FTHI | First Trust BuyWrite Income ETF

FTHI ISSUER

First Trust Advisors L.P. (FTHI issuer) operates a strategy geared towards generating income through a blend of equity investments and option writing, predominantly focused on U.S. exchange-listed securities. The fund employs an option strategy centered on writing U.S. exchange-traded call options on the S&P 500 Index, aimed at securing additional cash flow in the form of premiums, which are distributed to shareholders monthly. This approach involves forfeiting potential upside above the strike price of the written call options in exchange for premiums received. The fund's portfolio comprises primarily U.S. exchange-traded securities, with an emphasis on higher dividend-paying stocks selected through a mathematical optimization process. It may also include non-U.S. securities listed on U.S. exchanges or in the form of depositary receipts. Additionally, the fund may invest in master limited partnerships (MLPs), real estate investment trusts (REITs), and companies of various market capitalizations. The option portion of the portfolio primarily consists of a laddered portfolio of call options on the S&P 500 Index with expirations of less than one year, written at-the-money to slightly out-of-the-money, comprising a notable portion of the overall Fund. Active trading is a possibility depending on market conditions, potentially resulting in a turnover rate exceeding 100% annually. While the Fund had significant investments in information technology companies as of December 31, 2023, its allocations may vary over time, subjecting it to the associated risks of specific jurisdictions or investment sectors in which it concentrates its assets.

FTHI DIVIDEND

FTHI Dividend, managed by First Trust Advisors L.P., is structured to provide investors with a steady stream of income through a blend of equity investments and options strategies. The fund primarily focuses on investing in U.S. exchange-listed equity securities, with an emphasis on those offering higher dividend yields. Additionally, it employs an option strategy consisting of writing U.S. exchange-traded call options on the S&P 500 Index, aiming to generate additional cash flow in the form of premiums. This approach involves sacrificing potential upside beyond the strike price of the written call options in exchange for the premiums received. The fund's portfolio is periodically rebalanced, with a potential for active trading depending on market conditions. Investments may include master limited partnerships (MLPs), real estate investment trusts (REITs), and companies across various market capitalizations. While the fund had significant holdings in information technology companies as of December 31, 2023, its allocations may evolve over time, subjecting it to risks associated with specific sectors or jurisdictions in which it concentrates its assets.

FTHI TRACKING

FTHI Tracking, overseen by First Trust Advisors L.P., is designed to closely follow the performance of the U.S. equity market while aiming to provide investors with enhanced returns through a combination of equity investments and options strategies. The fund primarily invests in U.S. exchange-listed equity securities, with a focus on utilizing an option strategy involving writing U.S. exchange-traded call options on the S&P 500 Index. By doing so, the fund seeks to generate additional income in the form of premiums, albeit at the expense of potentially forfeiting upside beyond the strike price of the written call options. The portfolio is periodically rebalanced, and active trading may occur based on market conditions, potentially resulting in a turnover rate exceeding 100% annually. While the fund had notable exposure to information technology companies as of December 31, 2023, its holdings may vary over time, exposing it to risks associated with specific sectors or regions in which it concentrates its assets.

FTHI CORRELATION

FTHI Correlation, managed by First Trust Advisors L.P., seeks to offer investors a strategy that aligns closely with the performance of the U.S. equity market while providing potential for enhanced returns through a combination of equity investments and options strategies. The fund primarily focuses on investing in U.S. exchange-listed equity securities, with a particular emphasis on employing an option strategy involving writing U.S. exchange-traded call options on the S&P 500 Index. By implementing this approach, the fund aims to generate additional income in the form of premiums, although it may sacrifice potential upside beyond the strike price of the written call options. The portfolio is periodically rebalanced, and active trading may occur depending on market conditions, which could result in a turnover rate exceeding 100% annually. While the fund's holdings may include significant investments in information technology companies, as of December 31, 2023, its allocations may evolve over time, exposing it to risks associated with specific sectors or regions in which it concentrates its assets.

FTHI SECTOR

FTHI Sector, managed by First Trust Advisors L.P., is designed to provide investors with exposure to specific sectors of the U.S. equity market while potentially enhancing returns through a blend of equity investments and options strategies. The fund primarily focuses on investing in U.S. exchange-listed equity securities within targeted sectors, with an emphasis on utilizing an option strategy involving writing U.S. exchange-traded call options on the S&P 500 Index. This approach aims to generate additional income in the form of premiums, albeit with the potential trade-off of sacrificing upside potential beyond the strike price of the written call options. The portfolio is periodically rebalanced, and active trading may occur based on market conditions, potentially resulting in a turnover rate exceeding 100% annually. While the fund may have significant exposure to specific sectors such as information technology, as of December 31, 2023, its allocations may vary over time, exposing it to risks associated with sector-specific dynamics and market fluctuations.

FTHI EXPOSURE

FTHI Exposure, managed by First Trust Advisors L.P., aims to provide investors with a diversified exposure to the U.S. equity market while potentially enhancing returns through a combination of equity investments and options strategies. The fund primarily invests in a broad range of U.S. exchange-listed equity securities across various sectors, seeking to capture opportunities for growth and income generation. Additionally, it employs an option strategy focused on writing U.S. exchange-traded call options on the S&P 500 Index, with the goal of generating additional income in the form of premiums. While this strategy may involve sacrificing potential upside beyond the strike price of the written call options, it offers the potential for enhanced cash flow. The portfolio is periodically rebalanced, and active trading may occur based on market conditions, potentially resulting in a turnover rate exceeding 100% annually. As of December 31, 2023, the fund may have significant exposure to sectors such as information technology, although its allocations may evolve over time, exposing it to risks associated with sector-specific dynamics and market fluctuations.