Fund Description: First Trust NASDAQ Global Auto Index Fund is an exchange-traded index fund or Index ETF which is a separate investment portfolio of the First Trust Exchange-Traded Fund II, an open-end investment management company. INVESTMENT OBJECTIVE: The First Trust NASDAQ Global Auto Index Fund seeks investment results that correspond generally to the price and yield, before the Fund's fees and expenses, of the NASDAQ OMX Global Auto Index. INDEX DESCRIPTION: The NASDAQ OMX Global Auto Index is designed to track the performance of the largest and most liquid companies engaged in manufacturing of automobiles. The Index uses a modified market-capitalization weighting methodology. The Index Provider, NASDAQ OMX Group, Inc., evaluates the Index components annually in June of each year for eligibility, using market data through the end of May. Eligible components for the Index are identified as such using the eligibility criteria. Changes to the Index are made effective after the close of trading on the third Friday in June. The Index is rebalanced quarterly, each March, June, September and December. As of March 31, 2011, the Index was comprised of 32 securities from nine countries, which included the United States and Japan. The Index Provider has contracted with Standard & Poor's to calculate and maintain the Index. FUND STRATEGY: The Fund, using an indexing investment approach, attempts to replicate, before fees and expenses, the performance of the Index. The Fund will normally invest at least 90% of its net assets (plus the amount of any borrowings for investment purposes) in common stocks included in the Index. The Fund intends to invest entirely in the Index, however, there may also be instances in which the Fund may be underweighted or overweighted in certain securities in the Index, not invest in certain securities included in the Index, purchase securities not in the Index that are appropriate to substitute for certain securities in the Index or utilize various combinations of the above techniques in seeking to track the Index. FUND MANAGEMENT: First Trust Advisors L.P. serves as investment advisor to the Fund with overall responsibility for the general management and administration of the Fund, subject to the policies of the Board.