FCEF | First Trust Income Opportunities ETF

FCEF ISSUER

The First First Trust Advisors L.P. (FCEF issuer) aims to achieve its investment objectives by focusing on a diversified portfolio primarily comprised of closed-end investment companies (closed-end funds) and exchange-traded funds (ETFs) listed and traded in the United States. Managed registered investment companies, both closed-end funds, and ETFs invest across various securities and may trade at premiums or discounts to their net asset value. As a shareholder in pooled investment vehicles, the Fund bears its share of underlying funds' expenses, including advisory and administrative fees. FCEF's investment advisor employs a systematic approach, employing a proprietary model that evaluates closed-end funds and ETFs based on diverse market metrics and economic factors. These factors include fund size, duration, leverage ratio, earnings rate, undistributed net investment income, distribution rate, and others, with their importance varying based on the economic outlook. The advisor's model produces a range of potential investments, from which a final portfolio is meticulously selected after issuer-specific research and analysis. The Fund's portfolio may encompass a wide array of securities, including equities, government and corporate debt, commodities, preferred securities, high yield bonds, MLPs, REITs, derivatives, and various other instruments, reflecting its commitment to diversification and comprehensive market exposure.

FCEF DIVIDEND

The FCEF Dividend strategy focuses on generating income for investors through a portfolio of closed-end investment companies (closed-end funds) and exchange-traded funds (ETFs). Leveraging a systematic investment approach, the fund targets investments that offer attractive dividend yields and income potential. Managed by First First Trust Advisors L.P., the strategy involves thorough analysis and selection of securities based on various market metrics and economic factors, including but not limited to, dividend yield, payout ratio, dividend growth history, and overall financial stability of the underlying issuers. By investing in a diversified mix of dividend-paying securities across different asset classes, sectors, and geographies, FCEF Dividend seeks to provide investors with a steady stream of income while maintaining a focus on capital preservation and long-term growth.

FCEF TRACKING

The FCEF Tracking strategy is designed to replicate the performance of a specific benchmark index by investing in a portfolio of closed-end investment companies (closed-end funds) and exchange-traded funds (ETFs) listed and traded in the United States. Managed by First First Trust Advisors L.P., the fund aims to closely track the returns of its designated benchmark index by maintaining a similar composition and weighting of securities. Utilizing a systematic approach to investing, the fund's management team employs a proprietary model that identifies, sorts, and scores closed-end funds and ETFs based on various market metrics and economic factors relevant to the benchmark index. The strategy may involve periodic rebalancing and adjustments to ensure alignment with the benchmark's performance, thereby providing investors with an efficient and cost-effective way to gain exposure to a specific market or asset class. By closely tracking the benchmark index, FCEF Tracking seeks to offer investors the opportunity to capture market returns while minimizing tracking error and deviations from the benchmark's performance.

FCEF CORRELATION

The FCEF Correlation strategy aims to manage portfolio risk and enhance diversification by investing in a selection of closed-end investment companies (closed-end funds) and exchange-traded funds (ETFs) that exhibit low correlation with each other. Managed by First First Trust Advisors L.P., the fund utilizes sophisticated quantitative models to identify securities with historically low correlation to one another, thereby reducing the overall volatility of the portfolio. By investing in assets whose price movements tend to be less correlated or even negatively correlated, FCEF Correlation seeks to provide investors with a more stable and resilient portfolio, especially during periods of market turbulence or economic uncertainty. Through careful selection and weighting of securities across different asset classes, sectors, and geographic regions, the strategy aims to minimize the impact of individual security or market sector fluctuations on the overall performance of the portfolio. Ultimately, FCEF Correlation aims to offer investors a smoother and more consistent investment experience while still pursuing long-term growth objectives.

FCEF SECTOR

The FCEF Sector strategy focuses on capitalizing on opportunities within specific sectors of the market by investing in a diversified portfolio of closed-end investment companies (closed-end funds) and exchange-traded funds (ETFs) that specialize in particular industries or sectors. Managed by First First Trust Advisors L.P., the fund aims to outperform broader market indices by strategically allocating its assets to sectors that are expected to exhibit strong growth potential or favorable market conditions. Utilizing a combination of fundamental analysis, sector rotation strategies, and market trends, the fund's management team identifies sectors poised for growth and selects securities within those sectors that offer attractive risk-return profiles. By maintaining exposure to a diversified range of sectors, FCEF Sector seeks to mitigate sector-specific risks while maximizing potential returns. This strategy allows investors to gain targeted exposure to sectors with promising outlooks while diversifying their investment portfolios across different segments of the economy.

FCEF EXPOSURE

The FCEF Exposure strategy is designed to provide investors with targeted exposure to specific asset classes, regions, or investment themes through a portfolio of closed-end investment companies (closed-end funds) and exchange-traded funds (ETFs). Managed by First First Trust Advisors L.P., the fund aims to capitalize on opportunities in various market segments by strategically allocating its assets to funds that offer exposure to desired investment themes or areas of interest. Whether seeking exposure to emerging markets, specific sectors, or alternative asset classes such as real estate or commodities, FCEF Exposure utilizes a disciplined approach to asset allocation and portfolio construction. Through thorough research, analysis, and monitoring of market trends, the fund's management team identifies attractive investment opportunities and adjusts the portfolio accordingly to maximize potential returns while managing risk. By providing investors with targeted exposure to specific areas of the market, FCEF Exposure aims to enhance portfolio diversification and potentially generate superior risk-adjusted returns over the long term.