UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number
811-21774
First Trust Exchange-Traded Fund
(Exact name of registrant as specified in charter)
120 East Liberty Drive, Suite 400
Wheaton, IL 60187
(Address of principal executive offices) (Zip code)
W. Scott Jardine, Esq.
First Trust Portfolios L.P.
120 East Liberty Drive, Suite 400
Wheaton, IL 60187
(Name and address of agent for service)
Registrant's telephone number, including area code:
(630) 765-8000
Date of fiscal year end:
December 31
Date of reporting period:
June 30, 2024
Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.
Item 1. Reports to Shareholders.
(a) Following is a copy of the semi-annual reports transmitted to shareholders pursuant to Rule 30e-1 under the Act.
First Trust Dow Jones Select
MicroCap Index Fund
FDM | NYSE ARCA, INC.
SEMI-ANNUAL SHAREHOLDER REPORT | June 30, 2024
TSR - First Trust Fund Logo
This semi-annual shareholder report contains important information about the First Trust Dow Jones Select MicroCap Index Fund (the “Fund”) for the period of January 1, 2024 to June 30, 2024 (the “Period”). You can find additional information about the Fund at www.ftportfolios.com/fund-documents/etf/FDM. You can also request this information by contacting us at 1-800-621-1675 or info@ftportfolios.com.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS?
(Based on a hypothetical $10,000 investment)
Fund Costs of a $10,000 investment Costs paid as a percentage
of a $10,000 investment
First Trust Dow Jones Select MicroCap Index Fund $30 0.60%(1)
​(1)
Annualized.
KEY FUND STATISTICS (As of June 30, 2024)
Fund net assets $171,479,044%
Total number of portfolio holdings $158%
Portfolio turnover rate $5%
WHAT DID THE FUND INVEST IN? (As of June 30, 2024)
The tables below show the investment makeup of the Fund, representing the percentage of total investments of the Fund.
Top Ten Holdings
VSE Corp. 2.3%
Powell Industries, Inc. 2.2%
Crescent Energy, Inc., Class A 2.0%
CRA International, Inc. 2.0%
ACM Research, Inc., Class A 1.8%
ScanSource, Inc. 1.8%
Genco Shipping & Trading Ltd. 1.5%
Barrett Business Services, Inc. 1.4%
CECO Environmental Corp. 1.4%
Cullinan Therapeutics, Inc. 1.4%
Sector Allocation
Graphical Representation - Allocation 2 Chart
WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
Visit www.ftportfolios.com/fund-documents/etf/FDM to view additional information about the Fund such as the prospectus, financial information, Fund holdings and proxy voting information. You may also request this information by contacting us at 1-800-621-1675 or info@ftportfolios.com.
OTHER INFORMATION
Dow Jones Select MicroCap IndexSM (“Index”) is a product of S&P Dow Jones Indices, LLC or its affiliates (“SPDJI”) and has been licensed for use by First Trust. S&P® is a registered trademark of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by First Trust. The Fund is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P or their respective affiliates and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the Index.
First Trust Morningstar
Dividend Leaders Index Fund
FDL | NYSE ARCA, INC.
SEMI-ANNUAL SHAREHOLDER REPORT | June 30, 2024
TSR - First Trust Fund Logo
This semi-annual shareholder report contains important information about the First Trust Morningstar Dividend Leaders Index Fund (the “Fund”) for the period of January 1, 2024 to June 30, 2024 (the “Period”). You can find additional information about the Fund at www.ftportfolios.com/fund-documents/etf/FDL. You can also request this information by contacting us at 1-800-621-1675 or info@ftportfolios.com.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS?
(Based on a hypothetical $10,000 investment)
Fund Costs of a $10,000 investment Costs paid as a percentage
of a $10,000 investment
First Trust Morningstar Dividend Leaders Index Fund $22 0.43%(1)
​(1)
Annualized.
KEY FUND STATISTICS (As of June 30, 2024)
Fund net assets $3,870,824,700%
Total number of portfolio holdings $101%
Portfolio turnover rate $35%
WHAT DID THE FUND INVEST IN? (As of June 30, 2024)
The tables below show the investment makeup of the Fund, representing the percentage of total investments of the Fund.
Top Ten Holdings
Chevron Corp. 8.8%
Verizon Communications, Inc. 8.3%
AbbVie, Inc. 8.1%
Pfizer, Inc. 6.9%
Philip Morris International, Inc. 5.7%
Altria Group, Inc. 4.8%
International Business Machines Corp. 4.5%
United Parcel Service, Inc., Class B 3.4%
Gilead Sciences, Inc. 2.9%
CVS Health Corp. 2.4%
Sector Allocation
Graphical Representation - Allocation 2 Chart
WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
Visit www.ftportfolios.com/fund-documents/etf/FDL to view additional information about the Fund such as the prospectus, financial information, Fund holdings and proxy voting information. You may also request this information by contacting us at 1-800-621-1675 or info@ftportfolios.com.
OTHER INFORMATION
Morningstar® and Morningstar® Dividend Leaders IndexSM are registered trademarks and service marks of Morningstar, Inc. (“Morningstar”) and have been licensed for use by First Trust on behalf of the Fund. The Fund is not sponsored, endorsed, issued, sold or promoted by Morningstar and Morningstar makes no representation regarding the advisability of investing in the Fund.
First Trust US Equity Opportunities ETF
FPX | NYSE ARCA, INC.
SEMI-ANNUAL SHAREHOLDER REPORT | June 30, 2024
TSR - First Trust Fund Logo
This semi-annual shareholder report contains important information about the First Trust US Equity Opportunities ETF (the “Fund”) for the period of January 1, 2024 to June 30, 2024 (the “Period”). You can find additional information about the Fund at www.ftportfolios.com/fund-documents/etf/FPX. You can also request this information by contacting us at 1-800-621-1675 or info@ftportfolios.com.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS?
(Based on a hypothetical $10,000 investment)
Fund Costs of a $10,000 investment Costs paid as a percentage
of a $10,000 investment
First Trust US Equity Opportunities ETF $28 0.55%(1)
​(1)
Annualized.
KEY FUND STATISTICS (As of June 30, 2024)
Fund net assets $700,546,055%
Total number of portfolio holdings $103%
Portfolio turnover rate $40%
WHAT DID THE FUND INVEST IN? (As of June 30, 2024)
The tables below show the investment makeup of the Fund, representing the percentage of total investments of the Fund.
Top Ten Holdings
Regeneron Pharmaceuticals, Inc. 9.2%
Carrier Global Corp. 6.8%
Airbnb, Inc., Class A 6.2%
Samsara, Inc., Class A 4.8%
Otis Worldwide Corp. 3.5%
Constellation Energy Corp. 3.1%
Palantir Technologies, Inc., Class A 2.8%
Crowdstrike Holdings, Inc., Class A 2.8%
DraftKings, Inc., Class A 2.6%
DoorDash, Inc., Class A 2.6%
Sector Allocation
Graphical Representation - Allocation 2 Chart
WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
Visit www.ftportfolios.com/fund-documents/etf/FPX to view additional information about the Fund such as the prospectus, financial information, Fund holdings and proxy voting information. You may also request this information by contacting us at 1-800-621-1675 or info@ftportfolios.com.
First Trust NYSE® Arca®
Biotechnology Index Fund
FBT | NYSE ARCA, INC.
SEMI-ANNUAL SHAREHOLDER REPORT | June 30, 2024
TSR - First Trust Fund Logo
This semi-annual shareholder report contains important information about the First Trust NYSE® Arca® Biotechnology Index Fund (the “Fund”) for the period of January 1, 2024 to June 30, 2024 (the “Period”). You can find additional information about the Fund at www.ftportfolios.com/fund-documents/etf/FBT. You can also request this information by contacting us at 1-800-621-1675 or info@ftportfolios.com.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS?
(Based on a hypothetical $10,000 investment)
Fund Costs of a $10,000 investment Costs paid as a percentage
of a $10,000 investment
First Trust NYSE® Arca® Biotechnology Index Fund $26 0.53%(1)
​(1)
Annualized.
KEY FUND STATISTICS (As of June 30, 2024)
Fund net assets $1,108,229,996%
Total number of portfolio holdings $31%
Portfolio turnover rate $52%
WHAT DID THE FUND INVEST IN? (As of June 30, 2024)
The tables below show the investment makeup of the Fund, representing the percentage of total investments of the Fund.
Top Ten Holdings
Alnylam Pharmaceuticals, Inc. 5.2%
Corcept Therapeutics, Inc. 4.4%
United Therapeutics Corp. 4.3%
Halozyme Therapeutics, Inc. 4.3%
Vertex Pharmaceuticals, Inc. 3.8%
Biogen, Inc. 3.7%
Amgen, Inc. 3.7%
Regeneron Pharmaceuticals, Inc. 3.7%
Natera, Inc. 3.6%
Argenx SE, ADR 3.6%
Industry Allocation
Graphical Representation - Allocation 2 Chart
WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
Visit www.ftportfolios.com/fund-documents/etf/FBT to view additional information about the Fund such as the prospectus, financial information, Fund holdings and proxy voting information. You may also request this information by contacting us at 1-800-621-1675 or info@ftportfolios.com.
OTHER INFORMATION
Source ICE Data Indices, LLC, is used with permission. “NYSE®” is a service/trade mark of ICE Data Indices, LLC or its affiliates. This trademark has been licensed, along with the NYSE® Arca® Biotechnology Index (the “Index”) for use by First Trust Portfolios L.P. in connection with the First Trust NYSE® Arca® Biotechnology Index Fund (the “Product”). Neither First Trust Portfolios L.P., First Trust Exchange-Traded Fund (the “Trust”) nor the Product, as applicable, is sponsored, endorsed, sold or promoted by ICE Data Indices, LLC, its affiliates or its Third Party Suppliers (“ICE Data and its Suppliers”). ICE Data and its Suppliers make no representations or warranties regarding the advisability of investing in securities generally, in the Product particularly, the Trust or the ability of the Index to track general market performance. Past performance of an Index is not an indicator of or a guarantee of future results.
ICE DATA AND ITS SUPPLIERS DISCLAIM ANY AND ALL WARRANTIES AND REPRESENTATIONS, EXPRESS AND/OR IMPLIED, INCLUDING ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE, INCLUDING THE INDICES, INDEX DATA AND ANY INFORMATION INCLUDED IN, RELATED TO, OR DERIVED THEREFROM (“INDEX DATA”). ICE DATA AND ITS SUPPLIERS SHALL NOT BE SUBJECT TO ANY DAMAGES OR LIABILITY WITH RESPECT TO THE ADEQUACY, ACCURACY, TIMELINESS OR COMPLETENESS OF THE INDICES AND THE INDEX DATA, WHICH ARE PROVIDED ON AN “AS IS” BASIS AND YOUR USE IS AT YOUR OWN RISK.
First Trust Dow Jones Internet Index Fund
FDN | NYSE ARCA, INC.
SEMI-ANNUAL SHAREHOLDER REPORT | June 30, 2024
TSR - First Trust Fund Logo
This semi-annual shareholder report contains important information about the First Trust Dow Jones Internet Index Fund (the “Fund”) for the period of January 1, 2024 to June 30, 2024 (the “Period”). You can find additional information about the Fund at www.ftportfolios.com/fund-documents/etf/FDN. You can also request this information by contacting us at 1-800-621-1675 or info@ftportfolios.com.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS?
(Based on a hypothetical $10,000 investment)
Fund Costs of a $10,000 investment Costs paid as a percentage
of a $10,000 investment
First Trust Dow Jones Internet Index Fund $26 0.49%(1)
​(1)
Annualized.
KEY FUND STATISTICS (As of June 30, 2024)
Fund net assets $6,023,664,877%
Total number of portfolio holdings $43%
Portfolio turnover rate $20%
WHAT DID THE FUND INVEST IN? (As of June 30, 2024)
The tables below show the investment makeup of the Fund, representing the percentage of total investments of the Fund.
Top Ten Holdings
Amazon.com, Inc. 10.1%
Meta Platforms, Inc., Class A 9.4%
Netflix, Inc. 6.5%
Alphabet, Inc., Class A 5.2%
Salesforce, Inc. 5.1%
Arista Networks, Inc. 4.9%
Cisco Systems, Inc. 4.5%
Booking Holdings, Inc. 4.5%
Airbnb, Inc., Class A 4.4%
Alphabet, Inc., Class C 4.3%
Sector Allocation
Graphical Representation - Allocation 2 Chart
Any amount shown as 0.0% represents less than 0.1%.
WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
Visit www.ftportfolios.com/fund-documents/etf/FDN to view additional information about the Fund such as the prospectus, financial information, Fund holdings and proxy voting information. You may also request this information by contacting us at 1-800-621-1675 or info@ftportfolios.com.
OTHER INFORMATION
Dow Jones Internet Composite IndexSM (“Index”) is a product of S&P Dow Jones Indices, LLC or its affiliates (“SPDJI”) and has been licensed for use by First Trust. S&P® is a registered trademark of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by First Trust. The Fund is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P or their respective affiliates and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the Index.
First Trust Capital Strength® ETF
FTCS | NASDAQ, INC.
SEMI-ANNUAL SHAREHOLDER REPORT | June 30, 2024
TSR - First Trust Fund Logo
This semi-annual shareholder report contains important information about the First Trust Capital Strength® ETF (the “Fund”) for the period of January 1, 2024 to June 30, 2024 (the “Period”). You can find additional information about the Fund at www.ftportfolios.com/fund-documents/etf/FTCS. You can also request this information by contacting us at 1-800-621-1675 or info@ftportfolios.com.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS?
(Based on a hypothetical $10,000 investment)
Fund Costs of a $10,000 investment Costs paid as a percentage
of a $10,000 investment
First Trust Capital Strength® ETF $27 0.52%(1)
​(1)
Annualized.
KEY FUND STATISTICS (As of June 30, 2024)
Fund net assets $8,576,789,996%
Total number of portfolio holdings $50%
Portfolio turnover rate $44%
WHAT DID THE FUND INVEST IN? (As of June 30, 2024)
The tables below show the investment makeup of the Fund, representing the percentage of total investments of the Fund.
Top Ten Holdings
Apple, Inc. 2.5%
Amphenol Corp., Class A 2.4%
Costco Wholesale Corp. 2.3%
TJX (The) Cos., Inc. 2.3%
Regeneron Pharmaceuticals, Inc. 2.3%
Walmart, Inc. 2.2%
Motorola Solutions, Inc. 2.2%
Moody’s Corp. 2.2%
Microsoft Corp. 2.2%
Colgate-Palmolive Co. 2.2%
Sector Allocation
Graphical Representation - Allocation 2 Chart
WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
Visit www.ftportfolios.com/fund-documents/etf/FTCS to view additional information about the Fund such as the prospectus, financial information, Fund holdings and proxy voting information. You may also request this information by contacting us at 1-800-621-1675 or info@ftportfolios.com.
OTHER INFORMATION
Nasdaq® and The Capital StrengthTM Index (the “Index”) are registered trademarks and service marks of Nasdaq, Inc. (together with its affiliates hereinafter referred to as the “Corporations”) and are licensed for use by First Trust. The Fund has not been passed on by the Corporations as to its legality or suitability. The Fund is not issued, endorsed, sold or promoted by the Corporations. THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE FUND.
First Trust Value Line®
Dividend Index Fund
FVD | NYSE ARCA, INC.
SEMI-ANNUAL SHAREHOLDER REPORT | June 30, 2024
TSR - First Trust Fund Logo
This semi-annual shareholder report contains important information about the First Trust Value Line® Dividend Index Fund (the “Fund”) for the period of January 1, 2024 to June 30, 2024 (the “Period”). You can find additional information about the Fund at www.ftportfolios.com/fund-documents/etf/FVD. You can also request this information by contacting us at 1-800-621-1675 or info@ftportfolios.com.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS?
(Based on a hypothetical $10,000 investment)
Fund Costs of a $10,000 investment Costs paid as a percentage
of a $10,000 investment
First Trust Value Line® Dividend Index Fund $31 0.61%(1)
​(1)
Annualized.
KEY FUND STATISTICS (As of June 30, 2024)
Fund net assets $9,202,015,806%
Total number of portfolio holdings $204%
Portfolio turnover rate $47%
WHAT DID THE FUND INVEST IN? (As of June 30, 2024)
The tables below show the investment makeup of the Fund, representing the percentage of total investments of the Fund.
Top Ten Holdings
ONE Gas, Inc. 0.5%
UnitedHealth Group, Inc. 0.5%
Houlihan Lokey, Inc. 0.5%
Commerce Bancshares, Inc. 0.5%
Toyota Motor Corp., ADR 0.5%
Infosys Ltd., ADR 0.5%
Tootsie Roll Industries, Inc. 0.5%
Juniper Networks, Inc. 0.5%
McCormick & Co., Inc. 0.5%
AT&T, Inc. 0.5%
Sector Allocation
Graphical Representation - Allocation 2 Chart
WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
Visit www.ftportfolios.com/fund-documents/etf/FVD to view additional information about the Fund such as the prospectus, financial information, Fund holdings and proxy voting information. You may also request this information by contacting us at 1-800-621-1675 or info@ftportfolios.com.
OTHER INFORMATION
Value Line® and Value Line® Dividend Index are trademarks or registered trademarks of Value Line, Inc. (“Value Line”) and have been licensed for use for certain purposes by First Trust. The Fund is not sponsored, endorsed, recommended, sold or promoted by Value Line and Value Line makes no representation regarding the advisability of investing in products utilizing such strategy.
First Trust Growth StrengthTM ETF
FTGS | NASDAQ, INC.
SEMI-ANNUAL SHAREHOLDER REPORT | June 30, 2024
TSR - First Trust Fund Logo
This semi-annual shareholder report contains important information about the First Trust Growth StrengthTM ETF (the “Fund”) for the period of January 1, 2024 to June 30, 2024 (the “Period”). You can find additional information about the Fund at www.ftportfolios.com/fund-documents/etf/FTGS. You can also request this information by contacting us at 1-800-621-1675 or info@ftportfolios.com.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS?
(Based on a hypothetical $10,000 investment)
Fund Costs of a $10,000 investment Costs paid as a percentage
of a $10,000 investment
First Trust Growth StrengthTM ETF $32 0.60%(1)
​(1)
Annualized.
KEY FUND STATISTICS (As of June 30, 2024)
Fund net assets $481,245,598%
Total number of portfolio holdings $51%
Portfolio turnover rate $37%
WHAT DID THE FUND INVEST IN? (As of June 30, 2024)
The tables below show the investment makeup of the Fund, representing the percentage of total investments of the Fund.
Top Ten Holdings
NVIDIA Corp. 3.0%
Arista Networks, Inc. 2.7%
Monolithic Power Systems, Inc. 2.6%
Tesla, Inc. 2.5%
Broadcom, Inc. 2.5%
KLA Corp. 2.5%
Applied Materials, Inc. 2.3%
Amphenol Corp., Class A 2.3%
Palo Alto Networks, Inc. 2.3%
Deckers Outdoor Corp. 2.3%
Sector Allocation
Graphical Representation - Allocation 2 Chart
WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
Visit www.ftportfolios.com/fund-documents/etf/FTGS to view additional information about the Fund such as the prospectus, financial information, Fund holdings and proxy voting information. You may also request this information by contacting us at 1-800-621-1675 or info@ftportfolios.com.
OTHER INFORMATION
Nasdaq® and The Growth StrengthTM Index (the “Index”) are registered trademarks and service marks of Nasdaq, Inc. (together with its affiliates hereinafter referred to as the “Corporations”) and are licensed for use by First Trust. The Fund has not been passed on by the Corporations as to its legality or suitability. The Fund is not issued, endorsed, sold or promoted by the Corporations. THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE FUND.
First Trust Indxx Aerospace & Defense ETF
MISL | NYSE ARCA, INC.
SEMI-ANNUAL SHAREHOLDER REPORT | June 30, 2024
TSR - First Trust Fund Logo
This semi-annual shareholder report contains important information about the First Trust Indxx Aerospace & Defense ETF (the “Fund”) for the period of January 1, 2024 to June 30, 2024 (the “Period”). You can find additional information about the Fund at www.ftportfolios.com/fund-documents/etf/MISL. You can also request this information by contacting us at 1-800-621-1675 or info@ftportfolios.com.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS?
(Based on a hypothetical $10,000 investment)
Fund Costs of a $10,000 investment Costs paid as a percentage
of a $10,000 investment
First Trust Indxx Aerospace & Defense ETF $31 0.60%(1)
​(1)
Annualized.
KEY FUND STATISTICS (As of June 30, 2024)
Fund net assets $65,831,675%
Total number of portfolio holdings $35%
Portfolio turnover rate $10%
WHAT DID THE FUND INVEST IN? (As of June 30, 2024)
The tables below show the investment makeup of the Fund, representing the percentage of total investments of the Fund.
Top Ten Holdings
Boeing (The) Co. 8.1%
TransDigm Group, Inc. 7.9%
Lockheed Martin Corp. 7.8%
General Dynamics Corp. 7.6%
RTX Corp. 7.6%
Howmet Aerospace, Inc. 4.6%
HEICO Corp. 4.4%
Leidos Holdings, Inc. 4.4%
L3Harris Technologies, Inc. 4.2%
Woodward, Inc. 3.6%
Sector Allocation
Graphical Representation - Allocation 2 Chart
WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
Visit www.ftportfolios.com/fund-documents/etf/MISL to view additional information about the Fund such as the prospectus, financial information, Fund holdings and proxy voting information. You may also request this information by contacting us at 1-800-621-1675 or info@ftportfolios.com.
OTHER INFORMATION
Indxx and Indxx US Aerospace & Defense Index (“Index”) are trademarks of Indxx, Inc. (“Indxx”) and have been licensed for use for certain purposes by First Trust. The Fund is not sponsored, endorsed, sold or promoted by Indxx, and Indxx makes no representation regarding the advisability of trading in such product. The Index is determined, composed and calculated by Indxx without regard to First Trust or the Fund.
First Trust Bloomberg
Inflation Sensitive Equity ETF
FTIF | NYSE ARCA, INC.
SEMI-ANNUAL SHAREHOLDER REPORT | June 30, 2024
TSR - First Trust Fund Logo
This semi-annual shareholder report contains important information about the First Trust Bloomberg Inflation Sensitive Equity ETF (the “Fund”) for the period of January 1, 2024 to June 30, 2024 (the “Period”). You can find additional information about the Fund at www.ftportfolios.com/fund-documents/etf/FTIF. You can also request this information by contacting us at 1-800-621-1675 or info@ftportfolios.com.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS?
(Based on a hypothetical $10,000 investment)
Fund Costs of a $10,000 investment Costs paid as a percentage
of a $10,000 investment
First Trust Bloomberg Inflation Sensitive Equity ETF $31 0.60%(1)
​(1)
Annualized.
KEY FUND STATISTICS (As of June 30, 2024)
Fund net assets $2,274,329%
Total number of portfolio holdings $51%
Portfolio turnover rate $27%
WHAT DID THE FUND INVEST IN? (As of June 30, 2024)
The tables below show the investment makeup of the Fund, representing the percentage of total investments of the Fund.
Top Ten Holdings
Carlisle Cos., Inc. 2.5%
Diamondback Energy, Inc. 2.5%
Weatherford International PLC 2.4%
Westinghouse Air Brake Technologies Corp. 2.4%
Valero Energy Corp. 2.3%
Permian Resources Corp. 2.3%
Marathon Oil Corp. 2.3%
Dover Corp. 2.3%
Cummins, Inc. 2.2%
Advanced Drainage Systems, Inc. 2.2%
Sector Allocation
Graphical Representation - Allocation 2 Chart
WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
Visit www.ftportfolios.com/fund-documents/etf/FTIF to view additional information about the Fund such as the prospectus, financial information, Fund holdings and proxy voting information. You may also request this information by contacting us at 1-800-621-1675 or info@ftportfolios.com.
OTHER INFORMATION
“Bloomberg®” and Bloomberg Inflation Sensitive Equity Index licensed herein (the “Indices”) are service marks of Bloomberg Finance L.P. and its affiliates, including Bloomberg Index Services Limited (“BISL”), the administrator of the Indices (collectively, “Bloomberg”) and have been licensed for use for certain purposes by First Trust Advisors L.P. (the “Licensee”). Bloomberg is not affiliated with the Licensee, and Bloomberg does not approve, endorse, review, or recommend the financial products referenced herein (the “Financial Products”). Bloomberg does not guarantee the timeliness, accurateness, or completeness of any data or information relating to the Indices or the Financial Products.
First Trust NASDAQ-100
Equal Weighted Index Fund
QQEW | NASDAQ, INC.
SEMI-ANNUAL SHAREHOLDER REPORT | June 30, 2024
TSR - First Trust Fund Logo
This semi-annual shareholder report contains important information about the First Trust NASDAQ-100 Equal Weighted Index Fund (the “Fund”) for the period of January 1, 2024 to June 30, 2024 (the “Period”). You can find additional information about the Fund at www.ftportfolios.com/fund-documents/etf/QQEW. You can also request this information by contacting us at 1-800-621-1675 or info@ftportfolios.com.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS?
(Based on a hypothetical $10,000 investment)
Fund Costs of a $10,000 investment Costs paid as a percentage
of a $10,000 investment
First Trust NASDAQ-100 Equal Weighted Index Fund $28 0.55%(1)
​(1)
Annualized.
KEY FUND STATISTICS (As of June 30, 2024)
Fund net assets $2,065,092,870%
Total number of portfolio holdings $104%
Portfolio turnover rate $9%
WHAT DID THE FUND INVEST IN? (As of June 30, 2024)
The tables below show the investment makeup of the Fund, representing the percentage of total investments of the Fund.
Top Ten Holdings
Datadog, Inc., Class A 1.1%
MongoDB, Inc. 1.1%
Atlassian Corp., Class A 1.1%
Tesla, Inc. 1.1%
Zscaler, Inc. 1.1%
Baker Hughes Co. 1.1%
Palo Alto Networks, Inc. 1.1%
Diamondback Energy, Inc. 1.0%
Adobe, Inc. 1.0%
Intuit, Inc. 1.0%
Sector Allocation
Graphical Representation - Allocation 2 Chart
WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
Visit www.ftportfolios.com/fund-documents/etf/QQEW to view additional information about the Fund such as the prospectus, financial information, Fund holdings and proxy voting information. You may also request this information by contacting us at 1-800-621-1675 or info@ftportfolios.com.
OTHER INFORMATION
Nasdaq®, Nasdaq-100®, Nasdaq-100 Index®, and Nasdaq-100 Equal WeightedTM Index (the “Index”) are registered trademarks and service marks of Nasdaq, Inc. (together with its affiliates hereinafter referred to as the “Corporations”) and are licensed for use by First Trust. The Fund has not been passed on by the Corporations as to its legality or suitability. The Fund is not issued, endorsed, sold or promoted by the Corporations. THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE FUND.
First Trust NASDAQ-100-Technology
Sector Index Fund
QTEC | NASDAQ, INC.
SEMI-ANNUAL SHAREHOLDER REPORT | June 30, 2024
TSR - First Trust Fund Logo
This semi-annual shareholder report contains important information about the First Trust NASDAQ-100-Technology Sector Index Fund (the “Fund”) for the period of January 1, 2024 to June 30, 2024 (the “Period”). You can find additional information about the Fund at www.ftportfolios.com/fund-documents/etf/QTEC. You can also request this information by contacting us at 1-800-621-1675 or info@ftportfolios.com.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS?
(Based on a hypothetical $10,000 investment)
Fund Costs of a $10,000 investment Costs paid as a percentage
of a $10,000 investment
First Trust NASDAQ-100-Technology Sector Index Fund $29 0.54%(1)
​(1)
Annualized.
KEY FUND STATISTICS (As of June 30, 2024)
Fund net assets $4,108,891,022%
Total number of portfolio holdings $44%
Portfolio turnover rate $11%
WHAT DID THE FUND INVEST IN? (As of June 30, 2024)
The tables below show the investment makeup of the Fund, representing the percentage of total investments of the Fund.
Top Ten Holdings
Datadog, Inc., Class A 2.6%
MongoDB, Inc. 2.6%
Atlassian Corp., Class A 2.6%
Zscaler, Inc. 2.6%
Palo Alto Networks, Inc. 2.5%
Adobe, Inc. 2.5%
Intuit, Inc. 2.5%
Fortinet, Inc. 2.5%
Autodesk, Inc. 2.4%
ARM Holdings PLC, ADR 2.4%
Sector Allocation
Graphical Representation - Allocation 2 Chart
WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
Visit www.ftportfolios.com/fund-documents/etf/QTEC to view additional information about the Fund such as the prospectus, financial information, Fund holdings and proxy voting information. You may also request this information by contacting us at 1-800-621-1675 or info@ftportfolios.com.
OTHER INFORMATION
Nasdaq®, Nasdaq-100®, Nasdaq-100 Index®, and Nasdaq-100 Technology SectorTM Index (the “Index”) are registered trademarks and service marks of Nasdaq, Inc. (together with its affiliates hereinafter referred to as the “Corporations”) and are licensed for use by First Trust. The Fund has not been passed on by the Corporations as to its legality or suitability. The Fund is not issued, endorsed, sold or promoted by the Corporations. THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE FUND.
First Trust NASDAQ-100 Ex-Technology
Sector Index Fund
QQXT | NASDAQ, INC.
SEMI-ANNUAL SHAREHOLDER REPORT | June 30, 2024
TSR - First Trust Fund Logo
This semi-annual shareholder report contains important information about the First Trust NASDAQ-100 Ex-Technology Sector Index Fund (the “Fund”) for the period of January 1, 2024 to June 30, 2024 (the “Period”). You can find additional information about the Fund at www.ftportfolios.com/fund-documents/etf/QQXT. You can also request this information by contacting us at 1-800-621-1675 or info@ftportfolios.com.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS?
(Based on a hypothetical $10,000 investment)
Fund Costs of a $10,000 investment Costs paid as a percentage
of a $10,000 investment
First Trust NASDAQ-100 Ex-Technology Sector Index Fund $30 0.60%(1)
​(1)
Annualized.
KEY FUND STATISTICS (As of June 30, 2024)
Fund net assets $132,129,950%
Total number of portfolio holdings $62%
Portfolio turnover rate $12%
WHAT DID THE FUND INVEST IN? (As of June 30, 2024)
The tables below show the investment makeup of the Fund, representing the percentage of total investments of the Fund.
Top Ten Holdings
Tesla, Inc. 1.8%
Baker Hughes Co. 1.8%
Diamondback Energy, Inc. 1.8%
Warner Bros. Discovery, Inc. 1.8%
Biogen, Inc. 1.8%
Charter Communications, Inc., Class A 1.8%
Intuitive Surgical, Inc. 1.8%
MercadoLibre, Inc. 1.8%
Amazon.com, Inc. 1.7%
Comcast Corp., Class A 1.7%
Sector Allocation
Graphical Representation - Allocation 2 Chart
WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
Visit www.ftportfolios.com/fund-documents/etf/QQXT to view additional information about the Fund such as the prospectus, financial information, Fund holdings and proxy voting information. You may also request this information by contacting us at 1-800-621-1675 or info@ftportfolios.com.
OTHER INFORMATION
Nasdaq®, Nasdaq-100®, Nasdaq-100 Index®, and Nasdaq-100 Ex-Tech SectorTM Index (the “Index”) are registered trademarks and service marks of Nasdaq, Inc. (together with its affiliates hereinafter referred to as the “Corporations”) and are licensed for use by First Trust. The Fund has not been passed on by the Corporations as to its legality or suitability. The Fund is not issued, endorsed, sold or promoted by the Corporations. THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE FUND.
First Trust NASDAQ® Clean Edge®
Green Energy Index Fund
QCLN | NASDAQ, INC.
SEMI-ANNUAL SHAREHOLDER REPORT | June 30, 2024
TSR - First Trust Fund Logo
This semi-annual shareholder report contains important information about the First Trust NASDAQ® Clean Edge® Green Energy Index Fund (the “Fund”) for the period of January 1, 2024 to June 30, 2024 (the “Period”). You can find additional information about the Fund at www.ftportfolios.com/fund-documents/etf/QCLN. You can also request this information by contacting us at 1-800-621-1675 or info@ftportfolios.com.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS?
(Based on a hypothetical $10,000 investment)
Fund Costs of a $10,000 investment Costs paid as a percentage
of a $10,000 investment
First Trust NASDAQ® Clean Edge® Green Energy Index Fund $25 0.56%(1)
​(1)
Annualized.
KEY FUND STATISTICS (As of June 30, 2024)
Fund net assets $692,976,171%
Total number of portfolio holdings $58%
Portfolio turnover rate $13%
WHAT DID THE FUND INVEST IN? (As of June 30, 2024)
The tables below show the investment makeup of the Fund, representing the percentage of total investments of the Fund.
Top Ten Holdings
Goldman Sachs Financial Square Treasury Obligations Fund - Institutional Class 10.2%
Tesla, Inc. 8.8%
ON Semiconductor Corp. 7.4%
First Solar, Inc. 6.6%
Enphase Energy, Inc. 6.1%
Albemarle Corp. 5.0%
Rivian Automotive, Inc., Class A 4.9%
Universal Display Corp. 4.5%
Acuity Brands, Inc. 3.4%
Brookfield Renewable Partners, L.P. 3.2%
Sector Allocation
Graphical Representation - Allocation 2 Chart
WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
Visit www.ftportfolios.com/fund-documents/etf/QCLN to view additional information about the Fund such as the prospectus, financial information, Fund holdings and proxy voting information. You may also request this information by contacting us at 1-800-621-1675 or info@ftportfolios.com.
OTHER INFORMATION
Nasdaq®, Clean Edge®, and Nasdaq® Clean Edge® Green EnergyTM Index (the “Index”) are registered trademarks and service marks of Nasdaq, Inc. and Clean Edge, Inc., respectively (together with its affiliates hereinafter referred to as the “Corporations”) and are licensed for use by First Trust. The Fund has not been passed on by the Corporations as to its legality or suitability. The Fund is not issued, endorsed, sold or promoted by the Corporations. THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE FUND.
First Trust S&P REIT Index Fund
FRI | NYSE ARCA, INC.
SEMI-ANNUAL SHAREHOLDER REPORT | June 30, 2024
TSR - First Trust Fund Logo
This semi-annual shareholder report contains important information about the First Trust S&P REIT Index Fund (the “Fund”) for the period of January 1, 2024 to June 30, 2024 (the “Period”). You can find additional information about the Fund at www.ftportfolios.com/fund-documents/etf/FRI. You can also request this information by contacting us at 1-800-621-1675 or info@ftportfolios.com.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS?
(Based on a hypothetical $10,000 investment)
Fund Costs of a $10,000 investment Costs paid as a percentage
of a $10,000 investment
First Trust S&P REIT Index Fund $24 0.49%(1)
​(1)
Annualized.
KEY FUND STATISTICS (As of June 30, 2024)
Fund net assets $116,839,555%
Total number of portfolio holdings $134%
Portfolio turnover rate $3%
WHAT DID THE FUND INVEST IN? (As of June 30, 2024)
The tables below show the investment makeup of the Fund, representing the percentage of total investments of the Fund.
Top Ten Holdings
Prologis, Inc. 9.9%
Equinix, Inc. 6.8%
Welltower, Inc. 5.9%
Simon Property Group, Inc. 4.7%
Digital Realty Trust, Inc. 4.7%
Realty Income Corp. 4.4%
Public Storage 4.3%
Extra Space Storage, Inc. 3.1%
VICI Properties, Inc. 2.8%
AvalonBay Communities, Inc. 2.8%
REIT Allocation
Graphical Representation - Allocation 2 Chart
WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
Visit www.ftportfolios.com/fund-documents/etf/FRI to view additional information about the Fund such as the prospectus, financial information, Fund holdings and proxy voting information. You may also request this information by contacting us at 1-800-621-1675 or info@ftportfolios.com.
OTHER INFORMATION
S&P United States REIT Index (“Index”) is a product of S&P Dow Jones Indices, LLC or its affiliates (“SPDJI”) and has been licensed for use by First Trust. S&P® is a registered trademark of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by First Trust. The Fund is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P or their respective affiliates and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the Index.
First Trust Water ETF
FIW | NYSE ARCA, INC.
SEMI-ANNUAL SHAREHOLDER REPORT | June 30, 2024
TSR - First Trust Fund Logo
This semi-annual shareholder report contains important information about the First Trust Water ETF (the “Fund”) for the period of January 1, 2024 to June 30, 2024 (the “Period”). You can find additional information about the Fund at www.ftportfolios.com/fund-documents/etf/FIW. You can also request this information by contacting us at 1-800-621-1675 or info@ftportfolios.com.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS?
(Based on a hypothetical $10,000 investment)
Fund Costs of a $10,000 investment Costs paid as a percentage
of a $10,000 investment
First Trust Water ETF $26 0.51%(1)
​(1)
Annualized.
KEY FUND STATISTICS (As of June 30, 2024)
Fund net assets $1,667,565,465%
Total number of portfolio holdings $39%
Portfolio turnover rate $10%
WHAT DID THE FUND INVEST IN? (As of June 30, 2024)
The tables below show the investment makeup of the Fund, representing the percentage of total investments of the Fund.
Top Ten Holdings
Veralto Corp. 4.2%
American Water Works Co., Inc. 4.2%
Xylem, Inc. 4.1%
Ecolab, Inc. 4.1%
Roper Technologies, Inc. 4.0%
Agilent Technologies, Inc. 3.6%
Essential Utilities, Inc. 3.6%
Ferguson PLC 3.5%
AECOM 3.3%
Tetra Tech, Inc. 3.3%
Sector Allocation
Graphical Representation - Allocation 2 Chart
WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
Visit www.ftportfolios.com/fund-documents/etf/FIW to view additional information about the Fund such as the prospectus, financial information, Fund holdings and proxy voting information. You may also request this information by contacting us at 1-800-621-1675 or info@ftportfolios.com.
First Trust Natural Gas ETF
FCG | NYSE ARCA, INC.
SEMI-ANNUAL SHAREHOLDER REPORT | June 30, 2024
TSR - First Trust Fund Logo
This semi-annual shareholder report contains important information about the First Trust Natural Gas ETF (the “Fund”) for the period of January 1, 2024 to June 30, 2024 (the “Period”). You can find additional information about the Fund at www.ftportfolios.com/fund-documents/etf/FCG. You can also request this information by contacting us at 1-800-621-1675 or info@ftportfolios.com.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS?
(Based on a hypothetical $10,000 investment)
Fund Costs of a $10,000 investment Costs paid as a percentage
of a $10,000 investment
First Trust Natural Gas ETF $30 0.58%(1)
​(1)
Annualized.
KEY FUND STATISTICS (As of June 30, 2024)
Fund net assets $410,826,364%
Total number of portfolio holdings $45%
Portfolio turnover rate $25%
WHAT DID THE FUND INVEST IN? (As of June 30, 2024)
The tables below show the investment makeup of the Fund, representing the percentage of total investments of the Fund.
Top Ten Holdings
Western Midstream Partners, L.P. 5.0%
Hess Midstream, L.P., Class A 4.9%
EOG Resources, Inc. 4.4%
ConocoPhillips 4.4%
Occidental Petroleum Corp. 4.3%
Diamondback Energy, Inc. 4.2%
Devon Energy Corp. 3.9%
APA Corp. 3.6%
Coterra Energy, Inc. 3.6%
EQT Corp. 3.5%
Sub-Industry Allocation
Graphical Representation - Allocation 2 Chart
WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
Visit www.ftportfolios.com/fund-documents/etf/FCG to view additional information about the Fund such as the prospectus, financial information, Fund holdings and proxy voting information. You may also request this information by contacting us at 1-800-621-1675 or info@ftportfolios.com.
First Trust NASDAQ®
ABA Community Bank Index Fund
QABA | NASDAQ, INC.
SEMI-ANNUAL SHAREHOLDER REPORT | June 30, 2024
TSR - First Trust Fund Logo
This semi-annual shareholder report contains important information about the First Trust NASDAQ® ABA Community Bank Index Fund (the “Fund”) for the period of January 1, 2024 to June 30, 2024 (the “Period”). You can find additional information about the Fund at www.ftportfolios.com/fund-documents/etf/QABA. You can also request this information by contacting us at 1-800-621-1675 or info@ftportfolios.com.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS?
(Based on a hypothetical $10,000 investment)
Fund Costs of a $10,000 investment Costs paid as a percentage
of a $10,000 investment
First Trust NASDAQ® ABA Community Bank Index Fund $29 0.60%(1)
​(1)
Annualized.
KEY FUND STATISTICS (As of June 30, 2024)
Fund net assets $57,521,244%
Total number of portfolio holdings $128%
Portfolio turnover rate $3%
WHAT DID THE FUND INVEST IN? (As of June 30, 2024)
The tables below show the investment makeup of the Fund, representing the percentage of total investments of the Fund.
Top Ten Holdings
Commerce Bancshares, Inc. 4.4%
Wintrust Financial Corp. 3.7%
Bank OZK 2.8%
United Bankshares, Inc. 2.7%
First Financial Bankshares, Inc. 2.6%
Hancock Whitney Corp. 2.5%
UMB Financial Corp. 2.5%
International Bancshares Corp. 2.2%
TFS Financial Corp. 2.2%
Ameris Bancorp 2.1%
Industry Allocation
Graphical Representation - Allocation 2 Chart
Any amount shown as 0.0% represents less than 0.1%.
WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
Visit www.ftportfolios.com/fund-documents/etf/QABA to view additional information about the Fund such as the prospectus, financial information, Fund holdings and proxy voting information. You may also request this information by contacting us at 1-800-621-1675 or info@ftportfolios.com.
OTHER INFORMATION
Nasdaq®, Nasdaq OMX®, OMX®, American Bankers Association®, ABA® and Nasdaq OMX® ABA Community BankTM Index (the “Index”) are registered trademarks and service marks of Nasdaq, Inc. and American Bankers Associations, respectively (together with its affiliates hereinafter referred to as the “Corporations”) and are licensed for use by First Trust. The Fund has not been passed on by the Corporations as to its legality or suitability. The Fund is not issued, endorsed, sold or promoted by the Corporations. THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE FUND.
First Trust Dividend StrengthTM ETF
FTDS | NASDAQ, INC.
SEMI-ANNUAL SHAREHOLDER REPORT | June 30, 2024
TSR - First Trust Fund Logo
This semi-annual shareholder report contains important information about the First Trust Dividend StrengthTM ETF (the “Fund”) for the period of January 1, 2024 to June 30, 2024 (the “Period”). You can find additional information about the Fund at www.ftportfolios.com/fund-documents/etf/FTDS. You can also request this information by contacting us at 1-800-621-1675 or info@ftportfolios.com.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS?
(Based on a hypothetical $10,000 investment)
Fund Costs of a $10,000 investment Costs paid as a percentage
of a $10,000 investment
First Trust Dividend StrengthTM ETF $36 0.70%(1)
​(1)
Annualized.
KEY FUND STATISTICS (As of June 30, 2024)
Fund net assets $21,808,115%
Total number of portfolio holdings $51%
Portfolio turnover rate $57%
WHAT DID THE FUND INVEST IN? (As of June 30, 2024)
The tables below show the investment makeup of the Fund, representing the percentage of total investments of the Fund.
Top Ten Holdings
QUALCOMM, Inc. 2.5%
Garmin Ltd. 2.3%
Synovus Financial Corp. 2.3%
Microchip Technology, Inc. 2.2%
Equitable Holdings, Inc. 2.2%
Stifel Financial Corp. 2.2%
Skyworks Solutions, Inc. 2.2%
Dick’s Sporting Goods, Inc. 2.2%
Honeywell International, Inc. 2.2%
Zions Bancorp N.A. 2.2%
Sector Allocation
Graphical Representation - Allocation 2 Chart
WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
Visit www.ftportfolios.com/fund-documents/etf/FTDS to view additional information about the Fund such as the prospectus, financial information, Fund holdings and proxy voting information. You may also request this information by contacting us at 1-800-621-1675 or info@ftportfolios.com.
OTHER INFORMATION
Nasdaq® and The Dividend StrengthTM Index (the “Index”) are registered trademarks and service marks of Nasdaq, Inc. (together with its affiliates hereinafter referred to as the “Corporations”) and are licensed for use by First Trust. The Fund has not been passed on by the Corporations as to its legality or suitability. The Fund is not issued, endorsed, sold or promoted by the Corporations. THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE FUND.
First Trust Dow 30 Equal Weight ETF
EDOW | NYSE ARCA, INC.
SEMI-ANNUAL SHAREHOLDER REPORT | June 30, 2024
TSR - First Trust Fund Logo
This semi-annual shareholder report contains important information about the First Trust Dow 30 Equal Weight ETF (the “Fund”) for the period of January 1, 2024 to June 30, 2024 (the “Period”). You can find additional information about the Fund at www.ftportfolios.com/fund-documents/etf/EDOW. You can also request this information by contacting us at 1-800-621-1675 or info@ftportfolios.com.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS?
(Based on a hypothetical $10,000 investment)
Fund Costs of a $10,000 investment Costs paid as a percentage
of a $10,000 investment
First Trust Dow 30 Equal Weight ETF $25 0.50%(1)
​(1)
Annualized.
KEY FUND STATISTICS (As of June 30, 2024)
Fund net assets $227,943,952%
Total number of portfolio holdings $31%
Portfolio turnover rate $12%
WHAT DID THE FUND INVEST IN? (As of June 30, 2024)
The tables below show the investment makeup of the Fund, representing the percentage of total investments of the Fund.
Top Ten Holdings
Salesforce, Inc. 3.7%
Amazon.com, Inc. 3.5%
Amgen, Inc. 3.5%
JPMorgan Chase & Co. 3.4%
Cisco Systems, Inc. 3.4%
Verizon Communications, Inc. 3.4%
Caterpillar, Inc. 3.4%
American Express Co. 3.4%
Boeing (The) Co. 3.4%
Chevron Corp. 3.4%
Sector Allocation
Graphical Representation - Allocation 2 Chart
Any amount shown as 0.0% represents less than 0.1%.
WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
Visit www.ftportfolios.com/fund-documents/etf/EDOW to view additional information about the Fund such as the prospectus, financial information, Fund holdings and proxy voting information. You may also request this information by contacting us at 1-800-621-1675 or info@ftportfolios.com.
OTHER INFORMATION
Dow Jones Industrial Average® Equal Weight Index (“Index”) is a product of S&P Dow Jones Indices, LLC or its affiliates (“SPDJI”) and has been licensed for use by First Trust. S&P® is a registered trademark of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by First Trust. The Fund is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P or their respective affiliates and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the Index.
First Trust Lunt U.S. Factor Rotation ETF
FCTR | CBOE BZX EXCHANGE, INC.
SEMI-ANNUAL SHAREHOLDER REPORT | June 30, 2024
TSR - First Trust Fund Logo
This semi-annual shareholder report contains important information about the First Trust Lunt U.S. Factor Rotation ETF (the “Fund”) for the period of January 1, 2024 to June 30, 2024 (the “Period”). You can find additional information about the Fund at www.ftportfolios.com/fund-documents/etf/FCTR. You can also request this information by contacting us at 1-800-621-1675 or info@ftportfolios.com.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS?
(Based on a hypothetical $10,000 investment)
Fund Costs of a $10,000 investment Costs paid as a percentage
of a $10,000 investment
First Trust Lunt U.S. Factor Rotation ETF $34 0.65%(1)
​(1)
Annualized.
KEY FUND STATISTICS (As of June 30, 2024)
Fund net assets $71,394,353%
Total number of portfolio holdings $171%
Portfolio turnover rate $220%
WHAT DID THE FUND INVEST IN? (As of June 30, 2024)
The tables below show the investment makeup of the Fund, representing the percentage of total investments of the Fund.
Top Ten Holdings
Vertiv Holdings Co., Class A 2.1%
NVIDIA Corp. 1.6%
Coinbase Global, Inc., Class A 1.6%
Vistra Corp. 1.5%
Paychex, Inc. 1.4%
Illinois Tool Works, Inc. 1.3%
Brown & Brown, Inc. 1.3%
Colgate-Palmolive Co. 1.3%
Sysco Corp. 1.2%
Procter & Gamble (The) Co. 1.2%
Sector Allocation
Graphical Representation - Allocation 2 Chart
WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
Visit www.ftportfolios.com/fund-documents/etf/FCTR to view additional information about the Fund such as the prospectus, financial information, Fund holdings and proxy voting information. You may also request this information by contacting us at 1-800-621-1675 or info@ftportfolios.com.
OTHER INFORMATION
Lunt Capital Management, Inc. (“Lunt”) and Lunt Capital Large Cap Factor Rotation Index (“Lunt Index”) are trademarks of Lunt and have been licensed for use for certain purposes by First Trust. The First Trust Lunt U.S. Factor Rotation ETF is based on the Lunt Index and is not sponsored, endorsed, sold or promoted by Lunt, and Lunt makes no representation regarding the advisability of trading in such fund. Lunt has contracted with Nasdaq, Inc. to calculate and maintain the Lunt Index. The Fund is not sponsored, endorsed, sold or promoted by Nasdaq, Inc. or its affiliates (Nasdaq, with its affiliates, hereinafter referred to as the “Corporations”). The Corporations have not passed on the legality or suitability of, or the accuracy or adequacy of descriptions and disclosures relating to, the Fund. The Corporations make no representation or warranty, express or implied to the owners of the Fund or any member of the public regarding the advisability of investing in securities generally or in the Fund particularly, or the ability of the Lunt Index to track general stock performance.
First Trust S&P 500
Diversified Free Cash Flow ETF
FCFY | NYSE ARCA, INC.
SEMI-ANNUAL SHAREHOLDER REPORT | June 30, 2024
TSR - First Trust Fund Logo
This semi-annual shareholder report contains important information about the First Trust S&P 500 Diversified Free Cash Flow ETF (the “Fund”) for the period of January 1, 2024 to June 30, 2024 (the “Period”). You can find additional information about the Fund at www.ftportfolios.com/fund-documents/etf/FCFY. You can also request this information by contacting us at 1-800-621-1675 or info@ftportfolios.com.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS?
(Based on a hypothetical $10,000 investment)
Fund Costs of a $10,000 investment Costs paid as a percentage
of a $10,000 investment
First Trust S&P 500 Diversified Free Cash Flow ETF $30 0.60%(1)
​(1)
Annualized.
KEY FUND STATISTICS (As of June 30, 2024)
Fund net assets $1,129,211%
Total number of portfolio holdings $101%
Portfolio turnover rate $30%
WHAT DID THE FUND INVEST IN? (As of June 30, 2024)
The tables below show the investment makeup of the Fund, representing the percentage of total investments of the Fund.
Top Ten Holdings
HP, Inc. 3.7%
Skyworks Solutions, Inc. 3.6%
Hewlett Packard Enterprise Co. 3.5%
Warner Bros. Discovery, Inc. 2.6%
Cisco Systems, Inc. 2.6%
AT&T, Inc. 2.5%
NetApp, Inc. 2.4%
Synchrony Financial 2.3%
QUALCOMM, Inc. 2.1%
Electronic Arts, Inc. 2.1%
Sector Allocation
Graphical Representation - Allocation 2 Chart
WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
Visit www.ftportfolios.com/fund-documents/etf/FCFY to view additional information about the Fund such as the prospectus, financial information, Fund holdings and proxy voting information. You may also request this information by contacting us at 1-800-621-1675 or info@ftportfolios.com.
OTHER INFORMATION
S&P 500® Sector-Neutral FCF Index (“Index”) is a product of S&P Dow Jones Indices, LLC or its affiliates (“SPDJI”) and has been licensed for use by First Trust. S&P® is a registered trademark of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by First Trust. The Fund is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P or their respective affiliates and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the Index.
FT Vest Gold Strategy Quarterly Buffer ETF
BGLD | CBOE BZX EXCHANGE, INC.
SEMI-ANNUAL SHAREHOLDER REPORT | June 30, 2024
TSR - First Trust Fund Logo
This semi-annual shareholder report contains important information about the FT Vest Gold Strategy Quarterly Buffer ETF (the “Fund”) for the period of January 1, 2024 to June 30, 2024 (the “Period”). You can find additional information about the Fund at www.ftportfolios.com/fund-documents/etf/BGLD. You can also request this information by contacting us at 1-800-621-1675 or info@ftportfolios.com.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS?
(Based on a hypothetical $10,000 investment)
Fund Costs of a $10,000 investment Costs paid as a percentage
of a $10,000 investment
FT Vest Gold Strategy Quarterly Buffer ETF $47 0.90%(1)
​(1)
Annualized.
KEY FUND STATISTICS (As of June 30, 2024)
Fund net assets $29,421,473%
Total number of portfolio holdings $5%
Portfolio turnover rate $0%
WHAT DID THE FUND INVEST IN? (As of June 30, 2024)
The table below shows the investment makeup of the Fund, representing the percentage of net assets of the Fund.
Fund Allocation
U.S. Treasury Bills 93.8%
Money Market Funds 0.6%
Purchased Options 6.0%
Written Options (0.4%)
Net Other Assets and Liabilities 0.0%
Total 100.0%
Any amount shown as 0.0% represents less than 0.1%.
WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
Visit www.ftportfolios.com/fund-documents/etf/BGLD to view additional information about the Fund such as the prospectus, financial information, Fund holdings and proxy voting information. You may also request this information by contacting us at 1-800-621-1675 or info@ftportfolios.com.
OTHER INFORMATION
The Fund is not sponsored, endorsed, sold or promoted by SPDR® Gold Trust and World Gold Trust Services, LLC, (together with their affiliates hereinafter referred to as the “Corporations”). The Corporations have not passed on the legality or suitability of, or the accuracy or adequacy of, descriptions and disclosures relating to the Fund or the FLEX Options. The Corporations make no representations or warranties, express or implied, regarding the advisability of investing in the Fund or the FLEX Options or results to be obtained by the Fund or the FLEX Options, shareholders or any other person or entity from use of the Underlying ETF. The Corporations have no liability in connection with the management, administration, marketing or trading of the Fund or the FLEX Options.
FT Vest Gold Strategy Target Income ETF®
IGLD | CBOE BZX EXCHANGE, INC.
SEMI-ANNUAL SHAREHOLDER REPORT | June 30, 2024
TSR - First Trust Fund Logo
This semi-annual shareholder report contains important information about the FT Vest Gold Strategy Target Income ETF® (the “Fund”) for the period of January 1, 2024 to June 30, 2024 (the “Period”). You can find additional information about the Fund at www.ftportfolios.com/fund-documents/etf/IGLD. You can also request this information by contacting us at 1-800-621-1675 or info@ftportfolios.com.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS?
(Based on a hypothetical $10,000 investment)
Fund Costs of a $10,000 investment Costs paid as a percentage
of a $10,000 investment
FT Vest Gold Strategy Target Income ETF® $44 0.85%(1)
​(1)
Annualized.
KEY FUND STATISTICS (As of June 30, 2024)
Fund net assets $98,084,248%
Total number of portfolio holdings $5%
Portfolio turnover rate $0%
WHAT DID THE FUND INVEST IN? (As of June 30, 2024)
The table below shows the investment makeup of the Fund, representing the percentage of net assets of the Fund.
Fund Allocation
U.S. Treasury Bills 128.5%
Money Market Funds 0.1%
Purchased Options 0.2%
Written Options (29.9%)
Net Other Assets and Liabilities 1.1%
Total 100.0%
WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
Visit www.ftportfolios.com/fund-documents/etf/IGLD to view additional information about the Fund such as the prospectus, financial information, Fund holdings and proxy voting information. You may also request this information by contacting us at 1-800-621-1675 or info@ftportfolios.com.
OTHER INFORMATION
The Fund is not sponsored, endorsed, sold or promoted by SPDR® Gold Trust and World Gold Trust Services, LLC, (together with their affiliates hereinafter referred to as the “Corporations”). The Corporations have not passed on the legality or suitability of, or the accuracy or adequacy of, descriptions and disclosures relating to the Fund or the FLEX Options. The Corporations make no representations or warranties, express or implied, regarding the advisability of investing in the Fund or the FLEX Options or results to be obtained by the Fund or the FLEX Options, shareholders or any other person or entity from use of the Underlying ETF. The Corporations have no liability in connection with the management, administration, marketing or trading of the Fund or the FLEX Options.
 
 

 

(b)       Not applicable.

Item 2. Code of Ethics.

The First Trust Exchange-Traded Fund (“Registrant”) has adopted a code of ethics that applies to the Registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions (“Code of Ethics”). During the period covered by this Form N-CSR, there were no substantive amendments to the Code of Ethics and there were no waivers from the Code of Ethics granted to the Registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions.

A copy of the currently effective Code of Ethics will be filed with the Registrant’s annual Form N-CSR.

Item 3. Audit Committee Financial Expert.

Not applicable to semi-annual reports on Form N-CSR.

Item 4. Principal Accountant Fees and Services.

Not applicable to semi-annual reports on Form N-CSR.

Item 5. Audit Committee of Listed Registrants.

(a) Not applicable to semi-annual reports on Form N-CSR.
(b) Not applicable to the Registrant.

Item 6. Investments.

(a) The Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period is included in the Financial Statements and Other Information filed under Item 7 of this Form N-CSR.
(b) Not applicable to the Registrant.

Item 7. Financial Statements and Financial Highlights for Open-End Management Investment Companies.

(a) Following is a copy of the semi-annual financial statements required, and for the periods specified, by Regulation S-X.

 

 
 
 
Semi-Annual Financial
Statements and
Other Information
For the Six Months Ended
June 30, 2024
 
First Trust Exchange-Traded Fund
Book 1
 
First Trust Dow Jones Select MicroCap Index Fund (FDM)
First Trust Morningstar Dividend Leaders Index Fund (FDL)
First Trust US Equity Opportunities ETF (FPX)
First Trust NYSE® Arca® Biotechnology Index Fund (FBT)
First Trust Dow Jones Internet Index Fund (FDN)
First Trust Capital Strength® ETF (FTCS)
First Trust Value Line® Dividend Index Fund (FVD)
First Trust Growth StrengthTM ETF (FTGS)
First Trust Indxx Aerospace & Defense ETF (MISL)
First Trust Bloomberg Inflation Sensitive Equity ETF (FTIF)
Table of Contents 
First Trust Exchange-Traded Fund
Semi-Annual Financial Statements and Other Information
June 30, 2024 
Performance and Risk Disclosure
There is no assurance that any series of First Trust Exchange-Traded Fund (the “Trust”) described in this report (each such series is referred to as a “Fund” and collectively, as the “Funds”) will achieve its investment objective. Each Fund is subject to market risk, which is the possibility that the market values of securities owned by the Fund will decline and that the value of the Fund’s shares may therefore be less than what you paid for them. Accordingly, you can lose money by investing in a Fund.
Performance data quoted represents past performance, which is no guarantee of future results, and current performance may be lower or higher than the figures shown. For the most recent month-end performance figures, please visit www.ftportfolios.com or speak with your financial advisor. Investment returns, net asset value and share price will fluctuate and Fund shares, when sold, may be worth more or less than their original cost.
First Trust Advisors L.P., the Funds’ advisor, may also periodically provide additional information on Fund performance on each Fund’s webpage at www.ftportfolios.com.
How to Read This Report
This report contains information that may help you evaluate your investment. It includes details about each Fund and presents data that provides insight into each Fund’s performance and investment approach.
The material risks of investing in each Fund are spelled out in its prospectus, statement of additional information, and other Fund regulatory filings.
First Trust Dow Jones Select MicroCap Index Fund (FDM)
Portfolio of Investments
June 30, 2024 (Unaudited)
 
Shares
Description
Value
COMMON STOCKS — 99.9%
Aerospace & Defense — 2.0%
38,453
Ducommun, Inc. (a)
$2,232,581
14,758
National Presto Industries, Inc.
1,108,769
 
3,341,350
Air Freight & Logistics —
0.3%
98,136
Radiant Logistics, Inc. (a)
558,394
Banks — 20.4%
49,742
Amalgamated Financial Corp.
1,362,931
42,797
Bar Harbor Bankshares
1,150,383
29,169
BayCom Corp.
593,589
66,592
Business First Bancshares, Inc.
1,449,042
37,607
Capital City Bank Group, Inc.
1,069,543
30,539
Coastal Financial Corp. (a)
1,409,069
120,492
CrossFirst Bankshares, Inc. (a)
1,689,298
17,966
Esquire Financial Holdings, Inc.
855,182
29,874
First Financial Corp.
1,101,753
44,327
Five Star Bancorp
1,048,334
19,466
FS Bancorp, Inc.
709,536
24,239
Great Southern Bancorp, Inc.
1,347,931
36,392
HBT Financial, Inc.
743,125
172,108
Heritage Commerce Corp.
1,497,340
43,794
HomeTrust Bancshares, Inc.
1,315,134
58,727
Independent Bank Corp.
1,585,629
181,046
Kearny Financial Corp.
1,113,433
17,213
MainStreet Bancshares, Inc.
305,186
41,671
Mercantile Bank Corp.
1,690,592
40,282
MidWestOne Financial Group,
Inc.
905,942
33,309
MVB Financial Corp.
620,880
18,315
Northeast Bank
1,114,651
39,428
Northeast Community Bancorp,
Inc.
702,607
15,453
Northrim BanCorp, Inc.
890,711
18,582
Oak Valley Bancorp
463,992
113,402
Old Second Bancorp, Inc.
1,679,484
12,080
Orange County Bancorp, Inc.
638,790
13,750
Plumas Bancorp
494,725
36,244
Sierra Bancorp
811,141
33,215
South Plains Financial, Inc.
896,805
26,799
Southern Missouri Bancorp, Inc.
1,206,223
22,542
Timberland Bancorp, Inc.
610,663
82,244
Univest Financial Corp.
1,877,630
 
34,951,274
Biotechnology — 1.9%
136,023
Cullinan Therapeutics, Inc. (a)
2,372,241
120,734
Voyager Therapeutics, Inc. (a)
955,006
 
3,327,247
Shares
Description
Value
 
Capital Markets — 1.2%
104,092
Bridge Investment Group
Holdings, Inc., Class A
$772,363
7,791
Diamond Hill Investment Group,
Inc.
1,096,583
87,080
Heritage Global, Inc. (a)
214,217
 
2,083,163
Chemicals — 0.9%
73,124
American Vanguard Corp.
628,866
20,773
Core Molding Technologies,
Inc. (a)
331,122
26,470
Intrepid Potash, Inc. (a)
620,192
 
1,580,180
Commercial Services &
Supplies — 5.8%
82,453
CECO Environmental Corp. (a)
2,378,769
62,520
Liquidity Services, Inc. (a)
1,249,150
88,020
Quad/Graphics, Inc.
479,709
59,362
Viad Corp. (a)
2,018,308
43,972
VSE Corp.
3,881,848
 
10,007,784
Communications Equipment
— 0.7%
35,303
Aviat Networks, Inc. (a)
1,012,843
34,486
Cambium Networks Corp. (a)
96,216
 
1,109,059
Construction & Engineering
— 1.5%
28,278
Limbach Holdings, Inc. (a)
1,609,867
27,858
Northwest Pipe Co. (a)
946,336
 
2,556,203
Consumer Finance — 1.5%
13,299
Atlanticus Holdings Corp. (a)
374,766
146,023
EZCORP, Inc., Class A (a)
1,528,861
25,302
Regional Management Corp.
727,179
 
2,630,806
Containers & Packaging —
0.8%
104,471
Myers Industries, Inc.
1,397,822
Diversified Consumer Services
— 1.2%
37,922
Carriage Services, Inc.
1,017,826
80,396
Lincoln Educational Services
Corp. (a)
953,497
 
1,971,323
Diversified REITs — 0.6%
44,926
One Liberty Properties, Inc.
1,054,862
Diversified Telecommunication
Services — 1.2%
56,201
IDT Corp., Class B
2,018,740
See Notes to Financial Statements
Page 1
First Trust Dow Jones Select MicroCap Index Fund (FDM)
Portfolio of Investments (Continued)
June 30, 2024 (Unaudited)
Shares
Description
Value
COMMON STOCKS (Continued)
Electric Utilities — 0.5%
60,315
Genie Energy Ltd., Class B
$881,805
Electrical Equipment — 3.4%
41,007
Allient, Inc.
1,036,247
76,935
LSI Industries, Inc.
1,113,249
25,935
Powell Industries, Inc.
3,719,079
 
5,868,575
Electronic Equipment,
Instruments & Components
— 4.8%
27,721
Bel Fuse, Inc., Class B
1,808,518
10,860
Climb Global Solutions, Inc.
682,117
69,873
Kimball Electronics, Inc. (a)
1,535,809
69,424
ScanSource, Inc. (a)
3,076,177
34,646
Vishay Precision Group, Inc. (a)
1,054,624
 
8,157,245
Energy Equipment & Services
— 2.3%
56,143
DMC Global, Inc. (a)
809,582
32,443
Forum Energy Technologies,
Inc. (a)
546,989
39,334
KLX Energy Services Holdings,
Inc. (a)
194,703
64,745
Mammoth Energy Services,
Inc. (a)
212,364
36,647
Ranger Energy Services, Inc.
385,526
81,012
Solaris Oilfield Infrastructure,
Inc., Class A
695,083
331,610
TETRA Technologies, Inc. (a)
1,147,371
 
3,991,618
Entertainment — 0.6%
173,554
Vivid Seats, Inc., Class A (a)
997,935
Financial Services — 1.8%
66,019
NewtekOne, Inc.
829,859
15,799
Onity Group, Inc. (a)
378,860
268,541
UWM Holdings Corp.
1,860,989
 
3,069,708
Health Care Equipment &
Supplies — 0.5%
207,799
OraSure Technologies, Inc. (a)
885,224
Health Care Providers &
Services — 0.7%
345,773
Community Health Systems,
Inc. (a)
1,161,797
Hotels, Restaurants & Leisure
— 2.9%
146,156
Denny’s Corp. (a)
1,037,708
71,652
El Pollo Loco Holdings, Inc. (a)
810,384
69,430
Inspired Entertainment, Inc. (a)
635,284
7,795
Nathan’s Famous, Inc.
528,345
Shares
Description
Value
 
Hotels, Restaurants & Leisure
(Continued)
69,741
ONE Group Hospitality (The),
Inc. (a)
$296,399
68,754
Potbelly Corp. (a)
552,095
24,104
RCI Hospitality Holdings, Inc.
1,049,970
 
4,910,185
Household Durables — 0.4%
29,479
Landsea Homes Corp. (a)
270,912
19,813
Legacy Housing Corp. (a)
454,510
 
725,422
Household Products — 1.1%
26,768
Central Garden & Pet Co. (a)
1,030,568
14,399
Oil-Dri Corp. of America
922,832
 
1,953,400
Insurance — 1.8%
127,067
Ambac Financial Group, Inc. (a)
1,628,999
76,415
Greenlight Capital Re Ltd.,
Class A (a)
1,001,036
54,129
Kingsway Financial Services,
Inc. (a)
446,023
 
3,076,058
Interactive Media & Services
— 0.1%
17,664
Travelzoo (a)
134,070
IT Services — 1.0%
70,603
Hackett Group (The), Inc.
1,533,497
84,774
Information Services Group, Inc.
249,236
 
1,782,733
Leisure Products — 1.1%
18,908
Johnson Outdoors, Inc., Class A
661,402
34,107
Marine Products Corp.
344,481
41,508
MasterCraft Boat Holdings,
Inc. (a)
783,671
 
1,789,554
Machinery — 2.9%
64,886
Douglas Dynamics, Inc.
1,518,332
29,121
Gencor Industries, Inc. (a)
563,200
29,990
Mayville Engineering Co.,
Inc. (a)
499,633
32,227
Miller Industries, Inc.
1,773,130
21,813
Park-Ohio Holdings Corp.
564,739
 
4,919,034
Marine Transportation —
1.9%
120,118
Genco Shipping & Trading Ltd.
2,559,715
97,387
Pangaea Logistics Solutions Ltd.
762,540
 
3,322,255
See Notes to Financial Statements
Page 2
First Trust Dow Jones Select MicroCap Index Fund (FDM)
Portfolio of Investments (Continued)
June 30, 2024 (Unaudited)
Shares
Description
Value
COMMON STOCKS (Continued)
Media — 0.4%
173,886
Entravision Communications
Corp., Class A
$352,989
35,372
Townsquare Media, Inc.,
Class A
387,677
 
740,666
Metals & Mining — 4.8%
132,175
Gatos Silver, Inc. (a)
1,379,907
35,674
Haynes International, Inc.
2,094,064
27,526
Olympic Steel, Inc.
1,233,990
100,735
Ramaco Resources, Inc., Class A
1,254,151
236,222
SunCoke Energy, Inc.
2,314,976
 
8,277,088
Mortgage REITs — 0.3%
45,292
AFC Gamma, Inc.
552,562
Oil, Gas & Consumable Fuels
— 9.0%
102,392
Amplify Energy Corp. (a)
694,218
192,393
Berry Corp.
1,242,859
37,346
Centrus Energy Corp.,
Class A (a)
1,596,541
291,392
Crescent Energy, Inc., Class A
3,452,995
83,535
Evolution Petroleum Corp.
440,229
73,775
FutureFuel Corp.
378,466
76,985
Hallador Energy Co. (a)
598,173
149,763
Overseas Shipholding Group,
Inc., Class A
1,269,990
42,787
REX American Resources
Corp. (a)
1,950,659
122,350
Ring Energy, Inc. (a)
206,772
88,533
SandRidge Energy, Inc.
1,144,732
290,676
VAALCO Energy, Inc.
1,822,539
272,328
W&T Offshore, Inc.
582,782
 
15,380,955
Paper & Forest Products —
1.3%
46,859
Clearwater Paper Corp. (a)
2,271,256
Pharmaceuticals — 1.6%
267,269
Assertio Holdings, Inc. (a)
331,414
162,803
Omeros Corp. (a)
660,980
57,143
Phibro Animal Health Corp.,
Class A
958,288
109,907
SIGA Technologies, Inc.
834,194
 
2,784,876
Professional Services — 3.5%
73,523
Barrett Business Services, Inc.
2,409,349
19,432
CRA International, Inc.
3,346,579
15,466
RCM Technologies, Inc. (a)
289,523
 
6,045,451
Shares
Description
Value
 
Real Estate Management &
Development — 0.5%
40,663
RMR Group (The), Inc., Class A
$918,984
Retail REITs — 1.0%
133,352
Whitestone REIT
1,774,915
Semiconductors &
Semiconductor Equipment
— 2.0%
134,496
ACM Research, Inc., Class A (a)
3,101,478
32,253
inTEST Corp. (a)
318,659
 
3,420,137
Software — 0.2%
16,968
CoreCard Corp. (a)
247,563
Specialty Retail — 2.8%
115,183
Arhaus, Inc.
1,951,200
61,644
Big 5 Sporting Goods Corp.
182,467
34,893
Build-A-Bear Workshop, Inc.
881,746
37,411
Haverty Furniture Cos., Inc.
946,124
29,521
OneWater Marine, Inc.,
Class A (a)
813,894
 
4,775,431
Technology Hardware, Storage
& Peripherals — 0.9%
70,919
CompoSecure, Inc., Class A
482,249
193,546
Eastman Kodak Co. (a)
1,041,278
 
1,523,527
Trading Companies &
Distributors — 2.1%
36,697
DXP Enterprises, Inc. (a)
1,682,190
109,968
Hudson Technologies, Inc. (a)
966,619
56,221
Titan Machinery, Inc. (a)
893,914
 
3,542,723
Water Utilities — 1.2%
26,422
Artesian Resources Corp.,
Class A
928,997
42,250
Consolidated Water Co., Ltd.
1,121,315
 
2,050,312
Wireless Telecommunication
Services — 0.5%
56,884
Spok Holdings, Inc.
842,452
Total Common Stocks
171,363,723
(Cost $162,624,841)
See Notes to Financial Statements
Page 3
First Trust Dow Jones Select MicroCap Index Fund (FDM)
Portfolio of Investments (Continued)
June 30, 2024 (Unaudited)
Shares
Description
Value
MONEY MARKET FUNDS — 0.1%
154,759
Dreyfus Government Cash
Management Fund,
Institutional Shares -
5.19% (b)
$154,759
(Cost $154,759)
Total Investments — 100.0%
171,518,482
(Cost $162,779,600)
Net Other Assets and
Liabilities — (0.0)%
(39,438
)
Net Assets — 100.0%
$171,479,044
 
(a)
Non-income producing security.
(b)
Rate shown reflects yield as of June 30, 2024.
 
Abbreviations throughout the Portfolio of Investments:
REITs
–  Real Estate Investment Trusts
Valuation Inputs
A summary of the inputs used to value the Fund’s investments as of June 30, 2024 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements):
 
 
Total
Value at
6/30/2024
Level 1
Quoted
Prices
Level 2
Significant
Observable
Inputs
Level 3
Significant
Unobservable
Inputs
Common Stocks*
$ 171,363,723
$ 171,363,723
$ —
$ —
Money Market
Funds
 154,759
 154,759
 —
 —
Total Investments
$171,518,482
$171,518,482
$—
$—
 
*
See Portfolio of Investments for industry breakout.
See Notes to Financial Statements
Page 4
First Trust Morningstar Dividend Leaders Index Fund (FDL)
Portfolio of Investments
June 30, 2024 (Unaudited)
 
Shares
Description
Value
COMMON STOCKS — 99.7%
Air Freight & Logistics —
3.4%
967,228
United Parcel Service, Inc.,
Class B
$132,365,152
Automobile Components —
0.1%
28,184
LCI Industries
2,913,662
Automobiles — 1.8%
5,413,781
Ford Motor Co.
67,888,814
Banks — 11.2%
179,238
Associated Banc-Corp.
3,790,884
120,497
Bank OZK
4,940,377
73,431
Cathay General Bancorp
2,769,817
601,467
Citizens Financial Group, Inc.
21,670,856
433,036
Columbia Banking System, Inc.
8,613,086
213,356
Comerica, Inc.
10,889,690
731,648
Fifth Third Bancorp
26,697,836
180,850
First Hawaiian, Inc.
3,754,446
600,295
First Horizon Corp.
9,466,652
188,603
First Interstate BancSystem, Inc.,
Class A
5,237,505
1,994,563
Huntington Bancshares, Inc.
26,288,340
1,549,999
KeyCorp
22,025,486
448,059
PNC Financial Services Group
(The), Inc.
69,664,213
1,307,062
Regions Financial Corp.
26,193,523
164,019
Synovus Financial Corp.
6,591,924
2,088,992
Truist Financial Corp.
81,157,339
2,151,459
U.S. Bancorp
85,412,922
172,023
United Bankshares, Inc.
5,580,426
773,432
Valley National Bancorp
5,398,555
158,572
Zions Bancorp N.A.
6,877,268
 
433,021,145
Biotechnology — 11.0%
1,828,736
AbbVie, Inc.
313,664,798
1,655,116
Gilead Sciences, Inc.
113,557,509
 
427,222,307
Capital Markets — 2.0%
114,893
Artisan Partners Asset
Management, Inc., Class A
4,741,634
88,752
Federated Hermes, Inc.
2,918,166
435,682
Franklin Resources, Inc.
9,737,493
169,333
Janus Henderson Group PLC
5,708,215
319,176
State Street Corp.
23,619,024
257,965
T. Rowe Price Group, Inc.
29,745,944
 
76,470,476
Chemicals — 2.6%
169,748
Chemours (The) Co.
3,831,212
967,812
Dow, Inc.
51,342,427
139,833
FMC Corp.
8,047,389
Shares
Description
Value
 
Chemicals (Continued)
373,956
LyondellBasell Industries N.V.,
Class A
$35,772,631
46,289
Scotts Miracle-Gro (The) Co.
3,011,562
 
102,005,221
Consumer Finance — 0.3%
269,744
OneMain Holdings, Inc.
13,079,887
Containers & Packaging —
0.0%
3,754
Greif, Inc., Class B
234,587
Diversified Telecommunication
Services — 8.3%
7,802,349
Verizon Communications, Inc.
321,768,873
Electric Utilities — 10.1%
71,287
ALLETE, Inc.
4,444,745
272,441
Alliant Energy Corp.
13,867,247
583,938
American Electric Power Co.,
Inc.
51,234,720
98,594
Avangrid, Inc.
3,503,045
865,380
Duke Energy Corp.
86,737,037
451,483
Edison International
32,420,994
246,304
Entergy Corp.
26,354,528
308,083
Evergy, Inc.
16,319,157
470,341
Eversource Energy
26,673,038
1,208,172
Exelon Corp.
41,814,833
628,188
FirstEnergy Corp.
24,040,755
262,541
OGE Energy Corp.
9,372,714
144,479
Pinnacle West Capital Corp.
11,035,306
103,066
PNM Resources, Inc.
3,809,319
126,904
Portland General Electric Co.
5,487,329
612,240
Xcel Energy, Inc.
32,699,738
 
389,814,505
Financial Services — 0.2%
695,112
Western Union (The) Co.
8,494,269
Food Products — 2.3%
645,207
Conagra Brands, Inc.
18,336,783
225,632
Flowers Foods, Inc.
5,009,031
113,253
J.M. Smucker (The) Co.
12,349,107
278,615
Kellanova
16,070,513
1,205,855
Kraft Heinz (The) Co.
38,852,648
 
90,618,082
Gas Utilities — 0.6%
107,971
New Jersey Resources Corp.
4,614,680
62,209
ONE Gas, Inc.
3,972,045
81,849
Spire, Inc.
4,970,690
383,582
UGI Corp.
8,784,028
 
22,341,443
Health Care Providers &
Services — 2.4%
1,543,004
CVS Health Corp.
91,129,816
See Notes to Financial Statements
Page 5
First Trust Morningstar Dividend Leaders Index Fund (FDL)
Portfolio of Investments (Continued)
June 30, 2024 (Unaudited)
Shares
Description
Value
COMMON STOCKS (Continued)
Hotels, Restaurants & Leisure
— 0.5%
84,839
Travel + Leisure Co.
$3,816,058
52,120
Vail Resorts, Inc.
9,388,376
272,419
Wendy’s (The) Co.
4,620,226
 
17,824,660
Household Durables — 0.3%
113,057
Whirlpool Corp.
11,554,425
Household Products — 1.6%
126,054
Clorox (The) Co.
17,202,589
337,810
Kimberly-Clark Corp.
46,685,342
 
63,887,931
Insurance — 2.1%
278,635
Fidelity National Financial, Inc.
13,770,142
114,432
First American Financial Corp.
6,173,606
266,284
Lincoln National Corp.
8,281,433
452,643
Prudential Financial, Inc.
53,045,233
 
81,270,414
IT Services — 4.5%
1,007,497
International Business Machines
Corp.
174,246,606
Leisure Products — 0.3%
174,723
Hasbro, Inc.
10,221,295
Machinery — 0.6%
1,150,185
CNH Industrial N.V.
11,651,374
157,987
Stanley Black & Decker, Inc.
12,621,581
 
24,272,955
Media — 0.6%
456,832
Interpublic Group of (The) Cos.,
Inc.
13,289,243
37,773
Nexstar Media Group, Inc.
6,270,696
705,411
Sirius XM Holdings, Inc.
1,996,313
 
21,556,252
Multi-Utilities — 1.6%
282,163
Ameren Corp.
20,064,611
118,370
Avista Corp.
4,096,786
93,898
Black Hills Corp.
5,106,173
82,480
Northwestern Energy Group,
Inc.
4,130,599
368,231
WEC Energy Group, Inc.
28,891,404
 
62,289,573
Oil, Gas & Consumable Fuels
— 13.0%
2,161,973
Chevron Corp.
338,175,817
192,999
Diamondback Energy, Inc.
38,636,470
3,153,952
Kinder Morgan, Inc.
62,669,026
797,338
ONEOK, Inc.
65,022,914
 
504,504,227
Shares
Description
Value
 
Pharmaceuticals — 7.0%
148,953
Perrigo Co. PLC
$3,825,113
9,550,726
Pfizer, Inc.
267,229,314
 
271,054,427
Professional Services — 0.1%
53,285
ManpowerGroup, Inc.
3,719,293
Specialty Retail — 0.5%
236,580
Best Buy Co., Inc.
19,941,328
Textiles, Apparel & Luxury
Goods — 0.1%
50,134
Carter’s, Inc.
3,106,804
Tobacco — 10.5%
4,072,977
Altria Group, Inc.
185,524,102
2,179,924
Philip Morris International, Inc.
220,891,699
 
406,415,801
Trading Companies &
Distributors — 0.1%
47,726
MSC Industrial Direct Co., Inc.,
Class A
3,785,149
Total Common Stocks
3,859,019,379
(Cost $3,757,091,550)
MONEY MARKET FUNDS — 0.0%
956,054
Dreyfus Government Cash
Management Fund,
Institutional Shares -
5.19% (a)
956,054
(Cost $956,054)
Total Investments — 99.7%
3,859,975,433
(Cost $3,758,047,604)
Net Other Assets and
Liabilities — 0.3%
10,849,267
Net Assets — 100.0%
$3,870,824,700
 
(a)
Rate shown reflects yield as of June 30, 2024.
See Notes to Financial Statements
Page 6
First Trust Morningstar Dividend Leaders Index Fund (FDL)
Portfolio of Investments (Continued)
June 30, 2024 (Unaudited)
Valuation Inputs
A summary of the inputs used to value the Fund’s investments as of June 30, 2024 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements):
 
 
Total
Value at
6/30/2024
Level 1
Quoted
Prices
Level 2
Significant
Observable
Inputs
Level 3
Significant
Unobservable
Inputs
Common
Stocks*
$ 3,859,019,379
$ 3,859,019,379
$ —
$ —
Money Market
Funds
 956,054
 956,054
 —
 —
Total
Investments
$3,859,975,433
$3,859,975,433
$—
$—
 
*
See Portfolio of Investments for industry breakout.
See Notes to Financial Statements
Page 7
First Trust US Equity Opportunities ETF (FPX)
Portfolio of Investments
June 30, 2024 (Unaudited)
 
Shares
Description
Value
COMMON STOCKS — 99.8%
Aerospace & Defense — 1.3%
365,744
Leonardo DRS, Inc. (a)
$9,330,129
Automobile Components —
0.1%
12,699
Phinia, Inc.
499,833
Beverages — 0.1%
31,514
Vita Coco (The) Co., Inc. (a)
877,665
Biotechnology — 11.7%
14,873
Arcellx, Inc. (a)
820,841
27,566
Dyne Therapeutics, Inc. (a)
972,804
10,031
Keros Therapeutics, Inc. (a)
458,417
17,056
Kymera Therapeutics, Inc. (a)
509,121
17,946
Nuvalent, Inc., Class A (a)
1,361,383
61,260
Regeneron Pharmaceuticals,
Inc. (a)
64,386,098
45,864
REVOLUTION Medicines,
Inc. (a)
1,779,982
205,352
Roivant Sciences Ltd. (a)
2,170,571
12,331
United Therapeutics Corp. (a)
3,928,040
75,608
Vaxcyte, Inc. (a)
5,709,160
 
82,096,417
Building Products — 8.0%
161,806
AZEK (The) Co., Inc. (a)
6,816,887
751,397
Carrier Global Corp.
47,398,122
59,726
Hayward Holdings, Inc. (a)
734,630
70,609
Masterbrand, Inc. (a)
1,036,540
 
55,986,179
Capital Markets — 5.2%
41,367
AssetMark Financial Holdings,
Inc. (a)
1,429,230
216,678
Blue Owl Capital Corp.
3,328,174
397,183
Blue Owl Capital, Inc.
7,049,998
47,785
Coinbase Global, Inc.,
Class A (a)
10,619,261
366,451
Robinhood Markets, Inc.,
Class A (a)
8,322,102
30,900
StepStone Group, Inc., Class A
1,418,001
101,399
TPG, Inc.
4,202,989
 
36,369,755
Commercial Services &
Supplies — 1.1%
45,892
ACV Auctions, Inc., Class A (a)
837,529
68,619
Veralto Corp.
6,551,056
 
7,388,585
Construction Materials —
0.5%
47,209
Knife River Corp. (a)
3,311,239
Diversified Consumer Services
— 1.8%
59,936
Duolingo, Inc. (a)
12,506,845
Shares
Description
Value
 
Diversified Telecommunication
Services — 0.1%
72,624
AST SpaceMobile, Inc. (a) (b)
$843,165
Electric Utilities — 3.8%
109,497
Constellation Energy Corp.
21,928,964
57,953
NRG Energy, Inc.
4,512,221
 
26,441,185
Electrical Equipment — 5.8%
76,191
GE Vernova, Inc. (a)
13,067,519
201,742
NEXTracker, Inc., Class A (a)
9,457,665
208,123
Vertiv Holdings Co., Class A
18,017,208
 
40,542,392
Electronic Equipment,
Instruments & Components
— 1.7%
42,381
Coherent Corp. (a)
3,070,927
27,149
Insight Enterprises, Inc. (a)
5,385,276
96,571
Vontier Corp.
3,689,012
 
12,145,215
Energy Equipment & Services
— 0.1%
23,432
Kodiak Gas Services, Inc.
638,756
Entertainment — 1.4%
144,454
Endeavor Group Holdings, Inc.,
Class A (b)
3,904,591
151,223
ROBLOX Corp., Class A (a)
5,627,008
 
9,531,599
Financial Services — 4.4%
339,017
Corebridge Financial, Inc.
9,872,175
43,725
Enact Holdings, Inc.
1,340,608
63,601
Jackson Financial, Inc., Class A
4,723,010
35,983
Mr. Cooper Group, Inc. (a)
2,922,899
552,728
Rocket Cos., Inc., Class A (a)
7,572,374
24,336
Shift4 Payments, Inc.,
Class A (a)
1,785,046
115,710
Toast, Inc., Class A (a)
2,981,847
 
31,197,959
Health Care Equipment &
Supplies — 2.3%
126,889
GE HealthCare Technologies,
Inc.
9,887,191
28,002
Glaukos Corp. (a)
3,314,037
14,295
PROCEPT BioRobotics
Corp. (a)
873,281
10,901
RxSight, Inc. (a)
655,913
9,156
TransMedics Group, Inc. (a)
1,379,077
 
16,109,499
Health Care Providers &
Services — 2.3%
120,937
HealthEquity, Inc. (a)
10,424,769
59,707
Hims & Hers Health, Inc. (a)
1,205,485
See Notes to Financial Statements
Page 8
First Trust US Equity Opportunities ETF (FPX)
Portfolio of Investments (Continued)
June 30, 2024 (Unaudited)
Shares
Description
Value
COMMON STOCKS (Continued)
Health Care Providers &
Services (Continued)
42,365
PACS Group, Inc. (a)
$1,249,767
27,154
Tenet Healthcare Corp. (a)
3,612,297
 
16,492,318
Health Care Technology —
0.2%
51,545
Doximity, Inc., Class A (a)
1,441,714
Hotels, Restaurants & Leisure
— 12.3%
286,452
Airbnb, Inc., Class A (a)
43,434,717
170,507
DoorDash, Inc., Class A (a)
18,547,751
487,440
DraftKings, Inc., Class A (a)
18,605,585
49,253
Dutch Bros, Inc., Class A (a)
2,039,074
25,056
Light & Wonder, Inc. (a)
2,627,873
31,499
Sweetgreen, Inc., Class A (a)
949,380
 
86,204,380
Insurance — 1.4%
75,955
Fidelity National Financial, Inc.
3,753,696
65,944
Oscar Health, Inc., Class A (a)
1,043,234
90,499
Ryan Specialty Holdings, Inc.
5,240,797
 
10,037,727
Interactive Media & Services
— 0.8%
90,905
Reddit, Inc., Class A (a)
5,807,920
IT Services — 3.0%
80,288
Cloudflare, Inc., Class A (a)
6,650,255
192,236
Kyndryl Holdings, Inc. (a)
5,057,729
69,801
Snowflake, Inc., Class A (a)
9,429,417
 
21,137,401
Machinery — 6.2%
63,555
Crane Co.
9,214,204
41,992
Esab Corp.
3,965,305
252,887
Otis Worldwide Corp.
24,342,903
162,516
Symbotic, Inc. (a) (b)
5,714,062
 
43,236,474
Oil, Gas & Consumable Fuels
— 2.8%
63,751
Chesapeake Energy Corp.
5,239,695
27,824
Civitas Resources, Inc.
1,919,856
80,984
DT Midstream, Inc.
5,752,293
121,461
Equitrans Midstream Corp.
1,576,564
42,714
Kinetik Holdings, Inc.
1,770,068
214,033
Permian Resources Corp.
3,456,633
 
19,715,109
Personal Care Products —
2.1%
798,425
Kenvue, Inc.
14,515,367
Shares
Description
Value
 
Pharmaceuticals — 0.5%
137,374
Elanco Animal Health, Inc. (a)
$1,982,307
71,489
Organon & Co.
1,479,822
 
3,462,129
Professional Services — 0.9%
29,532
Parsons Corp. (a)
2,416,013
55,598
UL Solutions, Inc., Class A
2,345,680
46,291
Verra Mobility Corp. (a)
1,259,115
 
6,020,808
Semiconductors &
Semiconductor Equipment
— 1.5%
181,567
Credo Technology Group
Holding Ltd. (a)
5,799,250
37,359
MKS Instruments, Inc.
4,878,338
 
10,677,588
Software — 13.7%
91,460
AppLovin Corp., Class A (a)
7,611,301
77,992
Bentley Systems, Inc., Class B
3,849,685
170,843
CCC Intelligent Solutions
Holdings, Inc. (a)
1,898,066
50,737
Crowdstrike Holdings, Inc.,
Class A (a)
19,441,911
83,293
Informatica, Inc., Class A (a)
2,572,088
773,797
Palantir Technologies, Inc.,
Class A (a)
19,600,278
50,055
Rubrik, Inc., Class A (a)
1,534,686
995,245
Samsara, Inc., Class A (a)
33,539,757
172,476
Vertex, Inc., Class A (a)
6,217,760
 
96,265,532
Specialty Retail — 0.1%
39,016
Arhaus, Inc.
660,931
Technology Hardware, Storage
& Peripherals — 1.1%
361,287
Hewlett Packard Enterprise Co.
7,648,446
Trading Companies &
Distributors — 1.5%
210,008
Core & Main, Inc., Class A (a)
10,277,792
Total Common Stocks
699,418,053
(Cost $582,470,695)
MONEY MARKET FUNDS — 0.2%
1,335,672
Dreyfus Government Cash
Management Fund,
Institutional Shares -
5.19% (c)
1,335,672
(Cost $1,335,672)
 
See Notes to Financial Statements
Page 9
First Trust US Equity Opportunities ETF (FPX)
Portfolio of Investments (Continued)
June 30, 2024 (Unaudited)
Principal
Value
Description
Value
REPURCHASE AGREEMENTS — 0.2%
$383,752
Bank of America Corp.,
5.31% (c), dated 06/28/24, due
07/01/24, with a maturity
value of $383,922.
Collateralized by
U.S. Treasury Securities,
interest rates of 0.00% to
4.63%, due 08/15/24 to
11/15/47. The value of the
collateral including accrued
interest is $391,427. (d)
$383,752
1,000,000
Mizuho Financial Group, Inc.,
5.32% (c), dated 06/28/24, due
07/01/24, with a maturity
value of $1,000,443.
Collateralized by
U.S. Treasury Securities,
interest rates of 0.50% to
5.00%, due 07/31/24 to
09/30/29. The value of the
collateral including accrued
interest is $1,020,000. (d)
1,000,000
Total Repurchase Agreements
1,383,752
(Cost $1,383,752)
Total Investments — 100.2%
702,137,477
(Cost $585,190,119)
Net Other Assets and
Liabilities — (0.2)%
(1,591,422
)
Net Assets — 100.0%
$700,546,055
 
(a)
Non-income producing security.
(b)
All or a portion of this security is on loan (see Note 2D -
Securities Lending in the Notes to Financial Statements). The
remaining contractual maturity of all of the securities lending
transactions is overnight and continuous. The aggregate
value of such securities, including those sold and pending
settlement, is $1,333,262 and the total value of the collateral
held by the Fund is $1,383,752.
(c)
Rate shown reflects yield as of June 30, 2024.
(d)
This security serves as collateral for securities on loan.
Valuation Inputs
A summary of the inputs used to value the Fund’s investments as of June 30, 2024 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements):
 
 
Total
Value at
6/30/2024
Level 1
Quoted
Prices
Level 2
Significant
Observable
Inputs
Level 3
Significant
Unobservable
Inputs
Common Stocks*
$ 699,418,053
$ 699,418,053
$ —
$ —
Money Market
Funds
 1,335,672
 1,335,672
 —
 —
Repurchase
Agreements
 1,383,752
 —
 1,383,752
 —
Total Investments
$702,137,477
$700,753,725
$1,383,752
$—
 
*
See Portfolio of Investments for industry breakout.
Offsetting Assets and Liabilities
Offsetting assets and liabilities requires entities to disclose both gross and net information about instruments and transactions eligible for offset, and to disclose instruments and transactions subject to master netting or similar agreements (see Note 2C - Offsetting on the Statements of Assets and Liabilities in the Notes to Financial Statements).
The Fund’s loaned securities were all subject to an enforceable Securities Lending Agency Agreement. Securities lent in accordance with the Securities Lending Agency Agreement on a gross basis were as follows:
 
Securities Lending Agency Agreement
Total gross amount presented on the Statements
of Assets and Liabilities(1)
$1,333,262
Non-cash Collateral(2)
(1,333,262
)
Net Amount
$—
 
(1)
The amount presented on the Statements of Assets and
Liabilities, which is included in “Investments, at value,” is not
offset and is shown on a gross basis.
(2)
At June 30, 2024, the value of the collateral received from
each borrower exceeded the value of the related securities
loaned. This amount is disclosed on the Portfolio of
Investments.
See Notes to Financial Statements
Page 10
First Trust US Equity Opportunities ETF (FPX)
Portfolio of Investments (Continued)
June 30, 2024 (Unaudited)
The Fund’s investments in repurchase agreements were all subject to an enforceable Master Repurchase Agreement. Repurchase Agreements on a gross basis were as follows:
 
Repurchase Agreements
Total gross amount presented on the Statements
of Assets and Liabilities(3)
$1,383,752
Non-cash Collateral(4)
(1,383,752
)
Net Amount
$—
 
(3)
The amount is included in “Investments, at value” on the
Statements of Assets and Liabilities.
(4)
At June 30, 2024, the value of the collateral received from
each seller exceeded the value of the repurchase agreements.
See Notes to Financial Statements
Page 11
First Trust NYSE® Arca® Biotechnology Index Fund (FBT)
Portfolio of Investments
June 30, 2024 (Unaudited)
 
Shares
Description
Value
COMMON STOCKS — 100.0%
Biotechnology — 78.6%
2,054,298
ACADIA Pharmaceuticals,
Inc. (a)
$33,382,342
1,441,879
Alkermes PLC (a)
34,749,284
237,106
Alnylam Pharmaceuticals,
Inc. (a)
57,616,758
131,736
Amgen, Inc.
41,160,913
93,144
Argenx SE, ADR (a)
40,055,646
1,357,912
Beam Therapeutics, Inc. (a)
31,815,878
249,192
BeiGene Ltd., ADR (a)
35,552,223
177,669
Biogen, Inc. (a)
41,187,228
381,815
BioMarin Pharmaceutical,
Inc. (a)
31,434,829
407,158
BioNTech SE, ADR (a)
32,719,217
2,313,444
Catalyst Pharmaceuticals,
Inc. (a)
35,835,247
493,560
Exact Sciences Corp. (a)
20,852,910
1,543,649
Exelixis, Inc. (a)
34,685,793
1,203,370
Genmab A/S, ADR (a)
30,240,688
517,273
Gilead Sciences, Inc.
35,490,100
911,958
Halozyme Therapeutics, Inc. (a)
47,750,121
653,864
Incyte Corp. (a)
39,637,236
334,890
Moderna, Inc. (a)
39,768,187
372,721
Natera, Inc. (a)
40,361,957
261,477
Neurocrine Biosciences, Inc. (a)
35,997,539
38,922
Regeneron Pharmaceuticals,
Inc. (a)
40,908,190
151,387
United Therapeutics Corp. (a)
48,224,329
88,789
Vertex Pharmaceuticals, Inc. (a)
41,617,180
 
871,043,795
Life Sciences Tools & Services
— 13.7%
402,040
Bruker Corp.
25,654,172
284,247
Illumina, Inc. (a)
29,669,702
27,920
Mettler-Toledo International,
Inc. (a)
39,020,713
205,272
Repligen Corp. (a)
25,876,588
109,125
Waters Corp. (a)
31,659,345
 
151,880,520
Pharmaceuticals — 7.7%
1,497,686
Corcept Therapeutics, Inc. (a)
48,659,818
534,463
Intra-Cellular Therapies, Inc. (a)
36,605,371
 
85,265,189
Total Common Stocks
1,108,189,504
(Cost $1,032,795,641)
Shares
Description
Value
MONEY MARKET FUNDS — 0.1%
726,327
Dreyfus Government Cash
Management Fund,
Institutional Shares -
5.19% (b)
$726,327
(Cost $726,327)
Total Investments — 100.1%
1,108,915,831
(Cost $1,033,521,968)
Net Other Assets and
Liabilities — (0.1)%
(685,835
)
Net Assets — 100.0%
$1,108,229,996
 
(a)
Non-income producing security.
(b)
Rate shown reflects yield as of June 30, 2024.
 
Abbreviations throughout the Portfolio of Investments:
ADR
–  American Depositary Receipt
Valuation Inputs
A summary of the inputs used to value the Fund’s investments as of June 30, 2024 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements):
 
 
Total
Value at
6/30/2024
Level 1
Quoted
Prices
Level 2
Significant
Observable
Inputs
Level 3
Significant
Unobservable
Inputs
Common
Stocks*
$ 1,108,189,504
$ 1,108,189,504
$ —
$ —
Money Market
Funds
 726,327
 726,327
 —
 —
Total
Investments
$1,108,915,831
$1,108,915,831
$—
$—
 
*
See Portfolio of Investments for industry breakout.
See Notes to Financial Statements
Page 12
First Trust Dow Jones Internet Index Fund (FDN)
Portfolio of Investments
June 30, 2024 (Unaudited)
 
Shares
Description
Value
COMMON STOCKS — 100.0%
Broadline Retail — 12.0%
3,136,649
Amazon.com, Inc. (a)
$606,157,419
2,164,859
eBay, Inc.
116,296,226
 
722,453,645
Communications Equipment
— 10.7%
847,311
Arista Networks, Inc. (a)
296,965,559
611,395
Ciena Corp. (a)
29,457,011
5,726,746
Cisco Systems, Inc.
272,077,703
1,252,045
Juniper Networks, Inc.
45,649,561
 
644,149,834
Entertainment — 7.7%
577,407
Netflix, Inc. (a)
389,680,436
1,919,484
ROBLOX Corp., Class A (a)
71,424,000
 
461,104,436
Financial Services — 3.7%
3,879,748
PayPal Holdings, Inc. (a)
225,141,776
Health Care Technology —
2.0%
674,350
Teladoc Health, Inc. (a)
6,595,143
639,843
Veeva Systems, Inc., Class A (a)
117,097,667
 
123,692,810
Hotels, Restaurants & Leisure
— 12.4%
1,766,632
Airbnb, Inc., Class A (a)
267,874,410
68,052
Booking Holdings, Inc.
269,587,998
1,192,800
DoorDash, Inc., Class A (a)
129,752,784
2,066,385
DraftKings, Inc., Class A (a)
78,873,916
 
746,089,108
Interactive Media & Services
— 22.2%
1,713,129
Alphabet, Inc., Class A
312,046,447
1,425,216
Alphabet, Inc., Class C
261,413,119
1,128,305
Meta Platforms, Inc., Class A
568,913,947
2,588,988
Pinterest, Inc., Class A (a)
114,096,701
3,988,948
Snap, Inc., Class A (a)
66,256,426
1,193,814
ZoomInfo Technologies, Inc. (a)
15,245,005
 
1,337,971,645
IT Services — 8.2%
594,817
Akamai Technologies, Inc. (a)
53,581,115
1,218,076
Cloudflare, Inc., Class A (a)
100,893,235
652,722
GoDaddy, Inc., Class A (a)
91,191,791
624,534
Okta, Inc. (a)
58,462,628
1,387,706
Snowflake, Inc., Class A (a)
187,465,203
 
491,593,972
Professional Services — 0.6%
233,621
Paycom Software, Inc.
33,417,148
Software — 19.5%
749,723
Atlassian Corp., Class A (a)
132,611,004
Shares
Description
Value
 
Software (Continued)
621,660
Box, Inc., Class A (a)
$16,436,690
1,179,628
Confluent, Inc., Class A (a)
34,834,415
1,109,860
Datadog, Inc., Class A (a)
143,937,743
899,518
DocuSign, Inc. (a)
48,124,213
1,000,996
Dropbox, Inc., Class A (a)
22,492,380
232,169
HubSpot, Inc. (a)
136,930,955
1,166,354
Marathon Digital Holdings,
Inc. (a) (b)
23,152,127
977,467
Nutanix, Inc., Class A (a)
55,568,999
1,189,613
Salesforce, Inc.
305,849,502
487,213
Smartsheet, Inc., Class A (a)
21,476,349
759,917
Workday, Inc., Class A (a)
169,887,045
1,105,628
Zoom Video Communications,
Inc., Class A (a)
65,442,121
 
1,176,743,543
Specialty Retail — 1.0%
464,647
Carvana Co. (a)
59,809,362
Total Common Stocks
6,022,167,279
(Cost $5,558,072,348)
MONEY MARKET FUNDS — 0.0%
2,679,120
Morgan Stanley Institutional
Liquidity Funds - Treasury
Portfolio - Institutional Class -
5.14% (c)
2,679,120
(Cost $2,679,120)
 
Principal
Value
Description
Value
REPURCHASE AGREEMENTS — 0.0%
$120,285
Mizuho Financial Group, Inc.,
5.32% (c), dated 06/28/24, due
07/01/24, with a maturity
value of $120,338.
Collateralized by
U.S. Treasury Securities,
interest rates of 0.50% to
5.00%, due 07/31/24 to
09/30/29. The value of the
collateral including accrued
interest is $122,691. (d)
120,285
(Cost $120,285)
Total Investments — 100.0%
6,024,966,684
(Cost $5,560,871,753)
Net Other Assets and
Liabilities — (0.0)%
(1,301,807
)
Net Assets — 100.0%
$6,023,664,877
 
See Notes to Financial Statements
Page 13
First Trust Dow Jones Internet Index Fund (FDN)
Portfolio of Investments (Continued)
June 30, 2024 (Unaudited)
(a)
Non-income producing security.
(b)
All or a portion of this security is on loan (see Note 2D -
Securities Lending in the Notes to Financial Statements). The
remaining contractual maturity of all of the securities lending
transactions is overnight and continuous. The aggregate
value of such securities, including those sold and pending
settlement, is $117,909 and the total value of the collateral
held by the Fund is $120,285.
(c)
Rate shown reflects yield as of June 30, 2024.
(d)
This security serves as collateral for securities on loan.
Valuation Inputs
A summary of the inputs used to value the Fund’s investments as of June 30, 2024 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements):
 
 
Total
Value at
6/30/2024
Level 1
Quoted
Prices
Level 2
Significant
Observable
Inputs
Level 3
Significant
Unobservable
Inputs
Common
Stocks*
$ 6,022,167,279
$ 6,022,167,279
$ —
$ —
Money Market
Funds
 2,679,120
 2,679,120
 —
 —
Repurchase
Agreements
 120,285
 —
 120,285
 —
Total
Investments
$6,024,966,684
$6,024,846,399
$120,285
$—
 
*
See Portfolio of Investments for industry breakout.
Offsetting Assets and Liabilities
Offsetting assets and liabilities requires entities to disclose both gross and net information about instruments and transactions eligible for offset, and to disclose instruments and transactions subject to master netting or similar agreements (see Note 2C - Offsetting on the Statements of Assets and Liabilities in the Notes to Financial Statements).
The Fund’s loaned securities were all subject to an enforceable Securities Lending Agency Agreement. Securities lent in accordance with the Securities Lending Agency Agreement on a gross basis were as follows:
 
Securities Lending Agency Agreement
Total gross amount presented on the Statements
of Assets and Liabilities(1)
$117,909
Non-cash Collateral(2)
(117,909
)
Net Amount
$—
 
(1)
The amount presented on the Statements of Assets and
Liabilities, which is included in “Investments, at value,” is not
offset and is shown on a gross basis.
(2)
At June 30, 2024, the value of the collateral received from
each borrower exceeded the value of the related securities
loaned. This amount is disclosed on the Portfolio of
Investments.
The Fund’s investments in repurchase agreements were all subject to an enforceable Master Repurchase Agreement. Repurchase Agreements on a gross basis were as follows:
 
Repurchase Agreements
Total gross amount presented on the Statements
of Assets and Liabilities(3)
$120,285
Non-cash Collateral(4)
(120,285
)
Net Amount
$—
 
(3)
The amount is included in “Investments, at value” on the
Statements of Assets and Liabilities.
(4)
At June 30, 2024, the value of the collateral received from
each seller exceeded the value of the repurchase agreements.
See Notes to Financial Statements
Page 14
First Trust Capital Strength® ETF (FTCS)
Portfolio of Investments
June 30, 2024 (Unaudited)
 
Shares
Description
Value
COMMON STOCKS — 99.9%
Aerospace & Defense — 3.9%
577,073
General Dynamics Corp.
$167,431,960
359,056
Lockheed Martin Corp.
167,715,058
 
335,147,018
Beverages — 5.7%
2,768,067
Coca-Cola (The) Co.
176,187,465
3,134,260
Monster Beverage Corp. (a)
156,556,287
956,494
PepsiCo, Inc.
157,754,555
 
490,498,307
Biotechnology — 4.3%
1,000,870
AbbVie, Inc.
171,669,222
185,718
Regeneron Pharmaceuticals,
Inc. (a)
195,195,190
 
366,864,412
Capital Markets — 6.1%
399,402
Ameriprise Financial, Inc.
170,620,540
444,539
Moody’s Corp.
187,119,801
1,347,526
Raymond James Financial, Inc.
166,567,689
 
524,308,030
Chemicals — 3.8%
373,192
Linde PLC
163,760,382
1,272,379
PPG Industries, Inc.
160,179,792
 
323,940,174
Commercial Services &
Supplies — 2.0%
3,149,672
Copart, Inc. (a)
170,586,235
Communications Equipment
— 4.1%
3,446,909
Cisco Systems, Inc.
163,762,647
490,370
Motorola Solutions, Inc.
189,307,338
 
353,069,985
Construction Materials —
1.8%
289,212
Martin Marietta Materials, Inc.
156,695,062
Consumer Staples Distribution
& Retail — 4.5%
234,747
Costco Wholesale Corp.
199,532,603
2,797,824
Walmart, Inc.
189,440,663
 
388,973,266
Containers & Packaging —
2.0%
925,866
Packaging Corp. of America
169,026,097
Distributors — 1.6%
1,025,643
Genuine Parts Co.
141,866,940
Electronic Equipment,
Instruments & Components
— 2.4%
3,023,589
Amphenol Corp., Class A
203,699,191
Shares
Description
Value
 
Financial Services — 3.8%
365,738
Mastercard, Inc., Class A
$161,348,976
617,372
Visa, Inc., Class A
162,041,629
 
323,390,605
Food Products — 1.9%
2,445,374
Mondelez International, Inc.,
Class A
160,025,275
Ground Transportation —
3.8%
4,850,164
CSX Corp.
162,237,986
717,662
Union Pacific Corp.
162,378,204
 
324,616,190
Health Care Equipment &
Supplies — 3.9%
1,552,523
Abbott Laboratories
161,322,665
511,800
Stryker Corp.
174,139,950
 
335,462,615
Health Care Providers &
Services — 5.8%
696,503
Cencora, Inc.
156,922,126
313,413
Elevance Health, Inc.
169,825,968
332,359
UnitedHealth Group, Inc.
169,257,144
 
496,005,238
Household Products — 6.3%
1,911,561
Colgate-Palmolive Co.
185,497,880
1,313,210
Kimberly-Clark Corp.
181,485,622
1,053,210
Procter & Gamble (The) Co.
173,695,393
 
540,678,895
Industrial Conglomerates —
2.1%
857,379
Honeywell International, Inc.
183,084,712
Insurance — 5.9%
665,658
Chubb Ltd.
169,796,043
822,858
Marsh & McLennan Cos., Inc.
173,392,638
2,033,961
W.R. Berkley Corp.
159,828,655
 
503,017,336
IT Services — 1.9%
2,469,669
Cognizant Technology Solutions
Corp., Class A
167,937,492
Machinery — 3.6%
664,997
Illinois Tool Works, Inc.
157,577,689
1,497,929
PACCAR, Inc.
154,196,811
 
311,774,500
Oil, Gas & Consumable Fuels
— 1.9%
1,389,346
Exxon Mobil Corp.
159,941,511
Pharmaceuticals — 1.9%
1,126,053
Johnson & Johnson
164,583,906
See Notes to Financial Statements
Page 15
First Trust Capital Strength® ETF (FTCS)
Portfolio of Investments (Continued)
June 30, 2024 (Unaudited)
Shares
Description
Value
COMMON STOCKS (Continued)
Professional Services — 3.8%
684,536
Automatic Data Processing, Inc.
$163,391,898
1,393,530
Paychex, Inc.
165,216,917
 
328,608,815
Software — 2.2%
417,304
Microsoft Corp.
186,514,023
Specialty Retail — 6.4%
496,643
Home Depot (The), Inc.
170,964,386
1,249,099
Ross Stores, Inc.
181,519,067
1,784,004
TJX (The) Cos., Inc.
196,418,840
 
548,902,293
Technology Hardware, Storage
& Peripherals — 2.5%
1,009,420
Apple, Inc.
212,604,040
Total Investments — 99.9%
8,571,822,163
(Cost $7,552,541,737)
Net Other Assets and
Liabilities — 0.1%
4,967,833
Net Assets — 100.0%
$8,576,789,996
 
(a)
Non-income producing security.
Valuation Inputs
A summary of the inputs used to value the Fund’s investments as of June 30, 2024 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements):
 
 
Total
Value at
6/30/2024
Level 1
Quoted
Prices
Level 2
Significant
Observable
Inputs
Level 3
Significant
Unobservable
Inputs
Common
Stocks*
$ 8,571,822,163
$ 8,571,822,163
$ —
$ —
 
*
See Portfolio of Investments for industry breakout.
See Notes to Financial Statements
Page 16
First Trust Value Line® Dividend Index Fund (FVD)
Portfolio of Investments
June 30, 2024 (Unaudited)
 
Shares
Description
Value
COMMON STOCKS — 99.8%
Aerospace & Defense — 3.0%
153,455
General Dynamics Corp.
$44,523,434
182,367
Huntington Ingalls Industries,
Inc.
44,922,463
203,161
L3Harris Technologies, Inc.
45,625,897
97,152
Lockheed Martin Corp.
45,379,699
106,367
Northrop Grumman Corp.
46,370,694
449,294
RTX Corp.
45,104,625
 
271,926,812
Air Freight & Logistics —
1.0%
517,689
C.H. Robinson Worldwide, Inc.
45,618,755
330,524
United Parcel Service, Inc.,
Class B
45,232,209
 
90,850,964
Automobile Components —
0.5%
1,328,226
Gentex Corp.
44,774,498
Automobiles — 1.0%
1,439,674
Honda Motor Co., Ltd., ADR
46,415,090
230,228
Toyota Motor Corp., ADR
47,189,833
 
93,604,923
Banks — 3.5%
537,555
Bank of Montreal
45,073,987
995,658
Bank of Nova Scotia (The)
45,521,484
945,518
Canadian Imperial Bank of
Commerce
44,949,926
846,769
Commerce Bancshares, Inc.
47,232,775
230,341
JPMorgan Chase & Co.
46,588,770
431,277
Royal Bank of Canada
45,879,247
829,597
Toronto-Dominion (The) Bank
45,594,651
 
320,840,840
Beverages — 2.4%
1,049,250
Brown-Forman Corp., Class B
45,317,108
716,122
Coca-Cola (The) Co.
45,581,165
348,553
Diageo PLC, ADR
43,945,562
1,321,325
Keurig Dr Pepper, Inc.
44,132,255
272,552
PepsiCo, Inc.
44,952,001
 
223,928,091
Biotechnology — 1.5%
265,196
AbbVie, Inc.
45,486,418
143,990
Amgen, Inc.
44,989,676
647,676
Gilead Sciences, Inc.
44,437,050
 
134,913,144
Building Products — 1.0%
542,587
A.O. Smith Corp.
44,372,765
666,135
Johnson Controls
International PLC
44,277,993
 
88,650,758
Shares
Description
Value
 
Capital Markets — 4.4%
770,181
Bank of New York Mellon (The)
Corp.
$46,126,140
57,337
BlackRock, Inc.
45,142,567
234,830
CME Group, Inc.
46,167,578
99,139
Goldman Sachs Group (The),
Inc.
44,842,553
350,956
Houlihan Lokey, Inc.
47,329,926
330,239
Intercontinental Exchange, Inc.
45,206,417
762,236
Nasdaq, Inc.
45,932,341
687,019
SEI Investments Co.
44,443,259
385,351
T. Rowe Price Group, Inc.
44,434,824
 
409,625,605
Chemicals — 2.4%
169,109
Air Products and Chemicals, Inc.
43,638,577
87,625
NewMarket Corp.
45,176,821
357,475
PPG Industries, Inc.
45,002,528
614,658
Sensient Technologies Corp.
45,601,477
546,336
Stepan Co.
45,870,371
 
225,289,774
Commercial Services &
Supplies — 1.0%
689,292
Brady Corp., Class A
45,507,058
215,639
Waste Management, Inc.
46,004,424
 
91,511,482
Communications Equipment
— 1.0%
968,917
Cisco Systems, Inc.
46,033,247
1,288,980
Juniper Networks, Inc.
46,996,211
 
93,029,458
Consumer Staples Distribution
& Retail — 0.5%
915,844
Kroger (The) Co.
45,728,091
Containers & Packaging —
1.9%
199,593
Avery Dennison Corp.
43,641,010
241,414
Packaging Corp. of America
44,072,540
1,034,097
Silgan Holdings, Inc.
43,773,326
859,488
Sonoco Products Co.
43,593,231
 
175,080,107
Distributors — 0.4%
135,571
Pool Corp.
41,665,035
Diversified Telecommunication
Services — 2.0%
2,456,326
AT&T, Inc.
46,940,390
1,378,174
BCE, Inc.
44,611,492
2,890,253
TELUS Corp.
43,758,431
1,112,709
Verizon Communications, Inc.
45,888,119
 
181,198,432
Electric Utilities — 6.9%
730,044
ALLETE, Inc.
45,518,243
See Notes to Financial Statements
Page 17
First Trust Value Line® Dividend Index Fund (FVD)
Portfolio of Investments (Continued)
June 30, 2024 (Unaudited)
Shares
Description
Value
COMMON STOCKS (Continued)
Electric Utilities (Continued)
895,956
Alliant Energy Corp.
$45,604,160
519,747
American Electric Power Co.,
Inc.
45,602,602
1,299,586
Avangrid, Inc.
46,174,291
451,288
Duke Energy Corp.
45,232,596
425,234
Entergy Corp.
45,500,038
858,358
Evergy, Inc.
45,467,223
789,835
Eversource Energy
44,791,543
1,296,645
Exelon Corp.
44,876,883
1,162,995
Fortis, Inc.
45,170,726
495,517
IDACORP, Inc.
46,157,409
534,486
Otter Tail Corp.
46,815,629
577,394
Southern (The) Co.
44,788,453
848,656
Xcel Energy, Inc.
45,326,717
 
637,026,513
Electrical Equipment — 1.0%
419,049
Emerson Electric Co.
46,162,438
120,691
Hubbell, Inc.
44,110,147
 
90,272,585
Electronic Equipment,
Instruments & Components
— 0.5%
303,179
TE Connectivity Ltd.
45,607,217
Financial Services — 0.5%
275,252
Jack Henry & Associates, Inc.
45,697,337
Food Products — 7.3%
752,594
Cal-Maine Foods, Inc.
45,991,019
1,011,941
Campbell Soup Co.
45,729,614
1,561,363
Conagra Brands, Inc.
44,373,936
2,009,232
Flowers Foods, Inc.
44,604,950
672,993
General Mills, Inc.
42,573,537
244,585
Hershey (The) Co.
44,962,061
1,479,666
Hormel Foods Corp.
45,115,016
393,799
Ingredion, Inc.
45,168,745
273,704
J & J Snack Foods Corp.
44,441,319
409,532
J.M. Smucker (The) Co.
44,655,369
786,311
Kellanova
45,354,419
241,600
Lancaster Colony Corp.
45,655,152
662,000
McCormick & Co., Inc.
46,962,280
669,550
Mondelez International, Inc.,
Class A
43,815,352
1,537,775
Tootsie Roll Industries, Inc.
47,009,782
 
676,412,551
Gas Utilities — 4.0%
388,160
Atmos Energy Corp.
45,278,864
428,413
Chesapeake Utilities Corp.
45,497,461
818,044
National Fuel Gas Co.
44,329,804
1,073,848
New Jersey Resources Corp.
45,896,263
1,294,446
Northwest Natural Holding Co.
46,742,445
Shares
Description
Value
 
Gas Utilities (Continued)
746,948
ONE Gas, Inc.
$47,692,630
612,683
Southwest Gas Holdings, Inc.
43,120,630
772,783
Spire, Inc.
46,931,112
 
365,489,209
Ground Transportation —
2.5%
387,207
Canadian National Railway Co.
45,740,763
1,379,414
CSX Corp.
46,141,398
209,487
Norfolk Southern Corp.
44,974,764
202,376
Union Pacific Corp.
45,789,594
1,286,448
Werner Enterprises, Inc.
46,093,432
 
228,739,951
Health Care Equipment &
Supplies — 2.0%
435,049
Abbott Laboratories
45,205,941
1,339,875
Baxter International, Inc.
44,818,819
194,187
Becton Dickinson & Co.
45,383,444
565,282
Medtronic PLC
44,493,346
 
179,901,550
Health Care Providers &
Services — 2.0%
742,112
CVS Health Corp.
43,829,135
2,464,250
Premier, Inc., Class A
46,007,547
326,683
Quest Diagnostics, Inc.
44,716,369
93,491
UnitedHealth Group, Inc.
47,611,227
 
182,164,278
Hotels, Restaurants & Leisure
— 1.5%
175,936
McDonald’s Corp.
44,835,530
574,570
Starbucks Corp.
44,730,275
341,893
Yum! Brands, Inc.
45,287,147
 
134,852,952
Household Durables — 0.5%
282,271
Garmin Ltd.
45,987,591
Household Products — 2.9%
336,543
Clorox (The) Co.
45,928,023
462,774
Colgate-Palmolive Co.
44,907,589
327,919
Kimberly-Clark Corp.
45,318,406
271,953
Procter & Gamble (The) Co.
44,850,489
1,588,434
Reynolds Consumer Products,
Inc.
44,444,383
207,175
WD-40 Co.
45,503,917
 
270,952,807
Industrial Conglomerates —
1.0%
444,801
3M Co.
45,454,214
212,195
Honeywell International, Inc.
45,312,121
 
90,766,335
Insurance — 5.9%
506,586
Aflac, Inc.
45,243,196
See Notes to Financial Statements
Page 18
First Trust Value Line® Dividend Index Fund (FVD)
Portfolio of Investments (Continued)
June 30, 2024 (Unaudited)
Shares
Description
Value
COMMON STOCKS (Continued)
Insurance (Continued)
282,062
Allstate (The) Corp.
$45,034,019
270,683
Assurant, Inc.
45,001,049
172,143
Chubb Ltd.
43,910,236
1,017,560
CNA Financial Corp.
46,878,989
126,431
Erie Indemnity Co., Class A
45,818,594
368,872
Hanover Insurance Group (The),
Inc.
46,271,304
212,332
Marsh & McLennan Cos., Inc.
44,742,599
493,758
Selective Insurance Group, Inc.
46,329,313
932,429
Sun Life Financial, Inc.
45,679,697
217,018
Travelers (The) Cos., Inc.
44,128,440
171,938
Willis Towers Watson PLC
45,071,827
 
544,109,263
IT Services — 2.5%
149,118
Accenture PLC, Class A
45,243,892
584,321
Amdocs Ltd.
46,114,613
667,011
Cognizant Technology Solutions
Corp., Class A
45,356,748
2,525,380
Infosys Ltd., ADR
47,022,576
261,761
International Business Machines
Corp.
45,271,565
 
229,009,394
Machinery — 4.9%
138,817
Caterpillar, Inc.
46,239,943
161,327
Cummins, Inc.
44,676,286
121,138
Deere & Co.
45,260,791
627,281
Donaldson Co., Inc.
44,888,228
574,140
Graco, Inc.
45,517,819
224,009
IDEX Corp.
45,070,611
188,837
Illinois Tool Works, Inc.
44,746,816
242,843
Lincoln Electric Holdings, Inc.
45,809,903
472,906
Otis Worldwide Corp.
45,521,932
171,319
Snap-on, Inc.
44,781,073
 
452,513,402
Media — 0.5%
1,190,497
Comcast Corp., Class A
46,619,863
Multi-Utilities — 3.9%
643,855
Ameren Corp.
45,784,529
753,833
CMS Energy Corp.
44,875,678
501,924
Consolidated Edison, Inc.
44,882,044
406,120
DTE Energy Co.
45,083,381
1,586,238
NiSource, Inc.
45,699,517
612,848
Public Service Enterprise Group,
Inc.
45,166,898
599,220
Sempra
45,576,673
577,321
WEC Energy Group, Inc.
45,296,606
 
362,365,326
Shares
Description
Value
 
Oil, Gas & Consumable Fuels
— 2.0%
287,553
Chevron Corp.
$44,979,040
647,410
DT Midstream, Inc.
45,985,532
1,304,397
Enbridge, Inc.
46,423,489
401,672
Exxon Mobil Corp.
46,240,481
 
183,628,542
Personal Care Products —
0.5%
813,688
Unilever PLC, ADR
44,744,703
Pharmaceuticals — 4.4%
577,173
AstraZeneca PLC, ADR
45,013,722
1,084,788
Bristol-Myers Squibb Co.
45,051,246
1,129,727
GSK PLC, ADR
43,494,489
307,207
Johnson & Johnson
44,901,375
344,547
Merck & Co., Inc.
42,654,918
428,337
Novartis AG, ADR
45,600,757
321,977
Novo Nordisk A/S, ADR
45,958,997
1,615,317
Pfizer, Inc.
45,196,570
935,482
Sanofi, ADR
45,389,587
 
403,261,661
Professional Services — 3.9%
183,829
Automatic Data Processing, Inc.
43,878,144
291,374
Booz Allen Hamilton Holding
Corp.
44,842,459
226,965
Broadridge Financial Solutions,
Inc.
44,712,105
1,430,233
Genpact Ltd.
46,039,200
516,525
Maximus, Inc.
44,266,192
363,341
Paychex, Inc.
43,077,709
701,751
Robert Half, Inc.
44,898,029
277,005
Thomson Reuters Corp.
46,694,733
 
358,408,571
Semiconductors &
Semiconductor Equipment
— 1.0%
200,521
Analog Devices, Inc.
45,770,923
236,345
Texas Instruments, Inc.
45,976,193
 
91,747,116
Software — 0.5%
571,699
Dolby Laboratories, Inc.,
Class A
45,295,712
Specialized REITs — 1.0%
60,904
Equinix, Inc.
46,079,966
156,717
Public Storage
45,079,645
 
91,159,611
Specialty Retail — 1.4%
130,559
Home Depot (The), Inc.
44,943,630
200,581
Lowe’s Cos., Inc.
44,220,087
165,156
Tractor Supply Co.
44,592,120
 
133,755,837
See Notes to Financial Statements
Page 19
First Trust Value Line® Dividend Index Fund (FVD)
Portfolio of Investments (Continued)
June 30, 2024 (Unaudited)
Shares
Description
Value
COMMON STOCKS (Continued)
Textiles, Apparel & Luxury
Goods — 0.4%
471,449
NIKE, Inc., Class B
$35,533,111
Tobacco — 2.0%
986,226
Altria Group, Inc.
44,922,594
1,415,648
British American Tobacco PLC,
ADR
43,785,993
449,692
Philip Morris International, Inc.
45,567,290
952,203
Universal Corp.
45,886,663
 
180,162,540
Trading Companies &
Distributors — 1.9%
704,344
Fastenal Co.
44,260,977
347,126
GATX Corp.
45,945,598
568,581
MSC Industrial Direct Co., Inc.,
Class A
45,094,159
94,951
Watsco, Inc.
43,985,101
 
179,285,835
Water Utilities — 1.5%
629,441
American States Water Co.
45,678,533
933,000
California Water Service Group
45,241,170
1,207,439
Essential Utilities, Inc.
45,073,698
 
135,993,401
Wireless Telecommunication
Services — 1.5%
2,720,331
America Movil S.A.B. de C.V.,
ADR
46,245,627
1,204,905
Rogers Communications, Inc.,
Class B
44,557,387
257,449
T-Mobile US, Inc.
45,357,365
 
136,160,379
Total Common Stocks
9,180,243,157
(Cost $8,637,501,627)
MONEY MARKET FUNDS — 0.1%
9,458,347
Dreyfus Government Cash
Management Fund,
Institutional Shares -
5.19% (a)
9,458,347
(Cost $9,458,347)
Total Investments — 99.9%
9,189,701,504
(Cost $8,646,959,974)
Net Other Assets and
Liabilities — 0.1%
12,314,302
Net Assets — 100.0%
$9,202,015,806
 
(a)
Rate shown reflects yield as of June 30, 2024.
 
Abbreviations throughout the Portfolio of Investments:
ADR
–  American Depositary Receipt
REITs
–  Real Estate Investment Trusts
Valuation Inputs
A summary of the inputs used to value the Fund’s investments as of June 30, 2024 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements):
 
 
Total
Value at
6/30/2024
Level 1
Quoted
Prices
Level 2
Significant
Observable
Inputs
Level 3
Significant
Unobservable
Inputs
Common
Stocks*
$ 9,180,243,157
$ 9,180,243,157
$ —
$ —
Money Market
Funds
 9,458,347
 9,458,347
 —
 —
Total
Investments
$9,189,701,504
$9,189,701,504
$—
$—
 
*
See Portfolio of Investments for industry breakout.
See Notes to Financial Statements
Page 20
First Trust Growth StrengthTM ETF (FTGS)
Portfolio of Investments
June 30, 2024 (Unaudited)
 
Shares
Description
Value
COMMON STOCKS — 99.9%
Automobiles — 2.5%
61,359
Tesla, Inc. (a)
$12,141,719
Biotechnology — 2.2%
10,083
Regeneron Pharmaceuticals,
Inc. (a)
10,597,535
Building Products — 2.1%
31,304
Trane Technologies PLC
10,296,825
Capital Markets — 3.9%
21,707
Ameriprise Financial, Inc.
9,273,013
76,213
Blackstone, Inc.
9,435,170
 
18,708,183
Chemicals — 1.7%
113,545
CF Industries Holdings, Inc.
8,415,955
Commercial Services &
Supplies — 1.9%
170,690
Copart, Inc. (a)
9,244,570
Communications Equipment
— 2.7%
36,674
Arista Networks, Inc. (a)
12,853,504
Construction Materials —
1.8%
15,722
Martin Marietta Materials, Inc.
8,518,180
Consumer Finance — 1.9%
39,115
American Express Co.
9,057,078
Electronic Equipment,
Instruments & Components
— 4.0%
163,812
Amphenol Corp., Class A
11,036,014
76,072
Jabil, Inc.
8,275,873
 
19,311,887
Energy Equipment & Services
— 3.4%
231,001
Halliburton Co.
7,803,214
181,086
Schlumberger N.V.
8,543,637
 
16,346,851
Entertainment — 2.3%
16,207
Netflix, Inc. (a)
10,937,780
Financial Services — 7.4%
83,831
Apollo Global Management, Inc.
9,897,926
30,667
Corpay, Inc. (a)
8,169,996
19,855
Mastercard, Inc., Class A
8,759,232
33,475
Visa, Inc., Class A
8,786,183
 
35,613,337
Health Care Equipment &
Supplies — 1.6%
69,118
Dexcom, Inc. (a)
7,836,599
Shares
Description
Value
 
Health Care Providers &
Services — 3.7%
37,697
Cencora, Inc.
$8,493,134
18,014
UnitedHealth Group, Inc.
9,173,810
 
17,666,944
Hotels, Restaurants & Leisure
— 2.1%
157,581
Chipotle Mexican Grill, Inc. (a)
9,872,450
Household Durables — 3.7%
63,500
D.R. Horton, Inc.
8,949,055
60,083
Lennar Corp., Class A
9,004,639
 
17,953,694
Insurance — 3.7%
24,363
Everest Group Ltd.
9,282,790
109,594
W.R. Berkley Corp.
8,611,897
 
17,894,687
Interactive Media & Services
— 4.2%
58,539
Alphabet, Inc., Class A
10,662,879
18,719
Meta Platforms, Inc., Class A
9,438,494
 
20,101,373
Machinery — 3.5%
25,507
Caterpillar, Inc.
8,496,382
81,199
PACCAR, Inc.
8,358,625
 
16,855,007
Metals & Mining — 3.2%
47,142
Nucor Corp.
7,452,208
28,207
Reliance, Inc.
8,055,919
 
15,508,127
Oil, Gas & Consumable Fuels
— 3.4%
69,798
ConocoPhillips
7,983,495
67,846
EOG Resources, Inc.
8,539,776
 
16,523,271
Semiconductors &
Semiconductor Equipment
— 14.7%
47,625
Applied Materials, Inc.
11,239,024
7,527
Broadcom, Inc.
12,084,824
84,747
Enphase Energy, Inc. (a)
8,450,123
14,320
KLA Corp.
11,806,983
15,226
Monolithic Power Systems, Inc.
12,510,900
117,980
NVIDIA Corp.
14,575,249
 
70,667,103
Software — 12.3%
32,220
Cadence Design Systems,
Inc. (a)
9,915,705
14,893
Intuit, Inc.
9,787,829
32,523
Palo Alto Networks, Inc. (a)
11,025,622
12,643
ServiceNow, Inc. (a)
9,945,869
See Notes to Financial Statements
Page 21
First Trust Growth StrengthTM ETF (FTGS)
Portfolio of Investments (Continued)
June 30, 2024 (Unaudited)
Shares
Description
Value
COMMON STOCKS (Continued)
Software (Continued)
17,684
Synopsys, Inc. (a)
$10,523,041
35,761
Workday, Inc., Class A (a)
7,994,729
 
59,192,795
Specialty Retail — 2.2%
96,697
TJX (The) Cos., Inc.
10,646,340
Textiles, Apparel & Luxury
Goods — 3.8%
11,315
Deckers Outdoor Corp. (a)
10,952,354
95,476
NIKE, Inc., Class B
7,196,026
 
18,148,380
Total Common Stocks
480,910,174
(Cost $455,276,713)
MONEY MARKET FUNDS — 0.1%
413,460
Dreyfus Government Cash
Management Fund,
Institutional Shares -
5.19% (b)
413,460
(Cost $413,460)
Total Investments — 100.0%
481,323,634
(Cost $455,690,173)
Net Other Assets and
Liabilities — (0.0)%
(78,036
)
Net Assets — 100.0%
$481,245,598
 
(a)
Non-income producing security.
(b)
Rate shown reflects yield as of June 30, 2024.
Valuation Inputs
A summary of the inputs used to value the Fund’s investments as of June 30, 2024 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements):
 
 
Total
Value at
6/30/2024
Level 1
Quoted
Prices
Level 2
Significant
Observable
Inputs
Level 3
Significant
Unobservable
Inputs
Common Stocks*
$ 480,910,174
$ 480,910,174
$ —
$ —
Money Market
Funds
 413,460
 413,460
 —
 —
Total Investments
$481,323,634
$481,323,634
$—
$—
 
*
See Portfolio of Investments for industry breakout.
See Notes to Financial Statements
Page 22
First Trust Indxx Aerospace & Defense ETF (MISL)
Portfolio of Investments
June 30, 2024 (Unaudited)
 
Shares
Description
Value
COMMON STOCKS — 99.9%
Aerospace & Defense — 83.2%
8,007
AAR Corp. (a)
$582,109
6,359
AeroVironment, Inc. (a)
1,158,355
7,795
Astronics Corp. (a)
156,134
29,281
Boeing (The) Co. (a)
5,329,435
8,636
Curtiss-Wright Corp.
2,340,183
3,308
Ducommun, Inc. (a)
192,062
17,246
General Dynamics Corp.
5,003,754
12,945
HEICO Corp.
2,894,631
18,780
Hexcel Corp.
1,172,811
38,786
Howmet Aerospace, Inc.
3,010,957
8,951
Huntington Ingalls Industries,
Inc.
2,204,900
27,570
Intuitive Machines, Inc. (a)
90,981
33,712
Kratos Defense & Security
Solutions, Inc. (a)
674,577
12,251
L3Harris Technologies, Inc.
2,751,330
59,355
Leonardo DRS, Inc. (a)
1,514,146
11,023
Lockheed Martin Corp.
5,148,843
13,417
Mercury Systems, Inc. (a)
362,125
7,230
Moog, Inc., Class A
1,209,579
1,601
National Presto Industries, Inc.
120,283
5,442
Northrop Grumman Corp.
2,372,440
110,548
Rocket Lab USA, Inc. (a)
530,630
49,597
RTX Corp.
4,979,043
26,229
Spirit AeroSystems Holdings,
Inc., Class A (a)
862,147
26,419
Textron, Inc.
2,268,335
4,068
TransDigm Group, Inc.
5,197,318
17,372
Triumph Group, Inc. (a)
267,703
4,520
Virgin Galactic Holdings,
Inc. (a)
38,104
13,628
Woodward, Inc.
2,376,451
 
54,809,366
Diversified Telecommunication
Services — 1.0%
56,647
AST SpaceMobile, Inc. (a)
657,672
Professional Services — 15.7%
5,037
CACI International, Inc.,
Class A (a)
2,166,565
30,527
KBR, Inc.
1,958,002
19,743
Leidos Holdings, Inc.
2,880,109
23,918
Parsons Corp. (a)
1,956,731
11,673
Science Applications
International Corp.
1,372,161
 
10,333,568
Total Common Stocks
65,800,606
(Cost $57,474,332)
Shares
Description
Value
MONEY MARKET FUNDS — 0.1%
56,663
Dreyfus Government Cash
Management Fund,
Institutional Shares -
5.19% (b)
$56,663
(Cost $56,663)
Total Investments — 100.0%
65,857,269
(Cost $57,530,995)
Net Other Assets and
Liabilities — (0.0)%
(25,594
)
Net Assets — 100.0%
$65,831,675
 
(a)
Non-income producing security.
(b)
Rate shown reflects yield as of June 30, 2024.
Valuation Inputs
A summary of the inputs used to value the Fund’s investments as of June 30, 2024 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements):
 
 
Total
Value at
6/30/2024
Level 1
Quoted
Prices
Level 2
Significant
Observable
Inputs
Level 3
Significant
Unobservable
Inputs
Common Stocks*
$ 65,800,606
$ 65,800,606
$ —
$ —
Money Market Funds
 56,663
 56,663
 —
 —
Total Investments
$65,857,269
$65,857,269
$—
$—
 
*
See Portfolio of Investments for industry breakout.
See Notes to Financial Statements
Page 23
First Trust Bloomberg Inflation Sensitive Equity ETF (FTIF)
Portfolio of Investments
June 30, 2024 (Unaudited)
 
Shares
Description
Value
COMMON STOCKS — 99.7%
Aerospace & Defense — 4.1%
168
General Dynamics Corp.
$48,743
96
Lockheed Martin Corp.
44,842
 
93,585
Building Products — 4.7%
312
Advanced Drainage Systems,
Inc.
50,042
140
Carlisle Cos., Inc.
56,729
 
106,771
Chemicals — 10.7%
550
CF Industries Holdings, Inc.
40,766
798
Dow, Inc.
42,334
460
LyondellBasell Industries N.V.,
Class A
44,004
1,226
Mosaic (The) Co.
35,431
812
Olin Corp.
38,286
392
RPM International, Inc.
42,210
 
243,031
Containers & Packaging —
4.2%
216
Avery Dennison Corp.
47,229
268
Packaging Corp. of America
48,926
 
96,155
Electrical Equipment — 1.7%
140
Rockwell Automation, Inc.
38,539
Electronic Equipment,
Instruments & Components
— 1.7%
276
Keysight Technologies, Inc. (a)
37,743
Energy Equipment & Services
— 10.0%
1,498
ChampionX Corp.
49,748
1,210
Halliburton Co.
40,874
4,052
Patterson-UTI Energy, Inc.
41,979
842
Schlumberger N.V.
39,725
448
Weatherford
International PLC (a)
54,858
 
227,184
Ground Transportation —
1.8%
178
Union Pacific Corp.
40,274
Hotel & Resort REITs — 3.5%
2,248
Host Hotels & Resorts, Inc.
40,419
398
Ryman Hospitality Properties,
Inc.
39,744
 
80,163
Industrial Conglomerates —
1.8%
400
3M Co.
40,876
Shares
Description
Value
 
Machinery — 15.1%
148
Caterpillar, Inc.
$49,299
182
Cummins, Inc.
50,401
284
Dover Corp.
51,248
594
Fortive Corp.
44,016
448
PACCAR, Inc.
46,117
96
Parker-Hannifin Corp.
48,558
344
Westinghouse Air Brake
Technologies Corp.
54,369
 
344,008
Metals & Mining — 3.6%
2,144
Cleveland-Cliffs, Inc. (a)
32,996
370
Steel Dynamics, Inc.
47,915
 
80,911
Oil, Gas & Consumable Fuels
— 27.0%
1,220
APA Corp.
35,917
966
Devon Energy Corp.
45,788
282
Diamondback Energy, Inc.
56,454
362
EOG Resources, Inc.
45,565
1,812
Marathon Oil Corp.
51,950
770
Matador Resources Co.
45,892
1,026
Murphy Oil Corp.
42,312
996
Ovintiv, Inc.
46,682
996
PBF Energy, Inc., Class A
45,836
3,218
Permian Resources Corp.
51,971
1,130
SM Energy Co.
48,850
6,682
Southwestern Energy Co. (a)
44,970
336
Valero Energy Corp.
52,671
 
614,858
Residential REITs — 2.1%
176
Essex Property Trust, Inc.
47,907
Retail REITs — 3.8%
654
Regency Centers Corp.
40,679
306
Simon Property Group, Inc.
46,451
 
87,130
Specialized REITs — 3.9%
886
Gaming and Leisure Properties,
Inc.
40,056
412
Lamar Advertising Co., Class A
49,247
 
89,303
Total Common Stocks
2,268,438
(Cost $2,205,568)
See Notes to Financial Statements
Page 24
First Trust Bloomberg Inflation Sensitive Equity ETF (FTIF)
Portfolio of Investments (Continued)
June 30, 2024 (Unaudited)
Shares
Description
Value
MONEY MARKET FUNDS — 0.2%
4,482
Dreyfus Government Cash
Management Fund,
Institutional Shares -
5.19% (b)
$4,482
(Cost $4,482)
Total Investments — 99.9%
2,272,920
(Cost $2,210,050)
Net Other Assets and
Liabilities — 0.1%
1,409
Net Assets — 100.0%
$2,274,329
 
(a)
Non-income producing security.
(b)
Rate shown reflects yield as of June 30, 2024.
 
Abbreviations throughout the Portfolio of Investments:
REITs
–  Real Estate Investment Trusts
Valuation Inputs
A summary of the inputs used to value the Fund’s investments as of June 30, 2024 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements):
 
 
Total
Value at
6/30/2024
Level 1
Quoted
Prices
Level 2
Significant
Observable
Inputs
Level 3
Significant
Unobservable
Inputs
Common Stocks*
$ 2,268,438
$ 2,268,438
$ —
$ —
Money Market Funds
 4,482
 4,482
 —
 —
Total Investments
$2,272,920
$2,272,920
$—
$—
 
*
See Portfolio of Investments for industry breakout.
See Notes to Financial Statements
Page 25
First Trust Exchange-Traded Fund
Statements of Assets and Liabilities
June 30, 2024 (Unaudited)
 
 
First Trust Dow
Jones Select
MicroCap Index
Fund
(FDM)
First Trust
Morningstar
Dividend
Leaders Index
Fund
(FDL)
First Trust US
Equity
Opportunities
ETF
(FPX)
First Trust
NYSE® Arca®
Biotechnology
Index Fund
(FBT)
ASSETS:
Investments, at value
$171,518,482
$3,859,975,433
$702,137,477
$1,108,915,831
Receivables:
Investment securities sold
617,482
—
—
—
Dividends
112,104
13,158,091
281,229
1,604
Reclaims
268
—
10,993
69,294
Securities lending income
50
—
2,533
—
Capital shares sold
—
—
—
—
Prepaid expenses
4,223
25,540
6,123
7,999
Total Assets
172,252,609
3,873,159,064
702,438,355
1,108,994,728
 
LIABILITIES:
Due to custodian
—
—
—
—
Payables:
Investment securities purchased
613,848
—
—
—
Investment advisory fees
64,154
969,739
231,860
368,996
Licensing fees
50,420
891,588
169,370
222,052
Audit and tax fees
14,617
14,482
14,641
14,350
Shareholder reporting fees
9,632
150,533
33,009
60,604
Trustees’ fees
17
—
—
—
Capital shares redeemed
—
—
—
—
Collateral for securities on loan
—
—
1,383,752
—
Other liabilities
20,877
308,022
59,668
98,730
Total Liabilities
773,565
2,334,364
1,892,300
764,732
NET ASSETS
$171,479,044
$3,870,824,700
$700,546,055
$1,108,229,996
 
NET ASSETS consist of:
Paid-in capital
$223,885,849
$4,214,541,522
$1,226,648,344
$1,719,544,264
Par value
28,550
1,021,000
70,500
72,000
Accumulated distributable earnings (loss)
(52,435,355)
(344,737,822)
(526,172,789)
(611,386,268)
NET ASSETS
$171,479,044
$3,870,824,700
$700,546,055
$1,108,229,996
NET ASSET VALUE, per share
$60.06
$37.91
$99.37
$153.92
Number of shares outstanding (unlimited number of
shares authorized, par value $0.01 per share)
2,855,000
102,100,002
7,050,002
7,200,002
Investments, at cost
$162,779,600
$3,758,047,604
$585,190,119
$1,033,521,968
Securities on loan, at value
$—
$—
$1,333,262
$—
See Notes to Financial Statements
Page 26
 
First Trust Dow
Jones Internet
Index Fund
(FDN)
First Trust
Capital Strength®
ETF
(FTCS)
First Trust Value
Line® Dividend
Index Fund
(FVD)
First Trust
Growth
StrengthTM ETF
(FTGS)
First Trust Indxx
Aerospace &
Defense ETF
(MISL)
First Trust
Bloomberg
Inflation Sensitive
Equity ETF
(FTIF)
$6,024,966,684
$8,571,822,163
$9,189,701,504
$481,323,634
$65,857,269
$2,272,920
1,987,078
—
4,069,429
—
—
—
24,685
10,001,008
16,899,212
134,092
7,133
2,528
—
—
2,449,386
—
—
—
—
—
—
—
—
—
40,977,309
—
—
1,522,929
—
—
26,842
34,390
54,260
—
—
—
6,067,982,598
8,581,857,561
9,213,173,791
482,980,655
65,864,402
2,275,448
—
898,737
516
—
—
—
40,982,509
—
—
1,521,815
—
—
1,879,609
3,436,805
3,711,180
213,242
32,727
1,119
894,469
—
2,414,612
—
—
—
14,424
14,524
14,712
—
—
—
119,223
239,264
379,001
—
—
—
—
—
—
—
—
—
—
—
4,078,396
—
—
—
120,285
—
—
—
—
—
307,202
478,235
559,568
—
—
—
44,317,721
5,067,565
11,157,985
1,735,057
32,727
1,119
$6,023,664,877
$8,576,789,996
$9,202,015,806
$481,245,598
$65,831,675
$2,274,329
$7,055,952,778
$8,125,742,724
$9,015,824,657
$454,177,925
$57,616,715
$2,230,209
294,000
1,020,500
2,256,409
158,000
23,500
1,000
(1,032,581,901)
450,026,772
183,934,740
26,909,673
8,191,460
43,120
$6,023,664,877
$8,576,789,996
$9,202,015,806
$481,245,598
$65,831,675
$2,274,329
$204.89
$84.04
$40.78
$30.46
$28.01
$22.74
29,400,002
102,050,002
225,640,884
15,800,002
2,350,002
100,002
$5,560,871,753
$7,552,541,737
$8,646,959,974
$455,690,173
$57,530,995
$2,210,050
$117,909
$—
$—
$—
$—
$—
See Notes to Financial Statements
Page 27
First Trust Exchange-Traded Fund
Statements of Operations
For the Six Months Ended June 30, 2024 (Unaudited)
 
 
First Trust Dow
Jones Select
MicroCap Index
Fund
(FDM)
First Trust
Morningstar
Dividend
Leaders Index
Fund
(FDL)
First Trust US
Equity
Opportunities
ETF
(FPX)
INVESTMENT INCOME:
Dividends
$2,171,950
$98,557,814
$1,875,876
Securities lending income (net of fees)
24,733
—
158,155
Foreign withholding tax
—
—
—
Total investment income
2,196,683
98,557,814
2,034,031
 
EXPENSES:
Investment advisory fees
426,611
 
5,858,001
 
1,469,898
 
Licensing fees
35,649
1,821,765
367,480
Accounting and administration fees
35,300
566,882
120,531
Audit and tax fees
14,534
14,492
14,545
Shareholder reporting fees
11,803
156,739
30,892
Custodian fees
4,377
(46,644)
(6,642)
Transfer agent fees
4,266
61,704
18,374
Trustees’ fees and expenses
4,096
5,861
4,337
Listing fees
3,871
8,671
3,871
Legal fees
1,896
52,572
9,411
Other expenses
1,385
34,246
4,121
Total expenses
543,788
8,534,289
2,036,818
Less fees waived by the investment advisor
(31,855)
—
—
Net expenses
511,933
8,534,289
2,036,818
NET INVESTMENT INCOME (LOSS)
1,684,750
90,023,525
(2,787)
 
NET REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) on:
Investments
189,879
(98,824,926)
3,862,907
In-kind redemptions
—
182,778,927
24,008,768
Foreign currency transactions
—
—
—
Net realized gain (loss)
189,879
83,954,001
27,871,675
Net change in unrealized appreciation (depreciation) on:
Investments
(4,100,690)
126,831,961
(486,403)
Foreign currency translation
—
—
—
Net change in unrealized appreciation (depreciation)
(4,100,690)
126,831,961
(486,403)
NET REALIZED AND UNREALIZED GAIN (LOSS)
(3,910,811)
210,785,962
27,385,272
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS
$(2,226,061)
$300,809,487
$27,382,485
 
(a)
Fund is subject to a unitary fee (see Note 3 in the Notes to Financial Statements).
See Notes to Financial Statements
Page 28
 
First Trust NYSE®
Arca® Biotechnology
Index Fund
(FBT)
First Trust Dow Jones
Internet Index Fund
(FDN)
First Trust Capital
Strength® ETF
(FTCS)
First Trust Value
Line® Dividend Index
Fund
(FVD)
First Trust Growth
StrengthTM ETF
(FTGS)
$1,431,248
$9,353,898
$77,854,135
$142,455,214
$1,097,195
572
2,557
—
—
—
—
—
—
(3,093,374)
—
1,431,820
9,356,455
77,854,135
139,361,840
1,097,195
2,323,564
 
11,913,560
 
21,181,319
 
23,910,168
 
694,436
 (a)
461,695
1,845,556
96,229
5,025,764
—
195,333
716,598
875,089
855,492
—
14,488
14,492
14,522
14,734
—
59,875
186,716
287,045
387,779
—
(18,355)
8,747
(102,757)
(154,733)
—
26,954
88,358
121,887
136,702
—
4,530
6,928
8,311
8,780
—
3,871
4,832
2,285
15,856
—
16,273
67,064
106,333
139,033
—
8,151
20,296
61,508
84,879
—
3,096,379
14,873,147
22,651,771
30,424,454
694,436
—
—
—
—
—
3,096,379
14,873,147
22,651,771
30,424,454
694,436
(1,664,559)
(5,516,692)
55,202,364
108,937,386
402,759
(39,564,110)
(661,180,690)
(186,217,566)
(31,616,404)
(5,606,105)
29,272,235
272,768,552
513,159,582
473,019,866
7,074,458
—
—
—
(5,719)
—
(10,291,875)
(388,412,138)
326,942,016
441,397,743
1,468,353
(23,871,109)
971,143,010
107,477,665
(360,869,086)
18,197,328
—
—
—
3,842
—
(23,871,109)
971,143,010
107,477,665
(360,865,244)
18,197,328
(34,162,984)
582,730,872
434,419,681
80,532,499
19,665,681
$(35,827,543)
$577,214,180
$489,622,045
$189,469,885
$20,068,440
See Notes to Financial Statements
Page 29
First Trust Exchange-Traded Fund
Statements of Operations (Continued)
For the Six Months Ended June 30, 2024 (Unaudited)
 
 
First Trust
Indxx Aerospace
& Defense ETF
(MISL)
First Trust
Bloomberg
Inflation
Sensitive Equity
ETF
(FTIF)
INVESTMENT INCOME:
Dividends
$277,494
$17,965
Securities lending income (net of fees)
—
—
Foreign withholding tax
—
—
Total investment income
277,494
17,965
 
EXPENSES:
Investment advisory fees
160,806
 (a)
4,026
 (a)
Licensing fees
—
—
Accounting and administration fees
—
—
Audit and tax fees
—
—
Shareholder reporting fees
—
—
Custodian fees
—
—
Transfer agent fees
—
—
Trustees’ fees and expenses
—
—
Listing fees
—
—
Legal fees
—
—
Other expenses
—
—
Total expenses
160,806
4,026
Less fees waived by the investment advisor
—
—
Net expenses
160,806
4,026
NET INVESTMENT INCOME (LOSS)
116,688
13,939
 
NET REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) on:
Investments
(22,087)
(2,819)
In-kind redemptions
—
—
Foreign currency transactions
—
—
Net realized gain (loss)
(22,087)
(2,819)
Net change in unrealized appreciation (depreciation) on:
Investments
5,293,256
13,815
Foreign currency translation
—
—
Net change in unrealized appreciation (depreciation)
5,293,256
13,815
NET REALIZED AND UNREALIZED GAIN (LOSS)
5,271,169
10,996
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS
$5,387,857
$24,935
 
(a)
Fund is subject to a unitary fee (see Note 3 in the Notes to Financial Statements).
See Notes to Financial Statements
Page 30
This page intentionally left blank.
Page 31
First Trust Exchange-Traded Fund
Statements of Changes in Net Assets
 
 
First Trust Dow Jones Select
MicroCap Index Fund (FDM)
First Trust Morningstar Dividend
Leaders Index Fund (FDL)
 
Six Months
Ended
6/30/2024 
(Unaudited)
Year
Ended
12/31/2023 
Six Months
Ended
6/30/2024 
(Unaudited)
Year
Ended
12/31/2023 
OPERATIONS:
Net investment income (loss)
$1,684,750
$3,003,967
$90,023,525
$206,206,556
Net realized gain (loss)
189,879
(4,424,117)
83,954,001
80,210,578
Net change in unrealized appreciation (depreciation)
(4,100,690)
22,992,909
126,831,961
(249,758,782)
Net increase (decrease) in net assets resulting from
operations
(2,226,061)
21,572,759
300,809,487
36,658,352
 
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment operations
(1,600,798)
(3,022,144)
(84,684,941)
(206,188,898)
 
SHAREHOLDER TRANSACTIONS:
Proceeds from shares sold
2,923,727
 
23,930,860
 
870,156,518
 
1,747,025,494
 
Cost of shares redeemed
—
 
(14,540,849)
 
(1,186,254,370)
 
(2,408,514,348)
 
Net increase (decrease) in net assets resulting from
shareholder transactions
2,923,727
9,390,011
(316,097,852)
(661,488,854)
Total increase (decrease) in net assets
(903,132)
27,940,626
(99,973,306)
(831,019,400)
 
NET ASSETS:
Beginning of period
172,382,176
144,441,550
3,970,798,006
4,801,817,406
End of period
$171,479,044
$172,382,176
$3,870,824,700
$3,970,798,006
 
CHANGES IN SHARES OUTSTANDING:
Shares outstanding, beginning of period
2,805,000
2,605,000
110,700,002
131,400,002
Shares sold
50,000
450,000
22,850,000
49,150,000
Shares redeemed
—
(250,000)
(31,450,000)
(69,850,000)
Shares outstanding, end of period
2,855,000
2,805,000
102,100,002
110,700,002
See Notes to Financial Statements
Page 32
 
First Trust US Equity Opportunities
ETF (FPX)
First Trust NYSE® Arca®
Biotechnology Index Fund (FBT)
First Trust Dow Jones Internet Index
Fund (FDN)
Six Months
Ended
6/30/2024 
(Unaudited)
Year
Ended
12/31/2023 
Six Months
Ended
6/30/2024 
(Unaudited)
Year
Ended
12/31/2023 
Six Months
Ended
6/30/2024 
(Unaudited)
Year
Ended
12/31/2023 
$(2,787)
$1,937,836
$(1,664,559)
$(4,202,661)
$(5,516,692)
$(13,138,352)
27,871,675
(13,044,002)
(10,291,875)
25,741,350
(388,412,138)
80,815,318
(486,403)
156,996,014
(23,871,109)
(607,012)
971,143,010
1,755,649,051
27,382,485
145,889,848
(35,827,543)
20,931,677
577,214,180
1,823,326,017
(79,920)
(2,404,856)
—
—
—
—
5,025,173
 
27,613,553
 
14,956,321
 
45,817,917
 
798,960,053
 
5,248,074,135
 
(78,692,118)
 
(227,281,860)
 
(158,652,305)
 
(262,351,148)
 
(1,311,418,978)
 
(4,665,330,390)
 
(73,666,945)
(199,668,307)
(143,695,984)
(216,533,231)
(512,458,925)
582,743,745
(46,364,380)
(56,183,315)
(179,523,527)
(195,601,554)
64,755,255
2,406,069,762
746,910,435
803,093,750
1,287,753,523
1,483,355,077
5,958,909,622
3,552,839,860
$700,546,055
$746,910,435
$1,108,229,996
$1,287,753,523
$6,023,664,877
$5,958,909,622
7,800,002
10,200,002
8,150,002
9,600,002
31,950,002
28,850,002
50,000
300,000
100,000
300,000
4,050,000
32,000,000
(800,000)
(2,700,000)
(1,050,000)
(1,750,000)
(6,600,000)
(28,900,000)
7,050,002
7,800,002
7,200,002
8,150,002
29,400,002
31,950,002
See Notes to Financial Statements
Page 33
First Trust Exchange-Traded Fund
Statements of Changes in Net Assets (Continued)
 
 
First Trust Capital Strength®
ETF (FTCS)
First Trust Value Line® Dividend
Index Fund (FVD)
 
Six Months
Ended
6/30/2024 
(Unaudited)
Year
Ended
12/31/2023 
Six Months
Ended
6/30/2024 
(Unaudited)
Year
Ended
12/31/2023 
OPERATIONS:
Net investment income (loss)
$55,202,364
$134,181,222
$108,937,386
$276,020,171
Net realized gain (loss)
326,942,016
210,182,791
441,397,743
386,276,738
Net change in unrealized appreciation (depreciation)
107,477,665
372,122,905
(360,865,244)
(260,437,368)
Net increase (decrease) in net assets resulting from
operations
489,622,045
716,486,918
189,469,885
401,859,541
 
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment operations
(52,797,311)
(133,727,407)
(109,365,927)
(274,259,890)
 
SHAREHOLDER TRANSACTIONS:
Proceeds from shares sold
2,389,624,743
 
1,899,324,126
 
701,183,970
 
666,352,515
 
Cost of shares redeemed
(2,993,644,120)
 
(2,430,246,599)
 
(2,373,135,083)
 
(2,442,760,000)
 
Net increase (decrease) in net assets resulting from
shareholder transactions
(604,019,377)
(530,922,473)
(1,671,951,113)
(1,776,407,485)
Total increase (decrease) in net assets
(167,194,643)
51,837,038
(1,591,847,155)
(1,648,807,834)
 
NET ASSETS:
Beginning of period
8,743,984,639
8,692,147,601
10,793,862,961
12,442,670,795
End of period
$8,576,789,996
$8,743,984,639
$9,202,015,806
$10,793,862,961
 
CHANGES IN SHARES OUTSTANDING:
Shares outstanding, beginning of period
109,250,002
116,100,002
266,190,884
311,940,884
Shares sold
29,500,000
25,600,000
16,950,000
16,650,000
Shares redeemed
(36,700,000)
(32,450,000)
(57,500,000)
(62,400,000)
Shares outstanding, end of period
102,050,002
109,250,002
225,640,884
266,190,884
 
(a)
Inception date is March 13, 2023, which is consistent with the commencement of investment operations and is the date the initial
creation units were established.
See Notes to Financial Statements
Page 34
 
First Trust Growth StrengthTM ETF
(FTGS)
First Trust Indxx Aerospace & Defense
ETF (MISL)
First Trust Bloomberg Inflation
Sensitive Equity ETF (FTIF)
Six Months
Ended
6/30/2024 
(Unaudited)
Year
Ended
12/31/2023 
Six Months
Ended
6/30/2024 
(Unaudited)
Year
Ended
12/31/2023 
Six Months
Ended
6/30/2024 
(Unaudited)
Period
Ended
12/31/2023 (a)
$402,759
$155,625
$116,688
$232,849
$13,939
$16,503
1,468,353
445,140
(22,087)
2,828,484
(2,819)
59,788
18,197,328
7,428,679
5,293,256
2,942,661
13,815
49,055
20,068,440
8,029,444
5,387,857
6,003,994
24,935
125,346
(313,335)
(160,091)
(139,421)
(247,120)
(12,420)
(16,931)
464,052,931
 
62,191,053
 
18,594,376
 
54,631,858
 
1,166,337
 
2,041,251
 
(67,769,424)
 
(5,877,891)
 
—
 
(20,629,990)
 
—
 
(1,054,189)
 
396,283,507
56,313,162
18,594,376
34,001,868
1,166,337
987,062
416,038,612
64,182,515
23,842,812
39,758,742
1,178,852
1,095,477
65,206,986
1,024,471
41,988,863
2,230,121
1,095,477
—
$481,245,598
$65,206,986
$65,831,675
$41,988,863
$2,274,329
$1,095,477
2,400,002
50,002
1,650,002
100,002
50,002
—
15,800,000
2,600,000
700,000
2,400,000
50,000
100,002
(2,400,000)
(250,000)
—
(850,000)
—
(50,000)
15,800,002
2,400,002
2,350,002
1,650,002
100,002
50,002
See Notes to Financial Statements
Page 35
First Trust Exchange-Traded Fund
Financial Highlights
For a share outstanding throughout each period
First Trust Dow Jones Select MicroCap Index Fund (FDM)
 
 
Six Months
Ended
6/30/2024 
(Unaudited)
Year Ended December 31,
 
2023
2022
2021
2020
2019
Net asset value, beginning of period
$61.46
$55.45
$63.87
$47.94
$51.09
$40.76
Income from investment operations:
Net investment income (loss)
0.59
 (a)
1.10
 (a)
1.00
 
0.64
 
0.80
 
0.66
 
Net realized and unrealized gain (loss)
(1.43
) 
6.02
 
(8.42
) 
15.98
 
(3.15
) 
10.37
 
Total from investment operations
(0.84
)
7.12
(7.42
)
16.62
(2.35
)
11.03
Distributions paid to shareholders from:
Net investment income
(0.56
) 
(1.11
) 
(1.00
) 
(0.69
) 
(0.80
) 
(0.70
) 
Net asset value, end of period
$60.06
 
$61.46
 
$55.45
 
$63.87
 
$47.94
 
$51.09
 
Total return (b)
(1.35
)% 
13.01
% 
(11.56
)% 
34.71
% 
(4.25
)% 
27.25
% 
 
Ratios to average net assets/supplemental
data:
Net assets, end of period (in 000’s)
$171,479
 
$172,382
 
$144,442
 
$188,737
 
$122,482
 
$156,067
 
Ratio of total expenses to average net assets
0.64
% (c)
0.68
% 
0.69
% 
0.69
% 
0.71
% 
0.70
% 
Ratio of net expenses to average net assets
0.60
% (c)
0.60
% 
0.60
% 
0.60
% 
0.60
% 
0.60
% 
Ratio of net investment income (loss) to
average net assets
1.97
% (c)
1.97
% 
1.72
% 
1.10
% 
1.88
% 
1.42
% 
Portfolio turnover rate (d)
5
% 
72
% 
84
% 
95
% 
95
% 
64
% 
 
(a)
Based on average shares outstanding.
(b)
Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all
distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not
reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is
calculated for the time period presented and is not annualized for periods of less than a year. The total returns would have been lower if certain
fees had not been waived and expenses reimbursed by the investment advisor.
(c)
Annualized.
(d)
Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities
received or delivered from processing creations or redemptions and in-kind transactions.
See Notes to Financial Statements
Page 36
First Trust Exchange-Traded Fund
Financial Highlights (Continued)
For a share outstanding throughout each period
First Trust Morningstar Dividend Leaders Index Fund (FDL)
 
 
Six Months
Ended
6/30/2024 
(Unaudited)
Year Ended December 31,
 
2023
2022
2021
2020
2019
Net asset value, beginning of
period
$35.87
$36.54
$35.54
$29.59
$32.58
$27.24
Income from investment
operations:
Net investment income (loss)
0.85
 (a)
1.59
 (a)
1.30
 
1.29
 
1.32
 
1.22
 
Net realized and unrealized gain
(loss)
2.01
 
(0.62
) 
1.01
 
5.95
 
(2.98
) 
5.34
 
Total from investment operations
2.86
0.97
2.31
7.24
(1.66
)
6.56
Distributions paid to
shareholders from:
Net investment income
(0.82
) 
(1.64
) 
(1.31
) 
(1.29
) 
(1.33
) 
(1.22
) 
Net asset value, end of period
$37.91
 
$35.87
 
$36.54
 
$35.54
 
$29.59
 
$32.58
 
Total return (b)
7.96
% 
2.90
% 
6.71
% 
24.76
% 
(4.42
)% 
24.36
% 
 
Ratios to average net
assets/supplemental data:
Net assets, end of period (in 000’s)
$3,870,825
 
$3,970,798
 
$4,801,817
 
$1,762,910
 
$1,399,483
 
$1,841,000
 
Ratio of total expenses to average
net assets
0.43
% (c)
0.44
% 
0.45
% 
0.46
% 
0.46
% 
0.46
% 
Ratio of net expenses to average
net assets
0.43
% (c)
0.44
% 
0.45
% 
0.45
% 
0.45
% 
0.45
% 
Ratio of net investment income
(loss) to average net assets
4.57
% (c)
4.52
% 
4.15
% 
3.90
% 
4.73
% 
4.06
% 
Portfolio turnover rate (d)
35
% 
46
% 
60
% 
59
% 
63
% 
39
% 
 
(a)
Based on average shares outstanding.
(b)
Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all
distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not
reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is
calculated for the time period presented and is not annualized for periods of less than a year. The total returns would have been lower if certain
fees had not been waived and expenses reimbursed by the investment advisor.
(c)
Annualized.
(d)
Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities
received or delivered from processing creations or redemptions and in-kind transactions.
See Notes to Financial Statements
Page 37
First Trust Exchange-Traded Fund
Financial Highlights (Continued)
For a share outstanding throughout each period
First Trust US Equity Opportunities ETF (FPX)
 
 
Six Months
Ended
6/30/2024 
(Unaudited)
Year Ended December 31,
 
2023
2022
2021
2020
2019
Net asset value, beginning of period
$95.76
$78.73
$122.49
$118.32
$80.41
$62.07
Income from investment operations:
Net investment income (loss)
(0.00
) (a) (b)
0.22
 (b)
0.90
 
0.08
 
0.24
 
0.58
 
Net realized and unrealized gain (loss)
3.62
 
17.07
 
(43.81
) 
4.26
 
38.01
 
18.30
 
Total from investment operations
3.62
17.29
(42.91
)
4.34
38.25
18.88
Distributions paid to shareholders
from:
Net investment income
(0.01
) 
(0.26
) 
(0.85
) 
(0.17
) 
(0.34
) 
(0.54
) 
Net asset value, end of period
$99.37
 
$95.76
 
$78.73
 
$122.49
 
$118.32
 
$80.41
 
Total return (c)
3.78
% 
22.01
% 
(35.05
)% 
3.67
% 
47.76
% 
30.45
% 
 
Ratios to average net
assets/supplemental data:
Net assets, end of period (in 000’s)
$700,546
 
$746,910
 
$803,094
 
$1,855,705
 
$1,946,373
 
$1,330,835
 
Ratio of total expenses to average net
assets
0.55
% (d) (e)
0.58
% 
0.58
% 
0.57
% 
0.57
% 
0.58
% 
Ratio of net investment income (loss) to
average net assets
(0.00
)% (d) (e) (f)
0.25
% 
0.86
% 
0.07
% 
0.26
% 
0.79
% 
Portfolio turnover rate (g)
40
% 
123
% 
115
% 
85
% 
75
% 
81
% 
 
(a)
Amount represents less than $0.01.
(b)
Based on average shares outstanding.
(c)
Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all
distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not
reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is
calculated for the time period presented and is not annualized for periods of less than a year.
(d)
Annualized.
(e)
Ratio of total expenses to average net assets and ratio of net investment income (loss) to average net assets do not reflect the Fund’s
proportionate share of expenses and income of underlying investment companies in which the Fund invests.
(f)
Amount is less than 0.01%.
(g)
Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities
received or delivered from processing creations or redemptions and in-kind transactions.
See Notes to Financial Statements
Page 38
First Trust Exchange-Traded Fund
Financial Highlights (Continued)
For a share outstanding throughout each period
First Trust NYSE® Arca® Biotechnology Index Fund (FBT)
 
 
Six Months
Ended
6/30/2024 
(Unaudited)
Year Ended December 31,
 
2023
2022
2021
2020
2019
Net asset value, beginning of
period
$158.01
$154.52
$161.97
$168.08
$148.84
$124.26
Income from investment
operations:
Net investment income (loss)
(0.22
) (a)
(0.46
) (a)
(0.37
) 
(0.42
) 
(0.45
) 
(0.51
) 
Net realized and unrealized gain
(loss)
(3.87
) 
3.95
 
(7.08
) 
(5.69
) 
19.69
 
25.09
 
Total from investment operations
(4.09
)
3.49
(7.45
)
(6.11
)
19.24
24.58
Net asset value, end of period
$153.92
 
$158.01
 
$154.52
 
$161.97
 
$168.08
 
$148.84
 
Total return (b)
(2.58
)% 
2.26
% 
(4.60
)% 
(3.64
)% 
12.93
% 
19.78
% 
 
Ratios to average net
assets/supplemental data:
Net assets, end of period (in 000’s)
$1,108,230
 
$1,287,754
 
$1,483,355
 
$1,708,757
 
$2,042,173
 
$1,800,927
 
Ratio of total expenses to average
net assets
0.53
% (c)
0.56
% 
0.56
% 
0.55
% 
0.55
% 
0.55
% 
Ratio of net investment income
(loss) to average net assets
(0.29
)% (c)
(0.30
)% 
(0.25
)% 
(0.23
)% 
(0.28
)% 
(0.25
)% 
Portfolio turnover rate (d)
52
% 
30
% 
39
% 
39
% 
26
% 
31
% 
 
(a)
Based on average shares outstanding.
(b)
Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all
distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not
reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is
calculated for the time period presented and is not annualized for periods of less than a year.
(c)
Annualized.
(d)
Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities
received or delivered from processing creations or redemptions and in-kind transactions.
See Notes to Financial Statements
Page 39
First Trust Exchange-Traded Fund
Financial Highlights (Continued)
For a share outstanding throughout each period
First Trust Dow Jones Internet Index Fund (FDN)
 
 
Six Months
Ended
6/30/2024 
(Unaudited)
Year Ended December 31,
 
2023
2022
2021
2020
2019
Net asset value, beginning of
period
$186.51
$123.15
$226.02
$212.37
$139.12
$116.66
Income from investment
operations:
Net investment income (loss)
(0.18
) (a)
(0.42
) (a)
(0.48
) 
(0.73
) 
(0.34
) 
(0.14
) 
Net realized and unrealized gain
(loss)
18.56
 
63.78
 
(102.39
) 
14.38
 
73.59
 
22.60
 
Total from investment operations
18.38
63.36
(102.87
)
13.65
73.25
22.46
Net asset value, end of period
$204.89
 
$186.51
 
$123.15
 
$226.02
 
$212.37
 
$139.12
 
Total return (b)
9.86
% 
51.44
% 
(45.51
)% 
6.43
% 
52.65
% 
19.26
% 
 
Ratios to average net
assets/supplemental data:
Net assets, end of period (in
000’s)
$6,023,665
 
$5,958,910
 
$3,552,840
 
$9,967,573
 
$11,075,029
 
$7,853,367
 
Ratio of total expenses to average
net assets
0.49
% (c)
0.51
% 
0.52
% 
0.51
% 
0.51
% 
0.52
% 
Ratio of net investment income
(loss) to average net assets
(0.18
)% (c)
(0.27
)% 
(0.26
)% 
(0.30
)% 
(0.20
)% 
(0.10
)% 
Portfolio turnover rate (d)
20
% 
24
% 
24
% 
19
% 
39
% 
28
% 
 
(a)
Based on average shares outstanding.
(b)
Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all
distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not
reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is
calculated for the time period presented and is not annualized for periods of less than a year.
(c)
Annualized.
(d)
Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities
received or delivered from processing creations or redemptions and in-kind transactions.
See Notes to Financial Statements
Page 40
First Trust Exchange-Traded Fund
Financial Highlights (Continued)
For a share outstanding throughout each period
First Trust Capital Strength® ETF (FTCS)
 
 
Six Months
Ended
6/30/2024 
(Unaudited)
Year Ended December 31,
 
2023
2022
2021
2020
2019
Net asset value, beginning of
period
$80.04
$74.87
$84.52
$67.55
$60.37
$48.29
Income from investment
operations:
Net investment income (loss)
0.52
 (a)
1.16
 (a)
0.90
 
0.91
 
0.63
 
0.76
 
Net realized and unrealized gain
(loss)
3.99
 
5.19
 
(9.63
) 
16.95
 
7.18
 
12.08
 
Total from investment operations
4.51
6.35
(8.73
)
17.86
7.81
12.84
Distributions paid to
shareholders from:
Net investment income
(0.51
) 
(1.18
) 
(0.92
) 
(0.89
) 
(0.63
) 
(0.76
) 
Net asset value, end of period
$84.04
 
$80.04
 
$74.87
 
$84.52
 
$67.55
 
$60.37
 
Total return (b)
5.63
% 
8.57
% 
(10.28
)% 
26.61
% 
13.07
% 
26.72
% 
 
Ratios to average net
assets/supplemental data:
Net assets, end of period (in 000’s)
$8,576,790
 
$8,743,985
 
$8,692,148
 
$9,491,932
 
$7,021,909
 
$3,392,623
 
Ratio of total expenses to average
net assets
0.52
% (c)
0.54
% 
0.55
% 
0.55
% 
0.56
% 
0.58
% 
Ratio of net investment income
(loss) to average net assets
1.26
% (c)
1.56
% 
1.21
% 
1.23
% 
1.10
% 
1.46
% 
Portfolio turnover rate (d)
44
% 
104
% 
135
% 
117
% 
133
% 
125
% 
 
(a)
Based on average shares outstanding.
(b)
Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all
distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not
reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is
calculated for the time period presented and is not annualized for periods of less than a year.
(c)
Annualized.
(d)
Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities
received or delivered from processing creations or redemptions and in-kind transactions.
See Notes to Financial Statements
Page 41
First Trust Exchange-Traded Fund
Financial Highlights (Continued)
For a share outstanding throughout each period
First Trust Value Line® Dividend Index Fund (FVD)
 
 
Six Months
Ended
6/30/2024 
(Unaudited)
Year Ended December 31,
 
2023
2022
2021
2020
2019
Net asset value, beginning of
period
$40.55
$39.89
$43.00
$35.10
$36.03
$29.07
Income from investment
operations:
Net investment income (loss)
0.45
 (a)
0.93
 (a)
0.82
 
0.74
 
0.79
 
0.73
 
Net realized and unrealized
gain (loss)
0.25
 
0.68
 
(3.10
) 
7.91
 
(0.91
) 
6.96
 
Total from investment
operations
0.70
1.61
(2.28
)
8.65
(0.12
)
7.69
Distributions paid to
shareholders from:
Net investment income
(0.47
) 
(0.95
) 
(0.83
) 
(0.75
) 
(0.81
) 
(0.73
) 
Net asset value, end of period
$40.78
 
$40.55
 
$39.89
 
$43.00
 
$35.10
 
$36.03
 
Total return (b)
1.71
% 
4.10
% 
(5.24
)% 
24.86
% 
(0.04
)% 
26.60
% 
 
Ratios to average net
assets/supplemental data:
Net assets, end of period (in
000’s)
$9,202,016
 
$10,793,863
 
$12,442,671
 
$12,954,187
 
$10,149,204
 
$9,665,219
 
Ratio of total expenses to
average net assets
0.61
% (c)
0.60
% 
0.65
% 
0.67
% 
0.70
% 
0.71
% 
Ratio of net expenses to
average net assets
0.61
% (c)
0.60
% 
0.65
% 
0.67
% 
0.70
% 
0.70
% 
Ratio of net investment
income (loss) to average net
assets
2.19
% (c)
2.36
% 
2.04
% 
1.91
% 
2.47
% 
2.36
% 
Portfolio turnover rate (d)
47
% 
57
% 
53
% 
47
% 
86
% 
53
% 
 
(a)
Based on average shares outstanding.
(b)
Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all
distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not
reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is
calculated for the time period presented and is not annualized for periods of less than a year. The total returns would have been lower if certain
fees had not been waived and expenses reimbursed by the investment advisor.
(c)
Annualized.
(d)
Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities
received or delivered from processing creations or redemptions and in-kind transactions.
See Notes to Financial Statements
Page 42
First Trust Exchange-Traded Fund
Financial Highlights (Continued)
For a share outstanding throughout each period
First Trust Growth StrengthTM ETF (FTGS)
 
 
Six Months
Ended
6/30/2024 
(Unaudited)
Year
Ended
12/31/2023
Period
Ended
12/31/2022 (a)
 
Net asset value, beginning of period
$27.17
$20.49
$20.29
Income from investment operations:
Net investment income (loss)
0.05
 (b)
0.22
 (b)
0.04
 
Net realized and unrealized gain (loss)
3.27
 
6.63
 
0.20
 
Total from investment operations
3.32
6.85
0.24
Distributions paid to shareholders from:
Net investment income
(0.03
) 
(0.17
) 
(0.04
) 
Net realized gain
—
 
(0.00
) (c)
—
 
Total distributions
(0.03
) 
(0.17
) 
(0.04
) 
Net asset value, end of period
$30.46
 
$27.17
 
$20.49
 
Total return (d)
12.24
% 
33.54
% 
1.20
% 
 
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000’s)
$481,246
 
$65,207
 
$1,024
 
Ratio of total expenses to average net assets
0.60
% (e)
0.60
% 
0.60
% (e)
Ratio of net investment income (loss) to average net assets
0.35
% (e)
0.89
% 
1.11
% (e)
Portfolio turnover rate (f)
37
% 
66
% 
25
% 
 
(a)
Inception date is October 25, 2022, which is consistent with the commencement of investment operations and is the date the initial creation units
were established.
(b)
Based on average shares outstanding.
(c)
Amount represents less than $0.01.
(d)
Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all
distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not
reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is
calculated for the time period presented and is not annualized for periods of less than a year.
(e)
Annualized.
(f)
Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities
received or delivered from processing creations or redemptions and in-kind transactions.
See Notes to Financial Statements
Page 43
First Trust Exchange-Traded Fund
Financial Highlights (Continued)
For a share outstanding throughout each period
First Trust Indxx Aerospace & Defense ETF (MISL)
 
 
Six Months
Ended
6/30/2024 
(Unaudited)
Year
Ended
12/31/2023
Period
Ended
12/31/2022 (a)
 
Net asset value, beginning of period
$25.45
$22.30
$20.79
Income from investment operations:
Net investment income (loss)
0.06
 (b)
0.20
 (b)
0.02
 
Net realized and unrealized gain (loss)
2.57
 
3.11
 
1.51
 
Total from investment operations
2.63
3.31
1.53
Distributions paid to shareholders from:
Net investment income
(0.07
) 
(0.14
) 
(0.02
) 
Net realized gain
—
 
(0.02
) 
—
 
Total distributions
(0.07
) 
(0.16
) 
(0.02
) 
Net asset value, end of period
$28.01
 
$25.45
 
$22.30
 
Total return (c)
10.33
% 
14.88
% 
7.34
% 
 
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000’s)
$65,832
 
$41,989
 
$2,230
 
Ratio of total expenses to average net assets
0.60
% (d)
0.60
% 
0.60
% (d)
Ratio of net investment income (loss) to average net assets
0.44
% (d)
0.86
% 
0.53
% (d)
Portfolio turnover rate (e)
10
% 
12
% 
2
% 
 
(a)
Inception date is October 25, 2022, which is consistent with the commencement of investment operations and is the date the initial creation units
were established.
(b)
Based on average shares outstanding.
(c)
Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all
distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not
reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is
calculated for the time period presented and is not annualized for periods of less than a year.
(d)
Annualized.
(e)
Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities
received or delivered from processing creations or redemptions and in-kind transactions.
See Notes to Financial Statements
Page 44
First Trust Exchange-Traded Fund
Financial Highlights (Continued)
For a share outstanding throughout each period
First Trust Bloomberg Inflation Sensitive Equity ETF (FTIF)
 
 
Six Months
Ended
6/30/2024 
(Unaudited)
Period
Ended
12/31/2023 (a)
 
Net asset value, beginning of period
$21.91
$19.69
Income from investment operations:
Net investment income (loss) (b)
0.23
 
0.33
 
Net realized and unrealized gain (loss)
0.76
 
2.23
 
Total from investment operations
0.99
2.56
Distributions paid to shareholders from:
Net investment income
(0.16
) 
(0.34
) 
Net asset value, end of period
$22.74
 
$21.91
 
Total return (c)
4.50
% 
13.06
% 
 
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000’s)
$2,274
 
$1,095
 
Ratio of total expenses to average net assets
0.60
% (d)
0.60
% (d)
Ratio of net investment income (loss) to average net assets
2.08
% (d)
1.98
% (d)
Portfolio turnover rate (e)
27
% 
44
% 
 
(a)
Inception date is March 13, 2023, which is consistent with the commencement of investment operations and is the date the initial creation units
were established.
(b)
Based on average shares outstanding.
(c)
Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all
distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not
reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is
calculated for the time period presented and is not annualized for periods of less than a year.
(d)
Annualized.
(e)
Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities
received or delivered from processing creations or redemptions and in-kind transactions.
See Notes to Financial Statements
Page 45
Notes to Financial Statements
First Trust Exchange-Traded Fund
June 30, 2024 (Unaudited)
1. Organization
First Trust Exchange-Traded Fund (the “Trust”) is an open-end management investment company organized as a Massachusetts business trust on August 8, 2003, and is registered with the Securities and Exchange Commission under the Investment Company Act of 1940, as amended (the “1940 Act”).
This report covers the ten funds (each a “Fund” and collectively, the “Funds”) listed below:
 
First Trust Dow Jones Select MicroCap Index Fund – (NYSE Arca, Inc. (“NYSE Arca”) ticker “FDM”)
First Trust Morningstar Dividend Leaders Index Fund – (NYSE Arca ticker “FDL”)
First Trust US Equity Opportunities ETF – (NYSE Arca ticker “FPX”)
First Trust NYSE® Arca® Biotechnology Index Fund – (NYSE Arca ticker “FBT”)
First Trust Dow Jones Internet Index Fund – (NYSE Arca ticker “FDN”)
First Trust Capital Strength® ETF – (Nasdaq, Inc. (“Nasdaq”) ticker “FTCS”)
First Trust Value Line® Dividend Index Fund – (NYSE Arca ticker “FVD”)
First Trust Growth StrengthTM ETF – (Nasdaq ticker “FTGS”)
First Trust Indxx Aerospace & Defense ETF – (NYSE Arca ticker “MISL”)
First Trust Bloomberg Inflation Sensitive Equity ETF – (NYSE Arca ticker “FTIF”)
Each of FDN, FDL, FPX, FTGS, MISL and FTIF operates as a non-diversified series of the Trust. Each of FDM, FBT, FTCS and FVD operates as a diversified open-end management investment company as defined in section 5(b) of the 1940 Act. Each Fund represents a separate series of shares of beneficial interest in the Trust. Unlike conventional mutual funds, each Fund issues and redeems shares on a continuous basis at net asset value (“NAV”), only in large blocks of shares known as “Creation Units.” The investment objective of each Fund is to seek investment results that correspond generally to the price and yield (before the Fund’s fees and expenses) of the following indices:
 
Fund
Index
First Trust Dow Jones Select MicroCap Index Fund
Dow Jones Select MicroCap IndexSM
First Trust Morningstar Dividend Leaders Index Fund
Morningstar® Dividend Leaders IndexSM
First Trust US Equity Opportunities ETF
IPOX®-100 U.S. Index
First Trust NYSE® Arca® Biotechnology Index Fund
NYSE® Arca® Biotechnology Index
First Trust Dow Jones Internet Index Fund
Dow Jones Internet Composite IndexSM
First Trust Capital Strength® ETF
The Capital StrengthTM Index
First Trust Value Line® Dividend Index Fund
Value Line® Dividend Index
First Trust Growth StrengthTM ETF
The Growth StrengthTM Index
First Trust Indxx Aerospace & Defense ETF
Indxx US Aerospace & Defense Index
First Trust Bloomberg Inflation Sensitive Equity ETF
Bloomberg Inflation Sensitive Equity Index
2. Significant Accounting Policies
The Funds are each considered an investment company and follow accounting and reporting guidance under Financial Accounting Standards Board Accounting Standards Codification Topic 946, “Financial Services-Investment Companies.” The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of the financial statements. The preparation of the financial statements in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.
A. Portfolio Valuation
Each Fund’s NAV is determined daily as of the close of regular trading on the New York Stock Exchange (“NYSE”), normally 4:00 p.m. Eastern time, on each day the NYSE is open for trading. If the NYSE closes early on a valuation day, the NAV is determined as of that time. Each Fund’s NAV is calculated by dividing the value of all assets of each Fund (including accrued interest and dividends), less all liabilities (including accrued expenses and dividends declared but unpaid), by the total number of shares outstanding.
Each Fund’s investments are valued daily at market value or, in the absence of market value with respect to any portfolio securities, at fair value. Market value prices represent readily available market quotations such as last sale or official closing prices from a national
Page 46
Notes to Financial Statements (Continued)
First Trust Exchange-Traded Fund
June 30, 2024 (Unaudited)
or foreign exchange (i.e., a regulated market) and are primarily obtained from third-party pricing services. Fair value prices represent any prices not considered market value prices and are either obtained from a third-party pricing service or are determined by the Pricing Committee of the Funds’ investment advisor, First Trust Advisors L.P. (“First Trust” or the “Advisor”), in accordance with valuation procedures approved by the Trust’s Board of Trustees, and in accordance with provisions of the 1940 Act and rules thereunder. Investments valued by the Advisor’s Pricing Committee, if any, are footnoted as such in the footnotes to the Portfolio of Investments. Each Fund’s investments are valued as follows:
Common stocks and other equity securities listed on any national or foreign exchange (excluding Nasdaq and the London Stock Exchange Alternative Investment Market (“AIM”)) are valued at the last sale price on the exchange on which they are principally traded or, for Nasdaq and AIM securities, the official closing price. Securities traded on more than one securities exchange are valued at the last sale price or official closing price, as applicable, at the close of the securities exchange representing the primary exchange for such securities.
Shares of open-end funds are valued based on NAV per share.
Equity securities traded in an over-the-counter market are valued at the close price or the last trade price.
Overnight repurchase agreements are valued at amortized cost when it represents the most appropriate reflection of fair market value.
Certain securities may not be able to be priced by pre-established pricing methods. Such securities may be valued by the Advisor’s Pricing Committee at fair value. These securities generally include, but are not limited to, restricted securities (securities which may not be publicly sold without registration under the Securities Act of 1933, as amended) for which a third-party pricing service is unable to provide a market price; securities whose trading has been formally suspended; a security whose market or fair value price is not available from a pre-established pricing source; a security with respect to which an event has occurred that is likely to materially affect the value of the security after the market has closed but before the calculation of a Fund’s NAV or make it difficult or impossible to obtain a reliable market quotation; and a security whose price, as provided by the third-party pricing service, does not reflect the security’s fair value. As a general principle, the current fair value of a security would appear to be the amount which the owner might reasonably expect to receive for the security upon its current sale. When fair value prices are used, generally they will differ from market quotations or official closing prices on the applicable exchanges. A variety of factors may be considered in determining the fair value of such securities, including, but not limited to, the following:
 1)
the last sale price on the exchange on which they are principally traded or, for Nasdaq and AIM securities, the official closing price;
 2)
the type of security;
 3)
the size of the holding;
 4)
the initial cost of the security;
 5)
transactions in comparable securities;
 6)
price quotes from dealers and/or third-party pricing services;
 7)
relationships among various securities;
 8)
information obtained by contacting the issuer, analysts, or the appropriate stock exchange;
 9)
an analysis of the issuer’s financial statements;
10)
the existence of merger proposals or tender offers that might affect the value of the security; and
11)
other relevant factors.
In addition, differences between the prices used to calculate a Fund’s NAV and the prices used by such Fund’s corresponding index could result in a difference between a Fund’s performance and the performance of its underlying index.
The Funds are subject to fair value accounting standards that define fair value, establish the framework for measuring fair value and provide a three-level hierarchy for fair valuation based upon the inputs to the valuation as of the measurement date. The three levels of the fair value hierarchy are as follows:
Page 47
Notes to Financial Statements (Continued)
First Trust Exchange-Traded Fund
June 30, 2024 (Unaudited)
•  Level 1 – Level 1 inputs are quoted prices in active markets for identical investments. An active market is a market in which transactions for the investment occur with sufficient frequency and volume to provide pricing information on an ongoing basis.
•  Level 2 – Level 2 inputs are observable inputs, either directly or indirectly, and include the following:
o  Quoted prices for similar investments in active markets.
o  Quoted prices for identical or similar investments in markets that are non-active. A non-active market is a market where there are few transactions for the investment, the prices are not current, or price quotations vary substantially either over time or among market makers, or in which little information is released publicly.
o  Inputs other than quoted prices that are observable for the investment (for example, interest rates and yield curves observable at commonly quoted intervals, volatilities, prepayment speeds, loss severities, credit risks, and default rates).
o  Inputs that are derived principally from or corroborated by observable market data by correlation or other means.
•  Level 3 – Level 3 inputs are unobservable inputs. Unobservable inputs may reflect the reporting entity’s own assumptions about the assumptions that market participants would use in pricing the investment.
The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in those investments. A summary of the inputs used to value each Fund’s investments as of June 30, 2024, is included with each Fund’s Portfolio of Investments.
B. Securities Transactions and Investment Income
Securities transactions are recorded as of the trade date. Realized gains and losses from securities transactions are recorded on the identified cost basis. Dividend income is recorded on the ex-dividend date. Interest income, if any, is recorded on the accrual basis.
Withholding taxes and tax reclaims on foreign dividends have been provided for in accordance with each Fund’s understanding of the applicable country’s tax rules and rates.
Distributions received from a Fund’s investments in real estate investment trusts (“REITs”) may be comprised of return of capital, capital gains, and income. The actual character of the amounts received during the year are not known until after the REITs’ fiscal year end. A Fund records the character of distributions received from the REITs during the year based on estimates available. The characterization of distributions received by a Fund may be subsequently revised based on information received from the REITs after their tax reporting periods conclude.
C. Offsetting on the Statements of Assets and Liabilities
Offsetting assets and liabilities requires entities to disclose both gross and net information about instruments and transactions eligible for offset on the Statements of Assets and Liabilities and disclose instruments and transactions subject to master netting or similar agreements. These disclosure requirements are intended to help investors and other financial statement users better assess the effect or potential effect of offsetting arrangements on a Fund’s financial position. The transactions subject to offsetting disclosures are derivative instruments, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions.
This disclosure, if applicable, is included within each Fund’s Portfolio of Investments under the heading “Offsetting Assets and Liabilities.” For financial reporting purposes, the Funds do not offset financial assets and financial liabilities that are subject to master netting arrangements (“MNAs”) or similar agreements on the Statements of Assets and Liabilities. MNAs provide the right, in the event of default (including bankruptcy and insolvency), for the non-defaulting counterparty to liquidate the collateral and calculate the net exposure to the defaulting party or request additional collateral.
D. Securities Lending
The Funds may lend securities representing up to 33 1/3% of the value of their total assets to broker-dealers, banks and other institutions to generate additional income. When a Fund loans its portfolio securities, it will receive, at the inception of each loan, collateral equal to at least 102% (for domestic securities) or 105% (for international securities) of the market value of the loaned securities. The collateral amount is valued at the beginning of each business day and is compared to the market value of the loaned securities from the prior business day to determine if additional collateral is required. If additional collateral is required, a request is sent to the borrower. Securities lending involves the risk that the Fund may lose money because the borrower of the Fund’s loaned securities fails to return the securities in a timely manner or at all. The Fund could also lose money in the event of (i) a decline in the value of the collateral provided for the loaned securities, (ii) a decline in the value of any investments made with cash collateral or (iii)
Page 48
Notes to Financial Statements (Continued)
First Trust Exchange-Traded Fund
June 30, 2024 (Unaudited)
an increase in the value of the loaned securities if the borrower does not increase the collateral accordingly and the borrower fails to return the securities. These events could also trigger adverse tax consequences for the Funds.
Under the Funds’ Securities Lending Agency Agreement, the securities lending agent will generally bear the risk that a borrower may default on its obligation to return loaned securities. Brown Brothers Harriman & Co. (“BBH”) acts as the Funds’ securities lending agent and is responsible for executing the lending of the portfolio securities to creditworthy borrowers for FDL, FTCS, and FVD. Prior to June 10, 2024 for FDM, FBT, and FDN’s securities lending agent was BBH. For FPX, and effective June 10, 2024 for FDM, FBT, and FDN the Bank of New York Mellon (“BNY”) acts as the Funds’ securities lending agent and is responsible for executing the lending of the portfolio securities to creditworthy borrowers. The Funds, however, will be responsible for the risks associated with the investment of cash collateral. A Fund may lose money on its investment of cash collateral, which may affect its ability to repay the collateral to the borrower without the use of other Fund assets. Each Fund that engages in securities lending receives compensation (net of any rebate and securities lending agent fees) for lending its securities. Compensation can be in the form of fees received from the securities lending agent or dividends or interest earned from the investment of cash collateral. The fees received from the securities lending agent are accrued daily. The dividend and interest earned on the securities loaned is accounted for in the same manner as other dividend and interest income. At June 30, 2024, only FPX and FDN had securities in the securities lending program. During the six months ended June 30, 2024, FDM, FPX, FBT, and FDN participated in the securities lending program.
In the event of a default by a borrower with respect to any loan, BNY will exercise any and all remedies provided under the applicable borrower agreement to make the Funds whole. These remedies include purchasing replacement securities by applying the collateral held from the defaulting broker against the purchase cost of the replacement securities. If, despite such efforts by BNY to exercise these remedies, a Fund sustains losses as a result of a borrower’s default, BNY will indemnify the Fund by purchasing replacement securities at its own expense, or paying the Fund an amount equal to the market value of the replacement securities, subject to certain limitations which are set forth in detail in the Securities Lending Agency Agreement between the Trust on behalf of the Funds and BNY.
E. Repurchase Agreements
Repurchase agreements involve the purchase of securities subject to the seller’s agreement to repurchase the securities at a mutually agreed upon date and price, under the terms of a Master Repurchase Agreement (“MRA”). During the term of a repurchase agreement, the value of the underlying securities held as collateral on behalf of a Fund, including accrued interest, is required to exceed the value of the repurchase agreement, including accrued interest. The underlying securities for all repurchase agreements are held at the Funds’ custodian or designated sub-custodians under tri-party repurchase agreements.
MRAs govern transactions between a Fund and select counterparties. The MRAs contain provisions for, among other things, initiation, income payments, events of default, and maintenance of collateral for repurchase agreements.
Repurchase agreements received for lending securities are collateralized by U.S. Treasury securities. The U.S. Treasury securities are held in a joint custody account at BNY on behalf of the Funds participating in the securities lending program. In the event the counterparty defaults on the repurchase agreement, the U.S. Treasury securities can either be maintained as part of a Fund’s portfolio or sold for cash. A Fund could suffer a loss to the extent that the proceeds from the sale of the underlying collateral held by the Fund are less than the repurchase price and the Fund’s costs associated with the delay and enforcement of the MRA.
While the Funds may invest in repurchase agreements, any repurchase agreements held by the Funds during the six months ended June 30, 2024, were received as collateral for lending securities.
F. Dividends and Distributions to Shareholders
Dividends from net investment income of each Fund, if any, are declared and paid quarterly, or as the Board of Trustees may determine from time to time. Distributions of net realized capital gains earned by each Fund, if any, are distributed at least annually. Each Fund may also designate a portion of the amount paid to redeeming shareholders as a distribution for tax purposes.
Distributions from net investment income and realized capital gains are determined in accordance with federal income tax regulations, which may differ from U.S. GAAP. Certain capital accounts in the financial statements are periodically adjusted for permanent differences in order to reflect their tax character. These permanent differences are primarily due to the varying treatment of income and gain/loss on portfolio securities held by the Funds and have no impact on net assets or NAV per share. Temporary differences, which arise from recognizing certain items of income, expense and gain/loss in different periods for financial statement and tax purposes, will reverse at some time in the future.
Page 49
Notes to Financial Statements (Continued)
First Trust Exchange-Traded Fund
June 30, 2024 (Unaudited)
The tax character of distributions paid by each Fund during the fiscal period ended December 31, 2023 was as follows:
 
 
Distributions
paid from
Ordinary
Income
Distributions
paid from
Capital
Gains
Distributions
paid from
Return of
Capital
First Trust Dow Jones Select MicroCap Index Fund
$3,022,144
$—
$—
First Trust Morningstar Dividend Leaders Index Fund
206,188,898
—
—
First Trust US Equity Opportunities ETF
2,404,856
—
—
First Trust NYSE® Arca® Biotechnology Index Fund
—
—
—
First Trust Dow Jones Internet Index Fund
—
—
—
First Trust Capital Strength® ETF
133,727,407
—
—
First Trust Value Line® Dividend Index Fund
274,259,890
—
—
First Trust Growth StrengthTM ETF
160,004
87
—
First Trust Indxx Aerospace & Defense ETF
247,120
—
—
First Trust Bloomberg Inflation Sensitive Equity ETF
16,931
—
—
As of December 31, 2023, the components of distributable earnings on a tax basis for each Fund were as follows:
 
 
Undistributed
Ordinary
Income
Accumulated
Capital and
Other
Gain (Loss)
Net
Unrealized
Appreciation
(Depreciation)
First Trust Dow Jones Select MicroCap Index Fund
$38,433
$(60,407,373
)
$11,760,444
First Trust Morningstar Dividend Leaders Index Fund
889,346
(443,919,569
)
117,832,145
First Trust US Equity Opportunities ETF
78,995
(670,354,553
)
116,800,204
First Trust NYSE® Arca® Biotechnology Index Fund
—
(647,288,577
)
71,729,852
First Trust Dow Jones Internet Index Fund
—
(891,208,115
)
(718,587,966
)
First Trust Capital Strength® ETF
619,558
(874,114,791
)
886,697,271
First Trust Value Line® Dividend Index Fund
3,303,745
(541,442,011
)
641,969,048
First Trust Growth StrengthTM ETF
—
(196,325
)
7,350,893
First Trust Indxx Aerospace & Defense ETF
14,091
—
2,928,933
First Trust Bloomberg Inflation Sensitive Equity ETF
—
(7,544
)
38,149
G. Income Taxes
Each Fund intends to qualify or continue to qualify as a regulated investment company by complying with the requirements under Subchapter M of the Internal Revenue Code of 1986, as amended, which includes distributing substantially all of its net investment income and net realized gains to shareholders. Accordingly, no provision has been made for federal and state income taxes. However, due to the timing and amount of distributions, each Fund may be subject to an excise tax of 4% of the amount by which approximately 98% of each Fund’s taxable income exceeds the distributions from such taxable income for the calendar year.
The Funds are subject to accounting standards that establish a minimum threshold for recognizing, and a system for measuring, the benefits of a tax position taken or expected to be taken in a tax return. For all the Funds, with the exception of FTGS, MISL, and FTIF, the taxable years ended 2020, 2021, 2022, and 2023 remain open to federal and state audit. For FTGS and MISL, the taxable period ended 2022 and year ended 2023 remain open to federal and state audit. For FTIF, the taxable period ended 2023 remains open to federal and state audit. As of June 30, 2024, management has evaluated the application of these standards to the Funds and has determined that no provision for income tax is required in the Funds’ financial statements for uncertain tax positions.
Each Fund intends to utilize provisions of the federal income tax laws, which allow it to carry a realized capital loss forward indefinitely following the year of the loss and offset such loss against any future realized capital gains. Each Fund is subject to certain limitations under U.S. tax rules on the use of capital loss carryforwards and net unrealized built-in losses. These limitations apply when there has been a 50% change in ownership. At December 31, 2023, for federal income tax purposes, each applicable Fund had a capital loss carryforward available that is shown in the following table, to the extent provided by regulations, to offset future capital gains. To the extent that these loss carryforwards are used to offset future capital gains, it is probable that the capital gains so offset will not be distributed to each applicable Fund’s shareholders.
Page 50
Notes to Financial Statements (Continued)
First Trust Exchange-Traded Fund
June 30, 2024 (Unaudited)
 
 
Non-Expiring
Capital Loss
Carryforwards
First Trust Dow Jones Select MicroCap Index Fund
$60,407,373
First Trust Morningstar Dividend Leaders Index Fund
443,919,569
First Trust US Equity Opportunities ETF
670,354,553
First Trust NYSE® Arca® Biotechnology Index Fund
647,288,577
First Trust Dow Jones Internet Index Fund
891,208,115
First Trust Capital Strength® ETF
874,114,791
First Trust Value Line® Dividend Index Fund*
541,442,011
First Trust Growth StrengthTM ETF
196,325
First Trust Indxx Aerospace & Defense ETF
—
First Trust Bloomberg Inflation Sensitive Equity ETF
7,544
 
*
$11,007,161 of First Trust Value Line® Dividend Index Fund’s non-expiring net capital losses is subject to loss limitation resulting
from reorganization activity. This limitation generally reduces the utilization of these losses to a maximum of $364,518 per year.
Certain losses realized during the current fiscal period may be deferred and treated as occurring on the first day of the following fiscal year for federal income tax purposes. For the fiscal period ended December 31, 2023, the Funds had no net late year ordinary or capital losses.
As of June 30, 2024, the aggregate cost, gross unrealized appreciation, gross unrealized depreciation, and net unrealized appreciation/(depreciation) on investments (including short positions and derivatives, if any) for federal income tax purposes were as follows:
 
 
Tax Cost
Gross
Unrealized
Appreciation
Gross
Unrealized
(Depreciation)
Net Unrealized
Appreciation
(Depreciation)
First Trust Dow Jones Select MicroCap Index Fund
$162,779,600
$27,137,641
$(18,398,759
)
$8,738,882
First Trust Morningstar Dividend Leaders Index Fund
3,758,047,604
192,151,390
(90,223,561
)
101,927,829
First Trust US Equity Opportunities ETF
585,190,119
124,185,594
(7,238,236
)
116,947,358
First Trust NYSE® Arca® Biotechnology Index Fund
1,033,521,968
184,959,765
(109,565,902
)
75,393,863
First Trust Dow Jones Internet Index Fund
5,560,871,753
965,189,079
(501,094,148
)
464,094,931
First Trust Capital Strength® ETF
7,552,541,737
1,120,772,918
(101,492,492
)
1,019,280,426
First Trust Value Line® Dividend Index Fund
8,646,959,974
874,900,193
(332,158,663
)
542,741,530
First Trust Growth StrengthTM ETF
455,690,173
35,389,585
(9,756,124
)
25,633,461
First Trust Indxx Aerospace & Defense ETF
57,530,995
9,431,167
(1,104,893
)
8,326,274
First Trust Bloomberg Inflation Sensitive Equity ETF
2,210,050
107,425
(44,555
)
62,870
H. Expenses
Expenses that are directly related to one of the Funds are charged directly to the respective Fund, except for First Trust Growth StrengthTM ETF, First Trust Indxx Aerospace & Defense ETF, and First Trust Bloomberg Inflation Sensitive Equity ETF (the “Unitary Fee Funds”), for which expenses other than excluded expenses (discussed in Note 3) are paid by the Advisor. General expenses of the Trust are allocated to all the Funds based upon the net assets of each Fund.
First Trust has entered into licensing agreements with each of the following “Licensors” for the respective Funds:
 
Fund
Licensor
First Trust Dow Jones Select MicroCap Index Fund
S&P Dow Jones Indices, LLC
First Trust Morningstar Dividend Leaders Index Fund
Morningstar, Inc.
First Trust US Equity Opportunities ETF
IPOX® Schuster LLC
First Trust NYSE® Arca® Biotechnology Index Fund
ICE Data Indices, LLC
First Trust Dow Jones Internet Index Fund
S&P Dow Jones Indices, LLC
First Trust Capital Strength® ETF
Nasdaq, Inc.
First Trust Value Line® Dividend Index Fund
Value Line Publishing, LLC
Page 51
Notes to Financial Statements (Continued)
First Trust Exchange-Traded Fund
June 30, 2024 (Unaudited)
Fund
Licensor
First Trust Growth StrengthTM ETF
Nasdaq, Inc.
First Trust Indxx Aerospace & Defense ETF
Indxx, Inc.
First Trust Bloomberg Inflation Sensitive Equity ETF
Bloomberg Index Services Limited
The respective license agreements allow for the use by First Trust of certain trademarks and trade names of the respective Licensors. The Funds are sub-licensees to the applicable license agreement. The respective Funds are required to pay licensing fees, which are shown on the Statements of Operations.
3. Investment Advisory Fee, Affiliated Transactions and Other Fee Arrangements
First Trust, the investment advisor to the Funds, is a limited partnership with one limited partner, Grace Partners of DuPage L.P., and one general partner, The Charger Corporation. The Charger Corporation is an Illinois corporation controlled by James A. Bowen, Chief Executive Officer of First Trust. First Trust is responsible for the selection and ongoing monitoring of the securities in each Fund’s portfolio, managing the Funds’ business affairs and providing certain administrative services necessary for the management of the Funds.
For the Unitary Fee Funds, First Trust is paid an annual unitary management fee based on a percentage of each Fund’s average daily net assets and is responsible for the expenses of such Fund including the cost of transfer agency, custody, fund administration, legal, audit, license and other services, and excluding fee payments under the Investment Management Agreement, distribution and service fees pursuant to a Rule 12b-1 plan, if any, brokerage expenses, acquired fund fees and expenses, taxes, interest, and extraordinary expenses. The annual unitary management fee payable by each Fund to First Trust for these services will be reduced at certain levels of each Fund’s net assets (“breakpoints”) and calculated pursuant to the following schedule:
 
Breakpoints
FTGS
MISL
FTIF
Fund net assets up to and including $2.5 billion
0.600
%
0.600
%
0.600
%
Fund net assets greater than $2.5 billion up to and including
$5 billion
0.585
%
0.585
%
0.585
%
Fund net assets greater than $5 billion up to and including
$7.5 billion
0.570
%
0.570
%
0.570
%
Fund net assets greater than $7.5 billion up to and including
$10 billion
0.555
%
0.555
%
0.555
%
Fund net assets greater than $10 billion up to and including
$15 billion
0.540
%
0.540
%
0.540
%
Fund net assets greater than $15 billion
0.510
%
0.510
%
0.510
%
For the First Trust Dow Jones Select MicroCap Index Fund, First Trust Morningstar Dividend Leaders Index Fund, First Trust US Equity Opportunities ETF, First Trust NYSE® Arca® Biotechnology Index Fund, First Trust Dow Jones Internet Index Fund, First Trust Capital Strength® ETF and First Trust Value Line Dividend Index Fund (such Funds, the “Expense Cap Funds”), First Trust is paid an annual management fee of each Fund’s average daily net assets and calculated pursuant to the following schedule:
 
Breakpoints
FDM
FDL
FPX
FBT
FDN
FTCS
FVD
Fund net assets up to and including $2.5 billion
0.5000
%
0.3000
%
0.40
%
0.40
%
0.40
%
0.5000
%
0.5000
%
Fund net assets greater than $2.5 billion up to and including
$5 billion
0.4875
%
0.2925
%
0.39
%
0.39
%
0.39
%
0.4875
%
0.4875
%
Fund net assets greater than $5 billion up to and including
$7.5 billion
0.4750
%
0.2850
%
0.38
%
0.38
%
0.38
%
0.4750
%
0.4750
%
Fund net assets greater than $7.5 billion up to and including
$10 billion
0.4625
%
0.2775
%
0.37
%
0.37
%
0.37
%
0.4625
%
0.4625
%
Fund net assets greater than $10 billion up to and including
$15 billion
0.4500
%
0.2700
%
0.36
%
0.36
%
0.36
%
0.4500
%
0.4500
%
Fund net assets greater than $15 billion
0.4250
%
0.2550
%
0.34
%
0.34
%
0.34
%
0.4250
%
0.4250
%
For the Expense Cap Funds, the Trust and the Advisor have entered into an Expense Reimbursement and Fee Waiver Agreement (“Agreement”) in which First Trust has agreed to waive fees and/or reimburse Fund expenses to the extent that the operating expenses of each Fund (excluding interest expense, brokerage commissions and other trading expenses, acquired fund fees and expenses, taxes
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Notes to Financial Statements (Continued)
First Trust Exchange-Traded Fund
June 30, 2024 (Unaudited)
and extraordinary expenses) exceed the following amount as a percentage of average daily net assets per year (the “Expense Cap”). The Expense Cap will be in effect until at least April 30, 2025.
 
 
Expense Cap
First Trust Dow Jones Select MicroCap Index Fund
0.60
%
First Trust Morningstar Dividend Leaders Index Fund
0.45
%
First Trust US Equity Opportunities ETF
0.60
%
First Trust NYSE® Arca® Biotechnology Index Fund
0.60
%
First Trust Dow Jones Internet Index Fund
0.60
%
First Trust Capital Strength® ETF
0.65
%
First Trust Value Line® Dividend Index Fund
0.70
%
The Trust has multiple service agreements with BNY. Under the service agreements, BNY performs custodial, fund accounting, certain administrative services, and transfer agency services for each Fund. As custodian, BNY is responsible for custody of each Fund’s assets. As fund accountant and administrator, BNY is responsible for maintaining the books and records of each Fund’s securities and cash. As transfer agent, BNY is responsible for maintaining shareholder records for each Fund. BNY is a subsidiary of The Bank of New York Mellon Corporation, a financial holding company.
Each Trustee who is not an officer or employee of First Trust, any sub-advisor or any of their affiliates (“Independent Trustees”) is paid a fixed annual retainer that is allocated equally among each fund in the First Trust Fund Complex. Each Independent Trustee is also paid an annual per fund fee that varies based on whether the fund is a closed-end or other actively managed fund, a target outcome fund or an index fund.
Additionally, the Chairs of the Audit Committee, Nominating and Governance Committee and Valuation Committee, the Vice Chair of the Audit Committee, the Lead Independent Trustee and the Vice Lead Independent Trustee are paid annual fees to serve in such capacities, with such compensation allocated pro rata among each fund in the First Trust Fund Complex based on net assets. Independent Trustees are reimbursed for travel and out-of-pocket expenses in connection with all meetings. The Committee Chairs, the Audit Committee Vice Chair, the Lead Independent Trustee and the Vice Lead Independent Trustee rotate periodically in serving in such capacities. The officers and “Interested” Trustee receive no compensation from the Trust for acting in such capacities.
4. Purchases and Sales of Securities
For the six months ended June 30, 2024, the cost of purchases and proceeds from sales of investments for each Fund, excluding short-term investments and in-kind transactions, were as follows:
 
 
Purchases
Sales
First Trust Dow Jones Select MicroCap Index Fund
$8,484,656
$8,392,663
First Trust Morningstar Dividend Leaders Index Fund
1,399,499,267
1,391,454,873
First Trust US Equity Opportunities ETF
292,124,556
292,791,361
First Trust NYSE® Arca® Biotechnology Index Fund
610,941,206
612,573,978
First Trust Dow Jones Internet Index Fund
1,228,625,744
1,235,294,004
First Trust Capital Strength® ETF
3,918,521,989
3,856,131,136
First Trust Value Line® Dividend Index Fund
4,703,411,047
4,708,707,157
First Trust Growth StrengthTM ETF
89,073,206
88,938,104
First Trust Indxx Aerospace & Defense ETF
5,212,013
5,211,832
First Trust Bloomberg Inflation Sensitive Equity ETF
397,344
394,105
For the six months ended June 30, 2024, the cost of in-kind purchases and proceeds from in-kind sales for each Fund were as follows:
 
 
Purchases
Sales
First Trust Dow Jones Select MicroCap Index Fund
$2,922,118
$—
First Trust Morningstar Dividend Leaders Index Fund
866,591,976
1,183,874,107
First Trust US Equity Opportunities ETF
5,023,292
78,649,408
First Trust NYSE® Arca® Biotechnology Index Fund
14,949,222
158,619,857
First Trust Dow Jones Internet Index Fund
798,573,566
1,310,537,313
First Trust Capital Strength® ETF
2,338,946,107
2,992,562,546
Page 53
Notes to Financial Statements (Continued)
First Trust Exchange-Traded Fund
June 30, 2024 (Unaudited)
 
Purchases
Sales
First Trust Value Line® Dividend Index Fund
$700,981,489
$2,366,560,896
First Trust Growth StrengthTM ETF
464,113,504
68,129,912
First Trust Indxx Aerospace & Defense ETF
18,573,898
—
First Trust Bloomberg Inflation Sensitive Equity ETF
1,162,556
—
5. Creations, Redemptions and Transaction Fees
Each Fund generally issues and redeems its shares in primary market transactions through a creation and redemption mechanism and does not sell or redeem individual shares. Instead, financial entities known as “Authorized Participants” have contractual arrangements with a Fund or one of the Fund’s service providers to purchase and redeem Fund shares directly with the Fund in Creation Units. Prior to the start of trading on every business day, a Fund publishes through the National Securities Clearing Corporation the “basket” of securities, cash or other assets that it will accept in exchange for a Creation Unit of the Fund’s shares. An Authorized Participant that wishes to effectuate a creation of a Fund’s shares deposits with the Fund the “basket” of securities, cash or other assets identified by the Fund that day, and then receives the Creation Unit of the Fund’s shares in return for those assets. After purchasing a Creation Unit, the Authorized Participant may continue to hold the Fund’s shares or sell them in the secondary market. The redemption process is the reverse of the purchase process: the Authorized Participant redeems a Creation Unit of a Fund’s shares for a basket of securities, cash or other assets. The combination of the creation and redemption process with secondary market trading in a Fund’s shares and underlying securities provides arbitrage opportunities that are designed to help keep the market price of a Fund’s shares at or close to the NAV per share of the Fund.
Each Fund imposes fees in connection with the purchase of Creation Units. These fees may vary based upon various fact-based circumstances, including, but not limited to, the composition of the securities included in the Creation Unit or the countries in which the transactions are settled. The price for each Creation Unit will equal the daily NAV per share of a Fund times the number of shares in a Creation Unit, plus the fees described above and, if applicable, any operational processing and brokerage costs, transfer fees, stamp taxes and part or all of the spread between the expected bid and offer side of the market related to the securities comprising the creation basket.
Each Fund also imposes fees in connection with the redemption of Creation Units. These fees may vary based upon various fact-based circumstances, including, but not limited to, the composition of the securities included in the Creation Unit or the countries in which the transactions are settled. The price received for each Creation Unit will equal the daily NAV per share of a Fund times the number of shares in a Creation Unit, minus the fees described above and, if applicable, any operational processing and brokerage costs, transfer fees, stamp taxes and part or all of the spread between the expected bid and offer side of the market related to the securities comprising the redemption basket. Investors who use the services of a broker or other such intermediary in addition to an Authorized Participant to effect a redemption of a Creation Unit may also be assessed an amount to cover the cost of such services. The redemption fee charged by a Fund will comply with Rule 22c-2 of the 1940 Act which limits redemption fees to no more than 2% of the value of the shares redeemed.
6. Distribution Plan
The Board of Trustees adopted a Distribution and Service Plan pursuant to Rule 12b-1 under the 1940 Act. In accordance with the Rule 12b-1 plan, the Funds are authorized to pay an amount up to 0.25% of their average daily net assets each year to reimburse First Trust Portfolios L.P. (“FTP”), the distributor of the Funds, for amounts expended to finance activities primarily intended to result in the sale of Creation Units or the provision of investor services. FTP may also use this amount to compensate securities dealers or other persons that are Authorized Participants for providing distribution assistance, including broker-dealer and shareholder support and educational and promotional services.
No 12b-1 fees are currently paid by the Funds, and pursuant to a contractual arrangement, no 12b-1 fees will be paid any time before April 30, 2025.
7. Indemnification
The Trust, on behalf of the Funds, has a variety of indemnification obligations under contracts with its service providers. The Trust’s maximum exposure under these arrangements is unknown. However, the Trust has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.
Page 54
Notes to Financial Statements (Continued)
First Trust Exchange-Traded Fund
June 30, 2024 (Unaudited)
8. Subsequent Events
Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were issued and has determined that there were no subsequent events requiring recognition or disclosure in the financial statements that have not already been disclosed.
Page 55
Other Information
First Trust Exchange-Traded Fund
June 30, 2024 (Unaudited)
Changes in and Disagreements with Accountants (Item 8 of Form N-CSR)
There were no changes in or disagreements with the Funds’ accountants during the six months ended June 30, 2024.
Proxy Disclosures (Item 9 of Form N-CSR)
There were no matters submitted for vote by shareholders of any Fund during the six months ended June 30, 2024.
Remuneration Paid to Directors, Officers, and Others (Item 10 of Form N-CSR)
For the Expense Cap Funds (as defined in the Notes to Financial Statements), the applicable aggregate remuneration paid by each Fund during the period covered by the report is included in the Statements of Operations. For the Unitary Fee Funds (as defined in the Notes to Financial Statements), Independent Trustees and any member of any advisory board of each Fund are compensated through the unitary management fee paid by each Fund to the advisor and not directly by each Fund. The investment advisory fee paid is included in the Statements of Operations.
Statement Regarding the Basis for the Board’s Approval of Investment Advisory Contract (Item 11 of Form N-CSR)
The Board of Trustees of First Trust Exchange-Traded Fund (the “Trust”), including the Independent Trustees, unanimously approved the continuation of the Investment Management Agreement (the “Agreement”) with First Trust Advisors L.P. (the “Advisor”) on behalf of the following series of the Trust (each a “Fund” and collectively, the “Funds”):
First Trust Capital Strength® ETF (FTCS)
First Trust Dow Jones Internet Index Fund (FDN)
First Trust Dow Jones Select MicroCap Index Fund (FDM)
First Trust Morningstar Dividend Leaders Index Fund (FDL)
First Trust NYSE Arca Biotechnology Index Fund (FBT)
First Trust US Equity Opportunities ETF (FPX)
First Trust Value Line® Dividend Index Fund (FVD)
The Board approved the continuation of the Agreement for each Fund for a one-year period ending June 30, 2025 at a meeting held on June 2–3, 2024. The Board determined for each Fund that the continuation of the Agreement is in the best interests of the Fund in light of the nature, extent and quality of the services provided and such other matters as the Board considered to be relevant in the exercise of its business judgment.
To reach this determination for each Fund, the Board considered its duties under the Investment Company Act of 1940, as amended (the “1940 Act”), as well as under the general principles of state law, in reviewing and approving advisory contracts; the requirements of the 1940 Act in such matters; the fiduciary duty of investment advisors with respect to advisory agreements and compensation; the standards used by courts in determining whether investment company boards have fulfilled their duties; and the factors to be considered by the Board in voting on such agreements. At meetings held on April 16, 2024, April 25, 2024 and June 2–3, 2024, the Board, including the Independent Trustees, reviewed materials provided by the Advisor responding to requests for information from counsel to the Independent Trustees, submitted on behalf of the Independent Trustees, that, among other things, outlined: the services provided by the Advisor to each Fund (including the relevant personnel responsible for these services and their experience); the advisory fee rate schedule payable by each Fund as compared to fees charged to a peer group of funds (the “Expense Group”) and a broad peer universe of funds (the “Expense Universe”), each assembled by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent source, and as compared to fees charged to other clients of the Advisor, including other exchange-traded funds (“ETFs”) managed by the Advisor; the expense ratio of each Fund as compared to expense ratios of the funds in the Fund’s Expense Group and Expense Universe; performance information for each Fund, including comparisons of each Fund’s performance to that of one or more relevant benchmark indexes and to that of a performance group of funds and a broad performance universe of funds (the “Performance Universe”), each assembled by Broadridge; the nature of expenses incurred in providing services to each Fund and the potential for the Advisor to realize economies of scale, if any; profitability and other financial data for the Advisor; any indirect benefits to the Advisor and its affiliate, First Trust Portfolios L.P. (“FTP”); and information on the Advisor’s compliance program. The Board reviewed initial materials with the Advisor at the meeting held on April 25, 2024, prior to which the Independent Trustees and their counsel met separately to discuss the information provided by the Advisor. Following the April 25, 2024 meeting, counsel to the Independent Trustees, on behalf of the Independent Trustees, requested certain clarifications and supplements to the materials provided, and the information provided in response to those requests was considered at an executive session of the Independent Trustees and their counsel held prior to the June 2–3, 2024 meeting, as well as at the June meeting. The Board applied its business judgment to determine
Page 56
Other Information (Continued)
First Trust Exchange-Traded Fund
June 30, 2024 (Unaudited)
whether the arrangement between the Trust and the Advisor continues to be a reasonable business arrangement from each Fund’s perspective. The Board determined that, given the totality of the information provided with respect to the Agreement, the Board had received sufficient information to renew the Agreement. The Board considered that shareholders chose to invest or remain invested in a Fund knowing that the Advisor manages the Fund and knowing the Fund’s advisory fee.
In reviewing the Agreement for each Fund, the Board considered the nature, extent and quality of the services provided by the Advisor under the Agreement. The Board considered that the Advisor is responsible for the overall management and administration of the Trust and each Fund and reviewed all of the services provided by the Advisor to the Funds, as well as the background and experience of the persons responsible for such services. In reviewing the services provided, the Board noted the compliance program that had been developed by the Advisor and considered that it includes a robust program for monitoring the Advisor’s and each Fund’s compliance with the 1940 Act, as well as each Fund’s compliance with its investment objective, policies and restrictions. The Board also considered a report from the Advisor with respect to its risk management functions related to the operation of the Funds. Finally, as part of the Board’s consideration of the Advisor’s services, the Advisor, in its written materials and at the April 25, 2024 meeting, described to the Board the scope of its ongoing investment in additional personnel and infrastructure to maintain and improve the quality of services provided to the Funds and the other funds in the First Trust Fund Complex. In light of the information presented and the considerations made, the Board concluded that the nature, extent and quality of the services provided to the Trust and each Fund by the Advisor under the Agreement have been and are expected to remain satisfactory and that the Advisor has managed each Fund consistent with its investment objective, policies and restrictions.
The Board considered the advisory fee rate schedule payable by each Fund under the Agreement for the services provided. The Board considered that the Advisor agreed to extend the current expense cap for each Fund through April 30, 2026. The Board received and reviewed information showing the fee rates and expense ratios of the peer funds in the Expense Groups, as well as advisory and unitary fee rates charged by the Advisor to other fund (including ETFs) and non-fund clients, as applicable. Because each Fund’s Expense Group included peer funds that pay a unitary fee, the Board determined that expense ratios were the most relevant comparative data point. Based on the information provided, the Board noted that the total (net) expense ratio for each Fund was above the median total (net) expense ratio of the peer funds in its respective Expense Group. With respect to the Expense Groups, the Board discussed with Broadridge its methodology for assembling peer groups and discussed with the Advisor limitations in creating peer groups for index ETFs, including differences in underlying indexes and index-tracking methodologies that can result in greater management complexities across seemingly comparable ETFs, and different business models that may affect the pricing of services among ETF sponsors. The Board took these limitations and differences into account in considering the peer data. With respect to fees charged to other non-ETF clients, the Board considered differences between the Funds and other non-ETF clients that limited their comparability. In considering the advisory fee rate schedules overall, the Board also considered the Advisor’s statement that it seeks to meet investor needs through innovative and value-added investment solutions and the Advisor’s demonstrated long-term commitment to each Fund and the other funds in the First Trust Fund Complex.
The Board considered performance information for each Fund. The Board noted the process it has established for monitoring each Fund’s performance and portfolio risk on an ongoing basis, which includes quarterly performance reporting from the Advisor for the Funds. The Board determined that this process continues to be effective for reviewing each Fund’s performance. The Board received and reviewed information for periods ended December 31, 2023 regarding the performance of each Fund’s underlying index, the correlation between each Fund’s performance and that of its underlying index, each Fund’s tracking difference and each Fund’s excess return as compared to its benchmark index. Based on the information provided and its ongoing review of performance, the Board concluded that each Fund was correlated to its underlying index and that the tracking difference for each Fund was within a reasonable range. In addition, the Board reviewed data prepared by Broadridge comparing each Fund’s performance to that of its respective Performance Universe and to that of a broad-based benchmark index and noted the Advisor’s discussion of FTCS’s, FDL’s and FVD’s performance at the April 25, 2024 meeting. However, given each Fund’s objective of seeking investment results that correspond generally to the performance of its underlying index, the Board placed more emphasis on its review of correlation and tracking difference.
On the basis of all the information provided on the fees, expenses and performance of each Fund and the ongoing oversight by the Board, the Board concluded that the advisory fee for each Fund continues to be reasonable and appropriate in light of the nature, extent and quality of the services provided by the Advisor to each Fund under the Agreement.
The Board considered information and discussed with the Advisor whether there were any economies of scale in connection with providing advisory services to the Funds at current asset levels and whether the Funds may benefit from any economies of scale. The Board noted that the advisory fee rate schedule for each Fund includes breakpoints pursuant to which the advisory fee rate will be
Page 57
Other Information (Continued)
First Trust Exchange-Traded Fund
June 30, 2024 (Unaudited)
reduced as assets of the Fund meet certain thresholds. The Board considered the Advisor’s statement that it believes that its expenses relating to providing advisory services to the Funds will increase during the next twelve months as the Advisor continues to build infrastructure and add new staff. The Board concluded that the advisory fee rate schedule for each Fund reflects an appropriate level of sharing of any economies of scale that may be realized in the management of the Fund at current asset levels. The Board considered the revenues and allocated costs (including the allocation methodology) of the Advisor in serving as investment advisor to each Fund for the twelve months ended December 31, 2023 and the estimated profitability level for each Fund calculated by the Advisor based on such data, as well as complex-wide and product-line profitability data, for the same period. The Board noted the inherent limitations in the profitability analysis and concluded that, based on the information provided, the Advisor’s profitability level for each Fund was not unreasonable. In addition, the Board considered indirect benefits described by the Advisor that may be realized from its relationship with the Funds. The Board considered that the Advisor had identified as an indirect benefit to the Advisor and FTP their exposure to investors and brokers who, absent their exposure to the Funds, may have had no dealings with the Advisor or FTP, and noted that the Advisor does not utilize soft dollars in connection with the Funds. The Board concluded that the character and amount of potential indirect benefits to the Advisor were not unreasonable.
Based on all of the information considered and the conclusions reached, the Board, including the Independent Trustees, unanimously determined that the terms of the Agreement continue to be fair and reasonable and that the continuation of the Agreement is in the best interests of each Fund. No single factor was determinative in the Board’s analysis.
The Board of Trustees of First Trust Exchange-Traded Fund (the “Trust”), including the Independent Trustees, unanimously approved the continuation of the Investment Management Agreements (as applicable to a specific Fund, the “Agreement” and collectively, the “Agreements”) with First Trust Advisors L.P. (the “Advisor”) on behalf of the following series of the Trust (each a “Fund” and collectively, the “Funds”):
First Trust Bloomberg Inflation Sensitive Equity ETF (FTIF)
First Trust Growth StrengthTM ETF (FTGS)
First Trust Indxx Aerospace & Defense ETF (MISL)
The Board approved the continuation of the Agreement for each Fund for a one-year period ending June 30, 2025 at a meeting held on June 2–3, 2024. The Board determined for each Fund that the continuation of the Agreement is in the best interests of the Fund in light of the nature, extent and quality of the services provided and such other matters as the Board considered to be relevant in the exercise of its business judgment.
To reach this determination for each Fund, the Board considered its duties under the Investment Company Act of 1940, as amended (the “1940 Act”), as well as under the general principles of state law, in reviewing and approving advisory contracts; the requirements of the 1940 Act in such matters; the fiduciary duty of investment advisors with respect to advisory agreements and compensation; the standards used by courts in determining whether investment company boards have fulfilled their duties; and the factors to be considered by the Board in voting on such agreements. At meetings held on April 16, 2024, April 25, 2024 and June 2–3, 2024, the Board, including the Independent Trustees, reviewed materials provided by the Advisor responding to requests for information from counsel to the Independent Trustees, submitted on behalf of the Independent Trustees, that, among other things, outlined: the services provided by the Advisor to each Fund (including the relevant personnel responsible for these services and their experience); the unitary fee rate schedule payable by each Fund as compared to fees charged to a peer group of funds (the “Expense Group”) and a broad peer universe of funds (the “Expense Universe”), each assembled by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent source, and as compared to fees charged to other clients of the Advisor, including other exchange-traded funds (“ETFs”) managed by the Advisor; the expense ratio of each Fund as compared to expense ratios of the funds in the Fund’s Expense Group and Expense Universe; performance information for each Fund, including, as applicable, comparisons of each Fund’s performance to that of one or more relevant benchmark indexes and to that of a performance group of funds and a broad performance universe of funds (the “Performance Universe”), each assembled by Broadridge; the nature of expenses incurred in providing services to each Fund and the potential for the Advisor to realize economies of scale, if any; profitability and other financial data for the Advisor; any indirect benefits to the Advisor and its affiliate, First Trust Portfolios L.P. (“FTP”); and information on the Advisor’s compliance program. The Board reviewed initial materials with the Advisor at the meeting held on April 25, 2024, prior to which the Independent Trustees and their counsel met separately to discuss the information provided by the Advisor. Following the April 25, 2024 meeting, counsel to the Independent Trustees, on behalf of the Independent Trustees, requested certain clarifications and supplements to the materials provided, and the information provided in response to those requests was considered at an executive session of the Independent Trustees and their counsel held prior to the June 2–3, 2024 meeting, as well as at the June meeting. The Board applied its business judgment to determine whether the arrangement between the Trust and the Advisor continues to be a reasonable business arrangement
Page 58
Other Information (Continued)
First Trust Exchange-Traded Fund
June 30, 2024 (Unaudited)
from each Fund’s perspective. The Board determined that, given the totality of the information provided with respect to the Agreements, the Board had received sufficient information to renew the Agreements. The Board considered that shareholders chose to invest or remain invested in a Fund knowing that the Advisor manages the Fund and knowing the Fund’s unitary fee.
In reviewing the Agreement for each Fund, the Board considered the nature, extent and quality of the services provided by the Advisor under the Agreement. The Board considered that the Advisor is responsible for the overall management and administration of the Trust and each Fund and reviewed all of the services provided by the Advisor to the Funds, as well as the background and experience of the persons responsible for such services. In reviewing the services provided, the Board noted the compliance program that had been developed by the Advisor and considered that it includes a robust program for monitoring the Advisor’s and each Fund’s compliance with the 1940 Act, as well as each Fund’s compliance with its investment objective, policies and restrictions. The Board also considered a report from the Advisor with respect to its risk management functions related to the operation of the Funds. Finally, as part of the Board’s consideration of the Advisor’s services, the Advisor, in its written materials and at the April 25, 2024 meeting, described to the Board the scope of its ongoing investment in additional personnel and infrastructure to maintain and improve the quality of services provided to the Funds and the other funds in the First Trust Fund Complex. In light of the information presented and the considerations made, the Board concluded that the nature, extent and quality of the services provided to the Trust and each Fund by the Advisor under the Agreements have been and are expected to remain satisfactory and that the Advisor has managed each Fund consistent with its investment objective, policies and restrictions.
The Board considered the unitary fee rate schedule payable by each Fund under the applicable Agreement for the services provided. The Board considered that as part of the unitary fee the Advisor is responsible for each Fund’s expenses, including the cost of transfer agency, custody, fund administration, legal, audit and other services and license fees, if any, but excluding the fee payment under the applicable Agreement and interest, taxes, brokerage commissions and other expenses connected with the execution of portfolio transactions, distribution and service fees pursuant to a Rule 12b-1 plan, if any, and extraordinary expenses, if any. The Board received and reviewed information showing the fee rates and expense ratios of the peer funds in the Expense Groups, as well as advisory and unitary fee rates charged by the Advisor to other fund (including ETFs) and non-fund clients, as applicable. Because each Fund pays a unitary fee, the Board determined that expense ratios were the most relevant comparative data point. Based on the information provided, the Board noted that the total (net) expense ratio for each Fund was above the median total (net) expense ratio of the peer funds in its respective Expense Group. With respect to the Expense Groups, the Board discussed with Broadridge its methodology for assembling peer groups and discussed with the Advisor limitations in creating peer groups for index ETFs, including differences in underlying indexes and index-tracking methodologies that can result in greater management complexities across seemingly comparable ETFs, and different business models that may affect the pricing of services among ETF sponsors. The Board took these limitations and differences into account in considering the peer data. With respect to fees charged to other non-ETF clients, the Board considered differences between the Funds and other non-ETF clients that limited their comparability. In considering the unitary fee rate schedules overall, the Board also considered the Advisor’s statement that it seeks to meet investor needs through innovative and value-added investment solutions and the Advisor’s demonstrated long-term commitment to each Fund and the other funds in the First Trust Fund Complex.
The Board considered performance information for each Fund. The Board noted the process it has established for monitoring each Fund’s performance and portfolio risk on an ongoing basis, which includes quarterly performance reporting from the Advisor for the Funds. The Board determined that this process continues to be effective for reviewing each Fund’s performance. The Board received and reviewed, as applicable, information for the one-year period ended December 31, 2023 regarding the performance of each Fund’s underlying index, the correlation between each Fund’s performance and that of its underlying index, each Fund’s tracking difference and each Fund’s excess return as compared to its benchmark index. Based on the information provided and its ongoing review of performance, the Board concluded that each applicable Fund was correlated to its underlying index and that the tracking difference for each Fund was within a reasonable range. In addition, the Board reviewed data prepared by Broadridge comparing each Fund’s performance to that of its respective Performance Universe and to that of a broad-based benchmark index. However, given each Fund’s objective of seeking investment results that correspond generally to the performance of its underlying index, the Board placed more emphasis on its review of correlation and tracking difference. Because FTIF commenced operations on March 13, 2023 and therefore has a limited performance history, comparative performance information for FTIF was not reviewed.
On the basis of all the information provided on the unitary fee and performance, as applicable, of each Fund and the ongoing oversight by the Board, the Board concluded that the unitary fee for each Fund continues to be reasonable and appropriate in light of the nature, extent and quality of the services provided by the Advisor to each Fund under the Agreements.
Page 59
Other Information (Continued)
First Trust Exchange-Traded Fund
June 30, 2024 (Unaudited)
The Board considered information and discussed with the Advisor whether there were any economies of scale in connection with providing advisory services to the Funds at current asset levels and whether the Funds may benefit from any economies of scale. The Board noted that the unitary fee rate schedule for each Fund includes breakpoints pursuant to which the unitary fee rate will be reduced as assets of the Fund meet certain thresholds. The Board considered the Advisor’s statement that it believes that its expenses relating to providing advisory services to the Funds will increase during the next twelve months as the Advisor continues to build infrastructure and add new staff. The Board also noted that under the unitary fee structure, any reduction in expenses associated with the management and operations of the Funds would benefit the Advisor, but that the unitary fee structure provides a level of certainty in expenses for shareholders of the Funds. The Board concluded that the unitary fee rate schedule for each Fund reflects an appropriate level of sharing of any economies of scale that may be realized in the management of the Fund at current asset levels. The Board considered the revenues and allocated costs (including the allocation methodology) of the Advisor in serving as investment advisor to each of FTGS and MISL for the twelve months ended December 31, 2023 and to FTIF for the period from inception through December 31, 2023 and the estimated profitability level for each Fund calculated by the Advisor based on such data, as well as complex-wide and product-line profitability data, for the twelve months ended December 31, 2023. The Board noted the inherent limitations in the profitability analysis and concluded that, based on the information provided, the Advisor’s profitability level for each Fund was not unreasonable. In addition, the Board considered indirect benefits described by the Advisor that may be realized from its relationship with the Funds. The Board considered that the Advisor had identified as an indirect benefit to the Advisor and FTP their exposure to investors and brokers who, absent their exposure to the Funds, may have had no dealings with the Advisor or FTP, and noted that the Advisor does not utilize soft dollars in connection with the Funds. The Board concluded that the character and amount of potential indirect benefits to the Advisor were not unreasonable.
Based on all of the information considered and the conclusions reached, the Board, including the Independent Trustees, unanimously determined that the terms of the Agreements continue to be fair and reasonable and that the continuation of the Agreements is in the best interests of each Fund. No single factor was determinative in the Board’s analysis.
Disclaimer
Dow Jones®, Dow Jones Internet Composite IndexSM and Dow Jones Select MicroCap IndexSM (“S&P Dow Jones Indexes”) are products of S&P Dow Jones Indices LLC or its affiliates (“SPDJI”) and have been licensed for use by First Trust. S&P® is a registered trademark of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by First Trust. The Funds are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, or their respective affiliates and none of such parties make any representation regarding the advisability of investing in such products nor do they have any liability for any errors, omissions, or interruptions of the S&P Dow Jones Indexes.
Morningstar® and Morningstar® Dividend Leaders IndexSM are registered trademarks and service marks of Morningstar, Inc. (“Morningstar”) and have been licensed for use by First Trust on behalf of the Fund. The Fund is not sponsored, endorsed, issued, sold or promoted by Morningstar and Morningstar makes no representation regarding the advisability of investing in the Fund.
IPOX® and IPOX®-100 U.S. Index are registered international trademarks and service marks of IPOX® Schuster LLC (“IPOX”) and have been licensed for use by First Trust. The Fund is not sponsored, endorsed, sold or promoted by IPOX, and IPOX makes no representation regarding the advisability of trading in such Fund. IPOX® is an international trademark of IPOX Schuster LLC. Index of Initial Public Offerings (IPOX) and IPOX Derivatives Patent No. US 7,698,197.
Source ICE Data Indices, LLC (“ICE Data”), is used with permission. “NYSE®” and “NYSE® Arca®” are service/trademarks of ICE Data Indices, LLC or its affiliates. These trademarks have been licensed, along with the NYSE® Arca® Biotechnology Index (the “Index”) for use by First Trust Advisors L.P. in connection with First Trust NYSE® Arca® Biotechnology Index Fund (the “Product”). Neither First Trust Advisors L.P., First Trust Exchange-Traded Fund (the “Trust”) nor the Product, as applicable, is sponsored, endorsed, sold or promoted by ICE Data Indices, LLC, its affiliates or its Third Party Suppliers (“ICE Data and its Suppliers”). ICE Data and its Suppliers make no representations or warranties regarding the advisability of investing in securities generally, in the Product particularly, the Trust or the ability of the Index to track general market performance. Past performance of an Index is not an indicator of or a guarantee of future results.
ICE DATA AND ITS SUPPLIERS DISCLAIM ANY AND ALL WARRANTIES AND REPRESENTATIONS, EXPRESS AND/OR IMPLIED, INCLUDING ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE, INCLUDING THE INDICES, INDEX DATA AND ANY INFORMATION INCLUDED IN, RELATED TO, OR DERIVED THEREFROM (“INDEX DATA”). ICE DATA AND ITS SUPPLIERS SHALL NOT BE SUBJECT TO ANY DAMAGES OR
Page 60
Other Information (Continued)
First Trust Exchange-Traded Fund
June 30, 2024 (Unaudited)
LIABILITY WITH RESPECT TO THE ADEQUACY, ACCURACY, TIMELINESS OR COMPLETENESS OF THE INDICES AND THE INDEX DATA, WHICH ARE PROVIDED ON AN “AS IS” BASIS AND YOUR USE IS AT YOUR OWN RISK.
Nasdaq®, The Capital StrengthTM Index and The Growth StrengthTM Index are registered trademarks and service marks of Nasdaq, Inc. (together with its affiliates hereinafter referred to as the “Corporations”) and are licensed for use by First Trust. The Funds have not been passed on by the Corporations as to their legality or suitability. The Funds are not issued, endorsed, sold or promoted by the Corporations. THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE FUNDS.
Value Line® and Value Line® Dividend Index are trademarks or registered trademarks of Value Line, Inc. (“Value Line”) and have been licensed for use for certain purposes by First Trust. The Fund is not sponsored, endorsed, recommended, sold or promoted by Value Line and Value Line makes no representation regarding the advisability of investing in products utilizing such strategy.
Indxx and Indxx US Aerospace & Defense Index (“Index”) are trademarks of Indxx, Inc. (“Indxx”) and have been licensed for use for certain purposes by First Trust. The Fund is not sponsored, endorsed, sold or promoted by Indxx and Indxx makes no representation regarding the advisability of trading in such products. The Index is determined, composed and calculated by Indxx without regard to First Trust or the Fund.
Bloomberg® and Bloomberg Inflation Sensitive Equity Index licensed herein (the “Indices”) are service marks of Bloomberg Finance L.P. and its affiliates, including Bloomberg Index Services Limited (“BISL”), the administrator of the Indices (collectively, “Bloomberg”), and have been licensed for use for certain purposes by First Trust Advisors L.P. (the “Licensee”). Bloomberg is not affiliated with the Licensee, and Bloomberg does not approve, endorse, review, or recommend the financial products referenced herein (the “Financial Products”). Bloomberg does not guarantee the timeliness, accurateness, or completeness of any data or information relating to the Index or the Financial Products.
Page 61
 
 
 
Semi-Annual Financial
Statements and
Other Information
For the Six Months Ended
June 30, 2024
 
First Trust Exchange-Traded Fund
Book 2
 
First Trust NASDAQ-100 Equal Weighted Index Fund
(QQEW)
First Trust NASDAQ-100-Technology Sector Index Fund
(QTEC)
First Trust NASDAQ-100 Ex-Technology Sector Index Fund
(QQXT)
First Trust NASDAQ® Clean Edge® Green Energy Index Fund
(QCLN)
First Trust S&P REIT Index Fund (FRI)
First Trust Water ETF (FIW)
First Trust Natural Gas ETF (FCG)
First Trust NASDAQ® ABA Community Bank Index Fund
(QABA)
Table of Contents 
First Trust Exchange-Traded Fund
Semi-Annual Financial Statements and Other Information
June 30, 2024 
Performance and Risk Disclosure
There is no assurance that any series of First Trust Exchange-Traded Fund (the “Trust”) described in this report (each such series is referred to as a “Fund” and collectively, as the “Funds”) will achieve its investment objective. Each Fund is subject to market risk, which is the possibility that the market values of securities owned by the Fund will decline and that the value of the Fund’s shares may therefore be less than what you paid for them. Accordingly, you can lose money by investing in a Fund.
Performance data quoted represents past performance, which is no guarantee of future results, and current performance may be lower or higher than the figures shown. For the most recent month-end performance figures, please visit www.ftportfolios.com or speak with your financial advisor. Investment returns, net asset value and share price will fluctuate and Fund shares, when sold, may be worth more or less than their original cost.
First Trust Advisors L.P., the Funds’ advisor, may also periodically provide additional information on Fund performance on each Fund’s webpage at www.ftportfolios.com.
How to Read This Report
This report contains information that may help you evaluate your investment. It includes details about each Fund and presents data that provides insight into each Fund’s performance and investment approach.
The material risks of investing in each Fund are spelled out in its prospectus, statement of additional information, and other Fund regulatory filings.
First Trust NASDAQ-100 Equal Weighted Index Fund (QQEW)
Portfolio of Investments
June 30, 2024 (Unaudited)
 
Shares
Description
Value
COMMON STOCKS — 100.0%
Automobiles — 1.1%
113,295
Tesla, Inc. (a)
$22,418,815
Beverages — 4.0%
276,972
Coca-Cola Europacific
Partners PLC
20,182,950
603,087
Keurig Dr Pepper, Inc.
20,143,106
422,370
Monster Beverage Corp. (a)
21,097,381
123,949
PepsiCo, Inc.
20,442,909
 
81,866,346
Biotechnology — 5.9%
67,284
Amgen, Inc.
21,022,886
92,564
Biogen, Inc. (a)
21,458,186
293,394
Gilead Sciences, Inc.
20,129,762
31,829
GRAIL, Inc. (a) (b)
489,212
155,428
Moderna, Inc. (a)
18,457,075
19,688
Regeneron Pharmaceuticals,
Inc. (a)
20,692,679
44,237
Vertex Pharmaceuticals, Inc. (a)
20,734,767
 
122,984,567
Broadline Retail — 3.0%
109,658
Amazon.com, Inc. (a)
21,191,408
12,958
MercadoLibre, Inc. (a)
21,295,177
144,127
PDD Holdings, Inc., ADR (a)
19,161,685
 
61,648,270
Chemicals — 1.0%
46,830
Linde PLC
20,549,472
Commercial Services &
Supplies — 2.0%
29,265
Cintas Corp.
20,493,109
382,267
Copart, Inc. (a)
20,703,581
 
41,196,690
Communications Equipment
— 1.0%
438,446
Cisco Systems, Inc.
20,830,569
Consumer Staples Distribution
& Retail — 2.8%
24,442
Costco Wholesale Corp.
20,775,456
194,013
Dollar Tree, Inc. (a)
20,714,768
1,298,317
Walgreens Boots Alliance, Inc.
15,703,144
 
57,193,368
Electric Utilities — 3.9%
238,187
American Electric Power Co.,
Inc.
20,898,527
95,054
Constellation Energy Corp.
19,036,465
596,151
Exelon Corp.
20,632,786
388,498
Xcel Energy, Inc.
20,749,678
 
81,317,456
Shares
Description
Value
 
Electronic Equipment,
Instruments & Components
— 0.9%
88,047
CDW Corp.
$19,708,440
Energy Equipment & Services
— 1.1%
629,642
Baker Hughes Co.
22,144,509
Entertainment — 4.0%
149,102
Electronic Arts, Inc.
20,774,382
30,220
Netflix, Inc. (a)
20,394,874
131,046
Take-Two Interactive Software,
Inc. (a)
20,376,342
2,887,763
Warner Bros. Discovery, Inc. (a)
21,484,957
 
83,030,555
Financial Services — 1.0%
342,091
PayPal Holdings, Inc. (a)
19,851,541
Food Products — 2.0%
629,261
Kraft Heinz (The) Co.
20,274,790
311,744
Mondelez International, Inc.,
Class A
20,400,527
 
40,675,317
Ground Transportation —
2.0%
620,596
CSX Corp.
20,758,936
118,555
Old Dominion Freight Line, Inc.
20,936,813
 
41,695,749
Health Care Equipment &
Supplies — 4.0%
177,761
Dexcom, Inc. (a)
20,154,542
261,894
GE HealthCare Technologies,
Inc.
20,406,781
41,825
IDEXX Laboratories, Inc. (a)
20,377,140
47,934
Intuitive Surgical, Inc. (a)
21,323,440
 
82,261,903
Hotels, Restaurants & Leisure
— 4.9%
138,625
Airbnb, Inc., Class A (a)
21,019,709
5,197
Booking Holdings, Inc.
20,587,915
182,070
DoorDash, Inc., Class A (a)
19,805,574
85,140
Marriott International, Inc.,
Class A
20,584,298
259,468
Starbucks Corp.
20,199,584
 
102,197,080
Industrial Conglomerates —
1.0%
96,397
Honeywell International, Inc.
20,584,615
Interactive Media & Services
— 2.0%
57,714
Alphabet, Inc., Class A
10,512,605
See Notes to Financial Statements
Page 1
First Trust NASDAQ-100 Equal Weighted Index Fund (QQEW)
Portfolio of Investments (Continued)
June 30, 2024 (Unaudited)
Shares
Description
Value
COMMON STOCKS (Continued)
Interactive Media & Services
(Continued)
57,511
Alphabet, Inc., Class C
$10,548,668
41,906
Meta Platforms, Inc., Class A
21,129,843
 
42,191,116
IT Services — 2.1%
303,396
Cognizant Technology Solutions
Corp., Class A
20,630,928
91,119
MongoDB, Inc. (a)
22,776,105
 
43,407,033
Life Sciences Tools & Services
— 1.0%
190,975
Illumina, Inc. (a)
19,933,970
Machinery — 1.0%
195,679
PACCAR, Inc.
20,143,196
Media — 3.1%
71,411
Charter Communications, Inc.,
Class A (a)
21,349,032
538,829
Comcast Corp., Class A
21,100,544
212,201
Trade Desk (The), Inc.,
Class A (a)
20,725,672
 
63,175,248
Oil, Gas & Consumable Fuels
— 1.0%
108,624
Diamondback Energy, Inc.
21,745,439
Pharmaceuticals — 1.0%
262,856
AstraZeneca PLC, ADR
20,500,139
Professional Services — 2.9%
83,615
Automatic Data Processing, Inc.
19,958,064
164,609
Paychex, Inc.
19,516,043
76,702
Verisk Analytics, Inc.
20,675,024
 
60,149,131
Real Estate Management &
Development — 1.0%
280,418
CoStar Group, Inc. (a)
20,790,191
Semiconductors &
Semiconductor Equipment
— 17.9%
128,600
Advanced Micro Devices,
Inc. (a)
20,860,206
89,739
Analog Devices, Inc.
20,483,824
88,077
Applied Materials, Inc.
20,785,291
129,346
ARM Holdings PLC, ADR (a)
21,163,593
20,002
ASML Holding N.V.
20,456,645
12,501
Broadcom, Inc.
20,070,731
405,756
GLOBALFOUNDRIES,
Inc. (a) (b)
20,515,023
666,907
Intel Corp.
20,654,110
25,392
KLA Corp.
20,935,958
19,740
Lam Research Corp.
21,020,139
Shares
Description
Value
 
Semiconductors &
Semiconductor Equipment
(Continued)
288,415
Marvell Technology, Inc.
$20,160,208
226,404
Microchip Technology, Inc.
20,715,966
148,589
Micron Technology, Inc.
19,543,911
163,816
NVIDIA Corp.
20,237,829
76,502
NXP Semiconductors N.V.
20,585,923
302,600
ON Semiconductor Corp. (a)
20,743,230
97,559
QUALCOMM, Inc.
19,431,802
106,040
Texas Instruments, Inc.
20,627,961
 
368,992,350
Software — 15.5%
38,869
Adobe, Inc. (a)
21,593,284
63,729
ANSYS, Inc. (a)
20,488,873
127,626
Atlassian Corp., Class A (a)
22,574,487
85,569
Autodesk, Inc. (a)
21,174,049
65,122
Cadence Design Systems,
Inc. (a)
20,041,295
54,473
Crowdstrike Holdings, Inc.,
Class A (a)
20,873,509
176,356
Datadog, Inc., Class A (a)
22,871,610
354,066
Fortinet, Inc. (a)
21,339,558
32,799
Intuit, Inc.
21,555,831
46,098
Microsoft Corp.
20,603,501
64,728
Palo Alto Networks, Inc. (a)
21,943,439
36,927
Roper Technologies, Inc.
20,814,273
34,242
Synopsys, Inc. (a)
20,376,045
94,638
Workday, Inc., Class A (a)
21,157,271
115,478
Zscaler, Inc. (a)
22,193,717
 
319,600,742
Specialty Retail — 1.9%
19,167
O’Reilly Automotive, Inc. (a)
20,241,502
138,884
Ross Stores, Inc.
20,182,623
 
40,424,125
Technology Hardware, Storage
& Peripherals — 1.0%
99,929
Apple, Inc.
21,047,046
Textiles, Apparel & Luxury
Goods — 1.0%
66,494
Lululemon Athletica, Inc. (a)
19,861,758
Trading Companies &
Distributors — 1.0%
317,327
Fastenal Co.
19,940,829
Wireless Telecommunication
Services — 1.0%
117,321
T-Mobile US, Inc.
20,669,614
Total Common Stocks
2,064,727,189
(Cost $1,776,033,931)
See Notes to Financial Statements
Page 2
First Trust NASDAQ-100 Equal Weighted Index Fund (QQEW)
Portfolio of Investments (Continued)
June 30, 2024 (Unaudited)
Shares
Description
Value
MONEY MARKET FUNDS — 0.4%
975,119
Dreyfus Government Cash
Management Fund,
Institutional Shares -
5.19% (c)
$975,119
7,034,154
Goldman Sachs Financial Square
Treasury Obligations Fund -
Institutional Class -
5.11% (c) (d)
7,034,154
Total Money Market Funds
8,009,273
(Cost $8,009,273)
Total Investments — 100.4%
2,072,736,462
(Cost $1,784,043,204)
Net Other Assets and
Liabilities — (0.4)%
(7,643,592
)
Net Assets — 100.0%
$2,065,092,870
 
(a)
Non-income producing security.
(b)
All or a portion of this security is on loan (see Note 2D -
Securities Lending in the Notes to Financial Statements). The
remaining contractual maturity of all of the securities lending
transactions is overnight and continuous. The aggregate
value of such securities, including those sold and pending
settlement, is $6,885,466 and the total value of the collateral
held by the Fund is $7,034,154.
(c)
Rate shown reflects yield as of June 30, 2024.
(d)
This security serves as collateral for securities on loan.
 
Abbreviations throughout the Portfolio of Investments:
ADR
–  American Depositary Receipt
Valuation Inputs
A summary of the inputs used to value the Fund’s investments as of June 30, 2024 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements):
 
 
Total
Value at
6/30/2024
Level 1
Quoted
Prices
Level 2
Significant
Observable
Inputs
Level 3
Significant
Unobservable
Inputs
Common
Stocks*
$ 2,064,727,189
$ 2,064,727,189
$ —
$ —
Money Market
Funds
 8,009,273
 8,009,273
 —
 —
Total
Investments
$2,072,736,462
$2,072,736,462
$—
$—
 
*
See Portfolio of Investments for industry breakout.
Offsetting Assets and Liabilities
Offsetting assets and liabilities requires entities to disclose both gross and net information about instruments and transactions eligible for offset, and to disclose instruments and transactions subject to master netting or similar agreements (see Note 2C - Offsetting on the Statements of Assets and Liabilities in the Notes to Financial Statements).
The Fund’s loaned securities were all subject to an enforceable Securities Lending Agency Agreement. Securities lent in accordance with the Securities Lending Agency Agreement on a gross basis were as follows:
 
Securities Lending Agency Agreement
Total gross amount presented on the Statements
of Assets and Liabilities(1)
$6,885,466
Non-cash Collateral(2)
(6,885,466
)
Net Amount
$—
 
(1)
The amount presented on the Statements of Assets and
Liabilities, which is included in “Investments, at value,” is not
offset and is shown on a gross basis.
(2)
At June 30, 2024, the value of the collateral received from
each borrower exceeded the value of the related securities
loaned. This amount is disclosed on the Portfolio of
Investments.
See Notes to Financial Statements
Page 3
First Trust NASDAQ-100-Technology Sector Index Fund (QTEC)
Portfolio of Investments
June 30, 2024 (Unaudited)
 
Shares
Description
Value
COMMON STOCKS — 100.0%
Broadline Retail — 2.3%
693,553
PDD Holdings, Inc., ADR (a)
$92,207,871
Electronic Equipment,
Instruments & Components
— 2.3%
423,689
CDW Corp.
94,838,546
Hotels, Restaurants & Leisure
— 2.3%
876,137
DoorDash, Inc., Class A (a)
95,306,183
Interactive Media & Services
— 4.9%
277,722
Alphabet, Inc., Class A
50,587,062
276,752
Alphabet, Inc., Class C
50,761,852
201,654
Meta Platforms, Inc., Class A
101,677,980
 
203,026,894
IT Services — 5.1%
1,459,973
Cognizant Technology Solutions
Corp., Class A
99,278,164
438,473
MongoDB, Inc. (a)
109,600,711
 
208,878,875
Semiconductors &
Semiconductor Equipment
— 43.2%
618,834
Advanced Micro Devices,
Inc. (a)
100,381,063
431,831
Analog Devices, Inc.
98,569,744
423,833
Applied Materials, Inc.
100,020,350
622,423
ARM Holdings PLC, ADR (a)
101,840,851
96,251
ASML Holding N.V.
98,438,785
60,155
Broadcom, Inc.
96,580,657
1,952,535
GLOBALFOUNDRIES,
Inc. (a) (b)
98,720,170
3,209,216
Intel Corp.
99,389,420
122,190
KLA Corp.
100,746,877
94,991
Lam Research Corp.
101,151,166
1,387,878
Marvell Technology, Inc.
97,012,672
1,089,479
Microchip Technology, Inc.
99,687,328
715,024
Micron Technology, Inc.
94,047,107
788,296
NVIDIA Corp.
97,386,088
368,131
NXP Semiconductors N.V.
99,060,371
1,456,137
ON Semiconductor Corp. (a)
99,818,191
469,461
QUALCOMM, Inc.
93,507,242
510,277
Texas Instruments, Inc.
99,264,185
 
1,775,622,267
Software — 37.4%
187,040
Adobe, Inc. (a)
103,908,202
306,668
ANSYS, Inc. (a)
98,593,762
614,148
Atlassian Corp., Class A (a)
108,630,498
411,764
Autodesk, Inc. (a)
101,891,002
Shares
Description
Value
 
Software (Continued)
313,372
Cadence Design Systems,
Inc. (a)
$96,440,233
262,130
Crowdstrike Holdings, Inc.,
Class A (a)
100,445,595
848,639
Datadog, Inc., Class A (a)
110,059,992
1,703,800
Fortinet, Inc. (a)
102,688,026
157,833
Intuit, Inc.
103,729,426
221,830
Microsoft Corp.
99,146,919
311,474
Palo Alto Networks, Inc. (a)
105,592,801
177,696
Roper Technologies, Inc.
100,160,127
164,773
Synopsys, Inc. (a)
98,049,821
455,404
Workday, Inc., Class A (a)
101,810,118
555,692
Zscaler, Inc. (a)
106,798,445
 
1,537,944,967
Technology Hardware, Storage
& Peripherals — 2.5%
480,864
Apple, Inc.
101,279,576
Total Common Stocks
4,109,105,179
(Cost $3,362,638,885)
MONEY MARKET FUNDS — 1.4%
1,767,109
Dreyfus Government Cash
Management Fund,
Institutional Shares -
5.19% (c)
1,767,109
57,152,032
Goldman Sachs Financial Square
Treasury Obligations Fund -
Institutional Class -
5.11% (c) (d)
57,152,032
Total Money Market Funds
58,919,141
(Cost $58,919,141)
Total Investments — 101.4%
4,168,024,320
(Cost $3,421,558,026)
Net Other Assets and
Liabilities — (1.4)%
(59,133,298
)
Net Assets — 100.0%
$4,108,891,022
 
(a)
Non-income producing security.
(b)
All or a portion of this security is on loan (see Note 2D -
Securities Lending in the Notes to Financial Statements). The
remaining contractual maturity of all of the securities lending
transactions is overnight and continuous. The aggregate
value of such securities, including those sold and pending
settlement, is $55,903,232 and the total value of the collateral
held by the Fund is $57,152,032.
(c)
Rate shown reflects yield as of June 30, 2024.
(d)
This security serves as collateral for securities on loan.
 
Abbreviations throughout the Portfolio of Investments:
ADR
–  American Depositary Receipt
See Notes to Financial Statements
Page 4
First Trust NASDAQ-100-Technology Sector Index Fund (QTEC)
Portfolio of Investments (Continued)
June 30, 2024 (Unaudited)
Valuation Inputs
A summary of the inputs used to value the Fund’s investments as of June 30, 2024 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements):
 
 
Total
Value at
6/30/2024
Level 1
Quoted
Prices
Level 2
Significant
Observable
Inputs
Level 3
Significant
Unobservable
Inputs
Common
Stocks*
$ 4,109,105,179
$ 4,109,105,179
$ —
$ —
Money Market
Funds
 58,919,141
 58,919,141
 —
 —
Total
Investments
$4,168,024,320
$4,168,024,320
$—
$—
 
*
See Portfolio of Investments for industry breakout.
Offsetting Assets and Liabilities
Offsetting assets and liabilities requires entities to disclose both gross and net information about instruments and transactions eligible for offset, and to disclose instruments and transactions subject to master netting or similar agreements (see Note 2C - Offsetting on the Statements of Assets and Liabilities in the Notes to Financial Statements).
The Fund’s loaned securities were all subject to an enforceable Securities Lending Agency Agreement. Securities lent in accordance with the Securities Lending Agency Agreement on a gross basis were as follows:
 
Securities Lending Agency Agreement
Total gross amount presented on the Statements
of Assets and Liabilities(1)
$55,903,232
Non-cash Collateral(2)
(55,903,232
)
Net Amount
$—
 
(1)
The amount presented on the Statements of Assets and
Liabilities, which is included in “Investments, at value,” is not
offset and is shown on a gross basis.
(2)
At June 30, 2024, the value of the collateral received from
each borrower exceeded the value of the related securities
loaned. This amount is disclosed on the Portfolio of
Investments.
See Notes to Financial Statements
Page 5
First Trust NASDAQ-100 Ex-Technology Sector Index Fund (QQXT)
Portfolio of Investments
June 30, 2024 (Unaudited)
 
Shares
Description
Value
COMMON STOCKS (a) — 100.0%
Automobiles — 1.9%
12,359
Tesla, Inc. (b)
$2,445,599
Beverages — 6.8%
30,215
Coca-Cola Europacific
Partners PLC
2,201,767
65,790
Keurig Dr Pepper, Inc.
2,197,386
46,076
Monster Beverage Corp. (b)
2,301,496
13,521
PepsiCo, Inc.
2,230,019
 
8,930,668
Biotechnology — 10.2%
7,340
Amgen, Inc.
2,293,383
10,098
Biogen, Inc. (b)
2,340,918
32,006
Gilead Sciences, Inc.
2,195,932
3,472
GRAIL, Inc. (b) (c)
53,365
16,956
Moderna, Inc. (b)
2,013,525
2,148
Regeneron Pharmaceuticals,
Inc. (b)
2,257,612
4,826
Vertex Pharmaceuticals, Inc. (b)
2,262,043
 
13,416,778
Broadline Retail — 3.5%
11,962
Amazon.com, Inc. (b)
2,311,656
1,414
MercadoLibre, Inc. (b)
2,323,768
 
4,635,424
Chemicals — 1.7%
5,109
Linde PLC
2,241,880
Commercial Services &
Supplies — 3.4%
3,192
Cintas Corp.
2,235,230
41,701
Copart, Inc. (b)
2,258,526
 
4,493,756
Communications Equipment
— 1.7%
47,830
Cisco Systems, Inc.
2,272,403
Consumer Staples Distribution
& Retail — 4.7%
2,666
Costco Wholesale Corp.
2,266,073
21,165
Dollar Tree, Inc. (b)
2,259,787
141,632
Walgreens Boots Alliance, Inc.
1,713,039
 
6,238,899
Electric Utilities — 6.7%
25,984
American Electric Power Co.,
Inc.
2,279,836
10,369
Constellation Energy Corp.
2,076,600
65,034
Exelon Corp.
2,250,827
42,381
Xcel Energy, Inc.
2,263,569
 
8,870,832
Energy Equipment & Services
— 1.8%
68,687
Baker Hughes Co.
2,415,722
Shares
Description
Value
 
Entertainment — 6.9%
16,265
Electronic Arts, Inc.
$2,266,203
3,297
Netflix, Inc. (b)
2,225,079
14,296
Take-Two Interactive Software,
Inc. (b)
2,222,885
315,023
Warner Bros. Discovery, Inc. (b)
2,343,771
 
9,057,938
Financial Services — 1.6%
37,318
PayPal Holdings, Inc. (b)
2,165,564
Food Products — 3.4%
68,645
Kraft Heinz (The) Co.
2,211,742
34,008
Mondelez International, Inc.,
Class A
2,225,483
 
4,437,225
Ground Transportation —
3.4%
67,700
CSX Corp.
2,264,565
12,933
Old Dominion Freight Line, Inc.
2,283,968
 
4,548,533
Health Care Equipment &
Supplies — 6.8%
19,392
Dexcom, Inc. (b)
2,198,665
28,570
GE HealthCare Technologies,
Inc.
2,226,174
4,563
IDEXX Laboratories, Inc. (b)
2,223,094
5,229
Intuitive Surgical, Inc. (b)
2,326,121
 
8,974,054
Hotels, Restaurants & Leisure
— 6.8%
15,122
Airbnb, Inc., Class A (b)
2,292,949
567
Booking Holdings, Inc.
2,246,170
9,288
Marriott International, Inc.,
Class A
2,245,560
28,305
Starbucks Corp.
2,203,544
 
8,988,223
Industrial Conglomerates —
1.7%
10,516
Honeywell International, Inc.
2,245,587
Life Sciences Tools & Services
— 1.6%
20,833
Illumina, Inc. (b)
2,174,549
Machinery — 1.7%
21,346
PACCAR, Inc.
2,197,357
Media — 5.2%
7,790
Charter Communications, Inc.,
Class A (b)
2,328,898
58,780
Comcast Corp., Class A
2,301,825
23,149
Trade Desk (The), Inc.,
Class A (b)
2,260,963
 
6,891,686
See Notes to Financial Statements
Page 6
First Trust NASDAQ-100 Ex-Technology Sector Index Fund (QQXT)
Portfolio of Investments (Continued)
June 30, 2024 (Unaudited)
Shares
Description
Value
COMMON STOCKS (a) (Continued)
Oil, Gas & Consumable Fuels
— 1.8%
11,850
Diamondback Energy, Inc.
$2,372,251
Pharmaceuticals — 1.7%
28,675
AstraZeneca PLC, ADR
2,236,363
Professional Services — 5.0%
9,122
Automatic Data Processing, Inc.
2,177,330
17,957
Paychex, Inc.
2,128,982
8,367
Verisk Analytics, Inc.
2,255,325
 
6,561,637
Real Estate Management &
Development — 1.7%
30,591
CoStar Group, Inc. (b)
2,268,017
Specialty Retail — 3.3%
2,091
O’Reilly Automotive, Inc. (b)
2,208,222
15,151
Ross Stores, Inc.
2,201,743
 
4,409,965
Textiles, Apparel & Luxury
Goods — 1.6%
7,254
Lululemon Athletica, Inc. (b)
2,166,770
Trading Companies &
Distributors — 1.7%
34,617
Fastenal Co.
2,175,332
Wireless Telecommunication
Services — 1.7%
12,798
T-Mobile US, Inc.
2,254,752
Total Common Stocks
132,087,764
(Cost $121,189,904)
MONEY MARKET FUNDS — 0.1%
49,600
Goldman Sachs Financial Square
Treasury Obligations Fund -
Institutional Class -
5.11% (d) (e)
49,600
84,658
Morgan Stanley Institutional
Liquidity Funds - Treasury
Portfolio - Institutional Class -
5.14% (d)
84,658
Total Money Market Funds
134,258
(Cost $134,258)
Total Investments — 100.1%
132,222,022
(Cost $121,324,162)
Net Other Assets and
Liabilities — (0.1)%
(92,072
)
Net Assets — 100.0%
$132,129,950
 
(a)
The industry allocation is based on Standard & Poor’s Global
Industry Classification Standard (GICS), and is different than
the industry sector classification system used by the Index to
select securities, which is the Industry Classification
Benchmark (ICB) system, which is maintained by FTSE
International Limited.
(b)
Non-income producing security.
(c)
All or a portion of this security is on loan (see Note 2D -
Securities Lending in the Notes to Financial Statements). The
remaining contractual maturity of all of the securities lending
transactions is overnight and continuous. The aggregate
value of such securities, including those sold and pending
settlement, is $49,184 and the total value of the collateral
held by the Fund is $49,600.
(d)
Rate shown reflects yield as of June 30, 2024.
(e)
This security serves as collateral for securities on loan.
 
Abbreviations throughout the Portfolio of Investments:
ADR
–  American Depositary Receipt
Valuation Inputs
A summary of the inputs used to value the Fund’s investments as of June 30, 2024 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements):
 
 
Total
Value at
6/30/2024
Level 1
Quoted
Prices
Level 2
Significant
Observable
Inputs
Level 3
Significant
Unobservable
Inputs
Common Stocks*
$ 132,087,764
$ 132,087,764
$ —
$ —
Money Market
Funds
 134,258
 134,258
 —
 —
Total Investments
$132,222,022
$132,222,022
$—
$—
 
*
See Portfolio of Investments for industry breakout.
See Notes to Financial Statements
Page 7
First Trust NASDAQ-100 Ex-Technology Sector Index Fund (QQXT)
Portfolio of Investments (Continued)
June 30, 2024 (Unaudited)
Offsetting Assets and Liabilities
Offsetting assets and liabilities requires entities to disclose both gross and net information about instruments and transactions eligible for offset, and to disclose instruments and transactions subject to master netting or similar agreements (see Note 2C - Offsetting on the Statements of Assets and Liabilities in the Notes to Financial Statements).
The Fund’s loaned securities were all subject to an enforceable Securities Lending Agency Agreement. Securities lent in accordance with the Securities Lending Agency Agreement on a gross basis were as follows:
 
Securities Lending Agency Agreement
Total gross amount presented on the Statements
of Assets and Liabilities(1)
$49,184
Non-cash Collateral(2)
(49,184
)
Net Amount
$—
 
(1)
The amount presented on the Statements of Assets and
Liabilities, which is included in “Investments, at value,” is not
offset and is shown on a gross basis.
(2)
At June 30, 2024, the value of the collateral received from
each borrower exceeded the value of the related securities
loaned. This amount is disclosed on the Portfolio of
Investments.
See Notes to Financial Statements
Page 8
First Trust NASDAQ® Clean Edge® Green Energy Index Fund (QCLN)
Portfolio of Investments
June 30, 2024 (Unaudited)
 
Shares
Description
Value
COMMON STOCKS — 99.8%
Automobiles — 18.5%
858,941
Gogoro, Inc. (a) (b)
$1,322,769
8,062,278
Lucid Group, Inc. (a) (b)
21,042,546
800,505
Polestar Automotive Holding
UK PLC, Class A, ADR (a)
629,677
2,796,744
Rivian Automotive, Inc.,
Class A (a) (b)
37,532,304
342,996
Tesla, Inc. (a)
67,872,049
 
128,399,345
Chemicals — 8.3%
404,559
Albemarle Corp.
38,643,476
3,757,229
Arcadium Lithium PLC (a)
12,624,289
266,143
Aspen Aerogels, Inc. (a)
6,347,511
 
57,615,276
Commercial Services &
Supplies — 0.2%
690,979
LanzaTech Global, Inc. (a) (b)
1,278,311
Construction & Engineering
— 0.5%
119,995
Ameresco, Inc., Class A (a)
3,457,056
Electrical Equipment — 18.7%
107,623
Acuity Brands, Inc.
25,984,497
129,276
American Superconductor
Corp. (a)
3,023,766
530,354
Array Technologies, Inc. (a)
5,441,432
1,046,201
Ballard Power Systems,
Inc. (a) (b)
2,353,952
352,905
Blink Charging Co. (a) (b)
966,960
793,316
Bloom Energy Corp.,
Class A (a) (b)
9,710,188
1,486,163
ChargePoint Holdings,
Inc. (a) (b)
2,244,106
140,294
EnerSys
14,523,235
446,933
Fluence Energy, Inc. (a)
7,749,818
1,579,227
FuelCell Energy, Inc. (a) (b)
1,008,810
101,794
LSI Industries, Inc.
1,472,959
493,739
NEXTracker, Inc., Class A (a)
23,146,484
2,594,853
Plug Power, Inc. (a) (b)
6,046,008
595,530
Shoals Technologies Group, Inc.,
Class A (a)
3,716,107
149,652
Sociedad Quimica y Minera de
Chile S.A., ADR (b)
6,098,319
564,886
Stem, Inc. (a) (b)
627,024
613,200
SunPower Corp. (a) (b)
1,815,072
774,596
Sunrun, Inc. (a)
9,186,709
114,646
Vicor Corp. (a)
3,801,661
658,440
Wallbox N.V. (a) (b)
862,556
 
129,779,663
Shares
Description
Value
 
Electronic Equipment,
Instruments & Components
— 4.3%
130,843
Advanced Energy Industries,
Inc.
$14,230,485
160,289
Itron, Inc. (a)
15,862,199
 
30,092,684
Financial Services — 1.7%
397,400
Hannon Armstrong Sustainable
Infrastructure Capital, Inc.
11,763,040
Independent Power and
Renewable Electricity
Producers — 11.3%
558,678
Altus Power, Inc. (a)
2,190,018
405,916
Atlantica Sustainable
Infrastructure PLC
8,909,856
1,002,600
Brookfield Renewable Partners,
L.P. (c)
24,834,402
288,135
Clearway Energy, Inc., Class C
7,114,053
502,150
Montauk Renewables, Inc. (a)
2,862,255
326,871
NextEra Energy Partners,
L.P. (c) (d)
9,034,715
211,142
Ormat Technologies, Inc.
15,138,881
889,951
ReNew Energy Global PLC,
Class A (a)
5,553,294
433,252
Sunnova Energy International,
Inc. (a) (b)
2,417,546
 
78,055,020
Machinery — 0.1%
790,512
Lion Electric (The) Co. (a) (b)
718,259
Metals & Mining — 1.1%
577,696
MP Materials Corp. (a) (b)
7,354,070
Oil, Gas & Consumable Fuels
— 0.3%
780,187
Clean Energy Fuels Corp. (a)
2,083,099
Semiconductors &
Semiconductor Equipment
— 34.7%
677,047
Allegro MicroSystems, Inc. (a)
19,119,807
468,362
Enphase Energy, Inc. (a)
46,700,375
224,761
First Solar, Inc. (a)
50,674,615
191,763
Maxeon Solar Technologies
Ltd. (a) (b)
163,574
639,841
Navitas Semiconductor Corp. (a)
2,514,575
836,266
ON Semiconductor Corp. (a)
57,326,035
198,361
Power Integrations, Inc.
13,922,959
200,231
SolarEdge Technologies, Inc. (a)
5,057,835
165,777
Universal Display Corp.
34,854,614
439,796
Wolfspeed, Inc. (a)
10,009,757
 
240,344,146
See Notes to Financial Statements
Page 9
First Trust NASDAQ® Clean Edge® Green Energy Index Fund (QCLN)
Portfolio of Investments (Continued)
June 30, 2024 (Unaudited)
Shares
Description
Value
COMMON STOCKS (Continued)
Specialty Retail — 0.1%
371,230
EVgo, Inc. (a) (b)
$909,514
Total Common Stocks
691,849,483
(Cost $1,291,788,266)
MONEY MARKET FUNDS — 11.5%
613,714
Dreyfus Government Cash
Management Fund,
Institutional Shares -
5.19% (e)
613,714
78,769,434
Goldman Sachs Financial Square
Treasury Obligations Fund -
Institutional Class -
5.11% (e) (f)
78,769,434
Total Money Market Funds
79,383,148
(Cost $79,383,148)
Total Investments — 111.3%
771,232,631
(Cost $1,371,171,414)
Net Other Assets and
Liabilities — (11.3)%
(78,256,460
)
Net Assets — 100.0%
$692,976,171
 
(a)
Non-income producing security.
(b)
All or a portion of this security is on loan (see Note 2D -
Securities Lending in the Notes to Financial Statements). The
remaining contractual maturity of all of the securities lending
transactions is overnight and continuous. The aggregate
value of such securities, including those sold and pending
settlement, is $72,620,388 and the total value of the collateral
held by the Fund is $78,769,434.
(c)
Security is a Master Limited Partnership (“MLP”).
(d)
This security is taxed as a “C” corporation for federal income
tax purposes.
(e)
Rate shown reflects yield as of June 30, 2024.
(f)
This security serves as collateral for securities on loan.
 
Abbreviations throughout the Portfolio of Investments:
ADR
–  American Depositary Receipt
Valuation Inputs
A summary of the inputs used to value the Fund’s investments as of June 30, 2024 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements):
 
 
Total
Value at
6/30/2024
Level 1
Quoted
Prices
Level 2
Significant
Observable
Inputs
Level 3
Significant
Unobservable
Inputs
Common Stocks*
$ 691,849,483
$ 691,849,483
$ —
$ —
Money Market
Funds
 79,383,148
 79,383,148
 —
 —
Total Investments
$771,232,631
$771,232,631
$—
$—
 
*
See Portfolio of Investments for industry breakout.
Offsetting Assets and Liabilities
Offsetting assets and liabilities requires entities to disclose both gross and net information about instruments and transactions eligible for offset, and to disclose instruments and transactions subject to master netting or similar agreements (see Note 2C - Offsetting on the Statements of Assets and Liabilities in the Notes to Financial Statements).
The Fund’s loaned securities were all subject to an enforceable Securities Lending Agency Agreement. Securities lent in accordance with the Securities Lending Agency Agreement on a gross basis were as follows:
 
Securities Lending Agency Agreement
Total gross amount presented on the Statements
of Assets and Liabilities(1)
$72,620,388
Non-cash Collateral(2)
(72,620,388
)
Net Amount
$—
 
(1)
The amount presented on the Statements of Assets and
Liabilities, which is included in “Investments, at value,” is not
offset and is shown on a gross basis.
(2)
At June 30, 2024, the value of the collateral received from
each borrower exceeded the value of the related securities
loaned. This amount is disclosed on the Portfolio of
Investments.
See Notes to Financial Statements
Page 10
First Trust S&P REIT Index Fund (FRI)
Portfolio of Investments
June 30, 2024 (Unaudited)
 
Shares
Description
Value
COMMON STOCKS — 99.6%
Data Center REITs — 11.5%
35,835
Digital Realty Trust, Inc.
$5,448,712
10,481
Equinix, Inc.
7,929,924
 
13,378,636
Diversified REITs — 2.6%
8,016
Alexander & Baldwin, Inc.
135,951
1,369
Alpine Income Property Trust,
Inc.
21,302
5,380
American Assets Trust, Inc.
120,404
7,407
Armada Hoffler Properties, Inc.
82,144
20,809
Broadstone Net Lease, Inc.
330,239
2,255
CTO Realty Growth, Inc.
39,372
14,673
Empire State Realty Trust, Inc.,
Class A
137,633
19,359
Essential Properties Realty Trust,
Inc.
536,438
4,423
Gladstone Commercial Corp.
63,116
21,577
Global Net Lease, Inc.
158,591
3,809
NexPoint Diversified Real Estate
Trust
21,064
1,766
One Liberty Properties, Inc.
41,466
24,165
WP Carey, Inc.
1,330,283
 
3,018,003
Health Care REITs — 13.9%
17,381
Alexandria Real Estate Equities,
Inc.
2,033,055
7,219
American Healthcare REIT, Inc.
105,470
15,688
CareTrust REIT, Inc.
393,769
2,703
Community Healthcare Trust,
Inc.
63,223
23,892
Diversified Healthcare Trust
72,871
6,808
Global Medical REIT, Inc.
61,817
41,803
Healthcare Realty Trust, Inc.
688,913
77,720
Healthpeak Properties, Inc.
1,523,312
4,801
LTC Properties, Inc.
165,634
66,293
Medical Properties Trust, Inc.
285,723
4,795
National Health Investors, Inc.
324,765
27,288
Omega Healthcare Investors, Inc.
934,614
25,564
Sabra Health Care REIT, Inc.
393,686
1,405
Universal Health Realty Income
Trust
54,992
44,700
Ventas, Inc.
2,291,322
66,029
Welltower, Inc.
6,883,523
 
16,276,689
Hotel & Resort REITs — 3.4%
24,889
Apple Hospitality REIT, Inc.
361,886
4,402
Ashford Hospitality Trust,
Inc. (a)
4,277
6,078
Braemar Hotels & Resorts, Inc.
15,499
5,400
Chatham Lodging Trust
46,008
23,198
DiamondRock Hospitality Co.
196,023
Shares
Description
Value
 
Hotel & Resort REITs
(Continued)
77,859
Host Hotels & Resorts, Inc.
$1,399,905
23,257
Park Hotels & Resorts, Inc.
348,390
13,307
Pebblebrook Hotel Trust
182,971
16,940
RLJ Lodging Trust
163,132
6,614
Ryman Hospitality Properties,
Inc.
660,474
18,305
Service Properties Trust
94,088
11,948
Summit Hotel Properties, Inc.
71,568
22,492
Sunstone Hotel Investors, Inc.
235,266
11,260
Xenia Hotels & Resorts, Inc.
161,356
 
3,940,843
Industrial REITs — 14.6%
29,485
Americold Realty Trust, Inc.
753,047
5,308
EastGroup Properties, Inc.
902,891
14,615
First Industrial Realty Trust, Inc.
694,359
6,543
Industrial Logistics Properties
Trust
24,078
3,128
Innovative Industrial Properties,
Inc.
341,640
32,502
LXP Industrial Trust
296,418
4,059
Plymouth Industrial REIT, Inc.
86,781
102,243
Prologis, Inc.
11,482,911
24,006
Rexford Industrial Realty, Inc.
1,070,428
20,107
STAG Industrial, Inc.
725,059
10,679
Terreno Realty Corp.
631,983
 
17,009,595
Multi-Family Residential
REITs — 11.5%
14,714
Apartment Investment and
Management Co., Class A (a)
121,979
15,681
AvalonBay Communities, Inc.
3,244,242
1,276
BRT Apartments Corp.
22,292
11,765
Camden Property Trust
1,283,679
1,647
Centerspace
111,387
1,420
Clipper Realty, Inc.
5,126
9,718
Elme Communities
154,808
38,084
Equity Residential
2,640,744
7,091
Essex Property Trust, Inc.
1,930,170
24,811
Independence Realty Trust, Inc.
464,958
12,901
Mid-America Apartment
Communities, Inc.
1,839,812
2,523
NexPoint Residential Trust, Inc.
99,684
33,457
UDR, Inc.
1,376,755
8,890
Veris Residential, Inc.
133,350
 
13,428,986
Office REITs — 3.9%
15,957
Boston Properties, Inc.
982,313
19,024
Brandywine Realty Trust
85,228
4,434
City Office REIT, Inc.
22,081
12,413
COPT Defense Properties
310,698
See Notes to Financial Statements
Page 11
First Trust S&P REIT Index Fund (FRI)
Portfolio of Investments (Continued)
June 30, 2024 (Unaudited)
Shares
Description
Value
COMMON STOCKS (Continued)
Office REITs (Continued)
16,794
Cousins Properties, Inc.
$388,781
18,484
Douglas Emmett, Inc.
246,022
11,374
Easterly Government Properties,
Inc.
140,696
11,849
Equity Commonwealth (a)
229,871
10,166
Franklin Street Properties Corp.
15,554
11,705
Highwoods Properties, Inc.
307,490
14,009
Hudson Pacific Properties, Inc.
67,383
9,236
JBG SMITH Properties
140,664
11,795
Kilroy Realty Corp.
367,650
1,633
NET Lease Office Properties
40,205
5,384
Office Properties Income Trust
10,983
6,170
Orion Office REIT, Inc.
22,150
18,240
Paramount Group, Inc.
84,451
4,014
Peakstone Realty Trust
42,549
13,681
Piedmont Office Realty Trust,
Inc., Class A
99,187
2,328
Postal Realty Trust, Inc., Class A
31,032
7,157
SL Green Realty Corp.
405,373
17,670
Vornado Realty Trust
464,544
 
4,504,905
Other Specialized REITs —
7.2%
8,357
EPR Properties
350,827
4,804
Farmland Partners, Inc.
55,390
10,158
Four Corners Property Trust, Inc.
250,598
29,982
Gaming and Leisure Properties,
Inc.
1,355,486
3,681
Gladstone Land Corp.
50,393
32,371
Iron Mountain, Inc.
2,901,089
4,970
Safehold, Inc.
95,871
26,532
Uniti Group, Inc.
77,474
115,200
VICI Properties, Inc.
3,299,328
 
8,436,456
Retail REITs — 16.7%
11,394
Acadia Realty Trust
204,180
11,087
Agree Realty Corp.
686,729
237
Alexander’s, Inc.
53,292
33,273
Brixmor Property Group, Inc.
768,274
2,710
CBL & Associates Properties,
Inc.
63,360
8,245
Federal Realty Investment Trust
832,498
5,423
Getty Realty Corp.
144,577
7,496
InvenTrust Properties Corp.
185,601
73,699
Kimco Realty Corp.
1,434,183
24,251
Kite Realty Group Trust
542,737
23,826
Macerich (The) Co.
367,873
8,102
NETSTREIT Corp.
130,442
20,248
NNN REIT, Inc.
862,565
13,517
Phillips Edison & Co., Inc.
442,141
Shares
Description
Value
 
Retail REITs (Continued)
96,161
Realty Income Corp.
$5,079,224
18,161
Regency Centers Corp.
1,129,614
14,075
Retail Opportunity Investments
Corp.
174,952
1,430
Saul Centers, Inc.
52,581
35,994
Simon Property Group, Inc.
5,463,889
19,901
SITE Centers Corp.
288,565
12,076
Tanger, Inc.
327,380
13,121
Urban Edge Properties
242,345
5,241
Whitestone REIT
69,758
 
19,546,760
Self-Storage REITs — 8.6%
24,844
CubeSmart
1,122,204
23,381
Extra Space Storage, Inc.
3,633,641
7,697
National Storage Affiliates Trust
317,270
17,465
Public Storage
5,023,807
 
10,096,922
Single-Family Residential
REITs — 5.7%
35,537
American Homes 4 Rent,
Class A
1,320,555
20,595
Equity LifeStyle Properties, Inc.
1,341,352
63,585
Invitation Homes, Inc.
2,282,066
13,764
Sun Communities, Inc.
1,656,360
7,308
UMH Properties, Inc.
116,855
 
6,717,188
Total Common Stocks
116,354,983
(Cost $144,578,107)
MONEY MARKET FUNDS — 0.1%
137,325
Morgan Stanley Institutional
Liquidity Funds - Treasury
Portfolio - Institutional Class -
5.14% (b)
137,325
(Cost $137,325)
Total Investments — 99.7%
116,492,308
(Cost $144,715,432)
Net Other Assets and
Liabilities — 0.3%
347,247
Net Assets — 100.0%
$116,839,555
 
(a)
Non-income producing security.
(b)
Rate shown reflects yield as of June 30, 2024.
 
Abbreviations throughout the Portfolio of Investments:
REITs
–  Real Estate Investment Trusts
See Notes to Financial Statements
Page 12
First Trust S&P REIT Index Fund (FRI)
Portfolio of Investments (Continued)
June 30, 2024 (Unaudited)
Valuation Inputs
A summary of the inputs used to value the Fund’s investments as of June 30, 2024 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements):
 
 
Total
Value at
6/30/2024
Level 1
Quoted
Prices
Level 2
Significant
Observable
Inputs
Level 3
Significant
Unobservable
Inputs
Common Stocks*
$ 116,354,983
$ 116,354,983
$ —
$ —
Money Market
Funds
 137,325
 137,325
 —
 —
Total Investments
$116,492,308
$116,492,308
$—
$—
 
*
See Portfolio of Investments for sub-industry breakout.
See Notes to Financial Statements
Page 13
First Trust Water ETF (FIW)
Portfolio of Investments
June 30, 2024 (Unaudited)
 
Shares
Description
Value
COMMON STOCKS — 99.9%
Beverages — 2.6%
2,012,722
Primo Water Corp.
$43,998,103
Building Products — 8.6%
688,733
A.O. Smith Corp.
56,324,585
349,767
Advanced Drainage Systems,
Inc.
56,099,129
1,027,598
Zurn Elkay Water Solutions
Corp.
30,211,381
 
142,635,095
Chemicals — 5.7%
290,217
Ecolab, Inc.
69,071,646
290,269
Hawkins, Inc.
26,414,479
 
95,486,125
Commercial Services &
Supplies — 9.0%
492,784
Montrose Environmental Group,
Inc. (a)
21,958,455
275,994
Tetra Tech, Inc.
56,435,253
755,062
Veralto Corp.
72,085,769
 
150,479,477
Construction & Engineering
— 8.9%
642,755
AECOM
56,652,426
587,155
Stantec, Inc.
49,056,800
153,948
Valmont Industries, Inc.
42,251,029
 
147,960,255
Electronic Equipment,
Instruments & Components
— 4.4%
205,597
Badger Meter, Inc.
38,313,001
352,031
Itron, Inc. (a)
34,836,988
 
73,149,989
Health Care Equipment &
Supplies — 3.3%
113,437
IDEXX Laboratories, Inc. (a)
55,266,506
Life Sciences Tools & Services
— 7.1%
475,047
Agilent Technologies, Inc.
61,580,343
193,387
Waters Corp. (a)
56,105,436
 
117,685,779
Machinery — 23.5%
770,941
Flowserve Corp.
37,082,262
313,835
Franklin Electric Co., Inc.
30,228,587
276,611
IDEX Corp.
55,654,133
170,911
Lindsay Corp.
21,001,544
952,498
Mueller Industries, Inc.
54,235,236
1,311,344
Mueller Water Products, Inc.,
Class A
23,499,285
733,975
Pentair PLC
56,273,863
Shares
Description
Value
 
Machinery (Continued)
239,958
Watts Water Technologies, Inc.,
Class A
$44,001,099
513,597
Xylem, Inc.
69,659,161
 
391,635,170
Multi-Utilities — 2.0%
5,577,134
Algonquin Power & Utilities
Corp. (b)
32,682,005
Software — 4.0%
119,789
Roper Technologies, Inc.
67,520,268
Trading Companies &
Distributors — 6.6%
1,025,337
Core & Main, Inc., Class A (a)
50,179,993
308,595
Ferguson PLC
59,759,421
 
109,939,414
Water Utilities — 14.2%
456,886
American States Water Co.
33,156,217
550,468
American Water Works Co., Inc.
71,098,447
710,966
California Water Service Group
34,474,741
1,290,595
Cia de Saneamento Basico do
Estado de Sao Paulo, ADR
17,358,503
1,641,631
Essential Utilities, Inc.
61,282,085
370,349
SJW Group
20,080,323
 
237,450,316
Total Common Stocks
1,665,888,502
(Cost $1,376,019,311)
MONEY MARKET FUNDS — 0.1%
872,768
Morgan Stanley Institutional
Liquidity Funds - Treasury
Portfolio - Institutional Class -
5.14% (c)
872,768
(Cost $872,768)
 
See Notes to Financial Statements
Page 14
First Trust Water ETF (FIW)
Portfolio of Investments (Continued)
June 30, 2024 (Unaudited)
Principal
Value
Description
Value
REPURCHASE AGREEMENTS — 1.8%
$14,949,383
JPMorgan Chase & Co.,
5.32% (c), dated 06/28/24, due
07/01/24, with a maturity
value of $14,956,011.
Collateralized by
U.S. Treasury Securities,
interest rates of 2.63% to
6.25%, due 07/31/29 to
08/15/32. The value of the
collateral including accrued
interest is $15,248,372. (d)
$14,949,383
15,559,562
Mizuho Financial Group, Inc.,
5.32% (c), dated 06/28/24, due
07/01/24, with a maturity
value of $15,566,460.
Collateralized by
U.S. Treasury Securities,
interest rates of 0.50% to
5.00%, due 07/31/24 to
09/30/29. The value of the
collateral including accrued
interest is $15,870,756. (d)
15,559,562
Total Repurchase Agreements
30,508,945
(Cost $30,508,945)
Total Investments — 101.8%
1,697,270,215
(Cost $1,407,401,024)
Net Other Assets and
Liabilities — (1.8)%
(29,704,750
)
Net Assets — 100.0%
$1,667,565,465
 
(a)
Non-income producing security.
(b)
All or a portion of this security is on loan (see Note 2D -
Securities Lending in the Notes to Financial Statements). The
remaining contractual maturity of all of the securities lending
transactions is overnight and continuous. The aggregate
value of such securities, including those sold and pending
settlement, is $29,300,000 and the total value of the collateral
held by the Fund is $30,508,945.
(c)
Rate shown reflects yield as of June 30, 2024.
(d)
This security serves as collateral for securities on loan.
 
Abbreviations throughout the Portfolio of Investments:
ADR
–  American Depositary Receipt
Valuation Inputs
A summary of the inputs used to value the Fund’s investments as of June 30, 2024 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements):
 
 
Total
Value at
6/30/2024
Level 1
Quoted
Prices
Level 2
Significant
Observable
Inputs
Level 3
Significant
Unobservable
Inputs
Common
Stocks*
$ 1,665,888,502
$ 1,665,888,502
$ —
$ —
Money
Market
Funds
 872,768
 872,768
 —
 —
Repurchase
Agreements
 30,508,945
 —
 30,508,945
 —
Total
Investments
$1,697,270,215
$1,666,761,270
$30,508,945
$—
 
*
See Portfolio of Investments for industry breakout.
Offsetting Assets and Liabilities
Offsetting assets and liabilities requires entities to disclose both gross and net information about instruments and transactions eligible for offset, and to disclose instruments and transactions subject to master netting or similar agreements (see Note 2C - Offsetting on the Statements of Assets and Liabilities in the Notes to Financial Statements).
The Fund’s loaned securities were all subject to an enforceable Securities Lending Agency Agreement. Securities lent in accordance with the Securities Lending Agency Agreement on a gross basis were as follows:
 
Securities Lending Agency Agreement
Total gross amount presented on the Statements
of Assets and Liabilities(1)
$29,300,000
Non-cash Collateral(2)
(29,300,000
)
Net Amount
$—
 
(1)
The amount presented on the Statements of Assets and
Liabilities, which is included in “Investments, at value,” is not
offset and is shown on a gross basis.
(2)
At June 30, 2024, the value of the collateral received from
each borrower exceeded the value of the related securities
loaned. This amount is disclosed on the Portfolio of
Investments.
See Notes to Financial Statements
Page 15
First Trust Water ETF (FIW)
Portfolio of Investments (Continued)
June 30, 2024 (Unaudited)
The Fund’s investments in repurchase agreements were all subject to an enforceable Master Repurchase Agreement. Repurchase Agreements on a gross basis were as follows:
 
Repurchase Agreements
Total gross amount presented on the Statements
of Assets and Liabilities(3)
$30,508,945
Non-cash Collateral(4)
(30,508,945
)
Net Amount
$—
 
(3)
The amount is included in “Investments, at value” on the
Statements of Assets and Liabilities.
(4)
At June 30, 2024, the value of the collateral received from
each seller exceeded the value of the repurchase agreements.
See Notes to Financial Statements
Page 16
First Trust Natural Gas ETF (FCG)
Portfolio of Investments
June 30, 2024 (Unaudited)
 
Shares
Description
Value
COMMON STOCKS — 99.9%
Gas Utilities — 1.8%
133,489
National Fuel Gas Co.
$7,233,769
Oil, Gas & Consumable Fuels
— 98.1%
213,733
Amplify Energy Corp. (a)
1,449,109
377,916
Antero Resources Corp. (a)
12,331,399
499,853
APA Corp.
14,715,672
1,585,570
Baytex Energy Corp.
5,517,784
170,625
California Resources Corp.
9,080,663
157,955
Chesapeake Energy Corp.
12,982,322
70,203
Chord Energy Corp.
11,771,639
158,643
Civitas Resources, Inc.
10,946,367
341,322
CNX Resources Corp. (a)
8,294,125
421,624
Comstock Resources, Inc.
4,376,457
157,987
ConocoPhillips
18,070,553
550,818
Coterra Energy, Inc.
14,690,316
320,599
Crescent Energy, Inc., Class A
3,799,098
338,366
Devon Energy Corp.
16,038,549
85,596
Diamondback Energy, Inc.
17,135,463
144,147
EOG Resources, Inc.
18,143,783
393,239
EQT Corp.
14,541,978
137,050
Granite Ridge Resources, Inc.
867,527
38,834
Gulfport Energy Corp. (a)
5,863,934
553,637
Hess Midstream, L.P.,
Class A (b) (c)
20,174,532
1,177,281
Kosmos Energy Ltd. (a)
6,522,137
380,518
Magnolia Oil & Gas Corp.,
Class A
9,642,326
198,069
Matador Resources Co.
11,804,912
251,744
Murphy Oil Corp.
10,381,923
208,354
Northern Oil & Gas, Inc.
7,744,518
350,655
Obsidian Energy Ltd. (a)
2,622,899
280,075
Occidental Petroleum Corp.
17,653,127
286,659
Ovintiv, Inc.
13,435,707
848,931
Permian Resources Corp.
13,710,236
328,329
Range Resources Corp.
11,008,871
61,485
Riley Exploration Permian, Inc.
1,740,640
250,748
Ring Energy, Inc. (a)
423,764
225,062
SandRidge Energy, Inc.
2,910,052
204,705
SM Energy Co.
8,849,397
80,020
Summit Midstream Partners
L.P. (a) (c)
2,845,511
1,082,159
Veren, Inc.
8,516,591
362,551
Vermilion Energy, Inc.
3,991,687
138,959
Vista Energy SAB de CV,
ADR (a)
6,319,855
110,257
Vital Energy, Inc. (a)
4,941,719
140,702
Vitesse Energy, Inc.
3,334,637
1,006,364
W&T Offshore, Inc.
2,153,619
Shares
Description
Value
 
Oil, Gas & Consumable Fuels
(Continued)
515,511
Western Midstream Partners,
L.P. (c)
$20,481,252
606,538
Woodside Energy Group Ltd.,
ADR
11,408,980
 
403,235,630
Total Common Stocks
410,469,399
(Cost $405,440,066)
MONEY MARKET FUNDS — 0.1%
376,516
Morgan Stanley Institutional
Liquidity Funds - Treasury
Portfolio - Institutional Class -
5.14% (d)
376,516
(Cost $376,516)
Total Investments — 100.0%
410,845,915
(Cost $405,816,582)
Net Other Assets and
Liabilities — (0.0)%
(19,551
)
Net Assets — 100.0%
$410,826,364
 
(a)
Non-income producing security.
(b)
This security is taxed as a “C” corporation for federal income
tax purposes.
(c)
Security is a Master Limited Partnership (“MLP”).
(d)
Rate shown reflects yield as of June 30, 2024.
 
Abbreviations throughout the Portfolio of Investments:
ADR
–  American Depositary Receipt
Valuation Inputs
A summary of the inputs used to value the Fund’s investments as of June 30, 2024 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements):
 
 
Total
Value at
6/30/2024
Level 1
Quoted
Prices
Level 2
Significant
Observable
Inputs
Level 3
Significant
Unobservable
Inputs
Common Stocks*
$ 410,469,399
$ 410,469,399
$ —
$ —
Money Market
Funds
 376,516
 376,516
 —
 —
Total Investments
$410,845,915
$410,845,915
$—
$—
 
*
See Portfolio of Investments for industry breakout.
See Notes to Financial Statements
Page 17
First Trust NASDAQ® ABA Community Bank Index Fund (QABA)
Portfolio of Investments
June 30, 2024 (Unaudited)
 
Shares
Description
Value
COMMON STOCKS — 99.9%
Banks — 98.1%
8,581
1st Source Corp.
$460,113
10,696
Amalgamated Financial Corp.
293,071
24,215
Ameris Bancorp
1,219,225
5,851
Arrow Financial Corp.
152,419
11,560
BancFirst Corp.
1,013,812
18,138
Bancorp (The), Inc. (a)
684,891
3,533
Bank First Corp.
291,790
5,707
Bank of Marin Bancorp
92,396
39,747
Bank OZK
1,629,627
12,071
Banner Corp.
599,204
9,592
Bridgewater Bancshares, Inc. (a)
111,363
31,149
Brookline Bancorp, Inc.
260,094
5,203
Burke & Herbert Financial
Services Corp.
265,249
8,936
Business First Bancshares, Inc.
194,447
5,118
Camden National Corp.
168,894
5,937
Capital City Bank Group, Inc.
168,848
46,510
Capitol Federal Financial, Inc.
255,340
8,065
Carter Bankshares, Inc. (a)
121,943
25,514
Cathay General Bancorp
962,388
16
Citizens Financial Services, Inc.
719
5,173
City Holding Co.
549,631
7,360
CNB Financial Corp.
150,218
4,702
Coastal Financial Corp. (a)
216,950
36,727
Columbia Financial, Inc. (a)
549,803
45,390
Commerce Bancshares, Inc.
2,531,854
6,316
Community Trust Bancorp, Inc.
275,757
6,612
Community West Bancshares
122,322
13,432
ConnectOne Bancorp, Inc.
253,730
17,272
CrossFirst Bankshares, Inc. (a)
242,153
48,930
CVB Financial Corp.
843,553
13,655
Dime Community Bancshares,
Inc.
278,562
10,578
Eagle Bancorp, Inc.
199,924
4,336
Enterprise Bancorp, Inc.
107,880
13,137
Enterprise Financial Services
Corp.
537,435
2,906
Esquire Financial Holdings, Inc.
138,326
13,158
Farmers National Banc Corp.
164,343
5,413
Financial Institutions, Inc.
104,579
14,426
First Bancorp
460,478
19,878
First Busey Corp.
481,246
6,431
First Community Bankshares,
Inc.
236,918
33,449
First Financial Bancorp
743,237
50,052
First Financial Bankshares, Inc.
1,478,036
4,140
First Financial Corp.
152,683
44,796
First Hawaiian, Inc.
929,965
3,033
First Internet Bancorp
81,952
Shares
Description
Value
 
Banks (Continued)
36,641
First Interstate BancSystem, Inc.,
Class A
$1,017,521
20,528
First Merchants Corp.
683,377
8,373
First Mid Bancshares, Inc.
275,304
7,890
First of Long Island (The) Corp.
79,058
7,471
Five Star Bancorp
176,689
10,186
Flushing Financial Corp.
133,946
63,689
Fulton Financial Corp.
1,081,439
10,395
German American Bancorp, Inc.
367,463
4,085
Great Southern Bancorp, Inc.
227,167
30,355
Hancock Whitney Corp.
1,451,880
10,648
Hanmi Financial Corp.
178,035
15,654
HarborOne Bancorp, Inc.
174,229
21,464
Heritage Commerce Corp.
186,737
12,155
Heritage Financial Corp.
219,155
764
Hingham Institution for (The)
Savings (b)
136,664
6,113
HomeTrust Bancshares, Inc.
183,573
42,264
Hope Bancorp, Inc.
453,915
15,458
Horizon Bancorp, Inc.
191,215
14,880
Independent Bank Corp.
754,714
7,324
Independent Bank Corp.
197,748
14,499
Independent Bank Group, Inc.
659,994
21,787
International Bancshares Corp.
1,246,434
22,579
Kearny Financial Corp.
138,861
8,936
Lakeland Financial Corp.
549,743
5,649
Mercantile Bank Corp.
229,180
5,848
Mid Penn Bancorp, Inc.
128,364
7,527
Midland States Bancorp, Inc.
170,487
5,521
MidWestOne Financial Group,
Inc.
124,167
16,521
NBT Bancorp, Inc.
637,711
2,795
Northeast Bank
170,104
4,917
Northeast Community Bancorp,
Inc.
87,621
15,538
Northfield Bancorp, Inc.
147,300
1,927
Northrim BanCorp, Inc.
111,072
44,594
Northwest Bancshares, Inc.
515,061
20,573
OceanFirst Financial Corp.
326,905
15,714
Old Second Bancorp, Inc.
232,724
3,757
Orrstown Financial Services, Inc.
102,792
33,790
Pacific Premier Bancorp, Inc.
776,156
8,855
Pathward Financial, Inc.
500,927
6,225
Peapack-Gladstone Financial
Corp.
140,996
12,437
Peoples Bancorp, Inc.
373,110
4,693
Preferred Bank
354,275
12,549
Premier Financial Corp.
256,753
8,649
Primis Financial Corp.
90,642
5,889
QCR Holdings, Inc.
353,340
6,461
RBB Bancorp
121,531
6,048
Republic Bancorp, Inc., Class A
324,233
See Notes to Financial Statements
Page 18
First Trust NASDAQ® ABA Community Bank Index Fund (QABA)
Portfolio of Investments (Continued)
June 30, 2024 (Unaudited)
Shares
Description
Value
COMMON STOCKS (Continued)
Banks (Continued)
13,398
S&T Bancorp, Inc.
$447,359
15,790
Sandy Spring Bancorp, Inc.
384,644
29,761
Seacoast Banking Corp. of
Florida
703,550
11,642
Shore Bancshares, Inc.
133,301
5,114
Sierra Bancorp
114,451
43,970
Simmons First National Corp.,
Class A
772,993
5,753
South Plains Financial, Inc.
155,331
6,493
Southern California Bancorp (a)
87,461
3,979
Southern Missouri Bancorp, Inc.
179,095
10,612
Southside Bancshares, Inc.
292,997
10,299
Stock Yards Bancorp, Inc.
511,551
16,347
Texas Capital Bancshares,
Inc. (a)
999,456
98,361
TFS Financial Corp.
1,241,316
4,784
Third Coast Bancshares, Inc. (a)
101,756
26,280
TowneBank
716,656
11,624
TriCo Bancshares
459,962
8,177
Triumph Financial, Inc. (a)
668,470
6,666
TrustCo Bank Corp.
191,781
21,445
Trustmark Corp.
644,208
17,080
UMB Financial Corp.
1,424,814
47,373
United Bankshares, Inc.
1,536,780
41,747
United Community Banks, Inc.
1,062,879
10,257
Univest Financial Corp.
234,167
19,106
Veritex Holdings, Inc.
402,946
28,528
WaFd, Inc.
815,330
5,976
Washington Trust Bancorp, Inc.
163,802
20,822
WesBanco, Inc.
581,142
9,348
Westamerica BanCorp
453,658
21,639
Wintrust Financial Corp.
2,132,740
21,057
WSFS Financial Corp.
989,679
 
56,421,955
Financial Services — 1.8%
4,781
Cass Information Systems, Inc.
191,575
16,033
Merchants Bancorp
649,978
8,667
NewtekOne, Inc.
108,944
6,883
Waterstone Financial, Inc.
88,033
 
1,038,530
Total Common Stocks
57,460,485
(Cost $73,378,833)
MONEY MARKET FUNDS — 0.1%
49,220
Dreyfus Government Cash
Management Fund,
Institutional Shares -
5.19% (c)
49,220
(Cost $49,220)
 
Principal
Value
Description
Value
REPURCHASE AGREEMENTS — 0.0%
$10,400
Mizuho Financial Group, Inc.,
5.32% (c), dated 06/28/24, due
07/01/24, with a maturity
value of $10,405.
Collateralized by
U.S. Treasury Securities,
interest rates of 0.50% to
5.00%, due 07/31/24 to
09/30/29. The value of the
collateral including accrued
interest is $10,608. (d)
$10,400
(Cost $10,400)
Total Investments — 100.0%
57,520,105
(Cost $73,438,453)
Net Other Assets and
Liabilities — 0.0%
1,139
Net Assets — 100.0%
$57,521,244
 
(a)
Non-income producing security.
(b)
All or a portion of this security is on loan (see Note 2D -
Securities Lending in the Notes to Financial Statements). The
remaining contractual maturity of all of the securities lending
transactions is overnight and continuous. The aggregate
value of such securities, including those sold and pending
settlement, is $10,375 and the total value of the collateral
held by the Fund is $10,400.
(c)
Rate shown reflects yield as of June 30, 2024.
(d)
This security serves as collateral for securities on loan.
Valuation Inputs
A summary of the inputs used to value the Fund’s investments as of June 30, 2024 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements):
 
 
Total
Value at
6/30/2024
Level 1
Quoted
Prices
Level 2
Significant
Observable
Inputs
Level 3
Significant
Unobservable
Inputs
Common Stocks*
$ 57,460,485
$ 57,460,485
$ —
$ —
Money Market Funds
 49,220
 49,220
 —
 —
Repurchase
Agreements
 10,400
 —
 10,400
 —
Total Investments
$57,520,105
$57,509,705
$10,400
$—
 
*
See Portfolio of Investments for industry breakout.
See Notes to Financial Statements
Page 19
First Trust NASDAQ® ABA Community Bank Index Fund (QABA)
Portfolio of Investments (Continued)
June 30, 2024 (Unaudited)
Offsetting Assets and Liabilities
Offsetting assets and liabilities requires entities to disclose both gross and net information about instruments and transactions eligible for offset, and to disclose instruments and transactions subject to master netting or similar agreements (see Note 2C - Offsetting on the Statements of Assets and Liabilities in the Notes to Financial Statements).
The Fund’s loaned securities were all subject to an enforceable Securities Lending Agency Agreement. Securities lent in accordance with the Securities Lending Agency Agreement on a gross basis were as follows:
 
Securities Lending Agency Agreement
Total gross amount presented on the Statements
of Assets and Liabilities(1)
$10,375
Non-cash Collateral(2)
(10,375
)
Net Amount
$—
 
(1)
The amount presented on the Statements of Assets and
Liabilities, which is included in “Investments, at value,” is not
offset and is shown on a gross basis.
(2)
At June 30, 2024, the value of the collateral received from
each borrower exceeded the value of the related securities
loaned. This amount is disclosed on the Portfolio of
Investments.
The Fund’s investments in repurchase agreements were all subject to an enforceable Master Repurchase Agreement. Repurchase Agreements on a gross basis were as follows:
 
Repurchase Agreements
Total gross amount presented on the Statements
of Assets and Liabilities(3)
$10,400
Non-cash Collateral(4)
(10,400
)
Net Amount
$—
 
(3)
The amount is included in “Investments, at value” on the
Statements of Assets and Liabilities.
(4)
At June 30, 2024, the value of the collateral received from
each seller exceeded the value of the repurchase agreements.
See Notes to Financial Statements
Page 20
This page intentionally left blank.
Page 21
First Trust Exchange-Traded Fund
Statements of Assets and Liabilities
June 30, 2024 (Unaudited)
 
 
First Trust
NASDAQ-100
Equal Weighted
Index Fund
(QQEW)
First Trust
NASDAQ-100-
Technology
Sector Index
Fund
(QTEC)
First Trust
NASDAQ-100
Ex-Technology
Sector Index
Fund
(QQXT)
ASSETS:
Investments, at value
$2,072,736,462
$4,168,024,320
$132,222,022
Cash
—
—
—
Receivables:
Investment securities sold
6,165,089
—
—
Dividends
719,057
573,528
65,246
Securities lending income
69,614
15,662
7,695
Reclaims
—
—
—
Prepaid expenses
8,502
11,640
2,586
Total Assets
2,079,698,724
4,168,625,150
132,297,549
 
LIABILITIES:
Payables:
Collateral for securities on loan
7,034,154
57,152,032
49,600
Capital shares redeemed
6,164,455
—
—
Investment advisory fees
681,941
1,319,211
40,774
Licensing fees
516,526
978,534
33,749
Shareholder reporting fees
29,879
12,922
10,708
Audit and tax fees
14,504
14,490
14,513
Investment securities purchased
—
—
—
Trustees’ fees
—
—
—
Other liabilities
164,395
256,939
18,255
Total Liabilities
14,605,854
59,734,128
167,599
NET ASSETS
$2,065,092,870
$4,108,891,022
$132,129,950
 
NET ASSETS consist of:
Paid-in capital
$1,717,901,344
$3,477,312,454
$131,319,489
Par value
167,500
208,000
15,000
Accumulated distributable earnings (loss)
347,024,026
631,370,568
795,461
NET ASSETS
$2,065,092,870
$4,108,891,022
$132,129,950
NET ASSET VALUE, per share
$123.29
$197.54
$88.09
Number of shares outstanding (unlimited number of shares authorized,
par value $0.01 per share)
16,750,002
20,800,002
1,500,002
Investments, at cost
$1,784,043,204
$3,421,558,026
$121,324,162
Securities on loan, at value
$6,885,466
$55,903,232
$49,184
See Notes to Financial Statements
Page 22
 
First Trust NASDAQ®
Clean Edge® Green
Energy Index Fund
(QCLN)
First Trust S&P REIT
Index Fund
(FRI)
First Trust Water
ETF
(FIW)
First Trust Natural
Gas ETF
(FCG)
First Trust NASDAQ®
ABA Community
Bank Index Fund
(QABA)
$771,232,631
$116,492,308
$1,697,270,215
$410,845,915
$57,520,105
—
1,521
—
—
—
—
—
—
—
—
218,012
415,864
1,598,848
356,127
97,893
394,453
—
21,482
136
76
526,856
—
169,819
876
—
6,186
6,505
8,271
4,510
2,213
772,378,138
116,916,198
1,699,068,635
411,207,564
57,620,287
78,769,434
—
30,508,945
—
10,400
—
—
—
—
—
247,729
32,653
552,451
134,666
19,518
182,479
—
206,680
105,171
14,978
118,279
12,221
84,428
82,889
26,302
14,584
17,136
14,382
15,352
14,391
—
973
—
—
—
—
55
—
—
68
69,462
13,605
136,284
43,122
13,386
79,401,967
76,643
31,503,170
381,200
99,043
$692,976,171
$116,839,555
$1,667,565,465
$410,826,364
$57,521,244
$1,957,612,306
$149,259,267
$1,413,165,509
$962,238,277
$97,669,058
203,500
45,500
167,000
156,484
12,500
(1,264,839,635)
(32,465,212)
254,232,956
(551,568,397)
(40,160,314)
$692,976,171
$116,839,555
$1,667,565,465
$410,826,364
$57,521,244
$34.05
$25.68
$99.85
$26.25
$46.02
20,350,002
4,550,002
16,700,002
15,648,365
1,250,002
$1,371,171,414
$144,715,432
$1,407,401,024
$405,816,582
$73,438,453
$72,620,388
$—
$29,300,000
$—
$10,375
See Notes to Financial Statements
Page 23
First Trust Exchange-Traded Fund
Statements of Operations
For the Six Months Ended June 30, 2024 (Unaudited)
 
 
First Trust
NASDAQ-100
Equal Weighted
Index Fund
(QQEW)
First Trust
NASDAQ-100-
Technology
Sector Index
Fund
(QTEC)
First Trust
NASDAQ-100
Ex-Technology
Sector Index
Fund
(QQXT)
INVESTMENT INCOME:
Dividends
$11,311,416
$10,915,508
$1,060,133
Securities lending income (net of fees)
2,133,215
185,087
266,117
Foreign withholding tax
(39,911)
(180,236)
—
Total investment income
13,404,720
10,920,359
1,326,250
 
EXPENSES:
Investment advisory fees
4,283,527
 
7,648,404
 
300,190
 
Licensing fees
1,066,641
1,925,059
74,749
Accounting and administration fees
379,000
593,289
29,628
Shareholder reporting fees
66,912
77,163
15,414
Transfer agent fees
39,204
60,664
3,753
Legal fees
25,585
49,702
2,165
Audit and tax fees
14,532
14,500
14,499
Listing fees
6,236
6,236
6,236
Trustees’ fees and expenses
5,012
6,154
3,998
Custodian fees
(27,464)
(12,949)
2,369
Other expenses
12,119
14,504
1,447
Total expenses
5,871,304
10,382,726
454,448
Less fees waived by the investment advisor
—
—
(4,162)
Net expenses
5,871,304
10,382,726
450,286
NET INVESTMENT INCOME (LOSS)
7,533,416
537,633
875,964
 
NET REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) on:
Investments
(18,928,568)
(8,807,101)
1,802,829
In-kind redemptions
276,360,043
388,419,012
12,059,969
Foreign currency transactions
—
—
—
Net realized gain (loss)
257,431,475
379,611,911
13,862,798
Net change in unrealized appreciation (depreciation) on:
Investments
(153,243,094)
69,711,250
(13,870,878)
Foreign currency translation
—
—
—
Net change in unrealized appreciation (depreciation)
(153,243,094)
69,711,250
(13,870,878)
NET REALIZED AND UNREALIZED GAIN (LOSS)
104,188,381
449,323,161
(8,080)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS
$111,721,797
$449,860,794
$867,884
See Notes to Financial Statements
Page 24
 
First Trust NASDAQ®
Clean Edge® Green
Energy Index Fund
(QCLN)
First Trust S&P REIT
Index Fund
(FRI)
First Trust Water
ETF
(FIW)
First Trust Natural
Gas ETF
(FCG)
First Trust NASDAQ®
ABA Community
Bank Index Fund
(QABA)
$3,398,053
$2,364,829
$9,600,204
$5,995,906
$1,305,849
2,852,289
—
103,180
12,379
4,882
(37,157)
—
(188,937)
(48,049)
—
6,213,185
2,364,829
9,514,447
5,960,236
1,310,731
1,619,028
 
174,923
 
3,194,267
 
844,557
 
157,565
 
403,258
46,640
397,978
209,506
35,681
104,895
22,441
281,643
70,470
16,608
77,481
10,368
83,146
50,906
17,560
20,188
2,915
32,396
10,557
1,970
14,985
1,502
16,947
6,756
816
14,595
17,192
14,492
15,474
14,459
6,236
4,862
6,156
7,112
6,236
4,363
4,077
4,843
4,142
4,055
(14,348)
2,404
1,109
(2,069)
580
12,571
1,096
11,114
6,756
939
2,263,252
288,420
4,044,091
1,224,167
256,469
—
—
—
—
(20,121)
2,263,252
288,420
4,044,091
1,224,167
236,348
3,949,933
2,076,409
5,470,356
4,736,069
1,074,383
(102,225,110)
(1,247,556)
(13,271,435)
(11,117,743)
(963,521)
(83,764,277)
(665,012)
60,201,035
7,835,411
(2,107,259)
—
—
—
(621)
—
(185,989,387)
(1,912,568)
46,929,600
(3,282,953)
(3,070,780)
(29,022,645)
(1,360,298)
30,907,672
33,697,439
(4,987,052)
—
—
—
(950)
—
(29,022,645)
(1,360,298)
30,907,672
33,696,489
(4,987,052)
(215,012,032)
(3,272,866)
77,837,272
30,413,536
(8,057,832)
$(211,062,099)
$(1,196,457)
$83,307,628
$35,149,605
$(6,983,449)
See Notes to Financial Statements
Page 25
First Trust Exchange-Traded Fund
Statements of Changes in Net Assets
 
 
First Trust NASDAQ-100 Equal
Weighted Index Fund (QQEW)
First Trust NASDAQ-100-
Technology Sector Index Fund
(QTEC)
 
Six Months
Ended
6/30/2024 
(Unaudited)
Year
Ended
12/31/2023 
Six Months
Ended
6/30/2024 
(Unaudited)
Year
Ended
12/31/2023 
OPERATIONS:
Net investment income (loss)
$7,533,416
$14,072,622
$537,633
$2,947,476
Net realized gain (loss)
257,431,475
(1,534,772)
379,611,911
56,733,643
Net change in unrealized appreciation (depreciation)
(153,243,094)
467,638,627
69,711,250
1,001,338,311
Net increase (decrease) in net assets resulting from
operations
111,721,797
480,176,477
449,860,794
1,061,019,430
 
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment operations
(7,579,050)
(14,296,112)
(887,760)
(3,468,140)
 
SHAREHOLDER TRANSACTIONS:
Proceeds from shares sold
371,208,335
 
868,400,353
 
966,110,553
 
1,512,418,124
 
Cost of shares redeemed
(672,534,157)
 
(158,497,835)
 
(799,433,736)
 
(435,865,726)
 
Net increase (decrease) in net assets resulting from
shareholder transactions
(301,325,822)
709,902,518
166,676,817
1,076,552,398
Total increase (decrease) in net assets
(197,183,075)
1,175,782,883
615,649,851
2,134,103,688
 
NET ASSETS:
Beginning of period
2,262,275,945
1,086,493,062
3,493,241,171
1,359,137,483
End of period
$2,065,092,870
$2,262,275,945
$4,108,891,022
$3,493,241,171
 
CHANGES IN SHARES OUTSTANDING:
Shares outstanding, beginning of period
19,250,002
12,250,002
19,900,002
12,900,002
Shares sold
3,050,000
8,550,000
5,100,000
10,100,000
Shares redeemed
(5,550,000)
(1,550,000)
(4,200,000)
(3,100,000)
Shares outstanding, end of period
16,750,002
19,250,002
20,800,002
19,900,002
See Notes to Financial Statements
Page 26
 
First Trust NASDAQ-100 Ex-
Technology Sector Index
Fund (QQXT)
First Trust NASDAQ® Clean
Edge® Green Energy Index
Fund (QCLN)
First Trust S&P REIT Index
Fund (FRI)
First Trust Water ETF (FIW)
Six Months
Ended
6/30/2024 
(Unaudited)
Year
Ended
12/31/2023 
Six Months
Ended
6/30/2024 
(Unaudited)
Year
Ended
12/31/2023 
Six Months
Ended
6/30/2024 
(Unaudited)
Year
Ended
12/31/2023 
Six Months
Ended
6/30/2024 
(Unaudited)
Year
Ended
12/31/2023 
$875,964
$1,962,160
$3,949,933
$6,827,098
$2,076,409
$4,155,067
$5,470,356
$10,026,250
13,862,798
9,064,867
(185,989,387)
(81,744,835)
(1,912,568)
(6,380,965)
46,929,600
33,099,660
(13,870,878)
14,041,513
(29,022,645)
(66,605,179)
(1,360,298)
16,785,202
30,907,672
209,288,484
867,884
25,068,540
(211,062,099)
(141,522,916)
(1,196,457)
14,559,304
83,307,628
252,414,394
(874,191)
(1,980,762)
(3,623,740)
(9,544,615)
(1,725,556)
(4,123,107)
(4,713,731)
(10,284,831)
—
 
72,827,772
 
15,146,101
 
120,119,917
 
9,063,115
 
12,513,585
 
259,188,388
 
279,923,403
 
(44,253,896)
 
(53,207,747)
 
(246,536,503)
 
(403,503,870)
 
(12,514,800)
 
(32,834,885)
 
(187,472,027)
 
(254,578,833)
 
(44,253,896)
19,620,025
(231,390,402)
(283,383,953)
(3,451,685)
(20,321,300)
71,716,361
25,344,570
(44,260,203)
42,707,803
(446,076,241)
(434,451,484)
(6,373,698)
(9,885,103)
150,310,258
267,474,133
176,390,153
133,682,350
1,139,052,412
1,573,503,896
123,213,253
133,098,356
1,517,255,207
1,249,781,074
$132,129,950
$176,390,153
$692,976,171
$1,139,052,412
$116,839,555
$123,213,253
$1,667,565,465
$1,517,255,207
2,000,002
1,750,002
27,000,002
33,350,002
4,700,002
5,550,002
16,000,002
15,750,002
—
900,000
400,000
2,600,000
350,000
500,000
2,600,000
3,300,000
(500,000)
(650,000)
(7,050,000)
(8,950,000)
(500,000)
(1,350,000)
(1,900,000)
(3,050,000)
1,500,002
2,000,002
20,350,002
27,000,002
4,550,002
4,700,002
16,700,002
16,000,002
See Notes to Financial Statements
Page 27
First Trust Exchange-Traded Fund
Statements of Changes in Net Assets (Continued)
 
 
First Trust Natural Gas ETF
(FCG)
First Trust NASDAQ® ABA
Community Bank Index Fund
(QABA)
 
Six Months
Ended
6/30/2024 
(Unaudited)
Year
Ended
12/31/2023 
Six Months
Ended
6/30/2024 
(Unaudited)
Year
Ended
12/31/2023 
OPERATIONS:
Net investment income (loss)
$4,736,069
$14,382,448
$1,074,383
$2,381,995
Net realized gain (loss)
(3,282,953)
49,190,277
(3,070,780)
(19,168,464)
Net change in unrealized appreciation (depreciation)
33,696,489
(65,692,591)
(4,987,052)
1,927,761
Net increase (decrease) in net assets resulting from
operations
35,149,605
(2,119,866)
(6,983,449)
(14,858,708)
 
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment operations
(5,480,855)
(17,277,389)
(1,061,522)
(2,475,883)
 
SHAREHOLDER TRANSACTIONS:
Proceeds from shares sold
13,586,109
 
61,796,633
 
16,124,560
 
31,219,646
 
Cost of shares redeemed
(108,789,391)
 
(454,182,180)
 
(42,750,018)
 
(108,833,123)
 
Net increase (decrease) in net assets resulting from
shareholder transactions
(95,203,282)
(392,385,547)
(26,625,458)
(77,613,477)
Total increase (decrease) in net assets
(65,534,532)
(411,782,802)
(34,670,429)
(94,948,068)
 
NET ASSETS:
Beginning of period
476,360,896
888,143,698
92,191,673
187,139,741
End of period
$410,826,364
$476,360,896
$57,521,244
$92,191,673
 
CHANGES IN SHARES OUTSTANDING:
Shares outstanding, beginning of period
19,598,365
36,248,365
1,850,002
3,550,002
Shares sold
500,000
2,500,000
350,000
650,000
Shares redeemed
(4,450,000)
(19,150,000)
(950,000)
(2,350,000)
Shares outstanding, end of period
15,648,365
19,598,365
1,250,002
1,850,002
See Notes to Financial Statements
Page 28
First Trust Exchange-Traded Fund
Financial Highlights
For a share outstanding throughout each period
First Trust NASDAQ-100 Equal Weighted Index Fund (QQEW)
 
 
Six Months
Ended
6/30/2024 
 (Unaudited)
Year Ended December 31,
 
2023
2022
2021
2020
2019
Net asset value, beginning of period
$117.52
$88.69
$118.42
$100.88
$73.78
$54.61
Income from investment
operations:
Net investment income (loss)
0.42
  (a)
0.85
  (a)
0.60
 
0.28
 
0.34
 
0.36
 
Net realized and unrealized gain
(loss)
5.79
 
28.80
 
(29.74
) 
17.54
 
27.11
 
19.16
 
Total from investment operations
6.21
29.65
(29.14
)
17.82
27.45
19.52
Distributions paid to shareholders
from:
Net investment income
(0.44
) 
(0.82
) 
(0.59
) 
(0.28
) 
(0.35
) 
(0.35
) 
Net asset value, end of period
$123.29
 
$117.52
 
$88.69
 
$118.42
 
$100.88
 
$73.78
 
Total return (b)
5.28
% 
33.51
% 
(24.62
)% 
17.67
% 
37.35
% 
35.78
% 
 
Ratios to average net
assets/supplemental data:
Net assets, end of period (in 000’s)
$2,065,093
 
$2,262,276
 
$1,086,493
 
$1,391,414
 
$1,175,270
 
$907,438
 
Ratio of total expenses to average net
assets
0.55
%  (c)
0.57
% 
0.58
% 
0.57
% 
0.58
% 
0.59
% 
Ratio of net investment income (loss)
to average net assets
0.70
%  (c)
0.82
% 
0.61
% 
0.25
% 
0.41
% 
0.56
% 
Portfolio turnover rate (d)
9
% 
34
% 
33
% 
23
% 
28
% 
29
% 
 
(a)
Based on average shares outstanding.
(b)
Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all
distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not
reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is
calculated for the time period presented and is not annualized for periods of less than a year.
(c)
Annualized.
(d)
Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities
received or delivered from processing creations or redemptions and in-kind transactions.
See Notes to Financial Statements
Page 29
First Trust Exchange-Traded Fund
Financial Highlights (Continued)
For a share outstanding throughout each period
First Trust NASDAQ-100-Technology Sector Index Fund (QTEC)
 
 
Six Months
Ended
6/30/2024 
 (Unaudited)
Year Ended December 31,
 
2023
2022
2021
2020
2019
Net asset value, beginning of
period
$175.54
$105.36
$175.32
$138.14
$100.08
$67.97
Income from investment
operations:
Net investment income (loss)
0.03
  (a)
0.20
  (a)
0.18
 
0.02
 
0.58
 
0.70
 
Net realized and unrealized gain
(loss)
22.01
 
70.22
 
(69.98
) 
37.19
 
38.09
 
32.09
 
Total from investment operations
22.04
70.42
(69.80
)
37.21
38.67
32.79
Distributions paid to
shareholders from:
Net investment income
(0.04
) 
(0.24
) 
(0.16
) 
(0.03
) 
(0.61
) 
(0.68
) 
Net asset value, end of period
$197.54
 
$175.54
 
$105.36
 
$175.32
 
$138.14
 
$100.08
 
Total return (b)
12.56
% 
66.89
% 
(39.81
)% 
26.94
% 
38.82
% 
48.36
% 
 
Ratios to average net
assets/supplemental data:
Net assets, end of period (in 000’s)
$4,108,891
 
$3,493,241
 
$1,359,137
 
$4,049,807
 
$3,349,911
 
$2,912,388
 
Ratio of total expenses to average
net assets
0.54
%  (c)
0.57
% 
0.57
% 
0.56
% 
0.57
% 
0.57
% 
Ratio of net investment income
(loss) to average net assets
0.03
%  (c)
0.14
% 
0.12
% 
0.01
% 
0.50
% 
0.82
% 
Portfolio turnover rate (d)
11
% 
36
% 
28
% 
25
% 
31
% 
23
% 
 
(a)
Based on average shares outstanding.
(b)
Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all
distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not
reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is
calculated for the time period presented and is not annualized for periods of less than a year.
(c)
Annualized.
(d)
Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities
received or delivered from processing creations or redemptions and in-kind transactions.
See Notes to Financial Statements
Page 30
First Trust Exchange-Traded Fund
Financial Highlights (Continued)
For a share outstanding throughout each period
First Trust NASDAQ-100 Ex-Technology Sector Index Fund (QQXT)
 
 
Six Months
Ended
6/30/2024 
 (Unaudited)
Year Ended December 31,
 
2023
2022
2021
2020
2019
Net asset value, beginning of period
$88.19
$76.39
$88.47
$79.43
$58.39
$45.66
Income from investment operations:
Net investment income (loss)
0.52
  (a)
0.96
  (a)
0.66
 
0.35
 
0.22
 
0.20
 
Net realized and unrealized gain (loss)
(0.08
) 
11.81
 
(12.04
) 
9.00
 
21.04
 
12.73
 
Total from investment operations
0.44
12.77
(11.38
)
9.35
21.26
12.93
Distributions paid to shareholders from:
Net investment income
(0.54
) 
(0.97
) 
(0.70
) 
(0.31
) 
(0.22
) 
(0.20
) 
Net asset value, end of period
$88.09
 
$88.19
 
$76.39
 
$88.47
 
$79.43
 
$58.39
 
Total return (b)
0.49
% 
16.77
% 
(12.85
)% 
11.80
% 
36.48
% 
28.35
% 
 
Ratios to average net assets/supplemental
data:
Net assets, end of period (in 000’s)
$132,130
 
$176,390
 
$133,682
 
$137,135
 
$146,938
 
$102,183
 
Ratio of total expenses to average net assets
0.61
%  (c)
0.62
% 
0.63
% 
0.62
% 
0.62
% 
0.64
% 
Ratio of net expenses to average net assets
0.60
%  (c)
0.60
% 
0.60
% 
0.60
% 
0.60
% 
0.60
% 
Ratio of net investment income (loss) to
average net assets
1.17
%  (c)
1.16
% 
0.86
% 
0.40
% 
0.34
% 
0.38
% 
Portfolio turnover rate (d)
12
% 
32
% 
35
% 
25
% 
35
% 
31
% 
 
(a)
Based on average shares outstanding.
(b)
Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all
distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not
reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is
calculated for the time period presented and is not annualized for periods of less than a year. The total returns would have been lower if certain
fees had not been waived and expenses reimbursed by the investment advisor.
(c)
Annualized.
(d)
Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities
received or delivered from processing creations or redemptions and in-kind transactions.
See Notes to Financial Statements
Page 31
First Trust Exchange-Traded Fund
Financial Highlights (Continued)
For a share outstanding throughout each period
First Trust NASDAQ® Clean Edge® Green Energy Index Fund (QCLN)
 
 
Six Months
Ended
6/30/2024 
 (Unaudited)
Year Ended December 31,
 
2023
2022
2021
2020
2019
Net asset value, beginning of period
$42.19
$47.18
$67.96
$70.17
$24.91
$17.63
Income from investment operations:
Net investment income (loss)
0.17
  (a)
0.22
  (a)
0.07
 
(0.13
) 
0.11
 
0.13
 
Net realized and unrealized gain (loss)
(8.13
) 
(4.89
) 
(20.70
) 
(2.07
) 
45.36
 
7.36
 
Total from investment operations
(7.96
)
(4.67
)
(20.63
)
(2.20
)
45.47
7.49
Distributions paid to shareholders
from:
Net investment income
(0.18
) 
(0.32
) 
(0.15
) 
(0.01
) 
(0.21
) 
(0.21
) 
Net asset value, end of period
$34.05
 
$42.19
 
$47.18
 
$67.96
 
$70.17
 
$24.91
 
Total return (b)
(18.87
)% 
(9.98
)% 
(30.37
)% 
(3.14
)% 
183.52
% 
42.69
% 
 
Ratios to average net
assets/supplemental data:
Net assets, end of period (in 000’s)
$692,976
 
$1,139,052
 
$1,573,504
 
$2,823,661
 
$1,999,803
 
$144,467
 
Ratio of total expenses to average net
assets
0.56
%  (c)
0.59
% 
0.58
% 
0.58
% 
0.60
% 
0.63
% 
Ratio of net expenses to average net
assets
0.56
%  (c)
0.59
% 
0.58
% 
0.58
% 
0.60
% 
0.60
% 
Ratio of net investment income (loss)
to average net assets
0.98
%  (c)
0.48
% 
0.10
% 
(0.24
)% 
0.04
% 
0.58
% 
Portfolio turnover rate (d)
13
% 
17
% 
36
% 
28
% 
43
% 
26
% 
 
(a)
Based on average shares outstanding.
(b)
Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all
distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not
reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is
calculated for the time period presented and is not annualized for periods of less than a year. The total returns would have been lower if certain
fees had not been waived and expenses reimbursed by the investment advisor.
(c)
Annualized.
(d)
Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities
received or delivered from processing creations or redemptions and in-kind transactions.
See Notes to Financial Statements
Page 32
First Trust Exchange-Traded Fund
Financial Highlights (Continued)
For a share outstanding throughout each period
First Trust S&P REIT Index Fund (FRI)
 
 
Six Months
Ended
6/30/2024 
 (Unaudited)
Year Ended December 31,
 
2023
2022
2021
2020
2019
Net asset value, beginning of period
$26.22
$23.98
$32.59
$23.23
$26.14
$21.63
Income from investment operations:
Net investment income (loss)
0.45
  (a)
0.83
  (a)
0.53
 
0.50
 
0.52
 
0.56
 
Net realized and unrealized gain (loss)
(0.61
) 
2.26
 
(8.54
) 
9.33
 
(2.72
) 
4.55
 
Total from investment operations
(0.16
)
3.09
(8.01
)
9.83
(2.20
)
5.11
Distributions paid to shareholders from:
Net investment income
(0.38
) 
(0.85
) 
(0.60
) 
(0.47
) 
(0.71
) 
(0.60
) 
Net asset value, end of period
$25.68
 
$26.22
 
$23.98
 
$32.59
 
$23.23
 
$26.14
 
Total return (b)
(0.62
)% 
13.10
% 
(24.63
)% 
42.52
% 
(8.10
)% 
23.67
% 
 
Ratios to average net assets/supplemental
data:
Net assets, end of period (in 000’s)
$116,840
 
$123,213
 
$133,098
 
$236,309
 
$74,344
 
$198,642
 
Ratio of total expenses to average net assets
0.49
%  (c)
0.53
% 
0.50
% 
0.51
% 
0.52
% 
0.51
% 
Ratio of net expenses to average net assets
0.49
%  (c)
0.50
% 
0.50
% 
0.50
% 
0.50
% 
0.50
% 
Ratio of net investment income (loss) to
average net assets
3.56
%  (c)
3.40
% 
1.84
% 
2.04
% 
2.04
% 
2.40
% 
Portfolio turnover rate (d)
3
% 
6
% 
8
% 
6
% 
6
% 
10
% 
 
(a)
Based on average shares outstanding.
(b)
Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all
distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not
reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is
calculated for the time period presented and is not annualized for periods of less than a year. The total returns would have been lower if certain
fees had not been waived and expenses reimbursed by the investment advisor.
(c)
Annualized.
(d)
Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities
received or delivered from processing creations or redemptions and in-kind transactions.
See Notes to Financial Statements
Page 33
First Trust Exchange-Traded Fund
Financial Highlights (Continued)
For a share outstanding throughout each period
First Trust Water ETF (FIW)
 
 
Six Months
Ended
6/30/2024 
 (Unaudited)
Year Ended December 31,
 
2023
2022
2021
2020
2019
Net asset value, beginning of period
$94.83
$79.35
$94.74
$72.13
$59.91
$43.96
Income from investment operations:
Net investment income (loss)
0.34
  (a)
0.63
  (a)
0.53
 
0.36
 
0.38
 
0.32
 
Net realized and unrealized gain (loss)
4.97
 
15.50
 
(15.39
) 
22.60
 
12.24
 
15.96
 
Total from investment operations
5.31
16.13
(14.86
)
22.96
12.62
16.28
Distributions paid to shareholders
from:
Net investment income
(0.29
) 
(0.65
) 
(0.53
) 
(0.35
) 
(0.40
) 
(0.33
) 
Net asset value, end of period
$99.85
 
$94.83
 
$79.35
 
$94.74
 
$72.13
 
$59.91
 
Total return (b)
5.59
% 
20.39
% 
(15.65
)% 
31.89
% 
21.20
% 
37.11
% 
 
Ratios to average net
assets/supplemental data:
Net assets, end of period (in 000’s)
$1,667,565
 
$1,517,255
 
$1,249,781
 
$1,605,791
 
$688,794
 
$536,168
 
Ratio of total expenses to average net
assets
0.51
%  (c)
0.53
% 
0.53
% 
0.53
% 
0.54
% 
0.55
% 
Ratio of net investment income (loss)
to average net assets
0.69
%  (c)
0.74
% 
0.66
% 
0.47
% 
0.66
% 
0.61
% 
Portfolio turnover rate (d)
10
% 
17
% 
13
% 
15
% 
15
% 
12
% 
 
(a)
Based on average shares outstanding.
(b)
Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all
distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not
reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is
calculated for the time period presented and is not annualized for periods of less than a year.
(c)
Annualized.
(d)
Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities
received or delivered from processing creations or redemptions and in-kind transactions.
See Notes to Financial Statements
Page 34
First Trust Exchange-Traded Fund
Financial Highlights (Continued)
For a share outstanding throughout each period
First Trust Natural Gas ETF (FCG)
 
 
Six Months
Ended
6/30/2024 
 (Unaudited)
Year Ended December 31,
 
2023
2022
2021
2020
2019
Net asset value, beginning of period
$24.31
$24.50
$17.17
$8.80
$12.05
$14.69
Income from investment operations:
Net investment income (loss)
0.29
  (a)
0.61
  (a)
0.69
 
0.20
 
0.10
 
0.10
 
Net realized and unrealized gain (loss)
2.00
 
(0.01
) 
7.38
 
8.47
 
(3.01
) 
(2.39
) 
Total from investment operations
2.29
0.60
8.07
8.67
(2.91
)
(2.29
)
Distributions paid to shareholders from:
Net investment income
(0.35
) 
(0.79
) 
(0.74
) 
(0.30
) 
—
 
(0.11
) 
Return of capital
—
 
—
 
—
 
—
 
(0.34
) 
(0.24
) 
Total distributions
(0.35
) 
(0.79
) 
(0.74
) 
(0.30
) 
(0.34
) 
(0.35
) 
Net asset value, end of period
$26.25
 
$24.31
 
$24.50
 
$17.17
 
$8.80
 
$12.05
 
Total return (b)
9.41
% 
2.55
% 
47.27
% 
98.69
% 
(23.22
)% 
(15.87
)% 
 
Ratios to average net assets/supplemental
data:
Net assets, end of period (in 000’s)
$410,826
 
$476,361
 
$888,144
 
$423,225
 
$103,429
 
$95,209
 
Ratio of total expenses to average net assets
0.58
%  (c)
0.60
% 
0.60
% 
0.62
%  (d)
0.67
% 
0.65
% 
Ratio of net expenses to average net assets
0.58
%  (c)
0.60
% 
0.60
% 
0.61
%  (d)
0.60
% 
0.60
% 
Ratio of net investment income (loss) to
average net assets
2.24
%  (c)
2.51
% 
2.82
% 
1.41
% 
1.48
% 
0.65
% 
Portfolio turnover rate (e)
25
% 
27
% 
39
% 
42
% 
103
% 
61
% 
 
(a)
Based on average shares outstanding.
(b)
Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all
distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not
reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is
calculated for the time period presented and is not annualized for periods of less than a year. The total returns would have been lower if certain
fees had not been waived and expenses reimbursed by the investment advisor.
(c)
Annualized.
(d)
For the year ended December 31, 2021, ratio reflects excise tax of 0.01%, which is not included in the expense cap.
(e)
Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities
received or delivered from processing creations or redemptions and in-kind transactions.
See Notes to Financial Statements
Page 35
First Trust Exchange-Traded Fund
Financial Highlights (Continued)
For a share outstanding throughout each period
First Trust NASDAQ® ABA Community Bank Index Fund (QABA)
 
 
Six Months
Ended
6/30/2024 
 (Unaudited)
Year Ended December 31,
 
2023
2022
2021
2020
2019
Net asset value, beginning of period
$49.83
$52.72
$58.97
$44.75
$51.91
$43.16
Income from investment operations:
Net investment income (loss)
0.62
  (a)
1.19
  (a)
1.10
 
1.01
 
1.11
 
1.04
 
Net realized and unrealized gain (loss)
(3.72
) 
(2.73
) 
(6.24
) 
14.20
 
(7.13
) 
8.72
 
Total from investment operations
(3.10
)
(1.54
)
(5.14
)
15.21
(6.02
)
9.76
Distributions paid to shareholders from:
Net investment income
(0.71
) 
(1.35
) 
(1.11
) 
(0.99
) 
(1.14
) 
(1.01
) 
Net asset value, end of period
$46.02
 
$49.83
 
$52.72
 
$58.97
 
$44.75
 
$51.91
 
Total return (b)
(6.23
)% 
(2.44
)% 
(8.70
)% 
34.08
% 
(11.00
)% 
22.80
% 
 
Ratios to average net assets/supplemental
data:
Net assets, end of period (in 000’s)
$57,521
 
$92,192
 
$187,140
 
$117,947
 
$85,020
 
$142,752
 
Ratio of total expenses to average net assets
0.65
%  (c)
0.67
% 
0.62
% 
0.63
% 
0.64
% 
0.60
% 
Ratio of net expenses to average net assets
0.60
%  (c)
0.60
% 
0.60
% 
0.60
% 
0.60
% 
0.60
% 
Ratio of net investment income (loss) to average
net assets
2.73
%  (c)
2.61
% 
2.11
% 
1.82
% 
2.75
% 
1.98
% 
Portfolio turnover rate (d)
3
% 
24
% 
18
% 
23
% 
14
% 
15
% 
 
(a)
Based on average shares outstanding.
(b)
Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all
distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not
reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is
calculated for the time period presented and is not annualized for periods of less than a year. The total returns would have been lower if certain
fees had not been waived and expenses reimbursed by the investment advisor.
(c)
Annualized.
(d)
Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities
received or delivered from processing creations or redemptions and in-kind transactions.
See Notes to Financial Statements
Page 36
Notes to Financial Statements
First Trust Exchange-Traded Fund
June 30, 2024 (Unaudited)
1. Organization
First Trust Exchange-Traded Fund (the “Trust”) is an open-end management investment company organized as a Massachusetts business trust on August 8, 2003, and is registered with the Securities and Exchange Commission under the Investment Company Act of 1940, as amended (the “1940 Act”).
This report covers the eight funds (each a “Fund” and collectively, the “Funds”) listed below:
 
First Trust NASDAQ-100 Equal Weighted Index Fund – (Nasdaq, Inc. (“Nasdaq”) ticker “QQEW”)
First Trust NASDAQ-100-Technology Sector Index Fund – (Nasdaq ticker “QTEC”)
First Trust NASDAQ-100 Ex-Technology Sector Index Fund – (Nasdaq ticker “QQXT”)
First Trust NASDAQ® Clean Edge® Green Energy Index Fund – (Nasdaq ticker “QCLN”)
First Trust S&P REIT Index Fund – (NYSE Arca, Inc. (“NYSE Arca”) ticker “FRI”)
First Trust Water ETF – (NYSE Arca ticker “FIW”)
First Trust Natural Gas ETF – (NYSE Arca ticker “FCG”)
First Trust NASDAQ® ABA Community Bank Index Fund – (Nasdaq ticker “QABA”)
QCLN operates as a non-diversified series of the Trust. Each of QQEW, QTEC, QQXT, FRI, FIW, FCG and QABA operates as a diversified open-end management investment company as defined in Section 5(b) of the 1940 Act. Each Fund represents a separate series of shares of beneficial interest in the Trust. Unlike conventional mutual funds, each Fund issues and redeems shares on a continuous basis at net asset value (“NAV”), only in large blocks of shares known as “Creation Units.” The investment objective of each Fund is to seek investment results that correspond generally to the price and yield (before the Fund’s fees and expenses) of the following indices:
 
Fund
Index
First Trust NASDAQ-100 Equal Weighted Index Fund
Nasdaq-100 Equal WeightedTM Index
First Trust NASDAQ-100-Technology Sector Index Fund
Nasdaq-100 Technology SectorTM Index
First Trust NASDAQ-100 Ex-Technology Sector Index Fund
Nasdaq-100 Ex-Tech SectorTM Index
First Trust NASDAQ® Clean Edge® Green Energy Index Fund
Nasdaq® Clean Edge® Green EnergyTM Index
First Trust S&P REIT Index Fund
S&P United States REIT Index
First Trust Water ETF
ISE Clean Edge WaterTM Index
First Trust Natural Gas ETF
ISE-Revere Natural GasTM Index
First Trust NASDAQ® ABA Community Bank Index Fund
Nasdaq OMX® ABA Community BankTM Index
2. Significant Accounting Policies
The Funds are each considered an investment company and follow accounting and reporting guidance under Financial Accounting Standards Board Accounting Standards Codification Topic 946, “Financial Services-Investment Companies.” The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of the financial statements. The preparation of the financial statements in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.
A. Portfolio Valuation
Each Fund’s NAV is determined daily as of the close of regular trading on the New York Stock Exchange (“NYSE”), normally 4:00 p.m. Eastern time, on each day the NYSE is open for trading. If the NYSE closes early on a valuation day, the NAV is determined as of that time. Each Fund’s NAV is calculated by dividing the value of all assets of each Fund (including accrued interest and dividends), less all liabilities (including accrued expenses and dividends declared but unpaid), by the total number of shares outstanding.
Each Fund’s investments are valued daily at market value or, in the absence of market value with respect to any portfolio securities, at fair value. Market value prices represent readily available market quotations such as last sale or official closing prices from a national or foreign exchange (i.e., a regulated market) and are primarily obtained from third-party pricing services. Fair value prices represent any prices not considered market value prices and are either obtained from a third-party pricing service or are determined by the Pricing Committee of the Funds’ investment advisor, First Trust Advisors L.P. (“First Trust” or the “Advisor”), in accordance with valuation procedures approved by the Trust’s Board of Trustees, and in accordance with provisions of the 1940 Act and rules
Page 37
Notes to Financial Statements (Continued)
First Trust Exchange-Traded Fund
June 30, 2024 (Unaudited)
thereunder. Investments valued by the Advisor’s Pricing Committee, if any, are footnoted as such in the footnotes to the Portfolio of Investments. Each Fund’s investments are valued as follows:
Common stocks, real estate investment trusts (“REITs”), master limited partnerships (“MLPs”) and other equity securities listed on any national or foreign exchange (excluding Nasdaq and the London Stock Exchange Alternative Investment Market (“AIM”)) are valued at the last sale price on the exchange on which they are principally traded or, for Nasdaq and AIM securities, the official closing price. Securities traded on more than one securities exchange are valued at the last sale price or official closing price, as applicable, at the close of the securities exchange representing the primary exchange for such securities.
Shares of open-end funds are valued based on NAV per share.
Equity securities traded in an over-the-counter market are valued at the close price or the last trade price.
Overnight repurchase agreements are valued at amortized cost when it represents the most appropriate reflection of fair market value.
Certain securities may not be able to be priced by pre-established pricing methods. Such securities may be valued by the Advisor’s Pricing Committee at fair value. These securities generally include, but are not limited to, restricted securities (securities which may not be publicly sold without registration under the Securities Act of 1933, as amended) for which a third-party pricing service is unable to provide a market price; securities whose trading has been formally suspended; a security whose market or fair value price is not available from a pre-established pricing source; a security with respect to which an event has occurred that is likely to materially affect the value of the security after the market has closed but before the calculation of a Fund’s NAV or make it difficult or impossible to obtain a reliable market quotation; and a security whose price, as provided by the third-party pricing service, does not reflect the security’s fair value. As a general principle, the current fair value of a security would appear to be the amount which the owner might reasonably expect to receive for the security upon its current sale. When fair value prices are used, generally they will differ from market quotations or official closing prices on the applicable exchanges. A variety of factors may be considered in determining the fair value of such securities, including, but not limited to, the following:
 1)
the last sale price on the exchange on which they are principally traded or, for Nasdaq and AIM securities, the official closing price;
 2)
the type of security;
 3)
the size of the holding;
 4)
the initial cost of the security;
 5)
transactions in comparable securities;
 6)
price quotes from dealers and/or third-party pricing services;
 7)
relationships among various securities;
 8)
information obtained by contacting the issuer, analysts, or the appropriate stock exchange;
 9)
an analysis of the issuer’s financial statements;
10)
the existence of merger proposals or tender offers that might affect the value of the security; and
11)
other relevant factors.
In addition, differences between the prices used to calculate a Fund’s NAV and the prices used by such Fund’s corresponding index could result in a difference between a Fund’s performance and the performance of its underlying index.
The Funds are subject to fair value accounting standards that define fair value, establish the framework for measuring fair value and provide a three-level hierarchy for fair valuation based upon the inputs to the valuation as of the measurement date. The three levels of the fair value hierarchy are as follows:
•  Level 1 – Level 1 inputs are quoted prices in active markets for identical investments. An active market is a market in which transactions for the investment occur with sufficient frequency and volume to provide pricing information on an ongoing basis.
•  Level 2 – Level 2 inputs are observable inputs, either directly or indirectly, and include the following:
o  Quoted prices for similar investments in active markets.
o  Quoted prices for identical or similar investments in markets that are non-active. A non-active market is a market where there are few transactions for the investment, the prices are not current, or price quotations vary substantially either over time or among market makers, or in which little information is released publicly.
Page 38
Notes to Financial Statements (Continued)
First Trust Exchange-Traded Fund
June 30, 2024 (Unaudited)
o  Inputs other than quoted prices that are observable for the investment (for example, interest rates and yield curves observable at commonly quoted intervals, volatilities, prepayment speeds, loss severities, credit risks, and default rates).
o  Inputs that are derived principally from or corroborated by observable market data by correlation or other means.
•  Level 3 – Level 3 inputs are unobservable inputs. Unobservable inputs may reflect the reporting entity’s own assumptions about the assumptions that market participants would use in pricing the investment.
The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in those investments. A summary of the inputs used to value each Fund’s investments as of June 30, 2024, is included with each Fund’s Portfolio of Investments.
B. Securities Transactions and Investment Income
Securities transactions are recorded as of the trade date. Realized gains and losses from securities transactions are recorded on the identified cost basis. Dividend income is recorded on the ex-dividend date. Interest income, if any, is recorded on the accrual basis.
Withholding taxes and tax reclaims on foreign dividends have been provided for in accordance with each Fund’s understanding of the applicable country’s tax rules and rates.
Distributions received from a Fund’s investments in MLPs generally are comprised of return of capital and investment income. A Fund records estimated return of capital and investment income based on historical information available from each MLP. These estimates may subsequently be revised based on information received from the MLPs after their tax reporting periods are concluded.
Distributions received from a Fund’s investments in REITs may be comprised of return of capital, capital gains, and income. The actual character of the amounts received during the year are not known until after the REITs’ fiscal year end. A Fund records the character of distributions received from the REITs during the year based on estimates available. The characterization of distributions received by a Fund may be subsequently revised based on information received from the REITs after their tax reporting periods conclude.
C. Offsetting on the Statements of Assets and Liabilities
Offsetting assets and liabilities requires entities to disclose both gross and net information about instruments and transactions eligible for offset on the Statements of Assets and Liabilities and disclose instruments and transactions subject to master netting or similar agreements. These disclosure requirements are intended to help investors and other financial statement users better assess the effect or potential effect of offsetting arrangements on a Fund’s financial position. The transactions subject to offsetting disclosures are derivative instruments, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions.
This disclosure, if applicable, is included within each Fund’s Portfolio of Investments under the heading “Offsetting Assets and Liabilities.” For financial reporting purposes, the Funds do not offset financial assets and financial liabilities that are subject to master netting arrangements (“MNAs”) or similar agreements on the Statements of Assets and Liabilities. MNAs provide the right, in the event of default (including bankruptcy and insolvency), for the non-defaulting counterparty to liquidate the collateral and calculate the net exposure to the defaulting party or request additional collateral.
D. Securities Lending
The Funds may lend securities representing up to 33 1/3% of the value of their total assets to broker-dealers, banks and other institutions to generate additional income. When a Fund loans its portfolio securities, it will receive, at the inception of each loan, collateral equal to at least 102% (for domestic securities) or 105% (for international securities) of the market value of the loaned securities. The collateral amount is valued at the beginning of each business day and is compared to the market value of the loaned securities from the prior business day to determine if additional collateral is required. If additional collateral is required, a request is sent to the borrower. Securities lending involves the risk that the Fund may lose money because the borrower of the Fund’s loaned securities fails to return the securities in a timely manner or at all. The Fund could also lose money in the event of (i) a decline in the value of the collateral provided for the loaned securities, (ii) a decline in the value of any investments made with cash collateral or (iii) an increase in the value of the loaned securities if the borrower does not increase the collateral accordingly and the borrower fails to return the securities. These events could also trigger adverse tax consequences for the Funds.
Under the Funds’ Securities Lending Agency Agreement, the securities lending agent will generally bear the risk that a borrower may default on its obligation to return loaned securities. Brown Brothers Harriman & Co. (“BBH”) acts as the Funds’ securities lending
Page 39
Notes to Financial Statements (Continued)
First Trust Exchange-Traded Fund
June 30, 2024 (Unaudited)
agent and is responsible for executing the lending of the portfolio securities to creditworthy borrowers with the exception of FIW, FCG, and QABA. Prior to June 10, 2024, FIW, FCG, and QABA’s securities agent was BBH. Effective June 10, 2024, the Bank of New York Mellon (“BNY”) acts as FIW, FCG, and QABA’s securities lending agent and is responsible for executing the lending of the portfolio securities to creditworthy borrowers. The Funds, however, will be responsible for the risks associated with the investment of cash collateral. A Fund may lose money on its investment of cash collateral, which may affect its ability to repay the collateral to the borrower without the use of other Fund assets. Each Fund that engages in securities lending receives compensation (net of any rebate and securities lending agent fees) for lending its securities. Compensation can be in the form of fees received from the securities lending agent or dividends or interest earned from the investment of cash collateral. The fees received from the securities lending agent are accrued daily. The dividend and interest earned on the securities loaned is accounted for in the same manner as other dividend and interest income. At June 30, 2024, QQEW, QTEC, QQXT, QCLN, FIW, and QABA had securities in the securities lending program. During the six months ended June 30, 2024, all the Funds, except FRI, participated in the securities lending program.
In the event of a default by a borrower with respect to any loan, BBH or BNY will exercise any and all remedies provided under the applicable borrower agreement to make the Funds whole. These remedies include purchasing replacement securities by applying the collateral held from the defaulting broker against the purchase cost of the replacement securities. If, despite such efforts by BBH and BNY to exercise these remedies, a Fund sustains losses as a result of a borrower’s default, BBH or BNY will indemnify the Fund by purchasing replacement securities at its own expense, or paying the Fund an amount equal to the market value of the replacement securities, subject to certain limitations which are set forth in detail in the Securities Lending Agency Agreement between the Trust on behalf of the Funds and BBH or BNY.
E. Repurchase Agreements
Repurchase agreements involve the purchase of securities subject to the seller’s agreement to repurchase the securities at a mutually agreed upon date and price, under the terms of a Master Repurchase Agreement (“MRA”). During the term of a repurchase agreement, the value of the underlying securities held as collateral on behalf of a Fund, including accrued interest, is required to exceed the value of the repurchase agreement, including accrued interest. The underlying securities for all repurchase agreements are held at the Funds’ custodian or designated sub-custodians under tri-party repurchase agreements.
MRAs govern transactions between a Fund and select counterparties. The MRAs contain provisions for, among other things, initiation, income payments, events of default, and maintenance of collateral for repurchase agreements.
Repurchase agreements received for lending securities are collateralized by U.S. Treasury securities. The U.S. Treasury securities are held in a joint custody account at BBH or BNY on behalf of the Funds participating in the securities lending program. In the event the counterparty defaults on the repurchase agreement, the U.S. Treasury securities can either be maintained as part of a Fund’s portfolio or sold for cash. A Fund could suffer a loss to the extent that the proceeds from the sale of the underlying collateral held by the Fund are less than the repurchase price and the Fund’s costs associated with the delay and enforcement of the MRA.
While the Funds may invest in repurchase agreements, any repurchase agreements held by the Funds during the six months ended June 30, 2024, were received as collateral for lending securities.
F. Dividends and Distributions to Shareholders
Dividends from net investment income of each Fund, if any, are declared and paid quarterly, or as the Board of Trustees may determine from time to time. Distributions of net realized capital gains earned by each Fund, if any, are distributed at least annually. Each Fund may also designate a portion of the amount paid to redeeming shareholders as a distribution for tax purposes.
Distributions from net investment income and realized capital gains are determined in accordance with federal income tax regulations, which may differ from U.S. GAAP. Certain capital accounts in the financial statements are periodically adjusted for permanent differences in order to reflect their tax character. These permanent differences are primarily due to the varying treatment of income and gain/loss on portfolio securities held by the Funds and have no impact on net assets or NAV per share. Temporary differences, which arise from recognizing certain items of income, expense and gain/loss in different periods for financial statement and tax purposes, will reverse at some time in the future.
Page 40
Notes to Financial Statements (Continued)
First Trust Exchange-Traded Fund
June 30, 2024 (Unaudited)
The tax character of distributions paid by each Fund during the fiscal year ended December 31, 2023 was as follows:
 
 
Distributions
paid from
Ordinary
Income
Distributions
paid from
Capital
Gains
Distributions
paid from
Return of
Capital
First Trust NASDAQ-100 Equal Weighted Index Fund
$14,296,112
$—
$—
First Trust NASDAQ-100-Technology Sector Index Fund
3,468,140
—
—
First Trust NASDAQ-100 Ex-Technology Sector Index Fund
1,980,762
—
—
First Trust NASDAQ® Clean Edge® Green Energy Index Fund
9,544,615
—
—
First Trust S&P REIT Index Fund
4,123,107
—
—
First Trust Water ETF
10,284,831
—
—
First Trust Natural Gas ETF
17,277,389
—
—
First Trust NASDAQ® ABA Community Bank Index Fund
2,475,883
—
—
As of December 31, 2023, the components of distributable earnings on a tax basis for each Fund were as follows:
 
 
Undistributed
Ordinary
Income
Accumulated
Capital and
Other
Gain (Loss)
Net
Unrealized
Appreciation
(Depreciation)
First Trust NASDAQ-100 Equal Weighted Index Fund
$—
$(163,540,102
)
$406,421,381
First Trust NASDAQ-100-Technology Sector Index Fund
—
(453,846,896
)
636,244,430
First Trust NASDAQ-100 Ex-Technology Sector Index Fund
—
(21,074,113
)
21,875,881
First Trust NASDAQ® Clean Edge® Green Energy Index Fund
—
(425,003,827
)
(625,149,969
)
First Trust S&P REIT Index Fund
55,122
(691,561
)
(28,906,760
)
First Trust Water ETF
—
(54,205,045
)
229,844,104
First Trust Natural Gas ETF
—
(530,260,707
)
(50,976,440
)
First Trust NASDAQ® ABA Community Bank Index Fund
—
(20,605,691
)
(11,509,652
)
G. Income Taxes
Each Fund intends to continue to qualify as a regulated investment company by complying with the requirements under Subchapter M of the Internal Revenue Code of 1986, as amended, which includes distributing substantially all of its net investment income and net realized gains to shareholders. Accordingly, no provision has been made for federal and state income taxes. However, due to the timing and amount of distributions, each Fund may be subject to an excise tax of 4% of the amount by which approximately 98% of each Fund’s taxable income exceeds the distributions from such taxable income for the calendar year.
The Funds are subject to accounting standards that establish a minimum threshold for recognizing, and a system for measuring, the benefits of a tax position taken or expected to be taken in a tax return. The taxable years ended 2020, 2021, 2022, and 2023 remain open to federal and state audit. As of June 30, 2024, management has evaluated the application of these standards to the Funds and has determined that no provision for income tax is required in the Funds’ financial statements for uncertain tax positions.
Each Fund intends to utilize provisions of the federal income tax laws, which allow it to carry a realized capital loss forward indefinitely following the year of the loss and offset such loss against any future realized capital gains. Each Fund is subject to certain limitations under U.S. tax rules on the use of capital loss carryforwards and net unrealized built-in losses. These limitations apply when there has been a 50% change in ownership. At December 31, 2023, for federal income tax purposes, each applicable Fund had a capital loss carryforward available that is shown in the following table, to the extent provided by regulations, to offset future capital gains. To the extent that these loss carryforwards are used to offset future capital gains, it is probable that the capital gains so offset will not be distributed to each applicable Fund’s shareholders.
 
 
Non-Expiring
Capital Loss
Carryforwards
First Trust NASDAQ-100 Equal Weighted Index Fund
$163,540,102
First Trust NASDAQ-100-Technology Sector Index Fund
453,846,896
Page 41
Notes to Financial Statements (Continued)
First Trust Exchange-Traded Fund
June 30, 2024 (Unaudited)
 
Non-Expiring
Capital Loss
Carryforwards
First Trust NASDAQ-100 Ex-Technology Sector Index Fund
$21,074,113
First Trust NASDAQ® Clean Edge® Green Energy Index Fund
425,003,827
First Trust S&P REIT Index Fund
691,561
First Trust Water ETF
54,205,045
First Trust Natural Gas ETF
530,260,707
First Trust NASDAQ® ABA Community Bank Index Fund
20,605,691
Certain losses realized during the current fiscal year may be deferred and treated as occurring on the first day of the following fiscal year for federal income tax purposes. For the fiscal year ended December 31, 2023, the Funds had no net late year ordinary or capital losses.
As of June 30, 2024, the aggregate cost, gross unrealized appreciation, gross unrealized depreciation, and net unrealized appreciation/(depreciation) on investments (including short positions and derivatives, if any) for federal income tax purposes were as follows:
 
 
Tax Cost
Gross
Unrealized
Appreciation
Gross
Unrealized
(Depreciation)
Net Unrealized
Appreciation
(Depreciation)
First Trust NASDAQ-100 Equal Weighted Index Fund
$1,784,043,204
$391,269,149
$(102,575,891
)
$288,693,258
First Trust NASDAQ-100-Technology Sector Index Fund
3,421,558,026
870,625,449
(124,159,155
)
746,466,294
First Trust NASDAQ-100 Ex-Technology Sector Index
Fund
121,324,162
21,537,273
(10,639,413
)
10,897,860
First Trust NASDAQ® Clean Edge® Green Energy Index
Fund
1,371,171,414
75,134,140
(675,072,923
)
(599,938,783
)
First Trust S&P REIT Index Fund
144,715,432
3,269,140
(31,492,264
)
(28,223,124
)
First Trust Water ETF
1,407,401,024
324,757,648
(34,888,457
)
289,869,191
First Trust Natural Gas ETF
405,816,582
31,488,155
(26,458,822
)
5,029,333
First Trust NASDAQ® ABA Community Bank Index
Fund
73,438,453
379,306
(16,297,654
)
(15,918,348
)
H. Expenses
Expenses that are directly related to one of the Funds are charged directly to the respective Fund. General expenses of the Trust are allocated to all the Funds based upon the net assets of each Fund.
First Trust has entered into licensing agreements with each of the following “Licensors” for the respective Funds:
 
Fund
Licensor
First Trust NASDAQ-100 Equal Weighted Index Fund
Nasdaq, Inc.
First Trust NASDAQ-100-Technology Sector Index Fund
Nasdaq, Inc.
First Trust NASDAQ-100 Ex-Technology Sector Index Fund
Nasdaq, Inc.
First Trust NASDAQ® Clean Edge® Green Energy Index Fund
Nasdaq, Inc. and Clean Edge®
First Trust S&P REIT Index Fund
S&P Dow Jones Indices LLC
First Trust Water ETF
Nasdaq, Inc.
First Trust Natural Gas ETF
Nasdaq, Inc.
First Trust NASDAQ® ABA Community Bank Index Fund
Nasdaq, Inc. and American Bankers Association
The respective license agreements allow for the use by First Trust of certain trademarks and trade names of the respective Licensors. The Funds are sub-licensees to the applicable license agreement. The respective Funds are required to pay licensing fees, which are shown on the Statements of Operations.
Page 42
Notes to Financial Statements (Continued)
First Trust Exchange-Traded Fund
June 30, 2024 (Unaudited)
3. Investment Advisory Fee, Affiliated Transactions and Other Fee Arrangements
First Trust, the investment advisor to the Funds, is a limited partnership with one limited partner, Grace Partners of DuPage L.P., and one general partner, The Charger Corporation. The Charger Corporation is an Illinois corporation controlled by James A. Bowen, Chief Executive Officer of First Trust. First Trust is responsible for the selection and ongoing monitoring of the securities in each Fund’s portfolio, managing the Funds’ business affairs and providing certain administrative services necessary for the management of the Funds.
The management fee payable by each Fund to First Trust for these services will be reduced at certain levels of each Fund’s net assets (“breakpoints”) and calculated pursuant to the following schedule:
 
Breakpoints
QQEW
QTEC
QQXT
QCLN
FRI
FIW
FCG
QABA
Fund net assets up to and including $2.5 billion
0.40
%
0.40
%
0.40
%
0.40
%
0.3000
%
0.40
%
0.40
%
0.40
%
Fund net assets greater than $2.5 billion up to and
including $5 billion
0.39
%
0.39
%
0.39
%
0.39
%
0.2925
%
0.39
%
0.39
%
0.39
%
Fund net assets greater than $5 billion up to and
including $7.5 billion
0.38
%
0.38
%
0.38
%
0.38
%
0.2850
%
0.38
%
0.38
%
0.38
%
Fund net assets greater than $7.5 billion up to and
including $10 billion
0.37
%
0.37
%
0.37
%
0.37
%
0.2775
%
0.37
%
0.37
%
0.37
%
Fund net assets greater than $10 billion up to and
including $15 billion
0.36
%
0.36
%
0.36
%
0.36
%
0.2700
%
0.36
%
0.36
%
0.36
%
Fund net assets greater than $15 billion
0.34
%
0.34
%
0.34
%
0.34
%
0.2550
%
0.34
%
0.34
%
0.34
%
The Trust and the Advisor have entered into an Expense Reimbursement and Fee Waiver Agreement (“Agreement”) in which First Trust has agreed to waive fees and/or reimburse Fund expenses to the extent that the operating expenses of each Fund (excluding interest expense, brokerage commissions and other trading expenses, acquired fund fees and expenses, taxes and extraordinary expenses) exceed the following amount as a percentage of average daily net assets per year (the “Expense Cap”). The Expense Cap will be in effect until at least April 30, 2025.
 
 
Expense Cap
First Trust NASDAQ-100 Equal Weighted Index Fund
0.60
%
First Trust NASDAQ-100-Technology Sector Index Fund
0.60
%
First Trust NASDAQ-100 Ex-Technology Sector Index Fund
0.60
%
First Trust NASDAQ® Clean Edge® Green Energy Index Fund
0.60
%
First Trust S&P REIT Index Fund
0.50
%
First Trust Water ETF
0.60
%
First Trust Natural Gas ETF
0.60
%
First Trust NASDAQ® ABA Community Bank Index Fund
0.60
%
The Trust has multiple service agreements with BNY. Under the service agreements, BNY performs custodial, fund accounting, certain administrative services, and transfer agency services for each Fund. As custodian, BNY is responsible for custody of each Fund’s assets. As fund accountant and administrator, BNY is responsible for maintaining the books and records of each Fund’s securities and cash. As transfer agent, BNY is responsible for maintaining shareholder records for each Fund. BNY is a subsidiary of The Bank of New York Mellon Corporation, a financial holding company.
Each Trustee who is not an officer or employee of First Trust, any sub-advisor or any of their affiliates (“Independent Trustees”) is paid a fixed annual retainer that is allocated equally among each fund in the First Trust Fund Complex. Each Independent Trustee is also paid an annual per fund fee that varies based on whether the fund is a closed-end or other actively managed fund, a target outcome fund or an index fund.
Additionally, the Chairs of the Audit Committee, Nominating and Governance Committee and Valuation Committee, the Vice Chair of the Audit Committee, the Lead Independent Trustee and the Vice Lead Independent Trustee are paid annual fees to serve in such capacities, with such compensation allocated pro rata among each fund in the First Trust Fund Complex based on net assets. Independent Trustees are reimbursed for travel and out-of-pocket expenses in connection with all meetings. The Committee Chairs, the Audit Committee Vice Chair, the Lead Independent Trustee and the Vice Lead Independent Trustee rotate periodically in serving in such capacities. The officers and “Interested” Trustee receive no compensation from the Trust for acting in such capacities.
Page 43
Notes to Financial Statements (Continued)
First Trust Exchange-Traded Fund
June 30, 2024 (Unaudited)
4. Purchases and Sales of Securities
For the six months ended June 30, 2024, the cost of purchases and proceeds from sales of investments for each Fund, excluding short-term investments and in-kind transactions, were as follows:
 
 
Purchases
Sales
First Trust NASDAQ-100 Equal Weighted Index Fund
$192,466,435
$191,764,322
First Trust NASDAQ-100-Technology Sector Index Fund
411,094,671
413,785,835
First Trust NASDAQ-100 Ex-Technology Sector Index Fund
17,646,753
17,460,361
First Trust NASDAQ® Clean Edge® Green Energy Index Fund
107,243,170
107,076,228
First Trust S&P REIT Index Fund
3,752,102
3,133,231
First Trust Water ETF
154,746,805
155,382,222
First Trust Natural Gas ETF
106,593,522
107,000,557
First Trust NASDAQ® ABA Community Bank Index Fund
2,757,403
2,738,923
For the six months ended June 30, 2024, the cost of in-kind purchases and proceeds from in-kind sales for each Fund were as follows:
 
 
Purchases
Sales
First Trust NASDAQ-100 Equal Weighted Index Fund
$370,562,986
$670,787,187
First Trust NASDAQ-100-Technology Sector Index Fund
965,844,978
796,672,895
First Trust NASDAQ-100 Ex-Technology Sector Index Fund
—
44,212,072
First Trust NASDAQ® Clean Edge® Green Energy Index Fund
15,124,088
246,073,513
First Trust S&P REIT Index Fund
9,027,657
12,459,630
First Trust Water ETF
258,809,047
186,466,228
First Trust Natural Gas ETF
13,548,526
108,639,247
First Trust NASDAQ® ABA Community Bank Index Fund
16,089,819
42,674,854
5. Creations, Redemptions and Transaction Fees
Each Fund generally issues and redeems its shares in primary market transactions through a creation and redemption mechanism and does not sell or redeem individual shares. Instead, financial entities known as “Authorized Participants” have contractual arrangements with a Fund or one of the Fund’s service providers to purchase and redeem Fund shares directly with the Fund in Creation Units. Prior to the start of trading on every business day, a Fund publishes through the National Securities Clearing Corporation the “basket” of securities, cash or other assets that it will accept in exchange for a Creation Unit of the Fund’s shares. An Authorized Participant that wishes to effectuate a creation of a Fund’s shares deposits with the Fund the “basket” of securities, cash or other assets identified by the Fund that day, and then receives the Creation Unit of the Fund’s shares in return for those assets. After purchasing a Creation Unit, the Authorized Participant may continue to hold the Fund’s shares or sell them in the secondary market. The redemption process is the reverse of the purchase process: the Authorized Participant redeems a Creation Unit of a Fund’s shares for a basket of securities, cash or other assets. The combination of the creation and redemption process with secondary market trading in a Fund’s shares and underlying securities provides arbitrage opportunities that are designed to help keep the market price of a Fund’s shares at or close to the NAV per share of the Fund.
Each Fund imposes fees in connection with the purchase of Creation Units. These fees may vary based upon various fact-based circumstances, including, but not limited to, the composition of the securities included in the Creation Unit or the countries in which the transactions are settled. The price for each Creation Unit will equal the daily NAV per share of a Fund times the number of shares in a Creation Unit, plus the fees described above and, if applicable, any operational processing and brokerage costs, transfer fees, stamp taxes and part or all of the spread between the expected bid and offer side of the market related to the securities comprising the creation basket.
Each Fund also imposes fees in connection with the redemption of Creation Units. These fees may vary based upon various fact-based circumstances, including, but not limited to, the composition of the securities included in the Creation Unit or the countries in which the transactions are settled. The price received for each Creation Unit will equal the daily NAV per share of a Fund times the number of shares in a Creation Unit, minus the fees described above and, if applicable, any operational processing and brokerage costs, transfer fees, stamp taxes and part or all of the spread between the expected bid and offer side of the market related to the securities comprising the redemption basket. Investors who use the services of a broker or other such intermediary in addition to an Authorized
Page 44
Notes to Financial Statements (Continued)
First Trust Exchange-Traded Fund
June 30, 2024 (Unaudited)
Participant to effect a redemption of a Creation Unit may also be assessed an amount to cover the cost of such services. The redemption fee charged by a Fund will comply with Rule 22c-2 of the 1940 Act which limits redemption fees to no more than 2% of the value of the shares redeemed.
6. Distribution Plan
The Board of Trustees adopted a Distribution and Service Plan pursuant to Rule 12b-1 under the 1940 Act. In accordance with the Rule 12b-1 plan, the Funds are authorized to pay an amount up to 0.25% of their average daily net assets each year to reimburse First Trust Portfolios L.P. (“FTP”), the distributor of the Funds, for amounts expended to finance activities primarily intended to result in the sale of Creation Units or the provision of investor services. FTP may also use this amount to compensate securities dealers or other persons that are Authorized Participants for providing distribution assistance, including broker-dealer and shareholder support and educational and promotional services.
No 12b-1 fees are currently paid by the Funds, and pursuant to a contractual arrangement, no 12b-1 fees will be paid any time before April 30, 2025.
7. Indemnification
The Trust, on behalf of the Funds, has a variety of indemnification obligations under contracts with its service providers. The Trust’s maximum exposure under these arrangements is unknown. However, the Trust has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.
8. Subsequent Events
Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were issued and has determined that there were no subsequent events requiring recognition or disclosure in the financial statements that have not already been disclosed.
Page 45
Other Information
First Trust Exchange-Traded Fund
June 30, 2024 (Unaudited)
Changes in and Disagreements with Accountants (Item 8 of Form N-CSR)
There were no changes in or disagreements with the Funds’ accountants during the six months ended June 30, 2024.
Proxy Disclosures (Item 9 of Form N-CSR)
There were no matters submitted for vote by shareholders of any Fund during the six months ended June 30, 2024.
Remuneration Paid to Directors, Officers, and Others (Item 10 of Form N-CSR)
The applicable aggregate remuneration paid by each Fund during the period covered by the report is included in the Statements of Operations.
Statement Regarding the Basis for the Board’s Approval of Investment Advisory Contract (Item 11 of Form N-CSR)
The Board of Trustees of First Trust Exchange-Traded Fund (the “Trust”), including the Independent Trustees, unanimously approved the continuation of the Investment Management Agreement (the “Agreement”) with First Trust Advisors L.P. (the “Advisor”) on behalf of the following series of the Trust (each a “Fund” and collectively, the “Funds”):
First Trust NASDAQ® ABA Community Bank Index Fund (QABA)
First Trust NASDAQ® Clean Edge® Green Energy Index Fund (QCLN)
First Trust NASDAQ-100 Equal Weighted Index Fund (QQEW)
First Trust NASDAQ-100 Ex-Technology Sector Index Fund (QQXT)
First Trust NASDAQ-100-Technology Sector Index Fund (QTEC)
First Trust Natural Gas ETF (FCG)
First Trust S&P REIT Index Fund (FRI)
First Trust Water ETF (FIW)
The Board approved the continuation of the Agreement for each Fund for a one-year period ending June 30, 2025 at a meeting held on June 2–3, 2024. The Board determined for each Fund that the continuation of the Agreement is in the best interests of the Fund in light of the nature, extent and quality of the services provided and such other matters as the Board considered to be relevant in the exercise of its business judgment.
To reach this determination for each Fund, the Board considered its duties under the Investment Company Act of 1940, as amended (the “1940 Act”), as well as under the general principles of state law, in reviewing and approving advisory contracts; the requirements of the 1940 Act in such matters; the fiduciary duty of investment advisors with respect to advisory agreements and compensation; the standards used by courts in determining whether investment company boards have fulfilled their duties; and the factors to be considered by the Board in voting on such agreements. At meetings held on April 16, 2024, April 25, 2024 and June 2–3, 2024, the Board, including the Independent Trustees, reviewed materials provided by the Advisor responding to requests for information from counsel to the Independent Trustees, submitted on behalf of the Independent Trustees, that, among other things, outlined: the services provided by the Advisor to each Fund (including the relevant personnel responsible for these services and their experience); the advisory fee rate schedule payable by each Fund as compared to fees charged to a peer group of funds (the “Expense Group”) and a broad peer universe of funds (the “Expense Universe”), each assembled by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent source, and as compared to fees charged to other clients of the Advisor, including other exchange-traded funds (“ETFs”) managed by the Advisor; the expense ratio of each Fund as compared to expense ratios of the funds in the Fund’s Expense Group and Expense Universe; performance information for each Fund, including comparisons of each Fund’s performance to that of one or more relevant benchmark indexes and to that of a performance group of funds and a broad performance universe of funds (the “Performance Universe”), each assembled by Broadridge; the nature of expenses incurred in providing services to each Fund and the potential for the Advisor to realize economies of scale, if any; profitability and other financial data for the Advisor; any indirect benefits to the Advisor and its affiliate, First Trust Portfolios L.P. (“FTP”); and information on the Advisor’s compliance program. The Board reviewed initial materials with the Advisor at the meeting held on April 25, 2024, prior to which the Independent Trustees and their counsel met separately to discuss the information provided by the Advisor. Following the April 25, 2024 meeting, counsel to the Independent Trustees, on behalf of the Independent Trustees, requested certain clarifications and supplements to the materials provided, and the information provided in response to those requests was considered at an executive session of the Independent Trustees and their counsel held prior to the June 2–3, 2024 meeting, as well as at the June meeting. The Board applied its business judgment to determine whether the arrangement between the Trust and the Advisor continues to be a reasonable business arrangement from each Fund’s perspective. The Board determined that, given the totality of the information provided with respect to the Agreement, the Board had
Page 46
Other Information (Continued)
First Trust Exchange-Traded Fund
June 30, 2024 (Unaudited)
received sufficient information to renew the Agreement. The Board considered that shareholders chose to invest or remain invested in a Fund knowing that the Advisor manages the Fund and knowing the Fund’s advisory fee.
In reviewing the Agreement for each Fund, the Board considered the nature, extent and quality of the services provided by the Advisor under the Agreement. The Board considered that the Advisor is responsible for the overall management and administration of the Trust and each Fund and reviewed all of the services provided by the Advisor to the Funds, as well as the background and experience of the persons responsible for such services. In reviewing the services provided, the Board noted the compliance program that had been developed by the Advisor and considered that it includes a robust program for monitoring the Advisor’s and each Fund’s compliance with the 1940 Act, as well as each Fund’s compliance with its investment objective, policies and restrictions. The Board also considered a report from the Advisor with respect to its risk management functions related to the operation of the Funds. Finally, as part of the Board’s consideration of the Advisor’s services, the Advisor, in its written materials and at the April 25, 2024 meeting, described to the Board the scope of its ongoing investment in additional personnel and infrastructure to maintain and improve the quality of services provided to the Funds and the other funds in the First Trust Fund Complex. In light of the information presented and the considerations made, the Board concluded that the nature, extent and quality of the services provided to the Trust and each Fund by the Advisor under the Agreement have been and are expected to remain satisfactory and that the Advisor has managed each Fund consistent with its investment objective, policies and restrictions.
The Board considered the advisory fee rate schedule payable by each Fund under the Agreement for the services provided. The Board considered that the Advisor agreed to extend the current expense cap for each Fund through April 30, 2026. The Board received and reviewed information showing the fee rates and expense ratios of the peer funds in the Expense Groups, as well as advisory and unitary fee rates charged by the Advisor to other fund (including ETFs) and non-fund clients, as applicable. Because each Fund’s Expense Group included peer funds that pay a unitary fee, the Board determined that expense ratios were the most relevant comparative data point. Based on the information provided, the Board noted that the total (net) expense ratio for each Fund was above the median total (net) expense ratio of the peer funds in its respective Expense Group. With respect to the Expense Groups, the Board discussed with Broadridge its methodology for assembling peer groups and discussed with the Advisor limitations in creating peer groups for index ETFs, including differences in underlying indexes and index-tracking methodologies that can result in greater management complexities across seemingly comparable ETFs, and different business models that may affect the pricing of services among ETF sponsors. The Board took these limitations and differences into account in considering the peer data. With respect to fees charged to other non-ETF clients, the Board considered differences between the Funds and other non-ETF clients that limited their comparability. In considering the advisory fee rate schedules overall, the Board also considered the Advisor’s statement that it seeks to meet investor needs through innovative and value-added investment solutions and the Advisor’s demonstrated long-term commitment to each Fund and the other funds in the First Trust Fund Complex.
The Board considered performance information for each Fund. The Board noted the process it has established for monitoring each Fund’s performance and portfolio risk on an ongoing basis, which includes quarterly performance reporting from the Advisor for the Funds. The Board determined that this process continues to be effective for reviewing each Fund’s performance. The Board received and reviewed information for periods ended December 31, 2023 regarding the performance of each Fund’s underlying index, the correlation between each Fund’s performance and that of its underlying index, each Fund’s tracking difference and each Fund’s excess return as compared to its benchmark index. Based on the information provided and its ongoing review of performance, the Board concluded that each Fund was correlated to its underlying index and that the tracking difference for each Fund was within a reasonable range. In addition, the Board reviewed data prepared by Broadridge comparing each Fund’s performance to that of its respective Performance Universe and to that of a broad-based benchmark index and noted the Advisor’s discussion of QQEW’s performance at the April 25, 2024 meeting. However, given each Fund’s objective of seeking investment results that correspond generally to the performance of its underlying index, the Board placed more emphasis on its review of correlation and tracking difference.
On the basis of all the information provided on the fees, expenses and performance of each Fund and the ongoing oversight by the Board, the Board concluded that the advisory fee for each Fund continues to be reasonable and appropriate in light of the nature, extent and quality of the services provided by the Advisor to each Fund under the Agreement.
The Board considered information and discussed with the Advisor whether there were any economies of scale in connection with providing advisory services to the Funds at current asset levels and whether the Funds may benefit from any economies of scale. The Board noted that the advisory fee rate schedule for each Fund includes breakpoints pursuant to which the advisory fee rate will be reduced as assets of the Fund meet certain thresholds. The Board considered the Advisor’s statement that it believes that its expenses relating to providing advisory services to the Funds will increase during the next twelve months as the Advisor continues to build infrastructure and add new staff. The Board concluded that the advisory fee rate schedule for each Fund reflects an appropriate level of
Page 47
Other Information (Continued)
First Trust Exchange-Traded Fund
June 30, 2024 (Unaudited)
sharing of any economies of scale that may be realized in the management of the Fund at current asset levels. The Board considered the revenues and allocated costs (including the allocation methodology) of the Advisor in serving as investment advisor to each Fund for the twelve months ended December 31, 2023 and the estimated profitability level for each Fund calculated by the Advisor based on such data, as well as complex-wide and product-line profitability data, for the same period. The Board noted the inherent limitations in the profitability analysis and concluded that, based on the information provided, the Advisor’s profitability level for each Fund was not unreasonable. In addition, the Board considered indirect benefits described by the Advisor that may be realized from its relationship with the Funds. The Board considered that the Advisor had identified as an indirect benefit to the Advisor and FTP their exposure to investors and brokers who, absent their exposure to the Funds, may have had no dealings with the Advisor or FTP, and noted that the Advisor does not utilize soft dollars in connection with the Funds. The Board concluded that the character and amount of potential indirect benefits to the Advisor were not unreasonable.
Based on all of the information considered and the conclusions reached, the Board, including the Independent Trustees, unanimously determined that the terms of the Agreement continue to be fair and reasonable and that the continuation of the Agreement is in the best interests of each Fund. No single factor was determinative in the Board’s analysis.
Disclaimer
Nasdaq®, Nasdaq-100®, Nasdaq-100 Index®, Clean Edge®, OMX®, Nasdaq OMX®, Nasdaq-100 Equal WeightedTM Index,
Nasdaq-100 Technology SectorTM Index, Nasdaq-100 Ex-Tech SectorTM Index, Nasdaq® Clean Edge® Green EnergyTM Index, ISE Clean Edge WaterTM Index, ISE-Revere Natural GasTM Index and Nasdaq OMX® ABA Community BankTM Index (“the Nasdaq Indexes”) are registered trademarks and service marks of Nasdaq, Inc., Clean Edge, Inc., and American Bankers Association, respectively, (together with their affiliates hereinafter referred to as the “Corporations”), and are licensed for use by First Trust. The Funds have not been passed on by the Corporations as to their legality or suitability. The Funds are not issued, endorsed, sold or promoted by the Corporations. THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE FUNDS.
S&P United States REIT Index (“Index”) is a product of S&P Dow Jones Indices LLC or its affiliates (“SPDJI”) and has been licensed for use by First Trust. S&P® is a registered trademark of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by First Trust. The Fund is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P on their respective affiliates and none of such parties make any representation regarding the advisability of investing in such product nor do they have any liability for the errors, omissions or interruptions of the Index.
Page 48
 
 
 
Semi-Annual Financial
Statements and
Other Information
For the Six Months Ended
June 30, 2024
 
First Trust Exchange-Traded Fund
Book 3
 
First Trust Dividend StrengthTM ETF (FTDS)
First Trust Dow 30 Equal Weight ETF (EDOW)
First Trust Lunt U.S. Factor Rotation ETF (FCTR)
First Trust S&P 500 Diversified Free Cash Flow ETF (FCFY)
Table of Contents 
First Trust Exchange-Traded Fund
Semi-Annual Financial Statements and Other Information
June 30, 2024 
Performance and Risk Disclosure
There is no assurance that any series of First Trust Exchange-Traded Fund (the “Trust”) described in this report (each such series is referred to as a “Fund” and collectively, as the “Funds”) will achieve its investment objective. Each Fund is subject to market risk, which is the possibility that the market values of securities owned by the Fund will decline and that the value of the Fund’s shares may therefore be less than what you paid for them. Accordingly, you can lose money by investing in a Fund.
Performance data quoted represents past performance, which is no guarantee of future results, and current performance may be lower or higher than the figures shown. For the most recent month-end performance figures, please visit www.ftportfolios.com or speak with your financial advisor. Investment returns, net asset value and share price will fluctuate and Fund shares, when sold, may be worth more or less than their original cost.
First Trust Advisors L.P., the Funds’ advisor, may also periodically provide additional information on Fund performance on each Fund’s webpage at www.ftportfolios.com.
How to Read This Report
This report contains information that may help you evaluate your investment. It includes details about each Fund and presents data that provides insight into each Fund’s performance and investment approach.
The material risks of investing in each Fund are spelled out in its prospectus, statement of additional information, and other Fund regulatory filings.
First Trust Dividend StrengthTM ETF (FTDS)
Portfolio of Investments
June 30, 2024 (Unaudited)
 
Shares
Description
Value
COMMON STOCKS — 100.0%
Aerospace & Defense — 5.8%
1,500
General Dynamics Corp.
$435,210
1,593
Huntington Ingalls Industries,
Inc.
392,404
933
Lockheed Martin Corp.
435,804
 
1,263,418
Banks — 16.6%
8,039
Commerce Bancshares, Inc.
448,416
3,881
Cullen/Frost Bankers, Inc.
394,426
5,940
East West Bancorp, Inc.
434,986
3,019
M&T Bank Corp.
456,956
5,203
Popular, Inc.
460,101
22,904
Regions Financial Corp.
458,996
12,400
Synovus Financial Corp.
498,356
10,844
Zions Bancorp N.A.
470,304
 
3,622,541
Building Products — 2.1%
6,800
Johnson Controls
International PLC
451,996
Capital Markets — 2.2%
5,748
Stifel Financial Corp.
483,694
Chemicals — 7.8%
5,447
CF Industries Holdings, Inc.
403,732
4,490
Eastman Chemical Co.
439,885
7,487
FMC Corp.
430,877
3,307
PPG Industries, Inc.
416,318
 
1,690,812
Consumer Staples Distribution
& Retail — 3.6%
5,642
Sysco Corp.
402,782
2,572
Target Corp.
380,759
 
783,541
Distributors — 1.7%
2,666
Genuine Parts Co.
368,761
Financial Services — 4.3%
11,840
Equitable Holdings, Inc.
483,782
14,595
Radian Group, Inc.
453,905
 
937,687
Food Products — 3.9%
6,915
Archer-Daniels-Midland Co.
418,012
3,953
Bunge Global S.A.
422,062
 
840,074
Ground Transportation —
1.9%
1,865
Union Pacific Corp.
421,975
Health Care Providers &
Services — 2.1%
3,370
Quest Diagnostics, Inc.
461,286
Shares
Description
Value
 
Hotels, Restaurants & Leisure
— 2.1%
6,191
Wyndham Hotels & Resorts, Inc.
$458,134
Household Durables — 2.3%
3,103
Garmin Ltd.
505,541
Industrial Conglomerates —
2.2%
2,228
Honeywell International, Inc.
475,767
Insurance — 8.1%
5,201
Aflac, Inc.
464,501
3,609
Cincinnati Financial Corp.
426,223
3,087
RLI Corp.
434,310
8,428
Unum Group
430,755
 
1,755,789
Machinery — 5.4%
3,728
AGCO Corp.
364,897
3,893
PACCAR, Inc.
400,745
1,610
Snap-on, Inc.
420,838
 
1,186,480
Media — 1.9%
14,091
Interpublic Group of (The) Cos.,
Inc.
409,907
Oil, Gas & Consumable Fuels
— 14.9%
3,346
ConocoPhillips
382,715
15,599
Coterra Energy, Inc.
416,025
8,352
Devon Energy Corp.
395,885
2,156
Diamondback Energy, Inc.
431,610
3,251
EOG Resources, Inc.
409,203
7,614
HF Sinclair Corp.
406,131
2,798
Phillips 66
394,994
2,641
Valero Energy Corp.
414,003
 
3,250,566
Professional Services — 2.0%
13,703
Genpact Ltd.
441,100
Semiconductors &
Semiconductor Equipment
— 6.9%
5,300
Microchip Technology, Inc.
484,950
2,746
QUALCOMM, Inc.
546,948
4,504
Skyworks Solutions, Inc.
480,037
 
1,511,935
Specialty Retail — 2.2%
2,219
Dick’s Sporting Goods, Inc.
476,752
Total Common Stocks
21,797,756
(Cost $20,380,172)
See Notes to Financial Statements
Page 1
First Trust Dividend StrengthTM ETF (FTDS)
Portfolio of Investments (Continued)
June 30, 2024 (Unaudited)
Shares
Description
Value
MONEY MARKET FUNDS — 0.1%
25,596
Morgan Stanley Institutional
Liquidity Funds - Treasury
Portfolio - Institutional Class -
5.14% (a)
$25,596
(Cost $25,596)
Total Investments — 100.1%
21,823,352
(Cost $20,405,768)
Net Other Assets and
Liabilities — (0.1)%
(15,237
)
Net Assets — 100.0%
$21,808,115
 
(a)
Rate shown reflects yield as of June 30, 2024.
Valuation Inputs
A summary of the inputs used to value the Fund’s investments as of June 30, 2024 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements):
 
 
Total
Value at
6/30/2024
Level 1
Quoted
Prices
Level 2
Significant
Observable
Inputs
Level 3
Significant
Unobservable
Inputs
Common Stocks*
$ 21,797,756
$ 21,797,756
$ —
$ —
Money Market Funds
 25,596
 25,596
 —
 —
Total Investments
$21,823,352
$21,823,352
$—
$—
 
*
See Portfolio of Investments for industry breakout.
See Notes to Financial Statements
Page 2
First Trust Dow 30 Equal Weight ETF (EDOW)
Portfolio of Investments
June 30, 2024 (Unaudited)
 
Shares
Description
Value
COMMON STOCKS — 100.0%
Aerospace & Defense — 3.4%
42,481
Boeing (The) Co. (a)
$7,731,967
Banks — 3.4%
38,861
JPMorgan Chase & Co.
7,860,026
Beverages — 3.4%
120,390
Coca-Cola (The) Co.
7,662,823
Biotechnology — 3.4%
25,218
Amgen, Inc.
7,879,364
Broadline Retail — 3.5%
41,002
Amazon.com, Inc. (a)
7,923,636
Capital Markets — 3.3%
16,867
Goldman Sachs Group (The),
Inc.
7,629,281
Chemicals — 3.2%
136,867
Dow, Inc.
7,260,794
Communications Equipment
— 3.4%
164,852
Cisco Systems, Inc.
7,832,119
Consumer Finance — 3.4%
33,496
American Express Co.
7,755,999
Consumer Staples Distribution
& Retail — 3.3%
112,362
Walmart, Inc.
7,608,031
Diversified Telecommunication
Services — 3.4%
189,828
Verizon Communications, Inc.
7,828,507
Entertainment — 3.3%
75,327
Walt Disney (The) Co.
7,479,218
Financial Services — 3.2%
27,822
Visa, Inc., Class A
7,302,440
Health Care Providers &
Services — 3.4%
15,149
UnitedHealth Group, Inc.
7,714,780
Hotels, Restaurants & Leisure
— 3.3%
29,697
McDonald’s Corp.
7,567,983
Household Products — 3.3%
45,149
Procter & Gamble (The) Co.
7,445,973
Industrial Conglomerates —
6.7%
74,633
3M Co.
7,626,746
36,112
Honeywell International, Inc.
7,711,357
 
15,338,103
Insurance — 3.3%
36,582
Travelers (The) Cos., Inc.
7,438,584
IT Services — 3.4%
44,504
International Business Machines
Corp.
7,696,967
Shares
Description
Value
 
Machinery — 3.4%
23,425
Caterpillar, Inc.
$7,802,867
Oil, Gas & Consumable Fuels
— 3.4%
49,357
Chevron Corp.
7,720,422
Pharmaceuticals — 6.5%
51,741
Johnson & Johnson
7,562,465
58,159
Merck & Co., Inc.
7,200,084
 
14,762,549
Semiconductors &
Semiconductor Equipment
— 3.4%
247,306
Intel Corp.
7,659,067
Software — 7.0%
17,015
Microsoft Corp.
7,604,854
32,467
Salesforce, Inc.
8,347,266
 
15,952,120
Specialty Retail — 3.3%
21,711
Home Depot (The), Inc.
7,473,795
Technology Hardware, Storage
& Peripherals — 3.3%
35,439
Apple, Inc.
7,464,162
Textiles, Apparel & Luxury
Goods — 2.7%
80,635
NIKE, Inc., Class B
6,077,460
Total Common Stocks
227,869,037
(Cost $205,810,759)
MONEY MARKET FUNDS — 0.0%
30,729
Dreyfus Government Cash
Management Fund,
Institutional Shares -
5.19% (b)
30,729
(Cost $30,729)
Total Investments — 100.0%
227,899,766
(Cost $205,841,488)
Net Other Assets and
Liabilities — 0.0%
44,186
Net Assets — 100.0%
$227,943,952
 
(a)
Non-income producing security.
(b)
Rate shown reflects yield as of June 30, 2024.
See Notes to Financial Statements
Page 3
First Trust Dow 30 Equal Weight ETF (EDOW)
Portfolio of Investments (Continued)
June 30, 2024 (Unaudited)
Valuation Inputs
A summary of the inputs used to value the Fund’s investments as of June 30, 2024 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements):
 
 
Total
Value at
6/30/2024
Level 1
Quoted
Prices
Level 2
Significant
Observable
Inputs
Level 3
Significant
Unobservable
Inputs
Common Stocks*
$ 227,869,037
$ 227,869,037
$ —
$ —
Money Market
Funds
 30,729
 30,729
 —
 —
Total Investments
$227,899,766
$227,899,766
$—
$—
 
*
See Portfolio of Investments for industry breakout.
See Notes to Financial Statements
Page 4
First Trust Lunt U.S. Factor Rotation ETF (FCTR)
Portfolio of Investments
June 30, 2024 (Unaudited)
 
Shares
Description
Value
COMMON STOCKS — 99.9%
Aerospace & Defense — 2.5%
890
Axon Enterprise, Inc. (a)
$261,874
1,347
General Dynamics Corp.
390,818
3,867
Howmet Aerospace, Inc.
300,195
826
Lockheed Martin Corp.
385,825
350
TransDigm Group, Inc.
447,163
 
1,785,875
Automobile Components —
0.4%
3,940
Aptiv PLC (a)
277,455
Automobiles — 1.7%
33,901
Ford Motor Co.
425,119
16,888
General Motors Co.
784,616
 
1,209,735
Banks — 3.6%
6,810
Citigroup, Inc.
432,163
13,318
Citizens Financial Group, Inc.
479,848
21,433
Huntington Bancshares, Inc.
282,487
2,542
M&T Bank Corp.
384,757
19,783
Regions Financial Corp.
396,451
6,265
U.S. Bancorp
248,720
5,529
Wells Fargo & Co.
328,367
 
2,552,793
Beverages — 1.0%
6,268
Coca-Cola (The) Co.
398,958
2,731
Monster Beverage Corp. (a)
136,413
945
PepsiCo, Inc.
155,859
 
691,230
Biotechnology — 0.5%
328
Regeneron Pharmaceuticals,
Inc. (a)
344,738
Building Products — 1.9%
2,117
Builders FirstSource, Inc. (a)
293,014
814
Carlisle Cos., Inc.
329,841
2,928
Masco Corp.
195,210
1,537
Trane Technologies PLC
505,565
 
1,323,630
Capital Markets — 4.9%
805
Ameriprise Financial, Inc.
343,888
2,837
Ares Management Corp.,
Class A
378,115
5,755
Bank of New York Mellon (The)
Corp.
344,667
5,049
Coinbase Global, Inc.,
Class A (a)
1,122,039
1,453
FactSet Research Systems, Inc.
593,216
3,914
KKR & Co., Inc.
411,910
3,894
State Street Corp.
288,156
 
3,481,991
Shares
Description
Value
 
Commercial Services &
Supplies — 4.1%
1,181
Cintas Corp.
$827,007
3,612
Copart, Inc. (a)
195,626
3,455
Republic Services, Inc.
671,445
13,966
Rollins, Inc.
681,401
2,697
Waste Management, Inc.
575,378
 
2,950,857
Communications Equipment
— 2.6%
1,897
Arista Networks, Inc. (a)
664,861
9,925
Cisco Systems, Inc.
471,537
1,865
Motorola Solutions, Inc.
719,983
 
1,856,381
Construction & Engineering
— 0.3%
866
Quanta Services, Inc.
220,042
Consumer Finance — 1.3%
2,821
Capital One Financial Corp.
390,567
11,087
Synchrony Financial
523,196
 
913,763
Consumer Staples Distribution
& Retail — 2.4%
256
Costco Wholesale Corp.
217,598
6,300
Kroger (The) Co.
314,559
12,206
Sysco Corp.
871,386
24,632
Walgreens Boots Alliance, Inc.
297,924
 
1,701,467
Containers & Packaging —
0.5%
1,610
Avery Dennison Corp.
352,026
Diversified Telecommunication
Services — 0.5%
19,491
AT&T, Inc.
372,473
Electric Utilities — 1.3%
2,928
Constellation Energy Corp.
586,391
3,224
Entergy Corp.
344,968
 
931,359
Electrical Equipment — 3.1%
3,036
AMETEK, Inc.
506,132
608
Hubbell, Inc.
222,212
16,992
Vertiv Holdings Co., Class A
1,470,997
 
2,199,341
Electronic Equipment,
Instruments & Components
— 0.3%
3,452
Amphenol Corp., Class A
232,561
See Notes to Financial Statements
Page 5
First Trust Lunt U.S. Factor Rotation ETF (FCTR)
Portfolio of Investments (Continued)
June 30, 2024 (Unaudited)
Shares
Description
Value
COMMON STOCKS (Continued)
Entertainment — 0.8%
536
Netflix, Inc. (a)
$361,736
32,439
Warner Bros. Discovery, Inc. (a)
241,346
 
603,082
Financial Services — 4.1%
5,702
Apollo Global Management, Inc.
673,235
1,074
Berkshire Hathaway, Inc.,
Class B (a)
436,903
11,335
Corebridge Financial, Inc.
330,075
536
Corpay, Inc. (a)
142,796
1,191
Fiserv, Inc. (a)
177,506
1,349
Mastercard, Inc., Class A
595,125
2,295
Visa, Inc., Class A
602,369
 
2,958,009
Food Products — 4.5%
9,859
Archer-Daniels-Midland Co.
595,977
6,985
Bunge Global S.A.
745,788
9,035
Conagra Brands, Inc.
256,775
821
Hershey (The) Co.
150,924
9,630
Kraft Heinz (The) Co.
310,279
3,675
Lamb Weston Holdings, Inc.
308,994
7,205
Mondelez International, Inc.,
Class A
471,495
6,445
Tyson Foods, Inc., Class A
368,267
 
3,208,499
Gas Utilities — 0.7%
4,574
Atmos Energy Corp.
533,557
Ground Transportation —
1.1%
6,508
Uber Technologies, Inc. (a)
473,001
1,381
Union Pacific Corp.
312,465
 
785,466
Health Care Equipment &
Supplies — 1.6%
465
Intuitive Surgical, Inc. (a)
206,855
4,139
Medtronic PLC
325,781
1,843
Stryker Corp.
627,081
 
1,159,717
Health Care Providers &
Services — 3.8%
2,692
Cencora, Inc.
606,507
5,933
Centene Corp. (a)
393,358
893
Cigna Group (The)
295,199
6,466
CVS Health Corp.
381,882
700
Elevance Health, Inc.
379,302
780
Humana, Inc.
291,447
598
McKesson Corp.
349,256
 
2,696,951
Shares
Description
Value
 
Hotels, Restaurants & Leisure
— 3.7%
45
Booking Holdings, Inc.
$178,267
7,947
Chipotle Mexican Grill, Inc. (a)
497,880
2,296
Darden Restaurants, Inc.
347,431
10,462
DraftKings, Inc., Class A (a)
399,334
1,631
Hilton Worldwide Holdings, Inc.
355,884
575
McDonald’s Corp.
146,533
2,258
Royal Caribbean Cruises Ltd. (a)
359,993
2,923
Yum! Brands, Inc.
387,181
 
2,672,503
Household Durables — 0.7%
1,544
D.R. Horton, Inc.
217,596
1,933
Lennar Corp., Class A
289,699
 
507,295
Household Products — 3.2%
4,922
Church & Dwight Co., Inc.
510,313
9,364
Colgate-Palmolive Co.
908,683
5,187
Procter & Gamble (The) Co.
855,440
 
2,274,436
Independent Power and
Renewable Electricity
Producers — 1.5%
12,470
Vistra Corp.
1,072,171
Industrial Conglomerates —
0.8%
2,659
Honeywell International, Inc.
567,803
Insurance — 9.7%
8,766
American International Group,
Inc.
650,788
1,060
Aon PLC, Class A
311,195
6,972
Arch Capital Group Ltd. (a)
703,405
10,412
Brown & Brown, Inc.
930,937
636
Chubb Ltd.
162,231
2,658
Cincinnati Financial Corp.
313,910
1,262
Everest Group Ltd.
480,847
6,715
Hartford Financial Services
Group (The), Inc.
675,126
10,612
Loews Corp.
793,141
225
Markel Group, Inc. (a)
354,523
1,855
Marsh & McLennan Cos., Inc.
390,886
3,779
Principal Financial Group, Inc.
296,462
2,699
Prudential Financial, Inc.
316,296
1,567
Travelers (The) Cos., Inc.
318,634
2,569
W.R. Berkley Corp.
201,872
 
6,900,253
Interactive Media & Services
— 0.7%
996
Meta Platforms, Inc., Class A
502,203
See Notes to Financial Statements
Page 6
First Trust Lunt U.S. Factor Rotation ETF (FCTR)
Portfolio of Investments (Continued)
June 30, 2024 (Unaudited)
Shares
Description
Value
COMMON STOCKS (Continued)
IT Services — 0.7%
418
Gartner, Inc. (a)
$187,707
1,835
VeriSign, Inc. (a)
326,263
 
513,970
Machinery — 3.8%
1,422
IDEX Corp.
286,106
3,935
Illinois Tool Works, Inc.
932,438
630
Lincoln Electric Holdings, Inc.
118,843
3,901
Otis Worldwide Corp.
375,510
1,313
PACCAR, Inc.
135,160
293
Parker-Hannifin Corp.
148,202
2,511
Westinghouse Air Brake
Technologies Corp.
396,864
2,487
Xylem, Inc.
337,312
 
2,730,435
Media — 0.5%
9,460
Fox Corp., Class A
325,140
Metals & Mining — 0.7%
1,365
Nucor Corp.
215,779
2,175
Steel Dynamics, Inc.
281,663
 
497,442
Oil, Gas & Consumable Fuels
— 3.1%
8,781
EQT Corp.
324,721
2,329
Exxon Mobil Corp.
268,115
20,685
Kinder Morgan, Inc.
411,011
10,238
Marathon Oil Corp.
293,523
1,544
Marathon Petroleum Corp.
267,853
2,287
Targa Resources Corp.
294,520
8,833
Williams (The) Cos., Inc.
375,403
 
2,235,146
Passenger Airlines — 1.2%
10,165
Southwest Airlines Co.
290,821
12,059
United Airlines Holdings,
Inc. (a)
586,791
 
877,612
Pharmaceuticals — 2.1%
520
Eli Lilly & Co.
470,798
2,726
Johnson & Johnson
398,432
2,887
Merck & Co., Inc.
357,411
27,896
Viatris, Inc.
296,534
 
1,523,175
Professional Services — 4.1%
2,987
Automatic Data Processing, Inc.
712,967
1,462
Booz Allen Hamilton Holding
Corp.
225,002
3,194
Broadridge Financial Solutions,
Inc.
629,218
Shares
Description
Value
 
Professional Services
(Continued)
8,239
Paychex, Inc.
$976,816
1,503
Verisk Analytics, Inc.
405,133
 
2,949,136
Retail REITs — 0.5%
6,125
Realty Income Corp.
323,523
Semiconductors &
Semiconductor Equipment
— 3.6%
1,436
Applied Materials, Inc.
338,882
279
Broadcom, Inc.
447,943
1,814
Entegris, Inc.
245,615
430
KLA Corp.
354,539
9,439
NVIDIA Corp.
1,166,094
 
2,553,073
Software — 3.1%
707
Cadence Design Systems,
Inc. (a)
217,579
232
Fair Isaac Corp. (a)
345,369
781
Manhattan Associates, Inc. (a)
192,657
453
Microsoft Corp.
202,468
9,403
Nutanix, Inc., Class A (a)
534,561
20,973
Palantir Technologies, Inc.,
Class A (a)
531,246
348
Synopsys, Inc. (a)
207,081
 
2,230,961
Specialized REITs — 0.2%
5,638
VICI Properties, Inc.
161,472
Specialty Retail — 2.4%
3,354
Best Buy Co., Inc.
282,709
275
O’Reilly Automotive, Inc. (a)
290,416
4,936
Ross Stores, Inc.
717,300
3,811
TJX (The) Cos., Inc.
419,591
 
1,710,016
Technology Hardware, Storage
& Peripherals — 1.5%
2,201
Apple, Inc.
463,575
28,577
Hewlett Packard Enterprise Co.
604,975
 
1,068,550
Textiles, Apparel & Luxury
Goods — 0.7%
495
Deckers Outdoor Corp. (a)
479,135
Trading Companies &
Distributors — 1.2%
4,855
Fastenal Co.
305,088
486
United Rentals, Inc.
314,311
232
W.W. Grainger, Inc.
209,320
 
828,719
See Notes to Financial Statements
Page 7
First Trust Lunt U.S. Factor Rotation ETF (FCTR)
Portfolio of Investments (Continued)
June 30, 2024 (Unaudited)
Shares
Description
Value
COMMON STOCKS (Continued)
Wireless Telecommunication
Services — 0.7%
2,820
T-Mobile US, Inc.
$496,828
Total Common Stocks
71,343,995
(Cost $70,159,545)
MONEY MARKET FUNDS — 0.1%
30,775
Morgan Stanley Institutional
Liquidity Funds - Treasury
Portfolio - Institutional Class -
5.14% (b)
30,775
(Cost $30,775)
Total Investments — 100.0%
71,374,770
(Cost $70,190,320)
Net Other Assets and
Liabilities — 0.0%
19,583
Net Assets — 100.0%
$71,394,353
 
(a)
Non-income producing security.
(b)
Rate shown reflects yield as of June 30, 2024.
 
Abbreviations throughout the Portfolio of Investments:
REITs
–  Real Estate Investment Trusts
Valuation Inputs
A summary of the inputs used to value the Fund’s investments as of June 30, 2024 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements):
 
 
Total
Value at
6/30/2024
Level 1
Quoted
Prices
Level 2
Significant
Observable
Inputs
Level 3
Significant
Unobservable
Inputs
Common Stocks*
$ 71,343,995
$ 71,343,995
$ —
$ —
Money Market Funds
 30,775
 30,775
 —
 —
Total Investments
$71,374,770
$71,374,770
$—
$—
 
*
See Portfolio of Investments for industry breakout.
See Notes to Financial Statements
Page 8
First Trust S&P 500 Diversified Free Cash Flow ETF (FCFY)
Portfolio of Investments
June 30, 2024 (Unaudited)
 
Shares
Description
Value
COMMON STOCKS — 99.8%
Aerospace & Defense — 0.8%
18
Huntington Ingalls Industries,
Inc.
$4,434
11
Lockheed Martin Corp.
5,138
 
9,572
Air Freight & Logistics —
1.3%
88
C.H. Robinson Worldwide, Inc.
7,754
53
Expeditors International of
Washington, Inc.
6,614
 
14,368
Banks — 3.5%
209
Citizens Financial Group, Inc.
7,530
508
Huntington Bancshares, Inc.
6,696
50
M&T Bank Corp.
7,568
211
Truist Financial Corp.
8,197
161
Wells Fargo & Co.
9,562
 
39,553
Beverages — 0.5%
121
Molson Coors Beverage Co.,
Class B
6,150
Biotechnology — 1.5%
47
AbbVie, Inc.
8,061
134
Gilead Sciences, Inc.
9,194
 
17,255
Broadline Retail — 1.8%
201
eBay, Inc.
10,798
153
Etsy, Inc. (a)
9,024
 
19,822
Building Products — 1.3%
54
A.O. Smith Corp.
4,416
34
Builders FirstSource, Inc. (a)
4,706
79
Masco Corp.
5,267
 
14,389
Capital Markets — 1.5%
548
Invesco Ltd.
8,198
119
State Street Corp.
8,806
 
17,004
Chemicals — 1.3%
41
CF Industries Holdings, Inc.
3,039
55
Dow, Inc.
2,918
47
LyondellBasell Industries N.V.,
Class A
4,496
136
Mosaic (The) Co.
3,930
 
14,383
Communications Equipment
— 6.5%
616
Cisco Systems, Inc.
29,266
Shares
Description
Value
 
Communications Equipment
(Continued)
123
F5, Inc. (a)
$21,184
634
Juniper Networks, Inc.
23,116
 
73,566
Consumer Finance — 4.8%
109
Capital One Financial Corp.
15,091
100
Discover Financial Services
13,081
557
Synchrony Financial
26,285
 
54,457
Consumer Staples Distribution
& Retail — 0.5%
107
Kroger (The) Co.
5,343
Diversified Telecommunication
Services — 2.5%
1,448
AT&T, Inc.
27,671
Electronic Equipment,
Instruments & Components
— 2.0%
153
TE Connectivity Ltd.
23,016
Entertainment — 4.7%
168
Electronic Arts, Inc.
23,407
3,956
Warner Bros. Discovery, Inc. (a)
29,433
 
52,840
Food Products — 2.5%
150
Archer-Daniels-Midland Co.
9,067
126
Bunge Global S.A.
13,453
195
Conagra Brands, Inc.
5,542
 
28,062
Gas Utilities — 1.3%
129
Atmos Energy Corp.
15,048
Health Care Equipment &
Supplies — 1.1%
227
Solventum Corp. (a)
12,004
Health Care Providers &
Services — 8.6%
152
Cardinal Health, Inc.
14,945
39
Cencora, Inc.
8,787
322
Centene Corp. (a)
21,349
29
Cigna Group (The)
9,586
119
CVS Health Corp.
7,028
61
DaVita, Inc. (a)
8,453
27
Humana, Inc.
10,089
28
Molina Healthcare, Inc. (a)
8,324
16
UnitedHealth Group, Inc.
8,148
 
96,709
Health Care REITs — 0.3%
31
Alexandria Real Estate Equities,
Inc.
3,626
See Notes to Financial Statements
Page 9
First Trust S&P 500 Diversified Free Cash Flow ETF (FCFY)
Portfolio of Investments (Continued)
June 30, 2024 (Unaudited)
Shares
Description
Value
COMMON STOCKS (Continued)
Hotel & Resort REITs — 0.3%
163
Host Hotels & Resorts, Inc.
$2,931
Hotels, Restaurants & Leisure
— 1.8%
2
Booking Holdings, Inc.
7,923
98
Expedia Group, Inc. (a)
12,347
 
20,270
Household Durables — 4.4%
55
D.R. Horton, Inc.
7,751
89
Lennar Corp., Class A
13,338
79
Mohawk Industries, Inc. (a)
8,974
1
NVR, Inc. (a)
7,588
107
PulteGroup, Inc.
11,781
 
49,432
Household Products — 0.6%
51
Kimberly-Clark Corp.
7,048
Industrial Conglomerates —
0.8%
87
3M Co.
8,891
Insurance — 3.9%
117
American International Group,
Inc.
8,686
71
Arch Capital Group Ltd. (a)
7,163
23
Everest Group Ltd.
8,763
153
MetLife, Inc.
10,739
77
Prudential Financial, Inc.
9,024
 
44,375
Interactive Media & Services
— 1.8%
679
Match Group, Inc. (a)
20,628
IT Services — 3.9%
343
Cognizant Technology Solutions
Corp., Class A
23,324
121
International Business Machines
Corp.
20,927
 
44,251
Machinery — 1.4%
12
Caterpillar, Inc.
3,997
19
Cummins, Inc.
5,262
23
Snap-on, Inc.
6,012
 
15,271
Metals & Mining — 0.8%
32
Nucor Corp.
5,059
33
Steel Dynamics, Inc.
4,273
 
9,332
Shares
Description
Value
 
Multi-Utilities — 0.9%
68
Public Service Enterprise Group,
Inc.
$5,011
71
WEC Energy Group, Inc.
5,571
 
10,582
Office REITs — 0.4%
82
Boston Properties, Inc.
5,048
Oil, Gas & Consumable Fuels
— 3.6%
36
Diamondback Energy, Inc.
7,207
299
Marathon Oil Corp.
8,572
55
Marathon Petroleum Corp.
9,541
98
Occidental Petroleum Corp.
6,177
59
Valero Energy Corp.
9,249
 
40,746
Personal Care Products —
0.6%
342
Kenvue, Inc.
6,218
Pharmaceuticals — 1.7%
243
Bristol-Myers Squibb Co.
10,092
822
Viatris, Inc.
8,738
 
18,830
Professional Services — 1.2%
30
Jacobs Solutions, Inc.
4,191
34
Leidos Holdings, Inc.
4,960
35
Paychex, Inc.
4,150
 
13,301
Retail REITs — 0.9%
177
Kimco Realty Corp.
3,444
61
Realty Income Corp.
3,222
26
Simon Property Group, Inc.
3,947
 
10,613
Semiconductors &
Semiconductor Equipment
— 9.4%
238
Microchip Technology, Inc.
21,777
170
Qorvo, Inc. (a)
19,727
121
QUALCOMM, Inc.
24,101
385
Skyworks Solutions, Inc.
41,033
 
106,638
Specialized REITs — 0.3%
132
VICI Properties, Inc.
3,780
Technology Hardware, Storage
& Peripherals — 9.5%
1,845
Hewlett Packard Enterprise Co.
39,059
1,177
HP, Inc.
41,218
214
NetApp, Inc.
27,563
 
107,840
See Notes to Financial Statements
Page 10
First Trust S&P 500 Diversified Free Cash Flow ETF (FCFY)
Portfolio of Investments (Continued)
June 30, 2024 (Unaudited)
Shares
Description
Value
COMMON STOCKS (Continued)
Textiles, Apparel & Luxury
Goods — 2.2%
54
Ralph Lauren Corp.
$9,453
356
Tapestry, Inc.
15,234
 
24,687
Tobacco — 1.1%
263
Altria Group, Inc.
11,980
Total Common Stocks
1,127,530
(Cost $1,093,229)
MONEY MARKET FUNDS — 0.1%
737
Dreyfus Government Cash
Management Fund,
Institutional Shares -
5.19% (b)
737
(Cost $737)
Total Investments — 99.9%
1,128,267
(Cost $1,093,966)
Net Other Assets and
Liabilities — 0.1%
944
Net Assets — 100.0%
$1,129,211
 
(a)
Non-income producing security.
(b)
Rate shown reflects yield as of June 30, 2024.
 
Abbreviations throughout the Portfolio of Investments:
REITs
–  Real Estate Investment Trusts
Valuation Inputs
A summary of the inputs used to value the Fund’s investments as of June 30, 2024 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements):
 
 
Total
Value at
6/30/2024
Level 1
Quoted
Prices
Level 2
Significant
Observable
Inputs
Level 3
Significant
Unobservable
Inputs
Common Stocks*
$ 1,127,530
$ 1,127,530
$ —
$ —
Money Market Funds
 737
 737
 —
 —
Total Investments
$1,128,267
$1,128,267
$—
$—
 
*
See Portfolio of Investments for industry breakout.
See Notes to Financial Statements
Page 11
First Trust Exchange-Traded Fund
Statements of Assets and Liabilities
June 30, 2024 (Unaudited)
 
 
First Trust
Dividend
StrengthTM ETF
(FTDS)
First Trust Dow
30 Equal Weight
ETF
(EDOW)
First Trust Lunt
U.S. Factor
Rotation ETF
(FCTR)
First Trust S&P
500 Diversified
Free Cash Flow
ETF
(FCFY)
ASSETS:
Investments, at value
$21,823,352
$227,899,766
$71,374,770
$1,128,267
Receivables:
Dividends
29,460
139,535
57,430
1,480
Investment securities sold
—
1,675,740
—
—
Reclaims
—
—
986
17
Prepaid expenses
2,082
—
—
—
Total Assets
21,854,894
229,715,041
71,433,186
1,129,764
 
LIABILITIES:
Payables:
Investment advisory fees
18,615
94,477
38,833
553
Audit and tax fees
15,560
—
—
—
Licensing fees
5,370
—
—
—
Shareholder reporting fees
3,333
—
—
—
Capital shares redeemed
—
1,676,612
—
—
Other liabilities
3,901
—
—
—
Total Liabilities
46,779
1,771,089
38,833
553
NET ASSETS
$21,808,115
$227,943,952
$71,394,353
$1,129,211
 
NET ASSETS consist of:
Paid-in capital
$23,387,166
$210,757,453
$226,872,380
$1,017,856
Par value
4,500
67,978
23,000
500
Accumulated distributable earnings (loss)
(1,583,551)
17,118,521
(155,501,027)
110,855
NET ASSETS
$21,808,115
$227,943,952
$71,394,353
$1,129,211
NET ASSET VALUE, per share
$48.46
$33.53
$31.04
$22.58
Number of shares outstanding (unlimited number of
shares authorized, par value $0.01 per share)
450,002
6,797,756
2,300,002
50,002
Investments, at cost
$20,405,768
$205,841,488
$70,190,320
$1,093,966
See Notes to Financial Statements
Page 12
First Trust Exchange-Traded Fund
Statements of Operations
For the Six Months Ended June 30, 2024 (Unaudited)
 
 
First Trust
Dividend
StrengthTM ETF
(FTDS)
First Trust Dow
30 Equal Weight
ETF
(EDOW)
First Trust Lunt
U.S. Factor
Rotation ETF
(FCTR)
First Trust S&P
500 Diversified
Free Cash Flow
ETF
(FCFY)
INVESTMENT INCOME:
Dividends
$298,265
$2,757,553
$525,808
$12,355
Foreign withholding tax
(1,079)
—
—
—
Total investment income
297,186
2,757,553
525,808
12,355
 
EXPENSES:
Investment advisory fees
53,779
 
597,174
 (a)
246,456
 (a)
3,390
 (a)
Audit and tax fees
14,844
—
—
—
Licensing fees
6,705
—
—
—
Accounting and administration fees
6,564
—
—
—
Trustees’ fees and expenses
3,935
—
—
—
Listing fees
3,277
—
—
—
Shareholder reporting fees
2,368
—
—
—
Custodian fees
1,207
—
—
—
Transfer agent fees
538
—
—
—
Legal fees
243
—
—
—
Other expenses
237
—
—
—
Total expenses
93,697
597,174
246,456
3,390
Less fees waived by the investment advisor
(18,405)
—
—
—
Net expenses
75,292
597,174
246,456
3,390
NET INVESTMENT INCOME (LOSS)
221,894
2,160,379
279,352
8,965
 
NET REALIZED AND UNREALIZED GAIN
(LOSS):
Net realized gain (loss) on:
Investments
(102,389)
(5,117,176)
13,331,840
(30,663)
In-kind redemptions
1,109,871
12,692,361
2,920,314
136,793
Net realized gain (loss)
1,007,482
7,575,185
16,252,154
106,130
Net change in unrealized appreciation (depreciation)
on investments
(81,596)
(1,019,812)
(7,751,129)
(75,176)
NET REALIZED AND UNREALIZED GAIN
(LOSS)
925,886
6,555,373
8,501,025
30,954
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS
$1,147,780
$8,715,752
$8,780,377
$39,919
 
(a)
Fund is subject to a unitary fee (see Note 3 in the Notes to Financial Statements).
See Notes to Financial Statements
Page 13
First Trust Exchange-Traded Fund
Statements of Changes in Net Assets
 
 
First Trust Dividend StrengthTM
ETF (FTDS)
First Trust Dow 30 Equal Weight
ETF (EDOW)
 
Six Months
Ended
6/30/2024 
(Unaudited)
Year
Ended
12/31/2023 
Six Months
Ended
6/30/2024 
(Unaudited)
Year
Ended
12/31/2023 
OPERATIONS:
Net investment income (loss)
$221,894
$450,804
$2,160,379
$4,297,401
Net realized gain (loss)
1,007,482
61,161
7,575,185
1,663,464
Net increase from payment by the advisor
—
—
—
—
Net change in unrealized appreciation (depreciation)
(81,596)
1,537,299
(1,019,812)
26,849,311
Net increase (decrease) in net assets resulting from
operations
1,147,780
2,049,264
8,715,752
32,810,176
 
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment operations
(207,091)
(471,657)
(2,122,469)
(4,442,650)
 
SHAREHOLDER TRANSACTIONS:
Proceeds from shares sold
4,774,522
 
4,423,244
 
21,745,417
 
91,112,400
 
Cost of shares redeemed
(4,815,253)
 
(4,219,995)
 
(49,997,502)
 
(28,151,210)
 
Net increase (decrease) in net assets resulting from
shareholder transactions
(40,731)
203,249
(28,252,085)
62,961,190
Total increase (decrease) in net assets
899,958
1,780,856
(21,658,802)
91,328,716
 
NET ASSETS:
Beginning of period
20,908,157
19,127,301
249,602,754
158,274,038
End of period
$21,808,115
$20,908,157
$227,943,952
$249,602,754
 
CHANGES IN SHARES OUTSTANDING:
Shares outstanding, beginning of period
450,002
450,002
7,647,756
5,497,756
Shares sold
100,000
100,000
650,000
3,050,000
Shares redeemed
(100,000)
(100,000)
(1,500,000)
(900,000)
Shares outstanding, end of period
450,002
450,002
6,797,756
7,647,756
 
(a)
Inception date is August 23, 2023, which is consistent with the commencement of investment operations and is the date the initial
creation units were established.
See Notes to Financial Statements
Page 14
 
First Trust Lunt U.S. Factor
Rotation ETF (FCTR)
First Trust S&P 500 Diversified
Free Cash Flow ETF (FCFY)
Six Months
Ended
6/30/2024 
(Unaudited)
Year
Ended
12/31/2023 
Six Months
Ended
6/30/2024 
(Unaudited)
Period
Ended
12/31/2023 (a)
$279,352
$1,597,245
$8,965
$7,605
16,252,154
(22,279,939)
106,130
(20,993)
—
25,082
—
—
(7,751,129)
8,371,862
(75,176)
109,477
8,780,377
(12,285,750)
39,919
96,089
(250,811)
(1,619,341)
(8,535)
(8,001)
1,539,159
 
1,226,028
 
1,098,052
 
2,026,277
 
(22,093,954)
 
(171,925,855)
 
(1,101,759)
 
(1,012,831)
 
(20,554,795)
(170,699,827)
(3,707)
1,013,446
(12,025,229)
(184,604,918)
27,677
1,101,534
83,419,582
268,024,500
1,101,534
—
$71,394,353
$83,419,582
$1,129,211
$1,101,534
3,000,002
9,600,002
50,002
—
50,000
50,000
50,000
100,002
(750,000)
(6,650,000)
(50,000)
(50,000)
2,300,002
3,000,002
50,002
50,002
See Notes to Financial Statements
Page 15
First Trust Exchange-Traded Fund
Financial Highlights
For a share outstanding throughout each period
First Trust Dividend StrengthTM ETF (FTDS)
 
 
Six Months
Ended
6/30/2024 
 (Unaudited)
Year Ended December 31,
 
2023
2022
2021
2020
2019
Net asset value, beginning of period
$46.46
$42.50
$50.45
$40.62
$36.20
$29.22
Income from investment operations:
Net investment income (loss)
0.49
  (a)
0.95
  (a)
0.90
 
0.39
 
0.35
 
0.40
 
Net realized and unrealized gain (loss)
1.97
 
4.01
 
(7.87
) 
9.80
 
4.47
 
6.99
 
Total from investment operations
2.46
4.96
(6.97
)
10.19
4.82
7.39
Distributions paid to shareholders from:
Net investment income
(0.46
) 
(1.00
) 
(0.98
) 
(0.36
) 
(0.40
) 
(0.41
) 
Net asset value, end of period
$48.46
 
$46.46
 
$42.50
 
$50.45
 
$40.62
 
$36.20
 
Total return (b)
5.28
% 
11.84
% 
(13.75
)% 
25.12
% 
13.65
% 
25.36
% 
 
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000’s)
$21,808
 
$20,908
 
$19,127
 
$25,223
 
$16,249
 
$18,100
 
Ratio of total expenses to average net assets
0.87
%  (c)
0.99
% 
1.04
% 
1.08
% 
1.16
% 
1.02
% 
Ratio of net expenses to average net assets
0.70
%  (c)
0.70
% 
0.70
% 
0.70
% 
0.70
% 
0.70
% 
Ratio of net investment income (loss) to average net
assets
2.06
%  (c)
2.22
% 
2.00
% 
0.84
% 
1.04
% 
1.20
% 
Portfolio turnover rate (d)
57
% 
104
% 
225
%  (e)
98
% 
125
% 
119
% 
 
(a)
Based on average shares outstanding.
(b)
Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all
distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not
reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is
calculated for the time period presented and is not annualized for periods of less than a year. The total returns would have been lower if certain
fees had not been waived and expenses reimbursed by the investment advisor.
(c)
Annualized.
(d)
Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities
received or delivered from processing creations or redemptions and in-kind transactions.
(e)
The variation in the portfolio turnover rate is due to the change in the Fund’s underlying index effective April 29, 2022, which resulted in a
complete rebalance of the Fund’s portfolio.
See Notes to Financial Statements
Page 16
First Trust Exchange-Traded Fund
Financial Highlights (Continued)
For a share outstanding throughout each period
First Trust Dow 30 Equal Weight ETF (EDOW)
 
 
Six Months
Ended
6/30/2024 
 (Unaudited)
Year Ended December 31,
 
2023
2022
2021
2020
2019
Net asset value, beginning of period
$32.64
$28.79
$31.75
$27.19
$26.11
$21.43
Income from investment operations:
Net investment income (loss)
0.30
  (a)
0.63
  (a)
0.55
 
0.48
 
0.50
 
0.47
 
Net realized and unrealized gain (loss)
0.89
 
3.85
 
(2.96
) 
4.56
 
1.08
 
4.70
 
Total from investment operations
1.19
4.48
(2.41
)
5.04
1.58
5.17
Distributions paid to shareholders from:
Net investment income
(0.30
) 
(0.63
) 
(0.55
) 
(0.48
) 
(0.50
) 
(0.49
) 
Net asset value, end of period
$33.53
 
$32.64
 
$28.79
 
$31.75
 
$27.19
 
$26.11
 
Total return (b)
3.63
% 
15.74
% 
(7.52
)% 
18.63
% 
6.41
% 
24.27
% 
 
Ratios to average net assets/supplemental
data:
Net assets, end of period (in 000’s)
$227,944
 
$249,603
 
$158,274
 
$138,042
 
$71,994
 
$43,077
 
Ratio of total expenses to average net assets
0.50
%  (c)
0.50
% 
0.50
% 
0.50
% 
0.50
% 
0.50
% 
Ratio of net investment income (loss) to average
net assets
1.81
%  (c)
2.10
% 
1.95
% 
1.70
% 
2.11
% 
1.99
% 
Portfolio turnover rate (d)
12
% 
16
% 
17
% 
14
% 
31
% 
13
% 
 
(a)
Based on average shares outstanding.
(b)
Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all
distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not
reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is
calculated for the time period presented and is not annualized for periods of less than a year.
(c)
Annualized.
(d)
Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities
received or delivered from processing creations or redemptions and in-kind transactions.
See Notes to Financial Statements
Page 17
First Trust Exchange-Traded Fund
Financial Highlights (Continued)
For a share outstanding throughout each period
First Trust Lunt U.S. Factor Rotation ETF (FCTR)
 
 
Six Months
Ended
6/30/2024 
 (Unaudited)
Year Ended December 31,
 
2023
2022
2021
2020
2019
Net asset value, beginning of period
$27.81
$27.92
$35.55
$29.47
$22.80
$17.67
Income from investment operations:
Net investment income (loss)
0.11
  (a)
0.26
  (a)
0.38
 
0.17
 
0.12
 
0.23
 
Net realized and unrealized gain (loss)
3.23
 
(0.08
)  (b)
(7.62
) 
6.07
 
6.68
 
5.12
 
Total from investment operations
3.34
0.18
(7.24
)
6.24
6.80
5.35
Distributions paid to shareholders from:
Net investment income
(0.11
) 
(0.29
) 
(0.39
) 
(0.16
) 
(0.13
) 
(0.22
) 
Net asset value, end of period
$31.04
 
$27.81
 
$27.92
 
$35.55
 
$29.47
 
$22.80
 
Total return (c)
12.00
% 
0.68
%  (b)
(20.37
)% 
21.22
% 
30.02
% 
30.35
% 
 
Ratios to average net assets/supplemental
data:
Net assets, end of period (in 000’s)
$71,394
 
$83,420
 
$268,025
 
$663,005
 
$131,157
 
$62,696
 
Ratio of total expenses to average net assets
0.65
%  (d)
0.65
% 
0.65
% 
0.65
% 
0.65
% 
0.65
% 
Ratio of net investment income (loss) to average
net assets
0.74
%  (d)
0.97
% 
1.13
% 
0.52
% 
0.42
% 
1.17
% 
Portfolio turnover rate (e)
220
% 
562
% 
379
% 
307
% 
460
% 
246
% 
 
(a)
Based on average shares outstanding.
(b)
The Fund received a payment from the advisor in the amount of $25,082, which represents less than $0.01 per share. Since the advisor
reimbursed the Fund, there was no effect on the Fund’s total return.
(c)
Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all
distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not
reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is
calculated for the time period presented and is not annualized for periods of less than a year.
(d)
Annualized.
(e)
Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities
received or delivered from processing creations or redemptions and in-kind transactions.
See Notes to Financial Statements
Page 18
First Trust Exchange-Traded Fund
Financial Highlights (Continued)
For a share outstanding throughout each period
First Trust S&P 500 Diversified Free Cash Flow ETF (FCFY)
 
 
Six Months
Ended
6/30/2024 
 (Unaudited)
Period
Ended
12/31/2023  (a)
 
Net asset value, beginning of period
$22.03
$20.13
Income from investment operations:
Net investment income (loss) (b)
0.18
 
0.14
 
Net realized and unrealized gain (loss)
0.54
 
1.92
 
Total from investment operations
0.72
2.06
Distributions paid to shareholders from:
Net investment income
(0.17
) 
(0.16
) 
Net asset value, end of period
$22.58
 
$22.03
 
Total return (c)
3.26
% 
10.23
% 
 
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000’s)
$1,129
 
$1,102
 
Ratio of total expenses to average net assets
0.60
%  (d)
0.60
%  (d)
Ratio of net investment income (loss) to average net assets
1.59
%  (d)
1.91
%  (d)
Portfolio turnover rate (e)
30
% 
37
% 
 
(a)
Inception date is August 23, 2023, which is consistent with the commencement of investment operations and is the date the initial creation units
were established.
(b)
Based on average shares outstanding.
(c)
Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all
distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not
reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is
calculated for the time period presented and is not annualized for periods of less than a year.
(d)
Annualized.
(e)
Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities
received or delivered from processing creations or redemptions and in-kind transactions.
See Notes to Financial Statements
Page 19
Notes to Financial Statements
First Trust Exchange-Traded Fund
June 30, 2024 (Unaudited)
1. Organization
First Trust Exchange-Traded Fund (the “Trust”) is an open-end management investment company organized as a Massachusetts business trust on August 8, 2003, and is registered with the Securities and Exchange Commission under the Investment Company Act of 1940, as amended (the “1940 Act”).
This report covers the four funds (each a “Fund” and collectively, the “Funds”) listed below:
 
First Trust Dividend StrengthTM ETF – (Nasdaq, Inc. (“Nasdaq”) ticker “FTDS”)
First Trust Dow 30 Equal Weight ETF – (NYSE Arca, Inc. (“NYSE Arca”) ticker “EDOW”)
First Trust Lunt U.S. Factor Rotation ETF – (Cboe BZX Exchange, Inc. ticker “FCTR”)
First Trust S&P 500 Diversified Free Cash Flow ETF – (NYSE Arca ticker “FCFY”)
FCFY operates as a non-diversified series of the Trust. Each of FTDS, EDOW and FCTR operates as a diversified open-end management investment company as defined in Section 5(b) of the 1940 Act. Each Fund represents a separate series of shares of beneficial interest in the Trust. Unlike conventional mutual funds, each Fund issues and redeems shares on a continuous basis at net asset value (“NAV”), only in large blocks of shares known as “Creation Units.” The investment objective of each Fund is to seek investment results that correspond generally to the price and yield (before the Fund’s fees and expenses) of the following indices:
 
Fund
Index
First Trust Dividend StrengthTM ETF
The Dividend StrengthTM Index
First Trust Dow 30 Equal Weight ETF
Dow Jones Industrial Average® Equal Weight Index
First Trust Lunt U.S. Factor Rotation ETF
Lunt Capital Large Cap Factor Rotation Index
First Trust S&P 500 Diversified Free Cash Flow ETF
S&P 500® Sector-Neutral FCF Index
2. Significant Accounting Policies
The Funds are each considered an investment company and follow accounting and reporting guidance under Financial Accounting Standards Board Accounting Standards Codification Topic 946, “Financial Services-Investment Companies.” The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of the financial statements. The preparation of the financial statements in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.
A. Portfolio Valuation
Each Fund’s NAV is determined daily as of the close of regular trading on the New York Stock Exchange (“NYSE”), normally 4:00 p.m. Eastern time, on each day the NYSE is open for trading. If the NYSE closes early on a valuation day, the NAV is determined as of that time. Each Fund’s NAV is calculated by dividing the value of all assets of each Fund (including accrued interest and dividends), less all liabilities (including accrued expenses and dividends declared but unpaid), by the total number of shares outstanding.
Each Fund’s investments are valued daily at market value or, in the absence of market value with respect to any portfolio securities, at fair value. Market value prices represent readily available market quotations such as last sale or official closing prices from a national or foreign exchange (i.e., a regulated market) and are primarily obtained from third-party pricing services. Fair value prices represent any prices not considered market value prices and are either obtained from a third-party pricing service or are determined by the Pricing Committee of the Funds’ investment advisor, First Trust Advisors L.P. (“First Trust” or the “Advisor”), in accordance with valuation procedures approved by the Trust’s Board of Trustees, and in accordance with provisions of the 1940 Act and rules thereunder. Investments valued by the Advisor’s Pricing Committee, if any, are footnoted as such in the footnotes to the Portfolio of Investments. Each Fund’s investments are valued as follows:
Common stocks and other equity securities listed on any national or foreign exchange (excluding Nasdaq and the London Stock Exchange Alternative Investment Market (“AIM”)) are valued at the last sale price on the exchange on which they are principally traded or, for Nasdaq and AIM securities, the official closing price. Securities traded on more than one securities exchange are valued at the last sale price or official closing price, as applicable, at the close of the securities exchange representing the primary exchange for such securities.
Shares of open-end funds are valued based on NAV per share.
Page 20
Notes to Financial Statements (Continued)
First Trust Exchange-Traded Fund
June 30, 2024 (Unaudited)
Equity securities traded in an over-the-counter market are valued at the close price or the last trade price.
Overnight repurchase agreements are valued at amortized cost when it represents the most appropriate reflection of fair market value.
Certain securities may not be able to be priced by pre-established pricing methods. Such securities may be valued by the Advisor’s Pricing Committee at fair value. These securities generally include, but are not limited to, restricted securities (securities which may not be publicly sold without registration under the Securities Act of 1933, as amended) for which a third-party pricing service is unable to provide a market price; securities whose trading has been formally suspended; a security whose market or fair value price is not available from a pre-established pricing source; a security with respect to which an event has occurred that is likely to materially affect the value of the security after the market has closed but before the calculation of a Fund’s NAV or make it difficult or impossible to obtain a reliable market quotation; and a security whose price, as provided by the third-party pricing service, does not reflect the security’s fair value. As a general principle, the current fair value of a security would appear to be the amount which the owner might reasonably expect to receive for the security upon its current sale. When fair value prices are used, generally they will differ from market quotations or official closing prices on the applicable exchanges. A variety of factors may be considered in determining the fair value of such securities, including, but not limited to, the following:
 1)
the last sale price on the exchange on which they are principally traded or, for Nasdaq and AIM securities, the official closing price;
 2)
the type of security;
 3)
the size of the holding;
 4)
the initial cost of the security;
 5)
transactions in comparable securities;
 6)
price quotes from dealers and/or third-party pricing services;
 7)
relationships among various securities;
 8)
information obtained by contacting the issuer, analysts, or the appropriate stock exchange;
 9)
an analysis of the issuer’s financial statements;
10)
the existence of merger proposals or tender offers that might affect the value of the security; and
11)
other relevant factors.
In addition, differences between the prices used to calculate a Fund’s NAV and the prices used by such Fund’s corresponding index could result in a difference between a Fund’s performance and the performance of its underlying index.
The Funds are subject to fair value accounting standards that define fair value, establish the framework for measuring fair value and provide a three-level hierarchy for fair valuation based upon the inputs to the valuation as of the measurement date. The three levels of the fair value hierarchy are as follows:
•  Level 1 – Level 1 inputs are quoted prices in active markets for identical investments. An active market is a market in which transactions for the investment occur with sufficient frequency and volume to provide pricing information on an ongoing basis.
•  Level 2 – Level 2 inputs are observable inputs, either directly or indirectly, and include the following:
o  Quoted prices for similar investments in active markets.
o  Quoted prices for identical or similar investments in markets that are non-active. A non-active market is a market where there are few transactions for the investment, the prices are not current, or price quotations vary substantially either over time or among market makers, or in which little information is released publicly.
o  Inputs other than quoted prices that are observable for the investment (for example, interest rates and yield curves observable at commonly quoted intervals, volatilities, prepayment speeds, loss severities, credit risks, and default rates).
o  Inputs that are derived principally from or corroborated by observable market data by correlation or other means.
•  Level 3 – Level 3 inputs are unobservable inputs. Unobservable inputs may reflect the reporting entity’s own assumptions about the assumptions that market participants would use in pricing the investment.
The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in those investments. A summary of the inputs used to value each Fund’s investments as of June 30, 2024, is included with each Fund’s Portfolio of Investments.
Page 21
Notes to Financial Statements (Continued)
First Trust Exchange-Traded Fund
June 30, 2024 (Unaudited)
B. Securities Transactions and Investment Income
Securities transactions are recorded as of the trade date. Realized gains and losses from securities transactions are recorded on the identified cost basis. Dividend income is recorded on the ex-dividend date. Interest income, if any, is recorded on the accrual basis.
Withholding taxes and tax reclaims on foreign dividends have been provided for in accordance with each Fund’s understanding of the applicable country’s tax rules and rates.
Distributions received from a Fund’s investments in real estate investment trusts (“REITs”) may be comprised of return of capital, capital gains, and income. The actual character of the amounts received during the year are not known until after the REITs’ fiscal year end. A Fund records the character of distributions received from the REITs during the year based on estimates available. The characterization of distributions received by a Fund may be subsequently revised based on information received from the REITs after their tax reporting periods conclude.
C. Offsetting on the Statements of Assets and Liabilities
Offsetting assets and liabilities requires entities to disclose both gross and net information about instruments and transactions eligible for offset on the Statements of Assets and Liabilities and disclose instruments and transactions subject to master netting or similar agreements. These disclosure requirements are intended to help investors and other financial statement users better assess the effect or potential effect of offsetting arrangements on a Fund’s financial position. The transactions subject to offsetting disclosures are derivative instruments, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions.
This disclosure, if applicable, is included within each Fund’s Portfolio of Investments under the heading “Offsetting Assets and Liabilities.” For financial reporting purposes, the Funds do not offset financial assets and financial liabilities that are subject to master netting arrangements (“MNAs”) or similar agreements on the Statements of Assets and Liabilities. MNAs provide the right, in the event of default (including bankruptcy and insolvency), for the non-defaulting counterparty to liquidate the collateral and calculate the net exposure to the defaulting party or request additional collateral.
D. Securities Lending
The Funds may lend securities representing up to 33 1/3% of the value of their total assets to broker-dealers, banks and other institutions to generate additional income. When a Fund loans its portfolio securities, it will receive, at the inception of each loan, collateral equal to at least 102% (for domestic securities) or 105% (for international securities) of the market value of the loaned securities. The collateral amount is valued at the beginning of each business day and is compared to the market value of the loaned securities from the prior business day to determine if additional collateral is required. If additional collateral is required, a request is sent to the borrower. Securities lending involves the risk that the Fund may lose money because the borrower of the Fund’s loaned securities fails to return the securities in a timely manner or at all. The Fund could also lose money in the event of (i) a decline in the value of the collateral provided for the loaned securities, (ii) a decline in the value of any investments made with cash collateral or (iii) an increase in the value of the loaned securities if the borrower does not increase the collateral accordingly and the borrower fails to return the securities. These events could also trigger adverse tax consequences for the Funds.
Under the Funds’ Securities Lending Agency Agreement, the securities lending agent will generally bear the risk that a borrower may default on its obligation to return loaned securities. Brown Brothers Harriman & Co. (“BBH”) acts as the Funds’ securities lending agent and is responsible for executing the lending of the portfolio securities to creditworthy borrowers. The Funds, however, will be responsible for the risks associated with the investment of cash collateral. A Fund may lose money on its investment of cash collateral, which may affect its ability to repay the collateral to the borrower without the use of other Fund assets. Each Fund that engages in securities lending receives compensation (net of any rebate and securities lending agent fees) for lending its securities. Compensation can be in the form of fees received from the securities lending agent or dividends or interest earned from the investment of cash collateral. The fees received from the securities lending agent are accrued daily. The dividend and interest earned on the securities loaned is accounted for in the same manner as other dividend and interest income. At June 30, 2024, none of the Funds had securities in the securities lending program. During the six months ended June 30, 2024, none of the Funds participated in the securities lending program.
In the event of a default by a borrower with respect to any loan, BBH will exercise any and all remedies provided under the applicable borrower agreement to make the Funds whole. These remedies include purchasing replacement securities by applying the collateral held from the defaulting broker against the purchase cost of the replacement securities. If, despite such efforts by BBH to exercise
Page 22
Notes to Financial Statements (Continued)
First Trust Exchange-Traded Fund
June 30, 2024 (Unaudited)
these remedies, a Fund sustains losses as a result of a borrower’s default, BBH will indemnify the Fund by purchasing replacement securities at its own expense, or paying the Fund an amount equal to the market value of the replacement securities, subject to certain limitations which are set forth in detail in the Securities Lending Agency Agreement between the Trust on behalf of the Funds and BBH.
E. Repurchase Agreements
Repurchase agreements involve the purchase of securities subject to the seller’s agreement to repurchase the securities at a mutually agreed upon date and price, under the terms of a Master Repurchase Agreement (“MRA”). During the term of a repurchase agreement, the value of the underlying securities held as collateral on behalf of a Fund, including accrued interest, is required to exceed the value of the repurchase agreement, including accrued interest. The underlying securities for all repurchase agreements are held at the Funds’ custodian or designated sub-custodians under tri-party repurchase agreements.
MRAs govern transactions between a Fund and select counterparties. The MRAs contain provisions for, among other things, initiation, income payments, events of default, and maintenance of collateral for repurchase agreements.
Repurchase agreements received for lending securities are collateralized by U.S. Treasury securities. The U.S. Treasury securities are held in a joint custody account at BBH on behalf of the Funds participating in the securities lending program. In the event the counterparty defaults on the repurchase agreement, the U.S. Treasury securities can either be maintained as part of a Fund’s portfolio or sold for cash. A Fund could suffer a loss to the extent that the proceeds from the sale of the underlying collateral held by the Fund are less than the repurchase price and the Fund’s costs associated with the delay and enforcement of the MRA.
While the Funds may invest in repurchase agreements, any repurchase agreements held by the Funds during the six months ended June 30, 2024, were received as collateral for lending securities. There were no repurchase agreements held by the Funds as of June 30, 2024.
F. Dividends and Distributions to Shareholders
Dividends from net investment income of each Fund, if any, are declared and paid quarterly, or as the Board of Trustees may determine from time to time. Distributions of net realized capital gains earned by each Fund, if any, are distributed at least annually. Each Fund may also designate a portion of the amount paid to redeeming shareholders as a distribution for tax purposes.
Distributions from net investment income and realized capital gains are determined in accordance with federal income tax regulations, which may differ from U.S. GAAP. Certain capital accounts in the financial statements are periodically adjusted for permanent differences in order to reflect their tax character. These permanent differences are primarily due to the varying treatment of income and gain/loss on portfolio securities held by the Funds and have no impact on net assets or NAV per share. Temporary differences, which arise from recognizing certain items of income, expense and gain/loss in different periods for financial statement and tax purposes, will reverse at some time in the future.
The tax character of distributions paid by each Fund during the fiscal period ended December 31, 2023 was as follows:
 
 
Distributions
paid from
Ordinary
Income
Distributions
paid from
Capital
Gains
Distributions
paid from
Return of
Capital
First Trust Dividend StrengthTM ETF
$471,657
$—
$—
First Trust Dow 30 Equal Weight ETF
4,442,650
—
—
First Trust Lunt U.S. Factor Rotation ETF
1,619,341
—
—
First Trust S&P 500 Diversified Free Cash Flow ETF
8,001
—
—
Page 23
Notes to Financial Statements (Continued)
First Trust Exchange-Traded Fund
June 30, 2024 (Unaudited)
As of December 31, 2023, the components of distributable earnings on a tax basis for each Fund were as follows:
 
 
Undistributed
Ordinary
Income
Accumulated
Capital and
Other
Gain (Loss)
Net
Unrealized
Appreciation
(Depreciation)
First Trust Dividend StrengthTM ETF
$—
$(4,005,838
)
$1,481,598
First Trust Dow 30 Equal Weight ETF
—
(7,178,441
)
17,703,679
First Trust Lunt U.S. Factor Rotation ETF
—
(171,622,503
)
7,591,910
First Trust S&P 500 Diversified Free Cash Flow ETF
—
(29,489
)
108,960
G. Income Taxes
Each Fund intends to qualify or continue to qualify as a regulated investment company by complying with the requirements under Subchapter M of the Internal Revenue Code of 1986, as amended, which includes distributing substantially all of its net investment income and net realized gains to shareholders. Accordingly, no provision has been made for federal and state income taxes. However, due to the timing and amount of distributions, each Fund may be subject to an excise tax of 4% of the amount by which approximately 98% of each Fund’s taxable income exceeds the distributions from such taxable income for the calendar year.
The Funds are subject to accounting standards that establish a minimum threshold for recognizing, and a system for measuring, the benefits of a tax position taken or expected to be taken in a tax return. For FTDS, EDOW, and FCTR, the taxable years ended 2020, 2021, 2022, and 2023 remain open to federal and state audit. For FCFY, the taxable period ended 2023 remains open to federal and state audit. As of June 30, 2024, management has evaluated the application of these standards to the Funds and has determined that no provision for income tax is required in the Funds’ financial statements for uncertain tax positions.
Each Fund intends to utilize provisions of the federal income tax laws, which allow it to carry a realized capital loss forward indefinitely following the year of the loss and offset such loss against any future realized capital gains. Each Fund is subject to certain limitations under U.S. tax rules on the use of capital loss carryforwards and net unrealized built-in losses. These limitations apply when there has been a 50% change in ownership. At December 31, 2023, for federal income tax purposes, each applicable Fund had a capital loss carryforward available that is shown in the following table, to the extent provided by regulations, to offset future capital gains. To the extent that these loss carryforwards are used to offset future capital gains, it is probable that the capital gains so offset will not be distributed to each applicable Fund’s shareholders.
 
 
Non-Expiring
Capital Loss
Carryforwards
First Trust Dividend StrengthTM ETF
$4,005,838
First Trust Dow 30 Equal Weight ETF*
7,178,441
First Trust Lunt U.S. Factor Rotation ETF
171,622,503
First Trust S&P 500 Diversified Free Cash Flow ETF
29,489
 
*
$3,196,504 of First Trust Dow 30 Equal Weight ETF’s non-expiring net capital losses is subject to loss limitation resulting from
reorganization activity. This limitation generally reduces the utilization of these losses to a maximum of $212,620 per year.
Certain losses realized during the current fiscal period may be deferred and treated as occurring on the first day of the following fiscal year for federal income tax purposes. For the fiscal period ended December 31, 2023, the Funds had no net late year ordinary or capital losses.
As of June 30, 2024, the aggregate cost, gross unrealized appreciation, gross unrealized depreciation, and net unrealized appreciation/(depreciation) on investments (including short positions and derivatives, if any) for federal income tax purposes were as follows:
 
 
Tax Cost
Gross
Unrealized
Appreciation
Gross
Unrealized
(Depreciation)
Net Unrealized
Appreciation
(Depreciation)
First Trust Dividend StrengthTM ETF
$20,405,768
$1,916,900
$(499,316
)
$1,417,584
First Trust Dow 30 Equal Weight ETF
205,841,488
28,480,283
(6,422,005
)
22,058,278
Page 24
Notes to Financial Statements (Continued)
First Trust Exchange-Traded Fund
June 30, 2024 (Unaudited)
 
Tax Cost
Gross
Unrealized
Appreciation
Gross
Unrealized
(Depreciation)
Net Unrealized
Appreciation
(Depreciation)
First Trust Lunt U.S. Factor Rotation ETF
$70,190,320
$3,270,283
$(2,085,833
)
$1,184,450
First Trust S&P 500 Diversified Free Cash Flow ETF
1,093,966
67,241
(32,940
)
34,301
H. Expenses
Expenses that are directly related to First Trust Dividend StrengthTM ETF (the “Non-Unitary Fee Fund”) are charged directly to the Fund. Expenses for First Trust Dow 30 Equal Weight ETF, First Trust Lunt U.S. Factor Rotation ETF, and First Trust S&P 500 Diversified Free Cash Flow ETF (the “Unitary Fee Funds”), other than excluded expenses (discussed in Note 3), are paid by the Advisor. General expenses of the Trust are allocated to all the Funds based upon the net assets of each Fund.
First Trust has entered into licensing agreements with each of the following “Licensors” for the respective Funds:
 
Fund
Licensor
First Trust Dividend StrengthTM ETF
Nasdaq, Inc.
First Trust Dow 30 Equal Weight ETF
S&P Dow Jones Indices LLC
First Trust Lunt U.S. Factor Rotation ETF
Lunt Capital Management, Inc.
First Trust S&P 500 Diversified Free Cash Flow ETF
S&P Dow Jones Indices LLC
The respective license agreements allow for the use by First Trust of each Fund’s respective index and of certain trademarks and trade names of the respective Licensors. The Funds are sub-licensees to the applicable license agreements. The Funds, except for the Unitary Fee Funds, are required to pay licensing fees, which are shown on the Statements of Operations. The licensing fees for the Unitary Fee Funds are paid by First Trust from the unitary investment advisory fees it receives from each of these Funds.
3. Investment Advisory Fee, Affiliated Transactions and Other Fee Arrangements
First Trust, the investment advisor to the Funds, is a limited partnership with one limited partner, Grace Partners of DuPage L.P., and one general partner, The Charger Corporation. The Charger Corporation is an Illinois corporation controlled by James A. Bowen, Chief Executive Officer of First Trust. First Trust is responsible for the selection and ongoing monitoring of the securities in each Fund’s portfolio, managing the Funds’ business affairs and providing certain administrative services necessary for the management of the Funds.
The management fee payable by First Trust Dividend StrengthTM ETF to First Trust for these services will be reduced at certain levels of First Trust Dividend StrengthTM ETF’s net assets (“breakpoints”) and calculated pursuant to the following schedule:
 
Breakpoints
 
Fund net assets up to and including $2.5 billion
0.5000
%
Fund net assets greater than $2.5 billion up to and including $5 billion
0.4875
%
Fund net assets greater than $5 billion up to and including $7.5 billion
0.4750
%
Fund net assets greater than $7.5 billion up to and including $10 billion
0.4625
%
Fund net assets greater than $10 billion up to and including $15 billion
0.4500
%
Fund net assets greater than $15 billion
0.4250
%
For the First Trust Dividend StrengthTM ETF, the Trust and the Advisor have entered into an Expense Reimbursement and Fee Waiver Agreement (“Agreement”) in which First Trust has agreed to waive fees and/or reimburse Fund expenses to the extent that the operating expenses of the Fund (excluding interest expense, brokerage commissions and other trading expenses, acquired fund fees and expenses, taxes and extraordinary expenses) exceed 0.70% of average daily net assets per year (the “Expense Cap”). The Expense Cap will be in effect until at least April 30, 2025.
For the Unitary Fee Funds, First Trust is paid an annual unitary management fee of such Fund’s average daily net assets and is responsible for the expenses of such Fund including the cost of transfer agency, custody, fund administration, legal, audit, licensing and other services, but excluding fee payments under the Investment Management Agreement, distribution and service fees pursuant to a Rule 12b-1 plan, if any, brokerage commissions and other expenses connected with the execution of portfolio transactions,
Page 25
Notes to Financial Statements (Continued)
First Trust Exchange-Traded Fund
June 30, 2024 (Unaudited)
acquired fund fees and expenses, taxes, interest, and extraordinary expenses. The annual unitary management fee payable by each Fund to First Trust for these services will be reduced at certain levels of each Fund’s net assets (“breakpoints”) and calculated pursuant to the following schedule:
 
Breakpoints
EDOW
FCTR
FCFY
Fund net assets up to and including $2.5 billion
0.5000
%
0.65000
%
0.600
%
Fund net assets greater than $2.5 billion up to and including $5 billion
0.4875
%
0.63375
%
0.585
%
Fund net assets greater than $5 billion up to and including $7.5 billion
0.4750
%
0.61750
%
0.570
%
Fund net assets greater than $7.5 billion up to and including $10 billion
0.4625
%
0.60125
%
0.555
%
Fund net assets greater than $10 billion up to and including $15 billion
0.4500
%
0.58500
%
0.540
%
Fund net assets greater than $15 billion
0.4250
%
0.55250
%
0.510
%
For the fiscal year ended December 31, 2023, FCTR received a payment from the Advisor in the amount of $25,082 in connection with a trade error.
The Trust has multiple service agreements with The Bank of New York Mellon (“BNY”). Under the service agreements, BNY performs custodial, fund accounting, certain administrative services, and transfer agency services for each Fund. As custodian, BNY is responsible for custody of each Fund’s assets. As fund accountant and administrator, BNY is responsible for maintaining the books and records of each Fund’s securities and cash. As transfer agent, BNY is responsible for maintaining shareholder records for each Fund. BNY is a subsidiary of The Bank of New York Mellon Corporation, a financial holding company.
Each Trustee who is not an officer or employee of First Trust, any sub-advisor or any of their affiliates (“Independent Trustees”) is paid a fixed annual retainer that is allocated equally among each fund in the First Trust Fund Complex. Each Independent Trustee is also paid an annual per fund fee that varies based on whether the fund is a closed-end or other actively managed fund, a target outcome fund or an index fund.
Additionally, the Chairs of the Audit Committee, Nominating and Governance Committee and Valuation Committee, the Vice Chair of the Audit Committee, the Lead Independent Trustee and the Vice Lead Independent Trustee are paid annual fees to serve in such capacities, with such compensation allocated pro rata among each fund in the First Trust Fund Complex based on net assets. Independent Trustees are reimbursed for travel and out-of-pocket expenses in connection with all meetings. The Committee Chairs, the Audit Committee Vice Chair, the Lead Independent Trustee and the Vice Lead Independent Trustee rotate periodically in serving in such capacities. The officers and “Interested” Trustee receive no compensation from the Trust for acting in such capacities.
4. Purchases and Sales of Securities
For the six months ended June 30, 2024, the cost of purchases and proceeds from sales of investments for each Fund, excluding short-term investments and in-kind transactions, were as follows:
 
 
Purchases
Sales
First Trust Dividend StrengthTM ETF
$12,198,318
$12,198,957
First Trust Dow 30 Equal Weight ETF
27,770,654
27,731,833
First Trust Lunt U.S. Factor Rotation ETF
166,994,538
166,905,609
First Trust S&P 500 Diversified Free Cash Flow ETF
339,936
340,023
For the six months ended June 30, 2024, the cost of in-kind purchases and proceeds from in-kind sales for each Fund were as follows:
 
 
Purchases
Sales
First Trust Dividend StrengthTM ETF
$4,773,845
$4,786,606
First Trust Dow 30 Equal Weight ETF
21,657,314
49,892,403
First Trust Lunt U.S. Factor Rotation ETF
1,535,378
22,098,474
First Trust S&P 500 Diversified Free Cash Flow ETF
1,097,035
1,100,331
5. Creations, Redemptions and Transaction Fees
Each Fund generally issues and redeems its shares in primary market transactions through a creation and redemption mechanism and does not sell or redeem individual shares. Instead, financial entities known as “Authorized Participants” have contractual arrangements with a Fund or one of the Fund’s service providers to purchase and redeem Fund shares directly with the Fund in Creation Units. Prior
Page 26
Notes to Financial Statements (Continued)
First Trust Exchange-Traded Fund
June 30, 2024 (Unaudited)
to the start of trading on every business day, a Fund publishes through the National Securities Clearing Corporation the “basket” of securities, cash or other assets that it will accept in exchange for a Creation Unit of the Fund’s shares. An Authorized Participant that wishes to effectuate a creation of a Fund’s shares deposits with the Fund the “basket” of securities, cash or other assets identified by the Fund that day, and then receives the Creation Unit of the Fund’s shares in return for those assets. After purchasing a Creation Unit, the Authorized Participant may continue to hold the Fund’s shares or sell them in the secondary market. The redemption process is the reverse of the purchase process: the Authorized Participant redeems a Creation Unit of a Fund’s shares for a basket of securities, cash or other assets. The combination of the creation and redemption process with secondary market trading in a Fund’s shares and underlying securities provides arbitrage opportunities that are designed to help keep the market price of a Fund’s shares at or close to the NAV per share of the Fund.
Each Fund imposes fees in connection with the purchase of Creation Units. These fees may vary based upon various fact-based circumstances, including, but not limited to, the composition of the securities included in the Creation Unit or the countries in which the transactions are settled. The price for each Creation Unit will equal the daily NAV per share of a Fund times the number of shares in a Creation Unit, plus the fees described above and, if applicable, any operational processing and brokerage costs, transfer fees, stamp taxes and part or all of the spread between the expected bid and offer side of the market related to the securities comprising the creation basket.
Each Fund also imposes fees in connection with the redemption of Creation Units. These fees may vary based upon various fact-based circumstances, including, but not limited to, the composition of the securities included in the Creation Unit or the countries in which the transactions are settled. The price received for each Creation Unit will equal the daily NAV per share of a Fund times the number of shares in a Creation Unit, minus the fees described above and, if applicable, any operational processing and brokerage costs, transfer fees, stamp taxes and part or all of the spread between the expected bid and offer side of the market related to the securities comprising the redemption basket. Investors who use the services of a broker or other such intermediary in addition to an Authorized Participant to effect a redemption of a Creation Unit may also be assessed an amount to cover the cost of such services. The redemption fee charged by a Fund will comply with Rule 22c-2 of the 1940 Act which limits redemption fees to no more than 2% of the value of the shares redeemed.
6. Distribution Plan
The Board of Trustees adopted a Distribution and Service Plan pursuant to Rule 12b-1 under the 1940 Act. In accordance with the Rule 12b-1 plan, the Funds are authorized to pay an amount up to 0.25% of their average daily net assets each year to reimburse First Trust Portfolios L.P. (“FTP”), the distributor of the Funds, for amounts expended to finance activities primarily intended to result in the sale of Creation Units or the provision of investor services. FTP may also use this amount to compensate securities dealers or other persons that are Authorized Participants for providing distribution assistance, including broker-dealer and shareholder support and educational and promotional services.
No 12b-1 fees are currently paid by the Funds, and pursuant to a contractual arrangement, no 12b-1 fees will be paid any time before April 30, 2025 for FTDS, EDOW, and FCTR, and August 22, 2025 for FCFY.
7. Indemnification
The Trust, on behalf of the Funds, has a variety of indemnification obligations under contracts with its service providers. The Trust’s maximum exposure under these arrangements is unknown. However, the Trust has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.
8. Subsequent Events
Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were issued and has determined that there were no subsequent events requiring recognition or disclosure in the financial statements that have not already been disclosed.
Page 27
Other Information
First Trust Exchange-Traded Fund
June 30, 2024 (Unaudited)
Changes in and Disagreements with Accountants (Item 8 of Form N-CSR)
There were no changes in or disagreements with the Funds’ accountants during the six months ended June 30, 2024.
Proxy Disclosures (Item 9 of Form N-CSR)
There were no matters submitted for vote by shareholders of any Fund during the six months ended June 30, 2024.
Remuneration Paid to Directors, Officers, and Others (Item 10 of Form N-CSR)
For the Non-Unitary Fee Fund (as defined in the Notes to Financial Statements), the applicable aggregate remuneration paid by the Fund during the period covered by the report is included in the Statements of Operations. For the Unitary Fee Funds (as defined in the Notes to Financial Statements), Independent Trustees and any member of any advisory board of each Fund are compensated through the unitary management fee paid by each Fund to the advisor and not directly by each Fund. The investment advisory fee paid is included in the Statements of Operations.
Statement Regarding the Basis for the Board’s Approval of Investment Advisory Contract (Item 11 of Form N-CSR)
The Board of Trustees of First Trust Exchange-Traded Fund (the “Trust”), including the Independent Trustees, unanimously approved the continuation of the Investment Management Agreements (as applicable to a specific Fund, the “Agreement” and collectively, the “Agreements”) with First Trust Advisors L.P. (the “Advisor”) on behalf of the following series of the Trust (each a “Fund” and collectively, the “Funds”):
First Trust Dividend StrengthTM ETF (FTDS)
First Trust Dow 30 Equal Weight ETF (EDOW)
First Trust Lunt U.S. Factor Rotation ETF (FCTR)
The Board approved the continuation of the Agreement for each Fund for a one-year period ending June 30, 2025 at a meeting held on June 2–3, 2024. The Board determined for each Fund that the continuation of the Agreement is in the best interests of the Fund in light of the nature, extent and quality of the services provided and such other matters as the Board considered to be relevant in the exercise of its business judgment.
To reach this determination for each Fund, the Board considered its duties under the Investment Company Act of 1940, as amended (the “1940 Act”), as well as under the general principles of state law, in reviewing and approving advisory contracts; the requirements of the 1940 Act in such matters; the fiduciary duty of investment advisors with respect to advisory agreements and compensation; the standards used by courts in determining whether investment company boards have fulfilled their duties; and the factors to be considered by the Board in voting on such agreements. At meetings held on April 16, 2024, April 25, 2024 and June 2–3, 2024, the Board, including the Independent Trustees, reviewed materials provided by the Advisor responding to requests for information from counsel to the Independent Trustees, submitted on behalf of the Independent Trustees, that, among other things, outlined: the services provided by the Advisor to each Fund (including the relevant personnel responsible for these services and their experience); the advisory fee rate schedule payable by FTDS and the unitary fee rate schedules payable by each of EDOW and FCTR (each a “Unitary Fee Fund” and collectively, the “Unitary Fee Funds”) as compared to fees charged to a peer group of funds (the “Expense Group”) and a broad peer universe of funds (the “Expense Universe”), each assembled by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent source, and as compared to fees charged to other clients of the Advisor, including other exchange-traded funds (“ETFs”) managed by the Advisor; the expense ratio of each Fund as compared to expense ratios of the funds in the Fund’s Expense Group and Expense Universe; performance information for each Fund, including comparisons of each Fund’s performance to that of one or more relevant benchmark indexes and to that of a performance group of funds and a broad performance universe of funds (the “Performance Universe”), each assembled by Broadridge; the nature of expenses incurred in providing services to each Fund and the potential for the Advisor to realize economies of scale, if any; profitability and other financial data for the Advisor; any indirect benefits to the Advisor and its affiliate, First Trust Portfolios L.P. (“FTP”); and information on the Advisor’s compliance program. The Board reviewed initial materials with the Advisor at the meeting held on April 25, 2024, prior to which the Independent Trustees and their counsel met separately to discuss the information provided by the Advisor. Following the April 25, 2024 meeting, counsel to the Independent Trustees, on behalf of the Independent Trustees, requested certain clarifications and supplements to the materials provided, and the information provided in response to those requests was considered at an executive session of the Independent Trustees and their counsel held prior to the June 2–3, 2024 meeting, as well as at the June meeting. The Board applied its business judgment to determine whether the arrangement between the Trust and the Advisor continues to be a reasonable business arrangement from each Fund’s perspective. The Board determined that, given the totality of the information provided with respect to the Agreements, the Board had
Page 28
Other Information (Continued)
First Trust Exchange-Traded Fund
June 30, 2024 (Unaudited)
received sufficient information to renew the Agreements. The Board considered that shareholders chose to invest or remain invested in a Fund knowing that the Advisor manages the Fund and knowing FTDS’s advisory fee and the Unitary Fee Funds’ unitary fees.
In reviewing the Agreement for each Fund, the Board considered the nature, extent and quality of the services provided by the Advisor under the Agreement. The Board considered that the Advisor is responsible for the overall management and administration of the Trust and each Fund and reviewed all of the services provided by the Advisor to the Funds, as well as the background and experience of the persons responsible for such services. In reviewing the services provided, the Board noted the compliance program that had been developed by the Advisor and considered that it includes a robust program for monitoring the Advisor’s and each Fund’s compliance with the 1940 Act, as well as each Fund’s compliance with its investment objective, policies and restrictions. The Board also considered a report from the Advisor with respect to its risk management functions related to the operation of the Funds. Finally, as part of the Board’s consideration of the Advisor’s services, the Advisor, in its written materials and at the April 25, 2024 meeting, described to the Board the scope of its ongoing investment in additional personnel and infrastructure to maintain and improve the quality of services provided to the Funds and the other funds in the First Trust Fund Complex. In light of the information presented and the considerations made, the Board concluded that the nature, extent and quality of the services provided to the Trust and each Fund by the Advisor under the Agreements have been and are expected to remain satisfactory and that the Advisor has managed each Fund consistent with its investment objective, policies and restrictions.
With respect to FTDS, the Board considered the advisory fee rate schedule payable by FTDS under the Agreement for the services provided. The Board considered that the Advisor agreed to extend the current expense cap for FTDS through April 30, 2026. The Board received and reviewed information showing the fee rates and expense ratios of the peer funds in FTDS’s Expense Group, as well as advisory and unitary fee rates charged by the Advisor to other fund (including ETFs) and non-fund clients, as applicable. Because FTDS’s Expense Group included peer funds that pay a unitary fee, the Board determined that expense ratios were the most relevant comparative data point. Based on the information provided, the Board noted that the total (net) expense ratio for FTDS was above the median total (net) expense ratio of the peer funds in its Expense Group. With respect to FTDS’s Expense Group, the Board discussed with Broadridge its methodology for assembling peer groups and discussed with the Advisor limitations in creating peer groups for index ETFs, including differences in underlying indexes and index-tracking methodologies that can result in greater management complexities across seemingly comparable ETFs, and different business models that may affect the pricing of services among ETF sponsors. The Board took these limitations and differences into account in considering the peer data. With respect to fees charged to other non-ETF clients, the Board considered differences between FTDS and other non-ETF clients that limited their comparability. In considering the advisory fee rate schedule for FTDS overall, the Board also considered the Advisor’s statement that it seeks to meet investor needs through innovative and value-added investment solutions and the Advisor’s demonstrated long-term commitment to FTDS and the other funds in the First Trust Fund Complex.
With respect to each Unitary Fee Fund, the Board considered the unitary fee rate schedule payable by each Fund under the applicable Agreement for the services provided. The Board considered that as part of the unitary fee the Advisor is responsible for each Fund’s expenses, including the cost of transfer agency, custody, fund administration, legal, audit and other services and license fees, if any, but excluding the fee payment under the applicable Agreement and interest, taxes, brokerage commissions and other expenses connected with the execution of portfolio transactions, distribution and service fees pursuant to a Rule 12b-1 plan, if any, and extraordinary expenses, if any. The Board received and reviewed information showing the fee rates and expense ratios of the peer funds in the Unitary Fee Funds’ Expense Groups, as well as advisory and unitary fee rates charged by the Advisor to other fund (including ETFs) and non-fund clients, as applicable. Because each Unitary Fee Fund pays a unitary fee, the Board determined that expense ratios were the most relevant comparative data point. Based on the information provided, the Board noted that the total (net) expense ratio for each Unitary Fee Fund was above the median total (net) expense ratio of the peer funds in its respective Expense Group. With respect to the Expense Groups for the Unitary Fee Funds, the Board discussed with Broadridge its methodology for assembling peer groups and discussed with the Advisor limitations in creating peer groups for index ETFs, including differences in underlying indexes and index-tracking methodologies that can result in greater management complexities across seemingly comparable ETFs and different business models that may affect the pricing of services among ETF sponsors. The Board took these limitations and differences into account in considering the peer data. With respect to fees charged to other non-ETF clients, the Board considered differences between the Unitary Fee Funds and other non-ETF clients that limited their comparability. In considering the unitary fee rate schedules for the Unitary Fee Funds overall, the Board also considered the Advisor’s statement that it seeks to meet investor needs through innovative and value-added investment solutions and the Advisor’s demonstrated long-term commitment to each Unitary Fee Fund and the other funds in the First Trust Fund Complex.
The Board considered performance information for each Fund. The Board noted the process it has established for monitoring each Fund’s performance and portfolio risk on an ongoing basis, which includes quarterly performance reporting from the Advisor for the
Page 29
Other Information (Continued)
First Trust Exchange-Traded Fund
June 30, 2024 (Unaudited)
Funds. The Board determined that this process continues to be effective for reviewing each Fund’s performance. The Board received and reviewed information for periods ended December 31, 2023 regarding the performance of each Fund’s underlying index, the correlation between each Fund’s performance and that of its underlying index, each Fund’s tracking difference and each Fund’s excess return as compared to its benchmark index. With respect to FTDS, the Board noted that during 2022, it approved changes to the Fund’s investment objective and, effective April 29, 2022, the Fund changed its name and ticker symbol and began tracking The Dividend Strength™ Index, and that the performance information included a blend of the old and new indexes. The Board also noted that during 2015, FTDS changed its underlying index. Based on the information provided for each Fund and its ongoing review of performance, the Board concluded that each Fund was correlated to its underlying index and that the tracking difference for each Fund was within a reasonable range. In addition, the Board reviewed data prepared by Broadridge comparing each Fund’s performance to that of its respective Performance Universe and to that of a broad-based benchmark index and noted the Advisor’s discussion of FCTR’s performance at the April 25, 2024 meeting. However, given each Fund’s objective of seeking investment results that correspond generally to the performance of its underlying index, the Board placed more emphasis on its review of correlation and tracking difference.
On the basis of all the information provided on the fees and expenses of FTDS, the unitary fees of the Unitary Fee Funds and the performance of each Fund and the ongoing oversight by the Board, the Board concluded that the advisory fee for FTDS and the unitary fee for each Unitary Fee Fund continue to be reasonable and appropriate in light of the nature, extent and quality of the services provided by the Advisor to each Fund under the Agreements.
The Board considered information and discussed with the Advisor whether there were any economies of scale in connection with providing advisory services to the Funds at current asset levels and whether the Funds may benefit from any economies of scale. The Board noted that the advisory fee rate schedule for FTDS and the unitary fee rate schedule for each Unitary Fee Fund include breakpoints pursuant to which the fee rate will be reduced as assets of the Fund meet certain thresholds. The Board considered the Advisor’s statement that it believes that its expenses relating to providing advisory services to the Funds will increase during the next twelve months as the Advisor continues to build infrastructure and add new staff. For the Unitary Fee Funds, the Board also noted that under the unitary fee structure, any reduction in expenses associated with the management and operations of the Unitary Fee Funds would benefit the Advisor, but that the unitary fee structure provides a level of certainty in expenses for shareholders of the Unitary Fee Funds. The Board concluded that the advisory fee rate schedule for FTDS and the unitary fee rate schedule for each Unitary Fee Fund reflect an appropriate level of sharing of any economies of scale that may be realized in the management of the Fund at current asset levels. The Board considered the revenues and allocated costs (including the allocation methodology) of the Advisor in serving as investment advisor to each Fund for the twelve months ended December 31, 2023 and the estimated profitability level for each Fund calculated by the Advisor based on such data, as well as complex-wide and product-line profitability data, for the same period. The Board noted the inherent limitations in the profitability analysis and concluded that, based on the information provided, the Advisor’s profitability level for each Fund was not unreasonable. In addition, the Board considered indirect benefits described by the Advisor that may be realized from its relationship with the Funds. The Board considered that the Advisor had identified as an indirect benefit to the Advisor and FTP their exposure to investors and brokers who, absent their exposure to the Funds, may have had no dealings with the Advisor or FTP, and noted that the Advisor does not utilize soft dollars in connection with the Funds. The Board concluded that the character and amount of potential indirect benefits to the Advisor were not unreasonable.
Based on all of the information considered and the conclusions reached, the Board, including the Independent Trustees, unanimously determined that the terms of the Agreements continue to be fair and reasonable and that the continuation of the Agreements is in the best interests of each Fund. No single factor was determinative in the Board’s analysis.
Disclaimer
Nasdaq® and The Dividend StrengthTM Index are registered trademarks and service marks of Nasdaq, Inc. (together with its affiliates hereinafter referred to as the “Corporations”) and are licensed for use by First Trust. The Funds have not been passed on by the Corporations as to their legality or suitability. The Funds are not issued, endorsed, sold or promoted by the Corporations. THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE FUNDS.
Dow Jones Industrial Average® Equal Weight Index and S&P 500® Sector-Neutral FCF Index are products of S&P Dow Jones Indices LLC or its affiliates (“SPDJI”) and have been licensed for use by First Trust. S&P® is a registered trademark of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by First Trust. The Funds are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, or their respective affiliates and none of such parties make any
Page 30
Other Information (Continued)
First Trust Exchange-Traded Fund
June 30, 2024 (Unaudited)
representation regarding the advisability of investing in such products nor do they have any liability for any errors, omissions, or interruptions of the S&P Dow Jones Indexes.
Lunt Capital Management, Inc. (“Lunt”) and the Lunt Capital Large Cap Factor Rotation Index (“Lunt Index”) are trademarks of Lunt and have been licensed for use for certain purposes by First Trust. The First Trust Lunt U.S. Factor Rotation ETF is based on the Lunt Index and is not sponsored, endorsed, sold or promoted by Lunt, and Lunt makes no representation regarding the advisability of trading in such fund. Lunt has contracted with Nasdaq, Inc. to calculate and maintain the Lunt Index. The Fund is not sponsored, endorsed, sold or promoted by Nasdaq, Inc. or its affiliates (Nasdaq, with its affiliates, hereinafter referred to as the “Corporations”). The Corporations have not passed on the legality or suitability of, or the accuracy or adequacy of descriptions and disclosures relating to, the Fund. The Corporations make no representation or warranty, express or implied to the owners of the fund or any member of the public regarding the advisability of investing in securities generally or in the fund particularly, or the ability of the Lunt Index to track general stock performance.
Page 31
 
 
 
Semi-Annual Consolidated
Financial Statements
and Other Information
For the Six Months Ended
June 30, 2024
 
First Trust Exchange-Traded Fund
 
FT Vest Gold Strategy Quarterly Buffer ETF (BGLD)
Table of Contents 
FT Vest Gold Strategy Quarterly Buffer ETF (BGLD)
Semi-Annual Consolidated Financial Statements and Other Information
June 30, 2024 
Performance and Risk Disclosure
There is no assurance that FT Vest Gold Strategy Quarterly Buffer ETF (the “Fund”) will achieve its investment objective. The Fund is subject to market risk, which is the possibility that the market values of securities owned by the Fund will decline and that the value of the Fund’s shares may therefore be less than what you paid for them. Accordingly, you can lose money by investing in the Fund.
Performance data quoted represents past performance, which is no guarantee of future results, and current performance may be lower or higher than the figures shown. For the most recent month-end performance figures, please visit www.ftportfolios.com or speak with your financial advisor. Investment returns, net asset value and share price will fluctuate and Fund shares, when sold, may be worth more or less than their original cost.
First Trust Advisors L.P., the Fund’s advisor, may also periodically provide additional information on Fund performance on the Fund’s webpage at www.ftportfolios.com.
How to Read This Report
This report contains information that may help you evaluate your investment in the Fund. It includes details about the Fund and presents data that provides insight into the Fund’s performance and investment approach.
The material risks of investing in the Fund are spelled out in its prospectus, statement of additional information, and other Fund regulatory filings.
FT Vest Gold Strategy Quarterly Buffer ETF (BGLD)
Consolidated Portfolio of Investments
June 30, 2024 (Unaudited)
 
Principal
Value
Description
Stated
Coupon
Stated
Maturity
Value
U.S. TREASURY BILLS — 93.8%
$27,813,700
U.S. Treasury Bill (a)
(b)
08/29/24
$27,574,386
(Cost $27,574,005)
 
 
 
Shares
Description
Value
MONEY MARKET FUNDS — 0.6%
181,259
Dreyfus Government Cash Management Fund, Institutional Shares - 5.19% (c)
181,259
(Cost $181,259)
Total Investments — 94.4%
27,755,645
(Cost $27,755,264)
 
Number of
Contracts
Description
Notional
Amount
Exercise
Price
Expiration
Date
Value
PURCHASED OPTIONS — 6.0%
Call Options Purchased — 6.0%
1,369
SPDR® Gold Shares
$29,434,869
$204.54
08/30/24
1,761,881
(Cost $2,011,766)
 
 
WRITTEN OPTIONS — (0.4)%
Call Options Written — (0.4)%
(1,369)
SPDR® Gold Shares
(29,434,869
)
236.18
08/30/24
(103,355
)
(Premiums received $55,589)
 
 
Put Options Written — (0.0)%
(1,369)
SPDR® Gold Shares
(29,434,869
)
183.01
08/30/24
(4,788
)
(Premiums received $157,292)
 
 
Total Written Options
(108,143
)
(Premiums received $212,881)
Net Other Assets and Liabilities — 0.0%
12,090
Net Assets — 100.0%
$29,421,473
 
(a)
All or a portion of this security is segregated as collateral for the options written. At June 30, 2024, the segregated value of this
security amounts to $4,627,996.
(b)
Zero coupon security.
(c)
Rate shown reflects yield as of June 30, 2024.
See Notes to Consolidated Financial Statements
Page 1
FT Vest Gold Strategy Quarterly Buffer ETF (BGLD)
Consolidated Portfolio of Investments (Continued)
June 30, 2024 (Unaudited)
Valuation Inputs
A summary of the inputs used to value the Fund’s investments as of June 30, 2024 is as follows (see Note 2A - Portfolio Valuation in the Notes to Consolidated Financial Statements):
 
ASSETS TABLE
 
Total
Value at
6/30/2024
Level 1
Quoted
Prices
Level 2
Significant
Observable
Inputs
Level 3
Significant
Unobservable
Inputs
U.S. Treasury Bills
$27,574,386
$—
$27,574,386
$—
Money Market Funds
181,259
181,259
—
—
Total Investments
27,755,645
181,259
27,574,386
—
Purchased Options
1,761,881
—
1,761,881
—
Total
$29,517,526
$181,259
$29,336,267
$—
 
LIABILITIES TABLE
 
Total
Value at
6/30/2024
Level 1
Quoted
Prices
Level 2
Significant
Observable
Inputs
Level 3
Significant
Unobservable
Inputs
Written Options
$(108,143
)
$—
$(108,143
)
$—
See Notes to Consolidated Financial Statements
Page 2
FT Vest Gold Strategy Quarterly Buffer ETF (BGLD)
Consolidated Statement of Assets and Liabilities
June 30, 2024 (Unaudited)
 
ASSETS:
Investments, at value
$27,755,645
Options contracts purchased, at value
1,761,881
Cash
7,666
Due from broker
398
Cash segregated as collateral for open written options contracts
16,290
Dividends receivable
6,450
Total Assets
29,548,330
 
LIABILITIES:
Options contracts written, at value
108,143
Investment advisory fees payable
18,714
Total Liabilities
126,857
NET ASSETS
$29,421,473
 
NET ASSETS consist of:
Paid-in capital
$27,583,642
Par value
14,500
Accumulated distributable earnings (loss)
1,823,331
NET ASSETS
$29,421,473
NET ASSET VALUE, per share
$20.29
Number of shares outstanding (unlimited number of shares authorized, par value $0.01 per share)
1,450,002
Investments, at cost
$27,755,264
Premiums paid on options contracts purchased
$2,011,766
Premiums received on options contracts written
$212,881
See Notes to Consolidated Financial Statements
Page 3
FT Vest Gold Strategy Quarterly Buffer ETF (BGLD)
Consolidated Statement of Operations
For the Six Months Ended June 30, 2024 (Unaudited)
 
INVESTMENT INCOME:
Interest
$597,618
Dividends
16,589
Total investment income
614,207
 
EXPENSES:
Investment advisory fees
113,355
 
Total expenses
113,355
NET INVESTMENT INCOME (LOSS)
500,852
 
NET REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) on:
Investments
62
Purchased options contracts
2,038,504
Written options contracts
(477,055)
Net realized gain (loss)
1,561,511
Net change in unrealized appreciation (depreciation) on:
Investments
(3,442)
Purchased options contracts
(282,591)
Written options contracts
(61,036)
Net change in unrealized appreciation (depreciation)
(347,069)
NET REALIZED AND UNREALIZED GAIN (LOSS)
1,214,442
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS
$1,715,294
See Notes to Consolidated Financial Statements
Page 4
FT Vest Gold Strategy Quarterly Buffer ETF (BGLD)
Consolidated Statements of Changes in Net Assets
 
 
Six Months
Ended
6/30/2024 
(Unaudited)
Year
Ended
12/31/2023 
OPERATIONS:
Net investment income (loss)
$500,852
$678,040
Net realized gain (loss)
1,561,511
1,984,835
Net change in unrealized appreciation (depreciation)
(347,069)
9,798
Net increase (decrease) in net assets resulting from operations
1,715,294
2,672,673
 
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment operations
—
(2,765,606)
Return of capital
—
(491,828)
Total distributions to shareholders
—
(3,257,434)
 
SHAREHOLDER TRANSACTIONS:
Proceeds from shares sold
9,968,646
 
29,030,258
 
Cost of shares redeemed
(11,418,312)
 
(12,168,255)
 
Net increase (decrease) in net assets resulting from shareholder transactions
(1,449,666)
16,862,003
Total increase (decrease) in net assets
265,628
16,277,242
 
NET ASSETS:
Beginning of period
29,155,845
12,878,603
End of period
$29,421,473
$29,155,845
 
CHANGES IN SHARES OUTSTANDING:
Shares outstanding, beginning of period
1,550,002
700,002
Shares sold
500,000
1,500,000
Shares redeemed
(600,000)
(650,000)
Shares outstanding, end of period
1,450,002
1,550,002
See Notes to Consolidated Financial Statements
Page 5
FT Vest Gold Strategy Quarterly Buffer ETF (BGLD)
Consolidated Financial Highlights
For a share outstanding throughout each period
 
 
Six Months
Ended
6/30/2024 
 (Unaudited)
Year Ended December 31,
Period
Ended
12/31/2021  (a)
 
2023
2022
Net asset value, beginning of period
$18.81
$18.40
$18.93
$19.99
Income from investment operations:
Net investment income (loss)
0.38
  (b)
0.74
  (b)
0.08
 
(0.08
) 
Net realized and unrealized gain (loss)
1.10
 
1.64
 
(0.54
) 
(0.98
) 
Total from investment operations
1.48
2.38
(0.46
)
(1.06
)
Distributions paid to shareholders from:
Net investment income
—
 
(1.67
) 
(0.05
) 
—
 
Return of capital
—
 
(0.30
) 
(0.02
) 
—
 
Total distributions
—
 
(1.97
) 
(0.07
) 
—
 
Net asset value, end of period
$20.29
 
$18.81
 
$18.40
 
$18.93
 
Total return (c)
7.87
% 
13.15
% 
(2.41
)% 
(5.30
)% 
 
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000’s)
$29,421
 
$29,156
 
$12,879
 
$17,980
 
Ratio of total expenses to average net assets
0.90
%  (d)  (e)
0.90
% 
0.90
% 
0.90
%  (d)
Ratio of net investment income (loss) to average net assets
3.98
%  (d)  (e)
3.82
% 
0.37
% 
(0.87
)%  (d)
Portfolio turnover rate (f)
0
% 
0
% 
0
% 
0
% 
 
(a)
Inception date is January 20, 2021, which is consistent with the commencement of investment operations and is the date the initial creation units
were established.
(b)
Based on average shares outstanding.
(c)
Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all
distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not
reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is
calculated for the time period presented and is not annualized for periods of less than a year.
(d)
Annualized.
(e)
Ratio of total expenses to average net assets and ratio of net investment income (loss) to average net assets do not reflect the Fund’s
proportionate share of expenses and income of underlying investment companies in which the Fund invests.
(f)
Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities
received or delivered from processing creations or redemptions, derivatives and in-kind transactions.
See Notes to Consolidated Financial Statements
Page 6
Notes to Consolidated Financial Statements
FT Vest Gold Strategy Quarterly Buffer ETF (BGLD)
June 30, 2024 (Unaudited)
1. Organization
First Trust Exchange-Traded Fund (the “Trust”) is an open-end management investment company organized as a Massachusetts business trust on August 8, 2003, and is registered with the Securities and Exchange Commission under the Investment Company Act of 1940, as amended (the “1940 Act”).
This report covers the FT Vest Gold Strategy Quarterly Buffer ETF (the “Fund”), a non-diversified series of the Trust, which trades under the ticker “BGLD” on Cboe BZX Exchange, Inc. The Fund represents a separate series of shares of beneficial interest in the Trust. Unlike conventional mutual funds, the Fund issues and redeems shares on a continuous basis, at net asset value (“NAV”), only in large blocks of shares known as “Creation Units.”
The Fund is an actively managed exchange-traded fund. The Fund’s investment objective is to seek to provide investors with returns (before fees and expenses) that match the price return of the SPDR® Gold Trust (the “Underlying ETF”), up to a predetermined upside cap of 9.70% while providing a buffer (before fees and expenses) against Underlying ETF losses between -5% and -15% over the period from June 3, 2024 to August 30, 2024 (the “Target Outcome Period”). Prior to June 3, 2024, the Fund’s investment objective included an upside cap of 9.27% and 10.50% and a Target Outcome Period of March 1, 2024 to May 31, 2024 and December 1, 2023 to February 29, 2024, respectively. Under normal market conditions, the Fund will invest substantially all of its assets in U.S. Treasury securities, cash and cash equivalents, and in the shares of a wholly-owned subsidiary (the “Subsidiary”) that holds FLexible EXchange® Options (“FLEX Options”) that reference the price performance of the Underlying ETF. The Subsidiary is wholly-owned by the Fund and is organized under the laws of the Cayman Islands. The Fund does not invest directly in FLEX Options on the Underlying ETF. The Fund gains exposure to these investments exclusively by investing in the Subsidiary. The Fund will invest up to approximately 25% of its total assets in the Subsidiary. As of June 30, 2024 the Fund invested 21.34% of the Fund’s total assets in the Subsidiary. There can be no assurance that the Fund will achieve its investment objective. The Fund may not be appropriate for all investors.
2. Significant Accounting Policies
The Fund is considered an investment company and follows accounting and reporting guidance under Financial Accounting Standards Board Accounting Standards Codification Topic 946, “Financial Services-Investment Companies.” The consolidated financial statements include the accounts on a consolidated basis of the Subsidiary. All intercompany accounts and transactions have been eliminated in consolidation. The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of the consolidated financial statements. The preparation of the consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts and disclosures in the consolidated financial statements. Actual results could differ from those estimates.
A. Portfolio Valuation
The Fund’s NAV is determined daily as of the close of regular trading on the New York Stock Exchange (“NYSE”), normally 4:00 p.m. Eastern time, on each day the NYSE is open for trading. If the NYSE closes early on a valuation day, the NAV is determined as of that time. The Fund’s NAV is calculated by dividing the value of all assets of the Fund (including accrued interest and dividends), less all liabilities (including accrued expenses and dividends declared but unpaid), by the total number of shares outstanding.
The Fund’s investments are valued daily at market value or, in the absence of market value with respect to any portfolio securities, at fair value. Market value prices represent readily available market quotations such as last sale or official closing prices from a national or foreign exchange (i.e., a regulated market) and are primarily obtained from third-party pricing services. Fair value prices represent any prices not considered market value prices and are either obtained from a third-party pricing service or are determined by the Pricing Committee of the Fund’s investment advisor, First Trust Advisors L.P. (“First Trust” or the “Advisor”), in accordance with valuation procedures approved by the Trust’s Board of Trustees, and in accordance with provisions of the 1940 Act and rules thereunder. Investments valued by the Advisor’s Pricing Committee, if any, are footnoted as such in the footnotes to the Consolidated Portfolio of Investments. The Fund’s investments are valued as follows:
Exchange-traded options contracts (other than FLEX Option contracts) are valued at the closing price in the market where such contracts are principally traded. If no closing price is available, exchange-traded options contracts are valued at the mean of their most recent bid and ask price, if both are available. Over-the-counter options contracts are valued as follows, depending on the market in which the instrument trades: (1) the mean of their most recent bid and ask price, if available; or (2) a price based on
Page 7
Notes to Consolidated Financial Statements (Continued)
FT Vest Gold Strategy Quarterly Buffer ETF (BGLD)
June 30, 2024 (Unaudited)
the equivalent exchange-traded option. FLEX Option contracts are normally valued using a model-based price provided by a third-party pricing vendor. On days when a trade in a FLEX Option contract occurs, the trade price will be used to value such FLEX Option contracts in lieu of the model price.
U.S. Treasuries are valued on the basis of valuations provided by a third-party pricing service approved by the Trust’s Board of Trustees.
Shares of open-end funds are valued based on NAV per share.
If the Fund’s investments are not able to be priced by pre-established pricing methods, such investments may be valued by the Trust’s Board of Trustees or its delegate, the Advisor’s Pricing Committee, at fair value. A variety of factors may be considered in determining the fair value of such investments.
Valuing the Fund’s holdings using fair value pricing will result in using prices for those holdings that may differ from current market valuations. The Subsidiary’s holdings will be valued in the same manner as the Fund’s holdings.
The Fund is subject to fair value accounting standards that define fair value, establish the framework for measuring fair value and provide a three-level hierarchy for fair valuation based upon the inputs to the valuation as of the measurement date. The three levels of the fair value hierarchy are as follows:
•  Level 1 – Level 1 inputs are quoted prices in active markets for identical investments. An active market is a market in which transactions for the investment occur with sufficient frequency and volume to provide pricing information on an ongoing basis.
•  Level 2 – Level 2 inputs are observable inputs, either directly or indirectly, and include the following:
o  Quoted prices for similar investments in active markets.
o  Quoted prices for identical or similar investments in markets that are non-active. A non-active market is a market where there are few transactions for the investment, the prices are not current, or price quotations vary substantially either over time or among market makers, or in which little information is released publicly.
o  Inputs other than quoted prices that are observable for the investment (for example, interest rates and yield curves observable at commonly quoted intervals, volatilities, prepayment speeds, loss severities, credit risks, and default rates).
o  Inputs that are derived principally from or corroborated by observable market data by correlation or other means.
•  Level 3 – Level 3 inputs are unobservable inputs. Unobservable inputs may reflect the reporting entity’s own assumptions about the assumptions that market participants would use in pricing the investment.
The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in those investments. A summary of the inputs used to value the Fund’s investments as of June 30, 2024, is included with the Fund’s Consolidated Portfolio of Investments.
B. Investment Transactions and Investment Income
Investment transactions are recorded as of the trade date. Realized gains and losses from investment transactions are recorded on the identified cost basis. Dividend income is recorded on the ex-dividend date. Interest income, if any, is recorded daily on the accrual basis. Amortization of premiums and accretion of discounts are recorded using the effective interest method.
C. FLEX Options
FLEX Options are customized equity or index option contracts that trade on an exchange, but provide investors with the ability to customize key contract terms like exercise prices, styles and expiration dates. FLEX Options are guaranteed for settlement by the Options Clearing Corporation.
The Fund, through the Subsidiary, purchases and sells call and put FLEX Options based on the performance of the Underlying ETF. The FLEX Options that the Subsidiary holds that reference the Underlying ETF will give the Subsidiary the right to receive or deliver shares of the Underlying ETF on the option expiration date at a strike price, depending on whether the option is a put or call option and whether the Subsidiary purchases or sells the option. The FLEX Options held by the Subsidiary are European style options, which are exercisable at the strike price only on the FLEX Option expiration date.
When the Subsidiary writes (sells) an option, an amount equal to the premium received by the Subsidiary is included in “Options contracts written, at value” on the Consolidated Statement of Assets and Liabilities. Gain or loss on written options is presented
Page 8
Notes to Consolidated Financial Statements (Continued)
FT Vest Gold Strategy Quarterly Buffer ETF (BGLD)
June 30, 2024 (Unaudited)
separately as “Net realized gain (loss) on written options contracts” on the Consolidated Statement of Operations. When the Subsidiary purchases a call or put option, the premium paid represents the cost of the call or put option, which is included in “Options contracts purchased, at value” on the Consolidated Statement of Assets and Liabilities. Gain or loss on purchased options is included in “Net realized gain (loss) on purchased options contracts” on the Consolidated Statement of Operations.
D. Dividends and Distributions to Shareholders
Dividends from net investment income of the Fund, if any, are declared and paid annually, or as the Board of Trustees may determine from time to time. Distributions of net realized capital gains earned by the Fund, if any, are distributed at least annually. The Fund may also designate a portion of the amount paid to redeeming shareholders as a distribution for tax purposes.
Distributions from net investment income and realized capital gains are determined in accordance with federal income tax regulations, which may differ from U.S. GAAP. Certain capital accounts in the consolidated financial statements are periodically adjusted for permanent differences in order to reflect their tax character. These permanent differences are primarily due to the varying treatment of income and gain/loss on significantly modified portfolio securities held by the Fund and have no impact on net assets or NAV per share. Temporary differences, which arise from recognizing certain items of income, expense and gain/loss in different periods for consolidated financial statement and tax purposes, will reverse at some time in the future.
The tax character of distributions paid during the fiscal year ended December 31, 2023 was as follows:
 
Distributions paid from:
 
Ordinary income
$2,765,606
Capital gains
—
Return of capital
491,828
As of December 31, 2023, the components of distributable earnings on a tax basis for the Fund were as follows:
 
Undistributed ordinary income
$—
Accumulated capital and other gain (loss)
(6,859
)
Net unrealized appreciation (depreciation)
208,543
E. Income Taxes
The Fund intends to continue to qualify as a regulated investment company by complying with the requirements under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”), which includes distributing substantially all of its net investment income and net realized gains to shareholders. Accordingly, no provision has been made for federal and state income taxes. However, due to the timing and amount of distributions, the Fund may be subject to an excise tax of 4% of the amount by which approximately 98% of the Fund’s taxable income exceeds the distributions from such taxable income for the calendar year.
The Subsidiary is classified as a controlled foreign corporation under Subchapter N of the Code. Therefore, the Fund is required to increase its taxable income by its share of the Subsidiary’s income, whether or not such earnings are distributed by the Subsidiary to the Fund. Net investment losses of the Subsidiary cannot be deducted by the Fund in the current period nor carried forward to offset taxable income in future periods.
The Fund is subject to accounting standards that establish a minimum threshold for recognizing, and a system for measuring, the benefits of a tax position taken or expected to be taken in a tax return. The taxable years ended 2021, 2022, and 2023 remain open to federal and state audit. As of June 30, 2024, management has evaluated the application of these standards to the Fund and has determined that no provision for income tax is required in the Fund’s consolidated financial statements for uncertain tax positions.
The Fund intends to utilize provisions of the federal income tax laws, which allow it to carry a realized capital loss forward indefinitely following the year of the loss and offset such loss against any future realized capital gains. The Fund is subject to certain limitations under U.S. tax rules on the use of capital loss carryforwards and net unrealized built-in losses. These limitations apply when there has been a 50% change in ownership. At December 31, 2023, for federal income tax purposes, the Fund had $619 of non-expiring capital loss carryforwards available, to the extent provided by regulations, to offset future capital gains. To the extent that these loss carryforwards are used to offset future capital gains, it is probable that the capital gains so offset will not be distributed to the Fund’s shareholders.
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Notes to Consolidated Financial Statements (Continued)
FT Vest Gold Strategy Quarterly Buffer ETF (BGLD)
June 30, 2024 (Unaudited)
Certain losses realized during the current fiscal year may be deferred and treated as occurring on the first day of the following fiscal year for federal income tax purposes. For the fiscal year ended December 31, 2023, the Fund had no net late year ordinary or capital losses.
As of June 30, 2024, the aggregate cost, gross unrealized appreciation, gross unrealized depreciation, and net unrealized appreciation/(depreciation) on investments (including short positions and derivatives, if any) for federal income tax purposes were as follows:
 
Tax Cost
Gross
Unrealized
Appreciation
Gross
Unrealized
(Depreciation)
Net Unrealized
Appreciation
(Depreciation)
$29,554,149
$152,884
$(297,650
)
$(144,766
)
F. Expenses
Expenses, other than the investment advisory fee and other excluded expenses, are paid by the Advisor (see Note 3).
3. Investment Advisory Fee, Affiliated Transactions and Other Fee Arrangements
First Trust, the investment advisor to the Fund, is a limited partnership with one limited partner, Grace Partners of DuPage L.P., and one general partner, The Charger Corporation. The Charger Corporation is an Illinois corporation controlled by James A. Bowen, Chief Executive Officer of First Trust. First Trust is responsible for the ongoing monitoring of the Fund’s and the Subsidiary’s investment portfolios, managing the Fund’s business affairs and providing certain administrative services necessary for the management of the Fund.
First Trust is responsible for the expenses of the Fund and the Subsidiary including the cost of transfer agency, sub-advisory, custody, fund administration, legal, audit and other services, but excluding fee payments under the Investment Management Agreement, interest, taxes, acquired fund fees and expenses, if any, brokerage commissions and other expenses connected with the execution of portfolio transactions, distribution and service fees payable pursuant to a Rule 12b-1 plan, if any, and extraordinary expenses. The annual unitary management fee payable by the Fund to First Trust for these services will be reduced at certain levels of the Fund’s net assets (“breakpoints”) and calculated pursuant to the following schedule:
 
Breakpoints
 
Fund net assets up to and including $2.5 billion
0.9000
%
Fund net assets greater than $2.5 billion up to and including $5 billion
0.8775
%
Fund net assets greater than $5 billion up to and including $7.5 billion
0.8550
%
Fund net assets greater than $7.5 billion up to and including $10 billion
0.8325
%
Fund net assets greater than $10 billion
0.8100
%
The Subsidiary does not pay First Trust a separate management fee.
Vest Financial LLC (“Vest”), an affiliate of First Trust, serves as the Fund’s sub-advisor and manages the Fund’s portfolio subject to First Trust’s supervision. Pursuant to the Investment Management Agreement, between the Trust, on behalf of the Fund, and the Advisor, and the Investment Sub-Advisory Agreement among the Trust, on behalf of the Fund, the Advisor and Vest, First Trust will supervise Vest and its management of the investment of the Fund’s assets and will pay Vest for its services as the Fund’s sub-advisor a sub-advisory fee equal to 50% of any remaining monthly unitary management fee paid to the Advisor after the average Fund’s expenses accrued during the most recent twelve months are subtracted from the unitary management fee for that month.
The Trust has multiple service agreements with The Bank of New York Mellon (“BNY”). Under the service agreements, BNY performs custodial, fund accounting, certain administrative services, and transfer agency services for the Fund. As custodian, BNY is responsible for custody of the Fund’s assets. As fund accountant and administrator, BNY is responsible for maintaining the books and records of the Fund’s securities and cash. As transfer agent, BNY is responsible for maintaining shareholder records for the Fund. BNY is a subsidiary of The Bank of New York Mellon Corporation, a financial holding company.
Each Trustee who is not an officer or employee of First Trust, any sub-advisor or any of their affiliates (“Independent Trustees”) is paid a fixed annual retainer that is allocated equally among each fund in the First Trust Fund Complex. Each Independent Trustee is also paid an annual per fund fee that varies based on whether the fund is a closed-end or other actively managed fund, a target outcome fund or an index fund.
Page 10
Notes to Consolidated Financial Statements (Continued)
FT Vest Gold Strategy Quarterly Buffer ETF (BGLD)
June 30, 2024 (Unaudited)
Additionally, the Chairs of the Audit Committee, Nominating and Governance Committee and Valuation Committee, the Vice Chair of the Audit Committee, the Lead Independent Trustee and the Vice Lead Independent Trustee are paid annual fees to serve in such capacities, with such compensation allocated pro rata among each fund in the First Trust Fund Complex based on net assets. Independent Trustees are reimbursed for travel and out-of-pocket expenses in connection with all meetings. The Committee Chairs, the Audit Committee Vice Chair, the Lead Independent Trustee and the Vice Lead Independent Trustee rotate periodically in serving in such capacities. The officers and “Interested” Trustee receive no compensation from the Trust for acting in such capacities.
4. Purchases and Sales of Securities
For the six months ended June 30, 2024, the cost of purchases and proceeds from sales of investments, excluding short-term investments, derivatives, and in-kind transactions, were $0 and $0, respectively.
For the six months ended June 30, 2024, the Fund had no in-kind transactions.
5. Derivative Transactions
The following table presents the types of derivatives held by the Subsidiary at June 30, 2024, the primary underlying risk exposure and the location of these instruments as presented on the Consolidated Statement of Assets and Liabilities.
 
 
 
Asset Derivatives
Liability Derivatives
Derivative
Instrument
Risk
Exposure
Consolidated
Statement of Assets and
Liabilities Location
Value
Consolidated
Statement of Assets and
Liabilities Location
Value
Options contracts
Commodity Risk
Options contracts
purchased, at value
$1,761,881
Options contracts written,
at value
$108,143
The following table presents the amount of net realized gain (loss) and change in net unrealized appreciation (depreciation) recognized for the six months ended June 30, 2024, on derivative instruments, as well as the primary underlying risk exposure associated with the instruments.
 
Consolidated Statement of Operations Location
 
Commodity Risk Exposure
Net realized gain (loss) on:
Purchased options contracts
$2,038,504
Written options contracts
(477,055
)
Net change in unrealized appreciation (depreciation) on:
Purchased options contracts
(282,591
)
Written options contracts
(61,036
)
During the six months ended June 30, 2024, the premiums for purchased options contracts opened were $3,804,998 and the premiums for purchased options contracts closed, exercised and expired were $3,906,429.
During the six months ended June 30, 2024, the premiums for written options contracts opened were $416,198 and the premiums for written options contracts closed, exercised and expired were $526,470.
The Fund does not have the right to offset financial assets and financial liabilities related to options contracts on the Consolidated Statement of Assets and Liabilities.
6. Creations, Redemptions and Transaction Fees
The Fund generally issues and redeems its shares in primary market transactions through a creation and redemption mechanism and does not sell or redeem individual shares. Instead, financial entities known as “Authorized Participants” have contractual arrangements with the Fund or one of the Fund’s service providers to purchase and redeem Fund shares directly with the Fund in Creation Units. Prior to the start of trading on every business day, the Fund publishes through the National Securities Clearing Corporation the “basket” of securities, cash or other assets that it will accept in exchange for a Creation Unit of the Fund’s shares. An Authorized Participant that wishes to effectuate a creation of the Fund’s shares deposits with the Fund the “basket” of securities, cash or other assets identified by the Fund that day, and then receives the Creation Unit of the Fund’s shares in return for those assets. After
Page 11
Notes to Consolidated Financial Statements (Continued)
FT Vest Gold Strategy Quarterly Buffer ETF (BGLD)
June 30, 2024 (Unaudited)
purchasing a Creation Unit, the Authorized Participant may continue to hold the Fund’s shares or sell them in the secondary market. The redemption process is the reverse of the purchase process: the Authorized Participant redeems a Creation Unit of the Fund’s shares for a basket of securities, cash or other assets. The combination of the creation and redemption process with secondary market trading in the Fund’s shares and underlying securities provides arbitrage opportunities that are designed to help keep the market price of the Fund’s shares at or close to the NAV per share of the Fund.
The Fund imposes fees in connection with the purchase of Creation Units. These fees may vary based upon various fact-based circumstances, including, but not limited to, the composition of the securities included in the Creation Unit or the countries in which the transactions are settled. The price for each Creation Unit will equal the daily NAV per share of the Fund times the number of shares in a Creation Unit, plus the fees described above and, if applicable, any operational processing and brokerage costs, transfer fees, stamp taxes and part or all of the spread between the expected bid and offer side of the market related to the securities comprising the creation basket.
The Fund also imposes fees in connection with the redemption of Creation Units. These fees may vary based upon various fact-based circumstances, including, but not limited to, the composition of the securities included in the Creation Unit or the countries in which the transactions are settled. The price received for each Creation Unit will equal the daily NAV per share of the Fund times the number of shares in a Creation Unit, minus the fees described above and, if applicable, any operational processing and brokerage costs, transfer fees, stamp taxes and part or all of the spread between the expected bid and offer side of the market related to the securities comprising the redemption basket. Investors who use the services of a broker or other such intermediary in addition to an Authorized Participant to effect a redemption of a Creation Unit may also be assessed an amount to cover the cost of such services. The redemption fee charged by the Fund will comply with Rule 22c-2 of the 1940 Act which limits redemption fees to no more than 2% of the value of the shares redeemed.
7. Distribution Plan
The Board of Trustees adopted a Distribution and Service Plan pursuant to Rule 12b-1 under the 1940 Act. In accordance with the Rule 12b-1 plan, the Fund is authorized to pay an amount up to 0.25% of its average daily net assets each year to reimburse First Trust Portfolios L.P. (“FTP”), the distributor of the Fund, for amounts expended to finance activities primarily intended to result in the sale of Creation Units or the provision of investor services. FTP may also use this amount to compensate securities dealers or other persons that are Authorized Participants for providing distribution assistance, including broker-dealer and shareholder support and educational and promotional services.
No 12b-1 fees are currently paid by the Fund, and pursuant to a contractual arrangement, no 12b-1 fees will be paid any time before April 30, 2025.
8. Indemnification
The Trust, on behalf of the Fund, has a variety of indemnification obligations under contracts with its service providers. The Trust’s maximum exposure under these arrangements is unknown. However, the Trust has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.
9. Subsequent Events
Management has evaluated the impact of all subsequent events on the Fund through the date the consolidated financial statements were issued and has determined that there were no subsequent events requiring recognition or disclosure in the consolidated financial statements that have not already been disclosed.
Page 12
Other Information
FT Vest Gold Strategy Quarterly Buffer ETF (BGLD)
June 30, 2024 (Unaudited)
Changes in and Disagreements with Accountants (Item 8 of Form N-CSR)
There were no changes in or disagreements with the Fund’s accountants during the six months ended June 30, 2024.
Proxy Disclosures (Item 9 of Form N-CSR)
There were no matters submitted for vote by shareholders of the Fund during the six months ended June 30, 2024.
Remuneration Paid to Directors, Officers, and Others (Item 10 of Form N-CSR)
Independent Trustees and any member of any advisory board of the Fund are compensated through the unitary management fee paid by the Fund to the advisor and not directly by the Fund. The investment advisory fee paid is included in the Consolidated Statement of Operations.
Statement Regarding the Basis for the Board’s Approval of Investment Advisory Contract (Item 11 of Form N-CSR)
The Board of Trustees of First Trust Exchange-Traded Fund (the “Trust”), including the Independent Trustees, unanimously approved the continuation of the Investment Management Agreement (the “Advisory Agreement”) with First Trust Advisors L.P. (the “Advisor”) on behalf of the FT Vest Gold Strategy Quarterly Buffer ETF (the “Fund”) and the Investment Sub-Advisory Agreement (the “Sub-Advisory Agreement” and together with the Advisory Agreement, the “Agreements”) among the Trust, on behalf of the Fund, the Advisor and Vest Financial LLC (the “Sub-Advisor”). The Board approved the continuation of the Agreements for a one-year period ending June 30, 2025 at a meeting held on June 2–3, 2024. The Board determined that the continuation of the Agreements is in the best interests of the Fund in light of the nature, extent and quality of the services provided and such other matters as the Board considered to be relevant in the exercise of its business judgment.
To reach this determination, the Board considered its duties under the Investment Company Act of 1940, as amended (the “1940 Act”), as well as under the general principles of state law, in reviewing and approving advisory contracts; the requirements of the 1940 Act in such matters; the fiduciary duty of investment advisors with respect to advisory agreements and compensation; the standards used by courts in determining whether investment company boards have fulfilled their duties; and the factors to be considered by the Board in voting on such agreements. At meetings held on April 16, 2024, April 25, 2024 and June 2–3, 2024, the Board, including the Independent Trustees, reviewed materials provided by the Advisor and the Sub-Advisor responding to requests for information from counsel to the Independent Trustees, submitted on behalf of the Independent Trustees, that, among other things, outlined: the services provided by the Advisor and the Sub-Advisor to the Fund (including the relevant personnel responsible for these services and their experience); the unitary fee rate schedule payable by the Fund as compared to fees charged to a peer group of funds (the “Expense Group”) and a broad peer universe of funds (the “Expense Universe”), each assembled by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent source, and as compared to fees charged to other clients of the Advisor, including other exchange-traded funds (“ETFs”) managed by the Advisor; the sub-advisory fee as compared to fees charged to other clients of the Sub-Advisor; the expense ratio of the Fund as compared to expense ratios of the funds in the Fund’s Expense Group and Expense Universe; performance information for the Fund, including comparisons of the Fund’s performance to that of one or more relevant benchmark indexes and to that of a performance group of funds and a broad performance universe of funds (the “Performance Universe”), each assembled by Broadridge; the nature of expenses incurred in providing services to the Fund and the potential for the Advisor and the Sub-Advisor to realize economies of scale, if any; profitability and other financial data for the Advisor; financial data for the Sub-Advisor; any indirect benefits to the Advisor and its affiliates, First Trust Portfolios L.P. (“FTP”) and First Trust Capital Partners, LLC (“FTCP”), and the Sub-Advisor; and information on the Advisor’s and the Sub-Advisor’s compliance programs. The Board reviewed initial materials with the Advisor at the meeting held on April 25, 2024, prior to which the Independent Trustees and their counsel met separately to discuss the information provided by the Advisor and the Sub-Advisor. Following the April 25, 2024 meeting, counsel to the Independent Trustees, on behalf of the Independent Trustees, requested certain clarifications and supplements to the materials provided, and the information provided in response to those requests was considered at an executive session of the Independent Trustees and their counsel held prior to the June 2–3, 2024 meeting, as well as at the June meeting. The Board applied its business judgment to determine whether the arrangements between the Trust and the Advisor and among the Trust, the Advisor and the Sub-Advisor continue to be reasonable business arrangements from the Fund’s perspective. The Board determined that, given the totality of the information provided with respect to the Agreements, the Board had received sufficient information to renew the Agreements. The Board considered that shareholders chose to invest or remain invested in the Fund knowing that the Advisor and the Sub-Advisor manage the Fund and knowing the Fund’s unitary fee.
In reviewing the Agreements, the Board considered the nature, extent and quality of the services provided by the Advisor and the Sub-Advisor under the Agreements. With respect to the Advisory Agreement, the Board considered that the Advisor is responsible for the
Page 13
Other Information (Continued)
FT Vest Gold Strategy Quarterly Buffer ETF (BGLD)
June 30, 2024 (Unaudited)
overall management and administration of the Trust and the Fund and reviewed all of the services provided by the Advisor to the Fund, including the oversight of the Sub-Advisor, as well as the background and experience of the persons responsible for such services. The Board noted that the Advisor oversees the Sub-Advisor’s day-to-day management of the Fund’s investments, including portfolio risk monitoring and performance review. In reviewing the services provided, the Board noted the compliance program that had been developed by the Advisor and considered that it includes a robust program for monitoring the Advisor’s, the Sub-Advisor’s and the Fund’s compliance with the 1940 Act, as well as the Fund’s compliance with its investment objective, policies and restrictions. The Board also considered a report from the Advisor with respect to its risk management functions related to the operation of the Fund. Finally, as part of the Board’s consideration of the Advisor’s services, the Advisor, in its written materials and at the April 25, 2024 meeting, described to the Board the scope of its ongoing investment in additional personnel and infrastructure to maintain and improve the quality of services provided to the Fund and the other funds in the First Trust Fund Complex. With respect to the Sub-Advisory Agreement, the Board noted that the Fund is an actively-managed ETF and the Sub-Advisor actively manages the Fund’s investments. The Board reviewed the materials provided by the Sub-Advisor and considered the services that the Sub-Advisor provides to the Fund, including the Sub-Advisor’s day-to-day management of the Fund’s investments. In considering the Sub-Advisor’s management of the Fund, the Board noted the background and experience of the Sub-Advisor’s portfolio management team, including the Board’s prior meetings with members of the portfolio management team. In light of the information presented and the considerations made, the Board concluded that the nature, extent and quality of the services provided to the Trust and the Fund by the Advisor and the Sub-Advisor under the Agreements have been and are expected to remain satisfactory and that the Sub-Advisor, under the oversight of the Advisor, has managed the Fund consistent with its investment objective, policies and restrictions.
The Board considered the unitary fee rate schedule payable by the Fund under the Advisory Agreement for the services provided. The Board noted that the sub-advisory fee is paid by the Advisor from the unitary fee. The Board considered that as part of the unitary fee the Advisor is responsible for the Fund’s expenses, including the cost of sub-advisory, transfer agency, custody, fund administration, legal, audit and other services and license fees, if any, but excluding the fee payment under the Advisory Agreement and interest, taxes, acquired fund fees and expenses, brokerage commissions and other expenses connected with the execution of portfolio transactions, distribution and service fees pursuant to a Rule 12b-1 plan, if any, and extraordinary expenses, if any. The Board received and reviewed information showing the fee rates and expense ratios of the peer funds in the Expense Group, as well as advisory and unitary fee rates charged by the Advisor and the Sub-Advisor to other fund (including ETFs) and non-fund clients, as applicable. Because the Fund pays a unitary fee, the Board determined that expense ratios were the most relevant comparative data point. Based on the information provided, the Board noted that the total (net) expense ratio for the Fund was above the median total (net) expense ratio of the peer funds in the Expense Group. With respect to the Expense Group, the Board discussed with Broadridge its methodology for assembling peer groups and discussed with the Advisor limitations in creating peer groups for actively-managed ETFs, and different business models that may affect the pricing of services among ETF sponsors. The Board also noted that not all peer funds employ an advisor/sub-advisor management structure. The Board took these limitations and differences into account in considering the peer data. With respect to fees charged to other non-ETF clients, the Board considered differences between the Fund and other non-ETF clients that limited their comparability. In considering the unitary fee rate schedule overall, the Board also considered the Advisor’s statement that it seeks to meet investor needs through innovative and value-added investment solutions and the Advisor’s demonstrated long-term commitment to the Fund and the other funds in the First Trust Fund Complex.
The Board considered performance information for the Fund. The Board noted the process it has established for monitoring the Fund’s performance and portfolio risk on an ongoing basis, which includes quarterly performance reporting from the Advisor and the Sub-Advisor for the Fund. The Board determined that this process continues to be effective for reviewing the Fund’s performance. The Board received and reviewed information comparing the Fund’s performance for the one-year period ended December 31, 2023 to the performance of the funds in the Performance Universe and to that of a benchmark index. The Board noted that the Fund is a target outcome ETF that seeks to provide investors with returns (before fees and expenses) over a defined period of time (typically one quarter of a year) that match the price return of the SPDR Gold Trust (“GLD”), up to a predetermined cap, while providing a buffer (before fees and expenses) against certain losses on the price return of GLD. The Board considered information provided by the Sub-Advisor on the Fund’s performance during its four quarterly target outcome periods for the year ended February 29, 2024 and noted that the Fund delivered on its target outcome objective.
On the basis of all the information provided on the unitary fee and performance of the Fund and the ongoing oversight by the Board, the Board concluded that the unitary fee for the Fund (out of which the Sub-Advisor is compensated) continues to be reasonable and appropriate in light of the nature, extent and quality of the services provided by the Advisor and the Sub-Advisor to the Fund under the Agreements.
Page 14
Other Information (Continued)
FT Vest Gold Strategy Quarterly Buffer ETF (BGLD)
June 30, 2024 (Unaudited)
The Board considered information and discussed with the Advisor whether there were any economies of scale in connection with providing advisory services to the Fund at current asset levels and whether the Fund may benefit from any economies of scale. The Board noted that the unitary fee rate schedule for the Fund includes breakpoints pursuant to which the unitary fee rate will be reduced as assets of the Fund meet certain thresholds. The Board considered the Advisor’s statement that it believes that its expenses relating to providing advisory services to the Fund will increase during the next twelve months as the Advisor continues to build infrastructure and add new staff. The Board also noted that under the unitary fee structure, any reduction in expenses associated with the management and operations of the Fund would benefit the Advisor, but that the unitary fee structure provides a level of certainty in expenses for shareholders of the Fund. The Board concluded that the unitary fee rate schedule for the Fund reflects an appropriate level of sharing of any economies of scale that may be realized in the management of the Fund at current asset levels. The Board considered the revenues and allocated costs (including the allocation methodology) of the Advisor in serving as investment advisor to the Fund for the twelve months ended December 31, 2023 and the estimated profitability level for the Fund calculated by the Advisor based on such data, as well as complex-wide and product-line profitability data, for the same period. The Board noted the inherent limitations in the profitability analysis and concluded that, based on the information provided, the Advisor’s profitability level for the Fund was not unreasonable. In addition, the Board considered indirect benefits described by the Advisor that may be realized from its relationship with the Fund. The Board considered that the Advisor had identified as an indirect benefit to the Advisor and FTP their exposure to investors and brokers who, absent their exposure to the Fund, may have had no dealings with the Advisor or FTP. The Board also noted that FTCP has a controlling ownership interest in the Sub-Advisor’s parent company and considered potential indirect benefits to the Advisor from such ownership interest. The Board concluded that the character and amount of potential indirect benefits to the Advisor were not unreasonable.
The Board considered the Sub-Advisor’s statement that it believes that the sub-advisory fee for the Fund is appropriate. The Board noted the Sub-Advisor’s statements that it continues to invest in infrastructure, technology and personnel, and that it anticipates that its expenses relating to providing services to the Fund will remain approximately the same for the next twelve months. The Board noted that the Advisor pays the Sub-Advisor from the unitary fee, that the sub-advisory fee will be reduced consistent with the breakpoints in the unitary fee rate schedule and its understanding that the Fund’s sub-advisory fee was the product of an arm’s length negotiation. The Board did not review the profitability of the Sub-Advisor with respect to the Fund. The Board concluded that the profitability analysis for the Advisor was more relevant. The Board considered the potential indirect benefits to the Sub-Advisor from being associated with the Advisor and the Fund, and noted the Sub-Advisor’s statements that it is the Sub-Advisor’s policy currently not to enter into soft-dollar arrangements for the procurement of research services in connection with client securities transactions and that, as a result, there are no foreseen indirect benefits from its relationship with the Fund. The Board also considered the potential indirect benefits to the Sub-Advisor from FTCP’s controlling ownership interest in the Sub-Advisor’s parent company. The Board concluded that the character and amount of potential indirect benefits to the Sub-Advisor were not unreasonable.
Based on all of the information considered and the conclusions reached, the Board, including the Independent Trustees, unanimously determined that the terms of the Agreements continue to be fair and reasonable and that the continuation of the Agreements is in the best interests of the Fund. No single factor was determinative in the Board’s analysis.
Disclaimer
The Fund is not sponsored, endorsed, sold or promoted by SPDR® Gold Trust and World Gold Trust Services, LLC, (together with their affiliates hereinafter referred to as the “Corporations”). The Corporations have not passed on the legality or suitability of, or the accuracy or adequacy of, descriptions and disclosures relating to the Fund or the FLEX Options. The Corporations make no representations or warranties, express or implied, regarding the advisability of investing in the Fund or the FLEX Options or results to be obtained by the Fund or the FLEX Options, shareholders or any other person or entity from use of the Underlying ETF. The Corporations have no liability in connection with the management, administration, marketing or trading of the Fund or the FLEX Options.
Page 15
 
 
 
Semi-Annual Consolidated
Financial Statements
and Other Information
For the Six Months Ended
June 30, 2024
 
First Trust Exchange-Traded Fund
 
FT Vest Gold Strategy Target Income ETF® (IGLD)
Table of Contents 
FT Vest Gold Strategy Target Income ETF® (IGLD)
Semi-Annual Consolidated Financial Statements and Other Information
June 30, 2024 
Performance and Risk Disclosure
There is no assurance that FT Vest Gold Strategy Target Income ETF® (the “Fund”) will achieve its investment objective. The Fund is subject to market risk, which is the possibility that the market values of securities owned by the Fund will decline and that the value of the Fund’s shares may therefore be less than what you paid for them. Accordingly, you can lose money by investing in the Fund.
Performance data quoted represents past performance, which is no guarantee of future results, and current performance may be lower or higher than the figures shown. For the most recent month-end performance figures, please visit www.ftportfolios.com or speak with your financial advisor. Investment returns, net asset value and share price will fluctuate and Fund shares, when sold, may be worth more or less than their original cost.
First Trust Advisors L.P., the Fund’s advisor, may also periodically provide additional information on Fund performance on the Fund’s webpage at www.ftportfolios.com.
How to Read This Report
This report contains information that may help you evaluate your investment in the Fund. It includes details about the Fund and presents data that provides insight into the Fund’s performance and investment approach.
The material risks of investing in the Fund are spelled out in its prospectus, statement of additional information, and other Fund regulatory filings.
FT Vest Gold Strategy Target Income ETF® (IGLD)
Consolidated Portfolio of Investments
June 30, 2024 (Unaudited)
 
Principal
Value
Description
Stated
Coupon
Stated
Maturity
Value
U.S. TREASURY BILLS — 128.5%
$128,785,300
U.S. Treasury Bill (a)
(b)
11/29/24
$126,022,265
(Cost $126,087,639)
 
 
 
Shares
Description
Value
MONEY MARKET FUNDS — 0.1%
93,584
Dreyfus Government Cash Management Fund, Institutional Shares - 5.19% (c)
93,584
(Cost $93,584)
Total Investments — 128.6%
126,115,849
(Cost $126,181,223)
 
Number of
Contracts
Description
Notional
Amount
Exercise
Price
Expiration
Date
Value
PURCHASED OPTIONS — 0.2%
Call Options Purchased — 0.2%
4,532
SPDR® Gold Shares
$97,442,532
$283.50
11/29/24
208,223
(Cost $471,778)
 
 
WRITTEN OPTIONS — (29.9)%
Call Options Written — (0.8)%
(2,100)
SPDR® Gold Shares
(45,152,100
)
215.01
07/31/24
(808,500
)
(Premiums received $805,229)
 
 
Put Options Written — (29.1)%
(4,532)
SPDR® Gold Shares
(97,442,532
)
283.50
11/29/24
(28,508,471
)
(Premiums received $36,876,028)
 
 
Total Written Options
(29,316,971
)
(Premiums received $37,681,257)
Net Other Assets and Liabilities — 1.1%
1,077,147
Net Assets — 100.0%
$98,084,248
 
(a)
All or a portion of this security is segregated as collateral for the options written. At June 30, 2024, the segregated value of this
security amounts to $49,742,106.
(b)
Zero coupon security.
(c)
Rate shown reflects yield as of June 30, 2024.
See Notes to Consolidated Financial Statements
Page 1
FT Vest Gold Strategy Target Income ETF® (IGLD)
Consolidated Portfolio of Investments (Continued)
June 30, 2024 (Unaudited)
Valuation Inputs
A summary of the inputs used to value the Fund’s investments as of June 30, 2024 is as follows (see Note 2A - Portfolio Valuation in the Notes to Consolidated Financial Statements):
 
ASSETS TABLE
 
Total
Value at
6/30/2024
Level 1
Quoted
Prices
Level 2
Significant
Observable
Inputs
Level 3
Significant
Unobservable
Inputs
U.S. Treasury Bills
$126,022,265
$—
$126,022,265
$—
Money Market Funds
93,584
93,584
—
—
Total Investments
126,115,849
93,584
126,022,265
—
Purchased Options
208,223
—
208,223
—
Total
$126,324,072
$93,584
$126,230,488
$—
 
LIABILITIES TABLE
 
Total
Value at
6/30/2024
Level 1
Quoted
Prices
Level 2
Significant
Observable
Inputs
Level 3
Significant
Unobservable
Inputs
Written Options
$(29,316,971
)
$—
$(29,316,971
)
$—
See Notes to Consolidated Financial Statements
Page 2
FT Vest Gold Strategy Target Income ETF® (IGLD)
Consolidated Statement of Assets and Liabilities
June 30, 2024 (Unaudited)
 
ASSETS:
Investments, at value
$126,115,849
Options contracts purchased, at value
208,223
Cash
312,568
Due from broker
26,083
Receivables:
Investment securities sold
1,605,229
Dividends
1,159
Total Assets
128,269,111
 
LIABILITIES:
Options contracts written, at value
29,316,971
Payables:
Capital shares redeemed
800,000
Investment advisory fees
67,892
Total Liabilities
30,184,863
NET ASSETS
$98,084,248
 
NET ASSETS consist of:
Paid-in capital
$92,908,807
Par value
49,000
Accumulated distributable earnings (loss)
5,126,441
NET ASSETS
$98,084,248
NET ASSET VALUE, per share
$20.02
Number of shares outstanding (unlimited number of shares authorized, par value $0.01 per share)
4,900,002
Investments, at cost
$126,181,223
Premiums paid on options contracts purchased
$471,778
Premiums received on options contracts written
$37,681,257
See Notes to Consolidated Financial Statements
Page 3
FT Vest Gold Strategy Target Income ETF® (IGLD)
Consolidated Statement of Operations
For the Six Months Ended June 30, 2024 (Unaudited)
 
INVESTMENT INCOME:
Interest
$3,072,174
Dividends
18,539
Total investment income
3,090,713
 
EXPENSES:
Investment advisory fees
386,539
 
Total expenses
386,539
NET INVESTMENT INCOME (LOSS)
2,704,174
 
NET REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) on:
Investments
(4,348)
Purchased options contracts
(32,679)
Written options contracts
(2,097,456)
Net realized gain (loss)
(2,134,483)
Net change in unrealized appreciation (depreciation) on:
Investments
(447,272)
Purchased options contracts
(441,344)
Written options contracts
7,622,729
Net change in unrealized appreciation (depreciation)
6,734,113
NET REALIZED AND UNREALIZED GAIN (LOSS)
4,599,630
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS
$7,303,804
See Notes to Consolidated Financial Statements
Page 4
FT Vest Gold Strategy Target Income ETF® (IGLD)
Consolidated Statements of Changes in Net Assets
 
 
Six Months
Ended
6/30/2024 
(Unaudited)
Year
Ended
12/31/2023 
OPERATIONS:
Net investment income (loss)
$2,704,174
$3,561,142
Net realized gain (loss)
(2,134,483)
781,197
Net change in unrealized appreciation (depreciation)
6,734,113
1,202,792
Net increase (decrease) in net assets resulting from operations
7,303,804
5,545,131
 
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment operations
(3,796,717)
(3,928,684)
Return of capital
—
(1,160,039)
Total distributions to shareholders
(3,796,717)
(5,088,723)
 
SHAREHOLDER TRANSACTIONS:
Proceeds from shares sold
13,722,366
 
50,580,985
 
Cost of shares redeemed
(3,968,125)
 
(4,784,237)
 
Net increase (decrease) in net assets resulting from shareholder transactions
9,754,241
45,796,748
Total increase (decrease) in net assets
13,261,328
46,253,156
 
NET ASSETS:
Beginning of period
84,822,920
38,569,764
End of period
$98,084,248
$84,822,920
 
CHANGES IN SHARES OUTSTANDING:
Shares outstanding, beginning of period
4,400,002
2,050,002
Shares sold
700,000
2,600,000
Shares redeemed
(200,000)
(250,000)
Shares outstanding, end of period
4,900,002
4,400,002
See Notes to Consolidated Financial Statements
Page 5
FT Vest Gold Strategy Target Income ETF® (IGLD)
Consolidated Financial Highlights
For a share outstanding throughout each period
 
 
Six Months
Ended
6/30/2024 
 (Unaudited)
Year Ended December 31,
Period
Ended
12/31/2021  (a)
 
2023
2022
Net asset value, beginning of period
$19.28
$18.81
$20.31
$20.14
Income from investment operations:
Net investment income (loss)
0.58
  (b)
1.04
  (b)
0.14
 
(0.08
) 
Net realized and unrealized gain (loss)
0.97
 
0.94
 
(0.79
) 
0.71
 
Total from investment operations
1.55
1.98
(0.65
)
0.63
Distributions paid to shareholders from:
Net investment income
(0.81
) 
(1.17
) 
—
 
—
 
Return of capital
—
 
(0.34
) 
(0.85
) 
(0.46
) 
Total distributions
(0.81
) 
(1.51
) 
(0.85
) 
(0.46
) 
Net asset value, end of period
$20.02
 
$19.28
 
$18.81
 
$20.31
 
Total return (c)
8.27
% 
10.95
% 
(3.26
)% 
3.14
% 
 
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000’s)
$98,084
 
$84,823
 
$38,570
 
$31,476
 
Ratio of total expenses to average net assets
0.85
%  (d)
0.85
% 
0.85
% 
0.85
%  (d)
Ratio of net investment income (loss) to average net assets
5.95
%  (d)
5.47
% 
0.69
% 
(0.76
)%  (d)
Portfolio turnover rate (e)
0
% 
0
% 
0
% 
0
% 
 
(a)
Inception date is March 2, 2021, which is consistent with the commencement of investment operations and is the date the initial creation units
were established.
(b)
Based on average shares outstanding.
(c)
Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all
distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not
reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is
calculated for the time period presented and is not annualized for periods of less than a year.
(d)
Annualized.
(e)
Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities
received or delivered from processing creations or redemptions, derivatives and in-kind transactions.
See Notes to Consolidated Financial Statements
Page 6
Notes to Consolidated Financial Statements
FT Vest Gold Strategy Target Income ETF® (IGLD)
June 30, 2024 (Unaudited)
1. Organization
First Trust Exchange-Traded Fund (the “Trust”) is an open-end management investment company organized as a Massachusetts business trust on August 8, 2003, and is registered with the Securities and Exchange Commission under the Investment Company Act of 1940, as amended (the “1940 Act”).
This report covers the FT Vest Gold Strategy Target Income ETF® (the “Fund”), a non-diversified series of the Trust, which trades under the ticker “IGLD” on Cboe BZX Exchange, Inc. The Fund represents a separate series of shares of beneficial interest in the Trust. Unlike conventional mutual funds, the Fund issues and redeems shares on a continuous basis, at net asset value (“NAV”), only in large blocks of shares known as “Creation Units.”
The Fund is an actively managed exchange-traded fund. The Fund’s investment objective is to seek to deliver participation in the price returns of the SPDR® Gold Trust (the “Underlying ETF”) while providing a consistent level of income. The Fund’s investments principally include short-term U.S. Treasury securities, cash and cash equivalents, and the shares of a wholly-owned subsidiary (the “Subsidiary”) that holds FLexible EXchange® Options (“FLEX Options”) that reference the price performance of the Underlying ETF. In seeking to achieve its objective, the Fund, through the Subsidiary, will generally purchase or sell FLEX Options. In combination, the purchased call and sold put options generally provide exposure to price returns of the Underlying ETF both on the upside and downside. The Subsidiary is wholly-owned by the Fund and is organized under the laws of the Cayman Islands. The Fund may invest up to 25% of its total assets in the Subsidiary. As of June 30, 2024, the Fund invested 21.23% of the Fund’s total assets in the Subsidiary. There can be no assurance that the Fund will achieve its investment objective. The Fund may not be appropriate for all investors.
2. Significant Accounting Policies
The Fund is considered an investment company and follows accounting and reporting guidance under Financial Accounting Standards Board Accounting Standards Codification Topic 946, “Financial Services-Investment Companies.” The consolidated financial statements include the accounts on a consolidated basis of the Subsidiary. All intercompany accounts and transactions have been eliminated in consolidation. The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of the consolidated financial statements. The preparation of the consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts and disclosures in the consolidated financial statements. Actual results could differ from those estimates.
A. Portfolio Valuation
The Fund’s NAV is determined daily as of the close of regular trading on the New York Stock Exchange (“NYSE”), normally 4:00 p.m. Eastern time, on each day the NYSE is open for trading. If the NYSE closes early on a valuation day, the NAV is determined as of that time. The Fund’s NAV is calculated by dividing the value of all assets of the Fund (including accrued interest and dividends), less all liabilities (including accrued expenses and dividends declared but unpaid), by the total number of shares outstanding.
The Fund’s investments are valued daily at market value or, in the absence of market value with respect to any portfolio securities, at fair value. Market value prices represent readily available market quotations such as last sale or official closing prices from a national or foreign exchange (i.e., a regulated market) and are primarily obtained from third-party pricing services. Fair value prices represent any prices not considered market value prices and are either obtained from a third-party pricing service or are determined by the Pricing Committee of the Fund’s investment advisor, First Trust Advisors L.P. (“First Trust” or the “Advisor”), in accordance with valuation procedures approved by the Trust’s Board of Trustees, and in accordance with provisions of the 1940 Act and rules thereunder. Investments valued by the Advisor’s Pricing Committee, if any, are footnoted as such in the footnotes to the Consolidated Portfolio of Investments. The Fund’s investments are valued as follows:
Exchange-traded options contracts (other than FLEX Option contracts) are valued at the closing price in the market where such contracts are principally traded. If no closing price is available, exchange-traded options contracts are valued at the mean of their most recent bid and ask price, if both are available. Over-the-counter options contracts are valued as follows, depending on the market in which the instrument trades: (1) the mean of their most recent bid and ask price, if available; or (2) a price based on the equivalent exchange-traded option. FLEX Option contracts are normally valued using a model-based price provided by a third-party pricing vendor. On days when a trade in a FLEX Option contract occurs, the trade price will be used to value such FLEX Option contracts in lieu of the model price.
Page 7
Notes to Consolidated Financial Statements (Continued)
FT Vest Gold Strategy Target Income ETF® (IGLD)
June 30, 2024 (Unaudited)
U.S. Treasuries are valued on the basis of valuations provided by a third-party pricing service approved by the Trust’s Board of Trustees.
Shares of open-end funds are valued based on NAV per share.
If the Fund’s investments are not able to be priced by pre-established pricing methods, such investments may be valued by the Trust’s Board of Trustees or its delegate, the Advisor’s Pricing Committee, at fair value. A variety of factors may be considered in determining the fair value of such investments.
Valuing the Fund’s holdings using fair value pricing will result in using prices for those holdings that may differ from current market valuations. The Subsidiary’s holdings will be valued in the same manner as the Fund’s holdings.
The Fund is subject to fair value accounting standards that define fair value, establish the framework for measuring fair value and provide a three-level hierarchy for fair valuation based upon the inputs to the valuation as of the measurement date. The three levels of the fair value hierarchy are as follows:
•  Level 1 – Level 1 inputs are quoted prices in active markets for identical investments. An active market is a market in which transactions for the investment occur with sufficient frequency and volume to provide pricing information on an ongoing basis.
•  Level 2 – Level 2 inputs are observable inputs, either directly or indirectly, and include the following:
o  Quoted prices for similar investments in active markets.
o  Quoted prices for identical or similar investments in markets that are non-active. A non-active market is a market where there are few transactions for the investment, the prices are not current, or price quotations vary substantially either over time or among market makers, or in which little information is released publicly.
o  Inputs other than quoted prices that are observable for the investment (for example, interest rates and yield curves observable at commonly quoted intervals, volatilities, prepayment speeds, loss severities, credit risks, and default rates).
o  Inputs that are derived principally from or corroborated by observable market data by correlation or other means.
•  Level 3 – Level 3 inputs are unobservable inputs. Unobservable inputs may reflect the reporting entity’s own assumptions about the assumptions that market participants would use in pricing the investment.
The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in those investments. A summary of the inputs used to value the Fund’s investments as of June 30, 2024, is included with the Fund’s Consolidated Portfolio of Investments.
B. Investment Transactions and Investment Income
Investment transactions are recorded as of the trade date. Realized gains and losses from investment transactions are recorded on the identified cost basis. Dividend income is recorded on the ex-dividend date. Interest income, if any, is recorded daily on the accrual basis. Amortization of premiums and accretion of discounts are recorded using the effective interest method.
C. FLEX Options
FLEX Options are customized equity or index option contracts that trade on an exchange, but provide investors with the ability to customize key contract terms like exercise prices, styles and expiration dates. FLEX Options are guaranteed for settlement by the Options Clearing Corporation.
The Fund, through the Subsidiary, purchases and sells call and put FLEX Options based on the performance of the Underlying ETF. The FLEX Options that the Subsidiary holds that reference the Underlying ETF will give the Subsidiary the right to receive or deliver shares of the Underlying ETF on the option expiration date at a strike price, depending on whether the option is a put or call option and whether the Subsidiary purchases or sells the option. The FLEX Options held by the Subsidiary are European style options, which are exercisable at the strike price only on the FLEX Option expiration date.
When the Subsidiary writes (sells) an option, an amount equal to the premium received by the Subsidiary is included in “Options contracts written, at value” on the Consolidated Statement of Assets and Liabilities. Gain or loss on written options is presented separately as “Net realized gain (loss) on written options contracts” on the Consolidated Statement of Operations. When the Subsidiary purchases a call or put option, the premium paid represents the cost of the call or put option, which is included in “Options
Page 8
Notes to Consolidated Financial Statements (Continued)
FT Vest Gold Strategy Target Income ETF® (IGLD)
June 30, 2024 (Unaudited)
contracts purchased, at value” on the Consolidated Statement of Assets and Liabilities. Gain or loss on purchased options is included in “Net realized gain (loss) on purchased options contracts” on the Consolidated Statement of Operations.
D. Dividends and Distributions to Shareholders
Dividends from net investment income of the Fund, if any, are declared and paid monthly, or as the Board of Trustees may determine from time to time. Distributions of net realized capital gains earned by the Fund, if any, are distributed at least annually. The Fund may also designate a portion of the amount paid to redeeming shareholders as a distribution for tax purposes.
Distributions from net investment income and realized capital gains are determined in accordance with federal income tax regulations, which may differ from U.S. GAAP. Certain capital accounts in the consolidated financial statements are periodically adjusted for permanent differences in order to reflect their tax character. These permanent differences are primarily due to the varying treatment of income and gain/loss on portfolio securities held by the Fund and have no impact on net assets or NAV per share. Temporary differences, which arise from recognizing certain items of income, expense and gain/loss in different periods for consolidated financial statement and tax purposes, will reverse at some time in the future.
The tax character of distributions paid during the fiscal year ended December 31, 2023 was as follows:
 
Distributions paid from:
 
Ordinary income
$3,928,684
Capital gains
—
Return of capital
1,160,039
As of December 31, 2023, the components of distributable earnings on a tax basis for the Fund were as follows:
 
Undistributed ordinary income
$—
Accumulated capital and other gain (loss)
(55,617
)
Net unrealized appreciation (depreciation)
1,325,266
E. Income Taxes
The Fund intends to continue to qualify as a regulated investment company by complying with the requirements under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”), which includes distributing substantially all of its net investment income and net realized gains to shareholders. Accordingly, no provision has been made for federal and state income taxes. However, due to the timing and amount of distributions, the Fund may be subject to an excise tax of 4% of the amount by which approximately 98% of the Fund’s taxable income exceeds the distributions from such taxable income for the calendar year.
The Subsidiary is classified as a controlled foreign corporation under Subchapter N of the Code. Therefore, the Fund is required to increase its taxable income by its share of the Subsidiary’s income, whether or not such earnings are distributed by the Subsidiary to the Fund. Net investment losses of the Subsidiary cannot be deducted by the Fund in the current period nor carried forward to offset taxable income in future periods.
The Fund is subject to accounting standards that establish a minimum threshold for recognizing, and a system for measuring, the benefits of a tax position taken or expected to be taken in a tax return. The taxable years ended 2021, 2022, and 2023 remain open to federal and state audit. As of June 30, 2024, management has evaluated the application of these standards to the Fund and has determined that no provision for income tax is required in the Fund’s consolidated financial statements for uncertain tax positions.
The Fund intends to utilize provisions of the federal income tax laws, which allow it to carry a realized capital loss forward indefinitely following the year of the loss and offset such loss against any future realized capital gains. The Fund is subject to certain limitations under U.S. tax rules on the use of capital loss carryforwards and net unrealized built-in losses. These limitations apply when there has been a 50% change in ownership. At December 31, 2023, for federal income tax purposes, the Fund had $31,595 of non-expiring capital loss carryforwards available, to the extent provided by regulations, to offset future capital gains. To the extent that these loss carryforwards are used to offset future capital gains, it is probable that the capital gains so offset will not be distributed to the Fund’s shareholders.
Certain losses realized during the current fiscal year may be deferred and treated as occurring on the first day of the following fiscal year for federal income tax purposes. For the fiscal year ended December 31, 2023, the Fund had no net late year ordinary or capital losses.
Page 9
Notes to Consolidated Financial Statements (Continued)
FT Vest Gold Strategy Target Income ETF® (IGLD)
June 30, 2024 (Unaudited)
As of June 30, 2024, the aggregate cost, gross unrealized appreciation, gross unrealized depreciation, and net unrealized appreciation/(depreciation) on investments (including short positions and derivatives, if any) for federal income tax purposes were as follows:
 
Tax Cost
Gross
Unrealized
Appreciation
Gross
Unrealized
(Depreciation)
Net Unrealized
Appreciation
(Depreciation)
$88,971,744
$8,367,557
$(332,200
)
$8,035,357
F. Expenses
Expenses, other than the investment advisory fee and other excluded expenses, are paid by the Advisor (see Note 3).
3. Investment Advisory Fee, Affiliated Transactions and Other Fee Arrangements
First Trust, the investment advisor to the Fund, is a limited partnership with one limited partner, Grace Partners of DuPage L.P., and one general partner, The Charger Corporation. The Charger Corporation is an Illinois corporation controlled by James A. Bowen, Chief Executive Officer of First Trust. First Trust is responsible for the ongoing monitoring of the Fund’s and the Subsidiary’s investment portfolios, managing the Fund’s business affairs and providing certain administrative services necessary for the management of the Fund.
First Trust is responsible for the expenses of the Fund and the Subsidiary including the cost of transfer agency, sub-advisory, custody, fund administration, legal, audit and other services, but excluding fee payments under the Investment Management Agreement, interest, taxes, acquired fund fees and expenses, if any, brokerage commissions and other expenses connected with the execution of portfolio transactions, distribution and service fees payable pursuant to a Rule 12b-1 plan, if any, and extraordinary expenses. The annual unitary management fee payable by the Fund to First Trust for these services will be reduced at certain levels of the Fund’s net assets (“breakpoints”) and calculated pursuant to the following schedule:
 
Breakpoints
 
Fund net assets up to and including $2.5 billion
0.85000
%
Fund net assets greater than $2.5 billion up to and including $5 billion
0.82875
%
Fund net assets greater than $5 billion up to and including $7.5 billion
0.80750
%
Fund net assets greater than $7.5 billion up to and including $10 billion
0.78625
%
Fund net assets greater than $10 billion
0.76500
%
The Subsidiary does not pay First Trust a separate management fee.
Vest Financial LLC (“Vest”), an affiliate of First Trust, serves as the Fund’s sub-advisor and manages the Fund’s portfolio subject to First Trust’s supervision. Pursuant to the Investment Management Agreement, between the Trust, on behalf of the Fund, and the Advisor, and the Investment Sub-Advisory Agreement among the Trust, on behalf of the Fund, the Advisor and Vest, First Trust will supervise Vest and its management of the investment of the Fund’s assets and will pay Vest for its services as the Fund’s sub-advisor a sub-advisory fee equal to 50% of any remaining monthly unitary management fee paid to the Advisor after the average Fund’s expenses accrued during the most recent twelve months are subtracted from the unitary management fee for that month.
The Trust has multiple service agreements with The Bank of New York Mellon (“BNY”). Under the service agreements, BNY performs custodial, fund accounting, certain administrative services, and transfer agency services for the Fund. As custodian, BNY is responsible for custody of the Fund’s assets. As fund accountant and administrator, BNY is responsible for maintaining the books and records of the Fund’s securities and cash. As transfer agent, BNY is responsible for maintaining shareholder records for the Fund. BNY is a subsidiary of The Bank of New York Mellon Corporation, a financial holding company.
Each Trustee who is not an officer or employee of First Trust, any sub-advisor or any of their affiliates (“Independent Trustees”) is paid a fixed annual retainer that is allocated equally among each fund in the First Trust Fund Complex. Each Independent Trustee is also paid an annual per fund fee that varies based on whether the fund is a closed-end or other actively managed fund, a target outcome fund or an index fund.
Additionally, the Chairs of the Audit Committee, Nominating and Governance Committee and Valuation Committee, the Vice Chair of the Audit Committee, the Lead Independent Trustee and the Vice Lead Independent Trustee are paid annual fees to serve in such capacities, with such compensation allocated pro rata among each fund in the First Trust Fund Complex based on net assets.
Page 10
Notes to Consolidated Financial Statements (Continued)
FT Vest Gold Strategy Target Income ETF® (IGLD)
June 30, 2024 (Unaudited)
Independent Trustees are reimbursed for travel and out-of-pocket expenses in connection with all meetings. The Committee Chairs, the Audit Committee Vice Chair, the Lead Independent Trustee and the Vice Lead Independent Trustee rotate periodically in serving in such capacities. The officers and “Interested” Trustee receive no compensation from the Trust for acting in such capacities.
4. Purchases and Sales of Securities
For the six months ended June 30, 2024, the cost of purchases and proceeds from sales of investments, excluding short-term investments, derivatives, and in-kind transactions, were $0 and $0, respectively.
For the six months ended June 30, 2024, the Fund had no in-kind transactions.
5. Derivative Transactions
The following table presents the types of derivatives held by the Subsidiary at June 30, 2024, the primary underlying risk exposure and the location of these instruments as presented on the Consolidated Statement of Assets and Liabilities.
 
 
 
Asset Derivatives
Liability Derivatives
Derivative
Instrument
Risk
Exposure
Consolidated
Statement of Assets and
Liabilities Location
Value
Consolidated
Statement of Assets and
Liabilities Location
Value
Options contracts
Commodity Risk
Options contracts
purchased, at value
$208,223
Options contracts written,
at value
$29,316,971
The following table presents the amount of net realized gain (loss) and change in net unrealized appreciation (depreciation) recognized for the six months ended June 30, 2024, on derivative instruments, as well as the primary underlying risk exposure associated with the instruments.
 
Consolidated Statement of Operations Location
 
Commodity Risk Exposure
Net realized gain (loss) on:
Purchased options contracts
$(32,679
)
Written options contracts
(2,097,456
)
Net change in unrealized appreciation (depreciation) on:
Purchased options contracts
(441,344
)
Written options contracts
7,622,729
During the six months ended June 30, 2024, the premiums for purchased options contracts opened were $64,479 and the premiums for purchased options contracts closed, exercised and expired were $67,830.
During the six months ended June 30, 2024, the premiums for written options contracts opened were $9,028,626 and the premiums for written options contracts closed, exercised and expired were $7,934,330.
The Fund does not have the right to offset financial assets and financial liabilities related to options contracts on the Consolidated Statement of Assets and Liabilities.
6. Creations, Redemptions and Transaction Fees
The Fund generally issues and redeems its shares in primary market transactions through a creation and redemption mechanism and does not sell or redeem individual shares. Instead, financial entities known as “Authorized Participants” have contractual arrangements with the Fund or one of the Fund’s service providers to purchase and redeem Fund shares directly with the Fund in Creation Units. Prior to the start of trading on every business day, the Fund publishes through the National Securities Clearing Corporation the “basket” of securities, cash or other assets that it will accept in exchange for a Creation Unit of the Fund’s shares. An Authorized Participant that wishes to effectuate a creation of the Fund’s shares deposits with the Fund the “basket” of securities, cash or other assets identified by the Fund that day, and then receives the Creation Unit of the Fund’s shares in return for those assets. After purchasing a Creation Unit, the Authorized Participant may continue to hold the Fund’s shares or sell them in the secondary market. The redemption process is the reverse of the purchase process: the Authorized Participant redeems a Creation Unit of the Fund’s shares for a basket of securities, cash or other assets. The combination of the creation and redemption process with secondary market
Page 11
Notes to Consolidated Financial Statements (Continued)
FT Vest Gold Strategy Target Income ETF® (IGLD)
June 30, 2024 (Unaudited)
trading in the Fund’s shares and underlying securities provides arbitrage opportunities that are designed to help keep the market price of the Fund’s shares at or close to the NAV per share of the Fund.
The Fund imposes fees in connection with the purchase of Creation Units. These fees may vary based upon various fact-based circumstances, including, but not limited to, the composition of the securities included in the Creation Unit or the countries in which the transactions are settled. The price for each Creation Unit will equal the daily NAV per share of the Fund times the number of shares in a Creation Unit, plus the fees described above and, if applicable, any operational processing and brokerage costs, transfer fees, stamp taxes and part or all of the spread between the expected bid and offer side of the market related to the securities comprising the creation basket.
The Fund also imposes fees in connection with the redemption of Creation Units. These fees may vary based upon various fact-based circumstances, including, but not limited to, the composition of the securities included in the Creation Unit or the countries in which the transactions are settled. The price received for each Creation Unit will equal the daily NAV per share of the Fund times the number of shares in a Creation Unit, minus the fees described above and, if applicable, any operational processing and brokerage costs, transfer fees, stamp taxes and part or all of the spread between the expected bid and offer side of the market related to the securities comprising the redemption basket. Investors who use the services of a broker or other such intermediary in addition to an Authorized Participant to effect a redemption of a Creation Unit may also be assessed an amount to cover the cost of such services. The redemption fee charged by the Fund will comply with Rule 22c-2 of the 1940 Act which limits redemption fees to no more than 2% of the value of the shares redeemed.
7. Distribution Plan
The Board of Trustees adopted a Distribution and Service Plan pursuant to Rule 12b-1 under the 1940 Act. In accordance with the Rule 12b-1 plan, the Fund is authorized to pay an amount up to 0.25% of its average daily net assets each year to reimburse First Trust Portfolios L.P. (“FTP”), the distributor of the Fund, for amounts expended to finance activities primarily intended to result in the sale of Creation Units or the provision of investor services. FTP may also use this amount to compensate securities dealers or other persons that are Authorized Participants for providing distribution assistance, including broker-dealer and shareholder support and educational and promotional services.
No 12b-1 fees are currently paid by the Fund, and pursuant to a contractual arrangement, no 12b-1 fees will be paid any time before April 30, 2025.
8. Indemnification
The Trust, on behalf of the Fund, has a variety of indemnification obligations under contracts with its service providers. The Trust’s maximum exposure under these arrangements is unknown. However, the Trust has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.
9. Subsequent Events
Management has evaluated the impact of all subsequent events on the Fund through the date the consolidated financial statements were issued and has determined that there were no subsequent events requiring recognition or disclosure in the consolidated financial statements that have not already been disclosed.
Page 12
Other Information
FT Vest Gold Strategy Target Income ETF® (IGLD)
June 30, 2024 (Unaudited)
Changes in and Disagreements with Accountants (Item 8 of Form N-CSR)
There were no changes in or disagreements with the Fund’s accountants during the six months ended June 30, 2024.
Proxy Disclosures (Item 9 of Form N-CSR)
There were no matters submitted for vote by shareholders of the Fund during the six months ended June 30, 2024.
Remuneration Paid to Directors, Officers, and Others (Item 10 of Form N-CSR)
Independent Trustees and any member of any advisory board of the Fund are compensated through the unitary management fee paid by the Fund to the advisor and not directly by the Fund. The investment advisory fee paid is included in the Consolidated Statement of Operations.
Statement Regarding the Basis for the Board’s Approval of Investment Advisory Contract (Item 11 of Form N-CSR)
The Board of Trustees of First Trust Exchange-Traded Fund (the “Trust”), including the Independent Trustees, unanimously approved the continuation of the Investment Management Agreement (the “Advisory Agreement”) with First Trust Advisors L.P. (the “Advisor”) on behalf of the FT Vest Gold Strategy Target Income ETF (the “Fund”) and the Investment Sub-Advisory Agreement (the “Sub-Advisory Agreement” and together with the Advisory Agreement, the “Agreements”) among the Trust, on behalf of the Fund, the Advisor and Vest Financial LLC (the “Sub-Advisor”). The Board approved the continuation of the Agreements for a one-year period ending June 30, 2025 at a meeting held on June 2–3, 2024. The Board determined that the continuation of the Agreements is in the best interests of the Fund in light of the nature, extent and quality of the services provided and such other matters as the Board considered to be relevant in the exercise of its business judgment.
To reach this determination, the Board considered its duties under the Investment Company Act of 1940, as amended (the “1940 Act”), as well as under the general principles of state law, in reviewing and approving advisory contracts; the requirements of the 1940 Act in such matters; the fiduciary duty of investment advisors with respect to advisory agreements and compensation; the standards used by courts in determining whether investment company boards have fulfilled their duties; and the factors to be considered by the Board in voting on such agreements. At meetings held on April 16, 2024, April 25, 2024 and June 2–3, 2024, the Board, including the Independent Trustees, reviewed materials provided by the Advisor and the Sub-Advisor responding to requests for information from counsel to the Independent Trustees, submitted on behalf of the Independent Trustees, that, among other things, outlined: the services provided by the Advisor and the Sub-Advisor to the Fund (including the relevant personnel responsible for these services and their experience); the unitary fee rate schedule payable by the Fund as compared to fees charged to a peer group of funds (the “Expense Group”) and a broad peer universe of funds (the “Expense Universe”), each assembled by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent source, and as compared to fees charged to other clients of the Advisor, including other exchange-traded funds (“ETFs”) managed by the Advisor; the sub-advisory fee as compared to fees charged to other clients of the Sub-Advisor; the expense ratio of the Fund as compared to expense ratios of the funds in the Fund’s Expense Group and Expense Universe; performance information for the Fund, including comparisons of the Fund’s performance to that of one or more relevant benchmark indexes and to that of a performance group of funds and a broad performance universe of funds (the “Performance Universe”), each assembled by Broadridge; the nature of expenses incurred in providing services to the Fund and the potential for the Advisor and the Sub-Advisor to realize economies of scale, if any; profitability and other financial data for the Advisor; financial data for the Sub-Advisor; any indirect benefits to the Advisor and its affiliates, First Trust Portfolios L.P. (“FTP”) and First Trust Capital Partners, LLC (“FTCP”), and the Sub-Advisor; and information on the Advisor’s and the Sub-Advisor’s compliance programs. The Board reviewed initial materials with the Advisor at the meeting held on April 25, 2024, prior to which the Independent Trustees and their counsel met separately to discuss the information provided by the Advisor and the Sub-Advisor. Following the April 25, 2024 meeting, counsel to the Independent Trustees, on behalf of the Independent Trustees, requested certain clarifications and supplements to the materials provided, and the information provided in response to those requests was considered at an executive session of the Independent Trustees and their counsel held prior to the June 2–3, 2024 meeting, as well as at the June meeting. The Board applied its business judgment to determine whether the arrangements between the Trust and the Advisor and among the Trust, the Advisor and the Sub-Advisor continue to be reasonable business arrangements from the Fund’s perspective. The Board determined that, given the totality of the information provided with respect to the Agreements, the Board had received sufficient information to renew the Agreements. The Board considered that shareholders chose to invest or remain invested in the Fund knowing that the Advisor and the Sub-Advisor manage the Fund and knowing the Fund’s unitary fee.
In reviewing the Agreements, the Board considered the nature, extent and quality of the services provided by the Advisor and the Sub-Advisor under the Agreements. With respect to the Advisory Agreement, the Board considered that the Advisor is responsible for the
Page 13
Other Information (Continued)
FT Vest Gold Strategy Target Income ETF® (IGLD)
June 30, 2024 (Unaudited)
overall management and administration of the Trust and the Fund and reviewed all of the services provided by the Advisor to the Fund, including the oversight of the Sub-Advisor, as well as the background and experience of the persons responsible for such services. The Board noted that the Advisor oversees the Sub-Advisor’s day-to-day management of the Fund’s investments, including portfolio risk monitoring and performance review. In reviewing the services provided, the Board noted the compliance program that had been developed by the Advisor and considered that it includes a robust program for monitoring the Advisor’s, the Sub-Advisor’s and the Fund’s compliance with the 1940 Act, as well as the Fund’s compliance with its investment objective, policies and restrictions. The Board also considered a report from the Advisor with respect to its risk management functions related to the operation of the Fund. Finally, as part of the Board’s consideration of the Advisor’s services, the Advisor, in its written materials and at the April 25, 2024 meeting, described to the Board the scope of its ongoing investment in additional personnel and infrastructure to maintain and improve the quality of services provided to the Fund and the other funds in the First Trust Fund Complex. With respect to the Sub-Advisory Agreement, the Board noted that the Fund is an actively-managed ETF and the Sub-Advisor actively manages the Fund’s investments. The Board reviewed the materials provided by the Sub-Advisor and considered the services that the Sub-Advisor provides to the Fund, including the Sub-Advisor’s day-to-day management of the Fund’s investments. In considering the Sub-Advisor’s management of the Fund, the Board noted the background and experience of the Sub-Advisor’s portfolio management team, including the Board’s prior meetings with members of the portfolio management team. In light of the information presented and the considerations made, the Board concluded that the nature, extent and quality of the services provided to the Trust and the Fund by the Advisor and the Sub-Advisor under the Agreements have been and are expected to remain satisfactory and that the Sub-Advisor, under the oversight of the Advisor, has managed the Fund consistent with its investment objective, policies and restrictions.
The Board considered the unitary fee rate schedule payable by the Fund under the Advisory Agreement for the services provided. The Board noted that the sub-advisory fee is paid by the Advisor from the unitary fee. The Board considered that as part of the unitary fee the Advisor is responsible for the Fund’s expenses, including the cost of sub-advisory, transfer agency, custody, fund administration, legal, audit and other services and license fees, if any, but excluding the fee payment under the Advisory Agreement and interest, taxes, brokerage commissions and other expenses connected with the execution of portfolio transactions, distribution and service fees pursuant to a Rule 12b-1 plan, if any, and extraordinary expenses, if any. The Board received and reviewed information showing the fee rates and expense ratios of the peer funds in the Expense Group, as well as advisory and unitary fee rates charged by the Advisor and the Sub-Advisor to other fund (including ETFs) and non-fund clients, as applicable. Because the Fund pays a unitary fee, the Board determined that expense ratios were the most relevant comparative data point. Based on the information provided, the Board noted that the total (net) expense ratio for the Fund was above the median total (net) expense ratio of the peer funds in the Expense Group. With respect to the Expense Group, the Board discussed with Broadridge its methodology for assembling peer groups and discussed with the Advisor limitations in creating peer groups for actively-managed ETFs, and different business models that may affect the pricing of services among ETF sponsors. The Board also noted that not all peer funds employ an advisor/sub-advisor management structure. The Board took these limitations and differences into account in considering the peer data. With respect to fees charged to other non-ETF clients, the Board considered differences between the Fund and other non-ETF clients that limited their comparability. In considering the unitary fee rate schedule overall, the Board also considered the Advisor’s statement that it seeks to meet investor needs through innovative and value-added investment solutions and the Advisor’s demonstrated long-term commitment to the Fund and the other funds in the First Trust Fund Complex.
The Board considered performance information for the Fund. The Board noted the process it has established for monitoring the Fund’s performance and portfolio risk on an ongoing basis, which includes quarterly performance reporting from the Advisor and the Sub-Advisor for the Fund. The Board determined that this process continues to be effective for reviewing the Fund’s performance. The Board received and reviewed information comparing the Fund’s performance for the one-year period ended December 31, 2023 to the performance of the funds in the Performance Universe and to that of a benchmark index. Based on the information provided, the Board noted that the Fund underperformed the Performance Universe median and the benchmark index for the one-year period ended December 31, 2023. The Board considered that the Fund follows an options-based strategy that seeks to deliver participation in the price returns of the SPDR Gold Trust while providing a consistent level of income, and took this strategy into account when considering the comparative performance information.
On the basis of all the information provided on the unitary fee and performance of the Fund and the ongoing oversight by the Board, the Board concluded that the unitary fee for the Fund (out of which the Sub-Advisor is compensated) continues to be reasonable and appropriate in light of the nature, extent and quality of the services provided by the Advisor and the Sub-Advisor to the Fund under the Agreements.
The Board considered information and discussed with the Advisor whether there were any economies of scale in connection with providing advisory services to the Fund at current asset levels and whether the Fund may benefit from any economies of scale. The
Page 14
Other Information (Continued)
FT Vest Gold Strategy Target Income ETF® (IGLD)
June 30, 2024 (Unaudited)
Board noted that the unitary fee rate schedule for the Fund includes breakpoints pursuant to which the unitary fee rate will be reduced as assets of the Fund meet certain thresholds. The Board considered the Advisor’s statement that it believes that its expenses relating to providing advisory services to the Fund will increase during the next twelve months as the Advisor continues to build infrastructure and add new staff. The Board also noted that under the unitary fee structure, any reduction in expenses associated with the management and operations of the Fund would benefit the Advisor, but that the unitary fee structure provides a level of certainty in expenses for shareholders of the Fund. The Board concluded that the unitary fee rate schedule for the Fund reflects an appropriate level of sharing of any economies of scale that may be realized in the management of the Fund at current asset levels. The Board considered the revenues and allocated costs (including the allocation methodology) of the Advisor in serving as investment advisor to the Fund for the twelve months ended December 31, 2023 and the estimated profitability level for the Fund calculated by the Advisor based on such data, as well as complex-wide and product-line profitability data, for the same period. The Board noted the inherent limitations in the profitability analysis and concluded that, based on the information provided, the Advisor’s profitability level for the Fund was not unreasonable. In addition, the Board considered indirect benefits described by the Advisor that may be realized from its relationship with the Fund. The Board considered that the Advisor had identified as an indirect benefit to the Advisor and FTP their exposure to investors and brokers who, absent their exposure to the Fund, may have had no dealings with the Advisor or FTP. The Board also noted that FTCP has a controlling ownership interest in the Sub-Advisor’s parent company and considered potential indirect benefits to the Advisor from such ownership interest. The Board concluded that the character and amount of potential indirect benefits to the Advisor were not unreasonable.
The Board considered the Sub-Advisor’s statement that it believes that the sub-advisory fee for the Fund is appropriate. The Board noted the Sub-Advisor’s statements that it continues to invest in infrastructure, technology and personnel, and that it anticipates that its expenses relating to providing services to the Fund will remain approximately the same for the next twelve months. The Board noted that the Advisor pays the Sub-Advisor from the unitary fee, that the sub-advisory fee will be reduced consistent with the breakpoints in the unitary fee rate schedule and its understanding that the Fund’s sub-advisory fee was the product of an arm’s length negotiation. The Board did not review the profitability of the Sub-Advisor with respect to the Fund. The Board concluded that the profitability analysis for the Advisor was more relevant. The Board considered the potential indirect benefits to the Sub-Advisor from being associated with the Advisor and the Fund, and noted the Sub-Advisor’s statements that it is the Sub-Advisor’s policy currently not to enter into soft-dollar arrangements for the procurement of research services in connection with client securities transactions and that, as a result, there are no foreseen indirect benefits from its relationship with the Fund. The Board also considered the potential indirect benefits to the Sub-Advisor from FTCP’s controlling ownership interest in the Sub-Advisor’s parent company. The Board concluded that the character and amount of potential indirect benefits to the Sub-Advisor were not unreasonable.
Based on all of the information considered and the conclusions reached, the Board, including the Independent Trustees, unanimously determined that the terms of the Agreements continue to be fair and reasonable and that the continuation of the Agreements is in the best interests of the Fund. No single factor was determinative in the Board’s analysis.
Disclaimer
The Fund is not sponsored, endorsed, sold or promoted by SPDR® Gold Trust and World Gold Trust Services, LLC, (together with their affiliates hereinafter referred to as the “Corporations”). The Corporations have not passed on the legality or suitability of, or the accuracy or adequacy of, descriptions and disclosures relating to the Fund or the FLEX Options. The Corporations make no representations or warranties, express or implied, regarding the advisability of investing in the Fund or the FLEX Options or results to be obtained by the Fund or the FLEX Options, shareholders or any other person or entity from use of the Underlying ETF. The Corporations have no liability in connection with the management, administration, marketing or trading of the Fund or the FLEX Options.
Page 15
 
 

 

 

(b) The Financial Highlights is included in the Financial Statements and Other Information filed under Item 7(a) of this form.

Item 8. Changes in and Disagreements with Accountants for Open-End Management Investment Companies.

(a) Not applicable to the Registrant.

Item 9. Proxy Disclosures for Open-End Management Investment Companies.

Not applicable to the Registrant.

Item 10. Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies

This information is included in the Financial Statements and Other Information filed under Item 7 of this Form N-CSR.

Item 11. Statement Regarding Basis for Approval of Investment Advisory Contract.

This information is included in the Financial Statements and Other Information filed under Item 7 of this Form N-CSR.

Item 12. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable to the Registrant.

Item 13. Portfolio Managers of Closed-End Management Investment Companies.

Not applicable to the Registrant.

Item 14. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable to the Registrant.

Item 15. Submission of Matters to a Vote of Security Holders.

There have been no material changes to the procedures by which the shareholders may recommend nominees to the registrant’s board of directors, where those changes were implemented after the registrant last provided disclosure in response to the requirements of Item 407(c)(2)(iv) of Regulation S-K (17 CFR 229.407) (as required by Item 22(b)(15) of Schedule 14A (17 CFR 240.14a-101)), or this Item.

Item 16. Controls and Procedures.

(a) The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)).
(b) There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 17. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.

(a) Not applicable to the Registrant.
(b) Not applicable to the Registrant.

Item 18. Recovery of Erroneously Awarded Compensation.

(a) Not applicable to the Registrant.
(b) Not applicable to the Registrant.

Item 19. Exhibits.

(a)(1) Not applicable to semi-annual reports on Form N-CSR.
(a)(2) The certifications required by Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2022 are attached hereto.
(a)(3) Not applicable to the Registrant.
(a)(4) Not applicable to the Registrant.
(b) Certifications pursuant to Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto.

 

 

 

 

 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

(registrant)   First Trust Exchange-Traded Fund
By (Signature and Title)*   /s/ James M. Dykas
    James M. Dykas, President and Chief Executive Officer
(principal executive officer)
Date:   September 6, 2024  

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By (Signature and Title)*   /s/ James M. Dykas
    James M. Dykas, President and Chief Executive Officer
(principal executive officer)
Date:   September 6, 2024  
By (Signature and Title)*   /s/ Derek D. Maltbie
    Derek D. Maltbie, Treasurer, Chief Financial Officer
and Chief Accounting Officer
(principal financial officer)
Date:   September 6, 2024  

* Print the name and title of each signing officer under his or her signature.