Fund Description: First Trust Cloud Computing ETF, formerly First Trust ISE Cloud Computing Index Fund is an exchange-traded index fund or Index ETF which is a separate investment portfolio of First Trust Exchange-Traded Fund II, an open-end investment management company. INVESTMENT OBJECTIVE: The First Trust Cloud Computing ETF seeks investment results that correspond generally to the price and yield, before the Fund's fees and expenses, of an equity index called the ISE Cloud Computing Index. INDEX DESCRIPTION: The ISE Cloud Computing Index is a modified equal dollar weighted index designed to track the performance of companies actively involved in the cloud computing industry. The cloud computing industry is a group of companies that offers internet and technology products, services and applications delivered via the Internet rather than traditional computing, which focuses on computer desktop applications. Index components are reviewed quarterly for eligibility. As of June 3, 2011, the Index was comprised of 40 securities from companies located in the United States and India. To be included in the Index, a security must be engaged in a business activity supporting or utilizing the cloud computing space, listed on an index-eligible global stock exchange and have a market capitalization of at least $100 million. All securities are then classified according to the following three business segments: The pure play category includes companies that are direct service providers for the cloud (i.e., network hardware/software, storage and cloud computing services) or companies with business models that rely on delivering goods and services that utilize cloud computing technology. The non pure play category includes companies that focus outside the cloud computing space but provide goods and services that support the cloud computing space. The technology conglomerate category includes companies that are large, broad-based companies with business models that indirectly utilize or support the use of cloud computing technology. The index is reconstituted semi-annually and rebalanced quarterly. FUND STRATEGY: The Fund, using an indexing investment approach, attempts to replicate, before fees and expenses, the performance of the Index. The Fund will normally invest at least 90% of its net assets (plus the amount of any borrowings for investment purposes) in common stocks and depositary receipts included in the Index. The Fund intends to invest entirely in securities included in the Index; however, there may also be instances in which the Fund may be underweighted or overweighted in certain securities in the Index, not invest in certain securities included in the Index, purchase securities not in the Index that are appropriate to substitute for certain securities in the Index or utilize various combinations of the above techniques in seeking to track the Index. FUND MANAGEMENT: First Trust Advisors L.P. is the investment advisor to the Fund and is responsible for the selection and ongoing monitoring of the securities and management for the Fund's portfolio.