First Trust Dorsey Wright People`s Portfolio ETF (DWPP) Exchange: NASDAQ

The Fund will normally invest at least 80% of its total assets (including investment borrowings) in the common stocks or U.S. Treasury Bills ("T-Bills") that comprise the Index. The Fund, using an "indexing" investment approach, attempts to replicate, before fees and expenses, the performance of the Index. The Fund's investment advisor seeks a correlation of 0.95 or better (before fees and expenses) between the Fund's performance and the performance of the Index; a figure of 1.00 would represent perfect correlation. The Index is owned and was developed by Nasdaq, Inc. (the "Index Provider"). The Index Provider may, from time to time, exercise reasonable discretion as it deems appropriate in order to ensure Index integrity.The Index is a modified market-capitalization weighted index designed to tactically allocate exposure to one of three indices: (i) Nasdaq US 500 Large Cap Index; (ii) Nasdaq US 500 Large Cap Equal Weight Index; or (iii) Nasdaq US T-Bill Index (each, an "Underlying Index"), based on daily relative strength readings. The Nasdaq US 500 Large Cap Index and the Nasdaq US 500 Large Cap Equal Weight Index (each, an "Underlying Equity Index") are equity indices that seek to provide exposure to the 500 securities with the highest float-adjusted market capitalization comprising the Nasdaq US Benchmark Index. Therefore, each Underlying Equity Index is composed of the same constituent securities. What differs, however, is the methodology each Underlying Equity Index utilizes to assign security weights. The Nasdaq US 500 Large Cap Index assigns security weights based on market capitalization and the Nasdaq US 500 Large Cap Equal Weight Index weights components equally. The third Underlying Index is the Nasdaq US T-Bill Index (the "Underlying T-Bills Index"). The Underlying T-Bills Index is designed to act as a U.S. dollar-denominated cash position through the use of nine T-Bills ranging from 30 to 91 days in duration. A T-Bill is a short-term debt obligation backed by the U.S. government with a maturity of less than one year, sold in denominations of $1,000 up to a maximum purchase price of $5 million.The Index is designed upon the principle that the Underlying Index exhibiting the highest levels of "relative strength," based on current prices, will be the Index with the best performance over the near term. A relative strength calculation is an objective method of comparing two investment options to determine which of the two is exhibiting greater forward price momentum. To determine which of the three Underlying Indices is exhibiting the greatest price momentum, on a daily basis, the Index compares the relative strength of the three Underlying Indices using "point and figure" charting. The Index first compares the relative strength of the two Underlying Equity Indices. The Index then compares the relative strength of the "winning" Underlying Equity Index (the Underlying Equity Index with the greater relative strength) against that of a cash-like proxy that replicates the rate of return on the 13-week T-Bill. The Index will select and weight the components of the Underlying Index (either the "winning" Underlying Equity Index or the Underlying T-Bills Index if the cash proxy is the "winner") exhibiting the greatest levels of relative strength. This process is conducted on a daily basis. As a result of this daily determination, the Fund's strategy may involve frequently buying and selling portfolio securities to reallocate the Fund's exposure to the equity securities or T-Bills in which the Index is invested. The Underlying Equity Indices are rebalanced and reconstituted semi-annually and the Underlying T-Bills Index is rebalanced and reconstituted weekly. If the Index is invested in an Underlying Index on a date when the Underlying Index rebalances, the Index will also rebalance. The Index is rebalanced and reconstituted periodically and the Fund will make corresponding changes to its portfolio shortly after the Index changes are made public. The Index's periodic rebalance and reconstitution schedule may cause the Fund to experience a higher rate of portfolio turnover. The Fund will be concentrated in an industry or a group of industries to the extent that the Index is so concentrated. As of March 31, 2020, the Index was composed of 9 securities. To the extent the Fund invests a significant portion of its assets in a given jurisdiction or investment sector, the Fund may be exposed to the risks associated with that jurisdiction or investment sector.