First Trust Dow Jones International Internet ETF (FDNI) Exchange: NASDAQ

The Fund will normally invest at least 90% of its net assets (including investment borrowings) in the common stocks and depositary receipts 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 developed, maintained and sponsored by S&P Dow Jones Indices LLC ("SPDJI" or the "Index Provider"). The Index Provider reserves the right to make exceptions when applying the methodology if the need arises. In addition, the Index Provider may revise Index policy covering rules for selecting companies, treatment of dividends, share counts or other matters.The Index is designed to measure the performance of securities of non-U.S. issuers whose primary business focus is Internet-related. The Index selects 40 securities from the S&P Global ex-U.S. Broad Market Index, including the securities of issuers operating in both developed and emerging markets, issued by companies that derive a majority of their revenues from Internet commerce or Internet services. The S&P Global ex-U.S. Broad Market Index is a broad-based equity index that seeks to measure the performance of the global stock market, excluding the United States. As determined by the Index Provider, "Internet Commerce Companies" are those companies that derive the majority of their revenue from providing goods or services through the Internet. "Internet Services Companies" are those companies that derive the majority of their revenue from providing access to the Internet or providing services to people using the Internet. Twenty securities comprising the Index will be those issued by Internet Commerce Companies and twenty securities will be those issued by Internet Services Companies.In addition to the requirement that a company derive a majority of its revenue from Internet commerce or Internet services, the Index also excludes the securities of those companies that do not have a market capitalization of at least $1 billion and a six-month median daily traded value of at least $5 million. Once included in the Index, a company must maintain a market capitalization of at least $800 million and a six-month median daily traded value of at least $4 million to remain eligible for inclusion in the Index. In addition, to be eligible for inclusion in the Index, a security must be listed on a securities exchange located in a developed market country. The Index is selected by including the securities of the 20 Internet Commerce Companies with the largest market capitalization and 20 Internet Services Companies with the largest market capitalization that satisfy all eligibility requirements. In an effort to minimize portfolio turnover, the Index contains a mechanism that favors for inclusion a security that already comprises the Index over a security that does not if the two securities have similar market capitalization ranks. The Index is weighted according to free float (i.e. the amount available for trading) market capitalization. However, the weight for an individual security is capped at 10%.The Index is reconstituted and rebalanced quarterly and the Fund will make corresponding changes to its portfolio shortly after the Index changes are made public. The Index's quarterly 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 December 31, 2019, the Fund had significant investments in communication services companies and consumer discretionary companies and Chinese issuers and Asian issuers, although this may change from time to time. To the extent the Fund invests a significant portion of its assets in a given jurisdiction or investment sector, the Fund may be exposed to the risks associated with that jurisdiction or investment sector.The Fund is classified as "non-diversified" under the Investment Company Act of 1940, as amended (the "1940 Act").