Rule 497(k)
File No. 333-178767
First Trust Variable Insurance Trust
SUMMARY PROSPECTUS
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FIRST TRUST CAPITAL STRENGTH HEDGED EQUITY PORTFOLIO
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CLASS I
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Before you invest, you may want to review the Fund’s prospectus, which contains more information about the Fund and its risks. You can find the Fund’s statutory prospectus and other information about the Fund, including the statement of additional information and most recent reports to shareholders, online at www.ftportfolios.com/Retail/VA/VAFundNews.aspx?ProductCode=FTCSHI. You can also get this information at no cost by calling (800) 621-1675 or by sending an e-mail request to info@ftportfolios.com. If you purchase shares through a financial intermediary (such as a broker/dealer or bank), you can obtain the Fund’s prospectus and other information from that financial intermediary. The Fund’s prospectus and statement of additional information, both dated August 15, 2023, are all incorporated by reference into this Summary Prospectus.
August 15, 2023
Investment Objective
The First Trust Capital Strength Hedged Equity Portfolio (the "Fund") seeks to provide long-term capital appreciation.
Fees and Expenses of the Fund
The following table describes the fees and expenses that you may pay if you buy, hold and sell shares of the Fund. The Total
Annual Fund Operating Expenses reflected below do not include contract level fees of the variable annuity or variable life insurance
contracts offered by a Participating Insurance Company (each a “Contract”). If such fees were included, the Total Annual Fund Operating Expenses would be higher. More information about eligibility requirements for Class I shares is available from your Participating Insurance
Company.
Shareholder Fees
(fees paid directly from your investment)
(fees paid directly from your investment)
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Class I
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Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price)
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None
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Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
(expenses that you pay each year as a percentage of the value of your investment)
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Class I
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Management Fees
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0.75%
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Distribution and Service (12b-1) Fees
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0.25%
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Other Expenses(1)
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0.44%
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Total Annual Fund Operating Expenses
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1.44%
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Fee Waiver and Expense Reimbursement(2)
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0.19%
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Total Net Annual Fund Operating Expenses After Fee Waiver and Expense Reimbursement
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1.25%
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(1)
“Other Expenses” is an estimate based on the expenses the Fund expects to incur for the current fiscal year.
(2)
Pursuant to a contractual agreement between the Trust, on behalf of the Fund, and the Fund’s investment advisor, the Fund's investment advisor has agreed to waive fees and/or pay the Fund’s expenses to the extent necessary to prevent the total net annual fund expenses of the Class I shares (excluding interest expense, brokerage commissions and other trading expenses, taxes and extraordinary expenses) from exceeding
1.25% of the Fund’s average daily net assets at least through August 1, 2025 (the “Expense Cap”). Expenses borne by the Fund’s investment advisor are subject to reimbursement by the Fund for up to three years from the date the fee or expense was initially waived or reimbursed,
but no reimbursement payment will be made by the Fund at any time if it would result in Class I share expenses (excluding interest expense, brokerage
commissions and other trading expenses, taxes, and extraordinary expenses) exceeding (after the amount of reimbursement is taken into account)
the lesser of (i) the applicable expense limitation in place for the most recent fiscal year for which such expense limitation was in place,
(ii) the applicable expense limitation in place at the time the fees were waived or expenses were reimbursed, or (iii) the current expense limitation.
The agreement may be terminated by the Trust on behalf of the Fund at any time and by the Fund’s investment advisor only after August 1, 2025 upon 60 days’ written notice.
Example
The following example is intended to help you compare the cost of investing in the Fund with the cost of investing in other
mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated and then hold or sell all of
your shares at the end of those periods. The example also assumes that your investment has a 5% return each year and that the Fund’s annual operating expenses (before any fee waiver or expense reimbursement) remain at current levels for the time periods indicated.
Additionally, the example assumes that the Fund’s investment advisor’s agreement to waive fees and/or pay the Fund’s expenses to the extent necessary to prevent the operating expenses of the Class I shares (excluding interest expense, brokerage commissions
and other trading expenses, taxes and extraordinary expenses) from exceeding 1.25% of the Fund’s average daily net assets will be terminated following August 1, 2025. The example does not take into account Contract level fees. If such fees were included,
the estimated expenses would be higher. Although your actual costs may be higher or lower, based on these assumptions, your cost
whether you redeem or hold all of your shares, would be:
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Share Class
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1 Year
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3 Years
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Class I
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$127
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$417
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Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs. These costs, which are not reflected in annual fund operating expenses
or in the example, affect the Fund’s performance. The Fund has no operational history and therefore no historical turnover rate.
Principal Investment Strategies
Under normal market conditions, the Fund will pursue its investment objective by investing primarily in the common stocks
and equity securities of real estate investment trusts (“REITs”) that comprise The Capital StrengthTM Index (the “Index”) and by utilizing an “option strategy” consisting of purchasing and writing (selling) U.S. exchange-traded put and call options on the S&P 500® Index or exchange-traded funds that track the S&P 500® Index ("Underlying ETFs"). Under normal market conditions, the Fund will invest at least 80% of its net assets (plus any borrowings for investment purposes) in equity securities and/or investments that provide
exposure to equity securities.The Fund’s investment sub-advisor is Cboe VestSM Financial LLC ("Cboe Vest" or the "Sub-Advisor").
Equity Strategy
The securities held by the Fund will be selected by the portfolio managers from the common stocks and equity securities of
REITs in the Index. The Index is designed to provide exposure to well-capitalized companies with strong market positions that have
the potential to provide their stockholders with a greater degree of stability and performance over time. The Index is designed to provide
access to companies with a history of strong balance sheets, a high degree of liquidity, the ability to generate earnings growth,
and a record of financial strength and profit growth. The Index is composed of 50 stocks selected objectively based on cash on hand, debt
ratios and volatility. The constituents and individual security weighting of the equity portfolio will be actively managed by the
portfolio managers in order to seek to achieve the Fund’s investment objective and strategy.
The Fund may invest in securities of any market capitalization. As of August 2, 2023, the equity portfolio had an expected
market capitalization range between $16 billion and $3 trillion.
Hedged Put/Spread Collar Strategy
The Fund will also employ an option overlay strategy in which the Fund systematically purchases and sells exchange-traded
options that seek to lower volatility over a full market cycle. The Fund purchases and sells exchange-traded put options and sells
exchange-traded call options to provide an option overlay strategy known as a “put/spread collar” strategy. The exchange-traded options are either on the S&P 500® Index or on Underlying ETFs. The put/spread collar strategy seeks to provide investors with a level of downside protection
from the put options while still allowing for a portion of upside participation in the returns of the S&P 500® Index based on the call options. When the Fund sells a call option, the Fund has the obligation to sell the reference asset at a specified price (the “strike price”) if the buyer exercises the call option within a specified time period. When the Fund purchases a put option, the Fund has
the right (but not the obligation) to sell the reference asset at the strike price within a specified time period. When the Fund sells a
put option, the Fund has the obligation to buy the reference asset at the strike price if the buyer exercises the option within a specified
time period.
The Fund creates a put/spread collar by buying a put option on the S&P 500® Index or on Underlying ETFs at a higher strike price and selling a put option on the S&P 500® Index or on Underlying ETFs at a relatively lower strike price, which results in a put option spread. The put option spread is meant to hedge against a portion of any market decline. If the market decreases, the Fund’s returns may decrease less than the market because the Sub-Advisor will sell or exercise the put options.
Simultaneously, the Fund sells a call option on the S&P 500® Index or on Underlying ETFs at the highest strike price possible to cover the premium needed to offset the purchased put option spread. The put option spread provides the Fund with protection from
a decrease in the S&P 500® Index or Underlying ETFs, whereas the sold call option creates the “collar” because the Fund gives up the opportunity to benefit from potential increases in the value of the S&P 500® Index or Underlying ETFs above the exercise prices of such options.
The value of the Fund’s put options is expected to increase in proportion to the decrease in value of the reference asset, but the amount by which the Fund’s options increase or decrease in value depends on how far the market has moved from the time the options positions were entered into and the relative strike prices of the purchased and sold put options.
This put/spread collar seeks to protect the Fund against a decline in value, which tends to be less expensive than a strategy
of only purchasing put options. The premiums received from selling call options can help offset the cost of the put option spread.
Any savings generated between the premiums received from selling call options and the premiums of the put options are passed on to shareholders.
This strategy, however, provides investors less downside risk when there is only a small decline in the price of the reference
asset. This is because the protection offered by the collar is limited to the difference between the strike prices of the purchased
put option and the sold put option.
The options overlay strategy will reset on a quarterly basis.
As of August 2, 2023, the Fund expects to have significant exposure to companies within the health care and industrials sectors,
although this may change from time to time. Over time, the Fund may have significant investments in investment sectors that it may not have had as of August 2, 2023. To the extent the Fund invests a significant portion of its assets in a given investment sector,
the Fund may be exposed to the risks associated with that investment sector.
The Fund is classified as “non-diversified” under the Investment Company Act of 1940, as amended (the “1940 Act”).
Principal Risks
You could lose money by investing in the Fund. An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other governmental agency. There can be no assurance that the Fund’s investment objective will be achieved. The order of the below risk factors does not indicate the significance of any particular risk
factor.
COUNTERPARTY RISK. Fund transactions involving a counterparty are subject to the risk that the counterparty will not fulfill its obligation to the Fund. Counterparty risk may arise because of the counterparty’s financial condition (i.e., financial difficulties, bankruptcy, or insolvency), market activities and developments, or other reasons, whether foreseen or not. A counterparty’s inability to fulfill its obligation may result in significant financial loss to the Fund. The Fund may be unable to recover its investment
from the counterparty or may obtain a limited recovery, and/or recovery may be delayed.
CURRENT MARKET CONDITIONS RISK. Current market conditions risk is the risk that a particular investment, or shares of the Fund in general, may fall in value due to current market conditions. As a means to fight inflation, which remains at elevated levels,
the Federal Reserve and certain foreign central banks have raised interest rates and expect to continue to do so, and the Federal Reserve
has announced that it intends to reverse previously implemented quantitative easing. U.S. regulators have proposed several changes
to market and issuer regulations which would directly impact the Fund, and any regulatory changes could adversely impact the Fund’s ability to achieve its investment strategies or make certain investments. Recent and potential future bank failures could
result in disruption to the broader banking industry or markets generally and reduce confidence in financial institutions and the economy
as a whole, which may also heighten market volatility and reduce liquidity. The ongoing adversarial political climate in the
United States, as well as political and diplomatic events both domestic and abroad, have and may continue to have an adverse impact the U.S.
regulatory landscape, markets and investor behavior, which could have a negative impact on the Fund’s investments and operations. Other unexpected political, regulatory and diplomatic events within the U.S. and abroad may affect investor and consumer confidence
and may adversely impact financial markets and the broader economy. For example, 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 have and could continue to have a significant impact
on certain Fund investments as well as Fund performance and liquidity. The economies of the United States and its trading partners, as
well as the financial markets generally, may be adversely impacted by trade disputes and other matters. For example, the United States
has imposed trade barriers and restrictions on China. In addition, the Chinese government is engaged in a longstanding dispute
with Taiwan, continually threatening an invasion. If the political climate between the United States and China does not improve or continues
to deteriorate, if China were to attempt invading Taiwan, or if other geopolitical conflicts develop or worsen, economies, markets
and individual securities may be adversely affected, and the value of the Fund’s assets may go down. The COVID-19 global pandemic, or any future public health crisis, 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, negatively impacting global growth prospects. While
vaccines have been developed, there is no guarantee that vaccines will be effective against emerging future variants of the disease.
As this global pandemic illustrated, such events may affect certain geographic regions, countries, sectors and industries more significantly
than others. Advancements in technology may also adversely impact markets and the overall performance of the Fund. For instance,
the economy may be significantly impacted by the advanced development and increased regulation of artificial intelligence.
These events, and any other future events, may adversely affect the prices and liquidity of the Fund’s portfolio investments and could result in disruptions in the trading markets.
CYBER SECURITY RISK. The Fund is susceptible to operational risks through breaches in cyber security. A breach in cyber security refers to both intentional and unintentional events that may cause the Fund to lose proprietary information, suffer data corruption
or lose operational capacity. Such events could cause the Fund to incur regulatory penalties, reputational damage, additional
compliance costs associated with corrective measures and/or financial loss. Cyber security breaches may involve unauthorized access to the Fund’s digital information systems through “hacking” or malicious software coding but may also result from outside attacks such as denial-of-service attacks through efforts to make network services unavailable to intended users. In addition, cyber security
breaches of the issuers of securities in which the Fund invests or the Fund’s third-party service providers, such as its administrator, transfer agent, custodian, or sub-advisor, as applicable, can also subject the Fund to many of the same risks associated with direct
cyber security breaches. Although the Fund has established risk management systems designed to reduce the risks associated with cyber security,
there is no guarantee that such efforts will succeed, especially because the Fund does not directly control the cyber security
systems of issuers or third-party service providers.
DERIVATIVES RISK. The Fund will use derivatives to employ its hedging strategy to reduce risk and volatility to overall market exposure. The use of derivative instruments involves risks different from, or possibly greater than, the risks associated with investing
directly in securities and other traditional investments. These risks include: (i) the risk that the counterparty to a derivative transaction
may not fulfill its contractual obligations; (ii) risk of mispricing or improper valuation; and (iii) the risk that changes in
the value of the derivative may not correlate perfectly with the underlying asset. Derivative prices are highly volatile and may fluctuate substantially
during a short period of time. Such prices are influenced by numerous factors that affect the markets, including, but not limited to:
changing supply and demand relationships; government programs and policies; national and international political and economic events,
changes in interest rates, inflation and deflation and changes in supply and demand relationships. Trading derivative instruments
involves risks different from, or possibly greater than, the risks associated with investing directly in securities. Derivative contracts
ordinarily have leverage inherent in their terms. The low margin deposits normally required in trading derivatives, including futures contracts,
permit
a high degree of leverage. Accordingly, a relatively small price movement may result in an immediate and substantial loss.
The use of leverage may also cause the Fund to liquidate portfolio positions when it would not be advantageous to do so in order to satisfy
its obligations. The use of leveraged derivatives can magnify potential for gain or loss and, therefore, amplify the effects of
market volatility on share price.
EQUITY SECURITIES RISK. The value of the Fund’s shares will fluctuate with changes in the value of the equity securities in which it invests. 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 equity market, such as market volatility, or when political or economic
events affecting an issuer occur. 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.
HEALTH CARE COMPANIES RISK. Health care companies, such as companies providing medical and healthcare goods and services, companies engaged in manufacturing medical equipment, supplies and pharmaceuticals, as well as operating health care facilities
and the provision of managed health care, may be affected by government regulations and government health care programs, increases
or decreases in the cost of medical products and services and product liability claims, among other factors. Many health care
companies are heavily dependent on patent protection, and the expiration of a company’s patent may adversely affect that company’s profitability. Health care companies are also subject to competitive forces that may result in price discounting, may be thinly capitalized
and susceptible to product obsolescence.
INDUSTRIALS COMPANIES RISK. Industrials companies convert unfinished goods into finished durables used to manufacture other goods or provide services. Examples of industrials companies include companies involved in the production of electrical equipment
and components, industrial products, manufactured housing and telecommunications equipment, as well as defense and aerospace
companies. General risks of industrials companies include the general state of the economy, exchange rates, commodity prices,
intense competition, consolidation, domestic and international politics, government regulation, import controls, excess capacity,
consumer demand and spending trends. In addition, industrials companies may also be significantly affected by overall capital spending
levels, economic cycles, rapid technological changes, delays in modernization, labor relations, environmental liabilities, governmental
and product liability and e-commerce initiatives.
INFLATION RISK. Inflation risk is the risk that the value of assets or income from investments will be less in the future as inflation decreases the value of money. The current environment of elevated inflation may cause the present value of the Fund’s assets and distributions to decline.
LARGE CAPITALIZATION COMPANIES RISK. Large capitalization companies may grow at a slower rate and be less able to adapt to changing market conditions than smaller capitalization companies. Thus, the return on investment in securities of large capitalization
companies may be less than the return on investment in securities of small and/or mid capitalization companies. The performance
of large capitalization companies also tends to trail the overall market during different market cycles.
LIQUIDITY RISK. The Fund may hold certain investments that may be subject to restrictions on resale, trade over-the-counter or in limited volume, or lack an active trading market. Accordingly, the Fund may not be able to sell or close out of such investments
at favorable times or prices (or at all), or at the prices approximating those at which the Fund currently values them. Illiquid
securities may trade at a discount from comparable, more liquid investments and may be subject to wide fluctuations in market value.
LOW VOLATILITY RISK. Although subject to the risks of common stocks, low volatility stocks are seen as having a lower risk profile than the overall markets. However, a portfolio comprised of low volatility stocks may not produce investment exposure that
has lower variability to changes in such stocks’ price levels. Low volatility stocks are likely to underperform the broader market during periods of rapidly rising stock prices when market volatility is high. Low volatility stocks also may not protect against market declines.
MANAGEMENT RISK. The Fund is subject to management risk because it is an actively managed portfolio. In managing the Fund’s investment portfolio, the portfolio managers will apply investment techniques and risk analyses that may not produce the desired
result. There can be no guarantee that the Fund will meet its investment objective.
MARKET RISK. Market risk is the risk that a particular investment, or shares of the Fund in general, may fall in value. Securities are
subject to market fluctuations caused by real or perceived adverse economic, political, and regulatory factors or market developments,
changes in interest rates and perceived trends in securities prices. Shares of the Fund could decline in value or underperform
other investments. In addition, local, regional or global events such as war, acts of terrorism, market manipulation, government
defaults, government shutdowns, regulatory actions, political changes, diplomatic developments, the imposition of sanctions and other
similar measures, spread of infectious diseases or other public health issues, recessions, natural disasters, or other events could
have a significant negative impact on the Fund and its investments. Any of such circumstances could have a materially negative impact on the
value of the Fund’s shares, the liquidity of an investment, and may result in increased market volatility. During any such events, the Fund’s shares may trade at increased premiums or discounts to their net asset value, the bid/ask spread on the Fund’s shares may widen and the returns on investment may fluctuate.
NEW FUND RISK. The Fund is new and has no performance historyor assets as of the date of this prospectus. The Fund expects to have fewer assets than larger funds. Like other new funds, large inflows and outflows may impact the Fund’s market exposure, and in turn, the Fund’s returns for limited periods of time.
NON-DIVERSIFICATION RISK. The Fund is classified as “non-diversified” under the 1940 Act. As a result, the Fund is only limited as to the percentage of its assets which may be invested in the securities of any one issuer by the diversification requirements
imposed by the Internal Revenue Code of 1986, as amended. The Fund may invest a relatively high percentage of its assets in a limited
number of issuers. As a result, the Fund may be more susceptible to a single adverse economic or regulatory occurrence affecting
one or more of these issuers, experience increased volatility and be highly invested in certain issuers.
OPERATIONAL RISK. The Fund is subject to risks arising from various operational factors, including, but not limited to, human error, processing and communication errors, errors of the Fund’s service providers counterparties or other third-parties, failed or inadequate processes and technology or systems failures. The 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 the Fund’s ability to meet its investment objective. Although the Fund and the Fund's investment advisor and sub-advisor seek to reduce these operational risks through controls and procedures,
there is no way to completely protect against such risks.
OPTIONS RISK. The use of options involves investment strategies and risks different from those associated with ordinary portfolio securities transactions and depends on the ability of the Fund's portfolio managers to forecast market movements correctly.
The prices of options are volatile and are influenced by, among other things, actual and anticipated changes in the value of the underlying
instrument, or in interest or currency exchange rates, including the anticipated volatility, which in turn are affected by
fiscal and monetary policies and by national and international political and economic events. The effective use of options also depends on the
Fund's ability to terminate option positions at times deemed desirable to do so. There is no assurance that the Fund will be able to effect
closing transactions at any particular time or at an acceptable price. In addition, there may at times be an imperfect correlation
between the movement in values of options and their underlying securities and there may at times not be a liquid secondary market for
certain options.
PORTFOLIO TURNOVER RISK. High portfolio turnover may result in the Fund paying higher levels of transaction costs and may generate greater tax liabilities for shareholders. Portfolio turnover risk may cause the Fund’s performance to be less than expected.
REIT RISK. REITs typically own and operate income-producing real estate, such as residential or commercial buildings, or real-estate
related assets, including mortgages. As a result, investments in REITs are subject to the risks associated with investing
in real estate, which may include, but are not limited to: fluctuations in the value of underlying properties; defaults by borrowers or tenants;
market saturation; changes in general and local operating expenses; and other economic, political or regulatory occurrences affecting
companies in the real estate sector. REITs are also subject to the risk that the real estate market may experience an economic downturn
generally, which may have a material effect on the real estate in which the REITs invest and their underlying portfolio securities. REITs
may have also a relatively small market capitalization which may result in their shares experiencing less market liquidity and greater
price volatility than larger companies. Increases in interest rates typically lower the present value of a REIT's future earnings stream, and
may make financing property purchases and improvements more costly. Because the market price of REIT stocks may change based upon investors'
collective perceptions of future earnings, the value of the Fund will generally decline when investors anticipate or experience
rising interest rates.
VALUATION RISK. The Fund may hold securities or other assets that may be valued on the basis of factors other than market quotations. This may occur because the asset or security does not trade on a centralized exchange, or in times of market turmoil or reduced
liquidity. There are multiple methods that can be used to value a portfolio holding when market quotations are not readily available.
The value established for any portfolio holding at a point in time might differ from what would be produced using a different methodology
or if it had been priced using market quotations. Portfolio holdings that are valued using techniques other than market quotations,
including “fair valued” assets or securities, may be subject to greater fluctuation in their valuations from one day to the next than if market quotations were used. In addition, there is no assurance that the Fund could sell or close out a portfolio position for the
value established for it at any time, and it is possible that the Fund would incur a loss because a portfolio position is sold or closed out
at a discount to the valuation established by the Fund at that time. The Fund’s ability to value investments may be impacted by technological issues or errors by pricing services or other third-party service providers.
Performance
The Fund does not have a performance history. Once available, the Fund’s performance information, and information that gives some indication of the risks of an investment in the Fund by comparing the Fund’s performance with a broad measure of market performance, will be available on the Fund’s website at www.ftportfolios.com. The Fund’s past performance is not necessarily an indication of how the Fund will perform in the future.
Management
Investment Advisor
First Trust Advisors L.P. (“First Trust” or the “Advisor”)
Investment Sub-Advisor
Cboe VestSM Financial LLC (“Cboe Vest” or the “Sub-Advisor”)
Portfolio Managers
The following persons serve as the portfolio managers of the Fund:
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Karan Sood, Managing Director of Cboe Vest
•
Howard Rubin, Managing Director of Cboe Vest
The portfolio managers are primarily and jointly responsible for the day-to-day management of the Fund. Each portfolio manager
has served as a part of the portfolio management team of the Fund since August 2023.
Purchase and Sale of Fund Shares
Shares of the Fund are sold only to each Participating Insurance Company’s variable insurance account (each an “Account”) to fund the benefits of the Contracts. The Account purchases shares of the Fund in accordance with variable account allocation instructions
received from owners of the Contracts.
Individual investors may not purchase or redeem shares in the Fund directly; shares may be purchased or redeemed only through
the Contracts. There are no minimum investment requirements. For a discussion of how Contract owners may purchase Fund shares,
please refer to the prospectus for the Account. Owners of the Contracts may direct purchase or redemption instructions to their Participating
Insurance Company.
The Fund offers to buy back (redeem) shares of the Fund from the Account at any time at net asset value. The Account will
redeem shares to make benefit or surrender payments under the terms of the Contracts or to effect transfers among investment options.
Redemptions are processed on any day on which the Fund is open for business and are effected at the net asset value next determined
after the redemption order, in proper form, is received. Orders received before the close of trading on a business day will
receive that day’s closing price; otherwise, the next business day’s price will be used. For a discussion of how Contract owners may redeem shares, please refer to the prospectus for your Account.
Tax Information
Shares of the Fund may be purchased only by the Accounts of Participating Insurance Companies. Participating Insurance Companies
and owners of Contracts should seek advice based on their individual circumstances from their own tax advisor. Tax disclosure
relating to the Contracts that offer the Fund as an investment alternative is to be contained in the prospectus for the Contracts.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase shares of the Fund through a Participating Insurance Company, broker-dealer, registered investment adviser,
bank or other financial intermediary (collectively, “intermediaries”), First Trust and First Trust Portfolios L.P., the Fund’s distributor, may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing
the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment. Ask your salesperson
or visit your financial intermediary’s website for more information.
You can find the Fund’s statutory prospectus and other information about the Fund, including the statement of additional information and most recent reports to shareholders, online at www.ftportfolios.com/Retail/VA/VAFundNews.aspx?ProductCode=FTCSHI.
FTCSHISP0823