Fund Description: First Trust NYSE Arca Biotechnology Index Fund, formerly First Trust Amex Biotechnology Index 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 management investment company. INVESTMENT OBJECTIVE: The First Trust NYSE Arca Biotechnology Index Fund seeks investment results that correspond generally to the price and yield, before fees and expenses, of the NYSE Arca Biotechnology Index. INDEX DESCRIPTION: The NYSE Arca Biotechnology Index is an equal dollar weighted index designed to measure the performance of a cross section of companies in the biotechnology industry that are primarily involved in the use of biological processes to develop products or provide services. Such processes include, but are not limited to, recombinant DNA technology, molecular biology, genetic engineering, monoclonal antibody-based technology, lipid/liposome technology, and genomics. The Index is rebalanced quarterly based on closing prices on the third Friday in January, April, July and October to ensure that each component stock continues to represent approximately equal weight in the Index. As of March 2011 the Index consisted of 20 companies. FUND STRATEGY: The Fund will normally invest at least 90% of its total assets in common stocks that comprise the Index. In seeking to achieve the Fund's investment objective, the Fund generally will invest in all of the stocks comprising the Index in proportion to their weightings in the Index. However, under various circumstances, it may not be possible or practicable to purchase all of those stocks in those weightings. In those circumstances, the Fund may purchase a sample of stocks in the Index. There may also be instances in which the Advisor may choose to overweight certain stocks in the Index, purchase securities not in the Index which are appropriate to substitute for certain securities in the Index, use futures or other derivative instruments, or utilize various combinations of the above techniques in seeking to track the Index. The Fund may sell stocks that are represented in the Index in anticipation of their removal from the Index or purchase stocks not represented in the Index in anticipation of their addition to the Index. FUND MANAGEMENT : First Trust Advisors L.P. is the investment adviser for the Fund.