FNI | First Trust Chindia ETF

FNI ISSUER

The First Trust FNI issuer is a fund that predominantly invests in common stocks and depositary receipts constituting the Index, aiming to mirror its performance before fees and expenses. The Index, developed and owned by Nasdaq, Inc., is a modified market capitalization-weighted index focusing on U.S.-listed securities issued by small, mid, and large capitalization companies based in China or India. Eligible securities must meet specific criteria including listing on a qualifying U.S. securities exchange, being issued by a company domiciled in China (excluding Taiwan) or India, and meeting market capitalization and trading volume thresholds. The Index employs a composite scoring system to select 50 securities for inclusion, weighted based on their rank and market characteristics. Rebalanced semi-annually, the Fund adjusts its portfolio accordingly, often concentrating in consumer discretionary and information technology sectors, along with Chinese, Indian, and Asian issuers. To access certain Chinese companies not directly available to foreign investors, the Fund invests in non-Chinese shell companies utilizing variable interest entities. However, concentration in specific industries or regions exposes the Fund to associated risks.

FNI DIVIDEND

The First Trust FNI Dividend issuer is a fund focused on generating income through dividend-paying securities. It primarily invests in common stocks and depositary receipts that form part of the Dividend Index, aiming to replicate its performance before fees and expenses. Developed and owned by Nasdaq, Inc., the Dividend Index consists of U.S.-listed securities issued by small, mid, and large capitalization companies domiciled in China or India. Eligible securities must meet stringent criteria including listing on a qualifying U.S. securities exchange, being issued by a company based in China (excluding Taiwan) or India, and meeting specific market capitalization and trading volume thresholds. The Index employs a modified market capitalization weighting methodology, emphasizing dividend-yielding securities. Rebalanced semi-annually, the Fund adjusts its portfolio to align with any changes in the Index composition, maintaining its focus on dividend income generation. This approach provides investors with exposure to dividend-paying securities in the Chinese and Indian markets, offering potential for income alongside capital appreciation opportunities.

FNI TRACKING

The First Trust FNI Tracking issuer is a fund designed to replicate the performance of a specific index, typically investing at least 90% of its net assets in the securities that comprise the Tracking Index. Developed and owned by Nasdaq, Inc., the Tracking Index aims to provide investors with exposure to a particular market segment or investment theme. In the case of FNI, the fund tracks an index composed of U.S.-listed securities issued by small, mid, and large capitalization companies domiciled in China or India. Eligible securities must meet stringent criteria, including listing on a qualifying U.S. securities exchange, being issued by a company based in China (excluding Taiwan) or India, and meeting specific market capitalization and trading volume thresholds. The index utilizes a modified market capitalization-weighted methodology, with the fund's holdings reflecting the composition of the index. Rebalanced semi-annually, the fund makes corresponding adjustments to its portfolio to mirror changes in the index, thereby providing investors with an investment vehicle that closely tracks the performance of Chinese and Indian markets within the specified segment or theme.

FNI CORRELATION

The First Trust FNI Correlation issuer is a fund designed to track the correlation between U.S.-listed securities issued by small, mid, and large capitalization companies domiciled in China or India. The fund typically invests at least 90% of its net assets in common stocks and depositary receipts comprising the Correlation Index. Developed and owned by Nasdaq, Inc., the Correlation Index aims to reflect the correlation between Chinese and Indian markets. Eligible securities must meet specific criteria, including listing on a qualifying U.S. securities exchange, being issued by a company domiciled in China (excluding Taiwan) or India, and meeting market capitalization and trading volume thresholds. The index utilizes a modified market capitalization-weighted methodology, focusing on securities' correlation with the broader Chinese and Indian markets. Rebalanced semi-annually, the Fund adjusts its portfolio to maintain correlation with the Index, providing investors with exposure to the relationship between the Chinese and Indian markets while potentially mitigating risk through diversification.

FNI SECTOR

The First Trust FNI Sector issuer is a fund focused on investing in specific sectors within the Chinese and Indian markets. The fund typically allocates its assets to sectors that exhibit promising growth potential or are poised for outperformance within these markets. It invests primarily in common stocks and depositary receipts issued by small, mid, and large capitalization companies domiciled in China or India. Developed and owned by Nasdaq, Inc., the Sector Index aims to capture the performance of selected sectors within these markets. Eligible securities must meet specific criteria, including listing on a qualifying U.S. securities exchange and meeting market capitalization and trading volume thresholds. The index utilizes a modified market capitalization-weighted methodology, emphasizing sectors that are expected to drive economic growth and innovation. Rebalanced semi-annually, the fund adjusts its portfolio to align with changes in sector performance, providing investors with targeted exposure to key sectors within the Chinese and Indian markets. This approach allows investors to capitalize on growth opportunities within specific sectors while diversifying their exposure across various industries.

FNI EXPOSURE

The First Trust FNI Exposure issuer is a fund tailored to provide investors with exposure to the Chinese and Indian markets. The fund primarily invests in common stocks and depositary receipts issued by small, mid, and large capitalization companies domiciled in China or India. Developed and owned by Nasdaq, Inc., the Exposure Index aims to mirror the performance of selected securities within these markets. Eligible securities must meet specific criteria, including listing on a qualifying U.S. securities exchange and meeting market capitalization and trading volume thresholds. The index employs a modified market capitalization-weighted methodology, emphasizing securities that offer significant exposure to the Chinese and Indian economies. Rebalanced semi-annually, the fund adjusts its portfolio to maintain alignment with the Exposure Index, providing investors with direct access to the growth potential and economic dynamics of China and India. This investment strategy allows investors to diversify their portfolios by gaining exposure to emerging market opportunities in two of the world's fastest-growing economies.