As filed with the Securities and Exchange Commission on November 24, 2021
1933 Act Registration No. 333-176976
1940 Act Registration No. 811-22245
United States
Securities and Exchange Commission
Washington, D.C. 20549
Form N-1A
Registration Statement Under the Securities Act of 1933 | [ ] |
Pre-Effective Amendment No. __ | [ ] |
Post-Effective Amendment No. 127 | [X] |
and/or | |
Registration Statement Under the Investment Company Act of 1940 | [ ] |
Amendment No. 128 | [X] |
First Trust Exchange-Traded Fund III
(Exact name of registrant as specified in charter)
120 East Liberty Drive, Suite 400
Wheaton, Illinois 60187
(Address of Principal Executive Offices) (Zip Code)
Registrant’s Telephone Number, including Area Code: (800) 621-1675
W. Scott Jardine, Esq., Secretary
First Trust Exchange-Traded Fund III
First Trust Advisors L.P.
120 East Liberty Drive, Suite 400
Wheaton, Illinois 60187
(Name and Address of Agent for Service)
Copy to:
Eric F. Fess, Esq.
Chapman and Cutler LLP
111 West Monroe Street
Chicago, Illinois 60603
It is proposed that this filing will become effective (check appropriate box):
[ ] immediately upon filing pursuant to paragraph (b)
[X] on December 1, 2021 pursuant to paragraph (b)
[ ] 60 days after filing pursuant to paragraph (a)(1)
[ ] on (date) pursuant to paragraph (a)(1)
[ ] 75 days after filing pursuant to paragraph (a)(2)
[ ] on (date) pursuant to paragraph (a)(2) of Rule 485.
If appropriate, check the following box:
[ ] this post-effective amendment designates a new effective date for a previously filed post-effective amendment.
Contents of Post-Effective Amendment No. 127
This Registration Statement comprises the following papers and contents:
The Facing Sheet
Part A - Prospectus for First Trust California Municipal High Income ETF; Prospectus for First Trust Horizon Managed Volatility Developed International ETF and First Trust Horizon Managed Volatility Domestic ETF; Prospectus for First Trust Horizon Managed Volatility Small/Mid ETF; Prospectus for First Trust Merger Arbitrage ETF; Prospectus for First Trust Municipal High Income ETF; Prospectus for First Trust New York Municipal High Income ETF; Prospectus for First Trust Short Duration Managed Municipal ETF; Prospectus for First Trust Ultra Short Duration Municipal ETF
Part B - Statement of Additional Information for First Trust California Municipal High Income ETF; Statement of Additional Information for First Trust Horizon Managed Volatility Developed International ETF and First Trust Horizon Managed Volatility Domestic ETF; Statement of Additional Information for First Trust Horizon Managed Volatility Small/Mid ETF; Statement of Additional Information for First Trust Merger Arbitrage ETF; Statement of Additional Information for First Trust Municipal High Income ETF; Statement of Additional Information for First Trust New York Municipal High Income ETF; Statement of Additional Information for First Trust Short Duration Managed Municipal ETF; Statement of Additional Information for First Trust Ultra Short Duration Municipal ETF
Part C - Other Information
Signatures
Index to Exhibits
Exhibits
First Trust
Exchange-Traded Fund III |
Ticker Symbol: |
FCAL |
Exchange: |
Nasdaq |
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price) |
|
Management Fees |
|
Distribution and Service (12b-1) Fees |
|
Other Expenses |
|
Total Annual Fund Operating Expenses |
|
Fee Waiver(1) |
|
Total Annual Fund Operating Expenses After Fee Waiver |
|
1 Year |
3 Years |
5 Years |
10 Years |
$ |
$ |
$ |
$ |
|
|
|
|
|
|
|
|
|
1 Year |
Since
Inception |
Inception
Date |
Return Before Taxes |
|
|
|
Return After Taxes on Distributions |
|
|
|
Return After Taxes on Distributions and Sale of Fund Shares |
|
|
|
Bloomberg Barclays 10 Year California Exempt Index (reflects no deduction for
fees, expenses or taxes) |
|
|
|
|
|
Average Annual |
Cumulative |
|
1 Year |
Inception
(6/20/2017) |
Inception
(6/20/2017) |
Fund Performance |
|
|
|
Net Asset Value |
6.37% |
5.14% |
22.91% |
Market Price |
6.45% |
5.16% |
22.97% |
Index Performance |
|
|
|
Bloomberg 10 Year California Exempt Index |
1.76% |
3.83% |
16.72% |
|
Year Ended July 31, |
Period Ended
7/31/2017(a)
| |||
|
2021 |
2020 |
2019 |
2018 | |
Net asset value, beginning of period |
$53.16 |
$52.70 |
$50.11 |
$50.14 |
$50.00 |
Income from investment operations: |
|
|
|
|
|
Net investment income (loss) |
1.16 |
1.17 |
1.49 |
1.45 |
0.10 |
Net realized and unrealized gain (loss) |
(b)2.19 |
0.51 |
2.60 |
(0.04) |
0.14 |
Total from investment operations |
3.35 |
1.68 |
4.09 |
1.41 |
0.24 |
Distributions paid to shareholders from: |
|
|
|
|
|
Net investment income |
(1.14) |
(1.17) |
(1.50) |
(1.40) |
(0.10) |
Net realized gain |
— |
— |
— |
(0.04) |
— |
Return of capital |
— |
(0.05) |
— |
— |
(c)(0.00)
|
Total Distributions |
(1.14) |
(1.22) |
(1.50) |
(1.44) |
(0.10) |
Net asset value, end of period |
$55.37 |
$53.16 |
$52.70 |
$50.11 |
$50.14 |
Total Return (d) |
(b)6.37% |
3.23% |
8.32% |
2.83% |
0.50% |
Ratios/supplemental data: |
|
|
|
|
|
Net assets, end of period (in 000’s) |
$105,199 |
$87,706 |
$34,257 |
$17,539 |
$10,029 |
Ratios to average net assets: |
|
|
|
|
|
Ratio of total expenses to average net assets |
0.65% |
0.65% |
0.65% |
0.65% |
(e)0.65%
|
Ratio of net expenses to average net assets |
0.50% |
0.50% |
0.50% |
0.50% |
(e)0.50%
|
Ratio of net investment income (loss) to average net assets |
2.16% |
2.28% |
3.01% |
2.97% |
(e)1.74%
|
Portfolio turnover rate (f)
|
25% |
81% |
69% |
91% |
22% |
First Trust
Exchange-Traded Fund III |
First Trust
Exchange-Traded Fund III |
FUND NAME |
TICKER SYMBOL |
EXCHANGE |
First Trust Horizon Managed Volatility Domestic ETF |
HUSV |
NYSE Arca |
First Trust Horizon Managed Volatility Developed International
ETF |
HDMV |
NYSE Arca |
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price) |
|
Management Fees |
|
Distribution and Service (12b-1) Fees |
|
Other Expenses |
|
Total Annual Fund Operating Expenses |
|
1 Year |
3 Years |
5 Years |
10 Years |
$ |
$ |
$ |
$ |
|
|
|
|
|
|
|
|
|
1 Year |
Since
Inception |
Inception
Date |
Return Before Taxes |
|
|
|
Return After Taxes on Distributions |
|
|
|
Return After Taxes on Distributions and Sale of Fund Shares |
|
|
|
S&P 500® Index (reflects no deduction for fees, expenses or taxes) |
|
|
|
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price) |
|
Management Fees |
|
Distribution and Service (12b-1) Fees |
|
Other Expenses |
|
Total Annual Fund Operating Expenses |
|
1 Year |
3 Years |
5 Years |
10 Years |
$ |
$ |
$ |
$ |
|
|
|
|
|
|
|
|
|
1 Year |
Since
Inception |
Inception
Date |
Return Before Taxes |
- |
|
|
Return After Taxes on Distributions |
- |
|
|
Return After Taxes on Distributions and Sale of Fund Shares |
- |
|
|
MSCI EAFE Index (reflects no deduction for fees, expenses or taxes) |
|
|
|
Fund |
Management Fee |
First Trust Horizon Managed Volatility Domestic ETF |
0.70% |
First Trust Horizon Managed Volatility Developed International ETF |
0.80% |
|
|
Average Annual |
Cumulative |
|
1 Year |
Inception
(8/24/2016) |
Inception
(8/24/2016) |
Fund Performance |
|
|
|
Net Asset Value |
23.48% |
12.30% |
77.28% |
Market Price |
23.48% |
12.30% |
77.28% |
Index Performance |
|
|
|
S&P 500® Index |
36.45% |
17.53% |
121.86% |
|
|
Average Annual |
Cumulative |
|
1 Year |
Inception
(8/24/2016) |
Inception
(8/24/2016) |
Fund Performance |
|
|
|
Net Asset Value |
18.01% |
4.31% |
23.17% |
Market Price |
18.55% |
4.33% |
23.29% |
Index Performance |
|
|
|
MSCI EAFE Index |
30.31% |
9.17% |
54.17% |
|
Year Ended July 31, |
Period
Ended
7/31/2017(a)
| |||
|
2021 |
2020 |
2019 |
2018 | |
Net asset value, beginning of period |
$27.19 |
$26.71 |
$23.49 |
$22.03 |
$19.96 |
Income from investment operations: |
|
|
|
|
|
Net investment income (loss) |
0.46 |
0.37 |
0.37 |
0.30 |
0.24 |
Net realized and unrealized gain (loss) |
5.87 |
0.52 |
3.17 |
1.46 |
2.05 |
Total from investment operations |
6.33 |
0.89 |
3.54 |
1.76 |
2.29 |
Distributions paid to shareholders from: |
|
|
|
|
|
Net investment income |
(0.44) |
(0.41) |
(0.32) |
(0.30) |
(0.22) |
Net asset value, end of period |
$33.08 |
$27.19 |
$26.71 |
$23.49 |
$22.03 |
Total Return (b) |
23.48% |
3.41% |
15.24% |
8.04% |
11.51% |
Ratios/supplemental data: |
|
|
|
|
|
Net assets, end of period (in 000’s) |
$120,758 |
$214,822 |
$224,389 |
$133,888 |
$62,799 |
Ratios to average net assets: |
|
|
|
|
|
Ratio of total expenses to average net assets |
0.70% |
0.70% |
0.70% |
0.70% |
(c)0.70%
|
Ratio of net investment income (loss) to average net assets |
1.42% |
1.39% |
1.58% |
1.37% |
(c)1.50%
|
Portfolio turnover rate (d)
|
152% |
211% |
147% |
157% |
149% |
|
Year Ended July 31, |
Period
Ended
7/31/2017(a)
| |||
|
2021 |
2020 |
2019 |
2018 | |
Net asset value, beginning of period |
$28.12 |
$32.92 |
$33.72 |
$33.05 |
$29.89 |
Income from investment operations: |
|
|
|
|
|
Net investment income (loss) |
0.89 |
0.65 |
0.86 |
0.91 |
0.63 |
Net realized and unrealized gain (loss) |
4.13 |
(4.61) |
(0.79) |
0.87 |
3.13 |
Total from investment operations |
5.02 |
(3.96) |
0.07 |
1.78 |
3.76 |
Distributions paid to shareholders from: |
|
|
|
|
|
Net investment income |
(0.93) |
(0.84) |
(0.87) |
(1.11) |
(0.60) |
Net asset value, end of period |
$32.21 |
$28.12 |
$32.92 |
$33.72 |
$33.05 |
Total Return (b) |
(c)18.01%
|
(12.37)% |
0.21% |
5.48% |
12.68% |
Ratios/supplemental data: |
|
|
|
|
|
Net assets, end of period (in 000’s) |
$86,962 |
$123,714 |
$128,394 |
$59,010 |
$29,745 |
Ratios to average net assets: |
|
|
|
|
|
Ratio of total expenses to average net assets |
0.80% |
0.80% |
0.80% |
0.80% |
(d)0.80%
|
Ratio of net investment income (loss) to average net assets |
2.68% |
2.08% |
2.74% |
2.73% |
(d)2.74%
|
Portfolio turnover rate (e)
|
127% |
196% |
99% |
133% |
150% |
First Trust
Exchange-Traded Fund III |
First Trust
Exchange-Traded Fund III |
Ticker Symbol: |
HSMV |
Exchange: |
NYSE Arca |
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price) |
|
Management Fees |
|
Distribution and Service (12b-1) Fees |
|
Other Expenses |
|
Total Annual Fund Operating Expenses |
|
1 Year |
3 Years |
5 Years |
10 Years |
$ |
$ |
$ |
$ |
|
|
Average Annual |
Cumulative |
|
1 Year |
Inception
(4/6/2020) |
Inception
(4/6/2020) |
Fund Performance |
|
|
|
Net Asset Value |
33.72% |
41.96% |
58.68% |
Market Price |
33.94% |
41.92% |
58.63% |
Index Performance |
|
|
|
S&P 1000® Index |
49.83% |
65.31% |
93.95% |
|
Year Ended July 31, |
Period
Ended
7/31/2020 (a) |
|
2021 | |
Net asset value, beginning of period |
$25.03 |
$21.10 |
Income from investment operations: |
|
|
Net investment income (loss) |
0.29 |
0.02 |
Net realized and unrealized gain (loss) |
8.09 |
3.92 |
Total from investment operations |
8.38 |
3.94 |
Distributions paid to shareholders from: |
|
|
Net investment income |
(0.29) |
(0.01) |
Net realized gain |
(b)(0.00)
|
— |
Total distributions |
(0.29) |
(0.01) |
Net asset value, end of period |
$33.12 |
$25.03 |
Total Return (c) |
33.72% |
18.67% |
Ratios to average net assets/supplemental data: |
|
|
Net assets, end of period (in 000’s) |
$14,906 |
$20,023 |
Ratio of total expenses to average net assets |
0.80% |
(d)0.80%
|
Ratio of net investment income (loss) to average net assets |
1.02% |
(d)0.60%
|
Portfolio turnover rate (e)
|
118% |
5% |
First Trust
Exchange-Traded Fund III |
First Trust
Exchange-Traded Fund III |
Ticker Symbol: |
MARB |
Exchange: |
NYSE Arca |
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price) |
|
Management Fees |
|
Distribution and Service (12b-1) Fees |
|
Other Expenses(1) |
|
Total Annual Fund Operating Expenses |
|
1 Year |
3 Years |
5 Years |
10 Years |
$ |
$ |
$ |
$ |
|
|
Average Annual |
Cumulative |
|
1 Year |
Inception
(2/4/2020) |
Inception
(2/4/2020) |
Fund Performance |
|
|
|
Net Asset Value |
0.46% |
-1.55% |
-2.30% |
Market Price |
0.41% |
-1.59% |
-2.35% |
Index Performance |
|
|
|
Hedge Fund Research Merger Arbitrage Index |
8.00% |
4.43% |
6.65% |
S&P 500® Index |
36.45% |
23.43% |
36.70% |
|
Year Ended July 31, |
Period
Ended
7/31/2020 (a)
|
|
2021 | |
Net asset value, beginning of period |
$19.46 |
$20.01 |
Income from investment operations: |
|
|
Net investment income (loss) |
(0.26) |
(0.07) |
Net realized and unrealized gain (loss) |
0.35 |
(0.48) |
Total from investment operations |
0.09 |
(0.55) |
Net asset value, end of period |
$19.55 |
$19.46 |
Total Return(b) |
0.46% |
(2.75)% |
Ratios/supplemental data: |
|
|
Net assets, end of period (in 000’s) |
$10,752 |
$12,649 |
Ratios to average net assets: |
|
|
Ratio of total expenses to average net assets |
2.23% |
(c)2.30% |
Ratio of total expenses to average net assets excluding dividend expense and margin interest
expense |
1.25% |
(c)1.25% |
Ratio of net investment income (loss) to average net assets |
(1.15)% |
(c)(1.71)% |
Portfolio turnover rate (d)
|
280% |
137% |
First Trust
Exchange-Traded Fund III |
First Trust
Exchange-Traded Fund III |
Ticker Symbol: |
FMHI |
Exchange: |
Nasdaq |
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price) |
|
Management Fees |
|
Distribution and Service (12b-1) Fees |
|
Other Expenses |
|
Total Annual Fund Operating Expenses |
|
Fee Waiver(1) |
|
Total Annual Fund Operating Expenses After Fee Waiver |
|
1 Year |
3 Years |
5 Years |
10 Years |
$ |
$ |
$ |
$ |
|
|
|
|
|
|
|
|
|
1 Year |
Since
Inception |
Inception
Date |
Return Before Taxes |
|
|
|
Return After Taxes on Distributions |
|
|
|
Return After Taxes on Distributions and Sale of Fund Shares |
|
|
|
Bloomberg Municipal Bond Index (reflects no deduction for fees, expenses or
taxes) |
|
|
|
Blended Benchmark(1) (reflects no deduction for fees, expenses or taxes) |
|
|
|
|
|
Average Annual |
Cumulative |
|
1 Year |
Inception
(11/1/2017) |
Inception
(11/1/2017) |
Fund Performance |
|
|
|
Net Asset Value |
12.57% |
6.82% |
28.02% |
Market Price |
12.72% |
6.83% |
28.07% |
Index Performance |
|
|
|
Bloomberg Municipal Bond Index |
3.29% |
4.37% |
17.39% |
Blended Benchmark(1) |
7.43% |
5.49% |
22.15% |
|
Year Ended July 31, |
Period
Ended
7/31/2018(a)
| ||
|
2021 |
2020 |
2019 | |
Net asset value, beginning of period |
$51.93 |
$52.48 |
$50.32 |
$50.00 |
Income from investment operations: |
|
|
|
|
Net investment income (loss) |
1.59 |
1.64 |
1.69 |
1.15 |
Net realized and unrealized gain (loss) |
(b)4.83
|
(0.48) |
2.27 |
0.30 |
Total from investment operations |
6.42 |
1.16 |
3.96 |
1.45 |
Distributions paid to shareholders from: |
|
|
|
|
Net investment income |
(1.59) |
(1.62) |
(1.67) |
(1.13) |
Return of capital |
(0.07) |
(0.09) |
(0.13) |
___ |
Total distributions |
(1.66) |
(1.71) |
(1.80) |
(1.13) |
Net asset value, end of period |
$56.69 |
$51.93 |
$52.48 |
$50.32 |
Total Return (c) |
(b)12.57%
|
2.25% |
8.05% |
2.93% |
Ratios to average net assets/supplemental data: |
|
|
|
|
Net assets, end of period (in 000’s) |
$283,461 |
$111,650 |
$62,979 |
$27,677 |
Ratio of total expenses to average net assets |
0.70% |
0.70% |
0.70% |
(d)0.70%
|
Ratio of net expenses to average net assets |
0.55% |
0.55% |
0.55% |
(d)0.55%
|
Ratio of net investment income (loss) to average net assets |
3.00% |
3.22% |
3.44% |
(d)3.13%
|
Portfolio turnover rate (e)
|
19% |
89% |
71% |
74% |
First Trust
Exchange-Traded Fund III |
First Trust
Exchange-Traded Fund III |
Ticker Symbol: |
FMNY |
Exchange: |
NYSE Arca, Inc. |
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price) |
|
Management Fees |
|
Distribution and Service (12b-1) Fees |
|
Other Expenses(1) |
|
Total Annual Fund Operating Expenses |
|
Fee Waiver(2) |
|
Total Annual Fund Operating Expenses After Fee Waiver |
|
1 Year |
3 Years |
5 Years |
10 Years |
$ |
$ |
$ |
$ |
|
Cumulative |
|
Inception
(5/12/2021) |
Fund Performance |
|
Net Asset Value |
1.90% |
Market Price |
1.90% |
Index Performance |
|
Bloomberg Municipal New York 12-17 Years Index |
1.72% |
|
Period
Ended
7/31/2021(a)
|
| |
Net asset value, beginning of period |
$30.00 |
Income from investment operations: |
|
Net investment income (loss) |
0.09 |
Net realized and unrealized gain (loss) |
0.48 |
Total from investment operations |
0.57 |
Distributions paid to shareholders from: |
|
Net investment income |
(0.04) |
Net realized gain |
(0.02) |
Total Distributions |
(0.06) |
Net asset value, end of period |
$30.51 |
Total Return (b) |
1.90% |
Ratios/supplemental data: |
|
Net assets, end of period (in 000’s) |
$15,256 |
Ratios to average net assets: |
|
Ratio of total expenses to average net assets |
(c)0.65%
|
Ratio of net expenses to average net assets |
(c)0.50%
|
Ratio of net investment income (loss) to average net assets |
(c)1.41%
|
Portfolio turnover rate (d)
|
16% |
First Trust
Exchange-Traded Fund III |
First Trust
Exchange-Traded Fund III |
Ticker Symbol: |
FSMB |
Exchange: |
NYSE Arca |
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price) |
|
Management Fees |
|
Distribution and Service (12b-1) Fees |
|
Other Expenses |
|
Total Annual Fund Operating Expenses |
|
Fee Waiver(1) |
|
Total Annual Fund Operating Expenses After Fee Waiver |
|
1 Year |
3 Years |
5 Years |
10 Years |
$ |
$ |
$ |
$ |
|
|
|
|
|
|
|
|
|
1 Year |
Since
Inception |
Inception
Date |
Return Before Taxes |
|
|
|
Return After Taxes on Distributions |
|
|
|
Return After Taxes on Distributions and Sale of Fund Shares |
|
|
|
Bloomberg Municipal Short (1-5) Year Index (reflects no deduction for fees,
expenses or taxes) |
|
|
|
|
|
Average Annual |
Cumulative |
|
1 Year |
Inception
(11/1/2018) |
Inception
(11/1/2018) |
Fund Performance |
|
|
|
Net Asset Value |
2.92% |
3.60% |
10.21% |
Market Price |
2.87% |
3.60% |
10.21% |
Index Performance |
|
|
|
Bloomberg Municipal Short (1-5) Year Index |
1.11% |
3.04% |
8.57% |
|
Year Ended July 31, |
Period
Ended
7/31/2019 (a) | |
|
2021 |
2020 | |
Net asset value, beginning of period |
$20.66 |
$20.48 |
$20.00 |
Income from investment operations: |
|
|
|
Net investment income (loss) |
0.27 |
0.38 |
0.34 |
Net realized and unrealized gain (loss) |
0.33 |
0.22 |
0.45 |
Total from investment operations |
0.60 |
0.60 |
0.79 |
Distributions paid to shareholders from: |
|
|
|
Net investment income |
(0.27) |
(0.41) |
(0.31) |
Return of capital |
(0.03) |
(0.01) |
— |
Total distributions |
(0.30) |
(0.42) |
(0.31) |
Net asset value, end of period |
$20.96 |
$20.66 |
$20.48 |
Total Return (b) |
2.92% |
2.98% |
3.98% |
Ratios to average net assets /supplemental data: |
|
|
|
Net assets, end of period (in 000’s) |
$129,931 |
$61,967 |
$19,454 |
Ratio of total expenses to average net assets |
0.55% |
0.55% |
(c)0.55% |
Ratio of net expenses to average net assets |
0.43% |
0.45% |
(c)0.45% |
Ratio of net investment income (loss) to average net assets |
1.33% |
2.00% |
(c)2.23% |
Portfolio turnover rate (d)
|
16% |
58% |
66% |
First Trust
Exchange-Traded Fund III |
First Trust
Exchange-Traded Fund III |
Ticker Symbol: |
FUMB |
Exchange: |
NYSE Arca |
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price) |
|
Management Fees |
|
Distribution and Service (12b-1) Fees |
|
Other Expenses |
|
Total Annual Fund Operating Expenses |
|
Fee Waiver(1) |
|
Total Annual Fund Operating Expenses After Fee Waiver |
|
1 Year |
3 Years |
5 Years |
10 Years |
$ |
$ |
$ |
$ |
|
|
|
|
|
|
|
|
|
1 Year |
Since
Inception |
Inception
Date |
Return Before Taxes |
|
|
|
Return After Taxes on Distributions |
|
|
|
Return After Taxes on Distributions and Sale of Fund Shares |
|
|
|
Bloomberg Municipal Short-Term Index (reflects no deduction for fees,
expenses or taxes) |
|
|
|
|
|
Average Annual |
Cumulative |
|
1 Year |
Inception
(11/1/2018) |
Inception
(11/1/2018) |
Fund Performance |
|
|
|
Net Asset Value |
0.72% |
1.48% |
4.12% |
Market Price |
0.67% |
1.48% |
4.12% |
Index Performance |
|
|
|
Bloomberg Municipal Short-Term Index |
0.41% |
1.23% |
3.42% |
|
Year Ended July 31, |
Period
Ended
7/31/2019 (a) | |
|
2021 |
2020 | |
Net asset value, beginning of period |
$20.16 |
$20.10 |
$20.00 |
Income from investment operations: |
|
|
|
Net investment income (loss) |
0.12 |
0.25 |
0.26 |
Net realized and unrealized gain (loss) |
0.02 |
0.07 |
0.09 |
Total from investment operations |
0.14 |
0.32 |
0.35 |
Distributions paid to shareholders from: |
|
|
|
Net investment income |
(0.12) |
(0.26) |
(0.25) |
Net realized gain |
— |
(b)(0.00) |
— |
Return of capital |
— |
(b)(0.00) |
— |
Total distributions |
(0.12) |
(0.26) |
(0.25) |
Net asset value, end of period |
$20.18 |
$20.16 |
$20.10 |
Total Return (c) |
0.72% |
1.61% |
1.75% |
Ratios to average net assets /supplemental data: |
|
|
|
Net assets, end of period (in 000’s) |
$165,474 |
$83,661 |
$20,098 |
Ratio of total expenses to average net assets |
0.45% |
0.45% |
(d)0.45% |
Ratio of net expenses to average net assets |
0.26% |
0.35% |
(d)0.35% |
Ratio of net investment income (loss) to average net assets |
0.61% |
1.20% |
(d)1.73% |
Portfolio turnover rate (e)
|
44% |
149% |
145% |
First Trust
Exchange-Traded Fund III |
FUND NAME |
TICKER SYMBOL |
EXCHANGE |
First Trust California Municipal High Income ETF |
FCAL |
Nasdaq |
1 | |
3 | |
3 | |
5 | |
13 | |
17 | |
26 | |
27 | |
28 | |
29 | |
30 | |
31 | |
34 | |
39 | |
40 | |
41 | |
41 | |
A-1 | |
B-1 | |
C-1 |
Portfolio Turnover Rate
| |
Fiscal Year Ended July 31, | |
2021 |
2020 |
25% |
81% |
Name and
Year of Birth |
Position
and Offices
with 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 the
Past 5 Years |
TRUSTEE WHO IS AN INTERESTED PERSON OF THE TRUST | |||||
James A. Bowen (1)
1955 |
Chairman of the
Board and Trustee |
•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) |
216 Portfolios |
None |
INDEPENDENT TRUSTEES | |||||
Richard E. Erickson
1951 |
Trustee |
•Indefinite term
•Since inception |
Physician; Officer, Wheaton Orthopedics;
Limited Partner, Gundersen Real Estate
Limited Partnership (June 1992 to
December 2016) |
216 Portfolios |
None |
Thomas R. Kadlec
1957 |
Trustee |
•Indefinite term
•Since inception |
President, ADM Investor Services, Inc.
(Futures Commission Merchant) |
216 Portfolios |
Director of ADM
Investor Services,
Inc., ADM Investor
Services
International,
Futures Industry
Association, and
National Futures
Association |
Denise M. Keefe
1964 |
Trustee |
•Indefinite term
•Since 2021 |
Executive Vice President, Advocate
Aurora Health and President, Advocate
Aurora Continuing Health Division
(Integrated Healthcare System) |
216 Portfolios |
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
1956 |
Trustee |
•Indefinite term
•Since inception |
President, Hibs Enterprises (Financial and
Management Consulting) |
216 Portfolios |
Director of Trust
Company of
Illinois |
Niel B. Nielson
1954 |
Trustee |
•Indefinite term
•Since inception |
Senior Advisor (August 2018 to present),
Managing Director and Chief Operating
Officer (January 2015 to August 2018),
Pelita Harapan Educational Foundation
(Educational Products and Services) |
216 Portfolios |
None |
Name and
Year of Birth |
Position and
Offices with Trust |
Term of Office and
Length of Service |
Principal Occupations
During Past 5 Years |
OFFICERS OF THE TRUST | |||
James M. Dykas
1966 |
President and Chief
Executive Officer |
•Indefinite term
•Since January 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) |
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; and 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. |
Donald P. Swade
1972 |
Treasurer, Chief Financial
Officer and Chief
Accounting Officer |
•Indefinite term
•Since January 2016 |
Senior Vice President, 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. |
Name of Trustee |
Total Compensation from
the Fund (1) |
Total Compensation from
the First Trust Fund Complex (2) |
Richard E. Erickson |
$ 3,848 |
$ 472,625 |
Thomas R. Kadlec |
$ 3,848 |
$ 472,625 |
Denise M. Keefe (3)
|
– |
– |
Robert F. Keith |
$3,840 |
$462,625 |
Niel B. Nielson |
$3,856 |
$482,625 |
Trustee |
Dollar Range of
Equity Securities in the
Fund
(Number of Shares
Held) |
Aggregate Dollar
Range of
Equity Securities in All
Registered
Investment Companies
Overseen by Trustee in
the
First Trust Fund
Complex |
Interested Trustee | ||
James A. Bowen |
None |
Over $100,000 |
Independent Trustees | ||
Richard E. Erickson |
None |
Over $100,000 |
Thomas R. Kadlec |
None |
Over $100,000 |
Denise M. Keefe(1)
|
None |
None |
Robert F. Keith |
None |
Over $100,000 |
Niel B. Nielson |
None |
Over $100,000 |
Amount of Unitary Fees
|
Amount of Fees Waived By First Trust
| ||||
Fiscal Year Ended July 31, |
Fiscal Year Ended July 31, | ||||
2021 |
2020 |
2019 |
2021 |
2020 |
2019 |
$614,792 |
$349,688 |
$117,081 |
$141,875 |
$104,906 |
$35,125 |
Name |
Position with
First Trust |
Length of Service
with First Trust |
Principal Occupation During Past
Five Years |
Tom Futrell |
Senior Vice
President and
Senior Portfolio
Manager |
Since 2013 |
Senior Vice President and Senior
Portfolio Manager (September 2013 to present),
First Trust Advisors L.P. |
Johnathan N. Wilhelm |
Senior Vice
President and
Senior Portfolio
Manager |
Since 2013 |
Senior Portfolio Manager (September 2013 to present),
First Trust Advisors L.P. |
Brendan Stewart |
Vice President
and Senior
Research Analyst |
Since 2014 |
Vice President (July 2017 to present) and Municipal
Analyst (March 2014 to present),
First Trust Advisors L.P. |
Portfolio Managers |
Registered
Investment Companies
Number of Accounts
($ Assets) |
Other Pooled
Investment Vehicles
Number of Accounts
($ Assets) |
Other Accounts
Number of Accounts
($ Assets) |
Mr. Futrell |
5 ($2,907,367,988) |
N/A |
54 ($77,085,605) |
Mr. Wilhelm |
5 ($2,907,367,988) |
N/A |
54 ($77,085,605) |
Mr. Stewart |
0 ($0) |
0 ($0) |
0 ($0) |
Aggregate Amount of Brokerage Commissions
| ||
Fiscal Year Ended July 31, | ||
2021 |
2020 |
2019 |
$0 |
$0 |
$0 |
Total
Non-Expiring
Capital Loss
Available |
$1,800,225 |
NAME OF BENEFICIAL OWNER |
% OF
OUTSTANDING
SHARES OWNED |
FIRST TRUST CALIFORNIA MUNICIPAL HIGH INCOME ETF | |
National Financial Services LLC |
22.72% |
Charles Schwab & Co., Inc. |
21.74% |
LPL Financial LLC |
17.05% |
TD Ameritrade Clearing, Inc. |
9.48% |
Pershing LLC |
9.43% |
AAA |
An obligation rated “AAA” has the highest rating assigned by Standard & Poor’s. The obligor’s capacity to meet
its financial commitment on the obligation is extremely strong. |
AA |
An obligation rated “AA” differs from the highest rated obligations only in small degree. The obligor’s capacity
to meet its financial commitment on the obligation is very strong. |
A |
An obligation rated “A” is somewhat more susceptible to the adverse effects of changes in circumstances and
economic conditions than obligations in higher rated categories. However, the obligor’s capacity to meet its
financial commitment on the obligation is still strong. |
BBB |
An obligation rated “BBB” exhibits adequate protection parameters. However, adverse economic conditions
or changing circumstances are more likely to lead to a weakened capacity of the obligor to meet its financial
commitment on the obligation. |
BB |
An obligation rated “BB” is less vulnerable to nonpayment than other speculative issues. However, it faces
major ongoing uncertainties or exposure to adverse business, financial, or economic conditions which could
lead to the obligor’s inadequate capacity to meet its financial commitment on the obligation. |
B |
An obligation rated “B” is more vulnerable to nonpayment than obligations rated “BB,” but the obligor
currently has the capacity to meet its financial commitment on the obligation. Adverse business, financial, or
economic conditions will likely impair the obligor’s capacity or willingness to meet its financial commitment on
the obligation. |
CCC |
An obligation rated “CCC” is currently vulnerable to nonpayment, and is dependent upon favorable business,
financial, and economic conditions for the obligor to meet its financial commitment on the obligation. In the
event of adverse business, financial, or economic conditions, the obligor is not likely to have the capacity to
meet its financial commitment on the obligation. |
CC |
An obligation rated “CC” is currently highly vulnerable to nonpayment. The “CC” rating is used when a default
has not yet occurred but S&P expects default to be a virtual certainty regardless of the anticipated time to
default. |
C |
An obligation rated “C” is currently highly vulnerable to nonpayment and the obligation is expected to have
lower relative seniority or lower ultimate recovery compared to obligations that are rated higher. |
D |
An obligation rated “D” is in default or in breach of an imputed promise. For non-hybrid capital instruments,
the “D” rating category is used when payments on an obligation are not made on the date due unless S&P
believes that such payments will be made within five business days in the absence of a stated grace period or
within the earlier of the stated grace period or 30 calendar days. The “D” rating also will be used upon the
filing of a bankruptcy petition or the taking of similar action and where default on an obligation is a virtual
certainty, for example due to automatic stay provisions. An obligation’s rating is lowered to ‘D’ if it is subject to
a distressed exchange offer. |
Aaa |
Obligations rated Aaa are judged to be of the highest quality, subject to the lowest level of credit risk. |
Aa |
Obligations rated Aa are judged to be of high quality and are subject to very low credit risk. |
A |
Obligations rated A are judged to be upper-medium grade and are subject to low credit risk. |
Baa |
Obligations rated Baa are judged to be medium-grade and subject to moderate credit risk and as such may
possess certain speculative characteristics. |
Ba |
Obligations rated Ba are judged to be speculative and are subject to substantial credit risk. |
B |
Obligations rated B are considered speculative and are subject to high credit risk. |
Caa |
Obligations rated Caa are judged to be speculative of poor standing and are subject to very high credit risk. |
Ca |
Obligations rated Ca are highly speculative and are likely in, or very near, default, with some prospect of
recovery of principal and interest. |
C |
Obligations rated C are the lowest rated and are typically in default, with little prospect for recovery of
principal or interest. |
AAA |
Highest credit quality. ‘AAA’ ratings denote the lowest expectation of default risk. They are assigned only in
cases of exceptionally strong capacity for payment of financial commitments. This capacity is highly unlikely
to be adversely affected by foreseeable events. |
AA |
Very high credit quality. ‘AA’ ratings denote expectations of very low default risk. They indicate very strong
capacity for payment of financial commitments. This capacity is not significantly vulnerable to foreseeable
events. |
A |
High credit quality. ‘A’ ratings denote expectations of low default risk. The capacity for payment of financial
commitments is considered strong. This capacity may, nevertheless, be more vulnerable to adverse business
or economic conditions than is the case for higher ratings. |
BBB |
Good credit quality. ‘BBB’ ratings indicate that expectations of default risk are currently low. The capacity for
payment of financial commitments is considered adequate but adverse business or economic conditions are
more likely to impair this capacity. |
BB |
Speculative. ‘BB’ ratings indicate an elevated vulnerability to default risk, particularly in the event of adverse
changes in business or economic conditions over time; however, business or financial flexibility exists which
supports the servicing of financial commitments. |
B |
Highly speculative. ‘B’ ratings indicate that material default risk is present, but a limited margin of safety
remains. Financial commitments are currently being met; however, capacity for continued payment is
vulnerable to deterioration in the business and economic environment. |
CCC |
Substantial credit risk. Default is a real possibility. |
CC |
Very high levels of credit risk. Default of some kind appears probable. |
C |
Exceptionally high levels of credit risk. Default is imminent or inevitable, or the issuer is in standstill.
Conditions that are indicative of a ‘C’ category rating for an issuer include:
•the issuer has entered into a grace or cure period following non-payment of a material financial obligation;
•the issuer has entered into a temporary negotiated waiver or standstill agreement following a payment
default on a material financial obligation; or
•Fitch otherwise believes a condition of ‘RD’ or ‘D’ to be imminent or inevitable, including through the formal
announcement of a distressed debt exchange. |
RD |
Restricted default. ‘RD’ ratings indicate an issuer that in Fitch’s opinion has experienced an uncured payment
default on a bond, loan or other material financial obligation but which has not entered into bankruptcy
filings, administration, receivership, liquidation or other formal winding-up procedure, and which has not
otherwise ceased operating. This would include:
•the selective payment default on a specific class or currency of debt;
•the uncured expiry of any applicable grace period, cure period or default forbearance period following a
payment default on a bank loan, capital markets security or other material financial obligation;
•the extension of multiple waivers or forbearance periods upon a payment default on one or more material
financial obligations, either in series or in parallel; or
•execution of a distressed debt exchange on one or more material financial obligations. |
D |
Default. ‘D’ ratings indicate an issuer that in Fitch’s opinion has entered into bankruptcy filings,
administration, receivership, liquidation or other formal winding-up procedure, or which has otherwise ceased
business. |
FUND NAME |
TICKER SYMBOL |
EXCHANGE |
First Trust Horizon Managed Volatility Domestic ETF |
HUSV |
NYSE Arca |
First Trust Horizon Managed Volatility Developed International ETF |
HDMV |
NYSE Arca |
1 | |
3 | |
3 | |
4 | |
8 | |
15 | |
23 | |
25 | |
26 | |
27 | |
29 | |
30 | |
30 | |
33 | |
38 | |
39 | |
40 | |
40 | |
A-1 | |
B-1 |
Fund Name |
Classification |
First Trust Horizon Managed Volatility Developed International ETF |
Diversified |
First Trust Horizon Managed Volatility Domestic ETF |
Diversified |
Portfolio Turnover Rate
| ||
Fund |
Fiscal Year Ended July 31, | |
2021 |
2020 | |
First Trust Horizon Managed Volatility Domestic ETF |
152% |
211% |
First Trust Horizon Managed Volatility Developed International ETF |
127% |
196% |
Name and
Year of Birth |
Position
and Offices
with 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 the
Past 5 Years |
TRUSTEE WHO IS AN INTERESTED PERSON OF THE TRUST | |||||
James A. Bowen (1)
1955 |
Chairman of the
Board and Trustee |
•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) |
216 Portfolios |
None |
INDEPENDENT TRUSTEES | |||||
Richard E. Erickson
1951 |
Trustee |
•Indefinite term
•Since inception |
Physician; Officer, Wheaton Orthopedics;
Limited Partner, Gundersen Real Estate
Limited Partnership (June 1992 to
December 2016) |
216 Portfolios |
None |
Thomas R. Kadlec
1957 |
Trustee |
•Indefinite term
•Since inception |
President, ADM Investor Services, Inc.
(Futures Commission Merchant) |
216 Portfolios |
Director of ADM
Investor Services,
Inc., ADM Investor
Services
International,
Futures Industry
Association, and
National Futures
Association |
Denise M. Keefe
1964 |
Trustee |
•Indefinite term
•Since 2021 |
Executive Vice President, Advocate
Aurora Health and President, Advocate
Aurora Continuing Health Division
(Integrated Healthcare System) |
216 Portfolios |
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
1956 |
Trustee |
•Indefinite term
•Since inception |
President, Hibs Enterprises (Financial and
Management Consulting) |
216 Portfolios |
Director of Trust
Company of
Illinois |
Niel B. Nielson
1954 |
Trustee |
•Indefinite term
•Since inception |
Senior Advisor (August 2018 to present),
Managing Director and Chief Operating
Officer (January 2015 to August 2018),
Pelita Harapan Educational Foundation
(Educational Products and Services) |
216 Portfolios |
None |
Name and
Year of Birth |
Position and
Offices with Trust |
Term of Office and
Length of Service |
Principal Occupations
During Past 5 Years |
OFFICERS OF THE TRUST | |||
James M. Dykas
1966 |
President and Chief
Executive Officer |
•Indefinite term
•Since January 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) |
Name and
Year of Birth |
Position and
Offices with Trust |
Term of Office and
Length of Service |
Principal Occupations
During Past 5 Years |
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; and 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. |
Donald P. Swade
1972 |
Treasurer, Chief Financial
Officer and Chief
Accounting Officer |
•Indefinite term
•Since January 2016 |
Senior Vice President, 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. |
Name of Trustee |
Total Compensation from
the Funds (1) |
Total Compensation from
the First Trust Fund Complex (2) |
Richard E. Erickson |
$ 7,709 |
$ 472,625 |
Thomas R. Kadlec |
$ 7,709 |
$ 472,625 |
Denise M. Keefe (3)
|
– |
– |
Robert F. Keith |
$7,687 |
$462,625 |
Niel B. Nielson |
$7,732 |
$482,625 |
|
Interested Trustee |
|
Independent Trustees | |||
|
James A.
Bowen |
Richard E.
Erickson |
Thomas R.
Kadlec |
Denise M.
Keefe (1)
|
Robert F.
Keith |
Niel B.
Nielson |
First Trust Horizon
Managed Volatility
Domestic ETF |
$50,001-$100,000 |
None |
None |
None |
None |
None |
First Trust Horizon
Managed Volatility
Developed
International ETF |
None |
None |
None |
None |
None |
None |
Aggregate Dollar Range
of Equity Securities in
All Registered
Investment Companies
Overseen by Trustee in
First Trust
Fund Complex |
Over $100,000 |
Over $100,000 |
Over $100,000 |
None |
Over $100,000 |
Over $100,000 |
Amount of Unitary Fees
| |||
Fund |
Fiscal Year Ended July 31, | ||
2021 |
2020 |
2019 | |
First Trust Horizon Managed Volatility Domestic ETF |
$ 1,125,676 |
$ 1,641,966 |
$ 1,218,936 |
Amount of Unitary Fees
| |||
Fund |
Fiscal Year Ended July 31, | ||
2021 |
2020 |
2019 | |
First Trust Horizon Managed Volatility Developed International ETF |
$ 779,693 |
$ 1,152,258 |
$623,639 |
Portfolio Manager |
Registered
Investment Companies
Number of Accounts
($ Assets) |
Other Pooled
Investment Vehicles
Number of Accounts
($ Assets) |
Other Accounts
Number of Accounts
($ Assets) |
Michael Dickson |
7 ($2.90 billion) |
N/A |
39,800 ($3.97 billion) |
Scott Ladner |
7 ($2.90 billion) |
N/A |
39,800 ($3.97 billion) |
Steven Clark |
N/A |
N/A |
5,700 ($859 million) |
Amount of Sub-Advisory Fees
| |||
Fund |
Fiscal Year Ended July 31, | ||
2021 |
2020 |
2019 | |
First Trust Horizon Managed Volatility Domestic ETF |
$ 420,720 |
$ 671,086 |
$ 192,081 |
First Trust Horizon Managed Volatility Developed International ETF |
$ 213,196 |
$ 404,224 |
$493,282 |
Aggregate Amount of Brokerage Commissions
| |||
Fund |
Fiscal Year Ended July 31, | ||
2021 |
2020 |
2019 | |
First Trust Horizon Managed Volatility Domestic ETF |
$ 59,479 |
$ 121,384 |
$ 66,575 |
First Trust Horizon Managed Volatility Developed International ETF |
$ 122,035 |
$ 279,722 |
$78,550 |
Fund |
Total
Non-Expiring
Capital Loss
Available |
First Trust Horizon Managed Volatility Domestic ETF |
$ 48,327,956 |
First Trust Horizon Managed Volatility Developed International ETF |
28,169,828 |
NAME OF BENEFICIAL OWNER |
% OF
OUTSTANDING
SHARES OWNED |
FIRST HORIZON MANAGED VOLATILITY DOMESTIC ETF | |
Pershing LLC |
24.15% |
National Financial Services LLC |
15.92% |
LPL Financial LLC |
15.51% |
JPMorgan Chase Bank, National Association |
10.67% |
TD Ameritrade Clearing, Inc. |
9.01% |
Charles Schwab & Co., Inc. |
8.93% |
Raymond James & Associates, Inc. |
5.86% |
Cetera Investment Services LLC |
5.68% |
FIRST HORIZON MANAGED VOLATILITY DEVELOPED INTERNATIONAL ETF | |
Pershing LLC |
24.77% |
Charles Schwab & Co., Inc. |
16.37% |
National Financial Services LLC |
12.86% |
LPL Financial LLC |
12.02% |
TD Ameritrade Clearing, Inc. |
8.51% |
Raymond James & Associates, Inc. |
7.60% |
JPMorgan Chase Bank, National Association |
7.37% |
Cetera Investment Services LLC |
5.29% |
FUND NAME |
TICKER SYMBOL |
EXCHANGE |
First Trust Horizon Managed Volatility Small/Mid ETF |
HSMV |
NYSE Arca |
1 | |
3 | |
3 | |
4 | |
8 | |
14 | |
22 | |
24 | |
25 | |
26 | |
28 | |
29 | |
29 | |
32 | |
37 | |
38 | |
39 | |
39 | |
A-1 | |
B-1 |
Portfolio Turnover Rate
| ||
Inception Date |
Fiscal Year Ended
July 31,
2021 |
Fiscal Period Ended
July 31,
2020 |
4/6/2020 |
118% |
5% |
Name and
Year of Birth |
Position
and Offices
with 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 the
Past 5 Years |
TRUSTEE WHO IS AN INTERESTED PERSON OF THE TRUST | |||||
James A. Bowen (1)
1955 |
Chairman of the
Board and Trustee |
•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) |
216 Portfolios |
None |
INDEPENDENT TRUSTEES | |||||
Richard E. Erickson
1951 |
Trustee |
•Indefinite term
•Since inception |
Physician; Officer, Wheaton Orthopedics;
Limited Partner, Gundersen Real Estate
Limited Partnership (June 1992 to
December 2016) |
216 Portfolios |
None |
Thomas R. Kadlec
1957 |
Trustee |
•Indefinite term
•Since inception |
President, ADM Investor Services, Inc.
(Futures Commission Merchant) |
216 Portfolios |
Director of ADM
Investor Services,
Inc., ADM Investor
Services
International,
Futures Industry
Association, and
National Futures
Association |
Denise M. Keefe
1964 |
Trustee |
•Indefinite term
•Since 2021 |
Executive Vice President, Advocate
Aurora Health and President, Advocate
Aurora Continuing Health Division
(Integrated Healthcare System) |
216 Portfolios |
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
1956 |
Trustee |
•Indefinite term
•Since inception |
President, Hibs Enterprises (Financial and
Management Consulting) |
216 Portfolios |
Director of Trust
Company of
Illinois |
Niel B. Nielson
1954 |
Trustee |
•Indefinite term
•Since inception |
Senior Advisor (August 2018 to present),
Managing Director and Chief Operating
Officer (January 2015 to August 2018),
Pelita Harapan Educational Foundation
(Educational Products and Services) |
216 Portfolios |
None |
Name and
Year of Birth |
Position and
Offices with Trust |
Term of Office and
Length of Service |
Principal Occupations
During Past 5 Years |
OFFICERS OF THE TRUST | |||
James M. Dykas
1966 |
President and Chief
Executive Officer |
•Indefinite term
•Since January 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) |
Name and
Year of Birth |
Position and
Offices with Trust |
Term of Office and
Length of Service |
Principal Occupations
During Past 5 Years |
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; and 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. |
Donald P. Swade
1972 |
Treasurer, Chief Financial
Officer and Chief
Accounting Officer |
•Indefinite term
•Since January 2016 |
Senior Vice President, 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. |
Name of Trustee |
Total Compensation from
the Fund (1) |
Total Compensation from
the First Trust Fund Complex (2) |
Richard E. Erickson |
$ 3,835 |
$ 472,625 |
Thomas R. Kadlec |
$ 3,835 |
$ 472,625 |
Denise M. Keefe (3)
|
– |
– |
Robert F. Keith |
$3,833 |
$462,625 |
Niel B. Nielson |
$3,836 |
$482,625 |
Trustee |
Dollar Range of
Equity Securities in the
Fund
(Number of Shares
Held) |
Aggregate Dollar
Range of
Equity Securities in All
Registered
Investment Companies
Overseen by Trustee in
the
First Trust Fund
Complex |
Interested Trustee | ||
James A. Bowen |
None |
Over $100,000 |
Independent Trustees | ||
Richard E. Erickson |
None |
Over $100,000 |
Thomas R. Kadlec |
None |
Over $100,000 |
Denise M. Keefe(1)
|
None |
None |
Robert F. Keith |
None |
Over $100,000 |
Niel B. Nielson |
None |
Over $100,000 |
Amount of Unitary Fees
| ||
Inception Date |
Fiscal Year Ended
July 31,
2021 |
Fiscal Period Ended
July 31,
2020 |
4/6/2020 |
$122,260 |
$19,325 |
Portfolio Manager |
Registered
Investment Companies
Number of Accounts
($ Assets) |
Other Pooled
Investment Vehicles
Number of Accounts
($ Assets) |
Other Accounts
Number of Accounts
($ Assets) |
Michael Dickson |
7 ($2.90 billion) |
N/A |
39,800 ($3.97 billion) |
Scott Ladner |
7 ($2.90 billion) |
N/A |
39,800 ($3.97 billion) |
Steven Clark |
N/A |
N/A |
5,700 ($859 million) |
Amount of Sub-Advisory Fees
| ||
Inception Date |
Fiscal Year Ended
July 31,
2021 |
Fiscal Period Ended
July 31,
2020 |
4/6/2020 |
$26 |
$0 |
Aggregate Amount of Brokerage Commissions
| ||
Inception Date |
Fiscal Year Ended
July 31,
2021 |
Fiscal Period Ended
July 31,
2020 |
4/6/2020 |
$8,211 |
$263 |
Total
Non-Expiring
Capital Loss
Available |
$249,714 |
NAME OF BENEFICIAL OWNER |
% OF
OUTSTANDING
SHARES OWNED |
FIRST TRUST HORIZON MANAGED VOLATILITY SMALL/MID ETF | |
Pershing LLC |
48.37% |
National Financial Services LLC |
17.64% |
TD Ameritrade Clearing, Inc. |
11.43% |
Cetera Investment Services LLC |
9.46% |
BOFA Securities, Inc. |
8.08% |
FUND NAME |
TICKER SYMBOL |
EXCHANGE |
First Trust Merger Arbitrage ETF |
MARB |
NYSE Arca |
1 | |
3 | |
3 | |
4 | |
11 | |
15 | |
22 | |
25 | |
26 | |
28 | |
29 | |
30 | |
31 | |
33 | |
38 | |
39 | |
40 | |
40 | |
A-1 | |
B-1 |
Portfolio Turnover Rate
| ||
Inception Date |
Fiscal Year Ended
July 31,
2021 |
Fiscal Period Ended
July 31,
2020 |
2/4/2020 |
280% |
137% |
Name and
Year of Birth |
Position
and Offices
with 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 the
Past 5 Years |
TRUSTEE WHO IS AN INTERESTED PERSON OF THE TRUST | |||||
James A. Bowen (1)
1955 |
Chairman of the
Board and Trustee |
•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) |
216 Portfolios |
None |
INDEPENDENT TRUSTEES | |||||
Richard E. Erickson
1951 |
Trustee |
•Indefinite term
•Since inception |
Physician; Officer, Wheaton Orthopedics;
Limited Partner, Gundersen Real Estate
Limited Partnership (June 1992 to
December 2016) |
216 Portfolios |
None |
Name and
Year of Birth |
Position
and Offices
with 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 the
Past 5 Years |
INDEPENDENT TRUSTEES | |||||
Thomas R. Kadlec
1957 |
Trustee |
•Indefinite term
•Since inception |
President, ADM Investor Services, Inc.
(Futures Commission Merchant) |
216 Portfolios |
Director of ADM
Investor Services,
Inc., ADM Investor
Services
International,
Futures Industry
Association, and
National Futures
Association |
Denise M. Keefe
1964 |
Trustee |
•Indefinite term
•Since 2021 |
Executive Vice President, Advocate
Aurora Health and President, Advocate
Aurora Continuing Health Division
(Integrated Healthcare System) |
216 Portfolios |
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
1956 |
Trustee |
•Indefinite term
•Since inception |
President, Hibs Enterprises (Financial and
Management Consulting) |
216 Portfolios |
Director of Trust
Company of
Illinois |
Niel B. Nielson
1954 |
Trustee |
•Indefinite term
•Since inception |
Senior Advisor (August 2018 to present),
Managing Director and Chief Operating
Officer (January 2015 to August 2018),
Pelita Harapan Educational Foundation
(Educational Products and Services) |
216 Portfolios |
None |
Name and
Year of Birth |
Position and
Offices with Trust |
Term of Office and
Length of Service |
Principal Occupations
During Past 5 Years |
OFFICERS OF THE TRUST | |||
James M. Dykas
1966 |
President and Chief
Executive Officer |
•Indefinite term
•Since January 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) |
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; and 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. |
Donald P. Swade
1972 |
Treasurer, Chief Financial
Officer and Chief
Accounting Officer |
•Indefinite term
•Since January 2016 |
Senior Vice President, 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. |
Name and
Year of Birth |
Position and
Offices with Trust |
Term of Office and
Length of Service |
Principal Occupations
During Past 5 Years |
Stan Ueland
1970 |
Vice President |
•Indefinite term
•Since inception |
Senior Vice President, First Trust Advisors L.P. and
First Trust Portfolios L.P. |
Name of Trustee |
Total Compensation from
the Fund (1) |
Total Compensation from
the First Trust Fund Complex (2) |
Richard E. Erickson |
$ 3,834 |
$ 472,625 |
Thomas R. Kadlec |
$ 3,834 |
$ 472,625 |
Denise M. Keefe (3)
|
– |
– |
Robert F. Keith |
$3,833 |
$462,625 |
Niel B. Nielson |
$3,835 |
$482,625 |
Trustee |
Dollar Range of
Equity Securities in the
Fund
(Number of Shares
Held) |
Aggregate Dollar
Range of
Equity Securities in All
Registered
Investment Companies
Overseen by Trustee in
the
First Trust Fund
Complex |
Interested Trustee | ||
James A. Bowen |
None |
Over $100,000 |
Independent Trustees | ||
Richard E. Erickson |
None |
Over $100,000 |
Thomas R. Kadlec |
None |
Over $100,000 |
Denise M. Keefe(1)
|
None |
None |
Robert F. Keith |
None |
Over $100,000 |
Niel B. Nielson |
None |
Over $100,000 |
Amount of Unitary Fees
| ||
Inception Date |
Fiscal Year Ended
July 31,
2021 |
Fiscal Period Ended
July 31,
2020 |
2/4/2020 |
$156,595 |
$34,219 |
Portfolio Manager |
Registered
Investment Companies
Number of Accounts
($ Assets) |
Other Pooled
Investment Vehicles
Number of Accounts
($ Assets) |
Other Accounts
Number of Accounts
($ Assets) |
Other Accounts
With Performance Fees
($ Assets) |
Jeff O’Brien |
3 ($668,164,631) |
1 ($12,727,025) |
N/A |
1 ($12,727,025) |
Daniel Lancz |
3 ($668,164,631) |
1 ($12,727,025) |
N/A |
1 ($12,727,025) |
Michael Peck |
2 ($197,156,138) |
5 ($137,273,529) |
N/A |
1 ($36,627,893) |
Brian Murphy |
2 ($197,156,138) |
13 ($237,494,780) |
N/A |
1 ($36,627,893) |
Michael Grayson |
N/A |
2 ($42,630,322) |
N/A |
N/A |
Amount of Sub-Advisory Fees
| ||
Inception Date |
Fiscal Year Ended
July 31,
2021 |
Fiscal Period Ended
July 31,
2020 |
2/4/2020 |
$6,192 |
$1,653 |
Aggregate Amount of Brokerage Commissions
| ||
Inception Date |
Fiscal Year Ended
July 31,
2021 |
Fiscal Period Ended
July 31,
2020 |
2/4/2020 |
$12,269 |
$3,136 |
Total
Non-Expiring
Capital Loss
Available |
$302,118 |
NAME OF BENEFICIAL OWNER |
% OF
OUTSTANDING
SHARES OWNED |
FIRST TRUST MERGER ARBITRAGE ETF | |
National Financial Services LLC |
28.63% |
TD Ameritrade Clearing, Inc. |
15.82% |
Pershing LLC |
15.30% |
Charles Schwab & Co., Inc. |
14.74% |
BOFA Securities, Inc. |
11.09% |
Goldman, Sachs & Co. LLC |
9.26% |
FUND NAME |
TICKER SYMBOL |
EXCHANGE |
First Trust Municipal High Income ETF |
FMHI |
Nasdaq |
1 | |
3 | |
3 | |
5 | |
13 | |
17 | |
26 | |
27 | |
28 | |
29 | |
30 | |
31 | |
34 | |
38 | |
40 | |
40 | |
40 | |
A-1 | |
B-1 | |
C-1 |
Portfolio Turnover Rate
| |
Fiscal Year Ended July 31, | |
2021 |
2020 |
19% |
89% |
Name and
Year of Birth |
Position
and Offices
with 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 the
Past 5 Years |
TRUSTEE WHO IS AN INTERESTED PERSON OF THE TRUST | |||||
James A. Bowen (1)
1955 |
Chairman of the
Board and Trustee |
•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) |
216 Portfolios |
None |
INDEPENDENT TRUSTEES | |||||
Richard E. Erickson
1951 |
Trustee |
•Indefinite term
•Since inception |
Physician; Officer, Wheaton Orthopedics;
Limited Partner, Gundersen Real Estate
Limited Partnership (June 1992 to
December 2016) |
216 Portfolios |
None |
Thomas R. Kadlec
1957 |
Trustee |
•Indefinite term
•Since inception |
President, ADM Investor Services, Inc.
(Futures Commission Merchant) |
216 Portfolios |
Director of ADM
Investor Services,
Inc., ADM Investor
Services
International,
Futures Industry
Association, and
National Futures
Association |
Denise M. Keefe
1964 |
Trustee |
•Indefinite term
•Since 2021 |
Executive Vice President, Advocate
Aurora Health and President, Advocate
Aurora Continuing Health Division
(Integrated Healthcare System) |
216 Portfolios |
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
1956 |
Trustee |
•Indefinite term
•Since inception |
President, Hibs Enterprises (Financial and
Management Consulting) |
216 Portfolios |
Director of Trust
Company of
Illinois |
Niel B. Nielson
1954 |
Trustee |
•Indefinite term
•Since inception |
Senior Advisor (August 2018 to present),
Managing Director and Chief Operating
Officer (January 2015 to August 2018),
Pelita Harapan Educational Foundation
(Educational Products and Services) |
216 Portfolios |
None |
Name and
Year of Birth |
Position and
Offices with Trust |
Term of Office and
Length of Service |
Principal Occupations
During Past 5 Years |
OFFICERS OF THE TRUST | |||
James M. Dykas
1966 |
President and Chief
Executive Officer |
•Indefinite term
•Since January 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) |
Name and
Year of Birth |
Position and
Offices with Trust |
Term of Office and
Length of Service |
Principal Occupations
During Past 5 Years |
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; and 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. |
Donald P. Swade
1972 |
Treasurer, Chief Financial
Officer and Chief
Accounting Officer |
•Indefinite term
•Since January 2016 |
Senior Vice President, 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. |
Name of Trustee |
Total Compensation from
the Fund (1) |
Total Compensation from
the First Trust Fund Complex (2) |
Richard E. Erickson |
$ 3,858 |
$ 472,625 |
Thomas R. Kadlec |
$ 3,858 |
$ 472,625 |
Denise M. Keefe (3)
|
– |
– |
Robert F. Keith |
$3,845 |
$462,625 |
Niel B. Nielson |
$3,871 |
$482,625 |
Trustee |
Dollar Range of
Equity Securities in the
Fund
(Number of Shares
Held) |
Aggregate Dollar
Range of
Equity Securities in All
Registered
Investment Companies
Overseen by Trustee in
the
First Trust Fund
Complex |
Interested Trustee | ||
James A. Bowen |
None |
Over $100,000 |
Independent Trustees | ||
Richard E. Erickson |
None |
Over $100,000 |
Thomas R. Kadlec |
None |
Over $100,000 |
Denise M. Keefe(1)
|
None |
None |
Robert F. Keith |
None |
Over $100,000 |
Niel B. Nielson |
None |
Over $100,000 |
Amount of Unitary Fees
|
Amount of Fees Waived By First Trust
| ||||
Fiscal Year Ended July 31, |
Fiscal Year Ended July 31, | ||||
2021 |
2020 |
2019 |
2021 |
2020 |
2019 |
$907,672 |
$492,782 |
$222,426 |
$247,547 |
$134,395 |
$60,662 |
Name |
Position with
First Trust |
Length of Service
with First Trust |
Principal Occupation During Past
Five Years |
Tom Futrell |
Senior Vice
President and
Senior Portfolio
Manager |
Since 2013 |
Senior Vice President and Senior Portfolio Manager
(September 2013 to present), First Trust Advisors L.P. |
Johnathan N. Wilhelm |
Senior Vice
President and
Senior Portfolio
Manager |
Since 2013 |
Senior Portfolio Manager (September 2013 to present),
First Trust Advisors L.P. |
Portfolio Managers |
Registered
Investment Companies
Number of Accounts
($ Assets) |
Other Pooled
Investment Vehicles
Number of Accounts
($ Assets) |
Other Accounts
Number of Accounts
($ Assets) |
Tom Futrell |
5 ($2,729,130,933) |
N/A |
54 ($77,085,605) |
Johnathan N. Wilhelm |
5 ($2,729,130,933) |
N/A |
54 ($77,085,605) |
Aggregate Amount of Brokerage Commissions
| ||
Fiscal Year Ended July 31, | ||
2021 |
2020 |
2019 |
$0 |
$0 |
$0 |
Total
Non-Expiring
Capital Loss
Available |
$2,976,926 |
NAME OF BENEFICIAL OWNER |
% OF
OUTSTANDING
SHARES OWNED |
FIRST TRUST MUNICIPAL HIGH INCOME ETF | |
TD Ameritrade Clearing, Inc. |
17.27% |
LPL Financial LLC |
13.26% |
Morgan Stanley Smith Barney LLC |
11.94% |
National Financial Services LLC |
11.65% |
Pershing LLC |
11.61% |
Charles Schwab & Co., Inc. |
9.40% |
Merrill Lynch, Pierce, Fenner & Smith Incorporated/8862 MLPF&S TS SUB |
5.52% |
AAA |
An obligation rated “AAA” has the highest rating assigned by Standard & Poor’s. The obligor’s capacity to meet
its financial commitment on the obligation is extremely strong. |
AA |
An obligation rated “AA” differs from the highest rated obligations only in small degree. The obligor’s capacity
to meet its financial commitment on the obligation is very strong. |
A |
An obligation rated “A” is somewhat more susceptible to the adverse effects of changes in circumstances and
economic conditions than obligations in higher rated categories. However, the obligor’s capacity to meet its
financial commitment on the obligation is still strong. |
BBB |
An obligation rated “BBB” exhibits adequate protection parameters. However, adverse economic conditions
or changing circumstances are more likely to lead to a weakened capacity of the obligor to meet its financial
commitment on the obligation. |
BB |
An obligation rated “BB” is less vulnerable to nonpayment than other speculative issues. However, it faces
major ongoing uncertainties or exposure to adverse business, financial, or economic conditions which could
lead to the obligor’s inadequate capacity to meet its financial commitment on the obligation. |
B |
An obligation rated “B” is more vulnerable to nonpayment than obligations rated “BB,” but the obligor
currently has the capacity to meet its financial commitment on the obligation. Adverse business, financial, or
economic conditions will likely impair the obligor’s capacity or willingness to meet its financial commitment on
the obligation. |
CCC |
An obligation rated “CCC” is currently vulnerable to nonpayment, and is dependent upon favorable business,
financial, and economic conditions for the obligor to meet its financial commitment on the obligation. In the
event of adverse business, financial, or economic conditions, the obligor is not likely to have the capacity to
meet its financial commitment on the obligation. |
CC |
An obligation rated “CC” is currently highly vulnerable to nonpayment. The “CC” rating is used when a default
has not yet occurred but S&P expects default to be a virtual certainty regardless of the anticipated time to
default. |
C |
An obligation rated “C” is currently highly vulnerable to nonpayment and the obligation is expected to have
lower relative seniority or lower ultimate recovery compared to obligations that are rated higher. |
D |
An obligation rated “D” is in default or in breach of an imputed promise. For non-hybrid capital instruments,
the “D” rating category is used when payments on an obligation are not made on the date due unless S&P
believes that such payments will be made within five business days in the absence of a stated grace period or
within the earlier of the stated grace period or 30 calendar days. The “D” rating also will be used upon the
filing of a bankruptcy petition or the taking of similar action and where default on an obligation is a virtual
certainty, for example due to automatic stay provisions. An obligation’s rating is lowered to ‘D’ if it is subject to
a distressed exchange offer. |
Aaa |
Obligations rated Aaa are judged to be of the highest quality, subject to the lowest level of credit risk. |
Aa |
Obligations rated Aa are judged to be of high quality and are subject to very low credit risk. |
A |
Obligations rated A are judged to be upper-medium grade and are subject to low credit risk. |
Baa |
Obligations rated Baa are judged to be medium-grade and subject to moderate credit risk and as such may
possess certain speculative characteristics. |
Ba |
Obligations rated Ba are judged to be speculative and are subject to substantial credit risk. |
B |
Obligations rated B are considered speculative and are subject to high credit risk. |
Caa |
Obligations rated Caa are judged to be speculative of poor standing and are subject to very high credit risk. |
Ca |
Obligations rated Ca are highly speculative and are likely in, or very near, default, with some prospect of
recovery of principal and interest. |
C |
Obligations rated C are the lowest rated and are typically in default, with little prospect for recovery of
principal or interest. |
AAA |
Highest credit quality. ‘AAA’ ratings denote the lowest expectation of default risk. They are assigned only in
cases of exceptionally strong capacity for payment of financial commitments. This capacity is highly unlikely
to be adversely affected by foreseeable events. |
AA |
Very high credit quality. ‘AA’ ratings denote expectations of very low default risk. They indicate very strong
capacity for payment of financial commitments. This capacity is not significantly vulnerable to foreseeable
events. |
A |
High credit quality. ‘A’ ratings denote expectations of low default risk. The capacity for payment of financial
commitments is considered strong. This capacity may, nevertheless, be more vulnerable to adverse business
or economic conditions than is the case for higher ratings. |
BBB |
Good credit quality. ‘BBB’ ratings indicate that expectations of default risk are currently low. The capacity for
payment of financial commitments is considered adequate but adverse business or economic conditions are
more likely to impair this capacity. |
BB |
Speculative. ‘BB’ ratings indicate an elevated vulnerability to default risk, particularly in the event of adverse
changes in business or economic conditions over time; however, business or financial flexibility exists which
supports the servicing of financial commitments. |
B |
Highly speculative. ‘B’ ratings indicate that material default risk is present, but a limited margin of safety
remains. Financial commitments are currently being met; however, capacity for continued payment is
vulnerable to deterioration in the business and economic environment. |
CCC |
Substantial credit risk. Default is a real possibility. |
CC |
Very high levels of credit risk. Default of some kind appears probable. |
C |
Exceptionally high levels of credit risk. Default is imminent or inevitable, or the issuer is in standstill.
Conditions that are indicative of a ‘C’ category rating for an issuer include:
•the issuer has entered into a grace or cure period following non-payment of a material financial obligation;
•the issuer has entered into a temporary negotiated waiver or standstill agreement following a payment
default on a material financial obligation; or
•Fitch otherwise believes a condition of ‘RD’ or ‘D’ to be imminent or inevitable, including through the formal
announcement of a distressed debt exchange. |
RD |
Restricted default. ‘RD’ ratings indicate an issuer that in Fitch’s opinion has experienced an uncured payment
default on a bond, loan or other material financial obligation but which has not entered into bankruptcy
filings, administration, receivership, liquidation or other formal winding-up procedure, and which has not
otherwise ceased operating. This would include:
•the selective payment default on a specific class or currency of debt;
•the uncured expiry of any applicable grace period, cure period or default forbearance period following a
payment default on a bank loan, capital markets security or other material financial obligation;
•the extension of multiple waivers or forbearance periods upon a payment default on one or more material
financial obligations, either in series or in parallel; or
•execution of a distressed debt exchange on one or more material financial obligations. |
D |
Default. ‘D’ ratings indicate an issuer that in Fitch’s opinion has entered into bankruptcy filings,
administration, receivership, liquidation or other formal winding-up procedure, or which has otherwise ceased
business. |
FUND NAME |
TICKER SYMBOL |
EXCHANGE |
First Trust New York Municipal High Income ETF |
FMNY |
NYSE Arca, Inc. |
1 | |
3 | |
3 | |
4 | |
13 | |
17 | |
25 | |
26 | |
28 | |
29 | |
30 | |
31 | |
34 | |
38 | |
40 | |
40 | |
40 | |
A-1 | |
B-1 | |
C-1 |
Portfolio Turnover Rate
| |
Inception Date |
Fiscal Period Ended
July 31,
2021 |
5/12/2021 |
16% |
Name and
Year of Birth |
Position
and Offices
with 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 the
Past 5 Years |
TRUSTEE WHO IS AN INTERESTED PERSON OF THE TRUST | |||||
James A. Bowen (1)
1955 |
Chairman of the
Board and Trustee |
•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) |
216 Portfolios |
None |
INDEPENDENT TRUSTEES | |||||
Richard E. Erickson
1951 |
Trustee |
•Indefinite term
•Since inception |
Physician; Officer, Wheaton Orthopedics;
Limited Partner, Gundersen Real Estate
Limited Partnership (June 1992 to
December 2016) |
216 Portfolios |
None |
Thomas R. Kadlec
1957 |
Trustee |
•Indefinite term
•Since inception |
President, ADM Investor Services, Inc.
(Futures Commission Merchant) |
216 Portfolios |
Director of ADM
Investor Services,
Inc., ADM Investor
Services
International,
Futures Industry
Association, and
National Futures
Association |
Name and
Year of Birth |
Position
and Offices
with 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 the
Past 5 Years |
INDEPENDENT TRUSTEES | |||||
Denise M. Keefe
1964 |
Trustee |
•Indefinite term
•Since 2021 |
Executive Vice President, Advocate
Aurora Health and President, Advocate
Aurora Continuing Health Division
(Integrated Healthcare System) |
216 Portfolios |
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
1956 |
Trustee |
•Indefinite term
•Since inception |
President, Hibs Enterprises (Financial and
Management Consulting) |
216 Portfolios |
Director of Trust
Company of
Illinois |
Niel B. Nielson
1954 |
Trustee |
•Indefinite term
•Since inception |
Senior Advisor (August 2018 to present),
Managing Director and Chief Operating
Officer (January 2015 to August 2018),
Pelita Harapan Educational Foundation
(Educational Products and Services) |
216 Portfolios |
None |
Name and
Year of Birth |
Position and
Offices with Trust |
Term of Office and
Length of Service |
Principal Occupations
During Past 5 Years |
OFFICERS OF THE TRUST | |||
James M. Dykas
1966 |
President and Chief
Executive Officer |
•Indefinite term
•Since January 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) |
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; and Secretary, Stonebridge Advisors
LLC |
Daniel J. Lindquist
1970 |
Vice President |
•Indefinite term
•Since inception |
Managing Director, First Trust Advisors L.P. and First
Trust Portfolios L.P. |
Kristi A. Maher
1966 |
Chief Compliance Officer
and Assistant Secretary |
•Indefinite term
•Chief Compliance
Officer since January
2011, Assistant
Secretary since
inception |
Deputy General Counsel, First Trust Advisors L.P.
and First Trust Portfolios L.P. |
Donald P. Swade
1972 |
Treasurer, Chief Financial
Officer and Chief
Accounting Officer |
•Indefinite term
•Since January 2016 |
Senior Vice President, 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. |
Name of Trustee |
Total Compensation from
the Fund (1) |
Total Compensation from
the First Trust Fund Complex (2) |
Richard E. Erickson |
$ 3,860 |
$ 472,625 |
Thomas R. Kadlec |
$ 3,860 |
$ 472,625 |
Denise M. Keefe (3)
|
– |
– |
Robert F. Keith |
$3,853 |
$462,625 |
Niel B. Nielson |
$3,867 |
$482,625 |
Trustee |
Dollar Range of
Equity Securities in the
Fund
(Number of Shares
Held) |
Aggregate Dollar
Range of
Equity Securities in All
Registered
Investment Companies
Overseen by Trustee in
the
First Trust Fund
Complex |
Interested Trustee | ||
James A. Bowen |
None |
Over $100,000 |
Independent Trustees | ||
Richard E. Erickson |
None |
Over $100,000 |
Thomas R. Kadlec |
None |
Over $100,000 |
Denise M. Keefe(1)
|
None |
None |
Robert F. Keith |
None |
Over $100,000 |
Niel B. Nielson |
None |
Over $100,000 |
Inception Date |
Amount of Unitary Fees
|
Amount of Fees Waived By First Trust
|
Fiscal Period Ended
July 31,
2021 |
Fiscal Period Ended
July 31,
2021 | |
5/12/2021 |
$16,608 |
$4,982 |
Name |
Position with
First Trust |
Length of Service
with First Trust |
Principal Occupation During Past
Five Years |
Tom Futrell |
Senior Vice
President and
Senior Portfolio
Manager |
Since 2013 |
Senior Vice President and Senior Portfolio Manager
(September 2013 to present), First Trust Advisors L.P. |
Johnathan N. Wilhelm |
Senior Vice
President and
Senior Portfolio
Manager |
Since 2013 |
Senior Portfolio Manager (September 2013 to present),
First Trust Advisors L.P. |
Portfolio Managers |
Registered
Investment Companies
Number of Accounts
($ Assets) |
Other Pooled
Investment Vehicles
Number of Accounts
($ Assets) |
Other Accounts
Number of Accounts
($ Assets) |
Mr. Futrell |
5 ($2,997,310,825) |
N/A |
54 ($77,085,605) |
Mr. Wilhelm |
5 ($2,997,310,825) |
N/A |
54 ($77,085,605) |
Aggregate Amount of Brokerage Commissions
| |
Inception Date |
Fiscal Period Ended
July 31,
2021 |
5/12/2021 |
$0 |
NAME OF BENEFICIAL OWNER |
% OF
OUTSTANDING
SHARES OWNED |
FIRST TRUST NEW YORK MUNICIPAL HIGH INCOME ETF | |
Goldman, Sachs & Co. LLC |
29.13% |
J.P. Morgan Securities LLC/JPMC |
24.04% |
Citigroup Global Markets, Inc./Correspondent Clearing |
15.00% |
RBC Capital Markets, LLC |
9.23% |
FC Stone Financial Inc. |
7.00% |
AAA |
An obligation rated “AAA” has the highest rating assigned by Standard & Poor’s. The obligor’s capacity to meet
its financial commitment on the obligation is extremely strong. |
AA |
An obligation rated “AA” differs from the highest rated obligations only in small degree. The obligor’s capacity
to meet its financial commitment on the obligation is very strong. |
A |
An obligation rated “A” is somewhat more susceptible to the adverse effects of changes in circumstances and
economic conditions than obligations in higher rated categories. However, the obligor’s capacity to meet its
financial commitment on the obligation is still strong. |
BBB |
An obligation rated “BBB” exhibits adequate protection parameters. However, adverse economic conditions
or changing circumstances are more likely to lead to a weakened capacity of the obligor to meet its financial
commitment on the obligation. |
BB |
An obligation rated “BB” is less vulnerable to nonpayment than other speculative issues. However, it faces
major ongoing uncertainties or exposure to adverse business, financial, or economic conditions which could
lead to the obligor’s inadequate capacity to meet its financial commitment on the obligation. |
B |
An obligation rated “B” is more vulnerable to nonpayment than obligations rated “BB,” but the obligor
currently has the capacity to meet its financial commitment on the obligation. Adverse business, financial, or
economic conditions will likely impair the obligor’s capacity or willingness to meet its financial commitment on
the obligation. |
CCC |
An obligation rated “CCC” is currently vulnerable to nonpayment, and is dependent upon favorable business,
financial, and economic conditions for the obligor to meet its financial commitment on the obligation. In the
event of adverse business, financial, or economic conditions, the obligor is not likely to have the capacity to
meet its financial commitment on the obligation. |
CC |
An obligation rated “CC” is currently highly vulnerable to nonpayment. The “CC” rating is used when a default
has not yet occurred but S&P expects default to be a virtual certainty regardless of the anticipated time to
default. |
C |
An obligation rated “C” is currently highly vulnerable to nonpayment and the obligation is expected to have
lower relative seniority or lower ultimate recovery compared to obligations that are rated higher. |
D |
An obligation rated “D” is in default or in breach of an imputed promise. For non-hybrid capital instruments,
the “D” rating category is used when payments on an obligation are not made on the date due unless S&P
believes that such payments will be made within five business days in the absence of a stated grace period or
within the earlier of the stated grace period or 30 calendar days. The “D” rating also will be used upon the
filing of a bankruptcy petition or the taking of similar action and where default on an obligation is a virtual
certainty, for example due to automatic stay provisions. An obligation’s rating is lowered to ‘D’ if it is subject to
a distressed exchange offer. |
Aaa |
Obligations rated Aaa are judged to be of the highest quality, subject to the lowest level of credit risk. |
Aa |
Obligations rated Aa are judged to be of high quality and are subject to very low credit risk. |
A |
Obligations rated A are judged to be upper-medium grade and are subject to low credit risk. |
Baa |
Obligations rated Baa are judged to be medium-grade and subject to moderate credit risk and as such may
possess certain speculative characteristics. |
Ba |
Obligations rated Ba are judged to be speculative and are subject to substantial credit risk. |
B |
Obligations rated B are considered speculative and are subject to high credit risk. |
Caa |
Obligations rated Caa are judged to be speculative of poor standing and are subject to very high credit risk. |
Ca |
Obligations rated Ca are highly speculative and are likely in, or very near, default, with some prospect of
recovery of principal and interest. |
C |
Obligations rated C are the lowest rated and are typically in default, with little prospect for recovery of
principal or interest. |
AAA |
Highest credit quality. ‘AAA’ ratings denote the lowest expectation of default risk. They are assigned only in
cases of exceptionally strong capacity for payment of financial commitments. This capacity is highly unlikely
to be adversely affected by foreseeable events. |
AA |
Very high credit quality. ‘AA’ ratings denote expectations of very low default risk. They indicate very strong
capacity for payment of financial commitments. This capacity is not significantly vulnerable to foreseeable
events. |
A |
High credit quality. ‘A’ ratings denote expectations of low default risk. The capacity for payment of financial
commitments is considered strong. This capacity may, nevertheless, be more vulnerable to adverse business
or economic conditions than is the case for higher ratings. |
BBB |
Good credit quality. ‘BBB’ ratings indicate that expectations of default risk are currently low. The capacity for
payment of financial commitments is considered adequate but adverse business or economic conditions are
more likely to impair this capacity. |
BB |
Speculative. ‘BB’ ratings indicate an elevated vulnerability to default risk, particularly in the event of adverse
changes in business or economic conditions over time; however, business or financial flexibility exists which
supports the servicing of financial commitments. |
B |
Highly speculative. ‘B’ ratings indicate that material default risk is present, but a limited margin of safety
remains. Financial commitments are currently being met; however, capacity for continued payment is
vulnerable to deterioration in the business and economic environment. |
CCC |
Substantial credit risk. Default is a real possibility. |
CC |
Very high levels of credit risk. Default of some kind appears probable. |
C |
Exceptionally high levels of credit risk. Default is imminent or inevitable, or the issuer is in standstill.
Conditions that are indicative of a ‘C’ category rating for an issuer include:
•the issuer has entered into a grace or cure period following non-payment of a material financial obligation;
•the issuer has entered into a temporary negotiated waiver or standstill agreement following a payment
default on a material financial obligation; or
•Fitch otherwise believes a condition of ‘RD’ or ‘D’ to be imminent or inevitable, including through the formal
announcement of a distressed debt exchange. |
RD |
Restricted default. ‘RD’ ratings indicate an issuer that in Fitch’s opinion has experienced an uncured payment
default on a bond, loan or other material financial obligation but which has not entered into bankruptcy
filings, administration, receivership, liquidation or other formal winding-up procedure, and which has not
otherwise ceased operating. This would include:
•the selective payment default on a specific class or currency of debt;
•the uncured expiry of any applicable grace period, cure period or default forbearance period following a
payment default on a bank loan, capital markets security or other material financial obligation;
•the extension of multiple waivers or forbearance periods upon a payment default on one or more material
financial obligations, either in series or in parallel; or
•execution of a distressed debt exchange on one or more material financial obligations. |
D |
Default. ‘D’ ratings indicate an issuer that in Fitch’s opinion has entered into bankruptcy filings,
administration, receivership, liquidation or other formal winding-up procedure, or which has otherwise ceased
business. |
FUND NAME |
TICKER SYMBOL |
EXCHANGE |
First Trust Short Duration Managed Municipal ETF |
FSMB |
NYSE Arca |
1 | |
3 | |
3 | |
4 | |
13 | |
17 | |
25 | |
26 | |
27 | |
29 | |
30 | |
30 | |
33 | |
37 | |
39 | |
39 | |
40 | |
A-1 | |
B-1 | |
C-1 |
Portfolio Turnover Rate
| |
Fiscal Year Ended July 31, | |
2021 |
2020 |
16% |
58% |
Name and
Year of Birth |
Position
and Offices
with 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 the
Past 5 Years |
TRUSTEE WHO IS AN INTERESTED PERSON OF THE TRUST | |||||
James A. Bowen (1)
1955 |
Chairman of the
Board and Trustee |
•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) |
216 Portfolios |
None |
INDEPENDENT TRUSTEES | |||||
Richard E. Erickson
1951 |
Trustee |
•Indefinite term
•Since inception |
Physician; Officer, Wheaton Orthopedics;
Limited Partner, Gundersen Real Estate
Limited Partnership (June 1992 to
December 2016) |
216 Portfolios |
None |
Thomas R. Kadlec
1957 |
Trustee |
•Indefinite term
•Since inception |
President, ADM Investor Services, Inc.
(Futures Commission Merchant) |
216 Portfolios |
Director of ADM
Investor Services,
Inc., ADM Investor
Services
International,
Futures Industry
Association, and
National Futures
Association |
Denise M. Keefe
1964 |
Trustee |
•Indefinite term
•Since 2021 |
Executive Vice President, Advocate
Aurora Health and President, Advocate
Aurora Continuing Health Division
(Integrated Healthcare System) |
216 Portfolios |
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) |
Name and
Year of Birth |
Position
and Offices
with 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 the
Past 5 Years |
INDEPENDENT TRUSTEES | |||||
Robert F. Keith
1956 |
Trustee |
•Indefinite term
•Since inception |
President, Hibs Enterprises (Financial and
Management Consulting) |
216 Portfolios |
Director of Trust
Company of
Illinois |
Niel B. Nielson
1954 |
Trustee |
•Indefinite term
•Since inception |
Senior Advisor (August 2018 to present),
Managing Director and Chief Operating
Officer (January 2015 to August 2018),
Pelita Harapan Educational Foundation
(Educational Products and Services) |
216 Portfolios |
None |
Name and
Year of Birth |
Position and
Offices with Trust |
Term of Office and
Length of Service |
Principal Occupations
During Past 5 Years |
OFFICERS OF THE TRUST | |||
James M. Dykas
1966 |
President and Chief
Executive Officer |
•Indefinite term
•Since January 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) |
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; and 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. |
Donald P. Swade
1972 |
Treasurer, Chief Financial
Officer and Chief
Accounting Officer |
•Indefinite term
•Since January 2016 |
Senior Vice President, 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. |
Name of Trustee |
Total Compensation from
the Fund (1) |
Total Compensation from
the First Trust Fund Complex (2) |
Richard E. Erickson |
$ 3,845 |
$ 472,625 |
Thomas R. Kadlec |
$ 3,845 |
$ 472,625 |
Denise M. Keefe (3)
|
– |
– |
Robert F. Keith |
$3,839 |
$462,625 |
Niel B. Nielson |
$3,852 |
$482,625 |
Trustee |
Dollar Range of
Equity Securities in the
Fund
(Number of Shares
Held) |
Aggregate Dollar
Range of
Equity Securities in All
Registered
Investment Companies
Overseen by Trustee in
the
First Trust Fund
Complex |
Interested Trustee | ||
James A. Bowen |
None |
Over $100,000 |
Independent Trustees | ||
Richard E. Erickson |
None |
Over $100,000 |
Thomas R. Kadlec |
None |
Over $100,000 |
Denise M. Keefe(1)
|
None |
None |
Robert F. Keith |
None |
Over $100,000 |
Niel B. Nielson |
None |
Over $100,000 |
Inception Date |
Amount of Unitary Fees
|
Amount of Fees Waived By First Trust
| ||||
Fiscal Year Ended
July 31, |
Fiscal Period Ended
July 31,
2019 |
Fiscal Year Ended
July 31, |
Fiscal Period Ended
July 31,
2019 | |||
2021 |
2020 |
2021 |
2020 | |||
11/1/2018 |
$365,643 |
$142,180 |
$66,601 |
$103,613 |
$31,596 |
$14,800 |
Name |
Position with
First Trust |
Length of Service
with First Trust |
Principal Occupation During Past
Five Years |
Tom Futrell |
Senior Vice
President and
Senior Portfolio
Manager |
Since 2013 |
Senior Vice President and Senior Portfolio Manager
(September 2013 to present), First Trust Advisors L.P. |
Johnathan N. Wilhelm |
Senior Vice
President and
Senior Portfolio
Manager |
Since 2013 |
Senior Portfolio Manager (September 2013 to present),
First Trust Advisors L.P. |
Portfolio Managers |
Registered
Investment Companies
Number of Accounts
($ Assets) |
Other Pooled
Investment Vehicles
Number of Accounts
($ Assets) |
Other Accounts
Number of Accounts
($ Assets) |
Tom Futrell |
5 ($2,882,635,944) |
N/A |
54 ($77,085,605) |
Johnathan N. Wilhelm |
5 ($2,882,635,944) |
N/A |
54 ($77,085,605) |
Aggregate Amount of Brokerage Commissions
| |||
Inception Date |
Fiscal Year Ended
July 31, |
Fiscal Period Ended
July 31,
2019 | |
2021 |
2020 | ||
11/1/2018 |
$0 |
$0 |
$0 |
Total
Non-Expiring
Capital Loss
Available |
$237,751 |
NAME OF BENEFICIAL OWNER |
% OF
OUTSTANDING
SHARES OWNED |
FIRST TRUST SHORT DURATION MANAGED MUNICIPAL ETF | |
National Financial Services LLC |
24.54% |
Pershing LLC |
20.82% |
TD Ameritrade Clearing, Inc. |
11.69% |
LPL Financial LLC |
10.56% |
Charles Schwab & Co., Inc. |
9.77% |
Raymond James & Associates, Inc. |
7.70% |
AAA |
An obligation rated “AAA” has the highest rating assigned by Standard & Poor’s. The obligor’s capacity to meet
its financial commitment on the obligation is extremely strong. |
AA |
An obligation rated “AA” differs from the highest rated obligations only in small degree. The obligor’s capacity
to meet its financial commitment on the obligation is very strong. |
A |
An obligation rated “A” is somewhat more susceptible to the adverse effects of changes in circumstances and
economic conditions than obligations in higher rated categories. However, the obligor’s capacity to meet its
financial commitment on the obligation is still strong. |
BBB |
An obligation rated “BBB” exhibits adequate protection parameters. However, adverse economic conditions
or changing circumstances are more likely to lead to a weakened capacity of the obligor to meet its financial
commitment on the obligation. |
BB |
An obligation rated “BB” is less vulnerable to nonpayment than other speculative issues. However, it faces
major ongoing uncertainties or exposure to adverse business, financial, or economic conditions which could
lead to the obligor’s inadequate capacity to meet its financial commitment on the obligation. |
B |
An obligation rated “B” is more vulnerable to nonpayment than obligations rated “BB,” but the obligor
currently has the capacity to meet its financial commitment on the obligation. Adverse business, financial, or
economic conditions will likely impair the obligor’s capacity or willingness to meet its financial commitment on
the obligation. |
CCC |
An obligation rated “CCC” is currently vulnerable to nonpayment, and is dependent upon favorable business,
financial, and economic conditions for the obligor to meet its financial commitment on the obligation. In the
event of adverse business, financial, or economic conditions, the obligor is not likely to have the capacity to
meet its financial commitment on the obligation. |
CC |
An obligation rated “CC” is currently highly vulnerable to nonpayment. The “CC” rating is used when a default
has not yet occurred but S&P expects default to be a virtual certainty regardless of the anticipated time to
default. |
C |
An obligation rated “C” is currently highly vulnerable to nonpayment and the obligation is expected to have
lower relative seniority or lower ultimate recovery compared to obligations that are rated higher. |
D |
An obligation rated “D” is in default or in breach of an imputed promise. For non-hybrid capital instruments,
the “D” rating category is used when payments on an obligation are not made on the date due unless S&P
believes that such payments will be made within five business days in the absence of a stated grace period or
within the earlier of the stated grace period or 30 calendar days. The “D” rating also will be used upon the
filing of a bankruptcy petition or the taking of similar action and where default on an obligation is a virtual
certainty, for example due to automatic stay provisions. An obligation’s rating is lowered to ‘D’ if it is subject to
a distressed exchange offer. |
Aaa |
Obligations rated Aaa are judged to be of the highest quality, subject to the lowest level of credit risk. |
Aa |
Obligations rated Aa are judged to be of high quality and are subject to very low credit risk. |
A |
Obligations rated A are judged to be upper-medium grade and are subject to low credit risk. |
Baa |
Obligations rated Baa are judged to be medium-grade and subject to moderate credit risk and as such may
possess certain speculative characteristics. |
Ba |
Obligations rated Ba are judged to be speculative and are subject to substantial credit risk. |
B |
Obligations rated B are considered speculative and are subject to high credit risk. |
Caa |
Obligations rated Caa are judged to be speculative of poor standing and are subject to very high credit risk. |
Ca |
Obligations rated Ca are highly speculative and are likely in, or very near, default, with some prospect of
recovery of principal and interest. |
C |
Obligations rated C are the lowest rated and are typically in default, with little prospect for recovery of
principal or interest. |
AAA |
Highest credit quality. ‘AAA’ ratings denote the lowest expectation of default risk. They are assigned only in
cases of exceptionally strong capacity for payment of financial commitments. This capacity is highly unlikely
to be adversely affected by foreseeable events. |
AA |
Very high credit quality. ‘AA’ ratings denote expectations of very low default risk. They indicate very strong
capacity for payment of financial commitments. This capacity is not significantly vulnerable to foreseeable
events. |
A |
High credit quality. ‘A’ ratings denote expectations of low default risk. The capacity for payment of financial
commitments is considered strong. This capacity may, nevertheless, be more vulnerable to adverse business
or economic conditions than is the case for higher ratings. |
BBB |
Good credit quality. ‘BBB’ ratings indicate that expectations of default risk are currently low. The capacity for
payment of financial commitments is considered adequate but adverse business or economic conditions are
more likely to impair this capacity. |
BB |
Speculative. ‘BB’ ratings indicate an elevated vulnerability to default risk, particularly in the event of adverse
changes in business or economic conditions over time; however, business or financial flexibility exists which
supports the servicing of financial commitments. |
B |
Highly speculative. ‘B’ ratings indicate that material default risk is present, but a limited margin of safety
remains. Financial commitments are currently being met; however, capacity for continued payment is
vulnerable to deterioration in the business and economic environment. |
CCC |
Substantial credit risk. Default is a real possibility. |
CC |
Very high levels of credit risk. Default of some kind appears probable. |
C |
Exceptionally high levels of credit risk. Default is imminent or inevitable, or the issuer is in standstill.
Conditions that are indicative of a ‘C’ category rating for an issuer include:
•the issuer has entered into a grace or cure period following non-payment of a material financial obligation;
•the issuer has entered into a temporary negotiated waiver or standstill agreement following a payment
default on a material financial obligation; or
•Fitch otherwise believes a condition of ‘RD’ or ‘D’ to be imminent or inevitable, including through the formal
announcement of a distressed debt exchange. |
RD |
Restricted default. ‘RD’ ratings indicate an issuer that in Fitch’s opinion has experienced an uncured payment
default on a bond, loan or other material financial obligation but which has not entered into bankruptcy
filings, administration, receivership, liquidation or other formal winding-up procedure, and which has not
otherwise ceased operating. This would include:
•the selective payment default on a specific class or currency of debt;
•the uncured expiry of any applicable grace period, cure period or default forbearance period following a
payment default on a bank loan, capital markets security or other material financial obligation;
•the extension of multiple waivers or forbearance periods upon a payment default on one or more material
financial obligations, either in series or in parallel; or
•execution of a distressed debt exchange on one or more material financial obligations. |
D |
Default. ‘D’ ratings indicate an issuer that in Fitch’s opinion has entered into bankruptcy filings,
administration, receivership, liquidation or other formal winding-up procedure, or which has otherwise ceased
business. |
FUND NAME |
TICKER SYMBOL |
EXCHANGE |
First Trust Ultra Short Duration Municipal ETF |
FUMB |
NYSE Arca |
1 | |
3 | |
3 | |
4 | |
13 | |
17 | |
25 | |
27 | |
28 | |
29 | |
30 | |
31 | |
34 | |
38 | |
39 | |
40 | |
40 | |
A-1 | |
B-1 | |
C-1 |
Portfolio Turnover Rate
| |
Fiscal Year Ended July 31, | |
2021 |
2020 |
44% |
149% |
Name and
Year of Birth |
Position
and Offices
with 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 the
Past 5 Years |
TRUSTEE WHO IS AN INTERESTED PERSON OF THE TRUST | |||||
James A. Bowen (1)
1955 |
Chairman of the
Board and Trustee |
•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) |
216 Portfolios |
None |
INDEPENDENT TRUSTEES | |||||
Richard E. Erickson
1951 |
Trustee |
•Indefinite term
•Since inception |
Physician; Officer, Wheaton Orthopedics;
Limited Partner, Gundersen Real Estate
Limited Partnership (June 1992 to
December 2016) |
216 Portfolios |
None |
Thomas R. Kadlec
1957 |
Trustee |
•Indefinite term
•Since inception |
President, ADM Investor Services, Inc.
(Futures Commission Merchant) |
216 Portfolios |
Director of ADM
Investor Services,
Inc., ADM Investor
Services
International,
Futures Industry
Association, and
National Futures
Association |
Name and
Year of Birth |
Position
and Offices
with 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 the
Past 5 Years |
INDEPENDENT TRUSTEES | |||||
Denise M. Keefe
1964 |
Trustee |
•Indefinite term
•Since 2021 |
Executive Vice President, Advocate
Aurora Health and President, Advocate
Aurora Continuing Health Division
(Integrated Healthcare System) |
216 Portfolios |
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
1956 |
Trustee |
•Indefinite term
•Since inception |
President, Hibs Enterprises (Financial and
Management Consulting) |
216 Portfolios |
Director of Trust
Company of
Illinois |
Niel B. Nielson
1954 |
Trustee |
•Indefinite term
•Since inception |
Senior Advisor (August 2018 to present),
Managing Director and Chief Operating
Officer (January 2015 to August 2018),
Pelita Harapan Educational Foundation
(Educational Products and Services) |
216 Portfolios |
None |
Name and
Year of Birth |
Position and
Offices with Trust |
Term of Office and
Length of Service |
Principal Occupations
During Past 5 Years |
OFFICERS OF THE TRUST | |||
James M. Dykas
1966 |
President and Chief
Executive Officer |
•Indefinite term
•Since January 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) |
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; and 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. |
Donald P. Swade
1972 |
Treasurer, Chief Financial
Officer and Chief
Accounting Officer |
•Indefinite term
•Since January 2016 |
Senior Vice President, 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. |
Name of Trustee |
Total Compensation from
the Fund (1) |
Total Compensation from
the First Trust Fund Complex (2) |
Richard E. Erickson |
$ 3,851 |
$ 472,625 |
Thomas R. Kadlec |
$ 3,851 |
$ 472,625 |
Denise M. Keefe (3)
|
– |
– |
Robert F. Keith |
$3,841 |
$462,625 |
Niel B. Nielson |
$3,860 |
$482,625 |
Trustee |
Dollar Range of
Equity Securities in the
Fund
(Number of Shares
Held) |
Aggregate Dollar
Range of
Equity Securities in All
Registered
Investment Companies
Overseen by Trustee in
the
First Trust Fund
Complex |
Interested Trustee | ||
James A. Bowen |
None |
Over $100,000 |
Independent Trustees | ||
Richard E. Erickson |
None |
Over $100,000 |
Thomas R. Kadlec |
None |
Over $100,000 |
Denise M. Keefe(1)
|
None |
None |
Robert F. Keith |
None |
Over $100,000 |
Niel B. Nielson |
None |
Over $100,000 |
Inception Date |
Amount of Unitary Fees
|
Amount of Fees Waived By First Trust
| ||||
Fiscal Year Ended
July 31, |
Fiscal Period Ended
July 31,
2019 |
Fiscal Year Ended
July 31, |
Fiscal Period Ended
July 31,
2019 | |||
2021 |
2020 |
2021 |
2020 | |||
11/1/2018 |
$303,859 |
$159,770 |
$52,367 |
$223,410 |
$45,649 |
$14,962 |
Name |
Position with
First Trust |
Length of Service
with First Trust |
Principal Occupation During Past
Five Years |
Tom Futrell |
Senior Vice
President and
Senior Portfolio
Manager |
Since 2013 |
Senior Vice President and Senior
Portfolio Manager (September 2013 to present),
First Trust Advisors L.P. |
Johnathan N. Wilhelm |
Senior Vice
President and
Senior Portfolio
Manager |
Since 2013 |
Senior Portfolio Manager (September 2013 to present),
First Trust Advisors L.P. |
Name |
Position with
First Trust |
Length of Service
with First Trust |
Principal Occupation During Past
Five Years |
Brendan Stewart |
Vice President
and Senior
Research Analyst |
Since 2014 |
Vice President (July 2017 to present) and Municipal
Analyst (March 2014 to present),
First Trust Advisors L.P. |
Portfolio Managers |
Registered
Investment Companies
Number of Accounts
($ Assets) |
Other Pooled
Investment Vehicles
Number of Accounts
($ Assets) |
Other Accounts
Number of Accounts
($ Assets) |
Tom Futrell |
5 ($2,847,092,770) |
N/A |
54 ($77,085,605) |
Johnathan N. Wilhelm |
5 ($2,847,092,770) |
N/A |
54 ($77,085,605) |
Brendan Stewart |
0 ($0) |
0 ($0) |
0 ($0) |
Aggregate Amount of Brokerage Commissions
| |||
Inception Date |
Fiscal Year Ended
July 31, |
Fiscal Period Ended
July 31,
2019 | |
2021 |
2020 | ||
11/1/2018 |
$0 |
$0 |
$0 |
Total
Non-Expiring
Capital Loss
Available |
$22,670 |
NAME OF BENEFICIAL OWNER |
% OF
OUTSTANDING
SHARES OWNED |
FIRST TRUST ULTRA SHORT DURATION MUNICIPAL ETF | |
National Financial Services LLC |
18.76% |
Pershing LLC |
14.50% |
Raymond James & Associates, Inc. |
10.63% |
Morgan Stanley Smith Barney LLC |
10.13% |
LPL Financial LLC |
9.29% |
TD Ameritrade Clearing, Inc. |
9.26% |
RBC Capital Markets, LLC |
8.60% |
Charles Schwab & Co., Inc. |
7.02% |
AAA |
An obligation rated “AAA” has the highest rating assigned by Standard & Poor’s. The obligor’s capacity to meet
its financial commitment on the obligation is extremely strong. |
AA |
An obligation rated “AA” differs from the highest rated obligations only in small degree. The obligor’s capacity
to meet its financial commitment on the obligation is very strong. |
A |
An obligation rated “A” is somewhat more susceptible to the adverse effects of changes in circumstances and
economic conditions than obligations in higher rated categories. However, the obligor’s capacity to meet its
financial commitment on the obligation is still strong. |
BBB |
An obligation rated “BBB” exhibits adequate protection parameters. However, adverse economic conditions
or changing circumstances are more likely to lead to a weakened capacity of the obligor to meet its financial
commitment on the obligation. |
BB |
An obligation rated “BB” is less vulnerable to nonpayment than other speculative issues. However, it faces
major ongoing uncertainties or exposure to adverse business, financial, or economic conditions which could
lead to the obligor’s inadequate capacity to meet its financial commitment on the obligation. |
B |
An obligation rated “B” is more vulnerable to nonpayment than obligations rated “BB,” but the obligor
currently has the capacity to meet its financial commitment on the obligation. Adverse business, financial, or
economic conditions will likely impair the obligor’s capacity or willingness to meet its financial commitment on
the obligation. |
CCC |
An obligation rated “CCC” is currently vulnerable to nonpayment, and is dependent upon favorable business,
financial, and economic conditions for the obligor to meet its financial commitment on the obligation. In the
event of adverse business, financial, or economic conditions, the obligor is not likely to have the capacity to
meet its financial commitment on the obligation. |
CC |
An obligation rated “CC” is currently highly vulnerable to nonpayment. The “CC” rating is used when a default
has not yet occurred but S&P expects default to be a virtual certainty regardless of the anticipated time to
default. |
C |
An obligation rated “C” is currently highly vulnerable to nonpayment and the obligation is expected to have
lower relative seniority or lower ultimate recovery compared to obligations that are rated higher. |
D |
An obligation rated “D” is in default or in breach of an imputed promise. For non-hybrid capital instruments,
the “D” rating category is used when payments on an obligation are not made on the date due unless S&P
believes that such payments will be made within five business days in the absence of a stated grace period or
within the earlier of the stated grace period or 30 calendar days. The “D” rating also will be used upon the
filing of a bankruptcy petition or the taking of similar action and where default on an obligation is a virtual
certainty, for example due to automatic stay provisions. An obligation’s rating is lowered to ‘D’ if it is subject to
a distressed exchange offer. |
Aaa |
Obligations rated Aaa are judged to be of the highest quality, subject to the lowest level of credit risk. |
Aa |
Obligations rated Aa are judged to be of high quality and are subject to very low credit risk. |
A |
Obligations rated A are judged to be upper-medium grade and are subject to low credit risk. |
Baa |
Obligations rated Baa are judged to be medium-grade and subject to moderate credit risk and as such may
possess certain speculative characteristics. |
Ba |
Obligations rated Ba are judged to be speculative and are subject to substantial credit risk. |
B |
Obligations rated B are considered speculative and are subject to high credit risk. |
Caa |
Obligations rated Caa are judged to be speculative of poor standing and are subject to very high credit risk. |
Ca |
Obligations rated Ca are highly speculative and are likely in, or very near, default, with some prospect of
recovery of principal and interest. |
C |
Obligations rated C are the lowest rated and are typically in default, with little prospect for recovery of
principal or interest. |
AAA |
Highest credit quality. ‘AAA’ ratings denote the lowest expectation of default risk. They are assigned only in
cases of exceptionally strong capacity for payment of financial commitments. This capacity is highly unlikely
to be adversely affected by foreseeable events. |
AA |
Very high credit quality. ‘AA’ ratings denote expectations of very low default risk. They indicate very strong
capacity for payment of financial commitments. This capacity is not significantly vulnerable to foreseeable
events. |
A |
High credit quality. ‘A’ ratings denote expectations of low default risk. The capacity for payment of financial
commitments is considered strong. This capacity may, nevertheless, be more vulnerable to adverse business
or economic conditions than is the case for higher ratings. |
BBB |
Good credit quality. ‘BBB’ ratings indicate that expectations of default risk are currently low. The capacity for
payment of financial commitments is considered adequate but adverse business or economic conditions are
more likely to impair this capacity. |
BB |
Speculative. ‘BB’ ratings indicate an elevated vulnerability to default risk, particularly in the event of adverse
changes in business or economic conditions over time; however, business or financial flexibility exists which
supports the servicing of financial commitments. |
B |
Highly speculative. ‘B’ ratings indicate that material default risk is present, but a limited margin of safety
remains. Financial commitments are currently being met; however, capacity for continued payment is
vulnerable to deterioration in the business and economic environment. |
CCC |
Substantial credit risk. Default is a real possibility. |
CC |
Very high levels of credit risk. Default of some kind appears probable. |
C |
Exceptionally high levels of credit risk. Default is imminent or inevitable, or the issuer is in standstill.
Conditions that are indicative of a ‘C’ category rating for an issuer include:
•the issuer has entered into a grace or cure period following non-payment of a material financial obligation;
•the issuer has entered into a temporary negotiated waiver or standstill agreement following a payment
default on a material financial obligation; or
•Fitch otherwise believes a condition of ‘RD’ or ‘D’ to be imminent or inevitable, including through the formal
announcement of a distressed debt exchange. |
RD |
Restricted default. ‘RD’ ratings indicate an issuer that in Fitch’s opinion has experienced an uncured payment
default on a bond, loan or other material financial obligation but which has not entered into bankruptcy
filings, administration, receivership, liquidation or other formal winding-up procedure, and which has not
otherwise ceased operating. This would include:
•the selective payment default on a specific class or currency of debt;
•the uncured expiry of any applicable grace period, cure period or default forbearance period following a
payment default on a bank loan, capital markets security or other material financial obligation;
•the extension of multiple waivers or forbearance periods upon a payment default on one or more material
financial obligations, either in series or in parallel; or
•execution of a distressed debt exchange on one or more material financial obligations. |
D |
Default. ‘D’ ratings indicate an issuer that in Fitch’s opinion has entered into bankruptcy filings,
administration, receivership, liquidation or other formal winding-up procedure, or which has otherwise ceased
business. |
First Trust Exchange-Traded Fund III
Part C – Other Information
Item 28. | Exhibits |
Exhibit No. Description
(a) | (1) Amended and Restated Declaration of Trust is incorporated by reference to the Post-Effective Amendment No. 71 filed on Form N-1A (File No. 333-176976) for Registrant on June 16, 2017. |
(b) | By-Laws of the Registrant is incorporated by reference to the Pre-Effective Amendment No. 2 filed on Form N-1A (File No. 333-176976) for Registrant on January 31, 2013. |
(c) | Not Applicable. |
(7) Interim Investment Sub-Advisory Agreement by and between First Trust Advisors L.P., First Trust Capital Management L.P. and Registrant, on behalf of First Trust Merger Arbitrage ETF, is filed herewith.
(14) Fee Waiver Agreement Extension Letter by and between First Trust Advisors L.P. and Registrant, on behalf of First Trust California Municipal High Income ETF, is filed herewith.
(15) Fee Waiver Agreement Extension Letter by and between First Trust Advisors L.P. and Registrant, on behalf of First Trust Municipal High Income ETF is filed herewith.
(16) Fee Waiver Agreement Extension Letter by and between First Trust Advisors L.P. and Registrant, on behalf of First Trust Short Duration Managed Municipal ETF, is filed herewith.
(17) Second Fee Waiver Agreement by and between First Trust Advisors L.P. and Registrant, on behalf of First Trust Short Duration Managed Municipal ETF, is filed herewith.
(18) Fee Waiver Agreement Extension Letter by and between First Trust Advisors L.P. and Registrant, on behalf of First Trust Ultra Short Duration Municipal ETF, is filed herewith.
(19) Second Fee Waiver Agreement by and between First Trust Advisors L.P. and Registrant, on behalf of First Trust Ultra Short Duration Municipal ETF, is filed herewith.
(e) | (1) Distribution Agreement is incorporated by reference to the Pre-Effective Amendment No. 2 filed on Form N-1A (File No. 333-176976) for Registrant on January 31, 2013. |
(f) | Not Applicable. |
(i) | Not Applicable. |
(j) | Consent of Independent Registered Public Accounting Firm is filed herewith. |
(k) | Not Applicable. |
(l) | Not Applicable. |
(m) | (1) 12b-1 Service Plan is incorporated by reference to the Pre-Effective Amendment No. 2 filed on Form N-1A (File No. 333-176976) for Registrant on January 31, 2013. |
(3) 12b-1 Plan Extension Letter Agreement is filed herewith.
(n) | Not Applicable. |
(o) | Not Applicable. |
(2) Power of Attorney of Ms. Keefe, dated November 1, 2021, is filed herewith.
__________________
Item 29. | Persons Controlled by or under Common Control with Registrant |
Not applicable.
Item 30. | Indemnification |
Section 5.3 of the Registrant’s Declaration of Trust provides as follows:
Section 5.3. Mandatory Indemnification. (a) Subject to the exceptions and limitations contained in paragraph (b) below:
(i) every person who is or has been a Trustee or officer of the Trust (hereinafter referred to as a “Covered Person”) shall be indemnified by the Trust against all liability and against all expenses reasonably incurred or paid by him or her in connection with any claim, action, suit or proceeding in which that individual becomes involved as a party or otherwise by virtue of being or having been a Trustee or officer and against amounts paid or incurred by that individual in the settlement thereof;
(ii) the words “claim,” “action,” “suit” or “proceeding” shall apply to all claims, actions, suits or proceedings (civil, criminal, administrative or other, including appeals), actual or threatened; and the words “liability” and “expenses” shall include, without limitation, attorneys’ fees, costs, judgments, amounts paid in settlement or compromise, fines, penalties and other liabilities.
(b) No indemnification shall be provided hereunder to a Covered Person:
(i) against any liability to the Trust or the Shareholders by reason of a final adjudication by the court or other body before which the proceeding was brought that the Covered Person engaged in willful misfeasance, bad faith, gross negligence or reckless disregard of the duties involved in the conduct of that individual’s office;
(ii) with respect to any matter as to which the Covered Person shall have been finally adjudicated not to have acted in good faith in the reasonable belief that that individual’s action was in the best interest of the Trust; or
(iii) in the event of a settlement involving a payment by a Trustee or officer or other disposition not involving a final adjudication as provided in paragraph (b)(i) or (b)(ii) above resulting in a payment by a Covered Person, unless there has been either a determination that such Covered Person did not engage in willful misfeasance, bad faith, gross negligence or reckless disregard of the duties involved in the conduct of that individual’s office by the court or other body approving the settlement or other disposition or by a reasonable determination, based upon a review of readily available facts (as opposed to a full trial-type inquiry) that that individual did not engage in such conduct:
(A) by vote of a majority of the Disinterested Trustees (as defined below) acting on the matter (provided that a majority of the Disinterested Trustees then in office act on the matter); or
(B) by written opinion of (i) the then-current legal counsel to the Trustees who are not Interested Persons of the Trust or (ii) other legal counsel chosen by a majority of the Disinterested Trustees (or if there are no Disinterested Trustees with respect to the matter in question, by a majority of the Trustees who are not Interested Persons of the Trust) and determined by them in their reasonable judgment to be independent.
(c) The rights of indemnification herein provided may be insured against by policies maintained by the Trust, shall be severable, shall not affect any other rights to which any Covered Person may now or hereafter be entitled, shall continue as to a person who has ceased to be a Covered Person and shall inure to the benefit of the heirs, executors and administrators of such person. Nothing contained herein shall limit the Trust from entering into other insurance arrangements or affect any rights to indemnification to which Trust personnel, including Covered Persons, may be entitled by contract or otherwise under law.
(d) Expenses of preparation and presentation of a defense to any claim, action, suit, or proceeding of the character described in paragraph (a) of this Section 5.3 shall be advanced by the Trust prior to final disposition thereof upon receipt of an undertaking by or on behalf of the Covered Person to repay such amount if it is ultimately determined that the Covered Person is not entitled to indemnification under this Section 5.3, provided that either:
(i) such undertaking is secured by a surety bond or some other appropriate security or the Trust shall be insured against losses arising out of any such advances; or
(ii) a majority of the Disinterested Trustees acting on the matter (provided that a majority of the Disinterested Trustees then in office act on the matter) or legal counsel meeting the requirement in Section 5.3(b)(iii)(B) above in a written opinion, shall determine, based upon a review of readily available facts (as opposed to a full trial-type inquiry), that there is reason to believe that the Covered Person ultimately will be found entitled to indemnification.
As used in this Section 5.3 a “Disinterested Trustee” is one (i) who is not an “Interested Person” of the Trust (including anyone who has been exempted from being an “Interested Person” by any rule, regulation or order of the Commission), and (ii) against whom none of such actions, suits or other proceedings or another action, suit or other proceeding on the same or similar grounds is then or had been pending.
(e) With respect to any such determination or opinion referred to in clause (b)(iii) above or clause (d)(ii) above, a rebuttable presumption shall be afforded that the Covered Person has not engaged in willful misfeasance, bad faith, gross negligence or reckless disregard of the duties involved in the conduct of such Covered Person’s office in accordance with pronouncements of the Commission.
Item 31. | Business and Other Connections of the Investment Adviser |
First Trust Advisors L.P. (“First Trust”), investment adviser to the Registrant, serves as adviser or sub-adviser to various other open-end and closed-end management investment companies and is the portfolio supervisor of certain unit investment trusts. The principal business of certain of First Trust’s principal executive officers involves various activities in connection with the family of unit investment trusts sponsored by First Trust Portfolios L.P. (“FTP”). The principal address for all these investment companies, First Trust, FTP and the persons below is 120 East Liberty Drive, Suite 400, Wheaton, Illinois 60187.
A description of any business, profession, vocation or employment of a substantial nature in which the officers of First Trust who serve as officers or trustees of the Registrant have engaged during the last two years for his or her account or in the capacity of director, officer, employee, partner or trustee appears under “Management of the Fund” in the Statement of Additional Information. Such information for the remaining senior officers of First Trust appears below:
Name and Position with First Trust | Employment During Past Two Years |
Andrew S. Roggensack, President | Managing Director and President, First Trust |
R. Scott Hall, Managing Director | Managing Director, First Trust |
David G. McGarel, Chief Investment Officer, Chief Operating Officer and Managing Director | Managing Director; Senior Vice President, First Trust |
Kelly C. Dehler, Chief Compliance Officer | Assistant General Counsel, First Trust |
Brian Wesbury, Chief Economist and Senior Vice President | Chief Economist and Senior Vice President, First Trust |
Item 32. | Principal Underwriter |
(a) FTP serves as principal underwriter of the shares of the Registrant, First Trust Exchange-Traded Fund, First Trust Exchange-Traded Fund II, First Trust Exchange-Traded Fund IV, First Trust Exchange-Traded Fund V, First Trust Exchange Traded Fund VI, First Trust Exchange-Traded Fund VII, First Trust Exchange-Traded Fund VIII, First Trust Exchange-Traded AlphaDEX® Fund, First Trust Exchange-Traded AlphaDEX® Fund II, First Trust Variable Insurance Trust and First Trust Series Fund. FTP serves as principal underwriter and depositor of the following investment companies registered as unit investment trusts: the First Trust Combined Series, FT Series (formerly known as the First Trust Special Situations Trust), the First Trust Insured Corporate Trust, the First Trust of Insured Municipal Bonds and the First Trust GNMA.
(b) Positions and Offices with Underwriter.
Name
and Principal Business Address* |
Positions
and Offices with Underwriter |
Positions
and Offices with Fund |
The Charger Corporation | General Partner | None |
Grace Partners of DuPage L.P. | Limited Partner | None |
James A. Bowen | Chief Executive Officer and Managing Director | Trustee and Chairman of the Board |
James M. Dykas | Chief Financial Officer | President and Chief Executive Officer |
Frank L. Fichera | Managing Director | None |
R. Scott Hall | Managing Director | None |
W. Scott Jardine | General Counsel, Secretary and Managing Director | Secretary |
Daniel J. Lindquist | Managing Director | Vice President |
David G. McGarel | Chief Investment Officer, Chief Operating Officer and Managing Director | None |
Richard A. Olson | Managing Director | None |
Marisa Bowen | Managing Director | None |
Andrew S. Roggensack | President and Managing Director | None |
Kristi A. Maher | Deputy General Counsel | Chief Compliance Officer and Assistant Secretary |
* All addresses are |
(c) Not Applicable.
Item 33. | Location of Accounts and Records |
First Trust, 120 East Liberty Drive, Suite 400, Wheaton, Illinois 60187, maintains the Registrant’s organizational documents, minutes of meetings, contracts of the Registrant and all advisory material of the investment adviser.
Brown Brothers Harriman & Co., 50 Post Office Square, Boston, Massachusetts 02110 (“BBH”) maintains all general and subsidiary ledgers, journals, trial balances, records of all portfolio purchases and sales, and all other requirement records not maintained by First Trust.
BBH also maintains all the required records in its capacity as transfer, accounting, dividend payment and interest holder service agent for the Registrant.
Item 34. | Management Services |
Not Applicable
Item 35. | Undertakings |
Not Applicable
Signatures
Pursuant to the requirements of the Securities Act of 1933 and the Investment Company Act of 1940, the Registrant certifies that it meets all of the requirements for effectiveness of this Registration Statement under Rule 485(b) under the Securities Act and has duly caused this Registration Statement to be signed on its behalf by the undersigned, duly authorized, in the City of Wheaton, and State of Illinois, on the 24th day of November, 2021.
First Trust Exchange-Traded Fund III | ||
By: | /s/ James M. Dykas | |
James M. Dykas, President and Chief Executive Officer |
Pursuant to the requirements of the Securities Act of 1933, this Registration Statement has been signed below by the following persons in the capacities and on the date indicated:
Signature | Title | Date | |
/s/ James M. Dykas | President and Chief Executive Officer |
November 24, 2021 | |
James M. Dykas | |||
/s/ Donald P. Swade | Treasurer, Chief Financial Officer and Chief Accounting Officer |
November 24, 2021 | |
Donald P. Swade | |||
James A. Bowen* | ) Trustee ) |
||
) | |||
Richard E. Erickson* | ) Trustee ) |
||
) | |||
Thomas R. Kadlec* | ) Trustee ) |
||
) | |||
Denise M. Keefe* | ) Trustee ) |
||
) | |||
Robert F. Keith* | ) Trustee ) |
||
) | By: | /s/ W. Scott Jardine | |
Niel B. Nielson * | ) Trustee ) |
W. Scott Jardine Attorney-In-Fact | |
) | November 24, 2021 |
* | Original powers of attorney dated December 31, 2015 or November 1, 2021, authorizing James A. Bowen, W. Scott Jardine, James M. Dykas, Eric F. Fess and Kristi A. Maher to execute Registrant's Registration Statement, and Amendments thereto, for each of the trustees of the Registrant on whose behalf this Registration Statement is filed, were previously executed, filed as an exhibit and are incorporated by reference herein, or is filed herewith. |
Index to Exhibits
(d)(7) | Interim Investment Sub-Advisory Agreement by and between First Trust Advisors L.P., First Trust Capital Management L.P. and Registrant, on behalf of First Trust Merger Arbitrage ETF. |
(d)(14) | Fee Waiver Agreement Extension Letter by and between First Trust Advisors L.P. and Registrant, on behalf of First Trust California Municipal High Income ETF. |
(d)(15) | Fee Waiver Agreement Extension Letter by and between First Trust Advisors L.P. and Registrant, on behalf of First Trust Municipal High Income ETF. |
(d)(16) | Fee Waiver Agreement Extension Letter by and between First Trust Advisors L.P. and Registrant, on behalf of First Trust Short Duration Managed Municipal ETF. |
(d)(17) | Second Fee Waiver Agreement by and between First Trust Advisors L.P. and Registrant, on behalf of First Trust Short Duration Managed Municipal ETF. |
(d)(18) | Fee Waiver Agreement Extension Letter by and between First Trust Advisors L.P. and Registrant, on behalf of First Trust Ultra Short Duration Municipal ETF. |
(d)(19) | Second Fee Waiver Agreement by and between First Trust Advisors L.P. and Registrant, on behalf of First Trust Ultra Short Duration Municipal ETF. |
(j) | Consent of Independent Registered Public Accounting Firm. |
(m)(3) | 12b-1 Plan Extension Letter Agreement. |
(q)(2) | Power of Attorney of Ms. Keefe, dated November 1, 2021. |