012,038
|
$ —
|
$ —
|
*
|
See
Portfolio of Investments for industry breakout. |
Page
66
See
Notes to Financial Statements
First
Trust Dorsey Wright Dynamic Focus 5 ETF (FVC)
Portfolio
of Investments
September
30, 2022
Shares
|
|
Description
|
|
Value
|
EXCHANGE-TRADED
FUNDS – 100.0% |
|
|
Capital
Markets (a) – 100.0% |
|
|
2,000,658
|
|
First
Trust Energy AlphaDEX® Fund |
|
$31,230,271
|
1,539,755
|
|
First
Trust Enhanced Short Maturity ETF |
|
91,338,267
|
591,177
|
|
First
Trust Industrials/Producer Durables AlphaDEX® Fund |
|
27,164,583
|
442,231
|
|
First
Trust Materials AlphaDEX® Fund |
|
22,938,522
|
1,151,936
|
|
First
Trust Nasdaq Food & Beverage ETF |
|
28,614,090
|
1,184,694
|
|
First
Trust Nasdaq Oil & Gas ETF |
|
29,084,238
|
|
|
Total
Investments – 100.0% |
|
230,369,971
|
|
|
(Cost
$239,271,421) |
|
|
|
|
Net
Other Assets and Liabilities – 0.0% |
|
109,700
|
|
|
Net
Assets – 100.0% |
|
$230,479,671
|
(a)
|
Represents
investments in affiliated funds. |
Valuation
Inputs
A
summary of the inputs used to value the Fund’s investments as of September 30, 2022 is as follows (see Note 2A - Portfolio Valuation
in the Notes to Financial Statements):
|
Total
Value at 9/30/2022 |
Level
1 Quoted Prices |
Level
2 Significant Observable Inputs |
Level
3 Significant Unobservable Inputs |
Exchange-Traded
Funds* |
$ 230,369,971
|
$ 230,369,971
|
$ —
|
$ —
|
*
|
See
Portfolio of Investments for industry breakout. |
See
Notes to Financial Statements
Page
67
First
Trust Indxx Innovative Transaction & Process ETF (LEGR)
Portfolio
of Investments
September
30, 2022
Shares
|
|
Description
|
|
Value
|
COMMON
STOCKS – 99.7% |
|
|
Aerospace
& Defense – 2.4% |
|
|
9,461
|
|
Airbus
SE (a) |
|
$815,542
|
5,747
|
|
Boeing
(The) Co. (b) |
|
695,847
|
2,161
|
|
Lockheed
Martin Corp. |
|
834,772
|
|
|
|
|
2,346,161
|
|
|
Automobiles –
3.2% |
|
|
12,487
|
|
Bayerische
Motoren Werke AG (a) |
|
846,338
|
58,627
|
|
Ford
Motor Co. |
|
656,622
|
16,547
|
|
Mercedes-Benz
Group AG (a) |
|
836,733
|
3,135
|
|
Tesla,
Inc. (b) |
|
831,559
|
|
|
|
|
3,171,252
|
|
|
Banks –
24.5% |
|
|
58,778
|
|
Australia
& New Zealand Banking Group Ltd. (a) |
|
860,440
|
92,726
|
|
Axis
Bank Ltd. (a) |
|
829,104
|
196,954
|
|
Banco
Bilbao Vizcaya Argentaria S.A. (a) |
|
883,505
|
371,725
|
|
Banco
Santander S.A. (a) |
|
864,967
|
26,174
|
|
Bank
of America Corp. |
|
790,455
|
2,636,718
|
|
Bank
of China Ltd., Class H (a) |
|
861,140
|
1,618,151
|
|
Bank
of Communications Co., Ltd., Class H (a) |
|
853,051
|
474,803
|
|
Barclays
PLC (a) |
|
755,476
|
19,201
|
|
BNP
Paribas S.A. (a) |
|
811,036
|
270,920
|
|
BOC
Hong Kong Holdings Ltd. (a) |
|
901,003
|
3,323,803
|
|
China
CITIC Bank Corp., Ltd., Class H (a) |
|
1,319,034
|
187,413
|
|
China
Merchants Bank Co., Ltd., Class H (a) |
|
867,321
|
18,175
|
|
Citigroup,
Inc. |
|
757,352
|
38,700
|
|
DBS
Group Holdings Ltd. (a) |
|
895,261
|
181,048
|
|
First
Abu Dhabi Bank PJSC (a) |
|
878,167
|
14,083
|
|
HDFC
Bank, Ltd., ADR |
|
822,729
|
150,220
|
|
HSBC
Holdings PLC (a) |
|
777,818
|
61,676
|
|
ICICI
Bank, Ltd., ADR |
|
1,293,346
|
2,884,790
|
|
Industrial
& Commercial Bank of China Ltd., Class H (a) |
|
1,353,273
|
102,019
|
|
ING
Groep N.V., ADR |
|
867,162
|
7,647
|
|
JPMorgan
Chase & Co. |
|
799,112
|
37,462
|
|
Kotak
Mahindra Bank Ltd. (a) |
|
831,450
|
442,414
|
|
Lloyds
Banking Group PLC, ADR |
|
791,921
|
152,430
|
|
Nordea
Bank Abp (a) |
|
1,302,632
|
1,534,098
|
|
Postal
Savings Bank of China Co., Ltd., Class H (a) (c) (d) |
|
901,689
|
9,478
|
|
Royal
Bank of Canada |
|
853,353
|
447,328
|
|
Sberbank
of Russia PJSC (a) (b) (e) (f) |
|
537
|
63,581
|
|
Westpac
Banking Corp. (a) |
|
841,177
|
|
|
|
|
24,563,511
|
Shares
|
|
Description
|
|
Value
|
|
|
|
Capital
Markets – 6.4% |
|
|
20,698
|
|
Bank
of New York Mellon (The) Corp. |
|
$797,287
|
4,491
|
|
CME
Group, Inc. |
|
795,491
|
5,366
|
|
Deutsche
Boerse AG (a) |
|
879,631
|
2,704
|
|
Goldman
Sachs Group (The), Inc. |
|
792,407
|
9,863
|
|
London
Stock Exchange Group PLC (a) |
|
832,919
|
933
|
|
Partners
Group Holding AG (a) |
|
750,864
|
2,470
|
|
S&P
Global, Inc. |
|
754,215
|
56,773
|
|
UBS
Group AG (a) |
|
823,661
|
|
|
|
|
6,426,475
|
|
|
Communications
Equipment – 2.7% |
|
|
19,990
|
|
Cisco
Systems, Inc. |
|
799,600
|
181,390
|
|
Nokia
Oyj, ADR |
|
774,535
|
194,744
|
|
Telefonaktiebolaget
LM Ericsson, Class B (a) |
|
1,138,367
|
|
|
|
|
2,712,502
|
|
|
Diversified
Telecommunication Services – 6.2% |
|
|
84,589
|
|
AT&T,
Inc. |
|
1,297,595
|
75,689
|
|
Deutsche
Telekom AG (a) |
|
1,288,353
|
223,051
|
|
Emirates
Telecommunications Group Co., PJSC (a) |
|
1,417,714
|
2,807
|
|
Swisscom
AG (a) |
|
1,314,353
|
21,950
|
|
Verizon
Communications, Inc. |
|
833,442
|
|
|
|
|
6,151,457
|
|
|
Electric
Utilities – 1.6% |
|
|
84,697
|
|
Iberdrola
S.A. (a) |
|
789,730
|
9,676
|
|
Verbund
AG (a) |
|
826,112
|
|
|
|
|
1,615,842
|
|
|
Electronic
Equipment, Instruments & Components – 0.8% |
|
|
2,194
|
|
Samsung
SDI Co., Ltd. (a) |
|
825,259
|
|
|
Food
& Staples Retailing – 1.7% |
|
|
18,754
|
|
Kroger
(The) Co. |
|
820,487
|
6,648
|
|
Walmart,
Inc. |
|
862,246
|
|
|
|
|
1,682,733
|
|
|
Household
Durables – 0.8% |
|
|
12,225
|
|
Sony
Group Corp., ADR |
|
783,011
|
|
|
Industrial
Conglomerates – 2.1% |
|
|
7,553
|
|
Honeywell
International, Inc. |
|
1,261,124
|
8,833
|
|
Siemens
AG (a) |
|
863,363
|
|
|
|
|
2,124,487
|
Page
68
See
Notes to Financial Statements
First
Trust Indxx Innovative Transaction & Process ETF (LEGR)
Portfolio
of Investments (Continued)
September
30, 2022
Shares
|
|
Description
|
|
Value
|
COMMON
STOCKS (Continued) |
|
|
Insurance –
4.9% |
|
|
98,861
|
|
AIA
Group Ltd. (a) |
|
$823,107
|
5,436
|
|
Allianz
SE (a) |
|
856,357
|
16,694
|
|
American
International Group, Inc. |
|
792,631
|
37,363
|
|
AXA
S.A. (a) |
|
815,743
|
13,573
|
|
MetLife,
Inc. |
|
824,967
|
157,902
|
|
Ping
An Insurance Group Co. of China Ltd., Class H (a) |
|
787,741
|
|
|
|
|
4,900,546
|
|
|
Interactive
Media & Services – 2.0% |
|
|
10,441
|
|
Baidu,
Inc., ADR (b) |
|
1,226,713
|
23,540
|
|
Tencent
Holdings Ltd. (a) |
|
795,095
|
|
|
|
|
2,021,808
|
|
|
Internet
& Direct Marketing Retail – 3.7% |
|
|
15,847
|
|
Alibaba
Group Holding Ltd., ADR (b) |
|
1,267,602
|
10,928
|
|
Amazon.com,
Inc. (b) |
|
1,234,864
|
23,678
|
|
JD.com,
Inc., ADR |
|
1,191,003
|
|
|
|
|
3,693,469
|
|
|
IT
Services – 12.3% |
|
|
4,926
|
|
Accenture
PLC, Class A |
|
1,267,460
|
8,116
|
|
Capgemini
SE (a) |
|
1,299,376
|
22,044
|
|
Cognizant
Technology Solutions Corp., Class A |
|
1,266,208
|
76,555
|
|
Infosys
Ltd., ADR |
|
1,299,138
|
11,042
|
|
International
Business Machines Corp. |
|
1,311,900
|
4,298
|
|
Mastercard,
Inc., Class A |
|
1,222,093
|
14,750
|
|
PayPal
Holdings, Inc. (b) |
|
1,269,533
|
35,678
|
|
Tata
Consultancy Services Ltd. (a) |
|
1,307,559
|
4,519
|
|
Visa,
Inc., Class A |
|
802,800
|
276,523
|
|
Wipro
Ltd., ADR |
|
1,302,423
|
|
|
|
|
12,348,490
|
|
|
Marine –
1.2% |
|
|
655
|
|
AP
Moller - Maersk A.S., Class B (a) |
|
1,190,285
|
|
|
Metals
& Mining – 1.8% |
|
|
36,458
|
|
BHP
Group Ltd. (a) |
|
906,278
|
16,388
|
|
Rio
Tinto PLC, ADR (g) |
|
902,323
|
|
|
|
|
1,808,601
|
|
|
Multi-Utilities –
1.3% |
|
|
111,676
|
|
Engie
S.A. (a) |
|
1,285,378
|
|
|
Oil,
Gas & Consumable Fuels – 0.9% |
|
|
224,508
|
|
Gazprom
PJSC, ADR (a) (b) (e) (f) |
|
13,812
|
Shares
|
|
Description
|
|
Value
|
|
|
|
Oil,
Gas & Consumable Fuels (Continued) |
|
|
17,388
|
|
Shell
PLC, ADR |
|
$865,227
|
|
|
|
|
879,039
|
|
|
Pharmaceuticals –
1.3% |
|
|
8,951
|
|
Zoetis,
Inc. |
|
1,327,344
|
|
|
Semiconductors
& Semiconductor Equipment – 7.3% |
|
|
17,137
|
|
Advanced
Micro Devices, Inc. (b) |
|
1,085,800
|
57,648
|
|
Infineon
Technologies AG (a) |
|
1,261,571
|
46,132
|
|
Intel
Corp. |
|
1,188,822
|
25,611
|
|
Micron
Technology, Inc. |
|
1,283,111
|
10,140
|
|
NVIDIA
Corp. |
|
1,230,895
|
17,679
|
|
Taiwan
Semiconductor Manufacturing Co., Ltd., ADR |
|
1,212,072
|
|
|
|
|
7,262,271
|
|
|
Software –
7.2% |
|
|
5,487
|
|
Microsoft
Corp. |
|
1,277,922
|
19,002
|
|
Oracle
Corp. |
|
1,160,452
|
9,041
|
|
salesforce.com,
Inc. (b) |
|
1,300,458
|
16,670
|
|
SAP
SE (a) |
|
1,358,524
|
12,127
|
|
VMware,
Inc., Class A |
|
1,291,040
|
5,412
|
|
Workday,
Inc., Class A (b) |
|
823,815
|
|
|
|
|
7,212,211
|
|
|
Specialty
Retail – 0.8% |
|
|
3,024
|
|
Home
Depot (The), Inc. |
|
834,443
|
|
|
Technology
Hardware, Storage & Peripherals – 1.3% |
|
|
35,228
|
|
Samsung
Electronics Co., Ltd. (a) |
|
1,293,546
|
|
|
Wireless
Telecommunication Services – 1.3% |
|
|
133,900
|
|
Softbank
Corp. (a) |
|
1,337,116
|
|
|
Total
Common Stocks |
|
99,797,237
|
|
|
(Cost
$125,410,085) |
|
|
MONEY
MARKET FUNDS – 0.8% |
805,392
|
|
Goldman
Sachs Financial Square Treasury Obligations Fund - Institutional Class - 2.77% (h) (i) |
|
805,392
|
|
|
(Cost
$805,392) |
|
|
|
|
Total
Investments – 100.5% |
|
100,602,629
|
|
|
(Cost
$126,215,477) |
|
|
|
|
Net
Other Assets and Liabilities – (0.5)% |
|
(472,900)
|
|
|
Net
Assets – 100.0% |
|
$100,129,729
|
See
Notes to Financial Statements
Page
69
First
Trust Indxx Innovative Transaction & Process ETF (LEGR)
Portfolio
of Investments (Continued)
September
30, 2022
(a)
|
This
security is fair valued by the Advisor’s Pricing Committee in accordance with procedures approved by the Trust’s Board of
Trustees and in accordance with provisions of the Investment Company Act of 1940 and rules thereunder, as amended. At September 30, 2022,
securities noted as such are valued at $47,168,508 or 47.1% of net assets. Certain of these securities are fair valued using a factor
provided by a third-party pricing service due to the change in value between the foreign markets’ close and the New York Stock Exchange
close exceeding a certain threshold. On days when this threshold is not exceeded, these securities are typically valued at the last sale
price on the exchange on which they are principally traded. |
(b)
|
Non-income
producing security. |
(c)
|
This
security may be resold to qualified foreign investors and foreign institutional buyers under Regulation S of the Securities Act of 1933,
as amended (the “1933 Act”). |
(d)
|
This
security is exempt from registration upon resale under Rule 144A of the 1933 Act and may be resold in transactions exempt from registration,
normally to qualified institutional buyers. This security is not restricted on the foreign exchange where it trades freely without any
additional registration. As such, it does not require the additional disclosure required of restricted securities. |
(e)
|
Pursuant
to procedures adopted by the Trust’s Board of Trustees, this security has been determined to be illiquid by First Trust Advisors
L.P., the Fund’s advisor. |
(f)
|
This
security’s value was determined using significant unobservable inputs (see Note 2A – Portfolio Valuation in the Notes to Financial
Statements). |
(g)
|
All
or a portion of this security is on loan (See Note 2G - Securities Lending in the Notes to Financial Statements). The remaining contractual
maturity of all of the securities lending transactions is overnight and continuous. The aggregate value of such securities is $517,564
and the total value of the collateral held by the Fund is $805,392. |
(h)
|
Rate
shown reflects yield as of September 30, 2022. |
(i)
|
This
security serves as collateral for securities on loan. |
ADR
|
American
Depositary Receipt |
Offsetting
Assets and Liabilities
Offsetting
assets and liabilities requires entities to disclose both gross and net information about instruments and transactions eligible for offset,
and to disclose instruments and transactions subject to master netting or similar agreements (see Note 2F – 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)
|
$517,564
|
Non-cash
Collateral (2) |
(517,564)
|
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
September 30, 2022, the value of the collateral received from each borrower exceeded the value of the related securities loaned. This
amount is disclosed on the Portfolio of Investments. |
Currency
Exposure Diversification |
%
of Total Investments |
United
States Dollar |
52.3%
|
Euro
|
17.8
|
Hong
Kong Dollar |
9.4
|
Indian
Rupee |
2.9
|
Swiss
Franc |
2.9
|
Australian
Dollar |
2.6
|
British
Pound Sterling |
2.4
|
United
Arab Emirates Dirham |
2.3
|
South
Korean Won |
2.1
|
Japanese
Yen |
1.3
|
Danish
Krone |
1.2
|
Swedish
Krona |
1.1
|
Singapore
Dollar |
0.9
|
Canadian
Dollar |
0.8
|
Total
|
100.0%
|
Page
70
See
Notes to Financial Statements
First
Trust Indxx Innovative Transaction & Process ETF (LEGR)
Portfolio
of Investments (Continued)
September
30, 2022
Valuation
Inputs
A
summary of the inputs used to value the Fund’s investments as of September 30, 2022 is as follows (see Note 2A - Portfolio Valuation
in the Notes to Financial Statements):
|
Total
Value at 9/30/2022 |
Level
1 Quoted Prices |
Level
2 Significant Observable Inputs |
Level
3 Significant Unobservable Inputs |
Common
Stocks: |
|
|
|
|
Aerospace & Defense
|
$ 2,346,161
|
$ 1,530,619
|
$ 815,542
|
$ —
|
Automobiles
|
3,171,252
|
1,488,181
|
1,683,071
|
—
|
Banks
|
24,563,511
|
6,975,430
|
17,587,544
|
537
|
Capital Markets
|
6,426,475
|
3,139,400
|
3,287,075
|
—
|
Communications Equipment
|
2,712,502
|
1,574,135
|
1,138,367
|
—
|
Diversified Telecommunication Services
|
6,151,457
|
2,131,037
|
4,020,420
|
—
|
Food & Staples Retailing
|
1,682,733
|
1,682,733
|
—
|
—
|
Household Durables
|
783,011
|
783,011
|
—
|
—
|
Industrial Conglomerates
|
2,124,487
|
1,261,124
|
863,363
|
—
|
Insurance
|
4,900,546
|
1,617,598
|
3,282,948
|
—
|
Interactive Media & Services
|
2,021,808
|
1,226,713
|
795,095
|
—
|
Internet & Direct Marketing Retail
|
3,693,469
|
3,693,469
|
—
|
—
|
IT Services
|
12,348,490
|
9,741,555
|
2,606,935
|
—
|
Metals & Mining
|
1,808,601
|
902,323
|
906,278
|
—
|
Oil, Gas & Consumable Fuels
|
879,039
|
865,227
|
—
|
13,812
|
Pharmaceuticals
|
1,327,344
|
1,327,344
|
—
|
—
|
Semiconductors & Semiconductor Equipment
|
7,262,271
|
6,000,700
|
1,261,571
|
—
|
Software
|
7,212,211
|
5,853,687
|
1,358,524
|
—
|
Specialty Retail
|
834,443
|
834,443
|
—
|
—
|
Other industry categories*
|
7,547,426
|
—
|
7,547,426
|
—
|
Money Market Funds
|
805,392
|
805,392
|
—
|
—
|
Total Investments
|
$ 100,602,629
|
$ 53,434,121
|
$ 47,154,159
|
$ 14,349
|
*
|
See
Portfolio of Investments for industry breakout. |
Level
3 Common Stocks are fair valued by the Advisor’s Pricing Committee and are footnoted in the Portfolio of Investments. The Level
3 Common Stocks values are based on unobservable and non-quantitative inputs.
See
Notes to Financial Statements
Page
71
First
Trust Nasdaq Artificial Intelligence and Robotics ETF (ROBT)
Portfolio
of Investments
September
30, 2022
Shares
|
|
Description
|
|
Value
|
COMMON
STOCKS – 99.1% |
|
|
Aerospace
& Defense – 6.4% |
|
|
43,040
|
|
AeroVironment,
Inc. (a) |
|
$3,587,814
|
17,843
|
|
Elbit
Systems Ltd. (b) |
|
3,378,271
|
1,439
|
|
Northrop
Grumman Corp. |
|
676,791
|
941,165
|
|
QinetiQ
Group PLC (b) |
|
3,434,514
|
|
|
|
|
11,077,390
|
|
|
Air
Freight & Logistics – 0.3% |
|
|
15,495
|
|
GXO
Logistics, Inc. (a) |
|
543,255
|
|
|
Auto
Components – 6.8% |
|
|
7,360
|
|
Aptiv
PLC (a) |
|
575,626
|
11,898
|
|
Continental
AG (b) |
|
527,954
|
12,500
|
|
Denso
Corp. (b) |
|
571,540
|
139,812
|
|
Gentex
Corp. |
|
3,333,118
|
442,629
|
|
Luminar
Technologies, Inc. (a) (c) |
|
3,224,552
|
11,912
|
|
Magna
International, Inc. |
|
564,867
|
198,245
|
|
Valeo
(b) |
|
2,995,453
|
|
|
|
|
11,793,110
|
|
|
Automobiles –
0.7% |
|
|
34,539
|
|
NIO,
Inc., ADR (a) |
|
544,680
|
2,495
|
|
Tesla,
Inc. (a) |
|
661,799
|
|
|
|
|
1,206,479
|
|
|
Communications
Equipment – 1.8% |
|
|
75,196
|
|
Ciena
Corp. (a) |
|
3,040,174
|
|
|
Electrical
Equipment – 3.5% |
|
|
48,199
|
|
ABB
Ltd. (b) |
|
1,244,471
|
8,413
|
|
Emerson
Electric Co. |
|
616,000
|
67,200
|
|
Mitsubishi
Electric Corp. (b) |
|
608,029
|
19,800
|
|
Nidec
Corp. (b) |
|
1,108,328
|
5,622
|
|
Rockwell
Automation, Inc. |
|
1,209,348
|
11,152
|
|
Schneider
Electric SE (b) |
|
1,259,627
|
|
|
|
|
6,045,803
|
|
|
Electronic
Equipment, Instruments & Components – 13.2% |
|
|
31,631
|
|
Cognex
Corp. |
|
1,311,105
|
154,152
|
|
Delta
Electronics, Inc. (b) |
|
1,224,449
|
39,701
|
|
FARO
Technologies, Inc. (a) |
|
1,089,395
|
158,025
|
|
Halma
PLC (b) |
|
3,554,356
|
370,679
|
|
Hexagon
AB, Class B (b) |
|
3,461,821
|
3,500
|
|
Keyence
Corp. (b) |
|
1,156,962
|
33,500
|
|
National
Instruments Corp. |
|
1,264,290
|
25,000
|
|
Omron
Corp. (b) |
|
1,145,432
|
278,700
|
|
Topcon
Corp. (b) |
|
3,108,210
|
60,323
|
|
Trimble,
Inc. (a) |
|
3,273,729
|
75,500
|
|
Yokogawa
Electric Corp. (b) |
|
1,189,439
|
4,416
|
|
Zebra
Technologies Corp., Class A (a) |
|
1,157,036
|
|
|
|
|
22,936,224
|
Shares
|
|
Description
|
|
Value
|
|
|
|
Entertainment –
0.4% |
|
|
50,000
|
|
DeNA
Co., Ltd. (b) |
|
$633,533
|
|
|
Food
& Staples Retailing – 0.2% |
|
|
81,403
|
|
Ocado
Group PLC (a) (b) |
|
422,439
|
|
|
Health
Care Equipment & Supplies – 1.8% |
|
|
6,474
|
|
Intuitive
Surgical, Inc. (a) |
|
1,213,487
|
7,822
|
|
Medtronic
PLC |
|
631,626
|
6,723
|
|
Omnicell,
Inc. (a) |
|
585,103
|
3,351
|
|
Stryker
Corp. |
|
678,711
|
|
|
|
|
3,108,927
|
|
|
Health
Care Technology – 0.3% |
|
|
22,140
|
|
Teladoc
Health, Inc. (a) |
|
561,249
|
|
|
Household
Durables – 0.3% |
|
|
8,600
|
|
Sony
Group Corp. (b) |
|
553,964
|
|
|
Industrial
Conglomerates – 0.4% |
|
|
6,766
|
|
Siemens
AG (b) |
|
661,328
|
|
|
Interactive
Media & Services – 1.6% |
|
|
6,354
|
|
Alphabet,
Inc., Class A (a) |
|
607,760
|
4,777
|
|
Baidu,
Inc., ADR (a) |
|
561,250
|
12,531
|
|
Kakao
Corp. (b) |
|
493,088
|
3,832
|
|
NAVER
Corp. (b) |
|
510,484
|
16,506
|
|
Tencent
Holdings Ltd. (b) |
|
557,512
|
|
|
|
|
2,730,094
|
|
|
Internet
& Direct Marketing Retail – 1.0% |
|
|
7,208
|
|
Alibaba
Group Holding Ltd., ADR (a) |
|
576,568
|
5,424
|
|
Amazon.com,
Inc. (a) |
|
612,912
|
10,831
|
|
JD.com,
Inc., ADR |
|
544,799
|
|
|
|
|
1,734,279
|
|
|
IT
Services – 2.8% |
|
|
7,617
|
|
Akamai
Technologies, Inc. (a) |
|
611,797
|
375,127
|
|
Atos
SE (a) (b) |
|
2,965,514
|
6,809
|
|
Endava
PLC, ADR (a) |
|
549,010
|
5,354
|
|
International
Business Machines Corp. |
|
636,109
|
|
|
|
|
4,762,430
|
|
|
Life
Sciences Tools & Services – 2.8% |
|
|
18,922
|
|
Illumina,
Inc. (a) |
|
3,610,129
|
3,601
|
|
Tecan
Group AG (b) |
|
1,235,302
|
|
|
|
|
4,845,431
|
|
|
Machinery –
11.1% |
|
|
131,488
|
|
3D
Systems Corp. (a) |
|
1,049,274
|
Page
72
See
Notes to Financial Statements
First
Trust Nasdaq Artificial Intelligence and Robotics ETF (ROBT)
Portfolio
of Investments (Continued)
September
30, 2022
Shares
|
|
Description
|
|
Value
|
COMMON
STOCKS (Continued) |
|
|
Machinery (Continued)
|
|
|
28,809
|
|
ANDRITZ
AG (b) |
|
$1,219,191
|
43,479
|
|
ATS
Automation Tooling Systems, Inc. (a) |
|
1,147,605
|
2,868,579
|
|
AutoStore
Holdings Ltd. (a) (b) (d) (e) |
|
3,149,995
|
39,005
|
|
Cargotec
OYJ, Class B (b) |
|
1,178,033
|
22,500
|
|
Daifuku
Co., Ltd. (b) |
|
1,058,334
|
1,883
|
|
Deere
& Co. |
|
628,715
|
60,320
|
|
Duerr
AG (b) |
|
1,254,283
|
8,200
|
|
FANUC
Corp. (b) |
|
1,151,398
|
12,899
|
|
John
Bean Technologies Corp. |
|
1,109,314
|
35,100
|
|
Kawasaki
Heavy Industries, Ltd. (b) |
|
532,400
|
34,687
|
|
Proto
Labs, Inc. (a) |
|
1,263,647
|
43,348
|
|
SFA
Engineering Corp. (b) |
|
1,141,264
|
60,100
|
|
Shibaura
Machine Co., Ltd. (b) |
|
1,196,055
|
52,357
|
|
Valmet
Oyj (b) |
|
1,058,461
|
40,300
|
|
Yaskawa
Electric Corp. (b) |
|
1,159,758
|
|
|
|
|
19,297,727
|
|
|
Pharmaceuticals –
0.4% |
|
|
4,262
|
|
Johnson
& Johnson |
|
696,240
|
|
|
Road
& Rail – 0.4% |
|
|
95,643
|
|
TuSimple
Holdings, Inc., Class A (a) (c) |
|
726,887
|
|
|
Semiconductors
& Semiconductor Equipment – 7.8% |
|
|
8,103
|
|
Advanced
Micro Devices, Inc. (a) |
|
513,406
|
56,209
|
|
Ambarella,
Inc. (a) |
|
3,157,822
|
21,544
|
|
Intel
Corp. |
|
555,189
|
3,870
|
|
KLA
Corp. |
|
1,171,178
|
23,562
|
|
Micron
Technology, Inc. |
|
1,180,456
|
8,825
|
|
NVIDIA
Corp. |
|
1,071,267
|
8,093
|
|
NXP
Semiconductors N.V. |
|
1,193,798
|
10,070
|
|
QUALCOMM,
Inc. |
|
1,137,709
|
139,500
|
|
Renesas
Electronics Corp. (a) (b) |
|
1,169,462
|
15,981
|
|
Taiwan
Semiconductor Manufacturing Co., Ltd., ADR |
|
1,095,657
|
15,737
|
|
Teradyne,
Inc. |
|
1,182,636
|
|
|
|
|
13,428,580
|
|
|
Software –
34.1% |
|
|
15,366
|
|
ANSYS,
Inc. (a) |
|
3,406,642
|
81,353
|
|
Appian
Corp., Class A (a) |
|
3,321,643
|
3,409
|
|
Autodesk,
Inc. (a) |
|
636,801
|
117,108
|
|
AVEVA
Group PLC (b) |
|
4,040,490
|
642,334
|
|
BlackBerry
Ltd. (a) |
|
3,018,970
|
2,056,010
|
|
BrainChip
Holdings Ltd. (a) (b) (c) |
|
1,123,014
|
211,970
|
|
C3.ai,
Inc., Class A (a) |
|
2,649,625
|
21,957
|
|
Cadence
Design Systems, Inc. (a) |
|
3,588,432
|
Shares
|
|
Description
|
|
Value
|
|
|
|
Software (Continued)
|
|
|
98,364
|
|
Dassault
Systemes SE (b) |
|
$3,396,024
|
99,934
|
|
Dynatrace,
Inc. (a) |
|
3,478,703
|
2,630
|
|
Microsoft
Corp. |
|
612,527
|
16,820
|
|
Netcompany
Group A.S. (a) (b) (d) (e) |
|
562,349
|
17,882
|
|
Nice
Ltd., ADR (a) |
|
3,366,108
|
20,557
|
|
Palo
Alto Networks, Inc. (a) |
|
3,367,031
|
104,219
|
|
Pegasystems,
Inc. |
|
3,349,599
|
261,200
|
|
PKSHA
Technology, Inc. (a) (b) (c) |
|
3,397,785
|
182,996
|
|
PROS
Holdings, Inc. (a) |
|
4,520,001
|
5,986
|
|
PTC,
Inc. (a) |
|
626,136
|
8,779
|
|
ServiceNow,
Inc. (a) |
|
3,315,038
|
11,027
|
|
Synopsys,
Inc. (a) |
|
3,368,859
|
231,943
|
|
UiPath,
Inc., Class A (a) |
|
2,924,801
|
181,221
|
|
Veritone,
Inc. (a) (c) |
|
1,020,274
|
|
|
|
|
59,090,852
|
|
|
Technology
Hardware, Storage & Peripherals – 0.7% |
|
|
15,407
|
|
Samsung
Electronics Co., Ltd. (b) |
|
565,734
|
43,400
|
|
Seiko
Epson Corp. (b) |
|
592,603
|
|
|
|
|
1,158,337
|
|
|
Wireless
Telecommunication Services – 0.3% |
|
|
17,100
|
|
SoftBank
Group Corp. (b) |
|
579,538
|
|
|
Total
Common Stocks |
|
171,634,270
|
|
|
(Cost
$242,954,349) |
|
|
REAL
ESTATE INVESTMENT TRUSTS – 0.3% |
|
|
Equity
Real Estate Investment Trusts – 0.3% |
|
|
1,046
|
|
Equinix,
Inc. |
|
595,007
|
|
|
(Cost
$736,105) |
|
|
MONEY
MARKET FUNDS – 3.6% |
6,153,553
|
|
Goldman
Sachs Financial Square Treasury Obligations Fund - Institutional Class - 2.77% (f) (g) |
|
6,153,553
|
|
|
(Cost
$6,153,553) |
|
|
|
|
Total
Investments – 103.0% |
|
178,382,830
|
|
|
(Cost
$249,844,007) |
|
|
|
|
Net
Other Assets and Liabilities – (3.0)% |
|
(5,134,956)
|
|
|
Net
Assets – 100.0% |
|
$173,247,874
|
(a)
|
Non-income
producing security. |
See
Notes to Financial Statements
Page
73
First
Trust Nasdaq Artificial Intelligence and Robotics ETF (ROBT)
Portfolio
of Investments (Continued)
September
30, 2022
(b)
|
This
security is fair valued by the Advisor’s Pricing Committee in accordance with procedures approved by the Trust’s Board of
Trustees and in accordance with provisions of the Investment Company Act of 1940 and rules thereunder, as amended. At September 30, 2022,
securities noted as such are valued at $67,528,191 or 39.0% of net assets. Certain of these securities are fair valued using a factor
provided by a third-party pricing service due to the change in value between the foreign markets’ close and the New York Stock Exchange
close exceeding a certain threshold. On days when this threshold is not exceeded, these securities are typically valued at the last sale
price on the exchange on which they are principally traded. |
(c)
|
All
or a portion of this security is on loan (See Note 2G - Securities Lending in the Notes to Financial Statements). The remaining contractual
maturity of all of the securities lending transactions is overnight and continuous. The aggregate value of such securities is $5,825,907
and the total value of the collateral held by the Fund is $6,153,553. |
(d)
|
This
security may be resold to qualified foreign investors and foreign institutional buyers under Regulation S of the Securities Act of 1933,
as amended (the “1933 Act”). |
(e)
|
This
security is exempt from registration upon resale under Rule 144A of the 1933 Act and may be resold in transactions exempt from registration,
normally to qualified institutional buyers. This security is not restricted on the foreign exchange where it trades freely without any
additional registration. As such, it does not require the additional disclosure required of restricted securities. |
(f)
|
Rate
shown reflects yield as of September 30, 2022. |
(g)
|
This
security serves as collateral for securities on loan. |
ADR
|
American
Depositary Receipt |
Offsetting
Assets and Liabilities
Offsetting
assets and liabilities requires entities to disclose both gross and net information about instruments and transactions eligible for offset,
and to disclose instruments and transactions subject to master netting or similar agreements (see Note 2F – 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)
|
$5,825,907
|
Non-cash
Collateral (2) |
(5,825,907)
|
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
September 30, 2022, the value of the collateral received from each borrower exceeded the value of the related securities loaned. This
amount is disclosed on the Portfolio of Investments. |
Currency
Exposure Diversification |
%
of Total Investments |
United
States Dollar |
61.5%
|
Japanese
Yen |
11.7
|
Euro
|
9.3
|
British
Pound Sterling |
6.4
|
Swedish
Krona |
1.9
|
Israeli
Shekel |
1.9
|
Norwegian
Krone |
1.8
|
South
Korean Won |
1.5
|
Swiss
Franc |
1.4
|
New
Taiwan Dollar |
0.7
|
Canadian
Dollar |
0.7
|
Australian
Dollar |
0.6
|
Danish
Krone |
0.3
|
Hong
Kong Dollar |
0.3
|
Total
|
100.0%
|
Page
74
See
Notes to Financial Statements
First
Trust Nasdaq Artificial Intelligence and Robotics ETF (ROBT)
Portfolio
of Investments (Continued)
September
30, 2022
Valuation
Inputs
A
summary of the inputs used to value the Fund’s investments as of September 30, 2022 is as follows (see Note 2A - Portfolio Valuation
in the Notes to Financial Statements):
|
Total
Value at 9/30/2022 |
Level
1 Quoted Prices |
Level
2 Significant Observable Inputs |
Level
3 Significant Unobservable Inputs |
Common
Stocks: |
|
|
|
|
Aerospace & Defense
|
$ 11,077,390
|
$ 4,264,605
|
$ 6,812,785
|
$ —
|
Auto Components
|
11,793,110
|
7,698,163
|
4,094,947
|
—
|
Electrical Equipment
|
6,045,803
|
1,825,348
|
4,220,455
|
—
|
Electronic Equipment, Instruments & Components
|
22,936,224
|
8,095,555
|
14,840,669
|
—
|
Entertainment
|
633,533
|
—
|
633,533
|
—
|
Food & Staples Retailing
|
422,439
|
—
|
422,439
|
—
|
Household Durables
|
553,964
|
—
|
553,964
|
—
|
Industrial Conglomerates
|
661,328
|
—
|
661,328
|
—
|
Interactive Media & Services
|
2,730,094
|
1,169,010
|
1,561,084
|
—
|
IT Services
|
4,762,430
|
1,796,916
|
2,965,514
|
—
|
Life Sciences Tools & Services
|
4,845,431
|
3,610,129
|
1,235,302
|
—
|
Machinery
|
19,297,727
|
5,198,555
|
14,099,172
|
—
|
Semiconductors & Semiconductor Equipment
|
13,428,580
|
12,259,118
|
1,169,462
|
—
|
Software
|
59,090,852
|
46,571,190
|
12,519,662
|
—
|
Technology Hardware, Storage & Peripherals
|
1,158,337
|
—
|
1,158,337
|
—
|
Wireless Telecommunication Services
|
579,538
|
—
|
579,538
|
—
|
Other industry categories*
|
11,617,490
|
11,617,490
|
—
|
—
|
Real Estate Investment Trusts*
|
595,007
|
595,007
|
—
|
—
|
Money Market Funds
|
6,153,553
|
6,153,553
|
—
|
—
|
Total Investments
|
$ 178,382,830
|
$ 110,854,639
|
$ 67,528,191
|
$—
|
*
|
See
Portfolio of Investments for industry breakout. |
See
Notes to Financial Statements
Page
75
First
Trust International Developed Capital Strength ETF (FICS)
Portfolio
of Investments
September
30, 2022
Shares
|
|
Description
|
|
Value
|
COMMON
STOCKS – 98.2% |
|
|
Aerospace
& Defense – 2.2% |
|
|
48,444
|
|
BAE
Systems PLC (a) |
|
$425,650
|
|
|
Banks –
4.0% |
|
|
4,260
|
|
Bank
of Montreal |
|
373,373
|
6,491
|
|
Toronto-Dominion
Bank (The) |
|
398,101
|
|
|
|
|
771,474
|
|
|
Beverages –
4.3% |
|
|
9,354
|
|
Diageo
PLC (a) |
|
393,743
|
4,989
|
|
Heineken
N.V. (a) |
|
435,695
|
|
|
|
|
829,438
|
|
|
Biotechnology –
2.3% |
|
|
2,463
|
|
CSL
Ltd. (a) |
|
447,939
|
|
|
Building
Products – 1.8% |
|
|
808
|
|
Geberit
AG (a) |
|
346,461
|
|
|
Capital
Markets – 4.2% |
|
|
2,664
|
|
Deutsche
Boerse AG (a) |
|
436,701
|
27,900
|
|
Japan
Exchange Group, Inc. (a) |
|
377,070
|
|
|
|
|
813,771
|
|
|
Chemicals –
1.5% |
|
|
1,445
|
|
Sika
AG (a) |
|
290,433
|
|
|
Commercial
Services & Supplies – 1.9% |
|
|
70,120
|
|
Rentokil
Initial PLC (a) |
|
371,669
|
|
|
Construction
& Engineering – 1.5% |
|
|
23,124
|
|
Skanska
AB, Class B (a) |
|
287,796
|
|
|
Diversified
Financial Services – 1.7% |
|
|
22,190
|
|
Investor
AB, Class B (a) |
|
323,779
|
|
|
Electrical
Equipment – 3.9% |
|
|
15,528
|
|
ABB
Ltd. (a) |
|
400,924
|
5,481
|
|
Legrand
S.A. (a) |
|
354,397
|
|
|
|
|
755,321
|
|
|
Electronic
Equipment, Instruments & Components – 1.9% |
|
|
7,900
|
|
Murata
Manufacturing Co., Ltd. (a) |
|
363,615
|
|
|
Entertainment –
2.1% |
|
|
10,000
|
|
Nintendo
Co., Ltd. (a) |
|
403,343
|
|
|
Food
& Staples Retailing – 2.2% |
|
|
10,816
|
|
Alimentation
Couche-Tard, Inc. |
|
435,427
|
|
|
Food
Products – 6.0% |
|
|
205
|
|
Barry
Callebaut AG (a) |
|
386,428
|
4,386
|
|
Kerry
Group PLC, Class A (a) |
|
390,934
|
Shares
|
|
Description
|
|
Value
|
|
|
|
Food
Products (Continued) |
|
|
3,672
|
|
Nestle
S.A. (a) |
|
$397,154
|
|
|
|
|
1,174,516
|
|
|
Health
Care Providers & Services – 1.8% |
|
|
18,365
|
|
Sonic
Healthcare Ltd. (a) |
|
358,213
|
|
|
Hotels,
Restaurants & Leisure – 2.1% |
|
|
19,683
|
|
Aristocrat
Leisure Ltd. (a) |
|
415,047
|
|
|
Insurance –
6.4% |
|
|
3,344
|
|
Intact
Financial Corp. |
|
473,246
|
9,910
|
|
Sampo
Oyj, Class A (a) |
|
423,074
|
8,856
|
|
Sun
Life Financial, Inc. |
|
352,163
|
|
|
|
|
1,248,483
|
|
|
IT
Services – 4.6% |
|
|
6,022
|
|
CGI,
Inc. (b) |
|
453,345
|
3,300
|
|
Obic
Co., Ltd. (a) |
|
442,509
|
|
|
|
|
895,854
|
|
|
Machinery –
3.8% |
|
|
9,644
|
|
Kone
Oyj, Class B (a) |
|
371,569
|
2,361
|
|
Schindler
Holding AG (a) |
|
366,426
|
|
|
|
|
737,995
|
|
|
Metals
& Mining – 1.8% |
|
|
13,960
|
|
BHP
Group Ltd. (a) |
|
347,019
|
|
|
Oil,
Gas & Consumable Fuels – 1.8% |
|
|
7,354
|
|
Canadian
Natural Resources Ltd. |
|
342,319
|
|
|
Personal
Products – 4.5% |
|
|
1,240
|
|
L’Oreal
S.A. (a) |
|
396,480
|
10,812
|
|
Unilever
PLC (a) |
|
475,078
|
|
|
|
|
871,558
|
|
|
Pharmaceuticals –
9.5% |
|
|
14,324
|
|
Chugai
Pharmaceutical Co., Ltd. (a) |
|
357,858
|
20,481
|
|
GSK
PLC (a) |
|
295,801
|
5,219
|
|
Novartis
AG (a) |
|
397,881
|
4,121
|
|
Novo
Nordisk A.S., Class B (a) |
|
410,525
|
1,164
|
|
Roche
Holding AG (a) |
|
378,920
|
|
|
|
|
1,840,985
|
|
|
Professional
Services – 10.4% |
|
|
17,735
|
|
Bureau
Veritas S.A. (a) |
|
396,866
|
178
|
|
SGS
S.A. (a) |
|
380,874
|
1,341
|
|
Teleperformance
(a) |
|
340,190
|
4,544
|
|
Thomson
Reuters Corp. |
|
466,456
|
4,528
|
|
Wolters
Kluwer N.V. (a) |
|
440,908
|
|
|
|
|
2,025,294
|
|
|
Road
& Rail – 2.1% |
|
|
3,801
|
|
Canadian
National Railway Co. |
|
410,492
|
Page
76
See
Notes to Financial Statements
First
Trust International Developed Capital Strength ETF (FICS)
Portfolio
of Investments (Continued)
September
30, 2022
Shares
|
|
Description
|
|
Value
|
COMMON
STOCKS (Continued) |
|
|
Software –
4.0% |
|
|
280
|
|
Constellation
Software, Inc. |
|
$389,608
|
4,642
|
|
SAP
SE (a) |
|
378,301
|
|
|
|
|
767,909
|
|
|
Trading
Companies & Distributors – 3.9% |
|
|
12,101
|
|
Bunzl
PLC (a) |
|
369,722
|
3,700
|
|
Ferguson
PLC (a) |
|
383,798
|
|
|
|
|
753,520
|
|
|
Total
Common Stocks |
|
19,055,320
|
|
|
(Cost
$24,532,035) |
|
|
REAL
ESTATE INVESTMENT TRUSTS – 1.5% |
|
|
Equity
Real Estate Investment Trusts – 1.5% |
|
|
28,790
|
|
Goodman
Group (a) |
|
290,975
|
|
|
(Cost
$474,227) |
|
|
|
|
Total
Investments – 99.7% |
|
19,346,295
|
|
|
(Cost
$25,006,262) |
|
|
|
|
Net
Other Assets and Liabilities – 0.3% |
|
49,574
|
|
|
Net
Assets – 100.0% |
|
$19,395,869
|
(a)
|
This
security is fair valued by the Advisor’s Pricing Committee in accordance with procedures approved by the Trust’s Board of
Trustees and in accordance with provisions of the Investment Company Act of 1940 and rules thereunder, as amended. At September 30, 2022,
securities noted as such are valued at $15,251,765 or 78.6% of net assets. Certain of these securities are fair valued using a factor
provided by a third-party pricing service due to the change in value between the foreign markets’ close and the New York Stock Exchange
close exceeding a certain threshold. On days when this threshold is not exceeded, these securities are typically valued at the last sale
price on the exchange on which they are principally traded. |
(b)
|
Non-income
producing security. |
Currency
Exposure Diversification |
%
of Total Investments |
Euro
|
22.6%
|
Canadian
Dollar |
21.2
|
Swiss
Franc |
17.3
|
British
Pound Sterling |
14.0
|
Japanese
Yen |
10.0
|
Australian
Dollar |
9.6
|
Swedish
Krona |
3.2
|
Danish
Krone |
2.1
|
Total
|
100.0%
|
Valuation
Inputs
A
summary of the inputs used to value the Fund’s investments as of September 30, 2022 is as follows (see Note 2A - Portfolio Valuation
in the Notes to Financial Statements):
|
Total
Value at 9/30/2022 |
Level
1 Quoted Prices |
Level
2 Significant Observable Inputs |
Level
3 Significant Unobservable Inputs |
Common
Stocks: |
|
|
|
|
Banks
|
$ 771,474
|
$ 771,474
|
$ —
|
$ —
|
Food
& Staples Retailing |
435,427
|
435,427
|
—
|
—
|
Insurance
|
1,248,483
|
825,409
|
423,074
|
—
|
IT
Services |
895,854
|
453,345
|
442,509
|
—
|
Oil,
Gas & Consumable Fuels |
342,319
|
342,319
|
—
|
—
|
Professional
Services |
2,025,294
|
466,456
|
1,558,838
|
—
|
Road
& Rail |
410,492
|
410,492
|
—
|
—
|
Software
|
767,909
|
389,608
|
378,301
|
—
|
Other
industry categories* |
12,158,068
|
—
|
12,158,068
|
—
|
Real
Estate Investment Trusts* |
290,975
|
—
|
290,975
|
—
|
Total
Investments |
$ 19,346,295
|
$ 4,094,530
|
$ 15,251,765
|
$—
|
*
|
See
Portfolio of Investments for industry breakout. |
See
Notes to Financial Statements
Page
77
First
Trust Exchange-Traded Fund VI
Statements
of Assets and Liabilities
September
30, 2022
|
First
Trust NASDAQ Technology Dividend Index Fund (TDIV) |
|
Multi-Asset
Diversified Income Index Fund (MDIV) |
|
First
Trust S&P International Dividend Aristocrats ETF (FID) |
|
First
Trust BuyWrite Income ETF (FTHI) |
ASSETS:
|
|
|
|
|
|
|
|
Investments, at value - Unaffiliated
|
$ 1,427,157,335
|
|
$ 350,713,624
|
|
$ 43,514,523
|
|
$ 88,246,222
|
Investments, at value - Affiliated
|
—
|
|
91,828,017
|
|
—
|
|
—
|
Total investments, at value
|
1,427,157,335
|
|
442,541,641
|
|
43,514,523
|
|
88,246,222
|
Cash
|
1,581,370
|
|
1,542,143
|
|
8,194
|
|
1,341,384
|
Foreign currency
|
—
|
|
—
|
|
9,566
|
|
247
|
Due from authorized participant
|
—
|
|
—
|
|
—
|
|
—
|
Receivables:
|
|
|
|
|
|
|
|
Dividends
|
2,308,990
|
|
2,222,561
|
|
258,424
|
|
71,210
|
Dividend reclaims
|
219,230
|
|
—
|
|
149,807
|
|
927
|
Fund shares sold
|
—
|
|
1,441,353
|
|
—
|
|
918,369
|
Investment securities sold
|
—
|
|
2,145,110
|
|
950,952
|
|
—
|
Securities lending income
|
—
|
|
—
|
|
—
|
|
—
|
Miscellaneous
|
—
|
|
—
|
|
—
|
|
—
|
Total Assets
|
1,431,266,925
|
|
449,892,808
|
|
44,891,466
|
|
90,578,359
|
LIABILITIES:
|
|
|
|
|
|
|
|
Options written, at value
|
—
|
|
—
|
|
—
|
|
79,346
|
Due to custodian
|
—
|
|
—
|
|
—
|
|
—
|
Due to broker
|
—
|
|
—
|
|
—
|
|
2,053
|
Due to authorized participant
|
—
|
|
—
|
|
—
|
|
—
|
Payables:
|
|
|
|
|
|
|
|
Investment advisory fees
|
655,968
|
|
199,759
|
|
23,970
|
|
64,075
|
Deferred foreign capital gains tax
|
—
|
|
—
|
|
—
|
|
—
|
Fund shares redeemed
|
—
|
|
2,162,029
|
|
—
|
|
—
|
Investment securities purchased
|
—
|
|
1,430,076
|
|
955,978
|
|
905,997
|
Collateral for securities on loan
|
—
|
|
—
|
|
—
|
|
—
|
Capital shares redeemed
|
—
|
|
—
|
|
—
|
|
—
|
Other liabilities
|
—
|
|
—
|
|
—
|
|
—
|
Total Liabilities
|
655,968
|
|
3,791,864
|
|
979,948
|
|
1,051,471
|
NET ASSETS
|
$1,430,610,957
|
|
$446,100,944
|
|
$43,911,518
|
|
$89,526,888
|
NET
ASSETS consist of: |
|
|
|
|
|
|
|
Paid-in capital
|
$ 1,839,952,802
|
|
$ 723,079,576
|
|
$ 60,572,188
|
|
$ 117,073,821
|
Par value
|
328,050
|
|
309,500
|
|
32,000
|
|
48,742
|
Accumulated distributable earnings (loss)
|
(409,669,895)
|
|
(277,288,132)
|
|
(16,692,670)
|
|
(27,595,675)
|
NET ASSETS
|
$1,430,610,957
|
|
$446,100,944
|
|
$43,911,518
|
|
$89,526,888
|
NET ASSET VALUE, per share
|
$43.61
|
|
$14.41
|
|
$13.72
|
|
$18.37
|
Number of shares outstanding (unlimited number of shares authorized, par value $0.01 per share)
|
32,805,000
|
|
30,950,002
|
|
3,200,002
|
|
4,874,201
|
Investments, at cost - Unaffiliated
|
$1,601,923,830
|
|
$373,784,707
|
|
$54,504,444
|
|
$97,098,556
|
Investments, at cost - Affiliated
|
$—
|
|
$113,970,108
|
|
$—
|
|
$—
|
Total investments, at cost
|
$1,601,923,830
|
|
$487,754,815
|
|
$54,504,444
|
|
$97,098,556
|
Foreign currency, at cost (proceeds)
|
$—
|
|
$—
|
|
$9,633
|
|
$262
|
Securities on loan, at value
|
$—
|
|
$—
|
|
$—
|
|
$—
|
Premiums received on options written
|
$—
|
|
$—
|
|
$—
|
|
$1,911,411
|
Page
78
See
Notes to Financial Statements
First
Trust Nasdaq BuyWrite Income ETF (FTQI) |
|
First
Trust Rising Dividend Achievers ETF (RDVY) |
|
First
Trust Dorsey Wright Focus 5 ETF (FV) |
|
First
Trust RBA American Industrial Renaissance®
ETF (AIRR) |
|
First
Trust Dorsey Wright Momentum & Dividend ETF (DDIV) |
|
|
|
|
|
|
|
|
|
$ 18,440,644
|
|
$ 7,274,674,575
|
|
$—
|
|
$ 169,896,028
|
|
$ 66,667,244
|
—
|
|
—
|
|
2,587,461,724
|
|
—
|
|
—
|
18,440,644
|
|
7,274,674,575
|
|
2,587,461,724
|
|
169,896,028
|
|
66,667,244
|
527,597
|
|
8,940,841
|
|
6,034,829
|
|
124,676
|
|
80,755
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
—
|
|
25,287,100
|
|
—
|
|
—
|
|
—
|
|
|
|
|
|
|
|
|
|
4,429
|
|
10,494,847
|
|
—
|
|
72,005
|
|
385,827
|
883
|
|
—
|
|
—
|
|
—
|
|
3,077
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
—
|
|
9,732,739
|
|
—
|
|
—
|
|
—
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
18,973,553
|
|
7,329,130,102
|
|
2,593,496,553
|
|
170,092,709
|
|
67,136,903
|
|
|
|
|
|
|
|
|
|
73,507
|
|
—
|
|
—
|
|
—
|
|
—
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
321
|
|
—
|
|
—
|
|
—
|
|
—
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
|
|
|
|
|
|
|
12,163
|
|
3,316,055
|
|
691,163
|
|
108,492
|
|
36,712
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
—
|
|
9,752,168
|
|
—
|
|
—
|
|
—
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
—
|
|
25,287,100
|
|
—
|
|
—
|
|
—
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
85,991
|
|
38,355,323
|
|
691,163
|
|
108,492
|
|
36,712
|
$ 18,887,562
|
|
$ 7,290,774,779
|
|
$ 2,592,805,390
|
|
$ 169,984,217
|
|
$ 67,100,191
|
|
|
|
|
|
|
|
|
|
$ 23,620,593
|
|
$ 9,221,052,680
|
|
$ 3,372,604,160
|
|
$ 225,214,721
|
|
$ 101,039,746
|
10,500
|
|
1,877,500
|
|
631,000
|
|
44,500
|
|
25,000
|
(4,743,531)
|
|
(1,932,155,401)
|
|
(780,429,770)
|
|
(55,275,004)
|
|
(33,964,555)
|
$ 18,887,562
|
|
$ 7,290,774,779
|
|
$ 2,592,805,390
|
|
$ 169,984,217
|
|
$ 67,100,191
|
$17.99
|
|
$38.83
|
|
$41.09
|
|
$38.20
|
|
$26.84
|
1,050,002
|
|
187,750,002
|
|
63,100,002
|
|
4,450,002
|
|
2,500,002
|
$20,994,169
|
|
$8,974,782,477
|
|
$—
|
|
$189,361,048
|
|
$77,322,459
|
$—
|
|
$—
|
|
$2,786,423,151
|
|
$—
|
|
$—
|
$20,994,169
|
|
$8,974,782,477
|
|
$2,786,423,151
|
|
$189,361,048
|
|
$77,322,459
|
$—
|
|
$—
|
|
$—
|
|
$—
|
|
$—
|
$—
|
|
$—
|
|
$—
|
|
$—
|
|
$—
|
$454,504
|
|
$—
|
|
$—
|
|
$—
|
|
$—
|
See
Notes to Financial Statements
Page
79
First
Trust Exchange-Traded Fund VI
Statements
of Assets and Liabilities (Continued)
September
30, 2022
|
First
Trust Dorsey Wright International Focus 5 ETF (IFV) |
|
First
Trust Dorsey Wright Dynamic Focus 5 ETF (FVC) |
|
First
Trust Indxx Innovative Transaction & Process ETF (LEGR) |
|
First
Trust Nasdaq Artificial Intelligence and Robotics ETF (ROBT) |
|
First
Trust International Developed Capital Strength ETF (FICS) |
ASSETS:
|
|
|
|
|
|
|
|
|
|
Investments, at value - Unaffiliated
|
$—
|
|
$—
|
|
$ 100,602,629
|
|
$ 178,382,830
|
|
$ 19,346,295
|
Investments, at value - Affiliated
|
139,012,038
|
|
230,369,971
|
|
—
|
|
—
|
|
—
|
Total investments, at value
|
139,012,038
|
|
230,369,971
|
|
100,602,629
|
|
178,382,830
|
|
19,346,295
|
Cash
|
235,315
|
|
4,297
|
|
60,117
|
|
870,632
|
|
—
|
Foreign currency
|
—
|
|
—
|
|
36,745
|
|
416
|
|
5,388
|
Due from authorized participant
|
—
|
|
—
|
|
—
|
|
—
|
|
28,787
|
Receivables:
|
|
|
|
|
|
|
|
|
|
Dividends
|
—
|
|
169,373
|
|
92,541
|
|
152,271
|
|
30,802
|
Dividend reclaims
|
—
|
|
—
|
|
184,928
|
|
82,380
|
|
49,001
|
Fund shares sold
|
1,597,638
|
|
—
|
|
—
|
|
—
|
|
—
|
Investment securities sold
|
803,566
|
|
—
|
|
—
|
|
—
|
|
138,266
|
Securities lending income
|
—
|
|
—
|
|
323
|
|
13,370
|
|
—
|
Miscellaneous
|
—
|
|
—
|
|
54,209
|
|
—
|
|
—
|
Total Assets
|
141,648,557
|
|
230,543,641
|
|
101,031,492
|
|
179,501,899
|
|
19,598,539
|
LIABILITIES:
|
|
|
|
|
|
|
|
|
|
Options written, at value
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
Due to custodian
|
—
|
|
—
|
|
—
|
|
—
|
|
24,121
|
Due to broker
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
Due to authorized participant
|
—
|
|
—
|
|
—
|
|
—
|
|
138,225
|
Payables:
|
|
|
|
|
|
|
|
|
|
Investment advisory fees
|
36,938
|
|
58,040
|
|
59,045
|
|
100,472
|
|
11,537
|
Deferred foreign capital gains tax
|
—
|
|
—
|
|
37,326
|
|
—
|
|
—
|
Fund shares redeemed
|
804,660
|
|
—
|
|
—
|
|
—
|
|
—
|
Investment securities purchased
|
1,595,436
|
|
—
|
|
—
|
|
—
|
|
28,787
|
Collateral for securities on loan
|
—
|
|
—
|
|
805,392
|
|
6,153,553
|
|
—
|
Capital shares redeemed
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
Other liabilities
|
—
|
|
5,930
|
|
—
|
|
—
|
|
—
|
Total Liabilities
|
2,437,034
|
|
63,970
|
|
901,763
|
|
6,254,025
|
|
202,670
|
NET ASSETS
|
$139,211,523
|
|
$230,479,671
|
|
$100,129,729
|
|
$173,247,874
|
|
$19,395,869
|
NET
ASSETS consist of: |
|
|
|
|
|
|
|
|
|
Paid-in capital
|
$ 306,241,995
|
|
$ 301,099,494
|
|
$ 132,003,549
|
|
$ 272,121,814
|
|
$ 26,252,388
|
Par value
|
86,500
|
|
69,000
|
|
33,000
|
|
51,500
|
|
7,500
|
Accumulated distributable earnings (loss)
|
(167,116,972)
|
|
(70,688,823)
|
|
(31,906,820)
|
|
(98,925,440)
|
|
(6,864,019)
|
NET ASSETS
|
$139,211,523
|
|
$230,479,671
|
|
$100,129,729
|
|
$173,247,874
|
|
$19,395,869
|
NET ASSET VALUE, per share
|
$16.09
|
|
$33.40
|
|
$30.34
|
|
$33.64
|
|
$25.86
|
Number of shares outstanding (unlimited number of shares authorized, par value $0.01 per share)
|
8,650,002
|
|
6,900,002
|
|
3,300,002
|
|
5,150,002
|
|
750,002
|
Investments, at cost - Unaffiliated
|
$—
|
|
$—
|
|
$126,215,477
|
|
$249,844,007
|
|
$25,006,262
|
Investments, at cost - Affiliated
|
$161,210,119
|
|
$239,271,421
|
|
$—
|
|
$—
|
|
$—
|
Total investments, at cost
|
$161,210,119
|
|
$239,271,421
|
|
$126,215,477
|
|
$249,844,007
|
|
$25,006,262
|
Foreign currency, at cost (proceeds)
|
$—
|
|
$—
|
|
$36,570
|
|
$427
|
|
$5,427
|
Securities on loan, at value
|
$—
|
|
$—
|
|
$517,564
|
|
$5,825,907
|
|
$—
|
Premiums received on options written
|
$—
|
|
$—
|
|
$—
|
|
$—
|
|
$—
|
Page
80
See
Notes to Financial Statements
This
page intentionally left blank
First
Trust Exchange-Traded Fund VI
Statements
of Operations
For
the Year Ended September 30, 2022
|
First
Trust NASDAQ Technology Dividend Index Fund (TDIV) |
|
Multi-Asset
Diversified Income Index Fund (MDIV) |
|
First
Trust S&P International Dividend Aristocrats ETF (FID) |
|
First
Trust BuyWrite Income ETF (FTHI) |
INVESTMENT
INCOME: |
|
|
|
|
|
|
|
Dividends - Unaffiliated
|
$ 48,868,615
|
|
$ 17,312,777
|
|
$ 2,766,603
|
|
$ 905,514
|
Dividends - Affiliated
|
—
|
|
6,142,722
|
|
—
|
|
—
|
Interest
|
12,456
|
|
18,060
|
|
—
|
|
(16,095)
|
Securities lending income (net of fees)
|
—
|
|
—
|
|
—
|
|
—
|
Foreign withholding tax
|
(1,219,327)
|
|
—
|
|
(265,262)
|
|
(2,516)
|
Other
|
35
|
|
146
|
|
7
|
|
171
|
Total investment income
|
47,661,779
|
|
23,473,705
|
|
2,501,348
|
|
887,074
|
EXPENSES:
|
|
|
|
|
|
|
|
Investment advisory fees
|
8,648,249
|
|
2,884,898
|
|
300,589
|
|
452,939
|
Total expenses
|
8,648,249
|
|
2,884,898
|
|
300,589
|
|
452,939
|
Fees waived by the investment advisor
|
—
|
|
(555,573)
|
|
—
|
|
—
|
Net expenses
|
8,648,249
|
|
2,329,325
|
|
300,589
|
|
452,939
|
NET INVESTMENT INCOME (LOSS)
|
39,013,530
|
|
21,144,380
|
|
2,200,759
|
|
434,135
|
NET
REALIZED AND UNREALIZED GAIN (LOSS): |
|
|
|
|
|
|
|
Net
realized gain (loss) on: |
|
|
|
|
|
|
|
Investments - Unaffiliated
|
(87,205,732)
|
|
1,847,585
|
|
(601,968)
|
|
(697,701)
|
Investments - Affiliated
|
—
|
|
(396,722)
|
|
—
|
|
—
|
In-kind redemptions - Unaffiliated
|
164,552,666
|
|
8,223,204
|
|
237,748
|
|
485,068
|
In-kind redemptions - Affiliated
|
—
|
|
(296,207)
|
|
—
|
|
—
|
Purchased options contracts
|
—
|
|
—
|
|
—
|
|
—
|
Written options contracts
|
—
|
|
—
|
|
—
|
|
1,445,968
|
Foreign currency transactions
|
—
|
|
—
|
|
(43,377)
|
|
—
|
Foreign capital gains tax
|
—
|
|
—
|
|
—
|
|
—
|
Net realized gain (loss)
|
77,346,934
|
|
9,377,860
|
|
(407,597)
|
|
1,233,335
|
Net increase from payment by the advisor
|
—
|
|
—
|
|
—
|
|
—
|
Net
change in unrealized appreciation (depreciation) on: |
|
|
|
|
|
|
|
Investments - Unaffiliated
|
(504,758,535)
|
|
(42,266,288)
|
|
(12,295,974)
|
|
(12,514,919)
|
Investments - Affiliated
|
—
|
|
(20,775,057)
|
|
—
|
|
—
|
Purchased options contracts
|
—
|
|
—
|
|
—
|
|
—
|
Written options contracts
|
—
|
|
—
|
|
—
|
|
1,399,627
|
Foreign currency translation
|
—
|
|
—
|
|
(20,053)
|
|
(15)
|
Deferred foreign capital gains tax
|
—
|
|
—
|
|
—
|
|
—
|
Net change in unrealized appreciation (depreciation)
|
(504,758,535)
|
|
(63,041,345)
|
|
(12,316,027)
|
|
(11,115,307)
|
NET REALIZED AND UNREALIZED GAIN (LOSS)
|
(427,411,601)
|
|
(53,663,485)
|
|
(12,723,624)
|
|
(9,881,972)
|
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS
|
$(388,398,071)
|
|
$(32,519,105)
|
|
$(10,522,865)
|
|
$(9,447,837)
|
Page
82
See
Notes to Financial Statements
|
First
Trust Nasdaq BuyWrite Income ETF (FTQI) |
|
First
Trust Rising Dividend Achievers ETF (RDVY) |
|
First
Trust Dorsey Wright Focus 5 ETF (FV) |
|
First
Trust RBA American Industrial Renaissance®
ETF (AIRR) |
|
First
Trust Dorsey Wright Momentum & Dividend ETF (DDIV) |
|
First
Trust Dorsey Wright International Focus 5 ETF (IFV) |
|
First
Trust Dorsey Wright Dynamic Focus 5 ETF (FVC) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$136,921
|
|
$195,126,307
|
|
$—
|
|
$1,729,346
|
|
$2,378,164
|
|
$—
|
|
$—
|
|
—
|
|
—
|
|
36,928,638
|
|
—
|
|
—
|
|
6,445,800
|
|
2,730,563
|
|
(1,879)
|
|
61,189
|
|
14,538
|
|
638
|
|
628
|
|
9,266
|
|
1,427
|
|
—
|
|
—
|
|
—
|
|
689
|
|
—
|
|
—
|
|
—
|
|
(360)
|
|
(223,787)
|
|
—
|
|
—
|
|
(371)
|
|
—
|
|
—
|
|
213
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
134,895
|
|
194,963,709
|
|
36,943,176
|
|
1,730,673
|
|
2,378,421
|
|
6,455,066
|
|
2,731,990
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
102,409
|
|
41,526,958
|
|
8,462,120
|
|
1,505,524
|
|
396,179
|
|
600,666
|
|
675,196
|
|
102,409
|
|
41,526,958
|
|
8,462,120
|
|
1,505,524
|
|
396,179
|
|
600,666
|
|
675,196
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
102,409
|
|
41,526,958
|
|
8,462,120
|
|
1,505,524
|
|
396,179
|
|
600,666
|
|
675,196
|
|
32,486
|
|
153,436,751
|
|
28,481,056
|
|
225,149
|
|
1,982,242
|
|
5,854,400
|
|
2,056,794
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(256,890)
|
|
(181,261,781)
|
|
—
|
|
(8,541,854)
|
|
(5,019,706)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(58,995,234)
|
|
—
|
|
—
|
|
(13,718,074)
|
|
929,491
|
|
241,835
|
|
444,981,704
|
|
—
|
|
19,634,159
|
|
5,220,009
|
|
—
|
|
—
|
|
—
|
|
—
|
|
876,501,560
|
|
—
|
|
—
|
|
4,597,755
|
|
50,878,417
|
|
(31,942)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
575,553
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
528,556
|
|
263,719,923
|
|
817,506,326
|
|
11,092,305
|
|
200,303
|
|
(9,120,319)
|
|
51,807,908
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2,985,751)
|
|
(2,185,334,312)
|
|
—
|
|
(26,897,678)
|
|
(12,779,877)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(1,170,352,406)
|
|
—
|
|
—
|
|
(51,259,930)
|
|
(67,491,422)
|
|
21,726
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
293,184
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(2,670,841)
|
|
(2,185,334,312)
|
|
(1,170,352,406)
|
|
(26,897,678)
|
|
(12,779,877)
|
|
(51,259,930)
|
|
(67,491,422)
|
|
(2,142,285)
|
|
(1,921,614,389)
|
|
(352,846,080)
|
|
(15,805,373)
|
|
(12,579,574)
|
|
(60,380,249)
|
|
(15,683,514)
|
|
$(2,109,799)
|
|
$(1,768,177,638)
|
|
$(324,365,024)
|
|
$(15,580,224)
|
|
$(10,597,332)
|
|
$(54,525,849)
|
|
$(13,626,720)
|
See
Notes to Financial Statements
Page
83
First
Trust Exchange-Traded Fund VI
Statements
of Operations (Continued)
For
the Year Ended September 30, 2022
|
First
Trust Indxx Innovative Transaction & Process ETF (LEGR) |
|
First
Trust Nasdaq Artificial Intelligence and Robotics ETF (ROBT) |
|
First
Trust International Developed Capital Strength ETF (FICS) |
INVESTMENT
INCOME: |
|
|
|
|
|
Dividends - Unaffiliated
|
$ 5,230,203
|
|
$ 1,747,398
|
|
$ 745,989
|
Dividends - Affiliated
|
—
|
|
—
|
|
—
|
Interest
|
1,836
|
|
2,405
|
|
—
|
Securities lending income (net of fees)
|
29,683
|
|
367,496
|
|
—
|
Foreign withholding tax
|
(393,285)
|
|
(157,060)
|
|
(74,200)
|
Other
|
23
|
|
47
|
|
4
|
Total investment income
|
4,868,460
|
|
1,960,286
|
|
671,793
|
EXPENSES:
|
|
|
|
|
|
Investment advisory fees
|
882,398
|
|
1,549,330
|
|
167,713
|
Total expenses
|
882,398
|
|
1,549,330
|
|
167,713
|
Fees waived by the investment advisor
|
—
|
|
—
|
|
—
|
Net expenses
|
882,398
|
|
1,549,330
|
|
167,713
|
NET INVESTMENT INCOME (LOSS)
|
3,986,062
|
|
410,956
|
|
504,080
|
NET
REALIZED AND UNREALIZED GAIN (LOSS): |
|
|
|
|
|
Net
realized gain (loss) on: |
|
|
|
|
|
Investments - Unaffiliated
|
(3,897,325)
|
|
(19,712,624)
|
|
(1,262,455)
|
Investments - Affiliated
|
—
|
|
—
|
|
—
|
In-kind redemptions - Unaffiliated
|
2,428,899
|
|
17,419,636
|
|
(723,956)
|
In-kind redemptions - Affiliated
|
—
|
|
—
|
|
—
|
Purchased options contracts
|
—
|
|
—
|
|
—
|
Written options contracts
|
—
|
|
—
|
|
—
|
Foreign currency transactions
|
(27,439)
|
|
261,082
|
|
6,334
|
Foreign capital gains tax
|
(28,832)
|
|
—
|
|
—
|
Net realized gain (loss)
|
(1,524,697)
|
|
(2,031,906)
|
|
(1,980,077)
|
Net increase from payment by the advisor
|
—
|
|
1,987
|
|
—
|
Net
change in unrealized appreciation (depreciation) on: |
|
|
|
|
|
Investments - Unaffiliated
|
(40,992,272)
|
|
(103,811,853)
|
|
(5,646,939)
|
Investments - Affiliated
|
—
|
|
—
|
|
—
|
Purchased options contracts
|
—
|
|
—
|
|
—
|
Written options contracts
|
—
|
|
—
|
|
—
|
Foreign currency translation
|
(21,740)
|
|
(13,102)
|
|
(4,897)
|
Deferred foreign capital gains tax
|
105,536
|
|
—
|
|
—
|
Net change in unrealized appreciation (depreciation)
|
(40,908,476)
|
|
(103,824,955)
|
|
(5,651,836)
|
NET REALIZED AND UNREALIZED GAIN (LOSS)
|
(42,433,173)
|
|
(105,854,874)
|
|
(7,631,913)
|
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS
|
$(38,447,111)
|
|
$(105,443,918)
|
|
$(7,127,833)
|
Page
84
See
Notes to Financial Statements
This
page intentionally left blank
First
Trust Exchange-Traded Fund VI
Statements
of Changes in Net Assets
|
First
Trust NASDAQ Technology Dividend Index Fund (TDIV) |
|
Multi-Asset
Diversified Income Index Fund (MDIV) |
|
Year
Ended 9/30/2022 |
|
Year
Ended 9/30/2021 |
|
Year
Ended 9/30/2022 |
|
Year
Ended 9/30/2021 |
OPERATIONS:
|
|
|
|
|
|
|
|
Net investment income (loss)
|
$ 39,013,530
|
|
$ 30,828,737
|
|
$ 21,144,380
|
|
$ 14,299,976
|
Net realized gain (loss)
|
77,346,934
|
|
266,500,553
|
|
9,377,860
|
|
36,831,045
|
Net increase from payment by the advisor
|
—
|
|
—
|
|
—
|
|
—
|
Net change in unrealized appreciation (depreciation)
|
(504,758,535)
|
|
71,094,267
|
|
(63,041,345)
|
|
60,843,085
|
Net increase (decrease) in net assets resulting from operations
|
(388,398,071)
|
|
368,423,557
|
|
(32,519,105)
|
|
111,974,106
|
DISTRIBUTIONS
TO SHAREHOLDERS FROM: |
|
|
|
|
|
|
|
Investment operations
|
(37,869,712)
|
|
(29,861,800)
|
|
(28,972,326)
|
|
(18,794,700)
|
Return of capital
|
—
|
|
—
|
|
(634,126)
|
|
(6,052,472)
|
Total distributions to shareholders
|
(37,869,712)
|
|
(29,861,800)
|
|
(29,606,452)
|
|
(24,847,172)
|
SHAREHOLDER
TRANSACTIONS: |
|
|
|
|
|
|
|
Proceeds from shares sold
|
585,823,081
|
|
784,387,981
|
|
136,630,172
|
|
9,259,907
|
Cost of shares redeemed
|
(342,711,470)
|
|
(754,460,022)
|
|
(98,607,101)
|
|
(66,909,068)
|
Net increase (decrease) in net assets resulting from shareholder transactions
|
243,111,611
|
|
29,927,959
|
|
38,023,071
|
|
(57,649,161)
|
Total increase (decrease) in net assets
|
(183,156,172)
|
|
368,489,716
|
|
(24,102,486)
|
|
29,477,773
|
NET
ASSETS: |
|
|
|
|
|
|
|
Beginning of period
|
1,613,767,129
|
|
1,245,277,413
|
|
470,203,430
|
|
440,725,657
|
End of period
|
$1,430,610,957
|
|
$1,613,767,129
|
|
$446,100,944
|
|
$470,203,430
|
CHANGES
IN SHARES OUTSTANDING: |
|
|
|
|
|
|
|
Shares outstanding, beginning of period
|
28,605,000
|
|
28,405,000
|
|
28,750,002
|
|
32,600,002
|
Shares sold
|
10,150,000
|
|
14,150,000
|
|
8,450,000
|
|
550,000
|
Shares redeemed
|
(5,950,000)
|
|
(13,950,000)
|
|
(6,250,000)
|
|
(4,400,000)
|
Shares outstanding, end of period
|
32,805,000
|
|
28,605,000
|
|
30,950,002
|
|
28,750,002
|
Page
86
See
Notes to Financial Statements
First
Trust S&P International Dividend Aristocrats ETF (FID) |
|
First
Trust BuyWrite Income ETF (FTHI) |
|
First
Trust Nasdaq BuyWrite Income ETF (FTQI) |
Year
Ended 9/30/2022 |
|
Year
Ended 9/30/2021 |
|
Year
Ended 9/30/2022 |
|
Year
Ended 9/30/2021 |
|
Year
Ended 9/30/2022 |
|
Year
Ended 9/30/2021 |
|
|
|
|
|
|
|
|
|
|
|
$ 2,200,759
|
|
$ 1,333,244
|
|
$ 434,135
|
|
$ 709,991
|
|
$ 32,486
|
|
$ 82,731
|
(407,597)
|
|
140,357
|
|
1,233,335
|
|
8,266,105
|
|
528,556
|
|
367,409
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
(12,316,027)
|
|
4,299,027
|
|
(11,115,307)
|
|
250,450
|
|
(2,670,841)
|
|
267,151
|
(10,522,865)
|
|
5,772,628
|
|
(9,447,837)
|
|
9,226,546
|
|
(2,109,799)
|
|
717,291
|
|
|
|
|
|
|
|
|
|
|
|
(2,134,072)
|
|
(1,317,871)
|
|
(4,161,738)
|
|
(2,535,233)
|
|
(627,504)
|
|
(228,251)
|
—
|
|
—
|
|
—
|
|
—
|
|
(260,249)
|
|
—
|
(2,134,072)
|
|
(1,317,871)
|
|
(4,161,738)
|
|
(2,535,233)
|
|
(887,753)
|
|
(228,251)
|
|
|
|
|
|
|
|
|
|
|
|
17,543,449
|
|
19,294,526
|
|
58,793,688
|
|
18,094,504
|
|
15,486,123
|
|
7,205,917
|
(3,114,320)
|
|
—
|
|
(2,232,301)
|
|
(37,943,500)
|
|
(3,127,943)
|
|
(2,974,588)
|
14,429,129
|
|
19,294,526
|
|
56,561,387
|
|
(19,848,996)
|
|
12,358,180
|
|
4,231,329
|
1,772,192
|
|
23,749,283
|
|
42,951,812
|
|
(13,157,683)
|
|
9,360,628
|
|
4,720,369
|
|
|
|
|
|
|
|
|
|
|
|
42,139,326
|
|
18,390,043
|
|
46,575,076
|
|
59,732,759
|
|
9,526,934
|
|
4,806,565
|
$43,911,518
|
|
$42,139,326
|
|
$89,526,888
|
|
$46,575,076
|
|
$18,887,562
|
|
$9,526,934
|
|
|
|
|
|
|
|
|
|
|
|
2,400,002
|
|
1,300,002
|
|
2,174,201
|
|
3,124,201
|
|
450,002
|
|
250,002
|
1,000,000
|
|
1,100,000
|
|
2,800,000
|
|
900,000
|
|
750,000
|
|
350,000
|
(200,000)
|
|
—
|
|
(100,000)
|
|
(1,850,000)
|
|
(150,000)
|
|
(150,000)
|
3,200,002
|
|
2,400,002
|
|
4,874,201
|
|
2,174,201
|
|
1,050,002
|
|
450,002
|
See
Notes to Financial Statements
Page
87
First
Trust Exchange-Traded Fund VI
Statements
of Changes in Net Assets (Continued)
|
First
Trust Rising Dividend Achievers ETF (RDVY) |
|
First
Trust Dorsey Wright Focus 5 ETF (FV) |
|
Year
Ended 9/30/2022 |
|
Year
Ended 9/30/2021 |
|
Year
Ended 9/30/2022 |
|
Year
Ended 9/30/2021 |
OPERATIONS:
|
|
|
|
|
|
|
|
Net investment income (loss)
|
$ 153,436,751
|
|
$ 47,447,030
|
|
$ 28,481,056
|
|
$ 899,652
|
Net realized gain (loss)
|
263,719,923
|
|
284,110,410
|
|
817,506,326
|
|
406,561,570
|
Net increase from payment by the advisor
|
—
|
|
—
|
|
—
|
|
—
|
Net change in unrealized appreciation (depreciation)
|
(2,185,334,312)
|
|
428,357,284
|
|
(1,170,352,406)
|
|
276,499,831
|
Net increase (decrease) in net assets resulting from operations
|
(1,768,177,638)
|
|
759,914,724
|
|
(324,365,024)
|
|
683,961,053
|
DISTRIBUTIONS
TO SHAREHOLDERS FROM: |
|
|
|
|
|
|
|
Investment operations
|
(140,979,372)
|
|
(44,959,526)
|
|
(27,189,651)
|
|
(1,159,345)
|
Return of capital
|
—
|
|
—
|
|
—
|
|
—
|
Total distributions to shareholders
|
(140,979,372)
|
|
(44,959,526)
|
|
(27,189,651)
|
|
(1,159,345)
|
SHAREHOLDER
TRANSACTIONS: |
|
|
|
|
|
|
|
Proceeds from shares sold
|
5,962,228,272
|
|
5,044,833,796
|
|
2,838,226,345
|
|
650,797,839
|
Cost of shares redeemed
|
(2,501,951,722)
|
|
(1,312,230,974)
|
|
(2,588,053,448)
|
|
(686,904,053)
|
Net increase (decrease) in net assets resulting from shareholder transactions
|
3,460,276,550
|
|
3,732,602,822
|
|
250,172,897
|
|
(36,106,214)
|
Total increase (decrease) in net assets
|
1,551,119,540
|
|
4,447,558,020
|
|
(101,381,778)
|
|
646,695,494
|
NET
ASSETS: |
|
|
|
|
|
|
|
Beginning of period
|
5,739,655,239
|
|
1,292,097,219
|
|
2,694,187,168
|
|
2,047,491,674
|
End of period
|
$7,290,774,779
|
|
$5,739,655,239
|
|
$2,592,805,390
|
|
$2,694,187,168
|
CHANGES
IN SHARES OUTSTANDING: |
|
|
|
|
|
|
|
Shares outstanding, beginning of period
|
120,900,002
|
|
39,550,002
|
|
58,850,002
|
|
60,050,002
|
Shares sold
|
120,450,000
|
|
111,000,000
|
|
59,550,000
|
|
14,950,000
|
Shares redeemed
|
(53,600,000)
|
|
(29,650,000)
|
|
(55,300,000)
|
|
(16,150,000)
|
Shares outstanding, end of period
|
187,750,002
|
|
120,900,002
|
|
63,100,002
|
|
58,850,002
|
Page
88
See
Notes to Financial Statements
First
Trust RBA American Industrial Renaissance® ETF (AIRR)
|
|
First
Trust Dorsey Wright Momentum & Dividend ETF (DDIV) |
|
First
Trust Dorsey Wright International Focus 5 ETF (IFV) |
Year
Ended 9/30/2022 |
|
Year
Ended 9/30/2021 |
|
Year
Ended 9/30/2022 |
|
Year
Ended 9/30/2021 |
|
Year
Ended 9/30/2022 |
|
Year
Ended 9/30/2021 |
|
|
|
|
|
|
|
|
|
|
|
$ 225,149
|
|
$ 102,277
|
|
$ 1,982,242
|
|
$ 926,527
|
|
$ 5,854,400
|
|
$ 2,372,763
|
11,092,305
|
|
22,206,086
|
|
200,303
|
|
12,028,581
|
|
(9,120,319)
|
|
39,219,683
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
(26,897,678)
|
|
9,760,455
|
|
(12,779,877)
|
|
(91,117)
|
|
(51,259,930)
|
|
6,817,205
|
(15,580,224)
|
|
32,068,818
|
|
(10,597,332)
|
|
12,863,991
|
|
(54,525,849)
|
|
48,409,651
|
|
|
|
|
|
|
|
|
|
|
|
(131,850)
|
|
(68,330)
|
|
(1,904,422)
|
|
(903,831)
|
|
(5,794,666)
|
|
(2,584,930)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
(131,850)
|
|
(68,330)
|
|
(1,904,422)
|
|
(903,831)
|
|
(5,794,666)
|
|
(2,584,930)
|
|
|
|
|
|
|
|
|
|
|
|
67,434,447
|
|
204,119,512
|
|
79,279,112
|
|
58,983,424
|
|
2,531,736
|
|
29,789,512
|
(102,287,438)
|
|
(63,084,042)
|
|
(38,540,592)
|
|
(61,564,516)
|
|
(67,969,588)
|
|
(29,096,455)
|
(34,852,991)
|
|
141,035,470
|
|
40,738,520
|
|
(2,581,092)
|
|
(65,437,852)
|
|
693,057
|
(50,565,065)
|
|
173,035,958
|
|
28,236,766
|
|
9,379,068
|
|
(125,758,367)
|
|
46,517,778
|
|
|
|
|
|
|
|
|
|
|
|
220,549,282
|
|
47,513,324
|
|
38,863,425
|
|
29,484,357
|
|
264,969,890
|
|
218,452,112
|
$169,984,217
|
|
$220,549,282
|
|
$67,100,191
|
|
$38,863,425
|
|
$139,211,523
|
|
$264,969,890
|
|
|
|
|
|
|
|
|
|
|
|
5,400,002
|
|
1,850,002
|
|
1,250,002
|
|
1,400,002
|
|
11,650,002
|
|
11,600,002
|
1,550,000
|
|
5,150,000
|
|
2,400,000
|
|
2,050,000
|
|
150,000
|
|
1,350,000
|
(2,500,000)
|
|
(1,600,000)
|
|
(1,150,000)
|
|
(2,200,000)
|
|
(3,150,000)
|
|
(1,300,000)
|
4,450,002
|
|
5,400,002
|
|
2,500,002
|
|
1,250,002
|
|
8,650,002
|
|
11,650,002
|
See
Notes to Financial Statements
Page
89
First
Trust Exchange-Traded Fund VI
Statements
of Changes in Net Assets (Continued)
|
First
Trust Dorsey Wright Dynamic Focus 5 ETF (FVC) |
|
First
Trust Indxx Innovative Transaction & Process ETF (LEGR) |
|
Year
Ended 9/30/2022 |
|
Year
Ended 9/30/2021 |
|
Year
Ended 9/30/2022 |
|
Year
Ended 9/30/2021 |
OPERATIONS:
|
|
|
|
|
|
|
|
Net investment income (loss)
|
$ 2,056,794
|
|
$ 44,628
|
|
$ 3,986,062
|
|
$ 1,528,329
|
Net realized gain (loss)
|
51,807,908
|
|
33,942,853
|
|
(1,524,697)
|
|
2,447,567
|
Net increase from payment by the advisor
|
—
|
|
—
|
|
—
|
|
—
|
Net change in unrealized appreciation (depreciation)
|
(67,491,422)
|
|
31,031,603
|
|
(40,908,476)
|
|
13,738,762
|
Net increase (decrease) in net assets resulting from operations
|
(13,626,720)
|
|
65,019,084
|
|
(38,447,111)
|
|
17,714,658
|
DISTRIBUTIONS
TO SHAREHOLDERS FROM: |
|
|
|
|
|
|
|
Investment operations
|
(1,833,976)
|
|
(67,710)
|
|
(3,919,682)
|
|
(1,414,166)
|
Return of capital
|
—
|
|
—
|
|
—
|
|
—
|
Total distributions to shareholders
|
(1,833,976)
|
|
(67,710)
|
|
(3,919,682)
|
|
(1,414,166)
|
SHAREHOLDER
TRANSACTIONS: |
|
|
|
|
|
|
|
Proceeds from shares sold
|
250,484,774
|
|
49,813,076
|
|
23,904,823
|
|
73,931,252
|
Cost of shares redeemed
|
(217,153,179)
|
|
(125,909,677)
|
|
(13,920,351)
|
|
—
|
Net increase (decrease) in net assets resulting from shareholder transactions
|
33,331,595
|
|
(76,096,601)
|
|
9,984,472
|
|
73,931,252
|
Total increase (decrease) in net assets
|
17,870,899
|
|
(11,145,227)
|
|
(32,382,321)
|
|
90,231,744
|
NET
ASSETS: |
|
|
|
|
|
|
|
Beginning of period
|
212,608,772
|
|
223,753,999
|
|
132,512,050
|
|
42,280,306
|
End of period
|
$230,479,671
|
|
$212,608,772
|
|
$100,129,729
|
|
$132,512,050
|
CHANGES
IN SHARES OUTSTANDING: |
|
|
|
|
|
|
|
Shares outstanding, beginning of period
|
6,050,002
|
|
8,550,002
|
|
3,150,002
|
|
1,350,002
|
Shares sold
|
6,900,000
|
|
1,500,000
|
|
550,000
|
|
1,800,000
|
Shares redeemed
|
(6,050,000)
|
|
(4,000,000)
|
|
(400,000)
|
|
—
|
Shares outstanding, end of period
|
6,900,002
|
|
6,050,002
|
|
3,300,002
|
|
3,150,002
|
(a)
|
Inception
date is December 15, 2020, which is consistent with the commencement of investment operations and is the date the initial creation units
were established. |
Page
90
See
Notes to Financial Statements
First
Trust Nasdaq Artificial Intelligence and Robotics ETF (ROBT) |
|
First
Trust International Developed Capital Strength ETF (FICS) |
Year
Ended 9/30/2022 |
|
Year
Ended 9/30/2021 |
|
Year
Ended 9/30/2022 |
|
Period
Ended 9/30/2021 (a) |
|
|
|
|
|
|
|
$ 410,956
|
|
$ 225,235
|
|
$ 504,080
|
|
$ 43,782
|
(2,031,906)
|
|
33,190,276
|
|
(1,980,077)
|
|
177,073
|
1,987
|
|
—
|
|
—
|
|
—
|
(103,824,955)
|
|
14,737,527
|
|
(5,651,836)
|
|
(13,221)
|
(105,443,918)
|
|
48,153,038
|
|
(7,127,833)
|
|
207,634
|
|
|
|
|
|
|
|
(369,695)
|
|
(333,100)
|
|
(503,611)
|
|
(39,101)
|
—
|
|
—
|
|
—
|
|
—
|
(369,695)
|
|
(333,100)
|
|
(503,611)
|
|
(39,101)
|
|
|
|
|
|
|
|
64,515,646
|
|
178,221,700
|
|
31,655,094
|
|
11,708,531
|
(51,946,180)
|
|
(80,098,259)
|
|
(14,840,804)
|
|
(1,664,041)
|
12,569,466
|
|
98,123,441
|
|
16,814,290
|
|
10,044,490
|
(93,244,147)
|
|
145,943,379
|
|
9,182,846
|
|
10,213,023
|
|
|
|
|
|
|
|
266,492,021
|
|
120,548,642
|
|
10,213,023
|
|
—
|
$ 173,247,874
|
|
$ 266,492,021
|
|
$ 19,395,869
|
|
$ 10,213,023
|
|
|
|
|
|
|
|
5,000,002
|
|
3,100,002
|
|
300,002
|
|
—
|
1,250,000
|
|
3,400,000
|
|
950,000
|
|
350,002
|
(1,100,000)
|
|
(1,500,000)
|
|
(500,000)
|
|
(50,000)
|
5,150,002
|
|
5,000,002
|
|
750,002
|
|
300,002
|
See
Notes to Financial Statements
Page
91
First
Trust Exchange-Traded Fund VI
Financial
Highlights
For
a share outstanding throughout each period
First
Trust NASDAQ Technology Dividend Index Fund (TDIV)
|
Year
Ended September 30, |
2022
|
|
2021
|
|
2020
|
|
2019
|
|
2018
|
Net asset value, beginning of period
|
$ 56.42
|
|
$ 43.84
|
|
$ 40.09
|
|
$ 38.38
|
|
$ 32.39
|
Income
from investment operations: |
|
|
|
|
|
|
|
|
|
Net investment income (loss)
|
1.24
|
|
1.10
|
|
0.93
|
|
0.97
|
|
0.96
|
Net realized and unrealized gain (loss)
|
(12.83)
|
|
12.55
|
|
3.77
|
|
1.71
|
|
5.90
|
Total from investment operations
|
(11.59)
|
|
13.65
|
|
4.70
|
|
2.68
|
|
6.86
|
Distributions
paid to shareholders from: |
|
|
|
|
|
|
|
|
|
Net investment income
|
(1.22)
|
|
(1.07)
|
|
(0.95)
|
|
(0.97)
|
|
(0.87)
|
Net asset value, end of period
|
$43.61
|
|
$56.42
|
|
$43.84
|
|
$40.09
|
|
$38.38
|
Total return (a)
|
(20.93)%
|
|
31.29%
|
|
11.91%
|
|
7.21%
|
|
21.37%
|
Ratios
to average net assets/supplemental data: |
|
|
|
|
|
|
|
|
|
Net assets, end of period (in 000’s)
|
$ 1,430,611
|
|
$ 1,613,767
|
|
$ 1,245,277
|
|
$ 1,010,557
|
|
$ 948,172
|
Ratio of total expenses to average net assets
|
0.50%
|
|
0.50%
|
|
0.50%
|
|
0.50%
|
|
0.50%
|
Ratio of net investment income (loss) to average net assets
|
2.26%
|
|
2.08%
|
|
2.28%
|
|
2.59%
|
|
2.70%
|
Portfolio turnover rate (b)
|
36%
|
|
38%
|
|
49%
|
|
37%
|
|
27%
|
(a)
|
Total
return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all distributions
at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not reflect
the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is calculated
for the time period presented and is not annualized for periods of less than a year. |
(b)
|
Portfolio
turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities
received or delivered from processing creations or redemptions and in-kind transactions. |
Page
92
See
Notes to Financial Statements
First
Trust Exchange-Traded Fund VI
Financial
Highlights (Continued)
For
a share outstanding throughout each period
Multi-Asset
Diversified Income Index Fund (MDIV)
|
Year
Ended September 30, |
2022
|
|
2021
|
|
2020
|
|
2019
|
|
2018
|
Net asset value, beginning of period
|
$ 16.35
|
|
$ 13.52
|
|
$ 18.43
|
|
$ 18.54
|
|
$ 19.22
|
Income
from investment operations: |
|
|
|
|
|
|
|
|
|
Net investment income (loss)
|
0.72
|
|
0.49
|
|
0.57
|
|
0.83
|
|
0.87
|
Net realized and unrealized gain (loss)
|
(1.67)
|
|
3.18
|
|
(4.52)
|
|
0.18
|
|
(0.36)
|
Total from investment operations
|
(0.95)
|
|
3.67
|
|
(3.95)
|
|
1.01
|
|
0.51
|
Distributions
paid to shareholders from: |
|
|
|
|
|
|
|
|
|
Net investment income
|
(0.97)
|
|
(0.64)
|
|
(0.79)
|
|
(0.77)
|
|
(0.76)
|
Return of capital
|
(0.02)
|
|
(0.20)
|
|
(0.17)
|
|
(0.35)
|
|
(0.43)
|
Total distributions
|
(0.99)
|
|
(0.84)
|
|
(0.96)
|
|
(1.12)
|
|
(1.19)
|
Net asset value, end of period
|
$14.41
|
|
$16.35
|
|
$13.52
|
|
$18.43
|
|
$18.54
|
Total return (a)
|
(6.25)%
|
|
27.50%
|
|
(21.89)%
|
|
5.74%
|
|
2.82%
|
Ratios
to average net assets/supplemental data: |
|
|
|
|
|
|
|
|
|
Net assets, end of period (in 000’s)
|
$ 446,101
|
|
$ 470,203
|
|
$ 440,726
|
|
$ 715,985
|
|
$ 683,960
|
Ratio of total expenses to average net assets (b)
|
0.60%
|
|
0.60%
|
|
0.60%
|
|
0.60%
|
|
0.60%
|
Ratio of net expenses to average net assets (b)
|
0.48%
|
|
0.48%
|
|
0.47%
|
|
0.48%
|
|
0.48%
|
Ratio of net investment income (loss) to average net assets
|
4.40%
|
|
3.03%
|
|
3.86%
|
|
4.58%
|
|
4.62%
|
Portfolio turnover rate (c)
|
85%
|
|
100%
|
|
106%
|
|
73%
|
|
84%
|
(a)
|
Total
return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all distributions
at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not reflect
the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is calculated
for the time period presented and is not annualized for periods of less than a year. The total returns would have been lower if certain
fees had not been waived and expenses reimbursed by the investment advisor. |
(b)
|
The
Fund indirectly bears its proportionate share of fees and expenses incurred by the underlying funds in which the Fund invests. This ratio
does not include these indirect fees and expenses. |
(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
93
First
Trust Exchange-Traded Fund VI
Financial
Highlights (Continued)
For
a share outstanding throughout each period
First
Trust S&P International Dividend Aristocrats ETF (FID)
|
Year
Ended September 30, |
2022
|
|
2021
|
|
2020
|
|
2019
|
|
2018
|
Net asset value, beginning of period
|
$ 17.56
|
|
$ 14.15
|
|
$ 17.11
|
|
$ 17.19
|
|
$ 18.52
|
Income
from investment operations: |
|
|
|
|
|
|
|
|
|
Net investment income (loss)
|
0.71
|
|
0.62
|
|
0.64
|
|
0.63
|
|
0.85
|
Net realized and unrealized gain (loss)
|
(3.85)
|
|
3.43
|
|
(2.93)
|
|
(0.08)
|
|
(1.26)
|
Total from investment operations
|
(3.14)
|
|
4.05
|
|
(2.29)
|
|
0.55
|
|
(0.41)
|
Distributions
paid to shareholders from: |
|
|
|
|
|
|
|
|
|
Net investment income
|
(0.70)
|
|
(0.64)
|
|
(0.67)
|
|
(0.63)
|
|
(0.92)
|
Net asset value, end of period
|
$13.72
|
|
$17.56
|
|
$14.15
|
|
$17.11
|
|
$17.19
|
Total return (a)
|
(18.39)%
|
|
28.79%
|
|
(13.62)%
|
|
3.38%
|
|
(2.35)%
|
Ratios
to average net assets/supplemental data: |
|
|
|
|
|
|
|
|
|
Net assets, end of period (in 000’s)
|
$ 43,912
|
|
$ 42,139
|
|
$ 18,390
|
|
$ 19,678
|
|
$ 13,753
|
Ratio of total expenses to average net assets
|
0.60%
|
|
0.60%
|
|
0.60%
|
|
0.60%
|
|
0.69% (b)
|
Ratio of net investment income (loss) to average net assets
|
4.39%
|
|
4.10%
|
|
4.03%
|
|
4.01%
|
|
4.70%
|
Portfolio turnover rate (c)
|
47%
|
|
57%
|
|
81%
|
|
44%
|
|
196% (d)
|
(a)
|
Total
return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all distributions
at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not reflect
the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is calculated
for the time period presented and is not annualized for periods of less than a year. |
(b)
|
On
August 30, 2018, the Fund reduced the annual management fee payable to First Trust, from 0.70% of the Fund’s average daily net assets
to 0.60% of the Fund’s average daily net assets. |
(c)
|
Portfolio
turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities
received or delivered from processing creations or redemptions and in-kind transactions. |
(d)
|
The
variation in the portfolio turnover rate is due to the change in the Fund’s underlying index effective August 30, 2018, which resulted
in a complete rebalance of the Fund’s portfolio. |
Page
94
See
Notes to Financial Statements
First
Trust Exchange-Traded Fund VI
Financial
Highlights (Continued)
For
a share outstanding throughout each period
First
Trust BuyWrite Income ETF (FTHI)
|
Year
Ended September 30, |
2022
|
|
2021
|
|
2020
|
|
2019
|
|
2018
|
Net asset value, beginning of period
|
$ 21.42
|
|
$ 19.12
|
|
$ 22.43
|
|
$ 23.28
|
|
$ 22.54
|
Income
from investment operations: |
|
|
|
|
|
|
|
|
|
Net investment income (loss)
|
0.17 (a)
|
|
0.12
|
|
0.23
|
|
0.40
|
|
0.35
|
Net realized and unrealized gain (loss)
|
(1.64)
|
|
3.14
|
|
(2.58)
|
|
(0.29)
|
|
1.35
|
Total from investment operations
|
(1.47)
|
|
3.26
|
|
(2.35)
|
|
0.11
|
|
1.70
|
Distributions
paid to shareholders from: |
|
|
|
|
|
|
|
|
|
Net investment income
|
(1.58)
|
|
(0.96)
|
|
(0.23)
|
|
(0.86)
|
|
(0.96)
|
Return of capital
|
—
|
|
—
|
|
(0.73)
|
|
(0.10)
|
|
—
|
Total distributions
|
(1.58)
|
|
(0.96)
|
|
(0.96)
|
|
(0.96)
|
|
(0.96)
|
Net asset value, end of period
|
$18.37
|
|
$21.42
|
|
$19.12
|
|
$22.43
|
|
$23.28
|
Total return (b)
|
(7.60)%
|
|
17.31%
|
|
(10.63)%
|
|
0.72%
|
|
8.12%
|
Ratios
to average net assets/supplemental data: |
|
|
|
|
|
|
|
|
|
Net assets, end of period (in 000’s)
|
$ 89,527
|
|
$ 46,575
|
|
$ 59,733
|
|
$ 80,155
|
|
$ 66,898
|
Ratio of total expenses to average net assets
|
0.85%
|
|
0.85%
|
|
0.85%
|
|
0.85%
|
|
0.85%
|
Ratio of net investment income (loss) to average net assets
|
0.81%
|
|
1.29%
|
|
1.10%
|
|
1.43%
|
|
1.34%
|
Portfolio turnover rate (c)
|
90% (d)
|
|
199%
|
|
210%
|
|
209%
|
|
239%
|
(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. |
(d)
|
The
variation in the portfolio turnover rate is due to lower than expected portfolio rebalancing, which was impacted by high levels of equity
volatility and a downtrend in the U.S. equity markets. |
See
Notes to Financial Statements
Page
95
First
Trust Exchange-Traded Fund VI
Financial
Highlights (Continued)
For
a share outstanding throughout each period
First
Trust Nasdaq BuyWrite Income ETF (FTQI)
|
Year
Ended September 30, |
2022
|
|
2021
|
|
2020
|
|
2019
|
|
2018
|
Net asset value, beginning of period
|
$ 21.17
|
|
$ 19.23
|
|
$ 22.30
|
|
$ 22.92
|
|
$ 22.27
|
Income
from investment operations: |
|
|
|
|
|
|
|
|
|
Net investment income (loss)
|
0.06 (a)
|
|
0.34
|
|
0.21
|
|
0.27
|
|
0.40
|
Net realized and unrealized gain (loss)
|
(1.83)
|
|
2.26
|
|
(2.62)
|
|
(0.23)
|
|
0.91
|
Total from investment operations
|
(1.77)
|
|
2.60
|
|
(2.41)
|
|
0.04
|
|
1.31
|
Distributions
paid to shareholders from: |
|
|
|
|
|
|
|
|
|
Net investment income
|
(0.99)
|
|
(0.66)
|
|
(0.21)
|
|
(0.58)
|
|
(0.66)
|
Return of capital
|
(0.42)
|
|
—
|
|
(0.45)
|
|
(0.08)
|
|
—
|
Total distributions
|
(1.41)
|
|
(0.66)
|
|
(0.66)
|
|
(0.66)
|
|
(0.66)
|
Net asset value, end of period
|
$17.99
|
|
$21.17
|
|
$19.23
|
|
$22.30
|
|
$22.92
|
Total return (b)
|
(9.00)%
|
|
13.66%
|
|
(10.98)%
|
|
0.29%
|
|
5.95%
|
Ratios
to average net assets/supplemental data: |
|
|
|
|
|
|
|
|
|
Net assets, end of period (in 000’s)
|
$ 18,888
|
|
$ 9,527
|
|
$ 4,807
|
|
$ 8,919
|
|
$ 13,751
|
Ratio of total expenses to average net assets
|
0.85%
|
|
0.85%
|
|
0.85%
|
|
0.85%
|
|
0.85%
|
Ratio of net investment income (loss) to average net assets
|
0.27%
|
|
1.16%
|
|
0.96%
|
|
1.40%
|
|
1.32%
|
Portfolio turnover rate (c)
|
107% (d)
|
|
182%
|
|
207%
|
|
205%
|
|
219%
|
(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. |
(d)
|
The
variation in the portfolio turnover rate is due to the change in the Fund’s index and investment strategy effective May 11, 2022,
which resulted in fewer portfolio transactions. |
Page
96
See
Notes to Financial Statements
First
Trust Exchange-Traded Fund VI
Financial
Highlights (Continued)
For
a share outstanding throughout each period
First
Trust Rising Dividend Achievers ETF (RDVY)
|
Year
Ended September 30, |
2022
|
|
2021
|
|
2020
|
|
2019
|
|
2018
|
Net asset value, beginning of period
|
$ 47.47
|
|
$ 32.67
|
|
$ 31.82
|
|
$ 31.54
|
|
$ 27.84
|
Income
from investment operations: |
|
|
|
|
|
|
|
|
|
Net investment income (loss)
|
0.82
|
|
0.59
|
|
0.58
|
|
0.54
|
|
0.41
|
Net realized and unrealized gain (loss)
|
(8.70)
|
|
14.79
|
|
0.86
|
|
0.27
|
|
3.68
|
Total from investment operations
|
(7.88)
|
|
15.38
|
|
1.44
|
|
0.81
|
|
4.09
|
Distributions
paid to shareholders from: |
|
|
|
|
|
|
|
|
|
Net investment income
|
(0.76)
|
|
(0.58)
|
|
(0.59)
|
|
(0.53)
|
|
(0.39)
|
Net asset value, end of period
|
$38.83
|
|
$47.47
|
|
$32.67
|
|
$31.82
|
|
$31.54
|
Total return (a)
|
(16.76)%
|
|
47.21%
|
|
4.61%
|
|
2.72%
|
|
14.78%
|
Ratios
to average net assets/supplemental data: |
|
|
|
|
|
|
|
|
|
Net assets, end of period (in 000’s)
|
$ 7,290,775
|
|
$ 5,739,655
|
|
$ 1,292,097
|
|
$ 832,156
|
|
$ 690,709
|
Ratio of total expenses to average net assets
|
0.50%
|
|
0.50%
|
|
0.50%
|
|
0.50%
|
|
0.50%
|
Ratio of net investment income (loss) to average net assets
|
1.85%
|
|
1.43%
|
|
1.89%
|
|
1.85%
|
|
1.50%
|
Portfolio turnover rate (b)
|
59%
|
|
45%
|
|
62%
|
|
63%
|
|
40%
|
(a)
|
Total
return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all distributions
at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not reflect
the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is calculated
for the time period presented and is not annualized for periods of less than a year. |
(b)
|
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
97
First
Trust Exchange-Traded Fund VI
Financial
Highlights (Continued)
For
a share outstanding throughout each period
First
Trust Dorsey Wright Focus 5 ETF (FV)
|
Year
Ended September 30, |
2022
|
|
2021
|
|
2020
|
|
2019
|
|
2018
|
Net asset value, beginning of period
|
$ 45.78
|
|
$ 34.10
|
|
$ 29.63
|
|
$ 30.93
|
|
$ 26.17
|
Income
from investment operations: |
|
|
|
|
|
|
|
|
|
Net investment income (loss)
|
0.46
|
|
0.02
|
|
0.09
|
|
0.11
|
|
0.09
|
Net realized and unrealized gain (loss)
|
(4.71)
|
|
11.68
|
|
4.49
|
|
(1.31)
|
|
4.83
|
Total from investment operations
|
(4.25)
|
|
11.70
|
|
4.58
|
|
(1.20)
|
|
4.92
|
Distributions
paid to shareholders from: |
|
|
|
|
|
|
|
|
|
Net investment income
|
(0.44)
|
|
(0.02)
|
|
(0.11)
|
|
(0.10)
|
|
(0.16)
|
Net asset value, end of period
|
$41.09
|
|
$45.78
|
|
$34.10
|
|
$29.63
|
|
$30.93
|
Total return (a)
|
(9.32)%
|
|
34.31%
|
|
15.50%
|
|
(3.92)%
|
|
18.91%
|
Ratios
to average net assets/supplemental data: |
|
|
|
|
|
|
|
|
|
Net assets, end of period (in 000’s)
|
$ 2,592,805
|
|
$ 2,694,187
|
|
$ 2,047,492
|
|
$ 2,348,262
|
|
$ 2,858,225
|
Ratio of total expenses to average net assets (b)
|
0.30%
|
|
0.30%
|
|
0.30%
|
|
0.30%
|
|
0.30%
|
Ratio of net investment income (loss) to average net assets
|
1.01%
|
|
0.04%
|
|
0.30%
|
|
0.34%
|
|
0.30%
|
Portfolio turnover rate (c)
|
81%
|
|
20%
|
|
72%
|
|
65%
|
|
44%
|
(a)
|
Total
return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all distributions
at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not reflect
the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is calculated
for the time period presented and is not annualized for periods of less than a year. |
(b)
|
The
Fund indirectly bears its proportionate share of fees and expenses incurred by the underlying funds in which the Fund invests. This ratio
does not include these indirect fees and expenses. |
(c)
|
Portfolio
turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities
received or delivered from processing creations or redemptions and in-kind transactions. |
Page
98
See
Notes to Financial Statements
First
Trust Exchange-Traded Fund VI
Financial
Highlights (Continued)
For
a share outstanding throughout each period
First
Trust RBA American Industrial Renaissance® ETF (AIRR)
|
Year
Ended September 30, |
2022
|
|
2021
|
|
2020
|
|
2019
|
|
2018
|
Net asset value, beginning of period
|
$ 40.84
|
|
$ 25.68
|
|
$ 26.76
|
|
$ 27.93
|
|
$ 26.04
|
Income
from investment operations: |
|
|
|
|
|
|
|
|
|
Net investment income (loss)
|
0.04
|
|
0.03
|
|
(0.03)
|
|
0.10 (a)
|
|
0.09
|
Net realized and unrealized gain (loss)
|
(2.66)
|
|
15.16
|
|
(0.98)
|
|
(1.21)
|
|
1.88
|
Total from investment operations
|
(2.62)
|
|
15.19
|
|
(1.01)
|
|
(1.11)
|
|
1.97
|
Distributions
paid to shareholders from: |
|
|
|
|
|
|
|
|
|
Net investment income
|
(0.02)
|
|
(0.03)
|
|
(0.07)
|
|
(0.06)
|
|
(0.08)
|
Net asset value, end of period
|
$38.20
|
|
$40.84
|
|
$25.68
|
|
$26.76
|
|
$27.93
|
Total return (b)
|
(6.41)%
|
|
59.15%
|
|
(3.81)%
|
|
(3.95)%
|
|
7.56%
|
Ratios
to average net assets/supplemental data: |
|
|
|
|
|
|
|
|
|
Net assets, end of period (in 000’s)
|
$ 169,984
|
|
$ 220,549
|
|
$ 47,513
|
|
$ 66,900
|
|
$ 195,500
|
Ratio of total expenses to average net assets
|
0.70%
|
|
0.70%
|
|
0.70%
|
|
0.70%
|
|
0.70%
|
Ratio of net investment income (loss) to average net assets
|
0.10%
|
|
0.07%
|
|
(0.18)%
|
|
0.40%
|
|
0.32%
|
Portfolio turnover rate (c)
|
37%
|
|
35%
|
|
45%
|
|
58%
|
|
35%
|
(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
99
First
Trust Exchange-Traded Fund VI
Financial
Highlights (Continued)
For
a share outstanding throughout each period
First
Trust Dorsey Wright Momentum & Dividend ETF (DDIV)
|
Year
Ended September 30, |
2022
|
|
2021
|
|
2020
|
|
2019
|
|
2018
|
Net asset value, beginning of period
|
$ 31.09
|
|
$ 21.06
|
|
$ 26.07
|
|
$ 25.15
|
|
$ 24.54
|
Income
from investment operations: |
|
|
|
|
|
|
|
|
|
Net investment income (loss)
|
0.88
|
|
0.73
|
|
0.68
|
|
0.78
|
|
0.65
|
Net realized and unrealized gain (loss)
|
(4.22)
|
|
10.01
|
|
(4.95)
|
|
0.86
|
|
0.59
|
Total from investment operations
|
(3.34)
|
|
10.74
|
|
(4.27)
|
|
1.64
|
|
1.24
|
Distributions
paid to shareholders from: |
|
|
|
|
|
|
|
|
|
Net investment income
|
(0.91)
|
|
(0.71)
|
|
(0.74)
|
|
(0.72)
|
|
(0.63)
|
Net asset value, end of period
|
$26.84
|
|
$31.09
|
|
$21.06
|
|
$26.07
|
|
$25.15
|
Total return (a)
|
(11.08)%
|
|
51.29%
|
|
(16.49)%
|
|
6.87%
|
|
5.10%
|
Ratios
to average net assets/supplemental data: |
|
|
|
|
|
|
|
|
|
Net assets, end of period (in 000’s)
|
$ 67,100
|
|
$ 38,863
|
|
$ 29,484
|
|
$ 44,313
|
|
$ 37,727
|
Ratio of total expenses to average net assets
|
0.60%
|
|
0.60%
|
|
0.60%
|
|
0.60%
|
|
0.69% (b)
|
Ratio of net investment income (loss) to average net assets
|
3.00%
|
|
2.54%
|
|
2.81%
|
|
3.50%
|
|
2.79%
|
Portfolio turnover rate (c)
|
172%
|
|
186%
|
|
193%
|
|
160%
|
|
297% (d)
|
(a)
|
Total
return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all distributions
at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not reflect
the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is calculated
for the time period presented and is not annualized for periods of less than a year. |
(b)
|
On
September 6, 2018, the Fund reduced the annual management fee payable to First Trust, from 0.70% of the Fund’s average daily net
assets to 0.60% of the Fund’s average daily net assets. |
(c)
|
Portfolio
turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities
received or delivered from processing creations or redemptions and in-kind transactions. |
(d)
|
The
variation in the portfolio turnover rate is due to the change in the Fund’s underlying index effective September 6, 2018, which
resulted in a complete rebalance of the Fund’s portfolio. |
Page
100
See
Notes to Financial Statements
First
Trust Exchange-Traded Fund VI
Financial
Highlights (Continued)
For
a share outstanding throughout each period
First
Trust Dorsey Wright International Focus 5 ETF (IFV)
|
Year
Ended September 30, |
2022
|
|
2021
|
|
2020
|
|
2019
|
|
2018
|
Net asset value, beginning of period
|
$ 22.74
|
|
$ 18.83
|
|
$ 19.07
|
|
$ 20.33
|
|
$ 21.35
|
Income
from investment operations: |
|
|
|
|
|
|
|
|
|
Net investment income (loss)
|
0.64
|
|
0.20
|
|
0.56
|
|
0.37
|
|
0.33
|
Net realized and unrealized gain (loss)
|
(6.66)
|
|
3.93
|
|
(0.23)
|
|
(1.26)
|
|
(0.93)
|
Total from investment operations
|
(6.02)
|
|
4.13
|
|
0.33
|
|
(0.89)
|
|
(0.60)
|
Distributions
paid to shareholders from: |
|
|
|
|
|
|
|
|
|
Net investment income
|
(0.63)
|
|
(0.22)
|
|
(0.57)
|
|
(0.35)
|
|
(0.42)
|
Return of capital
|
—
|
|
—
|
|
—
|
|
(0.02)
|
|
—
|
Total distributions
|
(0.63)
|
|
(0.22)
|
|
(0.57)
|
|
(0.37)
|
|
(0.42)
|
Net asset value, end of period
|
$16.09
|
|
$22.74
|
|
$18.83
|
|
$19.07
|
|
$20.33
|
Total return (a)
|
(26.89)%
|
|
21.91%
|
|
1.75%
|
|
(4.42)%
|
|
(2.91)%
|
Ratios
to average net assets/supplemental data: |
|
|
|
|
|
|
|
|
|
Net assets, end of period (in 000’s)
|
$ 139,212
|
|
$ 264,970
|
|
$ 218,452
|
|
$ 453,757
|
|
$ 774,665
|
Ratio of total expenses to average net assets (b)
|
0.30%
|
|
0.30%
|
|
0.30%
|
|
0.30%
|
|
0.30%
|
Ratio of net investment income (loss) to average net assets
|
2.92%
|
|
0.87%
|
|
3.19%
|
|
1.89%
|
|
1.57%
|
Portfolio turnover rate (c)
|
104%
|
|
66%
|
|
29%
|
|
42%
|
|
0%
|
(a)
|
Total
return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all distributions
at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not reflect
the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is calculated
for the time period presented and is not annualized for periods of less than a year. |
(b)
|
The
Fund indirectly bears its proportionate share of fees and expenses incurred by the underlying funds in which the Fund invests. This ratio
does not include these indirect fees and expenses. |
(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
101
First
Trust Exchange-Traded Fund VI
Financial
Highlights (Continued)
For
a share outstanding throughout each period
First
Trust Dorsey Wright Dynamic Focus 5 ETF (FVC)
|
Year
Ended September 30, |
2022
|
|
2021
|
|
2020
|
|
2019
|
|
2018
|
Net asset value, beginning of period
|
$ 35.14
|
|
$ 26.17
|
|
$ 26.45
|
|
$ 28.80
|
|
$ 24.36
|
Income
from investment operations: |
|
|
|
|
|
|
|
|
|
Net investment income (loss)
|
0.31
|
|
0.01
|
|
0.13
|
|
0.22
|
|
0.08
|
Net realized and unrealized gain (loss)
|
(1.77)
|
|
8.97
|
|
(0.25)
|
|
(2.37)
|
|
4.51
|
Total from investment operations
|
(1.46)
|
|
8.98
|
|
(0.12)
|
|
(2.15)
|
|
4.59
|
Distributions
paid to shareholders from: |
|
|
|
|
|
|
|
|
|
Net investment income
|
(0.28)
|
|
(0.01)
|
|
(0.16)
|
|
(0.20)
|
|
(0.15)
|
Net asset value, end of period
|
$33.40
|
|
$35.14
|
|
$26.17
|
|
$26.45
|
|
$28.80
|
Total return (a)
|
(4.18)%
|
|
34.32%
|
|
(0.46)%
|
|
(7.46)%
|
|
18.91%
|
Ratios
to average net assets/supplemental data: |
|
|
|
|
|
|
|
|
|
Net assets, end of period (in 000’s)
|
$ 230,480
|
|
$ 212,609
|
|
$ 223,754
|
|
$ 468,253
|
|
$ 620,537
|
Ratio of total expenses to average net assets (b)
|
0.30%
|
|
0.30%
|
|
0.30%
|
|
0.30%
|
|
0.30%
|
Ratio of net investment income (loss) to average net assets
|
0.91%
|
|
0.02%
|
|
0.54%
|
|
0.79%
|
|
0.32%
|
Portfolio turnover rate (c)
|
164%
|
|
20%
|
|
225%
|
|
90%
|
|
42%
|
(a)
|
Total
return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all distributions
at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not reflect
the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is calculated
for the time period presented and is not annualized for periods of less than a year. |
(b)
|
The
Fund indirectly bears its proportionate share of fees and expenses incurred by the underlying funds in which the Fund invests. This ratio
does not include these indirect fees and expenses. |
(c)
|
Portfolio
turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities
received or delivered from processing creations or redemptions and in-kind transactions. |
Page
102
See
Notes to Financial Statements
First
Trust Exchange-Traded Fund VI
Financial
Highlights (Continued)
For
a share outstanding throughout each period
First
Trust Indxx Innovative Transaction & Process ETF (LEGR)
|
Year
Ended September 30, |
|
Period
Ended 9/30/2018 (a) |
2022
|
|
2021
|
|
2020
|
|
2019
|
|
Net asset value, beginning of period
|
$ 42.07
|
|
$ 31.32
|
|
$ 29.32
|
|
$ 30.31
|
|
$ 29.99
|
Income
from investment operations: |
|
|
|
|
|
|
|
|
|
Net investment income (loss)
|
1.15
|
|
0.61
|
|
0.35
|
|
0.59
|
|
0.26
|
Net realized and unrealized gain (loss)
|
(11.75)
|
|
10.70
|
|
2.02
|
|
(0.93)
|
|
0.29
|
Total from investment operations
|
(10.60)
|
|
11.31
|
|
2.37
|
|
(0.34)
|
|
0.55
|
Distributions
paid to shareholders from: |
|
|
|
|
|
|
|
|
|
Net investment income
|
(1.13)
|
|
(0.56)
|
|
(0.37)
|
|
(0.65)
|
|
(0.23)
|
Net asset value, end of period
|
$30.34
|
|
$42.07
|
|
$31.32
|
|
$29.32
|
|
$30.31
|
Total return (b)
|
(25.55)%
|
|
36.13%
|
|
8.13%
|
|
(1.08)%
|
|
1.87%
|
Ratios
to average net assets/supplemental data: |
|
|
|
|
|
|
|
|
|
Net assets, end of period (in 000’s)
|
$ 100,130
|
|
$ 132,512
|
|
$ 42,280
|
|
$ 41,048
|
|
$ 50,017
|
Ratio of total expenses to average net assets
|
0.65%
|
|
0.65%
|
|
0.65%
|
|
0.65%
|
|
0.65% (c)
|
Ratio of net investment income (loss) to average net assets
|
2.94%
|
|
1.84%
|
|
1.12%
|
|
1.95%
|
|
1.63% (c)
|
Portfolio turnover rate (d)
|
23%
|
|
46%
|
|
25%
|
|
35%
|
|
53%
|
(a)
|
Inception
date is January 24, 2018, which is consistent with the commencement of investment operations and is the date the initial creation units
were established. |
(b)
|
Total
return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all distributions
at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not reflect
the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is calculated
for the time period presented and is not annualized for periods of less than a year. |
(c)
|
Annualized.
|
(d)
|
Portfolio
turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities
received or delivered from processing creations or redemptions and in-kind transactions. |
See
Notes to Financial Statements
Page
103
First
Trust Exchange-Traded Fund VI
Financial
Highlights (Continued)
For
a share outstanding throughout each period
First
Trust Nasdaq Artificial Intelligence and Robotics ETF (ROBT)
|
Year
Ended September 30, |
|
Period
Ended 9/30/2018 (a) |
2022
|
|
2021
|
|
2020
|
|
2019
|
|
Net asset value, beginning of period
|
$ 53.30
|
|
$ 38.89
|
|
$ 31.51
|
|
$ 32.23
|
|
$ 29.91
|
Income
from investment operations: |
|
|
|
|
|
|
|
|
|
Net investment income (loss)
|
0.08
|
|
0.05
|
|
0.04
|
|
0.17
|
|
0.12
|
Net realized and unrealized gain (loss)
|
(19.67) (b)
|
|
14.44
|
|
7.39
|
|
(0.75)
|
|
2.31
|
Total from investment operations
|
(19.59)
|
|
14.49
|
|
7.43
|
|
(0.58)
|
|
2.43
|
Distributions
paid to shareholders from: |
|
|
|
|
|
|
|
|
|
Net investment income
|
(0.07)
|
|
(0.08)
|
|
(0.05)
|
|
(0.14)
|
|
(0.11)
|
Net asset value, end of period
|
$33.64
|
|
$53.30
|
|
$38.89
|
|
$31.51
|
|
$32.23
|
Total return (c)
|
(36.76)% (b)
|
|
37.27%
|
|
23.60%
|
|
(1.81)%
|
|
8.15%
|
Ratios
to average net assets/supplemental data: |
|
|
|
|
|
|
|
|
|
Net assets, end of period (in 000’s)
|
$ 173,248
|
|
$ 266,492
|
|
$ 120,549
|
|
$ 61,443
|
|
$ 32,226
|
Ratio of total expenses to average net assets
|
0.65%
|
|
0.65%
|
|
0.65%
|
|
0.65%
|
|
0.65% (d)
|
Ratio of net investment income (loss) to average net assets
|
0.17%
|
|
0.10%
|
|
0.15%
|
|
0.68%
|
|
0.62% (d)
|
Portfolio turnover rate (e)
|
36%
|
|
31%
|
|
34%
|
|
43%
|
|
67%
|
(a)
|
Inception
date is February 21, 2018, which is consistent with the commencement of investment operations and is the date the initial creation units
were established. |
(b)
|
The
Fund received a reimbursement from the advisor in the amount of $1,987 in connection with a trade error, which represents less than $0.01
per share. Since the advisor reimbursed the Fund, there was no effect on the Fund’s total return. |
(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. |
Page
104
See
Notes to Financial Statements
First
Trust Exchange-Traded Fund VI
Financial
Highlights (Continued)
For
a share outstanding throughout each period
First
Trust International Developed Capital Strength ETF (FICS)
|
Year
Ended 9/30/2022 |
|
Period
Ended 9/30/2021 (a) |
Net asset value, beginning of period
|
$ 34.04
|
|
$ 30.09
|
Income
from investment operations: |
|
|
|
Net investment income (loss)
|
0.57
|
|
0.36
|
Net realized and unrealized gain (loss)
|
(8.16)
|
|
3.93
|
Total from investment operations
|
(7.59)
|
|
4.29
|
Distributions
paid to shareholders from: |
|
|
|
Net investment income
|
(0.59)
|
|
(0.34)
|
Net asset value, end of period
|
$25.86
|
|
$34.04
|
Total return (b)
|
(22.50)%
|
|
14.25%
|
Ratios
to average net assets/supplemental data: |
|
|
|
Net assets, end of period (in 000’s)
|
$ 19,396
|
|
$ 10,213
|
Ratio of total expenses to average net assets
|
0.70%
|
|
0.70% (c)
|
Ratio of net investment income (loss) to average net assets
|
2.10%
|
|
1.29% (c)
|
Portfolio turnover rate (d)
|
77%
|
|
23%
|
(a)
|
Inception
date is December 15, 2020, which is consistent with the commencement of investment operations and is the date the initial creation units
were established. |
(b)
|
Total
return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all distributions
at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not reflect
the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is calculated
for the time period presented and is not annualized for periods of less than a year. |
(c)
|
Annualized.
|
(d)
|
Portfolio
turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities
received or delivered from processing creations or redemptions and in-kind transactions. |
See
Notes to Financial Statements
Page
105
Notes
to Financial Statements
First
Trust Exchange-Traded Fund VI
September
30, 2022
1. Organization
First
Trust Exchange-Traded Fund VI (the “Trust”) is an open-end management investment company organized as a Massachusetts business
trust on June 4, 2012, and is registered with the Securities and Exchange Commission (“SEC”) under the Investment Company
Act of 1940, as amended (the “1940 Act”).
The
Trust currently consists of thirty-three exchange-traded funds that are offering shares. This report covers the fourteen funds (each a
“Fund” and collectively, the “Funds”) listed below. The shares of each Fund are listed and traded on The Nasdaq
Stock Market LLC (“Nasdaq”).
First
Trust NASDAQ Technology Dividend Index Fund – (ticker “TDIV”)
Multi-Asset
Diversified Income Index Fund – (ticker “MDIV”)
First
Trust S&P International Dividend Aristocrats ETF – (ticker “FID”)
First
Trust BuyWrite Income ETF – (ticker “FTHI”)
First
Trust Nasdaq BuyWrite Income ETF – (ticker “FTQI”)(1)
First
Trust Rising Dividend Achievers ETF – (ticker “RDVY”)
First
Trust Dorsey Wright Focus 5 ETF – (ticker “FV”)
First
Trust RBA American Industrial Renaissance® ETF – (ticker
“AIRR”)
First
Trust Dorsey Wright Momentum & Dividend ETF – (ticker “DDIV”)
First
Trust Dorsey Wright International Focus 5 ETF – (ticker “IFV”)
First
Trust Dorsey Wright Dynamic Focus 5 ETF – (ticker “FVC”)
First
Trust Indxx Innovative Transaction & Process ETF – (ticker “LEGR”)
First
Trust Nasdaq Artificial Intelligence and Robotics ETF – (ticker “ROBT”)
First
Trust International Developed Capital Strength ETF – (ticker “FICS”)
(1)
Effective on May 11, 2022, First Trust Hedged BuyWrite Income ETF (Nasdaq ticker “FTLB”) changed its
name
and ticker symbol to First Trust Nasdaq BuyWrite Income ETF (Nasdaq ticker “FTQI”).
Both
TDIV and FICS operate as a non-diversified series of the Trust. Each of MDIV, FID, FTHI, FTQI, RDVY, FV, AIRR, DDIV, IFV, FVC, LEGR and
ROBT operates as a diversified open-end management investment company as defined in Section 5(b) of the 1940 Act. 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, except for FTHI and FTQI, seeks 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 NASDAQ Technology Dividend Index Fund Multi-Asset Diversified Income Index Fund First Trust S&P International Dividend
Aristocrats ETF First Trust Rising Dividend Achievers ETF First Trust Dorsey Wright Focus 5 ETF First Trust RBA American Industrial
Renaissance® ETF First Trust Dorsey Wright Momentum &
Dividend ETF First Trust Dorsey Wright International Focus 5 ETF First Trust Dorsey Wright Dynamic Focus 5 ETF First Trust
Indxx Innovative Transaction & Process ETF First Trust Nasdaq Artificial Intelligence and Robotics ETF First Trust International
Developed Capital Strength ETF |
Nasdaq
Technology Dividend IndexTM Nasdaq US Multi-Asset Diversified
Income IndexSM S&P International Dividend Aristocrats
Index Nasdaq US Rising Dividend AchieversTM Index Dorsey
Wright Focus FiveTM Index Richard Bernstein Advisors American
Industrial Renaissance® Index Dorsey Wright Momentum
Plus Dividend YieldTM Index Dorsey Wright International Focus
FiveTM Index Dorsey Wright Dynamic Focus FiveTM
Index Indxx Blockchain Index Nasdaq CTA Artificial Intelligence and Robotics IndexSM
The International Developed Capital Strength IndexSM |
FTHI
and FTQI are actively managed exchange-traded funds. The primary investment objective of FTHI is to provide current income. FTHI’s
secondary investment objective is to provide capital appreciation. Under normal market conditions, FTHI pursues its investment objectives
by investing primarily in equity securities listed on U.S. exchanges and by utilizing an “option strategy” consisting of writing
(selling) U.S. exchange-traded covered call options on the Standard & Poor’s 500®
Index (the “S&P 500”). The Fund employs an option strategy in which it writes U.S. exchange-traded covered call options
on the S&P 500 in order to seek additional cash flow in the form of premiums on the options that may be distributed to shareholders
on a monthly basis. A premium is the income received by an investor who sells or writes an option contract to another party. The market
value of the option strategy may be up to 20% of the Fund’s overall NAV.
Notes
to Financial Statements (Continued)
First
Trust Exchange-Traded Fund VI
September
30, 2022
The
investment objective of FTQI is to provide current income. Under normal market conditions, FTQI pursues its investment objective by investing
primarily in equity securities listed on U.S. exchanges and by utilizing an “option strategy” consisting of writing (selling)
U.S. exchange-traded call options on the Nasdaq-100 Index® (the
“Nasdaq-100”). Under normal market conditions, FTQI will invest at least 80% of its net assets (plus any borrowings for investment
purposes) in the components of the Nasdaq Composite Index. FTQI employs an option strategy in which it writes U.S. exchange-traded call
options on the Nasdaq-100 in order to seek additional cash flow in the form of premiums on the options. A premium is the income received
by an investor who sells an option contract to another party. In exchange for the premiums received in connection with its written U.S.
exchange-traded call options on the Nasdaq-100, FTQI forfeits any upside potential of the Nasdaq-100 above the strike price of the written
call options. It is expected that FTQI will distribute premiums to shareholders on a monthly basis. The premiums received from the sale
of call options are expected to be FTQI’s primary source of income. Under normal market conditions, FTQI will seek to distribute
the majority of the option premiums collected. FTQI does not target a specific income level, but seeks to provide investors with current
income primarily from options premiums through writing calls with a notional value of 50-100% of FTQI’s assets.
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. Foreign securities are priced using data reflecting the earlier closing of the principal markets for those securities. Each
Fund’s NAV is calculated by dividing the value of all assets of each Fund (including accrued interest and dividends), less all liabilities
(including accrued expenses and dividends declared but unpaid), by the total number of shares outstanding.
Each
Fund’s investments are valued daily at market value or, in the absence of market value with respect to any portfolio securities,
at fair value. Market value prices represent readily available market quotations such as last sale or official closing prices from a national
or foreign exchange (i.e., a regulated market) and are primarily obtained from third-party pricing services. Fair value prices represent
any prices not considered market value prices and are either obtained from a third-party pricing service or are determined by the 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, preferred stocks, master limited partnerships (“MLPs”), real estate investment trusts (“REITs”), exchange-traded
funds, 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.
Securities
trading on foreign exchanges or over-the-counter markets that close prior to the NYSE close may be valued using a systematic fair valuation
model provided by a third-party pricing service. If these foreign securities meet certain criteria in relation to the valuation model,
their valuation is systematically adjusted to reflect the impact of movement in the U.S. market after the close of the foreign markets.
Shares
of open-end funds are valued based on NAV per share.
Securities
traded in an over-the-counter market are valued at the mean of their most recent bid and asked price, if available, and otherwise at their
last trade price.
Overnight
repurchase agreements are valued at amortized cost when it represents the most appropriate reflection of fair market value.
Notes
to Financial Statements (Continued)
First
Trust Exchange-Traded Fund VI
September
30, 2022
Exchange-traded
options contracts are valued at the closing price in the market where such contracts are principally traded. If no closing price is available,
exchange-traded options contracts are valued at the mean of their most recent bid and asked price, if available, and otherwise at their
closing bid price. Over-the-counter options contracts are valued at the mean of their most recent bid and asked price, if available, and
otherwise at their closing bid price.
U.S.
Treasuries are fair valued on the basis of valuations provided by a third-party pricing service approved by the Trust’s Board of
Trustees.
Fixed
income and other debt securities having a remaining maturity of sixty days or less when purchased are fair valued at cost adjusted for
amortization of premiums and accretion of discounts (amortized cost), provided the Advisor’s Pricing Committee has determined that
the use of amortized cost is an appropriate reflection of fair value given market and issuer-specific conditions existing at the time
of the determination. Factors that may be considered in determining the appropriateness of the use of amortized cost include, but are
not limited to, the following:
1)
|
the
credit conditions in the relevant market and changes thereto; |
2)
|
the
liquidity conditions in the relevant market and changes thereto; |
3)
|
the
interest rate conditions in the relevant market and changes thereto (such as significant changes in interest rates); |
4)
|
issuer-specific
conditions (such as significant credit deterioration); and |
5)
|
any
other market-based data the Advisor’s Pricing Committee considers relevant. In this regard, the Advisor’s Pricing Committee
may use last-obtained market-based data to assist it when valuing portfolio securities using amortized cost. |
Certain
securities may not be able to be priced by pre-established pricing methods. Such securities may be valued by the Advisor’s Pricing
Committee at fair value. These securities generally include, but are not limited to, restricted securities (securities which may not be
publicly sold without registration under the Securities Act of 1933, as amended) for which a third-party pricing service is unable to
provide a market price; securities whose trading has been formally suspended; a security whose market or fair value price is not available
from a pre-established pricing source; a security with respect to which an event has occurred that is likely to materially affect the
value of the security after the market has closed but before the calculation of a Fund’s NAV or make it difficult or impossible
to obtain a reliable market quotation; and a security whose price, as provided by the third-party pricing service, does not reflect the
security’s fair value. As a general principle, the current fair value of a security would appear to be the amount which the owner
might reasonably expect to receive for the security upon its current sale. When fair value prices are used, generally they will differ
from market quotations or official closing prices on the applicable exchanges. A variety of factors may be considered in determining the
fair value of such securities, including, but not limited to, the following:
1)
|
the
last sale price on the exchange on which they are principally traded or, for Nasdaq and AIM securities, the official closing price; |
2)
|
the
type of security; |
3)
|
the
size of the holding; |
4)
|
the
initial cost of the security; |
5)
|
transactions
in comparable securities; |
6)
|
price
quotes from dealers and/or third-party pricing services; |
7)
|
relationships
among various securities; |
8)
|
information
obtained by contacting the issuer, analysts, or the appropriate stock exchange; |
9)
|
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. |
If
the securities in question are foreign securities, the following additional information may be considered:
1)
|
the
value of similar foreign securities traded on other foreign markets; |
2)
|
ADR
trading of similar securities; |
3)
|
closed-end
fund or exchange-traded fund trading of similar securities; |
4)
|
foreign
currency exchange activity; |
5)
|
the
trading prices of financial products that are tied to baskets of foreign securities; |
6)
|
factors
relating to the event that precipitated the pricing problem; |
7)
|
whether
the event is likely to recur; |
8)
|
whether
the effects of the event are isolated or whether they affect entire markets, countries or regions; and |
9)
|
other
relevant factors. |
Notes
to Financial Statements (Continued)
First
Trust Exchange-Traded Fund VI
September
30, 2022
In
addition, differences between the prices used to calculate a Fund’s NAV and the prices used by such Fund’s corresponding index
could result in a difference between a Fund’s performance and the performance of its underlying index.
Because
foreign markets may be open on different days than the days during which investors may transact in the shares of a Fund, the value of
the Fund’s securities may change on the days when investors are not able to transact in the shares of the Fund. The value of securities
denominated in foreign currencies is converted into U.S. dollars using exchange rates determined daily as of the close of regular trading
on the NYSE. Any use of a different rate from the rates used by a relevant index may adversely affect the Fund’s ability to track
the index.
The
Funds are subject to fair value accounting standards that define fair value, establish the framework for measuring fair value and provide
a three-level hierarchy for fair valuation based upon the inputs to the valuation as of the measurement date. The three levels of the
fair value hierarchy are as follows:
•
|
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 September 30, 2022, is included with each Fund’s
Portfolio of Investments.
In
December 2020, the SEC adopted Rule 2a-5 under the 1940 Act, establishing requirements to determine fair value in good faith for purposes
of the 1940 Act. The rule permits fund boards to designate a fund’s investment adviser to perform fair value determinations, subject
to board oversight and certain other conditions. The rule also defines when market quotations are “readily available” for
purposes of the 1940 Act and requires a fund to fair value a portfolio investment when a market quotation is not readily available. The
SEC also adopted new Rule 31a-4 under the 1940 Act, which sets forth recordkeeping requirements associated with fair value determinations.
The compliance date for Rule 2a-5 and Rule 31a-4 was September 8, 2022.
Effective
September 8, 2022 and pursuant to the requirements of Rule 2a-5, the Trust’s Board of Trustees designated the Advisor as its valuation
designee to perform fair value determinations and approved new Advisor Valuation Procedures for the Trust.
B. Option
Contracts
FTHI
and FTQI are subject to equity price risk in the normal course of pursuing their investment objectives. FTHI may write (sell) U.S. exchange-traded
covered call options on the S&P 500 and FTQI may write (sell) U.S. exchange-traded call options on the Nasdaq-100, to hedge against
changes in the value of equities. Additionally, these two Funds seek to generate additional income, in the form of premiums received,
from writing (selling) the options. FTHI may write (sell) covered call options or put options and FTQI may write (sell) call options (“options”)
on all or a portion of the equity securities held in their respective portfolios and on securities indices in their respective portfolios
as determined to be appropriate by the Advisor, consistent with their investment objectives. Options on securities indices are designed
to reflect price fluctuations in a group of securities or segment of the securities market rather than price fluctuations in a single
security and are similar to options on single securities, except that the exercise of securities index options requires cash settlement
payments and does not involve the actual purchase or sale of securities. FTHI will not write (sell) “naked” or uncovered options.
When a Fund writes (sells) an option, an amount equal to the premium received by the Fund is included in “Options written, at value”
on the Statements of Assets and Liabilities. Options are marked-to-market daily and their value will be affected by changes in the value
and dividend rates of the underlying equity securities, changes in interest rates, changes in the
Notes
to Financial Statements (Continued)
First
Trust Exchange-Traded Fund VI
September
30, 2022
actual
or perceived volatility of the securities markets and the underlying equity securities and the remaining time to the options’ expiration.
The value of options may also be adversely affected if the market for the options becomes less liquid or trading volume diminishes.
Options
written (sold) by FTHI and FTQI will either be exercised, expire, or be canceled pursuant to a closing transaction. If an index option
written (sold) by either of these two Funds is exercised, the Fund would be obligated to deliver cash equal to the difference between
the closing price of the stock index and the exercise price of the option expressed in dollars times a specified multiple. If the price
of the index is less than the option’s strike price, the index option will likely expire without being exercised. In the case of
a stock option, if the price of the underlying equity security exceeds the option’s exercise price, it is likely that the option
holder will exercise the option. In this case, the option premium received by the Fund will be added to the amount realized on the sale
of the underlying security for purposes of determining gain or loss. If the price of the underlying equity security is less than the option’s
strike price, the option will likely expire without being exercised. The option premium received by each Fund will, in this case, be treated
as short-term capital gain on the expiration date of the option. Gain or loss on options is presented separately as “Net realized
gain (loss) on written options contracts” on the Statements of Operations.
The
index options that FTHI and FTQI write (sell) give the option holder the right, but not the obligation, to receive an amount of cash based
on the difference between the closing level of the stock index and the exercise price on or prior to the option’s expiration date.
The stock options that FTHI and FTQI write (sell) give the option holder the right, but not the obligation, to purchase securities from
each Fund at the strike price on or prior to the option’s expiration date. The ability to successfully implement the writing (selling)
of call, covered call, or put options depends on the ability of the Advisor to predict pertinent market movements, which cannot be assured.
As the writer (seller) of a covered option, FTHI foregoes, during the option’s life, the opportunity to profit from increases in
the market value of the security covering the option above the sum of the premium and the strike price of the option, but has retained
the risk of loss should the price of the underlying security decline. The writer (seller) of an option has no control over the time when
it may be required to fulfill its obligation as a writer (seller) of the option. Once an option writer (seller) has received an exercise
notice, it cannot effect a closing purchase transaction in order to terminate its obligation under the option and must deliver the underlying
security to the option holder at the exercise price.
C. 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 except that certain dividends from foreign securities are recorded as
soon as the information becomes available after the ex-dividend date. Interest income is recorded daily 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 MLPs generally are comprised of return of capital and investment income. A Fund records estimated
return of capital and investment income based on historical information available from each MLP. These estimates may subsequently be revised
based on information received from the MLPs after their tax reporting periods are concluded.
Distributions
received from a Fund’s investments in REITs may be comprised of return of capital, capital gains, and income. The actual character
of the amounts received during the year are not known until after the REITs’ fiscal year end. A Fund records the character of distributions
received from the REITs during the year based on estimates available. The characterization of distributions received by a Fund may be
subsequently revised based on information received from the REITs after their tax reporting periods conclude.
D. Foreign
Currency
The
books and records of the Funds are maintained in U.S. dollars. Foreign currencies, investments and other assets and liabilities are translated
into U.S. dollars at the exchange rates prevailing at the end of the period. Purchases and sales of investments and items of income and
expense are translated on the respective dates of such transactions. Unrealized gains and losses on assets and liabilities, other than
investments in securities, which result from changes in foreign currency exchange rates have been included in “Net change in unrealized
appreciation (depreciation) on foreign currency translation” on the Statements of Operations. Unrealized gains and losses on investments
in securities which result from changes in foreign exchange rates are included with fluctuations arising from changes in market price
and are included in “Net change in unrealized appreciation (depreciation) on investments” on the Statements of Operations.
Net realized foreign currency gains and losses include the effect of changes in exchange rates between trade date and settlement date
on investment security transactions, foreign currency transactions and interest and dividends received and are included in “Net
realized gain (loss) on foreign currency transactions” on the Statements of Operations. The portion of foreign currency gains
Notes
to Financial Statements (Continued)
First
Trust Exchange-Traded Fund VI
September
30, 2022
and
losses related to fluctuations in exchange rates between the initial purchase settlement date and subsequent sale trade date is included
in “Net realized gain (loss) on investments” on the Statements of Operations.
E. Affiliated
Transactions
MDIV,
FV, IFV, and FVC invest in securities of affiliated funds. Each Fund’s investment performance and risks are related to the investment
performance and risks of the affiliated funds.
Amounts
relating to these investments in MDIV at September 30, 2022, and for the fiscal year then ended are:
Security
Name |
Shares
at 9/30/2022 |
Value
at 9/30/2021 |
Purchases
|
Sales
|
Change
in Unrealized Appreciation (Depreciation) |
Realized
Gain (Loss) |
Value
at 9/30/2022 |
Dividend
Income |
First
Trust Tactical High Yield ETF |
2,396,347
|
$ 94,677,062
|
$ 40,940,458
|
$ (22,321,517)
|
$ (20,775,057)
|
$ (692,929)
|
$ 91,828,017
|
$ 6,142,722
|
Notes
to Financial Statements (Continued)
First
Trust Exchange-Traded Fund VI
September
30, 2022
Amounts
relating to these investments in FV at September 30, 2022, and for the fiscal year then ended are:
Security
Name |
Shares
at 9/30/2022 |
Value
at 9/30/2021 |
|
Purchases
|
|
Sales
|
|
Change
in Unrealized Appreciation (Depreciation) |
|
Realized
Gain (Loss) |
|
Value
at 9/30/2022 |
|
Dividend
Income |
First
Trust Consumer Discretionary AlphaDEX® Fund |
—
|
$552,125,467
|
|
$489,487,672
|
|
$ (977,311,520)
|
|
$ (184,912,166)
|
|
$120,610,547
|
|
$ —
|
|
$2,332,656
|
First
Trust Energy AlphaDEX® Fund |
37,233,368
|
—
|
|
726,588,423
|
|
(140,809,237)
|
|
(449,929)
|
|
(4,116,382)
|
|
581,212,875
|
|
9,631,857
|
First
Trust Industrials/Producer Durables AlphaDEX® Fund |
11,002,143
|
552,378,296
|
|
554,528,798
|
|
(474,853,062)
|
|
(122,819,764)
|
|
(3,685,797)
|
|
505,548,471
|
|
4,524,721
|
First
Trust Materials AlphaDEX® Fund |
8,230,205
|
—
|
|
756,865,736
|
|
(197,537,048)
|
|
(128,236,435)
|
|
(4,191,520)
|
|
426,900,733
|
|
5,632,668
|
First
Trust Nasdaq Food & Beverage ETF |
21,438,168
|
—
|
|
622,090,618
|
|
(18,971,846)
|
|
(69,879,781)
|
|
(714,898)
|
|
532,524,093
|
|
3,715,674
|
First
Trust Nasdaq Oil & Gas ETF |
22,047,884
|
—
|
|
1,123,919,311
|
|
(693,393,430)
|
|
76,138,600
|
|
34,611,071
|
|
541,275,552
|
|
9,808,801
|
First
Trust Nasdaq Transportation ETF |
—
|
513,660,400
|
|
362,824,428
|
|
(857,633,271)
|
|
(111,437,489)
|
|
92,585,932
|
|
—
|
|
1,240,830
|
First
Trust NASDAQ-100-Technology Sector Index Fund |
—
|
545,036,466
|
|
347,535,180
|
|
(816,886,894)
|
|
(340,249,141)
|
|
264,564,389
|
|
—
|
|
41,431
|
First
Trust Technology AlphaDEX® Fund |
—
|
528,789,844
|
|
126,483,451
|
|
(684,609,978)
|
|
(288,506,301)
|
|
317,842,984
|
|
—
|
|
—
|
|
|
$2,691,990,473
|
|
$5,110,323,617
|
|
$(4,862,006,286)
|
|
$(1,170,352,406)
|
|
$817,506,326
|
|
$2,587,461,724
|
|
$36,928,638
|
Notes
to Financial Statements (Continued)
First
Trust Exchange-Traded Fund VI
September
30, 2022
Amounts
relating to these investments in IFV at September 30, 2022, and for the fiscal year then ended are:
Security
Name |
Shares
at 9/30/2022 |
Value
at 9/30/2021 |
|
Purchases
|
|
Sales
|
|
Change
in Unrealized Appreciation (Depreciation) |
|
Realized
Gain (Loss) |
|
Value
at 9/30/2022 |
|
Dividend
Income |
First
Trust BICK Index Fund |
1,148,699
|
$ 52,406,007
|
|
$ 30,335,962
|
|
$ (54,810,146)
|
|
$ (9,225,736)
|
|
$ 8,541,053
|
|
$ 27,247,140
|
|
$ 48,538
|
First
Trust Chindia ETF |
788,140
|
—
|
|
32,950,175
|
|
(2,490,543)
|
|
(3,006,866)
|
|
53,320
|
|
27,506,086
|
|
46,949
|
First
Trust Dow Jones Global Select Dividend Index Fund |
1,455,665
|
—
|
|
41,756,094
|
|
(4,815,221)
|
|
(9,493,741)
|
|
(459,103)
|
|
26,988,029
|
|
1,272,651
|
First
Trust Eurozone AlphaDEX® Fund |
—
|
—
|
|
54,095,628
|
|
(48,158,214)
|
|
—
|
|
(5,937,414)
|
|
—
|
|
280,215
|
First
Trust Germany AlphaDEX® Fund |
—
|
52,146,239
|
|
1,776,695
|
|
(46,009,598)
|
|
(6,627,154)
|
|
(1,286,182)
|
|
—
|
|
146,489
|
First
Trust India NIFTY 50 Equal Weight ETF |
691,061
|
57,888,541
|
|
635,412
|
|
(23,785,798)
|
|
(7,879,085)
|
|
2,739,073
|
|
29,598,143
|
|
1,666,894
|
First
Trust Latin America AlphaDEX® Fund |
1,765,963
|
—
|
|
42,270,056
|
|
(6,550,570)
|
|
(7,315,963)
|
|
(730,883)
|
|
27,672,640
|
|
1,371,007
|
First
Trust Switzerland AlphaDEX® Fund |
—
|
50,668,510
|
|
1,607,980
|
|
(44,869,379)
|
|
(10,736,246)
|
|
3,329,135
|
|
—
|
|
240,132
|
First
Trust United Kingdom AlphaDEX® Fund |
—
|
51,626,570
|
|
4,221,806
|
|
(43,503,919)
|
|
3,024,861
|
|
(15,369,318)
|
|
—
|
|
1,372,925
|
|
|
$264,735,867
|
|
$209,649,808
|
|
$(274,993,388)
|
|
$(51,259,930)
|
|
$(9,120,319)
|
|
$139,012,038
|
|
$6,445,800
|
Notes
to Financial Statements (Continued)
First
Trust Exchange-Traded Fund VI
September
30, 2022
Amounts
relating to these investments in FVC at September 30, 2022, and for the fiscal year then ended are:
Security
Name |
Shares
at 9/30/2022 |
Value
at 9/30/2021 |
|
Purchases
|
|
Sales
|
|
Change
in Unrealized Appreciation (Depreciation) |
|
Realized
Gain (Loss) |
|
Value
at 9/30/2022 |
|
Dividend
Income |
First
Trust Consumer Discretionary AlphaDEX® Fund |
—
|
$43,565,016
|
|
$37,286,547
|
|
$ (75,949,685)
|
|
$ (15,174,892)
|
|
$10,273,014
|
|
$ —
|
|
$178,597
|
First
Trust Energy AlphaDEX® Fund |
2,000,658
|
—
|
|
71,385,000
|
|
(40,927,478)
|
|
(94,476)
|
|
867,225
|
|
31,230,271
|
|
498,208
|
First
Trust Enhanced Short Maturity ETF |
1,539,755
|
—
|
|
157,866,525
|
|
(66,124,344)
|
|
(257,253)
|
|
(146,661)
|
|
91,338,267
|
|
681,203
|
First
Trust Industrials/Producer Durables AlphaDEX® Fund |
591,177
|
43,584,937
|
|
55,819,497
|
|
(64,677,952)
|
|
(7,174,983)
|
|
(386,916)
|
|
27,164,583
|
|
270,838
|
First
Trust Materials AlphaDEX® Fund |
442,231
|
—
|
|
71,268,328
|
|
(42,348,912)
|
|
(5,308,534)
|
|
(672,360)
|
|
22,938,522
|
|
287,735
|
First
Trust Nasdaq Food & Beverage ETF |
1,151,936
|
—
|
|
62,524,664
|
|
(29,924,196)
|
|
(2,899,246)
|
|
(1,087,132)
|
|
28,614,090
|
|
174,632
|
First
Trust Nasdaq Oil & Gas ETF |
1,184,694
|
—
|
|
99,553,465
|
|
(81,550,151)
|
|
3,002,389
|
|
8,078,535
|
|
29,084,238
|
|
540,837
|
First
Trust Nasdaq Transportation ETF |
—
|
40,529,967
|
|
26,751,967
|
|
(65,960,213)
|
|
(9,206,661)
|
|
7,884,940
|
|
—
|
|
95,330
|
First
Trust NASDAQ-100-Technology Sector Index Fund |
—
|
43,005,865
|
|
25,610,473
|
|
(62,900,115)
|
|
(14,879,858)
|
|
9,163,635
|
|
—
|
|
3,183
|
First
Trust Technology AlphaDEX® Fund |
—
|
41,724,071
|
|
9,483,887
|
|
(53,543,678)
|
|
(15,497,908)
|
|
17,833,628
|
|
—
|
|
—
|
|
|
$212,409,856
|
|
$617,550,353
|
|
$(583,906,724)
|
|
$(67,491,422)
|
|
$51,807,908
|
|
$230,369,971
|
|
$2,730,563
|
F. 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.
G. 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
Notes
to Financial Statements (Continued)
First
Trust Exchange-Traded Fund VI
September
30, 2022
value
of the collateral provided for the loaned securities, (ii) a decline in the value of any investments made with cash collateral or (iii)
an increase in the value of the loaned securities if the borrower does not increase the collateral accordingly and the borrower fails
to return the securities. These events could also trigger adverse tax consequences for the Funds.
Under
the Funds’ Securities Lending Agency Agreement, the securities lending agent will generally bear the risk that a borrower may default
on its obligation to return loaned securities. Brown Brothers Harriman & Co. (“BBH”) acts as the Funds’ 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. During the fiscal year ended September 30, 2022, AIRR, LEGR and ROBT participated
in the securities lending program.
In
the event of a default by a borrower with respect to any loan, BBH 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 to exercise these remedies, a Fund sustains
losses as a result of a borrower’s default, BBH will indemnify the Fund by purchasing replacement securities at its own expense,
or paying the Funds 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.
H. 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 maintain 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 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 year ended September 30,
2022, were received as collateral for lending securities. There were no repurchase agreements held by the Funds as of September 30, 2022.
I. Dividends
and Distributions to Shareholders
Dividends
from net investment income, if any, are declared and paid monthly for MDIV, FTHI, and FTQI and quarterly for TDIV, FID, RDVY, FV, AIRR,
DDIV, IFV, FVC, LEGR, ROBT and FICS 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.
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.
The
tax character of distributions paid by each Fund during the fiscal year ended September 30, 2022, was as follows:
Notes
to Financial Statements (Continued)
First
Trust Exchange-Traded Fund VI
September
30, 2022
|
Distributions
paid from Ordinary Income |
|
Distributions
paid from Capital Gains |
|
Distributions
paid from Return of Capital |
First Trust NASDAQ Technology Dividend Index Fund
|
$ 37,869,712
|
|
$ —
|
|
$ —
|
Multi-Asset Diversified Income Index Fund
|
28,972,326
|
|
—
|
|
634,126
|
First Trust S&P International Dividend Aristocrats ETF
|
2,134,072
|
|
—
|
|
—
|
First Trust BuyWrite Income ETF
|
4,161,738
|
|
—
|
|
—
|
First Trust Nasdaq BuyWrite Income ETF
|
627,504
|
|
—
|
|
260,249
|
First Trust Rising Dividend Achievers ETF
|
140,979,372
|
|
—
|
|
—
|
First Trust Dorsey Wright Focus 5 ETF
|
27,189,651
|
|
—
|
|
—
|
First Trust RBA American Industrial Renaissance®
ETF
|
131,850
|
|
—
|
|
—
|
First Trust Dorsey Wright Momentum & Dividend ETF
|
1,904,422
|
|
—
|
|
—
|
First Trust Dorsey Wright International Focus 5 ETF
|
5,794,666
|
|
—
|
|
—
|
First Trust Dorsey Wright Dynamic Focus 5 ETF
|
1,833,976
|
|
—
|
|
—
|
First Trust Indxx Innovative Transaction & Process ETF
|
3,919,682
|
|
—
|
|
—
|
First Trust Nasdaq Artificial Intelligence and Robotics ETF
|
369,695
|
|
—
|
|
—
|
First Trust International Developed Capital Strength ETF
|
503,611
|
|
—
|
|
—
|
The
tax character of distributions paid by each Fund during the fiscal year ended September 30, 2021, was as follows:
|
Distributions
paid from Ordinary Income |
|
Distributions
paid from Capital Gains |
|
Distributions
paid from Return of Capital |
First Trust NASDAQ Technology Dividend Index Fund
|
$ 29,861,800
|
|
$ —
|
|
$ —
|
Multi-Asset Diversified Income Index Fund
|
18,794,700
|
|
—
|
|
6,052,472
|
First Trust S&P International Dividend Aristocrats ETF
|
1,317,871
|
|
—
|
|
—
|
First Trust BuyWrite Income ETF
|
2,535,233
|
|
—
|
|
—
|
First Trust Nasdaq BuyWrite Income ETF
|
228,251
|
|
—
|
|
—
|
First Trust Rising Dividend Achievers ETF
|
44,959,526
|
|
—
|
|
—
|
First Trust Dorsey Wright Focus 5 ETF
|
1,159,345
|
|
—
|
|
—
|
First Trust RBA American Industrial Renaissance®
ETF
|
68,330
|
|
—
|
|
—
|
First Trust Dorsey Wright Momentum & Dividend ETF
|
903,831
|
|
—
|
|
—
|
First Trust Dorsey Wright International Focus 5 ETF
|
2,584,930
|
|
—
|
|
—
|
First Trust Dorsey Wright Dynamic Focus 5 ETF
|
67,710
|
|
—
|
|
—
|
First Trust Indxx Innovative Transaction & Process ETF
|
1,414,166
|
|
—
|
|
—
|
First Trust Nasdaq Artificial Intelligence and Robotics ETF
|
333,100
|
|
—
|
|
—
|
First Trust International Developed Capital Strength ETF
|
39,101
|
|
—
|
|
—
|
Notes
to Financial Statements (Continued)
First
Trust Exchange-Traded Fund VI
September
30, 2022
As
of September 30, 2022, 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 NASDAQ Technology Dividend Index Fund
|
$ 3,501,257
|
|
$ (208,783,575)
|
|
$ (204,387,577)
|
Multi-Asset Diversified Income Index Fund
|
—
|
|
(226,942,167)
|
|
(50,345,965)
|
First Trust S&P International Dividend Aristocrats ETF
|
164,542
|
|
(5,293,852)
|
|
(11,563,360)
|
First Trust BuyWrite Income ETF
|
—
|
|
(18,375,410)
|
|
(9,220,265)
|
First Trust Nasdaq BuyWrite Income ETF
|
—
|
|
(2,123,105)
|
|
(2,620,426)
|
First Trust Rising Dividend Achievers ETF
|
15,703,375
|
|
(149,050,822)
|
|
(1,798,807,954)
|
First Trust Dorsey Wright Focus 5 ETF
|
1,291,405
|
|
(579,723,679)
|
|
(201,997,496)
|
First Trust RBA American Industrial Renaissance®
ETF
|
142,573
|
|
(33,161,068)
|
|
(22,256,509)
|
First Trust Dorsey Wright Momentum & Dividend ETF
|
221,298
|
|
(23,321,490)
|
|
(10,864,363)
|
First Trust Dorsey Wright International Focus 5 ETF
|
81,382
|
|
(144,990,579)
|
|
(22,207,775)
|
First Trust Dorsey Wright Dynamic Focus 5 ETF
|
222,818
|
|
(60,339,002)
|
|
(10,572,639)
|
First Trust Indxx Innovative Transaction & Process ETF
|
115,148
|
|
(4,605,254)
|
|
(27,416,714)
|
First Trust Nasdaq Artificial Intelligence and Robotics ETF
|
319,975
|
|
(23,210,981)
|
|
(76,034,434)
|
First Trust International Developed Capital Strength ETF
|
20,290
|
|
(1,161,324)
|
|
(5,722,985)
|
J. Income
Taxes
Each
Fund intends to continue to qualify as a regulated investment company by complying with the requirements under Subchapter M of the Internal
Revenue Code of 1986, as amended, which includes distributing substantially all of its net investment income and net realized gains to
shareholders. Accordingly, no provision has been made for federal and state income taxes. However, due to the timing and amount of distributions,
each Fund may be subject to an excise tax of 4% of the amount by which approximately 98% of each Fund’s taxable income exceeds the
distributions from such taxable income for the calendar year.
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 of the Funds, with the exception of FICS, taxable years ended
2019, 2020, 2021 and 2022 remain open to federal and state audit. The taxable years ended 2021 and 2022 remain open to federal and state
audit for FICS. As of September 30, 2022, management has evaluated the application of these standards to the Funds and has determined
that no provision for income tax is required in the Funds’ financial statements for uncertain tax positions.
The
Funds intend to utilize provisions of the federal income tax laws, which allow them to carry a realized capital loss forward indefinitely
following the year of the loss and offset such loss against any future realized capital gains. The Funds are subject to certain limitations
under U.S. tax rules on the use of capital loss carryforwards and net unrealized built-in losses. These limitations apply when there has
been a 50% change in ownership. At September 30, 2022, for federal income tax purposes, each applicable Fund had a capital loss carryforward
available that is shown in the table below, to the extent provided by regulations, to offset future capital gains.
Notes
to Financial Statements (Continued)
First
Trust Exchange-Traded Fund VI
September
30, 2022
|
Non-Expiring
Capital Loss Carryforward |
First Trust NASDAQ Technology Dividend Index Fund
|
$ 208,783,575
|
Multi-Asset Diversified Income Index Fund
|
226,942,167
|
First Trust S&P International Dividend Aristocrats ETF
|
5,293,852
|
First Trust BuyWrite Income ETF
|
18,375,410
|
First Trust Nasdaq BuyWrite Income ETF
|
2,123,105
|
First Trust Rising Dividend Achievers ETF
|
149,050,822
|
First Trust Dorsey Wright Focus 5 ETF
|
579,723,679
|
First Trust RBA American Industrial Renaissance®
ETF
|
33,161,068
|
First Trust Dorsey Wright Momentum & Dividend ETF
|
23,321,490
|
First Trust Dorsey Wright International Focus 5 ETF
|
144,990,579
|
First Trust Dorsey Wright Dynamic Focus 5 ETF
|
60,339,002
|
First Trust Indxx Innovative Transaction & Process ETF
|
4,605,254
|
First Trust Nasdaq Artificial Intelligence and Robotics ETF
|
23,210,981
|
First Trust International Developed Capital Strength ETF
|
1,161,324
|
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 year ended September 30, 2022, 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 NASDAQ Technology Dividend Index Fund
|
$ 242
|
|
$ (160,295,622)
|
|
$ 160,295,380
|
Multi-Asset Diversified Income Index Fund
|
3,354,116
|
|
(6,332,597)
|
|
2,978,481
|
First Trust S&P International Dividend Aristocrats ETF
|
(30,711)
|
|
(131,854)
|
|
162,565
|
First Trust BuyWrite Income ETF
|
3,757,034
|
|
(497,007)
|
|
(3,260,027)
|
First Trust Nasdaq BuyWrite Income ETF
|
595,956
|
|
(238,796)
|
|
(357,160)
|
First Trust Rising Dividend Achievers ETF
|
—
|
|
(408,145,911)
|
|
408,145,911
|
First Trust Dorsey Wright Focus 5 ETF
|
—
|
|
(871,252,353)
|
|
871,252,353
|
First Trust RBA American Industrial Renaissance®
ETF
|
—
|
|
(18,596,820)
|
|
18,596,820
|
First Trust Dorsey Wright Momentum & Dividend ETF
|
—
|
|
(5,165,221)
|
|
5,165,221
|
First Trust Dorsey Wright International Focus 5 ETF
|
—
|
|
(4,556,264)
|
|
4,556,264
|
First Trust Dorsey Wright Dynamic Focus 5 ETF
|
—
|
|
(50,177,178)
|
|
50,177,178
|
First Trust Indxx Innovative Transaction & Process ETF
|
(56,271)
|
|
(2,088,490)
|
|
2,144,761
|
First Trust Nasdaq Artificial Intelligence and Robotics ETF
|
305,363
|
|
(16,580,301)
|
|
16,274,938
|
First Trust International Developed Capital Strength ETF
|
10,057
|
|
782,557
|
|
(792,614)
|
Notes
to Financial Statements (Continued)
First
Trust Exchange-Traded Fund VI
September
30, 2022
As
of September 30, 2022, the aggregate cost, gross unrealized appreciation, gross unrealized depreciation, and net unrealized appreciation/(depreciation)
on investments (including short positions and derivatives, if any) for federal income tax purposes were as follows:
|
Tax
Cost |
|
Gross
Unrealized Appreciation |
|
Gross
Unrealized (Depreciation) |
|
Net
Unrealized Appreciation (Depreciation) |
First Trust NASDAQ Technology Dividend Index Fund
|
$ 1,631,544,912
|
|
$ 79,409,827
|
|
$ (283,797,404)
|
|
$ (204,387,577)
|
Multi-Asset Diversified Income Index Fund
|
492,887,606
|
|
14,669,020
|
|
(65,014,985)
|
|
(50,345,965)
|
First Trust S&P International Dividend Aristocrats ETF
|
55,057,084
|
|
594,676
|
|
(12,137,237)
|
|
(11,542,561)
|
First Trust BuyWrite Income ETF
|
97,387,126
|
|
1,067,506
|
|
(10,287,756)
|
|
(9,220,250)
|
First Trust Nasdaq BuyWrite Income ETF
|
20,987,563
|
|
182,297
|
|
(2,802,723)
|
|
(2,620,426)
|
First Trust Rising Dividend Achievers ETF
|
9,073,482,529
|
|
85,689,108
|
|
(1,884,497,062)
|
|
(1,798,807,954)
|
First Trust Dorsey Wright Focus 5 ETF
|
2,789,459,220
|
|
76,027,272
|
|
(278,024,768)
|
|
(201,997,496)
|
First Trust RBA American Industrial Renaissance®
ETF
|
192,152,537
|
|
8,747,973
|
|
(31,004,482)
|
|
(22,256,509)
|
First Trust Dorsey Wright Momentum & Dividend ETF
|
77,531,607
|
|
499,783
|
|
(11,364,146)
|
|
(10,864,363)
|
First Trust Dorsey Wright International Focus 5 ETF
|
161,219,813
|
|
538,507
|
|
(22,746,282)
|
|
(22,207,775)
|
First Trust Dorsey Wright Dynamic Focus 5 ETF
|
240,942,610
|
|
2,891,695
|
|
(13,464,334)
|
|
(10,572,639)
|
First Trust Indxx Innovative Transaction & Process ETF
|
128,015,310
|
|
1,775,980
|
|
(29,188,661)
|
|
(27,412,681)
|
First Trust Nasdaq Artificial Intelligence and Robotics ETF
|
254,404,770
|
|
5,374,643
|
|
(81,396,583)
|
|
(76,021,940)
|
First Trust International Developed Capital Strength ETF
|
25,064,190
|
|
13,128
|
|
(5,731,023)
|
|
(5,717,895)
|
K. Expenses
Expenses
that are directly related to the Funds are charged to First Trust pursuant to the Investment Management Agreement, with the exception
of advisory fees, distribution and service fees pursuant to a Rule 12b-1 plan, if any, brokerage expenses, pro rata share of fees and
expenses attributable to investments in other investment companies (“acquired fund fees and expenses”), taxes, interest, and
extraordinary expenses, which are paid by each respective Fund. See Note 3 relating to a reduction in MDIV’s annual unitary management
fee. Expenses, other than the investment advisory fee and other excluded expenses, are paid by the Advisor.
First
Trust has entered into licensing agreements with the following “Licensors” for the respective Funds:
Fund
|
Licensor
|
First
Trust NASDAQ Technology Dividend Index Fund |
Nasdaq,
Inc. |
Multi-Asset
Diversified Income Index Fund |
Nasdaq,
Inc. |
First
Trust S&P International Dividend Aristocrats ETF |
S&P
Dow Jones Indices, LLC |
First
Trust Rising Dividend Achievers ETF |
Nasdaq,
Inc. |
First
Trust Dorsey Wright Focus 5 ETF |
Dorsey,
Wright & Associates, LLC |
First
Trust RBA American Industrial Renaissance® ETF |
Richard
Bernstein Advisors LLC |
First
Trust Dorsey Wright Momentum & Dividend ETF |
Nasdaq,
Inc. |
First
Trust Dorsey Wright International Focus 5 ETF |
Dorsey,
Wright & Associates, LLC |
First
Trust Dorsey Wright Dynamic Focus 5 ETF |
Dorsey,
Wright & Associates, LLC |
First
Trust Indxx Innovative Transaction & Process ETF |
Indxx
Inc. |
First
Trust Nasdaq Artificial Intelligence and Robotics ETF |
Nasdaq,
Inc. |
First
Trust International Developed Capital Strength ETF |
Nasdaq,
Inc. |
The
respective license agreements allow for the use by First Trust of each Fund’s respective index and of certain trademarks and trade
names of the Licensor. The Funds are sub-licensees to the applicable license agreements.
Notes
to Financial Statements (Continued)
First
Trust Exchange-Traded Fund VI
September
30, 2022
3. Investment
Advisory Fee, Affiliated Transactions and Other Fee Arrangements
First
Trust, the investment advisor to the Funds, is a limited partnership with one limited partner, Grace Partners of DuPage L.P., and one
general partner, The Charger Corporation. The Charger Corporation is an Illinois corporation controlled by James A. Bowen, Chief Executive
Officer of First Trust. First Trust is responsible for the selection and ongoing monitoring of the securities in each Fund’s portfolio,
managing the Funds’ business affairs and providing certain administrative services necessary for the management of the Funds.
Each
Fund pays First Trust an annual unitary management fee based on each Fund’s average daily net assets at a rate set forth below:
|
Rate
|
First
Trust NASDAQ Technology Dividend Index Fund |
0.50%
|
Multi-Asset
Diversified Income Index Fund |
0.60%
|
First
Trust S&P International Dividend Aristocrats ETF |
0.60%
|
First
Trust BuyWrite Income ETF |
0.85%
|
First
Trust Nasdaq BuyWrite Income ETF |
0.85%
|
First
Trust Rising Dividend Achievers ETF |
0.50%
|
First
Trust Dorsey Wright Focus 5 ETF |
0.30%
|
First
Trust RBA American Industrial Renaissance® ETF |
0.70%
|
First
Trust Dorsey Wright Momentum & Dividend ETF |
0.60%
|
First
Trust Dorsey Wright International Focus 5 ETF |
0.30%
|
First
Trust Dorsey Wright Dynamic Focus 5 ETF |
0.30%
|
First
Trust Indxx Innovative Transaction & Process ETF |
0.65%
|
First
Trust Nasdaq Artificial Intelligence and Robotics ETF |
0.65%
|
First
Trust International Developed Capital Strength ETF |
0.70%
|
In
addition, MDIV, FV, IFV, and FVC incur pro rata share of fees and acquired fund fees and expenses. The total of the unitary management
fee and acquired fund fees and expenses represents each Fund’s total annual operating expenses.
First
Trust is responsible for the expenses of each Fund including the cost of transfer agency, custody, fund administration, licensing fees,
if applicable, legal, audit, and other services, but excluding fee payments under the Investment Management Agreement, interest, taxes,
brokerage commissions and other expenses associated with the execution of portfolio transactions, distributions and service fees pursuant
to a Rule 12b-1 plan, if any, acquired fund fees and expenses, and extraordinary expenses, which are paid by each respective Fund. First
Trust also provides fund reporting services to the Funds for a flat annual fee in the amount of $9,250 per Fund, which is covered under
the annual unitary management fee.
During
the fiscal year ended September 30, 2022, ROBT received a payment from the Advisor of $1,987 in connection with a trade error.
Pursuant
to a contractual agreement between the Trust, on behalf of MDIV, and First Trust, the management fees paid to First Trust will be reduced
by the proportional amount of the management fees earned by MDIV on assets invested in other investment companies advised by First Trust.
This contractual agreement shall continue until the earlier of (i) its termination at the direction of the Trust’s Board of Trustees
or (ii) the termination of MDIV’s investment management agreement with First Trust; however, it is expected to remain in place at
least until January 31, 2023. First Trust does not have the right to recover the waived fees on the shares of investment companies advised
by First Trust. For the year ended September 30, 2022, MDIV waived $555,573 of management fees.
The
Trust has multiple service agreements with Brown Brothers Harriman & Co. (“BBH”). Under the service agreements, BBH performs
custodial, fund accounting, certain administrative services, and transfer agency services for each Fund. As custodian, BBH is responsible
for custody of each Fund’s assets. As fund accountant and administrator, BBH is responsible for maintaining the books and records
of each Fund’s securities and cash. As transfer agent, BBH is responsible for maintaining shareholder records for each Fund.
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
Notes
to Financial Statements (Continued)
First
Trust Exchange-Traded Fund VI
September
30, 2022
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 year ended September 30, 2022, the cost of purchases and proceeds from sales of investment securities for each Fund, excluding
short-term investments and in-kind transactions, were as follows:
|
Purchases
|
|
Sales
|
First
Trust NASDAQ Technology Dividend Index Fund |
$ 616,115,477
|
|
$ 612,999,941
|
Multi-Asset
Diversified Income Index Fund |
402,578,657
|
|
400,871,685
|
First
Trust S&P International Dividend Aristocrats ETF |
24,601,157
|
|
22,959,637
|
First
Trust BuyWrite Income ETF |
48,589,467
|
|
50,792,045
|
First
Trust Nasdaq BuyWrite Income ETF |
12,875,068
|
|
12,938,229
|
First
Trust Rising Dividend Achievers ETF |
4,790,829,622
|
|
4,780,696,286
|
First
Trust Dorsey Wright Focus 5 ETF |
2,272,871,425
|
|
2,281,398,606
|
First
Trust RBA American Industrial Renaissance® ETF |
79,611,672
|
|
79,011,781
|
First
Trust Dorsey Wright Momentum & Dividend ETF |
110,797,167
|
|
110,261,522
|
First
Trust Dorsey Wright International Focus 5 ETF |
207,120,095
|
|
207,042,064
|
First
Trust Dorsey Wright Dynamic Focus 5 ETF |
367,185,448
|
|
367,269,130
|
First
Trust Indxx Innovative Transaction & Process ETF |
32,029,319
|
|
30,937,774
|
First
Trust Nasdaq Artificial Intelligence and Robotics ETF |
103,592,862
|
|
86,390,542
|
First
Trust International Developed Capital Strength ETF |
17,830,154
|
|
17,929,177
|
|
|
|
|
For
the fiscal year ended September 30, 2022, the cost of in-kind purchases and proceeds from in-kind sales for each Fund were as follows:
|
Purchases
|
|
Sales
|
First
Trust NASDAQ Technology Dividend Index Fund |
$ 583,961,573
|
|
$ 343,724,649
|
Multi-Asset
Diversified Income Index Fund |
135,918,665
|
|
98,183,758
|
First
Trust S&P International Dividend Aristocrats ETF |
15,707,014
|
|
3,024,900
|
First
Trust BuyWrite Income ETF |
59,226,782
|
|
2,148,878
|
First
Trust Nasdaq BuyWrite Income ETF |
15,186,927
|
|
3,007,749
|
First
Trust Rising Dividend Achievers ETF |
5,941,936,015
|
|
2,490,251,103
|
First
Trust Dorsey Wright Focus 5 ETF |
2,837,452,192
|
|
2,580,607,680
|
First
Trust RBA American Industrial Renaissance® ETF |
67,375,750
|
|
102,388,655
|
First
Trust Dorsey Wright Momentum & Dividend ETF |
79,064,435
|
|
38,451,634
|
First
Trust Dorsey Wright International Focus 5 ETF |
2,529,713
|
|
67,951,324
|
First
Trust Dorsey Wright Dynamic Focus 5 ETF |
250,364,905
|
|
216,637,594
|
First
Trust Indxx Innovative Transaction & Process ETF |
21,472,250
|
|
12,690,709
|
First
Trust Nasdaq Artificial Intelligence and Robotics ETF |
47,186,813
|
|
50,794,243
|
First
Trust International Developed Capital Strength ETF |
31,745,144
|
|
14,884,394
|
5. Derivative
Transactions
The
following tables present the type of derivatives held by each Fund at September 30, 2022, the primary underlying risk exposure and the
location of these instruments as presented on the Statements of Assets and Liabilities.
Notes
to Financial Statements (Continued)
First
Trust Exchange-Traded Fund VI
September
30, 2022
FTHI
|
|
|
|
Asset
Derivatives |
|
Liability
Derivatives |
Derivative
Instrument |
|
Risk
Exposure |
|
Statements
of Assets and Liabilities Location |
|
Value
|
|
Statements
of Assets and Liabilities Location |
|
Value
|
Options
|
|
Equity
Risk |
|
—
|
|
$ —
|
|
Options
written, at value |
|
$ 79,346
|
FTQI
|
|
|
|
Asset
Derivatives |
|
Liability
Derivatives |
Derivative
Instrument |
|
Risk
Exposure |
|
Statements
of Assets and Liabilities Location |
|
Value
|
|
Statements
of Assets and Liabilities Location |
|
Value
|
Options
|
|
Equity
Risk |
|
—
|
|
$ —
|
|
Options
written, at value |
|
$ 73,507
|
The
following table presents the amount of net realized gain (loss) and change in net unrealized appreciation (depreciation) recognized for
the fiscal year ended September 30, 2022, on derivative instruments, as well as the primary underlying risk exposure associated with each
instrument.
|
Equity
Risk |
Statements
of Operations Location |
FTHI
|
FTQI
|
Net
realized gain (loss) on Purchased options contracts |
$—
|
$(31,942)
|
Net
realized gain (loss) on Written options contracts |
1,445,968
|
575,553
|
Net
change in unrealized gain (loss) on Purchased options contracts |
—
|
21,726
|
Net
change in unrealized gain (loss) on Written options contracts |
1,399,627
|
293,184
|
During
the fiscal year ended September 30, 2022, for FTHI, the premiums for written options opened were $6,736,368, and the premiums for written
options closed, exercised and expired were $5,389,713.
During
the fiscal year ended September 30, 2022, for FTQI, the premiums for written options opened were $2,175,224, and the premiums for written
options closed, exercised and expired were $1,872,801. During the fiscal year ended September 30, 2022, for FTQI, the premiums for purchased
options opened were $108,236, and the premiums for purchased options closed, exercised and expired were $289,667.
FTHI
and FTQI do not have the right to offset on financial assets and financial liabilities related to options contracts on the Statements
of Assets and Liabilities.
6. Creations,
Redemptions and Transaction Fees
Each
Fund generally issues and redeems its shares in primary market transactions through a creation and redemption mechanism and does not sell
or redeem individual shares. Instead, financial entities known as “Authorized Participants” have contractual arrangements
with a Fund or one of the Fund’s service providers to purchase and redeem Fund shares directly with the Fund in large blocks of
shares known as “Creation Units.” Prior to the start of trading on every business day, a Fund publishes through the National
Securities Clearing Corporation (“NSCC”) the “basket” of securities, cash or other assets that it will accept
in exchange for a Creation Unit of the Fund’s shares. An Authorized Participant that wishes to effectuate a creation of a Fund’s
shares deposits with the Fund the “basket” of securities, cash or other assets identified by the Fund that day, and then receives
the Creation Unit of the Fund’s shares in return for those assets. After purchasing a Creation Unit, the Authorized Participant
may continue to hold the Fund’s shares or sell them in the secondary market. The redemption process is the reverse of the purchase
process: the Authorized Participant redeems a Creation Unit of a Fund’s shares for a basket of securities, cash or other assets.
The combination of the creation and redemption process with secondary market trading in a Fund’s shares and underlying securities
provides arbitrage opportunities that are designed to help keep the market price of a Fund’s shares at or close to the NAV per share
of the Fund.
Each
Fund imposes fees in connection with the purchase of Creation Units. These fees may vary based upon various fact-based circumstances,
including, but not limited to, the composition of the securities included in the Creation Unit or the countries in which the transactions
are settled. The price for each Creation Unit will equal the daily NAV per share of a Fund times the number of shares in a Creation Unit,
plus the fees described above and, if applicable, any operational processing and brokerage costs, transfer fees, stamp taxes and part
or all of the spread between the expected bid and offer side of the market related to the securities comprising the creation basket.
Notes
to Financial Statements (Continued)
First
Trust Exchange-Traded Fund VI
September
30, 2022
Each
Fund also imposes fees in connection with the redemption of Creation Units. These fees may vary based upon various fact-based circumstances,
including, but not limited to, the composition of the securities included in the Creation Unit or the countries in which the transactions
are settled. The price received for each Creation Unit will equal the daily NAV per share of a Fund times the number of shares in a Creation
Unit, minus the fees described above and, if applicable, any operational processing and brokerage costs, transfer fees, stamp taxes and
part or all of the spread between the expected bid and offer side of the market related to the securities comprising the redemption basket.
Investors who use the services of a broker or other such intermediary in addition to an Authorized Participant to effect a redemption
of a Creation Unit may also be assessed an amount to cover the cost of such services. The redemption fee charged by a Fund will comply
with Rule 22c-2 of the 1940 Act which limits redemption fees to no more than 2% of the value of the shares redeemed.
7. Distribution
Plan
The
Board of Trustees adopted a Distribution and Service Plan pursuant to Rule 12b-1 under the 1940 Act. In accordance with the Rule 12b-1
plan, each Fund is authorized to pay an amount up to 0.25% of its average daily net assets each year to reimburse First Trust Portfolios
L.P. (“FTP”), the distributor of the Funds, for amounts expended to finance activities primarily intended to result in the
sale of Creation Units or to provide investor services. FTP may also use this amount to compensate securities dealers or other persons
that are Authorized Participants for providing distribution assistance, including broker-dealer and shareholder support and educational
and promotional services.
No
12b-1 fees are currently paid by the Funds, and pursuant to a contractual arrangement, no 12b-1 fees will be paid any time before January
31, 2024.
8. Indemnification
The
Trust, on behalf of the Funds, has a variety of indemnification obligations under contracts with its service providers. The Trust’s
maximum exposure under these arrangements is unknown. However, the Trust has not had prior claims or losses pursuant to these contracts
and expects the risk of loss to be remote.
9. Subsequent
Events
Management
has evaluated the impact of all subsequent events to the Funds through the date the financial statements were issued, and has determined
that there was the following subsequent event:
At
a meeting on October 24, 2022, the Board of Trustees approved a breakpoint pricing arrangement for each of the series of the Trust, including
the Funds. Pursuant to this arrangement, which is effective as of November 1, 2022, the management fee each Fund pays to First Trust,
as investment manager, will be discounted as the Fund’s net assets reach certain predefined levels.
Report
of Independent Registered Public Accounting Firm
To
the Shareholders and the Board of Trustees of First Trust Exchange-Traded Fund VI:
Opinion
on the Financial Statements and Financial Highlights
We
have audited the accompanying statements of assets and liabilities of First Trust NASDAQ Technology Dividend Index Fund, Multi-Asset Diversified
Income Index Fund, First Trust S&P International Dividend Aristocrats ETF, First Trust BuyWrite Income ETF, First Trust Nasdaq BuyWrite
Income ETF (formerly known as First Trust Hedged BuyWrite Income ETF), First Trust Rising Dividend Achievers ETF, First Trust Dorsey Wright
Focus 5 ETF, First Trust RBA American Industrial Renaissance®
ETF, First Trust Dorsey Wright Momentum & Dividend ETF, First Trust Dorsey Wright International Focus 5 ETF, First Trust Dorsey Wright
Dynamic Focus 5 ETF, First Trust Indxx Innovative Transaction & Process ETF, First Trust Nasdaq Artificial Intelligence and Robotics
ETF , and First Trust International Developed Capital Strength ETF (the “Funds”), each a series of the First Trust Exchange-Traded
Fund VI, including the portfolios of investments, as of September 30, 2022, and the related statements of operations for the year then
ended, and the changes in net assets and the financial highlights for the periods indicated in the table below, and the related notes.
In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of
each of the Funds as of September 30, 2022, and the results of their operations for the year then ended, the changes in their net assets
and the financial highlights for the periods listed in the table below in conformity with accounting principles generally accepted in
the United States of America.
Report
of Independent Registered Public Accounting Firm (Continued)
Individual
Funds Included in the Trust |
Statements
of Changes in Net Assets |
Financial
Highlights |
First
Trust NASDAQ Technology Dividend Index Fund |
For
the years ended September 30, 2022 and 2021 |
For
the years ended September 30, 2022, 2021, 2020, 2019 and 2018 |
Multi-Asset
Diversified Income Index Fund |
First
Trust S&P International Dividend Aristocrats ETF |
First
Trust BuyWrite Income ETF |
First
Trust Nasdaq BuyWrite Income ETF (formerly known as First Trust Hedged BuyWrite Income ETF) |
First
Trust Rising Dividend Achievers ETF |
First
Trust Dorsey Wright Focus 5 ETF |
First
Trust RBA American Industrial Renaissance® ETF |
First
Trust Dorsey Wright Momentum & Dividend ETF |
First
Trust Dorsey Wright International Focus 5 ETF |
First
Trust Dorsey Wright Dynamic Focus 5 ETF |
First
Trust Indxx Innovative Transaction & Process ETF |
For
the years ended September 30, 2022 and 2021 |
For
the years ended September 30, 2022, 2021, 2020, 2019 and for the period from January 24, 2018 (commencement of operations) through September
30, 2018 |
First
Trust Nasdaq Artificial Intelligence and Robotics ETF |
For
the years ended September 30, 2022 and 2021 |
For
the years ended September 30, 2022, 2021, 2020, 2019 and for the period from February 21, 2018 (commencement of operations) through September
30, 2018 |
First
Trust International Developed Capital Strength ETF |
For
the year ended September 30, 2022 and for the period from December 15, 2020 (commencement of operations) through September 30, 2021 |
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.
Report
of Independent Registered Public Accounting Firm (Continued)
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 September 30, 2022, by correspondence
with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our
audits provide a reasonable basis for our opinion.
Chicago,
Illinois
November
23, 2022
We
have served as the auditor of one or more First Trust investment companies since 2001.
Additional
Information
First
Trust Exchange-Traded Fund VI
September
30, 2022 (Unaudited)
Proxy
Voting Policies and Procedures
A
description of the policies and procedures that the Trust uses to determine how to vote proxies and information on how each Fund voted
proxies relating to 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 year ended September 30, 2022, the following percentages of income dividend paid by the Funds qualify for the dividends received
deduction available to corporations:
|
Dividends
Received Deduction |
First Trust NASDAQ Technology Dividend Index Fund
|
100.00%
|
Multi-Asset Diversified Income Index Fund
|
30.08%
|
First Trust S&P International Dividend Aristocrats ETF
|
0.00%
|
First Trust BuyWrite Income ETF
|
19.08%
|
First Trust Nasdaq BuyWrite Income ETF
|
19.25%
|
First Trust Rising Dividend Achievers ETF
|
100.00%
|
First Trust Dorsey Wright Focus 5 ETF
|
**
|
First Trust RBA American Industrial Renaissance®
ETF
|
100.00%
|
First Trust Dorsey Wright Momentum & Dividend ETF
|
65.29%
|
First Trust Dorsey Wright International Focus 5 ETF
|
**
|
First Trust Dorsey Wright Dynamic Focus 5 ETF
|
**
|
First Trust Indxx Innovative Transaction & Process ETF
|
19.63%
|
First Trust Nasdaq Artificial Intelligence and Robotics ETF
|
69.13%
|
First Trust International Developed Capital Strength ETF
|
0.00%
|
Additional
Information (Continued)
First
Trust Exchange-Traded Fund VI
September
30, 2022 (Unaudited)
For
the taxable year ended September 30, 2022, the following percentages of income dividend paid by the Funds are hereby designated as qualified
dividend income:
|
Qualified
Dividend Income |
First Trust NASDAQ Technology Dividend Index Fund
|
100.00%
|
Multi-Asset Diversified Income Index Fund
|
29.85%
|
First Trust S&P International Dividend Aristocrats ETF
|
87.45%
|
First Trust BuyWrite Income ETF
|
18.22%
|
First Trust Nasdaq BuyWrite Income ETF
|
19.74%
|
First Trust Rising Dividend Achievers ETF
|
100.00%
|
First Trust Dorsey Wright Focus 5 ETF
|
**
|
First Trust RBA American Industrial Renaissance®
ETF
|
100.00%
|
First Trust Dorsey Wright Momentum & Dividend ETF
|
71.95%
|
First Trust Dorsey Wright International Focus 5 ETF
|
**
|
First Trust Dorsey Wright Dynamic Focus 5 ETF
|
**
|
First Trust Indxx Innovative Transaction & Process ETF
|
100.00%
|
First Trust Nasdaq Artificial Intelligence and Robotics ETF
|
100.00%
|
First Trust International Developed Capital Strength ETF
|
100.00%
|
**The
actual qualified dividend income distributions will be reported to shareholders on Form 1099-DIV which will be sent to shareholders shortly
after calendar year end. Additionally, the actual percentage of income that qualified for the dividends received deduction will be available
to shareholders shortly after calendar year end.
A
portion of the ordinary dividends (including short-term capital gains) that MDIV, FTHI, FTQI, and DDIV paid to shareholders during the
taxable year ended September 30, 2022, may be eligible for the Qualified Business Income (QBI) Deduction under the Internal Revenue Code
of 1986, as amended, section 199A for the aggregate dividends the Funds received from the underlying Real Estate Investment Trusts (REITs)
they invest in.
The
following Funds met the requirements of Section 853 of the Internal Revenue Code of 1986, as amended, and elect to pass through to its
shareholders credit for foreign taxes paid. For the taxable year ended September 30, 2022, the total amount of income received by the
Funds from sources within foreign countries and possessions of the United States and of taxes paid to such countries is as follows:
|
Gross
Foreign Income |
|
Foreign
Taxes Paid |
|
Amount
|
|
Per
Share |
|
Amount
|
|
Per
Share |
First Trust S&P International Dividend Aristocrats ETF
|
$ 2,766,582
|
|
$ 0.86
|
|
$ 263,783
|
|
$ 0.08
|
First Trust Indxx Innovative Transaction & Process ETF
|
4,087,700
|
|
1.24
|
|
356,094
|
|
0.11
|
First Trust International Developed Capital Strength ETF
|
745,941
|
|
0.99
|
|
74,196
|
|
0.10
|
The
foreign taxes paid will be reported to shareholders on Form 1099-DIV which will be sent to shareholders shortly after the calendar year
end. Gross foreign income and foreign taxes paid will be posted on each Fund’s website and disclosed in the tax letter.
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
Additional
Information (Continued)
First
Trust Exchange-Traded Fund VI
September
30, 2022 (Unaudited)
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.
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
Additional
Information (Continued)
First
Trust Exchange-Traded Fund VI
September
30, 2022 (Unaudited)
“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 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
Additional
Information (Continued)
First
Trust Exchange-Traded Fund VI
September
30, 2022 (Unaudited)
countries.
Investments in non-U.S. securities may involve higher costs than investments in U.S. securities, including higher transaction and custody
costs, as well as additional taxes imposed by non-U.S. governments. These risks may be heightened for securities of companies located,
or with significant operations, in emerging market countries.
Operational
Risk. Each fund is subject to risks arising from various operational factors, including, but not limited
to, human error, processing and communication errors, errors of a fund’s service providers, counterparties or other third-parties,
failed or inadequate processes and technology or systems failures. Each fund relies on third-parties for a range of services, including
custody. Any delay or failure relating to engaging or maintaining such service providers may affect a fund’s ability to meet its
investment objective. Although the funds and the funds’ investment advisor seek to reduce these operational risks through controls
and procedures, there is no way to completely protect against such risks.
Passive
Investment Risk. To the extent a fund seeks to track an index, the fund will invest in the securities
included in, or representative of, the index regardless of their investment merit. A fund generally will not attempt to take defensive
positions in declining markets.
Valuation
Risk. The valuation of certain securities may carry more risk than that of common stock. Uncertainties
in the conditions of the financial markets, unreliable reference data, lack of transparency and inconsistency of valuation models and
processes may lead to inaccurate asset pricing. A fund may hold investments in sizes smaller than institutionally sized round lot positions
(sometimes referred to as odd lots). However, third-party pricing services generally provide evaluations on the basis of institutionally-sized
round lots. If a fund sells certain of its investments in an odd lot transaction, the sale price may be less than the value at which such
securities have been held by the fund. Odd lots often trade at lower prices than institutional round lots. There is no assurance that
the fund will be able to sell a portfolio security at the price established by the pricing service, which could result in a loss to the
fund.
NOT
FDIC INSURED |
NOT
BANK GUARANTEED |
MAY
LOSE VALUE |
Advisory
Agreements
Board
Considerations Regarding Approval of Continuation of Investment Management Agreements
The
Board of Trustees of First Trust Exchange-Traded Fund VI (the “Trust”), including the Independent Trustees, unanimously approved
the continuation of the Investment Management Agreements (as applicable to a specific Fund, the “Agreement” and collectively,
the “Agreements”) with First Trust Advisors L.P. (the “Advisor”) on behalf of the following eleven series of the
Trust (each a “Fund” and collectively, the “Funds”):
First
Trust NASDAQ Technology Dividend Index Fund (TDIV)
Multi-Asset
Diversified Income Index Fund (MDIV)
First
Trust S&P International Dividend Aristocrats ETF (FID)
First
Trust BuyWrite Income ETF (FTHI)
First
Trust Nasdaq BuyWrite Income ETF (FTQI)
First
Trust Rising Dividend Achievers ETF (RDVY)
First
Trust Dorsey Wright Focus 5 ETF (FV)
First
Trust RBA American Industrial Renaissance® ETF (AIRR)
First
Trust Dorsey Wright Momentum & Dividend ETF (DDIV)
First
Trust Dorsey Wright International Focus 5 ETF (IFV)
First
Trust Dorsey Wright Dynamic Focus 5 ETF (FVC)
The
Board approved the continuation of the Agreement for each Fund for a one-year period ending June 30, 2023 at a meeting held on June 12–13,
2022. The Board determined for each Fund that the continuation of the Agreement is in the best interests of the Fund in light of the nature,
extent and quality of the services provided and such other matters as the Board considered to be relevant in the exercise of its business
judgment.
To
reach this determination for each Fund, the Board considered its duties under the Investment Company Act of 1940, as amended (the “1940
Act”), as well as under the general principles of state law, in reviewing and approving advisory contracts; the requirements
Additional
Information (Continued)
First
Trust Exchange-Traded Fund VI
September
30, 2022 (Unaudited)
of
the 1940 Act in such matters; the fiduciary duty of investment advisors with respect to advisory agreements and compensation; the standards
used by courts in determining whether investment company boards have fulfilled their duties; and the factors to be considered by the Board
in voting on such agreements. At meetings held on April 18, 2022 and June 12–13, 2022, the Board, including the Independent Trustees,
reviewed materials provided by the Advisor responding to requests for information from counsel to the Independent Trustees, submitted
on behalf of the Independent Trustees, that, among other things, outlined: the services provided by the Advisor to each Fund (including
the relevant personnel responsible for these services and their experience); the unitary fee rate payable by each Fund as compared to
fees charged to a peer group of funds (the “Expense Group”) and a broad peer universe of funds (the “Expense Universe”),
each assembled by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent source, and as compared to fees charged
to other clients of the Advisor, including other exchange-traded funds (“ETFs”) managed by the Advisor; the expense ratio
of each Fund as compared to expense ratios of the funds in the Fund’s Expense Group and Expense Universe; performance information
for each Fund, including comparisons of each Fund’s performance to that of one or more relevant benchmark indexes and to that of
a performance group of funds and a broad performance universe of funds (the “Performance Universe”), each assembled by Broadridge;
the nature of expenses incurred in providing services to each Fund and the potential for the Advisor to realize economies of scale, if
any; profitability and other financial data for the Advisor; any indirect benefits to the Advisor and its affiliate, First Trust Portfolios
L.P. (“FTP”); and information on the Advisor’s compliance program. The Board reviewed initial materials with the Advisor
at the meeting held on April 18, 2022, prior to which the Independent Trustees and their counsel met separately to discuss the information
provided by the Advisor. Following the April meeting, counsel to the Independent Trustees, on behalf of the Independent Trustees, requested
certain clarifications and supplements to the materials provided, and the information provided in response to those requests was considered
at an executive session of the Independent Trustees and their counsel held prior to the June 12–13, 2022 meeting, as well as at
the June meeting. The Board applied its business judgment to determine whether the arrangement between the Trust and the Advisor continues
to be a reasonable business arrangement from each Fund’s perspective. The Board determined that, given the totality of the information
provided with respect to the Agreements, the Board had received sufficient information to renew the Agreements. The Board considered that
shareholders chose to invest or remain invested in a Fund knowing that the Advisor manages the Fund and knowing the Fund’s unitary
fee.
In
reviewing the Agreement for each Fund, the Board considered the nature, extent and quality of the services provided by the Advisor under
the Agreement. The Board considered that the Advisor is responsible for the overall management and administration of the Trust and each
Fund and reviewed all of the services provided by the Advisor to the Funds, as well as the background and experience of the persons responsible
for such services. The Board considered that FTHI and FTQI are actively-managed ETFs and noted that the Advisor’s Alternatives Investment
Team is responsible for the day-to-day management of the Funds’ investments. The Board considered the background and experience
of the members of the Alternatives Investment Team and noted the Board’s prior meetings with members of the Team. The Board considered
the Advisor’s statement that it applies the same oversight model internally with its Alternatives Investment Team as it uses for
overseeing external sub-advisors, including portfolio risk monitoring and performance review. In reviewing the services provided, the
Board noted the compliance program that had been developed by the Advisor and considered that it includes a robust program for monitoring
the Advisor’s and each Fund’s compliance with the 1940 Act, as well as each Fund’s compliance with its investment objective(s),
policies and restrictions. The Board also considered a report from the Advisor with respect to its risk management functions related to
the operation of the Funds. Finally, as part of the Board’s consideration of the Advisor’s services, the Advisor, in its written
materials and at the April 18, 2022 meeting, described to the Board the scope of its ongoing investment in additional personnel and infrastructure
to maintain and improve the quality of services provided to the Funds and the other funds in the First Trust Fund Complex. In light of
the information presented and the considerations made, the Board concluded that the nature, extent and quality of the services provided
to the Trust and each Fund by the Advisor under the Agreements have been and are expected to remain satisfactory and that the Advisor
has managed each Fund consistent with its investment objective(s), policies and restrictions.
The
Board considered the unitary fee rate payable by each Fund under the applicable Agreement for the services provided. The Board considered
that as part of the unitary fee the Advisor is responsible for each Fund’s expenses, including the cost of transfer agency, custody,
fund administration, legal, audit and other services and license fees, if any, but excluding the fee payment under the applicable Agreement
and interest, taxes, acquired fund fees and expenses, brokerage commissions and other expenses connected with the execution of portfolio
transactions, distribution and service fees pursuant to a Rule 12b-1 plan, if any, and extraordinary expenses, if any. The Board considered
that the Advisor had previously agreed to extend the Fee Offset Agreement for MDIV through January 31, 2023, whereby the Advisor offsets
its unitary fee paid by MDIV related to the portion of MDIV’s assets invested in other investment companies advised by the Advisor.
The Board noted that because each of FV, IFV and FVC invests in underlying ETFs in the First Trust Fund Complex, each such Fund will incur
acquired fund fees and expenses, which are not payable out of the unitary fee, and that such acquired fund fees and expenses will change
over time as assets are reallocated among the underlying ETFs. The Board received and reviewed information showing the fee rates and expense
ratios of the peer funds in the Expense Groups, as well as advisory and unitary fee rates charged by the Advisor to other fund (including
ETFs) and non-fund clients, as applicable. Because each Fund pays a unitary fee, the Board determined that expense ratios (excluding acquired
fund fees and expenses for FV, IFV and FVC) were the most
Additional
Information (Continued)
First
Trust Exchange-Traded Fund VI
September
30, 2022 (Unaudited)
relevant
comparative data point. Based on the information provided, the Board noted that the unitary fee rates for MDIV (including the fee offset),
FTHI and FTQI were below the median total (net) expense ratio (excluding acquired fund fees and expenses, as applicable) of the peer funds
in each Fund’s respective Expense Group and that the unitary fee rate for each other Fund was above the median total (net) expense
ratio (excluding acquired fund fees and expenses, as applicable) of the peer funds in its respective Expense Group. The Board also noted
that FV’s, IFV’s and FVC’s total (net) expense ratios (including acquired fund fees and expenses) were above the median
total (net) expense ratio (including acquired fund fees and expenses) of the peer funds in each Fund’s respective Expense Group.
With respect to the Expense Groups, the Board, at the April 18, 2022 meeting, discussed with Broadridge its methodology for assembling
peer groups and discussed with the Advisor limitations in creating peer groups for index ETFs and actively-managed ETFs, including, for
index ETFs, differences in underlying indexes and index-tracking methodologies that can result in greater management complexities across
seemingly comparable ETFs, and, for both index ETFs and actively-managed ETFs, different business models that may affect the pricing of
services among ETF sponsors. For actively-managed ETFs, the Board also noted that FTHI’s Expense Group did not include any other
actively-managed ETFs and that FTQI’s Expense Group contained both actively-managed ETFs and open-end mutual funds. The Board took
these limitations and differences into account in considering the peer data. With respect to fees charged to other non-ETF clients, the
Board considered differences between the Funds and other non-ETF clients that limited their comparability. In considering the unitary
fee rates overall, the Board also considered the Advisor’s statement that it seeks to meet investor needs through innovative and
value-added investment solutions and the Advisor’s demonstrated long-term commitment to each Fund and the other funds in the First
Trust Fund Complex.
The
Board considered performance information for each Fund. The Board noted the process it has established for monitoring each Fund’s
performance and portfolio risk on an ongoing basis, which includes quarterly performance reporting from the Advisor for the Funds. The
Board determined that this process continues to be effective for reviewing each Fund’s performance. With the exception of FTHI and
FTQI, the Board received and reviewed information for periods ended December 31, 2021 regarding the performance of each Fund’s underlying
index, the correlation between each Fund’s performance and that of its underlying index, each Fund’s tracking difference and
each Fund’s excess return as compared to its benchmark index. With respect to DDIV, the Board noted that during 2018, it approved
changes to the Fund’s investment objective and, effective September 6, 2018, the Fund changed its name and ticker symbol and began
tracking the Dorsey Wright Momentum Plus Dividend Yield Index, and that the performance information included a blend of the old and new
indexes. With respect to FID, the Board noted that during 2018, it approved changes to the Fund’s investment objective and, effective
August 30, 2018, the Fund changed its name and ticker symbol and began tracking the S&P International Dividend Aristocrats Index,
and that the performance information included a blend of the old and new indexes. Based on the information provided and its ongoing review
of performance, the Board concluded that each applicable Fund was correlated to its underlying index and that the tracking difference
for each such Fund was within a reasonable range. In addition, the Board reviewed data prepared by Broadridge comparing each applicable
Fund’s performance to that of its respective Performance Universe and to that of a broad-based benchmark index and noted the Advisor’s
discussion of MDIV’s performance at the April 18, 2022 meeting, but given each such Fund’s objective of seeking investment
results that correspond generally to the performance of its underlying index, the Board placed more emphasis on its review of correlation
and tracking difference.
For
the two actively-managed Funds, FTHI and FTQI, the Board received and reviewed information comparing each Fund’s performance for
periods ended December 31, 2021 to the performance of the funds in its Performance Universe and to that of a benchmark index. With respect
to FTQI, the Board noted that during 2022, it approved the Fund’s adoption of an amended investment strategy that involves investing
primarily in equity securities listed on U.S. exchanges and utilizing an “option strategy” consisting of writing U.S. exchange-traded
call options on the Nasdaq-100 Index®, which took effect
May 11, 2022, and that the performance information reflected FTQI’s old investment strategy. Based on the information provided,
the Board noted that FTHI performed at its Performance Universe median for the one-year period ended December 31, 2021 and underperformed
its Performance Universe median for the three- and five-year periods ended December 31, 2021. The Board also noted that FTHI underperformed
its benchmark index for the one-, three- and five-year periods ended December 31, 2021. The Board noted that FTQI underperformed its Performance
Universe median and benchmark index for the one-, three- and five-year periods ended December 31, 2021.
On
the basis of all the information provided on the unitary fee and performance of each Fund and the ongoing oversight by the Board, the
Board concluded that the unitary fee for each Fund continues to be reasonable and appropriate in light of the nature, extent and quality
of the services provided by the Advisor to each Fund under the Agreements.
The
Board considered information and discussed with the Advisor whether there were any economies of scale in connection with providing advisory
services to the Funds and noted the Advisor’s statement that it believes that its expenses relating to providing advisory services
to the Funds will likely increase during the next twelve months as the Advisor continues to build infrastructure and add new staff. The
Board noted that any reduction in fixed costs associated with the management of the Funds would benefit the Advisor, but that the unitary
fee structure provides a level of certainty in expenses for the Funds. The Board considered the revenues and allocated costs (including
the allocation methodology) of the Advisor in serving as investment advisor to each Fund for the twelve months ended December 31, 2021
and the estimated profitability level for each Fund calculated by the Advisor based on such data, as
Additional
Information (Continued)
First
Trust Exchange-Traded Fund VI
September
30, 2022 (Unaudited)
well
as complex-wide and product-line profitability data, for the same period. The Board noted the inherent limitations in the profitability
analysis and concluded that, based on the information provided, the Advisor’s profitability level for each Fund was not unreasonable.
In addition, the Board considered indirect benefits described by the Advisor that may be realized from its relationship with the Funds.
The Board considered that the Advisor had identified as an indirect benefit to the Advisor and FTP their exposure to investors and brokers
who, absent their exposure to the Funds, may have had no dealings with the Advisor or FTP, and noted that the Advisor does not utilize
soft dollars in connection with the Funds. The Board also considered the Advisor’s compensation for fund reporting services provided
to each Fund pursuant to a separate Fund Reporting Services Agreement, which is paid from the unitary fee. In addition, the Board considered
that the Advisor, as the investment advisor to the underlying ETFs in which each of FV, IFV and FVC invest, will recognize additional
revenue from the underlying ETFs if investment by such Funds causes the assets of the underlying ETFs to grow. The Board concluded that
the character and amount of potential indirect benefits to the Advisor were not unreasonable.
Based
on all of the information considered and the conclusions reached, the Board, including the Independent Trustees, unanimously determined
that the terms of the Agreements continue to be fair and reasonable and that the continuation of the Agreements is in the best interests
of each Fund. No single factor was determinative in the Board’s analysis.
Board
Considerations Regarding Approval of Continuation of Investment Management Agreements
The
Board of Trustees of First Trust Exchange-Traded Fund VI (the “Trust”), including the Independent Trustees, unanimously approved
the continuation of the Investment Management Agreements (as applicable to a specific Fund, the “Agreement” and collectively,
the “Agreements”) with First Trust Advisors L.P. (the “Advisor”) on behalf of the following three series of the
Trust (each a “Fund” and collectively, the “Funds”):
First
Trust Indxx Innovative Transaction & Process ETF (LEGR)
First
Trust Nasdaq Artificial Intelligence and Robotics ETF (ROBT)
First
Trust International Developed Capital Strength ETF (FICS)
The
Board approved the continuation of the Agreement for each Fund for a one-year period ending June 30, 2023 at a meeting held on June 12–13,
2022. The Board determined for each Fund that the continuation of the Agreement is in the best interests of the Fund in light of the nature,
extent and quality of the services provided and such other matters as the Board considered to be relevant in the exercise of its business
judgment.
To
reach this determination for each Fund, the Board considered its duties under the Investment Company Act of 1940, as amended (the “1940
Act”), as well as under the general principles of state law, in reviewing and approving advisory contracts; the requirements of
the 1940 Act in such matters; the fiduciary duty of investment advisors with respect to advisory agreements and compensation; the standards
used by courts in determining whether investment company boards have fulfilled their duties; and the factors to be considered by the Board
in voting on such agreements. At meetings held on April 18, 2022 and June 12–13, 2022, the Board, including the Independent Trustees,
reviewed materials provided by the Advisor responding to requests for information from counsel to the Independent Trustees, submitted
on behalf of the Independent Trustees, that, among other things, outlined: the services provided by the Advisor to each Fund (including
the relevant personnel responsible for these services and their experience); the unitary fee rate payable by each Fund as compared to
fees charged to a peer group of funds (the “Expense Group”) and a broad peer universe of funds (the “Expense Universe”),
each assembled by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent source, and as compared to fees charged
to other clients of the Advisor, including other exchange-traded funds (“ETFs”) managed by the Advisor; the expense ratio
of each Fund as compared to expense ratios of the funds in the Fund’s Expense Group and Expense Universe; performance information
for each Fund, including comparisons of each Fund’s performance to that of one or more relevant benchmark indexes and to that of
a performance group of funds and a broad performance universe of funds (the “Performance Universe”), each assembled by Broadridge;
the nature of expenses incurred in providing services to each Fund and the potential for the Advisor to realize economies of scale, if
any; profitability and other financial data for the Advisor; any indirect benefits to the Advisor and its affiliate, First Trust Portfolios
L.P. (“FTP”); and information on the Advisor’s compliance program. The Board reviewed initial materials with the Advisor
at the meeting held on April 18, 2022, prior to which the Independent Trustees and their counsel met separately to discuss the information
provided by the Advisor. Following the April meeting, counsel to the Independent Trustees, on behalf of the Independent Trustees, requested
certain clarifications and supplements to the materials provided, and the information provided in response to those requests was considered
at an executive session of the Independent Trustees and their counsel held prior to the June 12–13, 2022 meeting, as well as at
the June meeting. The Board applied its business judgment to determine whether the arrangement between the Trust and the Advisor continues
to be a reasonable business arrangement from each Fund’s perspective. The Board determined that, given the totality of the information
provided with respect to the Agreements, the Board had received sufficient information to renew the Agreements. The Board considered that
shareholders chose to invest or remain invested in a Fund knowing that the Advisor manages the Fund and knowing the Fund’s unitary
fee.
Additional
Information (Continued)
First
Trust Exchange-Traded Fund VI
September
30, 2022 (Unaudited)
In
reviewing the Agreement for each Fund, the Board considered the nature, extent and quality of the services provided by the Advisor under
the Agreement. The Board considered that the Advisor is responsible for the overall management and administration of the Trust and each
Fund and reviewed all of the services provided by the Advisor to the Funds, as well as the background and experience of the persons responsible
for such services. In reviewing the services provided, the Board noted the compliance program that had been developed by the Advisor and
considered that it includes a robust program for monitoring the Advisor’s and each Fund’s compliance with the 1940 Act, as
well as each Fund’s compliance with its investment objective, policies and restrictions. The Board also considered a report from
the Advisor with respect to its risk management functions related to the operation of the Funds. Finally, as part of the Board’s
consideration of the Advisor’s services, the Advisor, in its written materials and at the April 18, 2022 meeting, described to the
Board the scope of its ongoing investment in additional personnel and infrastructure to maintain and improve the quality of services provided
to the Funds and the other funds in the First Trust Fund Complex. In light of the information presented and the considerations made, the
Board concluded that the nature, extent and quality of the services provided to the Trust and each Fund by the Advisor under the Agreements
have been and are expected to remain satisfactory and that the Advisor has managed each Fund consistent with its investment objective,
policies and restrictions.
The
Board considered the unitary fee rate payable by each Fund under the applicable Agreement for the services provided. The Board considered
that as part of the unitary fee the Advisor is responsible for each Fund’s expenses, including the cost of transfer agency, custody,
fund administration, legal, audit and other services and license fees, if any, but excluding the fee payment under the applicable Agreement
and interest, taxes, brokerage commissions and other expenses connected with the execution of portfolio transactions, distribution and
service fees pursuant to a Rule 12b-1 plan, if any, and extraordinary expenses, if any. The Board received and reviewed information showing
the fee rates and expense ratios of the peer funds in the Expense Groups, as well as advisory and unitary fee rates charged by the Advisor
to other fund (including ETFs) and non-fund clients, as applicable. Because each Fund pays a unitary fee, the Board determined that expense
ratios were the most relevant comparative data point. Based on the information provided, the Board noted that the unitary fee rate for
LEGR was equal to the median total (net) expense ratio of the peer funds in its Expense Group and that the unitary fee rate for each other
Fund was above the median total (net) expense ratio of the peer funds in its respective Expense Group. With respect to the Expense Groups,
the Board, at the April 18, 2022 meeting, discussed with Broadridge its methodology for assembling peer groups and discussed with the
Advisor limitations in creating peer groups for index ETFs, including differences in underlying indexes and index-tracking methodologies
that can result in greater management complexities across seemingly comparable ETFs, and different business models that may affect the
pricing of services among ETF sponsors. The Board took these limitations and differences into account in considering the peer data. With
respect to fees charged to other non-ETF clients, the Board considered differences between the Funds and other non-ETF clients that limited
their comparability. In considering the unitary fee rates overall, the Board also considered the Advisor’s statement that it seeks
to meet investor needs through innovative and value-added investment solutions and the Advisor’s demonstrated long-term commitment
to each Fund and the other funds in the First Trust Fund Complex.
The
Board considered performance information for each Fund. The Board noted the process it has established for monitoring each Fund’s
performance and portfolio risk on an ongoing basis, which includes quarterly performance reporting from the Advisor for the Funds. The
Board determined that this process continues to be effective for reviewing each Fund’s performance. The Board received and reviewed
information for each Fund for periods ended December 31, 2021 regarding the performance of each Fund’s underlying index, the correlation
between each Fund’s performance and that of its underlying index, each Fund’s tracking difference and each Fund’s excess
return as compared to its benchmark index. Based on the information provided and its ongoing review of performance, the Board concluded
that each Fund was correlated to its underlying index and that the tracking difference for each Fund was within a reasonable range. In
addition, the Board reviewed data prepared by Broadridge comparing each Fund’s performance to that of its respective Performance
Universe and to that of a broad-based benchmark index, but given each Fund’s objective of seeking investment results that correspond
generally to the performance of its underlying index, the Board placed more emphasis on its review of correlation and tracking difference.
On
the basis of all the information provided on the unitary fee and performance of each Fund and the ongoing oversight by the Board, the
Board concluded that the unitary fee for each Fund continues to be reasonable and appropriate in light of the nature, extent and quality
of the services provided by the Advisor to each Fund under the Agreements.
The
Board considered information and discussed with the Advisor whether there were any economies of scale in connection with providing advisory
services to the Funds and noted the Advisor’s statement that it believes that its expenses relating to providing advisory services
to the Funds will likely increase during the next twelve months as the Advisor continues to build infrastructure and add new staff. The
Board noted that any reduction in fixed costs associated with the management of the Funds would benefit the Advisor, but that the unitary
fee structure provides a level of certainty in expenses for the Funds. The Board considered the revenues and allocated costs (including
the allocation methodology) of the Advisor in serving as investment advisor to each Fund for the twelve months ended December 31, 2021
and the estimated profitability level for each Fund calculated by the Advisor based on such data, as well as complex-wide and product-line
profitability data, for the same period. The Board noted the inherent limitations in the
Additional
Information (Continued)
First
Trust Exchange-Traded Fund VI
September
30, 2022 (Unaudited)
profitability
analysis and concluded that, based on the information provided, the Advisor’s profitability level for each Fund was not unreasonable.
In addition, the Board considered indirect benefits described by the Advisor that may be realized from its relationship with the Funds.
The Board considered that the Advisor had identified as an indirect benefit to the Advisor and FTP their exposure to investors and brokers
who, absent their exposure to the Funds, may have had no dealings with the Advisor or FTP, and noted that the Advisor does not utilize
soft dollars in connection with the Funds. The Board also considered the Advisor’s compensation for fund reporting services provided
to each Fund pursuant to a separate Fund Reporting Services Agreement, which is paid from the unitary fee. The Board concluded that the
character and amount of potential indirect benefits to the Advisor were not unreasonable.
Based
on all of the information considered and the conclusions reached, the Board, including the Independent Trustees, unanimously determined
that the terms of the Agreements continue to be fair and reasonable and that the continuation of the Agreements is in the best interests
of each Fund. No single factor was determinative in the Board’s analysis.
Liquidity
Risk Management Program
In
accordance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “1940 Act”), the Funds and each other
fund in the First Trust Fund Complex, other than the closed-end funds, have adopted and implemented a liquidity risk management program
(the “Program”) reasonably designed to assess and manage the funds’ liquidity risk, i.e., the risk that a fund could
not meet requests to redeem shares issued by the fund without significant dilution of remaining investors’ interests in the fund.
The Board of Trustees of the First Trust Funds has appointed First Trust Advisors L.P. (the “Advisor”) as the person
designated to administer the Program, and in this capacity the Advisor performs its duties primarily through the activities and efforts
of the First Trust Liquidity Committee (the “Liquidity Committee”).
Pursuant
to the Program, the Liquidity Committee classifies the liquidity of each fund’s portfolio investments into one of the four liquidity
categories specified by Rule 22e-4: highly liquid investments, moderately liquid investments, less liquid investments and illiquid investments.
The Liquidity Committee determines certain of the inputs for this classification process, including reasonably anticipated trade
sizes and significant investor dilution thresholds. The Liquidity Committee also determines and periodically reviews a highly liquid investment
minimum for certain funds, monitors the funds’ holdings of assets classified as illiquid investments to seek to ensure they do not
exceed 15% of a fund’s net assets and establishes policies and procedures regarding redemptions in kind.
At
the April 18, 2022 meeting of the Board of Trustees, as required by Rule 22e-4 and the Program, the Advisor provided the Board with a
written report prepared by the Advisor that addressed the operation of the Program during the period from March 16, 2021 through the Liquidity
Committee’s annual meeting held on March 17, 2022 and assessed the Program’s adequacy and effectiveness of implementation
during this period, including the operation of the highly liquid investment minimum for each fund that is required under the Program to
have one, and any material changes to the Program. Note that because the Funds primarily hold assets that are highly liquid investments,
the Funds have not adopted any highly liquid investment minimums.
As
stated in the written report, during the review period, no fund breached the 15% limitation on illiquid investments, no fund with a highly
liquid investment minimum breached that minimum and no fund filed a Form N-LIQUID. The Advisor concluded that each fund’s
investment strategy is appropriate for an open-end fund; that the Program operated effectively in all material respects during the review
period; and that the Program is reasonably designed to assess and manage the liquidity risk of each fund and to maintain compliance with
Rule 22e-4.
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 VI 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, 2021, the amount of remuneration paid (or to be paid) by First Trust Advisors L.P. in respect of the Funds
is $5,655,174. This figure is comprised of $224,803 paid (or to be paid) in fixed compensation and $5,430,371 paid (or to be paid) in
variable compensation. There were a total of 26 beneficiaries of the remuneration described above. Those amounts include $2,867,870 paid
(or to be paid) to senior management of First Trust Advisors L.P. and $2,787,304 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 Fund (collectively, “Code Staff”).
Additional
Information (Continued)
First
Trust Exchange-Traded Fund VI
September
30, 2022 (Unaudited)
Code
Staff included in the aggregated figures disclosed above are rewarded in line with First Trust’s remuneration policy (the “Remuneration
Policy”) which is determined and implemented by First Trust’s senior management. The Remuneration Policy reflects First Trust’s
ethos of good governance and encapsulates the following principal objectives:
i.
to provide a clear link between remuneration and performance of First Trust and to avoid rewarding for failure;
ii.
to promote sound and effective risk management consistent with the risk profiles of the funds managed by First Trust; and
iii.
to remunerate staff in line with the business strategy, objectives, values and interests of First Trust and the funds managed by First
Trust in a manner that avoids conflicts of interest.
First
Trust assesses various risk factors which it is exposed to when considering and implementing remuneration for Code Staff and considers
whether any potential award to such person(s) would give rise to a conflict of interest. First Trust does not reward failure, or consider
the taking of risk or failure to take risk in its remuneration of Code Staff.
First
Trust assesses performance for the purposes of determining payments in respect of performance-related remuneration of Code Staff by reference
to a broad range of measures including (i) individual performance (using financial and non-financial criteria), and (ii) the overall performance
of First Trust. Remuneration is not based upon the performance of the 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.
Board
of Trustees and Officers
First
Trust Exchange-Traded Fund VI
September
30, 2022 (Unaudited)
The
following tables identify the Trustees and Officers of the Trust. Unless otherwise indicated, the address of all persons is 120 East Liberty
Drive, Suite 400, Wheaton, IL 60187.
The
Trust’s statement of additional information includes additional information about the Trustees and is available, without charge,
upon request, by calling (800) 988-5891.
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 |
Physician,
Edward-Elmhurst Medical Group; Physician and Officer, Wheaton Orthopedics (1990 to 2021) |
221
|
None
|
Thomas
R. Kadlec, Trustee (1957) |
• Indefinite
Term • Since Inception |
Retired;
President, ADM Investor Services, Inc. (Futures Commission Merchant) (2010 to July 2022) |
221
|
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) |
221
|
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 and Board Chair of RML Long Term
Acute Care Hospitals; and Director of Senior Helpers (since 2021) |
Robert
F. Keith, Trustee (1956) |
• Indefinite
Term • Since Inception |
President,
Hibs Enterprises (Financial and Management Consulting) |
221
|
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) |
221
|
None
|
INTERESTED
TRUSTEE |
James
A. Bowen(1), Trustee and 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) |
221
|
None
|
(1)
|
Mr.
Bowen is deemed an “interested person” of the Trust due to his position as CEO of First Trust Advisors L.P., investment advisor
of the Trust. |
Board
of Trustees and Officers (Continued)
First
Trust Exchange-Traded Fund VI
September
30, 2022 (Unaudited)
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) |
Donald
P. Swade (1972) |
Treasurer,
Chief Financial Officer and Chief Accounting Officer |
• Indefinite
Term • Since 2016 |
Senior
Vice President, First Trust Advisors L.P. and First Trust Portfolios L.P. |
W.
Scott Jardine (1960) |
Secretary
and Chief Legal Officer |
• Indefinite
Term • Since Inception |
General
Counsel, First Trust Advisors L.P. and First Trust Portfolios L.P.; Secretary and General Counsel, BondWave LLC; Secretary, Stonebridge
Advisors LLC |
Daniel
J. Lindquist (1970) |
Vice
President |
• Indefinite
Term • Since Inception |
Managing
Director, First Trust Advisors L.P. and First Trust Portfolios L.P. |
Kristi
A. Maher (1966) |
Chief
Compliance Officer and Assistant Secretary |
• Indefinite
Term • Since Inception |
Deputy
General Counsel, First Trust Advisors L.P. and First Trust Portfolios L.P. |
Roger
F. Testin (1966) |
Vice
President |
• Indefinite
Term • Since Inception |
Senior
Vice President, First Trust Advisors L.P. and First Trust Portfolios L.P. |
Stan
Ueland (1970) |
Vice
President |
• Indefinite
Term • Since Inception |
Senior
Vice President, First Trust Advisors L.P. and First Trust Portfolios L.P. |
(2)
|
The
term “officer” means the president, vice president, secretary, treasurer, controller or any other officer who performs a policy
making function. |
(1)Mr.
Bowen is deemed an “interested person” of the Trust due to his position as CEO of First Trust Advisors L.P., investment advisor
of the Trust.
(1)Mr.
Bowen is deemed an “interested person” of the Trust due to his position as CEO of First Trust Advisors L.P., investment advisor
of the Trust.
(1)Mr.
Bowen is deemed an “interested person” of the Trust due to his position as CEO of First Trust Advisors L.P., investment advisor
of the Trust.
Privacy
Policy
First
Trust Exchange-Traded Fund VI
September
30, 2022 (Unaudited)
Privacy
Policy
First
Trust values our relationship with you and considers your privacy an important priority in maintaining that relationship. We are committed
to protecting the security and confidentiality of your personal information.
Sources
of Information
We
collect nonpublic personal information about you from the following sources:
•
|
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
2022
First
Trust Exchange-Traded Fund VI
INVESTMENT
ADVISOR
First
Trust Advisors L.P.
120
East Liberty Drive, Suite 400
Wheaton,
IL 60187
ADMINISTRATOR,
CUSTODIAN,
FUND ACCOUNTANT &
TRANSFER AGENT
Brown
Brothers Harriman & Co.
50
Post Office Square
Boston,
MA 02110
INDEPENDENT
REGISTERED
PUBLIC ACCOUNTING FIRM
Deloitte
& Touche LLP
111
S. Wacker Drive
Chicago,
IL 60606
LEGAL
COUNSEL
Chapman
and Cutler LLP
320
South Canal Street
Chicago,
IL 60606
First
Trust Exchange-Traded Fund VI
Book 2
First Trust SMID Cap Rising Dividend Achievers ETF (SDVY)
First Trust Dorsey Wright Momentum & Value ETF (DVLU)
First Trust Dorsey Wright Momentum & Low Volatility ETF (DVOL)
Annual Report
For the Year Ended
September 30, 2022
First
Trust Exchange-Traded Fund VI
Annual
Report
September
30, 2022
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 VI (the “Trust”) described in this report (each such series is referred
to as a “Fund” and collectively, the “Funds”) to be materially different from any future results, performance
or achievements expressed or implied by the forward-looking statements. When evaluating the information included in this report, you are
cautioned not to place undue reliance on these forward-looking statements, which reflect the judgment of the Advisor and 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 web page at www.ftportfolios.com.
How
to Read This Report
This
report contains information that may help you evaluate your investment. It includes details about each Fund and presents data and analysis
that provide insight into each Fund’s performance and investment approach.
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 the prospectus, the statement of additional information, and other Fund
regulatory filings.
First
Trust Exchange-Traded Fund VI
Annual
Letter from the Chairman and CEO
September
30, 2022
Dear
Shareholders,
First
Trust is pleased to provide you with the annual report for certain series of the First Trust Exchange-Traded Fund VI (the “Funds”),
which contains detailed information about the Funds for the twelve months ended September 30, 2022.
It
is times like these that really test the mettle of investors. Are you someone that is implementing an investment plan with a long time
horizon, a trader by nature, or do you fall somewhere in between? Frankly, the current climate is challenging for just about any strategy.
While most investors are accustomed to dealing with high levels of volatility in the stock market, some of the daily swings we have witnessed
lately have not only been uncharacteristically sharp but have occasionally seemed nearly inexplicable, in my opinion.
In
case you have not noticed, volatility is also elevated in the fixed-income market. Bond valuations are down big in 2022. Year-to-date
through October 31, 2022, the ICE BofA 15+ Year U.S. Treasury Index experienced a price decline of 33.51%, according to Bloomberg. It
was down 31.87% on a total return basis, which includes reinvested interest. To put this into perspective, over the past 40 years, the
worst annual showing by the U.S. Long-Term Government Bond Index (20-Year) tracked by Morningstar was the -14.90% total return posted
in 2009 (think 2008-2009 global financial crisis). For those who may be unaware, investors benefitted from a trend of declining bond yields
from September 1981 through August 2020. While that is an incredible run, nothing lasts forever. Suffice it to say, a lot of pain has
been endured by investors in the markets this year and we believe there could be more to come in the near-term. The aggressive interest
rate hikes by the Federal Reserve (the “Fed”) are a signal to the markets that it is behind the inflation curve. Moving forward,
the Fed will be looking to lower inflation while simultaneously engineering a soft landing in the economy. That will be easier said than
done, in my opinion.
There
are far more headwinds challenging the securities markets than tailwinds. Here are just a few of those headwinds: stubbornly high inflation;
additional rate hikes expected from the Fed from their November and December 2022 meetings, which could potentially push bond yields higher;
the ongoing war between Russia and Ukraine, which is impacting the supply and prices of crude oil and natural gas; China enforcing a zero-tolerance
policy to combat the spread of the coronavirus by locking down entire cities to its own economic detriment; and the potential for food
and energy shortages this coming winter. With the housing market looking like it is finally cooling off, due largely to a huge spike in
mortgage rates this year, which were up more than double the rate at the start of the year, the last big tailwind standing may just be
the strong U.S. labor market. If the job market can hang in there, the Fed’s goal of a soft landing for the economy may be attainable.
I think we will have a clearer picture of things at the start of 2023.
Year-to-date
through October 31, 2022, the S&P 500® Index (the “Index”)
posted a total return of -17.70%, according to Bloomberg, which puts the Index in bear market territory. A bear market is defined as a
20% or greater decline in the price of a security or index from its most recent peak. While the 17.70% decline in the Index would technically
qualify as a stock market correction, investors should continue to view the current downturn as a bear market, in my opinion. Keep in
mind, since World War II, there have been 12 bear markets in the Index, excluding the current bear market, according to Yardeni Research.
The average price decline of those 12 bear markets was 33.6%. The average price gain over the 12-months following the trough reached during
those bear markets was 40.8%, according to Bloomberg. Bear markets come and go. You can’t catch the turn if you are not in the market
when the turn comes.
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.
First
Trust Exchange-Traded Fund VI
Annual
Report (Unaudited)
September
30, 2022
Robert
F. Carey, CFA
Senior
Vice President and Chief Market Strategist
First
Trust Advisors L.P.
Mr.
Carey is responsible for the overall management of research and analysis of the First Trust product line. Mr. Carey has more than 30 years
of experience as an Equity and Fixed-Income Analyst and is a recipient of the Chartered Financial Analyst (“CFA”) designation.
He is a graduate of the University of Illinois at Champaign-Urbana with a B.S. in Physics. He is also a member of the Investment Analysts
Society of Chicago and the CFA Institute. Mr. Carey has appeared as a guest on such programs as Bloomberg TV, CNBC, and WBBM Radio, and
has been quoted by several publications, including The Wall Street Journal, The
Wall Street Reporter, Bloomberg News Service, and Registered
Rep.
State
of the Global Economy
The
International Monetary Fund (“IMF”) reported in its October 2022 release that global gross domestic product (“GDP”)
growth is expected to come in at 3.2% in 2022 and 2.7% in 2023, down from 6.0% in 2021. The IMF sees the U.S. economy growing 1.6% in
2022 and 1.0% in 2023, down from 5.7% in 2021. With respect to all Advanced Economies, the IMF is projecting GDP growth of 2.4% in 2022
and 1.1% in 2023, down from 5.2% in 2021. Lastly, it sees Emerging Markets and Developing Economies growing 3.7% in 2022 and 3.7% again
in 2023, down from 6.6% in 2021. From 1970 to 2021, the average global GDP growth rate was 3.6%, according to the IMF. Looking ahead,
the IMF notes that the global economy must navigate three key pressures: the war in Ukraine, world-wide inflation and continued economic
headwinds in the U.S., Europe and China.
Russia’s
war with Ukraine continues to destabilize the global economy, increasing the cost of living and impeding economic growth. European natural
gas prices have spiked four-fold since 2021, according to the IMF. Russia has decreased natural gas deliveries to Europe by over 80% of
their 2021 total, greatly increasing the likelihood of an energy shortage. Worldwide inflationary pressures continue to fester, with global
inflation forecast to surge to 8.8% in 2022, up from 4.7% in 2021. Central banks have rapidly tightened monetary policy in response, and
will likely have to continue to do so, in our opinion. These tighter financial conditions have produced significant headwinds to growth
among most major economies and are likely to have at least some impact in 2023.
Performance
of Global Stocks and Bonds
U.S.
equities have turned negative over the past year. The S&P 500®
(the “Index”), S&P MidCap 400® and S&P
SmallCap 600® Indices posted total returns of -15.47%, -15.25%
and -18.83%, respectively, for the 12-month period ended September 30, 2022, according to Bloomberg. Value stocks outperformed growth
stocks over the period. The S&P 500® Value Index posted
a total return of -9.63% versus -21.11% for the S&P 500®
Growth Index; an indication that investors may be anticipating slower growth over the near-term and are opting for companies that are
trading at more attractive valuations. Nine of the eleven sectors that comprise the Index were down on a total return basis, with Energy
and Utilities posting the only positive returns. The top-performer was Energy, up 45.70%, while the worst showing came from Communication
Services, down 39.05%.
A
Bloomberg survey of 23 equity strategists found that the average 2022 year-end price target for the Index was 4,346 as of September 15,
2022, down from 4,376 on August 16, 2022, according to its own release. Heading into 2022 (December 16, 2021), strategists had an average
target of 4,950. The highest and lowest estimates on September 15, 2022, were 5,100 and 3,400, respectively. On September 15, 2022, the
Index closed at 3,901.35, which was 18.66% below its all-time closing high of 4,796.56 on January 3, 2022. As of September 30, 2022, Bloomberg’s
2022, 2023 and 2024 consensus earnings growth rate estimates for the Index stood at 9.61%, 6.14% and 8.44%, respectively.
The
performance of foreign equities continues to lag that of major U.S. stock indices. Over the past 12 months, the MSCI World ex USA and
MSCI Emerging Markets equity indices posted total returns of -23.91% (USD) and -28.11% (USD), respectively, according to Bloomberg. Major
foreign bond indices were also in negative territory. The Bloomberg Global Aggregate Index of higher quality debt posted a total return
of -20.43% (USD), while the EM Hard Currency Aggregate Index of emerging markets debt fell by 23.01% (USD), according to Bloomberg. Over
that same period, the U.S. dollar surged by 18.98% against a basket of major currencies, as measured by the U.S. Dollar Index (DXY), pressuring
the returns on unhedged foreign securities held by U.S. investors.
U.S.
bond indices have not been immune to the aggressive tightening of monetary policy by central banks, particularly the U.S. Federal Reserve.
The best performing index we track was the U.S. Treasury: Intermediate Index, which posted a total return of -9.23% for the 12-month period
ended September 30, 2022. The worst performer was the U.S. Corporate Investment Grade Index which posted a total return of -18.53% for
the same period. The yield on the benchmark 10-Year Treasury Note (“T-Note”) rose by 234 basis points (a 157.47% increase
over the period) to close at 3.83% on September 30, 2022, according to Bloomberg. For comparative purposes, the average yield on the 10-Year
T-Note was 2.10% for the 10-year period ended September 30, 2022.
Fund
Performance Overview (Unaudited)
First
Trust SMID Cap Rising Dividend Achievers ETF (SDVY)
The
First Trust SMID Cap Rising Dividend Achievers ETF (the “Fund”) seeks investment results that correspond generally to the
price and yield (before the Fund’s fees and expenses) of an index called the Nasdaq US Small Mid Cap Rising Dividend Achievers™
Index (the “Index”). The Fund will normally invest at least 90% of its net assets (including investment borrowings) in the
common stocks that comprise the Index. The Index is designed to provide access to a diversified portfolio of 100 small and mid cap companies
with a history of raising their dividends and exhibit the characteristics to continue to do so in the future. The shares of the Fund are
listed and traded on The Nasdaq Stock Market LLC, under the ticker symbol “SDVY.”
Performance
|
|
|
|
|
|
Average
Annual Total Returns |
Cumulative
Total Returns |
|
1
Year Ended 9/30/22 |
Inception
(11/1/17) to 9/30/22 |
Inception
(11/1/17) to 9/30/22 |
Fund
Performance |
|
|
|
NAV
|
-16.78%
|
4.72%
|
25.41%
|
Market
Price |
-16.90%
|
4.72%
|
25.41%
|
Index
Performance |
|
|
|
Nasdaq
US Small Mid Cap Rising Dividend Achievers™ Index |
-16.36%
|
5.34%
|
29.13%
|
S&P
1000® Index |
-16.35%
|
5.31%
|
28.94%
|
(See
Notes to Fund Performance Overview on page 10.)
The
Fund generated a net asset value (“NAV”) return of -16.78% during the 12-month period covered by this report. During the same
period, the S&P 1000® Index (the “Benchmark”)
generated a return of -16.35%. The most significant allocation in the Fund during the period covered by this report went to the Financials
sector. Investments in this sector received an average weight of 30.6% and contributed -2.4% to the Fund’s overall return. The most
significant contribution to the Fund’s return for the period came from investments in the Consumer Discretionary sector. This sector’s
allocation was 19.5% and caused a -6.4% contribution to the Fund’s return. None of the invested sectors had a positive contribution
to the Fund’s return during the period covered by this report.
Nasdaq®
and Nasdaq US Small Mid Cap Rising Dividend Achievers™ 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 their 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.
Fund
Performance Overview (Unaudited) (Continued)
First
Trust SMID Cap Rising Dividend Achievers ETF (SDVY) (Continued)
Sector
Allocation |
%
of Total Investments |
Financials
|
28.8%
|
Consumer
Discretionary |
23.8
|
Industrials
|
22.7
|
Information
Technology |
8.0
|
Materials
|
7.8
|
Energy
|
4.0
|
Communication
Services |
2.0
|
Consumer
Staples |
2.0
|
Real
Estate |
0.9
|
Total
|
100.0%
|
Top
Ten Holdings |
%
of Total Investments |
Landstar
System, Inc. |
1.1%
|
Boise
Cascade Co. |
1.1
|
Texas
Pacific Land Corp. |
1.1
|
Allegion
PLC |
1.1
|
Robert
Half International, Inc. |
1.1
|
Mueller
Industries, Inc. |
1.1
|
Chord
Energy Corp. |
1.1
|
UFP
Industries, Inc. |
1.0
|
Sturm
Ruger & Co., Inc. |
1.0
|
EMCOR
Group, Inc. |
1.0
|
Total
|
10.7%
|
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.
Fund
Performance Overview (Unaudited) (Continued)
First
Trust Dorsey Wright Momentum & Value ETF (DVLU)
The
First Trust Dorsey Wright Momentum & Value ETF (the “Fund”) seeks investment results that correspond generally to the
price and yield (before the Fund’s fees and expenses) of an index called the Dorsey Wright Momentum Plus Value™ Index (the
“Index”). Under normal conditions, the Fund will invest at least 90% of its net assets (including investment borrowings) in
the equity securities that comprise the Index. The Fund, using an indexing investment approach, attempts to replicate, before fees and
expenses, the performance of the Index. The Index is a rules-based equity index designed to track the overall performance of the 50 most
undervalued stocks comprising the Nasdaq US Large Mid Cap Index™ that exhibit high levels of “relative strength.” A
relative strength analysis is a momentum-based investment strategy that emphasizes a security’s forward price momentum in the security
selection process. The Index is owned and was developed by Nasdaq, Inc. The shares of the Fund are listed and traded on The Nasdaq Stock
Market LLC, under the ticker symbol “DVLU.”
Performance
|
|
|
|
|
|
Average
Annual Total Returns |
Cumulative
Total Returns |
|
1
Year Ended 9/30/22 |
Inception
(9/5/18) to 9/30/22 |
Inception
(9/5/18) to 9/30/22 |
Fund
Performance |
|
|
|
NAV
|
-11.71%
|
2.16%
|
9.09%
|
Market
Price |
-11.66%
|
2.17%
|
9.14%
|
Index
Performance |
|
|
|
Dorsey
Wright Momentum Plus Value™ Index |
-11.14%
|
2.79%
|
11.85%
|
S&P
500® Index |
-15.47%
|
7.31%
|
33.25%
|
(See
Notes to Fund Performance Overview on page 10.)
The
Fund generated a NAV return of -11.71% during the 12-month period covered by this report. During the same period, the S&P 500®
Index (the “Benchmark”) generated a return of -15.47%. The greatest allocation in the Fund during the period covered by this
report was to investments in the Financials industry. This sector received an allocation of 33.5% and contributed -3.6% to the Fund’s
overall return. The greatest contribution to the Fund’s return for the period came from investments in the Energy sector, which
received an allocation of 13.2% and contributed 2.7%. The most negative contribution to the Fund’s return for the period came from
the Consumer Discretionary sector. Investments in this sector accounted for -4.3% of underperformance for the Fund during the period covered
by this report.
Nasdaq®
and Dorsey Wright Momentum Plus Value™ 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 their 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.
Fund
Performance Overview (Unaudited) (Continued)
First
Trust Dorsey Wright Momentum & Value ETF (DVLU) (Continued)
Sector
Allocation |
%
of Total Investments |
Financials
|
36.8%
|
Consumer
Discretionary |
15.5
|
Industrials
|
9.5
|
Materials
|
8.8
|
Health
Care |
8.2
|
Information
Technology |
5.6
|
Energy
|
5.0
|
Consumer
Staples |
4.9
|
Utilities
|
2.9
|
Communication
Services |
2.8
|
Total
|
100.0%
|
Top
Ten Holdings |
%
of Total Investments |
Unum
Group |
3.7%
|
Jabil,
Inc. |
3.2
|
UFP
Industries, Inc. |
3.1
|
Reliance
Steel & Aluminum Co. |
2.9
|
MetLife,
Inc. |
2.9
|
NRG
Energy, Inc. |
2.9
|
Nexstar
Media Group, Inc. |
2.8
|
McKesson
Corp. |
2.8
|
Prudential
Financial, Inc. |
2.8
|
American
International Group, Inc. |
2.7
|
Total
|
29.8%
|
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
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.
Fund
Performance Overview (Unaudited) (Continued)
First
Trust Dorsey Wright Momentum & Low Volatility ETF (DVOL)
The
First Trust Dorsey Wright Momentum & Low Volatility ETF (the “Fund”) seeks investment results that correspond generally
to the price and yield (before the Fund’s fees and expenses) of an index called the Dorsey Wright Momentum Plus Low Volatility™
Index (the “Index”). Under normal conditions, the Fund will invest at least 90% of its net assets (including investment borrowings)
in the equity securities that comprise the Index. The Fund, using an indexing investment approach, attempts to replicate, before fees
and expenses, the performance of the Index. The Index is a rules-based equity index designed to track the overall performance of the 50
stocks comprising the Nasdaq US Large Mid Cap Index™ that exhibit the lowest levels of volatility while still maintaining high levels
of “relative strength.” A relative strength analysis is a momentum-based investment strategy that emphasizes a security’s
forward price momentum in the security selection process. The Index is owned and was developed by Nasdaq, Inc. The shares of the Fund
are listed and traded on The Nasdaq Stock Exchange LLC, under the ticker symbol “DVOL.”
Performance
|
|
|
|
|
|
Average
Annual Total Returns |
Cumulative
Total Returns |
|
1
Year Ended 9/30/22 |
Inception
(9/5/18) to 9/30/22 |
Inception
(9/5/18) to 9/30/22 |
Fund
Performance |
|
|
|
NAV
|
-12.02%
|
5.70%
|
25.28%
|
Market
Price |
-11.94%
|
5.72%
|
25.38%
|
Index
Performance |
|
|
|
Dorsey
Wright Momentum Plus Low Volatility™ Index |
-11.49%
|
6.37%
|
28.55%
|
S&P
500® Index |
-15.47%
|
7.31%
|
33.25%
|
(See
Notes to Fund Performance Overview on page 10.)
The
Fund generated a NAV return of -12.02% during the 12-month period covered by this report. During the same period, the S&P 500®
Index (the “Benchmark”) generated a return of -15.47%. During the period covered by this report, the Fund allocated 25.1%
to the Real Estate sector, which was a greater allocation than that of any other sector during the same period. Investments in this sector
caused a -3.9% contribution to the Fund’s return, the most significant contribution to the Fund’s return of any sector during
the period. The second largest allocation in the Fund during the period was to the Industrials sector, which contributed -1.8% to the
Fund’s return and was the second worst contribution of any sector in the Fund. No sector had a positive contribution to the Fund’s
return during the period covered by this report.
Nasdaq®
and Dorsey Wright Momentum Plus Low Volatility™ 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 their 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.
Fund
Performance Overview (Unaudited) (Continued)
First
Trust Dorsey Wright Momentum & Low Volatility ETF (DVOL) (Continued)
Sector
Allocation |
%
of Total Investments |
Financials
|
24.6%
|
Industrials
|
19.6
|
Real
Estate |
14.8
|
Utilities
|
12.2
|
Health
Care |
11.6
|
Information
Technology |
6.5
|
Consumer
Staples |
5.6
|
Consumer
Discretionary |
3.0
|
Materials
|
1.1
|
Energy
|
1.0
|
Total
|
100.0%
|
Top
Ten Holdings |
%
of Total Investments |
Waste
Management, Inc. |
3.2%
|
Republic
Services, Inc. |
3.1
|
FirstEnergy
Corp. |
3.0
|
Ameren
Corp. |
3.0
|
McDonald’s
Corp. |
3.0
|
McKesson
Corp. |
3.0
|
AMETEK,
Inc. |
2.9
|
Constellation
Brands, Inc., Class A |
2.9
|
CenterPoint
Energy, Inc. |
2.8
|
Procter
& Gamble (The) Co. |
2.7
|
Total
|
29.6%
|
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
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.
Nasdaq®
and Dorsey Wright Momentum Plus Low Volatility™ 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 their 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.
Notes
to Fund Performance Overview (Unaudited)
Total
returns for the periods since inception are calculated from the inception date of each Fund. “Average Annual Total Returns”
represent the average annual change in value of an investment over the periods indicated. “Cumulative Total Returns” represent
the total change in value of an investment over the periods indicated.
Each
Fund’s per share net asset value (“NAV”) is the value of one share of the Fund and is computed by dividing the value
of all assets of the Fund (including accrued interest and dividends), less all liabilities (including accrued expenses and dividends declared
but unpaid), by the total number of outstanding shares. The price used to calculate market return (“Market Price”) is determined
by using the midpoint of the national best bid and offer price (“NBBO”) as of the time that the Fund’s NAV is calculated.
Under SEC rules, the NBBO consists of the highest displayed buy and lowest sell prices among the various exchanges trading the Fund at
the time the Fund’s NAV is calculated. 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.
First
Trust Exchange-Traded Fund VI
Understanding
Your Fund Expenses
September
30, 2022 (Unaudited)
As
a shareholder of First Trust SMID Cap Rising Dividend Achievers ETF, First Trust Dorsey Wright Momentum & Value ETF, or First Trust
Dorsey Wright Momentum & Low Volatility 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 September
30, 2022.
Actual
Expenses
The
first line in the following table provides information about actual account values and actual expenses. You may use the information in
this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value
by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under
the heading entitled “Expenses Paid During the Six-Month Period” to estimate the expenses you paid on your account during
this six-month period.
Hypothetical
Example for Comparison Purposes
The
second line in the following table provides information about hypothetical account values and hypothetical expenses based on each Fund’s
actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not each Fund’s actual return. The hypothetical
account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may
use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, compare this 5% hypothetical example
with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please
note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs such
as brokerage commissions. Therefore, the second line in the table is useful in comparing ongoing costs only, and will not help you determine
the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been
higher.
|
Beginning
Account Value April 1, 2022 |
Ending
Account Value September 30, 2022 |
Annualized
Expense Ratio Based on the Six-Month Period |
Expenses
Paid During the Six-Month Period (a) |
First
Trust SMID Cap Rising Dividend Achievers ETF (SDVY) |
Actual
|
$1,000.00
|
$840.30
|
0.60%
|
$2.77
|
Hypothetical
(5% return before expenses) |
$1,000.00
|
$1,022.06
|
0.60%
|
$3.04
|
First
Trust Dorsey Wright Momentum & Value ETF (DVLU) |
Actual
|
$1,000.00
|
$805.10
|
0.60%
|
$2.72
|
Hypothetical
(5% return before expenses) |
$1,000.00
|
$1,022.06
|
0.60%
|
$3.04
|
First
Trust Dorsey Wright Momentum & Low Volatility ETF (DVOL) |
Actual
|
$1,000.00
|
$843.00
|
0.60%
|
$2.77
|
Hypothetical
(5% return before expenses) |
$1,000.00
|
$1,022.06
|
0.60%
|
$3.04
|
(a)
|
Expenses
are equal to the annualized expense ratios as indicated in the table multiplied by the average account value over the period (April 1,
2022 through September 30, 2022), multiplied by 183/365 (to reflect the six-month period). |
First
Trust SMID Cap Rising Dividend Achievers ETF (SDVY)
Portfolio
of Investments
September
30, 2022
Shares
|
|
Description
|
|
Value
|
COMMON
STOCKS – 99.8% |
|
|
Auto
Components – 1.0% |
|
|
254,321
|
|
Standard
Motor Products, Inc. |
|
$8,265,433
|
|
|
Banks –
12.0% |
|
|
210,647
|
|
Bank
OZK |
|
8,333,195
|
237,101
|
|
Citizens
Financial Group, Inc. |
|
8,146,790
|
111,278
|
|
Comerica,
Inc. |
|
7,911,866
|
186,825
|
|
Eagle
Bancorp, Inc. |
|
8,373,496
|
120,292
|
|
East
West Bancorp, Inc. |
|
8,076,405
|
605,776
|
|
First
BanCorp |
|
8,287,016
|
328,512
|
|
Hilltop
Holdings, Inc. |
|
8,163,523
|
47,808
|
|
M&T
Bank Corp. |
|
8,429,507
|
270,204
|
|
Pacific
Premier Bancorp, Inc. |
|
8,365,516
|
111,822
|
|
Popular,
Inc. |
|
8,057,893
|
223,701
|
|
Synovus
Financial Corp. |
|
8,391,025
|
151,511
|
|
Zions
Bancorp N.A. |
|
7,705,849
|
|
|
|
|
98,242,081
|
|
|
Building
Products – 4.1% |
|
|
169,019
|
|
A.O.
Smith Corp. |
|
8,210,943
|
97,479
|
|
Allegion
PLC |
|
8,741,917
|
107,067
|
|
Owens
Corning |
|
8,416,537
|
119,015
|
|
UFP
Industries, Inc. |
|
8,588,122
|
|
|
|
|
33,957,519
|
|
|
Capital
Markets – 3.9% |
|
|
97,456
|
|
Evercore,
Inc., Class A |
|
8,015,756
|
362,137
|
|
Franklin
Resources, Inc. |
|
7,793,188
|
266,190
|
|
Jefferies
Financial Group, Inc. |
|
7,852,605
|
81,813
|
|
Raymond
James Financial, Inc. |
|
8,084,761
|
|
|
|
|
31,746,310
|
|
|
Chemicals –
2.9% |
|
|
237,664
|
|
Avient
Corp. |
|
7,201,219
|
340,414
|
|
Huntsman
Corp. |
|
8,353,760
|
96,223
|
|
Westlake
Corp. |
|
8,359,854
|
|
|
|
|
23,914,833
|
|
|
Commercial
Services & Supplies – 1.0% |
|
|
65,758
|
|
Tetra
Tech, Inc. |
|
8,451,876
|
|
|
Construction
& Engineering – 2.1% |
|
|
122,673
|
|
AECOM
|
|
8,387,153
|
74,056
|
|
EMCOR
Group, Inc. |
|
8,551,987
|
|
|
|
|
16,939,140
|
|
|
Consumer
Finance – 1.0% |
|
|
571,732
|
|
SLM
Corp. |
|
7,998,531
|
|
|
Containers
& Packaging – 1.0% |
|
|
74,043
|
|
Packaging
Corp. of America |
|
8,314,288
|
|
|
Diversified
Consumer Services – 1.0% |
|
|
15,801
|
|
Graham
Holdings Co., Class B |
|
8,500,622
|
Shares
|
|
Description
|
|
Value
|
|
|
|
Diversified
Financial Services – 1.0% |
|
|
139,090
|
|
Voya
Financial, Inc. |
|
$8,414,945
|
|
|
Electronic
Equipment, Instruments & Components – 1.0% |
|
|
41,303
|
|
Littelfuse,
Inc. |
|
8,206,493
|
|
|
Food
Products – 1.0% |
|
|
2,394
|
|
Seaboard
Corp. |
|
8,145,968
|
|
|
Hotels,
Restaurants & Leisure – 1.0% |
|
|
96,594
|
|
Texas
Roadhouse, Inc. |
|
8,428,792
|
|
|
Household
Durables – 8.0% |
|
|
190,474
|
|
Century
Communities, Inc. |
|
8,148,478
|
381,732
|
|
Ethan
Allen Interiors, Inc. |
|
8,069,814
|
102,359
|
|
Installed
Building Products, Inc. |
|
8,290,055
|
350,213
|
|
La-Z-Boy,
Inc. |
|
7,904,307
|
297,540
|
|
MDC
Holdings, Inc. |
|
8,158,547
|
222,109
|
|
PulteGroup,
Inc. |
|
8,329,088
|
200,231
|
|
Toll
Brothers, Inc. |
|
8,409,702
|
60,269
|
|
Whirlpool
Corp. |
|
8,124,864
|
|
|
|
|
65,434,855
|
|
|
Insurance –
8.0% |
|
|
67,960
|
|
American
Financial Group, Inc. |
|
8,354,323
|
228,498
|
|
CNA
Financial Corp. |
|
8,431,576
|
30,882
|
|
Everest
Re Group Ltd. |
|
8,104,672
|
217,839
|
|
Fidelity
National Financial, Inc. |
|
7,885,772
|
172,899
|
|
First
American Financial Corp. |
|
7,970,644
|
400,481
|
|
Old
Republic International Corp. |
|
8,382,067
|
113,518
|
|
Principal
Financial Group, Inc. |
|
8,190,324
|
218,441
|
|
Unum
Group |
|
8,475,511
|
|
|
|
|
65,794,889
|
|
|
IT
Services – 2.1% |
|
|
194,393
|
|
Genpact
Ltd. |
|
8,508,582
|
617,779
|
|
Western
Union (The) Co. |
|
8,340,016
|
|
|
|
|
16,848,598
|
|
|
Leisure
Products – 4.9% |
|
|
182,018
|
|
Acushnet
Holdings Corp. |
|
7,915,963
|
159,529
|
|
Johnson
Outdoors, Inc., Class A |
|
8,185,433
|
81,070
|
|
Polaris,
Inc. |
|
7,754,345
|
770,909
|
|
Smith
& Wesson Brands, Inc. |
|
7,994,326
|
168,830
|
|
Sturm
Ruger & Co., Inc. |
|
8,574,876
|
|
|
|
|
40,424,943
|
|
|
Machinery –
9.2% |
|
|
84,304
|
|
AGCO
Corp. |
|
8,107,516
|
96,234
|
|
Crane
Holdings Co. |
|
8,424,324
|
141,072
|
|
Graco,
Inc. |
|
8,457,266
|
42,659
|
|
IDEX
Corp. |
|
8,525,401
|
146,497
|
|
Mueller
Industries, Inc. |
|
8,707,782
|
39,919
|
|
Nordson
Corp. |
|
8,473,606
|
Page
12
See
Notes to Financial Statements
First
Trust SMID Cap Rising Dividend Achievers ETF (SDVY)
Portfolio
of Investments (Continued)
September
30, 2022
Shares
|
|
Description
|
|
Value
|
COMMON
STOCKS (Continued) |
|
|
Machinery (Continued)
|
|
|
40,571
|
|
Snap-on,
Inc. |
|
$8,168,971
|
267,492
|
|
Terex
Corp. |
|
7,955,212
|
98,393
|
|
Toro
(The) Co. |
|
8,509,027
|
|
|
|
|
75,329,105
|
|
|
Marine –
2.0% |
|
|
658,345
|
|
Genco
Shipping & Trading Ltd. |
|
8,249,063
|
125,979
|
|
Matson,
Inc. |
|
7,750,228
|
|
|
|
|
15,999,291
|
|
|
Media –
2.0% |
|
|
320,218
|
|
Interpublic
Group of (The) Cos., Inc. |
|
8,197,581
|
130,501
|
|
Omnicom
Group, Inc. |
|
8,233,308
|
|
|
|
|
16,430,889
|
|
|
Metals
& Mining – 2.8% |
|
|
232,554
|
|
Commercial
Metals Co. |
|
8,251,016
|
116,535
|
|
Steel
Dynamics, Inc. |
|
8,268,158
|
170,566
|
|
Worthington
Industries, Inc. |
|
6,505,387
|
|
|
|
|
23,024,561
|
|
|
Oil,
Gas & Consumable Fuels – 4.0% |
|
|
201,885
|
|
California
Resources Corp. |
|
7,758,440
|
63,558
|
|
Chord
Energy Corp. |
|
8,692,828
|
385,083
|
|
Magnolia
Oil & Gas Corp., Class A |
|
7,628,494
|
4,930
|
|
Texas
Pacific Land Corp. |
|
8,761,744
|
|
|
|
|
32,841,506
|
|
|
Paper
& Forest Products – 1.0% |
|
|
166,450
|
|
Louisiana-Pacific
Corp. |
|
8,520,576
|
|
|
Personal
Products – 1.0% |
|
|
73,485
|
|
Medifast,
Inc. |
|
7,962,835
|
|
|
Professional
Services – 1.1% |
|
|
113,964
|
|
Robert
Half International, Inc. |
|
8,718,246
|
|
|
Real
Estate Management & Development – 0.9% |
|
|
235,691
|
|
Marcus
& Millichap, Inc. |
|
7,725,951
|
|
|
Road
& Rail – 2.1% |
|
|
61,998
|
|
Landstar
System, Inc. |
|
8,950,651
|
417,098
|
|
Schneider
National, Inc., Class B |
|
8,467,090
|
|
|
|
|
17,417,741
|
|
|
Semiconductors
& Semiconductor Equipment – 2.9% |
|
|
482,716
|
|
Amkor
Technology, Inc. |
|
8,230,308
|
94,198
|
|
Entegris,
Inc. |
|
7,820,318
|
Shares
|
|
Description
|
|
Value
|
|
|
|
Semiconductors
& Semiconductor Equipment (Continued) |
|
|
85,964
|
|
Universal
Display Corp. |
|
$8,110,703
|
|
|
|
|
24,161,329
|
|
|
Software –
1.0% |
|
|
411,191
|
|
NortonLifeLock,
Inc. |
|
8,281,387
|
|
|
Specialty
Retail – 4.9% |
|
|
798,428
|
|
American
Eagle Outfitters, Inc. |
|
7,768,704
|
260,031
|
|
Buckle
(The), Inc. |
|
8,232,581
|
78,307
|
|
Dick’s
Sporting Goods, Inc. |
|
8,194,045
|
326,923
|
|
Haverty
Furniture Cos., Inc. |
|
8,140,383
|
65,076
|
|
Williams-Sonoma,
Inc. |
|
7,669,207
|
|
|
|
|
40,004,920
|
|
|
Technology
Hardware, Storage & Peripherals – 1.0% |
|
|
127,284
|
|
NetApp,
Inc. |
|
7,872,515
|
|
|
Textiles,
Apparel & Luxury Goods – 2.9% |
|
|
123,130
|
|
Columbia
Sportswear Co. |
|
8,286,649
|
496,156
|
|
Levi
Strauss & Co., Class A |
|
7,179,377
|
298,656
|
|
Steven
Madden Ltd. |
|
7,965,156
|
|
|
|
|
23,431,182
|
|
|
Thrifts
& Mortgage Finance – 2.9% |
|
|
224,672
|
|
Essent
Group Ltd. |
|
7,834,313
|
612,618
|
|
MGIC
Investment Corp. |
|
7,853,763
|
419,874
|
|
Radian
Group, Inc. |
|
8,099,369
|
|
|
|
|
23,787,445
|
|
|
Trading
Companies & Distributors – 1.1% |
|
|
147,716
|
|
Boise
Cascade Co. |
|
8,783,193
|
|
|
Total
Investments – 99.8% |
|
818,322,788
|
|
|
(Cost
$1,005,213,394) |
|
|
|
|
Net
Other Assets and Liabilities – 0.2% |
|
1,298,415
|
|
|
Net
Assets – 100.0% |
|
$819,621,203
|
See
Notes to Financial Statements
Page
13
First
Trust SMID Cap Rising Dividend Achievers ETF (SDVY)
Portfolio
of Investments (Continued)
September
30, 2022
Valuation
Inputs
A
summary of the inputs used to value the Fund’s investments as of September 30, 2022 is as follows (see Note 2A - Portfolio Valuation
in the Notes to Financial Statements):
|
Total
Value at 9/30/2022 |
Level
1 Quoted Prices |
Level
2 Significant Observable Inputs |
Level
3 Significant Unobservable Inputs |
Common
Stocks* |
$ 818,322,788
|
$ 818,322,788
|
$ —
|
$ —
|
*
|
See
Portfolio of Investments for industry breakout. |
Page
14
See
Notes to Financial Statements
First
Trust Dorsey Wright Momentum & Value ETF (DVLU)
Portfolio
of Investments
September
30, 2022
Shares
|
|
Description
|
|
Value
|
COMMON
STOCKS – 97.5% |
|
|
Aerospace
& Defense – 1.0% |
|
|
3,402
|
|
Textron,
Inc. |
|
$198,201
|
|
|
Air
Freight & Logistics – 0.7% |
|
|
973
|
|
FedEx
Corp. |
|
144,461
|
|
|
Banks –
9.1% |
|
|
2,945
|
|
Comerica,
Inc. |
|
209,390
|
6,098
|
|
Popular,
Inc. |
|
439,422
|
20,469
|
|
Regions
Financial Corp. |
|
410,813
|
11,343
|
|
Synovus
Financial Corp. |
|
425,476
|
3,439
|
|
Wintrust
Financial Corp. |
|
280,450
|
|
|
|
|
1,765,551
|
|
|
Beverages –
2.4% |
|
|
9,670
|
|
Molson
Coors Beverage Co., Class B |
|
464,063
|
|
|
Building
Products – 3.1% |
|
|
8,201
|
|
UFP
Industries, Inc. |
|
591,784
|
|
|
Chemicals –
5.9% |
|
|
3,519
|
|
CF
Industries Holdings, Inc. |
|
338,704
|
4,451
|
|
Eastman
Chemical Co. |
|
316,244
|
6,448
|
|
LyondellBasell
Industries N.V., Class A |
|
485,405
|
|
|
|
|
1,140,353
|
|
|
Construction
& Engineering – 1.6% |
|
|
4,807
|
|
MasTec,
Inc. (a) |
|
305,244
|
|
|
Consumer
Finance – 1.1% |
|
|
14,811
|
|
SLM
Corp. |
|
207,206
|
|
|
Distributors –
1.0% |
|
|
3,910
|
|
LKQ
Corp. |
|
184,357
|
|
|
Electric
Utilities – 2.9% |
|
|
14,861
|
|
NRG
Energy, Inc. |
|
568,730
|
|
|
Electronic
Equipment, Instruments & Components – 3.2% |
|
|
10,577
|
|
Jabil,
Inc. |
|
610,399
|
|
|
Food
& Staples Retailing – 2.5% |
|
|
10,613
|
|
Albertsons
Cos., Inc., Class A |
|
263,839
|
4,860
|
|
Kroger
(The) Co. |
|
212,625
|
|
|
|
|
476,464
|
|
|
Health
Care Providers & Services – 8.2% |
|
|
4,259
|
|
Centene
Corp. (a) |
|
331,393
|
1,578
|
|
Cigna
Corp. |
|
437,848
|
1,342
|
|
Laboratory
Corp of America Holdings |
|
274,855
|
Shares
|
|
Description
|
|
Value
|
|
|
|
Health
Care Providers & Services (Continued) |
|
|
1,580
|
|
McKesson
Corp. |
|
$536,994
|
|
|
|
|
1,581,090
|
|
|
Hotels,
Restaurants & Leisure – 1.1% |
|
|
4,527
|
|
Boyd
Gaming Corp. |
|
215,712
|
|
|
Household
Durables – 4.7% |
|
|
4,684
|
|
Mohawk
Industries, Inc. (a) |
|
427,134
|
3,559
|
|
Whirlpool
Corp. |
|
479,789
|
|
|
|
|
906,923
|
|
|
Insurance –
24.2% |
|
|
11,108
|
|
American
International Group, Inc. |
|
527,408
|
7,085
|
|
Arch
Capital Group Ltd. (a) |
|
322,651
|
1,467
|
|
Assurant,
Inc. |
|
213,111
|
10,275
|
|
Axis
Capital Holdings Ltd. |
|
505,016
|
2,169
|
|
Globe
Life, Inc. |
|
216,249
|
1,688
|
|
Hanover
Insurance Group (The), Inc. |
|
216,300
|
9,377
|
|
MetLife,
Inc. |
|
569,934
|
7,279
|
|
Principal
Financial Group, Inc. |
|
525,180
|
6,209
|
|
Prudential
Financial, Inc. |
|
532,608
|
2,217
|
|
Travelers
(The) Cos., Inc. |
|
339,644
|
18,578
|
|
Unum
Group |
|
720,827
|
|
|
|
|
4,688,928
|
|
|
IT
Services – 2.4% |
|
|
19,333
|
|
DXC
Technology Co. (a) |
|
473,272
|
|
|
Machinery –
1.9% |
|
|
6,210
|
|
Timken
(The) Co. |
|
366,638
|
|
|
Media –
2.8% |
|
|
3,232
|
|
Nexstar
Media Group, Inc. |
|
539,259
|
|
|
Metals
& Mining – 2.9% |
|
|
3,270
|
|
Reliance
Steel & Aluminum Co. |
|
570,321
|
|
|
Oil,
Gas & Consumable Fuels – 5.0% |
|
|
5,259
|
|
Exxon
Mobil Corp. |
|
459,163
|
18,198
|
|
Kinder
Morgan, Inc. |
|
302,815
|
3,335
|
|
Occidental
Petroleum Corp. |
|
204,936
|
|
|
|
|
966,914
|
|
|
Professional
Services – 1.2% |
|
|
921
|
|
CACI
International, Inc., Class A (a) |
|
240,436
|
|
|
Specialty
Retail – 7.4% |
|
|
4,828
|
|
AutoNation,
Inc. (a) |
|
491,828
|
2,034
|
|
Lithia
Motors, Inc. |
|
436,395
|
5,205
|
|
Penske
Automotive Group, Inc. |
|
512,328
|
|
|
|
|
1,440,551
|
See
Notes to Financial Statements
Page
15
First
Trust Dorsey Wright Momentum & Value ETF (DVLU)
Portfolio
of Investments (Continued)
September
30, 2022
Shares
|
|
Description
|
|
Value
|
COMMON
STOCKS (Continued) |
|
|
Textiles,
Apparel & Luxury Goods – 1.2% |
|
|
8,484
|
|
Tapestry,
Inc. |
|
$241,200
|
|
|
Total
Common Stocks |
|
18,888,057
|
|
|
(Cost
$20,557,061) |
|
|
REAL
ESTATE INVESTMENT TRUSTS – 2.3% |
|
|
Mortgage
Real Estate Investment Trusts – 2.3% |
|
|
61,340
|
|
Rithm
Capital Corp. |
|
449,009
|
|
|
(Cost
$648,020) |
|
|
|
|
Total
Investments – 99.8% |
|
19,337,066
|
|
|
(Cost
$21,205,081) |
|
|
|
|
Net
Other Assets and Liabilities – 0.2% |
|
32,149
|
|
|
Net
Assets – 100.0% |
|
$19,369,215
|
(a)
|
Non-income
producing security. |
Valuation
Inputs
A
summary of the inputs used to value the Fund’s investments as of September 30, 2022 is as follows (see Note 2A - Portfolio Valuation
in the Notes to Financial Statements):
|
Total
Value at 9/30/2022 |
Level
1 Quoted Prices |
Level
2 Significant Observable Inputs |
Level
3 Significant Unobservable Inputs |
Common
Stocks* |
$ 18,888,057
|
$ 18,888,057
|
$ —
|
$ —
|
Real
Estate Investment Trusts* |
449,009
|
449,009
|
—
|
—
|
Total
Investments |
$ 19,337,066
|
$ 19,337,066
|
$—
|
$—
|
*
|
See
Portfolio of Investments for industry breakout. |
Page
16
See
Notes to Financial Statements
First
Trust Dorsey Wright Momentum & Low Volatility ETF (DVOL)
Portfolio
of Investments
September
30, 2022
Shares
|
|
Description
|
|
Value
|
COMMON
STOCKS – 82.3% |
|
|
Aerospace
& Defense – 2.6% |
|
|
4,480
|
|
Huntington
Ingalls Industries, Inc. |
|
$992,320
|
13,350
|
|
Raytheon
Technologies Corp. |
|
1,092,831
|
|
|
|
|
2,085,151
|
|
|
Beverages –
2.9% |
|
|
10,178
|
|
Constellation
Brands, Inc., Class A |
|
2,337,683
|
|
|
Biotechnology –
2.6% |
|
|
15,739
|
|
AbbVie,
Inc. |
|
2,112,331
|
|
|
Commercial
Services & Supplies – 6.2% |
|
|
18,219
|
|
Republic
Services, Inc. |
|
2,478,513
|
16,121
|
|
Waste
Management, Inc. |
|
2,582,745
|
|
|
|
|
5,061,258
|
|
|
Containers
& Packaging – 1.1% |
|
|
8,092
|
|
Packaging
Corp. of America |
|
908,651
|
|
|
Electric
Utilities – 3.0% |
|
|
66,759
|
|
FirstEnergy
Corp. |
|
2,470,083
|
|
|
Electrical
Equipment – 2.9% |
|
|
20,872
|
|
AMETEK,
Inc. |
|
2,367,093
|
|
|
Electronic
Equipment, Instruments & Components – 1.3% |
|
|
15,575
|
|
Amphenol
Corp., Class A |
|
1,042,902
|
|
|
Gas
Utilities – 1.7% |
|
|
21,965
|
|
National
Fuel Gas Co. |
|
1,351,946
|
|
|
Health
Care Providers & Services – 9.0% |
|
|
16,237
|
|
AmerisourceBergen
Corp. |
|
2,197,353
|
1,917
|
|
Chemed
Corp. |
|
836,886
|
7,105
|
|
McKesson
Corp. |
|
2,414,776
|
3,692
|
|
UnitedHealth
Group, Inc. |
|
1,864,608
|
|
|
|
|
7,313,623
|
|
|
Hotels,
Restaurants & Leisure – 3.0% |
|
|
10,482
|
|
McDonald’s
Corp. |
|
2,418,617
|
|
|
Household
Products – 2.7% |
|
|
17,563
|
|
Procter
& Gamble (The) Co. |
|
2,217,329
|
|
|
Insurance –
21.9% |
|
|
6,252
|
|
American
Financial Group, Inc. |
|
768,558
|
34,095
|
|
Arch
Capital Group Ltd. (a) |
|
1,552,686
|
8,822
|
|
Arthur
J. Gallagher & Co. |
|
1,510,503
|
13,796
|
|
Assurant,
Inc. |
|
2,004,145
|
11,549
|
|
Chubb
Ltd. |
|
2,100,532
|
11,908
|
|
Hanover
Insurance Group (The), Inc. |
|
1,525,891
|
Shares
|
|
Description
|
|
Value
|
|
|
|
Insurance (Continued)
|
|
|
14,652
|
|
Marsh
& McLennan Cos., Inc. |
|
$2,187,397
|
18,398
|
|
Progressive
(The) Corp. |
|
2,138,032
|
13,473
|
|
Travelers
(The) Cos., Inc. |
|
2,064,064
|
30,364
|
|
W.R.
Berkley Corp. |
|
1,960,907
|
|
|
|
|
17,812,715
|
|
|
IT
Services – 5.2% |
|
|
5,976
|
|
Automatic
Data Processing, Inc. |
|
1,351,711
|
9,834
|
|
Jack
Henry & Associates, Inc. |
|
1,792,443
|
9,555
|
|
Paychex,
Inc. |
|
1,072,167
|
|
|
|
|
4,216,321
|
|
|
Machinery –
1.2% |
|
|
8,519
|
|
Dover
Corp. |
|
993,145
|
|
|
Multi-Utilities –
5.8% |
|
|
30,198
|
|
Ameren
Corp. |
|
2,432,449
|
81,266
|
|
CenterPoint
Energy, Inc. |
|
2,290,076
|
|
|
|
|
4,722,525
|
|
|
Oil,
Gas & Consumable Fuels – 0.9% |
|
|
27,160
|
|
Williams
(The) Cos., Inc. |
|
777,591
|
|
|
Professional
Services – 1.0% |
|
|
3,156
|
|
CACI
International, Inc., Class A (a) |
|
823,905
|
|
|
Road
& Rail – 2.5% |
|
|
10,665
|
|
Union
Pacific Corp. |
|
2,077,755
|
|
|
Trading
Companies & Distributors – 3.1% |
|
|
31,144
|
|
Fastenal
Co. |
|
1,433,870
|
2,285
|
|
WW
Grainger, Inc. |
|
1,117,799
|
|
|
|
|
2,551,669
|
|
|
Water
Utilities – 1.7% |
|
|
10,697
|
|
American
Water Works Co., Inc. |
|
1,392,321
|
|
|
Total
Common Stocks |
|
67,054,614
|
|
|
(Cost
$72,210,099) |
|
|
REAL
ESTATE INVESTMENT TRUSTS – 17.5% |
|
|
Equity
Real Estate Investment Trusts – 14.8% |
|
|
32,966
|
|
Apartment
Income REIT Corp. |
|
1,273,147
|
14,709
|
|
Camden
Property Trust |
|
1,756,990
|
16,141
|
|
Equity
LifeStyle Properties, Inc. |
|
1,014,300
|
46,638
|
|
First
Industrial Realty Trust, Inc. |
|
2,089,849
|
12,474
|
|
Mid-America
Apartment Communities, Inc. |
|
1,934,343
|
4,416
|
|
Public
Storage |
|
1,293,049
|
7,518
|
|
Sun
Communities, Inc. |
|
1,017,411
|
17,545
|
|
Terreno
Realty Corp. |
|
929,710
|
11,342
|
|
Welltower,
Inc. |
|
729,517
|
|
|
|
|
12,038,316
|
See
Notes to Financial Statements
Page
17
First
Trust Dorsey Wright Momentum & Low Volatility ETF (DVOL)
Portfolio
of Investments (Continued)
September
30, 2022
Shares
|
|
Description
|
|
Value
|
REAL
ESTATE INVESTMENT TRUSTS (Continued) |
|
|
Mortgage
Real Estate Investment Trusts – 2.7% |
|
|
60,662
|
|
Blackstone
Mortgage Trust, Inc., Class A |
|
$1,415,851
|
41,174
|
|
Starwood
Property Trust, Inc. |
|
750,191
|
|
|
|
|
2,166,042
|
|
|
Total
Real Estate Investment Trusts |
|
14,204,358
|
|
|
(Cost
$18,319,199) |
|
|
|
|
Total
Investments – 99.8% |
|
81,258,972
|
|
|
(Cost
$90,529,298) |
|
|
|
|
Net
Other Assets and Liabilities – 0.2% |
|
194,589
|
|
|
Net
Assets – 100.0% |
|
$81,453,561
|
(a)
|
Non-income
producing security. |
Valuation
Inputs
A
summary of the inputs used to value the Fund’s investments as of September 30, 2022 is as follows (see Note 2A - Portfolio Valuation
in the Notes to Financial Statements):
|
Total
Value at 9/30/2022 |
Level
1 Quoted Prices |
Level
2 Significant Observable Inputs |
Level
3 Significant Unobservable Inputs |
Common
Stocks* |
$ 67,054,614
|
$ 67,054,614
|
$ —
|
$ —
|
Real
Estate Investment Trusts* |
14,204,358
|
14,204,358
|
—
|
—
|
Total
Investments |
$ 81,258,972
|
$ 81,258,972
|
$—
|
$—
|
*
|
See
Portfolio of Investments for industry breakout. |
Page
18
See
Notes to Financial Statements
First
Trust Exchange-Traded Fund VI
Statements
of Assets and Liabilities
September
30, 2022
|
First
Trust SMID Cap Rising Dividend Achievers ETF (SDVY) |
|
First
Trust Dorsey Wright Momentum & Value ETF (DVLU) |
|
First
Trust Dorsey Wright Momentum & Low Volatility ETF (DVOL) |
ASSETS:
|
|
|
|
|
|
Investments, at value
|
$ 818,322,788
|
|
$ 19,337,066
|
|
$ 81,258,972
|
Cash
|
791,404
|
|
18,521
|
|
77,073
|
Receivables:
|
|
|
|
|
|
Dividends
|
941,664
|
|
23,950
|
|
160,765
|
Dividend reclaims
|
87
|
|
—
|
|
—
|
Total Assets
|
820,055,943
|
|
19,379,537
|
|
81,496,810
|
LIABILITIES:
|
|
|
|
|
|
Payables:
|
|
|
|
|
|
Investment advisory fees
|
434,740
|
|
10,322
|
|
43,249
|
Total Liabilities
|
434,740
|
|
10,322
|
|
43,249
|
NET ASSETS
|
$819,621,203
|
|
$19,369,215
|
|
$81,453,561
|
NET
ASSETS consist of: |
|
|
|
|
|
Paid-in capital
|
$ 1,035,161,833
|
|
$ 32,959,122
|
|
$ 111,142,463
|
Par value
|
355,000
|
|
9,500
|
|
34,000
|
Accumulated distributable earnings (loss)
|
(215,895,630)
|
|
(13,599,407)
|
|
(29,722,902)
|
NET ASSETS
|
$819,621,203
|
|
$19,369,215
|
|
$81,453,561
|
NET ASSET VALUE, per share
|
$23.09
|
|
$20.39
|
|
$23.96
|
Number of shares outstanding (unlimited number of shares authorized, par value $0.01 per share)
|
35,500,002
|
|
950,002
|
|
3,400,002
|
Investments, at cost
|
$1,005,213,394
|
|
$21,205,081
|
|
$90,529,298
|
See
Notes to Financial Statements
Page
19
First
Trust Exchange-Traded Fund VI
Statements
of Operations
For
the Year Ended September 30, 2022
|
First
Trust SMID Cap Rising Dividend Achievers ETF (SDVY) |
|
First
Trust Dorsey Wright Momentum & Value ETF (DVLU) |
|
First
Trust Dorsey Wright Momentum & Low Volatility ETF (DVOL) |
INVESTMENT
INCOME: |
|
|
|
|
|
Dividends
|
$ 19,672,042
|
|
$ 549,320
|
|
$ 1,803,013
|
Interest
|
8,940
|
|
159
|
|
772
|
Foreign withholding tax
|
(36,758)
|
|
(1,129)
|
|
—
|
Other
|
—
|
|
44
|
|
—
|
Total investment income
|
19,644,224
|
|
548,394
|
|
1,803,785
|
EXPENSES:
|
|
|
|
|
|
Investment advisory fees
|
4,135,646
|
|
146,712
|
|
659,345
|
Total expenses
|
4,135,646
|
|
146,712
|
|
659,345
|
NET INVESTMENT INCOME (LOSS)
|
15,508,578
|
|
401,682
|
|
1,144,440
|
NET
REALIZED AND UNREALIZED GAIN (LOSS): |
|
|
|
|
|
Net
realized gain (loss) on: |
|
|
|
|
|
Investments
|
(33,667,645)
|
|
(1,910,979)
|
|
(6,255,044)
|
In-kind redemptions
|
9,129,522
|
|
331,109
|
|
10,836,919
|
Net realized gain (loss)
|
(24,538,123)
|
|
(1,579,870)
|
|
4,581,875
|
Net
change in unrealized appreciation (depreciation) on: |
|
|
|
|
|
Investments
|
(182,334,771)
|
|
(1,474,104)
|
|
(18,738,146)
|
NET REALIZED AND UNREALIZED GAIN (LOSS)
|
(206,872,894)
|
|
(3,053,974)
|
|
(14,156,271)
|
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS
|
$(191,364,316)
|
|
$(2,652,292)
|
|
$(13,011,831)
|
Page
20
See
Notes to Financial Statements
This
page intentionally left blank
First
Trust Exchange-Traded Fund VI
Statements
of Changes in Net Assets
|
First
Trust SMID Cap Rising Dividend Achievers ETF (SDVY) |
|
First
Trust Dorsey Wright Momentum & Value ETF (DVLU) |
|
Year
Ended 9/30/2022 |
|
Year
Ended 9/30/2021 |
|
Year
Ended 9/30/2022 |
|
Year
Ended 9/30/2021 |
OPERATIONS:
|
|
|
|
|
|
|
|
Net investment income (loss)
|
$ 15,508,578
|
|
$ 1,215,419
|
|
$ 401,682
|
|
$ 403,881
|
Net realized gain (loss)
|
(24,538,123)
|
|
4,399,493
|
|
(1,579,870)
|
|
7,489,708
|
Net change in unrealized appreciation (depreciation)
|
(182,334,771)
|
|
(4,309,095)
|
|
(1,474,104)
|
|
(1,439,711)
|
Net increase (decrease) in net assets resulting from operations
|
(191,364,316)
|
|
1,305,817
|
|
(2,652,292)
|
|
6,453,878
|
DISTRIBUTIONS
TO SHAREHOLDERS FROM: |
|
|
|
|
|
|
|
Investment operations
|
(14,025,016)
|
|
(1,005,851)
|
|
(416,941)
|
|
(376,450)
|
SHAREHOLDER
TRANSACTIONS: |
|
|
|
|
|
|
|
Proceeds from shares sold
|
937,688,574
|
|
225,198,706
|
|
5,097,895
|
|
63,958,085
|
Cost of shares redeemed
|
(123,351,150)
|
|
(24,875,461)
|
|
(8,523,685)
|
|
(58,491,461)
|
Net increase (decrease) in net assets resulting from shareholder transactions
|
814,337,424
|
|
200,323,245
|
|
(3,425,790)
|
|
5,466,624
|
Total increase (decrease) in net assets
|
608,948,092
|
|
200,623,211
|
|
(6,495,023)
|
|
11,544,052
|
NET
ASSETS: |
|
|
|
|
|
|
|
Beginning of period
|
210,673,111
|
|
10,049,900
|
|
25,864,238
|
|
14,320,186
|
End of period
|
$819,621,203
|
|
$210,673,111
|
|
$19,369,215
|
|
$25,864,238
|
CHANGES
IN SHARES OUTSTANDING: |
|
|
|
|
|
|
|
Shares outstanding, beginning of period
|
7,450,002
|
|
550,002
|
|
1,100,002
|
|
950,002
|
Shares sold
|
32,800,000
|
|
7,800,000
|
|
200,000
|
|
2,900,000
|
Shares redeemed
|
(4,750,000)
|
|
(900,000)
|
|
(350,000)
|
|
(2,750,000)
|
Shares outstanding, end of period
|
35,500,002
|
|
7,450,002
|
|
950,002
|
|
1,100,002
|
Page
22
See
Notes to Financial Statements
First
Trust Dorsey Wright Momentum & Low Volatility ETF (DVOL) |
Year
Ended 9/30/2022 |
|
Year
Ended 9/30/2021 |
|
|
|
$ 1,144,440
|
|
$ 436,137
|
4,581,875
|
|
24,241,948
|
(18,738,146)
|
|
750,009
|
(13,011,831)
|
|
25,428,094
|
|
|
|
(1,071,096)
|
|
(398,380)
|
|
|
|
93,110,294
|
|
173,667,860
|
(118,688,168)
|
|
(202,257,238)
|
(25,577,874)
|
|
(28,589,378)
|
(39,660,801)
|
|
(3,559,664)
|
|
|
|
121,114,362
|
|
124,674,026
|
$81,453,561
|
|
$121,114,362
|
|
|
|
4,400,002
|
|
5,550,002
|
3,300,000
|
|
6,800,000
|
(4,300,000)
|
|
(7,950,000)
|
3,400,002
|
|
4,400,002
|
See
Notes to Financial Statements
Page
23
First
Trust Exchange-Traded Fund VI
Financial
Highlights
For
a share outstanding throughout each period
First
Trust SMID Cap Rising Dividend Achievers ETF (SDVY)
|
Year
Ended September 30, |
|
Period
Ended 9/30/2018 (a) |
2022
|
|
2021
|
|
2020
|
|
2019
|
|
Net asset value, beginning of period
|
$ 28.28
|
|
$ 18.27
|
|
$ 20.37
|
|
$ 21.28
|
|
$ 19.94
|
Income
from investment operations: |
|
|
|
|
|
|
|
|
|
Net investment income (loss)
|
0.51
|
|
0.36
|
|
0.33
|
|
0.35
|
|
0.26
|
Net realized and unrealized gain (loss)
|
(5.21)
|
|
9.99
|
|
(2.08)
|
|
(0.92)
|
|
1.31
|
Total from investment operations
|
(4.70)
|
|
10.35
|
|
(1.75)
|
|
(0.57)
|
|
1.57
|
Distributions
paid to shareholders from: |
|
|
|
|
|
|
|
|
|
Net investment income
|
(0.49)
|
|
(0.34)
|
|
(0.35)
|
|
(0.34)
|
|
(0.23)
|
Net asset value, end of period
|
$23.09
|
|
$28.28
|
|
$18.27
|
|
$20.37
|
|
$21.28
|
Total return (b)
|
(16.78)%
|
|
56.77%
|
|
(8.56)%
|
|
(2.59)%
|
|
7.92%
|
Ratios
to average net assets/supplemental data: |
|
|
|
|
|
|
|
|
|
Net assets, end of period (in 000’s)
|
$ 819,621
|
|
$ 210,673
|
|
$ 10,050
|
|
$ 7,128
|
|
$ 4,257
|
Ratio of total expenses to average net assets
|
0.60%
|
|
0.60%
|
|
0.60%
|
|
0.60%
|
|
0.60% (c)
|
Ratio of net investment income (loss) to average net assets
|
2.25%
|
|
1.77%
|
|
1.83%
|
|
1.95%
|
|
1.49% (c)
|
Portfolio turnover rate (d)
|
86%
|
|
36%
|
|
76%
|
|
78%
|
|
72%
|
(a)
|
Inception
date is November 1, 2017, which is consistent with the commencement of investment operations and is the date the initial creation units
were established. |
(b)
|
Total
return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all distributions
at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not reflect
the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is calculated
for the time period presented and is not annualized for periods of less than a year. |
(c)
|
Annualized.
|
(d)
|
Portfolio
turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities
received or delivered from processing creations or redemptions and in-kind transactions. |
Page
24
See
Notes to Financial Statements
First
Trust Exchange-Traded Fund VI
Financial
Highlights (Continued)
For
a share outstanding throughout each period
First
Trust Dorsey Wright Momentum & Value ETF (DVLU)
|
Year
Ended September 30, |
|
Period
Ended 9/30/2018 (a) |
2022
|
|
2021
|
|
2020
|
|
2019
|
|
Net asset value, beginning of period
|
$ 23.51
|
|
$ 15.07
|
|
$ 18.52
|
|
$ 19.46
|
|
$ 19.98
|
Income
from investment operations: |
|
|
|
|
|
|
|
|
|
Net investment income (loss)
|
0.40
|
|
0.29
|
|
0.25
|
|
0.33
|
|
0.02
|
Net realized and unrealized gain (loss)
|
(3.11)
|
|
8.42
|
|
(3.44)
|
|
(0.94)
|
|
(0.54)
|
Total from investment operations
|
(2.71)
|
|
8.71
|
|
(3.19)
|
|
(0.61)
|
|
(0.52)
|
Distributions
paid to shareholders from: |
|
|
|
|
|
|
|
|
|
Net investment income
|
(0.41)
|
|
(0.27)
|
|
(0.26)
|
|
(0.33)
|
|
—
|
Net asset value, end of period
|
$20.39
|
|
$23.51
|
|
$15.07
|
|
$18.52
|
|
$19.46
|
Total return (b)
|
(11.71)%
|
|
57.98%
|
|
(17.19)%
|
|
(3.04)%
|
|
(2.60)%
|
Ratios
to average net assets/supplemental data: |
|
|
|
|
|
|
|
|
|
Net assets, end of period (in 000’s)
|
$ 19,369
|
|
$ 25,864
|
|
$ 14,320
|
|
$ 19,451
|
|
$ 13,625
|
Ratio of total expenses to average net assets
|
0.60%
|
|
0.60%
|
|
0.60%
|
|
0.60%
|
|
0.60% (c)
|
Ratio of net investment income (loss) to average net assets
|
1.64%
|
|
1.68%
|
|
1.56%
|
|
2.01%
|
|
3.61% (c)
|
Portfolio turnover rate (d)
|
230%
|
|
195%
|
|
205%
|
|
152%
|
|
0%
|
(a)
|
Inception
date is September 5, 2018, which is consistent with the commencement of investment operations and is the date the initial creation units
were established. |
(b)
|
Total
return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all distributions
at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not reflect
the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is calculated
for the time period presented and is not annualized for periods of less than a year. |
(c)
|
Annualized.
|
(d)
|
Portfolio
turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities
received or delivered from processing creations or redemptions and in-kind transactions. |
See
Notes to Financial Statements
Page
25
First
Trust Exchange-Traded Fund VI
Financial
Highlights (Continued)
For
a share outstanding throughout each period
First
Trust Dorsey Wright Momentum & Low Volatility ETF (DVOL)
|
Year
Ended September 30, |
|
Period
Ended 9/30/2018 (a) |
2022
|
|
2021
|
|
2020
|
|
2019
|
|
Net asset value, beginning of period
|
$ 27.53
|
|
$ 22.46
|
|
$ 22.81
|
|
$ 19.94
|
|
$ 19.97
|
Income
from investment operations: |
|
|
|
|
|
|
|
|
|
Net investment income (loss)
|
0.32
|
|
0.10
|
|
0.28
|
|
0.29
|
|
0.03
|
Net realized and unrealized gain (loss)
|
(3.60)
|
|
5.06
|
|
(0.30)
|
|
2.85
|
|
(0.06)
|
Total from investment operations
|
(3.28)
|
|
5.16
|
|
(0.02)
|
|
3.14
|
|
(0.03)
|
Distributions
paid to shareholders from: |
|
|
|
|
|
|
|
|
|
Net investment income
|
(0.29)
|
|
(0.09)
|
|
(0.33)
|
|
(0.27)
|
|
—
|
Net asset value, end of period
|
$23.96
|
|
$27.53
|
|
$22.46
|
|
$22.81
|
|
$19.94
|
Total return (b)
|
(12.02)%
|
|
22.98%
|
|
0.03%
|
|
15.93%
|
|
(0.15)%
|
Ratios
to average net assets/supplemental data: |
|
|
|
|
|
|
|
|
|
Net assets, end of period (in 000’s)
|
$ 81,454
|
|
$ 121,114
|
|
$ 124,674
|
|
$ 131,169
|
|
$ 13,960
|
Ratio of total expenses to average net assets
|
0.60%
|
|
0.60%
|
|
0.60%
|
|
0.60%
|
|
0.60% (c)
|
Ratio of net investment income (loss) to average net assets
|
1.04%
|
|
0.36%
|
|
1.21%
|
|
2.37%
|
|
3.81% (c)
|
Portfolio turnover rate (d)
|
169%
|
|
136%
|
|
187%
|
|
81%
|
|
0%
|
(a)
|
Inception
date is September 5, 2018, which is consistent with the commencement of investment operations and is the date the initial creation units
were established. |
(b)
|
Total
return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all distributions
at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not reflect
the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is calculated
for the time period presented and is not annualized for periods of less than a year. |
(c)
|
Annualized.
|
(d)
|
Portfolio
turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities
received or delivered from processing creations or redemptions and in-kind transactions. |
Page
26
See
Notes to Financial Statements
Notes
to Financial Statements
First
Trust Exchange-Traded Fund VI
September
30, 2022
1. Organization
First
Trust Exchange-Traded Fund VI (the “Trust”) is an open-end management investment company organized as a Massachusetts business
trust on June 4, 2012, and is registered with the Securities and Exchange Commission (“SEC”) under the Investment Company
Act of 1940, as amended (the “1940 Act”).
The
Trust currently consists of thirty-three exchange-traded funds that are offering shares. This report covers the three funds (each a “Fund”
and collectively, the “Funds”) listed below. The shares of each Fund are listed and traded on The Nasdaq Stock Market LLC
(“Nasdaq”).
First
Trust SMID Cap Rising Dividend Achievers ETF – (ticker “SDVY”)
First
Trust Dorsey Wright Momentum & Value ETF – (ticker “DVLU”)
First
Trust Dorsey Wright Momentum & Low Volatility ETF – (ticker “DVOL”)
By
operation of law, SDVY, DVLU and DVOL now operate as diversified open-end management investment companies as defined in Section 5(b) of
the 1940 Act. 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 SMID Cap Rising Dividend Achievers ETF |
Nasdaq
US Small Mid Cap Rising Dividend AchieversTM Index |
First
Trust DorseyWright Momentum & Value ETF |
DorseyWright
Momentum Plus ValueTM Index |
First
Trust DorseyWright Momentum & Low Volatility ETF |
DorseyWright
Momentum Plus Low VolatilityTM 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
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, real estate investment trusts (“REITs”), 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.
Securities
traded in an over-the-counter market are valued at the mean of their most recent bid and asked price, if available, and otherwise at their
last trade price.
Notes
to Financial Statements (Continued)
First
Trust Exchange-Traded Fund VI
September
30, 2022
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:
1)
|
the
last sale price on the exchange on which they are principally traded or, for Nasdaq and AIM securities, the official closing price; |
2)
|
the
type of security; |
3)
|
the
size of the holding; |
4)
|
the
initial cost of the security; |
5)
|
transactions
in comparable securities; |
6)
|
price
quotes from dealers and/or third-party pricing services; |
7)
|
relationships
among various securities; |
8)
|
information
obtained by contacting the issuer, analysts, or the appropriate stock exchange; |
9)
|
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:
•
|
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 September 30, 2022, is included with each Fund’s
Portfolio of Investments.
In
December 2020, the SEC adopted Rule 2a-5 under the 1940 Act, establishing requirements to determine fair value in good faith for purposes
of the 1940 Act. The rule permits fund boards to designate a fund’s investment adviser to perform fair value determinations, subject
to board oversight and certain other conditions. The rule also defines when market quotations are “readily available” for
purposes of the 1940 Act and requires a fund to fair value a portfolio investment when a market quotation is not readily available. The
Notes
to Financial Statements (Continued)
First
Trust Exchange-Traded Fund VI
September
30, 2022
SEC
also adopted new Rule 31a-4 under the 1940 Act, which sets forth recordkeeping requirements associated with fair value determinations.
The compliance date for Rule 2a-5 and Rule 31a-4 was September 8, 2022.
Effective
September 8, 2022 and pursuant to the requirements of Rule 2a-5, the Trust’s Board of Trustees designated the Advisor as its valuation
designee to perform fair value determinations and approved new Advisor Valuation Procedures for the Trust.
B. Securities
Transactions and Investment Income
Securities
transactions are recorded as of the trade date. Realized gains and losses from securities transactions are recorded on the identified
cost basis. Dividend income is recorded on the ex-dividend date. Interest income, if any, is recorded daily 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 REITs may be comprised of return of capital, capital gains, and income. The actual character
of the amounts received during the year are not known until after the REITs’ fiscal year end. A Fund records the character of distributions
received from the REITs during the year based on estimates available. The characterization of distributions received by a Fund may be
subsequently revised based on information received from the REITs after their tax reporting periods conclude.
C. Dividends
and Distributions to Shareholders
Dividends
from net investment income, 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.
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.
The
tax character of distributions paid by each Fund during the fiscal year ended September 30, 2022, was as follows:
|
Distributions
paid from Ordinary Income |
|
Distributions
paid from Capital Gains |
|
Distributions
paid from Return of Capital |
First Trust SMID Cap Rising Dividend Achievers ETF
|
$ 14,025,016
|
|
$ —
|
|
$ —
|
First Trust Dorsey Wright Momentum & Value ETF
|
416,941
|
|
—
|
|
—
|
First Trust Dorsey Wright Momentum & Low Volatility ETF
|
1,071,096
|
|
—
|
|
—
|
The
tax character of distributions paid by each Fund during the fiscal year ended September 30, 2021, was as follows:
|
Distributions
paid from Ordinary Income |
|
Distributions
paid from Capital Gains |
|
Distributions
paid from Return of Capital |
First Trust SMID Cap Rising Dividend Achievers ETF
|
$ 1,005,851
|
|
$ —
|
|
$ —
|
First Trust Dorsey Wright Momentum & Value ETF
|
376,450
|
|
—
|
|
—
|
First Trust Dorsey Wright Momentum & Low Volatility ETF
|
398,380
|
|
—
|
|
—
|
Notes
to Financial Statements (Continued)
First
Trust Exchange-Traded Fund VI
September
30, 2022
As
of September 30, 2022, the components of distributable earnings on a tax basis for each Fund were as follows:
|
Undistributed
Ordinary Income |
|
Accumulated
Capital and Other Gain (Loss) |
|
Unrealized
Appreciation (Depreciation) |
First Trust SMID Cap Rising Dividend Achievers ETF
|
$ 1,623,821
|
|
$ (17,877,189)
|
|
$ (199,642,262)
|
First Trust Dorsey Wright Momentum & Value ETF
|
27,114
|
|
(11,751,888)
|
|
(1,874,633)
|
First Trust Dorsey Wright Momentum & Low Volatility ETF
|
149,989
|
|
(20,592,809)
|
|
(9,280,082)
|
D. Income
Taxes
Each
Fund intends to continue to qualify as a regulated investment company by complying with the requirements under Subchapter M of the Internal
Revenue Code of 1986, as amended, which includes distributing substantially all of its net investment income and net realized gains to
shareholders. Accordingly, no provision has been made for federal and state income taxes. However, due to the timing and amount of distributions,
each Fund may be subject to an excise tax of 4% of the amount by which approximately 98% of each Fund’s taxable income exceeds the
distributions from such taxable income for the calendar year.
The
Funds are subject to accounting standards that establish a minimum threshold for recognizing, and a system for measuring, the benefits
of a tax position taken or expected to be taken in a tax return. Taxable years ended 2019, 2020, 2021 and 2022 remain open to federal
and state audit. As of September 30, 2022, management has evaluated the application of these standards to the Funds and has determined
that no provision for income tax is required in the Funds’ financial statements for uncertain tax positions.
The
Funds intend to utilize provisions of the federal income tax laws, which allow them to carry a realized capital loss forward indefinitely
following the year of the loss and offset such loss against any future realized capital gains. The Funds are subject to certain limitations
under U.S. tax rules on the use of capital loss carryforwards and net unrealized built-in losses. These limitations apply when there has
been a 50% change in ownership. At September 30, 2022, for federal income tax purposes, each applicable Fund had a capital loss carryforward
available that is shown in the table below, to the extent provided by regulations, to offset future capital gains.
|
Non-Expiring
Capital Loss Carryforward |
First Trust SMID Cap Rising Dividend Achievers ETF
|
$ 17,877,189
|
First Trust Dorsey Wright Momentum & Value ETF
|
11,751,888
|
First Trust Dorsey Wright Momentum & Low Volatility ETF
|
20,592,809
|
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 year ended September 30, 2022, 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 SMID Cap Rising Dividend Achievers ETF
|
$ (63,976)
|
|
$ (4,127,148)
|
|
$ 4,191,124
|
First Trust Dorsey Wright Momentum & Value ETF
|
—
|
|
(321,760)
|
|
321,760
|
First Trust Dorsey Wright Momentum & Low Volatility ETF
|
—
|
|
(10,163,408)
|
|
10,163,408
|
Notes
to Financial Statements (Continued)
First
Trust Exchange-Traded Fund VI
September
30, 2022
As
of September 30, 2022, the aggregate cost, gross unrealized appreciation, gross unrealized depreciation, and net unrealized appreciation/(depreciation)
on investments (including short positions and derivatives, if any) for federal income tax purposes were as follows:
|
Tax
Cost |
|
Gross
Unrealized Appreciation |
|
Gross
Unrealized (Depreciation) |
|
Net
Unrealized Appreciation (Depreciation) |
First Trust SMID Cap Rising Dividend Achievers ETF
|
$ 1,017,965,050
|
|
$ 5,776,857
|
|
$ (205,419,119)
|
|
$ (199,642,262)
|
First Trust Dorsey Wright Momentum & Value ETF
|
21,211,699
|
|
352,347
|
|
(2,226,980)
|
|
(1,874,633)
|
First Trust Dorsey Wright Momentum & Low Volatility ETF
|
90,539,054
|
|
866,611
|
|
(10,146,693)
|
|
(9,280,082)
|
E. Expenses
Expenses,
other than the investment advisory fee and other excluded expenses, are paid by the Advisor (See Note 3).
First
Trust has entered into licensing agreements with Nasdaq, Inc. (“Licensor”) for the Funds. The respective license agreements
allow for the use by First Trust of each Fund’s respective index and of certain trademarks and trade names of the Licensor. The
Funds are sub-licensees to the applicable license agreements.
3. Investment
Advisory Fee, Affiliated Transactions and Other Fee Arrangements
First
Trust, the investment advisor to the Funds, is a limited partnership with one limited partner, Grace Partners of DuPage L.P., and one
general partner, The Charger Corporation. The Charger Corporation is an Illinois corporation controlled by James A. Bowen, Chief Executive
Officer of First Trust. First Trust is responsible for the selection and ongoing monitoring of the securities in each Fund’s portfolio,
managing the Funds’ business affairs and providing certain administrative services necessary for the management of the Funds.
First
Trust is responsible for the expenses of each Fund including the cost of transfer agency, custody, fund administration, legal, audit,
licensing, and other services, but excluding fee payments under the Investment Management Agreement, interest, taxes, acquired fund fees
and expenses (if any), brokerage commissions and other expenses connected with the execution of portfolio transactions, distribution and
service fees payable pursuant to a Rule 12b-1 plan, if any, and extraordinary expenses which are paid by each respective Fund. SDVY, DVLU
and DVOL have each agreed to pay First Trust an annual unitary management fee equal to 0.60% of their average daily net assets. First
Trust also provides fund reporting services to each Fund for a flat annual fee in the amount of $9,250, which is covered under the annual
unitary management fee.
The
Trust has multiple service agreements with BBH. Under the service agreements, BBH performs custodial, fund accounting, certain administrative
services, and transfer agency services for each Fund. As custodian, BBH is responsible for custody of each Fund’s assets. As fund
accountant and administrator, BBH is responsible for maintaining the books and records of each Fund’s securities and cash. As transfer
agent, BBH is responsible for maintaining shareholder records for each Fund.
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.
Notes
to Financial Statements (Continued)
First
Trust Exchange-Traded Fund VI
September
30, 2022
4. Purchases
and Sales of Securities
For
the fiscal year ended September 30, 2022, the cost of purchases and proceeds from sales of investment securities for each Fund, excluding
short-term investments and in-kind transactions, were as follows:
|
Purchases
|
|
Sales
|
First
Trust SMID Cap Rising Dividend Achievers ETF |
$ 579,485,139
|
|
$ 578,777,525
|
First
Trust Dorsey Wright Momentum & Value ETF |
55,509,543
|
|
55,493,786
|
First
Trust Dorsey Wright Momentum & Low Volatility ETF |
184,490,584
|
|
184,197,238
|
|
|
|
|
For
the fiscal year ended September 30, 2022, the cost of in-kind purchases and proceeds from in-kind sales for each Fund were as follows:
|
Purchases
|
|
Sales
|
First
Trust SMID Cap Rising Dividend Achievers ETF |
$ 936,909,683
|
|
$ 122,779,430
|
First
Trust Dorsey Wright Momentum & Value ETF |
5,081,446
|
|
8,509,753
|
First
Trust Dorsey Wright Momentum & Low Volatility ETF |
92,945,386
|
|
118,566,707
|
5. Creations,
Redemptions and Transaction Fees
Each
Fund generally issues and redeems its shares in primary market transactions through a creation and redemption mechanism and does not sell
or redeem individual shares. Instead, financial entities known as “Authorized Participants” have contractual arrangements
with a Fund or one of the Fund’s service providers to purchase and redeem Fund shares directly with the Fund in large blocks of
shares known as “Creation Units.” Prior to the start of trading on every business day, a Fund publishes through the National
Securities Clearing Corporation (“NSCC”) the “basket” of securities, cash or other assets that it will accept
in exchange for a Creation Unit of the Fund’s shares. An Authorized Participant that wishes to effectuate a creation of a Fund’s
shares deposits with the Fund the “basket” of securities, cash or other assets identified by the Fund that day, and then receives
the Creation Unit of the Fund’s shares in return for those assets. After purchasing a Creation Unit, the Authorized Participant
may continue to hold the Fund’s shares or sell them in the secondary market. The redemption process is the reverse of the purchase
process: the Authorized Participant redeems a Creation Unit of a Fund’s shares for a basket of securities, cash or other assets.
The combination of the creation and redemption process with secondary market trading in a Fund’s shares and underlying securities
provides arbitrage opportunities that are designed to help keep the market price of a Fund’s shares at or close to the NAV per share
of the Fund.
Each
Fund imposes fees in connection with the purchase of Creation Units. These fees may vary based upon various fact-based circumstances,
including, but not limited to, the composition of the securities included in the Creation Unit or the countries in which the transactions
are settled. The price for each Creation Unit will equal the daily NAV per share of a Fund times the number of shares 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, each Fund is authorized to pay an amount up to 0.25% of its average daily net assets each year to reimburse First Trust Portfolios
L.P. (“FTP”), the distributor of the Funds, for amounts expended to finance activities primarily intended to result in the
sale of Creation Units or to provide investor services. FTP may also use this amount to compensate securities dealers or other
Notes
to Financial Statements (Continued)
First
Trust Exchange-Traded Fund VI
September
30, 2022
persons
that are Authorized Participants for providing distribution assistance, including broker-dealer and shareholder support and educational
and promotional services.
No
12b-1 fees are currently paid by the Funds, and pursuant to a contractual arrangement, no 12b-1 fees will be paid any time before January
31, 2024.
7. Indemnification
The
Trust, on behalf of the Fund, has a variety of indemnification obligations under contracts with its service providers. The Trust’s
maximum exposure under these arrangements is unknown. However, the Trust has not had prior claims or losses pursuant to these contracts
and expects the risk of loss to be remote.
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 was the following subsequent event:
At
a meeting on October 24, 2022, the Board of Trustees approved a breakpoint pricing arrangement for each of the series of the Trust, including
the Funds. Pursuant to this arrangement, which is effective as of November 1, 2022, the management fee each Fund pays to the First Trust,
as investment manager, will be discounted as the Fund’s net assets reach certain predefined levels.
Report
of Independent Registered Public Accounting Firm
To
the Shareholders and the Board of Trustees of First Trust Exchange-Traded Fund VI:
Opinion
on the Financial Statements and Financial Highlights
We
have audited the accompanying statements of assets and liabilities of First Trust SMID Cap Rising Dividend Achievers ETF, First Trust
Dorsey Wright Momentum & Value ETF, and First Trust Dorsey Wright Momentum & Low Volatility ETF (the “Funds”), each
a series of the First Trust Exchange-Traded Fund VI, including the portfolios of investments, as of September 30, 2022, the related statements
of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and
the financial highlights for the periods indicated in the table below, and the related notes. In our opinion, the financial statements
and financial highlights present fairly, in all material respects, the financial position of the Funds as of September 30, 2022, and the
results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended,
and the financial highlights for the periods listed in the table below in conformity with accounting principles generally accepted in
the United States of America.
Individual
Funds Included in the Trust |
Financial
Highlights |
First
Trust SMID Cap Rising Dividend Achievers ETF |
For
the years ended September 30, 2022, 2021, 2020, 2019 and for the period from November 1, 2017 (commencement of operations) through September
30, 2018 |
First
Trust Dorsey Wright Momentum & Low Volatility ETF |
For
the years ended September 30, 2022, 2021, 2020, 2019 and for the period from September 5, 2018 (commencement of operations) through September
30, 2018 |
First
Trust Dorsey Wright Momentum & Value ETF |
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 September 30, 2022, by correspondence
with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our
audits provide a reasonable basis for our opinion.
Chicago,
Illinois
November
23, 2022
We
have served as the auditor of one or more First Trust investment companies since 2001.
Additional
Information
First
Trust Exchange-Traded Fund VI
September
30, 2022 (Unaudited)
Proxy
Voting Policies and Procedures
A
description of the policies and procedures that the Trust uses to determine how to vote proxies and information on how each Fund voted
proxies relating to 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 year ended September 30, 2022, the following percentages of income dividend paid by the Funds qualify for the dividends received
deduction available to corporations:
|
Dividends
Received Deduction |
First Trust SMID Cap Rising Dividend Achievers ETF
|
100.00%
|
First Trust Dorsey Wright Momentum & Value ETF
|
100.00%
|
First Trust Dorsey Wright Momentum & Low Volatility ETF
|
91.44%
|
For
the taxable year ended September 30, 2022, the following percentages of income dividend paid by the Funds are hereby designated as qualified
dividend income:
|
Qualified
Dividend Income |
First Trust SMID Cap Rising Dividend Achievers ETF
|
100.00%
|
First Trust Dorsey Wright Momentum & Value ETF
|
100.00%
|
First Trust Dorsey Wright Momentum & Low Volatility ETF
|
100.00%
|
A
portion of the ordinary dividends (including short-term capital gains) that DVLU and DVOL paid to shareholders during the taxable year
ended September 30, 2022, may be eligible for the Qualified Business Income (QBI) Deduction under the Internal Revenue Code of 1986, as
amended, section 199A for the aggregate dividends the Funds received from the underlying Real Estate Investment Trusts (REITs) they invest
in.
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.
Additional
Information (Continued)
First
Trust Exchange-Traded Fund VI
September
30, 2022 (Unaudited)
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.
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
Additional
Information (Continued)
First
Trust Exchange-Traded Fund VI
September
30, 2022 (Unaudited)
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 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.
Additional
Information (Continued)
First
Trust Exchange-Traded Fund VI
September
30, 2022 (Unaudited)
Operational
Risk. Each fund is subject to risks arising from various operational factors, including, but not limited
to, human error, processing and communication errors, errors of a fund’s service providers, counterparties or other third-parties,
failed or inadequate processes and technology or systems failures. Each fund relies on third-parties for a range of services, including
custody. Any delay or failure relating to engaging or maintaining such service providers may affect a fund’s ability to meet its
investment objective. Although the funds and the funds’ investment advisor seek to reduce these operational risks through controls
and procedures, there is no way to completely protect against such risks.
Passive
Investment Risk. To the extent a fund seeks to track an index, the fund will invest in the securities
included in, or representative of, the index regardless of their investment merit. A fund generally will not attempt to take defensive
positions in declining markets.
Valuation
Risk. The valuation of certain securities may carry more risk than that of common stock. Uncertainties
in the conditions of the financial markets, unreliable reference data, lack of transparency and inconsistency of valuation models and
processes may lead to inaccurate asset pricing. A fund may hold investments in sizes smaller than institutionally sized round lot positions
(sometimes referred to as odd lots). However, third-party pricing services generally provide evaluations on the basis of institutionally-sized
round lots. If a fund sells certain of its investments in an odd lot transaction, the sale price may be less than the value at which such
securities have been held by the fund. Odd lots often trade at lower prices than institutional round lots. There is no assurance that
the fund will be able to sell a portfolio security at the price established by the pricing service, which could result in a loss to the
fund.
NOT
FDIC INSURED |
NOT
BANK GUARANTEED |
MAY
LOSE VALUE |
Advisory
Agreements
Board
Considerations Regarding Approval of Continuation of Investment Management Agreements
The
Board of Trustees of First Trust Exchange-Traded Fund VI (the “Trust”), including the Independent Trustees, unanimously approved
the continuation of the Investment Management Agreements (as applicable to a specific Fund, the “Agreement” and collectively,
the “Agreements”) with First Trust Advisors L.P. (the “Advisor”) on behalf of the following three series of the
Trust (each a “Fund” and collectively, the “Funds”):
First
Trust SMID Cap Rising Dividend Achievers ETF (SDVY)
First
Trust Dorsey Wright Momentum & Low Volatility ETF (DVOL)
First
Trust Dorsey Wright Momentum & Value ETF (DVLU)
The
Board approved the continuation of the Agreement for each Fund for a one-year period ending June 30, 2023 at a meeting held on June 12–13,
2022. The Board determined for each Fund that the continuation of the Agreement is in the best interests of the Fund in light of
the nature, extent and quality of the services provided and such other matters as the Board considered to be relevant in the exercise
of its business judgment.
To
reach this determination for each Fund, the Board considered its duties under the Investment Company Act of 1940, as amended (the “1940
Act”), as well as under the general principles of state law, in reviewing and approving advisory contracts; the requirements of
the 1940 Act in such matters; the fiduciary duty of investment advisors with respect to advisory agreements and compensation; the standards
used by courts in determining whether investment company boards have fulfilled their duties; and the factors to be considered by the Board
in voting on such agreements. At meetings held on April 18, 2022 and June 12–13, 2022, the Board, including the Independent
Trustees, reviewed materials provided by the Advisor responding to requests for information from counsel to the Independent Trustees,
submitted on behalf of the Independent Trustees, that, among other things, outlined: the services provided by the Advisor to each
Fund (including the relevant personnel responsible for these services and their experience); the unitary fee rate payable by each Fund
as compared to fees charged to a peer group of funds (the “Expense Group”) and a broad peer universe of funds (the “Expense
Universe”), each assembled by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent source, and as compared
to fees charged to other clients of the Advisor, including other exchange-traded funds (“ETFs”) managed by the Advisor; the
expense ratio of each Fund as compared to expense ratios of the funds in the Fund’s Expense Group and Expense Universe; performance
information for each Fund, including comparisons of each Fund’s performance to that of one or more relevant benchmark indexes and
to that of a performance group of funds and a broad performance universe of funds (the “Performance Universe”), each assembled
by Broadridge; the nature of expenses incurred in providing services to each Fund and the potential for the Advisor to realize economies
of scale, if any; profitability and other financial data for the Advisor; any indirect benefits to the Advisor and its affiliate, First
Trust Portfolios L.P. (“FTP”); and information on the Advisor’s compliance program. The Board reviewed initial
materials with the Advisor at the meeting held on April 18, 2022, prior to which the Independent Trustees and their counsel met separately
to discuss the information provided by the Advisor. Following the April meeting, counsel to the Independent Trustees, on behalf
of the Independent Trustees, requested certain clarifications and supplements to the materials provided, and the information
Additional
Information (Continued)
First
Trust Exchange-Traded Fund VI
September
30, 2022 (Unaudited)
provided
in response to those requests was considered at an executive session of the Independent Trustees and their counsel held prior to the June
12–13, 2022 meeting, as well as at the June meeting. The Board applied its business judgment to determine whether the arrangement
between the Trust and the Advisor continues to be a reasonable business arrangement from each Fund’s perspective. The Board
determined that, given the totality of the information provided with respect to the Agreements, the Board had received sufficient information
to renew the Agreements. The Board considered that shareholders chose to invest or remain invested in a Fund knowing that the Advisor
manages the Fund and knowing the Fund’s unitary fee.
In
reviewing the Agreement for each Fund, the Board considered the nature, extent and quality of the services provided by the Advisor under
the Agreement. The Board considered that the Advisor is responsible for the overall management and administration of the Trust and
each Fund and reviewed all of the services provided by the Advisor to the Funds, as well as the background and experience of the persons
responsible for such services. In reviewing the services provided, the Board noted the compliance program that had been developed
by the Advisor and considered that it includes a robust program for monitoring the Advisor’s and each Fund’s compliance with
the 1940 Act, as well as each Fund’s compliance with its investment objective, policies and restrictions. The Board also considered
a report from the Advisor with respect to its risk management functions related to the operation of the Funds. Finally, as part
of the Board’s consideration of the Advisor’s services, the Advisor, in its written materials and at the April 18, 2022 meeting,
described to the Board the scope of its ongoing investment in additional personnel and infrastructure to maintain and improve the quality
of services provided to the Funds and the other funds in the First Trust Fund Complex. In light of the information presented and
the considerations made, the Board concluded that the nature, extent and quality of the services provided to the Trust and each Fund by
the Advisor under the Agreements have been and are expected to remain satisfactory and that the Advisor has managed each Fund consistent
with its investment objective, policies and restrictions.
The
Board considered the unitary fee rate payable by each Fund under the applicable Agreement for the services provided. The Board considered
that as part of the unitary fee the Advisor is responsible for each Fund’s expenses, including the cost of transfer agency, custody,
fund administration, legal, audit and other services and license fees, if any, but excluding the fee payment under the applicable Agreement
and interest, taxes, brokerage commissions and other expenses connected with the execution of portfolio transactions, distribution and
service fees pursuant to a Rule 12b-1 plan, if any, and extraordinary expenses, if any. The Board received and reviewed information
showing the fee rates and expense ratios of the peer funds in the Expense Groups, as well as advisory and unitary fee rates charged by
the Advisor to other fund (including ETFs) and non-fund clients, as applicable. Because each Fund pays a unitary fee, the Board
determined that expense ratios were the most relevant comparative data point. Based on the information provided, the Board noted
that the unitary fee rate for each Fund was above the median total (net) expense ratio of the peer funds in its respective Expense Group.
With respect to the Expense Groups, the Board, at the April 18, 2022 meeting, discussed with Broadridge its methodology for assembling
peer groups and discussed with the Advisor limitations in creating peer groups for index ETFs, including differences in underlying indexes
and index-tracking methodologies that can result in greater management complexities across seemingly comparable ETFs, and different business
models that may affect the pricing of services among ETF sponsors. The Board took these limitations and differences into account
in considering the peer data. With respect to fees charged to other non-ETF clients, the Board considered differences between the
Funds and other non-ETF clients that limited their comparability. In considering the unitary fee rates overall, the Board also considered
the Advisor’s statement that it seeks to meet investor needs through innovative and value-added investment solutions and the Advisor’s
demonstrated long-term commitment to each Fund and the other funds in the First Trust Fund Complex.
The
Board considered performance information for each Fund. The Board noted the process it has established for monitoring each Fund’s
performance and portfolio risk on an ongoing basis, which includes quarterly performance reporting from the Advisor for the Funds. The
Board determined that this process continues to be effective for reviewing each Fund’s performance. The Board received and
reviewed information for each Fund for periods ended December 31, 2021 regarding the performance of each Fund’s underlying index,
the correlation between each Fund’s performance and that of its underlying index, each Fund’s tracking difference and each
Fund’s excess return as compared to its benchmark index. Based on the information provided and its ongoing review of performance,
the Board concluded that each Fund was correlated to its underlying index and that the tracking difference for each Fund was within a
reasonable range. In addition, the Board reviewed data prepared by Broadridge comparing each Fund’s performance to that of
its respective Performance Universe and to that of a broad-based benchmark index, but given each Fund’s objective of seeking investment
results that correspond generally to the performance of its underlying index, the Board placed more emphasis on its review of correlation
and tracking difference.
On
the basis of all the information provided on the unitary fee and performance of each Fund and the ongoing oversight by the Board, the
Board concluded that the unitary fee for each Fund continues to be reasonable and appropriate in light of the nature, extent and quality
of the services provided by the Advisor to each Fund under the Agreements.
The
Board considered information and discussed with the Advisor whether there were any economies of scale in connection with providing advisory
services to the Funds and noted the Advisor’s statement that it believes that its expenses relating to providing
Additional
Information (Continued)
First
Trust Exchange-Traded Fund VI
September
30, 2022 (Unaudited)
advisory
services to the Funds will likely increase during the next twelve months as the Advisor continues to build infrastructure and add new
staff. The Board noted that any reduction in fixed costs associated with the management of the Funds would benefit the Advisor,
but that the unitary fee structure provides a level of certainty in expenses for the Funds. The Board considered the revenues and
allocated costs (including the allocation methodology) of the Advisor in serving as investment advisor to each Fund for the twelve months
ended December 31, 2021 and the estimated profitability level for each Fund calculated by the Advisor based on such data, as well as complex-wide
and product-line profitability data, for the same period. The Board noted the inherent limitations in the profitability analysis
and concluded that, based on the information provided, the Advisor’s profitability level for each Fund was not unreasonable. In
addition, the Board considered indirect benefits described by the Advisor that may be realized from its relationship with the Funds. The
Board considered that the Advisor had identified as an indirect benefit to the Advisor and FTP their exposure to investors and brokers
who, absent their exposure to the Funds, may have had no dealings with the Advisor or FTP, and noted that the Advisor does not utilize
soft dollars in connection with the Funds. The Board also considered the Advisor’s compensation for fund reporting services
provided to each Fund pursuant to a separate Fund Reporting Services Agreement, which is paid from the unitary fee. The Board concluded
that the character and amount of potential indirect benefits to the Advisor were not unreasonable.
Based
on all of the information considered and the conclusions reached, the Board, including the Independent Trustees, unanimously determined
that the terms of the Agreements continue to be fair and reasonable and that the continuation of the Agreements is in the best interests
of each Fund. No single factor was determinative in the Board’s analysis.
Liquidity
Risk Management Program
In
accordance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “1940 Act”), the Funds and each other
fund in the First Trust Fund Complex, other than the closed-end funds, have adopted and implemented a liquidity risk management program
(the “Program”) reasonably designed to assess and manage the funds’ liquidity risk, i.e., the risk that a fund could
not meet requests to redeem shares issued by the fund without significant dilution of remaining investors’ interests in the fund.
The Board of Trustees of the First Trust Funds has appointed First Trust Advisors L.P. (the “Advisor”) as the person
designated to administer the Program, and in this capacity the Advisor performs its duties primarily through the activities and efforts
of the First Trust Liquidity Committee (the “Liquidity Committee”).
Pursuant
to the Program, the Liquidity Committee classifies the liquidity of each fund’s portfolio investments into one of the four liquidity
categories specified by Rule 22e-4: highly liquid investments, moderately liquid investments, less liquid investments and illiquid investments.
The Liquidity Committee determines certain of the inputs for this classification process, including reasonably anticipated trade
sizes and significant investor dilution thresholds. The Liquidity Committee also determines and periodically reviews a highly liquid investment
minimum for certain funds, monitors the funds’ holdings of assets classified as illiquid investments to seek to ensure they do not
exceed 15% of a fund’s net assets and establishes policies and procedures regarding redemptions in kind.
At
the April 18, 2022 meeting of the Board of Trustees, as required by Rule 22e-4 and the Program, the Advisor provided the Board with a
written report prepared by the Advisor that addressed the operation of the Program during the period from March 16, 2021 through the Liquidity
Committee’s annual meeting held on March 17, 2022 and assessed the Program’s adequacy and effectiveness of implementation
during this period, including the operation of the highly liquid investment minimum for each fund that is required under the Program to
have one, and any material changes to the Program. Note that because the Funds primarily hold assets that are highly liquid investments,
the Funds have not adopted any highly liquid investment minimums.
As
stated in the written report, during the review period, no fund breached the 15% limitation on illiquid investments, no fund with a highly
liquid investment minimum breached that minimum and no fund filed a Form N-LIQUID. The Advisor concluded that each fund’s
investment strategy is appropriate for an open-end fund; that the Program operated effectively in all material respects during the review
period; and that the Program is reasonably designed to assess and manage the liquidity risk of each fund and to maintain compliance with
Rule 22e-4.
Board
of Trustees and Officers
First
Trust Exchange-Traded Fund VI
September
30, 2022 (Unaudited)
The
following tables identify the Trustees and Officers of the Trust. Unless otherwise indicated, the address of all persons is 120 East Liberty
Drive, Suite 400, Wheaton, IL 60187.
The
Trust’s statement of additional information includes additional information about the Trustees and is available, without charge,
upon request, by calling (800) 988-5891.
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 |
Physician,
Edward-Elmhurst Medical Group; Physician and Officer, Wheaton Orthopedics (1990 to 2021) |
221
|
None
|
Thomas
R. Kadlec, Trustee (1957) |
• Indefinite
Term • Since Inception |
Retired;
President, ADM Investor Services, Inc. (Futures Commission Merchant) (2010 to July 2022) |
221
|
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) |
221
|
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 and Board Chair of RML Long Term
Acute Care Hospitals; and Director of Senior Helpers (since 2021) |
Robert
F. Keith, Trustee (1956) |
• Indefinite
Term • Since Inception |
President,
Hibs Enterprises (Financial and Management Consulting) |
221
|
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) |
221
|
None
|
INTERESTED
TRUSTEE |
James
A. Bowen(1), Trustee and 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) |
221
|
None
|
(1)
|
Mr.
Bowen is deemed an “interested person” of the Trust due to his position as CEO of First Trust Advisors L.P., investment advisor
of the Trust. |
Board
of Trustees and Officers (Continued)
First
Trust Exchange-Traded Fund VI
September
30, 2022 (Unaudited)
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) |
Donald
P. Swade (1972) |
Treasurer,
Chief Financial Officer and Chief Accounting Officer |
• Indefinite
Term • Since 2016 |
Senior
Vice President, First Trust Advisors L.P. and First Trust Portfolios L.P. |
W.
Scott Jardine (1960) |
Secretary
and Chief Legal Officer |
• Indefinite
Term • Since Inception |
General
Counsel, First Trust Advisors L.P. and First Trust Portfolios L.P.; Secretary and General Counsel, BondWave LLC; Secretary, Stonebridge
Advisors LLC |
Daniel
J. Lindquist (1970) |
Vice
President |
• Indefinite
Term • Since Inception |
Managing
Director, First Trust Advisors L.P. and First Trust Portfolios L.P. |
Kristi
A. Maher (1966) |
Chief
Compliance Officer and Assistant Secretary |
• Indefinite
Term • Since Inception |
Deputy
General Counsel, First Trust Advisors L.P. and First Trust Portfolios L.P. |
Roger
F. Testin (1966) |
Vice
President |
• Indefinite
Term • Since Inception |
Senior
Vice President, First Trust Advisors L.P. and First Trust Portfolios L.P. |
Stan
Ueland (1970) |
Vice
President |
• Indefinite
Term • Since Inception |
Senior
Vice President, First Trust Advisors L.P. and First Trust Portfolios L.P. |
(2)
|
The
term “officer” means the president, vice president, secretary, treasurer, controller or any other officer who performs a policy
making function. |
(1)Mr.
Bowen is deemed an “interested person” of the Trust due to his position as CEO of First Trust Advisors L.P., investment advisor
of the Trust.
(1)Mr.
Bowen is deemed an “interested person” of the Trust due to his position as CEO of First Trust Advisors L.P., investment advisor
of the Trust.
(1)Mr.
Bowen is deemed an “interested person” of the Trust due to his position as CEO of First Trust Advisors L.P., investment advisor
of the Trust.
Privacy
Policy
First
Trust Exchange-Traded Fund VI
September
30, 2022 (Unaudited)
Privacy
Policy
First
Trust values our relationship with you and considers your privacy an important priority in maintaining that relationship. We are committed
to protecting the security and confidentiality of your personal information.
Sources
of Information
We
collect nonpublic personal information about you from the following sources:
•
|
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
2022
This
page intentionally left blank
First
Trust Exchange-Traded Fund VI
INVESTMENT
ADVISOR
First
Trust Advisors L.P.
120
East Liberty Drive, Suite 400
Wheaton,
IL 60187
ADMINISTRATOR,
CUSTODIAN,
FUND ACCOUNTANT &
TRANSFER AGENT
Brown
Brothers Harriman & Co.
50
Post Office Square
Boston,
MA 02110
INDEPENDENT
REGISTERED
PUBLIC ACCOUNTING FIRM
Deloitte
& Touche LLP
111
S. Wacker Drive
Chicago,
IL 60606
LEGAL
COUNSEL
Chapman
and Cutler LLP
320
South Canal Street
Chicago,
IL 60606
Item 2. Code of Ethics.
(a) | | The registrant, as of the end of the period covered by this
report, has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed
by the registrant or a third party. |
(c) | | There have been no amendments, during the period covered by
this report, to a provision of the code of ethics that applies to the registrant’s principal executive officer, principal financial
officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals
are employed by the registrant or a third party, and that relates to any element of the code of ethics description. |
(d) | | The registrant, during the period covered by this report, has
not granted any waivers, including an implicit waiver, from a provision of the code of ethics that applies to the registrant’s
principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions,
regardless of whether these individuals are employed by the registrant or a third party, that relates to one or more of the items set
forth in paragraph (b) of this item’s instructions. |
(f) | | A copy of the code of ethics that applies to the registrant’s
principal executive officer, principal financial officer, principal accounting officer or controller is filed as an exhibit pursuant
to Item 13(a)(1). |
Item 3. Audit Committee Financial Expert.
(a) | | As of the end of the period covered by the report, the registrant’s
Board of Trustees has determined that Thomas R. Kadlec and Robert F. Keith are qualified to serve as audit committee financial experts
serving on its audit committee and that each of them is “independent,” as defined by Item 3 of Form N-CSR. |
Item 4. Principal Accountant Fees and Services.
(a) | | Audit Fees (Registrant) -- The aggregate fees billed for professional
services rendered by the principal accountant for the audit of the registrant’s annual financial statements or services that are
normally provided by the accountant in connection with statutory and regulatory filings or engagements were $344,025 for the fiscal year
ended September 30, 2021 and $363,713 for the fiscal year ended September 30, 2022. |
(b) | | Audit-Related Fees (Registrant) -- The aggregate fees billed
for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the registrant’s
financial statements and are not reported under paragraph (a) of this Item were $0 for the fiscal year ended September 30, 2021 and were
$0 for the fiscal year ended September 30, 2022. |
Audit-Related Fees (Investment Advisor and
Distributor) -- The aggregate fees billed for assurance and related services by the principal accountant that are reasonably related to
the performance of the audit of the registrant’s financial statements and are not reported under paragraph (a) of this Item were
$0 for the fiscal year ended September 30, 2021 and were $0 for the fiscal year ended September 30, 2022.
(c) | | Tax Fees (Registrant) -- The aggregate fees billed for professional
services rendered by the principal accountant for tax compliance, tax advice, and tax planning to the registrant were $160,000 for the
fiscal year ended September 30, 2021 and $176,104 for the fiscal year ended September 30, 2022. These fees were for tax consultation
and/or tax return preparation. |
Tax Fees (Investment Advisor and Distributor)
-- The aggregate fees billed for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning
to the registrant’s advisor and distributor were $0 for the fiscal year ended September 30, 2021 and were $0 for the fiscal year
ended September 30, 2022.
(d) | | All Other Fees (Registrant) -- The aggregate fees billed for
products and services provided by the principal accountant to the registrant, other than the services reported in paragraphs (a) through
(c) of this Item were $0 for the fiscal year ended September 30, 2021 and were $0 for the fiscal year ended September 30, 2022. |
All Other Fees (Investment Advisor and Distributor)
-- The aggregate fees billed for products and services provided by the principal accountant to the registrant’s investment advisor
and distributor, other than the services reported in paragraphs (a) through (c) of this Item were $0 for the fiscal year ended September
30, 2021 and were $0 for the fiscal year ended September 30, 2022.
(e)(1) | | Disclose the audit committee’s pre-approval policies and procedures described in paragraph
(c) (7) of Rule 2-01 of Regulation S-X. |
Pursuant to its charter and its Audit and
Non-Audit Services Pre-Approval Policy, the Audit Committee (the “Committee”) is responsible for the pre-approval of all audit
services and permitted non-audit services (including the fees and terms thereof) to be performed for the registrant by its independent
auditors. The Chairman of the Committee is authorized to give such pre-approvals on behalf of the Committee up to $25,000 and report any
such pre-approval to the full Committee.
The Committee is also responsible for the
pre-approval of the independent auditor’s engagements for non-audit services with the registrant’s advisor (not including
a sub-advisor whose role is primarily portfolio management and is sub-contracted or overseen by another investment advisor) and any entity
controlling, controlled by or under common control with the investment advisor that provides ongoing services to the registrant, if the
engagement relates directly to the operations and financial reporting of the registrant, subject to the de minimis exceptions for non-audit
services described in Rule 2-01 of Regulation S-X. If the independent auditor has provided non-audit services to the registrant’s
advisor (other than any sub-advisor whose role is primarily portfolio management and is sub-contracted with or overseen by another investment
advisor) and any entity controlling, controlled by or under common control with the investment advisor that provides ongoing services
to the registrant that were not pre-approved pursuant to its policies, the Committee will consider whether the provision of such non-audit
services is compatible with the auditor’s independence.
(e)(2) | | The percentage of services described in each of paragraphs (b) through (d) for the registrant
and the registrant’s investment advisor and distributor of this Item that were approved by the audit committee pursuant to the
pre-approval exceptions included in paragraph (c)(7)(i)(C) or paragraph(C)(7)(ii) of Rule 2-01 of Regulation S-X are as follows: |
|
Registrant: | |
Advisor and Distributor: |
|
| |
|
|
(b) 0% | |
(b) 0% |
|
(c) 0% | |
(c) 0% |
|
(d) 0% | |
(d) 0% |
(f) | | The percentage of hours expended on the principal accountant’s
engagement to audit the registrant’s financial statements for the most recent fiscal year that were attributed to work performed
by persons other than the principal accountant’s full-time, permanent employees was less than fifty percent. |
(g) | | The aggregate non-audit fees billed by the registrant’s
accountant for services rendered to the registrant, and rendered to the registrant’s investment advisor (not including any sub-advisor
whose role is primarily portfolio management and is subcontracted with or overseen by another investment advisor), and any entity controlling,
controlled by, or under common control with the advisor that provides ongoing services to the registrant for the fiscal year ended September
30, 2021 were $29,500 for the distributor, $23,200 for the advisor, and $160,000 for the registrant and for the fiscal year ended September
30, 2022 were $29,500 for the distributor, $16,500 for the advisor, and $176,104 for the registrant. |
(h) | | The registrant’s audit committee of its Board of Trustees
has determined that the provision of non-audit services that were rendered to the registrant’s investment advisor (not including
any sub-advisor whose role is primarily portfolio management and is subcontracted with or overseen by another investment advisor), and
any entity controlling, controlled by, or under common control with the investment advisor that provides ongoing services to the registrant
that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal
accountant’s independence. |
Items 5. Audit Committee of Listed Registrants.
(a) | | The registrant has a separately designated standing audit committee established in accordance
with Section 3(a)(58)(A) of the Securities Exchange Act of 1934. The audit committee of the registrant is comprised of: Thomas R. Kadlec,
Denise M. Keefe, Niel B. Nielson, Richard E. Erickson and Robert F. Keith. |
Item 6. Investments.
(a) | | The Schedule of Investments in securities of unaffiliated issuers as of the close of the
reporting period is included as part of the report to shareholders filed under Item 1 of this form. |
Item 7. Disclosure of Proxy Voting Policies
and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers of Closed-End
Management Investment Companies.
Not applicable.
Item 9. Purchases of Equity Securities by
Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 10. Submission of Matters to a Vote
of Security Holders.
There have been no material changes to the
procedures by which the shareholders may recommend nominees to the registrant’s board of directors, where those changes were implemented
after the registrant last provided disclosure in response to the requirements of Item 407 (c) (2) (iv) of Regulation S-K (17 CFR 229.407)
(as required by Item 22 (b) (15) of Schedule 14A (17 CFR 240.14a-101)), or this Item.
Item 11. Controls and Procedures.
(a) | | The registrant’s principal executive and principal financial officers, or persons performing
similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the
Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3 (c))) are effective, as of a date within 90
days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls
and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities
Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15 (b)). |
(b) | | There were no changes in the registrant’s internal control over financial reporting
(as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the registrant’s period covered by this
report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial
reporting. |
Item 12. Disclosure of Securities Lending Activities for Closed-End
Management Investment Companies.
Item 13. Exhibits.
SIGNATURES
Pursuant to the requirements of the Securities Exchange
Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
(Registrant) |
|
First Trust Exchange-Traded Fund VI |
By (Signature and Title)* |
|
/s/ James M. Dykas |
|
|
James M. Dykas, President and Chief Executive Officer
(principal executive
officer)
|
Pursuant
to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed
below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By (Signature and Title)* |
|
/s/ James M. Dykas |
|
|
James M. Dykas, President and Chief Executive Officer
(principal executive
officer)
|
By (Signature and Title)* |
|
/s/ Donald P. Swade |
|
|
Donald P. Swade, Treasurer, Chief Financial Officer
and Chief Accounting Officer
(principal financial officer)
|
* Print the name and title of each signing officer under
his or her signature.