| Investment Objective: |
The First Trust S&P 500 Economic Moat ETF (the "Fund") seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of an equity index called the S&P 500 Economic Moat Index (the "Index"). Under normal conditions, the Fund will invest at least 80% of its net assets in the securities that comprise the Index. The Fund, using an indexing investment approach, attempts to replicate, before fees and expenses, the performance of the Index. The Index is designed to measure the performance of common stock of companies in the S&P 500 Index which are identified as having sustainable competitive advantages, or "an economic moat," as evidenced by their sustained high gross margins, sustained high return on invested capital ("ROIC") and high market share. The S&P 500 Index is a large capitalization U.S. index composed of 500 issuers with securities that trade on national stock exchanges. The Economic Moat score is a composite score based on the average z-scores of each of the three metrics. A "z-score" is a method of standardizing a variable to combine it with other variables that may have a different scale or unit of measurement. |
