Fund Description: First Trust Dorsey Wright People’s Portfolio ETF, formerly First Trust CBOE S&P 500 VIX Tail Hedge Fund, is an exchange-traded index fund or Index ETF which is a separate investment portfolio of the First Trust Exchange-Traded Fund, an open-end investment management company. INVESTMENT OBJECTIVE: The First Trust Dorsey Wright People’s Portfolio ETF seeks investment results that correspond to the price and yield, before the Fund's fees and expenses, of the Nasdaq Dorsey Wright People's Portfolio Index. INDEX DESCRIPTION: The Nasdaq Dorsey Wright People's Portfolio Index is designed to provide exposure to either the U.S. equity market or T-Bills, based upon daily relative strength readings resulting from a wholly-quantitative process. The Index always holds exactly one of three possible positions: all the component securities in the Nasdaq US 500 Large Cap Index, all the component securities of the Nasdaq US 500 Large Cap Equal Weight Index or all the component securities of the Nasdaq US T-Bill Index. Each of the Nasdaq US 500 Large Cap Index and the Nasdaq US 500 Large Cap Equal Weight Index contains the same constituent securities, the 500 securities with the highest float market capitalization comprising the NASDAQ US Benchmark Index but weights them differently. The Nasdaq US 500 Large Cap Index weights the securities according to their market capitalization and the Nasdaq US 500 Large Cap Equal Index weights them equally. The Nasdaq US T-Bill Index (the Cash Index) is designed to act as a US dollar-denominated cash position through the use of nine T-Bills ranging from 30 to 91 days in duration. Relative strength measures the price performance of a security versus a market average, another security or a universe of securities and is a way of recording historic price performance patterns. The Index compares relative strength using point and figure charting, which is a method of charting that uses columns (also known as ratio lines) consisting of either Xs or Os. The direction and comparison of these columns provide an objective interpretation of the trend or momentum in the relative strength of a particular Index. The Index showing the best point and figure relative strength rating will be the Index in which the Fund invests. The Equity Indices rebalance on a semi-annual basis and the Cash Index rebalances on a weekly basis. If the Index is invested in an Underlying Index on a date when it rebalances, the Index will also rebalance. FUND STRATEGY: The Fund will normally invest at least 80% of its total assets (including investment borrowings) in 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 is classified as non-diversified. FUND MANAGEMENT: First Trust Advisors L.P. serves as the investment adviser to the Fund.