DALI | First Trust Dorsey Wright DALI 1 ETF

DALI ISSUER

The DALI issuer, managed by First Trust Advisors L.P., implements an indexing investment strategy aiming to replicate the performance of the Index, which is developed and owned by Nasdaq, Inc. This strategy involves investing at least 90% of its net assets in securities constituting the Index, comprised exclusively of U.S.-listed exchange-traded funds (ETFs). First Trust Advisors L.P. may advise certain ETFs within the Fund's portfolio. The Index evaluates U.S. equity securities, international equity securities, and commodities, determining the asset class most likely to experience superior investment performance through a relative strength comparison method. Under this methodology, the Index compares the relative strength of ETFs or indices within each asset class to identify the strongest performer, which then dictates the allocation of the Fund's assets. For U.S. equity securities, the Fund equally weights constituents of the Dorsey Wright Focus Five Index and two AlphaDEX® Funds. Similarly, for international equity securities, it equally weights constituents of the Dorsey Wright International Focus Five Index and two other AlphaDEX® Funds. Additionally, the Fund includes the First Trust Global Tactical Commodity Strategy Fund for commodities exposure. Rebalancing and reconstitution occur quarterly, with adjustments made promptly following Index changes, potentially leading to increased portfolio turnover. This strategy exposes the Fund to sector and jurisdictional risks inherent in its concentrated investments.

DALI DIVIDEND

DALI Dividend, managed by First Trust Advisors L.P., operates with the objective of providing investors with a steady income stream through dividend-paying securities. The fund follows an indexing investment strategy, aiming to replicate the performance of the Index, developed and owned by Nasdaq, Inc. Under normal circumstances, at least 90% of the fund's net assets are invested in securities that comprise the Index, which consists exclusively of U.S.-listed exchange-traded funds (ETFs). The Index evaluates various asset classes, including U.S. equity securities, international equity securities, and commodities, to determine the most promising investment options based on relative strength. DALI Dividend employs a diversified approach within each asset class, utilizing a combination of ETFs and indices to capture dividend yield potential. Rebalancing and reconstitution occur quarterly to align the fund's portfolio with the Index's composition, potentially leading to a higher rate of portfolio turnover. Investors seeking a dividend-focused investment strategy may find DALI Dividend suitable for their income objectives, benefiting from the expertise of First Trust Advisors L.P. in managing dividend-paying securities within a structured indexing framework.

DALI TRACKING

DALI Tracking, overseen by First Trust Advisors L.P., is designed to closely track the performance of the Index, which is owned and developed by Nasdaq, Inc. This fund employs an indexing investment approach, aiming to replicate the performance of the Index by investing at least 90% of its net assets in securities that constitute the Index. The Index is composed solely of U.S.-listed exchange-traded funds (ETFs), evaluated across U.S. equity securities, international equity securities, and commodities to determine the asset class with the highest relative strength. DALI Tracking ensures accurate tracking by utilizing a diversified portfolio within each asset class, incorporating a combination of ETFs and indices. Regular rebalancing and reconstitution activities occur quarterly to maintain alignment with the Index's composition, potentially leading to increased portfolio turnover. Investors seeking a fund that closely mirrors the performance of the Index while benefiting from the expertise of First Trust Advisors L.P. in tracking strategies may find DALI Tracking to be a suitable investment option.

DALI CORRELATION

DALI Correlation, managed by First Trust Advisors L.P., is structured to reflect the correlation of its performance with that of the Index, developed and owned by Nasdaq, Inc. Employing an indexing investment strategy, the fund endeavors to replicate the performance of the Index by investing at least 90% of its net assets in securities that mirror its composition. The Index comprises solely U.S.-listed exchange-traded funds (ETFs) across various asset classes such as U.S. equity securities, international equity securities, and commodities, evaluating relative strength to determine the optimal investment options. DALI Correlation employs a diversified approach within each asset class, utilizing a mix of ETFs and indices to closely track the Index's performance. Regular rebalancing and reconstitution activities occur quarterly, ensuring the fund's correlation remains aligned with the Index. Investors seeking a fund that demonstrates strong correlation with the Index while benefiting from the expertise of First Trust Advisors L.P. in correlation strategies may find DALI Correlation to be a fitting investment choice.

DALI SECTOR

DALI Sector, managed by First Trust Advisors L.P., focuses on capturing the performance of specific sectors within the market, following an indexing investment strategy designed to mirror the movements of the Index, developed and owned by Nasdaq, Inc. With a commitment to replicating the Index's performance, the fund invests at least 90% of its net assets in securities that compose the Index, which exclusively consists of U.S.-listed exchange-traded funds (ETFs). These ETFs represent various sectors within the market, allowing DALI Sector to offer targeted exposure to specific industries. Employing a diversified approach within each sector, the fund incorporates a mix of ETFs and indices to accurately capture sector performance. Regular rebalancing and reconstitution activities occur quarterly, ensuring the fund's alignment with the Index's sector composition. Investors seeking targeted exposure to specific sectors while benefitting from the expertise of First Trust Advisors L.P. in sector-based strategies may find DALI Sector to be a valuable addition to their investment portfolio.stment choice.

DALI EXPOSURE

DALI Exposure, managed by First Trust Advisors L.P., is structured to provide investors with comprehensive exposure to various asset classes within the market, following an indexing investment strategy aimed at replicating the performance of the Index, developed and owned by Nasdaq, Inc. The fund invests at least 90% of its net assets in securities constituting the Index, which exclusively comprises U.S.-listed exchange-traded funds (ETFs). These ETFs represent diverse asset classes, including U.S. equity securities, international equity securities, and commodities, allowing DALI Exposure to offer broad market exposure. Employing a diversified approach within each asset class, the fund incorporates a mix of ETFs and indices to accurately capture the performance of different segments of the market. Regular rebalancing and reconstitution activities occur quarterly to ensure alignment with the Index's composition. Investors seeking a comprehensive investment solution that provides exposure to various asset classes while benefiting from the expertise of First Trust Advisors L.P. in indexing strategies may find DALI Exposure to be a suitable choice for their investment objectives.