Fund Description: First Trust Lunt U.S. Factor Rotation ETF 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 Lunt U.S. Factor Rotation ETF seeks investment results that correspond to the price and yield, before the Fund's fees and expenses, of the Lunt Capital Large Cap Factor Rotation Index. INDEX DESCRIPTION: The Lunt Capital Large Cap Factor Rotation Index is designed to provide exposure to U.S. large cap equities grouped into four separate factors, with factors emphasized within the Index as they come into favor in the U.S. marketplace. The Index utilizes the Lunt Capital Management, Inc. (Index Provider) risk-adjusted relative strength methodology to rotate among eight sub-indices, each of which exhibits characteristics of one of the four primary factors: momentum, value, quality and volatility. The Index Provider's risk-adjusted relative strength score is designed to identify the sub-indices with the greatest return potential with the least amount of risk and is calculated as the return per unit of risk for each sub-index, measured as the standard deviation of returns over the course of the prior 12-months for each sub-index. There are two sub-indices for each of the four factors, with each sub-index representing one end of the spectrum for stocks exhibiting the greatest and least characteristics of that factor. The sub-indices are composed of U.S. large cap equity securities weighted by factor score within each sub-index, with the highest scoring security receiving the highest weight. The Index will consist of between approximately 150 to 200 securities at any time. FUND STRATEGY: The Fund will normally invest at least 90% of its net assets (including investment borrowings) in common stocks that comprise the Index. The Fund is classified as non-diversified. FUND MANAGEMENT: First Trust Advisors L.P. serves as the investment adviser to the Fund.