Fund Description: First Trust Strategic Income ETF is an actively managed exchange-traded fund or Actively Managed ETF which is a separate investment portfolio of the First Trust Exchange-Traded Fund IV, an open-end investment management company. INVESTMENT OBJECTIVE: The First Trust Strategic Income ETF seeks risk-adjusted income. The Fund's secondary investment objective is capital appreciation. The Fund is an actively managed ETF and thus, does not seek to replicate the performance of a specific index, but rather uses an active investment strategy to meet its investment objective. FUND STRATEGY: The Fund is a multi-manager, multi-strategy Fund. The Advisor's Investment Committee determines the Fund's strategic allocation among various general investment categories and allocates the Fund's assets to portfolio management teams comprised of personnel of the Advisor and/or a Sub-Advisor (each, a Management Team), which employ their respective investment strategies. The Fund's investment categories will be: (i) high yield corporate bonds, commonly referred to as junk bonds, and first lien senior secured floating rate bank loans; (ii) mortgage-related investments; (iii) preferred securities; (iv) international sovereign bonds, including emerging markets debt; (v) equity securities of Energy Infrastructure Companies, certain of which are referred to as master limited partnerships (MLPs); and (vi) dividend paying U.S. exchange-traded equity securities and depositary receipts. The Fund may invest in derivative instruments, including covered calls, for various purposes. In general, the Fund may invest in exchange-listed futures contracts, exchange-listed options, exchange-listed options on futures contracts, exchange-listed stock index options and forward contracts. In addition, the Fund expects to enter into certain types of derivatives transactions with respect to certain of the particular investment categories. FUND MANAGEMENT: First Trust Advisors L.P. serves as investment advisor to the Fund. The sub-advisors (management teams) to the Fund are: First Trust Global Portfolios Ltd; Energy Income Partners, LLC; Stonebridge dvisors LLC; and Richard Bernstein Advisors LLC. The Advisor's Investment Committee determines the Fund's strategic allocation among various general investment categories and allocates the Fund's assets.