First Trust Advisors L.P 120 East Liberty Drive, Suite 400 Wheaton, IL 60187 1-800-621-1675 Fund Name (Ticker Symbol) Ordinary Income Qualified Corporate Dividend Received Deduction Long-Term Capital Gain Distribution Nontaxable Distributions Foreign Tax Paid Foreign Source Income Exempt Exempt Subject to AMT See Explanation Below (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) First Trust Exchange-Traded AlphaDEX Fund II First Trust Emerging Markets AlphaDEX Fund (FEM) $0.456600 67.75% --- --- --- $0.054857 100.00% --- --- --- First Trust China AlphaDEX Fund (FCA) $0.477400 63.05% --- --- --- $0.036741 100.00% --- --- --- First Trust Developed Markets ex-us AlphaDEX Fund (FDT) Income from U.S. Government Securities $0.830500 82.37% --- --- --- $0.082512 100.00% --- --- --- First Trust Europe AlphaDEX Fund (FEP) $0.624100 87.42% --- --- --- $0.049452 100.00% --- --- --- First Trust Asia Pacific ex-japan AlphaDEX Fund (FPA) $0.658000 46.07% --- --- --- $0.049826 100.00% --- --- --- First Trust Brazil AlphaDEX Fund (FBZ) $0.233100 --- --- --- --- $0.057222 100.00% --- --- --- First Trust Japan AlphaDEX Fund (FJP) $0.692600 100.00% --- --- --- $0.118082 100.00% --- --- --- First Trust Latin America AlphaDEX Fund (FLN) $0.197100 17.80% --- --- --- $0.043981 100.00% --- --- --- First Trust South Korea AlphaDEX Fund (FKO) --- 100.00% --- --- $0.405500 $0.130857 100.00% --- --- --- First Trust Germany AlphaDEX Fund (FGM) $0.459854 100.00% --- --- $0.024046 $0.101989 100.00% --- --- --- First Trust Canada AlphaDEX Fund (FCAN) $0.143800 100.00% --- --- --- $0.047890 100.00% --- --- --- First Trust Australia AlphaDEX Fund (FAUS) $2.015700 44.22% --- --- --- $0.042807 100.00% --- --- --- First Trust United Kingdom AlphaDEX Fund (FKU) $0.851600 100.00% --- --- --- --- --- --- --- --- First Trust Taiwan AlphaDEX Fund (FTW) $0.756145 --- --- --- $0.249655 $0.329563 100.00% --- --- --- First Trust Hong Kong AlphaDEX Fund (FHK) $1.347600 --- --- --- --- --- --- --- --- --- First Trust Switzerland AlphaDEX Fund (FSZ) $0.740338 100.00% --- --- $0.048162 $0.096301 100.00% --- --- --- First Trust Developed Markets ex-us Small Cap AlphaDEX Fund (FDTS) First Trust Emerging Markets Small Cap AlphaDEX Fund (FEMS) 2016 Tax Information Below is a per share table that provides the amounts distributed from each First Trust exchange-traded fund for federal income tax purposes in 2016. Each of the following exchange-traded funds has qualified as a regulated investment company as defined under the Internal Revenue Code. This letter is not to be used as a substitute for your Form 1099-DIV. $0.594400 100.00% --- --- --- $0.069789 100.00% --- --- --- $0.728800 36.58% --- --- --- $0.100772 100.00% --- --- --- First Trust Eurozone AlphaDEX Fund (FEUZ) $0.691400 100.00% --- --- --- $0.128035 100.00% --- --- ---
Fund Name (Ticker Symbol) Ordinary Income Qualified Corporate Dividend Received Deduction Long-Term Capital Gain Distribution Nontaxable Distributions Foreign Tax Paid Foreign Source Income Exempt Exempt Subject to AMT See Explanation Below (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) First Trust Exchange-Traded Fund III First Trust Preferred Securities and Income ETF (FPE) $1.124847 56.46% 33.84% --- $0.009153 --- --- --- --- --- First Trust Managed Municipal ETF (FMB)** $0.201914 --- --- --- --- --- --- $1.300486 8.45% --- First Trust Long/Short Equity ETF (FTLS) $0.359600 100.00% 100.00% --- --- --- --- --- --- --- Income from U.S. Government Securities First Trust Emerging Markets Local Currency Bond ETF (FEMB) $1.649976 --- --- --- $0.689824 --- --- --- --- --- First Trust RiverFront Dynamic Asia Pacific ETF (RFAP) $1.197900 100.00% --- --- --- $0.077513 100.00% --- --- --- First Trust RiverFront Dynamic Developed International ETF (RFDI) First Trust RiverFront Dynamic Emerging Markets ETF (RFEM) $0.675532 100.00% --- $0.298068 --- $0.112901 100.00% --- --- --- $1.969600 19.27% --- --- $0.108128 100.00% --- --- --- First Trust RiverFront Dynamic Europe ETF (RFEU) $0.709774 100.00% --- $0.943826 --- $0.142641 100.00% --- --- --- First Trust Horizon Managed Volatility Domestic ETF (HUSV) First Trust Horizon Managed Volatility Developed International ETF (HDMV) First Trust Exchange-Traded Fund IV First Trust SSI Strategic Convertible Securities ETF (FCVT) $0.071100 100.00% 100.00% --- --- --- --- --- --- --- $0.049500 100.00% --- --- --- --- --- --- --- --- $0.489900 36.25% 28.26% --- --- --- --- --- --- --- First Trust Heitman Global Prime Real Estate ETF (PRME) $1.081300 24.05% --- --- --- $0.054079 70.07% --- --- --- First Trust Exchange-Traded Fund V First Trust Morningstar Managed Futures Strategy Fund (FMF) --- --- --- --- --- --- --- --- --- ---
Fund Name (Ticker Symbol) Ordinary Income Qualified Corporate Dividend Received Deduction Long-Term Capital Gain Distribution Nontaxable Distributions Foreign Tax Paid Foreign Source Income Exempt Exempt Subject to AMT See Explanation Below (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) First Trust Exchange-Traded Fund VI Multi-Asset Diversified Income Index Fund (MDIV) $0.804881 36.64% 25.49% --- $0.409219 --- --- --- --- --- First Trust NASDAQ Technology Dividend Index Fund (TDIV) International Multi-Asset Diversified Income Index Fund (YDIV) Income from U.S. Government Securities $0.724400 100.00% 97.91% --- --- --- --- --- --- --- $0.767500 59.76% --- --- --- $0.080617 100.00% --- --- --- First Trust High Income ETF (FTHI) $0.343944 100.00% 100.00% --- $0.593556 --- --- --- --- --- First Trust Low Beta Income ETF (FTLB) $0.356724 100.00% 100.00% --- $0.280776 --- --- --- --- --- First Trust Rising Dividend Achievers ETF (formerly First Trust NASDAQ Rising Dividend Achievers ETF) (RDVY) $0.509500 100.00% 95.47% --- --- --- --- --- --- --- First Trust Dorsey Wright Focus 5 ETF (FV) $0.220300 100.00% 100.00% --- --- --- --- --- --- --- First Trust RBA American Industrial Renaissance ETF (AIRR) $0.019400 100.00% 100.00% --- --- --- --- --- --- --- First Trust RBA Quality Income ETF (QINC) $0.560500 100.00% 93.70% --- --- --- --- --- --- --- First Trust Dorsey Wright International Focus 5 ETF (IFV) $0.187300 100.00% --- --- --- $0.033718 100.00% --- --- --- First Trust Dorsey Wright Dynamic Focus 5 ETF (FVC) $0.145000 100.00% 100.00% --- --- --- --- --- --- --- First Trust Nasdaq Bank ETF (FTXO) $0.042900 77.26% 100.00% --- --- --- --- --- --- --- First Trust Nasdaq Food & Beverage ETF (FTXG) $0.060000 100.00% 100.00% --- --- --- --- --- --- --- First Trust Nasdaq Oil & Gas ETF (FTXN) $0.043700 100.00% 100.00% --- --- --- --- --- --- --- First Trust Nasdaq Pharmaceuticals ETF (FTXH) $0.034200 100.00% 100.00% --- --- --- --- --- --- --- First Trust Nasdaq Retail ETF (FTXD) $0.045700 100.00% 100.00% --- --- --- --- --- --- --- First Trust Nasdaq Semiconductor ETF (FTXL) $0.027400 100.00% 100.00% --- --- --- --- --- --- --- First Trust Nasdaq Transportation ETF (FTXR) $0.053700 100.00% 100.00% --- --- --- --- --- --- --- First Trust Exchange-Traded Fund VII First Trust Alternative Absolute Return Strategy ETF (FAAR) First Trust Global Tactical Commodity Strategy Fund (FTGC) --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(1) (2) (3) (4) (5) 2016 Tax Information Continued Ordinary Income This is the total per share amount of ordinary income dividends and short-term capital gain distributions (if applicable) included in the amount reported in Box 1a under the title Total ordinary dividends - on Form 1099-DIV. This per share amount does not include foreign tax paid, which is also included in Box 1a on Form 1099-DIV. Qualified Dividend Income This is the percentage of ordinary income dividends reported in Box 1a on Form 1099-DIV that is reported in Box 1b under the title Qualified dividends on Form 1099-DIV. This is the amount that may be eligible to be taxed as qualified dividend income at the applicable reduced capital gain tax rates in accordance with Internal Revenue Code Section 1 (h) 11. See Form 1040 / 1040A instructions for how to determine this amount. Corporate Dividend Received Deduction This is the percentage of the ordinary income dividends reported in Box 1a on Form 1099-DIV that is eligible for the 70% dividends received deduction allowed by certain corporations under Internal Revenue Code Section 243. Long-term Capital Gain Distribution This is the per share amount of the total long-term capital gain distributions reported in Box 2a under the title Total capital gain distr. - on Form 1099-DIV. This amount should be reported as long-term capital gain no matter how long your shares have been held. Nontaxable Distributions This is the per share amount of the nontaxable, or sometimes called return of capital, distributions reported in Box 3 under the title Nondividend distributions on Form 1099-DIV. This amount should not be reported as taxable income on your current tax return. Rather, it should be treated as a reduction in the original cost basis of your investment in the respective exchange-traded fund. Although, once your basis is reduced to zero, excess nontaxable distributions are reported as capital gain. (6) Foreign Tax Paid This is the per share amount of the foreign taxes paid by the fund reported in Box 6 under the title Foreign tax paid on Form 1099-DIV. You may be able to claim this amount as an itemized deduction or you may be able to obtain a foreign tax credit. The total of this amount and the amount of ordinary income dividends (item (1) above) equals the amount reported in Box 1a on Form 1099-DIV. (7) Foreign Source Income This is the percent of the amount reported in Box 1a that comes from interest and/or dividends that are generated by activity outside of the U.S. This information may be needed to the extent you claim a foreign tax credit on your federal tax return. (8) Exempt This is the total per share amount of Exempt included in the amount reported in Box 10 under the title Exempt- dividends - on Form 1099-DIV. Exempt interest dividends are dividends that are not subject to federal income tax but must be reported on your federal income tax return. (9) Exempt Subject to AMT This shows the percentage of exempt-interest dividends subject to the alternative minimum tax. This amount is included in Box 10 on Form 1099-DIV. See the instructions for Form 6251. (10) of Income from U.S. Government Securities This is the percent of the amount reported in Box 1a that comes from interest on U.S. government securities, which may not be subject to state taxation. ** For shareholders who received distributions in 2016 from First Trust Managed Municipal ETF (FMB), please see the attached income by State table for determining your individual state filing requirements. General Note: Capital gains and losses, which occur when you sell or exchange your fund shares, must be reported to the IRS. Individual shareholders should use Form 1040, Schedule D to report sales of shares. IRS Publication 550 contains additional information which you may find helpful in complying with the IRS reporting requirements, including the net investment income tax (NIIT) of 3.8%. The information above is provided to assist you in preparing your federal and state tax returns. Please consult your tax advisor regarding your individual tax situation. FTF-TX2017
First Trust Advisors L.P 120 East Liberty Drive, Suite 400 Wheaton, IL 60187 1-800-621-1675 2016 Tax-Exempt Income State Information The 2016 income dividends you received from First Trust Managed Municipal ETF (FMB) are subject to special state income tax considerations, and may be exempt from state income tax. To determine the amount of income exempt from state income tax, examine the table below and its percentage value for your state of residence. For investors subject to the alternative minimum tax, a portion of fund dividends may be taxable. Distribution of capital gains and ordinary income, if any, are generally taxable. The following table lists the percentage of your 2016 income dividends that may qualify for exemption in your state. This letter is not to be used as a substitute for your Form 1099-DIV. Fund Name (Ticker Symbol) State State Code age State State Code age Tax- Exempt Income subject to AMT See Explanation Below (1) (1) (2) First Trust Managed Municipal ETF (FMB) 8.4480% Alabama AL 1.01% Indiana IN 2.08% Alaska AK 0.00% Iowa IA 0.09% Arizona AZ 3.75% Kansas KS 0.53% Arkansas AR 0.00% Kentucky KY 0.56% California CA 5.15% Louisiana LA 4.20% Colorado CO 10.41% Maine ME 1.20% Connecticut CT 0.90% Maryland MD 1.44% Delaware DE 0.19% Massachusetts MA 0.12% District of Columbia DC 0.00% Michigan MI 2.78% Florida FL 4.89% Minnesota MN 1.66% Georgia GA 1.62% Mississippi MS 2.08% Guam GU 0.84% Missouri MO 3.38% Hawaii HI 0.43% Montana MT 0.14% Idaho ID 0.82% Nebraska NE 2.22% Illinois IL 4.97% Nevada NV 1.01%
Fund Name (Ticker Symbol) State State Code age State State Code age Tax- Exempt Income subject to AMT See Explanation Below (1) (1) (2) New Hampshire NH 0.00% South Carolina SC 3.51% New Jersey NJ 2.95% South Dakota SD 0.05% New Mexico NM 0.03% Tennessee TN 1.94% New York NY 1.10% Texas TX 14.31% North Carolina NC 1.73% Utah UT 1.19% North Dakota ND 0.75% Vermont VT 0.63% Ohio OH 1.62% Virgin Islands VI 0.14% Oklahoma OK 0.61% Virginia VA 0.00% Oregon OR 0.60% Washington WA 1.14% Pennsylvania PA 4.41% West Virginia WV 0.03% Puerto Rico PR 0.00% Wisconsin WI 4.67% Rhode Island RI 0.04% Wyoming WY 0.08% (1) Tax-Exempt Income by state You can determine the amount of tax-exempt income dividends earned from investments in your state by multiplying the tax-exempt income dividends you received during the year (located on Form 1099-DIV, Box 10), by the percentage shown next to the appropriate state. (2) Tax-Exempt Income subject to AMT This shows the percentage of tax-exempt income dividends subject to alternative minimum tax. This amount is included in Box 10 on Form 1099-DIV. See the instructions for Form 6251. FTF-TX2017