Tax First Trust Exchange-Traded AlphaDEX Fund II First Trust Emerging Markets AlphaDEX Fund (FEM) $0.683600 56.06% --- --- --- $0.063840 100.00% --- --- --- First Trust China AlphaDEX Fund (FCA) $0.683600 58.95% --- --- --- $0.040400 100.00% --- --- --- First Trust Developed Markets Ex-US AlphaDEX Fund (FDT) $0.979300 41.15% --- --- --- $0.053065 100.00% --- --- --- First Trust Europe AlphaDEX Fund (FEP) $0.643900 76.81% --- --- --- $0.042884 100.00% --- --- --- First Trust Asia Pacific Ex-Japan AlphaDEX Fund (FPA) $1.124400 29.14% --- --- --- $0.037769 100.00% --- --- --- First Trust Brazil AlphaDEX Fund (FBZ) $1.944000 0.00% --- --- --- $0.165868 100.00% --- --- --- First Trust Japan AlphaDEX Fund (FJP) $0.774700 100.00% --- --- --- $0.099458 100.00% --- --- --- First Trust Latin America AlphaDEX Fund (FLN) $2.098200 4.56% --- --- --- $0.193076 100.00% --- --- --- First Trust South Korea AlphaDEX Fund (FKO) $0.110400 100.00% --- --- --- $0.071629 100.00% --- --- --- First Trust Germany AlphaDEX Fund (FGM) $1.080800 100.00% --- --- --- $0.106650 100.00% --- --- --- First Trust Canada AlphaDEX Fund (FCAN) $0.274800 100.00% --- --- --- $0.054750 100.00% --- --- --- First Trust Australia AlphaDEX Fund (FAUS) $1.605600 52.26% --- --- --- $0.033059 100.00% --- --- --- First Trust United Kingdom AlphaDEX Fund (FKU) $1.169200 92.28% --- --- --- --- --- --- --- --- First Trust Taiwan AlphaDEX Fund (FTW) $1.469900 0.00% --- --- --- $0.269345 100.00% --- --- --- First Trust Hong Kong AlphaDEX Fund (FHK) $2.832900 0.00% --- --- --- --- --- --- --- --- First Trust Switzerland AlphaDEX Fund (FSZ) $0.783900 100.00% --- --- --- $0.109255 100.00% --- --- --- First Trust Developed Markets ex-us Small Cap AlphaDEX Fund (FDTS) First Trust Emerging Markets Small Cap AlphaDEX (FEMS) Fund 2017 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 2017. 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. $0.925300 75.20% --- --- --- $0.084035 100.00% --- --- --- $1.355500 43.83% --- $0.113900 --- $0.123140 100.00% --- --- --- First Trust Eurozone AlphaDEX Fund (FEUZ) $0.564800 100.00% --- --- --- $0.114786 100.00% --- --- ---
2017 Tax Information - Continued Tax First Trust Exchange-Traded Fund III First Trust Preferred and ETF (FPE) $1.075587 63.99% 33.12% --- $0.002613 --- --- --- --- --- First Trust Managed Municipal ETF (FMB)** $0.001296 --- --- --- --- --- --- $1.328704 6.36% --- First Trust Long/Short Equity ETF (FTLS) $0.169000 100.00% 100.00% --- --- --- --- --- --- --- First Trust Emerging Markets Local Currency Bond ETF (FEMB) $2.689800 --- --- --- --- --- --- --- --- --- First Trust RiverFront Dynamic Asia Pacific ETF (RFAP) $1.080300 78.15% 0.00% --- --- $0.053385 100.00% --- --- --- First Trust RiverFront Dynamic Developed International ETF (RFDI) First Trust RiverFront Dynamic Emerging Markets ETF (RFEM) $1.041900 90.53% 0.00% $0.003000 --- $0.076597 100.00% --- --- --- $1.084000 42.69% 0.00% $0.058200 --- $0.110668 100.00% --- --- --- First Trust RiverFront Dynamic Europe ETF (RFEU) $0.884800 100.00% 0.00% --- --- $0.104393 100.00% --- --- --- First Trust Horizon Managed Volatility Domestic ETF (HUSV) First Trust Horizon Managed Volatility Developed International ETF (HDMV) $0.301400 100.00% 100.00% --- --- --- --- --- --- --- $1.108300 56.20% 0.00% --- --- $0.060176 100.00% --- --- --- First Trust California Municipal High ETF (FCAL)** $0.044700 --- --- --- $0.004250 --- --- $0.620750 1.21% --- First Trust Municipal High ETF (FMHI)** $0.000000 --- --- --- --- --- --- $0.150000 1.30% --- First Trust Institutional Preferred and ETF (FPEI) First Trust Exchange-Traded Fund IV First Trust SSI Strategic Convertible ETF (FCVT) $0.301400 79.47% 23.06% --- --- --- --- --- --- --- $0.574000 38.21% 29.88% $0.051900 --- --- --- --- --- --- First Trust Heitman Global Prime Real Estate ETF (PRME) $1.069900 24.15% 0.00% --- --- --- --- --- --- --- First Trust Exchange-Traded Fund V First Trust Morningstar Managed Futures Strategy Fund (FMF) $0.388700 --- --- --- --- --- --- --- --- 36.27%
2017 Tax Information - Continued Tax First Trust Exchange-Traded Fund VI Multi-Asset Diversified Index Fund (MDIV) $0.902714 35.70% 28.30% --- $0.245886 --- --- --- --- --- First Trust NASDAQ Technology Index Fund (TDIV) International Multi-Asset Diversified Index Fund (YDIV) First Trust BuyWrite ETF (FTHI) formerly First Trust High ETF First Trust Hedged BuyWrite ETF (FTLB) formerly First Trust Low Beta ETF First Trust Rising Achievers ETF (RDVY) formerly First Trust NASDAQ Rising Achievers ETF $0.799300 100.00% 84.82% --- --- --- --- --- --- --- $0.900400 47.61% 0.00% --- --- $0.078813 100.00% --- --- --- $0.235000 100.00% 100.00% --- $0.697500 --- --- --- --- --- $0.632500 100.00% 100.00% --- --- --- --- --- --- --- $0.372300 100.00% 100.00% --- --- --- --- --- --- --- First Trust Dorsey Wright Focus 5 ETF (FV) $0.185500 100.00% 100.00% --- --- --- --- --- --- --- First Trust RBA American Industrial Renaissance ETF (AIRR) $0.082300 100.00% 100.00% --- --- --- --- --- --- --- First Trust RBA Quality ETF (QINC) $0.599200 100.00% 100.00% --- --- --- --- --- --- --- First Trust Dorsey Wright International Focus 5 ETF (IFV) $0.318900 69.33% 0.00% --- --- $0.024255 100.00% --- --- --- First Trust Dorsey Wright Dynamic Focus 5 ETF (FVC) First Trust SMID Cap Rising Achievers ETF (SDVY) $0.162700 100.00% 100.00% --- --- --- --- --- --- --- $0.060800 100.00% 100.00% --- --- --- --- --- --- --- First Trust Nasdaq Bank ETF (FTXO) $0.320000 100.00% 100.00% --- --- --- --- --- --- --- First Trust Nasdaq Food & Beverage ETF (FTXG) $0.324200 100.00% 100.00% --- --- --- --- --- --- --- First Trust Nasdaq Oil & Gas ETF (FTXN) $0.376500 100.00% 100.00% --- --- --- --- --- --- --- First Trust Nasdaq Pharmaceuticals ETF (FTXH) $0.466700 100.00% 100.00% --- --- --- --- --- --- --- First Trust Nasdaq Retail ETF (FTXD) $0.352900 100.00% 100.00% --- --- --- --- --- --- --- First Trust Nasdaq Semiconductor ETF (FTXL) $0.141900 100.00% 100.00% --- --- --- --- --- --- --- First Trust Nasdaq Transportation ETF (FTXR) $0.306000 100.00% 100.00% --- --- --- --- --- --- --- Developed International Equity Select ETF (RNDM) $0.375600 78.62% 0.00% --- --- $0.040396 100.00% --- --- --- Emerging Markets Equity Select ETF (RNEM) $1.244600 28.41% 0.00% --- --- $0.095463 100.00% --- --- --- Large Cap US Equity Select ETF (RNLC) $0.119000 88.56% 85.69% --- --- --- --- --- --- --- Mid Cap US Equity Select ETF (RNMC) $0.146000 74.51% 73.85% --- --- --- --- --- --- --- Small Cap US Equity Select ETF (RNSC) $0.246900 85.71% 85.60% --- --- --- --- --- --- --- US Equity Select ETF (RNDV) $0.239500 78.05% 66.05% --- --- --- --- --- --- ---
(1) (3) (4) (5) (6) 2017 Tax Information - Continued Tax First Trust Exchange-Traded Fund VII First Trust Alternative Absolute Return Strategy ETF (FAAR) First Trust Global Tactical Commodity Strategy Fund (FTGC) $0.829800 --- --- --- --- --- --- --- --- 10.20% $0.249700 --- --- --- --- --- --- --- --- 19.58% 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. 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 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. 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 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. 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. Tax This is the per share amount of the foreign taxes paid by the fund reported in Box 6 under the title 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) 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) This is the total per share amount of included in the amount reported in Box 10 under the title - dividends - on Form 1099-DIV. interest dividends are dividends that are not subject to federal income tax but must be reported on your federal income tax return. (9) 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 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 2017 from First Trust Managed Municipal ETF (FMB), First Trust Municipal High ETF (FMHI) or First Trust California Municipal High ETF (FCAL) 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.
2017 Tax- State Information The 2017 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. of capital gains and ordinary income, if any, are generally taxable. The following table lists the percentage of your 2017 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. State State Code age State State Code age Tax- subject to AMT See Explanation Below (1) (1) First Trust Managed Municipal ETF (FMB) 6.36% Alabama AL 0.89% Indiana IN 1.63% Alaska AK 0.00% Iowa IA 0.49% Arizona AZ 2.30% Kansas KS 1.09% Arkansas AR 0.00% Kentucky KY 1.34% California CA 10.86% Louisiana LA 2.38% Colorado CO 7.02% Maine ME 0.00% Connecticut CT 1.23% Maryland MD 3.55% Delaware DE 0.00% Massachusetts MA 0.82% District of Columbia DC 0.01% Michigan MI 2.59% Florida FL 9.35% Minnesota MN 2.64% Georgia GA 2.22% Mississippi MS 0.34% Guam GU 0.12% Missouri MO 2.19% Hawaii HI 0.31% Montana MT 0.53% Idaho ID 0.73% Nebraska NE 1.38% Illinois IL 3.79% Nevada NV 1.35% New Hampshire NH 0.00% South Carolina SC 1.51% New Jersey NJ 1.42% South Dakota SD 0.69% New Mexico NM 0.00% Tennessee TN 2.03% New York NY 2.76% Texas TX 9.26% North Carolina NC 0.85% Utah UT 0.79% North Dakota ND 0.44% Vermont VT 1.02% Ohio OH 2.09% Virgin Islands VI 0.00% Oklahoma OK 0.79% Virginia VA 0.55% Oregon OR 1.94% Washington WA 2.43% Pennsylvania PA 6.32% West Virginia WV 0.00% Puerto Rico PR 0.00% Wisconsin WI 3.32% Rhode Island RI 0.52% Wyoming WY 0.12% (1) Tax- by state You can determine the amount of tax-exempt income dividends earned from investments in your state by multiplying the taxexempt income dividends you received during the year (located on Form 1099-DIV, Box 10), by the percentage shown next to the appropriate state. Tax- 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.
2017 Tax- State Information The 2017 income dividends you received from First Trust California Municipal High ETF (FCAL) 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. of capital gains and ordinary income, if any, are generally taxable. The following table lists the percentage of your 2017 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. State State Code age State State Code age Tax- subject to AMT See Explanation Below (1) (1) First Trust California Municipal High ETF (FCAL) 1.21% Alabama AL 0.00% Indiana IN 1.89% Alaska AK 0.00% Iowa IA 0.00% Arizona AZ 0.20% Kansas KS 0.00% Arkansas AR 0.00% Kentucky KY 0.00% California CA 84.81% Louisiana LA 0.00% Colorado CO 0.00% Maine ME 0.00% Connecticut CT 0.00% Maryland MD 0.00% Delaware DE 0.00% Massachusetts MA 0.00% District of Columbia DC 0.00% Michigan MI 0.00% Florida FL 0.00% Minnesota MN 0.00% Georgia GA 2.75% Mississippi MS 0.00% Guam GU 2.50% Missouri MO 0.00% Hawaii HI 0.00% Montana MT 0.00% Idaho ID 0.00% Nebraska NE 0.00% Illinois IL 3.06% Nevada NV 0.00% New Hampshire NH 0.00% South Carolina SC 0.00% New Jersey NJ 0.14% South Dakota SD 0.00% New Mexico NM 0.00% Tennessee TN 0.00% New York NY 0.44% Texas TX 1.46% North Carolina NC 0.00% Utah UT 0.00% North Dakota ND 1.33% Vermont VT 0.00% Ohio OH 0.00% Virgin Islands VI 0.00% Oklahoma OK 0.00% Virginia VA 0.02% Oregon OR 0.00% Washington WA 0.00% Pennsylvania PA 0.00% West Virginia WV 0.00% Puerto Rico PR 1.40% Wisconsin WI 0.00% Rhode Island RI 0.00% Wyoming WY 0.00% (1) Tax- 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. Tax- 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.
2017 Tax- State Information The 2017 income dividends you received from First Trust Municipal High ETF (FMHI) 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. of capital gains and ordinary income, if any, are generally taxable. The following table lists the percentage of your 2017 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. State State Code age State State Code age Tax- subject to AMT See Explanation Below (1) (1) First Trust Municipal High ETF (FMHI) 1.30% Alabama AL 0.00% Indiana IN 2.93% Alaska AK 0.00% Iowa IA 0.00% Arizona AZ 1.56% Kansas KS 0.00% Arkansas AR 0.00% Kentucky KY 0.00% California CA 4.01% Louisiana LA 0.00% Colorado CO 4.16% Maine ME 0.00% Connecticut CT 1.79% Maryland MD 0.00% Delaware DE 0.00% Massachusetts MA 3.52% District of Columbia DC 0.00% Michigan MI 0.00% Florida FL 6.18% Minnesota MN 5.21% Georgia GA 0.43% Mississippi MS 0.00% Guam GU 0.00% Missouri MO 0.00% Hawaii HI 0.37% Montana MT 0.00% Idaho ID 7.21% Nebraska NE 0.00% Illinois IL 16.33% Nevada NV 0.43% New Hampshire NH 0.00% South Carolina SC 3.25% New Jersey NJ 6.04% South Dakota SD 0.00% New Mexico NM 0.00% Tennessee TN 5.15% New York NY 0.00% Texas TX 4.86% North Carolina NC 0.57% Utah UT 0.00% North Dakota ND 0.00% Vermont VT 0.74% Ohio OH 5.38% Virgin Islands VI 0.00% Oklahoma OK 1.07% Virginia VA 0.00% Oregon OR 0.12% Washington WA 0.91% Pennsylvania PA 8.15% West Virginia WV 0.00% Puerto Rico PR 1.39% Wisconsin WI 8.24% Rhode Island RI 0.00% Wyoming WY 0.00% (1) Tax- by state You can determine the amount of tax-exempt income dividends earned from investments in your state by multiplying the taxexempt income dividends you received during the year (located on Form 1099-DIV, Box 10), by the percentage shown next to the appropriate state. Tax- 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.