UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-22717
First Trust Exchange-Traded Fund VI
(Exact name of registrant as specified in charter)
120 East Liberty Drive, Suite 400
Wheaton, IL 60187
(Address of principal executive offices) (Zip code)
W. Scott Jardine, Esq.
First Trust Portfolios L.P.
120 East Liberty Drive, Suite 400
Wheaton, IL 60187
(Name and address of agent for service)
Registrant’s telephone number, including area code: (630) 765-8000
Date of fiscal year end: March 31
Date of reporting period: September 30, 2023
Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549p. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.
Item 1. Report to Stockholders.
(a) The registrant’s semi-annual report transmitted to shareholders pursuant to Rule 30e-1 under the Investment Company Act of 1940 is as follows:
Semi-Annual Report
For the Six Months Ended
September 30, 2023
September 30, 2023
First Trust Exchange-Traded Fund VI
|
First Trust Nasdaq Bank ETF (FTXO)
|
|
First Trust Nasdaq Food & Beverage ETF (FTXG)
|
|
First Trust Nasdaq Oil & Gas ETF (FTXN)
|
|
First Trust Nasdaq Pharmaceuticals ETF (FTXH)
|
|
First Trust S-Network E-Commerce ETF (ISHP)
|
|
First Trust Nasdaq Semiconductor ETF (FTXL)
|
|
First Trust Nasdaq Transportation ETF (FTXR)
|
|
First Trust S-Network Streaming & Gaming ETF (BNGE)
|
Table of Contents
First Trust Exchange-Traded Fund VI
Semi-Annual Report
September 30, 2023
Semi-Annual Report
September 30, 2023
|
2
|
|
|
3
|
|
|
4
|
|
|
6
|
|
|
8
|
|
|
10
|
|
|
12
|
|
|
14
|
|
|
16
|
|
|
18
|
|
|
20
|
|
|
21
|
|
|
23
|
|
|
24
|
|
|
25
|
|
|
26
|
|
|
27
|
|
|
29
|
|
|
30
|
|
|
31
|
|
|
34
|
|
|
36
|
|
|
38
|
|
|
42
|
|
|
50
|
|
|
60
|
Caution Regarding Forward-Looking Statements
This report contains certain forward-looking statements within the meaning of the Securities Act of 1933, as amended, and
the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements regarding the goals, beliefs, plans
or current expectations of First Trust Advisors L.P. (“First Trust” or the “Advisor”) and its representatives, taking into account the information currently available to them. Forward-looking statements include all statements that do not relate solely to current
or historical fact. For example, forward-looking statements include the use of words such as “anticipate,” “estimate,” “intend,” “expect,” “believe,” “plan,” “may,” “should,” “would” or other words that convey uncertainty of future events or outcomes.
Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results,
performance or achievements of any series of First Trust Exchange-Traded Fund VI (the “Trust”) described in this report (each such series is referred to as a “Fund” and collectively, as the “Funds”) to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. When evaluating the information included in this report,
you are cautioned not to place undue reliance on these forward-looking statements, which reflect the judgment of the Advisor and
its representatives only as of the date hereof. We undertake no obligation to publicly revise or update these forward-looking
statements to reflect events and circumstances that arise after the date hereof.
Performance and Risk Disclosure
There is no assurance that any Fund described in this report will achieve its investment objective. Each Fund is subject to
market risk, which is the possibility that the market values of securities owned by the Fund will decline and that the value of the Fund’s shares may therefore be less than what you paid for them. Accordingly, you can lose money by investing in a Fund. See “Risk Considerations” in the Additional Information section of this report for a discussion of certain other risks of investing in the Funds.
Performance data quoted represents past performance, which is no guarantee of future results, and current performance may
be lower or higher than the figures shown. For the most recent month-end performance figures, please visit www.ftportfolios.com or speak with your financial advisor. Investment returns, net asset value and share price will fluctuate and Fund shares, when sold, may
be worth more or less than their original cost.
The Advisor may also periodically provide additional information on Fund performance on each Fund’s webpage at www.ftportfolios.com.
How to Read This Report
This report contains information that may help you evaluate your investment. It includes details about each Fund and presents
data and analysis that provide insight into each Fund’s performance and investment approach.
By reading the market overview by Robert F. Carey, Chief Market Strategist of the Advisor, you may obtain an understanding
of how the market environment affected the performance of each Fund. The statistical information that follows may help you understand
each Fund’s performance compared to that of relevant market benchmarks.
It is important to keep in mind that the opinions expressed by personnel of the Advisor are just that:informed opinions. They should not be considered to be promises or advice. The opinions, like the statistics, cover the period through the date on the cover
of this report. The material risks of investing in each Fund are spelled out in its prospectus, statement of additional information,
and other Fund regulatory filings.
Page 1
Shareholder Letter
First Trust Exchange-Traded Fund VI
Semi-Annual Letter from the Chairman and CEO
September 30, 2023
Semi-Annual Letter from the Chairman and CEO
September 30, 2023
Dear Shareholders,
First Trust is pleased to provide you with the semi-annual report for certain series of the First Trust Exchange-Traded Fund
VI (the “Funds”), which contains detailed information about the Funds for the six months ended September 30, 2023.
A famous financial industry quote came to mind as I was sizing up the current business climate:“Wall Street has a few prudent principles; the trouble is that they are always forgotten when they are most needed.” The past year has been a time when those who stuck with their principles were rewarded, in my opinion. The financial markets continue to battle a myriad of headwinds,
from geopolitical uncertainty resulting from war (Israel and Hamas and the conflict between Russia and Ukraine), to slowing global
economic growth and inflation. Inflation, for one, has remained persistently high. A common measure of inflation is the 12-month
rate of change in the Consumer Price Index (“CPI”). The CPI stood at 3.7% on September 30, 2023, significantly lower than its most recent high of 9.1% set on June 30, 2022, but up from its most recent low of 3.0% on June 30, 2023. Considering this, as well
as other better-than-expected economic data, the Federal Reserve recently noted that the Federal Funds target rate will need to remain
elevated for a longer period than previously expected.
As many investors are likely aware, a higher Federal Funds target rate has deep implications for consumers. Perhaps the most
obvious area impacted by higher rates is housing. The national average for a 30-year mortgage stood at 7.99% as of October 18, 2023,
up from 3.22% on October 20, 2021. Higher mortgage rates, coupled with high home prices, are stretching U.S. home affordability. The
monthly payment on a median-priced home ($407,100 in August 2023) with a 20% down payment, and a mortgage rate of 7.99%, comes in at $2,387. It is not just mortgage rates that are pressuring the budgets of U.S. households. Debt payments on car
loans and credit cards are showing signs of weakness as well. Data from the Federal Reserve Bank of New York revealed that the rate
of new credit card and new auto loan delinquencies stood at 7.2% and 7.3%, respectively, in the second quarter of 2023 (most recent
data), surpassing pre-pandemic levels.
While headwinds to the global economy exist, not all the news is bad. Driven by technological developments in artificial intelligence,
the U.S. equity markets have had a phenomenal year. Year-to-date through September 30, 2023, the S&P 500® Index has enjoyed a total return of 13.07%. Additionally, the U.S. exported a record 20.4 billion cubic feet per day (“Bcf/d”) of natural gas and 11.6 Bcf/d of liquefied natural gas (“LNG”) over the first six months of the year, making the U.S. the world’s largest exporter of LNG during the period. It can be tempting to deviate from fundamentals when times get tough, but we continue to encourage investors to hold
fast to their principles; they will serve you for years to come.
Thank you for giving First Trust the opportunity to play a role in your financial future. We value our relationship with you
and will report on the Funds again in six months.
Sincerely,
James A. Bowen
Chairman of the Board of Trustees
Chief Executive Officer of First Trust Advisors L.P.
Chairman of the Board of Trustees
Chief Executive Officer of First Trust Advisors L.P.
Page 2
Market Overview
First Trust Exchange-Traded Fund VI
Semi-Annual Report
September 30, 2023
Semi-Annual Report
September 30, 2023
Robert F. Carey, CFA
Senior Vice President and Chief Market Strategist
First Trust Advisors L.P.
Senior Vice President and Chief Market Strategist
First Trust Advisors L.P.
Mr. Carey is responsible for the overall management of research and analysis of the First Trust product line. Mr. Carey has more than 30 years of experience as an Equity and Fixed-Income Analyst and is a recipient of the Chartered Financial Analyst (“CFA”) designation. He is a graduate of the University of Illinois at Champaign-Urbana with a B.S. in Physics. He is also a member of the Investment Analysts Society of Chicago and the CFA Institute. Mr. Carey has appeared as a guest on such programs as Bloomberg TV, CNBC, and WBBM Radio, and has been quoted by several publications, including The Wall Street Journal, The Wall Street Reporter, Bloomberg News Service and Registered Rep.
State of the Global Economy
The latest global growth forecast from the International Monetary Fund (“IMF”) released in October 2023 sees real gross domestic product growth rising by 3.0% worldwide in 2023, up from its 2.9% projection in January 2023. The IMF is currently forecasting
a 2.1% growth rate for the U.S., up from its January 2023 estimate of 1.4%. Emerging Market and Developing Economies are expected
to grow by 4.0% this year, unchanged from the IMF’s 4.0% estimate in January 2023. The IMF notes that risks to their global outlook remain tilted to the downside, citing the real estate crisis in China, the potential for increased volatility among commodity
prices, and uncomfortably high inflation, among other reasons, for their outlook.
In the U.S., inflation, as measured by the Consumer Price Index (“CPI”), stood at 3.7% on a trailing 12-month basis at the end of September 2023, according to the U.S. Bureau of Labor Statistics. While this is significantly lower than the most recent high
of 9.1% in June 2022, the September CPI reading reflects a re-acceleration in the metric when compared to its most recent low of 3.0%
set on June 30, 2023.
Performance of Global Stocks and Bonds
The major U.S. stock indices delivered mixed results over the past six months. The S&P 500® (the “Index”), S&P MidCap 400® and S&P SmallCap 600® Indices posted total returns of 5.18%, 0.45% and -1.71%, respectively, for the six-month period ended September 30, 2023. Seven of the 11 major sectors that comprise the Index were positive on a total return basis. The top performer
was the Communication Services sector, up 16.54%, while the worst showing came from the Utilities sector, down 11.54%.
A Bloomberg survey of twenty-two equity strategists found that their average 2023 year-end price target for the Index was
4,370 as of October 18, 2023, according to its own release. The highest and lowest estimates were 4,900 and 3,700, respectively. The Index
closed trading on September 29, 2023, at 4,288.05. Bloomberg’s consensus year-over-year earnings growth rate estimates for the Index for the 2023 and 2024 calendar years stood at -2.83% and 11.89%, respectively, as of October 13, 2023.
The broader foreign stock indices experienced negative total returns over the past six months. For the six months ended September
30, 2023, the MSCI World ex USA and MSCI Emerging Markets equity indices posted total returns of -1.20% (USD) and -2.05% (USD),
respectively, according to Bloomberg. The major foreign bond indices were also down over the same period. The Bloomberg Global
Aggregate Index of higher quality debt posted a total return of -5.06% (USD), while the Bloomberg EM Hard Currency Aggregate
Index of emerging markets debt fell by 1.18% (USD), according to Bloomberg. The U.S. dollar rose 3.58% over the past six months
against a basket of major currencies, as measured by the U.S. Dollar Index (DXY). The increase in the dollar proved to be
a headwind to the performance of both foreign stock and bond indices, in our opinion.
Results were mixed in the U.S. bond market over the period. The top performing major debt group we track was intermediate
U.S. high yield bonds. The Bloomberg Intermediate U.S. High Yield Index posted a total return of 2.29% for the six-month period
ended September 30, 2023. The worst performing U.S. debt group that we track was municipal bonds. The Bloomberg Long Municipal Bond
(22+) Index posted a total return of -6.03%. The yield on the benchmark 10-Year Treasury Note (“T-Note”) rose by 110 basis points in the period to close at 4.57% on September 29, 2023, according to Bloomberg. For comparative purposes, the average yield
on the 10-Year T-Note was 2.27% for the 10-year period ended September 30, 2023.
Page 3
Fund Performance Overview (Unaudited)
First Trust Nasdaq Bank ETF (FTXO)
The First Trust Nasdaq Bank ETF (the “Fund”) seeks investment results that correspond generally to the price and yield (before the Fund’s fees and expenses) of an equity index called the Nasdaq US Smart BanksTM Index (the “Index”). The shares of the Fund are listed and trade on Nasdaq, Inc. under the ticker symbol “FTXO.” The Fund will normally invest at least 90% of its net assets (including investment borrowings) in the securities that comprise the Index. The Index is owned and is developed, maintained
and sponsored by Nasdaq, Inc. (the “Index Provider”).
The Index is designed to provide exposure to U.S. companies comprising the banking sector that have been selected based upon
their liquidity and weighted based upon their cumulative score on four investing factors:net income, return on assets, momentum and book value. The Index’s initial selection universe consists of the component securities of the Nasdaq US BenchmarkTM Index that have been classified as comprising the banking sector according to the Industry Classification Benchmark. The Nasdaq US BenchmarkTM Index is an index seeking to track the performance of small, mid and large capitalization U.S. companies. This classification includes
companies providing a broad range of financial services, including retail banking, loans and money transmissions.
|
Performance
|
||||||
|
|
|
|
Average Annual Total
Returns
|
Cumulative Total Returns
|
||
|
|
6 Months
Ended
9/30/23
|
1 Year
Ended
9/30/23
|
5 Years
Ended
9/30/23
|
Inception
(9/20/16)
to 9/30/23
|
5 Years
Ended
9/30/23
|
Inception
(9/20/16)
to 9/30/23
|
|
Fund Performance
|
|
|
|
|
|
|
|
NAV
|
-0.78%
|
-17.29%
|
-2.85%
|
3.06%
|
-13.47%
|
23.60%
|
|
Market Price
|
-0.64%
|
-17.28%
|
-2.84%
|
3.07%
|
-13.42%
|
23.66%
|
|
Index Performance
|
|
|
|
|
|
|
|
Nasdaq US Smart BanksTM Index
|
-0.46%
|
-16.80%
|
-2.23%
|
3.73%
|
-10.68%
|
29.38%
|
|
Nasdaq US Benchmark BanksTM Index
|
2.12%
|
-1.93%
|
0.27%
|
6.54%
|
1.33%
|
56.10%
|
|
Nasdaq US BenchmarkTM Index
|
5.03%
|
20.54%
|
9.18%
|
11.88%
|
55.13%
|
120.14%
|
(See Notes to Fund Performance Overview on page 20.)
Nasdaq® and Nasdaq US Smart BanksTM Index are registered trademarks and service marks of Nasdaq, Inc. (together with its affiliates hereinafter referred to as the “Corporations”) and are licensed for use by First Trust. The Fund has not been passed on by the Corporations as to its legality or suitability. The Fund is not issued, endorsed, sold or promoted by the Corporations. THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE FUND.
Page 4
Fund Performance Overview (Unaudited) (Continued)
First Trust Nasdaq Bank ETF (FTXO) (Continued)
|
Sector Allocation
|
% of Total
Long-Term
Investments
|
|
Financials
|
100.0%
|
|
Total
|
100.0%
|
|
Top Ten Holdings
|
% of Total
Long-Term
Investments
|
|
Citigroup, Inc.
|
8.3%
|
|
JPMorgan Chase & Co.
|
8.3
|
|
Wells Fargo & Co.
|
8.2
|
|
Bank of America Corp.
|
8.0
|
|
U.S. Bancorp
|
7.5
|
|
PNC Financial Services Group (The), Inc.
|
4.2
|
|
M&T Bank Corp.
|
4.2
|
|
Discover Financial Services
|
4.0
|
|
Fifth Third Bancorp
|
4.0
|
|
Regions Financial Corp.
|
3.9
|
|
Total
|
60.6%
|
 |
Performance figures assume reinvestment of
all distributions and do not reflect the
deduction of taxes that a shareholder would
pay on Fund distributions or the redemption
or sale of Fund shares. An index is a statistical
composite that tracks a specified financial
market or sector. Unlike the Fund, the indices
do not actually hold a portfolio of securities
and therefore do not incur the expenses
incurred by the Fund. These expenses
negatively impact the performance of the
Fund. The Fund’s past performance does not
predict future performance.
|
Frequency Distribution of Discounts and Premiums
Information showing the number of days the market price of the Fund’s shares was greater (at a premium) and less (at a discount) than the Fund’s net asset value for the most recently completed year, and the most recently completed calendar quarters since that year (or life of the Fund, if shorter) is available at https://www.ftportfolios.com/Retail/etf/home.aspx.
Page 5
Fund Performance Overview (Unaudited) (Continued)
First Trust Nasdaq Food & Beverage ETF (FTXG)
The First Trust Nasdaq Food & Beverage ETF (the “Fund”) seeks investment results that correspond generally to the price and yield (before the Fund’s fees and expenses) of an equity index called the Nasdaq US Smart Food & BeverageTM Index (the “Index”). The shares of the Fund are listed and trade on Nasdaq, Inc. under the ticker symbol “FTXG.” The Fund will normally invest at least 90% of its net assets (including investment borrowings) in the securities that comprise the Index. The Index is owned and is developed,
maintained and sponsored by Nasdaq, Inc. (the “Index Provider”).
The Index is designed to provide exposure to U.S. companies comprising the food and beverage sector that have been selected
based upon their liquidity and weighted based upon their cumulative score on four investing factors:gross income, return on assets, momentum and cash flow. The Index’s initial selection universe consists of the component securities of the Nasdaq US BenchmarkTM Index that have been classified as comprising either the beverages sector or food producers sector according to the Industry
Classification Benchmark (“ICB”). The Nasdaq US BenchmarkTM Index is an index seeking to track the performance of small, mid and large capitalization U.S. companies. These classifications include: (i) manufacturers and shippers of cider or malt products;
(ii) producers, distillers, vintners, blenders and shippers of wine and spirits; (iii) manufacturers, bottlers and distributors
of non-alcoholic beverages; (iv) companies that grow crops or raise livestock, operate fisheries or own non-tobacco plantations; (v) food
producers, including meatpacking, snacks, fruits, vegetables, dairy products and frozen seafood; (vi) producers of pet food;
and (vii) manufacturers of dietary supplements, vitamins and related items.
|
Performance
|
||||||
|
|
|
|
Average Annual Total
Returns
|
Cumulative Total Returns
|
||
|
|
6 Months
Ended
9/30/23
|
1 Year
Ended
9/30/23
|
5 Years
Ended
9/30/23
|
Inception
(9/20/16)
to 9/30/23
|
5 Years
Ended
9/30/23
|
Inception
(9/20/16)
to 9/30/23
|
|
Fund Performance
|
|
|
|
|
|
|
|
NAV
|
-9.33%
|
-0.62%
|
6.04%
|
4.29%
|
34.11%
|
34.33%
|
|
Market Price
|
-9.23%
|
-0.66%
|
6.14%
|
4.29%
|
34.71%
|
34.37%
|
|
Index Performance
|
|
|
|
|
|
|
|
Nasdaq US Smart Food & BeverageTM
Index
|
-9.15%
|
-0.11%
|
6.70%
|
4.94%
|
38.32%
|
40.30%
|
|
Nasdaq US Benchmark Food, Beverage
and TobaccoTM Index
|
-5.99%
|
6.30%
|
8.32%
|
6.96%
|
49.11%
|
60.50%
|
|
Nasdaq US BenchmarkTM Index
|
5.03%
|
20.54%
|
9.18%
|
11.88%
|
55.13%
|
120.14%
|
(See Notes to Fund Performance Overview on page 20.)
Nasdaq® and Nasdaq US Smart Food & BeverageTM Index are registered trademarks and service marks of Nasdaq, Inc. (together with its affiliates hereinafter referred to as the “Corporations”) and are licensed for use by First Trust. The Fund has not been passed on by the Corporations as to its legality or suitability. The Fund is not issued, endorsed, sold or promoted by the Corporations. THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE FUND.
Page 6
Fund Performance Overview (Unaudited) (Continued)
First Trust Nasdaq Food & Beverage ETF (FTXG) (Continued)
|
Sector Allocation
|
% of Total
Long-Term
Investments
|
|
Consumer Staples
|
100.0%
|
|
Total
|
100.0%
|
|
Top Ten Holdings
|
% of Total
Long-Term
Investments
|
|
Kraft Heinz (The) Co.
|
8.4%
|
|
Mondelez International, Inc., Class A
|
8.1
|
|
PepsiCo, Inc.
|
7.9
|
|
Archer-Daniels-Midland Co.
|
7.9
|
|
Coca-Cola (The) Co.
|
7.8
|
|
Molson Coors Beverage Co., Class B
|
4.2
|
|
US Foods Holding Corp.
|
4.1
|
|
Kellogg Co.
|
4.0
|
|
Constellation Brands, Inc., Class A
|
4.0
|
|
General Mills, Inc.
|
3.9
|
|
Total
|
60.3%
|
 |
Performance figures assume reinvestment of
all distributions and do not reflect the
deduction of taxes that a shareholder would
pay on Fund distributions or the redemption
or sale of Fund shares. An index is a statistical
composite that tracks a specified financial
market or sector. Unlike the Fund, the indices
do not actually hold a portfolio of securities
and therefore do not incur the expenses
incurred by the Fund. These expenses
negatively impact the performance of the
Fund. The Fund’s past performance does not
predict future performance.
|
Frequency Distribution of Discounts and Premiums
Information showing the number of days the market price of the Fund’s shares was greater (at a premium) and less (at a discount) than the Fund’s net asset value for the most recently completed year, and the most recently completed calendar quarters since that year (or life of the Fund, if shorter) is available at https://www.ftportfolios.com/Retail/etf/home.aspx.
Page 7
Fund Performance Overview (Unaudited) (Continued)
First Trust Nasdaq Oil & Gas ETF (FTXN)
The First Trust Nasdaq Oil & Gas ETF (the “Fund”) seeks investment results that correspond generally to the price and yield (before the Fund’s fees and expenses) of an equity index called the Nasdaq US Smart Oil & GasTM Index (the “Index”). The shares of the Fund are listed and trade on Nasdaq, Inc. under the ticker symbol “FTXN.” The Fund will normally invest at least 90% of its net assets (including investment borrowings) in the securities that comprise the Index. The Index is owned and is developed, maintained
and sponsored by Nasdaq, Inc. (the “Index Provider”).
The Index is designed to provide exposure to U.S. companies comprising the oil and gas sector that have been selected based
upon their liquidity and weighted based upon their cumulative score on four investing factors:gross income, return on assets, momentum and cash flow. The Index’s initial selection universe consists of the component securities of the Nasdaq US BenchmarkTM Index that have been classified as comprising either the oil & gas producers sector or the oil equipment, services & distribution sector
according to the Industry Classification Benchmark (“ICB”). The Nasdaq US BenchmarkTM Index is an index seeking to track the performance of small, mid and large capitalization U.S. companies. These classifications include: (i) companies engaged in the exploration
for and drilling, production, refining and supply of oil and gas products; (ii) integrated oil and gas companies engaged in the exploration
for, and drilling, production, refining, distribution and retail sales of, oil and gas products; (iii) suppliers of equipment and
services to oil fields and offshore platforms, such as drilling, exploration, seismic-information services and platform construction; and
(iv) operators of pipelines carrying oil, gas or other forms of fuel.
|
Performance
|
||||||
|
|
|
|
Average Annual Total
Returns
|
Cumulative Total Returns
|
||
|
|
6 Months
Ended
9/30/23
|
1 Year
Ended
9/30/23
|
5 Years
Ended
9/30/23
|
Inception
(9/20/16)
to 9/30/23
|
5 Years
Ended
9/30/23
|
Inception
(9/20/16)
to 9/30/23
|
|
Fund Performance
|
|
|
|
|
|
|
|
NAV
|
13.51%
|
26.55%
|
6.17%
|
8.32%
|
34.90%
|
75.33%
|
|
Market Price
|
13.63%
|
26.64%
|
6.17%
|
8.33%
|
34.89%
|
75.45%
|
|
Index Performance
|
|
|
|
|
|
|
|
Nasdaq US Smart Oil & GasTM Index
|
13.96%
|
27.48%
|
6.84%
|
9.02%
|
39.22%
|
83.44%
|
|
Nasdaq US Benchmark EnergyTM Index
|
10.47%
|
25.53%
|
8.03%
|
8.60%
|
47.12%
|
78.54%
|
|
Nasdaq US BenchmarkTM Index
|
5.03%
|
20.54%
|
9.18%
|
11.88%
|
55.13%
|
120.14%
|
(See Notes to Fund Performance Overview on page 20.)
Nasdaq® and Nasdaq US Smart Oil & GasTM Index are registered trademarks and service marks of Nasdaq, Inc. (together with its affiliates hereinafter referred to as the “Corporations”) and are licensed for use by First Trust. The Fund has not been passed on by the Corporations as to its legality or suitability. The Fund is not issued, endorsed, sold or promoted by the Corporations. THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE FUND.
Page 8
Fund Performance Overview (Unaudited) (Continued)
First Trust Nasdaq Oil & Gas ETF (FTXN) (Continued)
|
Sector Allocation
|
% of Total
Long-Term
Investments
|
|
Energy
|
100.0%
|
|
Total
|
100.0%
|
|
Top Ten Holdings
|
% of Total
Long-Term
Investments
|
|
Exxon Mobil Corp.
|
8.2%
|
|
Chevron Corp.
|
8.2
|
|
ConocoPhillips
|
7.8
|
|
Marathon Petroleum Corp.
|
6.8
|
|
Occidental Petroleum Corp.
|
6.3
|
|
Valero Energy Corp.
|
4.3
|
|
Phillips 66
|
4.1
|
|
Cheniere Energy, Inc.
|
4.0
|
|
EOG Resources, Inc.
|
3.8
|
|
Pioneer Natural Resources Co.
|
3.8
|
|
Total
|
57.3%
|
 |
Performance figures assume reinvestment of
all distributions and do not reflect the
deduction of taxes that a shareholder would
pay on Fund distributions or the redemption
or sale of Fund shares. An index is a statistical
composite that tracks a specified financial
market or sector. Unlike the Fund, the indices
do not actually hold a portfolio of securities
and therefore do not incur the expenses
incurred by the Fund. These expenses
negatively impact the performance of the
Fund. The Fund’s past performance does not
predict future performance.
|
Frequency Distribution of Discounts and Premiums
Information showing the number of days the market price of the Fund’s shares was greater (at a premium) and less (at a discount) than the Fund’s net asset value for the most recently completed year, and the most recently completed calendar quarters since that year (or life of the Fund, if shorter) is available at https://www.ftportfolios.com/Retail/etf/home.aspx.
Page 9
Fund Performance Overview (Unaudited) (Continued)
First Trust Nasdaq Pharmaceuticals ETF (FTXH)
The First Trust Nasdaq Pharmaceuticals ETF (the “Fund”) seeks investment results that correspond generally to the price and yield (before the Fund’s fees and expenses) of an equity index called the Nasdaq US Smart PharmaceuticalsTM Index (the “Index”). The shares of the Fund are listed and trade on Nasdaq, Inc. under the ticker symbol “FTXH.” The Fund will normally invest at least 90% of its net assets (including investment borrowings) in the securities that comprise the Index. The Index is owned and is developed,
maintained and sponsored by Nasdaq, Inc. (the “Index Provider”).
The Index is designed to provide exposure to U.S. companies comprising the pharmaceutical sector that have been selected based
upon their liquidity and weighted based upon their cumulative score on four investing factors:gross income, return on assets, momentum and cash flow. The Index’s initial selection universe consists of the component securities of the Nasdaq US BenchmarkTM Index that have been classified as comprising the pharmaceuticals and biotechnology sub-sectors according to the Industry
Classification Benchmark. The Nasdaq US BenchmarkTM Index is an index seeking to track the performance of small, mid and large capitalization U.S. companies. This classification includes vaccine producers and manufacturers of prescription or over-the-counter
drugs.
|
Performance
|
||||||
|
|
|
|
Average Annual Total
Returns
|
Cumulative Total Returns
|
||
|
|
6 Months
Ended
9/30/23
|
1 Year
Ended
9/30/23
|
5 Years
Ended
9/30/23
|
Inception
(9/20/16)
to 9/30/23
|
5 Years
Ended
9/30/23
|
Inception
(9/20/16)
to 9/30/23
|
|
Fund Performance
|
|
|
|
|
|
|
|
NAV
|
-1.35%
|
8.14%
|
2.80%
|
4.70%
|
14.81%
|
38.13%
|
|
Market Price
|
-1.27%
|
8.09%
|
2.80%
|
4.71%
|
14.81%
|
38.18%
|
|
Index Performance
|
|
|
|
|
|
|
|
Nasdaq US Smart PharmaceuticalsTM
Index
|
-1.05%
|
8.82%
|
3.46%
|
5.39%
|
18.55%
|
44.63%
|
|
Nasdaq US Benchmark
PharmaceuticalsTM Index
|
5.34%
|
14.21%
|
10.65%
|
11.61%
|
65.84%
|
116.38%
|
|
Nasdaq US BenchmarkTM Index
|
5.03%
|
20.54%
|
9.18%
|
11.88%
|
55.13%
|
120.14%
|
(See Notes to Fund Performance Overview on page 20.)
Nasdaq® and Nasdaq US Smart PharmaceuticalsTM Index are registered trademarks and service marks of Nasdaq, Inc. (together with its affiliates hereinafter referred to as the “Corporations”) and are licensed for use by First Trust. The Fund has not been passed on by the Corporations as to its legality or suitability. The Fund is not issued, endorsed, sold or promoted by the Corporations. THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE FUND.
Page 10
Fund Performance Overview (Unaudited) (Continued)
First Trust Nasdaq Pharmaceuticals ETF (FTXH) (Continued)
|
Sector Allocation
|
% of Total
Long-Term
Investments
|
|
Health Care
|
100.0%
|
|
Total
|
100.0%
|
|
Top Ten Holdings
|
% of Total
Long-Term
Investments
|
|
AbbVie, Inc.
|
7.6%
|
|
Johnson & Johnson
|
7.2
|
|
Merck & Co., Inc.
|
7.1
|
|
Bristol-Myers Squibb Co.
|
7.1
|
|
Pfizer, Inc.
|
7.1
|
|
Amgen, Inc.
|
3.9
|
|
Vertex Pharmaceuticals, Inc.
|
3.8
|
|
Regeneron Pharmaceuticals, Inc.
|
3.7
|
|
Cardinal Health, Inc.
|
3.7
|
|
Gilead Sciences, Inc.
|
3.7
|
|
Total
|
54.9%
|
 |
Performance figures assume reinvestment of
all distributions and do not reflect the
deduction of taxes that a shareholder would
pay on Fund distributions or the redemption
or sale of Fund shares. An index is a statistical
composite that tracks a specified financial
market or sector. Unlike the Fund, the indices
do not actually hold a portfolio of securities
and therefore do not incur the expenses
incurred by the Fund. These expenses
negatively impact the performance of the
Fund. The Fund’s past performance does not
predict future performance.
|
Frequency Distribution of Discounts and Premiums
Information showing the number of days the market price of the Fund’s shares was greater (at a premium) and less (at a discount) than the Fund’s net asset value for the most recently completed year, and the most recently completed calendar quarters since that year (or life of the Fund, if shorter) is available at https://www.ftportfolios.com/Retail/etf/home.aspx.
Page 11
Fund Performance Overview (Unaudited) (Continued)
First Trust S-Network E-Commerce ETF (ISHP)
The First Trust S-Network E-Commerce ETF (the “Fund”) seeks investment results that correspond generally to the price and yield (before the Fund’s fees and expenses) of an equity index called the S-Network Global E-Commerce IndexTM (the “Index”). The Fund lists and principally trades its shares on Nasdaq, Inc. under the symbol “ISHP.” The Fund will normally invest at least 90% of its net assets (plus any borrowings for investment purposes) in the securities that comprise the Index. The Index is owned and is
developed, maintained and sponsored by VettaFi LLC (the “Index Provider”).
The Index seeks to provide exposure to companies with securities listed on major global recognized exchanges that are engaged
in the global e-commerce industry. According to the Index Provider, to be eligible for inclusion in the Index, a security must be
issued by a company engaged in at least one of the four following business segments comprising the global e-commerce industry: (1) content
navigation; (2) online retail; (3) online marketplace; and (4) e-commerce infrastructure.
|
Performance
|
||||||
|
|
|
|
Average Annual Total
Returns
|
Cumulative Total Returns
|
||
|
|
6 Months
Ended
9/30/23
|
1 Year
Ended
9/30/23
|
5 Years
Ended
9/30/23
|
Inception
(9/20/16)
to 9/30/23
|
5 Years
Ended
9/30/23
|
Inception
(9/20/16)
to 9/30/23
|
|
Fund Performance
|
|
|
|
|
|
|
|
NAV
|
-2.79%
|
20.40%
|
1.90%
|
4.75%
|
9.88%
|
38.54%
|
|
Market Price
|
-0.93%
|
20.79%
|
1.84%
|
4.72%
|
9.53%
|
38.27%
|
|
Index Performance
|
|
|
|
|
|
|
|
S-Network Global E-Commerce
IndexTM(1)(2)
|
-2.35%
|
20.97%
|
N/A
|
N/A
|
N/A
|
N/A
|
|
MSCI ACWI Index
|
2.56%
|
20.80%
|
6.46%
|
8.77%
|
36.76%
|
80.48%
|
|
(1)
|
On January 26, 2022, the Fund’s underlying index changed from the Nasdaq US Smart RetailTM Index to the S-Network Global E-Commerce
IndexTM. Therefore, performance and historical returns shown for the periods prior to January 26, 2022, are not necessarily indicative
of the
performance of the Fund, based on its current index, would have generated.
|
|
(2)
|
Because the Fund’s underlying index has an inception date of April 30, 2021, performance data for the Index is not available for all periods
shown in the table because performance data does not exist for some of the entire periods.
|
(See Notes to Fund Performance Overview on page 20.)
S-Network and S-Network Global E-Commerce IndexTM (“Index”) are service marks of VettaFi LLC and have been licensed for use by First Trust Advisors L.P. The Fund is not issued, sponsored, endorsed, sold or promoted by VettaFi LLC or its affiliates (collectively, “VettaFi”). VettaFi makes no representation or warranty, express or implied, to the purchasers or owners of the Fund or any member of the public regarding the advisability of investing in securities generally or in the Fund particularly or the ability of the Index to track general market performance.
Page 12
Fund Performance Overview (Unaudited) (Continued)
First Trust S-Network E-Commerce ETF (ISHP) (Continued)
|
Sector Allocation
|
% of Total
Long-Term
Investments
|
|
Consumer Discretionary
|
38.3%
|
|
Communication Services
|
25.9
|
|
Industrials
|
12.1
|
|
Financials
|
9.3
|
|
Real Estate
|
6.6
|
|
Consumer Staples
|
5.0
|
|
Information Technology
|
2.8
|
|
Total
|
100.0%
|
|
Top Ten Holdings
|
% of Total
Long-Term
Investments
|
|
PDD Holdings, Inc., ADR
|
2.2%
|
|
MercadoLibre, Inc.
|
2.0
|
|
carsales.com Ltd.
|
2.0
|
|
Booking Holdings, Inc.
|
2.0
|
|
Alphabet, Inc., Class A
|
1.9
|
|
Kuaishou Technology
|
1.9
|
|
Walmart, Inc.
|
1.9
|
|
COSCO SHIPPING Holdings Co., Ltd.,
Class H
|
1.9
|
|
Global Payments, Inc.
|
1.9
|
|
FedEx Corp.
|
1.9
|
|
Total
|
19.6%
|
 |
Performance figures assume reinvestment of
all distributions and do not reflect the
deduction of taxes that a shareholder would
pay on Fund distributions or the redemption
or sale of Fund shares. An index is a statistical
composite that tracks a specified financial
market or sector. Unlike the Fund, the index
does not actually hold a portfolio of securities
and therefore does not incur the expenses
incurred by the Fund. These expenses
negatively impact the performance of the
Fund. The Fund’s past performance does not
predict future performance.
|
Frequency Distribution of Discounts and Premiums
Information showing the number of days the market price of the Fund’s shares was greater (at a premium) and less (at a discount) than the Fund’s net asset value for the most recently completed year, and the most recently completed calendar quarters since that year (or life of the Fund, if shorter) is available at https://www.ftportfolios.com/Retail/etf/home.aspx.
Page 13
Fund Performance Overview (Unaudited) (Continued)
First Trust Nasdaq Semiconductor ETF (FTXL)
The First Trust Nasdaq Semiconductor ETF (the “Fund”) seeks investment results that correspond generally to the price and yield (before the Fund’s fees and expenses) of an equity index called the Nasdaq US Smart SemiconductorTM Index (the “Index”). The shares of the Fund are listed and trade on Nasdaq, Inc. under the ticker symbol “FTXL.” The Fund will normally invest at least 90% of its net assets (including investment borrowings) in the securities that comprise the Index. The Index is owned and is developed,
maintained and sponsored by Nasdaq, Inc. (the “Index Provider”).
The Index is designed to provide exposure to U.S. companies comprising the semiconductor sector that have been selected based
upon their liquidity and weighted based upon their cumulative score on four investing factors:gross income, return on assets, momentum and cash flow. The Index’s initial selection universe consists of the component securities of the Nasdaq US BenchmarkTM Index that have been classified as comprising the semiconductors sub-sector according to the Industry Classification Benchmark. The Nasdaq
US BenchmarkTM Index is an index seeking to track the performance of small, mid and large capitalization U.S. companies. This classification includes producers and distributors of semiconductors and other integrated chips, including other products
related to the semiconductor industry, such as semiconductor capital equipment and motherboards.
|
Performance
|
||||||
|
|
|
|
Average Annual Total
Returns
|
Cumulative Total Returns
|
||
|
|
6 Months
Ended
9/30/23
|
1 Year
Ended
9/30/23
|
5 Years
Ended
9/30/23
|
Inception
(9/20/16)
to 9/30/23
|
5 Years
Ended
9/30/23
|
Inception
(9/20/16)
to 9/30/23
|
|
Fund Performance
|
|
|
|
|
|
|
|
NAV
|
4.66%
|
40.15%
|
18.08%
|
19.76%
|
129.51%
|
255.09%
|
|
Market Price
|
4.69%
|
40.17%
|
18.09%
|
19.76%
|
129.69%
|
255.15%
|
|
Index Performance
|
|
|
|
|
|
|
|
Nasdaq US Smart SemiconductorTM
Index
|
4.99%
|
41.07%
|
18.82%
|
20.53%
|
136.81%
|
271.34%
|
|
Nasdaq US Benchmark
SemiconductorsTM Index
|
22.20%
|
88.64%
|
23.34%
|
24.52%
|
185.39%
|
366.92%
|
|
Nasdaq US BenchmarkTM Index
|
5.03%
|
20.54%
|
9.18%
|
11.88%
|
55.13%
|
120.14%
|
(See Notes to Fund Performance Overview on page 20.)
Nasdaq® and Nasdaq US Smart SemiconductorTM Index are registered trademarks and service marks of Nasdaq, Inc. (together with its affiliates hereinafter referred to as the “Corporations”) and are licensed for use by First Trust. The Fund has not been passed on by the Corporations as to its legality or suitability. The Fund is not issued, endorsed, sold or promoted by the Corporations. THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE FUND.
Page 14
Fund Performance Overview (Unaudited) (Continued)
First Trust Nasdaq Semiconductor ETF (FTXL) (Continued)
|
Sector Allocation
|
% of Total
Long-Term
Investments
|
|
Information Technology
|
100.0%
|
|
Total
|
100.0%
|
|
Top Ten Holdings
|
% of Total
Long-Term
Investments
|
|
Intel Corp.
|
8.6%
|
|
QUALCOMM, Inc.
|
8.3
|
|
Texas Instruments, Inc.
|
8.1
|
|
Applied Materials, Inc.
|
7.7
|
|
Broadcom, Inc.
|
7.7
|
|
Micron Technology, Inc.
|
4.1
|
|
Advanced Micro Devices, Inc.
|
4.1
|
|
NXP Semiconductors N.V.
|
4.1
|
|
Analog Devices, Inc.
|
4.1
|
|
Microchip Technology, Inc.
|
4.1
|
|
Total
|
60.9%
|
 |
Performance figures assume reinvestment of
all distributions and do not reflect the
deduction of taxes that a shareholder would
pay on Fund distributions or the redemption
or sale of Fund shares. An index is a statistical
composite that tracks a specified financial
market or sector. Unlike the Fund, the indices
do not actually hold a portfolio of securities
and therefore do not incur the expenses
incurred by the Fund. These expenses
negatively impact the performance of the
Fund. The Fund’s past performance does not
predict future performance.
|
Frequency Distribution of Discounts and Premiums
Information showing the number of days the market price of the Fund’s shares was greater (at a premium) and less (at a discount) than the Fund’s net asset value for the most recently completed year, and the most recently completed calendar quarters since that year (or life of the Fund, if shorter) is available at https://www.ftportfolios.com/Retail/etf/home.aspx.
Page 15
Fund Performance Overview (Unaudited) (Continued)
First Trust Nasdaq Transportation ETF (FTXR)
The First Trust Nasdaq Transportation ETF (the “Fund”) seeks investment results that correspond generally to the price and yield (before the Fund’s fees and expenses) of an equity index called the Nasdaq US Smart TransportationTM Index (the “Index”). The shares of the Fund are listed and trade on Nasdaq, Inc. under the ticker symbol “FTXR.” The Fund will normally invest at least 90% of its net assets (including investment borrowings) in the securities that comprise the Index. The Index is owned and is developed,
maintained and sponsored by Nasdaq, Inc. (the “Index Provider”).
The Index is designed to provide exposure to U.S. companies comprising the transportation sector that have been selected based
upon their liquidity and weighted based upon their cumulative score on four investing factors:gross income, return on assets, momentum and cash flow. The Index’s initial selection universe consists of the component securities of the Nasdaq US BenchmarkTM Index that have been classified as comprising the industrial transportation sector, the automobiles & parts sector or the airlines sub-sector
according to the Industry Classification Benchmark. The Nasdaq US BenchmarkTM Index is an index seeking to track the performance of small, mid and large capitalization U.S. companies. These classifications include: (i) operators of mail and package delivery
services; (ii) providers of on-water transportation for commercial markets; (iii) providers of industrial railway transportation
and railway lines; (iv) companies that manage airports, train depots, roads, bridges, tunnels, ports, and providers of logistic
services to shippers of goods; (v) companies that provide commercial trucking services; (vi) makers of motorcycles and passenger vehicles;
(vii) manufacturers and distributors of new and replacement parts for motorcycles and automobiles; (viii) manufacturers, distributors
and retreaders of automobile, truck and motorcycle tires; and (ix) companies providing primarily passenger air transport.
|
Performance
|
||||||
|
|
|
|
Average Annual Total
Returns
|
Cumulative Total Returns
|
||
|
|
6 Months
Ended
9/30/23
|
1 Year
Ended
9/30/23
|
5 Years
Ended
9/30/23
|
Inception
(9/20/16)
to 9/30/23
|
5 Years
Ended
9/30/23
|
Inception
(9/20/16)
to 9/30/23
|
|
Fund Performance
|
|
|
|
|
|
|
|
NAV
|
3.57%
|
22.08%
|
3.30%
|
6.33%
|
17.61%
|
53.90%
|
|
Market Price
|
3.57%
|
22.08%
|
3.31%
|
6.33%
|
17.66%
|
53.89%
|
|
Index Performance
|
|
|
|
|
|
|
|
Nasdaq US Smart TransportationTM
Index
|
3.92%
|
22.64%
|
3.70%
|
6.82%
|
19.90%
|
59.00%
|
|
Nasdaq US Benchmark Industrial
TransportationTM Index
|
2.16%
|
21.45%
|
8.87%
|
13.75%
|
52.92%
|
147.24%
|
|
Nasdaq US BenchmarkTM Index
|
5.03%
|
20.54%
|
9.18%
|
11.88%
|
55.13%
|
120.14%
|
(See Notes to Fund Performance Overview on page 20.)
Nasdaq® and Nasdaq US Smart TransportationTM Index are registered trademarks and service marks of Nasdaq, Inc. (together with its affiliates hereinafter referred to as the “Corporations”) and are licensed for use by First Trust. The Fund has not been passed on by the Corporations as to its legality or suitability. The Fund is not issued, endorsed, sold or promoted by the Corporations. THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE FUND.
Page 16
Fund Performance Overview (Unaudited) (Continued)
First Trust Nasdaq Transportation ETF (FTXR) (Continued)
|
Sector Allocation
|
% of Total
Long-Term
Investments
|
|
Industrials
|
67.5%
|
|
Consumer Discretionary
|
32.5
|
|
Total
|
100.0%
|
|
Top Ten Holdings
|
% of Total
Long-Term
Investments
|
|
Ford Motor Co.
|
8.4%
|
|
General Motors Co.
|
8.1
|
|
Tesla, Inc.
|
8.0
|
|
United Parcel Service, Inc., Class B
|
7.6
|
|
Union Pacific Corp.
|
7.0
|
|
CSX Corp.
|
4.2
|
|
FedEx Corp.
|
4.2
|
|
PACCAR, Inc.
|
4.0
|
|
Norfolk Southern Corp.
|
4.0
|
|
United Rentals, Inc.
|
3.8
|
|
Total
|
59.3%
|
 |
Performance figures assume reinvestment of
all distributions and do not reflect the
deduction of taxes that a shareholder would
pay on Fund distributions or the redemption
or sale of Fund shares. An index is a statistical
composite that tracks a specified financial
market or sector. Unlike the Fund, the indices
do not actually hold a portfolio of securities
and therefore do not incur the expenses
incurred by the Fund. These expenses
negatively impact the performance of the
Fund. The Fund’s past performance does not
predict future performance.
|
Frequency Distribution of Discounts and Premiums
Information showing the number of days the market price of the Fund’s shares was greater (at a premium) and less (at a discount) than the Fund’s net asset value for the most recently completed year, and the most recently completed calendar quarters since that year (or life of the Fund, if shorter) is available at https://www.ftportfolios.com/Retail/etf/home.aspx.
Page 17
Fund Performance Overview (Unaudited) (Continued)
First Trust S-Network Streaming & Gaming ETF (BNGE)
The First Trust S-Network Streaming & Gaming ETF (the “Fund”) seeks investment results that correspond generally to the price and yield (before the Fund’s fees and expenses) of an index called the S-Network Streaming & Gaming Index (the “Index”). The Fund lists and principally trades its shares on The NYSE Arca, Inc. under the ticker symbol “BNGE.” The Fund will normally invest at least 80% of its net assets (including investment borrowings) in the securities that comprise the Index. The Fund, using an indexing
investment approach, attempts to replicate, before fees and expenses, the performance of the Index. The Index is developed,
maintained and sponsored by VettaFi LLC (the “Index Provider”).
According to the Index Provider, the Index is composed of common stock and depositary receipts issued by U.S. and non-U.S.
companies that enable remote users to access online content; publish online content; participate in prospective wagering;
spectate or participate in competitive video gaming; and that provide the products, services and technology that are necessary for the
streaming and gaming industries. The Index Provider retains the right at any time, upon prior written notice, to modify the Index methodology.
|
Performance
|
||||
|
|
|
|
Average Annual
Total Returns
|
Cumulative
Total Returns
|
|
|
6 Months
Ended
9/30/23
|
1 Year
Ended
9/30/23
|
Inception
(1/25/22)
to 9/30/23
|
Inception
(1/25/22)
to 9/30/23
|
|
Fund Performance
|
|
|
|
|
|
NAV
|
-1.43%
|
30.33%
|
-9.03%
|
-14.69%
|
|
Market Price
|
-1.43%
|
30.48%
|
-8.90%
|
-14.49%
|
|
Index Performance
|
|
|
|
|
|
S-Network Streaming & Gaming Index
|
-0.89%
|
31.37%
|
-8.08%
|
-13.19%
|
|
MSCI ACWI Index
|
2.56%
|
20.80%
|
-1.91%
|
-3.18%
|
(See Notes to Fund Performance Overview on page 20.)
S-Network and S-Network Streaming & Gaming Index (“Index”) are service marks of VettaFi LLC and have been licensed for use by First Trust Advisors L.P. The Fund is not issued, sponsored, endorsed, sold or promoted by VettaFi LLC or its affiliates (collectively, “VettaFi”). VettaFi makes no representation or warranty, express or implied, to the purchasers or owners of the Fund or any member of the public regarding the advisability of investing in securities generally or in the Fund particularly or the ability of the Index to track general market performance.
Page 18
Fund Performance Overview (Unaudited) (Continued)
First Trust S-Network Streaming & Gaming ETF (BNGE) (Continued)
|
Sector Allocation
|
% of Total
Long-Term
Investments
|
|
Communication Services
|
61.2%
|
|
Consumer Discretionary
|
23.1
|
|
Information Technology
|
15.7
|
|
Total
|
100.0%
|
|
Top Ten Holdings
|
% of Total
Long-Term
Investments
|
|
JOYY, Inc., ADR
|
5.5%
|
|
Intel Corp.
|
5.3
|
|
Activision Blizzard, Inc.
|
5.3
|
|
NetEase, Inc., ADR
|
4.8
|
|
NVIDIA Corp.
|
4.8
|
|
Walt Disney (The) Co.
|
4.5
|
|
Nintendo Co., Ltd.
|
4.5
|
|
Advanced Micro Devices, Inc.
|
4.5
|
|
Electronic Arts, Inc.
|
4.5
|
|
Tencent Holdings Ltd.
|
4.4
|
|
Total
|
48.1%
|
 |
Performance figures assume reinvestment of
all distributions and do not reflect the
deduction of taxes that a shareholder would
pay on Fund distributions or the redemption
or sale of Fund shares. An index is a statistical
composite that tracks a specified financial
market or sector. Unlike the Fund, the indices
do not actually hold a portfolio of securities
and therefore do not incur the expenses
incurred by the Fund. These expenses
negatively impact the performance of the
Fund. The Fund’s past performance does not
predict future performance.
|
Frequency Distribution of Discounts and Premiums
Information showing the number of days the market price of the Fund’s shares was greater (at a premium) and less (at a discount) than the Fund’s net asset value for the most recently completed year, and the most recently completed calendar quarters since that year (or life of the Fund, if shorter) is available at https://www.ftportfolios.com/Retail/etf/home.aspx.
Page 19
Notes to Fund Performance Overview (Unaudited)
Total returns for the periods since inception are calculated from the inception date of each Fund. “Average Annual Total Returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative Total Returns” represent the total change in value of an investment over the periods indicated.
Each Fund’s per share net asset value (“NAV”) is the value of one share of the Fund and is computed by dividing the value of all assets of the Fund (including accrued interest and dividends), less all liabilities (including accrued expenses and dividends
declared but unpaid), by the total number of outstanding shares. The price used to calculate market return (“Market Price”) is determined by using the midpoint of the national best bid and offer price (“NBBO”) as of the time that the Fund’s NAV is calculated. Under the Securities and Exchange Commission’s rules, the NBBO consists of the highest displayed buy and lowest sell prices among the various exchanges trading the Fund at the time the Fund’s NAV is calculated. Prior to January 1, 2019, the price used was the midpoint between the highest bid and the lowest offer on the stock exchange on which shares of the Fund were listed for trading
as of the time that the Fund’s NAV was calculated. Since shares of each Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Fund, the NAV of each
Fund is used as a proxy for the secondary market trading price to calculate market returns. NAV and market returns assume that all
distributions have been reinvested in each Fund at NAV and Market Price, respectively.
An index is a statistical composite that tracks a specified financial market or sector. Unlike each Fund, the indices do not
actually hold a portfolio of securities and therefore do not incur the expenses incurred by each Fund. These expenses negatively impact
the performance of each Fund. Also, market returns do not include brokerage commissions that may be payable on secondary market
transactions. If brokerage commissions were included, market returns would be lower. The total returns presented reflect the
reinvestment of dividends on securities in the indices. The returns presented do not reflect the deduction of taxes that a
shareholder would pay on Fund distributions or the redemption or sale of Fund shares. The investment return and principal value of shares
of each Fund will vary with changes in market conditions. Shares of each Fund may be worth more or less than their original cost when
they are redeemed or sold in the market. Each Fund’s past performance is no guarantee of future performance.
Page 20
First Trust Exchange-Traded Fund VI
Understanding Your Fund Expenses
September 30, 2023 (Unaudited)
Understanding Your Fund Expenses
September 30, 2023 (Unaudited)
As a shareholder of First Trust Nasdaq Bank ETF, First Trust Nasdaq Food & Beverage ETF, First Trust Nasdaq Oil & Gas ETF,
First Trust Nasdaq Pharmaceuticals ETF, First Trust S-Network E-Commerce ETF, First Trust Nasdaq Semiconductor ETF, First Trust
Nasdaq Transportation ETF or First Trust S-Network Streaming & Gaming ETF (each a “Fund” and collectively, the “Funds”), you incur two types of costs: (1) transaction costs; and (2) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, if any, and other Fund expenses. This Example is intended to help you understand your ongoing costs (in U.S. dollars)
of investing in the Funds and to compare these costs with the ongoing costs of investing in other funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held through the six-month period
ended September 30, 2023.
Actual Expenses
The first line in the following table provides information about actual account values and actual expenses. You may use the
information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply
divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During the Six-Month Period” to estimate the expenses you paid on your account during this six-month period.
Hypothetical Example for Comparison Purposes
The second line in the following table provides information about hypothetical account values and hypothetical expenses based
on each Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not each Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you
paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so,
compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional
costs such as brokerage commissions. Therefore, the second line in the table is useful in comparing ongoing costs only, and
will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included,
your costs would have been higher.
|
|
Beginning
Account Value
April 1, 2023
|
Ending
Account Value
September 30, 2023
|
Annualized
Expense Ratio
Based on the
Six-Month
Period
|
Expenses Paid
During the
Six-Month
Period (a)
|
|
First Trust Nasdaq Bank ETF (FTXO)
|
||||
|
Actual
|
$1,000.00
|
$992.20
|
0.60%
|
$2.99
|
|
Hypothetical (5% return before expenses)
|
$1,000.00
|
$1,022.00
|
0.60%
|
$3.03
|
|
First Trust Nasdaq Food & Beverage ETF (FTXG)
|
||||
|
Actual
|
$1,000.00
|
$906.70
|
0.60%
|
$2.86
|
|
Hypothetical (5% return before expenses)
|
$1,000.00
|
$1,022.00
|
0.60%
|
$3.03
|
|
First Trust Nasdaq Oil & Gas ETF (FTXN)
|
||||
|
Actual
|
$1,000.00
|
$1,135.10
|
0.60%
|
$3.20
|
|
Hypothetical (5% return before expenses)
|
$1,000.00
|
$1,022.00
|
0.60%
|
$3.03
|
|
First Trust Nasdaq Pharmaceuticals ETF (FTXH)
|
||||
|
Actual
|
$1,000.00
|
$986.50
|
0.60%
|
$2.98
|
|
Hypothetical (5% return before expenses)
|
$1,000.00
|
$1,022.00
|
0.60%
|
$3.03
|
|
First Trust S-Network E-Commerce ETF (ISHP)
|
||||
|
Actual
|
$1,000.00
|
$972.10
|
0.60%
|
$2.96
|
|
Hypothetical (5% return before expenses)
|
$1,000.00
|
$1,022.00
|
0.60%
|
$3.03
|
|
First Trust Nasdaq Semiconductor ETF (FTXL)
|
||||
|
Actual
|
$1,000.00
|
$1,046.60
|
0.60%
|
$3.07
|
|
Hypothetical (5% return before expenses)
|
$1,000.00
|
$1,022.00
|
0.60%
|
$3.03
|
Page 21
First Trust Exchange-Traded Fund VI
Understanding Your Fund Expenses (Continued)
September 30, 2023 (Unaudited)
Understanding Your Fund Expenses (Continued)
September 30, 2023 (Unaudited)
|
|
Beginning
Account Value
April 1, 2023
|
Ending
Account Value
September 30, 2023
|
Annualized
Expense Ratio
Based on the
Six-Month
Period
|
Expenses Paid
During the
Six-Month
Period (a)
|
|
First Trust Nasdaq Transportation ETF (FTXR)
|
||||
|
Actual
|
$1,000.00
|
$1,035.70
|
0.60%
|
$3.05
|
|
Hypothetical (5% return before expenses)
|
$1,000.00
|
$1,022.00
|
0.60%
|
$3.03
|
|
First Trust S-Network Streaming & Gaming ETF (BNGE)
|
||||
|
Actual
|
$1,000.00
|
$985.70
|
0.70%
|
$3.47
|
|
Hypothetical (5% return before expenses)
|
$1,000.00
|
$1,021.50
|
0.70%
|
$3.54
|
|
(a)
|
Expenses are equal to the annualized expense ratio as indicated in the table multiplied by the average account value over
the period
(April 1, 2023 through September 30, 2023), multiplied by 183/366 (to reflect the six-month period).
|
Page 22
First Trust Nasdaq Bank ETF (FTXO)
Portfolio of Investments
September 30, 2023 (Unaudited)
Portfolio of Investments
September 30, 2023 (Unaudited)
|
Shares
|
Description
|
Value
|
|||
|
COMMON STOCKS — 99.8%
|
|||||
|
|
Banks — 95.8%
|
|
|||
|
6,862
|
BancFirst Corp.
|
$595,141
|
|||
|
365,484
|
Bank of America Corp.
|
10,006,952
|
|||
|
48,163
|
Bank OZK
|
1,785,402
|
|||
|
25,055
|
BOK Financial Corp.
|
2,003,899
|
|||
|
253,776
|
Citigroup, Inc.
|
10,437,807
|
|||
|
44,248
|
Comerica, Inc.
|
1,838,504
|
|||
|
22,333
|
Commerce Bancshares, Inc.
|
1,071,537
|
|||
|
14,074
|
Cullen/Frost Bankers, Inc.
|
1,283,690
|
|||
|
48,091
|
East West Bancorp, Inc.
|
2,534,877
|
|||
|
197,334
|
Fifth Third Bancorp
|
4,998,470
|
|||
|
2,870
|
First Citizens BancShares, Inc.,
Class A
|
3,960,887
|
|||
|
22,836
|
First Financial Bankshares, Inc.
|
573,640
|
|||
|
212,062
|
FNB Corp.
|
2,288,149
|
|||
|
36,035
|
Hancock Whitney Corp.
|
1,332,935
|
|||
|
70,701
|
Home BancShares, Inc.
|
1,480,479
|
|||
|
472,426
|
Huntington Bancshares, Inc.
|
4,913,230
|
|||
|
20,306
|
International Bancshares Corp.
|
880,062
|
|||
|
71,608
|
JPMorgan Chase & Co.
|
10,384,592
|
|||
|
41,897
|
M&T Bank Corp.
|
5,297,876
|
|||
|
301,328
|
New York Community Bancorp,
Inc.
|
3,417,060
|
|||
|
142,737
|
Old National Bancorp
|
2,075,396
|
|||
|
35,425
|
Pinnacle Financial Partners, Inc.
|
2,374,892
|
|||
|
43,396
|
PNC Financial Services Group
(The), Inc.
|
5,327,727
|
|||
|
26,516
|
Popular, Inc.
|
1,670,773
|
|||
|
285,671
|
Regions Financial Corp.
|
4,913,541
|
|||
|
31,214
|
SouthState Corp.
|
2,102,575
|
|||
|
56,573
|
Synovus Financial Corp.
|
1,572,729
|
|||
|
286,844
|
U.S. Bancorp
|
9,483,063
|
|||
|
299,908
|
Valley National Bancorp
|
2,567,213
|
|||
|
81,496
|
Webster Financial Corp.
|
3,285,104
|
|||
|
253,776
|
Wells Fargo & Co.
|
10,369,287
|
|||
|
45,003
|
Western Alliance Bancorp
|
2,068,788
|
|||
|
25,122
|
Wintrust Financial Corp.
|
1,896,711
|
|||
|
|
|
120,792,988
|
|||
|
|
Consumer Finance — 4.0%
|
|
|||
|
58,168
|
Discover Financial Services
|
5,039,094
|
|||
|
|
|||||
|
|
|||||
|
|
Total Investments — 99.8%
|
125,832,082
|
|||
|
|
(Cost $147,873,140)
|
|
|||
|
|
Net Other Assets and
Liabilities — 0.2%
|
225,495
|
|||
|
|
Net Assets — 100.0%
|
$126,057,577
|
|||
Valuation Inputs
A summary of the inputs used to value the Fund’s investments as of September 30, 2023 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements):
|
|
Total
Value at
9/30/2023
|
Level 1
Quoted
Prices
|
Level 2
Significant
Observable
Inputs
|
Level 3
Significant
Unobservable
Inputs
|
|
Common Stocks*
|
$ 125,832,082
|
$ 125,832,082
|
$ —
|
$ —
|
|
*
|
See Portfolio of Investments for industry breakout.
|
See Notes to Financial Statements
Page 23
First Trust Nasdaq Food & Beverage ETF (FTXG)
Portfolio of Investments
September 30, 2023 (Unaudited)
Portfolio of Investments
September 30, 2023 (Unaudited)
|
Shares
|
Description
|
Value
|
|||
|
COMMON STOCKS — 99.8%
|
|||||
|
|
Beverages — 37.6%
|
|
|||
|
2,471
|
Boston Beer (The) Co., Inc.,
Class A (a)
|
$962,529
|
|||
|
46,668
|
Brown-Forman Corp., Class B
|
2,692,277
|
|||
|
3,495
|
Celsius Holdings, Inc. (a)
|
599,742
|
|||
|
181,698
|
Coca-Cola (The) Co.
|
10,171,454
|
|||
|
4,906
|
Coca-Cola Consolidated, Inc.
|
3,121,786
|
|||
|
20,858
|
Constellation Brands, Inc.,
Class A
|
5,242,241
|
|||
|
161,536
|
Keurig Dr Pepper, Inc.
|
5,099,692
|
|||
|
85,615
|
Molson Coors Beverage Co.,
Class B
|
5,444,258
|
|||
|
94,680
|
Monster Beverage Corp. (a)
|
5,013,306
|
|||
|
14,514
|
National Beverage Corp. (a)
|
682,448
|
|||
|
61,103
|
PepsiCo, Inc.
|
10,353,292
|
|||
|
|
|
49,383,025
|
|||
|
|
Consumer Staples Distribution
& Retail — 4.1%
|
|
|||
|
134,445
|
US Foods Holding Corp. (a)
|
5,337,466
|
|||
|
|
Food Products — 57.6%
|
|
|||
|
137,086
|
Archer-Daniels-Midland Co.
|
10,339,026
|
|||
|
5,982
|
Bunge Ltd.
|
647,551
|
|||
|
111,544
|
Campbell Soup Co.
|
4,582,227
|
|||
|
66,882
|
Darling Ingredients, Inc. (a)
|
3,491,240
|
|||
|
80,333
|
General Mills, Inc.
|
5,140,509
|
|||
|
25,300
|
Hershey (The) Co.
|
5,062,024
|
|||
|
121,307
|
Hormel Foods Corp.
|
4,613,305
|
|||
|
41,696
|
Hostess Brands, Inc. (a)
|
1,388,894
|
|||
|
19,581
|
Ingredion, Inc.
|
1,926,770
|
|||
|
4,821
|
J & J Snack Foods Corp.
|
788,957
|
|||
|
89,078
|
Kellogg Co.
|
5,301,032
|
|||
|
328,526
|
Kraft Heinz (The) Co.
|
11,051,615
|
|||
|
37,023
|
Lamb Weston Holdings, Inc.
|
3,423,147
|
|||
|
50,677
|
McCormick & Co., Inc.
|
3,833,208
|
|||
|
152,558
|
Mondelez International, Inc.,
Class A
|
10,587,525
|
|||
|
32,248
|
Post Holdings, Inc. (a)
|
2,764,944
|
|||
|
19,051
|
Simply Good Foods (The)
Co. (a)
|
657,641
|
|||
|
|
|
75,599,615
|
|||
|
|
Personal Care Products —
0.5%
|
|
|||
|
16,488
|
BellRing Brands, Inc. (a)
|
679,800
|
|||
|
|
|||||
|
|
|||||
|
|
Total Investments — 99.8%
|
130,999,906
|
|||
|
|
(Cost $146,522,792)
|
|
|||
|
|
Net Other Assets and
Liabilities — 0.2%
|
262,040
|
|||
|
|
Net Assets — 100.0%
|
$131,261,946
|
|||
|
(a)
|
Non-income producing security.
|
Valuation Inputs
A summary of the inputs used to value the Fund’s investments as of September 30, 2023 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements):
|
|
Total
Value at
9/30/2023
|
Level 1
Quoted
Prices
|
Level 2
Significant
Observable
Inputs
|
Level 3
Significant
Unobservable
Inputs
|
|
Common Stocks*
|
$ 130,999,906
|
$ 130,999,906
|
$ —
|
$ —
|
|
*
|
See Portfolio of Investments for industry breakout.
|
See Notes to Financial Statements
Page 24
First Trust Nasdaq Oil & Gas ETF (FTXN)
Portfolio of Investments
September 30, 2023 (Unaudited)
Portfolio of Investments
September 30, 2023 (Unaudited)
|
Shares
|
Description
|
Value
|
|||
|
COMMON STOCKS — 99.9%
|
|||||
|
|
Energy Equipment & Services
— 6.5%
|
|
|||
|
89,510
|
Baker Hughes Co.
|
$3,161,493
|
|||
|
23,970
|
Cactus, Inc., Class A
|
1,203,534
|
|||
|
35,428
|
ChampionX Corp.
|
1,261,945
|
|||
|
98,006
|
Halliburton Co.
|
3,969,243
|
|||
|
100,882
|
Schlumberger N.V.
|
5,881,421
|
|||
|
14,446
|
Weatherford
International PLC (a)
|
1,304,907
|
|||
|
|
|
16,782,543
|
|||
|
|
Oil, Gas & Consumable Fuels
— 93.4%
|
|
|||
|
107,629
|
APA Corp.
|
4,423,552
|
|||
|
22,899
|
California Resources Corp.
|
1,282,573
|
|||
|
61,887
|
Cheniere Energy, Inc.
|
10,270,766
|
|||
|
51,968
|
Chesapeake Energy Corp.
|
4,481,201
|
|||
|
125,389
|
Chevron Corp.
|
21,143,093
|
|||
|
15,752
|
Chord Energy Corp.
|
2,552,927
|
|||
|
30,857
|
Civitas Resources, Inc.
|
2,495,406
|
|||
|
62,512
|
CNX Resources Corp. (a)
|
1,411,521
|
|||
|
169,707
|
ConocoPhillips
|
20,330,899
|
|||
|
232,051
|
Coterra Energy, Inc.
|
6,276,980
|
|||
|
168,711
|
Devon Energy Corp.
|
8,047,515
|
|||
|
50,534
|
Diamondback Energy, Inc.
|
7,826,706
|
|||
|
78,527
|
EOG Resources, Inc.
|
9,954,082
|
|||
|
120,895
|
EQT Corp.
|
4,905,919
|
|||
|
181,674
|
Exxon Mobil Corp.
|
21,361,229
|
|||
|
32,665
|
Hess Corp.
|
4,997,745
|
|||
|
54,267
|
HF Sinclair Corp.
|
3,089,420
|
|||
|
58,334
|
Magnolia Oil & Gas Corp.,
Class A
|
1,336,432
|
|||
|
212,086
|
Marathon Oil Corp.
|
5,673,300
|
|||
|
116,148
|
Marathon Petroleum Corp.
|
17,577,838
|
|||
|
34,349
|
Matador Resources Co.
|
2,043,079
|
|||
|
51,323
|
Murphy Oil Corp.
|
2,327,498
|
|||
|
33,273
|
Northern Oil and Gas, Inc.
|
1,338,573
|
|||
|
250,743
|
Occidental Petroleum Corp.
|
16,268,206
|
|||
|
91,163
|
Ovintiv, Inc.
|
4,336,624
|
|||
|
79,842
|
PBF Energy, Inc., Class A
|
4,273,942
|
|||
|
145,082
|
Permian Resources Corp.
|
2,025,345
|
|||
|
88,475
|
Phillips 66
|
10,630,271
|
|||
|
42,451
|
Pioneer Natural Resources Co.
|
9,744,627
|
|||
|
64,339
|
Range Resources Corp.
|
2,085,227
|
|||
|
43,456
|
SM Energy Co.
|
1,723,030
|
|||
|
590,429
|
Southwestern Energy Co. (a)
|
3,808,267
|
|||
|
39,711
|
Targa Resources Corp.
|
3,404,027
|
|||
|
678
|
Texas Pacific Land Corp.
|
1,236,374
|
|||
|
Shares
|
Description
|
Value
|
|||
|
|
|||||
|
|
Oil, Gas & Consumable Fuels
(Continued)
|
|
|||
|
77,754
|
Valero Energy Corp.
|
$11,018,519
|
|||
|
197,134
|
Williams (The) Cos., Inc.
|
6,641,444
|
|||
|
|
|
242,344,157
|
|||
|
|
|||||
|
|
|||||
|
|
Total Investments — 99.9%
|
259,126,700
|
|||
|
|
(Cost $234,926,223)
|
|
|||
|
|
Net Other Assets and
Liabilities — 0.1%
|
331,832
|
|||
|
|
Net Assets — 100.0%
|
$259,458,532
|
|||
|
(a)
|
Non-income producing security.
|
Valuation Inputs
A summary of the inputs used to value the Fund’s investments as of September 30, 2023 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements):
|
|
Total
Value at
9/30/2023
|
Level 1
Quoted
Prices
|
Level 2
Significant
Observable
Inputs
|
Level 3
Significant
Unobservable
Inputs
|
|
Common Stocks*
|
$ 259,126,700
|
$ 259,126,700
|
$ —
|
$ —
|
|
*
|
See Portfolio of Investments for industry breakout.
|
See Notes to Financial Statements
Page 25
First Trust Nasdaq Pharmaceuticals ETF (FTXH)
Portfolio of Investments
September 30, 2023 (Unaudited)
Portfolio of Investments
September 30, 2023 (Unaudited)
|
Shares
|
Description
|
Value
|
|||
|
COMMON STOCKS — 99.9%
|
|||||
|
|
Biotechnology — 42.6%
|
|
|||
|
10,463
|
AbbVie, Inc.
|
$1,559,615
|
|||
|
3,987
|
ACADIA Pharmaceuticals,
Inc. (a)
|
83,089
|
|||
|
2,171
|
Akero Therapeutics, Inc. (a)
|
109,809
|
|||
|
3,996
|
Alkermes PLC (a)
|
111,928
|
|||
|
545
|
Alnylam Pharmaceuticals,
Inc. (a)
|
96,520
|
|||
|
2,999
|
Amgen, Inc.
|
806,011
|
|||
|
8,403
|
Amicus Therapeutics, Inc. (a)
|
102,180
|
|||
|
2,876
|
Biogen, Inc. (a)
|
739,161
|
|||
|
1,179
|
BioMarin Pharmaceutical,
Inc. (a)
|
104,318
|
|||
|
1,288
|
Exact Sciences Corp. (a)
|
87,867
|
|||
|
10,861
|
Exelixis, Inc. (a)
|
237,313
|
|||
|
10,052
|
Gilead Sciences, Inc.
|
753,297
|
|||
|
5,598
|
Halozyme Therapeutics, Inc. (a)
|
213,844
|
|||
|
6,801
|
ImmunoGen, Inc. (a)
|
107,932
|
|||
|
7,325
|
Incyte Corp. (a)
|
423,165
|
|||
|
2,675
|
Ionis Pharmaceuticals, Inc. (a)
|
121,338
|
|||
|
865
|
Krystal Biotech, Inc. (a)
|
100,340
|
|||
|
953
|
Moderna, Inc. (a)
|
98,435
|
|||
|
1,871
|
MoonLake
Immunotherapeutics (a)
|
106,647
|
|||
|
1,956
|
Morphic Holding, Inc. (a)
|
44,812
|
|||
|
1,036
|
Neurocrine Biosciences, Inc. (a)
|
116,550
|
|||
|
930
|
Regeneron Pharmaceuticals,
Inc. (a)
|
765,353
|
|||
|
3,171
|
REVOLUTION Medicines,
Inc. (a)
|
87,773
|
|||
|
9,311
|
Roivant Sciences Ltd. (a)
|
108,752
|
|||
|
890
|
Sarepta Therapeutics, Inc. (a)
|
107,886
|
|||
|
2,859
|
United Therapeutics Corp. (a)
|
645,762
|
|||
|
2,075
|
Vaxcyte, Inc. (a)
|
105,784
|
|||
|
2,207
|
Vertex Pharmaceuticals, Inc. (a)
|
767,462
|
|||
|
|
|
8,712,943
|
|||
|
|
Health Care Providers &
Services — 4.1%
|
|
|||
|
8,803
|
Cardinal Health, Inc.
|
764,276
|
|||
|
2,757
|
Guardant Health, Inc. (a)
|
81,718
|
|||
|
|
|
845,994
|
|||
|
|
Life Sciences Tools & Services
— 4.4%
|
|
|||
|
2,208
|
Charles River Laboratories
International, Inc. (a)
|
432,724
|
|||
|
652
|
Illumina, Inc. (a)
|
89,507
|
|||
|
1,199
|
Medpace Holdings, Inc. (a)
|
290,314
|
|||
|
9,550
|
Pacific Biosciences of
California, Inc. (a)
|
79,742
|
|||
|
|
|
892,287
|
|||
|
Shares
|
Description
|
Value
|
|||
|
|
|||||
|
|
Pharmaceuticals — 48.8%
|
|
|||
|
2,021
|
Amphastar Pharmaceuticals,
Inc. (a)
|
$92,946
|
|||
|
1,333
|
Axsome Therapeutics, Inc. (a)
|
93,163
|
|||
|
24,941
|
Bristol-Myers Squibb Co.
|
1,447,576
|
|||
|
3,643
|
Catalent, Inc. (a)
|
165,866
|
|||
|
8,830
|
Elanco Animal Health, Inc. (a)
|
99,249
|
|||
|
1,387
|
Eli Lilly & Co.
|
744,999
|
|||
|
1,940
|
Intra-Cellular Therapies, Inc. (a)
|
101,055
|
|||
|
5,363
|
Jazz Pharmaceuticals PLC (a)
|
694,187
|
|||
|
9,510
|
Johnson & Johnson
|
1,481,182
|
|||
|
14,109
|
Merck & Co., Inc.
|
1,452,522
|
|||
|
23,667
|
Organon & Co.
|
410,859
|
|||
|
6,101
|
Perrigo Co. PLC
|
194,927
|
|||
|
43,460
|
Pfizer, Inc.
|
1,441,568
|
|||
|
2,921
|
Prestige Consumer Healthcare,
Inc. (a)
|
167,052
|
|||
|
71,516
|
Viatris, Inc.
|
705,148
|
|||
|
4,035
|
Zoetis, Inc.
|
702,009
|
|||
|
|
|
9,994,308
|
|||
|
|
|||||
|
|
|||||
|
|
Total Investments — 99.9%
|
20,445,532
|
|||
|
|
(Cost $21,605,282)
|
|
|||
|
|
Net Other Assets and
Liabilities — 0.1%
|
12,012
|
|||
|
|
Net Assets — 100.0%
|
$20,457,544
|
|||
|
(a)
|
Non-income producing security.
|
Valuation Inputs
A summary of the inputs used to value the Fund’s investments as of September 30, 2023 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements):
|
|
Total
Value at
9/30/2023
|
Level 1
Quoted
Prices
|
Level 2
Significant
Observable
Inputs
|
Level 3
Significant
Unobservable
Inputs
|
|
Common Stocks*
|
$ 20,445,532
|
$ 20,445,532
|
$ —
|
$ —
|
|
*
|
See Portfolio of Investments for industry breakout.
|
See Notes to Financial Statements
Page 26
First Trust S-Network E-Commerce ETF (ISHP)
Portfolio of Investments
September 30, 2023 (Unaudited)
Portfolio of Investments
September 30, 2023 (Unaudited)
|
Shares
|
Description
|
Value
|
|||
|
COMMON STOCKS (a) — 99.7%
|
|||||
|
|
Air Freight & Logistics —
4.9%
|
|
|||
|
1,830
|
DHL Group (EUR)
|
$74,556
|
|||
|
363
|
FedEx Corp.
|
96,166
|
|||
|
506
|
United Parcel Service, Inc.,
Class B
|
78,870
|
|||
|
|
|
249,592
|
|||
|
|
Broadline Retail — 18.7%
|
|
|||
|
970
|
Alibaba Group Holding Ltd.,
ADR (b)
|
84,138
|
|||
|
698
|
Amazon.com, Inc. (b)
|
88,730
|
|||
|
5,280
|
Coupang, Inc. (b)
|
89,760
|
|||
|
2,032
|
eBay, Inc.
|
89,591
|
|||
|
1,006
|
Etsy, Inc. (b)
|
64,967
|
|||
|
2,381
|
JD.com, Inc., ADR
|
69,358
|
|||
|
82
|
MercadoLibre, Inc. (b)
|
103,966
|
|||
|
496
|
Naspers Ltd., Class N (ZAR)
|
79,259
|
|||
|
1,029
|
Next PLC (GBP)
|
91,601
|
|||
|
1,158
|
PDD Holdings, Inc., ADR (b)
|
113,565
|
|||
|
2,635
|
Prosus N.V. (EUR)
|
77,781
|
|||
|
|
|
952,716
|
|||
|
|
Commercial Services &
Supplies — 1.7%
|
|
|||
|
2,064
|
Copart, Inc. (b)
|
88,938
|
|||
|
|
Consumer Staples Distribution
& Retail — 5.0%
|
|
|||
|
142,000
|
Alibaba Health Information
Technology Ltd. (HKD) (b)
|
88,490
|
|||
|
13,206
|
JD Health International, Inc.
(HKD) (b) (c) (d)
|
68,467
|
|||
|
608
|
Walmart, Inc.
|
97,237
|
|||
|
|
|
254,194
|
|||
|
|
Electronic Equipment,
Instruments & Components
— 1.4%
|
|
|||
|
294
|
Zebra Technologies Corp.,
Class A (b)
|
69,540
|
|||
|
|
Financial Services — 9.3%
|
|
|||
|
54
|
Adyen N.V. (EUR) (b) (c) (d)
|
40,290
|
|||
|
1,572
|
Fidelity National Information
Services, Inc.
|
86,884
|
|||
|
728
|
Fiserv, Inc. (b)
|
82,235
|
|||
|
360
|
FleetCor Technologies, Inc. (b)
|
91,922
|
|||
|
834
|
Global Payments, Inc.
|
96,235
|
|||
|
1,295
|
PayPal Holdings, Inc. (b)
|
75,706
|
|||
|
|
|
473,272
|
|||
|
|
Ground Transportation —
1.9%
|
|
|||
|
2,053
|
Uber Technologies, Inc. (b)
|
94,417
|
|||
|
Shares
|
Description
|
Value
|
|||
|
|
|||||
|
|
Hotels, Restaurants & Leisure
— 11.5%
|
|
|||
|
669
|
Airbnb, Inc., Class A (b)
|
$91,794
|
|||
|
33
|
Booking Holdings, Inc. (b)
|
101,770
|
|||
|
1,993
|
Delivery Hero SE
(EUR) (b) (c) (d)
|
57,250
|
|||
|
1,125
|
DoorDash, Inc., Class A (b)
|
89,404
|
|||
|
783
|
Expedia Group, Inc. (b)
|
80,704
|
|||
|
5,407
|
Meituan, Class B
(HKD) (b) (c) (d)
|
79,127
|
|||
|
2,466
|
Trip.com Group Ltd., ADR (b)
|
86,236
|
|||
|
|
|
586,285
|
|||
|
|
Industrial REITs — 1.6%
|
|
|||
|
738
|
Prologis, Inc.
|
82,811
|
|||
|
|
Interactive Media & Services
— 24.0%
|
|
|||
|
753
|
Alphabet, Inc., Class A (b)
|
98,538
|
|||
|
11,425
|
Auto Trader Group PLC
(GBP) (c) (d)
|
86,092
|
|||
|
615
|
Baidu, Inc., ADR (b)
|
82,625
|
|||
|
5,673
|
carsales.com Ltd. (AUD)
|
101,910
|
|||
|
1,365
|
IAC, Inc. (b)
|
68,782
|
|||
|
12,200
|
Kuaishou Technology
(HKD) (b) (c) (d)
|
97,915
|
|||
|
32,900
|
LY Corp. (JPY)
|
91,474
|
|||
|
299
|
Meta Platforms, Inc., Class A (b)
|
89,763
|
|||
|
598
|
NAVER Corp. (KRW)
|
89,297
|
|||
|
3,273
|
Pinterest, Inc., Class A (b)
|
88,469
|
|||
|
928
|
REA Group Ltd. (AUD)
|
92,076
|
|||
|
13,375
|
Rightmove PLC (GBP)
|
91,745
|
|||
|
5,769
|
SEEK Ltd. (AUD)
|
81,862
|
|||
|
6,937
|
Snap, Inc., Class A (b)
|
61,809
|
|||
|
6,796
|
Yandex N.V.,
Class A (b) (e) (f) (g)
|
0
|
|||
|
|
|
1,222,357
|
|||
|
|
IT Services — 1.4%
|
|
|||
|
1,332
|
Shopify, Inc., Class A (b)
|
72,687
|
|||
|
|
Marine Transportation —
3.6%
|
|
|||
|
47
|
AP Moller - Maersk A.S.,
Class B (DKK)
|
84,847
|
|||
|
94,000
|
COSCO SHIPPING Holdings
Co., Ltd., Class H (HKD)
|
96,389
|
|||
|
|
|
181,236
|
|||
|
|
Real Estate Management &
Development — 5.0%
|
|
|||
|
1,057
|
CoStar Group, Inc. (b)
|
81,273
|
|||
|
5,872
|
KE Holdings, Inc., ADR
|
91,133
|
|||
|
1,730
|
Zillow Group, Inc., Class C (b)
|
79,857
|
|||
|
|
|
252,263
|
|||
|
|
Specialty Retail — 6.0%
|
|
|||
|
1,153
|
Best Buy Co., Inc.
|
80,099
|
|||
See Notes to Financial Statements
Page 27
First Trust S-Network E-Commerce ETF (ISHP)
Portfolio of Investments (Continued)
September 30, 2023 (Unaudited)
Portfolio of Investments (Continued)
September 30, 2023 (Unaudited)
|
Shares
|
Description
|
Value
|
|||
|
COMMON STOCKS (a) (Continued)
|
|||||
|
|
Specialty Retail (Continued)
|
|
|||
|
1,123
|
CarMax, Inc. (b)
|
$79,430
|
|||
|
2,952
|
Zalando SE (EUR) (b) (c) (d)
|
65,947
|
|||
|
4,500
|
ZOZO, Inc. (JPY)
|
82,583
|
|||
|
|
|
308,059
|
|||
|
|
Textiles, Apparel & Luxury
Goods — 1.9%
|
|
|||
|
247
|
Lululemon Athletica, Inc. (b)
|
95,246
|
|||
|
|
Wireless Telecommunication
Services — 1.8%
|
|
|||
|
31,068
|
Taiwan Mobile Co., Ltd. (TWD)
|
91,047
|
|||
|
|
|||||
|
|
|||||
|
|
Total Investments — 99.7%
|
5,074,660
|
|||
|
|
(Cost $6,025,543)
|
|
|||
|
|
Net Other Assets and
Liabilities — 0.3%
|
13,609
|
|||
|
|
Net Assets — 100.0%
|
$5,088,269
|
|||
|
(a)
|
Securities are issued in U.S. dollars unless otherwise
indicated in the security description.
|
|
(b)
|
Non-income producing security.
|
|
(c)
|
This security is exempt from registration upon resale under
Rule 144A of the Securities Act of 1933, as amended (the
“1933 Act”) and may be resold in transactions exempt from
registration, normally to qualified institutional buyers. This
security is not restricted on the foreign exchange where it
trades freely without any additional registration. As such, it
does not require the additional disclosure required of
restricted securities.
|
|
(d)
|
This security may be resold to qualified foreign investors and
foreign institutional buyers under Regulation S of the 1933
Act.
|
|
(e)
|
Pursuant to procedures adopted by the Trust’s Board of
Trustees, this security has been determined to be illiquid by
First Trust Advisors L.P., the Fund’s advisor.
|
|
(f)
|
This security is fair valued by the Advisor’s Pricing
Committee in accordance with procedures approved by the
Trust’s Board of Trustees, and in accordance with provisions
of the Investment Company Act of 1940 and rules
thereunder, as amended. At September 30, 2023, securities
noted as such are valued at $0 or 0.0% of net assets.
|
|
(g)
|
This security’s value was determined using significant
unobservable inputs (see Note2A- Portfolio Valuation in the
Notes to Financial Statements).
|
|
Abbreviations throughout the Portfolio of Investments:
|
|
|
ADR
|
– American Depositary Receipt
|
|
AUD
|
– Australian Dollar
|
|
DKK
|
– Danish Krone
|
|
EUR
|
– Euro
|
|
GBP
|
– British Pound Sterling
|
|
HKD
|
– Hong Kong Dollar
|
|
JPY
|
– Japanese Yen
|
|
KRW
|
– South Korean Won
|
|
TWD
|
– New Taiwan Dollar
|
|
ZAR
|
– South African Rand
|
|
Currency Exposure Diversification
|
% of Total
Investments
|
|
United States Dollar
|
64.3%
|
|
Hong Kong Dollar
|
8.5
|
|
Euro
|
6.2
|
|
Australian Dollar
|
5.4
|
|
British Pound Sterling
|
5.3
|
|
Japanese Yen
|
3.4
|
|
New Taiwan Dollar
|
1.8
|
|
South Korean Won
|
1.8
|
|
Danish Krone
|
1.7
|
|
South African Rand
|
1.6
|
|
Total
|
100.0%
|
Valuation Inputs
A summary of the inputs used to value the Fund’s investments as of September 30, 2023 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements):
|
|
Total
Value at
9/30/2023
|
Level 1
Quoted
Prices
|
Level 2
Significant
Observable
Inputs
|
Level 3
Significant
Unobservable
Inputs
|
|
Common Stocks:
|
|
|
|
|
|
Interactive Media &
Services
|
$ 1,222,357
|
$ 1,222,357
|
$ —
|
$ —**
|
|
Other Industry
Categories*
|
3,852,303
|
3,852,303
|
—
|
—
|
|
Total Investments
|
$5,074,660
|
$5,074,660
|
$—
|
$—**
|
|
*
|
See Portfolio of Investments for industry breakout.
|
|
**
|
Investment is valued at $0.
|
Level 3 investments are fair valued by the Advisor’s Pricing Committee and are footnoted in the Portfolio of Investments. All Level 3 values are based on unobservable inputs.
See Notes to Financial Statements
Page 28
First Trust Nasdaq Semiconductor ETF (FTXL)
Portfolio of Investments
September 30, 2023 (Unaudited)
Portfolio of Investments
September 30, 2023 (Unaudited)
|
Shares
|
Description
|
Value
|
|||
|
COMMON STOCKS — 99.9%
|
|||||
|
|
Electronic Equipment,
Instruments & Components
— 2.9%
|
|
|||
|
56,692
|
Advanced Energy Industries,
Inc.
|
$5,846,079
|
|||
|
119,444
|
Avnet, Inc.
|
5,756,006
|
|||
|
876,025
|
Vishay Intertechnology, Inc.
|
21,655,338
|
|||
|
|
|
33,257,423
|
|||
|
|
Semiconductors &
Semiconductor Equipment
— 97.0%
|
|
|||
|
456,136
|
Advanced Micro Devices,
Inc. (a)
|
46,899,904
|
|||
|
181,951
|
Allegro MicroSystems, Inc. (a)
|
5,811,515
|
|||
|
1,481,352
|
Amkor Technology, Inc.
|
33,478,555
|
|||
|
265,281
|
Analog Devices, Inc.
|
46,448,050
|
|||
|
631,353
|
Applied Materials, Inc.
|
87,410,823
|
|||
|
48,583
|
Axcelis Technologies, Inc. (a)
|
7,921,458
|
|||
|
104,504
|
Broadcom, Inc.
|
86,798,932
|
|||
|
75,919
|
Cirrus Logic, Inc. (a)
|
5,614,969
|
|||
|
193,399
|
Diodes, Inc. (a)
|
15,247,577
|
|||
|
150,931
|
Entegris, Inc.
|
14,173,930
|
|||
|
2,744,611
|
Intel Corp.
|
97,570,921
|
|||
|
96,086
|
KLA Corp.
|
44,070,805
|
|||
|
68,654
|
Lam Research Corp.
|
43,030,268
|
|||
|
88,388
|
Lattice Semiconductor Corp. (a)
|
7,595,181
|
|||
|
71,687
|
MACOM Technology Solutions
Holdings, Inc. (a)
|
5,848,225
|
|||
|
581,510
|
Marvell Technology, Inc.
|
31,477,136
|
|||
|
589,233
|
Microchip Technology, Inc.
|
45,989,636
|
|||
|
689,489
|
Micron Technology, Inc.
|
46,905,937
|
|||
|
19,910
|
Monolithic Power Systems, Inc.
|
9,198,420
|
|||
|
97,705
|
NVIDIA Corp.
|
42,500,698
|
|||
|
234,409
|
NXP Semiconductors N.V.
|
46,863,047
|
|||
|
489,771
|
ON Semiconductor Corp. (a)
|
45,524,214
|
|||
|
43,617
|
Onto Innovation, Inc. (a)
|
5,562,040
|
|||
|
193,116
|
Qorvo, Inc. (a)
|
18,436,785
|
|||
|
842,099
|
QUALCOMM, Inc.
|
93,523,515
|
|||
|
135,116
|
Rambus, Inc. (a)
|
7,538,122
|
|||
|
443,468
|
Skyworks Solutions, Inc.
|
43,721,510
|
|||
|
210,670
|
Teradyne, Inc.
|
21,163,908
|
|||
|
573,876
|
Texas Instruments, Inc.
|
91,252,023
|
|||
|
|
|
1,097,578,104
|
|||
|
|
|||||
|
|
|||||
|
|
Total Investments — 99.9%
|
1,130,835,527
|
|||
|
|
(Cost $1,080,628,170)
|
|
|||
|
|
Net Other Assets and
Liabilities — 0.1%
|
1,112,044
|
|||
|
|
Net Assets — 100.0%
|
$1,131,947,571
|
|||
|
(a)
|
Non-income producing security.
|
Valuation Inputs
A summary of the inputs used to value the Fund’s investments as of September 30, 2023 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements):
|
|
Total
Value at
9/30/2023
|
Level 1
Quoted
Prices
|
Level 2
Significant
Observable
Inputs
|
Level 3
Significant
Unobservable
Inputs
|
|
Common
Stocks*
|
$ 1,130,835,527
|
$ 1,130,835,527
|
$ —
|
$ —
|
|
*
|
See Portfolio of Investments for industry breakout.
|
See Notes to Financial Statements
Page 29
First Trust Nasdaq Transportation ETF (FTXR)
Portfolio of Investments
September 30, 2023 (Unaudited)
Portfolio of Investments
September 30, 2023 (Unaudited)
|
Shares
|
Description
|
Value
|
|||
|
COMMON STOCKS — 99.9%
|
|||||
|
|
Air Freight & Logistics —
16.6%
|
|
|||
|
9,257
|
C.H. Robinson Worldwide, Inc.
|
$797,305
|
|||
|
7,102
|
Expeditors International of
Washington, Inc.
|
814,102
|
|||
|
6,634
|
FedEx Corp.
|
1,757,479
|
|||
|
3,421
|
GXO Logistics, Inc. (a)
|
200,642
|
|||
|
2,804
|
Hub Group, Inc., Class A (a)
|
220,226
|
|||
|
20,443
|
United Parcel Service, Inc.,
Class B
|
3,186,451
|
|||
|
|
|
6,976,205
|
|||
|
|
Automobile Components —
5.7%
|
|
|||
|
8,205
|
Aptiv PLC (a)
|
808,931
|
|||
|
16,886
|
BorgWarner, Inc.
|
681,688
|
|||
|
6,700
|
Gentex Corp.
|
218,018
|
|||
|
21,512
|
Goodyear Tire & Rubber (The)
Co. (a)
|
267,394
|
|||
|
3,037
|
Lear Corp.
|
407,565
|
|||
|
|
|
2,383,596
|
|||
|
|
Automobiles — 24.5%
|
|
|||
|
285,496
|
Ford Motor Co.
|
3,545,860
|
|||
|
103,345
|
General Motors Co.
|
3,407,285
|
|||
|
13,419
|
Tesla, Inc. (a)
|
3,357,702
|
|||
|
|
|
10,310,847
|
|||
|
|
Construction & Engineering
— 0.8%
|
|
|||
|
8,201
|
WillScot Mobile Mini Holdings
Corp. (a)
|
341,080
|
|||
|
|
Distributors — 2.3%
|
|
|||
|
3,235
|
Genuine Parts Co.
|
467,069
|
|||
|
10,331
|
LKQ Corp.
|
511,488
|
|||
|
|
|
978,557
|
|||
|
|
Ground Transportation —
25.8%
|
|
|||
|
57,336
|
CSX Corp.
|
1,763,082
|
|||
|
4,987
|
J.B. Hunt Transport Services,
Inc.
|
940,149
|
|||
|
12,106
|
Knight-Swift Transportation
Holdings, Inc.
|
607,116
|
|||
|
1,442
|
Landstar System, Inc.
|
255,147
|
|||
|
8,446
|
Norfolk Southern Corp.
|
1,663,271
|
|||
|
1,678
|
Old Dominion Freight Line, Inc.
|
686,537
|
|||
|
10,845
|
Ryder System, Inc.
|
1,159,873
|
|||
|
597
|
Saia, Inc. (a)
|
237,994
|
|||
|
12,399
|
Schneider National, Inc., Class B
|
343,328
|
|||
|
14,492
|
Union Pacific Corp.
|
2,951,006
|
|||
|
3,406
|
XPO, Inc. (a)
|
254,292
|
|||
|
|
|
10,861,795
|
|||
|
Shares
|
Description
|
Value
|
|||
|
|
|||||
|
|
Machinery — 6.6%
|
|
|||
|
5,636
|
Allison Transmission Holdings,
Inc.
|
$332,862
|
|||
|
3,590
|
Federal Signal Corp.
|
214,431
|
|||
|
2,423
|
Oshkosh Corp.
|
231,227
|
|||
|
19,842
|
PACCAR, Inc.
|
1,686,967
|
|||
|
2,697
|
Westinghouse Air Brake
Technologies Corp.
|
286,610
|
|||
|
|
|
2,752,097
|
|||
|
|
Marine Transportation —
1.6%
|
|
|||
|
2,642
|
Kirby Corp. (a)
|
218,758
|
|||
|
5,045
|
Matson, Inc.
|
447,592
|
|||
|
|
|
666,350
|
|||
|
|
Passenger Airlines — 10.6%
|
|
|||
|
117,551
|
American Airlines Group,
Inc. (a)
|
1,505,828
|
|||
|
40,381
|
Delta Air Lines, Inc.
|
1,494,097
|
|||
|
34,762
|
United Airlines Holdings,
Inc. (a)
|
1,470,433
|
|||
|
|
|
4,470,358
|
|||
|
|
Trading Companies &
Distributors — 5.4%
|
|
|||
|
5,920
|
FTAI Aviation Ltd.
|
210,456
|
|||
|
3,705
|
Herc Holdings, Inc.
|
440,673
|
|||
|
3,634
|
United Rentals, Inc.
|
1,615,567
|
|||
|
|
|
2,266,696
|
|||
|
|
|||||
|
|
|||||
|
|
Total Investments — 99.9%
|
42,007,581
|
|||
|
|
(Cost $45,587,546)
|
|
|||
|
|
Net Other Assets and
Liabilities — 0.1%
|
45,974
|
|||
|
|
Net Assets — 100.0%
|
$42,053,555
|
|||
|
(a)
|
Non-income producing security.
|
Valuation Inputs
A summary of the inputs used to value the Fund’s investments as of September 30, 2023 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements):
|
|
Total
Value at
9/30/2023
|
Level 1
Quoted
Prices
|
Level 2
Significant
Observable
Inputs
|
Level 3
Significant
Unobservable
Inputs
|
|
Common Stocks*
|
$ 42,007,581
|
$ 42,007,581
|
$ —
|
$ —
|
|
*
|
See Portfolio of Investments for industry breakout.
|
See Notes to Financial Statements
Page 30
First Trust S-Network Streaming & Gaming ETF (BNGE)
Portfolio of Investments
September 30, 2023 (Unaudited)
Portfolio of Investments
September 30, 2023 (Unaudited)
|
Shares
|
Description
|
Value
|
|||
|
COMMON STOCKS (a) — 99.9%
|
|||||
|
|
Australia — 2.8%
|
|
|||
|
3,702
|
Aristocrat Leisure Ltd.
|
$97,232
|
|||
|
30,043
|
Tabcorp Holdings Ltd.
|
18,157
|
|||
|
|
|
115,389
|
|||
|
|
Bermuda — 0.5%
|
|
|||
|
80,000
|
China Ruyi Holdings Ltd. (b)
|
20,738
|
|||
|
|
Cayman Islands — 20.3%
|
|
|||
|
2,153
|
Hello Group, Inc., ADR
|
15,028
|
|||
|
4,087
|
iQIYI, Inc., ADR (b)
|
19,372
|
|||
|
5,978
|
JOYY, Inc., ADR
|
227,822
|
|||
|
15,875
|
Kuaishou Technology (b) (c) (d)
|
127,410
|
|||
|
1,994
|
NetEase, Inc., ADR
|
199,719
|
|||
|
4,671
|
Tencent Holdings Ltd.
|
182,642
|
|||
|
10,713
|
Tencent Music Entertainment
Group, ADR (b)
|
68,349
|
|||
|
|
|
840,342
|
|||
|
|
Greece — 0.5%
|
|
|||
|
1,288
|
OPAP S.A.
|
21,597
|
|||
|
|
Ireland — 4.0%
|
|
|||
|
1,004
|
Flutter Entertainment PLC (b)
|
164,026
|
|||
|
|
Isle Of Man — 1.1%
|
|
|||
|
4,013
|
Entain PLC
|
45,673
|
|||
|
|
Japan — 10.9%
|
|
|||
|
1,000
|
Capcom Co., Ltd.
|
36,034
|
|||
|
2,661
|
Nexon Co., Ltd.
|
47,606
|
|||
|
4,490
|
Nintendo Co., Ltd.
|
187,183
|
|||
|
2,223
|
Sony Group Corp.
|
182,077
|
|||
|
|
|
452,900
|
|||
|
|
Luxembourg — 3.1%
|
|
|||
|
830
|
Spotify Technology S.A. (b)
|
128,351
|
|||
|
|
Malta — 0.4%
|
|
|||
|
1,984
|
Kindred Group PLC, SDR
|
18,138
|
|||
|
|
South Korea — 0.6%
|
|
|||
|
412
|
AfreecaTV Co., Ltd.
|
25,678
|
|||
|
|
Sweden — 3.7%
|
|
|||
|
1,926
|
Betsson AB, Class B
|
21,189
|
|||
|
1,141
|
Evolution AB (c) (d)
|
115,546
|
|||
|
4,894
|
Viaplay Group AB (b)
|
15,714
|
|||
|
|
|
152,449
|
|||
|
|
Switzerland — 0.4%
|
|
|||
|
1,542
|
Sportradar Holding AG,
Class A (b)
|
15,435
|
|||
|
|
United States — 51.6%
|
|
|||
|
2,337
|
Activision Blizzard, Inc.
|
218,813
|
|||
|
1,805
|
Advanced Micro Devices,
Inc. (b)
|
185,590
|
|||
|
1,477
|
Bally’s Corp. (b)
|
19,364
|
|||
|
2,683
|
DraftKings, Inc., Class A (b)
|
78,988
|
|||
|
1,531
|
Electronic Arts, Inc.
|
184,332
|
|||
|
Shares
|
Description
|
Value
|
|||
|
|
|||||
|
|
United States (Continued)
|
|
|||
|
7,714
|
fuboTV, Inc. (b)
|
$20,596
|
|||
|
1,698
|
GameStop Corp., Class A (b)
|
27,949
|
|||
|
6,179
|
Intel Corp.
|
219,663
|
|||
|
593
|
Light & Wonder, Inc. (b)
|
42,299
|
|||
|
1,899
|
MGM Resorts International
|
69,807
|
|||
|
465
|
Netflix, Inc. (b)
|
175,584
|
|||
|
455
|
NVIDIA Corp.
|
197,920
|
|||
|
860
|
Penn Entertainment, Inc. (b)
|
19,737
|
|||
|
2,837
|
ROBLOX Corp., Class A (b)
|
82,160
|
|||
|
783
|
Roku, Inc. (b)
|
55,272
|
|||
|
2,653
|
Rumble, Inc. (b)
|
13,530
|
|||
|
991
|
Take-Two Interactive Software,
Inc. (b)
|
139,127
|
|||
|
1,428
|
Unity Software, Inc. (b)
|
44,825
|
|||
|
2,313
|
Walt Disney (The) Co. (b)
|
187,469
|
|||
|
14,161
|
Warner Bros Discovery, Inc. (b)
|
153,788
|
|||
|
|
|
2,136,813
|
|||
|
|
Total Common Stocks
|
4,137,529
|
|||
|
|
(Cost $4,231,680)
|
|
|||
|
WARRANTS — 0.0%
|
|||||
|
|
Australia — 0.0%
|
|
|||
|
339
|
PointsBet Holdings Ltd.,
expiring 07/08/24 (b) (e) (f)
|
0
|
|||
|
|
(Cost $0)
|
|
|||
|
Principal
Value
|
Description
|
Value
|
|||
|
REPURCHASE AGREEMENTS — 0.0%
|
|||||
|
$113
|
Bank of America Corp., 3.19%
(g), dated 09/29/23, due
10/02/23, with a maturity
value of $113. Collateralized
by U.S. Treasury Securities,
interest rates of 1.38% to
4.00%, due 11/15/2040 to
02/15/2053. The value of the
collateral including accrued
interest is $115. (h)
|
113
|
|||
|
|
(Cost $113)
|
|
|||
|
|
|||||
|
|
|||||
|
|
Total Investments — 99.9%
|
4,137,642
|
|||
|
|
(Cost $4,231,793)
|
|
|||
|
|
Net Other Assets and
Liabilities — 0.1%
|
5,431
|
|||
|
|
Net Assets — 100.0%
|
$4,143,073
|
|||
|
(a)
|
Portfolio securities are categorized based upon their country
of incorporation, which can be different from the country
categorization of the Fund’s underlying index. For a
breakdown of the portfolio securities by sector, please see the
Fund Performance Overview.
|
|
(b)
|
Non-income producing security.
|
See Notes to Financial Statements
Page 31
First Trust S-Network Streaming & Gaming ETF (BNGE)
Portfolio of Investments (Continued)
September 30, 2023 (Unaudited)
Portfolio of Investments (Continued)
September 30, 2023 (Unaudited)
|
(c)
|
This security is exempt from registration upon resale under
Rule 144A of the Securities Act of 1933, as amended (the
“1933 Act”) and may be resold in transactions exempt from
registration, normally to qualified institutional buyers. This
security is not restricted on the foreign exchange where it
trades freely without any additional registration. As such, it
does not require the additional disclosure required of
restricted securities.
|
|
(d)
|
This security may be resold to qualified foreign investors and
foreign institutional buyers under Regulation S of the 1933
Act.
|
|
(e)
|
Pursuant to procedures adopted by the Trust’s Board of
Trustees, this security has been determined to be illiquid by
First Trust Advisors L.P., the Fund’s advisor.
|
|
(f)
|
This security is fair valued by the Advisor’s Pricing
Committee in accordance with procedures approved by the
Trust’s Board of Trustees, and in accordance with provisions
of the Investment Company Act of 1940 and rules
thereunder, as amended. At September 30, 2023, securities
noted as such are valued at $0 or 0.0% of net assets.
|
|
(g)
|
Rate shown reflects yield as of September 30, 2023.
|
|
(h)
|
This security serves as collateral for securities lending. The
corresponding security on loan was sold on September 15,
2023, however all collateral remained invested in Bank of
America Corp. as of September 30, 2023.
|
|
Abbreviations throughout the Portfolio of Investments:
|
|
|
ADR
|
– American Depositary Receipt
|
|
SDR
|
– Swedish Depositary Receipt
|
|
Currency Exposure Diversification
|
% of Total
Investments
|
|
United States Dollar
|
67.9%
|
|
Japanese Yen
|
11.0
|
|
Hong Kong Dollar
|
8.0
|
|
British Pound Sterling
|
5.1
|
|
Swedish Krona
|
4.1
|
|
Australian Dollar
|
2.8
|
|
South Korean Won
|
0.6
|
|
Euro
|
0.5
|
|
Total
|
100.0%
|
Valuation Inputs
A summary of the inputs used to value the Fund’s investments as of September 30, 2023 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements):
|
|
Total
Value at
9/30/2023
|
Level 1
Quoted
Prices
|
Level 2
Significant
Observable
Inputs
|
Level 3
Significant
Unobservable
Inputs
|
|
Common Stocks*
|
$ 4,137,529
|
$ 4,137,529
|
$ —
|
$ —
|
|
Warrants*
|
—**
|
—
|
—**
|
—
|
|
Repurchase
Agreements
|
113
|
—
|
113
|
—
|
|
Total Investments
|
$4,137,642
|
$4,137,529
|
$113
|
$—
|
|
*
|
See Portfolio of Investments for country breakout.
|
|
**
|
Investment is valued at $0.
|
Offsetting Assets and Liabilities
Offsetting assets and liabilities requires entities to disclose both gross and net information about instruments and transactions eligible for offset, and to disclose instruments and transactions subject to master netting or similar agreements (see Note 2C - Offsetting on the Statements of Assets and Liabilities in the Notes to Financial Statements).
The Fund’s investments in repurchase agreements were all subject to an enforceable Master Repurchase Agreement. Repurchase Agreements on a gross basis were as follows:
|
Repurchase Agreements
|
|
|
Total gross amount presented on the Statements
of Assets and Liabilities(1)
|
$113
|
|
Non-cash Collateral(2)
|
(113
)
|
|
Net Amount
|
$—
|
|
(1)
|
The amount is included in “Investments, at value” on the
Statements of Assets and Liabilities.
|
|
(2)
|
At September 30, 2023, the value of the collateral received
from each seller exceeded the value of the repurchase
agreements.
|
See Notes to Financial Statements
Page 32
First Trust Exchange-Traded Fund VI
Statements of Assets and Liabilities
September 30, 2023 (Unaudited)
Statements of Assets and Liabilities
September 30, 2023 (Unaudited)
|
|
First Trust
Nasdaq Bank
ETF
(FTXO)
|
First Trust
Nasdaq Food &
Beverage ETF
(FTXG)
|
First Trust
Nasdaq Oil &
Gas ETF
(FTXN)
|
|
ASSETS:
|
|
|
|
|
Investments, at value
|
$125,832,082
|
$130,999,906
|
$259,126,700
|
|
Cash
|
184,877
|
129,206
|
279,593
|
|
Receivables:
|
|
|
|
|
Dividends
|
407,179
|
370,363
|
180,156
|
|
Investment securities sold
|
—
|
9,441,202
|
—
|
|
Reclaims
|
—
|
—
|
—
|
|
Securities lending income
|
—
|
—
|
61
|
|
Total Assets
|
126,424,138
|
140,940,677
|
259,586,510
|
|
|
|||
|
LIABILITIES:
|
|
|
|
|
Payables:
|
|
|
|
|
Investment securities purchased
|
302,763
|
—
|
—
|
|
Investment advisory fees
|
63,798
|
216,692
|
127,978
|
|
Capital shares purchased
|
—
|
9,462,039
|
—
|
|
Collateral for securities on loan
|
—
|
—
|
—
|
|
Total Liabilities
|
366,561
|
9,678,731
|
127,978
|
|
NET ASSETS
|
$126,057,577
|
$131,261,946
|
$259,458,532
|
|
|
|||
|
NET ASSETS consist of:
|
|
|
|
|
Paid-in capital
|
$309,829,829
|
$269,543,305
|
$331,750,496
|
|
Par value
|
61,000
|
55,500
|
86,500
|
|
Accumulated distributable earnings (loss)
|
(183,833,252
)
|
(138,336,859
)
|
(72,378,464
)
|
|
NET ASSETS
|
$126,057,577
|
$131,261,946
|
$259,458,532
|
|
NET ASSET VALUE, per share
|
$20.67
|
$23.65
|
$30.00
|
|
Number of shares outstanding (unlimited number of shares authorized,
par value $0.01 per share)
|
6,100,002
|
5,550,002
|
8,650,002
|
|
Investments, at cost
|
$147,873,140
|
$146,522,792
|
$234,926,223
|
See Notes to Financial Statements
Page 34
|
First Trust Nasdaq
Pharmaceuticals ETF
(FTXH)
|
First Trust S-Network
E-Commerce ETF
(ISHP)
|
First Trust Nasdaq
Semiconductor ETF
(FTXL)
|
First Trust Nasdaq
Transportation ETF
(FTXR)
|
First Trust S-Network
Streaming & Gaming
ETF
(BNGE)
|
|
|
|
|
|
|
|
$20,445,532
|
$5,074,660
|
$1,130,835,527
|
$42,007,581
|
$4,137,642
|
|
11,529
|
1,548
|
1,317,654
|
30,926
|
2,947
|
|
|
|
|
|
|
|
11,311
|
6,125
|
379,471
|
38,676
|
4,820
|
|
—
|
—
|
—
|
—
|
—
|
|
—
|
8,530
|
—
|
—
|
179
|
|
—
|
—
|
—
|
—
|
49
|
|
20,468,372
|
5,090,863
|
1,132,532,652
|
42,077,183
|
4,145,637
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
—
|
—
|
—
|
—
|
|
10,828
|
2,594
|
585,081
|
23,628
|
2,451
|
|
—
|
—
|
—
|
—
|
—
|
|
—
|
—
|
—
|
—
|
113
|
|
10,828
|
2,594
|
585,081
|
23,628
|
2,564
|
|
$20,457,544
|
$5,088,269
|
$1,131,947,571
|
$42,053,555
|
$4,143,073
|
|
|
||||
|
|
|
|
|
|
|
$25,939,231
|
$11,336,914
|
$1,073,586,247
|
$105,715,964
|
$4,614,814
|
|
8,000
|
2,000
|
167,500
|
15,000
|
2,000
|
|
(5,489,687
)
|
(6,250,645
)
|
58,193,824
|
(63,677,409
)
|
(473,741
)
|
|
$20,457,544
|
$5,088,269
|
$1,131,947,571
|
$42,053,555
|
$4,143,073
|
|
$25.57
|
$25.44
|
$67.58
|
$28.04
|
$20.72
|
|
800,002
|
200,002
|
16,750,002
|
1,500,002
|
200,002
|
|
$21,605,282
|
$6,025,543
|
$1,080,628,170
|
$45,587,546
|
$4,231,793
|
See Notes to Financial Statements
Page 35
First Trust Exchange-Traded Fund VI
Statements of Operations
For the Six Months Ended September 30, 2023 (Unaudited)
Statements of Operations
For the Six Months Ended September 30, 2023 (Unaudited)
|
|
First Trust
Nasdaq Bank
ETF
(FTXO)
|
First Trust
Nasdaq Food &
Beverage ETF
(FTXG)
|
First Trust
Nasdaq Oil &
Gas ETF
(FTXN)
|
|
INVESTMENT INCOME:
|
|
|
|
|
Dividends
|
$2,822,014
|
$10,619,056
|
$3,899,218
|
|
Interest
|
382
|
2,062
|
—
|
|
Securities lending income (net of fees)
|
—
|
—
|
240
|
|
Foreign withholding tax
|
(2,082
)
|
—
|
—
|
|
Total investment income
|
2,820,314
|
10,621,118
|
3,899,458
|
|
|
|||
|
EXPENSES:
|
|
|
|
|
Investment advisory fees
|
415,530
|
2,735,782
|
783,129
|
|
Total expenses
|
415,530
|
2,735,782
|
783,129
|
|
NET INVESTMENT INCOME (LOSS)
|
2,404,784
|
7,885,336
|
3,116,329
|
|
|
|||
|
NET REALIZED AND UNREALIZED GAIN (LOSS):
|
|
|
|
|
Net realized gain (loss) on:
|
|
|
|
|
Investments
|
(9,716,196
)
|
(13,126,235
)
|
1,685,734
|
|
In-kind redemptions
|
(2,469,419
)
|
(43,306,429
)
|
4,897,231
|
|
Foreign currency transactions
|
—
|
—
|
—
|
|
Net realized gain (loss)
|
(12,185,615
)
|
(56,432,664
)
|
6,582,965
|
|
Net change in unrealized appreciation (depreciation) on:
|
|
|
|
|
Investments
|
8,080,201
|
(30,466,131
)
|
19,356,734
|
|
Foreign currency translation
|
—
|
—
|
—
|
|
Net change in unrealized appreciation (depreciation)
|
8,080,201
|
(30,466,131
)
|
19,356,734
|
|
NET REALIZED AND UNREALIZED GAIN (LOSS)
|
(4,105,414
)
|
(86,898,795
)
|
25,939,699
|
|
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS
|
$(1,700,630
)
|
$(79,013,459
)
|
$29,056,028
|
See Notes to Financial Statements
Page 36
|
First Trust Nasdaq
Pharmaceuticals ETF
(FTXH)
|
First Trust S-Network
E-Commerce ETF
(ISHP)
|
First Trust Nasdaq
Semiconductor ETF
(FTXL)
|
First Trust Nasdaq
Transportation ETF
(FTXR)
|
First Trust S-Network
Streaming & Gaming
ETF
(BNGE)
|
|
|
|
|
|
|
|
$262,537
|
$46,589
|
$7,419,220
|
$375,566
|
$26,477
|
|
115
|
49
|
2,224
|
136
|
—
|
|
—
|
—
|
—
|
—
|
344
|
|
(286
)
|
(2,604
)
|
(66,893
)
|
(79
)
|
(1,188
)
|
|
262,366
|
44,034
|
7,354,551
|
375,623
|
25,633
|
|
|
||||
|
|
|
|
|
|
|
82,433
|
15,957
|
3,305,206
|
150,554
|
15,013
|
|
82,433
|
15,957
|
3,305,206
|
150,554
|
15,013
|
|
179,933
|
28,077
|
4,049,345
|
225,069
|
10,620
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
144,133
|
(182,749
)
|
(18,687,813
)
|
59,534
|
1,233
|
|
811,682
|
—
|
47,154,978
|
1,782,019
|
—
|
|
—
|
(1,115
)
|
—
|
—
|
(471
)
|
|
955,815
|
(183,864
)
|
28,467,165
|
1,841,553
|
762
|
|
|
|
|
|
|
|
(1,252,280
)
|
10,912
|
9,773,088
|
(1,161,152
)
|
(69,818
)
|
|
—
|
(103
)
|
—
|
—
|
(37
)
|
|
(1,252,280
)
|
10,809
|
9,773,088
|
(1,161,152
)
|
(69,855
)
|
|
(296,465
)
|
(173,055
)
|
38,240,253
|
680,401
|
(69,093
)
|
|
$(116,532
)
|
$(144,978
)
|
$42,289,598
|
$905,470
|
$(58,473
)
|
See Notes to Financial Statements
Page 37
First Trust Exchange-Traded Fund VI
Statements of Changes in Net Assets
Statements of Changes in Net Assets
|
|
First Trust Nasdaq Bank ETF
(FTXO)
|
First Trust Nasdaq Food &
Beverage ETF (FTXG)
|
||
|
|
Six Months
Ended
9/30/2023
(Unaudited)
|
Year
Ended
3/31/2023
|
Six Months
Ended
9/30/2023
(Unaudited)
|
Year
Ended
3/31/2023
|
|
OPERATIONS:
|
|
|
|
|
|
Net investment income (loss)
|
$2,404,784
|
$6,468,033
|
$7,885,336
|
$14,325,643
|
|
Net realized gain (loss)
|
(12,185,615
)
|
(68,895,049
)
|
(56,432,664
)
|
(56,358,031
)
|
|
Net change in unrealized appreciation (depreciation)
|
8,080,201
|
(24,928,953
)
|
(30,466,131
)
|
14,148,675
|
|
Net increase (decrease) in net assets resulting from
operations
|
(1,700,630
)
|
(87,355,969
)
|
(79,013,459
)
|
(27,883,713
)
|
|
|
||||
|
DISTRIBUTIONS TO SHAREHOLDERS FROM:
|
|
|
|
|
|
Investment operations
|
(2,645,951
)
|
(6,261,407
)
|
(8,633,181
)
|
(13,322,256
)
|
|
Return of capital
|
—
|
—
|
—
|
—
|
|
Total distributions to shareholders
|
(2,645,951
)
|
(6,261,407
)
|
(8,633,181
)
|
(13,322,256
)
|
|
|
||||
|
SHAREHOLDER TRANSACTIONS:
|
|
|
|
|
|
Proceeds from shares sold
|
3,520,206
|
38,456,834
|
173,762,406
|
1,447,529,232
|
|
Cost of shares redeemed
|
(37,824,072
)
|
(142,068,023
)
|
(939,193,254
)
|
(432,794,312
)
|
|
Net increase (decrease) in net assets resulting from
shareholder transactions
|
(34,303,866
)
|
(103,611,189
)
|
(765,430,848
)
|
1,014,734,920
|
|
Total increase (decrease) in net assets
|
(38,650,447
)
|
(197,228,565
)
|
(853,077,488
)
|
973,528,951
|
|
|
||||
|
NET ASSETS:
|
|
|
|
|
|
Beginning of period
|
164,708,024
|
361,936,589
|
984,339,434
|
10,810,483
|
|
End of period
|
$126,057,577
|
$164,708,024
|
$131,261,946
|
$984,339,434
|
|
|
||||
|
CHANGES IN SHARES OUTSTANDING:
|
|
|
|
|
|
Shares outstanding, beginning of period
|
7,750,002
|
11,400,002
|
36,550,002
|
400,002
|
|
Shares sold
|
150,000
|
1,400,000
|
6,650,000
|
52,250,000
|
|
Shares redeemed
|
(1,800,000
)
|
(5,050,000
)
|
(37,650,000
)
|
(16,100,000
)
|
|
Shares outstanding, end of period
|
6,100,002
|
7,750,002
|
5,550,002
|
36,550,002
|
See Notes to Financial Statements
Page 38
|
First Trust Nasdaq Oil & Gas ETF
(FTXN)
|
First Trust Nasdaq Pharmaceuticals
ETF (FTXH)
|
First Trust S-Network E-Commerce
ETF (ISHP)
|
|||
|
Six Months
Ended
9/30/2023
(Unaudited)
|
Year
Ended
3/31/2023
|
Six Months
Ended
9/30/2023
(Unaudited)
|
Year
Ended
3/31/2023
|
Six Months
Ended
9/30/2023
(Unaudited)
|
Year
Ended
3/31/2023
|
|
|
|
|
|
|
|
|
$3,116,329
|
$29,703,652
|
$179,933
|
$496,968
|
$28,077
|
$16,095
|
|
6,582,965
|
85,111,579
|
955,815
|
838,756
|
(183,864
)
|
(4,035,293
)
|
|
19,356,734
|
(160,545,326
)
|
(1,252,280
)
|
(1,491,531
)
|
10,809
|
886,055
|
|
29,056,028
|
(45,730,095
)
|
(116,532
)
|
(155,807
)
|
(144,978
)
|
(3,133,143
)
|
|
|
|||||
|
|
|
|
|
|
|
|
(5,370,391
)
|
(27,976,256
)
|
(181,796
)
|
(500,150
)
|
(90,981
)
|
(39,201
)
|
|
—
|
—
|
—
|
—
|
—
|
—
|
|
(5,370,391
)
|
(27,976,256
)
|
(181,796
)
|
(500,150
)
|
(90,981
)
|
(39,201
)
|
|
|
|||||
|
|
|
|
|
|
|
|
22,177,592
|
1,343,270,023
|
2,670,779
|
50,373,967
|
—
|
—
|
|
(101,000,935
)
|
(2,102,598,406
)
|
(14,554,610
)
|
(34,389,637
)
|
—
|
(10,089,830
)
|
|
(78,823,343
)
|
(759,328,383
)
|
(11,883,831
)
|
15,984,330
|
—
|
(10,089,830
)
|
|
(55,137,706
)
|
(833,034,734
)
|
(12,182,159
)
|
15,328,373
|
(235,959
)
|
(13,262,174
)
|
|
|
|||||
|
|
|
|
|
|
|
|
314,596,238
|
1,147,630,972
|
32,639,703
|
17,311,330
|
5,324,228
|
18,586,402
|
|
$259,458,532
|
$314,596,238
|
$20,457,544
|
$32,639,703
|
$5,088,269
|
$5,324,228
|
|
|
|||||
|
|
|
|
|
|
|
|
11,650,002
|
43,350,002
|
1,250,002
|
650,002
|
200,002
|
600,002
|
|
750,000
|
50,450,000
|
100,000
|
1,900,000
|
—
|
—
|
|
(3,750,000
)
|
(82,150,000
)
|
(550,000
)
|
(1,300,000
)
|
—
|
(400,000
)
|
|
8,650,002
|
11,650,002
|
800,002
|
1,250,002
|
200,002
|
200,002
|
See Notes to Financial Statements
Page 39
First Trust Exchange-Traded Fund VI
Statements of Changes in Net Assets (Continued)
Statements of Changes in Net Assets (Continued)
|
|
First Trust Nasdaq
Semiconductor ETF (FTXL)
|
First Trust Nasdaq
Transportation ETF (FTXR)
|
||
|
|
Six Months
Ended
9/30/2023
(Unaudited)
|
Year
Ended
3/31/2023
|
Six Months
Ended
9/30/2023
(Unaudited)
|
Year
Ended
3/31/2023
|
|
OPERATIONS:
|
|
|
|
|
|
Net investment income (loss)
|
$4,049,345
|
$741,203
|
$225,069
|
$1,339,675
|
|
Net realized gain (loss)
|
28,467,165
|
(7,865,888
)
|
1,841,553
|
(49,607,011
)
|
|
Net change in unrealized appreciation (depreciation)
|
9,773,088
|
39,410,046
|
(1,161,152
)
|
10,350,564
|
|
Net increase (decrease) in net assets resulting from
operations
|
42,289,598
|
32,285,361
|
905,470
|
(37,916,772
)
|
|
|
||||
|
DISTRIBUTIONS TO SHAREHOLDERS FROM:
|
|
|
|
|
|
Investment operations
|
(3,883,275
)
|
(931,111
)
|
(276,671
)
|
(1,511,736
)
|
|
Return of capital
|
—
|
—
|
—
|
—
|
|
Total distributions to shareholders
|
(3,883,275
)
|
(931,111
)
|
(276,671
)
|
(1,511,736
)
|
|
|
||||
|
SHAREHOLDER TRANSACTIONS:
|
|
|
|
|
|
Proceeds from shares sold
|
341,860,025
|
903,564,157
|
14,916,915
|
2,951,382
|
|
Cost of shares redeemed
|
(236,414,827
)
|
(55,273,060
)
|
(21,157,467
)
|
(196,699,292
)
|
|
Net increase (decrease) in net assets resulting from
shareholder transactions
|
105,445,198
|
848,291,097
|
(6,240,552
)
|
(193,747,910
)
|
|
Total increase (decrease) in net assets
|
143,851,521
|
879,645,347
|
(5,611,753
)
|
(233,176,418
)
|
|
|
||||
|
NET ASSETS:
|
|
|
|
|
|
Beginning of period
|
988,096,050
|
108,450,703
|
47,665,308
|
280,841,726
|
|
End of period
|
$1,131,947,571
|
$988,096,050
|
$42,053,555
|
$47,665,308
|
|
|
||||
|
CHANGES IN SHARES OUTSTANDING:
|
|
|
|
|
|
Shares outstanding, beginning of period
|
15,250,002
|
1,550,002
|
1,750,002
|
8,700,002
|
|
Shares sold
|
5,000,000
|
14,600,000
|
500,000
|
100,000
|
|
Shares redeemed
|
(3,500,000
)
|
(900,000
)
|
(750,000
)
|
(7,050,000
)
|
|
Shares outstanding, end of period
|
16,750,002
|
15,250,002
|
1,500,002
|
1,750,002
|
See Notes to Financial Statements
Page 40
|
First Trust S-Network Streaming
& Gaming ETF (BNGE)
|
|
|
Six Months
Ended
9/30/2023
(Unaudited)
|
Year
Ended
3/31/2023
|
|
|
|
|
$10,620
|
$5,874
|
|
762
|
(379,118
)
|
|
(69,855
)
|
146,378
|
|
(58,473
)
|
(226,866
)
|
|
|
|
|
|
|
|
(8,020
)
|
(11,922
)
|
|
—
|
(3,048
)
|
|
(8,020
)
|
(14,970
)
|
|
|
|
|
|
|
|
—
|
959,545
|
|
—
|
—
|
|
—
|
959,545
|
|
(66,493
)
|
717,709
|
|
|
|
|
|
|
|
4,209,566
|
3,491,857
|
|
$4,143,073
|
$4,209,566
|
|
|
|
|
|
|
|
200,002
|
150,002
|
|
—
|
50,000
|
|
—
|
—
|
|
200,002
|
200,002
|
See Notes to Financial Statements
Page 41
First Trust Exchange-Traded Fund VI
Financial Highlights
For a share outstanding throughout each period
Financial Highlights
For a share outstanding throughout each period
First Trust Nasdaq Bank ETF (FTXO)
|
|
Six Months
Ended
9/30/2023
(Unaudited)
|
Year Ended March 31,
|
||||
|
|
2023
|
2022
|
2021
|
2020
|
2019
|
|
|
Net asset value, beginning of period
|
$21.25
|
$31.75
|
$31.14
|
$15.64
|
$24.41
|
$29.50
|
|
Income from investment operations:
|
|
|
|
|
|
|
|
Net investment income (loss)
|
0.37
(a)
|
0.83
|
0.61
|
0.59
(a)
|
0.73
|
0.84
|
|
Net realized and unrealized gain (loss)
|
(0.52
)
|
(10.54
)
|
0.61
(b)
|
15.50
|
(8.77
)
|
(5.14
)
|
|
Total from investment operations
|
(0.15
)
|
(9.71
)
|
1.22
|
16.09
|
(8.04
)
|
(4.30
)
|
|
Distributions paid to shareholders from:
|
|
|
|
|
|
|
|
Net investment income
|
(0.43
)
|
(0.79
)
|
(0.61
)
|
(0.59
)
|
(0.73
)
|
(0.79
)
|
|
Net asset value, end of period
|
$20.67
|
$21.25
|
$31.75
|
$31.14
|
$15.64
|
$24.41
|
|
Total return (c)
|
(0.78
)%
|
(30.94
)%
|
3.89
%
|
105.13
%
|
(33.93
)%
|
(14.49
)%
|
|
|
||||||
|
Ratios to average net assets/supplemental
data:
|
|
|
|
|
|
|
|
Net assets, end of period (in 000’s)
|
$126,058
|
$164,708
|
$361,937
|
$227,293
|
$58,658
|
$168,447
|
|
Ratio of total expenses to average net assets
|
0.60
% (d)
|
0.60
%
|
0.60
%
|
0.60
%
|
0.60
%
|
0.60
%
|
|
Ratio of net investment income (loss) to
average net assets
|
3.47
% (d)
|
2.76
%
|
1.91
%
|
2.65
%
|
2.69
%
|
1.83
%
|
|
Portfolio turnover rate (e)
|
24
%
|
69
%
|
78
%
|
176
%
|
59
%
|
87
%
|
|
(a)
|
Based on average shares outstanding.
|
|
(b)
|
The per share amount does not correlate with the aggregate realized and unrealized gain (loss) due to the timing of the Fund
share sales and
repurchases in relation to market value fluctuation of the underlying investments.
|
|
(c)
|
Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment
of all
distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns
presented do not
reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
Total return is
calculated for the time period presented and is not annualized for periods of less than a year.
|
|
(d)
|
Annualized.
|
|
(e)
|
Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does
not include securities
received or delivered from processing creations or redemptions and in-kind transactions.
|
See Notes to Financial Statements
Page 42
First Trust Exchange-Traded Fund VI
Financial Highlights (Continued)
For a share outstanding throughout each period
Financial Highlights (Continued)
For a share outstanding throughout each period
First Trust Nasdaq Food & Beverage ETF (FTXG)
|
|
Six Months
Ended
9/30/2023
(Unaudited)
|
Year Ended March 31,
|
||||
|
|
2023
|
2022
|
2021
|
2020
|
2019
|
|
|
Net asset value, beginning of period
|
$26.93
|
$27.03
|
$25.66
|
$17.28
|
$20.06
|
$19.71
|
|
Income from investment operations:
|
|
|
|
|
|
|
|
Net investment income (loss)
|
0.23
(a)
|
0.41
|
0.41
|
0.32
|
0.27
|
0.27
|
|
Net realized and unrealized gain (loss)
|
(2.73
)
|
(0.13
)
|
1.39
|
8.38
|
(2.77
)
|
0.33
|
|
Total from investment operations
|
(2.50
)
|
0.28
|
1.80
|
8.70
|
(2.50
)
|
0.60
|
|
Distributions paid to shareholders from:
|
|
|
|
|
|
|
|
Net investment income
|
(0.78
)
|
(0.38
)
|
(0.43
)
|
(0.32
)
|
(0.28
)
|
(0.25
)
|
|
Net asset value, end of period
|
$23.65
|
$26.93
|
$27.03
|
$25.66
|
$17.28
|
$20.06
|
|
Total return (b)
|
(9.33
)%
|
1.10
%
|
7.13
%
|
50.65
%
|
(12.69
)%
|
3.13
%
|
|
|
||||||
|
Ratios to average net assets/supplemental data:
|
|
|
|
|
|
|
|
Net assets, end of period (in 000’s)
|
$131,262
|
$984,339
|
$10,810
|
$5,133
|
$2,592
|
$2,006
|
|
Ratio of total expenses to average net assets
|
0.60
% (c)
|
0.60
%
|
0.60
%
|
0.60
%
|
0.60
%
|
0.60
%
|
|
Ratio of net investment income (loss) to average net
assets
|
1.73
% (c)
|
1.71
%
|
1.61
%
|
1.44
%
|
1.58
%
|
1.55
%
|
|
Portfolio turnover rate (d)
|
6
%
|
78
%
|
77
%
|
131
%
|
59
%
|
108
%
|
|
(a)
|
Based on average shares outstanding.
|
|
(b)
|
Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment
of all
distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns
presented do not
reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
Total return is
calculated for the time period presented and is not annualized for periods of less than a year.
|
|
(c)
|
Annualized.
|
|
(d)
|
Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does
not include securities
received or delivered from processing creations or redemptions and in-kind transactions.
|
See Notes to Financial Statements
Page 43
First Trust Exchange-Traded Fund VI
Financial Highlights (Continued)
For a share outstanding throughout each period
Financial Highlights (Continued)
For a share outstanding throughout each period
First Trust Nasdaq Oil & Gas ETF (FTXN)
|
|
Six Months
Ended
9/30/2023
(Unaudited)
|
Year Ended March 31,
|
||||
|
|
2023
|
2022
|
2021
|
2020
|
2019
|
|
|
Net asset value, beginning of period
|
$27.00
|
$26.47
|
$15.51
|
$8.10
|
$18.91
|
$19.95
|
|
Income from investment operations:
|
|
|
|
|
|
|
|
Net investment income (loss)
|
0.33
(a)
|
0.69
(a)
|
0.31
|
0.22
|
0.31
|
0.41
|
|
Net realized and unrealized gain (loss)
|
3.27
|
0.50
(b)
|
10.96
|
7.39
|
(10.79
)
|
(1.06
)
|
|
Total from investment operations
|
3.60
|
1.19
|
11.27
|
7.61
|
(10.48
)
|
(0.65
)
|
|
Distributions paid to shareholders from:
|
|
|
|
|
|
|
|
Net investment income
|
(0.60
)
|
(0.66
)
|
(0.31
)
|
(0.20
)
|
(0.32
)
|
(0.39
)
|
|
Return of capital
|
—
|
—
|
—
|
—
|
(0.01
)
|
—
|
|
Total distributions
|
(0.60
)
|
(0.66
)
|
(0.31
)
|
(0.20
)
|
(0.33
)
|
(0.39
)
|
|
Net asset value, end of period
|
$30.00
|
$27.00
|
$26.47
|
$15.51
|
$8.10
|
$18.91
|
|
Total return (c)
|
13.51
%
|
4.66
%
|
73.19
%
|
95.16
%
|
(56.26
)%
|
(3.27
)%
|
|
|
||||||
|
Ratios to average net assets/supplemental
data:
|
|
|
|
|
|
|
|
Net assets, end of period (in 000’s)
|
$259,459
|
$314,596
|
$1,147,631
|
$36,448
|
$6,885
|
$12,294
|
|
Ratio of total expenses to average net assets
|
0.60
% (d)
|
0.60
%
|
0.60
%
|
0.60
%
|
0.60
%
|
0.60
%
|
|
Ratio of net investment income (loss) to average
net assets
|
2.39
% (d)
|
2.54
%
|
1.87
%
|
2.01
%
|
2.14
%
|
1.69
%
|
|
Portfolio turnover rate (e)
|
10
%
|
100
%
|
139
%
|
136
%
|
76
%
|
126
%
|
|
(a)
|
Based on average shares outstanding.
|
|
(b)
|
The per share amount does not correlate with the aggregate realized and unrealized gain (loss) due to the timing of the Fund
share sales and
repurchases in relation to market value fluctuation of the underlying investments.
|
|
(c)
|
Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment
of all
distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns
presented do not
reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
Total return is
calculated for the time period presented and is not annualized for periods of less than a year.
|
|
(d)
|
Annualized.
|
|
(e)
|
Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does
not include securities
received or delivered from processing creations or redemptions and in-kind transactions.
|
See Notes to Financial Statements
Page 44
First Trust Exchange-Traded Fund VI
Financial Highlights (Continued)
For a share outstanding throughout each period
Financial Highlights (Continued)
For a share outstanding throughout each period
First Trust Nasdaq Pharmaceuticals ETF (FTXH)
|
|
Six Months
Ended
9/30/2023
(Unaudited)
|
Year Ended March 31,
|
||||
|
|
2023
|
2022
|
2021
|
2020
|
2019
|
|
|
Net asset value, beginning of period
|
$26.11
|
$26.63
|
$25.51
|
$19.36
|
$21.50
|
$21.14
|
|
Income from investment operations:
|
|
|
|
|
|
|
|
Net investment income (loss)
|
0.17
(a)
|
0.33
|
0.27
|
0.24
|
0.18
|
0.13
|
|
Net realized and unrealized gain (loss)
|
(0.52
)
|
(0.50
)
|
1.10
|
6.14
|
(2.13
)
|
0.35
|
|
Total from investment operations
|
(0.35
)
|
(0.17
)
|
1.37
|
6.38
|
(1.95
)
|
0.48
|
|
Distributions paid to shareholders from:
|
|
|
|
|
|
|
|
Net investment income
|
(0.19
)
|
(0.35
)
|
(0.25
)
|
(0.23
)
|
(0.19
)
|
(0.12
)
|
|
Net asset value, end of period
|
$25.57
|
$26.11
|
$26.63
|
$25.51
|
$19.36
|
$21.50
|
|
Total return (b)
|
(1.35
)%
|
(0.61
)%
|
5.39
%
|
33.00
%
|
(9.13
)%
|
2.30
%
|
|
|
||||||
|
Ratios to average net assets/supplemental data:
|
|
|
|
|
|
|
|
Net assets, end of period (in 000’s)
|
$20,458
|
$32,640
|
$17,311
|
$19,133
|
$5,810
|
$5,376
|
|
Ratio of total expenses to average net assets
|
0.60
% (c)
|
0.60
%
|
0.60
%
|
0.60
%
|
0.60
%
|
0.60
%
|
|
Ratio of net investment income (loss) to average net
assets
|
1.31
% (c)
|
1.39
%
|
0.97
%
|
1.07
%
|
0.85
%
|
0.69
%
|
|
Portfolio turnover rate (d)
|
14
%
|
76
%
|
77
%
|
83
%
|
42
%
|
107
%
|
|
(a)
|
Based on average shares outstanding.
|
|
(b)
|
Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment
of all
distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns
presented do not
reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
Total return is
calculated for the time period presented and is not annualized for periods of less than a year.
|
|
(c)
|
Annualized.
|
|
(d)
|
Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does
not include securities
received or delivered from processing creations or redemptions and in-kind transactions.
|
See Notes to Financial Statements
Page 45
First Trust Exchange-Traded Fund VI
Financial Highlights (Continued)
For a share outstanding throughout each period
Financial Highlights (Continued)
For a share outstanding throughout each period
First Trust S-Network E-Commerce ETF (ISHP)
|
|
Six Months
Ended
9/30/2023
(Unaudited)
|
Year Ended March 31,
|
||||
|
|
2023
|
2022
|
2021
|
2020
|
2019
|
|
|
Net asset value, beginning of period
|
$26.62
|
$30.98
|
$31.48
|
$18.10
|
$22.34
|
$20.86
|
|
Income from investment operations:
|
|
|
|
|
|
|
|
Net investment income (loss)
|
0.14
(a)
|
0.06
(a)
|
0.26
|
0.19
|
0.27
|
0.21
|
|
Net realized and unrealized gain (loss)
|
(0.87
)
|
(4.28
)
|
(0.54
)
|
13.39
|
(4.22
)
|
1.45
|
|
Total from investment operations
|
(0.73
)
|
(4.22
)
|
(0.28
)
|
13.58
|
(3.95
)
|
1.66
|
|
Distributions paid to shareholders from:
|
|
|
|
|
|
|
|
Net investment income
|
(0.45
)
|
(0.14
)
|
(0.22
)
|
(0.20
)
|
(0.29
)
|
(0.18
)
|
|
Net asset value, end of period
|
$25.44
|
$26.62
|
$30.98
|
$31.48
|
$18.10
|
$22.34
|
|
Total return (b)
|
(2.79
)%
|
(13.57
)%
|
(0.94
)%
|
75.23
%
|
(17.90
)%
|
7.98
%
|
|
|
||||||
|
Ratios to average net assets/supplemental data:
|
|
|
|
|
|
|
|
Net assets, end of period (in 000’s)
|
$5,088
|
$5,324
|
$18,586
|
$9,444
|
$3,619
|
$8,934
|
|
Ratio of total expenses to average net assets
|
0.60
% (c)
|
0.60
%
|
0.60
%
|
0.60
%
|
0.60
%
|
0.60
%
|
|
Ratio of net investment income (loss) to average net
assets
|
1.06
% (c)
|
0.23
%
|
0.91
%
|
0.70
%
|
1.11
%
|
1.41
%
|
|
Portfolio turnover rate (d)
|
19
%
|
95
%
|
213
%
|
114
%
|
65
%
|
127
%
|
|
(a)
|
Based on average shares outstanding.
|
|
(b)
|
Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment
of all
distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns
presented do not
reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
Total return is
calculated for the time period presented and is not annualized for periods of less than a year.
|
|
(c)
|
Annualized.
|
|
(d)
|
Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does
not include securities
received or delivered from processing creations or redemptions and in-kind transactions.
|
See Notes to Financial Statements
Page 46
First Trust Exchange-Traded Fund VI
Financial Highlights (Continued)
For a share outstanding throughout each period
Financial Highlights (Continued)
For a share outstanding throughout each period
First Trust Nasdaq Semiconductor ETF (FTXL)
|
|
Six Months
Ended
9/30/2023
(Unaudited)
|
Year Ended March 31,
|
||||
|
|
2023
|
2022
|
2021
|
2020
|
2019
|
|
|
Net asset value, beginning of period
|
$64.79
|
$69.97
|
$64.74
|
$33.00
|
$31.83
|
$32.58
|
|
Income from investment operations:
|
|
|
|
|
|
|
|
Net investment income (loss)
|
0.25
(a)
|
0.46
|
0.27
|
0.23
|
0.38
|
0.25
|
|
Net realized and unrealized gain (loss)
|
2.77
|
(5.14
) (b)
|
5.22
|
31.75
|
1.18
|
(0.79
)
|
|
Total from investment operations
|
3.02
|
(4.68
)
|
5.49
|
31.98
|
1.56
|
(0.54
)
|
|
Distributions paid to shareholders from:
|
|
|
|
|
|
|
|
Net investment income
|
(0.23
)
|
(0.50
)
|
(0.26
)
|
(0.24
)
|
(0.39
)
|
(0.21
)
|
|
Net asset value, end of period
|
$67.58
|
$64.79
|
$69.97
|
$64.74
|
$33.00
|
$31.83
|
|
Total return (c)
|
4.66
%
|
(6.54
)%
|
8.46
%
|
97.11
%
|
4.82
%
|
(1.62
)%
|
|
|
||||||
|
Ratios to average net assets/supplemental
data:
|
|
|
|
|
|
|
|
Net assets, end of period (in 000’s)
|
$1,131,948
|
$988,096
|
$108,451
|
$84,156
|
$31,353
|
$30,242
|
|
Ratio of total expenses to average net assets
|
0.60
% (d)
|
0.60
%
|
0.60
%
|
0.60
%
|
0.60
%
|
0.60
%
|
|
Ratio of net investment income (loss) to average
net assets
|
0.74
% (d)
|
0.78
%
|
0.40
%
|
0.45
%
|
1.00
%
|
0.78
%
|
|
Portfolio turnover rate (e)
|
16
%
|
46
%
|
58
%
|
113
%
|
64
%
|
94
%
|
|
(a)
|
Based on average shares outstanding.
|
|
(b)
|
The per share amount does not correlate with the aggregate realized and unrealized gain (loss) due to the timing of the Fund
share sales and
repurchases in relation to market value fluctuation of the underlying investments.
|
|
(c)
|
Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment
of all
distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns
presented do not
reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
Total return is
calculated for the time period presented and is not annualized for periods of less than a year.
|
|
(d)
|
Annualized.
|
|
(e)
|
Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does
not include securities
received or delivered from processing creations or redemptions and in-kind transactions.
|
See Notes to Financial Statements
Page 47
First Trust Exchange-Traded Fund VI
Financial Highlights (Continued)
For a share outstanding throughout each period
Financial Highlights (Continued)
For a share outstanding throughout each period
First Trust Nasdaq Transportation ETF (FTXR)
|
|
Six Months
Ended
9/30/2023
(Unaudited)
|
Year Ended March 31,
|
||||
|
|
2023
|
2022
|
2021
|
2020
|
2019
|
|
|
Net asset value, beginning of period
|
$27.24
|
$32.28
|
$32.88
|
$15.11
|
$23.33
|
$24.93
|
|
Income from investment operations:
|
|
|
|
|
|
|
|
Net investment income (loss)
|
0.13
(a)
|
0.56
|
0.45
|
0.04
|
0.30
|
0.35
|
|
Net realized and unrealized gain (loss)
|
0.85
|
(5.04
)
|
(0.62
)
|
17.79
|
(8.22
)
|
(1.62
)
|
|
Total from investment operations
|
0.98
|
(4.48
)
|
(0.17
)
|
17.83
|
(7.92
)
|
(1.27
)
|
|
Distributions paid to shareholders from:
|
|
|
|
|
|
|
|
Net investment income
|
(0.18
)
|
(0.56
)
|
(0.43
)
|
(0.06
)
|
(0.30
)
|
(0.33
)
|
|
Net asset value, end of period
|
$28.04
|
$27.24
|
$32.28
|
$32.88
|
$15.11
|
$23.33
|
|
Total return (b)
|
3.57
%
|
(13.76
)%
|
(0.53
)%
|
118.10
%
|
(34.35
)%
|
(5.11
)%
|
|
|
||||||
|
Ratios to average net assets/supplemental
data:
|
|
|
|
|
|
|
|
Net assets, end of period (in 000’s)
|
$42,054
|
$47,665
|
$280,842
|
$1,071,854
|
$1,511
|
$2,333
|
|
Ratio of total expenses to average net assets
|
0.60
% (c)
|
0.60
%
|
0.60
%
|
0.60
%
|
0.60
%
|
0.60
%
|
|
Ratio of net investment income (loss) to average
net assets
|
0.90
% (c)
|
1.42
%
|
0.92
%
|
0.10
%
|
1.04
%
|
1.38
%
|
|
Portfolio turnover rate (d)
|
20
%
|
71
%
|
43
%
|
129
%
|
89
%
|
108
%
|
|
(a)
|
Based on average shares outstanding.
|
|
(b)
|
Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment
of all
distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns
presented do not
reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
Total return is
calculated for the time period presented and is not annualized for periods of less than a year.
|
|
(c)
|
Annualized.
|
|
(d)
|
Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does
not include securities
received or delivered from processing creations or redemptions and in-kind transactions.
|
See Notes to Financial Statements
Page 48
First Trust Exchange-Traded Fund VI
Financial Highlights (Continued)
For a share outstanding throughout each period
Financial Highlights (Continued)
For a share outstanding throughout each period
First Trust S-Network Streaming & Gaming ETF (BNGE)
|
|
Six Months
Ended
9/30/2023
(Unaudited)
|
Year
Ended
3/31/2023
|
Period
Ended
3/31/2022 (a)
|
|
|
|||
|
Net asset value, beginning of period
|
$21.05
|
$23.28
|
$24.46
|
|
Income from investment operations:
|
|
|
|
|
Net investment income (loss)
|
0.05
(b)
|
0.04
|
0.03
|
|
Net realized and unrealized gain (loss)
|
(0.34
)
|
(2.17
)
|
(1.20
)
|
|
Total from investment operations
|
(0.29
)
|
(2.13
)
|
(1.17
)
|
|
Distributions paid to shareholders from:
|
|
|
|
|
Net investment income
|
(0.04
)
|
(0.08
)
|
(0.00
) (c)
|
|
Net realized gain
|
—
|
(0.02
)
|
—
|
|
Total distributions
|
(0.04
)
|
(0.10
)
|
(0.00
)
|
|
Net asset value, end of period
|
$20.72
|
$21.05
|
$23.28
|
|
Total return (d)
|
(1.43
)%
|
(9.08
)%
|
(4.81
)%
|
|
|
|||
|
Ratios to average net assets/supplemental data:
|
|
|
|
|
Net assets, end of period (in 000’s)
|
$4,143
|
$4,210
|
$3,492
|
|
Ratio of total expenses to average net assets
|
0.70
% (e)
|
0.70
%
|
0.71
% (e)
|
|
Ratio of net investment income (loss) to average net assets
|
0.50
% (e)
|
0.17
%
|
0.47
% (e)
|
|
Portfolio turnover rate (f)
|
12
%
|
42
%
|
0
%
|
|
(a)
|
Inception date is January 25, 2022, which is consistent with the commencement of investment operations and is the date the
initial creation units
were established.
|
|
(b)
|
Based on average shares outstanding.
|
|
(c)
|
Amount represents less than $0.01.
|
|
(d)
|
Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment
of all
distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns
presented do not
reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
Total return is
calculated for the time period presented and is not annualized for periods of less than a year.
|
|
(e)
|
Annualized.
|
|
(f)
|
Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does
not include securities
received or delivered from processing creations or redemptions and in-kind transactions.
|
See Notes to Financial Statements
Page 49
Notes to Financial Statements
First Trust Exchange-Traded Fund VI
September 30, 2023 (Unaudited)
September 30, 2023 (Unaudited)
1. Organization
First Trust Exchange-Traded Fund VI (the “Trust”) is an open-end management investment company organized as a Massachusetts business trust on June 4, 2012, and is registered with the Securities and Exchange Commission under the Investment Company
Act of 1940, as amended (the “1940 Act”).
The Trust currently consists of thirty-two exchange-traded funds that are offering shares. This report covers the eight funds
(each a “Fund” and collectively, the “Funds”) listed below, each a non-diversified series of the Trust and listed and traded on Nasdaq, Inc. (“Nasdaq”) with the exception of BNGE which is listed and traded on The NYSE Arca, Inc.
|
First Trust Nasdaq Bank ETF – (ticker “FTXO”)
|
|
First Trust Nasdaq Food & Beverage ETF – (ticker “FTXG”)
|
|
First Trust Nasdaq Oil & Gas ETF – (ticker “FTXN”)
|
|
First Trust Nasdaq Pharmaceuticals ETF – (ticker “FTXH”)
|
|
First Trust S-Network E-Commerce ETF – (ticker “ISHP”)
|
|
First Trust Nasdaq Semiconductor ETF – (ticker “FTXL”)
|
|
First Trust Nasdaq Transportation ETF – (ticker “FTXR”)
|
|
First Trust S-Network Streaming & Gaming ETF – (ticker “BNGE”)
|
Each Fund represents a separate series of shares of beneficial interest in the Trust. Unlike conventional mutual funds, each
Fund issues and redeems shares on a continuous basis, at net asset value (“NAV”), only in large blocks of shares known as “Creation Units.” The investment objective of each Fund is to seek investment results that correspond generally to the price and yield (before the Fund’s fees and expenses) of the following indices:
|
Fund
|
Index
|
|
First Trust Nasdaq Bank ETF
|
Nasdaq US Smart BanksTM Index
|
|
First Trust Nasdaq Food & Beverage ETF
|
Nasdaq US Smart Food & BeverageTM Index
|
|
First Trust Nasdaq Oil & Gas ETF
|
Nasdaq US Smart Oil & GasTM Index
|
|
First Trust Nasdaq Pharmaceuticals ETF
|
Nasdaq US Smart PharmaceuticalsTM Index
|
|
First Trust S-Network E-Commerce ETF
|
S-Network Global E-Commerce IndexTM
|
|
First Trust Nasdaq Semiconductor ETF
|
Nasdaq US Smart SemiconductorTM Index
|
|
First Trust Nasdaq Transportation ETF
|
Nasdaq US Smart TransportationTM Index
|
|
First Trust S-Network Streaming & Gaming ETF
|
S-Network Streaming & Gaming Index
|
2. Significant Accounting Policies
The Funds are each considered an investment company and follow accounting and reporting guidance under Financial Accounting
Standards Board Accounting Standards Codification Topic 946, “Financial Services-Investment Companies.” The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of the financial statements.
The preparation of the financial statements in accordance with accounting principles generally accepted in the United States of
America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.
A. Portfolio Valuation
Each Fund’s NAV is determined daily as of the close of regular trading on the New York Stock Exchange (“NYSE”), normally 4:00 p.m. Eastern time, on each day the NYSE is open for trading. If the NYSE closes early on a valuation day, the NAV is
determined as of that time. Foreign securities are priced using data reflecting the earlier closing of the principal markets
for those securities. Each Fund’s NAV is calculated by dividing the value of all assets of each Fund (including accrued interest and dividends), less all liabilities (including accrued expenses and dividends declared but unpaid), by the total number of shares outstanding.
Each Fund’s investments are valued daily at market value or, in the absence of market value with respect to any portfolio securities, at fair value. Market value prices represent readily available market quotations such as last sale or official closing prices
from a national or foreign exchange (i.e., a regulated market) and are primarily obtained from third-party pricing services. Fair value prices
represent any prices not considered market value prices and are either obtained from a third-party pricing service or are determined
by the Pricing Committee of the Funds’ investment advisor, First Trust Advisors L.P. (“First Trust” or the “Advisor”), in accordance with valuation procedures approved by the Trust’s Board of Trustees, and in accordance with provisions of the 1940 Act and rules
Page 50
Notes to Financial Statements (Continued)
First Trust Exchange-Traded Fund VI
September 30, 2023 (Unaudited)
September 30, 2023 (Unaudited)
thereunder. Investments valued by the Advisor’s Pricing Committee, if any, are footnoted as such in the footnotes to the Portfolio of Investments. Each Fund’s investments are valued as follows:
Common stocks and other equity securities listed on any national or foreign exchange (excluding Nasdaq and the London Stock
Exchange Alternative Investment Market (“AIM”)) are valued at the last sale price on the exchange on which they are principally traded or, for Nasdaq and AIM securities, the official closing price. Securities traded on more than one securities
exchange are valued at the last sale price or official closing price, as applicable, at the close of the securities exchange
representing the primary exchange for such securities.
Securities trading on foreign exchanges or over-the-counter markets that close prior to the NYSE close may be valued using
a systematic fair valuation model provided by a third-party pricing service. If these foreign securities meet certain criteria
in relation to the valuation model, their valuation is systematically adjusted to reflect the impact of movement in the U.S.
market after the close of the foreign markets.
Shares of open-end funds are valued based on NAV per share.
Equity securities traded in an over-the-counter market are valued at the close price or the last trade price.
Overnight repurchase agreements are valued at amortized cost when it represents the most appropriate reflection of fair market
value.
Certain securities may not be able to be priced by pre-established pricing methods. Such securities may be valued by the Advisor’s Pricing Committee at fair value. These securities generally include, but are not limited to, restricted securities (securities
which may not be publicly sold without registration under the Securities Act of 1933, as amended) for which a third-party pricing service
is unable to provide a market price; securities whose trading has been formally suspended; a security whose market or fair value
price is not available from a pre-established pricing source; a security with respect to which an event has occurred that is likely
to materially affect the value of the security after the market has closed but before the calculation of a Fund’s NAV or make it difficult or impossible to obtain a reliable market quotation; and a security whose price, as provided by the third-party pricing service,
does not reflect the security’s fair value. As a general principle, the current fair value of a security would appear to be the amount which the owner might reasonably expect to receive for the security upon its current sale. When fair value prices are used, generally
they will differ from market quotations or official closing prices on the applicable exchanges. A variety of factors may be considered
in determining the fair value of such securities, including, but not limited to, the following:
1)
the last sale price on the exchange on which they are principally traded or, for Nasdaq and AIM securities, the official closing price;
2)
the type of security;
3)
the size of the holding;
4)
the initial cost of the security;
5)
transactions in comparable securities;
6)
price quotes from dealers and/or third-party pricing services;
7)
relationships among various securities;
8)
information obtained by contacting the issuer, analysts, or the appropriate stock exchange;
9)
an analysis of the issuer’s financial statements;
10)
the existence of merger proposals or tender offers that might affect the value of the security; and
11)
other relevant factors.
If the securities in question are foreign securities, the following additional information may be considered:
1)
the value of similar foreign securities traded on other foreign markets;
2)
ADR trading of similar securities;
3)
closed-end fund or exchange-traded fund trading of similar securities;
4)
foreign currency exchange activity;
5)
the trading prices of financial products that are tied to baskets of foreign securities;
6)
factors relating to the event that precipitated the pricing problem;
7)
whether the event is likely to recur;
8)
whether the effects of the event are isolated or whether they affect entire markets, countries or regions; and
Page 51
Notes to Financial Statements (Continued)
First Trust Exchange-Traded Fund VI
September 30, 2023 (Unaudited)
September 30, 2023 (Unaudited)
9)
other relevant factors.
In addition, differences between the prices used to calculate a Fund’s NAV and the prices used by such Fund’s corresponding index could result in a difference between a Fund’s performance and the performance of its underlying index.
Because foreign markets may be open on different days than the days during which investors may transact in the shares of a
Fund, the value of the Fund’s securities may change on the days when investors are not able to transact in the shares of the Fund. The value of the securities denominated in foreign currencies is converted into U.S. dollars using exchange rates determined daily as of
the close of regular trading on the NYSE. Any use of a different rate from the rates used by a relevant index may adversely affect the Fund’s ability to track the index.
The Funds are subject to fair value accounting standards that define fair value, establish the framework for measuring fair
value and provide a three-level hierarchy for fair valuation based upon the inputs to the valuation as of the measurement date. The
three levels of the fair value hierarchy are as follows:
• Level 1 – Level 1 inputs are quoted prices in active markets for identical investments. An active market is a market in which transactions for the investment occur with sufficient frequency and volume to provide pricing information on an ongoing basis.
• Level 2 – Level 2 inputs are observable inputs, either directly or indirectly, and include the following:
o Quoted prices for similar investments in active markets.
o Quoted prices for identical or similar investments in markets that are non-active. A non-active market is a market where there are few transactions for the investment, the prices are not current, or price quotations vary substantially either over
time or among market makers, or in which little information is released publicly.
o Inputs other than quoted prices that are observable for the investment (for example, interest rates and yield curves observable at commonly quoted intervals, volatilities, prepayment speeds, loss severities, credit risks, and default rates).
o Inputs that are derived principally from or corroborated by observable market data by correlation or other means.
• Level 3 – Level 3 inputs are unobservable inputs. Unobservable inputs may reflect the reporting entity’s own assumptions about the assumptions that market participants would use in pricing the investment.
The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing
in those investments. A summary of the inputs used to value each Fund’s investments as of September 30, 2023, is included with each Fund’s Portfolio of Investments.
B. Securities Transactions and Investment Income
Securities transactions are recorded as of the trade date. Realized gains and losses from securities transactions are recorded
on the identified cost basis. Dividend income is recorded on the ex-dividend date except that certain dividends from foreign securities
are recorded as soon as the information becomes available after the ex-dividend date. Interest income, if any, is recorded on
the accrual basis.
Withholding taxes and tax reclaims on foreign dividends have been provided for in accordance with each Fund’s understanding of the applicable country’s tax rules and rates.
Distributions received from a Fund’s investments in real estate investment trusts (“REITs”) may be comprised of return of capital, capital gains, and income. The actual character of the amounts received during the year are not known until after the REITs’ fiscal year end. A Fund records the character of distributions received from the REITs during the year based on estimates available.
The characterization of distributions received by a Fund may be subsequently revised based on information received from the REITs
after their tax reporting periods conclude.
C. Offsetting on the Statements of Assets and Liabilities
Offsetting assets and liabilities requires entities to disclose both gross and net information about instruments and transactions
eligible for offset on the Statements of Assets and Liabilities and disclose instruments and transactions subject to master netting
or similar agreements. These disclosure requirements are intended to help investors and other financial statement users better assess
the effect or potential effect of offsetting arrangements on a Fund’s financial position. The transactions subject to offsetting disclosures are derivative instruments, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending
transactions.
Page 52
Notes to Financial Statements (Continued)
First Trust Exchange-Traded Fund VI
September 30, 2023 (Unaudited)
September 30, 2023 (Unaudited)
This disclosure, if applicable, is included within each Fund’s Portfolio of Investments under the heading “Offsetting Assets and Liabilities.” For financial reporting purposes, the Funds do not offset financial assets and financial liabilities that are subject to master netting arrangements (“MNAs”) or similar agreements on the Statements of Assets and Liabilities. MNAs provide the right, in the event of default (including bankruptcy and insolvency), for the non-defaulting counterparty to liquidate the collateral and
calculate the net exposure to the defaulting party or request additional collateral.
D. Foreign Currency
The books and records of the Funds are maintained in U.S. dollars. Foreign currencies, investments and other assets and liabilities
are translated into U.S. dollars at the exchange rates prevailing at the end of the period. Purchases and sales of investments
and items of income and expense are translated on the respective dates of such transactions. Unrealized gains and losses on assets and
liabilities, other than investments in securities, which result from changes in foreign currency exchange rates have been included in “Net change in unrealized appreciation (depreciation) on foreign currency translation” on the Statements of Operations. Unrealized gains and losses on investments in securities which result from changes in foreign exchange rates are included with fluctuations arising from
changes in market price and are shown in “Net change in unrealized appreciation (depreciation) on investments” on the Statements of Operations. Net realized foreign currency gains and losses include the effect of changes in exchange rates between trade date
and settlement date on investment security transactions, foreign currency transactions and interest and dividends received and
are included in “Net realized gain (loss) on foreign currency transactions” on the Statements of Operations. The portion of foreign currency gains and losses related to fluctuations in exchange rates between the initial purchase settlement date and subsequent sale trade
date is included in “Net realized gain (loss) on investments” on the Statements of Operations.
E. Securities Lending
The Funds may lend securities representing up to 33 1/3% of the value of their total assets to broker-dealers, banks and other
institutions to generate additional income. When a Fund loans its portfolio securities, it will receive, at the inception
of each loan, collateral equal to at least 102% (for domestic securities) or 105% (for international securities) of the market value of
the loaned securities. The collateral amount is valued at the beginning of each business day and is compared to the market value of the
loaned securities from the prior business day to determine if additional collateral is required. If additional collateral is required,
a request is sent to the borrower. Securities lending involves the risk that the Fund may lose money because the borrower of the Fund’s loaned securities fails to return the securities in a timely manner or at all. The Fund could also lose money in the event of (i)
a decline in the value of the collateral provided for the loaned securities, (ii) a decline in the value of any investments made with cash
collateral or (iii) an increase in the value of the loaned securities if the borrower does not increase the collateral accordingly and the borrower
fails to return the securities. These events could also trigger adverse tax consequences for the Funds.
Under the Funds’ Securities Lending Agency Agreement, the securities lending agent will generally bear the risk that a borrower may default on its obligation to return loaned securities. Prior to May 8, 2023 for all the Funds except ISHP and BNGE, and June
12, 2023 for ISHP and BNGE, the Funds’ securities lending agent was Brown Brothers Harriman & Co. (“BBH”). Effective May 8, 2023 for all the Funds except ISHP and BNGE, and June 12, 2023 for ISHP and BNGE, the Bank of New York Mellon (“BNYM”) acts as the Funds’ securities lending agent and is responsible for executing the lending of the portfolio securities to creditworthy borrowers. The Funds, however, will be responsible for the risks associated with the investment of cash collateral. A Fund may lose money
on its investment of cash collateral, which may affect its ability to repay the collateral to the borrower without the use of other
Fund assets. Each Fund that engages in securities lending receives compensation (net of any rebate and securities lending agent fees) for
lending its securities. Compensation can be in the form of fees received from the securities lending agent or dividends or interest earned
from the investment of cash collateral. The fees received from the securities lending agent are accrued daily. The dividend and interest
earned on the securities loaned is accounted for in the same manner as other dividend and interest income. At September 30, 2023,
only BNGE had securities in the securities lending program. During the six months ended September 30, 2023, FTXN and BNGE participated in the securities lending program.
In the event of a default by a borrower with respect to any loan, BNYM will exercise any and all remedies provided under the
applicable borrower agreement to make the Funds whole. These remedies include purchasing replacement securities by applying
the collateral held from the defaulting broker against the purchase cost of the replacement securities. If, despite such efforts
by BNYM to exercise these remedies, a Fund sustains losses as a result of a borrower’s default, BNYM will indemnify the Fund by purchasing replacement securities at its own expense, or paying the Fund an amount equal to the market value of the replacement securities,
subject to certain limitations which are set forth in detail in the Securities Lending Agency Agreement between the Trust
on behalf of the Funds and BNYM.
Page 53
Notes to Financial Statements (Continued)
First Trust Exchange-Traded Fund VI
September 30, 2023 (Unaudited)
September 30, 2023 (Unaudited)
F. Repurchase Agreements
Repurchase agreements involve the purchase of securities subject to the seller’s agreement to repurchase the securities at a mutually agreed upon date and price, under the terms of a Master Repurchase Agreement (“MRA”). During the term of a repurchase agreement, the value of the underlying securities held as collateral on behalf of a Fund, including accrued interest, is required to
exceed the value of the repurchase agreement, including accrued interest. The underlying securities for all repurchase agreements are held at the Funds’ custodian or designated sub-custodians under tri-party repurchase agreements.
MRAs govern transactions between a Fund and select counterparties. The MRAs contain provisions for, among other things, initiation,
income payments, events of default, and maintenance of collateral for repurchase agreements.
Repurchase agreements received for lending securities are collateralized by U.S. Treasury securities. The U.S. Treasury securities
are held in a joint custody account at BNYM on behalf of the Funds participating in the securities lending program. In the event
the counterparty defaults on the repurchase agreement, the U.S. Treasury securities can either be maintained as part of a Fund’s portfolio or sold for cash. A Fund could suffer a loss to the extent that the proceeds from the sale of the underlying collateral held
by the Fund are less than the repurchase price and the Fund’s costs associated with the delay and enforcement of the MRA.
While the Funds may invest in repurchase agreements, any repurchase agreements held by the Funds during the six months ended
September 30, 2023, were received as collateral for lending securities.
G. Dividends and Distributions to Shareholders
Dividends from net investment income of each Fund, if any, are declared and paid quarterly, or as the Board of Trustees may
determine from time to time. Distributions of net realized gains earned by each Fund, if any, are distributed at least annually.
A Fund may also designate a portion of the amount paid to redeeming shareholders as a distribution for tax purposes.
Distributions from net investment income and realized capital gains are determined in accordance with federal income tax regulations,
which may differ from U.S. GAAP. Certain capital accounts in the financial statements are periodically adjusted for permanent
differences in order to reflect their tax character. These permanent differences are primarily due to the varying treatment
of income and gain/loss on portfolio securities held by the Funds and have no impact on net assets or NAV per share. Temporary differences,
which arise from recognizing certain items of income, expense and gain/loss in different periods for financial statement and
tax purposes, will reverse at some time in the future.
The tax character of distributions paid by each Fund during the fiscal year ended March 31, 2023 was as follows:
|
|
Distributions
paid from
Ordinary
Income
|
Distributions
paid from
Capital
Gains
|
Distributions
paid from
Return of
Capital
|
|
First Trust Nasdaq Bank ETF
|
$6,261,407
|
$—
|
$—
|
|
First Trust Nasdaq Food & Beverage ETF
|
13,322,256
|
—
|
—
|
|
First Trust Nasdaq Oil & Gas ETF
|
27,976,256
|
—
|
—
|
|
First Trust Nasdaq Pharmaceuticals ETF
|
500,150
|
—
|
—
|
|
First Trust S-Network E-Commerce ETF
|
39,201
|
—
|
—
|
|
First Trust Nasdaq Semiconductor ETF
|
931,111
|
—
|
—
|
|
First Trust Nasdaq Transportation ETF
|
1,511,736
|
—
|
—
|
|
First Trust S-Network Streaming & Gaming ETF
|
11,922
|
—
|
3,048
|
Page 54
Notes to Financial Statements (Continued)
First Trust Exchange-Traded Fund VI
September 30, 2023 (Unaudited)
September 30, 2023 (Unaudited)
As of March 31, 2023, the components of distributable earnings on a tax basis for each Fund were as follows:
|
|
Undistributed
Ordinary
Income
|
Accumulated
Capital and
Other
Gain (Loss)
|
Net
Unrealized
Appreciation
(Depreciation)
|
|
First Trust Nasdaq Bank ETF
|
$536,448
|
$(148,409,375
)
|
$(31,613,744
)
|
|
First Trust Nasdaq Food & Beverage ETF
|
1,003,387
|
(63,514,879
)
|
11,821,273
|
|
First Trust Nasdaq Oil & Gas ETF
|
2,351,864
|
(93,410,183
)
|
(5,005,782
)
|
|
First Trust Nasdaq Pharmaceuticals ETF
|
18,103
|
(5,088,267
)
|
(121,195
)
|
|
First Trust S-Network E-Commerce ETF
|
67,042
|
(5,050,919
)
|
(1,030,809
)
|
|
First Trust Nasdaq Semiconductor ETF
|
—
|
(18,825,804
)
|
38,613,305
|
|
First Trust Nasdaq Transportation ETF
|
42,379
|
(61,692,799
)
|
(2,655,788
)
|
|
First Trust S-Network Streaming & Gaming ETF
|
—
|
(287,109
)
|
(120,139
)
|
H. Income Taxes
Each Fund intends to continue to qualify as a regulated investment company by complying with the requirements under Subchapter
M of the Internal Revenue Code of 1986, as amended, which includes distributing substantially all of its net investment income
and net realized gains to shareholders. Accordingly, no provision has been made for federal and state income taxes. However, due to
the timing and amount of distributions, each Fund may be subject to an excise tax of 4% of the amount by which approximately 98%
of each Fund’s taxable income exceeds the distributions from such taxable income for the calendar year.
The Funds are subject to accounting standards that establish a minimum threshold for recognizing, and a system for measuring,
the benefits of a tax position taken or expected to be taken in a tax return. For all the Funds, with the exception of BNGE, the
taxable years ended 2020, 2021, 2022, and 2023 remain open to federal and state audit. For BNGE, the taxable period ended 2022 and
year ended 2023 remain open to federal and state audit. As of September 30, 2023, management has evaluated the application of these
standards to the Funds and has determined that no provision for income tax is required in the Funds’ financial statements for uncertain tax positions.
Each Fund intends to utilize provisions of the federal income tax laws, which allow it to carry a realized capital loss forward
indefinitely following the year of the loss and offset such loss against any future realized capital gains. Each Fund is subject
to certain limitations under U.S. tax rules on the use of capital loss carryforwards and net unrealized built-in losses. These limitations
apply when there has been a 50% change in ownership. At March 31, 2023, for federal income tax purposes, each applicable Fund had
a capital loss carryforward available that is shown in the following table, to the extent provided by regulations, to offset
future capital gains. To the extent that these loss carryforwards are used to offset future capital gains, it is probable that the capital
gains so offset will not be distributed to each applicable Fund’s shareholders.
|
|
Non-Expiring
Capital Loss
Carryforwards
|
|
First Trust Nasdaq Bank ETF
|
$148,409,375
|
|
First Trust Nasdaq Food & Beverage ETF
|
63,514,879
|
|
First Trust Nasdaq Oil & Gas ETF
|
93,410,183
|
|
First Trust Nasdaq Pharmaceuticals ETF
|
5,088,267
|
|
First Trust S-Network E-Commerce ETF
|
5,050,919
|
|
First Trust Nasdaq Semiconductor ETF
|
18,825,804
|
|
First Trust Nasdaq Transportation ETF
|
61,692,799
|
|
First Trust S-Network Streaming & Gaming ETF
|
287,109
|
Page 55
Notes to Financial Statements (Continued)
First Trust Exchange-Traded Fund VI
September 30, 2023 (Unaudited)
September 30, 2023 (Unaudited)
As of September 30, 2023, the aggregate cost, gross unrealized appreciation, gross unrealized depreciation, and net unrealized
appreciation/(depreciation) on investments (including short positions and derivatives, if any) for federal income tax purposes
were as follows:
|
|
Tax Cost
|
Gross
Unrealized
Appreciation
|
Gross
Unrealized
(Depreciation)
|
Net Unrealized
Appreciation
(Depreciation)
|
|
First Trust Nasdaq Bank ETF
|
$147,873,140
|
$3,242,089
|
$(25,283,147
)
|
$(22,041,058
)
|
|
First Trust Nasdaq Food & Beverage ETF
|
146,522,792
|
503,750
|
(16,026,636
)
|
(15,522,886
)
|
|
First Trust Nasdaq Oil & Gas ETF
|
234,926,223
|
25,551,940
|
(1,351,463
)
|
24,200,477
|
|
First Trust Nasdaq Pharmaceuticals ETF
|
21,605,282
|
1,060,942
|
(2,220,692
)
|
(1,159,750
)
|
|
First Trust S-Network E-Commerce ETF
|
6,025,543
|
326,040
|
(1,276,923
)
|
(950,883
)
|
|
First Trust Nasdaq Semiconductor ETF
|
1,080,628,170
|
88,364,295
|
(38,156,938
)
|
50,207,357
|
|
First Trust Nasdaq Transportation ETF
|
45,587,546
|
2,054,572
|
(5,634,537
)
|
(3,579,965
)
|
|
First Trust S-Network Streaming & Gaming ETF
|
4,231,793
|
436,902
|
(531,053
)
|
(94,151
)
|
I. Expenses
Expenses, other than the investment advisory fee and other excluded expenses, are paid by the Advisor (see Note 3).
First Trust has entered into licensing agreements with Nasdaq and VettaFi LLC (each, a “Licensor”), as applicable, for the Funds. The respective license agreements allow for the use by First Trust of each Fund’s respective index and of certain trademarks and trade names of the Licensor. The Funds are sub-licensees to the applicable license agreements.
3. Investment Advisory Fee, Affiliated Transactions and Other Fee Arrangements
First Trust, the investment advisor to the Funds, is a limited partnership with one limited partner, Grace Partners of DuPage
L.P., and one general partner, The Charger Corporation. The Charger Corporation is an Illinois corporation controlled by James A. Bowen,
Chief Executive Officer of First Trust. First Trust is responsible for the selection and ongoing monitoring of the securities
in each Fund’s portfolio, managing the Funds’ business affairs and providing certain administrative services necessary for the management of the Funds.
First Trust is responsible for the expenses of each Fund including the cost of transfer agency, custody, fund administration,
licensing fees, legal, audit and other services, but excluding fee payments under the Investment Management Agreement, interest, taxes,
brokerage commissions and other expenses associated with the execution of portfolio transactions, acquired fund fees and expenses,
distribution and service fees pursuant to a Rule 12b-1 plan, if any, and extraordinary expenses, which are paid by each respective
Fund. Prior to May 8, 2023, for all funds except ISHP and BNGE, and June 12, 2023, for ISHP and BNGE, First Trust also provided
fund reporting services to the Funds for a flat annual fee in the amount of $9,250 per Fund, which was covered under the annual
unitary management fee. The annual unitary management fee payable by each Fund to First Trust for these services will be reduced
at certain levels of each Fund’s net assets (“breakpoints”) and calculated pursuant to the following schedules:
|
Breakpoints
|
ISHP
|
BNGE
|
|
Fund net assets up to and including $2.5 billion
|
0.600
%
|
0.7000
%
|
|
Fund net assets greater than $2.5 billion up to and including $5 billion
|
0.585
%
|
0.6825
%
|
|
Fund net assets greater than $5 billion up to and including $7.5 billion
|
0.570
%
|
0.6650
%
|
|
Fund net assets greater than $7.5 billion up to and including $10 billion
|
0.555
%
|
0.6475
%
|
|
Fund net assets greater than $10 billion
|
0.540
%
|
0.6300
%
|
Page 56
Notes to Financial Statements (Continued)
First Trust Exchange-Traded Fund VI
September 30, 2023 (Unaudited)
September 30, 2023 (Unaudited)
For FTXO, FTXG, FTXN, FTXH, FTXL, and FTXR, the annual unitary management fee payable by each Fund will be calculated pursuant to the schedule below:
|
Breakpoints
|
|
|
Fund net assets up to and including $2.5 billion
|
0.600
%
|
|
Fund net assets greater than $2.5 billion up to and including $5 billion
|
0.585
%
|
|
Fund net assets greater than $5 billion up to and including $7.5 billion
|
0.570
%
|
|
Fund net assets greater than $7.5 billion up to and including $10 billion
|
0.555
%
|
|
Fund net assets greater than $10 billion up to and including $15 billion
|
0.540
%
|
|
Fund net assets greater than $15 billion
|
0.510
%
|
Effective May 8, 2023, for all Funds except ISHP and BNGE, and June 12, 2023, for ISHP and BNGE, the Trust has multiple service
agreements with BNYM. Under the service agreements, BNYM performs custodial, fund accounting, certain administrative services,
and transfer agency services for each Fund. As custodian, BNYM is responsible for custody of each Fund’s assets. As fund accountant and administrator, BNYM is responsible for maintaining the books and records of each Fund’s securities and cash. As transfer agent, BNYM is responsible for maintaining shareholder records for each Fund. BNYM is a subsidiary of The Bank of New York Mellon
Corporation, a financial holding company.
Prior to May 8, 2023, for all Funds except ISHP and BNGE, and June 12, 2023, for ISHP and BNGE, the Trust had multiple service
agreements with BBH. Under the service agreements, BBH performed custodial, fund accounting, certain administrative services,
and transfer agency services for each Fund. As custodian, BBH was responsible for custody of each Fund’s assets. As fund accountant and administrator, BBH was responsible for maintaining the books and records of each Fund’s securities and cash. As transfer agent, BBH was responsible for maintaining shareholder records for each Fund.
Each Trustee who is not an officer or employee of First Trust, any sub-advisor or any of their affiliates (“Independent Trustees”) is paid a fixed annual retainer that is allocated equally among each fund in the First Trust Fund Complex. Each Independent Trustee
is also paid an annual per fund fee that varies based on whether the fund is a closed-end or other actively managed fund, a target
outcome fund or an index fund.
Additionally, the Lead Independent Trustee and the Chairs of the Audit Committee, Nominating and Governance Committee and
Valuation Committee are paid annual fees to serve in such capacities, with such compensation allocated pro rata among each
fund in the First Trust Fund Complex based on net assets. Independent Trustees are reimbursed for travel and out-of-pocket expenses
in connection with all meetings. The Lead Independent Trustee and Committee Chairs rotate every three years. The officers and
“Interested” Trustee receive no compensation from the Trust for acting in such capacities.
4. Purchases and Sales of Securities
For the six months ended September 30, 2023, the cost of purchases and proceeds from sales of investments for each Fund, excluding
short-term investments and in-kind transactions, were as follows:
|
|
Purchases
|
Sales
|
|
First Trust Nasdaq Bank ETF
|
$33,740,194
|
$32,898,883
|
|
First Trust Nasdaq Food & Beverage ETF
|
51,667,605
|
55,028,060
|
|
First Trust Nasdaq Oil & Gas ETF
|
26,688,212
|
28,947,544
|
|
First Trust Nasdaq Pharmaceuticals ETF
|
3,718,144
|
3,709,931
|
|
First Trust S-Network E-Commerce ETF
|
981,827
|
1,019,395
|
|
First Trust Nasdaq Semiconductor ETF
|
174,075,470
|
173,240,437
|
|
First Trust Nasdaq Transportation ETF
|
9,658,536
|
9,749,277
|
|
First Trust S-Network Streaming & Gaming ETF
|
537,412
|
520,614
|
For the six months ended September 30, 2023, the cost of in-kind purchases and proceeds from in-kind sales for each Fund were
as follows:
|
|
Purchases
|
Sales
|
|
First Trust Nasdaq Bank ETF
|
$2,648,533
|
$37,717,414
|
|
First Trust Nasdaq Food & Beverage ETF
|
173,358,326
|
935,571,110
|
Page 57
Notes to Financial Statements (Continued)
First Trust Exchange-Traded Fund VI
September 30, 2023 (Unaudited)
September 30, 2023 (Unaudited)
|
|
Purchases
|
Sales
|
|
First Trust Nasdaq Oil & Gas ETF
|
$22,151,787
|
$100,757,015
|
|
First Trust Nasdaq Pharmaceuticals ETF
|
2,666,016
|
14,530,586
|
|
First Trust S-Network E-Commerce ETF
|
—
|
—
|
|
First Trust Nasdaq Semiconductor ETF
|
341,304,187
|
235,340,361
|
|
First Trust Nasdaq Transportation ETF
|
14,907,676
|
21,107,724
|
|
First Trust S-Network Streaming & Gaming ETF
|
—
|
—
|
5. Creations, Redemptions and Transaction Fees
Each Fund generally issues and redeems its shares in primary market transactions through a creation and redemption mechanism
and does not sell or redeem individual shares. Instead, financial entities known as “Authorized Participants” have contractual arrangements with a Fund or one of the Fund’s service providers to purchase and redeem Fund shares directly with the Fund in large blocks of shares known as “Creation Units.” Prior to the start of trading on every business day, a Fund publishes through the National Securities Clearing Corporation the “basket” of securities, cash or other assets that it will accept in exchange for a Creation Unit of the Fund’s shares. An Authorized Participant that wishes to effectuate a creation of a Fund’s shares deposits with the Fund the “basket” of securities, cash or other assets identified by the Fund that day, and then receives the Creation Unit of the Fund’s shares in return for those assets. After purchasing a Creation Unit, the Authorized Participant may continue to hold the Fund’s shares or sell them in the secondary market. The redemption process is the reverse of the purchase process:the Authorized Participant redeems a Creation Unit of a Fund’s shares for a basket of securities, cash or other assets. The combination of the creation and redemption process with secondary market trading in a Fund’s shares and underlying securities provides arbitrage opportunities that are designed to help keep the market price of a Fund’s shares at or close to the NAV per share of the Fund.
Each Fund imposes fees in connection with the purchase of Creation Units. These fees may vary based upon various fact-based
circumstances, including, but not limited to, the composition of the securities included in the Creation Unit or the countries
in which the transactions are settled. The price for each Creation Unit will equal the daily NAV per share of a Fund times the number
of shares in a Creation Unit, plus the fees described above and, if applicable, any operational processing and brokerage costs, transfer
fees, stamp taxes and part or all of the spread between the expected bid and offer side of the market related to the securities
comprising the creation basket.
Each Fund also imposes fees in connection with the redemption of Creation Units. These fees may vary based upon various fact-based
circumstances, including, but not limited to, the composition of the securities included in the Creation Unit or the countries
in which the transactions are settled. The price received for each Creation Unit will equal the daily NAV per share of a Fund times
the number of shares in a Creation Unit, minus the fees described above and, if applicable, any operational processing and brokerage
costs, transfer fees, stamp taxes and part or all of the spread between the expected bid and offer side of the market related to
the securities comprising the redemption basket. Investors who use the services of a broker or other such intermediary in addition to an
Authorized Participant to effect a redemption of a Creation Unit may also be assessed an amount to cover the cost of such services. The
redemption fee charged by a Fund will comply with Rule 22c-2 of the 1940 Act which limits redemption fees to no more than
2% of the value of the shares redeemed.
6. Distribution Plan
The Board of Trustees adopted a Distribution and Service Plan pursuant to Rule 12b-1 under the 1940 Act. In accordance with
the Rule 12b-1 plan, the Funds are authorized to pay an amount up to 0.25% of their average daily net assets each year to reimburse
First Trust Portfolios L.P. (“FTP”), the distributor of the Funds, for amounts expended to finance activities primarily intended to result in the sale of Creation Units or the provision of investor services. FTP may also use this amount to compensate securities dealers
or other persons that are Authorized Participants for providing distribution assistance, including broker-dealer and shareholder support
and educational and promotional services.
No 12b-1 fees are currently paid by the Funds, and pursuant to a contractual arrangement, no 12b-1 fees will be paid any time
before July 31, 2024.
7. Indemnification
The Trust, on behalf of the Funds, has a variety of indemnification obligations under contracts with its service providers. The Trust’s maximum exposure under these arrangements is unknown. However, the Trust has not had prior claims or losses pursuant to these
contracts and expects the risk of loss to be remote.
Page 58
Notes to Financial Statements (Continued)
First Trust Exchange-Traded Fund VI
September 30, 2023 (Unaudited)
September 30, 2023 (Unaudited)
8. Subsequent Events
Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were issued
and has determined that there were no subsequent events requiring recognition or disclosure in the financial statements that have
not already been disclosed.
Page 59
Additional Information
First Trust Exchange-Traded Fund VI
September 30, 2023 (Unaudited)
September 30, 2023 (Unaudited)
Proxy Voting Policies and Procedures
A description of the policies and procedures that the Trust uses to determine how to vote proxies and information on how each
Fund voted proxies relating to its portfolio securities during the most recent 12-month period ended June 30 is available (1) without
charge, upon request, by calling (800) 988-5891; (2) on each Fund’s website at www.ftportfolios.com; and (3) on the Securities and Exchange Commission’s (“SEC”) website at www.sec.gov.
Portfolio Holdings
Each Fund files portfolio holdings information for each month in a fiscal quarter within 60 days after the end of the relevant
fiscal quarter on Form N-PORT. Portfolio holdings information for the third month of each fiscal quarter will be publicly available
on the SEC’s website at www.sec.gov. Each Fund’s complete schedule of portfolio holdings for the second and fourth quarters of each fiscal year is included in the semi-annual and annual reports to shareholders, respectively, and is filed with the SEC on Form N-CSR.
The semi-annual and annual report for each Fund is available to investors within 60 days after the period to which it relates. Each Fund’s Forms N-PORT and Forms N-CSR are available on the SEC’s website listed above.
Risk Considerations
Risks are inherent in all investing. Certain general risks that may be applicable to a Fund are identified below, but not
all of the material risks relevant to each Fund are included in this report and not all of the risks below apply to each Fund. The
material risks of investing in each Fund are spelled out in its prospectus, statement of additional information and other
regulatory filings. Before investing, you should consider each Fund’s investment objective, risks, charges and expenses, and read each Fund’s prospectus and statement of additional information carefully. You can download each Fund’s prospectus at www.ftportfolios.com or contact First Trust Portfolios L.P. at (800) 621-1675 to request a prospectus, which contains this and other information about each Fund.
Concentration Risk. To the extent that a fund is able to invest a significant percentage of its assets in a single asset class or the securities of issuers within the same country, state, region, industry or sector, an adverse economic, business or political
development may affect the value of the fund’s investments more than if the fund were more broadly diversified. A fund that tracks an index will be concentrated to the extent the fund’s corresponding index is concentrated. A concentration makes a fund more susceptible to any single occurrence and may subject the fund to greater market risk than a fund that is more broadly diversified.
Credit Risk. Credit risk is the risk that an issuer of a security will be unable or unwilling to make dividend, interest and/or principal
payments when due and the related risk that the value of a security may decline because of concerns about the issuer’s ability to make such payments.
Cyber Security Risk. The funds are susceptible to potential operational risks through breaches in cyber security. A breach in cyber security refers to both intentional and unintentional events that may cause a fund to lose proprietary information, suffer
data corruption or lose operational capacity. Such events could cause a fund to incur regulatory penalties, reputational damage, additional
compliance costs associated with corrective measures and/or financial loss. In addition, cyber security breaches of a fund’s third-party service providers, such as its administrator, transfer agent, custodian, or sub-advisor, as applicable, or issuers in which the fund
invests, can also subject a fund to many of the same risks associated with direct cyber security breaches.
Defined Outcome Funds Risk. To the extent a fund’s investment strategy is designed to deliver returns tied to the price performance of an underlying ETF, an investor may not realize the returns the fund seeks to achieve if that investor does not hold shares
for the entire target outcome period. In the event an investor purchases shares after the first day of the target outcome period or
sells shares prior to the end of the target outcome period, the buffer that the fund seeks to provide against a decline in the value of
the underlying ETF may not be available, the enhanced returns that the fund seeks to provide (if any) may not be available and the investor
may not participate in a gain in the value of the underlying ETF up to the cap for the investor’s investment period. Additionally, the fund will not participate in gains of the underlying ETF above the cap and a shareholder may lose their entire investment. If the fund
seeks enhanced returns, there are certain time periods when the value of the fund may fall faster than the value of the underlying
ETF, and it is very unlikely that, on any given day during which the underlying ETF share price increases in value, the fund’s share price will increase at the same rate as the enhanced returns sought by the fund, which is designed for an entire target outcome period.
Trading flexible exchange options involves risks different from, or possibly greater than, the risks associated with investing directly
in securities, such as less liquidity and correlation and valuation risks. A fund may experience substantial downside from specific
flexible exchange option positions and certain positions may expire worthless.
Page 60
Additional Information (Continued)
First Trust Exchange-Traded Fund VI
September 30, 2023 (Unaudited)
September 30, 2023 (Unaudited)
Derivatives Risk. To the extent a fund uses derivative instruments such as futures contracts, options contracts and swaps, the fund may experience losses because of adverse movements in the price or value of the underlying asset, index or rate, which may
be magnified by certain features of the derivative. These risks are heightened when a fund’s portfolio managers use derivatives to enhance the fund’s return or as a substitute for a position or security, rather than solely to hedge (or offset) the risk of a position or security held by the fund.
Equity Securities Risk. To the extent a fund invests in equity securities, the value of the fund’s shares will fluctuate with changes in the value of the equity securities. Equity securities prices fluctuate for several reasons, including changes in investors’ perceptions of the financial condition of an issuer or the general condition of the relevant stock market, such as market volatility, or
when political or economic events affecting the issuers occur. In addition, common stock prices may be particularly sensitive to rising interest
rates, as the cost of capital rises and borrowing costs increase. Equity securities may decline significantly in price over short or
extended periods of time, and such declines may occur in the equity market as a whole, or they may occur in only a particular country,
company, industry or sector of the market.
ETF Risk. The shares of an ETF trade like common stock and represent an interest in a portfolio of securities. The risks of owning
an ETF generally reflect the risks of owning the underlying securities, although lack of liquidity in an ETF could result in
it being more volatile and ETFs have management fees that increase their costs. Shares of an ETF trade on an exchange at market prices rather
than net asset value, which may cause the shares to trade at a price greater than net asset value (premium) or less than net asset
value (discount). In times of market stress, decisions by market makers to reduce or step away from their role of providing a market
for an ETF’s shares, or decisions by an ETF’s authorized participants that they are unable or unwilling to proceed with creation and/or redemption orders of an ETF’s shares, could result in shares of the ETF trading at a discount to net asset value and in greater than normal intraday bid-ask spreads.
Fixed Income Securities Risk. To the extent a fund invests in fixed income securities, the fund will be subject to credit risk, income risk, interest rate risk, liquidity risk and prepayment risk. Income risk is the risk that income from a fund’s fixed income investments could decline during periods of falling interest rates. Interest rate risk is the risk that the value of a fund’s fixed income securities will decline because of rising interest rates. Liquidity risk is the risk that a security cannot be purchased or sold at the time
desired, or cannot be purchased or sold without adversely affecting the price. Prepayment risk is the risk that the securities will be
redeemed or prepaid by the issuer, resulting in lower interest payments received by the fund. In addition to these risks, high yield securities,
or “junk” bonds, are subject to greater market fluctuations and risk of loss than securities with higher ratings, and the market for high yield securities is generally smaller and less liquid than that for investment grade securities.
Index or Model Constituent Risk. Certain funds may be a constituent of one or more indices or ETF models. As a result, such a fund may be included in one or more index-tracking exchange-traded funds or mutual funds. Being a component security of such a
vehicle could greatly affect the trading activity involving a fund, the size of the fund and the market volatility of the fund. Inclusion
in an index could increase demand for the fund and removal from an index could result in outsized selling activity in a relatively
short period of time. As a result, a fund’s net asset value could be negatively impacted and the fund’s market price may be significantly below its net asset value during certain periods. In addition, index rebalances may potentially result in increased trading
activity in a fund’s shares.
Index Provider Risk. To the extent a fund seeks to track an index, it is subject to Index Provider Risk. There is no assurance that the Index Provider will compile the Index accurately, or that the Index will be determined, maintained, constructed, reconstituted,
rebalanced, composed, calculated or disseminated accurately. To correct any such error, the Index Provider may carry out an
unscheduled rebalance or other modification of the Index constituents or weightings, which may increase the fund’s costs. The Index Provider does not provide any representation or warranty in relation to the quality, accuracy or completeness of data in the
Index, and it does not guarantee that the Index will be calculated in accordance with its stated methodology. Losses or costs associated
with any Index Provider errors generally will be borne by the fund and its shareholders.
Investment Companies Risk. To the extent a fund invests in the securities of other investment vehicles, the fund will incur additional fees and expenses that would not be present in a direct investment in those investment vehicles. Furthermore, the fund’s investment performance and risks are directly related to the investment performance and risks of the investment vehicles in which the
fund invests.
LIBOR Risk. To the extent a fund invests in floating or variable rate obligations that use the London Interbank Offered Rate (“LIBOR”) as a reference interest rate, it is subject to LIBOR Risk. The United Kingdom’s Financial Conduct Authority, which regulates LIBOR, has ceased making LIBOR available as a reference rate over a phase-out period that began December 31, 2021.
Page 61
Additional Information (Continued)
First Trust Exchange-Traded Fund VI
September 30, 2023 (Unaudited)
September 30, 2023 (Unaudited)
There is no assurance that any alternative reference rate, including the Secured Overnight Financing Rate (“SOFR”) will be similar to or produce the same value or economic equivalence as LIBOR or that instruments using an alternative rate will have the same
volume or liquidity. The unavailability or replacement of LIBOR may affect the value, liquidity or return on certain fund investments
and may result in costs incurred in connection with closing out positions and entering into new trades. Any potential effects of the
transition away from LIBOR on the fund or on certain instruments in which the fund invests can be difficult to ascertain, and they may
vary depending on a variety of factors, and they could result in losses to the fund.
Management Risk. To the extent that a fund is actively managed, it is subject to management risk. In managing an actively-managed fund’s investment portfolio, the fund’s portfolio managers will apply investment techniques and risk analyses that may not have the desired result. There can be no guarantee that a fund will meet its investment objective.
Market Risk. Market risk is the risk that a particular security, or shares of a fund in general, may fall in value. Securities held by
a fund, as well as shares of a fund itself, are subject to market fluctuations caused by factors such as general economic conditions,
political events, regulatory or market developments, changes in interest rates and perceived trends in securities prices.
Shares of a fund could decline in value or underperform other investments as a result of the risk of loss associated with these market fluctuations.
In addition, local, regional or global events such as war, acts of terrorism, spread of infectious diseases or other public health
issues, recessions, or other events could have a significant negative impact on a fund and its investments. Such events may affect
certain geographic regions, countries, sectors and industries more significantly than others. In February 2022, Russia invaded Ukraine
which has caused and could continue to cause significant market disruptions and volatility within the markets in Russia, Europe,
and the United States. The hostilities and sanctions resulting from those hostilities could have a significant impact on certain fund
investments as well as fund performance. The COVID-19 global pandemic and the ensuing policies enacted by governments and central banks
have caused and may continue to cause significant volatility and uncertainty in global financial markets. While the U.S. has
resumed “reasonably” normal business activity, many countries continue to impose lockdown measures. Additionally, there is no guarantee that vaccines will be effective against emerging variants of the disease. These events also adversely affect the prices and liquidity
of a fund’s portfolio securities or other instruments and could result in disruptions in the trading markets. Any of such circumstances could have a materially negative impact on the value of a fund’s shares and result in increased market volatility. During any such events, a fund’s shares may trade at increased premiums or discounts to their net asset value and the bid/ask spread on a fund’s shares may widen.
Non-U.S. Securities Risk. To the extent a fund invests in non-U.S. securities, it is subject to additional risks not associated with securities of domestic issuers. Non-U.S. securities are subject to higher volatility than securities of domestic issuers due
to:possible adverse political, social or economic developments; restrictions on foreign investment or exchange of securities; capital
controls; lack of liquidity; currency exchange rates; excessive taxation; government seizure of assets; the imposition of sanctions by foreign
governments; different legal or accounting standards; and less government supervision and regulation of exchanges in foreign
countries. Investments in non-U.S. securities may involve higher costs than investments in U.S. securities, including higher
transaction and custody costs, as well as additional taxes imposed by non-U.S. governments. These risks may be heightened for securities
of companies located, or with significant operations, in emerging market countries.
Operational Risk. Each fund is subject to risks arising from various operational factors, including, but not limited to, human error, processing and communication errors, errors of a fund’s service providers, counterparties or other third-parties, failed or inadequate processes and technology or systems failures. Each fund relies on third-parties for a range of services, including custody.
Any delay or failure relating to engaging or maintaining such service providers may affect a fund’s ability to meet its investment objective. Although the funds and the funds’ investment advisor seek to reduce these operational risks through controls and procedures, there is no way to completely protect against such risks.
Passive Investment Risk. To the extent a fund seeks to track an index, the fund will invest in the securities included in, or representative of, the index regardless of their investment merit. A fund generally will not attempt to take defensive positions
in declining markets.
Preferred Securities Risk. Preferred securities combine some of the characteristics of both common stocks and bonds. Preferred securities are typically subordinated to bonds and other debt securities in a company’s capital structure in terms of priority to corporate income, subjecting them to greater credit risk than those debt securities. Generally, holders of preferred securities have
no voting rights with respect to the issuing company unless preferred dividends have been in arrears for a specified number of periods,
at which time the preferred security holders may obtain limited rights. In certain circumstances, an issuer of preferred securities
may defer
Page 62
Additional Information (Continued)
First Trust Exchange-Traded Fund VI
September 30, 2023 (Unaudited)
September 30, 2023 (Unaudited)
payment on the securities and, in some cases, redeem the securities prior to a specified date. Preferred securities may also
be substantially less liquid than other securities, including common stock.
Valuation Risk. The valuation of certain securities may carry more risk than that of common stock. Uncertainties in the conditions of the financial markets, unreliable reference data, lack of transparency and inconsistency of valuation models and processes
may lead to inaccurate asset pricing. A fund may hold investments in sizes smaller than institutionally sized round lot positions (sometimes
referred to as odd lots). However, third-party pricing services generally provide evaluations on the basis of institutionally-sized
round lots. If a fund sells certain of its investments in an odd lot transaction, the sale price may be less than the value at which
such securities have been held by the fund. Odd lots often trade at lower prices than institutional round lots. There is no assurance that
the fund will be able to sell a portfolio security at the price established by the pricing service, which could result in a loss to the
fund.
NOT FDIC INSURED NOT BANK GUARANTEED MAY LOSE VALUE
Advisory Agreements
Board Considerations Regarding Approval of the Continuation of the Investment Management Agreements
The Board of Trustees of First Trust Exchange-Traded Fund VI (the “Trust”), including the Independent Trustees, unanimously approved the continuation of the Investment Management Agreements (as applicable to a specific Fund, the “Agreement” and collectively, the “Agreements”) with First Trust Advisors L.P. (the “Advisor”) on behalf of the following series of the Trust (each a “Fund” and collectively, the “Funds”):
|
First Trust Nasdaq Bank ETF (FTXO)
|
|
First Trust Nasdaq Food & Beverage ETF (FTXG)
|
|
First Trust Nasdaq Oil & Gas ETF (FTXN)
|
|
First Trust Nasdaq Pharmaceuticals ETF (FTXH)
|
|
First Trust S-Network E-Commerce ETF (ISHP)
|
|
First Trust Nasdaq Semiconductor ETF (FTXL)
|
|
First Trust Nasdaq Transportation ETF (FTXR)
|
|
First Trust S-Network Streaming & Gaming ETF (BNGE)
|
The Board approved the continuation of the Agreement for BNGE for a period ending June 30, 2023 at a meeting held on April
17, 2023 and approved the continuation of the Agreement for each Fund, including BNGE, for a one-year period ending June 30, 2024
at a meeting held on June 4–5, 2023. The Board determined for each Fund that the continuation of the Agreement is in the best interests of the Fund in light of the nature, extent and quality of the services provided and such other matters as the Board considered
to be relevant in the exercise of its business judgment.
To reach this determination for each Fund, the Board considered its duties under the Investment Company Act of 1940, as amended
(the “1940 Act”), as well as under the general principles of state law, in reviewing and approving advisory contracts; the requirements of the 1940 Act in such matters; the fiduciary duty of investment advisors with respect to advisory agreements and compensation;
the standards used by courts in determining whether investment company boards have fulfilled their duties; and the factors to
be considered by the Board in voting on such agreements. At meetings held on April 17, 2023 and June 4–5, 2023, the Board, including the Independent Trustees, reviewed materials provided by the Advisor responding to requests for information from counsel to
the Independent Trustees, submitted on behalf of the Independent Trustees, that, among other things, outlined:the services provided by the Advisor to each Fund (including the relevant personnel responsible for these services and their experience); the unitary
fee rate schedule payable by each Fund as compared to fees charged to a peer group of funds (the “Expense Group”) and a broad peer universe of funds (the “Expense Universe”), each assembled by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent source, and as compared to fees charged to other clients of the Advisor, including other exchange-traded funds (“ETFs”) managed by the Advisor; the expense ratio of each Fund as compared to expense ratios of the funds in the Fund’s Expense Group and Expense Universe; performance information for each Fund, including, for each Fund except BNGE, comparisons of each Fund’s performance to that of one or more relevant benchmark indexes and to that of a performance group of funds and a broad performance universe
of funds (the “Performance Universe”), each assembled by Broadridge; the nature of expenses incurred in providing services to each Fund and the potential for the Advisor to realize economies of scale, if any; profitability and other financial data for the
Advisor; any indirect benefits to the Advisor and its affiliate, First Trust Portfolios L.P. (“FTP”); and information on the Advisor’s compliance program. The Board reviewed initial materials with the Advisor at the meeting held on April 17, 2023, prior to which the
Independent Trustees and their counsel met separately to discuss the information provided by the Advisor. Also at the April meeting,
the Board
Page 63
Additional Information (Continued)
First Trust Exchange-Traded Fund VI
September 30, 2023 (Unaudited)
September 30, 2023 (Unaudited)
approved the continuation of the Agreement for BNGE for a period ending June 30, 2023. The Board considered that the initial
term of the Agreement for BNGE would expire prior to the June 4–5, 2023 meeting when the annual continuation of the advisory contracts for the funds in the First Trust Fund Complex would be considered, that the continuation of the Agreement for BNGE to June
30, 2023 would align the term of the Agreement for BNGE with the terms of the Agreements for the other Funds and that the Board would
consider the continuation of the Agreement for BNGE for an additional one-year period at the June meeting.
Following the April meeting, counsel to the Independent Trustees, on behalf of the Independent Trustees, requested certain
clarifications and supplements to the materials provided, and the information provided in response to those requests was considered
at an executive session of the Independent Trustees and their counsel held prior to the June 4–5, 2023 meeting, as well as at the June meeting. The Board applied its business judgment to determine whether the arrangement between the Trust and the Advisor continues
to be a reasonable business arrangement from each Fund’s perspective. The Board determined that, given the totality of the information provided with respect to the Agreements, the Board had received sufficient information to renew the Agreements.
The Board considered that shareholders chose to invest or remain invested in a Fund knowing that the Advisor manages the Fund
and knowing the Fund’s unitary fee.
In reviewing the Agreement for each Fund, the Board considered the nature, extent and quality of the services provided by
the Advisor under the Agreement. The Board considered that the Advisor is responsible for the overall management and administration of
the Trust and each Fund and reviewed all of the services provided by the Advisor to the Funds, as well as the background and experience
of the persons responsible for such services. In reviewing the services provided, the Board noted the compliance program
that had been developed by the Advisor and considered that it includes a robust program for monitoring the Advisor’s and each Fund’s compliance with the 1940 Act, as well as each Fund’s compliance with its investment objective, policies and restrictions. The Board also considered a report from the Advisor with respect to its risk management functions related to the operation of the Funds.
Finally, as part of the Board’s consideration of the Advisor’s services, the Advisor, in its written materials and at the April 17, 2023 meeting, described to the Board the scope of its ongoing investment in additional personnel and infrastructure to maintain and improve
the quality of services provided to the Funds and the other funds in the First Trust Fund Complex. In light of the information
presented and the considerations made, the Board concluded that the nature, extent and quality of the services provided to the Trust
and each Fund by the Advisor under the Agreements have been and are expected to remain satisfactory and that the Advisor has managed
each Fund consistent with its investment objective, policies and restrictions.
The Board considered the unitary fee rate schedule payable by each Fund under the applicable Agreement for the services provided.
The Board considered that as part of the unitary fee the Advisor is responsible for each Fund’s expenses, including the cost of transfer agency, custody, fund administration, legal, audit and other services and license fees, if any, but excluding the fee payment
under the applicable Agreement and interest, taxes, brokerage commissions and other expenses connected with the execution of portfolio
transactions, distribution and service fees pursuant to a Rule 12b-1 plan, if any, and extraordinary expenses, if any. The
Board received and reviewed information showing the fee rates and expense ratios of the peer funds in the Expense Groups, as well
as advisory and unitary fee rates charged by the Advisor to other fund (including ETFs) and non-fund clients, as applicable.
Because each Fund pays a unitary fee, the Board determined that expense ratios were the most relevant comparative data point. Based
on the information provided, the Board noted that the total (net) expense ratio for ISHP was below the median total (net) expense
ratio of the peer funds in its Expense Group and that the total (net) expense ratio for each other Fund was above the median total (net)
expense ratio of the peer funds in its respective Expense Group. With respect to the Expense Groups, the Board, at the April 17,
2023 meeting, discussed with Broadridge its methodology for assembling peer groups and discussed with the Advisor limitations in creating
peer groups for index ETFs, including differences in underlying indexes and index-tracking methodologies that can result in greater
management complexities across seemingly comparable ETFs, and different business models that may affect the pricing of services
among ETF sponsors. The Board took these limitations and differences into account in considering the peer data. With respect
to fees charged to other non-ETF clients, the Board considered differences between the Funds and other non-ETF clients that limited
their comparability. In considering the unitary fee rate schedules overall, the Board also considered the Advisor’s statement that it seeks to meet investor needs through innovative and value-added investment solutions and the Advisor’s demonstrated long-term commitment to each Fund and the other funds in the First Trust Fund Complex.
The Board considered performance information for each Fund. The Board noted the process it has established for monitoring
each Fund’s performance and portfolio risk on an ongoing basis, which includes quarterly performance reporting from the Advisor for the Funds. The Board determined that this process continues to be effective for reviewing each Fund’s performance. For each Fund except BNGE, the Board received and reviewed information for periods ended December 31, 2022 regarding the performance of
each Fund’s underlying index, the correlation between each Fund’s performance and that of its underlying index, each Fund’s tracking difference and each Fund’s excess return as compared to its benchmark index. With respect to ISHP, the Board noted that during
Page 64
Additional Information (Continued)
First Trust Exchange-Traded Fund VI
September 30, 2023 (Unaudited)
September 30, 2023 (Unaudited)
2021, it approved changes to the Fund’s investment objective and, effective January 26, 2022, the Fund changed its name and ticker symbol and began tracking the S-Network Global E-Commerce Index, and that the performance information included a blend of
the old and new indexes. Based on the information provided and its ongoing review of performance, the Board concluded that each
applicable Fund was correlated to its underlying index and that the tracking difference for each Fund was within a reasonable
range. In addition, the Board reviewed data prepared by Broadridge comparing each Fund’s performance to that of its respective Performance Universe and to that of a broad-based benchmark index. However, given each Fund’s objective of seeking investment results that correspond generally to the performance of its underlying index, the Board placed more emphasis on its review of correlation
and tracking difference. Because BNGE commenced operations on January 25, 2022 and therefore has a limited performance history,
comparative performance information for BNGE was not reviewed.
On the basis of all the information provided on the unitary fee and performance, as applicable, of each Fund and the ongoing
oversight by the Board, the Board concluded that the unitary fee for each Fund continues to be reasonable and appropriate in light of
the nature, extent and quality of the services provided by the Advisor to each Fund under the Agreements.
The Board considered information and discussed with the Advisor whether there were any economies of scale in connection with
providing advisory services to the Funds at current asset levels and whether the Funds may benefit from any economies of scale.
The Board noted that the unitary fee rate schedule for each Fund includes breakpoints pursuant to which the unitary fee rate will
be reduced as assets of the Fund meet certain thresholds. The Board considered the Advisor’s statement that it believes that its expenses relating to providing advisory services to the Funds will increase during the next twelve months as the Advisor continues
to build infrastructure and add new staff. The Board also noted that under the unitary fee structure, any reduction in expenses associated
with the management and operations of the Funds would benefit the Advisor, but that the unitary fee structure provides a level
of certainty in expenses for shareholders of the Funds. The Board concluded that the unitary fee rate schedule for each Fund reflects
an appropriate level of sharing of any economies of scale that may be realized in the management of the Fund at current asset
levels. The Board considered the revenues and allocated costs (including the allocation methodology) of the Advisor in serving as investment
advisor to each Fund except BNGE for the twelve months ended December 31, 2022 and to BNGE for the period from inception through December 31, 2022 and the estimated profitability level for each Fund calculated by the Advisor based on such data,
as well as complex-wide and product-line profitability data, for the twelve months ended December 31, 2022. The Board noted the inherent
limitations in the profitability analysis and concluded that, based on the information provided, the Advisor’s profitability level for each Fund was not unreasonable. In addition, the Board considered indirect benefits described by the Advisor that may be realized
from its relationship with the Funds. The Board considered that the Advisor had identified as an indirect benefit to the Advisor and
FTP their exposure to investors and brokers who, absent their exposure to the Funds, may have had no dealings with the Advisor or FTP,
and noted that the Advisor does not utilize soft dollars in connection with the Funds. The Board also considered the Advisor’s compensation for fund reporting services provided to each Fund pursuant to a separate Fund Reporting Services Agreement, which
is paid from the unitary fee. The Board concluded that the character and amount of potential indirect benefits to the Advisor
were not unreasonable.
Based on all of the information considered and the conclusions reached, the Board, including the Independent Trustees, unanimously
determined that the terms of the Agreements continue to be fair and reasonable and that the continuation of the Agreements
is in the best interests of each Fund. No single factor was determinative in the Board’s analysis.
Liquidity Risk Management Program
In accordance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “1940 Act”), the Funds and each other fund in the First Trust Fund Complex, other than the closed-end funds, have adopted and implemented a liquidity risk management
program (the “Program”) reasonably designed to assess and manage the funds’ liquidity risk, i.e., the risk that a fund could not meet requests to redeem shares issued by the fund without significant dilution of remaining investors’ interests in the fund. The Board of Trustees of the First Trust Funds has appointed First Trust Advisors, L.P. (the “Advisor”) as the person designated to administer the Program, and in this capacity the Advisor performs its duties primarily through the activities and efforts of the First Trust
Liquidity Committee (the “Liquidity Committee”).
Pursuant to the Program, the Liquidity Committee classifies the liquidity of each fund’s portfolio investments into one of the four liquidity categories specified by Rule 22e-4: highly liquid investments, moderately liquid investments, less liquid investments
and illiquid investments. The Liquidity Committee determines certain of the inputs for this classification process, including
reasonably anticipated trade sizes and significant investor dilution thresholds. The Liquidity Committee also determines and periodically
reviews
Page 65
Additional Information (Continued)
First Trust Exchange-Traded Fund VI
September 30, 2023 (Unaudited)
September 30, 2023 (Unaudited)
a highly liquid investment minimum for certain funds, monitors the funds’ holdings of assets classified as illiquid investments to seek to ensure they do not exceed 15% of a fund’s net assets and establishes policies and procedures regarding redemptions in kind.
At the April 17, 2023 meeting of the Board of Trustees, as required by Rule 22e-4 and the Program, the Advisor provided the
Board with a written report prepared by the Advisor that addressed the operation of the Program during the period from March 17,
2022 through the Liquidity Committee’s annual meeting held on March 23, 2023 and assessed the Program’s adequacy and effectiveness of implementation during this period, including the operation of the highly liquid investment minimum for each fund that is required
under the Program to have one, and any material changes to the Program. Note that because the Funds primarily hold assets
that are highly liquid investments, the Funds have not adopted any highly liquid investment minimums.
As stated in the written report, during the review period, two funds breached the 15% limitation on illiquid investments for
one day each, as a result of an unscheduled week-long closure of the stock exchange in Istanbul following devastating earthquakes
in February, causing all Turkish equities to be re-classified as “illiquid” for one day. Each fund filed a Form N-RN on the day after the breach occurred, and one day later after the breach was cured. No fund with a highly liquid investment minimum breached that minimum
during the reporting period. The Advisor concluded that each fund’s investment strategy is appropriate for an open-end fund; that the Program operated effectively in all material respects during the review period; and that the Program is reasonably designed
to assess and manage the liquidity risk of each fund and to maintain compliance with Rule 22e-4.
Page 66
First Trust Exchange-Traded Fund VI
INVESTMENT ADVISOR
First Trust Advisors L.P.
120 East Liberty Drive, Suite 400
Wheaton, IL 60187
120 East Liberty Drive, Suite 400
Wheaton, IL 60187
ADMINISTRATOR, CUSTODIAN,
FUND ACCOUNTANT &
TRANSFER AGENT
FUND ACCOUNTANT &
TRANSFER AGENT
The Bank of New York Mellon
240 Greenwich Street
New York, NY 10286
240 Greenwich Street
New York, NY 10286
INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
PUBLIC ACCOUNTING FIRM
Deloitte & Touche LLP
111 South Wacker Drive
Chicago, IL 60606
111 South Wacker Drive
Chicago, IL 60606
LEGAL COUNSEL
Chapman and Cutler LLP
320 South Canal Street
Chicago, IL 60606
320 South Canal Street
Chicago, IL 60606
Semi-Annual Report
For the Six Months Ended
September 30, 2023
September 30, 2023
First Trust Exchange-Traded Fund VI
|
Emerging Markets Equity Select ETF (RNEM)
|
|
Large Cap US Equity Select ETF (RNLC)
|
|
Mid Cap US Equity Select ETF (RNMC)
|
|
Small Cap US Equity Select ETF (RNSC)
|
|
US Equity Dividend Select ETF (RNDV)
|
Table of Contents
First Trust Exchange-Traded Fund VI
Semi-Annual Report
September 30, 2023
Semi-Annual Report
September 30, 2023
|
2
|
|
|
3
|
|
|
4
|
|
|
6
|
|
|
8
|
|
|
10
|
|
|
12
|
|
|
14
|
|
|
15
|
|
|
16
|
|
|
21
|
|
|
27
|
|
|
33
|
|
|
39
|
|
|
44
|
|
|
46
|
|
|
48
|
|
|
50
|
|
|
55
|
|
|
65
|
Caution Regarding Forward-Looking Statements
This report contains certain forward-looking statements within the meaning of the Securities Act of 1933, as amended, and
the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements regarding the goals, beliefs, plans
or current expectations of First Trust Advisors L.P. (“First Trust” or the “Advisor”) and its representatives, taking into account the information currently available to them. Forward-looking statements include all statements that do not relate solely to current
or historical fact. For example, forward-looking statements include the use of words such as “anticipate,” “estimate,” “intend,” “expect,” “believe,” “plan,” “may,” “should,” “would” or other words that convey uncertainty of future events or outcomes.
Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results,
performance or achievements of any series of First Trust Exchange-Traded Fund VI (the “Trust”) described in this report (each such series is referred to as a “Fund” and collectively, as the “Funds”) to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. When evaluating the information included in this report,
you are cautioned not to place undue reliance on these forward-looking statements, which reflect the judgment of the Advisor and
its representatives only as of the date hereof. We undertake no obligation to publicly revise or update these forward-looking
statements to reflect events and circumstances that arise after the date hereof.
Performance and Risk Disclosure
There is no assurance that any Fund described in this report will achieve its investment objective. Each Fund is subject to
market risk, which is the possibility that the market values of securities owned by the Fund will decline and that the value of the Fund’s shares may therefore be less than what you paid for them. Accordingly, you can lose money by investing in a Fund. See “Risk Considerations” in the Additional Information section of this report for a discussion of certain other risks of investing in the Funds.
Performance data quoted represents past performance, which is no guarantee of future results, and current performance may
be lower or higher than the figures shown. For the most recent month-end performance figures, please visit www.ftportfolios.com or speak with your financial advisor. Investment returns, net asset value and share price will fluctuate and Fund shares, when sold, may
be worth more or less than their original cost.
The Advisor may also periodically provide additional information on Fund performance on each Fund’s webpage at www.ftportfolios.com.
How to Read This Report
This report contains information that may help you evaluate your investment. It includes details about each Fund and presents
data and analysis that provide insight into each Fund’s performance and investment approach.
By reading the market overview by Robert F. Carey, Chief Market Strategist of the Advisor, you may obtain an understanding
of how the market environment affected the performance of each Fund. The statistical information that follows may help you understand
each Fund’s performance compared to that of relevant market benchmarks.
It is important to keep in mind that the opinions expressed by personnel of the Advisor are just that:informed opinions. They should not be considered to be promises or advice. The opinions, like the statistics, cover the period through the date on the cover
of this report. The material risks of investing in each Fund are spelled out in its prospectus, statement of additional information,
and other Fund regulatory filings.
Page 1
Shareholder Letter
First Trust Exchange-Traded Fund VI
Semi-Annual Letter from the Chairman and CEO
September 30, 2023
Semi-Annual Letter from the Chairman and CEO
September 30, 2023
Dear Shareholders,
First Trust is pleased to provide you with the semi-annual report for certain series of the First Trust Exchange-Traded Fund
VI (the “Funds”), which contains detailed information about the Funds for the six months ended September 30, 2023.
A famous financial industry quote came to mind as I was sizing up the current business climate:“Wall Street has a few prudent principles; the trouble is that they are always forgotten when they are most needed.” The past year has been a time when those who stuck with their principles were rewarded, in my opinion. The financial markets continue to battle a myriad of headwinds,
from geopolitical uncertainty resulting from war (Israel and Hamas and the conflict between Russia and Ukraine), to slowing global
economic growth and inflation. Inflation, for one, has remained persistently high. A common measure of inflation is the 12-month
rate of change in the Consumer Price Index (“CPI”). The CPI stood at 3.7% on September 30, 2023, significantly lower than its most recent high of 9.1% set on June 30, 2022, but up from its most recent low of 3.0% on June 30, 2023. Considering this, as well
as other better-than-expected economic data, the Federal Reserve recently noted that the Federal Funds target rate will need to remain
elevated for a longer period than previously expected.
As many investors are likely aware, a higher Federal Funds target rate has deep implications for consumers. Perhaps the most
obvious area impacted by higher rates is housing. The national average for a 30-year mortgage stood at 7.99% as of October 18, 2023,
up from 3.22% on October 20, 2021. Higher mortgage rates, coupled with high home prices, are stretching U.S. home affordability. The
monthly payment on a median-priced home ($407,100 in August 2023) with a 20% down payment, and a mortgage rate of 7.99%, comes in at $2,387. It is not just mortgage rates that are pressuring the budgets of U.S. households. Debt payments on car
loans and credit cards are showing signs of weakness as well. Data from the Federal Reserve Bank of New York revealed that the rate
of new credit card and new auto loan delinquencies stood at 7.2% and 7.3%, respectively, in the second quarter of 2023 (most recent
data), surpassing pre-pandemic levels.
While headwinds to the global economy exist, not all the news is bad. Driven by technological developments in artificial intelligence,
the U.S. equity markets have had a phenomenal year. Year-to-date through September 30, 2023, the S&P 500® Index has enjoyed a total return of 13.07%. Additionally, the U.S. exported a record 20.4 billion cubic feet per day (“Bcf/d”) of natural gas and 11.6 Bcf/d of liquefied natural gas (“LNG”) over the first six months of the year, making the U.S. the world’s largest exporter of LNG during the period. It can be tempting to deviate from fundamentals when times get tough, but we continue to encourage investors to hold
fast to their principles; they will serve you for years to come.
Thank you for giving First Trust the opportunity to play a role in your financial future. We value our relationship with you
and will report on the Funds again in six months.
Sincerely,
James A. Bowen
Chairman of the Board of Trustees
Chief Executive Officer of First Trust Advisors L.P.
Chairman of the Board of Trustees
Chief Executive Officer of First Trust Advisors L.P.
Page 2
Market Overview
First Trust Exchange-Traded Fund VI
Semi-Annual Report
September 30, 2023
Semi-Annual Report
September 30, 2023
Robert F. Carey, CFA
Senior Vice President and Chief Market Strategist
First Trust Advisors L.P.
Senior Vice President and Chief Market Strategist
First Trust Advisors L.P.
Mr. Carey is responsible for the overall management of research and analysis of the First Trust product line. Mr. Carey has more than 30 years of experience as an Equity and Fixed-Income Analyst and is a recipient of the Chartered Financial Analyst (“CFA”) designation. He is a graduate of the University of Illinois at Champaign-Urbana with a B.S. in Physics. He is also a member of the Investment Analysts Society of Chicago and the CFA Institute. Mr. Carey has appeared as a guest on such programs as Bloomberg TV, CNBC, and WBBM Radio, and has been quoted by several publications, including The Wall Street Journal, The Wall Street Reporter, Bloomberg News Service and Registered Rep.
State of the Global Economy
The latest global growth forecast from the International Monetary Fund (“IMF”) released in October 2023 sees real gross domestic product growth rising by 3.0% worldwide in 2023, up from its 2.9% projection in January 2023. The IMF is currently forecasting
a 2.1% growth rate for the U.S., up from its January 2023 estimate of 1.4%. Emerging Market and Developing Economies are expected
to grow by 4.0% this year, unchanged from the IMF’s 4.0% estimate in January 2023. The IMF notes that risks to their global outlook remain tilted to the downside, citing the real estate crisis in China, the potential for increased volatility among commodity
prices, and uncomfortably high inflation, among other reasons, for their outlook.
In the U.S., inflation, as measured by the Consumer Price Index (“CPI”), stood at 3.7% on a trailing 12-month basis at the end of September 2023, according to the U.S. Bureau of Labor Statistics. While this is significantly lower than the most recent high
of 9.1% in June 2022, the September CPI reading reflects a re-acceleration in the metric when compared to its most recent low of 3.0%
set on June 30, 2023.
Performance of Global Stocks and Bonds
The major U.S. stock indices delivered mixed results over the past six months. The S&P 500® (the “Index”), S&P MidCap 400® and S&P SmallCap 600® Indices posted total returns of 5.18%, 0.45% and -1.71%, respectively, for the six-month period ended September 30, 2023. Seven of the 11 major sectors that comprise the Index were positive on a total return basis. The top performer
was the Communication Services sector, up 16.54%, while the worst showing came from the Utilities sector, down 11.54%.
A Bloomberg survey of twenty-two equity strategists found that their average 2023 year-end price target for the Index was
4,370 as of October 18, 2023, according to its own release. The highest and lowest estimates were 4,900 and 3,700, respectively. The Index
closed trading on September 29, 2023, at 4,288.05. Bloomberg’s consensus year-over-year earnings growth rate estimates for the Index for the 2023 and 2024 calendar years stood at -2.83% and 11.89%, respectively, as of October 13, 2023.
The broader foreign stock indices experienced negative total returns over the past six months. For the six months ended September
30, 2023, the MSCI World ex USA and MSCI Emerging Markets equity indices posted total returns of -1.20% (USD) and -2.05% (USD),
respectively, according to Bloomberg. The major foreign bond indices were also down over the same period. The Bloomberg Global
Aggregate Index of higher quality debt posted a total return of -5.06% (USD), while the Bloomberg EM Hard Currency Aggregate
Index of emerging markets debt fell by 1.18% (USD), according to Bloomberg. The U.S. dollar rose 3.58% over the past six months
against a basket of major currencies, as measured by the U.S. Dollar Index (DXY). The increase in the dollar proved to be
a headwind to the performance of both foreign stock and bond indices, in our opinion.
Results were mixed in the U.S. bond market over the period. The top performing major debt group we track was intermediate
U.S. high yield bonds. The Bloomberg Intermediate U.S. High Yield Index posted a total return of 2.29% for the six-month period
ended September 30, 2023. The worst performing U.S. debt group that we track was municipal bonds. The Bloomberg Long Municipal Bond
(22+) Index posted a total return of -6.03%. The yield on the benchmark 10-Year Treasury Note (“T-Note”) rose by 110 basis points in the period to close at 4.57% on September 29, 2023, according to Bloomberg. For comparative purposes, the average yield
on the 10-Year T-Note was 2.27% for the 10-year period ended September 30, 2023.
Page 3
Fund Performance Overview (Unaudited)
Emerging Markets Equity Select ETF (RNEM)
The Emerging Markets Equity Select ETF (the “Fund”) seeks investment results that correspond generally to the price and yield (before the Fund’s fees and expenses) of an equity index called the Nasdaq Riskalyze Emerging MarketsTM Index (the “Index”). The shares of the Fund are listed and trade on Nasdaq, Inc. under the ticker symbol “RNEM.” The Fund normally invests at least 90% of its net assets (plus any borrowings for investment purposes) in the securities that comprise the Index.
The Index is owned and was developed and sponsored by Nitrogen Wealth, Inc. (the “Index Provider”). According to the Index Provider, the Index is designed to select low volatility emerging markets securities that are included in the Nasdaq Emerging
Large Mid CapTM Index (the “Base Index”) and meet a minimum three-month average daily dollar trading volume threshold. The Base Index is a comprehensive, rules-based index designed to measure stock market performance of companies operating in emerging
markets, as determined by Nasdaq, Inc. A country is classified as “emerging” based on a number of criteria, including national income per capita, national market capitalization and national trading volume. Emerging market countries are generally characterized
by lower market efficiency and less strict standards in accounting and securities regulation than developed market countries. Companies
are classified as operating in a country primarily by their country of incorporation, domicile and primary exchange listing.
|
Performance
|
||||||
|
|
|
|
Average Annual Total
Returns
|
Cumulative Total Returns
|
||
|
|
6 Months
Ended
9/30/23
|
1 Year
Ended
9/30/23
|
5 Years
Ended
9/30/23
|
Inception
(6/20/17)
to 9/30/23
|
5 Years
Ended
9/30/23
|
Inception
(6/20/17)
to 9/30/23
|
|
Fund Performance
|
|
|
|
|
|
|
|
NAV
|
8.93%
|
23.27%
|
2.44%
|
2.53%
|
12.79%
|
17.01%
|
|
Market Price
|
9.16%
|
24.15%
|
2.26%
|
2.51%
|
11.85%
|
16.86%
|
|
Index Performance
|
|
|
|
|
|
|
|
Nasdaq Riskalyze Emerging MarketsTM
Index
|
10.63%
|
25.95%
|
4.42%
|
4.60%
|
24.14%
|
32.59%
|
|
Nasdaq Emerging Large Mid CapTM
Index
|
-0.41%
|
13.89%
|
1.71%
|
2.78%
|
8.83%
|
18.82%
|
|
MSCI Emerging Markets Index
|
-2.05%
|
11.70%
|
0.55%
|
1.61%
|
2.80%
|
10.56%
|
(See Notes to Fund Performance Overview on page 14.)
Riskalyze and Nasdaq Riskalyze Emerging MarketsTM Index are trademarks or service marks of Nitrogen Wealth, Inc. (“Nitrogen Wealth”) and have been licensed for use for certain purposes by First Trust. The Fund is not sponsored, endorsed, sold or promoted by Nitrogen Wealth, and Nitrogen Wealth makes no representation regarding the advisability of trading in the Fund. The Nasdaq Riskalyze Emerging MarketsTM Index (“Riskalyze Index”) is a product of Nitrogen Wealth. RISKALYZE® and NASDAQ RISKALYZE EMERGING MARKETSTM INDEX are trademarks of Nitrogen Wealth. Nasdaq® is a trademark of Nasdaq, Inc.
Page 4
Fund Performance Overview (Unaudited) (Continued)
Emerging Markets Equity Select ETF (RNEM) (Continued)
|
Sector Allocation
|
% of Total
Long-Term
Investments
|
|
Financials
|
29.6%
|
|
Information Technology
|
26.7
|
|
Materials
|
10.4
|
|
Consumer Staples
|
7.7
|
|
Industrials
|
6.7
|
|
Energy
|
5.8
|
|
Consumer Discretionary
|
3.8
|
|
Communication Services
|
3.7
|
|
Utilities
|
2.4
|
|
Health Care
|
2.3
|
|
Real Estate
|
0.9
|
|
Total
|
100.0%
|
|
Top Ten Holdings
|
% of Total
Long-Term
Investments
|
|
Quanta Computer, Inc.
|
5.6%
|
|
Inventec Corp.
|
3.2
|
|
ICICI Bank Ltd.
|
3.0
|
|
Petronet LNG Ltd.
|
2.8
|
|
Kotak Mahindra Bank Ltd.
|
2.8
|
|
HDFC Bank Ltd.
|
2.6
|
|
Compal Electronics, Inc.
|
2.5
|
|
Chicony Electronics Co., Ltd.
|
2.5
|
|
WPG Holdings Ltd.
|
2.5
|
|
Powertech Technology, Inc.
|
2.3
|
|
Total
|
29.8%
|
 |
Performance figures assume reinvestment of
all distributions and do not reflect the
deduction of taxes that a shareholder would
pay on Fund distributions or the redemption
or sale of Fund shares. An index is a statistical
composite that tracks a specified financial
market or sector. Unlike the Fund, the indices
do not actually hold a portfolio of securities
and therefore do not incur the expenses
incurred by the Fund. These expenses
negatively impact the performance of the
Fund. The Fund’s past performance does not
predict future performance.
|
Frequency Distribution of Discounts and Premiums
Information showing the number of days the market price of the Fund’s shares was greater (at a premium) and less (at a discount) than the Fund’s net asset value for the most recently completed year, and the most recently completed calendar quarters since that year (or life of the Fund, if shorter) is available at https://www.ftportfolios.com/Retail/etf/home.aspx.
Page 5
Fund Performance Overview (Unaudited) (Continued)
Large Cap US Equity Select ETF (RNLC)
The Large Cap US Equity Select ETF (the “Fund”) seeks investment results that correspond generally to the price and yield (before the Fund’s fees and expenses) of an equity index called the Nasdaq Riskalyze US Large CapTM Index (the “Index”). The shares of the Fund are listed and trade on Nasdaq, Inc. under the ticker symbol “RNLC.” The Fund normally invests at least 90% of its net assets (plus any borrowings for investment purposes) in the securities that comprise the Index.
The Index is owned and was developed and sponsored by Nitrogen Wealth, Inc. (the “Index Provider”). According to the Index Provider, the Index is designed to select dividend-paying US large cap securities that are included in the Nasdaq US 500 Large
CapTM Index (the “Base Index”) and have paid a dividend in the trailing twelve months (based on ex-date). The Base Index is a comprehensive, rules-based index designed to measure stock market performance of large cap US companies, as determined by
Nasdaq, Inc.
|
Performance
|
||||||
|
|
|
|
Average Annual Total
Returns
|
Cumulative Total Returns
|
||
|
|
6 Months
Ended
9/30/23
|
1 Year
Ended
9/30/23
|
5 Years
Ended
9/30/23
|
Inception
(6/20/17)
to 9/30/23
|
5 Years
Ended
9/30/23
|
Inception
(6/20/17)
to 9/30/23
|
|
Fund Performance
|
|
|
|
|
|
|
|
NAV
|
0.63%
|
17.43%
|
7.93%
|
9.00%
|
46.45%
|
71.77%
|
|
Market Price
|
0.63%
|
17.52%
|
7.91%
|
9.00%
|
46.32%
|
71.76%
|
|
Index Performance
|
|
|
|
|
|
|
|
Nasdaq Riskalyze US Large CapTM Index
|
0.95%
|
18.22%
|
8.60%
|
9.67%
|
51.08%
|
78.57%
|
|
Nasdaq US 500 Large CapTM Index
|
5.30%
|
21.42%
|
9.83%
|
11.30%
|
59.79%
|
95.87%
|
|
S&P 500® Index
|
5.18%
|
21.62%
|
9.92%
|
11.37%
|
60.44%
|
96.62%
|
(See Notes to Fund Performance Overview on page 14.)
Riskalyze and Nasdaq Riskalyze US Large CapTM Index are trademarks or service marks of Nitrogen Wealth, Inc. (“Nitrogen Wealth”) and have been licensed for use for certain purposes by First Trust. The Fund is not sponsored, endorsed, sold or promoted by Nitrogen Wealth, and Nitrogen Wealth makes no representation regarding the advisability of trading in the Fund. The Nasdaq Riskalyze US Large CapTM Index (“Riskalyze Index”) is a product of Nitrogen Wealth, Inc. RISKALYZE® and NASDAQ RISKALYZE US LARGE CAPTM INDEX are trademarks of Nitrogen Wealth. Nasdaq® is a trademark of Nasdaq, Inc.
Page 6
Fund Performance Overview (Unaudited) (Continued)
Large Cap US Equity Select ETF (RNLC) (Continued)
|
Sector Allocation
|
% of Total
Long-Term
Investments
|
|
Information Technology
|
30.4%
|
|
Industrials
|
13.3
|
|
Health Care
|
13.1
|
|
Financials
|
11.2
|
|
Consumer Discretionary
|
9.7
|
|
Consumer Staples
|
6.5
|
|
Energy
|
5.2
|
|
Communication Services
|
3.2
|
|
Materials
|
2.6
|
|
Real Estate
|
2.4
|
|
Utilities
|
2.4
|
|
Total
|
100.0%
|
|
Top Ten Holdings
|
% of Total
Long-Term
Investments
|
|
Intuit, Inc.
|
1.1%
|
|
CDW Corp.
|
1.0
|
|
Micron Technology, Inc.
|
1.0
|
|
Seagate Technology Holdings PLC
|
1.0
|
|
Intel Corp.
|
1.0
|
|
International Business Machines Corp.
|
1.0
|
|
Leidos Holdings, Inc.
|
1.0
|
|
Cognizant Technology Solutions Corp.,
Class A
|
1.0
|
|
Hewlett Packard Enterprise Co.
|
1.0
|
|
NVIDIA Corp.
|
1.0
|
|
Total
|
10.1%
|
 |
Performance figures assume reinvestment of
all distributions and do not reflect the
deduction of taxes that a shareholder would
pay on Fund distributions or the redemption
or sale of Fund shares. An index is a statistical
composite that tracks a specified financial
market or sector. Unlike the Fund, the indices
do not actually hold a portfolio of securities
and therefore do not incur the expenses
incurred by the Fund. These expenses
negatively impact the performance of the
Fund. The Fund’s past performance does not
predict future performance.
|
Frequency Distribution of Discounts and Premiums
Information showing the number of days the market price of the Fund’s shares was greater (at a premium) and less (at a discount) than the Fund’s net asset value for the most recently completed year, and the most recently completed calendar quarters since that year (or life of the Fund, if shorter) is available at https://www.ftportfolios.com/Retail/etf/home.aspx.
Page 7
Fund Performance Overview (Unaudited) (Continued)
Mid Cap US Equity Select ETF (RNMC)
The Mid Cap US Equity Select ETF (the “Fund”) seeks investment results that correspond generally to the price and yield (before the Fund’s fees and expenses) of an equity index called the Nasdaq Riskalyze US Mid CapTM Index (the “Index”). The shares of the Fund are listed and trade on Nasdaq, Inc. under the ticker symbol “RNMC.” The Fund normally invests at least 90% of its net assets (plus any borrowings for investment purposes) in the securities that comprise the Index.
The Index is owned and was developed and sponsored by Nitrogen Wealth, Inc. (the “Index Provider”). According to the Index Provider, the Index is designed to select dividend-paying US mid cap securities that are included in the Nasdaq US 600 Mid
CapTM Index (the “Base Index”) and have paid a dividend in the trailing twelve months (based on ex-date). The Base Index is a comprehensive, rules-based index designed to measure stock market performance of mid cap US companies, as determined by Nasdaq, Inc.
|
Performance
|
||||||
|
|
|
|
Average Annual Total
Returns
|
Cumulative Total Returns
|
||
|
|
6 Months
Ended
9/30/23
|
1 Year
Ended
9/30/23
|
5 Years
Ended
9/30/23
|
Inception
(6/20/17)
to 9/30/23
|
5 Years
Ended
9/30/23
|
Inception
(6/20/17)
to 9/30/23
|
|
Fund Performance
|
|
|
|
|
|
|
|
NAV
|
0.85%
|
16.89%
|
5.94%
|
7.06%
|
33.41%
|
53.49%
|
|
Market Price
|
0.85%
|
16.89%
|
5.90%
|
7.05%
|
33.18%
|
53.42%
|
|
Index Performance
|
|
|
|
|
|
|
|
Nasdaq Riskalyze US Mid CapTM Index
|
1.21%
|
17.67%
|
6.59%
|
7.72%
|
37.59%
|
59.55%
|
|
Nasdaq US 600 Mid CapTM Index
|
0.83%
|
14.35%
|
5.00%
|
7.28%
|
27.62%
|
55.47%
|
|
S&P MidCap 400® Index
|
0.45%
|
15.51%
|
6.06%
|
7.60%
|
34.20%
|
58.40%
|
|
Russell 3000® Index
|
4.86%
|
20.46%
|
9.14%
|
10.74%
|
54.88%
|
89.79%
|
(See Notes to Fund Performance Overview on page 14.)
Riskalyze and Nasdaq Riskalyze US Mid CapTM Index are trademarks or service marks of Nitrogen Wealth, Inc. (“Nitrogen Wealth”) and have been licensed for use for certain purposes by First Trust. The Fund is not sponsored, endorsed, sold or promoted by Nitrogen Wealth, and Nitrogen Wealth makes no representation regarding the advisability of trading in the Fund. The Nasdaq Riskalyze US Mid CapTM Index (“Riskalyze Index”) is a product of Nitrogen Wealth. RISKALYZE® and NASDAQ RISKALYZE US MID CAPTM INDEX are trademarks of Nitrogen Wealth. Nasdaq® is a trademark of Nasdaq, Inc.
Page 8
Fund Performance Overview (Unaudited) (Continued)
Mid Cap US Equity Select ETF (RNMC) (Continued)
|
Sector Allocation
|
% of Total
Long-Term
Investments
|
|
Industrials
|
20.7%
|
|
Consumer Discretionary
|
15.5
|
|
Financials
|
15.0
|
|
Information Technology
|
11.8
|
|
Health Care
|
10.5
|
|
Materials
|
6.4
|
|
Real Estate
|
6.1
|
|
Energy
|
5.3
|
|
Utilities
|
3.3
|
|
Consumer Staples
|
3.1
|
|
Communication Services
|
2.3
|
|
Total
|
100.0%
|
|
Top Ten Holdings
|
% of Total
Long-Term
Investments
|
|
Vertiv Holdings Co.
|
1.4%
|
|
Dell Technologies, Inc., Class C
|
1.1
|
|
Encompass Health Corp.
|
1.1
|
|
Ensign Group (The), Inc.
|
1.1
|
|
Jabil, Inc.
|
1.1
|
|
Chemed Corp.
|
1.1
|
|
Perrigo Co. PLC
|
1.0
|
|
Universal Display Corp.
|
1.0
|
|
TD SYNNEX Corp.
|
1.0
|
|
DENTSPLY SIRONA, Inc.
|
0.9
|
|
Total
|
10.8%
|
 |
Performance figures assume reinvestment of
all distributions and do not reflect the
deduction of taxes that a shareholder would
pay on Fund distributions or the redemption
or sale of Fund shares. An index is a statistical
composite that tracks a specified financial
market or sector. Unlike the Fund, the indices
do not actually hold a portfolio of securities
and therefore do not incur the expenses
incurred by the Fund. These expenses
negatively impact the performance of the
Fund. The Fund’s past performance does not
predict future performance.
|
Frequency Distribution of Discounts and Premiums
Information showing the number of days the market price of the Fund’s shares was greater (at a premium) and less (at a discount) than the Fund’s net asset value for the most recently completed year, and the most recently completed calendar quarters since that year (or life of the Fund, if shorter) is available at https://www.ftportfolios.com/Retail/etf/home.aspx.
Page 9
Fund Performance Overview (Unaudited) (Continued)
Small Cap US Equity Select ETF (RNSC)
The Small Cap US Equity Select ETF (the “Fund”) seeks investment results that correspond generally to the price and yield (before the Fund’s fees and expenses) of an equity index called the Nasdaq Riskalyze US Small CapTM Index (the “Index”). The shares of the Fund are listed and trade on Nasdaq, Inc. under the ticker symbol “RNSC.” The Fund normally invests at least 90% of its net assets (plus any borrowings for investment purposes) in the securities that comprise the Index.
The Index is owned and was developed and sponsored by Nitrogen Wealth, Inc. (the “Index Provider”). According to the Index Provider, the Index is designed to select dividend-paying US small cap securities that are included in the Nasdaq US 700 Small
CapTM Index (the “Base Index”) and have paid a dividend in the trailing twelve months (based on ex-date). The Base Index is a comprehensive, rules-based index designed to measure stock market performance of small cap US companies, as determined by
Nasdaq, Inc.
|
Performance
|
||||||
|
|
|
|
Average Annual Total
Returns
|
Cumulative Total Returns
|
||
|
|
6 Months
Ended
9/30/23
|
1 Year
Ended
9/30/23
|
5 Years
Ended
9/30/23
|
Inception
(6/20/17)
to 9/30/23
|
5 Years
Ended
9/30/23
|
Inception
(6/20/17)
to 9/30/23
|
|
Fund Performance
|
|
|
|
|
|
|
|
NAV
|
-2.80%
|
13.33%
|
4.05%
|
6.08%
|
21.95%
|
44.87%
|
|
Market Price
|
-2.80%
|
13.19%
|
3.98%
|
6.07%
|
21.58%
|
44.80%
|
|
Index Performance
|
|
|
|
|
|
|
|
Nasdaq Riskalyze US Small CapTM Index
|
-2.43%
|
14.18%
|
4.73%
|
6.79%
|
26.02%
|
51.04%
|
|
Nasdaq US 700 Small CapTM Index
|
-1.46%
|
9.09%
|
3.26%
|
6.35%
|
17.38%
|
47.21%
|
|
S&P SmallCap 600® Index
|
-1.71%
|
10.08%
|
3.21%
|
6.61%
|
17.11%
|
49.45%
|
|
Russell 3000® Index
|
4.86%
|
20.46%
|
9.14%
|
10.74%
|
54.88%
|
89.79%
|
(See Notes to Fund Performance Overview on page 14.)
Riskalyze and Nasdaq Riskalyze US Small CapTM Index are trademarks or service marks of Nitrogen Wealth, Inc. (“Nitrogen Wealth”) and have been licensed for use for certain purposes by First Trust. The Fund is not sponsored, endorsed, sold or promoted by Nitrogen Wealth, and Nitrogen Wealth makes no representation regarding the advisability of trading in the Fund. The Nasdaq Riskalyze US Small CapTM Index (“Riskalyze Index”) is a product of Nitrogen Wealth. RISKALYZE® and NASDAQ RISKALYZE US SMALL CAPTM INDEX are trademarks of Nitrogen Wealth. Nasdaq® is a trademark of Nasdaq, Inc.
Page 10
Fund Performance Overview (Unaudited) (Continued)
Small Cap US Equity Select ETF (RNSC) (Continued)
|
Sector Allocation
|
% of Total
Long-Term
Investments
|
|
Industrials
|
17.0%
|
|
Financials
|
16.4
|
|
Health Care
|
15.0
|
|
Consumer Discretionary
|
12.6
|
|
Information Technology
|
10.3
|
|
Real Estate
|
7.7
|
|
Energy
|
6.6
|
|
Materials
|
4.8
|
|
Consumer Staples
|
4.1
|
|
Communication Services
|
3.7
|
|
Utilities
|
1.8
|
|
Total
|
100.0%
|
|
Top Ten Holdings
|
% of Total
Long-Term
Investments
|
|
National Research Corp.
|
3.2%
|
|
Patterson Cos., Inc.
|
2.8
|
|
US Physical Therapy, Inc.
|
2.3
|
|
CONMED Corp.
|
2.3
|
|
Atrion Corp.
|
2.3
|
|
Embecta Corp.
|
2.2
|
|
Xerox Holdings Corp.
|
1.6
|
|
CTS Corp.
|
1.5
|
|
Adeia, Inc.
|
1.4
|
|
CSG Systems International, Inc.
|
1.4
|
|
Total
|
21.0%
|
 |
Performance figures assume reinvestment of
all distributions and do not reflect the
deduction of taxes that a shareholder would
pay on Fund distributions or the redemption
or sale of Fund shares. An index is a statistical
composite that tracks a specified financial
market or sector. Unlike the Fund, the indices
do not actually hold a portfolio of securities
and therefore do not incur the expenses
incurred by the Fund. These expenses
negatively impact the performance of the
Fund. The Fund’s past performance does not
predict future performance.
|
Frequency Distribution of Discounts and Premiums
Information showing the number of days the market price of the Fund’s shares was greater (at a premium) and less (at a discount) than the Fund’s net asset value for the most recently completed year, and the most recently completed calendar quarters since that year (or life of the Fund, if shorter) is available at https://www.ftportfolios.com/Retail/etf/home.aspx.
Page 11
Fund Performance Overview (Unaudited) (Continued)
US Equity Dividend Select ETF (RNDV)
The US Equity Dividend Select ETF (the “Fund”) seeks investment results that correspond generally to the price and yield (before the Fund’s fees and expenses) of an equity index called the Nasdaq Riskalyze US Large Cap Select DividendTM Index (the “Index”). The shares of the Fund are listed and trade on Nasdaq, Inc. under the ticker symbol “RNDV.” The Fund normally invests at least 90% of its net assets (plus any borrowings for investment purposes) in the securities that comprise the Index.
The Index is owned and was developed and sponsored by Nitrogen Wealth, Inc. (the “Index Provider”). According to the Index Provider, the Index is designed to select dividend-paying US securities that (i) are included in the Nasdaq US 500 Large CapTM Index (the “Base Index”); (ii) have paid a dividend in the trailing twelve months (based on the ex-date); and (iii) have a trailing twelve-month dividend yield higher than the index yield of the Base Index. The Base Index is a comprehensive, rules-based index designed
to measure stock market performance of large cap US companies, as determined by Nasdaq, Inc.
|
Performance
|
||||||
|
|
|
|
Average Annual Total
Returns
|
Cumulative Total Returns
|
||
|
|
6 Months
Ended
9/30/23
|
1 Year
Ended
9/30/23
|
5 Years
Ended
9/30/23
|
Inception
(6/20/17)
to 9/30/23
|
5 Years
Ended
9/30/23
|
Inception
(6/20/17)
to 9/30/23
|
|
Fund Performance
|
|
|
|
|
|
|
|
NAV
|
-2.11%
|
13.12%
|
6.97%
|
8.20%
|
40.03%
|
64.05%
|
|
Market Price
|
-2.11%
|
13.16%
|
6.98%
|
8.21%
|
40.10%
|
64.11%
|
|
Index Performance
|
|
|
|
|
|
|
|
Nasdaq Riskalyze US Large Cap Select
DividendTM Index
|
-1.85%
|
13.80%
|
7.55%
|
8.79%
|
43.89%
|
69.76%
|
|
Nasdaq US 500 Large CapTM Index
|
5.30%
|
21.42%
|
9.83%
|
11.30%
|
59.79%
|
95.87%
|
|
S&P 500® Index
|
5.18%
|
21.62%
|
9.92%
|
11.37%
|
60.44%
|
96.62%
|
(See Notes to Fund Performance Overview on page 14.)
Riskalyze and Nasdaq Riskalyze US Large Cap Select DividendTM Index are trademarks or service marks of Nitrogen Wealth, Inc. (“Nitrogen Wealth”) and have been licensed for use for certain purposes by First Trust. The Fund is not sponsored, endorsed, sold or promoted by Nitrogen Wealth, and Nitrogen Wealth makes no representation regarding the advisability of trading in the Fund. The Nasdaq Riskalyze US Large Cap Select DividendTM Index (“Riskalyze Index”) is a product of Nitrogen Wealth. RISKALYZE® and NASDAQ RISKALYZE US LARGE CAP SELECT DIVIDENDTM INDEX are trademarks of Nitrogen Wealth. Nasdaq® is a trademark of Nasdaq, Inc.
Page 12
Fund Performance Overview (Unaudited) (Continued)
US Equity Dividend Select ETF (RNDV) (Continued)
|
Sector Allocation
|
% of Total
Long-Term
Investments
|
|
Information Technology
|
31.5%
|
|
Health Care
|
13.1
|
|
Financials
|
11.4
|
|
Industrials
|
10.8
|
|
Consumer Discretionary
|
9.6
|
|
Consumer Staples
|
6.1
|
|
Energy
|
5.1
|
|
Communication Services
|
4.8
|
|
Materials
|
2.7
|
|
Utilities
|
2.5
|
|
Real Estate
|
2.4
|
|
Total
|
100.0%
|
|
Top Ten Holdings
|
% of Total
Long-Term
Investments
|
|
International Business Machines Corp.
|
3.6%
|
|
Seagate Technology Holdings PLC
|
3.4
|
|
Intel Corp.
|
2.7
|
|
Hewlett Packard Enterprise Co.
|
2.1
|
|
HP, Inc.
|
2.0
|
|
Corning, Inc.
|
1.9
|
|
NetApp, Inc.
|
1.8
|
|
Gen Digital, Inc.
|
1.8
|
|
QUALCOMM, Inc.
|
1.7
|
|
Texas Instruments, Inc.
|
1.7
|
|
Total
|
22.7%
|
 |
Performance figures assume reinvestment of
all distributions and do not reflect the
deduction of taxes that a shareholder would
pay on Fund distributions or the redemption
or sale of Fund shares. An index is a statistical
composite that tracks a specified financial
market or sector. Unlike the Fund, the indices
do not actually hold a portfolio of securities
and therefore do not incur the expenses
incurred by the Fund. These expenses
negatively impact the performance of the
Fund. The Fund’s past performance does not
predict future performance.
|
Frequency Distribution of Discounts and Premiums
Information showing the number of days the market price of the Fund’s shares was greater (at a premium) and less (at a discount) than the Fund’s net asset value for the most recently completed year, and the most recently completed calendar quarters since that year (or life of the Fund, if shorter) is available at https://www.ftportfolios.com/Retail/etf/home.aspx.
Page 13
Notes to Fund Performance Overview (Unaudited)
Total returns for the periods since inception are calculated from the inception date of each Fund. “Average Annual Total Returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative Total Returns” represent the total change in value of an investment over the periods indicated.
Each Fund’s per share net asset value (“NAV”) is the value of one share of the Fund and is computed by dividing the value of all assets of the Fund (including accrued interest and dividends), less all liabilities (including accrued expenses and dividends
declared but unpaid), by the total number of outstanding shares. The price used to calculate market return (“Market Price”) is determined by using the midpoint of the national best bid and offer price (“NBBO”) as of the time that the Fund’s NAV is calculated. Under the Securities and Exchange Commission’s rules, the NBBO consists of the highest displayed buy and lowest sell prices among the various exchanges trading the Fund at the time the Fund’s NAV is calculated. Prior to January 1, 2019, the price used was the midpoint between the highest bid and the lowest offer on the stock exchange on which shares of the Fund were listed for trading
as of the time that the Fund’s NAV was calculated. Since shares of each Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Fund, the NAV of each
Fund is used as a proxy for the secondary market trading price to calculate market returns. NAV and market returns assume that all
distributions have been reinvested in each Fund at NAV and Market Price, respectively.
An index is a statistical composite that tracks a specified financial market or sector. Unlike each Fund, the indices do not
actually hold a portfolio of securities and therefore do not incur the expenses incurred by each Fund. These expenses negatively impact
the performance of each Fund. Also, market returns do not include brokerage commissions that may be payable on secondary market
transactions. If brokerage commissions were included, market returns would be lower. The total returns presented reflect the
reinvestment of dividends on securities in the indices. The returns presented do not reflect the deduction of taxes that a
shareholder would pay on Fund distributions or the redemption or sale of Fund shares. The investment return and principal value of shares
of each Fund will vary with changes in market conditions. Shares of each Fund may be worth more or less than their original cost when
they are redeemed or sold in the market. Each Fund’s past performance is no guarantee of future performance.
Page 14
First Trust Exchange-Traded Fund VI
Understanding Your Fund Expenses
September 30, 2023 (Unaudited)
Understanding Your Fund Expenses
September 30, 2023 (Unaudited)
As a shareholder of Emerging Markets Equity Select ETF, Large Cap US Equity Select ETF, Mid Cap US Equity Select ETF, Small
Cap US Equity Select ETF, or US Equity Dividend Select ETF (each a “Fund” and collectively, the “Funds”), you incur two types of costs: (1) transaction costs; and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees,
if any, and other Fund expenses. This Example is intended to help you understand your ongoing costs of investing in the Funds and to compare
these costs with the ongoing costs of investing in other funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held through the six-month period
ended September 30, 2023.
Actual Expenses
The first line in the following table provides information about actual account values and actual expenses. You may use the
information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply
divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During the Six-Month Period” to estimate the expenses you paid on your account during this six-month period.
Hypothetical Example for Comparison Purposes
The second line in the following table provides information about hypothetical account values and hypothetical expenses based
on each Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not each Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you
paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so,
compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional
costs such as brokerage commissions. Therefore, the second line in the table is useful in comparing ongoing costs only, and
will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included,
your costs would have been higher.
|
|
Beginning
Account Value
April 1, 2023
|
Ending
Account Value
September 30, 2023
|
Annualized
Expense Ratio
Based on the
Six-Month
Period
|
Expenses Paid
During the
Six-Month
Period (a)
|
|
Emerging Markets Equity Select ETF (RNEM)
|
||||
|
Actual
|
$1,000.00
|
$1,089.30
|
0.75%
|
$3.92
|
|
Hypothetical (5% return before expenses)
|
$1,000.00
|
$1,021.25
|
0.75%
|
$3.79
|
|
Large Cap US Equity Select ETF (RNLC)
|
||||
|
Actual
|
$1,000.00
|
$1,006.30
|
0.60%
|
$3.01
|
|
Hypothetical (5% return before expenses)
|
$1,000.00
|
$1,022.00
|
0.60%
|
$3.03
|
|
Mid Cap US Equity Select ETF (RNMC)
|
||||
|
Actual
|
$1,000.00
|
$1,008.50
|
0.60%
|
$3.01
|
|
Hypothetical (5% return before expenses)
|
$1,000.00
|
$1,022.00
|
0.60%
|
$3.03
|
|
Small Cap US Equity Select ETF (RNSC)
|
||||
|
Actual
|
$1,000.00
|
$972.00
|
0.60%
|
$2.96
|
|
Hypothetical (5% return before expenses)
|
$1,000.00
|
$1,022.00
|
0.60%
|
$3.03
|
|
US Equity Dividend Select ETF (RNDV)
|
||||
|
Actual
|
$1,000.00
|
$978.90
|
0.50%
|
$2.47
|
|
Hypothetical (5% return before expenses)
|
$1,000.00
|
$1,022.50
|
0.50%
|
$2.53
|
|
(a)
|
Expenses are equal to the annualized expense ratio as indicated in the table multiplied by the average account value over
the period
(April 1, 2023 through September 30, 2023), multiplied by 183/366 (to reflect the six-month period).
|
Page 15
Emerging Markets Equity Select ETF (RNEM)
Portfolio of Investments
September 30, 2023 (Unaudited)
Portfolio of Investments
September 30, 2023 (Unaudited)
|
Shares
|
Description
|
Value
|
|||
|
COMMON STOCKS (a) — 100.1%
|
|||||
|
|
Bermuda — 0.2%
|
|
|||
|
440
|
Credicorp Ltd.
|
$56,307
|
|||
|
|
Brazil — 8.4%
|
|
|||
|
21,502
|
Ambev S.A.
|
56,080
|
|||
|
14,904
|
Auren Energia S.A.
|
40,710
|
|||
|
18,629
|
Banco do Brasil S.A.
|
174,855
|
|||
|
27,185
|
Banco Santander Brasil S.A.
|
140,886
|
|||
|
22,410
|
BB Seguridade Participacoes
S.A.
|
139,144
|
|||
|
27,165
|
Bradespar S.A. (Preference
Shares)
|
122,786
|
|||
|
45,514
|
CCR S.A.
|
116,715
|
|||
|
19,112
|
Cia Energetica de Minas Gerais
(Preference Shares)
|
47,185
|
|||
|
5,442
|
Energisa S.A.
|
50,614
|
|||
|
5,443
|
Engie Brasil Energia S.A.
|
44,863
|
|||
|
8,196
|
Equatorial Energia S.A.
|
52,275
|
|||
|
9,593
|
Hypera S.A.
|
70,880
|
|||
|
29,449
|
Itau Unibanco Holding S.A.
(Preference Shares)
|
159,415
|
|||
|
89,008
|
Itausa S.A. (Preference Shares)
|
160,254
|
|||
|
17,262
|
JBS S.A.
|
61,987
|
|||
|
81,712
|
Klabin S.A.
|
387,057
|
|||
|
30,976
|
Porto Seguro S.A.
|
162,012
|
|||
|
13,106
|
Raia Drogasil S.A.
|
72,015
|
|||
|
30,906
|
Rumo S.A.
|
140,310
|
|||
|
19,828
|
Sendas Distribuidora S.A.
|
47,967
|
|||
|
35,533
|
Suzano S.A.
|
383,709
|
|||
|
2,507
|
Telefonica Brasil S.A.
|
21,536
|
|||
|
7,705
|
TIM S.A.
|
22,824
|
|||
|
6,277
|
Transmissora Alianca de Energia
Eletrica S.A.
|
43,157
|
|||
|
14,367
|
WEG S.A.
|
103,668
|
|||
|
|
|
2,822,904
|
|||
|
|
Cayman Islands — 0.7%
|
|
|||
|
34,213
|
Hengan International Group Co.,
Ltd.
|
109,005
|
|||
|
97,200
|
Tingyi Cayman Islands Holding
Corp.
|
135,791
|
|||
|
|
|
244,796
|
|||
|
|
Chile — 0.7%
|
|
|||
|
428,165
|
Banco de Chile
|
43,600
|
|||
|
937,712
|
Banco Santander Chile
|
43,422
|
|||
|
15,979
|
Cencosud S.A.
|
30,298
|
|||
|
3,378
|
Empresas Copec S.A.
|
23,948
|
|||
|
10,306
|
Falabella S.A.
|
23,030
|
|||
|
1,398
|
Sociedad Quimica y Minera de
Chile S.A., Class B
(Preference Shares)
|
83,145
|
|||
|
|
|
247,443
|
|||
|
Shares
|
Description
|
Value
|
|||
|
|
|||||
|
|
China — 9.5%
|
|
|||
|
436,261
|
Agricultural Bank of China Ltd.,
Class H
|
$162,673
|
|||
|
422,674
|
Bank of China Ltd., Class H
|
147,891
|
|||
|
256,837
|
Bank of Communications Co.,
Ltd., Class H
|
155,461
|
|||
|
597,000
|
CGN Power Co., Ltd.,
Class H (b) (c)
|
154,759
|
|||
|
321,364
|
China CITIC Bank Corp., Ltd.,
Class H
|
149,377
|
|||
|
250,188
|
China Construction Bank Corp.,
Class H
|
141,213
|
|||
|
99,000
|
China Life Insurance Co., Ltd.,
Class H
|
154,234
|
|||
|
472,588
|
China Minsheng Banking Corp.,
Ltd., Class H
|
161,735
|
|||
|
344,999
|
China Petroleum & Chemical
Corp., Class H
|
188,559
|
|||
|
64,750
|
China Shenhua Energy Co., Ltd.,
Class H
|
210,019
|
|||
|
75,750
|
CITIC Securities Co., Ltd.,
Class H
|
153,610
|
|||
|
259,400
|
Haitong Securities Co., Ltd.,
Class H
|
155,687
|
|||
|
141,600
|
Huatai Securities Co., Ltd.,
Class H (b) (c)
|
180,821
|
|||
|
304,388
|
Industrial & Commercial Bank
of China Ltd., Class H
|
146,539
|
|||
|
27,500
|
Nongfu Spring Co., Ltd.,
Class H (b) (c)
|
158,027
|
|||
|
485,000
|
People’s Insurance Co. Group of
China (The) Ltd., Class H
|
174,034
|
|||
|
345,000
|
PetroChina Co., Ltd., Class H
|
259,930
|
|||
|
158,200
|
PICC Property & Casualty Co.,
Ltd., Class H
|
203,231
|
|||
|
52,200
|
Sinopharm Group Co., Ltd.,
Class H
|
151,315
|
|||
|
|
|
3,209,115
|
|||
|
|
Czech Republic — 0.2%
|
|
|||
|
1,353
|
CEZ AS
|
57,467
|
|||
|
637
|
Komercni Banka A.S.
|
18,553
|
|||
|
|
|
76,020
|
|||
|
|
Egypt — 0.1%
|
|
|||
|
19,151
|
Commercial International Bank
Egypt SAE (d)
|
37,186
|
|||
|
|
Hong Kong — 1.3%
|
|
|||
|
39,550
|
Beijing Enterprises Holdings
Ltd.
|
136,363
|
|||
|
52,100
|
BOC Hong Kong Holdings Ltd.
|
142,709
|
|||
|
124,000
|
China Merchants Port Holdings
Co., Ltd.
|
154,387
|
|||
|
|
|
433,459
|
|||
See Notes to Financial Statements
Page 16
Emerging Markets Equity Select ETF (RNEM)
Portfolio of Investments (Continued)
September 30, 2023 (Unaudited)
Portfolio of Investments (Continued)
September 30, 2023 (Unaudited)
|
Shares
|
Description
|
Value
|
|||
|
COMMON STOCKS (a) (Continued)
|
|||||
|
|
Hungary — 0.2%
|
|
|||
|
2,019
|
OTP Bank Nyrt
|
$72,907
|
|||
|
|
India — 27.9%
|
|
|||
|
5,219
|
Bajaj Auto Ltd.
|
318,245
|
|||
|
14,294
|
Bata India Ltd.
|
276,856
|
|||
|
25,520
|
Bharti Airtel Ltd.
|
284,699
|
|||
|
1,918
|
Britannia Industries Ltd.
|
104,794
|
|||
|
12,688
|
Cipla Ltd.
|
181,234
|
|||
|
5,500
|
Colgate-Palmolive India Ltd.
|
132,832
|
|||
|
15,214
|
Dabur India Ltd.
|
101,059
|
|||
|
2,472
|
Dr. Reddy’s Laboratories Ltd.
|
166,316
|
|||
|
17,517
|
Grasim Industries Ltd.
|
409,736
|
|||
|
48,325
|
HDFC Bank Ltd.
|
888,215
|
|||
|
3,238
|
Hindustan Unilever Ltd.
|
96,140
|
|||
|
88,666
|
ICICI Bank Ltd.
|
1,016,376
|
|||
|
21,750
|
ITC Ltd.
|
116,396
|
|||
|
44,887
|
Kotak Mahindra Bank Ltd.
|
938,213
|
|||
|
13,245
|
Larsen & Toubro Ltd.
|
482,253
|
|||
|
17,278
|
Marico Ltd.
|
116,860
|
|||
|
2,445
|
Maruti Suzuki India Ltd.
|
312,410
|
|||
|
421
|
Nestle India Ltd.
|
114,105
|
|||
|
330,712
|
Petronet LNG Ltd.
|
955,601
|
|||
|
12,355
|
Pidilite Industries Ltd.
|
362,952
|
|||
|
11,622
|
Sun Pharmaceutical Industries
Ltd.
|
162,158
|
|||
|
15,616
|
Tata Consultancy Services Ltd.
|
663,557
|
|||
|
11,695
|
Tata Consumer Products Ltd.
|
123,497
|
|||
|
3,752
|
UltraTech Cement Ltd.
|
372,974
|
|||
|
137,067
|
Wipro Ltd.
|
670,222
|
|||
|
|
|
9,367,700
|
|||
|
|
Indonesia — 2.9%
|
|
|||
|
70,910
|
Adaro Energy Indonesia Tbk PT
|
13,076
|
|||
|
207,115
|
Aneka Tambang Tbk
|
24,323
|
|||
|
169,688
|
Astra International Tbk PT
|
68,347
|
|||
|
205,529
|
Bank Central Asia Tbk PT
|
117,360
|
|||
|
743,132
|
Bank Jago Tbk PT (e)
|
97,129
|
|||
|
348,355
|
Bank Mandiri Persero Tbk PT
|
135,803
|
|||
|
192,340
|
Bank Negara Indonesia Persero
Tbk PT
|
128,496
|
|||
|
380,207
|
Bank Rakyat Indonesia Persero
Tbk PT
|
128,540
|
|||
|
203,487
|
Berkah Beton Sadaya Tbk PT (e)
|
658
|
|||
|
1,619,199
|
Bumi Resources Tbk PT (e)
|
14,353
|
|||
|
5,219
|
Indo Tambangraya Megah Tbk
PT
|
9,785
|
|||
|
203,602
|
Medco Energi Internasional Tbk
PT
|
21,210
|
|||
|
103,311
|
Merdeka Copper Gold Tbk
PT (e)
|
19,252
|
|||
|
564,586
|
Telkom Indonesia Persero Tbk
PT
|
136,991
|
|||
|
Shares
|
Description
|
Value
|
|||
|
|
|||||
|
|
Indonesia (Continued)
|
|
|||
|
57,984
|
Transcoal Pacific Tbk PT
|
$30,859
|
|||
|
16,987
|
United Tractors Tbk PT
|
31,050
|
|||
|
|
|
977,232
|
|||
|
|
Luxembourg — 0.1%
|
|
|||
|
2,699
|
Allegro.eu S.A. (b) (c) (e)
|
19,915
|
|||
|
|
Malaysia — 1.4%
|
|
|||
|
46,700
|
CIMB Group Holdings Bhd
|
54,008
|
|||
|
32,000
|
Gamuda Bhd
|
30,192
|
|||
|
74,800
|
Genting Malaysia Bhd
|
39,827
|
|||
|
12,300
|
Hong Leong Bank Bhd
|
51,084
|
|||
|
18,800
|
IHH Healthcare Bhd
|
23,424
|
|||
|
28,900
|
Malayan Banking Bhd
|
54,104
|
|||
|
24,600
|
Petronas Chemicals Group Bhd
|
37,671
|
|||
|
35,700
|
Press Metal Aluminium
Holdings Bhd
|
35,812
|
|||
|
62,000
|
Public Bank Bhd
|
53,612
|
|||
|
44,400
|
RHB Bank Bhd
|
51,348
|
|||
|
15,900
|
Tenaga Nasional Bhd
|
33,830
|
|||
|
|
|
464,912
|
|||
|
|
Mexico — 4.9%
|
|
|||
|
254,149
|
America Movil S.A.B. de C.V.,
Series B
|
220,061
|
|||
|
8,160
|
Arca Continental S.A.B. de C.V.
|
74,111
|
|||
|
30,455
|
Banco del Bajio S.A. (b) (c)
|
95,782
|
|||
|
117,518
|
Cemex S.A.B. de C.V.,
Series CPO (e)
|
76,671
|
|||
|
42,372
|
Fibra Uno Administracion S.A.
de C.V.
|
70,630
|
|||
|
7,773
|
Fomento Economico Mexicano
S.A.B. de C.V., Series UBD
|
84,891
|
|||
|
5,023
|
Gruma S.A.B. de C.V., Class B
|
86,029
|
|||
|
5,775
|
Grupo Aeroportuario del Centro
Norte S.A.B. de C.V.
|
62,676
|
|||
|
3,315
|
Grupo Aeroportuario del
Pacifico S.A.B. de C.V.,
Class B
|
54,486
|
|||
|
2,109
|
Grupo Aeroportuario del Sureste
S.A.B. de C.V., Class B
|
51,620
|
|||
|
14,726
|
Grupo Bimbo S.A.B. de C.V.,
Series A
|
70,996
|
|||
|
13,152
|
Grupo Financiero Banorte
S.A.B. de C.V., Class O
|
110,265
|
|||
|
30,984
|
Grupo Mexico S.A.B. de C.V.,
Series B
|
146,657
|
|||
|
102,996
|
Grupo Televisa S.A.B.,
Series CPO
|
62,586
|
|||
|
35,178
|
Kimberly-Clark de Mexico
S.A.B. de C.V., Class A
|
70,043
|
|||
|
29,665
|
Orbia Advance Corp. S.A.B. de
C.V.
|
61,636
|
|||
See Notes to Financial Statements
Page 17
Emerging Markets Equity Select ETF (RNEM)
Portfolio of Investments (Continued)
September 30, 2023 (Unaudited)
Portfolio of Investments (Continued)
September 30, 2023 (Unaudited)
|
Shares
|
Description
|
Value
|
|||
|
COMMON STOCKS (a) (Continued)
|
|||||
|
|
Mexico (Continued)
|
|
|||
|
17,329
|
Qualitas Controladora S.A.B. de
C.V.
|
$130,210
|
|||
|
27,268
|
Wal-Mart de Mexico S.A.B. de
C.V.
|
102,641
|
|||
|
|
|
1,631,991
|
|||
|
|
Netherlands — 0.1%
|
|
|||
|
3,223
|
NEPI Rockcastle N.V.
|
17,720
|
|||
|
247
|
X5 Retail Group N.V.,
GDR (c) (d) (e) (f) (g)
|
0
|
|||
|
|
|
17,720
|
|||
|
|
Philippines — 1.4%
|
|
|||
|
135,010
|
Ayala Land, Inc.
|
70,278
|
|||
|
46,354
|
BDO Unibank, Inc.
|
116,262
|
|||
|
31,800
|
International Container Terminal
Services, Inc.
|
116,462
|
|||
|
7,080
|
SM Investments Corp.
|
105,557
|
|||
|
109,100
|
SM Prime Holdings, Inc.
|
58,430
|
|||
|
|
|
466,989
|
|||
|
|
Poland — 0.9%
|
|
|||
|
1,971
|
Bank Polska Kasa Opieki S.A.
|
45,546
|
|||
|
711
|
CD Projekt S.A.
|
20,376
|
|||
|
403
|
Dino Polska S.A. (b) (c) (e)
|
32,748
|
|||
|
855
|
KGHM Polska Miedz S.A.
|
21,910
|
|||
|
8
|
LPP S.A.
|
23,806
|
|||
|
4,866
|
ORLEN S.A.
|
65,383
|
|||
|
5,905
|
Powszechna Kasa Oszczednosci
Bank Polski S.A.
|
46,930
|
|||
|
4,800
|
Powszechny Zaklad
Ubezpieczen S.A.
|
45,455
|
|||
|
|
|
302,154
|
|||
|
|
Russia — 0.0%
|
|
|||
|
7,696
|
Alrosa PJSC (d) (e) (f) (g)
|
0
|
|||
|
40,399
|
Credit Bank of Moscow
PJSC (d) (e) (f) (g)
|
0
|
|||
|
172,018
|
Inter RAO UES PJSC (d) (f) (g)
|
0
|
|||
|
96
|
Magnit PJSC (d) (f) (g)
|
0
|
|||
|
15,021
|
Magnitogorsk Iron & Steel
Works PJSC (d) (e) (f) (g)
|
0
|
|||
|
47
|
MMC Norilsk Nickel
PJSC (d) (e) (f) (g)
|
0
|
|||
|
2,140
|
Mobile TeleSystems
PJSC (d) (f) (g)
|
0
|
|||
|
1,668
|
Moscow Exchange MICEX-RTS
PJSC (d) (f) (g)
|
0
|
|||
|
4,741
|
Novolipetsk Steel
PJSC (d) (e) (f) (g)
|
0
|
|||
|
85
|
Polyus PJSC (d) (e) (f) (g)
|
0
|
|||
|
676
|
Severstal PAO (d) (e) (f) (g)
|
0
|
|||
|
Shares
|
Description
|
Value
|
|||
|
|
|||||
|
|
Russia (Continued)
|
|
|||
|
10,776
|
Sistema PJSFC (d) (f) (g)
|
$0
|
|||
|
3,253
|
Tatneft PJSC (d) (f) (g)
|
0
|
|||
|
|
|
0
|
|||
|
|
Singapore — 0.5%
|
|
|||
|
24,810
|
BOC Aviation Ltd. (b) (c)
|
173,142
|
|||
|
|
South Africa — 3.2%
|
|
|||
|
5,149
|
Absa Group Ltd.
|
47,545
|
|||
|
26,153
|
African Rainbow Minerals Ltd.
|
234,944
|
|||
|
2,506
|
Aspen Pharmacare Holdings Ltd.
|
22,741
|
|||
|
1,846
|
Bid Corp., Ltd.
|
41,168
|
|||
|
2,054
|
Bidvest Group (The) Ltd.
|
29,592
|
|||
|
555
|
Capitec Bank Holdings Ltd.
|
50,310
|
|||
|
2,861
|
Clicks Group Ltd.
|
39,083
|
|||
|
6,711
|
Discovery Ltd. (e)
|
48,616
|
|||
|
1,376
|
Exxaro Resources Ltd.
|
12,528
|
|||
|
15,500
|
FirstRand Ltd.
|
52,279
|
|||
|
25,492
|
Growthpoint Properties Ltd.
|
14,204
|
|||
|
1,898
|
Mr Price Group Ltd.
|
13,929
|
|||
|
5,265
|
MTN Group Ltd.
|
31,381
|
|||
|
5,440
|
MultiChoice Group (e)
|
21,273
|
|||
|
4,316
|
Nedbank Group Ltd.
|
46,122
|
|||
|
79,314
|
Old Mutual Ltd.
|
50,520
|
|||
|
26,794
|
OUTsurance Group Ltd.
|
60,512
|
|||
|
15,879
|
Pepkor Holdings Ltd. (b) (c)
|
14,467
|
|||
|
6,962
|
Remgro Ltd.
|
54,604
|
|||
|
16,603
|
Sanlam Ltd.
|
57,586
|
|||
|
3,309
|
Shoprite Holdings Ltd.
|
41,916
|
|||
|
5,416
|
Standard Bank Group Ltd.
|
52,553
|
|||
|
5,499
|
Vodacom Group Ltd.
|
30,716
|
|||
|
4,282
|
Woolworths Holdings Ltd.
|
15,340
|
|||
|
|
|
1,083,929
|
|||
|
|
Taiwan — 30.4%
|
|
|||
|
137,848
|
Asia Cement Corp.
|
169,745
|
|||
|
118,650
|
Catcher Technology Co., Ltd.
|
670,796
|
|||
|
236,554
|
Chicony Electronics Co., Ltd.
|
846,393
|
|||
|
24,767
|
Chunghwa Telecom Co., Ltd.
|
89,000
|
|||
|
892,815
|
Compal Electronics, Inc.
|
849,101
|
|||
|
235,324
|
E.Sun Financial Holding Co.,
Ltd.
|
176,782
|
|||
|
203,751
|
Far Eastern New Century Corp.
|
181,467
|
|||
|
39,357
|
Far EasTone
Telecommunications Co., Ltd.
|
88,637
|
|||
|
223,384
|
First Financial Holding Co., Ltd.
|
183,728
|
|||
|
92,292
|
Formosa Chemicals & Fibre
Corp.
|
175,832
|
|||
|
65,020
|
Formosa Plastics Corp.
|
160,735
|
|||
|
216,765
|
Hon Hai Precision Industry Co.,
Ltd.
|
698,365
|
|||
|
256,663
|
Hua Nan Financial Holdings Co.,
Ltd.
|
162,996
|
|||
|
705,590
|
Inventec Corp.
|
1,071,046
|
|||
See Notes to Financial Statements
Page 18
Emerging Markets Equity Select ETF (RNEM)
Portfolio of Investments (Continued)
September 30, 2023 (Unaudited)
Portfolio of Investments (Continued)
September 30, 2023 (Unaudited)
|
Shares
|
Description
|
Value
|
|||
|
COMMON STOCKS (a) (Continued)
|
|||||
|
|
Taiwan (Continued)
|
|
|||
|
175,222
|
Mega Financial Holding Co.,
Ltd.
|
$204,640
|
|||
|
247,732
|
Powertech Technology, Inc.
|
778,947
|
|||
|
9,477
|
President Chain Store Corp.
|
77,065
|
|||
|
253,014
|
Quanta Computer, Inc.
|
1,877,197
|
|||
|
681,286
|
Shin Kong Financial Holding
Co., Ltd. (e)
|
195,645
|
|||
|
163,979
|
Taiwan Cement Corp.
|
168,904
|
|||
|
230,776
|
Taiwan Cooperative Financial
Holding Co., Ltd.
|
183,017
|
|||
|
29,303
|
Taiwan Mobile Co., Ltd.
|
85,874
|
|||
|
35,524
|
Uni-President Enterprises Corp.
|
77,144
|
|||
|
449,075
|
WPG Holdings Ltd.
|
843,046
|
|||
|
260,513
|
Yuanta Financial Holding Co.,
Ltd.
|
202,161
|
|||
|
|
|
10,218,263
|
|||
|
|
Thailand — 3.7%
|
|
|||
|
9,000
|
Advanced Info Service PCL
|
56,354
|
|||
|
21,900
|
Airports of Thailand PCL (e)
|
41,951
|
|||
|
13,100
|
Bangkok Bank PCL
|
60,261
|
|||
|
175,300
|
Bangkok Expressway & Metro
PCL
|
39,959
|
|||
|
241,900
|
BTS Group Holdings PCL
|
49,825
|
|||
|
21,800
|
Central Pattana PCL
|
37,867
|
|||
|
38,400
|
Central Retail Corp. PCL (b) (c)
|
40,865
|
|||
|
62,700
|
Charoen Pokphand Foods PCL
|
35,644
|
|||
|
21,400
|
CP ALL PCL
|
35,556
|
|||
|
60,400
|
Gulf Energy Development
PCL (c)
|
75,474
|
|||
|
119,300
|
Home Product Center PCL
|
40,954
|
|||
|
25,800
|
Intouch Holdings PCL
|
52,255
|
|||
|
14,900
|
Kasikornbank PCL
|
51,559
|
|||
|
120,100
|
Krung Thai Bank PCL
|
62,668
|
|||
|
36,500
|
Krungthai Card PCL
|
44,106
|
|||
|
152,000
|
Land & Houses PCL
|
32,560
|
|||
|
44,400
|
Osotspa PCL (c)
|
30,484
|
|||
|
150,200
|
PTT Oil & Retail Business
PCL (b) (c)
|
77,137
|
|||
|
101,500
|
PTT PCL
|
93,381
|
|||
|
82,700
|
Ratch Group PCL
|
71,543
|
|||
|
33,500
|
SCG Packaging PCL
|
35,191
|
|||
|
4,900
|
Siam Cement (The) PCL
|
40,505
|
|||
|
82,000
|
Thai Beverage PCL
|
34,492
|
|||
|
94,200
|
Thai Union Group PCL
|
37,512
|
|||
|
19,700
|
Tisco Financial Group PCL
|
53,426
|
|||
|
|
|
1,231,529
|
|||
|
|
Turkey — 1.4%
|
|
|||
|
21,738
|
Akbank T.A.S.
|
26,528
|
|||
|
2,864
|
Arcelik A.S.
|
17,026
|
|||
|
Shares
|
Description
|
Value
|
|||
|
|
|||||
|
|
Turkey (Continued)
|
|
|||
|
14,984
|
Aselsan Elektronik Sanayi Ve
Ticaret A.S.
|
$22,297
|
|||
|
4,643
|
BIM Birlesik Magazalar A.S.
|
46,517
|
|||
|
2,004
|
Enerjisa Enerji A.S. (b) (c)
|
3,782
|
|||
|
13,283
|
Enka Insaat ve Sanayi A.S.
|
16,869
|
|||
|
7,138
|
Eregli Demir ve Celik
Fabrikalari T.A.S. (e)
|
11,590
|
|||
|
574
|
Ford Otomotiv Sanayi A.S.
|
17,690
|
|||
|
9,308
|
Haci Omer Sabanci Holding A.S.
|
20,267
|
|||
|
9,331
|
Hektas Ticaret T.A.S. (e)
|
9,155
|
|||
|
8,328
|
KOC Holding A.S.
|
44,558
|
|||
|
11,699
|
Koza Altin Isletmeleri A.S.
|
12,280
|
|||
|
741
|
Pegasus Hava Tasimaciligi
A.S. (e)
|
22,274
|
|||
|
18,232
|
Petkim Petrokimya Holding
A.S. (e)
|
13,060
|
|||
|
1,798
|
Tofas Turk Otomobil Fabrikasi
A.S.
|
19,378
|
|||
|
2,832
|
Turk Hava Yollari AO (e)
|
25,047
|
|||
|
9,959
|
Turkcell Iletisim Hizmetleri
A.S. (e)
|
19,360
|
|||
|
28,391
|
Turkiye Is Bankasi A.S., Class C
|
26,653
|
|||
|
8,413
|
Turkiye Petrol Rafinerileri A.S.
|
48,787
|
|||
|
9,197
|
Turkiye Sise ve Cam Fabrikalari
A.S.
|
18,331
|
|||
|
38,478
|
Yapi ve Kredi Bankasi A.S.
|
25,906
|
|||
|
|
|
467,355
|
|||
|
|
|||||
|
|
|||||
|
|
Total Investments — 100.1%
|
33,622,968
|
|||
|
|
(Cost $33,039,866)
|
|
|||
|
|
Net Other Assets and
Liabilities — (0.1)%
|
(22,495
)
|
|||
|
|
Net Assets — 100.0%
|
$33,600,473
|
|||
|
(a)
|
Portfolio securities are categorized based upon their country
of incorporation, which can be different from the country
categorization of the Fund’s underlying index. For a
breakdown of the portfolio securities by sector, please see the
Fund Performance Overview.
|
|
(b)
|
This security is exempt from registration upon resale under
Rule 144A of the Securities Act of 1933, as amended (the
“1933 Act”) and may be resold in transactions exempt from
registration, normally to qualified institutional buyers. This
security is not restricted on the foreign exchange where it
trades freely without any additional registration. As such, it
does not require the additional disclosure required of
restricted securities.
|
|
(c)
|
This security may be resold to qualified foreign investors and
foreign institutional buyers under Regulation S of the 1933
Act.
|
See Notes to Financial Statements
Page 19
Emerging Markets Equity Select ETF (RNEM)
Portfolio of Investments (Continued)
September 30, 2023 (Unaudited)
Portfolio of Investments (Continued)
September 30, 2023 (Unaudited)
|
(d)
|
Pursuant to procedures adopted by the Trust’s Board of
Trustees, this security has been determined to be illiquid by
First Trust Advisors L.P., the Fund’s advisor.
|
|
(e)
|
Non-income producing security.
|
|
(f)
|
This security is fair valued by the Advisor’s Pricing
Committee in accordance with procedures approved by the
Trust’s Board of Trustees, and in accordance with provisions
of the Investment Company Act of 1940 and rules
thereunder, as amended. At September 30, 2023, securities
noted as such are valued at $0 or 0.0% of net assets.
|
|
(g)
|
This security’s value was determined using significant
unobservable inputs (see Note2A- Portfolio Valuation in the
Notes to Financial Statements).
|
|
Currency Exposure Diversification
|
% of Total
Investments
|
|
New Taiwan Dollar
|
30.4%
|
|
Indian Rupee
|
27.9
|
|
Hong Kong Dollar
|
12.1
|
|
Brazilian Real
|
8.4
|
|
Mexican Peso
|
4.8
|
|
Thai Baht
|
3.6
|
|
South African Rand
|
3.3
|
|
Indonesia Rupiah
|
2.9
|
|
Turkish Lira
|
1.4
|
|
Philippines Peso
|
1.4
|
|
Malaysia Ringgit
|
1.4
|
|
Polish Zloty
|
0.9
|
|
Chilean Peso
|
0.7
|
|
Czech Republic Koruna
|
0.2
|
|
Hungarian Forint
|
0.2
|
|
United States Dollar
|
0.2
|
|
Egypt Pound
|
0.1
|
|
Singapore Dollar
|
0.1
|
|
Russian Ruble
|
0.0‡
|
|
Total
|
100.0%
|
|
‡
|
Investments are valued at $0.
|
|
Abbreviations throughout the Portfolio of Investments:
|
|
|
GDR
|
– Global Depositary Receipt
|
Valuation Inputs
A summary of the inputs used to value the Fund’s investments as of September 30, 2023 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements):
|
|
Total
Value at
9/30/2023
|
Level 1
Quoted
Prices
|
Level 2
Significant
Observable
Inputs
|
Level 3
Significant
Unobservable
Inputs
|
|
Common Stocks:
|
|
|
|
|
|
Netherlands
|
$ 17,720
|
$ 17,720
|
$ —
|
$ —**
|
|
Russia
|
—**
|
—
|
—
|
—**
|
|
Thailand
|
1,231,529
|
34,492
|
1,197,037
|
—
|
|
Other Country
Categories*
|
32,373,719
|
32,373,719
|
—
|
—
|
|
Total Investments
|
$33,622,968
|
$32,425,931
|
$1,197,037
|
$—**
|
|
*
|
See Portfolio of Investments for country breakout.
|
|
**
|
Investments are valued at $0.
|
Level 3 investments are fair valued by the Advisor’s Pricing Committee and are footnoted in the Portfolio of Investments. All Level 3 values are based on unobservable inputs.
See Notes to Financial Statements
Page 20
Large Cap US Equity Select ETF (RNLC)
Portfolio of Investments
September 30, 2023 (Unaudited)
Portfolio of Investments
September 30, 2023 (Unaudited)
|
Shares
|
Description
|
Value
|
|||
|
COMMON STOCKS — 99.8%
|
|||||
|
|
Aerospace & Defense — 1.4%
|
|
|||
|
143
|
General Dynamics Corp.
|
$31,599
|
|||
|
175
|
HEICO Corp.
|
28,338
|
|||
|
623
|
Howmet Aerospace, Inc.
|
28,814
|
|||
|
157
|
L3Harris Technologies, Inc.
|
27,337
|
|||
|
67
|
Lockheed Martin Corp.
|
27,400
|
|||
|
68
|
Northrop Grumman Corp.
|
29,933
|
|||
|
316
|
RTX Corp.
|
22,742
|
|||
|
456
|
Textron, Inc.
|
35,632
|
|||
|
|
|
231,795
|
|||
|
|
Air Freight & Logistics —
0.5%
|
|
|||
|
255
|
Expeditors International of
Washington, Inc.
|
29,231
|
|||
|
124
|
FedEx Corp.
|
32,850
|
|||
|
173
|
United Parcel Service, Inc.,
Class B
|
26,965
|
|||
|
|
|
89,046
|
|||
|
|
Automobiles — 0.7%
|
|
|||
|
4,683
|
Ford Motor Co.
|
58,163
|
|||
|
1,837
|
General Motors Co.
|
60,566
|
|||
|
|
|
118,729
|
|||
|
|
Banks — 2.1%
|
|
|||
|
980
|
Bank of America Corp.
|
26,832
|
|||
|
610
|
Citigroup, Inc.
|
25,089
|
|||
|
1,078
|
Citizens Financial Group, Inc.
|
28,890
|
|||
|
1,072
|
Fifth Third Bancorp
|
27,154
|
|||
|
2,608
|
Huntington Bancshares, Inc.
|
27,123
|
|||
|
194
|
JPMorgan Chase & Co.
|
28,134
|
|||
|
3,044
|
KeyCorp
|
32,754
|
|||
|
228
|
M&T Bank Corp.
|
28,831
|
|||
|
223
|
PNC Financial Services Group
(The), Inc.
|
27,378
|
|||
|
1,577
|
Regions Financial Corp.
|
27,124
|
|||
|
926
|
Truist Financial Corp.
|
26,493
|
|||
|
851
|
U.S. Bancorp
|
28,134
|
|||
|
659
|
Wells Fargo & Co.
|
26,927
|
|||
|
|
|
360,863
|
|||
|
|
Beverages — 0.8%
|
|
|||
|
456
|
Brown-Forman Corp., Class B
|
26,307
|
|||
|
506
|
Coca-Cola (The) Co.
|
28,326
|
|||
|
124
|
Constellation Brands, Inc.,
Class A
|
31,165
|
|||
|
975
|
Keurig Dr Pepper, Inc.
|
30,781
|
|||
|
165
|
PepsiCo, Inc.
|
27,957
|
|||
|
|
|
144,536
|
|||
|
|
Biotechnology — 1.3%
|
|
|||
|
508
|
AbbVie, Inc.
|
75,722
|
|||
|
Shares
|
Description
|
Value
|
|||
|
|
|||||
|
|
Biotechnology (Continued)
|
|
|||
|
308
|
Amgen, Inc.
|
$82,778
|
|||
|
888
|
Gilead Sciences, Inc.
|
66,547
|
|||
|
|
|
225,047
|
|||
|
|
Broadline Retail — 0.4%
|
|
|||
|
1,585
|
eBay, Inc.
|
69,883
|
|||
|
|
Building Products — 0.7%
|
|
|||
|
120
|
Carlisle Cos., Inc.
|
31,111
|
|||
|
621
|
Carrier Global Corp.
|
34,279
|
|||
|
453
|
Johnson Controls
International PLC
|
24,104
|
|||
|
162
|
Trane Technologies PLC
|
32,872
|
|||
|
|
|
122,366
|
|||
|
|
Capital Markets — 4.1%
|
|
|||
|
85
|
Ameriprise Financial, Inc.
|
28,023
|
|||
|
291
|
Ares Management Corp.,
Class A
|
29,935
|
|||
|
631
|
Bank of New York Mellon (The)
Corp.
|
26,912
|
|||
|
41
|
BlackRock, Inc.
|
26,506
|
|||
|
302
|
Blackstone, Inc.
|
32,356
|
|||
|
880
|
Carlyle Group (The), Inc.
|
26,541
|
|||
|
203
|
Cboe Global Markets, Inc.
|
31,711
|
|||
|
496
|
Charles Schwab (The) Corp.
|
27,230
|
|||
|
152
|
CME Group, Inc.
|
30,433
|
|||
|
70
|
FactSet Research Systems, Inc.
|
30,608
|
|||
|
1,053
|
Franklin Resources, Inc.
|
25,883
|
|||
|
87
|
Goldman Sachs Group (The),
Inc.
|
28,151
|
|||
|
249
|
Intercontinental Exchange, Inc.
|
27,395
|
|||
|
502
|
KKR & Co., Inc.
|
30,923
|
|||
|
130
|
LPL Financial Holdings, Inc.
|
30,894
|
|||
|
108
|
MarketAxess Holdings, Inc.
|
23,073
|
|||
|
81
|
Moody’s Corp.
|
25,610
|
|||
|
329
|
Morgan Stanley
|
26,869
|
|||
|
59
|
MSCI, Inc.
|
30,272
|
|||
|
564
|
Nasdaq, Inc.
|
27,405
|
|||
|
379
|
Northern Trust Corp.
|
26,333
|
|||
|
271
|
Raymond James Financial, Inc.
|
27,217
|
|||
|
70
|
S&P Global, Inc.
|
25,579
|
|||
|
384
|
State Street Corp.
|
25,713
|
|||
|
251
|
T. Rowe Price Group, Inc.
|
26,322
|
|||
|
|
|
697,894
|
|||
|
|
Chemicals — 1.4%
|
|
|||
|
41
|
Air Products and Chemicals, Inc.
|
11,619
|
|||
|
55
|
Albemarle Corp.
|
9,352
|
|||
|
106
|
Celanese Corp.
|
13,305
|
|||
|
176
|
CF Industries Holdings, Inc.
|
15,090
|
|||
|
531
|
Corteva, Inc.
|
27,166
|
|||
|
229
|
Dow, Inc.
|
11,807
|
|||
|
432
|
DuPont de Nemours, Inc.
|
32,223
|
|||
|
65
|
Ecolab, Inc.
|
11,011
|
|||
See Notes to Financial Statements
Page 21
Large Cap US Equity Select ETF (RNLC)
Portfolio of Investments (Continued)
September 30, 2023 (Unaudited)
Portfolio of Investments (Continued)
September 30, 2023 (Unaudited)
|
Shares
|
Description
|
Value
|
|||
|
COMMON STOCKS (Continued)
|
|||||
|
|
Chemicals (Continued)
|
|
|||
|
117
|
FMC Corp.
|
$7,836
|
|||
|
153
|
International Flavors &
Fragrances, Inc.
|
10,430
|
|||
|
133
|
LyondellBasell Industries N.V.,
Class A
|
12,595
|
|||
|
349
|
Mosaic (The) Co.
|
12,425
|
|||
|
208
|
PPG Industries, Inc.
|
26,999
|
|||
|
117
|
Sherwin-Williams (The) Co.
|
29,841
|
|||
|
102
|
Westlake Corp.
|
12,716
|
|||
|
|
|
244,415
|
|||
|
|
Commercial Services &
Supplies — 0.7%
|
|
|||
|
62
|
Cintas Corp.
|
29,823
|
|||
|
108
|
Republic Services, Inc.
|
15,391
|
|||
|
1,654
|
Rollins, Inc.
|
61,744
|
|||
|
96
|
Waste Management, Inc.
|
14,634
|
|||
|
|
|
121,592
|
|||
|
|
Communications Equipment
— 1.0%
|
|
|||
|
1,640
|
Cisco Systems, Inc.
|
88,167
|
|||
|
289
|
Motorola Solutions, Inc.
|
78,677
|
|||
|
|
|
166,844
|
|||
|
|
Construction & Engineering
— 0.2%
|
|
|||
|
157
|
Quanta Services, Inc.
|
29,370
|
|||
|
|
Construction Materials —
0.3%
|
|
|||
|
67
|
Martin Marietta Materials, Inc.
|
27,502
|
|||
|
137
|
Vulcan Materials Co.
|
27,677
|
|||
|
|
|
55,179
|
|||
|
|
Consumer Finance — 0.6%
|
|
|||
|
177
|
American Express Co.
|
26,407
|
|||
|
283
|
Capital One Financial Corp.
|
27,465
|
|||
|
241
|
Discover Financial Services
|
20,878
|
|||
|
911
|
Synchrony Financial
|
27,849
|
|||
|
|
|
102,599
|
|||
|
|
Consumer Staples Distribution
& Retail — 1.9%
|
|
|||
|
132
|
Costco Wholesale Corp.
|
74,575
|
|||
|
417
|
Dollar General Corp.
|
44,119
|
|||
|
648
|
Kroger (The) Co.
|
28,998
|
|||
|
410
|
Sysco Corp.
|
27,080
|
|||
|
537
|
Target Corp.
|
59,376
|
|||
|
1,069
|
Walgreens Boots Alliance, Inc.
|
23,775
|
|||
|
451
|
Walmart, Inc.
|
72,128
|
|||
|
|
|
330,051
|
|||
|
|
Containers & Packaging —
0.5%
|
|
|||
|
70
|
Avery Dennison Corp.
|
12,787
|
|||
|
Shares
|
Description
|
Value
|
|||
|
|
|||||
|
|
Containers & Packaging
(Continued)
|
|
|||
|
530
|
Ball Corp.
|
$26,383
|
|||
|
383
|
International Paper Co.
|
13,585
|
|||
|
233
|
Packaging Corp. of America
|
35,777
|
|||
|
|
|
88,532
|
|||
|
|
Distributors — 1.1%
|
|
|||
|
419
|
Genuine Parts Co.
|
60,495
|
|||
|
1,215
|
LKQ Corp.
|
60,155
|
|||
|
189
|
Pool Corp.
|
67,303
|
|||
|
|
|
187,953
|
|||
|
|
Diversified REITs — 0.1%
|
|
|||
|
221
|
W.P. Carey, Inc.
|
11,952
|
|||
|
|
Diversified Telecommunication
Services — 0.9%
|
|
|||
|
5,320
|
AT&T, Inc.
|
79,907
|
|||
|
2,281
|
Verizon Communications, Inc.
|
73,927
|
|||
|
|
|
153,834
|
|||
|
|
Electric Utilities — 1.2%
|
|
|||
|
315
|
Alliant Energy Corp.
|
15,262
|
|||
|
196
|
American Electric Power Co.,
Inc.
|
14,743
|
|||
|
180
|
Constellation Energy Corp.
|
19,634
|
|||
|
184
|
Duke Energy Corp.
|
16,240
|
|||
|
238
|
Edison International
|
15,063
|
|||
|
169
|
Entergy Corp.
|
15,633
|
|||
|
283
|
Evergy, Inc.
|
14,348
|
|||
|
233
|
Eversource Energy
|
13,549
|
|||
|
405
|
Exelon Corp.
|
15,305
|
|||
|
425
|
FirstEnergy Corp.
|
14,527
|
|||
|
222
|
NextEra Energy, Inc.
|
12,718
|
|||
|
624
|
PPL Corp.
|
14,701
|
|||
|
235
|
Southern (The) Co.
|
15,209
|
|||
|
265
|
Xcel Energy, Inc.
|
15,163
|
|||
|
|
|
212,095
|
|||
|
|
Electrical Equipment — 0.9%
|
|
|||
|
190
|
AMETEK, Inc.
|
28,074
|
|||
|
154
|
Eaton Corp. PLC
|
32,845
|
|||
|
342
|
Emerson Electric Co.
|
33,027
|
|||
|
93
|
Hubbell, Inc.
|
29,147
|
|||
|
93
|
Rockwell Automation, Inc.
|
26,586
|
|||
|
|
|
149,679
|
|||
|
|
Electronic Equipment,
Instruments & Components
— 3.6%
|
|
|||
|
1,903
|
Amphenol Corp., Class A
|
159,833
|
|||
|
881
|
CDW Corp.
|
177,750
|
|||
|
4,614
|
Corning, Inc.
|
140,589
|
|||
|
1,154
|
TE Connectivity Ltd.
|
142,554
|
|||
|
|
|
620,726
|
|||
See Notes to Financial Statements
Page 22
Large Cap US Equity Select ETF (RNLC)
Portfolio of Investments (Continued)
September 30, 2023 (Unaudited)
Portfolio of Investments (Continued)
September 30, 2023 (Unaudited)
|
Shares
|
Description
|
Value
|
|||
|
COMMON STOCKS (Continued)
|
|||||
|
|
Energy Equipment & Services
— 0.6%
|
|
|||
|
984
|
Baker Hughes Co.
|
$34,755
|
|||
|
944
|
Halliburton Co.
|
38,232
|
|||
|
634
|
Schlumberger N.V.
|
36,962
|
|||
|
|
|
109,949
|
|||
|
|
Entertainment — 0.4%
|
|
|||
|
547
|
Electronic Arts, Inc.
|
65,859
|
|||
|
|
Financial Services — 1.3%
|
|
|||
|
366
|
Apollo Global Management, Inc.
|
32,852
|
|||
|
1,592
|
Corebridge Financial, Inc.
|
31,442
|
|||
|
564
|
Fidelity National Information
Services, Inc.
|
31,172
|
|||
|
313
|
Global Payments, Inc.
|
36,117
|
|||
|
185
|
Jack Henry & Associates, Inc.
|
27,961
|
|||
|
78
|
Mastercard, Inc., Class A
|
30,881
|
|||
|
130
|
Visa, Inc., Class A
|
29,902
|
|||
|
|
|
220,327
|
|||
|
|
Food Products — 2.3%
|
|
|||
|
403
|
Archer-Daniels-Midland Co.
|
30,394
|
|||
|
323
|
Bunge Ltd.
|
34,965
|
|||
|
667
|
Campbell Soup Co.
|
27,400
|
|||
|
903
|
Conagra Brands, Inc.
|
24,760
|
|||
|
397
|
General Mills, Inc.
|
25,404
|
|||
|
122
|
Hershey (The) Co.
|
24,410
|
|||
|
758
|
Hormel Foods Corp.
|
28,827
|
|||
|
207
|
J.M. Smucker (The) Co.
|
25,442
|
|||
|
452
|
Kellogg Co.
|
26,899
|
|||
|
858
|
Kraft Heinz (The) Co.
|
28,863
|
|||
|
265
|
Lamb Weston Holdings, Inc.
|
24,502
|
|||
|
349
|
McCormick & Co., Inc.
|
26,398
|
|||
|
418
|
Mondelez International, Inc.,
Class A
|
29,009
|
|||
|
597
|
Tyson Foods, Inc., Class A
|
30,143
|
|||
|
|
|
387,416
|
|||
|
|
Gas Utilities — 0.1%
|
|
|||
|
142
|
Atmos Energy Corp.
|
15,042
|
|||
|
|
Ground Transportation —
0.9%
|
|
|||
|
905
|
CSX Corp.
|
27,829
|
|||
|
170
|
J.B. Hunt Transport Services,
Inc.
|
32,048
|
|||
|
136
|
Norfolk Southern Corp.
|
26,782
|
|||
|
84
|
Old Dominion Freight Line, Inc.
|
34,368
|
|||
|
151
|
Union Pacific Corp.
|
30,748
|
|||
|
|
|
151,775
|
|||
|
|
Health Care Equipment &
Supplies — 3.1%
|
|
|||
|
628
|
Abbott Laboratories
|
60,822
|
|||
|
1,503
|
Baxter International, Inc.
|
56,723
|
|||
|
Shares
|
Description
|
Value
|
|||
|
|
|||||
|
|
Health Care Equipment &
Supplies (Continued)
|
|
|||
|
260
|
Becton, Dickinson & Co.
|
$67,218
|
|||
|
178
|
Cooper (The) Cos., Inc.
|
56,606
|
|||
|
777
|
Medtronic PLC
|
60,886
|
|||
|
313
|
ResMed, Inc.
|
46,283
|
|||
|
305
|
STERIS PLC
|
66,923
|
|||
|
224
|
Stryker Corp.
|
61,213
|
|||
|
470
|
Zimmer Biomet Holdings, Inc.
|
52,743
|
|||
|
|
|
529,417
|
|||
|
|
Health Care Providers &
Services — 3.6%
|
|
|||
|
724
|
Cardinal Health, Inc.
|
62,858
|
|||
|
158
|
Cencora, Inc.
|
28,435
|
|||
|
244
|
Cigna Group (The)
|
69,801
|
|||
|
441
|
CVS Health Corp.
|
30,791
|
|||
|
154
|
Elevance Health, Inc.
|
67,055
|
|||
|
225
|
HCA Healthcare, Inc.
|
55,345
|
|||
|
153
|
Humana, Inc.
|
74,438
|
|||
|
284
|
Laboratory Corp. of America
Holdings
|
57,098
|
|||
|
71
|
McKesson Corp.
|
30,874
|
|||
|
487
|
Quest Diagnostics, Inc.
|
59,346
|
|||
|
142
|
UnitedHealth Group, Inc.
|
71,595
|
|||
|
|
|
607,636
|
|||
|
|
Health Care REITs — 0.2%
|
|
|||
|
744
|
Healthpeak Properties, Inc.
|
13,660
|
|||
|
316
|
Ventas, Inc.
|
13,313
|
|||
|
185
|
Welltower, Inc.
|
15,155
|
|||
|
|
|
42,128
|
|||
|
|
Hotel & Resort REITs — 0.1%
|
|
|||
|
888
|
Host Hotels & Resorts, Inc.
|
14,270
|
|||
|
|
Hotels, Restaurants & Leisure
— 3.2%
|
|
|||
|
423
|
Darden Restaurants, Inc.
|
60,582
|
|||
|
210
|
Domino’s Pizza, Inc.
|
79,546
|
|||
|
487
|
Hilton Worldwide Holdings, Inc.
|
73,138
|
|||
|
386
|
Marriott International, Inc.,
Class A
|
75,872
|
|||
|
238
|
McDonald’s Corp.
|
62,699
|
|||
|
1,613
|
MGM Resorts International
|
59,294
|
|||
|
715
|
Starbucks Corp.
|
65,258
|
|||
|
511
|
Yum! Brands, Inc.
|
63,844
|
|||
|
|
|
540,233
|
|||
|
|
Household Durables — 1.6%
|
|
|||
|
582
|
D.R. Horton, Inc.
|
62,547
|
|||
|
680
|
Garmin Ltd.
|
71,536
|
|||
|
565
|
Lennar Corp., Class A
|
63,410
|
|||
|
912
|
PulteGroup, Inc.
|
67,534
|
|||
|
|
|
265,027
|
|||
See Notes to Financial Statements
Page 23
Large Cap US Equity Select ETF (RNLC)
Portfolio of Investments (Continued)
September 30, 2023 (Unaudited)
Portfolio of Investments (Continued)
September 30, 2023 (Unaudited)
|
Shares
|
Description
|
Value
|
|||
|
COMMON STOCKS (Continued)
|
|||||
|
|
Household Products — 0.8%
|
|
|||
|
304
|
Church & Dwight Co., Inc.
|
$27,856
|
|||
|
191
|
Clorox (The) Co.
|
25,032
|
|||
|
395
|
Colgate-Palmolive Co.
|
28,088
|
|||
|
221
|
Kimberly-Clark Corp.
|
26,708
|
|||
|
200
|
Procter & Gamble (The) Co.
|
29,172
|
|||
|
|
|
136,856
|
|||
|
|
Independent Power and
Renewable Electricity
Producers — 0.1%
|
|
|||
|
796
|
AES (The) Corp.
|
12,099
|
|||
|
|
Industrial Conglomerates —
0.5%
|
|
|||
|
308
|
3M Co.
|
28,835
|
|||
|
282
|
General Electric Co.
|
31,175
|
|||
|
148
|
Honeywell International, Inc.
|
27,341
|
|||
|
|
|
87,351
|
|||
|
|
Industrial REITs — 0.1%
|
|
|||
|
122
|
Prologis, Inc.
|
13,690
|
|||
|
|
Insurance — 3.1%
|
|
|||
|
403
|
Aflac, Inc.
|
30,930
|
|||
|
257
|
Allstate (The) Corp.
|
28,632
|
|||
|
488
|
American International Group,
Inc.
|
29,573
|
|||
|
81
|
Aon PLC, Class A
|
26,262
|
|||
|
128
|
Arthur J. Gallagher & Co.
|
29,175
|
|||
|
408
|
Brown & Brown, Inc.
|
28,495
|
|||
|
146
|
Chubb Ltd.
|
30,394
|
|||
|
289
|
Cincinnati Financial Corp.
|
29,562
|
|||
|
82
|
Everest Group Ltd.
|
30,477
|
|||
|
390
|
Hartford Financial Services
Group (The), Inc.
|
27,655
|
|||
|
473
|
Loews Corp.
|
29,946
|
|||
|
150
|
Marsh & McLennan Cos., Inc.
|
28,545
|
|||
|
497
|
MetLife, Inc.
|
31,266
|
|||
|
371
|
Principal Financial Group, Inc.
|
26,738
|
|||
|
212
|
Progressive (The) Corp.
|
29,532
|
|||
|
319
|
Prudential Financial, Inc.
|
30,270
|
|||
|
162
|
Travelers (The) Cos., Inc.
|
26,456
|
|||
|
472
|
W.R. Berkley Corp.
|
29,967
|
|||
|
|
|
523,875
|
|||
|
|
IT Services — 2.2%
|
|
|||
|
100
|
Accenture PLC, Class A
|
30,711
|
|||
|
2,477
|
Cognizant Technology Solutions
Corp., Class A
|
167,792
|
|||
|
1,209
|
International Business Machines
Corp.
|
169,623
|
|||
|
|
|
368,126
|
|||
|
Shares
|
Description
|
Value
|
|||
|
|
|||||
|
|
Life Sciences Tools & Services
— 2.3%
|
|
|||
|
569
|
Agilent Technologies, Inc.
|
$63,626
|
|||
|
838
|
Bio-Techne Corp.
|
57,043
|
|||
|
285
|
Danaher Corp.
|
70,708
|
|||
|
576
|
Revvity, Inc.
|
63,763
|
|||
|
131
|
Thermo Fisher Scientific, Inc.
|
66,308
|
|||
|
179
|
West Pharmaceutical Services,
Inc.
|
67,163
|
|||
|
|
|
388,611
|
|||
|
|
Machinery — 2.7%
|
|
|||
|
125
|
Caterpillar, Inc.
|
34,125
|
|||
|
126
|
Cummins, Inc.
|
28,786
|
|||
|
76
|
Deere & Co.
|
28,681
|
|||
|
209
|
Dover Corp.
|
29,158
|
|||
|
412
|
Fortive Corp.
|
30,554
|
|||
|
143
|
IDEX Corp.
|
29,747
|
|||
|
123
|
Illinois Tool Works, Inc.
|
28,328
|
|||
|
473
|
Ingersoll Rand, Inc.
|
30,140
|
|||
|
124
|
Nordson Corp.
|
27,673
|
|||
|
346
|
Otis Worldwide Corp.
|
27,787
|
|||
|
370
|
PACCAR, Inc.
|
31,457
|
|||
|
79
|
Parker-Hannifin Corp.
|
30,772
|
|||
|
107
|
Snap-on, Inc.
|
27,292
|
|||
|
330
|
Stanley Black & Decker, Inc.
|
27,581
|
|||
|
282
|
Westinghouse Air Brake
Technologies Corp.
|
29,968
|
|||
|
274
|
Xylem, Inc.
|
24,942
|
|||
|
|
|
466,991
|
|||
|
|
Media — 1.9%
|
|
|||
|
2,043
|
Comcast Corp., Class A
|
90,587
|
|||
|
2,083
|
Fox Corp., Class A
|
64,989
|
|||
|
1,836
|
Interpublic Group of (The) Cos.,
Inc.
|
52,620
|
|||
|
745
|
Omnicom Group, Inc.
|
55,487
|
|||
|
4,453
|
Paramount Global, Class B
|
57,444
|
|||
|
|
|
321,127
|
|||
|
|
Metals & Mining — 0.3%
|
|
|||
|
305
|
Freeport-McMoRan, Inc.
|
11,373
|
|||
|
286
|
Newmont Corp.
|
10,568
|
|||
|
75
|
Nucor Corp.
|
11,726
|
|||
|
45
|
Reliance Steel & Aluminum Co.
|
11,800
|
|||
|
112
|
Steel Dynamics, Inc.
|
12,009
|
|||
|
|
|
57,476
|
|||
|
|
Multi-Utilities — 0.8%
|
|
|||
|
202
|
Ameren Corp.
|
15,115
|
|||
|
566
|
CenterPoint Energy, Inc.
|
15,197
|
|||
|
280
|
CMS Energy Corp.
|
14,871
|
|||
|
183
|
Consolidated Edison, Inc.
|
15,652
|
|||
|
319
|
Dominion Energy, Inc.
|
14,250
|
|||
|
150
|
DTE Energy Co.
|
14,892
|
|||
See Notes to Financial Statements
Page 24
Large Cap US Equity Select ETF (RNLC)
Portfolio of Investments (Continued)
September 30, 2023 (Unaudited)
Portfolio of Investments (Continued)
September 30, 2023 (Unaudited)
|
Shares
|
Description
|
Value
|
|||
|
COMMON STOCKS (Continued)
|
|||||
|
|
Multi-Utilities (Continued)
|
|
|||
|
264
|
Public Service Enterprise Group,
Inc.
|
$15,024
|
|||
|
227
|
Sempra
|
15,443
|
|||
|
187
|
WEC Energy Group, Inc.
|
15,063
|
|||
|
|
|
135,507
|
|||
|
|
Office REITs — 0.1%
|
|
|||
|
132
|
Alexandria Real Estate Equities,
Inc.
|
13,213
|
|||
|
|
Oil, Gas & Consumable Fuels
— 4.6%
|
|
|||
|
911
|
APA Corp.
|
37,442
|
|||
|
205
|
Cheniere Energy, Inc.
|
34,022
|
|||
|
198
|
Chevron Corp.
|
33,387
|
|||
|
300
|
ConocoPhillips
|
35,940
|
|||
|
1,231
|
Coterra Energy, Inc.
|
33,299
|
|||
|
643
|
Devon Energy Corp.
|
30,671
|
|||
|
236
|
Diamondback Energy, Inc.
|
36,552
|
|||
|
272
|
EOG Resources, Inc.
|
34,479
|
|||
|
290
|
Exxon Mobil Corp.
|
34,098
|
|||
|
229
|
Hess Corp.
|
35,037
|
|||
|
1,807
|
Kinder Morgan, Inc.
|
29,960
|
|||
|
1,352
|
Marathon Oil Corp.
|
36,166
|
|||
|
267
|
Marathon Petroleum Corp.
|
40,408
|
|||
|
529
|
Occidental Petroleum Corp.
|
34,321
|
|||
|
505
|
ONEOK, Inc.
|
32,032
|
|||
|
817
|
Ovintiv, Inc.
|
38,865
|
|||
|
327
|
Phillips 66
|
39,289
|
|||
|
151
|
Pioneer Natural Resources Co.
|
34,662
|
|||
|
409
|
Targa Resources Corp.
|
35,059
|
|||
|
23
|
Texas Pacific Land Corp.
|
41,942
|
|||
|
265
|
Valero Energy Corp.
|
37,553
|
|||
|
954
|
Williams (The) Cos., Inc.
|
32,140
|
|||
|
|
|
777,324
|
|||
|
|
Passenger Airlines — 0.3%
|
|
|||
|
1,957
|
Southwest Airlines Co.
|
52,976
|
|||
|
|
Personal Care Products —
0.3%
|
|
|||
|
361
|
Estee Lauder (The) Cos., Inc.,
Class A
|
52,182
|
|||
|
|
Pharmaceuticals — 2.7%
|
|
|||
|
1,070
|
Bristol-Myers Squibb Co.
|
62,103
|
|||
|
146
|
Eli Lilly & Co.
|
78,421
|
|||
|
414
|
Johnson & Johnson
|
64,481
|
|||
|
593
|
Merck & Co., Inc.
|
61,049
|
|||
|
1,867
|
Pfizer, Inc.
|
61,928
|
|||
|
6,860
|
Viatris, Inc.
|
67,640
|
|||
|
397
|
Zoetis, Inc.
|
69,070
|
|||
|
|
|
464,692
|
|||
|
Shares
|
Description
|
Value
|
|||
|
|
|||||
|
|
Professional Services — 4.0%
|
|
|||
|
141
|
Automatic Data Processing, Inc.
|
$33,922
|
|||
|
277
|
Booz Allen Hamilton Holding
Corp.
|
30,268
|
|||
|
169
|
Broadridge Financial Solutions,
Inc.
|
30,259
|
|||
|
131
|
Equifax, Inc.
|
23,997
|
|||
|
260
|
Jacobs Solutions, Inc.
|
35,490
|
|||
|
1,827
|
Leidos Holdings, Inc.
|
168,376
|
|||
|
276
|
Paychex, Inc.
|
31,831
|
|||
|
504
|
Paycom Software, Inc.
|
130,672
|
|||
|
2,669
|
SS&C Technologies Holdings,
Inc.
|
140,229
|
|||
|
394
|
TransUnion
|
28,285
|
|||
|
136
|
Verisk Analytics, Inc.
|
32,129
|
|||
|
|
|
685,458
|
|||
|
|
Residential REITs — 0.7%
|
|
|||
|
79
|
AvalonBay Communities, Inc.
|
13,567
|
|||
|
137
|
Camden Property Trust
|
12,957
|
|||
|
223
|
Equity LifeStyle Properties, Inc.
|
14,207
|
|||
|
227
|
Equity Residential
|
13,327
|
|||
|
64
|
Essex Property Trust, Inc.
|
13,574
|
|||
|
434
|
Invitation Homes, Inc.
|
13,754
|
|||
|
98
|
Mid-America Apartment
Communities, Inc.
|
12,608
|
|||
|
114
|
Sun Communities, Inc.
|
13,491
|
|||
|
348
|
UDR, Inc.
|
12,413
|
|||
|
|
|
119,898
|
|||
|
|
Retail REITs — 0.2%
|
|
|||
|
758
|
Kimco Realty Corp.
|
13,333
|
|||
|
250
|
Realty Income Corp.
|
12,485
|
|||
|
130
|
Simon Property Group, Inc.
|
14,044
|
|||
|
|
|
39,862
|
|||
|
|
Semiconductors &
Semiconductor Equipment
— 14.4%
|
|
|||
|
830
|
Analog Devices, Inc.
|
145,325
|
|||
|
1,119
|
Applied Materials, Inc.
|
154,925
|
|||
|
186
|
Broadcom, Inc.
|
154,488
|
|||
|
4,836
|
Intel Corp.
|
171,920
|
|||
|
333
|
KLA Corp.
|
152,734
|
|||
|
252
|
Lam Research Corp.
|
157,946
|
|||
|
2,705
|
Marvell Technology, Inc.
|
146,422
|
|||
|
1,805
|
Microchip Technology, Inc.
|
140,880
|
|||
|
2,562
|
Micron Technology, Inc.
|
174,293
|
|||
|
299
|
Monolithic Power Systems, Inc.
|
138,138
|
|||
|
382
|
NVIDIA Corp.
|
166,166
|
|||
|
790
|
NXP Semiconductors N.V.
|
157,937
|
|||
|
1,358
|
QUALCOMM, Inc.
|
150,819
|
|||
|
1,461
|
Skyworks Solutions, Inc.
|
144,040
|
|||
See Notes to Financial Statements
Page 25
Large Cap US Equity Select ETF (RNLC)
Portfolio of Investments (Continued)
September 30, 2023 (Unaudited)
Portfolio of Investments (Continued)
September 30, 2023 (Unaudited)
|
Shares
|
Description
|
Value
|
|||
|
COMMON STOCKS (Continued)
|
|||||
|
|
Semiconductors &
Semiconductor Equipment
(Continued)
|
|
|||
|
1,452
|
Teradyne, Inc.
|
$145,868
|
|||
|
899
|
Texas Instruments, Inc.
|
142,950
|
|||
|
|
|
2,444,851
|
|||
|
|
Software — 4.7%
|
|
|||
|
8,716
|
Gen Digital, Inc.
|
154,099
|
|||
|
353
|
Intuit, Inc.
|
180,362
|
|||
|
475
|
Microsoft Corp.
|
149,981
|
|||
|
1,357
|
Oracle Corp.
|
143,734
|
|||
|
337
|
Roper Technologies, Inc.
|
163,202
|
|||
|
|
|
791,378
|
|||
|
|
Specialized REITs — 0.9%
|
|
|||
|
77
|
American Tower Corp.
|
12,663
|
|||
|
131
|
Crown Castle, Inc.
|
12,056
|
|||
|
131
|
Digital Realty Trust, Inc.
|
15,854
|
|||
|
19
|
Equinix, Inc.
|
13,799
|
|||
|
100
|
Extra Space Storage, Inc.
|
12,158
|
|||
|
308
|
Gaming and Leisure Properties,
Inc.
|
14,029
|
|||
|
263
|
Iron Mountain, Inc.
|
15,635
|
|||
|
52
|
Public Storage
|
13,703
|
|||
|
65
|
SBA Communications Corp.
|
13,011
|
|||
|
475
|
VICI Properties, Inc.
|
13,822
|
|||
|
445
|
Weyerhaeuser Co.
|
13,644
|
|||
|
|
|
150,374
|
|||
|
|
Specialty Retail — 2.4%
|
|
|||
|
865
|
Best Buy Co., Inc.
|
60,092
|
|||
|
228
|
Home Depot (The), Inc.
|
68,892
|
|||
|
313
|
Lowe’s Cos., Inc.
|
65,054
|
|||
|
631
|
Ross Stores, Inc.
|
71,271
|
|||
|
836
|
TJX (The) Cos., Inc.
|
74,304
|
|||
|
320
|
Tractor Supply Co.
|
64,976
|
|||
|
|
|
404,589
|
|||
|
|
Technology Hardware, Storage
& Peripherals — 4.6%
|
|
|||
|
834
|
Apple, Inc.
|
142,789
|
|||
|
9,625
|
Hewlett Packard Enterprise Co.
|
167,186
|
|||
|
5,266
|
HP, Inc.
|
135,336
|
|||
|
2,116
|
NetApp, Inc.
|
160,562
|
|||
|
2,614
|
Seagate Technology
Holdings PLC
|
172,394
|
|||
|
|
|
778,267
|
|||
|
|
Textiles, Apparel & Luxury
Goods — 0.4%
|
|
|||
|
642
|
NIKE, Inc., Class B
|
61,388
|
|||
|
Shares
|
Description
|
Value
|
|||
|
|
|||||
|
|
Tobacco — 0.3%
|
|
|||
|
672
|
Altria Group, Inc.
|
$28,257
|
|||
|
312
|
Philip Morris International, Inc.
|
28,885
|
|||
|
|
|
57,142
|
|||
|
|
Trading Companies &
Distributors — 0.4%
|
|
|||
|
207
|
Fastenal Co.
|
11,310
|
|||
|
69
|
United Rentals, Inc.
|
30,675
|
|||
|
40
|
W.W. Grainger, Inc.
|
27,674
|
|||
|
|
|
69,659
|
|||
|
|
Water Utilities — 0.2%
|
|
|||
|
115
|
American Water Works Co., Inc.
|
14,240
|
|||
|
414
|
Essential Utilities, Inc.
|
14,213
|
|||
|
|
|
28,453
|
|||
|
|
|||||
|
|
|||||
|
|
Total Investments — 99.8%
|
16,987,474
|
|||
|
|
(Cost $16,939,812)
|
|
|||
|
|
Net Other Assets and
Liabilities — 0.2%
|
30,359
|
|||
|
|
Net Assets — 100.0%
|
$17,017,833
|
|||
Valuation Inputs
A summary of the inputs used to value the Fund’s investments as of September 30, 2023 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements):
|
|
Total
Value at
9/30/2023
|
Level 1
Quoted
Prices
|
Level 2
Significant
Observable
Inputs
|
Level 3
Significant
Unobservable
Inputs
|
|
Common Stocks*
|
$ 16,987,474
|
$ 16,987,474
|
$ —
|
$ —
|
|
*
|
See Portfolio of Investments for industry breakout.
|
See Notes to Financial Statements
Page 26
Mid Cap US Equity Select ETF (RNMC)
Portfolio of Investments
September 30, 2023 (Unaudited)
Portfolio of Investments
September 30, 2023 (Unaudited)
|
Shares
|
Description
|
Value
|
|||
|
COMMON STOCKS — 99.8%
|
|||||
|
|
Aerospace & Defense — 1.4%
|
|
|||
|
681
|
BWX Technologies, Inc.
|
$51,061
|
|||
|
265
|
Curtiss-Wright Corp.
|
51,842
|
|||
|
445
|
Hexcel Corp.
|
28,987
|
|||
|
214
|
Huntington Ingalls Industries,
Inc.
|
43,780
|
|||
|
1,672
|
Spirit AeroSystems Holdings,
Inc., Class A (a)
|
26,986
|
|||
|
410
|
Woodward, Inc.
|
50,947
|
|||
|
|
|
253,603
|
|||
|
|
Air Freight & Logistics —
0.3%
|
|
|||
|
517
|
C.H. Robinson Worldwide, Inc.
|
44,529
|
|||
|
|
Automobile Components —
1.0%
|
|
|||
|
1,238
|
BorgWarner, Inc.
|
49,978
|
|||
|
2,069
|
Gentex Corp.
|
67,325
|
|||
|
422
|
Lear Corp.
|
56,633
|
|||
|
|
|
173,936
|
|||
|
|
Automobiles — 0.6%
|
|
|||
|
1,719
|
Harley-Davidson, Inc.
|
56,830
|
|||
|
585
|
Thor Industries, Inc.
|
55,651
|
|||
|
|
|
112,481
|
|||
|
|
Banks — 5.9%
|
|
|||
|
778
|
Bank OZK
|
28,840
|
|||
|
386
|
BOK Financial Corp.
|
30,872
|
|||
|
1,590
|
Cadence Bank
|
33,740
|
|||
|
737
|
Comerica, Inc.
|
30,622
|
|||
|
641
|
Commerce Bancshares, Inc.
|
30,755
|
|||
|
290
|
Cullen/Frost Bankers, Inc.
|
26,451
|
|||
|
2,351
|
CVB Financial Corp.
|
38,956
|
|||
|
591
|
East West Bancorp, Inc.
|
31,152
|
|||
|
24
|
First Citizens BancShares, Inc.,
Class A
|
33,122
|
|||
|
1,097
|
First Financial Bankshares, Inc.
|
27,557
|
|||
|
1,733
|
First Hawaiian, Inc.
|
31,281
|
|||
|
1,311
|
First Interstate BancSystem, Inc.,
Class A
|
32,696
|
|||
|
2,729
|
FNB Corp.
|
29,446
|
|||
|
1,003
|
Glacier Bancorp, Inc.
|
28,585
|
|||
|
813
|
Hancock Whitney Corp.
|
30,073
|
|||
|
1,369
|
Home BancShares, Inc.
|
28,667
|
|||
|
701
|
Independent Bank Corp.
|
34,412
|
|||
|
2,781
|
New York Community Bancorp,
Inc.
|
31,537
|
|||
|
2,240
|
Old National Bancorp
|
32,570
|
|||
|
551
|
Pinnacle Financial Partners, Inc.
|
36,939
|
|||
|
516
|
Popular, Inc.
|
32,513
|
|||
|
553
|
Prosperity Bancshares, Inc.
|
30,183
|
|||
|
763
|
ServisFirst Bancshares, Inc.
|
39,806
|
|||
|
474
|
SouthState Corp.
|
31,929
|
|||
|
Shares
|
Description
|
Value
|
|||
|
|
|||||
|
|
Banks (Continued)
|
|
|||
|
1,033
|
Synovus Financial Corp.
|
$28,717
|
|||
|
513
|
UMB Financial Corp.
|
31,832
|
|||
|
1,052
|
United Bankshares, Inc.
|
29,025
|
|||
|
1,249
|
United Community Banks, Inc.
|
31,737
|
|||
|
4,028
|
Valley National Bancorp
|
34,480
|
|||
|
827
|
Webster Financial Corp.
|
33,336
|
|||
|
856
|
Western Alliance Bancorp
|
39,350
|
|||
|
430
|
Wintrust Financial Corp.
|
32,465
|
|||
|
1,162
|
Zions Bancorp N.A.
|
40,542
|
|||
|
|
|
1,064,188
|
|||
|
|
Beverages — 0.7%
|
|
|||
|
103
|
Coca-Cola Consolidated, Inc.
|
65,541
|
|||
|
997
|
Molson Coors Beverage Co.,
Class B
|
63,399
|
|||
|
|
|
128,940
|
|||
|
|
Broadline Retail — 0.9%
|
|
|||
|
186
|
Dillard’s, Inc., Class A
|
61,531
|
|||
|
2,626
|
Kohl’s Corp.
|
55,041
|
|||
|
3,772
|
Macy’s, Inc.
|
43,793
|
|||
|
|
|
160,365
|
|||
|
|
Building Products — 3.1%
|
|
|||
|
670
|
A.O. Smith Corp.
|
44,307
|
|||
|
771
|
AAON, Inc.
|
43,847
|
|||
|
428
|
Advanced Drainage Systems,
Inc.
|
48,719
|
|||
|
406
|
Allegion PLC
|
42,305
|
|||
|
664
|
Armstrong World Industries, Inc.
|
47,808
|
|||
|
678
|
Fortune Brands Innovations, Inc.
|
42,144
|
|||
|
149
|
Lennox International, Inc.
|
55,792
|
|||
|
850
|
Masco Corp.
|
45,433
|
|||
|
374
|
Owens Corning
|
51,017
|
|||
|
352
|
Simpson Manufacturing Co., Inc.
|
52,733
|
|||
|
349
|
UFP Industries, Inc.
|
35,738
|
|||
|
1,813
|
Zurn Elkay Water Solutions
Corp.
|
50,800
|
|||
|
|
|
560,643
|
|||
|
|
Capital Markets — 2.4%
|
|
|||
|
208
|
Affiliated Managers Group, Inc.
|
27,111
|
|||
|
538
|
Cohen & Steers, Inc.
|
33,727
|
|||
|
253
|
Evercore, Inc., Class A
|
34,884
|
|||
|
872
|
Federated Hermes, Inc.
|
29,535
|
|||
|
318
|
Houlihan Lokey, Inc.
|
34,064
|
|||
|
376
|
Interactive Brokers Group, Inc.,
Class A
|
32,547
|
|||
|
1,857
|
Invesco Ltd.
|
26,964
|
|||
|
942
|
Jefferies Financial Group, Inc.
|
34,505
|
|||
|
977
|
Lazard Ltd., Class A
|
30,297
|
|||
|
159
|
Morningstar, Inc.
|
37,244
|
|||
|
524
|
SEI Investments Co.
|
31,560
|
|||
See Notes to Financial Statements
Page 27
Mid Cap US Equity Select ETF (RNMC)
Portfolio of Investments (Continued)
September 30, 2023 (Unaudited)
Portfolio of Investments (Continued)
September 30, 2023 (Unaudited)
|
Shares
|
Description
|
Value
|
|||
|
COMMON STOCKS (Continued)
|
|||||
|
|
Capital Markets (Continued)
|
|
|||
|
523
|
Stifel Financial Corp.
|
$32,133
|
|||
|
456
|
Tradeweb Markets, Inc., Class A
|
36,571
|
|||
|
|
|
421,142
|
|||
|
|
Chemicals — 2.7%
|
|
|||
|
389
|
Ashland, Inc.
|
31,773
|
|||
|
829
|
Avient Corp.
|
29,280
|
|||
|
251
|
Balchem Corp.
|
31,134
|
|||
|
506
|
Cabot Corp.
|
35,051
|
|||
|
919
|
Chemours (The) Co.
|
25,778
|
|||
|
404
|
Eastman Chemical Co.
|
30,995
|
|||
|
1,765
|
Element Solutions, Inc.
|
34,612
|
|||
|
682
|
H.B. Fuller Co.
|
46,792
|
|||
|
1,254
|
Huntsman Corp.
|
30,598
|
|||
|
84
|
NewMarket Corp.
|
38,223
|
|||
|
659
|
Olin Corp.
|
32,937
|
|||
|
174
|
Quaker Chemical Corp.
|
27,840
|
|||
|
543
|
RPM International, Inc.
|
51,482
|
|||
|
540
|
Scotts Miracle-Gro (The) Co.
|
27,907
|
|||
|
|
|
474,402
|
|||
|
|
Commercial Services &
Supplies — 0.5%
|
|
|||
|
280
|
MSA Safety, Inc.
|
44,142
|
|||
|
298
|
Tetra Tech, Inc.
|
45,305
|
|||
|
|
|
89,447
|
|||
|
|
Communications Equipment
— 0.3%
|
|
|||
|
2,126
|
Juniper Networks, Inc.
|
59,082
|
|||
|
|
Construction & Engineering
— 1.3%
|
|
|||
|
576
|
AECOM
|
47,831
|
|||
|
297
|
Comfort Systems USA, Inc.
|
50,612
|
|||
|
264
|
EMCOR Group, Inc.
|
55,543
|
|||
|
2,328
|
MDU Resources Group, Inc.
|
45,582
|
|||
|
167
|
Valmont Industries, Inc.
|
40,115
|
|||
|
|
|
239,683
|
|||
|
|
Construction Materials —
0.2%
|
|
|||
|
261
|
Eagle Materials, Inc.
|
43,462
|
|||
|
|
Consumer Finance — 0.7%
|
|
|||
|
1,157
|
Ally Financial, Inc.
|
30,869
|
|||
|
335
|
FirstCash Holdings, Inc.
|
33,627
|
|||
|
715
|
OneMain Holdings, Inc.
|
28,664
|
|||
|
1,913
|
SLM Corp.
|
26,055
|
|||
|
|
|
119,215
|
|||
|
|
Consumer Staples Distribution
& Retail — 0.4%
|
|
|||
|
269
|
Casey’s General Stores, Inc.
|
73,039
|
|||
|
Shares
|
Description
|
Value
|
|||
|
|
|||||
|
|
Containers & Packaging —
2.4%
|
|
|||
|
421
|
AptarGroup, Inc.
|
$52,642
|
|||
|
758
|
Berry Global Group, Inc.
|
46,928
|
|||
|
561
|
Crown Holdings, Inc.
|
49,637
|
|||
|
2,029
|
Graphic Packaging Holding Co.
|
45,206
|
|||
|
708
|
Greif, Inc., Class A
|
47,302
|
|||
|
1,220
|
Sealed Air Corp.
|
40,089
|
|||
|
1,040
|
Silgan Holdings, Inc.
|
44,834
|
|||
|
826
|
Sonoco Products Co.
|
44,893
|
|||
|
1,677
|
Westrock Co.
|
60,037
|
|||
|
|
|
431,568
|
|||
|
|
Diversified Consumer Services
— 1.0%
|
|
|||
|
8,084
|
ADT, Inc.
|
48,504
|
|||
|
1,900
|
H&R Block, Inc.
|
81,814
|
|||
|
937
|
Service Corp. International
|
53,540
|
|||
|
|
|
183,858
|
|||
|
|
Diversified REITs — 0.2%
|
|
|||
|
1,573
|
Essential Properties Realty Trust,
Inc.
|
34,024
|
|||
|
|
Diversified Telecommunication
Services — 0.5%
|
|
|||
|
1,072
|
Iridium Communications, Inc.
|
48,765
|
|||
|
29,468
|
Lumen Technologies, Inc. (a)
|
41,845
|
|||
|
|
|
90,610
|
|||
|
|
Electric Utilities — 1.2%
|
|
|||
|
608
|
ALLETE, Inc.
|
32,102
|
|||
|
976
|
Hawaiian Electric Industries, Inc.
|
12,015
|
|||
|
344
|
IDACORP, Inc.
|
32,216
|
|||
|
943
|
NRG Energy, Inc.
|
36,324
|
|||
|
983
|
OGE Energy Corp.
|
32,763
|
|||
|
433
|
Pinnacle West Capital Corp.
|
31,904
|
|||
|
753
|
Portland General Electric Co.
|
30,481
|
|||
|
|
|
207,805
|
|||
|
|
Electrical Equipment — 2.1%
|
|
|||
|
299
|
Acuity Brands, Inc.
|
50,922
|
|||
|
449
|
EnerSys
|
42,507
|
|||
|
317
|
Regal Rexnord Corp.
|
45,293
|
|||
|
6,525
|
Vertiv Holdings Co.
|
242,730
|
|||
|
|
|
381,452
|
|||
|
|
Electronic Equipment,
Instruments & Components
— 5.2%
|
|
|||
|
1,450
|
Advanced Energy Industries,
Inc.
|
149,524
|
|||
|
3,204
|
Avnet, Inc.
|
154,401
|
|||
|
330
|
Badger Meter, Inc.
|
47,477
|
|||
|
510
|
Belden, Inc.
|
49,241
|
|||
|
870
|
Cognex Corp.
|
36,923
|
|||
|
864
|
Crane NXT Co.
|
48,013
|
|||
See Notes to Financial Statements
Page 28
Mid Cap US Equity Select ETF (RNMC)
Portfolio of Investments (Continued)
September 30, 2023 (Unaudited)
Portfolio of Investments (Continued)
September 30, 2023 (Unaudited)
|
Shares
|
Description
|
Value
|
|||
|
COMMON STOCKS (Continued)
|
|||||
|
|
Electronic Equipment,
Instruments & Components
(Continued)
|
|
|||
|
1,497
|
Jabil, Inc.
|
$189,954
|
|||
|
167
|
Littelfuse, Inc.
|
41,302
|
|||
|
1,719
|
TD SYNNEX Corp.
|
171,659
|
|||
|
1,513
|
Vontier Corp.
|
46,782
|
|||
|
|
|
935,276
|
|||
|
|
Energy Equipment & Services
— 1.4%
|
|
|||
|
1,017
|
Cactus, Inc., Class A
|
51,063
|
|||
|
1,387
|
ChampionX Corp.
|
49,405
|
|||
|
1,214
|
Helmerich & Payne, Inc.
|
51,182
|
|||
|
2,683
|
NOV, Inc.
|
56,075
|
|||
|
3,596
|
Patterson-UTI Energy, Inc.
|
49,769
|
|||
|
|
|
257,494
|
|||
|
|
Entertainment — 0.4%
|
|
|||
|
2,320
|
Warner Music Group Corp.,
Class A
|
72,848
|
|||
|
|
Financial Services — 1.4%
|
|
|||
|
1,149
|
Equitable Holdings, Inc.
|
32,620
|
|||
|
667
|
Essent Group Ltd.
|
31,542
|
|||
|
1,021
|
Jackson Financial, Inc., Class A
|
39,023
|
|||
|
1,977
|
MGIC Investment Corp.
|
32,996
|
|||
|
1,235
|
Radian Group, Inc.
|
31,011
|
|||
|
435
|
Voya Financial, Inc.
|
28,906
|
|||
|
4,156
|
Western Union (The) Co.
|
54,776
|
|||
|
|
|
250,874
|
|||
|
|
Food Products — 1.3%
|
|
|||
|
2,639
|
Flowers Foods, Inc.
|
58,533
|
|||
|
620
|
Ingredion, Inc.
|
61,008
|
|||
|
327
|
Lancaster Colony Corp.
|
53,965
|
|||
|
18
|
Seaboard Corp.
|
67,554
|
|||
|
|
|
241,060
|
|||
|
|
Gas Utilities — 1.1%
|
|
|||
|
687
|
National Fuel Gas Co.
|
35,662
|
|||
|
747
|
New Jersey Resources Corp.
|
30,351
|
|||
|
459
|
ONE Gas, Inc.
|
31,341
|
|||
|
554
|
Southwest Gas Holdings, Inc.
|
33,467
|
|||
|
556
|
Spire, Inc.
|
31,458
|
|||
|
1,309
|
UGI Corp.
|
30,107
|
|||
|
|
|
192,386
|
|||
|
|
Ground Transportation —
0.8%
|
|
|||
|
877
|
Knight-Swift Transportation
Holdings, Inc.
|
43,982
|
|||
|
253
|
Landstar System, Inc.
|
44,766
|
|||
|
575
|
Ryder System, Inc.
|
61,496
|
|||
|
|
|
150,244
|
|||
|
Shares
|
Description
|
Value
|
|||
|
|
|||||
|
|
Health Care Equipment &
Supplies — 1.8%
|
|
|||
|
4,918
|
DENTSPLY SIRONA, Inc.
|
$167,999
|
|||
|
813
|
Teleflex, Inc.
|
159,681
|
|||
|
|
|
327,680
|
|||
|
|
Health Care Providers &
Services — 5.8%
|
|
|||
|
363
|
Chemed Corp.
|
188,651
|
|||
|
2,907
|
Encompass Health Corp.
|
195,234
|
|||
|
2,062
|
Ensign Group (The), Inc.
|
191,622
|
|||
|
7,116
|
Premier, Inc., Class A
|
152,994
|
|||
|
6,178
|
Select Medical Holdings Corp.
|
156,118
|
|||
|
1,248
|
Universal Health Services, Inc.,
Class B
|
156,911
|
|||
|
|
|
1,041,530
|
|||
|
|
Health Care REITs — 0.7%
|
|
|||
|
1,963
|
Healthcare Realty Trust, Inc.
|
29,975
|
|||
|
4,004
|
Medical Properties Trust, Inc.
|
21,822
|
|||
|
1,208
|
Omega Healthcare Investors, Inc.
|
40,057
|
|||
|
2,650
|
Physicians Realty Trust
|
32,304
|
|||
|
|
|
124,158
|
|||
|
|
Hotel & Resort REITs — 0.4%
|
|
|||
|
2,451
|
Apple Hospitality REIT, Inc.
|
37,598
|
|||
|
399
|
Ryman Hospitality Properties,
Inc.
|
33,229
|
|||
|
|
|
70,827
|
|||
|
|
Hotels, Restaurants & Leisure
— 3.9%
|
|
|||
|
1,406
|
Aramark
|
48,788
|
|||
|
873
|
Boyd Gaming Corp.
|
53,104
|
|||
|
515
|
Choice Hotels International, Inc.
|
63,093
|
|||
|
435
|
Churchill Downs, Inc.
|
50,477
|
|||
|
528
|
Hyatt Hotels Corp., Class A
|
56,010
|
|||
|
493
|
Marriott Vacations Worldwide
Corp.
|
49,610
|
|||
|
539
|
Texas Roadhouse, Inc.
|
51,798
|
|||
|
1,501
|
Travel + Leisure Co.
|
55,132
|
|||
|
240
|
Vail Resorts, Inc.
|
53,254
|
|||
|
2,783
|
Wendy’s (The) Co.
|
56,801
|
|||
|
302
|
Wingstop, Inc.
|
54,312
|
|||
|
883
|
Wyndham Hotels & Resorts, Inc.
|
61,404
|
|||
|
573
|
Wynn Resorts Ltd.
|
52,951
|
|||
|
|
|
706,734
|
|||
|
|
Household Durables — 1.9%
|
|
|||
|
2,044
|
Leggett & Platt, Inc.
|
51,938
|
|||
|
426
|
Meritage Homes Corp.
|
52,138
|
|||
|
6,959
|
Newell Brands, Inc.
|
62,840
|
|||
|
1,511
|
Tempur Sealy International, Inc.
|
65,487
|
|||
|
766
|
Toll Brothers, Inc.
|
56,653
|
|||
|
407
|
Whirlpool Corp.
|
54,416
|
|||
|
|
|
343,472
|
|||
See Notes to Financial Statements
Page 29
Mid Cap US Equity Select ETF (RNMC)
Portfolio of Investments (Continued)
September 30, 2023 (Unaudited)
Portfolio of Investments (Continued)
September 30, 2023 (Unaudited)
|
Shares
|
Description
|
Value
|
|||
|
COMMON STOCKS (Continued)
|
|||||
|
|
Household Products — 0.3%
|
|
|||
|
2,324
|
Reynolds Consumer Products,
Inc.
|
$59,564
|
|||
|
|
Independent Power and
Renewable Electricity
Producers — 0.6%
|
|
|||
|
1,235
|
Clearway Energy, Inc., Class C
|
26,133
|
|||
|
438
|
Ormat Technologies, Inc.
|
30,625
|
|||
|
1,345
|
Vistra Corp.
|
44,627
|
|||
|
|
|
101,385
|
|||
|
|
Industrial REITs — 1.2%
|
|
|||
|
1,146
|
Americold Realty Trust, Inc.
|
34,850
|
|||
|
213
|
EastGroup Properties, Inc.
|
35,471
|
|||
|
703
|
First Industrial Realty Trust, Inc.
|
33,455
|
|||
|
709
|
Rexford Industrial Realty, Inc.
|
34,989
|
|||
|
1,033
|
STAG Industrial, Inc.
|
35,649
|
|||
|
616
|
Terreno Realty Corp.
|
34,989
|
|||
|
|
|
209,403
|
|||
|
|
Insurance — 3.8%
|
|
|||
|
599
|
American Equity Investment
Life Holding Co.
|
32,130
|
|||
|
263
|
American Financial Group, Inc.
|
29,369
|
|||
|
248
|
Assurant, Inc.
|
35,608
|
|||
|
560
|
Assured Guaranty Ltd.
|
33,891
|
|||
|
580
|
Axis Capital Holdings Ltd.
|
32,695
|
|||
|
149
|
Erie Indemnity Co., Class A
|
43,775
|
|||
|
867
|
Fidelity National Financial, Inc.
|
35,807
|
|||
|
548
|
First American Financial Corp.
|
30,957
|
|||
|
285
|
Globe Life, Inc.
|
30,988
|
|||
|
276
|
Hanover Insurance Group (The),
Inc.
|
30,630
|
|||
|
647
|
Kemper Corp.
|
27,193
|
|||
|
83
|
Kinsale Capital Group, Inc.
|
34,373
|
|||
|
1,212
|
Lincoln National Corp.
|
29,924
|
|||
|
1,240
|
Old Republic International Corp.
|
33,406
|
|||
|
158
|
Primerica, Inc.
|
30,654
|
|||
|
225
|
Reinsurance Group of America,
Inc.
|
32,668
|
|||
|
167
|
RenaissanceRe Holdings Ltd.
|
33,053
|
|||
|
229
|
RLI Corp.
|
31,119
|
|||
|
325
|
Selective Insurance Group, Inc.
|
33,530
|
|||
|
655
|
Unum Group
|
32,219
|
|||
|
22
|
White Mountains Insurance
Group Ltd.
|
32,905
|
|||
|
|
|
686,894
|
|||
|
|
Leisure Products — 0.9%
|
|
|||
|
563
|
Brunswick Corp.
|
44,477
|
|||
|
935
|
Hasbro, Inc.
|
61,841
|
|||
|
501
|
Polaris, Inc.
|
52,174
|
|||
|
|
|
158,492
|
|||
|
Shares
|
Description
|
Value
|
|||
|
|
|||||
|
|
Life Sciences Tools & Services
— 0.9%
|
|
|||
|
2,663
|
Bruker Corp.
|
$165,905
|
|||
|
|
Machinery — 4.5%
|
|
|||
|
371
|
AGCO Corp.
|
43,882
|
|||
|
523
|
Albany International Corp.,
Class A
|
45,125
|
|||
|
863
|
Allison Transmission Holdings,
Inc.
|
50,969
|
|||
|
547
|
Crane Co.
|
48,596
|
|||
|
780
|
Donaldson Co., Inc.
|
46,519
|
|||
|
733
|
Esab Corp.
|
51,471
|
|||
|
1,312
|
Flowserve Corp.
|
52,178
|
|||
|
474
|
Franklin Electric Co., Inc.
|
42,295
|
|||
|
565
|
Graco, Inc.
|
41,177
|
|||
|
523
|
ITT, Inc.
|
51,207
|
|||
|
402
|
John Bean Technologies Corp.
|
42,266
|
|||
|
245
|
Lincoln Electric Holdings, Inc.
|
44,539
|
|||
|
388
|
Mueller Industries, Inc.
|
29,162
|
|||
|
563
|
Oshkosh Corp.
|
53,727
|
|||
|
815
|
Terex Corp.
|
46,960
|
|||
|
370
|
Timken (The) Co.
|
27,191
|
|||
|
480
|
Toro (The) Co.
|
39,888
|
|||
|
265
|
Watts Water Technologies, Inc.,
Class A
|
45,797
|
|||
|
|
|
802,949
|
|||
|
|
Media — 1.3%
|
|
|||
|
101
|
Cable One, Inc.
|
62,180
|
|||
|
1,537
|
New York Times (The) Co.,
Class A
|
63,325
|
|||
|
3,105
|
News Corp., Class A
|
62,286
|
|||
|
363
|
Nexstar Media Group, Inc.
|
52,043
|
|||
|
|
|
239,834
|
|||
|
|
Metals & Mining — 0.9%
|
|
|||
|
999
|
Alcoa Corp.
|
29,031
|
|||
|
643
|
Commercial Metals Co.
|
31,771
|
|||
|
6,582
|
Hecla Mining Co.
|
25,736
|
|||
|
295
|
Royal Gold, Inc.
|
31,367
|
|||
|
1,353
|
United States Steel Corp.
|
43,945
|
|||
|
|
|
161,850
|
|||
|
|
Mortgage REITs — 0.9%
|
|
|||
|
3,086
|
AGNC Investment Corp.
|
29,132
|
|||
|
1,560
|
Annaly Capital Management,
Inc.
|
29,344
|
|||
|
1,500
|
Blackstone Mortgage Trust, Inc.,
Class A
|
32,625
|
|||
|
3,339
|
Rithm Capital Corp.
|
31,019
|
|||
|
1,609
|
Starwood Property Trust, Inc.
|
31,134
|
|||
|
|
|
153,254
|
|||
See Notes to Financial Statements
Page 30
Mid Cap US Equity Select ETF (RNMC)
Portfolio of Investments (Continued)
September 30, 2023 (Unaudited)
Portfolio of Investments (Continued)
September 30, 2023 (Unaudited)
|
Shares
|
Description
|
Value
|
|||
|
COMMON STOCKS (Continued)
|
|||||
|
|
Multi-Utilities — 0.3%
|
|
|||
|
585
|
Black Hills Corp.
|
$29,595
|
|||
|
1,289
|
NiSource, Inc.
|
31,813
|
|||
|
|
|
61,408
|
|||
|
|
Office REITs — 0.9%
|
|
|||
|
643
|
Boston Properties, Inc.
|
38,246
|
|||
|
1,624
|
Cousins Properties, Inc.
|
33,081
|
|||
|
1,232
|
Kilroy Realty Corp.
|
38,943
|
|||
|
2,041
|
Vornado Realty Trust
|
46,290
|
|||
|
|
|
156,560
|
|||
|
|
Oil, Gas & Consumable Fuels
— 3.8%
|
|
|||
|
3,710
|
Antero Midstream Corp.
|
44,446
|
|||
|
514
|
Chesapeake Energy Corp.
|
44,322
|
|||
|
280
|
Chord Energy Corp.
|
45,380
|
|||
|
620
|
Civitas Resources, Inc.
|
50,139
|
|||
|
868
|
DT Midstream, Inc.
|
45,935
|
|||
|
1,046
|
EQT Corp.
|
42,447
|
|||
|
965
|
HF Sinclair Corp.
|
54,937
|
|||
|
2,059
|
Magnolia Oil & Gas Corp.,
Class A
|
47,172
|
|||
|
823
|
Matador Resources Co.
|
48,952
|
|||
|
1,124
|
Murphy Oil Corp.
|
50,973
|
|||
|
1,051
|
PBF Energy, Inc., Class A
|
56,260
|
|||
|
1,987
|
Peabody Energy Corp.
|
51,642
|
|||
|
1,464
|
Range Resources Corp.
|
47,448
|
|||
|
1,361
|
SM Energy Co.
|
53,964
|
|||
|
|
|
684,017
|
|||
|
|
Paper & Forest Products —
0.2%
|
|
|||
|
650
|
Louisiana-Pacific Corp.
|
35,925
|
|||
|
|
Personal Care Products —
0.3%
|
|
|||
|
448
|
Inter Parfums, Inc.
|
60,184
|
|||
|
|
Pharmaceuticals — 2.0%
|
|
|||
|
9,459
|
Organon & Co.
|
164,208
|
|||
|
5,798
|
Perrigo Co. PLC
|
185,246
|
|||
|
|
|
349,454
|
|||
|
|
Professional Services — 4.8%
|
|
|||
|
2,001
|
Concentrix Corp.
|
160,300
|
|||
|
13,969
|
Dun & Bradstreet Holdings, Inc.
|
139,550
|
|||
|
522
|
Exponent, Inc.
|
44,683
|
|||
|
1,297
|
Genpact Ltd.
|
46,951
|
|||
|
410
|
Insperity, Inc.
|
40,016
|
|||
|
2,484
|
KBR, Inc.
|
146,407
|
|||
|
614
|
ManpowerGroup, Inc.
|
45,019
|
|||
|
577
|
Maximus, Inc.
|
43,090
|
|||
|
Shares
|
Description
|
Value
|
|||
|
|
|||||
|
|
Professional Services
(Continued)
|
|
|||
|
648
|
Robert Half, Inc.
|
$47,486
|
|||
|
1,437
|
Science Applications
International Corp.
|
151,661
|
|||
|
|
|
865,163
|
|||
|
|
Residential REITs — 0.5%
|
|
|||
|
1,046
|
American Homes 4 Rent,
Class A
|
35,240
|
|||
|
1,027
|
Apartment Income REIT Corp.
|
31,529
|
|||
|
2,032
|
Independence Realty Trust, Inc.
|
28,590
|
|||
|
|
|
95,359
|
|||
|
|
Retail REITs — 1.3%
|
|
|||
|
566
|
Agree Realty Corp.
|
31,266
|
|||
|
1,683
|
Brixmor Property Group, Inc.
|
34,973
|
|||
|
1,658
|
Kite Realty Group Trust
|
35,514
|
|||
|
865
|
NNN REIT, Inc.
|
30,569
|
|||
|
1,088
|
Phillips Edison & Co., Inc.
|
36,491
|
|||
|
599
|
Regency Centers Corp.
|
35,605
|
|||
|
940
|
Spirit Realty Capital, Inc.
|
31,518
|
|||
|
|
|
235,936
|
|||
|
|
Semiconductors &
Semiconductor Equipment
— 3.4%
|
|
|||
|
5,433
|
Amkor Technology, Inc.
|
122,786
|
|||
|
1,458
|
Entegris, Inc.
|
136,921
|
|||
|
451
|
MKS Instruments, Inc.
|
39,029
|
|||
|
1,707
|
Power Integrations, Inc.
|
130,261
|
|||
|
1,121
|
Universal Display Corp.
|
175,986
|
|||
|
|
|
604,983
|
|||
|
|
Software — 1.7%
|
|
|||
|
2,980
|
Bentley Systems, Inc., Class B
|
149,477
|
|||
|
1,931
|
Dolby Laboratories, Inc.,
Class A
|
153,051
|
|||
|
|
|
302,528
|
|||
|
|
Specialized REITs — 0.9%
|
|
|||
|
830
|
CubeSmart
|
31,648
|
|||
|
373
|
Lamar Advertising Co., Class A
|
31,134
|
|||
|
1,063
|
National Storage Affiliates Trust
|
33,740
|
|||
|
701
|
PotlatchDeltic Corp.
|
31,819
|
|||
|
1,179
|
Rayonier, Inc.
|
33,554
|
|||
|
|
|
161,895
|
|||
|
|
Specialty Retail — 3.8%
|
|
|||
|
1,120
|
Academy Sports & Outdoors,
Inc.
|
52,942
|
|||
|
861
|
Advance Auto Parts, Inc.
|
48,156
|
|||
|
1,614
|
Bath & Body Works, Inc.
|
54,553
|
|||
|
458
|
Dick’s Sporting Goods, Inc.
|
49,730
|
|||
|
2,233
|
Foot Locker, Inc.
|
38,742
|
|||
|
6,779
|
Gap (The), Inc.
|
72,061
|
|||
|
199
|
Lithia Motors, Inc.
|
58,771
|
|||
See Notes to Financial Statements
Page 31
Mid Cap US Equity Select ETF (RNMC)
Portfolio of Investments (Continued)
September 30, 2023 (Unaudited)
Portfolio of Investments (Continued)
September 30, 2023 (Unaudited)
|
Shares
|
Description
|
Value
|
|||
|
COMMON STOCKS (Continued)
|
|||||
|
|
Specialty Retail (Continued)
|
|
|||
|
195
|
Murphy USA, Inc.
|
$66,637
|
|||
|
363
|
Penske Automotive Group, Inc.
|
60,643
|
|||
|
928
|
Signet Jewelers Ltd.
|
66,640
|
|||
|
902
|
Valvoline, Inc.
|
29,080
|
|||
|
484
|
Williams-Sonoma, Inc.
|
75,214
|
|||
|
|
|
673,169
|
|||
|
|
Technology Hardware, Storage
& Peripherals — 1.2%
|
|
|||
|
2,987
|
Dell Technologies, Inc., Class C
|
205,804
|
|||
|
|
Textiles, Apparel & Luxury
Goods — 1.5%
|
|
|||
|
784
|
Columbia Sportswear Co.
|
58,094
|
|||
|
712
|
PVH Corp.
|
54,475
|
|||
|
491
|
Ralph Lauren Corp.
|
57,000
|
|||
|
1,414
|
Tapestry, Inc.
|
40,653
|
|||
|
3,171
|
VF Corp.
|
56,032
|
|||
|
|
|
266,254
|
|||
|
|
Trading Companies &
Distributors — 1.8%
|
|
|||
|
1,166
|
Air Lease Corp.
|
45,952
|
|||
|
337
|
Applied Industrial Technologies,
Inc.
|
52,103
|
|||
|
379
|
GATX Corp.
|
41,247
|
|||
|
356
|
Herc Holdings, Inc.
|
42,343
|
|||
|
512
|
MSC Industrial Direct Co., Inc.,
Class A
|
50,253
|
|||
|
128
|
Watsco, Inc.
|
48,348
|
|||
|
272
|
WESCO International, Inc.
|
39,119
|
|||
|
|
|
319,365
|
|||
|
|
Water Utilities — 0.2%
|
|
|||
|
405
|
American States Water Co.
|
31,865
|
|||
|
|
|||||
|
|
|||||
|
|
Total Investments — 99.8%
|
17,911,456
|
|||
|
|
(Cost $18,756,231)
|
|
|||
|
|
Net Other Assets and
Liabilities — 0.2%
|
29,520
|
|||
|
|
Net Assets — 100.0%
|
$17,940,976
|
|||
|
(a)
|
Non-income producing security.
|
Valuation Inputs
A summary of the inputs used to value the Fund’s investments as of September 30, 2023 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements):
|
|
Total
Value at
9/30/2023
|
Level 1
Quoted
Prices
|
Level 2
Significant
Observable
Inputs
|
Level 3
Significant
Unobservable
Inputs
|
|
Common Stocks*
|
$ 17,911,456
|
$ 17,911,456
|
$ —
|
$ —
|
|
*
|
See Portfolio of Investments for industry breakout.
|
See Notes to Financial Statements
Page 32
Small Cap US Equity Select ETF (RNSC)
Portfolio of Investments
September 30, 2023 (Unaudited)
Portfolio of Investments
September 30, 2023 (Unaudited)
|
Shares
|
Description
|
Value
|
|||
|
COMMON STOCKS — 99.8%
|
|||||
|
|
Aerospace & Defense — 0.3%
|
|
|||
|
820
|
Moog, Inc., Class A
|
$92,627
|
|||
|
|
Air Freight & Logistics —
0.2%
|
|
|||
|
838
|
Forward Air Corp.
|
57,604
|
|||
|
|
Automobile Components —
1.0%
|
|
|||
|
6,041
|
Dana, Inc.
|
88,622
|
|||
|
813
|
LCI Industries
|
95,462
|
|||
|
1,112
|
Patrick Industries, Inc.
|
83,467
|
|||
|
|
|
267,551
|
|||
|
|
Automobiles — 0.3%
|
|
|||
|
1,540
|
Winnebago Industries, Inc.
|
91,553
|
|||
|
|
Banks — 9.7%
|
|
|||
|
1,010
|
1st Source Corp.
|
42,511
|
|||
|
1,238
|
Ameris Bancorp
|
47,527
|
|||
|
2,610
|
Associated Banc-Corp.
|
44,657
|
|||
|
1,633
|
Atlantic Union Bankshares Corp.
|
46,998
|
|||
|
461
|
BancFirst Corp.
|
39,982
|
|||
|
1,028
|
Bank of Hawaii Corp. (a)
|
51,081
|
|||
|
1,966
|
BankUnited, Inc.
|
44,628
|
|||
|
970
|
Banner Corp.
|
41,109
|
|||
|
2,044
|
Berkshire Hills Bancorp, Inc.
|
40,982
|
|||
|
4,848
|
Brookline Bancorp, Inc.
|
44,165
|
|||
|
6,867
|
Capitol Federal Financial, Inc.
|
32,756
|
|||
|
1,316
|
Cathay General Bancorp
|
45,744
|
|||
|
471
|
City Holding Co.
|
42,555
|
|||
|
2,089
|
Columbia Banking System, Inc.
|
42,407
|
|||
|
904
|
Community Bank System, Inc.
|
38,158
|
|||
|
2,403
|
Dime Community Bancshares,
Inc.
|
47,964
|
|||
|
2,002
|
Eagle Bancorp, Inc.
|
42,943
|
|||
|
3,453
|
Eastern Bankshares, Inc.
|
43,301
|
|||
|
1,084
|
Enterprise Financial Services
Corp.
|
40,650
|
|||
|
1,510
|
FB Financial Corp.
|
42,824
|
|||
|
1,424
|
First Bancorp
|
40,071
|
|||
|
3,467
|
First BanCorp
|
46,666
|
|||
|
2,108
|
First Busey Corp.
|
40,516
|
|||
|
3,349
|
First Commonwealth Financial
Corp.
|
40,891
|
|||
|
2,073
|
First Financial Bancorp
|
40,631
|
|||
|
1,501
|
First Merchants Corp.
|
41,758
|
|||
|
3,554
|
Fulton Financial Corp.
|
43,039
|
|||
|
1,520
|
Heartland Financial USA, Inc.
|
44,734
|
|||
|
1,347
|
Hilltop Holdings, Inc.
|
38,201
|
|||
|
5,032
|
Hope Bancorp, Inc.
|
44,533
|
|||
|
1,227
|
Independent Bank Group, Inc.
|
48,528
|
|||
|
959
|
International Bancshares Corp.
|
41,563
|
|||
|
873
|
Lakeland Financial Corp.
|
41,433
|
|||
|
1,610
|
Live Oak Bancshares, Inc.
|
46,609
|
|||
|
Shares
|
Description
|
Value
|
|||
|
|
|||||
|
|
Banks (Continued)
|
|
|||
|
1,459
|
National Bank Holdings Corp.,
Class A
|
$43,420
|
|||
|
1,330
|
NBT Bancorp, Inc.
|
42,148
|
|||
|
3,997
|
Northwest Bancshares, Inc.
|
40,889
|
|||
|
2,712
|
OceanFirst Financial Corp.
|
39,243
|
|||
|
1,624
|
OFG Bancorp
|
48,493
|
|||
|
1,446
|
Origin Bancorp, Inc.
|
41,746
|
|||
|
2,049
|
Pacific Premier Bancorp, Inc.
|
44,586
|
|||
|
5,198
|
PacWest Bancorp
|
41,116
|
|||
|
414
|
Park National Corp.
|
39,131
|
|||
|
914
|
Pathward Financial, Inc.
|
42,126
|
|||
|
2,593
|
Provident Financial Services,
Inc.
|
39,647
|
|||
|
1,621
|
Renasant Corp.
|
42,454
|
|||
|
1,558
|
S&T Bancorp, Inc.
|
42,191
|
|||
|
1,868
|
Sandy Spring Bancorp, Inc.
|
40,031
|
|||
|
1,917
|
Seacoast Banking Corp. of
Florida
|
42,097
|
|||
|
2,456
|
Simmons First National Corp.,
Class A
|
41,654
|
|||
|
1,620
|
Southside Bancshares, Inc.
|
46,494
|
|||
|
1,851
|
Stellar Bancorp, Inc.
|
39,463
|
|||
|
934
|
Stock Yards Bancorp, Inc.
|
36,697
|
|||
|
1,823
|
TowneBank
|
41,801
|
|||
|
1,276
|
TriCo Bancshares
|
40,870
|
|||
|
2,006
|
Trustmark Corp.
|
43,590
|
|||
|
2,363
|
Veritex Holdings, Inc.
|
42,416
|
|||
|
1,598
|
Washington Federal, Inc.
|
40,941
|
|||
|
1,654
|
WesBanco, Inc.
|
40,391
|
|||
|
1,106
|
Westamerica BanCorp
|
47,834
|
|||
|
1,123
|
WSFS Financial Corp.
|
40,989
|
|||
|
|
|
2,594,573
|
|||
|
|
Beverages — 0.2%
|
|
|||
|
596
|
MGP Ingredients, Inc.
|
62,866
|
|||
|
|
Broadline Retail — 0.3%
|
|
|||
|
5,017
|
Nordstrom, Inc.
|
74,954
|
|||
|
|
Building Products — 0.7%
|
|
|||
|
535
|
CSW Industrials, Inc.
|
93,754
|
|||
|
2,208
|
Griffon Corp.
|
87,591
|
|||
|
|
|
181,345
|
|||
|
|
Capital Markets — 2.2%
|
|
|||
|
1,078
|
Artisan Partners Asset
Management, Inc., Class A
|
40,339
|
|||
|
921
|
B. Riley Financial, Inc.
|
37,752
|
|||
|
9,592
|
BGC Group, Inc., Class A
|
50,646
|
|||
|
3,138
|
Golub Capital BDC, Inc.
|
46,034
|
|||
|
530
|
Hamilton Lane, Inc., Class A
|
47,933
|
|||
|
934
|
Moelis & Co., Class A
|
42,151
|
|||
|
328
|
Piper Sandler Cos.
|
47,662
|
|||
|
608
|
PJT Partners, Inc., Class A
|
48,299
|
|||
|
1,708
|
StepStone Group, Inc., Class A
|
53,939
|
|||
See Notes to Financial Statements
Page 33
Small Cap US Equity Select ETF (RNSC)
Portfolio of Investments (Continued)
September 30, 2023 (Unaudited)
Portfolio of Investments (Continued)
September 30, 2023 (Unaudited)
|
Shares
|
Description
|
Value
|
|||
|
COMMON STOCKS (Continued)
|
|||||
|
|
Capital Markets (Continued)
|
|
|||
|
1,448
|
TPG, Inc.
|
$43,614
|
|||
|
1,343
|
Victory Capital Holdings, Inc.,
Class A
|
44,776
|
|||
|
2,479
|
Virtu Financial, Inc., Class A
|
42,812
|
|||
|
215
|
Virtus Investment Partners, Inc.
|
43,428
|
|||
|
|
|
589,385
|
|||
|
|
Chemicals — 1.2%
|
|
|||
|
1,473
|
AdvanSix, Inc.
|
45,781
|
|||
|
513
|
Innospec, Inc.
|
52,428
|
|||
|
3,409
|
Mativ Holdings, Inc.
|
48,612
|
|||
|
893
|
Minerals Technologies, Inc.
|
48,901
|
|||
|
2,429
|
Orion S.A.
|
51,689
|
|||
|
725
|
Sensient Technologies Corp.
|
42,398
|
|||
|
539
|
Stepan Co.
|
40,409
|
|||
|
|
|
330,218
|
|||
|
|
Commercial Services &
Supplies — 2.5%
|
|
|||
|
2,086
|
ABM Industries, Inc.
|
83,461
|
|||
|
1,870
|
Brady Corp., Class A
|
102,700
|
|||
|
1,312
|
Brink’s (The) Co.
|
95,303
|
|||
|
3,644
|
HNI Corp.
|
126,192
|
|||
|
6,949
|
MillerKnoll, Inc.
|
169,903
|
|||
|
574
|
UniFirst Corp.
|
93,568
|
|||
|
|
|
671,127
|
|||
|
|
Communications Equipment
— 0.4%
|
|
|||
|
13,888
|
ADTRAN Holdings, Inc.
|
114,298
|
|||
|
|
Construction & Engineering
— 1.0%
|
|
|||
|
1,283
|
Arcosa, Inc.
|
92,248
|
|||
|
2,236
|
Granite Construction, Inc.
|
85,013
|
|||
|
2,920
|
Primoris Services Corp.
|
95,571
|
|||
|
|
|
272,832
|
|||
|
|
Consumer Finance — 0.7%
|
|
|||
|
2,834
|
Bread Financial Holdings, Inc.
|
96,923
|
|||
|
2,280
|
Navient Corp.
|
39,262
|
|||
|
439
|
Nelnet, Inc., Class A
|
39,211
|
|||
|
|
|
175,396
|
|||
|
|
Consumer Staples Distribution
& Retail — 1.1%
|
|
|||
|
1,372
|
Andersons (The), Inc.
|
70,672
|
|||
|
766
|
Ingles Markets, Inc., Class A
|
57,703
|
|||
|
1,387
|
PriceSmart, Inc.
|
103,234
|
|||
|
986
|
Weis Markets, Inc.
|
62,118
|
|||
|
|
|
293,727
|
|||
|
Shares
|
Description
|
Value
|
|||
|
|
|||||
|
|
Containers & Packaging —
0.7%
|
|
|||
|
11,752
|
Pactiv Evergreen, Inc.
|
$95,544
|
|||
|
3,236
|
TriMas Corp.
|
80,123
|
|||
|
|
|
175,667
|
|||
|
|
Diversified Consumer Services
— 0.8%
|
|
|||
|
180
|
Graham Holdings Co., Class B
|
104,940
|
|||
|
1,514
|
Strategic Education, Inc.
|
113,928
|
|||
|
|
|
218,868
|
|||
|
|
Diversified REITs — 0.8%
|
|
|||
|
2,371
|
Alexander & Baldwin, Inc.
|
39,667
|
|||
|
2,294
|
American Assets Trust, Inc.
|
44,618
|
|||
|
2,853
|
Broadstone Net Lease, Inc.
|
40,798
|
|||
|
5,881
|
Empire State Realty Trust, Inc.,
Class A
|
47,283
|
|||
|
4,285
|
Global Net Lease, Inc.
|
41,179
|
|||
|
|
|
213,545
|
|||
|
|
Diversified Telecommunication
Services — 0.5%
|
|
|||
|
2,173
|
Cogent Communications
Holdings, Inc.
|
134,509
|
|||
|
|
Electric Utilities — 0.5%
|
|
|||
|
749
|
MGE Energy, Inc.
|
51,314
|
|||
|
1,127
|
Otter Tail Corp.
|
85,562
|
|||
|
|
|
136,876
|
|||
|
|
Electrical Equipment — 0.5%
|
|
|||
|
478
|
Encore Wire Corp.
|
87,216
|
|||
|
10,226
|
GrafTech International Ltd.
|
39,165
|
|||
|
|
|
126,381
|
|||
|
|
Electronic Equipment,
Instruments & Components
— 3.7%
|
|
|||
|
9,325
|
CTS Corp.
|
389,225
|
|||
|
11,860
|
Methode Electronics, Inc.
|
271,001
|
|||
|
13,522
|
Vishay Intertechnology, Inc.
|
334,264
|
|||
|
|
|
994,490
|
|||
|
|
Energy Equipment & Services
— 1.4%
|
|
|||
|
9,483
|
Archrock, Inc.
|
119,486
|
|||
|
7,270
|
Liberty Energy, Inc.
|
134,641
|
|||
|
13,594
|
RPC, Inc.
|
121,530
|
|||
|
|
|
375,657
|
|||
|
|
Financial Services — 1.1%
|
|
|||
|
1,953
|
Compass Diversified Holdings
|
36,658
|
|||
|
2,416
|
EVERTEC, Inc.
|
89,827
|
|||
|
295
|
Federal Agricultural Mortgage
Corp., Class C
|
45,518
|
|||
|
1,656
|
Merchants Bancorp
|
45,904
|
|||
See Notes to Financial Statements
Page 34
Small Cap US Equity Select ETF (RNSC)
Portfolio of Investments (Continued)
September 30, 2023 (Unaudited)
Portfolio of Investments (Continued)
September 30, 2023 (Unaudited)
|
Shares
|
Description
|
Value
|
|||
|
COMMON STOCKS (Continued)
|
|||||
|
|
Financial Services (Continued)
|
|
|||
|
603
|
PennyMac Financial Services,
Inc.
|
$40,160
|
|||
|
536
|
Walker & Dunlop, Inc.
|
39,793
|
|||
|
|
|
297,860
|
|||
|
|
Food Products — 1.1%
|
|
|||
|
1,407
|
Cal-Maine Foods, Inc.
|
68,127
|
|||
|
2,463
|
Fresh Del Monte Produce, Inc.
|
63,644
|
|||
|
400
|
J & J Snack Foods Corp.
|
65,460
|
|||
|
1,788
|
Tootsie Roll Industries, Inc.
|
53,390
|
|||
|
3,870
|
Utz Brands, Inc.
|
51,974
|
|||
|
|
|
302,595
|
|||
|
|
Gas Utilities — 0.4%
|
|
|||
|
498
|
Chesapeake Utilities Corp.
|
48,680
|
|||
|
1,376
|
Northwest Natural Holding Co.
|
52,508
|
|||
|
|
|
101,188
|
|||
|
|
Ground Transportation —
1.6%
|
|
|||
|
900
|
ArcBest Corp.
|
91,485
|
|||
|
5,421
|
Heartland Express, Inc.
|
79,634
|
|||
|
4,138
|
Marten Transport Ltd.
|
81,560
|
|||
|
3,098
|
Schneider National, Inc., Class B
|
85,784
|
|||
|
2,014
|
Werner Enterprises, Inc.
|
78,445
|
|||
|
|
|
416,908
|
|||
|
|
Health Care Equipment &
Supplies — 6.7%
|
|
|||
|
1,461
|
Atrion Corp.
|
603,641
|
|||
|
6,084
|
CONMED Corp.
|
613,572
|
|||
|
38,276
|
Embecta Corp.
|
576,054
|
|||
|
|
|
1,793,267
|
|||
|
|
Health Care Providers &
Services — 8.3%
|
|
|||
|
19,423
|
National Research Corp.
|
861,799
|
|||
|
24,858
|
Patterson Cos., Inc.
|
736,791
|
|||
|
6,811
|
US Physical Therapy, Inc.
|
624,773
|
|||
|
|
|
2,223,363
|
|||
|
|
Health Care REITs — 0.7%
|
|
|||
|
2,218
|
CareTrust REIT, Inc.
|
45,469
|
|||
|
1,334
|
LTC Properties, Inc.
|
42,861
|
|||
|
840
|
National Health Investors, Inc.
|
43,142
|
|||
|
3,743
|
Sabra Health Care REIT, Inc.
|
52,178
|
|||
|
|
|
183,650
|
|||
|
|
Hotel & Resort REITs — 1.1%
|
|
|||
|
5,499
|
DiamondRock Hospitality Co.
|
44,157
|
|||
|
3,436
|
Park Hotels & Resorts, Inc.
|
42,331
|
|||
|
3,160
|
Pebblebrook Hotel Trust
|
42,944
|
|||
|
4,289
|
RLJ Lodging Trust
|
41,989
|
|||
|
5,069
|
Service Properties Trust
|
38,981
|
|||
|
Shares
|
Description
|
Value
|
|||
|
|
|||||
|
|
Hotel & Resort REITs
(Continued)
|
|
|||
|
4,353
|
Sunstone Hotel Investors, Inc.
|
$40,701
|
|||
|
3,578
|
Xenia Hotels & Resorts, Inc.
|
42,149
|
|||
|
|
|
293,252
|
|||
|
|
Hotels, Restaurants & Leisure
— 2.9%
|
|
|||
|
3,819
|
Bloomin’ Brands, Inc.
|
93,909
|
|||
|
2,970
|
Cheesecake Factory (The), Inc.
|
89,991
|
|||
|
1,102
|
Cracker Barrel Old Country
Store, Inc.
|
74,054
|
|||
|
1,770
|
Dine Brands Global, Inc.
|
87,527
|
|||
|
1,053
|
Jack in the Box, Inc.
|
72,720
|
|||
|
6,972
|
Krispy Kreme, Inc.
|
86,941
|
|||
|
1,458
|
Monarch Casino & Resort, Inc.
|
90,542
|
|||
|
1,391
|
Papa John’s International, Inc.
|
94,894
|
|||
|
2,195
|
Red Rock Resorts, Inc., Class A
|
89,995
|
|||
|
|
|
780,573
|
|||
|
|
Household Durables — 1.7%
|
|
|||
|
1,340
|
Century Communities, Inc.
|
89,485
|
|||
|
635
|
Installed Building Products, Inc.
|
79,305
|
|||
|
1,986
|
KB Home
|
91,912
|
|||
|
3,586
|
La-Z-Boy, Inc.
|
110,736
|
|||
|
2,196
|
MDC Holdings, Inc.
|
90,541
|
|||
|
|
|
461,979
|
|||
|
|
Household Products — 0.7%
|
|
|||
|
1,886
|
Energizer Holdings, Inc.
|
60,427
|
|||
|
811
|
Spectrum Brands Holdings, Inc.
|
63,542
|
|||
|
336
|
WD-40 Co.
|
68,289
|
|||
|
|
|
192,258
|
|||
|
|
Industrial REITs — 0.3%
|
|
|||
|
603
|
Innovative Industrial Properties,
Inc.
|
45,623
|
|||
|
4,518
|
LXP Industrial Trust
|
40,210
|
|||
|
|
|
85,833
|
|||
|
|
Insurance — 0.9%
|
|
|||
|
1,790
|
CNO Financial Group, Inc.
|
42,477
|
|||
|
1,133
|
Employers Holdings, Inc.
|
45,263
|
|||
|
1,428
|
Horace Mann Educators Corp.
|
41,955
|
|||
|
1,400
|
Mercury General Corp.
|
39,242
|
|||
|
591
|
Safety Insurance Group, Inc.
|
40,300
|
|||
|
1,030
|
Stewart Information Services
Corp.
|
45,114
|
|||
|
|
|
254,351
|
|||
|
|
Interactive Media & Services
— 1.2%
|
|
|||
|
8,168
|
Shutterstock, Inc.
|
310,792
|
|||
|
|
Leisure Products — 0.4%
|
|
|||
|
1,878
|
Acushnet Holdings Corp.
|
99,609
|
|||
|
|
Machinery — 5.1%
|
|
|||
|
484
|
Alamo Group, Inc.
|
83,664
|
|||
See Notes to Financial Statements
Page 35
Small Cap US Equity Select ETF (RNSC)
Portfolio of Investments (Continued)
September 30, 2023 (Unaudited)
Portfolio of Investments (Continued)
September 30, 2023 (Unaudited)
|
Shares
|
Description
|
Value
|
|||
|
COMMON STOCKS (Continued)
|
|||||
|
|
Machinery (Continued)
|
|
|||
|
2,109
|
Barnes Group, Inc.
|
$71,643
|
|||
|
3,295
|
Enerpac Tool Group Corp.
|
87,087
|
|||
|
666
|
EnPro Industries, Inc.
|
80,712
|
|||
|
858
|
ESCO Technologies, Inc.
|
89,609
|
|||
|
1,389
|
Federal Signal Corp.
|
82,965
|
|||
|
1,346
|
Helios Technologies, Inc.
|
74,676
|
|||
|
1,735
|
Hillenbrand, Inc.
|
73,408
|
|||
|
401
|
Kadant, Inc.
|
90,446
|
|||
|
3,134
|
Kennametal, Inc.
|
77,974
|
|||
|
745
|
Lindsay Corp.
|
87,672
|
|||
|
5,482
|
Mueller Water Products, Inc.,
Class A
|
69,512
|
|||
|
4,033
|
Shyft Group (The), Inc.
|
60,374
|
|||
|
629
|
Standex International Corp.
|
91,639
|
|||
|
1,097
|
Tennant Co.
|
81,343
|
|||
|
3,460
|
Trinity Industries, Inc.
|
84,251
|
|||
|
3,470
|
Wabash National Corp.
|
73,286
|
|||
|
|
|
1,360,261
|
|||
|
|
Marine Transportation —
0.4%
|
|
|||
|
1,145
|
Matson, Inc.
|
101,584
|
|||
|
|
Media — 0.8%
|
|
|||
|
3,018
|
John Wiley & Sons, Inc.,
Class A
|
112,179
|
|||
|
2,641
|
Scholastic Corp.
|
100,728
|
|||
|
|
|
212,907
|
|||
|
|
Metals & Mining — 2.7%
|
|
|||
|
591
|
Alpha Metallurgical Resources,
Inc.
|
153,500
|
|||
|
862
|
Arch Resources, Inc.
|
147,109
|
|||
|
918
|
Carpenter Technology Corp.
|
61,699
|
|||
|
1,516
|
Compass Minerals International,
Inc.
|
42,372
|
|||
|
719
|
Kaiser Aluminum Corp.
|
54,112
|
|||
|
451
|
Materion Corp.
|
45,961
|
|||
|
1,188
|
Ryerson Holding Corp.
|
34,559
|
|||
|
2,495
|
Warrior Met Coal, Inc.
|
127,445
|
|||
|
742
|
Worthington Industries, Inc.
|
45,871
|
|||
|
|
|
712,628
|
|||
|
|
Mortgage REITs — 1.7%
|
|
|||
|
3,743
|
Apollo Commercial Real Estate
Finance, Inc.
|
37,917
|
|||
|
2,859
|
Arbor Realty Trust, Inc. (a)
|
43,400
|
|||
|
7,343
|
Chimera Investment Corp.
|
40,093
|
|||
|
3,736
|
Claros Mortgage Trust, Inc.
|
41,395
|
|||
|
2,992
|
Franklin BSP Realty Trust, Inc.
|
39,614
|
|||
|
1,762
|
Hannon Armstrong Sustainable
Infrastructure Capital, Inc.
|
37,354
|
|||
|
3,905
|
Ladder Capital Corp.
|
40,065
|
|||
|
3,769
|
MFA Financial, Inc.
|
36,220
|
|||
|
Shares
|
Description
|
Value
|
|||
|
|
|||||
|
|
Mortgage REITs (Continued)
|
|
|||
|
4,271
|
New York Mortgage Trust, Inc.
|
$36,261
|
|||
|
3,143
|
PennyMac Mortgage Investment
Trust
|
38,973
|
|||
|
3,756
|
Ready Capital Corp.
|
37,973
|
|||
|
3,052
|
Two Harbors Investment Corp.
|
40,408
|
|||
|
|
|
469,673
|
|||
|
|
Multi-Utilities — 0.4%
|
|
|||
|
1,509
|
Avista Corp.
|
48,846
|
|||
|
1,044
|
Northwestern Energy Group,
Inc.
|
50,175
|
|||
|
|
|
99,021
|
|||
|
|
Office REITs — 1.5%
|
|
|||
|
1,855
|
COPT Defense Properties
|
44,205
|
|||
|
3,504
|
Douglas Emmett, Inc.
|
44,711
|
|||
|
3,038
|
Easterly Government Properties,
Inc.
|
34,724
|
|||
|
1,842
|
Highwoods Properties, Inc.
|
37,964
|
|||
|
10,438
|
Hudson Pacific Properties, Inc.
|
69,413
|
|||
|
2,929
|
JBG SMITH Properties
|
42,353
|
|||
|
9,944
|
Paramount Group, Inc.
|
45,941
|
|||
|
6,059
|
Piedmont Office Realty Trust,
Inc., Class A
|
34,051
|
|||
|
1,466
|
SL Green Realty Corp.
|
54,682
|
|||
|
|
|
408,044
|
|||
|
|
Oil, Gas & Consumable Fuels
— 5.2%
|
|
|||
|
2,146
|
California Resources Corp.
|
120,198
|
|||
|
8,379
|
Comstock Resources, Inc.
|
92,420
|
|||
|
1,433
|
CONSOL Energy, Inc.
|
150,336
|
|||
|
3,333
|
CVR Energy, Inc.
|
113,422
|
|||
|
4,058
|
Delek US Holdings, Inc.
|
115,288
|
|||
|
8,958
|
Enviva, Inc.
|
66,916
|
|||
|
10,167
|
Equitrans Midstream Corp.
|
95,265
|
|||
|
2,326
|
International Seaways, Inc.
|
104,670
|
|||
|
2,766
|
Kinetik Holdings, Inc.
|
93,353
|
|||
|
2,832
|
Northern Oil and Gas, Inc.
|
113,931
|
|||
|
8,868
|
Permian Resources Corp.
|
123,797
|
|||
|
3,700
|
Sitio Royalties Corp., Class A
|
89,577
|
|||
|
4,700
|
World Kinect Corp.
|
105,421
|
|||
|
|
|
1,384,594
|
|||
|
|
Paper & Forest Products —
0.2%
|
|
|||
|
1,274
|
Sylvamo Corp.
|
55,980
|
|||
|
|
Personal Care Products —
0.6%
|
|
|||
|
1,533
|
Edgewell Personal Care Co.
|
56,660
|
|||
|
687
|
Medifast, Inc.
|
51,422
|
|||
|
1,907
|
Nu Skin Enterprises, Inc.,
Class A
|
40,447
|
|||
|
|
|
148,529
|
|||
See Notes to Financial Statements
Page 36
Small Cap US Equity Select ETF (RNSC)
Portfolio of Investments (Continued)
September 30, 2023 (Unaudited)
Portfolio of Investments (Continued)
September 30, 2023 (Unaudited)
|
Shares
|
Description
|
Value
|
|||
|
COMMON STOCKS (Continued)
|
|||||
|
|
Professional Services — 2.6%
|
|
|||
|
7,538
|
CSG Systems International, Inc.
|
$385,343
|
|||
|
715
|
ICF International, Inc.
|
86,379
|
|||
|
1,420
|
Kforce, Inc.
|
84,717
|
|||
|
1,796
|
Korn Ferry
|
85,202
|
|||
|
2,629
|
TTEC Holdings, Inc.
|
68,933
|
|||
|
|
|
710,574
|
|||
|
|
Real Estate Management &
Development — 1.0%
|
|
|||
|
2,995
|
DigitalBridge Group, Inc.
|
52,652
|
|||
|
2,172
|
eXp World Holdings, Inc.
|
35,273
|
|||
|
2,698
|
Kennedy-Wilson Holdings, Inc.
|
39,769
|
|||
|
1,398
|
Marcus & Millichap, Inc.
|
41,017
|
|||
|
7,103
|
Newmark Group, Inc., Class A
|
45,672
|
|||
|
911
|
St Joe (The) Co.
|
49,495
|
|||
|
|
|
263,878
|
|||
|
|
Residential REITs — 0.3%
|
|
|||
|
2,679
|
Elme Communities
|
36,542
|
|||
|
969
|
NexPoint Residential Trust, Inc.
|
31,182
|
|||
|
|
|
67,724
|
|||
|
|
Retail REITs — 1.4%
|
|
|||
|
3,061
|
Acadia Realty Trust
|
43,925
|
|||
|
240
|
Alexander’s, Inc.
|
43,735
|
|||
|
1,302
|
Getty Realty Corp.
|
36,105
|
|||
|
1,904
|
InvenTrust Properties Corp.
|
45,334
|
|||
|
3,909
|
Macerich (The) Co.
|
42,647
|
|||
|
3,261
|
Retail Opportunity Investments
Corp.
|
40,371
|
|||
|
3,332
|
SITE Centers Corp.
|
41,084
|
|||
|
1,996
|
Tanger Factory Outlet Centers,
Inc.
|
45,110
|
|||
|
2,855
|
Urban Edge Properties
|
43,567
|
|||
|
|
|
381,878
|
|||
|
|
Software — 4.5%
|
|
|||
|
36,107
|
Adeia, Inc.
|
385,623
|
|||
|
1,515
|
InterDigital, Inc.
|
121,564
|
|||
|
8,064
|
Pegasystems, Inc.
|
350,058
|
|||
|
6,842
|
Progress Software Corp.
|
359,752
|
|||
|
|
|
1,216,997
|
|||
|
|
Specialized REITs — 0.6%
|
|
|||
|
941
|
EPR Properties
|
39,089
|
|||
|
1,734
|
Four Corners Property Trust, Inc.
|
38,478
|
|||
|
2,802
|
Outfront Media, Inc.
|
28,300
|
|||
|
9,535
|
Uniti Group, Inc.
|
45,005
|
|||
|
|
|
150,872
|
|||
|
|
Specialty Retail — 2.7%
|
|
|||
|
8,704
|
American Eagle Outfitters, Inc.
|
144,573
|
|||
|
2,968
|
Buckle (The), Inc.
|
99,101
|
|||
|
398
|
Group 1 Automotive, Inc.
|
106,947
|
|||
|
5,280
|
Guess?, Inc.
|
114,259
|
|||
|
Shares
|
Description
|
Value
|
|||
|
|
|||||
|
|
Specialty Retail (Continued)
|
|
|||
|
2,528
|
Monro, Inc.
|
$70,203
|
|||
|
2,154
|
Sonic Automotive, Inc., Class A
|
102,875
|
|||
|
3,299
|
Upbound Group, Inc.
|
97,156
|
|||
|
|
|
735,114
|
|||
|
|
Technology Hardware, Storage
& Peripherals — 1.6%
|
|
|||
|
26,698
|
Xerox Holdings Corp.
|
418,892
|
|||
|
|
Textiles, Apparel & Luxury
Goods — 2.4%
|
|
|||
|
1,415
|
Carter’s, Inc.
|
97,847
|
|||
|
22,622
|
Hanesbrands, Inc.
|
89,583
|
|||
|
2,439
|
Kontoor Brands, Inc.
|
107,097
|
|||
|
7,117
|
Levi Strauss & Co., Class A
|
96,649
|
|||
|
1,044
|
Oxford Industries, Inc.
|
100,360
|
|||
|
3,142
|
Steven Madden Ltd.
|
99,821
|
|||
|
6,991
|
Wolverine World Wide, Inc.
|
56,347
|
|||
|
|
|
647,704
|
|||
|
|
Tobacco — 0.4%
|
|
|||
|
1,268
|
Universal Corp.
|
59,862
|
|||
|
4,943
|
Vector Group Ltd.
|
52,594
|
|||
|
|
|
112,456
|
|||
|
|
Trading Companies &
Distributors — 2.1%
|
|
|||
|
570
|
Boise Cascade Co.
|
58,733
|
|||
|
2,810
|
FTAI Aviation Ltd.
|
99,895
|
|||
|
1,945
|
H&E Equipment Services, Inc.
|
84,005
|
|||
|
962
|
McGrath RentCorp
|
96,431
|
|||
|
2,536
|
Rush Enterprises, Inc., Class A
|
103,545
|
|||
|
708
|
Veritiv Corp.
|
119,581
|
|||
|
|
|
562,190
|
|||
|
|
Water Utilities — 0.6%
|
|
|||
|
1,147
|
California Water Service Group
|
54,265
|
|||
|
734
|
Middlesex Water Co.
|
48,627
|
|||
|
845
|
SJW Group
|
50,793
|
|||
|
|
|
153,685
|
|||
|
|
Wireless Telecommunication
Services — 1.2%
|
|
|||
|
17,769
|
Telephone and Data Systems,
Inc.
|
325,350
|
|||
|
|
Total Common Stocks
|
26,744,062
|
|||
|
|
(Cost $28,437,185)
|
|
|||
See Notes to Financial Statements
Page 37
Small Cap US Equity Select ETF (RNSC)
Portfolio of Investments (Continued)
September 30, 2023 (Unaudited)
Portfolio of Investments (Continued)
September 30, 2023 (Unaudited)
|
Principal
Value
|
Description
|
Value
|
|||
|
REPURCHASE AGREEMENTS — 0.3%
|
|||||
|
$86,585
|
Bank of America Corp., 5.29%
(b), dated 09/29/23, due
10/02/23, with a maturity
value of $86,636.
Collateralized by
U.S. Treasury Securities,
interest rates of 1.38% to
4.00%, due 11/15/40 to
02/15/53. The value of the
collateral including accrued
interest is $88,317. (c)
|
$86,585
|
|||
|
|
(Cost $86,585)
|
|
|||
|
|
|||||
|
|
|||||
|
|
Total Investments — 100.1%
|
26,830,647
|
|||
|
|
(Cost $28,523,770)
|
|
|||
|
|
Net Other Assets and
Liabilities — (0.1)%
|
(31,611
)
|
|||
|
|
Net Assets — 100.0%
|
$26,799,036
|
|||
|
(a)
|
All or a portion of this security is on loan (see Note 2E -
Securities Lending in the Notes to Financial Statements). The
remaining contractual maturity of all of the securities lending
transactions is overnight and continuous. The aggregate
value of such securities, including those sold and pending
settlement, is $85,021 and the total value of the collateral
held by the Fund is $86,585.
|
|
(b)
|
Rate shown reflects yield as of September 30, 2023.
|
|
(c)
|
This security serves as collateral for securities on loan.
|
Valuation Inputs
A summary of the inputs used to value the Fund’s investments as of September 30, 2023 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements):
|
|
Total
Value at
9/30/2023
|
Level 1
Quoted
Prices
|
Level 2
Significant
Observable
Inputs
|
Level 3
Significant
Unobservable
Inputs
|
|
Common Stocks*
|
$ 26,744,062
|
$ 26,744,062
|
$ —
|
$ —
|
|
Repurchase
Agreements
|
86,585
|
—
|
86,585
|
—
|
|
Total Investments
|
$26,830,647
|
$26,744,062
|
$86,585
|
$—
|
|
*
|
See Portfolio of Investments for industry breakout.
|
Offsetting Assets and Liabilities
Offsetting assets and liabilities requires entities to disclose both gross and net information about instruments and transactions eligible for offset, and to disclose instruments and transactions subject to master netting or similar agreements (see Note 2C - Offsetting on the Statements of Assets and Liabilities in the Notes to Financial Statements).
The Fund’s loaned securities were all subject to an enforceable Securities Lending Agency Agreement. Securities lent in accordance with the Securities Lending Agency Agreement on a gross basis were as follows:
|
Securities Lending Agency Agreement
|
|
|
Total gross amount presented on the Statements
of Assets and Liabilities(1)
|
$85,021
|
|
Non-cash Collateral(2)
|
(85,021
)
|
|
Net Amount
|
$—
|
|
(1)
|
The amount presented on the Statements of Assets and
Liabilities, which is included in “Investments, at value,” is not
offset and is shown on a gross basis.
|
|
(2)
|
At September 30, 2023, the value of the collateral received
from each borrower exceeded the value of the related
securities loaned. This amount is disclosed on the Portfolio of
Investments.
|
The Fund’s investments in repurchase agreements were all subject to an enforceable Master Repurchase Agreement. Repurchase Agreements on a gross basis were as follows:
|
Repurchase Agreements
|
|
|
Total gross amount presented on the Statements
of Assets and Liabilities(3)
|
$86,585
|
|
Non-cash Collateral(4)
|
(86,585
)
|
|
Net Amount
|
$—
|
|
(3)
|
The amount is included in “Investments, at value” on the
Statements of Assets and Liabilities.
|
|
(4)
|
At September 30, 2023, the value of the collateral received
from each seller exceeded the value of the repurchase
agreements.
|
See Notes to Financial Statements
Page 38
US Equity Dividend Select ETF (RNDV)
Portfolio of Investments
September 30, 2023 (Unaudited)
Portfolio of Investments
September 30, 2023 (Unaudited)
|
Shares
|
Description
|
Value
|
|||
|
COMMON STOCKS — 99.7%
|
|||||
|
|
Aerospace & Defense — 1.7%
|
|
|||
|
400
|
General Dynamics Corp.
|
$88,388
|
|||
|
568
|
L3Harris Technologies, Inc.
|
98,900
|
|||
|
268
|
Lockheed Martin Corp.
|
109,602
|
|||
|
164
|
Northrop Grumman Corp.
|
72,191
|
|||
|
1,124
|
RTX Corp.
|
80,894
|
|||
|
|
|
449,975
|
|||
|
|
Air Freight & Logistics —
0.9%
|
|
|||
|
369
|
FedEx Corp.
|
97,755
|
|||
|
941
|
United Parcel Service, Inc.,
Class B
|
146,674
|
|||
|
|
|
244,429
|
|||
|
|
Automobiles — 1.1%
|
|
|||
|
22,651
|
Ford Motor Co.
|
281,325
|
|||
|
|
Banks — 4.1%
|
|
|||
|
1,758
|
Bank of America Corp.
|
48,134
|
|||
|
1,582
|
Citigroup, Inc.
|
65,068
|
|||
|
4,061
|
Citizens Financial Group, Inc.
|
108,835
|
|||
|
3,159
|
Fifth Third Bancorp
|
80,017
|
|||
|
8,772
|
Huntington Bancshares, Inc.
|
91,229
|
|||
|
311
|
JPMorgan Chase & Co.
|
45,101
|
|||
|
15,599
|
KeyCorp
|
167,845
|
|||
|
537
|
M&T Bank Corp.
|
67,904
|
|||
|
622
|
PNC Financial Services Group
(The), Inc.
|
76,363
|
|||
|
4,142
|
Regions Financial Corp.
|
71,242
|
|||
|
3,713
|
Truist Financial Corp.
|
106,229
|
|||
|
2,892
|
U.S. Bancorp
|
95,610
|
|||
|
1,083
|
Wells Fargo & Co.
|
44,251
|
|||
|
|
|
1,067,828
|
|||
|
|
Beverages — 0.5%
|
|
|||
|
900
|
Coca-Cola (The) Co.
|
50,382
|
|||
|
1,484
|
Keurig Dr Pepper, Inc.
|
46,850
|
|||
|
249
|
PepsiCo, Inc.
|
42,191
|
|||
|
|
|
139,423
|
|||
|
|
Biotechnology — 4.1%
|
|
|||
|
2,613
|
AbbVie, Inc.
|
389,494
|
|||
|
1,355
|
Amgen, Inc.
|
364,170
|
|||
|
4,089
|
Gilead Sciences, Inc.
|
306,429
|
|||
|
|
|
1,060,093
|
|||
|
|
Broadline Retail — 0.7%
|
|
|||
|
4,067
|
eBay, Inc.
|
179,314
|
|||
|
|
Building Products — 0.3%
|
|
|||
|
1,483
|
Johnson Controls
International PLC
|
78,910
|
|||
|
|
Capital Markets — 3.0%
|
|
|||
|
76
|
Ameriprise Financial, Inc.
|
25,056
|
|||
|
489
|
Ares Management Corp.,
Class A
|
50,303
|
|||
|
Shares
|
Description
|
Value
|
|||
|
|
|||||
|
|
Capital Markets (Continued)
|
|
|||
|
1,228
|
Bank of New York Mellon (The)
Corp.
|
$52,374
|
|||
|
68
|
BlackRock, Inc.
|
43,961
|
|||
|
742
|
Blackstone, Inc.
|
79,498
|
|||
|
2,134
|
Carlyle Group (The), Inc.
|
64,362
|
|||
|
481
|
Charles Schwab (The) Corp.
|
26,407
|
|||
|
201
|
CME Group, Inc.
|
40,244
|
|||
|
2,743
|
Franklin Resources, Inc.
|
67,423
|
|||
|
158
|
Goldman Sachs Group (The),
Inc.
|
51,124
|
|||
|
699
|
Morgan Stanley
|
57,087
|
|||
|
543
|
Nasdaq, Inc.
|
26,384
|
|||
|
897
|
Northern Trust Corp.
|
62,324
|
|||
|
244
|
Raymond James Financial, Inc.
|
24,505
|
|||
|
774
|
State Street Corp.
|
51,827
|
|||
|
634
|
T. Rowe Price Group, Inc.
|
66,488
|
|||
|
|
|
789,367
|
|||
|
|
Chemicals — 1.5%
|
|
|||
|
66
|
Air Products and Chemicals, Inc.
|
18,704
|
|||
|
183
|
Celanese Corp.
|
22,970
|
|||
|
294
|
CF Industries Holdings, Inc.
|
25,208
|
|||
|
873
|
Dow, Inc.
|
45,012
|
|||
|
1,302
|
DuPont de Nemours, Inc.
|
97,116
|
|||
|
184
|
FMC Corp.
|
12,322
|
|||
|
452
|
International Flavors &
Fragrances, Inc.
|
30,813
|
|||
|
505
|
LyondellBasell Industries N.V.,
Class A
|
47,824
|
|||
|
505
|
Mosaic (The) Co.
|
17,978
|
|||
|
543
|
PPG Industries, Inc.
|
70,481
|
|||
|
|
|
388,428
|
|||
|
|
Commercial Services &
Supplies — 0.1%
|
|
|||
|
72
|
Waste Management, Inc.
|
10,976
|
|||
|
|
Communications Equipment
— 0.4%
|
|
|||
|
1,895
|
Cisco Systems, Inc.
|
101,875
|
|||
|
|
Consumer Finance — 0.9%
|
|
|||
|
966
|
Capital One Financial Corp.
|
93,750
|
|||
|
301
|
Discover Financial Services
|
26,076
|
|||
|
3,851
|
Synchrony Financial
|
117,725
|
|||
|
|
|
237,551
|
|||
|
|
Consumer Staples Distribution
& Retail — 1.6%
|
|
|||
|
854
|
Kroger (The) Co.
|
38,217
|
|||
|
484
|
Sysco Corp.
|
31,968
|
|||
|
2,146
|
Target Corp.
|
237,283
|
|||
|
4,291
|
Walgreens Boots Alliance, Inc.
|
95,432
|
|||
|
|
|
402,900
|
|||
See Notes to Financial Statements
Page 39
US Equity Dividend Select ETF (RNDV)
Portfolio of Investments (Continued)
September 30, 2023 (Unaudited)
Portfolio of Investments (Continued)
September 30, 2023 (Unaudited)
|
Shares
|
Description
|
Value
|
|||
|
COMMON STOCKS (Continued)
|
|||||
|
|
Containers & Packaging —
1.1%
|
|
|||
|
92
|
Avery Dennison Corp.
|
$16,806
|
|||
|
1,617
|
International Paper Co.
|
57,355
|
|||
|
1,379
|
Packaging Corp. of America
|
211,745
|
|||
|
|
|
285,906
|
|||
|
|
Distributors — 1.1%
|
|
|||
|
1,113
|
Genuine Parts Co.
|
160,695
|
|||
|
2,736
|
LKQ Corp.
|
135,459
|
|||
|
|
|
296,154
|
|||
|
|
Diversified REITs — 0.1%
|
|
|||
|
558
|
W.P. Carey, Inc.
|
30,177
|
|||
|
|
Diversified Telecommunication
Services — 1.6%
|
|
|||
|
14,464
|
AT&T, Inc.
|
217,249
|
|||
|
6,226
|
Verizon Communications, Inc.
|
201,785
|
|||
|
|
|
419,034
|
|||
|
|
Electric Utilities — 1.4%
|
|
|||
|
511
|
Alliant Energy Corp.
|
24,758
|
|||
|
369
|
American Electric Power Co.,
Inc.
|
27,756
|
|||
|
399
|
Duke Energy Corp.
|
35,216
|
|||
|
477
|
Edison International
|
30,189
|
|||
|
356
|
Entergy Corp.
|
32,930
|
|||
|
565
|
Evergy, Inc.
|
28,645
|
|||
|
417
|
Eversource Energy
|
24,249
|
|||
|
672
|
Exelon Corp.
|
25,395
|
|||
|
825
|
FirstEnergy Corp.
|
28,198
|
|||
|
259
|
NextEra Energy, Inc.
|
14,838
|
|||
|
1,062
|
PPL Corp.
|
25,021
|
|||
|
444
|
Southern (The) Co.
|
28,736
|
|||
|
417
|
Xcel Energy, Inc.
|
23,861
|
|||
|
|
|
349,792
|
|||
|
|
Electrical Equipment — 0.8%
|
|
|||
|
398
|
Eaton Corp. PLC
|
84,886
|
|||
|
1,223
|
Emerson Electric Co.
|
118,105
|
|||
|
|
|
202,991
|
|||
|
|
Electronic Equipment,
Instruments & Components
— 2.9%
|
|
|||
|
16,357
|
Corning, Inc.
|
498,398
|
|||
|
2,110
|
TE Connectivity Ltd.
|
260,648
|
|||
|
|
|
759,046
|
|||
|
|
Energy Equipment & Services
— 0.3%
|
|
|||
|
954
|
Baker Hughes Co.
|
33,695
|
|||
|
654
|
Halliburton Co.
|
26,487
|
|||
|
448
|
Schlumberger N.V.
|
26,119
|
|||
|
|
|
86,301
|
|||
|
Shares
|
Description
|
Value
|
|||
|
|
|||||
|
|
Financial Services — 1.2%
|
|
|||
|
454
|
Apollo Global Management, Inc.
|
$40,751
|
|||
|
4,850
|
Corebridge Financial, Inc.
|
95,788
|
|||
|
3,187
|
Fidelity National Information
Services, Inc.
|
176,145
|
|||
|
|
|
312,684
|
|||
|
|
Food Products — 2.4%
|
|
|||
|
540
|
Archer-Daniels-Midland Co.
|
40,727
|
|||
|
509
|
Bunge Ltd.
|
55,099
|
|||
|
1,285
|
Campbell Soup Co.
|
52,788
|
|||
|
2,106
|
Conagra Brands, Inc.
|
57,747
|
|||
|
666
|
General Mills, Inc.
|
42,617
|
|||
|
121
|
Hershey (The) Co.
|
24,210
|
|||
|
1,200
|
Hormel Foods Corp.
|
45,636
|
|||
|
339
|
J.M. Smucker (The) Co.
|
41,666
|
|||
|
942
|
Kellogg Co.
|
56,058
|
|||
|
2,303
|
Kraft Heinz (The) Co.
|
77,473
|
|||
|
362
|
McCormick & Co., Inc.
|
27,382
|
|||
|
525
|
Mondelez International, Inc.,
Class A
|
36,435
|
|||
|
1,323
|
Tyson Foods, Inc., Class A
|
66,798
|
|||
|
|
|
624,636
|
|||
|
|
Gas Utilities — 0.1%
|
|
|||
|
171
|
Atmos Energy Corp.
|
18,114
|
|||
|
|
Ground Transportation —
0.8%
|
|
|||
|
485
|
Norfolk Southern Corp.
|
95,511
|
|||
|
598
|
Union Pacific Corp.
|
121,771
|
|||
|
|
|
217,282
|
|||
|
|
Health Care Equipment &
Supplies — 2.0%
|
|
|||
|
1,353
|
Abbott Laboratories
|
131,038
|
|||
|
4,586
|
Baxter International, Inc.
|
173,076
|
|||
|
2,886
|
Medtronic PLC
|
226,147
|
|||
|
|
|
530,261
|
|||
|
|
Health Care Providers &
Services — 1.9%
|
|
|||
|
1,824
|
Cardinal Health, Inc.
|
158,360
|
|||
|
490
|
Cigna Group (The)
|
140,174
|
|||
|
877
|
CVS Health Corp.
|
61,232
|
|||
|
1,117
|
Quest Diagnostics, Inc.
|
136,118
|
|||
|
|
|
495,884
|
|||
|
|
Health Care REITs — 0.3%
|
|
|||
|
1,776
|
Healthpeak Properties, Inc.
|
32,607
|
|||
|
482
|
Ventas, Inc.
|
20,307
|
|||
|
223
|
Welltower, Inc.
|
18,268
|
|||
|
|
|
71,182
|
|||
|
|
Hotel & Resort REITs — 0.1%
|
|
|||
|
1,077
|
Host Hotels & Resorts, Inc.
|
17,307
|
|||
See Notes to Financial Statements
Page 40
US Equity Dividend Select ETF (RNDV)
Portfolio of Investments (Continued)
September 30, 2023 (Unaudited)
Portfolio of Investments (Continued)
September 30, 2023 (Unaudited)
|
Shares
|
Description
|
Value
|
|||
|
COMMON STOCKS (Continued)
|
|||||
|
|
Hotels, Restaurants & Leisure
— 2.6%
|
|
|||
|
1,498
|
Darden Restaurants, Inc.
|
$214,544
|
|||
|
576
|
McDonald’s Corp.
|
151,741
|
|||
|
1,832
|
Starbucks Corp.
|
167,207
|
|||
|
1,058
|
Yum! Brands, Inc.
|
132,186
|
|||
|
|
|
665,678
|
|||
|
|
Household Durables — 0.9%
|
|
|||
|
2,320
|
Garmin Ltd.
|
244,064
|
|||
|
|
Household Products — 0.7%
|
|
|||
|
339
|
Clorox (The) Co.
|
44,429
|
|||
|
578
|
Colgate-Palmolive Co.
|
41,102
|
|||
|
445
|
Kimberly-Clark Corp.
|
53,778
|
|||
|
290
|
Procter & Gamble (The) Co.
|
42,300
|
|||
|
|
|
181,609
|
|||
|
|
Independent Power and
Renewable Electricity
Producers — 0.1%
|
|
|||
|
1,205
|
AES (The) Corp.
|
18,316
|
|||
|
|
Industrial Conglomerates —
1.4%
|
|
|||
|
2,875
|
3M Co.
|
269,157
|
|||
|
455
|
Honeywell International, Inc.
|
84,057
|
|||
|
|
|
353,214
|
|||
|
|
Industrial REITs — 0.1%
|
|
|||
|
132
|
Prologis, Inc.
|
14,812
|
|||
|
|
Insurance — 2.1%
|
|
|||
|
553
|
Aflac, Inc.
|
42,443
|
|||
|
481
|
Allstate (The) Corp.
|
53,588
|
|||
|
656
|
American International Group,
Inc.
|
39,754
|
|||
|
149
|
Chubb Ltd.
|
31,019
|
|||
|
500
|
Cincinnati Financial Corp.
|
51,145
|
|||
|
93
|
Everest Group Ltd.
|
34,565
|
|||
|
526
|
Hartford Financial Services
Group (The), Inc.
|
37,299
|
|||
|
1,039
|
MetLife, Inc.
|
65,363
|
|||
|
732
|
Principal Financial Group, Inc.
|
52,755
|
|||
|
1,035
|
Prudential Financial, Inc.
|
98,211
|
|||
|
207
|
Travelers (The) Cos., Inc.
|
33,805
|
|||
|
|
|
539,947
|
|||
|
|
IT Services — 4.9%
|
|
|||
|
4,799
|
Cognizant Technology Solutions
Corp., Class A
|
325,084
|
|||
|
6,740
|
International Business Machines
Corp.
|
945,622
|
|||
|
|
|
1,270,706
|
|||
|
|
Machinery — 2.1%
|
|
|||
|
382
|
Caterpillar, Inc.
|
104,286
|
|||
|
503
|
Cummins, Inc.
|
114,915
|
|||
|
Shares
|
Description
|
Value
|
|||
|
|
|||||
|
|
Machinery (Continued)
|
|
|||
|
403
|
Illinois Tool Works, Inc.
|
$92,815
|
|||
|
364
|
Snap-on, Inc.
|
92,842
|
|||
|
1,755
|
Stanley Black & Decker, Inc.
|
146,683
|
|||
|
|
|
551,541
|
|||
|
|
Media — 3.2%
|
|
|||
|
2,112
|
Comcast Corp., Class A
|
93,646
|
|||
|
6,967
|
Interpublic Group of (The) Cos.,
Inc.
|
199,675
|
|||
|
2,673
|
Omnicom Group, Inc.
|
199,085
|
|||
|
26,288
|
Paramount Global, Class B
|
339,115
|
|||
|
|
|
831,521
|
|||
|
|
Metals & Mining — 0.1%
|
|
|||
|
923
|
Newmont Corp.
|
34,105
|
|||
|
|
Multi-Utilities — 0.9%
|
|
|||
|
292
|
Ameren Corp.
|
21,850
|
|||
|
696
|
CenterPoint Energy, Inc.
|
18,688
|
|||
|
439
|
CMS Energy Corp.
|
23,315
|
|||
|
313
|
Consolidated Edison, Inc.
|
26,771
|
|||
|
796
|
Dominion Energy, Inc.
|
35,557
|
|||
|
247
|
DTE Energy Co.
|
24,522
|
|||
|
453
|
Public Service Enterprise Group,
Inc.
|
25,780
|
|||
|
349
|
Sempra
|
23,743
|
|||
|
310
|
WEC Energy Group, Inc.
|
24,971
|
|||
|
|
|
225,197
|
|||
|
|
Office REITs — 0.1%
|
|
|||
|
225
|
Alexandria Real Estate Equities,
Inc.
|
22,523
|
|||
|
|
Oil, Gas & Consumable Fuels
— 4.7%
|
|
|||
|
953
|
APA Corp.
|
39,168
|
|||
|
301
|
Chevron Corp.
|
50,755
|
|||
|
627
|
ConocoPhillips
|
75,115
|
|||
|
4,172
|
Coterra Energy, Inc.
|
112,852
|
|||
|
2,454
|
Devon Energy Corp.
|
117,056
|
|||
|
670
|
Diamondback Energy, Inc.
|
103,769
|
|||
|
306
|
EOG Resources, Inc.
|
38,788
|
|||
|
399
|
Exxon Mobil Corp.
|
46,914
|
|||
|
4,781
|
Kinder Morgan, Inc.
|
79,269
|
|||
|
888
|
Marathon Oil Corp.
|
23,754
|
|||
|
265
|
Marathon Petroleum Corp.
|
40,105
|
|||
|
1,262
|
ONEOK, Inc.
|
80,049
|
|||
|
921
|
Ovintiv, Inc.
|
43,812
|
|||
|
565
|
Phillips 66
|
67,885
|
|||
|
687
|
Pioneer Natural Resources Co.
|
157,701
|
|||
|
340
|
Targa Resources Corp.
|
29,145
|
|||
|
370
|
Valero Energy Corp.
|
52,433
|
|||
|
2,084
|
Williams (The) Cos., Inc.
|
70,210
|
|||
|
|
|
1,228,780
|
|||
See Notes to Financial Statements
Page 41
US Equity Dividend Select ETF (RNDV)
Portfolio of Investments (Continued)
September 30, 2023 (Unaudited)
Portfolio of Investments (Continued)
September 30, 2023 (Unaudited)
|
Shares
|
Description
|
Value
|
|||
|
COMMON STOCKS (Continued)
|
|||||
|
|
Pharmaceuticals — 5.0%
|
|
|||
|
3,371
|
Bristol-Myers Squibb Co.
|
$195,653
|
|||
|
1,372
|
Johnson & Johnson
|
213,689
|
|||
|
1,775
|
Merck & Co., Inc.
|
182,736
|
|||
|
9,881
|
Pfizer, Inc.
|
327,753
|
|||
|
39,546
|
Viatris, Inc.
|
389,923
|
|||
|
|
|
1,309,754
|
|||
|
|
Professional Services — 2.6%
|
|
|||
|
478
|
Automatic Data Processing, Inc.
|
114,997
|
|||
|
696
|
Booz Allen Hamilton Holding
Corp.
|
76,052
|
|||
|
174
|
Broadridge Financial Solutions,
Inc.
|
31,155
|
|||
|
3,358
|
Leidos Holdings, Inc.
|
309,473
|
|||
|
1,255
|
Paychex, Inc.
|
144,739
|
|||
|
|
|
676,416
|
|||
|
|
Residential REITs — 0.6%
|
|
|||
|
108
|
AvalonBay Communities, Inc.
|
18,548
|
|||
|
196
|
Camden Property Trust
|
18,538
|
|||
|
229
|
Equity LifeStyle Properties, Inc.
|
14,590
|
|||
|
354
|
Equity Residential
|
20,783
|
|||
|
98
|
Essex Property Trust, Inc.
|
20,785
|
|||
|
485
|
Invitation Homes, Inc.
|
15,370
|
|||
|
137
|
Mid-America Apartment
Communities, Inc.
|
17,625
|
|||
|
127
|
Sun Communities, Inc.
|
15,029
|
|||
|
505
|
UDR, Inc.
|
18,013
|
|||
|
|
|
159,281
|
|||
|
|
Retail REITs — 0.3%
|
|
|||
|
1,399
|
Kimco Realty Corp.
|
24,608
|
|||
|
504
|
Realty Income Corp.
|
25,170
|
|||
|
323
|
Simon Property Group, Inc.
|
34,894
|
|||
|
|
|
84,672
|
|||
|
|
Semiconductors &
Semiconductor Equipment
— 12.1%
|
|
|||
|
1,559
|
Analog Devices, Inc.
|
272,965
|
|||
|
434
|
Broadcom, Inc.
|
360,472
|
|||
|
19,919
|
Intel Corp.
|
708,121
|
|||
|
3,116
|
Microchip Technology, Inc.
|
243,204
|
|||
|
1,620
|
NXP Semiconductors N.V.
|
323,870
|
|||
|
3,930
|
QUALCOMM, Inc.
|
436,466
|
|||
|
3,696
|
Skyworks Solutions, Inc.
|
364,389
|
|||
|
2,744
|
Texas Instruments, Inc.
|
436,323
|
|||
|
|
|
3,145,810
|
|||
|
|
Software — 1.8%
|
|
|||
|
26,530
|
Gen Digital, Inc.
|
469,050
|
|||
|
|
Specialized REITs — 0.8%
|
|
|||
|
98
|
American Tower Corp.
|
16,116
|
|||
|
284
|
Crown Castle, Inc.
|
26,137
|
|||
|
Shares
|
Description
|
Value
|
|||
|
|
|||||
|
|
Specialized REITs (Continued)
|
|
|||
|
225
|
Digital Realty Trust, Inc.
|
$27,230
|
|||
|
13
|
Equinix, Inc.
|
9,441
|
|||
|
168
|
Extra Space Storage, Inc.
|
20,426
|
|||
|
726
|
Gaming and Leisure Properties,
Inc.
|
33,069
|
|||
|
458
|
Iron Mountain, Inc.
|
27,228
|
|||
|
70
|
Public Storage
|
18,446
|
|||
|
944
|
VICI Properties, Inc.
|
27,470
|
|||
|
394
|
Weyerhaeuser Co.
|
12,080
|
|||
|
|
|
217,643
|
|||
|
|
Specialty Retail — 3.2%
|
|
|||
|
4,632
|
Best Buy Co., Inc.
|
321,785
|
|||
|
715
|
Home Depot (The), Inc.
|
216,044
|
|||
|
713
|
Lowe’s Cos., Inc.
|
148,190
|
|||
|
689
|
Tractor Supply Co.
|
139,902
|
|||
|
|
|
825,921
|
|||
|
|
Technology Hardware, Storage
& Peripherals — 9.3%
|
|
|||
|
31,051
|
Hewlett Packard Enterprise Co.
|
539,356
|
|||
|
20,085
|
HP, Inc.
|
516,185
|
|||
|
6,256
|
NetApp, Inc.
|
474,705
|
|||
|
13,355
|
Seagate Technology
Holdings PLC
|
880,762
|
|||
|
|
|
2,411,008
|
|||
|
|
Tobacco — 0.9%
|
|
|||
|
3,324
|
Altria Group, Inc.
|
139,774
|
|||
|
967
|
Philip Morris International, Inc.
|
89,525
|
|||
|
|
|
229,299
|
|||
|
|
Trading Companies &
Distributors — 0.1%
|
|
|||
|
335
|
Fastenal Co.
|
18,304
|
|||
|
|
Water Utilities — 0.1%
|
|
|||
|
105
|
American Water Works Co., Inc.
|
13,002
|
|||
|
576
|
Essential Utilities, Inc.
|
19,774
|
|||
|
|
|
32,776
|
|||
|
|
|||||
|
|
|||||
|
|
Total Investments — 99.7%
|
25,911,092
|
|||
|
|
(Cost $26,982,025)
|
|
|||
|
|
Net Other Assets and
Liabilities — 0.3%
|
84,188
|
|||
|
|
Net Assets — 100.0%
|
$25,995,280
|
|||
See Notes to Financial Statements
Page 42
US Equity Dividend Select ETF (RNDV)
Portfolio of Investments (Continued)
September 30, 2023 (Unaudited)
Portfolio of Investments (Continued)
September 30, 2023 (Unaudited)
Valuation Inputs
A summary of the inputs used to value the Fund’s investments as of September 30, 2023 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements):
|
|
Total
Value at
9/30/2023
|
Level 1
Quoted
Prices
|
Level 2
Significant
Observable
Inputs
|
Level 3
Significant
Unobservable
Inputs
|
|
Common Stocks*
|
$ 25,911,092
|
$ 25,911,092
|
$ —
|
$ —
|
|
*
|
See Portfolio of Investments for industry breakout.
|
See Notes to Financial Statements
Page 43
First Trust Exchange-Traded Fund VI
Statements of Assets and Liabilities
September 30, 2023 (Unaudited)
Statements of Assets and Liabilities
September 30, 2023 (Unaudited)
|
|
Emerging
Markets Equity
Select ETF
(RNEM)
|
Large Cap US
Equity Select
ETF
(RNLC)
|
Mid Cap US
Equity Select
ETF
(RNMC)
|
|
ASSETS:
|
|
|
|
|
Investments, at value
|
$33,622,968
|
$16,987,474
|
$17,911,456
|
|
Cash
|
3,039
|
14,227
|
12,264
|
|
Foreign currency, at value
|
11,149
|
—
|
—
|
|
Receivables:
|
|
|
|
|
Dividends
|
60,735
|
19,280
|
25,723
|
|
Reclaims
|
2,187
|
—
|
—
|
|
Interest
|
—
|
197
|
—
|
|
Capital shares sold
|
—
|
1,551,488
|
—
|
|
Securities lending income
|
—
|
—
|
—
|
|
Total Assets
|
33,700,078
|
18,572,666
|
17,949,443
|
|
|
|||
|
LIABILITIES:
|
|
|
|
|
Payables:
|
|
|
|
|
Deferred foreign capital gains tax
|
78,534
|
—
|
—
|
|
Investment advisory fees
|
21,071
|
7,902
|
8,467
|
|
Investment securities purchased
|
—
|
1,546,931
|
—
|
|
Collateral for securities on loan
|
—
|
—
|
—
|
|
Total Liabilities
|
99,605
|
1,554,833
|
8,467
|
|
NET ASSETS
|
$33,600,473
|
$17,017,833
|
$17,940,976
|
|
|
|||
|
NET ASSETS consist of:
|
|
|
|
|
Paid-in capital
|
$34,858,464
|
$18,869,723
|
$21,534,738
|
|
Par value
|
7,000
|
5,500
|
6,500
|
|
Accumulated distributable earnings (loss)
|
(1,264,991
)
|
(1,857,390
)
|
(3,600,262
)
|
|
NET ASSETS
|
$33,600,473
|
$17,017,833
|
$17,940,976
|
|
NET ASSET VALUE, per share
|
$48.00
|
$30.94
|
$27.60
|
|
Number of shares outstanding (unlimited number of shares authorized,
par value $0.01 per share)
|
700,002
|
550,002
|
650,002
|
|
Investments, at cost
|
$33,039,866
|
$16,939,812
|
$18,756,231
|
|
Foreign currency, at cost (proceeds)
|
$11,144
|
$—
|
$—
|
|
Securities on loan, at value
|
$—
|
$—
|
$—
|
See Notes to Financial Statements
Page 44
|
Small Cap US
Equity Select
ETF
(RNSC)
|
US Equity
Dividend Select
ETF
(RNDV)
|
|
|
|
|
$26,830,647
|
$25,911,092
|
|
22,319
|
39,110
|
|
—
|
—
|
|
|
|
|
46,136
|
55,317
|
|
—
|
—
|
|
—
|
760
|
|
—
|
—
|
|
47
|
—
|
|
26,899,149
|
26,006,279
|
|
|
|
|
|
|
|
|
|
|
—
|
—
|
|
13,528
|
10,999
|
|
—
|
—
|
|
86,585
|
—
|
|
100,113
|
10,999
|
|
$26,799,036
|
$25,995,280
|
|
|
|
|
|
|
|
$31,589,945
|
$28,947,451
|
|
10,500
|
9,500
|
|
(4,801,409
)
|
(2,961,671
)
|
|
$26,799,036
|
$25,995,280
|
|
$25.52
|
$27.36
|
|
1,050,002
|
950,002
|
|
$28,523,770
|
$26,982,025
|
|
$—
|
$—
|
|
$85,021
|
$—
|
See Notes to Financial Statements
Page 45
First Trust Exchange-Traded Fund VI
Statements of Operations
For the Six Months Ended September 30, 2023 (Unaudited)
Statements of Operations
For the Six Months Ended September 30, 2023 (Unaudited)
|
|
Emerging
Markets Equity
Select ETF
(RNEM)
|
Large Cap US
Equity Select
ETF
(RNLC)
|
Mid Cap US
Equity Select
ETF
(RNMC)
|
|
INVESTMENT INCOME:
|
|
|
|
|
Dividends
|
$731,728
|
$180,965
|
$152,720
|
|
Interest
|
547
|
144
|
81
|
|
Securities lending income (net of fees)
|
—
|
—
|
—
|
|
Foreign withholding tax
|
(109,416
)
|
(2,869
)
|
(592
)
|
|
Total investment income
|
622,859
|
178,240
|
152,209
|
|
|
|||
|
EXPENSES:
|
|
|
|
|
Investment advisory fees
|
91,941
|
49,954
|
38,444
|
|
Total expenses
|
91,941
|
49,954
|
38,444
|
|
NET INVESTMENT INCOME (LOSS)
|
530,918
|
128,286
|
113,765
|
|
|
|||
|
NET REALIZED AND UNREALIZED GAIN (LOSS):
|
|
|
|
|
Net realized gain (loss) on:
|
|
|
|
|
Investments
|
68,926
|
(134,682
)
|
(74,604
)
|
|
In-kind redemptions
|
—
|
314,042
|
172,571
|
|
Foreign currency transactions
|
3,644
|
—
|
—
|
|
Foreign capital gains tax
|
(27,761
)
|
—
|
—
|
|
Net realized gain (loss)
|
44,809
|
179,360
|
97,967
|
|
Net change in unrealized appreciation (depreciation) on:
|
|
|
|
|
Investments
|
322,751
|
(144,231
)
|
(279,030
)
|
|
Foreign currency translation
|
(674
)
|
—
|
—
|
|
Deferred foreign capital gains tax
|
(42,317
)
|
—
|
—
|
|
Net change in unrealized appreciation (depreciation)
|
279,760
|
(144,231
)
|
(279,030
)
|
|
NET REALIZED AND UNREALIZED GAIN (LOSS)
|
324,569
|
35,129
|
(181,063
)
|
|
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS
|
$855,487
|
$163,415
|
$(67,298
)
|
See Notes to Financial Statements
Page 46
|
Small Cap US
Equity Select
ETF
(RNSC)
|
US Equity
Dividend Select
ETF
(RNDV)
|
|
|
|
|
$442,995
|
$443,314
|
|
221
|
293
|
|
956
|
—
|
|
(200
)
|
(1,274
)
|
|
443,972
|
442,333
|
|
|
|
|
|
|
|
82,008
|
65,396
|
|
82,008
|
65,396
|
|
361,964
|
376,937
|
|
|
|
|
|
|
|
|
|
|
(839,287
)
|
(1,082,410
)
|
|
1,017,563
|
673,833
|
|
—
|
—
|
|
—
|
—
|
|
178,276
|
(408,577
)
|
|
|
|
|
(1,398,460
)
|
(537,904
)
|
|
—
|
—
|
|
—
|
—
|
|
(1,398,460
)
|
(537,904
)
|
|
(1,220,184
)
|
(946,481
)
|
|
$(858,220
)
|
$(569,544
)
|
See Notes to Financial Statements
Page 47
First Trust Exchange-Traded Fund VI
Statements of Changes in Net Assets
Statements of Changes in Net Assets
|
|
Emerging Markets Equity Select
ETF (RNEM)
|
Large Cap US Equity Select ETF
(RNLC)
|
||
|
|
Six Months
Ended
9/30/2023
(Unaudited)
|
Year
Ended
3/31/2023
|
Six Months
Ended
9/30/2023
(Unaudited)
|
Year
Ended
3/31/2023
|
|
OPERATIONS:
|
|
|
|
|
|
Net investment income (loss)
|
$530,918
|
$306,295
|
$128,286
|
$312,669
|
|
Net realized gain (loss)
|
44,809
|
(724,550
)
|
179,360
|
566,140
|
|
Net change in unrealized appreciation (depreciation)
|
279,760
|
31,014
|
(144,231
)
|
(2,385,080
)
|
|
Net increase (decrease) in net assets resulting from
operations
|
855,487
|
(387,241
)
|
163,415
|
(1,506,271
)
|
|
|
||||
|
DISTRIBUTIONS TO SHAREHOLDERS FROM:
|
|
|
|
|
|
Investment operations
|
(510,581
)
|
(254,643
)
|
(131,646
)
|
(305,626
)
|
|
|
||||
|
SHAREHOLDER TRANSACTIONS:
|
|
|
|
|
|
Proceeds from shares sold
|
24,299,848
|
2,305,295
|
1,551,488
|
3,125,444
|
|
Cost of shares redeemed
|
—
|
—
|
(1,610,937
)
|
(5,945,869
)
|
|
Net increase (decrease) in net assets resulting from
shareholder transactions
|
24,299,848
|
2,305,295
|
(59,449
)
|
(2,820,425
)
|
|
Total increase (decrease) in net assets
|
24,644,754
|
1,663,411
|
(27,680
)
|
(4,632,322
)
|
|
|
||||
|
NET ASSETS:
|
|
|
|
|
|
Beginning of period
|
8,955,719
|
7,292,308
|
17,045,513
|
21,677,835
|
|
End of period
|
$33,600,473
|
$8,955,719
|
$17,017,833
|
$17,045,513
|
|
|
||||
|
CHANGES IN SHARES OUTSTANDING:
|
|
|
|
|
|
Shares outstanding, beginning of period
|
200,002
|
150,002
|
550,002
|
650,002
|
|
Shares sold
|
500,000
|
50,000
|
50,000
|
100,000
|
|
Shares redeemed
|
—
|
—
|
(50,000
)
|
(200,000
)
|
|
Shares outstanding, end of period
|
700,002
|
200,002
|
550,002
|
550,002
|
See Notes to Financial Statements
Page 48
|
Mid Cap US Equity Select ETF
(RNMC)
|
Small Cap US Equity Select ETF
(RNSC)
|
US Equity Dividend Select ETF
(RNDV)
|
|||
|
Six Months
Ended
9/30/2023
(Unaudited)
|
Year
Ended
3/31/2023
|
Six Months
Ended
9/30/2023
(Unaudited)
|
Year
Ended
3/31/2023
|
Six Months
Ended
9/30/2023
(Unaudited)
|
Year
Ended
3/31/2023
|
|
|
|
|
|
|
|
|
$113,765
|
$272,534
|
$361,964
|
$565,998
|
$376,937
|
$610,459
|
|
97,967
|
678,321
|
178,276
|
(868,241
)
|
(408,577
)
|
(322,812
)
|
|
(279,030
)
|
(1,588,315
)
|
(1,398,460
)
|
(1,064,889
)
|
(537,904
)
|
(1,049,183
)
|
|
(67,298
)
|
(637,460
)
|
(858,220
)
|
(1,367,132
)
|
(569,544
)
|
(761,536
)
|
|
|
|||||
|
|
|
|
|
|
|
|
(90,471
)
|
(277,601
)
|
(309,880
)
|
(545,516
)
|
(387,606
)
|
(571,256
)
|
|
|
|||||
|
|
|
|
|
|
|
|
7,120,311
|
5,684,608
|
6,585,854
|
16,257,937
|
4,358,405
|
8,576,223
|
|
(1,418,444
)
|
(8,543,272
)
|
(6,505,316
)
|
(8,184,037
)
|
(2,940,299
)
|
—
|
|
5,701,867
|
(2,858,664
)
|
80,538
|
8,073,900
|
1,418,106
|
8,576,223
|
|
5,544,098
|
(3,773,725
)
|
(1,087,562
)
|
6,161,252
|
460,956
|
7,243,431
|
|
|
|||||
|
|
|
|
|
|
|
|
12,396,878
|
16,170,603
|
27,886,598
|
21,725,346
|
25,534,324
|
18,290,893
|
|
$17,940,976
|
$12,396,878
|
$26,799,036
|
$27,886,598
|
$25,995,280
|
$25,534,324
|
|
|
|||||
|
|
|
|
|
|
|
|
450,002
|
550,002
|
1,050,002
|
750,002
|
900,002
|
600,002
|
|
250,000
|
200,000
|
250,000
|
600,000
|
150,000
|
300,000
|
|
(50,000
)
|
(300,000
)
|
(250,000
)
|
(300,000
)
|
(100,000
)
|
—
|
|
650,002
|
450,002
|
1,050,002
|
1,050,002
|
950,002
|
900,002
|
See Notes to Financial Statements
Page 49
First Trust Exchange-Traded Fund VI
Financial Highlights
For a share outstanding throughout each period
Financial Highlights
For a share outstanding throughout each period
Emerging Markets Equity Select ETF (RNEM)
|
|
Six Months
Ended
9/30/2023
(Unaudited)
|
Year Ended March 31,
|
||||
|
|
2023
|
2022
|
2021
|
2020
|
2019
|
|
|
Net asset value, beginning of period
|
$44.78
|
$48.61
|
$49.21
|
$37.80
|
$50.89
|
$54.94
|
|
Income from investment operations:
|
|
|
|
|
|
|
|
Net investment income (loss)
|
1.03
(a)
|
1.57
|
1.61
|
1.15
|
1.50
|
1.10
|
|
Net realized and unrealized gain (loss)
|
2.97
|
(4.13
)
|
(0.67
)
|
11.64
|
(13.22
)
|
(3.62
)
|
|
Total from investment operations
|
4.00
|
(2.56
)
|
0.94
|
12.79
|
(11.72
)
|
(2.52
)
|
|
Distributions paid to shareholders from:
|
|
|
|
|
|
|
|
Net investment income
|
(0.78
)
|
(1.27
)
|
(1.20
)
|
(1.38
)
|
(1.37
)
|
(1.19
)
|
|
Net realized gain
|
—
|
—
|
—
|
—
|
—
|
(0.34
)
|
|
Return of capital
|
—
|
—
|
(0.34
)
|
—
|
—
|
—
|
|
Total distributions
|
(0.78
)
|
(1.27
)
|
(1.54
)
|
(1.38
)
|
(1.37
)
|
(1.53
)
|
|
Net asset value, end of period
|
$48.00
|
$44.78
|
$48.61
|
$49.21
|
$37.80
|
$50.89
|
|
Total return (b)
|
8.93
%
|
(4.97
)%
|
1.91
%
|
34.44
%
|
(23.66
)%
|
(4.48
)%
|
|
|
||||||
|
Ratios to average net assets/supplemental data:
|
|
|
|
|
|
|
|
Net assets, end of period (in 000’s)
|
$33,600
|
$8,956
|
$7,292
|
$7,381
|
$7,561
|
$12,723
|
|
Ratio of total expenses to average net assets
|
0.75
% (c)
|
0.75
%
|
0.75
%
|
0.75
%
|
0.75
%
|
0.75
%
|
|
Ratio of net investment income (loss) to average net
assets
|
4.33
% (c)
|
3.61
%
|
3.30
%
|
2.94
%
|
2.83
%
|
2.04
%
|
|
Portfolio turnover rate (d)
|
16
%
|
65
%
|
72
%
|
75
%
|
82
%
|
69
%
|
|
(a)
|
Based on average shares outstanding.
|
|
(b)
|
Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment
of all
distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns
presented do not
reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
Total return is
calculated for the time period presented and is not annualized for periods of less than a year.
|
|
(c)
|
Annualized.
|
|
(d)
|
Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does
not include securities
received or delivered from processing creations or redemptions and in-kind transactions.
|
See Notes to Financial Statements
Page 50
First Trust Exchange-Traded Fund VI
Financial Highlights (Continued)
For a share outstanding throughout each period
Financial Highlights (Continued)
For a share outstanding throughout each period
Large Cap US Equity Select ETF (RNLC)
|
|
Six Months
Ended
9/30/2023
(Unaudited)
|
Year Ended March 31,
|
||||
|
|
2023
|
2022
|
2021
|
2020
|
2019
|
|
|
Net asset value, beginning of period
|
$30.99
|
$33.35
|
$30.22
|
$18.85
|
$22.12
|
$21.54
|
|
Income from investment operations:
|
|
|
|
|
|
|
|
Net investment income (loss)
|
0.24
(a)
|
0.49
|
0.38
|
0.34
|
0.46
|
0.38
|
|
Net realized and unrealized gain (loss)
|
(0.04
) (b)
|
(2.38
)
|
3.13
|
11.39
|
(3.27
)
|
0.56
|
|
Total from investment operations
|
0.20
|
(1.89
)
|
3.51
|
11.73
|
(2.81
)
|
0.94
|
|
Distributions paid to shareholders from:
|
|
|
|
|
|
|
|
Net investment income
|
(0.25
)
|
(0.47
)
|
(0.38
)
|
(0.36
)
|
(0.46
)
|
(0.36
)
|
|
Net asset value, end of period
|
$30.94
|
$30.99
|
$33.35
|
$30.22
|
$18.85
|
$22.12
|
|
Total return (c)
|
0.63
%
|
(5.57
)%
|
11.62
%
|
62.65
%
|
(12.98
)%
|
4.45
%
|
|
|
||||||
|
Ratios to average net assets/supplemental data:
|
|
|
|
|
|
|
|
Net assets, end of period (in 000’s)
|
$17,018
|
$17,046
|
$21,678
|
$25,689
|
$15,081
|
$18,800
|
|
Ratio of total expenses to average net assets
|
0.60
% (d)
|
0.60
%
|
0.60
%
|
0.60
%
|
0.60
%
|
0.60
%
|
|
Ratio of net investment income (loss) to average net
assets
|
1.54
% (d)
|
1.60
%
|
1.13
%
|
1.41
%
|
2.03
%
|
1.72
%
|
|
Portfolio turnover rate (e)
|
13
%
|
30
%
|
21
%
|
34
%
|
24
%
|
28
%
|
|
(a)
|
Based on average shares outstanding.
|
|
(b)
|
The per share amount does not correlate with the aggregate realized and unrealized gain (loss) due to the timing of the Fund
share sales and
repurchases in relation to market value fluctuation of the underlying investments.
|
|
(c)
|
Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment
of all
distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns
presented do not
reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
Total return is
calculated for the time period presented and is not annualized for periods of less than a year.
|
|
(d)
|
Annualized.
|
|
(e)
|
Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does
not include securities
received or delivered from processing creations or redemptions and in-kind transactions.
|
See Notes to Financial Statements
Page 51
First Trust Exchange-Traded Fund VI
Financial Highlights (Continued)
For a share outstanding throughout each period
Financial Highlights (Continued)
For a share outstanding throughout each period
Mid Cap US Equity Select ETF (RNMC)
|
|
Six Months
Ended
9/30/2023
(Unaudited)
|
Year Ended March 31,
|
||||
|
|
2023
|
2022
|
2021
|
2020
|
2019
|
|
|
Net asset value, beginning of period
|
$27.55
|
$29.40
|
$27.75
|
$15.85
|
$21.31
|
$21.18
|
|
Income from investment operations:
|
|
|
|
|
|
|
|
Net investment income (loss)
|
0.25
(a)
|
0.49
|
0.35
|
0.33
|
0.39
|
0.32
|
|
Net realized and unrealized gain (loss)
|
(0.01
)
|
(1.84
)
|
1.65
|
11.90
|
(5.45
)
|
0.12
|
|
Total from investment operations
|
0.24
|
(1.35
)
|
2.00
|
12.23
|
(5.06
)
|
0.44
|
|
Distributions paid to shareholders from:
|
|
|
|
|
|
|
|
Net investment income
|
(0.19
)
|
(0.50
)
|
(0.35
)
|
(0.33
)
|
(0.40
)
|
(0.31
)
|
|
Net asset value, end of period
|
$27.60
|
$27.55
|
$29.40
|
$27.75
|
$15.85
|
$21.31
|
|
Total return (b)
|
0.85
%
|
(4.47
)%
|
7.26
%
|
77.60
%
|
(24.23
)%
|
2.16
%
|
|
|
||||||
|
Ratios to average net assets/supplemental data:
|
|
|
|
|
|
|
|
Net assets, end of period (in 000’s)
|
$17,941
|
$12,397
|
$16,171
|
$16,647
|
$11,096
|
$13,853
|
|
Ratio of total expenses to average net assets
|
0.60
% (c)
|
0.60
%
|
0.60
%
|
0.60
%
|
0.60
%
|
0.60
%
|
|
Ratio of net investment income (loss) to average net
assets
|
1.78
% (c)
|
1.71
%
|
1.22
%
|
1.46
%
|
1.76
%
|
1.70
%
|
|
Portfolio turnover rate (d)
|
20
%
|
51
%
|
43
%
|
60
%
|
43
%
|
42
%
|
|
(a)
|
Based on average shares outstanding.
|
|
(b)
|
Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment
of all
distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns
presented do not
reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
Total return is
calculated for the time period presented and is not annualized for periods of less than a year.
|
|
(c)
|
Annualized.
|
|
(d)
|
Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does
not include securities
received or delivered from processing creations or redemptions and in-kind transactions.
|
See Notes to Financial Statements
Page 52
First Trust Exchange-Traded Fund VI
Financial Highlights (Continued)
For a share outstanding throughout each period
Financial Highlights (Continued)
For a share outstanding throughout each period
Small Cap US Equity Select ETF (RNSC)
|
|
Six Months
Ended
9/30/2023
(Unaudited)
|
Year Ended March 31,
|
||||
|
|
2023
|
2022
|
2021
|
2020
|
2019
|
|
|
Net asset value, beginning of period
|
$26.56
|
$28.97
|
$28.18
|
$14.87
|
$20.84
|
$20.88
|
|
Income from investment operations:
|
|
|
|
|
|
|
|
Net investment income (loss)
|
0.35
(a)
|
0.56
|
0.46
|
0.28
|
0.36
|
0.46
|
|
Net realized and unrealized gain (loss)
|
(1.09
)
|
(2.42
)
|
0.78
|
13.34
|
(5.98
)
|
(0.09
)
|
|
Total from investment operations
|
(0.74
)
|
(1.86
)
|
1.24
|
13.62
|
(5.62
)
|
0.37
|
|
Distributions paid to shareholders from:
|
|
|
|
|
|
|
|
Net investment income
|
(0.30
)
|
(0.55
)
|
(0.45
)
|
(0.31
)
|
(0.35
)
|
(0.41
)
|
|
Net asset value, end of period
|
$25.52
|
$26.56
|
$28.97
|
$28.18
|
$14.87
|
$20.84
|
|
Total return (b)
|
(2.80
)%
|
(6.28
)%
|
4.39
%
|
92.49
%
|
(27.51
)%
|
1.78
%
|
|
|
||||||
|
Ratios to average net assets/supplemental data:
|
|
|
|
|
|
|
|
Net assets, end of period (in 000’s)
|
$26,799
|
$27,887
|
$21,725
|
$9,864
|
$5,946
|
$5,210
|
|
Ratio of total expenses to average net assets
|
0.60
% (c)
|
0.60
%
|
0.60
%
|
0.60
%
|
0.60
%
|
0.60
%
|
|
Ratio of net investment income (loss) to average net
assets
|
2.65
% (c)
|
2.22
%
|
1.79
%
|
1.37
%
|
1.97
%
|
2.25
%
|
|
Portfolio turnover rate (d)
|
23
%
|
72
%
|
49
%
|
71
%
|
52
%
|
52
%
|
|
(a)
|
Based on average shares outstanding.
|
|
(b)
|
Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment
of all
distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns
presented do not
reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
Total return is
calculated for the time period presented and is not annualized for periods of less than a year.
|
|
(c)
|
Annualized.
|
|
(d)
|
Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does
not include securities
received or delivered from processing creations or redemptions and in-kind transactions.
|
See Notes to Financial Statements
Page 53
First Trust Exchange-Traded Fund VI
Financial Highlights (Continued)
For a share outstanding throughout each period
Financial Highlights (Continued)
For a share outstanding throughout each period
US Equity Dividend Select ETF (RNDV)
|
|
Six Months
Ended
9/30/2023
(Unaudited)
|
Year Ended March 31,
|
||||
|
|
2023
|
2022
|
2021
|
2020
|
2019
|
|
|
Net asset value, beginning of period
|
$28.37
|
$30.48
|
$28.07
|
$17.50
|
$21.73
|
$21.09
|
|
Income from investment operations:
|
|
|
|
|
|
|
|
Net investment income (loss)
|
0.41
(a)
|
0.79
|
0.64
|
0.58
|
0.73
|
0.78
|
|
Net realized and unrealized gain (loss)
|
(1.00
)
|
(2.14
)
|
2.40
|
10.61
|
(4.24
)
|
0.58
|
|
Total from investment operations
|
(0.59
)
|
(1.35
)
|
3.04
|
11.19
|
(3.51
)
|
1.36
|
|
Distributions paid to shareholders from:
|
|
|
|
|
|
|
|
Net investment income
|
(0.42
)
|
(0.76
)
|
(0.63
)
|
(0.62
)
|
(0.72
)
|
(0.72
)
|
|
Net asset value, end of period
|
$27.36
|
$28.37
|
$30.48
|
$28.07
|
$17.50
|
$21.73
|
|
Total return (b)
|
(2.11
)%
|
(4.28
)%
|
10.86
%
|
64.82
%
|
(16.81
)%
|
6.64
%
|
|
|
||||||
|
Ratios to average net assets/supplemental data:
|
|
|
|
|
|
|
|
Net assets, end of period (in 000’s)
|
$25,995
|
$25,534
|
$18,291
|
$8,422
|
$4,375
|
$5,434
|
|
Ratio of total expenses to average net assets
|
0.50
% (c)
|
0.50
%
|
0.50
%
|
0.50
%
|
0.50
%
|
0.50
%
|
|
Ratio of net investment income (loss) to average net
assets
|
2.88
% (c)
|
3.00
%
|
2.33
%
|
2.65
%
|
3.23
%
|
2.98
%
|
|
Portfolio turnover rate (d)
|
24
%
|
52
%
|
41
%
|
89
%
|
78
%
|
98
%
|
|
(a)
|
Based on average shares outstanding.
|
|
(b)
|
Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment
of all
distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns
presented do not
reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
Total return is
calculated for the time period presented and is not annualized for periods of less than a year.
|
|
(c)
|
Annualized.
|
|
(d)
|
Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does
not include securities
received or delivered from processing creations or redemptions and in-kind transactions.
|
See Notes to Financial Statements
Page 54
Notes to Financial Statements
First Trust Exchange-Traded Fund VI
September 30, 2023 (Unaudited)
September 30, 2023 (Unaudited)
1. Organization
First Trust Exchange-Traded Fund VI (the “Trust”) is an open-end management investment company organized as a Massachusetts business trust on June 4, 2012, and is registered with the Securities and Exchange Commission under the Investment Company
Act of 1940, as amended (the “1940 Act”).
The Trust currently consists of thirty-two exchange-traded funds that are offering shares. This report covers the five funds
(each a “Fund” and collectively, the “Funds”) listed below, each a diversified series of the Trust and listed and traded on Nasdaq, Inc. (“Nasdaq”).
|
Emerging Markets Equity Select ETF – (ticker “RNEM”)
|
|
Large Cap US Equity Select ETF – (ticker “RNLC”)
|
|
Mid Cap US Equity Select ETF – (ticker “RNMC”)
|
|
Small Cap US Equity Select ETF – (ticker “RNSC”)
|
|
US Equity Dividend Select ETF – (ticker “RNDV”)
|
Each Fund represents a separate series of shares of beneficial interest in the Trust. Unlike conventional mutual funds, each
Fund issues and redeems shares on a continuous basis, at net asset value (“NAV”), only in large blocks of shares known as “Creation Units.” The investment objective of each Fund is to seek investment results that correspond generally to the price and yield (before the Fund’s fees and expenses) of the following indices:
|
Fund
|
Index
|
|
Emerging Markets Equity Select ETF
|
Nasdaq Riskalyze Emerging MarketsTM Index
|
|
Large Cap US Equity Select ETF
|
Nasdaq Riskalyze US Large CapTM Index
|
|
Mid Cap US Equity Select ETF
|
Nasdaq Riskalyze US Mid CapTM Index
|
|
Small Cap US Equity Select ETF
|
Nasdaq Riskalyze US Small CapTM Index
|
|
US Equity Dividend Select ETF
|
Nasdaq Riskalyze US Large Cap Select DividendTM Index
|
2. Significant Accounting Policies
The Funds are each considered an investment company and follow accounting and reporting guidance under Financial Accounting
Standards Board Accounting Standards Codification Topic 946, “Financial Services-Investment Companies.” The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of the financial statements.
The preparation of the financial statements in accordance with accounting principles generally accepted in the United States of
America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.
A. Portfolio Valuation
Each Fund’s NAV is determined daily as of the close of regular trading on the New York Stock Exchange (“NYSE”), normally 4:00 p.m. Eastern time, on each day the NYSE is open for trading. If the NYSE closes early on a valuation day, the NAV is
determined as of that time. Each Fund’s NAV is calculated by dividing the value of all assets of each Fund (including accrued interest and dividends), less all liabilities (including accrued expenses and dividends declared but unpaid), by the total number of
shares outstanding.
Each Fund’s investments are valued daily at market value or, in the absence of market value with respect to any portfolio securities, at fair value. Market value prices represent readily available market quotations such as last sale or official closing prices
from a national or foreign exchange (i.e., a regulated market) and are primarily obtained from third-party pricing services. Fair value prices
represent any prices not considered market value prices and are either obtained from a third-party pricing service or are determined
by the Pricing Committee of the Funds’ investment advisor, First Trust Advisors L.P. (“First Trust” or the “Advisor”), in accordance with valuation procedures approved by the Trust’s Board of Trustees, and in accordance with provisions of the 1940 Act and rules thereunder. Investments valued by the Advisor’s Pricing Committee, if any, are footnoted as such in the footnotes to the Portfolio of Investments. Each Fund’s investments are valued as follows:
Common stocks and other equity securities listed on any national or foreign exchange (excluding Nasdaq and the London Stock
Exchange Alternative Investment Market (“AIM”)) are valued at the last sale price on the exchange on which they are principally traded or, for Nasdaq and AIM securities, the official closing price. Securities traded on more than one securities
Page 55
Notes to Financial Statements (Continued)
First Trust Exchange-Traded Fund VI
September 30, 2023 (Unaudited)
September 30, 2023 (Unaudited)
exchange are valued at the last sale price or official closing price, as applicable, at the close of the securities exchange
representing the primary exchange for such securities.
Securities trading on foreign exchanges or over-the-counter markets that close prior to the NYSE close may be valued using
a systematic fair valuation model provided by a third-party pricing service. If these foreign securities meet certain criteria
in relation to the valuation model, their valuation is systematically adjusted to reflect the impact of movement in the U.S.
market after the close of the foreign markets.
Shares of open-end funds are valued based on NAV per share.
Equity securities traded in an over-the-counter market are valued at the close price or the last trade price.
Overnight repurchase agreements are valued at amortized cost when it represents the most appropriate reflection of fair market
value.
Certain securities may not be able to be priced by pre-established pricing methods. Such securities may be valued by the Advisor’s Pricing Committee at fair value. These securities generally include, but are not limited to, restricted securities (securities
which may not be publicly sold without registration under the Securities Act of 1933, as amended) for which a third-party pricing service
is unable to provide a market price; securities whose trading has been formally suspended; a security whose market or fair value
price is not available from a pre-established pricing source; a security with respect to which an event has occurred that is likely
to materially affect the value of the security after the market has closed but before the calculation of a Fund’s NAV or make it difficult or impossible to obtain a reliable market quotation; and a security whose price, as provided by the third-party pricing service,
does not reflect the security’s fair value. As a general principle, the current fair value of a security would appear to be the amount which the owner might reasonably expect to receive for the security upon its current sale. When fair value prices are used, generally
they will differ from market quotations or official closing prices on the applicable exchanges. A variety of factors may be considered
in determining the fair value of such securities, including, but not limited to, the following:
1)
the last sale price on the exchange on which they are principally traded or, for Nasdaq and AIM securities, the official closing price;
2)
the type of security;
3)
the size of the holding;
4)
the initial cost of the security;
5)
transactions in comparable securities;
6)
price quotes from dealers and/or third-party pricing services;
7)
relationships among various securities;
8)
information obtained by contacting the issuer, analysts, or the appropriate stock exchange;
9)
an analysis of the issuer’s financial statements;
10)
the existence of merger proposals or tender offers that might affect the value of the security; and
11)
other relevant factors.
If the securities in question are foreign securities, the following additional information may be considered:
1)
the value of similar foreign securities traded on other foreign markets;
2)
ADR trading of similar securities;
3)
closed-end fund or exchange-traded fund trading of similar securities;
4)
foreign currency exchange activity;
5)
the trading prices of financial products that are tied to baskets of foreign securities;
6)
factors relating to the event that precipitated the pricing problem;
7)
whether the event is likely to recur;
8)
whether the effects of the event are isolated or whether they affect entire markets, countries or regions; and
9)
other relevant factors.
In addition, differences between the prices used to calculate a Fund’s NAV and the prices used by such Fund’s corresponding index could result in a difference between a Fund’s performance and the performance of its underlying index.
Page 56
Notes to Financial Statements (Continued)
First Trust Exchange-Traded Fund VI
September 30, 2023 (Unaudited)
September 30, 2023 (Unaudited)
Because foreign markets may be open on different days than the days during which investors may transact in the shares of a
Fund, the value of the Fund’s securities may change on the days when investors are not able to transact in the shares of the Fund. The value of the securities denominated in foreign currencies is converted into U.S. dollars using exchange rates determined daily as of
the close of regular trading on the NYSE. Any use of a different rate from the rates used by a relevant index may adversely affect the Fund’s ability to track the index.
The Funds are subject to fair value accounting standards that define fair value, establish the framework for measuring fair
value and provide a three-level hierarchy for fair valuation based upon the inputs to the valuation as of the measurement date. The
three levels of the fair value hierarchy are as follows:
• Level 1 – Level 1 inputs are quoted prices in active markets for identical investments. An active market is a market in which transactions for the investment occur with sufficient frequency and volume to provide pricing information on an ongoing basis.
• Level 2 – Level 2 inputs are observable inputs, either directly or indirectly, and include the following:
o Quoted prices for similar investments in active markets.
o Quoted prices for identical or similar investments in markets that are non-active. A non-active market is a market where there are few transactions for the investment, the prices are not current, or price quotations vary substantially either over
time or among market makers, or in which little information is released publicly.
o Inputs other than quoted prices that are observable for the investment (for example, interest rates and yield curves observable at commonly quoted intervals, volatilities, prepayment speeds, loss severities, credit risks, and default rates).
o Inputs that are derived principally from or corroborated by observable market data by correlation or other means.
• Level 3 – Level 3 inputs are unobservable inputs. Unobservable inputs may reflect the reporting entity’s own assumptions about the assumptions that market participants would use in pricing the investment.
The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing
in those investments. A summary of the inputs used to value each Fund’s investments as of September 30, 2023, is included with each Fund’s Portfolio of Investments.
B. Securities Transactions and Investment Income
Securities transactions are recorded as of the trade date. Realized gains and losses from securities transactions are recorded
on the identified cost basis. Dividend income is recorded on the ex-dividend date except that certain dividends from foreign securities
are recorded as soon as the information becomes available after the ex-dividend date. Interest income, if any, is recorded on
the accrual basis.
Withholding taxes and tax reclaims on foreign dividends have been provided for in accordance with each Fund’s understanding of the applicable country’s tax rules and rates.
Distributions received from a Fund’s investments in real estate investment trusts (“REITs”) may be comprised of return of capital, capital gains and income. The actual character of the amounts received during the year is not known until after the REITs’ fiscal year end. A Fund records the character of distributions received from the REITs during the year based on estimates available. The
characterization of distributions received by a Fund may be subsequently revised based on information received from the REITs
after their tax reporting periods conclude.
C. Offsetting on the Statements of Assets and Liabilities
Offsetting assets and liabilities requires entities to disclose both gross and net information about instruments and transactions
eligible for offset on the Statements of Assets and Liabilities and disclose instruments and transactions subject to master netting
or similar agreements. These disclosure requirements are intended to help investors and other financial statement users better assess
the effect or potential effect of offsetting arrangements on a Fund’s financial position. The transactions subject to offsetting disclosures are derivative instruments, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending
transactions.
This disclosure, if applicable, is included within each Fund’s Portfolio of Investments under the heading “Offsetting Assets and Liabilities.” For financial reporting purposes, the Funds do not offset financial assets and financial liabilities that are subject to master netting arrangements (“MNAs”) or similar agreements on the Statements of Assets and Liabilities. MNAs provide the right, in the
Page 57
Notes to Financial Statements (Continued)
First Trust Exchange-Traded Fund VI
September 30, 2023 (Unaudited)
September 30, 2023 (Unaudited)
event of default (including bankruptcy and insolvency), for the non-defaulting counterparty to liquidate the collateral and
calculate the net exposure to the defaulting party or request additional collateral.
D. Foreign Currency
The books and records of the Funds are maintained in U.S. dollars. Foreign currencies, investments and other assets and liabilities
are translated into U.S. dollars at the exchange rates prevailing at the end of the period. Purchases and sales of investments
and items of income and expense are translated on the respective dates of such transactions. Unrealized gains and losses on assets and
liabilities, other than investments in securities, which result from changes in foreign currency exchange rates have been included in “Net change in unrealized appreciation (depreciation) on foreign currency translation” on the Statements of Operations. Unrealized gains and losses on investments in securities which result from changes in foreign exchange rates are included with fluctuations arising from
changes in market price and are shown in “Net change in unrealized appreciation (depreciation) on investments” on the Statements of Operations. Net realized foreign currency gains and losses include the effect of changes in exchange rates between trade date
and settlement date on investment security transactions, foreign currency transactions and interest and dividends received and
are included in “Net realized gain (loss) on foreign currency transactions” on the Statements of Operations. The portion of foreign currency gains and losses related to fluctuations in exchange rates between the initial purchase settlement date and subsequent sale trade
date is included in “Net realized gain (loss) on investments” on the Statements of Operations.
E. Securities Lending
The Funds may lend securities representing up to 33 1/3% of the value of their total assets to broker-dealers, banks and other
institutions to generate additional income. When a Fund loans its portfolio securities, it will receive, at the inception
of each loan, collateral equal to at least 102% (for domestic securities) or 105% (for international securities) of the market value of
the loaned securities. The collateral amount is valued at the beginning of each business day and is compared to the market value of the
loaned securities from the prior business day to determine if additional collateral is required. If additional collateral is required,
a request is sent to the borrower. Securities lending involves the risk that the Fund may lose money because the borrower of the Fund’s loaned securities fails to return the securities in a timely manner or at all. The Fund could also lose money in the event of (i)
a decline in the value of the collateral provided for the loaned securities, (ii) a decline in the value of any investments made with cash
collateral or (iii) an increase in the value of the loaned securities if the borrower does not increase the collateral accordingly and the borrower
fails to return the securities. These events could also trigger adverse tax consequences for the Funds.
Under the Funds’ Securities Lending Agency Agreement, the securities lending agent will generally bear the risk that a borrower may default on its obligation to return loaned securities. Prior to June 12, 2023, the Funds’ securities agent was Brown Brothers Harriman & Co. (“BBH”). Effective June 12, 2023 the Bank of New York Mellon (“BNYM”) acts as the Funds’ securities lending agent and is responsible for executing the lending of the portfolio securities to creditworthy borrowers. The Funds, however, will be responsible
for the risks associated with the investment of cash collateral. A Fund may lose money on its investment of cash collateral, which
may affect its ability to repay the collateral to the borrower without the use of other Fund assets. Each Fund that engages in
securities lending receives compensation (net of any rebate and securities lending agent fees) for lending its securities. Compensation
can be in the form of fees received from the securities lending agent or dividends or interest earned from the investment of cash collateral.
The fees received from the securities lending agent are accrued daily. The dividend and interest earned on the securities loaned
is accounted for in the same manner as other dividend and interest income. At September 30, 2023, only RNSC had securities in
the securities lending program. During the six months ended September 30, 2023, only RNSC participated in the securities lending
program.
In the event of a default by a borrower with respect to any loan, BNYM will exercise any and all remedies provided under the
applicable borrower agreement to make the Funds whole. These remedies include purchasing replacement securities by applying
the collateral held from the defaulting broker against the purchase cost of the replacement securities. If, despite such efforts
by BNYM to exercise these remedies, a Fund sustains losses as a result of a borrower’s default, BNYM will indemnify the Fund by purchasing replacement securities at its own expense, or paying the Fund an amount equal to the market value of the replacement securities,
subject to certain limitations which are set forth in detail in the Securities Lending Agency Agreement between the Trust
on behalf of the Funds and BNYM.
F. Repurchase Agreements
Repurchase agreements involve the purchase of securities subject to the seller’s agreement to repurchase the securities at a mutually agreed upon date and price, under the terms of a Master Repurchase Agreement (“MRA”). During the term of a repurchase agreement, the value of the underlying securities held as collateral on behalf of a Fund, including accrued interest, is required to
exceed the value
Page 58
Notes to Financial Statements (Continued)
First Trust Exchange-Traded Fund VI
September 30, 2023 (Unaudited)
September 30, 2023 (Unaudited)
of the repurchase agreement, including accrued interest. The underlying securities for all repurchase agreements are held at the Funds’ custodian or designated sub-custodians under tri-party repurchase agreements.
MRAs govern transactions between a Fund and select counterparties. The MRAs contain provisions for, among other things, initiation,
income payments, events of default, and maintenance of collateral for repurchase agreements.
Repurchase agreements received for lending securities are collateralized by U.S. Treasury securities. The U.S. Treasury securities
are held in a joint custody account at BNYM on behalf of the Funds participating in the securities lending program. In the event
the counterparty defaults on the repurchase agreement, the U.S. Treasury securities can either be maintained as part of a Fund’s portfolio or sold for cash. A Fund could suffer a loss to the extent that the proceeds from the sale of the underlying collateral held
by the Fund are less than the repurchase price and the Fund’s costs associated with the delay and enforcement of the MRA.
While the Funds may invest in repurchase agreements, any repurchase agreements held by the Funds during the six months ended
September 30, 2023, were received as collateral for lending securities.
G. Dividends and Distributions to Shareholders
Dividends from net investment income of each Fund, if any, are declared and paid quarterly, or as the Board of Trustees may
determine from time to time. Distributions of net realized gains earned by each Fund, if any, are distributed at least annually.
A Fund may also designate a portion of the amount paid to redeeming shareholders as a distribution for tax purposes.
Distributions from net investment income and realized capital gains are determined in accordance with federal income tax regulations,
which may differ from U.S. GAAP. Certain capital accounts in the financial statements are periodically adjusted for permanent
differences in order to reflect their tax character. These permanent differences are primarily due to the varying treatment
of income and gain/loss on portfolio securities held by the Funds and have no impact on net assets or NAV per share. Temporary differences,
which arise from recognizing certain items of income, expense and gain/loss in different periods for financial statement and
tax purposes, will reverse at some time in the future.
The tax character of distributions paid by each Fund during the fiscal year ended March 31, 2023 was as follows:
|
|
Distributions
paid from
Ordinary
Income
|
Distributions
paid from
Capital
Gains
|
Distributions
paid from
Return of
Capital
|
|
Emerging Markets Equity Select ETF
|
$254,643
|
$—
|
$—
|
|
Large Cap US Equity Select ETF
|
305,626
|
—
|
—
|
|
Mid Cap US Equity Select ETF
|
277,601
|
—
|
—
|
|
Small Cap US Equity Select ETF
|
545,516
|
—
|
—
|
|
US Equity Dividend Select ETF
|
571,256
|
—
|
—
|
As of March 31, 2023, the components of distributable earnings on a tax basis for each Fund were as follows:
|
|
Undistributed
Ordinary
Income
|
Accumulated
Capital and
Other
Gain (Loss)
|
Net
Unrealized
Appreciation
(Depreciation)
|
|
Emerging Markets Equity Select ETF
|
$32,465
|
$(1,750,106
)
|
$107,744
|
|
Large Cap US Equity Select ETF
|
19,487
|
(1,989,412
)
|
80,766
|
|
Mid Cap US Equity Select ETF
|
7,814
|
(2,665,399
)
|
(784,908
)
|
|
Small Cap US Equity Select ETF
|
37,020
|
(2,797,779
)
|
(872,550
)
|
|
US Equity Dividend Select ETF
|
63,315
|
(1,226,146
)
|
(841,690
)
|
H. Income and Other Taxes
Each Fund intends to continue to qualify as a regulated investment company by complying with the requirements under Subchapter
M of the Internal Revenue Code of 1986, as amended, which includes distributing substantially all of its net investment income
and net realized gains to shareholders. Accordingly, no provision has been made for federal and state income taxes. However, due to
the
Page 59
Notes to Financial Statements (Continued)
First Trust Exchange-Traded Fund VI
September 30, 2023 (Unaudited)
September 30, 2023 (Unaudited)
timing and amount of distributions, each Fund may be subject to an excise tax of 4% of the amount by which approximately 98%
of each Fund’s taxable income exceeds the distributions from such taxable income for the calendar year.
Certain countries assess a capital gains tax on securities sold in their local markets. This tax is accrued as the securities
in these foreign markets appreciate in value and is paid at the time of sale to the extent a capital gain is realized. Taxes accrued on securities
in an unrealized appreciation position are included in “Net change in unrealized appreciation (depreciation) on deferred foreign capital gains tax” on the Statements of Operations. The capital gains tax paid on securities sold, if any, is included in “Net realized gain (loss) on foreign capital gains tax” on the Statements of Operations.
India’s Finance Bill, 2018 (“Finance Bill, 2018”) was enacted into law on March 29, 2018 and amongst other provisions, it introduced a long-term capital gains tax beginning April 1, 2018. Long-term capital gains on the sale of listed shares in excess of INR
0.1 million are taxed at the rate of 10% (plus applicable surcharge and cess (which is a type of tax)) subject to satisfaction of certain
conditions. Long-term capital gains accruing as of January 31, 2018 are considered exempt due to a grandfather clause in the provision.
The aforesaid exemption from long-term capital gains tax is available with respect to shares acquired between October 1, 2004
and March 31, 2018 only if on such acquisitions Securities Transaction Tax (“STT”) was chargeable. Certain exceptions in this regard, such as acquisition of shares in a public offer, bonus, rights issued, etc. for which the condition of chargeability of STT
on acquisition is not applicable, have been notified.
In the case of the sale of listed shares held by a Fund for one year or less, the income is classified as short-term capital
gains and is taxable at 15% (plus applicable surcharge and cess) provided the shares are sold on the stock exchange and subjected to STT.
For above purposes, the applicable rate of surcharge is 2% or 5% (depending on the level of income of the Fund). The Finance Bill,
2018 increases the cess imposed on the sum of tax and surcharge from 3% to 4%. The cess 4% rate is applied to the capital gains
tax, resulting in a higher effective rate of capital gains tax.
Where the sale of shares is outside the stock exchange and not subject to STT, the long-term capital gains are taxed at 10%
(plus applicable surcharge and cess) and short-term capital gains are taxed at 30% (plus applicable surcharge and cess). The Finance
Bill, 2018, approves the carry forward of long-term capital losses to be offset against long-term capital gains. Short-term losses
can be netted against both short-term gains and long-term gains.
Until March 31, 2020, dividends received by a Fund from Indian companies were exempt from tax in India because Indian companies
were required to pay dividend distribution tax. The Indian Finance Act, 2020 has amended the dividend taxation framework effective
April 1, 2020 and accordingly dividends would now be taxable in the hands of the shareholders at 20%, plus applicable surcharge
and cess. Subsequent to the Indian Finance Act, 2020, “The Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Bill, 2020” (the “Bill”) was enacted into law and is effective retroactively to April 1, 2020. The Bill caps the maximum surcharge at 15% of the tax on dividend income earned by the Fund. The highest effective tax rate proposed for non-corporate entities on
dividends will be 23.92%. Note the Fund will not obtain relief under the US-India tax treaty as the treaty rate of 25% is higher than
the domestic rate. Any excess taxes withheld can be offset against capital gains tax liability during the year or claimed as a refund in
the annual tax return.
Please note that the above description is based on current provisions of Indian law, and any change or modification made by
subsequent legislation, regulation, or administrative or judicial decision could increase the Indian tax liability of a Fund
and thus reduce the return to a Fund’s shareholders. There can be no assurance that the Indian tax authorities and/or regulators will not take a position contrary to the views expressed herein. If the Indian tax authorities and/or regulators take a position contrary
to the views expressed herein, adverse unpredictable consequences may follow.
The Funds are subject to accounting standards that establish a minimum threshold for recognizing, and a system for measuring,
the benefits of a tax position taken or expected to be taken in a tax return. The taxable years ended 2020, 2021, 2022, and 2023 remain
open to federal and state audit. As of September 30, 2023, management has evaluated the application of these standards to
the Funds and has determined that no provision for income tax is required in the Funds’ financial statements for uncertain tax positions.
Each Fund intends to utilize provisions of the federal income tax laws, which allow it to carry a realized capital loss forward
indefinitely following the year of the loss and offset such loss against any future realized capital gains. Each Fund is subject
to certain limitations under U.S. tax rules on the use of capital loss carryforwards and net unrealized built-in losses. These limitations
apply when there has been a 50% change in ownership. At March 31, 2023, for federal income tax purposes, each applicable Fund had
a capital loss carryforward available that is shown in the following table, to the extent provided by regulations, to offset
future capital
Page 60
Notes to Financial Statements (Continued)
First Trust Exchange-Traded Fund VI
September 30, 2023 (Unaudited)
September 30, 2023 (Unaudited)
gains. To the extent that these loss carryforwards are used to offset future capital gains, it is probable that the capital
gains so offset will not be distributed to each applicable Fund’s shareholders.
|
|
Non-Expiring
Capital Loss
Carryforwards
|
|
Emerging Markets Equity Select ETF
|
$1,750,106
|
|
Large Cap US Equity Select ETF
|
1,989,412
|
|
Mid Cap US Equity Select ETF
|
2,665,399
|
|
Small Cap US Equity Select ETF
|
2,797,779
|
|
US Equity Dividend Select ETF
|
1,226,146
|
As of September 30, 2023, the aggregate cost, gross unrealized appreciation, gross unrealized depreciation, and net unrealized
appreciation/(depreciation) on investments (including short positions and derivatives, if any) for federal income tax purposes
were as follows:
|
|
Tax Cost
|
Gross
Unrealized
Appreciation
|
Gross
Unrealized
(Depreciation)
|
Net Unrealized
Appreciation
(Depreciation)
|
|
Emerging Markets Equity Select ETF
|
$33,039,866
|
$2,400,785
|
$(1,817,683
)
|
$583,102
|
|
Large Cap US Equity Select ETF
|
16,939,812
|
1,679,082
|
(1,631,420
)
|
47,662
|
|
Mid Cap US Equity Select ETF
|
18,756,231
|
1,011,722
|
(1,856,497
)
|
(844,775
)
|
|
Small Cap US Equity Select ETF
|
28,523,770
|
2,018,804
|
(3,711,927
)
|
(1,693,123
)
|
|
US Equity Dividend Select ETF
|
26,982,025
|
1,246,454
|
(2,317,387
)
|
(1,070,933
)
|
I. Expenses
Expenses, other than the investment advisory fee and other excluded expenses, are paid by the Advisor (see Note 3).
First Trust has entered into licensing agreements with Nitrogen Wealth, Inc. (“Licensor”) for the Funds. The respective license agreements allow for the use by First Trust of each Fund’s respective index and of certain trademarks and trade names of the Licensor. The Funds are sub-licensees to the applicable license agreements.
3. Investment Advisory Fee, Affiliated Transactions and Other Fee Arrangements
First Trust, the investment advisor to the Funds, is a limited partnership with one limited partner, Grace Partners of DuPage
L.P., and one general partner, The Charger Corporation. The Charger Corporation is an Illinois corporation controlled by James A. Bowen,
Chief Executive Officer of First Trust. First Trust is responsible for the selection and ongoing monitoring of the securities
in each Fund’s portfolio, managing the Funds’ business affairs and providing certain administrative services necessary for the management of the Funds.
First Trust is responsible for the expenses of each Fund including the cost of transfer agency, custody, fund administration,
licensing fees, legal, audit and other services, but excluding fee payments under the Investment Management Agreement, interest, taxes,
brokerage commissions and other expenses associated with the execution of portfolio transactions, acquired fund fees and expenses,
distribution and service fees pursuant to a Rule 12b-1 plan, if any, and extraordinary expenses, which are paid by each respective
Fund. Prior to June 12, 2023, First Trust also provided fund reporting services to the Funds for a flat annual fee in the
amount of $9,250 per Fund, which was covered under the annual unitary management fee. The annual unitary management fee payable by each
Fund to First Trust for these services will be reduced at certain levels of each Fund’s net assets (“breakpoints”) and calculated pursuant to the following schedules:
|
Breakpoints
|
RNEM
|
|
Fund net assets up to and including $2.5 billion
|
0.75000
%
|
|
Fund net assets greater than $2.5 billion up to and including $5 billion
|
0.73125
%
|
|
Fund net assets greater than $5 billion up to and including $7.5 billion
|
0.71250
%
|
|
Fund net assets greater than $7.5 billion up to and including $10 billion
|
0.69375
%
|
|
Fund net assets greater than $10 billion
|
0.67500
%
|
Page 61
Notes to Financial Statements (Continued)
First Trust Exchange-Traded Fund VI
September 30, 2023 (Unaudited)
September 30, 2023 (Unaudited)
|
Breakpoints
|
RNLC
|
RNMC
|
RNSC
|
RNDV
|
|
Fund net assets up to and including $2.5 billion
|
0.600
%
|
0.600
%
|
0.600
%
|
0.5000
%
|
|
Fund net assets greater than $2.5 billion up to and including $5 billion
|
0.585
%
|
0.585
%
|
0.585
%
|
0.4875
%
|
|
Fund net assets greater than $5 billion up to and including $7.5 billion
|
0.570
%
|
0.570
%
|
0.570
%
|
0.4750
%
|
|
Fund net assets greater than $7.5 billion up to and including $10 billion
|
0.555
%
|
0.555
%
|
0.555
%
|
0.4625
%
|
|
Fund net assets greater than $10 billion up to and including $15 billion
|
0.540
%
|
0.540
%
|
0.540
%
|
0.4500
%
|
|
Fund net assets greater than $15 billion
|
0.510
%
|
0.510
%
|
0.510
%
|
0.4250
%
|
Effective June 12, 2023, the Trust has multiple service agreements with BNYM. Under the service agreements, BNYM performs
custodial, fund accounting, certain administrative services, and transfer agency services for each Fund. As custodian, BNYM
is responsible for custody of each Fund’s assets. As fund accountant and administrator, BNYM is responsible for maintaining the books and records of each Fund’s securities and cash. As transfer agent, BNYM is responsible for maintaining shareholder records for each Fund. BNYM is a subsidiary of The Bank of New York Mellon Corporation, a financial holding company.
Prior to June 12, 2023, the Trust had multiple service agreements with BBH. Under the service agreements, BBH performed custodial,
fund accounting, certain administrative services, and transfer agency services for each Fund. As custodian, BBH was responsible
for custody of each Fund’s assets. As fund accountant and administrator, BBH was responsible for maintaining the books and records of each Fund’s securities and cash. As transfer agent, BBH was responsible for maintaining shareholder records for each Fund.
Each Trustee who is not an officer or employee of First Trust, any sub-advisor or any of their affiliates (“Independent Trustees”) is paid a fixed annual retainer that is allocated equally among each fund in the First Trust Fund Complex. Each Independent Trustee
is also paid an annual per fund fee that varies based on whether the fund is a closed-end or other actively managed fund, a target
outcome fund or an index fund.
Additionally, the Lead Independent Trustee and the Chairs of the Audit Committee, Nominating and Governance Committee and
Valuation Committee are paid annual fees to serve in such capacities, with such compensation allocated pro rata among each
fund in the First Trust Fund Complex based on net assets. Independent Trustees are reimbursed for travel and out-of-pocket expenses
in connection with all meetings. The Lead Independent Trustee and Committee Chairs rotate every three years. The officers and
“Interested” Trustee receive no compensation from the Trust for acting in such capacities.
4. Purchases and Sales of Securities
For the six months ended September 30, 2023, the cost of purchases and proceeds from sales of investments for each Fund, excluding
short-term investments and in-kind transactions, were as follows:
|
|
Purchases
|
Sales
|
|
Emerging Markets Equity Select ETF
|
$23,349,347
|
$3,809,100
|
|
Large Cap US Equity Select ETF
|
2,132,803
|
2,133,915
|
|
Mid Cap US Equity Select ETF
|
2,737,745
|
2,697,173
|
|
Small Cap US Equity Select ETF
|
6,481,991
|
6,407,393
|
|
US Equity Dividend Select ETF
|
6,122,514
|
6,129,798
|
For the six months ended September 30, 2023, the cost of in-kind purchases and proceeds from in-kind sales for each Fund were
as follows:
|
|
Purchases
|
Sales
|
|
Emerging Markets Equity Select ETF
|
$4,739,632
|
$—
|
|
Large Cap US Equity Select ETF
|
1,546,931
|
1,609,458
|
|
Mid Cap US Equity Select ETF
|
7,086,489
|
1,413,566
|
|
Small Cap US Equity Select ETF
|
6,559,751
|
6,498,331
|
|
US Equity Dividend Select ETF
|
4,351,365
|
2,933,690
|
5. Creations, Redemptions and Transaction Fees
Each Fund generally issues and redeems its shares in primary market transactions through a creation and redemption mechanism
and does not sell or redeem individual shares. Instead, financial entities known as “Authorized Participants” have contractual arrangements with a Fund or one of the Fund’s service providers to purchase and redeem Fund shares directly with the Fund in large blocks of
Page 62
Notes to Financial Statements (Continued)
First Trust Exchange-Traded Fund VI
September 30, 2023 (Unaudited)
September 30, 2023 (Unaudited)
shares known as “Creation Units.” Prior to the start of trading on every business day, a Fund publishes through the National Securities Clearing Corporation the “basket” of securities, cash or other assets that it will accept in exchange for a Creation Unit of the Fund’s shares. An Authorized Participant that wishes to effectuate a creation of a Fund’s shares deposits with the Fund the “basket” of securities, cash or other assets identified by the Fund that day, and then receives the Creation Unit of the Fund’s shares in return for those assets. After purchasing a Creation Unit, the Authorized Participant may continue to hold the Fund’s shares or sell them in the secondary market. The redemption process is the reverse of the purchase process:the Authorized Participant redeems a Creation Unit of a Fund’s shares for a basket of securities, cash or other assets. The combination of the creation and redemption process with secondary market trading in a Fund’s shares and underlying securities provides arbitrage opportunities that are designed to help keep the market price of a Fund’s shares at or close to the NAV per share of the Fund.
Each Fund imposes fees in connection with the purchase of Creation Units. These fees may vary based upon various fact-based
circumstances, including, but not limited to, the composition of the securities included in the Creation Unit or the countries
in which the transactions are settled. The price for each Creation Unit will equal the daily NAV per share of a Fund times the number
of shares in a Creation Unit, plus the fees described above and, if applicable, any operational processing and brokerage costs, transfer
fees, stamp taxes and part or all of the spread between the expected bid and offer side of the market related to the securities
comprising the creation basket.
Each Fund also imposes fees in connection with the redemption of Creation Units. These fees may vary based upon various fact-based
circumstances, including, but not limited to, the composition of the securities included in the Creation Unit or the countries
in which the transactions are settled. The price received for each Creation Unit will equal the daily NAV per share of a Fund times
the number of shares in a Creation Unit, minus the fees described above and, if applicable, any operational processing and brokerage
costs, transfer fees, stamp taxes and part or all of the spread between the expected bid and offer side of the market related to
the securities comprising the redemption basket. Investors who use the services of a broker or other such intermediary in addition to an
Authorized Participant to effect a redemption of a Creation Unit may also be assessed an amount to cover the cost of such services. The
redemption fee charged by a Fund will comply with Rule 22c-2 of the 1940 Act which limits redemption fees to no more than
2% of the value of the shares redeemed.
6. Distribution Plan
The Board of Trustees adopted a Distribution and Service Plan pursuant to Rule 12b-1 under the 1940 Act. In accordance with
the Rule 12b-1 plan, the Funds are authorized to pay an amount up to 0.25% of their average daily net assets each year to reimburse
First Trust Portfolios L.P. (“FTP”), the distributor of the Funds, for amounts expended to finance activities primarily intended to result in the sale of Creation Units or the provision of investor services. FTP may also use this amount to compensate securities dealers
or other persons that are Authorized Participants for providing distribution assistance, including broker-dealer and shareholder support
and educational and promotional services.
No 12b-1 fees are currently paid by the Funds, and pursuant to a contractual arrangement, no 12b-1 fees will be paid any time
before July 31, 2024.
7. Indemnification
The Trust, on behalf of the Funds, has a variety of indemnification obligations under contracts with its service providers. The Trust’s maximum exposure under these arrangements is unknown. However, the Trust has not had prior claims or losses pursuant to these
contracts and expects the risk of loss to be remote.
8. Subsequent Events
Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were issued
and has determined that there were the following subsequent events:
First Trust Advisors L.P. (“FTA”) previously announced that the Board of Trustees of First Trust Exchange-Traded Fund VI (“Trust”) voted to approve a change to the investment strategy, name and ticker symbol for US Equity Dividend Select ETF (the “Fund”), an index-based exchange-traded fund and a series of the Trust. Beginning on October 3, 2023, the Fund will seek investment results
that correspond generally to the price and yield (before the Fund’s fees and expenses) of an equity index called the S&P 500® Sector-Neutral Dividend Aristocrats Index (the “New Index”). Currently, the Fund seeks investment results that correspond generally to the price and yield (before the Fund’s fees and expenses) of an equity index called the Nasdaq Riskalyze US Large Cap Select DividendTM Index. According to S&P Dow Jones Indices, LLC, the index provider of the New Index, the New Index measures the
Page 63
Notes to Financial Statements (Continued)
First Trust Exchange-Traded Fund VI
September 30, 2023 (Unaudited)
September 30, 2023 (Unaudited)
performance of companies within the S&P 500® Index that have demonstrated stable or increasing dividend per share amounts. The New Index also seeks to mirror the Global Industry Classification Standard (GICS®) sector weighting represented in the S&P 500® Index. Additionally, beginning on October 3, 2023, the Fund’s name will change to First Trust S&P 500 Diversified Dividend Aristocrats ETF and its new ticker symbol will be KNGZ. The Fund’s CUSIP is not expected to change. The Fund’s shares will continue to be listed for trading on Nasdaq, Inc.
Page 64
Additional Information
First Trust Exchange-Traded Fund VI
September 30, 2023 (Unaudited)
September 30, 2023 (Unaudited)
Proxy Voting Policies and Procedures
A description of the policies and procedures that the Trust uses to determine how to vote proxies and information on how each
Fund voted proxies relating to its portfolio securities during the most recent 12-month period ended June 30 is available (1) without
charge, upon request, by calling (800) 988-5891; (2) on each Fund’s website at www.ftportfolios.com; and (3) on the Securities and Exchange Commission’s (“SEC”) website at www.sec.gov.
Portfolio Holdings
Each Fund files portfolio holdings information for each month in a fiscal quarter within 60 days after the end of the relevant
fiscal quarter on Form N-PORT. Portfolio holdings information for the third month of each fiscal quarter will be publicly available
on the SEC’s website at www.sec.gov. Each Fund’s complete schedule of portfolio holdings for the second and fourth quarters of each fiscal year is included in the semi-annual and annual reports to shareholders, respectively, and is filed with the SEC on Form N-CSR.
The semi-annual and annual report for each Fund is available to investors within 60 days after the period to which it relates. Each Fund’s Forms N-PORT and Forms N-CSR are available on the SEC’s website listed above.
Risk Considerations
Risks are inherent in all investing. Certain general risks that may be applicable to a Fund are identified below, but not
all of the material risks relevant to each Fund are included in this report and not all of the risks below apply to each Fund. The
material risks of investing in each Fund are spelled out in its prospectus, statement of additional information and other
regulatory filings. Before investing, you should consider each Fund’s investment objective, risks, charges and expenses, and read each Fund’s prospectus and statement of additional information carefully. You can download each Fund’s prospectus at www.ftportfolios.com or contact First Trust Portfolios L.P. at (800) 621-1675 to request a prospectus, which contains this and other information about each Fund.
Concentration Risk. To the extent that a fund is able to invest a significant percentage of its assets in a single asset class or the securities of issuers within the same country, state, region, industry or sector, an adverse economic, business or political
development may affect the value of the fund’s investments more than if the fund were more broadly diversified. A fund that tracks an index will be concentrated to the extent the fund’s corresponding index is concentrated. A concentration makes a fund more susceptible to any single occurrence and may subject the fund to greater market risk than a fund that is more broadly diversified.
Credit Risk. Credit risk is the risk that an issuer of a security will be unable or unwilling to make dividend, interest and/or principal
payments when due and the related risk that the value of a security may decline because of concerns about the issuer’s ability to make such payments.
Cyber Security Risk. The funds are susceptible to potential operational risks through breaches in cyber security. A breach in cyber security refers to both intentional and unintentional events that may cause a fund to lose proprietary information, suffer
data corruption or lose operational capacity. Such events could cause a fund to incur regulatory penalties, reputational damage, additional
compliance costs associated with corrective measures and/or financial loss. In addition, cyber security breaches of a fund’s third-party service providers, such as its administrator, transfer agent, custodian, or sub-advisor, as applicable, or issuers in which the fund
invests, can also subject a fund to many of the same risks associated with direct cyber security breaches.
Defined Outcome Funds Risk. To the extent a fund’s investment strategy is designed to deliver returns tied to the price performance of an underlying ETF, an investor may not realize the returns the fund seeks to achieve if that investor does not hold shares
for the entire target outcome period. In the event an investor purchases shares after the first day of the target outcome period or
sells shares prior to the end of the target outcome period, the buffer that the fund seeks to provide against a decline in the value of
the underlying ETF may not be available, the enhanced returns that the fund seeks to provide (if any) may not be available and the investor
may not participate in a gain in the value of the underlying ETF up to the cap for the investor’s investment period. Additionally, the fund will not participate in gains of the underlying ETF above the cap and a shareholder may lose their entire investment. If the fund
seeks enhanced returns, there are certain time periods when the value of the fund may fall faster than the value of the underlying
ETF, and it is very unlikely that, on any given day during which the underlying ETF share price increases in value, the fund’s share price will increase at the same rate as the enhanced returns sought by the fund, which is designed for an entire target outcome period.
Trading flexible exchange options involves risks different from, or possibly greater than, the risks associated with investing directly
in securities, such as less liquidity and correlation and valuation risks. A fund may experience substantial downside from specific
flexible exchange option positions and certain positions may expire worthless.
Page 65
Additional Information (Continued)
First Trust Exchange-Traded Fund VI
September 30, 2023 (Unaudited)
September 30, 2023 (Unaudited)
Derivatives Risk. To the extent a fund uses derivative instruments such as futures contracts, options contracts and swaps, the fund may experience losses because of adverse movements in the price or value of the underlying asset, index or rate, which may
be magnified by certain features of the derivative. These risks are heightened when a fund’s portfolio managers use derivatives to enhance the fund’s return or as a substitute for a position or security, rather than solely to hedge (or offset) the risk of a position or security held by the fund.
Equity Securities Risk. To the extent a fund invests in equity securities, the value of the fund’s shares will fluctuate with changes in the value of the equity securities. Equity securities prices fluctuate for several reasons, including changes in investors’ perceptions of the financial condition of an issuer or the general condition of the relevant stock market, such as market volatility, or
when political or economic events affecting the issuers occur. In addition, common stock prices may be particularly sensitive to rising interest
rates, as the cost of capital rises and borrowing costs increase. Equity securities may decline significantly in price over short or
extended periods of time, and such declines may occur in the equity market as a whole, or they may occur in only a particular country,
company, industry or sector of the market.
ETF Risk. The shares of an ETF trade like common stock and represent an interest in a portfolio of securities. The risks of owning
an ETF generally reflect the risks of owning the underlying securities, although lack of liquidity in an ETF could result in
it being more volatile and ETFs have management fees that increase their costs. Shares of an ETF trade on an exchange at market prices rather
than net asset value, which may cause the shares to trade at a price greater than net asset value (premium) or less than net asset
value (discount). In times of market stress, decisions by market makers to reduce or step away from their role of providing a market
for an ETF’s shares, or decisions by an ETF’s authorized participants that they are unable or unwilling to proceed with creation and/or redemption orders of an ETF’s shares, could result in shares of the ETF trading at a discount to net asset value and in greater than normal intraday bid-ask spreads.
Fixed Income Securities Risk. To the extent a fund invests in fixed income securities, the fund will be subject to credit risk, income risk, interest rate risk, liquidity risk and prepayment risk. Income risk is the risk that income from a fund’s fixed income investments could decline during periods of falling interest rates. Interest rate risk is the risk that the value of a fund’s fixed income securities will decline because of rising interest rates. Liquidity risk is the risk that a security cannot be purchased or sold at the time
desired, or cannot be purchased or sold without adversely affecting the price. Prepayment risk is the risk that the securities will be
redeemed or prepaid by the issuer, resulting in lower interest payments received by the fund. In addition to these risks, high yield securities,
or “junk” bonds, are subject to greater market fluctuations and risk of loss than securities with higher ratings, and the market for high yield securities is generally smaller and less liquid than that for investment grade securities.
Index or Model Constituent Risk. Certain funds may be a constituent of one or more indices or ETF models. As a result, such a fund may be included in one or more index-tracking exchange-traded funds or mutual funds. Being a component security of such a
vehicle could greatly affect the trading activity involving a fund, the size of the fund and the market volatility of the fund. Inclusion
in an index could increase demand for the fund and removal from an index could result in outsized selling activity in a relatively
short period of time. As a result, a fund’s net asset value could be negatively impacted and the fund’s market price may be significantly below its net asset value during certain periods. In addition, index rebalances may potentially result in increased trading
activity in a fund’s shares.
Index Provider Risk. To the extent a fund seeks to track an index, it is subject to Index Provider Risk. There is no assurance that the Index Provider will compile the Index accurately, or that the Index will be determined, maintained, constructed, reconstituted,
rebalanced, composed, calculated or disseminated accurately. To correct any such error, the Index Provider may carry out an
unscheduled rebalance or other modification of the Index constituents or weightings, which may increase the fund’s costs. The Index Provider does not provide any representation or warranty in relation to the quality, accuracy or completeness of data in the
Index, and it does not guarantee that the Index will be calculated in accordance with its stated methodology. Losses or costs associated
with any Index Provider errors generally will be borne by the fund and its shareholders.
Investment Companies Risk. To the extent a fund invests in the securities of other investment vehicles, the fund will incur additional fees and expenses that would not be present in a direct investment in those investment vehicles. Furthermore, the fund’s investment performance and risks are directly related to the investment performance and risks of the investment vehicles in which the
fund invests.
LIBOR Risk. To the extent a fund invests in floating or variable rate obligations that use the London Interbank Offered Rate (“LIBOR”) as a reference interest rate, it is subject to LIBOR Risk. The United Kingdom’s Financial Conduct Authority, which regulates LIBOR, has ceased making LIBOR available as a reference rate over a phase-out period that began December 31, 2021.
Page 66
Additional Information (Continued)
First Trust Exchange-Traded Fund VI
September 30, 2023 (Unaudited)
September 30, 2023 (Unaudited)
There is no assurance that any alternative reference rate, including the Secured Overnight Financing Rate (“SOFR”) will be similar to or produce the same value or economic equivalence as LIBOR or that instruments using an alternative rate will have the same
volume or liquidity. The unavailability or replacement of LIBOR may affect the value, liquidity or return on certain fund investments
and may result in costs incurred in connection with closing out positions and entering into new trades. Any potential effects of the
transition away from LIBOR on the fund or on certain instruments in which the fund invests can be difficult to ascertain, and they may
vary depending on a variety of factors, and they could result in losses to the fund.
Management Risk. To the extent that a fund is actively managed, it is subject to management risk. In managing an actively-managed fund’s investment portfolio, the fund’s portfolio managers will apply investment techniques and risk analyses that may not have the desired result. There can be no guarantee that a fund will meet its investment objective.
Market Risk. Market risk is the risk that a particular security, or shares of a fund in general, may fall in value. Securities held by
a fund, as well as shares of a fund itself, are subject to market fluctuations caused by factors such as general economic conditions,
political events, regulatory or market developments, changes in interest rates and perceived trends in securities prices.
Shares of a fund could decline in value or underperform other investments as a result of the risk of loss associated with these market fluctuations.
In addition, local, regional or global events such as war, acts of terrorism, spread of infectious diseases or other public health
issues, recessions, or other events could have a significant negative impact on a fund and its investments. Such events may affect
certain geographic regions, countries, sectors and industries more significantly than others. In February 2022, Russia invaded Ukraine
which has caused and could continue to cause significant market disruptions and volatility within the markets in Russia, Europe,
and the United States. The hostilities and sanctions resulting from those hostilities could have a significant impact on certain fund
investments as well as fund performance. The COVID-19 global pandemic and the ensuing policies enacted by governments and central banks
have caused and may continue to cause significant volatility and uncertainty in global financial markets. While the U.S. has
resumed “reasonably” normal business activity, many countries continue to impose lockdown measures. Additionally, there is no guarantee that vaccines will be effective against emerging variants of the disease. These events also adversely affect the prices and liquidity
of a fund’s portfolio securities or other instruments and could result in disruptions in the trading markets. Any of such circumstances could have a materially negative impact on the value of a fund’s shares and result in increased market volatility. During any such events, a fund’s shares may trade at increased premiums or discounts to their net asset value and the bid/ask spread on a fund’s shares may widen.
Non-U.S. Securities Risk. To the extent a fund invests in non-U.S. securities, it is subject to additional risks not associated with securities of domestic issuers. Non-U.S. securities are subject to higher volatility than securities of domestic issuers due
to:possible adverse political, social or economic developments; restrictions on foreign investment or exchange of securities; capital
controls; lack of liquidity; currency exchange rates; excessive taxation; government seizure of assets; the imposition of sanctions by foreign
governments; different legal or accounting standards; and less government supervision and regulation of exchanges in foreign
countries. Investments in non-U.S. securities may involve higher costs than investments in U.S. securities, including higher
transaction and custody costs, as well as additional taxes imposed by non-U.S. governments. These risks may be heightened for securities
of companies located, or with significant operations, in emerging market countries.
Operational Risk. Each fund is subject to risks arising from various operational factors, including, but not limited to, human error, processing and communication errors, errors of a fund’s service providers, counterparties or other third-parties, failed or inadequate processes and technology or systems failures. Each fund relies on third-parties for a range of services, including custody.
Any delay or failure relating to engaging or maintaining such service providers may affect a fund’s ability to meet its investment objective. Although the funds and the funds’ investment advisor seek to reduce these operational risks through controls and procedures, there is no way to completely protect against such risks.
Passive Investment Risk. To the extent a fund seeks to track an index, the fund will invest in the securities included in, or representative of, the index regardless of their investment merit. A fund generally will not attempt to take defensive positions
in declining markets.
Preferred Securities Risk. Preferred securities combine some of the characteristics of both common stocks and bonds. Preferred securities are typically subordinated to bonds and other debt securities in a company’s capital structure in terms of priority to corporate income, subjecting them to greater credit risk than those debt securities. Generally, holders of preferred securities have
no voting rights with respect to the issuing company unless preferred dividends have been in arrears for a specified number of periods,
at which time the preferred security holders may obtain limited rights. In certain circumstances, an issuer of preferred securities
may defer
Page 67
Additional Information (Continued)
First Trust Exchange-Traded Fund VI
September 30, 2023 (Unaudited)
September 30, 2023 (Unaudited)
payment on the securities and, in some cases, redeem the securities prior to a specified date. Preferred securities may also
be substantially less liquid than other securities, including common stock.
Valuation Risk. The valuation of certain securities may carry more risk than that of common stock. Uncertainties in the conditions of the financial markets, unreliable reference data, lack of transparency and inconsistency of valuation models and processes
may lead to inaccurate asset pricing. A fund may hold investments in sizes smaller than institutionally sized round lot positions (sometimes
referred to as odd lots). However, third-party pricing services generally provide evaluations on the basis of institutionally-sized
round lots. If a fund sells certain of its investments in an odd lot transaction, the sale price may be less than the value at which
such securities have been held by the fund. Odd lots often trade at lower prices than institutional round lots. There is no assurance that
the fund will be able to sell a portfolio security at the price established by the pricing service, which could result in a loss to the
fund.
NOT FDIC INSURED NOT BANK GUARANTEED MAY LOSE VALUE
Advisory Agreements
Board Considerations Regarding Approval of the Continuation of the Investment Management Agreement
The Board of Trustees of First Trust Exchange-Traded Fund VI (the “Trust”), including the Independent Trustees, unanimously approved the continuation of the Investment Management Agreement (the “Agreement”) with First Trust Advisors L.P. (the “Advisor”) on behalf of the following series of the Trust (each a “Fund” and collectively, the “Funds”):
|
Emerging Markets Equity Select ETF (RNEM)
|
|
Large Cap US Equity Select ETF (RNLC)
|
|
Mid Cap US Equity Select ETF (RNMC)
|
|
Small Cap US Equity Select ETF (RNSC)
|
|
US Equity Dividend Select ETF (RNDV)
|
The Board approved the continuation of the Agreement for each Fund for a one-year period ending June 30, 2024 at a meeting
held on June 4–5, 2023. The Board determined for each Fund that the continuation of the Agreement is in the best interests of the Fund in light of the nature, extent and quality of the services provided and such other matters as the Board considered to be relevant
in the exercise of its business judgment.
To reach this determination for each Fund, the Board considered its duties under the Investment Company Act of 1940, as amended
(the “1940 Act”), as well as under the general principles of state law, in reviewing and approving advisory contracts; the requirements of the 1940 Act in such matters; the fiduciary duty of investment advisors with respect to advisory agreements and compensation;
the standards used by courts in determining whether investment company boards have fulfilled their duties; and the factors to
be considered by the Board in voting on such agreements. At meetings held on April 17, 2023 and June 4–5, 2023, the Board, including the Independent Trustees, reviewed materials provided by the Advisor responding to requests for information from counsel to
the Independent Trustees, submitted on behalf of the Independent Trustees, that, among other things, outlined:the services provided by the Advisor to each Fund (including the relevant personnel responsible for these services and their experience); the unitary
fee rate schedule payable by each Fund as compared to fees charged to a peer group of funds (the “Expense Group”) and a broad peer universe of funds (the “Expense Universe”), each assembled by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent source, and as compared to fees charged to other clients of the Advisor, including other exchange-traded funds (“ETFs”) managed by the Advisor; the expense ratio of each Fund as compared to expense ratios of the funds in the Fund’s Expense Group and Expense Universe; performance information for each Fund, including comparisons of each Fund’s performance to that of one or more relevant benchmark indexes and to that of a performance group of funds and a broad performance universe of funds (the “Performance Universe”), each assembled by Broadridge; the nature of expenses incurred in providing services to each Fund and the potential for the Advisor to realize economies of scale, if any; profitability and other financial data for the Advisor; any indirect benefits
to the Advisor and its affiliate, First Trust Portfolios L.P. (“FTP”); and information on the Advisor’s compliance program. The Board reviewed initial materials with the Advisor at the meeting held on April 17, 2023, prior to which the Independent Trustees and their
counsel met separately to discuss the information provided by the Advisor. Following the April meeting, counsel to the Independent Trustees,
on behalf of the Independent Trustees, requested certain clarifications and supplements to the materials provided, and the information
provided in response to those requests was considered at an executive session of the Independent Trustees and their counsel
held prior to the June 4–5, 2023 meeting, as well as at the June meeting. The Board applied its business judgment to determine whether the arrangement between the Trust and the Advisor continues to be a reasonable business arrangement from each Fund’s perspective. The Board determined that, given the totality of the information provided with respect to the Agreement, the Board had received
sufficient
Page 68
Additional Information (Continued)
First Trust Exchange-Traded Fund VI
September 30, 2023 (Unaudited)
September 30, 2023 (Unaudited)
information to renew the Agreement. The Board considered that shareholders chose to invest or remain invested in a Fund knowing
that the Advisor manages the Fund and knowing the Fund’s unitary fee.
In reviewing the Agreement for each Fund, the Board considered the nature, extent and quality of the services provided by
the Advisor under the Agreement. The Board considered that the Advisor is responsible for the overall management and administration of
the Trust and each Fund and reviewed all of the services provided by the Advisor to the Funds, as well as the background and experience
of the persons responsible for such services. In reviewing the services provided, the Board noted the compliance program
that had been developed by the Advisor and considered that it includes a robust program for monitoring the Advisor’s and each Fund’s compliance with the 1940 Act, as well as each Fund’s compliance with its investment objective, policies and restrictions. The Board also considered a report from the Advisor with respect to its risk management functions related to the operation of the Funds.
Finally, as part of the Board’s consideration of the Advisor’s services, the Advisor, in its written materials and at the April 17, 2023 meeting, described to the Board the scope of its ongoing investment in additional personnel and infrastructure to maintain and improve
the quality of services provided to the Funds and the other funds in the First Trust Fund Complex. In light of the information
presented and the considerations made, the Board concluded that the nature, extent and quality of the services provided to the Trust
and each Fund by the Advisor under the Agreement have been and are expected to remain satisfactory and that the Advisor has managed
each Fund consistent with its investment objective, policies and restrictions.
The Board considered the unitary fee rate schedule payable by each Fund under the Agreement for the services provided. The
Board considered that as part of the unitary fee the Advisor is responsible for each Fund’s expenses, including the cost of transfer agency, custody, fund administration, legal, audit and other services and license fees, if any, but excluding the fee payment under
the Agreement and interest, taxes, brokerage commissions and other expenses connected with the execution of portfolio transactions,
distribution and service fees pursuant to a Rule 12b-1 plan, if any, and extraordinary expenses, if any. The Board received
and reviewed information showing the fee rates and expense ratios of the peer funds in the Expense Groups, as well as advisory
and unitary fee rates charged by the Advisor to other fund (including ETFs) and non-fund clients, as applicable. Because each
Fund pays a unitary fee, the Board determined that expense ratios were the most relevant comparative data point. Based on the information
provided, the Board noted that the total (net) expense ratio for each Fund was above the median total (net) expense ratio
of the peer funds in its respective Expense Group. With respect to the Expense Groups, the Board, at the April 17, 2023 meeting, discussed
with Broadridge its methodology for assembling peer groups and discussed with the Advisor limitations in creating peer groups for
index ETFs, including differences in underlying indexes and index-tracking methodologies that can result in greater management complexities across seemingly comparable ETFs and different business models that may affect the pricing of services among
ETF sponsors. The Board took these limitations and differences into account in considering the peer data. With respect to fees
charged to other non-ETF clients, the Board considered differences between the Funds and other non-ETF clients that limited their comparability. In considering the unitary fee rate schedules overall, the Board also considered the Advisor’s statement that it seeks to meet investor needs through innovative and value-added investment solutions and the Advisor’s demonstrated long-term commitment to each Fund and the other funds in the First Trust Fund Complex.
The Board considered performance information for each Fund. The Board noted the process it has established for monitoring
each Fund’s performance and portfolio risk on an ongoing basis, which includes quarterly performance reporting from the Advisor for the Funds. The Board determined that this process continues to be effective for reviewing each Fund’s performance. The Board received and reviewed information for periods ended December 31, 2022 regarding the performance of each Fund’s underlying index, the correlation between each Fund’s performance and that of its underlying index, each Fund’s tracking difference and each Fund’s excess return as compared to its benchmark index. With respect to RNDV, the Board noted that during 2023, it approved changes to
the Fund’s investment objective and, effective on or around October 3, 2023, the Fund will change its name and ticker symbol and begin tracking the S&P 500 Sector-Neutral Dividend Aristocrats Index. Based on the information provided and its ongoing review
of performance, the Board concluded that each Fund was correlated to its underlying index and that the tracking difference for
each Fund was within a reasonable range. In addition, the Board reviewed data prepared by Broadridge comparing each Fund’s performance to that of its respective Performance Universe and to that of a broad-based benchmark index. However, given each Fund’s objective of seeking investment results that correspond generally to the performance of its underlying index, the Board placed more emphasis
on its review of correlation and tracking difference.
On the basis of all the information provided on the unitary fee and performance of each Fund and the ongoing oversight by
the Board, the Board concluded that the unitary fee for each Fund continues to be reasonable and appropriate in light of the nature,
extent and quality of the services provided by the Advisor to each Fund under the Agreement.
Page 69
Additional Information (Continued)
First Trust Exchange-Traded Fund VI
September 30, 2023 (Unaudited)
September 30, 2023 (Unaudited)
The Board considered information and discussed with the Advisor whether there were any economies of scale in connection with
providing advisory services to the Funds at current asset levels and whether the Funds may benefit from any economies of scale.
The Board noted that the unitary fee rate schedule for each Fund includes breakpoints pursuant to which the unitary fee rate will
be reduced as assets of the Fund meet certain thresholds. The Board considered the Advisor’s statement that it believes that its expenses relating to providing advisory services to the Funds will increase during the next twelve months as the Advisor continues
to build infrastructure and add new staff. The Board also noted that under the unitary fee structure, any reduction in expenses associated
with the management and operations of the Funds would benefit the Advisor, but that the unitary fee structure provides a level
of certainty in expenses for shareholders of the Funds. The Board concluded that the unitary fee rate schedule for each Fund reflects
an appropriate level of sharing of any economies of scale that may be realized in the management of the Fund at current asset
levels. The Board considered the revenues and allocated costs (including the allocation methodology) of the Advisor in serving as investment
advisor to each Fund for the twelve months ended December 31, 2022 and the estimated profitability level for each Fund calculated
by the Advisor based on such data, as well as complex-wide and product-line profitability data, for the same period. The Board
noted the inherent limitations in the profitability analysis and concluded that, based on the information provided, the Advisor’s profitability level for each Fund was not unreasonable. In addition, the Board considered indirect benefits described by the Advisor that may
be realized from its relationship with the Funds. The Board considered that the Advisor had identified as an indirect benefit to the
Advisor and FTP their exposure to investors and brokers who, absent their exposure to the Funds, may have had no dealings with the Advisor
or FTP, and noted that the Advisor does not utilize soft dollars in connection with the Funds. The Board also considered the Advisor’s compensation for fund reporting services provided to each Fund pursuant to a separate Fund Reporting Services Agreement, which
is paid from the unitary fee. The Board concluded that the character and amount of potential indirect benefits to the Advisor
were not unreasonable.
Based on all of the information considered and the conclusions reached, the Board, including the Independent Trustees, unanimously
determined that the terms of the Agreement continue to be fair and reasonable and that the continuation of the Agreement is
in the best interests of each Fund. No single factor was determinative in the Board’s analysis.
Liquidity Risk Management Program
In accordance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “1940 Act”), the Funds and each other fund in the First Trust Fund Complex, other than the closed-end funds, have adopted and implemented a liquidity risk management
program (the “Program”) reasonably designed to assess and manage the funds’ liquidity risk, i.e., the risk that a fund could not meet requests to redeem shares issued by the fund without significant dilution of remaining investors’ interests in the fund. The Board of Trustees of the First Trust Funds has appointed First Trust Advisors, L.P. (the “Advisor”) as the person designated to administer the Program, and in this capacity the Advisor performs its duties primarily through the activities and efforts of the First Trust
Liquidity Committee (the “Liquidity Committee”).
Pursuant to the Program, the Liquidity Committee classifies the liquidity of each fund’s portfolio investments into one of the four liquidity categories specified by Rule 22e-4: highly liquid investments, moderately liquid investments, less liquid investments
and illiquid investments. The Liquidity Committee determines certain of the inputs for this classification process, including
reasonably anticipated trade sizes and significant investor dilution thresholds. The Liquidity Committee also determines and periodically
reviews a highly liquid investment minimum for certain funds, monitors the funds’ holdings of assets classified as illiquid investments to seek to ensure they do not exceed 15% of a fund’s net assets and establishes policies and procedures regarding redemptions in kind.
At the April 17, 2023 meeting of the Board of Trustees, as required by Rule 22e-4 and the Program, the Advisor provided the
Board with a written report prepared by the Advisor that addressed the operation of the Program during the period from March 17,
2022 through the Liquidity Committee’s annual meeting held on March 23, 2023 and assessed the Program’s adequacy and effectiveness of implementation during this period, including the operation of the highly liquid investment minimum for each fund that is required
under the Program to have one, and any material changes to the Program. Note that because the Funds primarily hold assets
that are highly liquid investments, the Funds have not adopted any highly liquid investment minimums.
As stated in the written report, during the review period, two funds breached the 15% limitation on illiquid investments for
one day each, as a result of an unscheduled week-long closure of the stock exchange in Istanbul following devastating earthquakes
in February, causing all Turkish equities to be re-classified as “illiquid” for one day. Each fund filed a Form N-RN on the day after the breach occurred, and one day later after the breach was cured. No fund with a highly liquid investment minimum breached that minimum
during the reporting period. The Advisor concluded that each fund’s investment strategy is appropriate for an open-end fund; that the
Page 70
Additional Information (Continued)
First Trust Exchange-Traded Fund VI
September 30, 2023 (Unaudited)
September 30, 2023 (Unaudited)
Program operated effectively in all material respects during the review period; and that the Program is reasonably designed
to assess and manage the liquidity risk of each fund and to maintain compliance with Rule 22e-4.
Page 71
First Trust Exchange-Traded Fund VI
INVESTMENT ADVISOR
First Trust Advisors L.P.
120 East Liberty Drive, Suite 400
Wheaton, IL 60187
120 East Liberty Drive, Suite 400
Wheaton, IL 60187
ADMINISTRATOR, CUSTODIAN,
FUND ACCOUNTANT &
TRANSFER AGENT
FUND ACCOUNTANT &
TRANSFER AGENT
The Bank of New York Mellon
240 Greenwich Street
New York, NY 10286
240 Greenwich Street
New York, NY 10286
INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
PUBLIC ACCOUNTING FIRM
Deloitte & Touche LLP
111 South Wacker Drive
Chicago, IL 60606
111 South Wacker Drive
Chicago, IL 60606
LEGAL COUNSEL
Chapman and Cutler LLP
320 South Canal Street
Chicago, IL 60606
320 South Canal Street
Chicago, IL 60606
Semi-Annual Report
For the Six Months Ended
September 30, 2023
September 30, 2023
First Trust Exchange-Traded Fund VI
|
First Trust Indxx Medical Devices ETF (MDEV)
|
Table of Contents
First Trust Indxx Medical Devices ETF (MDEV)
Semi-Annual Report
September 30, 2023
Semi-Annual Report
September 30, 2023
|
1
|
|
|
2
|
|
|
3
|
|
|
5
|
|
|
6
|
|
|
8
|
|
|
9
|
|
|
10
|
|
|
11
|
|
|
12
|
|
|
18
|
Caution Regarding Forward-Looking Statements
This report contains certain forward-looking statements within the meaning of the Securities Act of 1933, as amended, and
the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements regarding the goals, beliefs, plans
or current expectations of First Trust Advisors L.P. (“First Trust” or the “Advisor”) and its representatives, taking into account the information currently available to them. Forward-looking statements include all statements that do not relate solely to current
or historical fact. For example, forward-looking statements include the use of words such as “anticipate,” “estimate,” “intend,” “expect,” “believe,” “plan,” “may,” “should,” “would” or other words that convey uncertainty of future events or outcomes.
Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results,
performance or achievements of the series of First Trust Exchange-Traded Fund VI (the “Trust”) described in this report (First Trust Indxx Medical Devices ETF; hereinafter referred to as the “Fund”) to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. When evaluating the information included in this report,
you are cautioned not to place undue reliance on these forward-looking statements, which reflect the judgment of the Advisor and
its representatives only as of the date hereof. We undertake no obligation to publicly revise or update these forward-looking
statements to reflect events and circumstances that arise after the date hereof.
Performance and Risk Disclosure
There is no assurance that the Fund will achieve its investment objective. The Fund is subject to market risk, which is the
possibility that the market values of securities owned by the Fund will decline and that the value of the Fund’s shares may therefore be less than what you paid for them. Accordingly, you can lose money investing in the Fund. See “Risk Considerations” in the Additional Information section of this report for a discussion of certain other risks of investing in the Fund.
Performance data quoted represents past performance, which is no guarantee of future results, and current performance may
be lower or higher than the figures shown. For the most recent month-end performance figures, please visit www.ftportfolios.com or speak with your financial advisor. Investment returns, net asset value and share price will fluctuate and Fund shares, when sold, may
be worth more or less than their original cost.
The Advisor may also periodically provide additional information on Fund performance on the Fund’s webpage at www.ftportfolios.com.
How to Read This Report
This report contains information that may help you evaluate your investment in the Fund. It includes details about the Fund
and presents data and analysis that provide insight into the Fund’s performance and investment approach.
By reading the market overview by Robert F. Carey, Chief Market Strategist of the Advisor, you may obtain an understanding
of how the market environment affected the Fund’s performance. The statistical information that follows may help you understand the Fund’s performance compared to that of relevant market benchmarks.
It is important to keep in mind that the opinions expressed by personnel of the Advisor are just that:informed opinions. They should not be considered to be promises or advice. The opinions, like the statistics, cover the period through the date on the cover
of this report. The material risks of investing in the Fund are spelled out in the prospectus, the statement of additional information,
and other Fund regulatory filings.
Shareholder Letter
First Trust Indxx Medical Devices ETF (MDEV)
Semi-Annual Letter from the Chairman and CEO
September 30, 2023
Semi-Annual Letter from the Chairman and CEO
September 30, 2023
Dear Shareholders,
First Trust is pleased to provide you with the semi-annual report for the First Trust Indxx Medical Devices ETF (the “Fund”), which contains detailed information about the Fund for the six months ended September 30, 2023.
A famous financial industry quote came to mind as I was sizing up the current business climate:“Wall Street has a few prudent principles; the trouble is that they are always forgotten when they are most needed.” The past year has been a time when those who stuck with their principles were rewarded, in my opinion. The financial markets continue to battle a myriad of headwinds,
from geopolitical uncertainty resulting from war (Israel and Hamas and the conflict between Russia and Ukraine), to slowing global
economic growth and inflation. Inflation, for one, has remained persistently high. A common measure of inflation is the 12-month
rate of change in the Consumer Price Index (“CPI”). The CPI stood at 3.7% on September 30, 2023, significantly lower than its most recent high of 9.1% set on June 30, 2022, but up from its most recent low of 3.0% on June 30, 2023. Considering this, as well
as other better-than-expected economic data, the Federal Reserve recently noted that the Federal Funds target rate will need to remain
elevated for a longer period than previously expected.
As many investors are likely aware, a higher Federal Funds target rate has deep implications for consumers. Perhaps the most
obvious area impacted by higher rates is housing. The national average for a 30-year mortgage stood at 7.99% as of October 18, 2023,
up from 3.22% on October 20, 2021. Higher mortgage rates, coupled with high home prices, are stretching U.S. home affordability. The
monthly payment on a median-priced home ($407,100 in August 2023) with a 20% down payment, and a mortgage rate of 7.99%, comes in at $2,387. It is not just mortgage rates that are pressuring the budgets of U.S. households. Debt payments on car
loans and credit cards are showing signs of weakness as well. Data from the Federal Reserve Bank of New York revealed that the rate
of new credit card and new auto loan delinquencies stood at 7.2% and 7.3%, respectively, in the second quarter of 2023 (most recent
data), surpassing pre-pandemic levels.
While headwinds to the global economy exist, not all the news is bad. Driven by technological developments in artificial intelligence,
the U.S. equity markets have had a phenomenal year. Year-to-date through September 30, 2023, the S&P 500® Index has enjoyed a total return of 13.07%. Additionally, the U.S. exported a record 20.4 billion cubic feet per day (“Bcf/d”) of natural gas and 11.6 Bcf/d of liquefied natural gas (“LNG”) over the first six months of the year, making the U.S. the world’s largest exporter of LNG during this period. It can be tempting to deviate from fundamentals when times get tough, but we continue to encourage investors to hold
fast to their principles; they will serve you for years to come.
Thank you for giving First Trust the opportunity to play a role in your financial future. We value our relationship with you
and will report on the Fund again in six months.
Sincerely,
James A. Bowen
Chairman of the Board of Trustees
Chief Executive Officer of First Trust Advisors L.P.
Chairman of the Board of Trustees
Chief Executive Officer of First Trust Advisors L.P.
Page 1
Market Overview
First Trust Indxx Medical Devices ETF (MDEV)
Semi-Annual Report
September 30, 2023
Semi-Annual Report
September 30, 2023
Robert F. Carey, CFA
Senior Vice President and Chief Market Strategist
First Trust Advisors L.P.
Senior Vice President and Chief Market Strategist
First Trust Advisors L.P.
Mr. Carey is responsible for the overall management of research and analysis of the First Trust product line. Mr. Carey has more than 30 years of experience as an Equity and Fixed-Income Analyst and is a recipient of the Chartered Financial Analyst (“CFA”) designation. He is a graduate of the University of Illinois at Champaign-Urbana with a B.S. in Physics. He is also a member of the Investment Analysts Society of Chicago and the CFA Institute. Mr. Carey has appeared as a guest on such programs as Bloomberg TV, CNBC, and WBBM Radio, and has been quoted by several publications, including The Wall Street Journal, The Wall Street Reporter, Bloomberg News Service and Registered Rep.
State of the Global Economy
The latest global growth forecast from the International Monetary Fund (“IMF”) released in October 2023 sees real gross domestic product growth rising by 3.0% worldwide in 2023, up from its 2.9% projection in January 2023. The IMF is currently forecasting
a 2.1% growth rate for the U.S., up from its January 2023 estimate of 1.4%. Emerging Market and Developing Economies are expected
to grow by 4.0% this year, unchanged from the IMF’s 4.0% estimate in January 2023. The IMF notes that risks to their global outlook remain tilted to the downside, citing the real estate crisis in China, the potential for increased volatility among commodity
prices, and uncomfortably high inflation, among other reasons, for their outlook.
In the U.S., inflation, as measured by the Consumer Price Index (“CPI”), stood at 3.7% on a trailing 12-month basis at the end of September 2023, according to the U.S. Bureau of Labor Statistics. While this is significantly lower than the most recent high
of 9.1% in June 2022, the September CPI reading reflects a re-acceleration in the metric when compared to its most recent low of 3.0%
set on June 30, 2023.
Performance of Global Stocks and Bonds
The major U.S. stock indices delivered mixed results over the past six months. The S&P 500® (the “Index”), S&P MidCap 400® and S&P SmallCap 600® Indices posted total returns of 5.18%, 0.45% and -1.71%, respectively, for the six-month period ended September 30, 2023. Seven of the 11 major sectors that comprise the Index were positive on a total return basis. The top performer
was the Communication Services sector, up 16.54%, while the worst showing came from the Utilities sector, down 11.54%.
A Bloomberg survey of twenty-two equity strategists found that their average 2023 year-end price target for the Index was
4,370 as of October 18, 2023, according to its own release. The highest and lowest estimates were 4,900 and 3,700, respectively. The Index
closed trading on September 29, 2023, at 4,288.05. Bloomberg’s consensus year-over-year earnings growth rate estimates for the Index for the 2023 and 2024 calendar years stood at -2.83% and 11.89%, respectively, as of October 13, 2023.
The broader foreign stock indices experienced negative total returns over the past six months. For the six months ended September
30, 2023, the MSCI World ex USA and MSCI Emerging Markets equity indices posted total returns of -1.20% (USD) and -2.05% (USD),
respectively, according to Bloomberg. The major foreign bond indices were also down over the same period. The Bloomberg Global
Aggregate Index of higher quality debt posted a total return of -5.06% (USD), while the Bloomberg EM Hard Currency Aggregate
Index of emerging markets debt fell by 1.18% (USD), according to Bloomberg. The U.S. dollar rose 3.58% over the past six months
against a basket of major currencies, as measured by the U.S. Dollar Index (DXY). The increase in the dollar proved to be
a headwind to the performance of both foreign stock and bond indices, in our opinion.
Results were mixed in the U.S. bond market over the period. The top performing major debt group we track was intermediate
U.S. high yield bonds. The Bloomberg Intermediate U.S. High Yield Index posted a total return of 2.29% for the six-month period
ended September 30, 2023. The worst performing U.S. debt group that we track was municipal bonds. The Bloomberg Long Municipal Bond
(22+) Index posted a total return of -6.03%. The yield on the benchmark 10-Year Treasury Note (“T-Note”) rose by 110 basis points in the period to close at 4.57% on September 29, 2023, according to Bloomberg. For comparative purposes, the average yield
on the 10-Year T-Note was 2.27% for the 10-year period ended September 30, 2023.
Page 2
Fund Performance Overview (Unaudited)
First Trust Indxx Medical Devices ETF (MDEV)
The First Trust Indxx Medical Devices ETF (the “Fund”) seeks investment results that correspond generally to the price and yield (before the Fund’s fees and expenses) of an index called the Indxx Global Medical Equipment Index (the “Index”). The shares of the Fund are listed and traded on Cboe BZX Exchange, Inc. under the ticker symbol “MDEV.”
Under normal market conditions, the Fund will invest at least 80% of its net assets (plus any borrowings for investment purposes)
in the securities that comprise the Index. The Index is developed, maintained and sponsored by Indxx, Inc. (the “Index Provider”). The Index is composed of common stock and depositary receipts issued by U.S. and non-U.S. companies that comprise the medical
devices industry, as determined by the Index Provider. According to the Index Provider, companies comprising the medical devices
industry are those companies that focus on developing equipment, instruments, and machines to diagnose, monitor, and treat
diseases.
|
Performance
|
||||
|
|
|
|
Average Annual
Total Returns
|
Cumulative
Total Returns
|
|
|
6 Months
Ended
9/30/23
|
1 Year
Ended
9/30/23
|
Inception
(6/22/21)
to 9/30/23
|
Inception
(6/22/21)
to 9/30/23
|
|
Fund Performance
|
|
|
|
|
|
NAV
|
-11.62%
|
10.62%
|
-13.67%
|
-28.41%
|
|
Market Price
|
-11.44%
|
10.88%
|
-13.62%
|
-28.33%
|
|
Index Performance
|
|
|
|
|
|
Indxx Global Medical Equipment Index
|
-11.28%
|
11.02%
|
-13.14%
|
-27.42%
|
|
MSCI World Health Care Index
|
-0.40%
|
10.88%
|
0.67%
|
1.54%
|
|
MSCI World Index
|
3.13%
|
21.95%
|
-0.63%
|
-1.44%
|
Total returns for the period since inception are calculated from the inception date of the Fund. “Average Annual Total Returns” represent the average annual change in value of an investment over the period indicated. “Cumulative Total Returns” represent the total change in value of an investment over the period indicated.
The Fund’s per share net asset value (“NAV”) is the value of one share of the Fund and is computed by dividing the value of all assets of the Fund (including accrued interest and dividends), less all liabilities (including accrued expenses and dividends declared
but unpaid), by the total number of outstanding shares. The price used to calculate market return (“Market Price”) is determined by using the midpoint of the national best bid and offer price (“NBBO”) as of the time that the Fund’s NAV is calculated. Under the Securities and Exchange Commission’s rules, the NBBO consists of the highest displayed buy and lowest sell prices among the various exchanges trading the Fund at the time the Fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after its inception, for the period from inception to the first day of secondary market trading in shares of the Fund,
the NAV of the Fund is used as a proxy for the secondary market trading price to calculate market returns. NAV and market returns assume
that all distributions have been reinvested in the Fund at NAV and Market Price, respectively.
An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the indices do not
actually hold a portfolio of securities and therefore do not incur the expenses incurred by the Fund. These expenses negatively impact the
performance of the Fund. Also, market returns do not include brokerage commissions that may be payable on secondary market
transactions. If brokerage commissions were included, market returns would be lower. The total returns presented reflect the
reinvestment of dividends on securities in the indices. The returns presented do not reflect the deduction of taxes that a
shareholder would pay on Fund distributions or the redemption or sale of Fund shares. The investment return and principal value of shares
of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when
they are redeemed or sold in the market. The Fund’s past performance is no guarantee of future performance.
Indxx and the Index are trademarks of Indxx, Inc. (“Indxx”) and have been licensed for use for certain purposes by First Trust. The Fund is not sponsored, endorsed, sold or promoted by Indxx, and Indxx makes no representation regarding the advisability of trading in such product. The Index is determined, composed and calculated by Indxx without regard to First Trust or the Fund.
Page 3
Fund Performance Overview (Unaudited) (Continued)
First Trust Indxx Medical Devices ETF (MDEV) (Continued)
|
Sector Allocation
|
% of Total
Long-Term
Investments
|
|
Health Care
|
100.0%
|
|
Total
|
100.0%
|
|
Top Ten Holdings
|
% of Total
Long-Term
Investments
|
|
STERIS PLC
|
2.7%
|
|
Koninklijke Philips N.V.
|
2.7
|
|
Intuitive Surgical, Inc.
|
2.5
|
|
Alcon, Inc.
|
2.5
|
|
Demant A/S
|
2.4
|
|
WuXi AppTec Co., Ltd., Class H
|
2.4
|
|
West Pharmaceutical Services, Inc.
|
2.4
|
|
Exact Sciences Corp.
|
2.4
|
|
Boston Scientific Corp.
|
2.4
|
|
Becton, Dickinson & Co.
|
2.3
|
|
Total
|
24.7%
|
 |
Performance figures assume reinvestment of
all distributions and do not reflect the
deduction of taxes that a shareholder would
pay on Fund distributions or the redemption
or sale of Fund shares. An index is a statistical
composite that tracks a specified financial
market or sector. Unlike the Fund, the indices
do not actually hold a portfolio of securities
and therefore do not incur the expenses
incurred by the Fund. These expenses
negatively impact the performance of the
Fund. The Fund’s past performance does not
predict future performance.
|
Frequency Distribution of Discounts and Premiums
Information showing the number of days the market price of the Fund’s shares was greater (at a premium) and less (at a discount) than the Fund’s net asset value for the most recently completed year, and the most recently completed calendar quarters since that year (or life of the Fund, if shorter) is available at https://www.ftportfolios.com/Retail/etf/home.aspx.
Page 4
First Trust Indxx Medical Devices ETF (MDEV)
Understanding Your Fund Expenses
September 30, 2023 (Unaudited)
Understanding Your Fund Expenses
September 30, 2023 (Unaudited)
As a shareholder of First Trust Indxx Medical Devices ETF (the “Fund”), you incur two types of costs: (1) transaction costs; and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, if any, and other Fund expenses. This
Example is intended to help you understand your ongoing costs (in U.S. dollars) of investing in the Fund and to compare these costs
with the ongoing costs of investing in other funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held through the six-month period
ended September 30, 2023.
Actual Expenses
The first line in the following table provides information about actual account values and actual expenses. You may use the
information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply
divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During the Six-Month Period” to estimate the expenses you paid on your account during this six-month period.
Hypothetical Example for Comparison Purposes
The second line in the following table provides information about hypothetical account values and hypothetical expenses based
on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid
for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare
this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional
costs such as brokerage commissions. Therefore, the second line in the table is useful in comparing ongoing costs only, and
will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included,
your costs would have been higher.
|
|
Beginning
Account Value
April 1, 2023
|
Ending
Account Value
September 30, 2023
|
Annualized
Expense Ratio
Based on the
Six-Month
Period
|
Expenses Paid
During the
Six-Month
Period (a)
|
|
First Trust Indxx Medical Devices ETF (MDEV)
|
||||
|
Actual
|
$1,000.00
|
$883.80
|
0.70%
|
$3.30
|
|
Hypothetical (5% return before expenses)
|
$1,000.00
|
$1,021.50
|
0.70%
|
$3.54
|
|
(a)
|
Expenses are equal to the annualized expense ratio as indicated in the table multiplied by the average account value over
the period
(April 1, 2023 through September 30, 2023), multiplied by 183/366 (to reflect the six-month period).
|
Page 5
First Trust Indxx Medical Devices ETF (MDEV)
Portfolio of Investments
September 30, 2023 (Unaudited)
Portfolio of Investments
September 30, 2023 (Unaudited)
|
Shares
|
Description
|
Value
|
|||
|
COMMON STOCKS (a) — 99.8%
|
|||||
|
|
Biotechnology — 2.4%
|
|
|||
|
625
|
Exact Sciences Corp. (b)
|
$42,637
|
|||
|
|
Health Care Equipment &
Supplies — 75.5%
|
|
|||
|
401
|
Abbott Laboratories
|
38,837
|
|||
|
579
|
Alcon, Inc. (CHF)
|
44,873
|
|||
|
122
|
Align Technology, Inc. (b)
|
37,249
|
|||
|
969
|
Baxter International, Inc.
|
36,570
|
|||
|
163
|
Becton, Dickinson & Co.
|
42,140
|
|||
|
391
|
BioMerieux (EUR)
|
37,957
|
|||
|
806
|
Boston Scientific Corp. (b)
|
42,557
|
|||
|
298
|
Carl Zeiss Meditec AG (EUR)
|
26,093
|
|||
|
250
|
Cochlear Ltd. (AUD)
|
41,040
|
|||
|
301
|
Coloplast A/S, Class B (DKK)
|
31,899
|
|||
|
112
|
Cooper (The) Cos., Inc.
|
35,617
|
|||
|
1,055
|
Demant A/S (DKK) (b)
|
43,759
|
|||
|
1,014
|
DENTSPLY SIRONA, Inc.
|
34,638
|
|||
|
361
|
Dexcom, Inc. (b)
|
33,681
|
|||
|
495
|
Edwards Lifesciences Corp. (b)
|
34,294
|
|||
|
2,537
|
Fisher & Paykel Healthcare
Corp., Ltd. (NZD)
|
32,814
|
|||
|
507
|
GE HealthCare Technologies,
Inc.
|
34,496
|
|||
|
496
|
Hologic, Inc. (b)
|
34,422
|
|||
|
394
|
Hoya Corp. (JPY)
|
40,405
|
|||
|
131
|
Insulet Corp. (b)
|
20,893
|
|||
|
156
|
Intuitive Surgical, Inc. (b)
|
45,597
|
|||
|
2,443
|
Koninklijke Philips N.V.
(EUR) (c)
|
48,987
|
|||
|
218
|
Masimo Corp. (b)
|
19,114
|
|||
|
517
|
Medtronic PLC
|
40,512
|
|||
|
2,240
|
Olympus Corp. (JPY)
|
29,102
|
|||
|
150
|
Penumbra, Inc. (b)
|
36,286
|
|||
|
186
|
ResMed, Inc.
|
27,504
|
|||
|
161
|
Shockwave Medical, Inc. (b)
|
32,055
|
|||
|
709
|
Siemens Healthineers AG
(EUR) (d) (e)
|
35,980
|
|||
|
2,772
|
Smith & Nephew PLC (GBP)
|
34,599
|
|||
|
134
|
Sonova Holding AG (CHF)
|
31,870
|
|||
|
224
|
STERIS PLC
|
49,150
|
|||
|
271
|
Straumann Holding AG (CHF)
|
34,698
|
|||
|
143
|
Stryker Corp.
|
39,078
|
|||
|
578
|
Sysmex Corp. (JPY)
|
27,589
|
|||
|
158
|
Teleflex, Inc.
|
31,033
|
|||
|
1,430
|
Terumo Corp. (JPY)
|
37,922
|
|||
|
315
|
Zimmer Biomet Holdings, Inc.
|
35,349
|
|||
|
|
|
1,360,659
|
|||
|
|
Health Care Providers &
Services — 1.9%
|
|
|||
|
1,159
|
Amplifon S.p.A. (EUR)
|
34,457
|
|||
|
Shares
|
Description
|
Value
|
|||
|
|
|||||
|
|
Life Sciences Tools & Services
— 20.0%
|
|
|||
|
300
|
Agilent Technologies, Inc.
|
$33,546
|
|||
|
87
|
Bio-Rad Laboratories, Inc.,
Class A (b)
|
31,185
|
|||
|
166
|
Danaher Corp.
|
41,185
|
|||
|
26
|
Mettler-Toledo International,
Inc. (b)
|
28,810
|
|||
|
304
|
Revvity, Inc.
|
33,653
|
|||
|
131
|
Sartorius Stedim Biotech (EUR)
|
31,301
|
|||
|
71
|
Thermo Fisher Scientific, Inc.
|
35,938
|
|||
|
136
|
Waters Corp. (b)
|
37,292
|
|||
|
115
|
West Pharmaceutical Services,
Inc.
|
43,149
|
|||
|
3,652
|
WuXi AppTec Co., Ltd., Class H
(HKD) (d) (e)
|
43,721
|
|||
|
|
|
359,780
|
|||
|
|
|||||
|
|
|||||
|
|
Total Investments — 99.8%
|
1,797,533
|
|||
|
|
(Cost $2,475,839)
|
|
|||
|
|
Net Other Assets and
Liabilities — 0.2%
|
4,499
|
|||
|
|
Net Assets — 100.0%
|
$1,802,032
|
|||
|
(a)
|
Securities are issued in U.S. dollars unless otherwise
indicated in the security description.
|
|
(b)
|
Non-income producing security.
|
|
(c)
|
Non-income producing security which makes payment-in-
kind (“PIK”) distributions. For the six months ended
September 30, 2023, the Fund received 104 PIK shares of
Koninklijke Philips N.V.
|
|
(d)
|
This security is exempt from registration upon resale under
Rule 144A of the Securities Act of 1933, as amended (the
“1933 Act”) and may be resold in transactions exempt from
registration, normally to qualified institutional buyers. This
security is not restricted on the foreign exchange where it
trades freely without any additional registration. As such, it
does not require the additional disclosure required of
restricted securities.
|
|
(e)
|
This security may be resold to qualified foreign investors and
foreign institutional buyers under Regulation S of the 1933
Act.
|
|
Abbreviations throughout the Portfolio of Investments:
|
|
|
AUD
|
– Australian Dollar
|
|
CHF
|
– Swiss Franc
|
|
DKK
|
– Danish Krone
|
|
EUR
|
– Euro
|
|
GBP
|
– British Pound Sterling
|
|
HKD
|
– Hong Kong Dollar
|
|
JPY
|
– Japanese Yen
|
|
NZD
|
– New Zealand Dollar
|
See Notes to Financial Statements
Page 6
First Trust Indxx Medical Devices ETF (MDEV)
Portfolio of Investments (Continued)
September 30, 2023 (Unaudited)
Portfolio of Investments (Continued)
September 30, 2023 (Unaudited)
|
Currency Exposure Diversification
|
% of Total
Investments
|
|
United States Dollar
|
61.7%
|
|
Euro
|
12.0
|
|
Japanese Yen
|
7.5
|
|
Swiss Franc
|
6.2
|
|
Danish Krone
|
4.2
|
|
Hong Kong Dollar
|
2.4
|
|
Australian Dollar
|
2.3
|
|
British Pound Sterling
|
1.9
|
|
New Zealand Dollar
|
1.8
|
|
Total
|
100.0%
|
Valuation Inputs
A summary of the inputs used to value the Fund’s investments as of September 30, 2023 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements):
|
|
Total
Value at
9/30/2023
|
Level 1
Quoted
Prices
|
Level 2
Significant
Observable
Inputs
|
Level 3
Significant
Unobservable
Inputs
|
|
Common Stocks*
|
$ 1,797,533
|
$ 1,797,533
|
$ —
|
$ —
|
|
*
|
See Portfolio of Investments for industry breakout.
|
See Notes to Financial Statements
Page 7
First Trust Indxx Medical Devices ETF (MDEV)
Statement of Assets and Liabilities
September 30, 2023 (Unaudited)
Statement of Assets and Liabilities
September 30, 2023 (Unaudited)
|
ASSETS:
|
|
|
Investments, at value
|
$1,797,533
|
|
Cash
|
3,506
|
|
Receivables:
|
|
|
Dividends
|
1,711
|
|
Reclaims
|
358
|
|
Total Assets
|
1,803,108
|
|
|
|
|
LIABILITIES:
|
|
|
Investment advisory fees payable
|
1,076
|
|
Total Liabilities
|
1,076
|
|
NET ASSETS
|
$1,802,032
|
|
|
|
|
NET ASSETS consist of:
|
|
|
Paid-in capital
|
$2,835,932
|
|
Par value
|
1,000
|
|
Accumulated distributable earnings (loss)
|
(1,034,900
)
|
|
NET ASSETS
|
$1,802,032
|
|
NET ASSET VALUE, per share
|
$18.02
|
|
Number of shares outstanding (unlimited number of shares authorized, par value $0.01 per share)
|
100,002
|
|
Investments, at cost
|
$2,475,839
|
See Notes to Financial Statements
Page 8
First Trust Indxx Medical Devices ETF (MDEV)
Statement of Operations
For the Six Months Ended September 30, 2023 (Unaudited)
Statement of Operations
For the Six Months Ended September 30, 2023 (Unaudited)
|
INVESTMENT INCOME:
|
|
|
Dividends
|
$7,182
|
|
Foreign withholding tax
|
(1,315
)
|
|
Total investment income
|
5,867
|
|
|
|
|
EXPENSES:
|
|
|
Investment advisory fees
|
7,062
|
|
Total expenses
|
7,062
|
|
NET INVESTMENT INCOME (LOSS)
|
(1,195
)
|
|
|
|
|
NET REALIZED AND UNREALIZED GAIN (LOSS):
|
|
|
Net realized gain (loss) on:
|
|
|
Investments
|
(161,540
)
|
|
Foreign currency transactions
|
(162
)
|
|
Net realized gain (loss)
|
(161,702
)
|
|
Net change in unrealized appreciation (depreciation) on:
|
|
|
Investments
|
(74,585
)
|
|
Foreign currency translation
|
39
|
|
Net change in unrealized appreciation (depreciation)
|
(74,546
)
|
|
NET REALIZED AND UNREALIZED GAIN (LOSS)
|
(236,248
)
|
|
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS
|
$(237,443
)
|
See Notes to Financial Statements
Page 9
First Trust Indxx Medical Devices ETF (MDEV)
Statements of Changes in Net Assets
Statements of Changes in Net Assets
|
|
Six Months
Ended
9/30/2023
(Unaudited)
|
Year
Ended
3/31/2023
|
|
OPERATIONS:
|
|
|
|
Net investment income (loss)
|
$(1,195
)
|
$729
|
|
Net realized gain (loss)
|
(161,702
)
|
(176,064
)
|
|
Net change in unrealized appreciation (depreciation)
|
(74,546
)
|
(27,568
)
|
|
Net increase (decrease) in net assets resulting from operations
|
(237,443
)
|
(202,903
)
|
|
|
||
|
SHAREHOLDER TRANSACTIONS:
|
|
|
|
Proceeds from shares sold
|
—
|
—
|
|
Cost of shares redeemed
|
—
|
—
|
|
Net increase (decrease) in net assets resulting from shareholder transactions
|
—
|
—
|
|
Total increase (decrease) in net assets
|
(237,443
)
|
(202,903
)
|
|
|
||
|
NET ASSETS:
|
|
|
|
Beginning of period
|
2,039,475
|
2,242,378
|
|
End of period
|
$1,802,032
|
$2,039,475
|
|
|
||
|
CHANGES IN SHARES OUTSTANDING:
|
|
|
|
Shares outstanding, beginning of period
|
100,002
|
100,002
|
|
Shares sold
|
—
|
—
|
|
Shares redeemed
|
—
|
—
|
|
Shares outstanding, end of period
|
100,002
|
100,002
|
See Notes to Financial Statements
Page 10
First Trust Indxx Medical Devices ETF (MDEV)
Financial Highlights
For a share outstanding throughout each period
Financial Highlights
For a share outstanding throughout each period
|
|
Six Months
Ended
9/30/2023
(Unaudited)
|
Year
Ended
3/31/2023
|
Period
Ended
3/31/2022 (a)
|
|
|
|||
|
Net asset value, beginning of period
|
$20.39
|
$22.42
|
$25.17
|
|
Income from investment operations:
|
|
|
|
|
Net investment income (loss)
|
(0.01
) (b)
|
0.01
|
(0.46
)
|
|
Net realized and unrealized gain (loss)
|
(2.36
)
|
(2.04
)
|
(2.29
)
|
|
Total from investment operations
|
(2.37
)
|
(2.03
)
|
(2.75
)
|
|
Net asset value, end of period
|
$18.02
|
$20.39
|
$22.42
|
|
Total return (c)
|
(11.62
)%
|
(9.05
)%
|
(10.93
)%
|
|
|
|||
|
Ratios to average net assets/supplemental data:
|
|
|
|
|
Net assets, end of period (in 000’s)
|
$1,802
|
$2,039
|
$2,242
|
|
Ratio of total expenses to average net assets
|
0.70
% (d)
|
0.70
%
|
0.70
% (d)
|
|
Ratio of net investment income (loss) to average net assets
|
(0.12
)% (d)
|
0.04
%
|
(0.36
)% (d)
|
|
Portfolio turnover rate (e)
|
13
%
|
22
%
|
13
%
|
|
(a)
|
Inception date is June 22, 2021, which is consistent with the commencement of investment operations and is the date the initial
creation units
were established.
|
|
(b)
|
Based on average shares outstanding.
|
|
(c)
|
Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment
of all
distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns
presented do not
reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
Total return is
calculated for the time period presented and is not annualized for periods of less than a year.
|
|
(d)
|
Annualized.
|
|
(e)
|
Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does
not include securities
received or delivered from processing creations or redemptions and in-kind transactions.
|
See Notes to Financial Statements
Page 11
Notes to Financial Statements
First Trust Indxx Medical Devices ETF (MDEV)
September 30, 2023 (Unaudited)
September 30, 2023 (Unaudited)
1. Organization
First Trust Exchange-Traded Fund VI (the “Trust”) is an open-end management investment company organized as a Massachusetts business trust on June 4, 2012, and is registered with the Securities and Exchange Commission under the Investment Company
Act of 1940, as amended (the “1940 Act”).
The Trust currently consists of thirty-two exchange-traded funds that are offering shares. This report covers the First Trust
Indxx Medical Devices ETF (the “Fund”), a non-diversified series of the Trust, which trades under the ticker “MDEV” on the CBOE BZX Exchange, Inc. Unlike conventional mutual funds, the Fund issues and redeems shares on a continuous basis, at net asset value
(“NAV”), only in large blocks of shares known as “Creation Units.”
The investment objective of the Fund seeks investment results that correspond generally to the price and yield (before the Fund’s fees and expenses) of an index called the Indxx Global Medical Equipment Index. Under normal market conditions, the Fund will invest
at least 80% of its net assets (plus any borrowings for investment purposes) in the securities that comprise the Index. There
can be no assurances that the Fund will achieve its investment objective. The Fund may not be appropriate for all investors.
2. Significant Accounting Policies
The Fund is considered an investment company and follows accounting and reporting guidance under Financial Accounting Standards
Board Accounting Standards Codification Topic 946, “Financial Services-Investment Companies.” The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of the financial statements. The preparation
of the financial statements in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements.
Actual results could differ from those estimates.
A. Portfolio Valuation
The Fund’s NAV is determined daily as of the close of regular trading on the New York Stock Exchange (“NYSE”), normally 4:00 p.m. Eastern time, on each day the NYSE is open for trading. If the NYSE closes early on a valuation day, the NAV is
determined as of that time. Foreign securities are priced using data reflecting the earlier closing of the principal markets
for those securities. The Fund’s NAV is calculated by dividing the value of all assets of the Fund (including accrued interest and dividends), less all liabilities (including accrued expenses and dividends declared but unpaid), by the total number of shares outstanding.
The Fund’s investments are valued daily at market value or, in the absence of market value with respect to any portfolio securities, at fair value. Market value prices represent readily available market quotations such as last sale or official closing prices
from a national or foreign exchange (i.e., a regulated market) and are primarily obtained from third-party pricing services. Fair value prices
represent any prices not considered market value prices and are either obtained from a third-party pricing service or are determined
by the Pricing Committee of the Fund’s investment advisor, First Trust Advisors L.P. (“First Trust” or the “Advisor”), in accordance with valuation procedures approved by the Trust’s Board of Trustees, and in accordance with provisions of the 1940 Act and rules thereunder. Investments valued by the Advisor’s Pricing Committee, if any, are footnoted as such in the footnotes to the Portfolio of Investments. The Fund’s investments are valued as follows:
Common stocks and other equity securities listed on any national or foreign exchange (excluding Nasdaq, Inc. (“Nasdaq”) and the London Stock Exchange Alternative Investment Market (“AIM”)) are valued at the last sale price on the exchange on which they are principally traded or, for Nasdaq and AIM securities, the official closing price. Securities traded on more than
one securities exchange are valued at the last sale price or official closing price, as applicable, at the close of the securities
exchange representing the primary exchange for such securities.
Securities trading on foreign exchanges or over-the-counter markets that close prior to the NYSE close may be valued using
a systematic fair valuation model provided by a third-party pricing service. If these foreign securities meet certain criteria
in relation to the valuation model, their valuation is systematically adjusted to reflect the impact of movement in the U.S.
market after the close of the foreign markets.
Equity securities traded in an over-the-counter market are valued at the close price or the last trade price.
Certain securities may not be able to be priced by pre-established pricing methods. Such securities may be valued by the Advisor’s Pricing Committee at fair value. These securities generally include, but are not limited to, restricted securities (securities
which may not be publicly sold without registration under the Securities Act of 1933, as amended) for which a third-party pricing service
is
Page 12
Notes to Financial Statements (Continued)
First Trust Indxx Medical Devices ETF (MDEV)
September 30, 2023 (Unaudited)
September 30, 2023 (Unaudited)
unable to provide a market price; securities whose trading has been formally suspended; a security whose market or fair value
price is not available from a pre-established pricing source; a security with respect to which an event has occurred that is likely
to materially affect the value of the security after the market has closed but before the calculation of the Fund’s NAV or make it difficult or impossible to obtain a reliable market quotation; and a security whose price, as provided by the third-party pricing service,
does not reflect the security’s fair value. As a general principle, the current fair value of a security would appear to be the amount which the owner might reasonably expect to receive for the security upon its current sale. When fair value prices are used, generally
they will differ from market quotations or official closing prices on the applicable exchanges. A variety of factors may be considered
in determining the fair value of such securities, including, but not limited to, the following:
1)
the last sale price on the exchange on which they are principally traded or, for Nasdaq and AIM securities, the official closing price;
2)
the type of security;
3)
the size of the holding;
4)
the initial cost of the security;
5)
transactions in comparable securities;
6)
price quotes from dealers and/or third-party pricing services;
7)
relationships among various securities;
8)
information obtained by contacting the issuer, analysts, or the appropriate stock exchange;
9)
an analysis of the issuer’s financial statements;
10)
the existence of merger proposals or tender offers that might affect the value of the security; and
11)
other relevant factors.
If the securities in question are foreign securities, the following additional information may be considered:
1)
the value of similar foreign securities traded on other foreign markets;
2)
ADR trading of similar securities;
3)
closed-end fund or exchange-traded fund trading of similar securities;
4)
foreign currency exchange activity;
5)
the trading prices of financial products that are tied to baskets of foreign securities;
6)
factors relating to the event that precipitated the pricing problem;
7)
whether the event is likely to recur;
8)
whether the effects of the event are isolated or whether they affect entire markets, countries or regions; and
9)
other relevant factors.
In addition, differences between the prices used to calculate a Fund’s NAV and the prices used by such Fund’s corresponding index could result in a difference between a Fund’s performance and the performance of its underlying index.
Because foreign markets may be open on different days than the days during which investors may transact in the shares of the
Fund, the value of the Fund’s securities may change on the days when investors are not able to transact in the shares of the Fund. The value of the securities denominated in foreign currencies is converted into U.S. dollars using exchange rates determined daily as
of the close of regular trading on the NYSE. Any use of a different rate from the rates used by a relevant index may adversely affect the Fund’s ability to track the index.
The Fund is subject to fair value accounting standards that define fair value, establish the framework for measuring fair
value and provide a three-level hierarchy for fair valuation based upon the inputs to the valuation as of the measurement date. The
three levels of the fair value hierarchy are as follows:
• Level 1 – Level 1 inputs are quoted prices in active markets for identical investments. An active market is a market in which transactions for the investment occur with sufficient frequency and volume to provide pricing information on an ongoing basis.
• Level 2 – Level 2 inputs are observable inputs, either directly or indirectly, and include the following:
o Quoted prices for similar investments in active markets.
o Quoted prices for identical or similar investments in markets that are non-active. A non-active market is a market where there are few transactions for the investment, the prices are not current, or price quotations vary substantially either over
time or among market makers, or in which little information is released publicly.
Page 13
Notes to Financial Statements (Continued)
First Trust Indxx Medical Devices ETF (MDEV)
September 30, 2023 (Unaudited)
September 30, 2023 (Unaudited)
o Inputs other than quoted prices that are observable for the investment (for example, interest rates and yield curves observable at commonly quoted intervals, volatilities, prepayment speeds, loss severities, credit risks, and default rates).
o Inputs that are derived principally from or corroborated by observable market data by correlation or other means.
• Level 3 – Level 3 inputs are unobservable inputs. Unobservable inputs may reflect the reporting entity’s own assumptions about the assumptions that market participants would use in pricing the investment.
The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing
in those investments. A summary of the inputs used to value the Fund’s investments as of September 30, 2023, is included with the Fund’s Portfolio of Investments.
B. Securities Transactions and Investment Income
Securities transactions are recorded as of the trade date. Realized gains and losses from securities transactions are recorded
on the identified cost basis. Dividend income is recorded on the ex-dividend date. Interest income, if any, is recorded on the accrual
basis.
Withholding taxes and tax reclaims on foreign dividends have been provided for in accordance with the Fund’s understanding of the applicable country’s tax rules and rates.
C. Foreign Currency
The books and records of the Fund are maintained in U.S. dollars. Foreign currencies, investments and other assets and liabilities
are translated into U.S. dollars at the exchange rates prevailing at the end of the period. Purchases and sales of investments
and items of income and expense are translated on the respective dates of such transactions. Unrealized gains and losses on assets and
liabilities, other than investments in securities, which result from changes in foreign currency exchange rates have been included in “Net change in unrealized appreciation (depreciation) on foreign currency translation” on the Statement of Operations. Unrealized gains and losses on investments in securities which result from changes in foreign exchange rates are included with fluctuations arising from
changes in market price and are shown in “Net change in unrealized appreciation (depreciation) on investments” on the Statement of Operations. Net realized foreign currency gains and losses include the effect of changes in exchange rates between trade date
and settlement date on investment security transactions, foreign currency transactions and interest and dividends received and
is included in “Net realized gain (loss) on foreign currency transactions” on the Statement of Operations. The portion of foreign currency gains and losses related to fluctuations in exchange rates between the initial purchase settlement date and subsequent sale trade
date is included in “Net realized gain (loss) on investments” on the Statement of Operations.
D. Dividends and Distributions to Shareholders
Dividends from net investment income of the Fund, if any, are declared and paid quarterly, or as the Board of Trustees may
determine from time to time. Distributions of net realized gains earned by the Fund, if any, are distributed at least annually. The
Fund may also designate a portion of the amount paid to redeeming shareholders as a distribution for tax purposes.
Distributions from net investment income and realized capital gains are determined in accordance with federal income tax regulations,
which may differ from U.S. GAAP. Certain capital accounts in the financial statements are periodically adjusted for permanent
differences in order to reflect their tax character. These permanent differences are primarily due to the varying treatment
of income and gain/loss on portfolio securities held by the Fund and have no impact on net assets or NAV per share. Temporary differences,
which arise from recognizing certain items of income, expense and gain/loss in different periods for financial statement and
tax purposes, will reverse at some time in the future.
There were no distributions paid during the fiscal year ended March 31, 2023.
As of March 31, 2023, the components of distributable earnings on a tax basis for the Fund were as follows:
|
Undistributed ordinary income
|
$—
|
|
Accumulated capital and other gain (loss)
|
(186,936
)
|
|
Net unrealized appreciation (depreciation)
|
(610,521
)
|
E. Income Taxes
The Fund intends to continue to qualify as a regulated investment company by complying with the requirements under Subchapter
M of the Internal Revenue Code of 1986, as amended, which includes distributing substantially all of its net investment income
and net
Page 14
Notes to Financial Statements (Continued)
First Trust Indxx Medical Devices ETF (MDEV)
September 30, 2023 (Unaudited)
September 30, 2023 (Unaudited)
realized gains to shareholders. Accordingly, no provision has been made for federal and state income taxes. However, due to
the timing and amount of distributions, the Fund may be subject to an excise tax of 4% of the amount by which approximately 98%
of the Fund’s taxable income exceeds the distributions from such taxable income for the calendar year.
The Fund is subject to accounting standards that establish a minimum threshold for recognizing, and a system for measuring,
the benefits of a tax position taken or expected to be taken in a tax return. The taxable years ended 2022 and 2023 remain open
to federal and state audit. As of September 30, 2023, management has evaluated the application of these standards to the Fund and has
determined that no provision for income tax is required in the Fund’s financial statements for uncertain tax positions.
The Fund intends to utilize provisions of the federal income tax laws, which allow it to carry a realized capital loss forward
indefinitely following the year of the loss and offset such loss against any future realized capital gains. The Fund is subject
to certain limitations under U.S. tax rules on the use of capital loss carryforwards and net unrealized built-in losses. These limitations
apply when there has been a 50% change in ownership. At March 31, 2023, for federal income tax purposes, the Fund had $186,936 of
capital loss carryforwards available, to the extent provided by regulations, to offset future capital gains. To the extent
that these loss carryforwards are used to offset future capital gains, it is probable that the capital gains so offset will not be distributed to the Fund’s shareholders.
As of September 30, 2023, the aggregate cost, gross unrealized appreciation, gross unrealized depreciation, and net unrealized
appreciation/(depreciation) on investments (including short positions and derivatives, if any) for federal income tax purposes
were as follows:
|
Tax Cost
|
Gross
Unrealized
Appreciation
|
Gross
Unrealized
(Depreciation)
|
Net Unrealized
Appreciation
(Depreciation)
|
|
$2,475,839
|
$22,174
|
$(700,480
)
|
$(678,306
)
|
F. Expenses
Expenses, other than the investment advisory fee and other excluded expenses, are paid by the Advisor (see Note 3).
First Trust has entered into a license agreement with Indxx, Inc. (the “Licensor”), for the Fund. The license agreement allows for the use by First Trust of the Fund’s index and of certain trademarks and trade names of the Licensor. The Fund is a sub-licensee to the applicable agreement.
3. Investment Advisory Fee, Affiliated Transactions and Other Fee Arrangements
First Trust, the investment advisor to the Fund, is a limited partnership with one limited partner, Grace Partners of DuPage
L.P., and one general partner, The Charger Corporation. The Charger Corporation is an Illinois corporation controlled by James A. Bowen,
Chief Executive Officer of First Trust. First Trust is responsible for the selection and ongoing monitoring of the securities
in the Fund’s portfolio, managing the Fund’s business affairs and providing certain administrative services necessary for the management of the Fund.
Pursuant to the Investment Management Agreement between the Trust, on behalf of the Fund, and the Advisor, First Trust manages
the investment of the Fund’s assets and is responsible for the Fund’s expenses, including the cost of transfer agency, custody, fund administration, licensing fees, legal, audit and other services, but excluding fee payments under the Investment Management
Agreement, interest, taxes, brokerage commissions and other expenses connected with the execution of portfolio transactions,
distribution and service fees pursuant to a Rule 12b-1 plan, if any, expenses attributable to investments in other investment
companies (“acquired fund fees and expenses”), expenses associated with short sales transactions and extraordinary expenses. Prior to June 12, 2023, First Trust also provided fund reporting services to the Fund for a flat annual fee in the amount of $9,250, which was covered
under the annual unitary management fee. The annual unitary management fee payable by the Fund to First Trust for these services
will be reduced at certain levels of the Fund’s net assets (“breakpoints”) and calculated pursuant to the following schedule:
Page 15
Notes to Financial Statements (Continued)
First Trust Indxx Medical Devices ETF (MDEV)
September 30, 2023 (Unaudited)
September 30, 2023 (Unaudited)
|
Breakpoints
|
|
|
Fund net assets up to and including $2.5 billion
|
0.7000
%
|
|
Fund net assets greater than $2.5 billion up to and including $5 billion
|
0.6825
%
|
|
Fund net assets greater than $5 billion up to and including $7.5 billion
|
0.6650
%
|
|
Fund net assets greater than $7.5 billion up to and including $10 billion
|
0.6475
%
|
|
Fund net assets greater than $10 billion
|
0.6300
%
|
Effective June 12, 2023, the Trust has multiple service agreements with The Bank of New York Mellon (“BNYM”). Under the service agreements, BNYM performs custodial, fund accounting, certain administrative services, and transfer agency services for the
Fund. As custodian, BNYM is responsible for custody of the Fund’s assets. As fund accountant and administrator, BNYM is responsible for maintaining the books and records of the Fund’s securities and cash. As transfer agent, BNYM is responsible for maintaining shareholder records for the Fund. BNYM is a subsidiary of The Bank of New York Mellon Corporation, a financial holding company.
Prior to June 12, 2023, the Trust had multiple service agreements with Brown Brothers Harriman & Co. (“BBH”). Under the service agreements, BBH performed custodial, fund accounting, certain administrative services, and transfer agency services for the
Fund. As custodian, BBH was responsible for custody of the Fund’s assets. As fund accountant and administrator, BBH was responsible for maintaining the books and records of the Fund’s securities and cash. As transfer agent, BBH was responsible for maintaining shareholder records for each Fund.
Each Trustee who is not an officer or employee of First Trust, any sub-advisor or any of their affiliates (“Independent Trustees”) is paid a fixed annual retainer that is allocated equally among each fund in the First Trust Fund Complex. Each Independent Trustee
is also paid an annual per fund fee that varies based on whether the fund is a closed-end or other actively managed fund, a target
outcome fund or an index fund.
Additionally, the Lead Independent Trustee and the Chairs of the Audit Committee, Nominating and Governance Committee and
Valuation Committee are paid annual fees to serve in such capacities, with such compensation allocated pro rata among each
fund in the First Trust Fund Complex based on net assets. Independent Trustees are reimbursed for travel and out-of-pocket expenses
in connection with all meetings. The Lead Independent Trustee and Committee Chairs rotate every three years. The officers and
“Interested” Trustee receive no compensation from the Trust for acting in such capacities.
4. Purchases and Sales of Securities
For the six months ended September 30, 2023, the cost of purchases and proceeds from sales of investments, excluding short-term
investments and in-kind transactions, were $251,350 and $250,747, respectively.
For the six months ended September 30, 2023, the Fund had no in-kind transactions.
5. Creations, Redemptions and Transaction Fees
The Fund generally issues and redeems its shares in primary market transactions through a creation and redemption mechanism
and does not sell or redeem individual shares. Instead, financial entities known as “Authorized Participants” have contractual arrangements with the Fund or one of the Fund’s service providers to purchase and redeem Fund shares directly with the Fund in large blocks of shares known as “Creation Units.” Prior to the start of trading on every business day, the Fund publishes through the National Securities Clearing Corporation the “basket” of securities, cash or other assets that it will accept in exchange for a Creation Unit of the Fund’s shares. An Authorized Participant that wishes to effectuate a creation of the Fund’s shares deposits with the Fund the “basket” of securities, cash or other assets identified by the Fund that day, and then receives the Creation Unit of the Fund’s shares in return for those assets. After purchasing a Creation Unit, the Authorized Participant may continue to hold the Fund’s shares or sell them in the secondary market. The redemption process is the reverse of the purchase process:the Authorized Participant redeems a Creation Unit of the Fund’s shares for a basket of securities, cash or other assets. The combination of the creation and redemption process with secondary market trading in the Fund’s shares and underlying securities provides arbitrage opportunities that are designed to help keep the market price of the Fund’s shares at or close to the NAV per share of the Fund.
The Fund imposes fees in connection with the purchase of Creation Units. These fees may vary based upon various fact-based
circumstances, including, but not limited to, the composition of the securities included in the Creation Unit or the countries
in which the transactions are settled. The price for each Creation Unit will equal the daily NAV per share of the Fund times the number
of
Page 16
Notes to Financial Statements (Continued)
First Trust Indxx Medical Devices ETF (MDEV)
September 30, 2023 (Unaudited)
September 30, 2023 (Unaudited)
shares in a Creation Unit, plus the fees described above and, if applicable, any operational processing and brokerage costs,
transfer fees, stamp taxes and part or all of the spread between the expected bid and offer side of the market related to the securities
comprising the creation basket.
The Fund also imposes fees in connection with the redemption of Creation Units. These fees may vary based upon various fact-based
circumstances, including, but not limited to, the composition of the securities included in the Creation Unit or the countries
in which the transactions are settled. The price received for each Creation Unit will equal the daily NAV per share of the Fund times
the number of shares in a Creation Unit, minus the fees described above and, if applicable, any operational processing and brokerage
costs, transfer fees, stamp taxes and part or all of the spread between the expected bid and offer side of the market related to
the securities comprising the redemption basket. Investors who use the services of a broker or other such intermediary in addition to an
Authorized Participant to effect a redemption of a Creation Unit may also be assessed an amount to cover the cost of such services. The
redemption fee charged by the Fund will comply with Rule 22c-2 of the 1940 Act which limits redemption fees to no more than
2% of the value of the shares redeemed.
6. Distribution Plan
The Board of Trustees adopted a Distribution and Service Plan pursuant to Rule 12b-1 under the 1940 Act. In accordance with
the Rule 12b-1 plan, the Fund is authorized to pay an amount up to 0.25% of its average daily net assets each year to reimburse
First Trust Portfolios L.P. (“FTP”), the distributor of the Fund, for amounts expended to finance activities primarily intended to result in the sale of Creation Units or the provision of investor services. FTP may also use this amount to compensate securities dealers or
other persons that are Authorized Participants for providing distribution assistance, including broker-dealer and shareholder support and
educational and promotional services.
No 12b-1 fees are currently paid by the Fund, and pursuant to a contractual arrangement, no 12b-1 fees will be paid any time
before July 31, 2024.
7. Indemnification
The Trust, on behalf of the Fund, has a variety of indemnification obligations under contracts with its service providers. The Trust’s maximum exposure under these arrangements is unknown. However, the Trust has not had prior claims or losses pursuant to these
contracts and expects the risk of loss to be remote.
8. Subsequent Events
Management has evaluated the impact of all subsequent events on the Fund through the date the financial statements were issued
and has determined that there were no subsequent events requiring recognition or disclosure in the financial statements that have
not already been disclosed.
Page 17
Additional Information
First Trust Indxx Medical Devices ETF (MDEV)
September 30, 2023 (Unaudited)
September 30, 2023 (Unaudited)
Proxy Voting Policies and Procedures
A description of the policies and procedures that the Trust uses to determine how to vote proxies and information on how the
Fund voted proxies relating to its portfolio securities during the most recent 12-month period ended June 30 is available (1) without
charge, upon request, by calling (800) 988-5891; (2) on the Fund’s website at www.ftportfolios.com; and (3) on the Securities and Exchange Commission’s (“SEC”) website at www.sec.gov.
Portfolio Holdings
The Fund files portfolio holdings information for each month in a fiscal quarter within 60 days after the end of the relevant
fiscal quarter on Form N-PORT. Portfolio holdings information for the third month of each fiscal quarter will be publicly available
on the SEC’s website at www.sec.gov. The Fund’s complete schedule of portfolio holdings for the second and fourth quarters of each fiscal year is included in the semi-annual and annual reports to shareholders, respectively, and is filed with the SEC on Form N-CSR.
The semi-annual and annual report for the Fund is available to investors within 60 days after the period to which it relates. The Fund’s Forms N-PORT and Forms N-CSR are available on the SEC’s website listed above.
Risk Considerations
Risks are inherent in all investing. Certain general risks that may be applicable to a Fund are identified below, but not
all of the material risks relevant to each Fund are included in this report and not all of the risks below apply to each Fund. The
material risks of investing in each Fund are spelled out in its prospectus, statement of additional information and other
regulatory filings. Before investing, you should consider each Fund’s investment objective, risks, charges and expenses, and read each Fund’s prospectus and statement of additional information carefully. You can download each Fund’s prospectus at www.ftportfolios.com or contact First Trust Portfolios L.P. at (800) 621-1675 to request a prospectus, which contains this and other information about each Fund.
Concentration Risk. To the extent that a fund is able to invest a significant percentage of its assets in a single asset class or the securities of issuers within the same country, state, region, industry or sector, an adverse economic, business or political
development may affect the value of the fund’s investments more than if the fund were more broadly diversified. A fund that tracks an index will be concentrated to the extent the fund’s corresponding index is concentrated. A concentration makes a fund more susceptible to any single occurrence and may subject the fund to greater market risk than a fund that is more broadly diversified.
Credit Risk. Credit risk is the risk that an issuer of a security will be unable or unwilling to make dividend, interest and/or principal
payments when due and the related risk that the value of a security may decline because of concerns about the issuer’s ability to make such payments.
Cyber Security Risk. The funds are susceptible to potential operational risks through breaches in cyber security. A breach in cyber security refers to both intentional and unintentional events that may cause a fund to lose proprietary information, suffer
data corruption or lose operational capacity. Such events could cause a fund to incur regulatory penalties, reputational damage, additional
compliance costs associated with corrective measures and/or financial loss. In addition, cyber security breaches of a fund’s third-party service providers, such as its administrator, transfer agent, custodian, or sub-advisor, as applicable, or issuers in which the fund
invests, can also subject a fund to many of the same risks associated with direct cyber security breaches.
Defined Outcome Funds Risk. To the extent a fund’s investment strategy is designed to deliver returns tied to the price performance of an underlying ETF, an investor may not realize the returns the fund seeks to achieve if that investor does not hold shares
for the entire target outcome period. In the event an investor purchases shares after the first day of the target outcome period or
sells shares prior to the end of the target outcome period, the buffer that the fund seeks to provide against a decline in the value of
the underlying ETF may not be available, the enhanced returns that the fund seeks to provide (if any) may not be available and the investor
may not participate in a gain in the value of the underlying ETF up to the cap for the investor’s investment period. Additionally, the fund will not participate in gains of the underlying ETF above the cap and a shareholder may lose their entire investment. If the fund
seeks enhanced returns, there are certain time periods when the value of the fund may fall faster than the value of the underlying
ETF, and it is very unlikely that, on any given day during which the underlying ETF share price increases in value, the fund’s share price will increase at the same rate as the enhanced returns sought by the fund, which is designed for an entire target outcome period.
Trading flexible exchange options involves risks different from, or possibly greater than, the risks associated with investing directly
in securities, such as less liquidity and correlation and valuation risks. A fund may experience substantial downside from specific
flexible exchange option positions and certain positions may expire worthless.
Page 18
Additional Information (Continued)
First Trust Indxx Medical Devices ETF (MDEV)
September 30, 2023 (Unaudited)
September 30, 2023 (Unaudited)
Derivatives Risk. To the extent a fund uses derivative instruments such as futures contracts, options contracts and swaps, the fund may experience losses because of adverse movements in the price or value of the underlying asset, index or rate, which may
be magnified by certain features of the derivative. These risks are heightened when a fund’s portfolio managers use derivatives to enhance the fund’s return or as a substitute for a position or security, rather than solely to hedge (or offset) the risk of a position or security held by the fund.
Equity Securities Risk. To the extent a fund invests in equity securities, the value of the fund’s shares will fluctuate with changes in the value of the equity securities. Equity securities prices fluctuate for several reasons, including changes in investors’ perceptions of the financial condition of an issuer or the general condition of the relevant stock market, such as market volatility, or
when political or economic events affecting the issuers occur. In addition, common stock prices may be particularly sensitive to rising interest
rates, as the cost of capital rises and borrowing costs increase. Equity securities may decline significantly in price over short or
extended periods of time, and such declines may occur in the equity market as a whole, or they may occur in only a particular country,
company, industry or sector of the market.
ETF Risk. The shares of an ETF trade like common stock and represent an interest in a portfolio of securities. The risks of owning
an ETF generally reflect the risks of owning the underlying securities, although lack of liquidity in an ETF could result in
it being more volatile and ETFs have management fees that increase their costs. Shares of an ETF trade on an exchange at market prices rather
than net asset value, which may cause the shares to trade at a price greater than net asset value (premium) or less than net asset
value (discount). In times of market stress, decisions by market makers to reduce or step away from their role of providing a market
for an ETF’s shares, or decisions by an ETF’s authorized participants that they are unable or unwilling to proceed with creation and/or redemption orders of an ETF’s shares, could result in shares of the ETF trading at a discount to net asset value and in greater than normal intraday bid-ask spreads.
Fixed Income Securities Risk. To the extent a fund invests in fixed income securities, the fund will be subject to credit risk, income risk, interest rate risk, liquidity risk and prepayment risk. Income risk is the risk that income from a fund’s fixed income investments could decline during periods of falling interest rates. Interest rate risk is the risk that the value of a fund’s fixed income securities will decline because of rising interest rates. Liquidity risk is the risk that a security cannot be purchased or sold at the time
desired, or cannot be purchased or sold without adversely affecting the price. Prepayment risk is the risk that the securities will be
redeemed or prepaid by the issuer, resulting in lower interest payments received by the fund. In addition to these risks, high yield securities,
or “junk” bonds, are subject to greater market fluctuations and risk of loss than securities with higher ratings, and the market for high yield securities is generally smaller and less liquid than that for investment grade securities.
Index or Model Constituent Risk. Certain funds may be a constituent of one or more indices or ETF models. As a result, such a fund may be included in one or more index-tracking exchange-traded funds or mutual funds. Being a component security of such a
vehicle could greatly affect the trading activity involving a fund, the size of the fund and the market volatility of the fund. Inclusion
in an index could increase demand for the fund and removal from an index could result in outsized selling activity in a relatively
short period of time. As a result, a fund’s net asset value could be negatively impacted and the fund’s market price may be significantly below its net asset value during certain periods. In addition, index rebalances may potentially result in increased trading
activity in a fund’s shares.
Index Provider Risk. To the extent a fund seeks to track an index, it is subject to Index Provider Risk. There is no assurance that the Index Provider will compile the Index accurately, or that the Index will be determined, maintained, constructed, reconstituted,
rebalanced, composed, calculated or disseminated accurately. To correct any such error, the Index Provider may carry out an
unscheduled rebalance or other modification of the Index constituents or weightings, which may increase the fund’s costs. The Index Provider does not provide any representation or warranty in relation to the quality, accuracy or completeness of data in the
Index, and it does not guarantee that the Index will be calculated in accordance with its stated methodology. Losses or costs associated
with any Index Provider errors generally will be borne by the fund and its shareholders.
Investment Companies Risk. To the extent a fund invests in the securities of other investment vehicles, the fund will incur additional fees and expenses that would not be present in a direct investment in those investment vehicles. Furthermore, the fund’s investment performance and risks are directly related to the investment performance and risks of the investment vehicles in which the
fund invests.
LIBOR Risk. To the extent a fund invests in floating or variable rate obligations that use the London Interbank Offered Rate (“LIBOR”) as a reference interest rate, it is subject to LIBOR Risk. The United Kingdom’s Financial Conduct Authority, which regulates LIBOR, has ceased making LIBOR available as a reference rate over a phase-out period that began December 31, 2021.
Page 19
Additional Information (Continued)
First Trust Indxx Medical Devices ETF (MDEV)
September 30, 2023 (Unaudited)
September 30, 2023 (Unaudited)
There is no assurance that any alternative reference rate, including the Secured Overnight Financing Rate (“SOFR”) will be similar to or produce the same value or economic equivalence as LIBOR or that instruments using an alternative rate will have the same
volume or liquidity. The unavailability or replacement of LIBOR may affect the value, liquidity or return on certain fund investments
and may result in costs incurred in connection with closing out positions and entering into new trades. Any potential effects of the
transition away from LIBOR on the fund or on certain instruments in which the fund invests can be difficult to ascertain, and they may
vary depending on a variety of factors, and they could result in losses to the fund.
Management Risk. To the extent that a fund is actively managed, it is subject to management risk. In managing an actively-managed fund’s investment portfolio, the fund’s portfolio managers will apply investment techniques and risk analyses that may not have the desired result. There can be no guarantee that a fund will meet its investment objective.
Market Risk. Market risk is the risk that a particular security, or shares of a fund in general, may fall in value. Securities held by
a fund, as well as shares of a fund itself, are subject to market fluctuations caused by factors such as general economic conditions,
political events, regulatory or market developments, changes in interest rates and perceived trends in securities prices.
Shares of a fund could decline in value or underperform other investments as a result of the risk of loss associated with these market fluctuations.
In addition, local, regional or global events such as war, acts of terrorism, spread of infectious diseases or other public health
issues, recessions, or other events could have a significant negative impact on a fund and its investments. Such events may affect
certain geographic regions, countries, sectors and industries more significantly than others. In February 2022, Russia invaded Ukraine
which has caused and could continue to cause significant market disruptions and volatility within the markets in Russia, Europe,
and the United States. The hostilities and sanctions resulting from those hostilities could have a significant impact on certain fund
investments as well as fund performance. The COVID-19 global pandemic and the ensuing policies enacted by governments and central banks
have caused and may continue to cause significant volatility and uncertainty in global financial markets. While the U.S. has
resumed “reasonably” normal business activity, many countries continue to impose lockdown measures. Additionally, there is no guarantee that vaccines will be effective against emerging variants of the disease. These events also adversely affect the prices and liquidity
of a fund’s portfolio securities or other instruments and could result in disruptions in the trading markets. Any of such circumstances could have a materially negative impact on the value of a fund’s shares and result in increased market volatility. During any such events, a fund’s shares may trade at increased premiums or discounts to their net asset value and the bid/ask spread on a fund’s shares may widen.
Non-U.S. Securities Risk. To the extent a fund invests in non-U.S. securities, it is subject to additional risks not associated with securities of domestic issuers. Non-U.S. securities are subject to higher volatility than securities of domestic issuers due
to:possible adverse political, social or economic developments; restrictions on foreign investment or exchange of securities; capital
controls; lack of liquidity; currency exchange rates; excessive taxation; government seizure of assets; the imposition of sanctions by foreign
governments; different legal or accounting standards; and less government supervision and regulation of exchanges in foreign
countries. Investments in non-U.S. securities may involve higher costs than investments in U.S. securities, including higher
transaction and custody costs, as well as additional taxes imposed by non-U.S. governments. These risks may be heightened for securities
of companies located, or with significant operations, in emerging market countries.
Operational Risk. Each fund is subject to risks arising from various operational factors, including, but not limited to, human error, processing and communication errors, errors of a fund’s service providers, counterparties or other third-parties, failed or inadequate processes and technology or systems failures. Each fund relies on third-parties for a range of services, including custody.
Any delay or failure relating to engaging or maintaining such service providers may affect a fund’s ability to meet its investment objective. Although the funds and the funds’ investment advisor seek to reduce these operational risks through controls and procedures, there is no way to completely protect against such risks.
Passive Investment Risk. To the extent a fund seeks to track an index, the fund will invest in the securities included in, or representative of, the index regardless of their investment merit. A fund generally will not attempt to take defensive positions
in declining markets.
Preferred Securities Risk. Preferred securities combine some of the characteristics of both common stocks and bonds. Preferred securities are typically subordinated to bonds and other debt securities in a company’s capital structure in terms of priority to corporate income, subjecting them to greater credit risk than those debt securities. Generally, holders of preferred securities have
no voting rights with respect to the issuing company unless preferred dividends have been in arrears for a specified number of periods,
at which time the preferred security holders may obtain limited rights. In certain circumstances, an issuer of preferred securities
may defer
Page 20
Additional Information (Continued)
First Trust Indxx Medical Devices ETF (MDEV)
September 30, 2023 (Unaudited)
September 30, 2023 (Unaudited)
payment on the securities and, in some cases, redeem the securities prior to a specified date. Preferred securities may also
be substantially less liquid than other securities, including common stock.
Valuation Risk. The valuation of certain securities may carry more risk than that of common stock. Uncertainties in the conditions of the financial markets, unreliable reference data, lack of transparency and inconsistency of valuation models and processes
may lead to inaccurate asset pricing. A fund may hold investments in sizes smaller than institutionally sized round lot positions (sometimes
referred to as odd lots). However, third-party pricing services generally provide evaluations on the basis of institutionally-sized
round lots. If a fund sells certain of its investments in an odd lot transaction, the sale price may be less than the value at which
such securities have been held by the fund. Odd lots often trade at lower prices than institutional round lots. There is no assurance that
the fund will be able to sell a portfolio security at the price established by the pricing service, which could result in a loss to the
fund.
NOT FDIC INSURED NOT BANK GUARANTEED MAY LOSE VALUE
Advisory Agreement
Board Considerations Regarding Approval of the Continuation of the Investment Management Agreement
The Board of Trustees of First Trust Exchange-Traded Fund VI (the “Trust”), including the Independent Trustees, unanimously approved the continuation of the Investment Management Agreement (the “Agreement”) with First Trust Advisors L.P. (the “Advisor”) on behalf of the First Trust Indxx Medical Devices ETF (the “Fund”). The Board approved the continuation of the Agreement for a one-year period ending June 30, 2024 at a meeting held on June 4–5, 2023. The Board determined that the continuation of the Agreement is in the best interests of the Fund in light of the nature, extent and quality of the services
provided and such other matters as the Board considered to be relevant in the exercise of its business judgment.
To reach this determination, the Board considered its duties under the Investment Company Act of 1940, as amended (the “1940 Act”), as well as under the general principles of state law, in reviewing and approving advisory contracts; the requirements of the 1940 Act in such matters; the fiduciary duty of investment advisors with respect to advisory agreements and compensation; the standards
used by courts in determining whether investment company boards have fulfilled their duties; and the factors to be considered
by the Board in voting on such agreements. At meetings held on April 17, 2023 and June 4–5, 2023, the Board, including the Independent Trustees, reviewed materials provided by the Advisor responding to requests for information from counsel to the Independent
Trustees, submitted on behalf of the Independent Trustees, that, among other things, outlined: the services provided by the
Advisor to the Fund (including the relevant personnel responsible for these services and their experience); the unitary fee rate schedule
payable by the Fund as compared to fees charged to a peer group of funds (the “Expense Group”) and a broad peer universe of funds (the “Expense Universe”), each assembled by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent source, and as compared to fees charged to other clients of the Advisor, including other exchange-traded funds (“ETFs”) managed by the Advisor; the expense ratio of the Fund as compared to expense ratios of the funds in the Fund’s Expense Group and Expense Universe; performance information for the Fund, including comparisons of the Fund’s performance to that of one or more relevant benchmark indexes and to that of a performance group of funds and a broad performance universe of funds (the “Performance Universe”), each assembled by Broadridge; the nature of expenses incurred in providing services to the Fund and the potential for the Advisor
to realize economies of scale, if any; profitability and other financial data for the Advisor; any indirect benefits to the Advisor and
its affiliate, First Trust Portfolios L.P. (“FTP”); and information on the Advisor’s compliance program. The Board reviewed initial materials with the Advisor at the meeting held on April 17, 2023, prior to which the Independent Trustees and their counsel met separately
to discuss the information provided by the Advisor. Following the April meeting, counsel to the Independent Trustees, on behalf of the
Independent Trustees, requested certain clarifications and supplements to the materials provided, and the information provided
in response to those requests was considered at an executive session of the Independent Trustees and their counsel held prior
to the June 4–5, 2023 meeting, as well as at the June meeting. The Board applied its business judgment to determine whether the arrangement between the Trust and the Advisor continues to be a reasonable business arrangement from the Fund’s perspective. The Board determined that, given the totality of the information provided with respect to the Agreement, the Board had received sufficient
information to renew the Agreement. The Board considered that shareholders chose to invest or remain invested in the Fund
knowing that the Advisor manages the Fund and knowing the Fund’s unitary fee.
In reviewing the Agreement, the Board considered the nature, extent and quality of the services provided by the Advisor under
the Agreement. The Board considered that the Advisor is responsible for the overall management and administration of the Trust
and the Fund and reviewed all of the services provided by the Advisor to the Fund, as well as the background and experience of the
persons responsible for such services. In reviewing the services provided, the Board noted the compliance program that had been developed
by the Advisor and considered that it includes a robust program for monitoring the Advisor’s and the Fund’s compliance with the 1940
Page 21
Additional Information (Continued)
First Trust Indxx Medical Devices ETF (MDEV)
September 30, 2023 (Unaudited)
September 30, 2023 (Unaudited)
Act, as well as the Fund’s compliance with its investment objective, policies and restrictions. The Board also considered a report from the Advisor with respect to its risk management functions related to the operation of the Fund. Finally, as part of the Board’s consideration of the Advisor’s services, the Advisor, in its written materials and at the April 17, 2023 meeting, described to the Board the scope of its ongoing investment in additional personnel and infrastructure to maintain and improve the quality of services
provided to the Fund and the other funds in the First Trust Fund Complex. In light of the information presented and the considerations
made, the Board concluded that the nature, extent and quality of the services provided to the Trust and the Fund by the Advisor
under the Agreement have been and are expected to remain satisfactory and that the Advisor has managed the Fund consistent with its
investment objective, policies and restrictions.
The Board considered the unitary fee rate schedule payable by the Fund under the Agreement for the services provided. The
Board considered that as part of the unitary fee the Advisor is responsible for the Fund’s expenses, including the cost of transfer agency, custody, fund administration, legal, audit and other services and license fees, if any, but excluding the fee payment under
the Agreement and interest, taxes, brokerage commissions and other expenses connected with the execution of portfolio transactions,
distribution and service fees pursuant to a Rule 12b-1 plan, if any, and extraordinary expenses, if any. The Board received
and reviewed information showing the fee rates and expense ratios of the peer funds in the Expense Group, as well as advisory
and unitary fee rates charged by the Advisor to other fund (including ETFs) and non-fund clients, as applicable. Because the Fund pays
a unitary fee, the Board determined that expense ratios were the most relevant comparative data point. Based on the information provided,
the Board noted that the total (net) expense ratio for the Fund was above the median total (net) expense ratio of the peer funds
in the Expense Group. With respect to the Expense Group, the Board, at the April 17, 2023 meeting, discussed with Broadridge its
methodology for assembling peer groups and discussed with the Advisor limitations in creating peer groups for index ETFs,
including differences in underlying indexes and index-tracking methodologies that can result in greater management complexities across
seemingly comparable ETFs, and different business models that may affect the pricing of services among ETF sponsors. The
Board took these limitations and differences into account in considering the peer data. With respect to fees charged to other non-ETF
clients, the Board considered differences between the Fund and other non-ETF clients that limited their comparability. In considering
the unitary fee rate schedule overall, the Board also considered the Advisor’s statement that it seeks to meet investor needs through innovative and value-added investment solutions and the Advisor’s demonstrated long-term commitment to the Fund and the other funds in the First Trust Fund Complex.
The Board considered performance information for the Fund. The Board noted the process it has established for monitoring
the Fund’s performance and portfolio risk on an ongoing basis, which includes quarterly performance reporting from the Advisor for the Fund. The Board determined that this process continues to be effective for reviewing the Fund’s performance. The Board received and reviewed information for the one-year period ended December 31, 2022 regarding the performance of the Fund’s underlying index, the correlation between the Fund’s performance and that of its underlying index, the Fund’s tracking difference and the Fund’s excess return as compared to its benchmark index. Based on the information provided and its ongoing review of performance,
the Board concluded that the Fund was correlated to its underlying index and that the tracking difference for the Fund was within
a reasonable range. In addition, the Board reviewed data prepared by Broadridge comparing the Fund’s performance to that of the Performance Universe and to that of a broad-based benchmark index and noted the Advisor’s discussion of the Fund’s performance at the April 17, 2023 meeting. However, given the Fund’s objective of seeking investment results that correspond generally to the performance of its underlying index, the Board placed more emphasis on its review of correlation and tracking difference.
On the basis of all the information provided on the unitary fee and performance of the Fund and the ongoing oversight by the
Board, the Board concluded that the unitary fee for the Fund continues to be reasonable and appropriate in light of the nature, extent
and quality of the services provided by the Advisor to the Fund under the Agreement.
The Board considered information and discussed with the Advisor whether there were any economies of scale in connection with
providing advisory services to the Fund at current asset levels and whether the Fund may benefit from any economies of scale.
The Board noted that the unitary fee rate schedule for the Fund includes breakpoints pursuant to which the unitary fee rate will
be reduced as assets of the Fund meet certain thresholds. The Board considered the Advisor’s statement that it believes that its expenses relating to providing advisory services to the Fund will increase during the next twelve months as the Advisor continues to build infrastructure
and add new staff. The Board also noted that under the unitary fee structure, any reduction in expenses associated with the
management and operations of the Fund would benefit the Advisor, but that the unitary fee structure provides a level of certainty
in expenses for shareholders of the Fund. The Board concluded that the unitary fee rate schedule for the Fund reflects an appropriate
level of sharing of any economies of scale that may be realized in the management of the Fund at current asset levels. The
Board considered the revenues and allocated costs (including the allocation methodology) of the Advisor in serving as investment
advisor to the Fund for the twelve months ended December 31, 2022 and the estimated profitability level for the Fund calculated by the
Advisor
Page 22
Additional Information (Continued)
First Trust Indxx Medical Devices ETF (MDEV)
September 30, 2023 (Unaudited)
September 30, 2023 (Unaudited)
based on such data, as well as complex-wide and product-line profitability data, for the same period. The Board noted the
inherent limitations in the profitability analysis and concluded that, based on the information provided, the Advisor’s profitability level for the Fund was not unreasonable. In addition, the Board considered indirect benefits described by the Advisor that may be realized
from its relationship with the Fund. The Board considered that the Advisor had identified as an indirect benefit to the Advisor and
FTP their exposure to investors and brokers who, absent their exposure to the Fund, may have had no dealings with the Advisor or FTP,
and noted that the Advisor does not utilize soft dollars in connection with the Fund. The Board also considered the Advisor’s compensation for fund reporting services provided to the Fund pursuant to a separate Fund Reporting Services Agreement, which
is paid from the unitary fee. The Board concluded that the character and amount of potential indirect benefits to the Advisor
were not unreasonable.
Based on all of the information considered and the conclusions reached, the Board, including the Independent Trustees, unanimously
determined that the terms of the Agreement continue to be fair and reasonable and that the continuation of the Agreement is
in the best interests of the Fund. No single factor was determinative in the Board’s analysis.
Liquidity Risk Management Program
In accordance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “1940 Act”), the Fund and each other fund in the First Trust Fund Complex, other than the closed-end funds, have adopted and implemented a liquidity risk management
program (the “Program”) reasonably designed to assess and manage the funds’ liquidity risk, i.e., the risk that a fund could not meet requests to redeem shares issued by the fund without significant dilution of remaining investors’ interests in the fund. The Board of Trustees of the First Trust Funds has appointed First Trust Advisors, L.P. (the “Advisor”) as the person designated to administer the Program, and in this capacity the Advisor performs its duties primarily through the activities and efforts of the First Trust
Liquidity Committee (the “Liquidity Committee”).
Pursuant to the Program, the Liquidity Committee classifies the liquidity of each fund’s portfolio investments into one of the four liquidity categories specified by Rule 22e-4: highly liquid investments, moderately liquid investments, less liquid investments
and illiquid investments. The Liquidity Committee determines certain of the inputs for this classification process, including
reasonably anticipated trade sizes and significant investor dilution thresholds. The Liquidity Committee also determines and periodically
reviews a highly liquid investment minimum for certain funds, monitors the funds’ holdings of assets classified as illiquid investments to seek to ensure they do not exceed 15% of a fund’s net assets and establishes policies and procedures regarding redemptions in kind.
At the April 17, 2023 meeting of the Board of Trustees, as required by Rule 22e-4 and the Program, the Advisor provided the
Board with a written report prepared by the Advisor that addressed the operation of the Program during the period from March 17,
2022 through the Liquidity Committee’s annual meeting held on March 23, 2023 and assessed the Program’s adequacy and effectiveness of implementation during this period, including the operation of the highly liquid investment minimum for each fund that is required
under the Program to have one, and any material changes to the Program. Note that because the Fund primarily holds assets
that are highly liquid investments, the Fund has not adopted any highly liquid investment minimum.
As stated in the written report, during the review period, two funds breached the 15% limitation on illiquid investments for
one day each, as a result of an unscheduled week-long closure of the stock exchange in Istanbul following devastating earthquakes
in February, causing all Turkish equities to be re-classified as “illiquid” for one day. Each fund filed a Form N-RN on the day after the breach occurred, and one day later after the breach was cured. No fund with a highly liquid investment minimum breached that minimum
during the reporting period. The Advisor concluded that each fund’s investment strategy is appropriate for an open-end fund; that the Program operated effectively in all material respects during the review period; and that the Program is reasonably designed
to assess and manage the liquidity risk of each fund and to maintain compliance with Rule 22e-4.
Page 23
First Trust Exchange-Traded Fund VI
INVESTMENT ADVISOR
First Trust Advisors L.P.
120 East Liberty Drive, Suite 400
Wheaton, IL 60187
120 East Liberty Drive, Suite 400
Wheaton, IL 60187
ADMINISTRATOR, CUSTODIAN,
FUND ACCOUNTANT &
TRANSFER AGENT
FUND ACCOUNTANT &
TRANSFER AGENT
The Bank of New York Mellon
240 Greenwich Street
New York, NY 10286
240 Greenwich Street
New York, NY 10286
INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
PUBLIC ACCOUNTING FIRM
Deloitte & Touche LLP
111 South Wacker Drive
Chicago, IL 60606
111 South Wacker Drive
Chicago, IL 60606
LEGAL COUNSEL
Chapman and Cutler LLP
320 South Canal Street
Chicago, IL 60606
320 South Canal Street
Chicago, IL 60606
(b) Not applicable.
Item 2. Code of Ethics.
Not applicable.
Item 3. Audit Committee Financial Expert.
Not applicable.
Item 4. Principal Accountant Fees and Services.
Not applicable.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Items 6. Schedule of Investments.
| a) | Schedules of Investments in securities of unaffiliated issuers as of the close of the reporting period are included as part of the report to shareholders filed under Item 1 of this form. |
| b) | Not applicable. |
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
There have been no material changes to the procedures by which the shareholders may recommend nominees to the registrant’s board of directors, where those changes were implemented after the registrant last provided disclosure in response to the requirements of Item 407(c)(2)(iv) of Regulation S-K (17 CFR 229.407) (as required by Item 22(b)(15) of Schedule 14A (17 CFR 240.14a-101)), or this Item.
Item 11. Controls and Procedures.
| a) | The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3 (c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15 (b)). |
| b) | There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the period covered by this report that has materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
(a) Not applicable.
(b) Not applicable.
Item 13. Exhibits.
| (a)(1) | Not applicable. |
| (a)(2) | Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto. |
| (a)(3) | Not applicable. |
| (a)(4) | Not applicable. |
| (b) | Certifications pursuant to Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| (registrant) | First Trust Exchange-Traded Fund VI |
| By (Signature and Title)* | /s/ James M. Dykas | |
| James M. Dykas, President and Chief Executive Officer (principal executive officer) |
| Date: | December 5, 2023 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
| By (Signature and Title)* | /s/ James M. Dykas | |
| James M. Dykas, President and Chief Executive Officer (principal executive officer) |
| Date: | December 5, 2023 |
| By (Signature and Title)* | /s/ Derek D. Maltbie | |
| Derek D. Maltbie, Treasurer, Chief Financial Officer and Chief Accounting Officer (principal financial officer) |
| Date: | December 5, 2023 |
* Print the name and title of each signing officer under his or her signature.