Market Overview

First Trust Launches the First Trust Low Duration Strategic Focus ETF


An actively managed ETF designed to complement a core fixed-income

Trust Advisors L.P.
("First Trust") announced today that it has
launched a new actively managed exchange-traded fund ("ETF"), the First
Trust Low Duration Strategic Focus ETF (NASDAQ:LDSF) (the
"fund"). The fund seeks to generate current income, with a secondary
objective of preservation of capital. The fund seeks to achieve these
objectives by allocating primarily among First Trust ETFs, but may also
include other ETFs representing various asset classes, aimed at
providing diversification benefits and less interest rate sensitivity
when compared to traditional core fixed income benchmarks over time.

The fund is managed by First Trust Advisors L.P., with selection and
portfolio decisions made by an Investment Committee, using an investment
process that combines bottom-up fundamental credit analysis with
disciplined portfolio construction. The process begins with a robust,
top-down review of macroeconomic factors including monetary and fiscal
policies, growth forecasts, trade and tax policies, global market views
and current market valuations. The process combines these factors with
disciplined bottom-up asset level analysis including views on rates,
duration, credit, currency and current asset valuations. The relative
attractiveness of the various fixed income asset classes is also
evaluated in an attempt to best position the fund to take advantage of
market trends and investment opportunities. The Investment Committee
seeks to construct a portfolio with a target duration of three years or
less, while managing both interest rate risk and credit risk. Duration
is a mathematical calculation of the average life of a debt security (or
a portfolio of debt securities) that serves as a measure of its price
risk. The fund focuses on lower duration securities as they have
historically held up better in rising interest rate environments than
those with longer durations. "At this point in the cycle, we believe
risk management is critical for fixed income investors. This ETF
harnesses the best of First Trust's intellectual capital to provide
investment advisors with an efficient tool to help manage their clients'
fixed income needs," said Ryan Issakainen, CFA, Senior Vice President,
ETF Strategist at First Trust.

The First Trust Advisors Investment Committee manages the portfolio by
leveraging the knowledge of First Trust's research teams and portfolio
management teams who understand the unique factors that drive risk
adjusted returns within various asset classes. They believe a successful
investment process involves a disciplined and theory-driven framework to
guide the building blocks of the portfolio's allocation.

For more information about First Trust, please contact Ryan Issakainen
at (630) 765-8689 or

About First Trust

First Trust is a federally registered investment advisor and serves as
the fund's investment advisor. First Trust and its affiliate First Trust
Portfolios L.P. ("FTP"), a FINRA registered broker-dealer, are privately
held companies that provide a variety of investment services. First
Trust has collective assets under management or supervision of
approximately $124 billion as of November 30, 2018 through unit
investment trusts, exchange-traded funds, closed-end funds, mutual funds
and separate managed accounts. First Trust is the supervisor of the
First Trust unit investment trusts, while FTP is the sponsor. FTP is
also a distributor of mutual fund shares and exchange-traded fund
creation units. First Trust and FTP are based in Wheaton, Illinois. For
more information, visit

You should consider the fund's investment objectives, risks, and
charges and expenses carefully before investing. Contact First Trust
Portfolios L.P. at 1-800-621-1675 or visit
to obtain a prospectus or summary prospectus which contains this and
other information about the fund. The prospectus or summary prospectus
should be read carefully before investing.

ETF Characteristics

The fund lists and principally trades its shares on The Nasdaq Stock
Exchange, LLC.

Investors buying or selling fund shares on the secondary market may
incur customary brokerage commissions. Investors who sell fund shares
may receive less than the share's net asset value. Shares may be sold
throughout the day on the exchange through any brokerage account.
However, unlike mutual funds, shares may only be redeemed directly from
the fund by authorized participants, in very large creation/redemption
units. If the fund's authorized participants are unable to proceed with
creation/redemption orders and no other authorized participant is able
to step forward to create or redeem, fund shares may trade at a discount
to the fund's net asset value and possibly face delisting.

Risk Considerations

The fund's shares will change in value, and you could lose money by
investing in the fund. One of the principal risks of investing in the
fund is market risk. Market risk is the risk that a particular security
owned by the fund, fund shares or securities in general may fall in
value. There can be no assurance that the fund's investment objective
will be achieved.

An investment in a fund containing securities of non-U.S. issuers is
subject to additional risks, including currency fluctuations, political
risks, withholding, the lack of adequate financial information, and
exchange control restrictions impacting non-U.S. issuers. These risks
may be heightened for securities of companies located in, or with
significant operations in, emerging market countries.

The fund's NAV is determined on the basis of U.S. dollars, if the fund
invests in non-U.S. securities, you may lose money if the local currency
of a non-U.S. market depreciates against the U.S. dollar.

The fund may be composed of a very small number of ETFs, which involves
additional risk, including limited diversification.

Preferred securities combine some of the characteristics of both common
stocks and bonds. Preferred securities are typically subordinated to
bonds and other debt instruments in a company's capital structure, in
terms of priority to corporate income, and therefore will be subject to
greater credit risk than those debt instruments.

Certain securities held by the fund are subject to credit risk, call
risk, income risk, inflation risk, interest rate risk, prepayment risk
and extension risk. Credit risk is the risk that an issuer of a security
will be unable or unwilling to make dividend, interest and/or principal
payments when due and that the value of a security may decline as a
result. Credit risk is heightened for floating-rate loans and high-yield
securities, because companies that issue loans tend to be highly
leveraged and thus are more susceptible to the risks of interest
deferral, default and/or bankruptcy. Call risk is the risk that if an
issuer calls higher-yielding debt instruments held by the fund,
performance could be adversely impacted. Income risk is the risk that
income from the fund's fixed-income investments could decline during
periods of falling interest rates. Inflation risk is the risk that the
value of assets or income from investments will be less in the future as
inflation decreases the value of money. Interest rate risk is the risk
that the value of the fixed-income securities in the fund will decline
because of rising market interest rates. Prepayment risk is the risk
that during periods of falling interest rates, an issuer may exercise
its right to pay principal on an obligation earlier than expected. This
may result in a decline in a fund's income. Extension risk is the risk
that the average life of a security may extend if the rate of
prepayments decreases, which increases interest rate exposure.

Convertible securities have characteristics of both equity and debt
securities and, as a result, are exposed to certain additional risks.

Mortgage-related securities, including mortgage-backed securities, are
more susceptible to adverse economic, political or regulatory events
that affect the value of real estate. Mortgage- related securities are
subject to the risk that the rate of mortgage prepayments decreases,
which extends the average life of a security and increases the interest
rate exposure.

Income from municipal bonds held by the fund could be declared taxable
because of, among other things, unfavorable changes in tax laws, adverse
interpretations by the Internal Revenue Service or state tax
authorities, or noncompliant conduct of a bond issuer.

Investments in sovereign bonds involve special risks because the
governmental authority that controls the repayment of the debt may be
unwilling or unable to repay the principal and/or interest when due.

Senior floating rate loans are usually rated below investment grade but
may also be unrated. As a result, the risks associated with these loans
are similar to the risks of high yield fixed income instruments. High
yield securities, or "junk" bonds, are subject to greater market
fluctuations and risk of loss than securities with higher ratings, and
therefore, may be highly speculative. The market for high yield
securities is smaller and less liquid than that for investment grade

Illiquid securities involve the risk that the securities will not be
able to be sold at the time desired by a fund or at prices approximately
the value at which a fund is carrying the securities on its books.

Covenant-lite loans contain fewer maintenance covenants, or no
maintenance covenants at all, then traditional loans and may not include
terms that allow the lender to monitor the financial performance of the
borrower and declare a default if certain criteria are breached.

Securities issued or guaranteed by federal agencies and U.S. government
sponsored instrumentalities may or may not be backed by the full faith
and credit of the U.S. government.

The fund currently has fewer assets than larger, more established funds,
and like other relatively new funds, large inflows and outflows may
impact the fund's market exposure for limited periods of time.

The fund may invest in the shares of other investment companies, which
involves additional expenses that would not be present in a direct
investment in the underlying funds. In addition, the fund's investment
performance and risks may be related to the investment performance and
risks of the underlying funds.

The fund is classified as "non-diversified" and may invest a relatively
high percentage of their assets in a limited number of issuers. As a
result, the fund may be more susceptible to a single adverse economic or
regulatory occurrence affecting one or more of these issuers, experience
increased volatility and be highly concentrated in certain issuers.

Actively managed funds are subject to management risk because the
advisor or sub-advisor will apply investment techniques and risk
analyses that may not have the desired result.

First Trust Advisors L.P. is the adviser to the fund. First Trust
Advisors L.P. is an affiliate of First Trust Portfolios L.P., the fund's

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