Fund Description: First Trust Industrials/Producer Durables AlphaDEX Fund is an exchange-traded index fund or Index ETF that is a non-diversified, exchange-traded series of the First Trust Exchange-Traded AlphaDEX Fund, an open-end management investment company. The First Trust Industrials/Producer Durables AlphaDEX Fund seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of an equity index called the StrataQuant Industrials Index (Symbol: STRQIN). <p> INDEX DESCRIPTION: The StrataQuant Industrials Index is a modified equal-dollar weighted index designed by the AMEX to objectively identify and select stocks from the Russell 1000 Index that may generate positive alpha relative to traditional passive style indices through the use of the AlphaDEX screening methodology. Alpha is an indication of how much an investment outperforms or underperforms on a risk-adjusted basis relative to its benchmark. The Russell 1000 Index consists of the 1,000 largest stocks within the Russell 3000 Index. The Russell 3000 Index is constructed to represent approximately 98% of the U.S. market. The initial divisor was created to set a benchmark value of 1000.00 on July 3, 2003. The StrataQuant Industrials Index was created and trademarked by the AMEX on April 11, 2007. As of April 11, 2007, the Russell 1000 Index consisted of 974 stocks and the Industrials Index consisted of 49 stocks. <p> FUND STRATEGY: The First Trust Industrials/Producer Durables AlphaDEX Fund will normally invest at least 90% of its total assets in common stocks that comprise the StrataQuant Industrials Index. The Fund, using an "indexing" investment approach, attempts to replicate, before expenses, the performance of the Index. First Trust seeks a correlation of 0.95 or better (before fees and expenses) between the Fund's performance and the performance of the Index; a figure of 1.00 would represent perfect correlation. 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 First Trust may choose to overweight certain stocks in the Index, purchase securities not in the Index which First Trust 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. <p> FUND MANAGEMENT: First Trust Advisors L.P. is the investment adviser for the Fund. First Trust Advisors L.P. is an affiliate of First Trust Portfolios L.P., the fund’s distributor.