| Investment Objective: |
The investment objective of the First Trust Smith Opportunistic Fixed Income ETF is to seek to maximize long-term total return. Under normal market conditions, the Fund pursues its objective by investing at least 80% of its net assets in fixed income securities. The Fund's investments principally include securities issued or guaranteed by the U.S. government or its agencies, instrumentalities or U.S. government-sponsored entities Treasury Inflation Protected Securities ("TIPS") residential and commercial mortgage-backed securities asset-backed securities U.S. corporate bonds fixed income securities issued by non-U.S. corporations and governments, including issuers with significant ties to emerging market countries bank loans, including first lien senior secured floating rate bank loans and covenant lite loans municipal bonds collateralized loan obligations ("CLOs") Rule 144A securities and other debt securities bearing fixed, floating or variable interest rates of any maturity. The Fund's sub-advisor, Smith Capital Investors, LLC ("Smith Capital" or the "Sub-Advisor"), attempts to focus the Fund's portfolio holdings in areas of the fixed income market (based on quality, sector, coupon or maturity) that the Sub-Advisor believes to be relatively attractive. |
