First Trust Merger Arbitrage ETF (MARB) Exchange: NYSE ARCA

Under normal market conditions, the Fund seeks to achieve its investment objective by establishing long and short positions in the equity securities of companies that are involved in a publicly-announced significant corporate event, such as a merger or acquisition. The Fund's portfolio may include equity securities issued by U.S. and non-U.S. companies, including American Depositary Receipts ("ADRs"), and derivatives, including total return swaps. The Fund may invest in securities issued by small, mid and large capitalization issuers.The Fund's investment sub-advisor, Vivaldi Asset Management, LLC ("Vivaldi" or the "Sub-Advisor"), generally seeks to take advantage of the return opportunity presented by the natural deal spread that emerges after the announcement of a merger or acquisition by purchasing the stock of the company being acquired (the "target company"), while shorting the stock of the company acquiring the target company's stock (the "acquiring company"). The profit which may be realized is the "spread," or difference in price between the trading price of the target company's stock following the announcement of the corporate event and the contractual price to be paid for the target company stock in the future when the transaction closes. Such a spread typically exists due to the uncertainty regarding whether the announced merger, acquisition or other corporate event will close, and if it closes, that such transaction will be at the initially proposed economic terms. Only the securities of companies involved in publicly-announced transactions are eligible for inclusion in the Fund's portfolio. Merger arbitrage, when executed well, has the potential to produce a differentiated and robust absolute return stream.In deciding upon which opportunities to invest in, the Sub-Advisor assesses a number of factors, including, but not limited to, the probability that the merger will be completed, the attractiveness of a transaction relative to others in the arbitrage universe, and any unique risks which may decrease the likelihood that a transaction will close. Every transaction has its unique set of elements, and the Sub-Advisor's investment process relies on real-time quantitative-based research to evaluate how attractive each transaction is relative to other deals in the arbitrage universe. The Fund adheres to that quantitative criteria to separate which deals to invest in and which to avoid. In the event that the Sub-Advisor cannot find enough securities that satisfy its investment criteria, the Fund may hold a significant amount of cash or cash equivalents.The Sub-Advisor intends to engage in short selling. Short selling is a technique that allows an investor (such as the Fund) to profit from the falling price of a security. It involves selling a security that has been borrowed from a third-party with the intention of buying an identical security back at a later date to return to that third-party. The Fund's short positions may be significant, however, the Fund will at all times comply with the regulatory requirements of the Securities and Exchange Commission with respect to coverage of the Fund's short positions. The Fund intends to invest the proceeds from a sale of a borrowed security in cash or cash equivalents, including money market funds. The Fund's investment strategy may include active and frequent trading.The Fund is classified as "non-diversified" under the Investment Company Act of 1940, as amended (the "1940 Act").