Rule 497(k)
File No. 333-182308
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First Trust
Exchange-Traded Fund VI
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SUMMARY PROSPECTUS
First Trust BuyWrite Income ETF
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Ticker Symbol:
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FTHI
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Exchange:
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Nasdaq, Inc.
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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/ETF/ETFfundnews.aspx?Ticker=FTHI. 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. The Fund’s prospectus and statement of additional information, both dated February 1, 2024, are all incorporated by reference into this Summary Prospectus.
February 1, 2024
Investment Objectives
The First Trust BuyWrite Income ETF’s (the “Fund”) primary investment objective is to provide current income. The Fund's secondary
investment objective is to provide capital appreciation.
Fees and Expenses of the Fund
The following table describes the fees and expenses you may pay if you buy, hold and
sell shares of the Fund. Investors may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which
are not reflected in the table and example below.
Shareholder Fees
(fees paid directly from your investment)
(fees paid directly from your investment)
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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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Management Fees
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0.75%
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Distribution and Service (12b-1) Fees
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0.00%
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Other Expenses
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0.00%
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Total Annual Fund Operating Expenses(1)
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0.75%
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(1)
Expenses have been restated to reflect the current fiscal year.
Example
The example below is intended to help you compare the cost of investing in the Fund
with the cost of investing in other 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 operating expenses remain at current levels. Although your actual costs may be higher or lower,
based on these assumptions your costs would be:
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1 Year
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3 Years
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5 Years
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10 Years
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$77
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$240
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$417
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$930
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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 and may result in higher taxes
when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 98% of the average value of its portfolio.
Principal Investment Strategies
Under normal market conditions, the Fund will pursue its investment objectives by
investing primarily in equity securities listed on U.S. exchanges and by utilizing an “option strategy” consisting of writing (selling) U.S. exchange-traded call options on the Standard & Poor’s 500® Index (the “S&P 500 Index”). The Fund will employ an option strategy in which it will write U.S. exchange-traded
call options on the S&P 500 Index in order to seek additional cash flow in the form of
premiums on the options that may be distributed to shareholders on a monthly basis. A premium is the income received by an investor
who sells or writes an option contract to another party. In exchange for the premiums received in connection with its written U.S. exchange-traded
call options on the S&P 500 Index, the Fund forfeits any upside potential of the S&P 500 Index above the strike price
of the written call options. The market value of the option strategy may be up to 20% of the Fund’s overall net asset value.
The equity securities in which the Fund will invest and the options which the Fund
will write will be limited to U.S. exchange-traded securities and options. The equity securities held by the Fund will be selected using
a mathematical optimization process which attempts to favor higher dividend paying common stocks for the Fund’s portfolio. The equity securities held by the Fund may include non-U.S. securities that are either directly listed on a U.S. securities exchange or in the
form of depositary receipts. The equity securities in the Fund’s portfolio will be periodically rebalanced at the discretion of the Fund’s portfolio managers. Depending on market volatility, the Fund may engage in active trading, which may result in a turnover of the Fund’s portfolio greater than 100% annually. The Fund may also invest in master limited partnerships ("MLPs"), real estate investment trusts ("REITs") and companies with various market capitalizations.
The option portion of the portfolio will generally consist of U.S. exchange-traded
calls on the S&P 500 Index that are written by the Fund. In certain instances, the Fund may also write call spreads on the S&P 500 Index.
A call spread is an options strategy whereby an investor holds two short calls at one strike and a long call at a higher strike
price. The call options written by the Fund will be a laddered portfolio of call options with expirations of less than one year, written
at-the-money to slightly out-of-the-money. A call option will give the holder the right to buy the S&P 500 Index at a predetermined strike
price from the Fund. The notional value of calls written will be generally between 25% and 75% of the overall Fund. In general, the notional value is the total value of a leveraged position’s assets.
As of December 31, 2023, the Fund had significant investments in information technology
companies, although this may change from time to time. To the extent the Fund invests a significant portion of its assets in a given jurisdiction
or investment sector, the Fund may be exposed to the risks associated with that jurisdiction or investment sector.
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 objectives will be achieved. The order of the below risk factors does not indicate
the significance of any particular risk factor.
AUTHORIZED PARTICIPANT CONCENTRATION RISK. Only an authorized participant may engage in creation or redemption transactions directly with the Fund. A limited number of institutions act as authorized
participants for the Fund. To the extent that these institutions exit the business or are unable to proceed with creation and/or
redemption orders and no other authorized participant steps forward to create or redeem, the Fund’s shares may trade at a premium or discount (the difference between the market price of the Fund's shares and the Fund's net asset value) and possibly face delisting and
the bid/ask spread (the difference between the price that someone is willing to pay for shares of the Fund at a specific point in
time versus the price at which someone is willing to sell) on the Fund’s shares may widen.
CALL OPTIONS RISK. The writer (seller) of a call option forgoes any profit from increases in the market
value of the underlying security or index referenced by the call option above the sum of the premium and the strike
price of the call but retains the risk of loss if the underlying security or index declines in value. When writing a call option, the Fund
will have no control over the exercise of the option by the option holder and may lose the benefit from any capital appreciation on the
underlying security or index. A number of factors may influence the option holder’s decision to exercise the option, including the value of the underlying security or index, price volatility, dividend yield and interest rates. To the extent that these factors increase the value
of the call option, the option holder is more likely to exercise the option, which may negatively affect the Fund.
When the Fund distributes the premium received from the sale of a call option, the
distribution may reduce a shareholder's tax basis in his or her shares of the Fund, causing a greater gain on a subsequent sale of such
shares. However, if the sold call option is later exercised, the premium received by the Fund will be recognized as income for tax purposes.
In such cases, if the premium has already been distributed to shareholders, the Fund may be required to sell other assets in
order to fund the distribution.
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, ongoing
armed conflicts between Russia and Ukraine in Europe and among Israel, Hamas and other militant groups in the Middle East, have
caused and could continue to cause significant market disruptions and volatility within the markets in Russia, Europe, the Middle
East 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.
DEPOSITARY RECEIPTS RISK. Depositary receipts represent equity interests in a foreign company that trade on
a local stock exchange. Depositary receipts may be less liquid than the underlying shares in their primary
trading market. Any distributions paid to the holders of depositary receipts are usually subject to a fee charged by the depositary. Holders
of depositary receipts may have limited voting rights, and investment restrictions in certain countries may adversely impact the
value of depositary receipts because such restrictions may limit the ability to convert the equity shares into depositary receipts and vice
versa. Such restrictions may cause the equity shares of the underlying issuer to trade at a discount or premium to the market price of
the depositary receipts.
DERIVATIVES RISK. 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. The use of leveraged derivatives can magnify potential for gain or loss and,
therefore, amplify the effects of market volatility on share price.
DIVIDENDS RISK. The Fund’s investment in dividend-paying securities could cause the Fund to underperform similar funds that invest without consideration of an issuer’s track record of paying dividends. Companies that issue dividend-paying securities are not required to continue to pay dividends on such securities. Therefore, there is the possibility
that such companies could reduce or eliminate the payment of dividends in the future, which could negatively affect the Fund’s performance.
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.
INDEX OR MODEL CONSTITUENT RISK. The Fund may be a constituent of one or more indices or ETF models. As a result,
the 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 the Fund’s shares, 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, the Fund’s net asset value could be negatively impacted and the Fund’s market price may be below the Fund’s net asset value during certain periods. In addition, index rebalances may potentially result in increased trading activity in the Fund's shares.
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. As inflation increases, the present value of the Fund’s assets and distributions may decline.
INFORMATION TECHNOLOGY COMPANIES RISK. Information technology companies produce and provide hardware, software and information technology systems and services. These companies may be adversely affected
by rapidly changing technologies, short product life cycles, fierce competition, aggressive pricing and reduced profit margins,
the loss of patent, copyright and trademark protections, cyclical market patterns, evolving industry standards and frequent new
product introductions. In addition, information technology companies are particularly vulnerable to federal, state and local government
regulation, and competition and consolidation, both domestically and internationally, including competition from foreign competitors
with lower production costs. Information technology companies also heavily rely on intellectual property rights and may be
adversely affected by the loss or impairment of those rights.
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 and the bid/ask spread on the Fund's shares may widen.
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 objectives.
MARKET MAKER RISK. The Fund faces numerous market trading risks, including the potential lack of an
active market for Fund shares due to a limited number of market markers. Decisions by market makers or authorized
participants to reduce their role or step away from these activities in times of market stress could inhibit the effectiveness of
the arbitrage process in maintaining the relationship between the underlying values of the Fund’s portfolio securities and the Fund’s market price. The Fund may rely on a small number of third-party market makers to provide a market for the purchase and sale of shares.
Any trading halt or other problem relating to the trading activity of these market makers could result in a dramatic change in the spread between the Fund’s net asset value and the price at which the Fund’s shares are trading on the Exchange, which could result in a decrease in value of the Fund’s shares. This reduced effectiveness could result in Fund shares trading at a discount to net asset
value and also in greater than normal intraday bid-ask spreads for Fund shares.
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.
MLP RISK. The Fund may invest in securities issued by MLPs. Investments in securities of MLPs
involve certain risks different from or in addition to the risks of investing in common stocks. MLP common units can be affected
by macro-economic factors and other factors unique to the partnership or company and the industry or industries in which the MLP
operates. Certain MLP securities may trade in relatively low volumes due to their smaller capitalizations or other factors, which
may cause them to have a high degree of price volatility and illiquidity. The structures of MLPs create certain risks, including, for example,
risks related to the limited ability of investors to control an MLP and to vote on matters affecting the MLP, risks related to potential
conflicts of interest between an MLP and the MLP's general partner, the risk that an MLP will generate insufficient cash flow to meet
its current operating requirements, the risk that an MLP will issue additional securities or engage in other transactions that will have
the effect of diluting the interests of existing investors, and risks related to the general partner's right to require unit-holders to sell their
common units at an undesirable time or price. On March 15, 2018, the Federal Energy Regulatory Commission (“FERC”) changed its long-standing tax allowance policy which no longer permits MLPs to include in their cost of service an income tax allowance. This has
had a negative impact on the performance of some MLPs affected by this decision. This policy change and any similar policy changes in the future could adversely impact an MLP’s business, financial condition, results of operations and cash flows and ability to pay cash
distributions or dividends.
NON-U.S. SECURITIES RISK. 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 securities exchanges in foreign countries.
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 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.
PREMIUM/DISCOUNT RISK. The market price of the Fund’s shares will generally fluctuate in accordance with changes in the Fund’s net asset value as well as the relative supply of and demand for shares on the Exchange. The Fund’s investment advisor cannot predict whether shares will trade below, at or above their net asset value because the shares
trade on the Exchange at market prices and not at net asset value. Price differences may be due, in large part, to the fact that
supply and demand forces at work in the secondary trading market for shares will be closely related, but not identical, to the same
forces influencing the prices of the holdings of the Fund trading individually or in the aggregate at any point in time. However, given that
shares can only be purchased and redeemed in Creation Units, and only to and from broker-dealers and large institutional investors that
have entered into participation agreements (unlike shares of closed-end funds, which frequently trade at appreciable discounts from,
and sometimes at premiums to, their net asset value), the Fund’s investment advisor believes that large discounts or premiums to the net asset value of shares should not be sustained. During stressed market conditions, the market for the Fund’s shares may become less liquid in response to deteriorating liquidity in the market for the Fund’s underlying portfolio holdings, which could in turn lead to differences between the market price of the Fund’s shares and their net asset value and the bid/ask spread on the Fund’s shares may widen.
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.
SIGNIFICANT EXPOSURE RISK. To the extent that the Fund invests 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 significant exposure makes the Fund more susceptible to any single occurrence and may subject the Fund to greater
market risk than a fund that is more broadly diversified.
SMALLER COMPANIES RISK. Small and/or mid capitalization companies may be more vulnerable to adverse general
market or economic developments, and their securities may be less liquid and may experience greater price
volatility than larger, more established companies as a result of several factors, including limited trading volumes, fewer products
or financial resources, management inexperience and less publicly available information. Accordingly, such companies are generally subject
to greater market risk than larger, more established companies.
TAX RISKS ASSOCIATED WITH INVESTMENT IN OPTIONS ON INDEXES. The Fund intends to invest a portion of its assets in options on indexes. The treatment of such derivatives may, in part, be based upon informal
guidance issued by the Internal Revenue Service
a number of years ago. Although the Fund believes that the Fund is treating such derivatives
consistently with current tax law, if the Internal Revenue Service were to disagree, the Fund could lose its status as a RIC.
If the Fund did not qualify as a RIC for any taxable year and certain relief provisions were not available, the Fund’s taxable income would be subject to tax at the Fund level and to a further tax at the Shareholder
level when such income is distributed. In such event, in order to re-qualify for taxation as a RIC, the Fund might be required to recognize
unrealized gains, pay substantial taxes and interest and make certain distributions. This would cause investors to incur higher tax liabilities
than they otherwise would have incurred and would have a negative impact on Fund returns. In such event, the Fund’s Board of Trustees may determine to reorganize or close the Fund or materially change the Fund’s investment objective and strategies. In the event that the Fund fails to qualify as a RIC, the Fund will promptly notify Shareholders of the implications of that failure.
TRADING ISSUES RISK. Trading in Fund shares on the Exchange may be halted due to market conditions or
for reasons that, in the view of the Exchange, make trading in shares inadvisable. In addition, trading in
Fund shares on the Exchange is subject to trading halts caused by extraordinary market volatility pursuant to the Exchange’s “circuit breaker” rules. There can be no assurance that the requirements of the Exchange necessary to maintain the listing of the Fund will continue
to be met or will remain unchanged. The Fund may have difficulty maintaining its listing on the Exchange in the event the Fund’s assets are small, the Fund does not have enough shareholders, or if the Fund is unable to proceed with creation and/or redemption
orders.
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.
Annual Total Return
The bar chart and table below illustrate the annual calendar year returns of the Fund
based on net asset value as well as the average annual Fund returns. The bar chart and table provide an indication of the risks of
investing in the Fund by showing changes in the Fund’s performance from year-to-year and by showing how the Fund’s average annual total returns based on net asset value compared to those of a benchmark index and broad-based market index. See “Total Return Information” for additional performance information regarding the Fund. The Fund’s performance information is accessible on the Fund’s website at www.ftportfolios.com.
First Trust BuyWrite Income ETF
Calendar Year Total Returns as of 12/31
Calendar Year Total Returns as of 12/31
During the periods shown in the chart above:
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Return
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Period Ended
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Best Quarter
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13.22%
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June 30, 2020
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Worst Quarter
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-23.01%
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March 31, 2020
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The Fund’s past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future.
All after-tax returns are calculated using the historical highest individual federal
marginal income tax rates and do not reflect the impact of any state or local tax. Returns after taxes on distributions reflect the taxed return on the payment of dividends
and capital gains.
Returns after taxes on distributions and sale of shares assume you sold your shares
at period end, and, therefore, are also adjusted for any capital gains or losses incurred. Returns for the market indices do not include
expenses, which are deducted from Fund returns, or taxes.
Your own actual after-tax returns will depend on your specific tax situation and may
differ from what is shown here. After-tax returns are not relevant to investors who hold Fund shares in tax-deferred accounts such as
individual retirement accounts (IRAs) or employee-sponsored retirement plans.
Average Annual Total Returns for the Periods Ended December 31, 2023
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1 Year
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5 Years
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Since
Inception
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Inception
Date
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Return Before Taxes
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19.98%
|
7.47%
|
6.18%
|
1/6/2014
|
|
Return After Taxes on Distributions
|
15.77%
|
4.80%
|
3.86%
|
|
|
Return After Taxes on Distributions and Sale of Fund Shares
|
11.65%
|
4.56%
|
3.72%
|
|
|
CBOE S&P 500 BuyWrite Monthly Index(1) (reflects no deduction for fees,
expenses or taxes)
|
11.81%
|
6.08%
|
5.59%
|
|
|
S&P 500® Index (reflects no deduction for fees, expenses or taxes)
|
26.29%
|
15.69%
|
12.18%
|
|
(1)
The CBOE S&P 500 BuyWrite Monthly Index is a benchmark index designed to track the
performance of a hypothetical buy-write strategy on the S&P 500® Index.
Management
Investment Advisor
First Trust Advisors L.P. (“First Trust” or the “Advisor”)
Portfolio Managers
The following persons serve as portfolio managers of the Fund.
•
John Gambla, CFA, FRM, PRM, Senior Portfolio Manager of First Trust
•
Rob A. Guttschow, CFA, Senior Portfolio Manager of First Trust
Each portfolio manager has served in such capacity for the Fund since 2014.
Purchase and Sale of Fund Shares
The Fund issues and redeems shares on a continuous basis, at net asset value, only in large blocks of shares called “Creation Units.” Individual shares of the Fund may only be purchased and sold on the secondary market
through a broker-dealer. Since shares of the Fund trade on securities exchanges in the secondary market at their market price rather than their net asset value, the Fund’s shares may trade at a price greater than (premium) or less than (discount) the Fund’s net asset value. An investor may incur costs attributable to the difference between the highest price a buyer is willing to pay to purchase
shares of the Fund (bid) and the lowest price a seller is willing to accept for shares of the Fund (ask) when buying or selling shares in
the secondary market (the “bid-ask spread”). Recent information, including the Fund’s net asset value, market price, premiums and discounts, bid-ask spreads and the median bid-ask spread for the Fund’s most recent fiscal year, is available online at https://www.ftportfolios.com/Retail/etf/home.aspx.
Tax Information
The Fund’s distributions are taxable and will generally be taxed as ordinary income or capital gains. Distributions on shares held in a tax-deferred account, while not immediately taxable, will be subject to tax when the
shares are no longer held in a tax-deferred account.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase shares of the Fund through a 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/ETF/ETFfundnews.aspx?Ticker=FTHI.
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