Fund Description: First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund ETF is an exchange-traded index fund or Index ETF which is a separate investment portfolio of the First Trust Exchange-Traded Fund II, an investment management company. INVESTMENT OBJECTIVE: First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund ETF seeks investment results that correspond generally to the price and yield, before fees and expenses, of an equity index called the NASDAQ OMX Clean Edge Smart Grid Infrastructure Index. INDEX DESCRIPTION: The NASDAQ OMX Clean Edge Smart Grid Infrastructure Index is designed to act as a transparent and liquid benchmark for the grid and electric energy infrastructure sector. The Index includes companies that are primarily engaged and involved in electric grid, electric meters and devices, networks, energy storage and management, and enabling software used by the smart grid infrastructure sector. Each March and September, Clean Edge, Inc. provides NASDAQ OMX Group, Inc. with a list of companies to be included in the Index. In order to be eligible for inclusion in the Index, the issuer of the security must be classified by Clean Edge as a smart grid, electric infrastructure and/or other grid-related activities company. Then the companies are screened using the eligibility criteria. The list of remaining companies is provided to NASDAQ OMX which then compiles the Index. NASDAQ OMX determines the respective market-capitalization weighting of each of the securities included in the Index (the Index Securities) and balances the Index accordingly each March, June, September and December. As of November 9, 2009, there were 29 securities that comprised the Index. Clean Edge, founded in 2000, is the world's first research and publishing firm devoted to the clean-tech sector. The company, via its publications, events, and online services, helps companies, investors, and governments understand and profit from clean technologies. NASDAQ OMX is the world's largest exchange company with trading, technology and public company service capability spanning six continents. FUND STRATEGY: The Fund will normally invest at least 90% of its net assets in common stocks that comprise the Index or in depositary receipts that may include American Depositary Receipts, Global Depositary Receipts, European Depositary Receipts, representing securities in the Index. The Fund, using an indexing investment approach, attempts to replicate the performance of the Index. FUND MANAGEMENT: First Trust Advisors L.P. serves as investment advisor to the Fund with overall responsibility for the general management and administration of the Fund, subject to the policies of the Board.