Fund Description: First Trust Value Line Dividend Index Fund is an exchange-traded index fund or Index ETF which is a separate investment portfolio of First Trust Exchange-Traded Fund, an open-end investment management company. INVESTMENT OBJECTIVE: The First Trust Value Line Dividend Index Fund seeks investment results that correspond generally to the price and yield, before fees and expenses, of the Value Line Dividend Index. INDEX DESCRIPTION: The Value Line Dividend Index is developed, maintained and sponsored by Value Line Publishing, Inc. The Index is designed to objectively identify and select those stocks from the universe of stocks of which Value Line, Inc. gives a Safety Ranking of #1 or #2 in the Value Line Safety Ranking System and have the potential to pay above average dividends and capital appreciation. The Index is a modified equal-dollar weighted index comprised of U.S. exchange-listed securities of companies that pay above-average dividends and have potential for capital appreciation. All registered investment companies, limited partnerships and foreign securities not listed in the U.S. are removed from this universe. From those stocks, Value Line selects those companies with a higher than average dividend yield, as compared to the indicated dividend yield of the Standard & Poor's 500 Composite Stock Price Index. Value Line then eliminates those companies with an equity market capitalization of less than $1 billion. When the Index is initially configured or reconfigured the Index seeks to be equally weighted in each of the securities in the Index. After the initial selection of securities, the Index is rebalanced by the application of the above model on a monthly 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. 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 the advisor believes 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.