FCVT First Trust SSI Strategic Convertible Securities ETF

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1 FCVT First Trust SSI Strategic Convertible Securities ETF ETF.com segment: Fixed Income: Global - Corporate, Convertible Competing ETFs: Related ETF Channels: Underlying Index, Fixed Income, Active Management, Bond, Global Bonds, Global, Broad Maturities Find more ETFs with our ETF Screener and Database *Unless otherwise stated, data provided by FactSet. C FCVT FUND DESCRIPTION First Trust SSI Strategic Convertible Securities ETF is an actively managed fund of convertible securities from within and outside the US FCVT FACTSET ANALYTICS INSIGHT FCVT, launched vember 2015, is the first actively managed portfolio of convertible securities. The other competitors in this space - the well-established and large CWB and the relative newcomer ICVT have index following strategies. SSI the investment manager of the fund combines quantitative and fundamental analysis to select securities that it believes represent superior value and favorable risk reward characteristics. Unlike its competitors, the fund has no geographic restrictions and can even hold convertible debt denominated in other currencies. Its broad mandate allows it to invest in issuers of any credit quality and size, subject only to liquidity requirements.fcvt s unconstrained strategy could appeal to investors who believe that the convertibles space is not as efficient as other pockets of the financial markets and thus affords an opportunity to generate alpha. Still, this active management doesn t come cheap. The fund s expense ratio is more than double the fees of its competitors and may cause a return drag over the long term. FCVT MSCI ESG ANALYTICS INSIGHT The MSCI ESG Fund Quality Score measures the ability of ETF underlying holdings to manage key medium to long-term risks and opportunities arising from environmental, social, and governance factors, as determined by MSCI ESG Research LLC. As of vember 18, 2018 the First Trust SSI Strategic Convertible Securities ETF MSCI ESG Fund Quality Score is 4.51 out of 10. The fund s Peer Rank reflects the ranking of a fund s MSCI ESG Fund Quality Score against the scores of other funds within the same peer group, as defined by the Thomson Reuters Lipper Global Classification. FCVT ranks in the 80th percentile within its peer group and in the 18th percentile within the global universe of all funds in MSCI ESG Fund Metrics coverage. FCVT SUMMARY DATA Issuer Inception Date Legal Structure Expense Ratio Assets Under Management Average Daily $ Average Spread (60- Day) FCVT PORTFOLIO DATA Weighted Avg. Yield to Next Ex-Dividend Date Number of Holdings FCVT INDEX DATA Index Tracked Index Weighting Methodology Index Selection Methodology Segment Benchmark First Trust 11/04/15 Open-Ended Fund 0.95% $202.95M $2.06M 0.23% 11/21/ Underlying Index Proprietary Proprietary

2 1 Year Daily Price ($) Dec `18 Feb Mar Apr May Jun Jul Aug Sep Oct v 800k PERFORMANCE [as of 11/16/18] 1 MONTH 3 MONTHS YTD 1 YEAR 3 YEARS 5 YEARS 10 YEARS FCVT -2.07% -3.30% 2.14% 1.28% 6.74% FCVT (NAV) -2.16% -2.89% 2.30% 1.77% 7.38% Underlying Index All returns over 1 year are annualized. All returns are total returns unless otherwise stated. FCVT TOP 10 HOLDINGS Wells Fargo & Company % Square, Inc. 0.5% 15-MAY 1.72% U.S. Dollar 2.39% Microchip Technology Inc 1.69% Bank of America Corp % Illumina, Inc. 0.0% 15-AU 1.66% Becton Dickinson & Co. D 2.10% Herbalife Nutrition Ltd % Palo Alto Networks, Inc % NextEra Energy Inc Corpo 1.37% Total Top 10 Weighting 19.38% FCVT PORTFOLIO MANAGEMENT FCVT TAX EXPOSURES FCVT FUND STRUCTURE Expense Ratio Median Tracking Difference (12 Mo) Max. Upside Tracking Difference (12 Mo) Max. Downside Tracking Difference (12 Mo) 0.95% Max LT/ST Capital Gains Rate Capital Gains Distributions (3 Year) Tax on Distributions Distributes K % / 39.60% 0.07% Ordinary income Legal Structure OTC Derivative Use Securities Lending Active Securities Lending Split (Fund/Issuer) ETN Counterparty Open-Ended Fund 100% / 0% ETN Counterparty Risk Fund Closure Risk Low Portfolio Disclosure Daily

3 Daily Spread 0.8% FCVT FACTSET ANALYTICS BLOCK LIQUIDITY As of 11/19/18 0.6% 0.4% 0.2% 0% This measurement shows how easy it is to trade a $1 million USD block of FCVT. FCVT is rated a 4 out of 5. Premium/Discount 2.0% FCVT TRADABILITY Avg. Daily Share 70, % Average Daily $ $2.06M 0.0% Median Daily Share 49, % 500k 400k 300k 200k 100k Median Daily ($) Average Spread (%) Average Spread ($) $1.44M 0.23% $0.07 Dec Feb Apr Jun Aug Oct v Median Premium / Discount (12 Mo) 0.31% Max. Premium / Discount (12 Mo) 1.14% / -0.63% Impediment to Creations ne Market Hours Overlap % Creation Unit Size (Shares) 50,000 Creation Unit/Day (45 Day Average) 0.98 Creation Unit Cost (%) 0.04% Underlying / Unit Open Interest on ETF Options Net Asset Value (Yesterday) $28.79 ETF.com Implied Liquidity 4 FCVT TOP 10 HOLDINGS FCVT PERFORMANCE STATISTICS Wells Fargo & Company 7.5 % n Cum Perp Conv Pfd Registered Shs A Series L 2.71% Goodness of Fit (R2) Beta Up Beta U.S. Dollar 2.39% Down Beta Bank of America Corp 7.25 % n Cum Perp Conv Pfd Registered Shs Series L 2.27% Downside Standard Deviation FCVT MSCI ESG RATINGS MSCI ESG Quality Score 4.51 / 10

4 Becton Dickinson & Co. Deposit Repr 1/20th Cum Conv Pfd Registered Series A 2.10% Peer Group Percentile Rank Global Percentile Rank Palo Alto Networks, Inc. 0.75% 01-JUL % SRI Screening Criteria Exposure 3.44% Square, Inc. 0.5% 15- MAY % Exposure to Sustainable Impact Solutions 7.36% Microchip Technology Incorporated 1.625% 15-FEB % Weighted Average Carbon Intensity (t CO2e/$M Sales) Illumina, Inc. 0.0% 15- AUG % Herbalife Nutrition Ltd % 15-MAR % FCVT HOLDINGS STATISTICS Segment NextEra Energy Inc Corporate Units Cons of 1 PC + 1/20 Deb-I % Weighted Avg. FCVT Benchmark Total Top 10 Weighting 19.38% Effective Key Rate (2 year) Key Rate (10 year) Yield to Credit Spread Concentration Number of Holdings 124 Weighted Avg. Credit FCVT MATURITY DISTRIBUTION FCVT Segment Benchmark 0-1 Year 1-3 Years 3-5 Years 5-7 Years 7-10 Years 10+ Years

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