Fund Description: First Trust Global Tactical Commodity Strategy Fund is an actively managed exchange-traded fund or Actively Managed ETF which is a separate investment portfolio of the First Trust Exchange-Traded Fund VII, an open-end investment management company. INVESTMENT OBJECTIVE: The First Trust Global Tactical Commodity Strategy Fund seeks to provide total return. 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. Accordingly, the ETF’s investment advisor, First Trust Advisors L.P., has discretion on a daily basis to actively manage the Fund’s portfolio in accordance with the Fund’s investment objective. FUND STRATEGY: The Fund seeks to achieve attractive risk adjusted return by investing in commodity futures contracts and exchange-traded commodity linked instruments (collectively, Commodities Instruments) through a wholly-owned subsidiary of the Fund organized under the laws of the Cayman Islands (the Subsidiary). The Fund will not invest directly in Commodities Instruments but expects to gain exposure to these investments exclusively by investing up to 25% of its total assets in the Subsidiary. The Subsidiary seeks to make investments generally in Commodities Instruments while managing volatility. Investment weightings of the Commodities Instruments held by the Subsidiary are rebalanced in an attempt to stabilize risk levels. The dynamic weighting process is designed to result in a disciplined, systematic investment process, which is keyed off of the advisor's volatility forecasting process. The Subsidiary's holdings in Commodities Instruments will consist, in part, of futures contracts, which are contractual agreements to buy or sell a particular commodity or financial instrument at a pre-determined price in the future. The Subsidiary may also invest in commodity-linked instruments, which include: (1) ETFs that provide exposure to commodities; and (2) pooled investment vehicles that invest primarily in commodities and commodity-related instruments. The Subsidiary may have both long and short positions in Commodities Instruments. However, for a given Commodity Instrument the First Trust Subsidiary will provide a net long exposure. The Subsidiary will initially consider the following futures contracts for investment: live cattle, cocoa, cotton, feeder cattle, coffee, soybeans, soybean meal, soybean oil, corn, wheat, sugar, lean hogs, crude oil, Brent crude oil, heating oil, gas oil, natural gas, gasoline, gold, silver, platinum, copper, aluminum, lead, nickel, tin and zinc. The list may change over time. The remainder of the Fund's assets will primarily be invested in: (1) short-term investment grade fixed income securities that include U.S. government and agency securities, sovereign debt obligations of non-U.S. countries, and repurchase agreements; (2) money market instruments; (3) ETFs and other investment companies and (4) cash and other cash equivalents. The Fund uses such instruments as investments and to collateralize the Subsidiary's Commodities Instruments exposure on a day-to-day basis. The Fund may also invest directly in ETFs and other investment companies, including closed-end funds, that provide exposure to Commodities Instruments, equity securities and fixed income. FUND MANAGEMENT: First Trust Advisors L.P. serves as investment advisor to the Fund and to the Subsidiary.