Fund Description: First Trust Capital Strength ETF, formerly the First Trust Strategic Value Index Fund, formerly the First Trust DB Strategic Value 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 Capital Strength ETF seeks investment results that correspond generally to the price and yield of an equity index called The Capital Strength Index, formerly Credit Suisse U.S. Value Index. INDEX DESCRIPTION: The Capital Strength Index is developed, maintained and sponsored by The NASDAQ OMX Group, Inc. (the Index Provider). In constructing the Index, the Index Provider begins with the largest 500 U.S. companies included the NASDAQ US Benchmark Index and excludes the following: companies with less than $1 billion in cash and short term investments; companies with long-term debt divided by market capitalization greater than 30%; and companies with return on equity less than 15%. The Index Provider then ranks all remaining stocks in the universe by one-year and three-month daily volatility (one-year and three-month daily volatility factors are equally weighted), and selects the top 50 companies, subject to a maximum weight of 30% from any one of the ten Industry Classification Benchmark industries. The stocks in the Index are equally weighted initially and on each reconstituting and rebalancing effective date. The Index is reconstituted and rebalanced on a quarterly basis. FUND STRATEGY: The Fund will normally invest at least 90% of its total assets in common stocks that comprise the Index. The Fund, using an indexing investment approach, attempts to replicate, before expenses, the performance of 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. FUND MANAGEMENT: First Trust Advisors L.P. is the investment adviser for the Fund.