UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number
811-21944
First Trust Exchange-Traded Fund II
(Exact name of registrant as specified in charter)
120 East Liberty Drive, Suite 400
Wheaton, IL 60187
(Address of principal executive offices) (Zip code)
W. Scott Jardine, Esq.
First Trust Portfolios L.P.
120 East Liberty Drive, Suite 400
Wheaton, IL 60187
(Name and address of agent for service)
Registrant's telephone number, including area code:
(630) 765-8000
Date of fiscal year end:
September 30
Date of reporting period:
September 30, 2024
Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.
Item 1. Reports to Shareholders.
(a) Following is a copy of the annual reports transmitted to shareholders pursuant to Rule 30e-1 under the Act.
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First Trust STOXX®
European Select Dividend Index Fund
FDD | NYSE ARCA, INC.
ANNUAL SHAREHOLDER REPORT | September 30, 2024
This annual shareholder report contains important information about the First Trust STOXX® European Select Dividend Index Fund (the “Fund”) for the year of October 1, 2023 to September 30, 2024 (the “Period”). You can find additional information about the Fund at www.ftportfolios.com/fund-documents/etf/FDD. You can also request this information by contacting us at 1-800-621-1675 or info@ftportfolios.com.
WHAT WERE THE FUND COSTS FOR THE LAST YEAR?
(Based on a hypothetical $10,000 investment)
Fund Costs of a $10,000 investment Costs paid as a percentage
of a $10,000 investment
First Trust STOXX® European Select Dividend Index Fund $65 0.59%
HOW DID THE FUND PERFORM LAST YEAR? WHAT AFFECTED THE FUND’S PERFORMANCE?
The Fund returned 20.98% during the 12 months ended September 30, 2024. The Fund underperformed its benchmark, the MSCI Europe Index, which returned 25.23% for the same Period.
The United Kingdom (“UK”) had the greatest allocation in the Fund with a weight of 23.7%. The allocation to the UK contributed the most to the Fund’s performance of any country with an 8.3% contribution to the Fund’s return. With a weight of 5.4%, Norway was the country with the most negative contribution to the Fund’s return with -1.4% in performance contribution. The Fund’s currency exposure had a 7.1% impact on performance.
FUND PERFORMANCE (September 30, 2014 to September 30, 2024)
The performance line graph below shows the performance of a hypothetical $10,000 initial investment in the Fund over a ten-year period (or for the life of the Fund, if shorter). The subsequent account value as of the end of the Period is listed next to the name of the Fund or index, as applicable. The performance table below shows the average annual total returns of the Fund for the past one-, five-, and ten-year periods, as applicable (or for the life of the Fund, if shorter), as of the end of the Period. Both the line graph and performance table compare the Fund’s performance to an appropriate broad-based index and may compare to additional indices reflecting the market segment(s) in which the Fund invests over the same periods.
Investment Performance of $10,000
Fund Performance - Growth of 10K
Average Annual Total Returns (as of September 30, 2024) 1 Year 5 Year 10 Year
First Trust STOXX® European Select Dividend Index Fund 20.98% 4.97% 4.11%
STOXX® Europe Select Dividend 30 Index 20.96% 5.26% 4.39%
STOXX® Europe 600 Index 25.67% 8.98% 5.74%
MSCI Europe Index 25.23% 8.90% 5.59%
Visit www.ftportfolios.com/etf/FDD for more recent performance information.
The Fund’s past performance is not a good predictor of the Fund’s future performance. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
KEY FUND STATISTICS (As of September 30, 2024)
Fund net assets $159,971,431
Total number of portfolio holdings 31
Total advisory fee paid $660,109
Portfolio turnover rate 43%
WHAT DID THE FUND INVEST IN? (As of September 30, 2024)
The tables below show the investment makeup of the Fund, representing the percentage of total investments of the Fund.
Top Ten Holdings
NatWest Group PLC 5.3%
ABN AMRO Bank N.V. 4.9%
HSBC Holdings PLC 4.8%
ING Groep N.V. 4.8%
IG Group Holdings PLC 4.6%
Taylor Wimpey PLC 4.4%
Legal & General Group PLC 4.1%
Rio Tinto PLC 3.9%
NN Group N.V. 3.8%
Tele2 AB, Class B 3.8%
Sector Allocation
Graphical Representation - Allocation 2 Chart
Any amount shown as 0.0% represents less than 0.1%.
WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
Visit www.ftportfolios.com/fund-documents/etf/FDD to view additional information about the Fund such as the prospectus, financial information, Fund holdings and proxy voting information. You may also request this information by contacting us at 1-800-621-1675 or info@ftportfolios.com.
OTHER INFORMATION
The STOXX® Europe Select Dividend 30 Index (“STOXX Index”) is the intellectual property (including registered trademarks) of STOXX Ltd., Zug, Switzerland (“STOXX”), Deutsche Börse Group or their licensors, which is used under license. The Fund is neither sponsored nor promoted, distributed or in any other manner supported by STOXX Deutsche Börse Group or their licensors, research partners or data providers and STOXX, Deutsche Börse Group and their licensors, research partners or data providers do not give any warranty, and exclude any liability (whether in negligence or otherwise) with respect thereto generally or specifically in relation to any errors, omissions or interruptions in the STOXX Index or its data.
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First Trust Alerian
Disruptive Technology Real Estate ETF
DTRE | NYSE ARCA, INC.
ANNUAL SHAREHOLDER REPORT | September 30, 2024
This annual shareholder report contains important information about the First Trust Alerian Disruptive Technology Real Estate ETF (the “Fund”) for the year of October 1, 2023 to September 30, 2024 (the “Period”). You can find additional information about the Fund at www.ftportfolios.com/fund-documents/etf/DTRE. You can also request this information by contacting us at 1-800-621-1675 or info@ftportfolios.com.
WHAT WERE THE FUND COSTS FOR THE LAST YEAR?
(Based on a hypothetical $10,000 investment)
Fund Costs of a $10,000 investment Costs paid as a percentage
of a $10,000 investment
First Trust Alerian Disruptive Technology Real Estate ETF $66 0.60%
HOW DID THE FUND PERFORM LAST YEAR? WHAT AFFECTED THE FUND’S PERFORMANCE?
The Fund returned 18.88% during the 12 months ended September 30, 2024. The Fund underperformed its benchmark, the MSCI World Real Estate Index, which returned 31.74% for the same Period.
The United States was the country with the greatest allocation in the Fund during the Period with an average weight of 75.9%. The allocation to the United States contributed the most to the Fund’s performance of any country with a 16.2% contribution. No country had a material negative return contribution to the Fund’s performance. The Fund’s currency exposure had a 1.4% impact on performance.
FUND PERFORMANCE (September 30, 2014 to September 30, 2024)
The performance line graph below shows the performance of a hypothetical $10,000 initial investment in the Fund over a ten-year period (or for the life of the Fund, if shorter). The subsequent account value as of the end of the Period is listed next to the name of the Fund or index, as applicable. The performance table below shows the average annual total returns of the Fund for the past one-, five-, and ten-year periods, as applicable (or for the life of the Fund, if shorter), as of the end of the Period. Both the line graph and performance table compare the Fund’s performance to an appropriate broad-based index and may compare to additional indices reflecting the market segment(s) in which the Fund invests over the same periods.
Investment Performance of $10,000
Fund Performance - Growth of 10K
Average Annual Total Returns (as of September 30, 2024) 1 Year 5 Year 10 Year
First Trust Alerian Disruptive Technology Real Estate ETF 18.88% 0.41% 3.65%
Alerian Disruptive Technology Real Estate Index(1) (2) 18.78% N/A N/A
FTSE EPRA/NAREIT Developed Index 30.20% 2.37% 5.04%
S&P Global REIT Index 30.43% 2.54% 4.92%
MSCI World REIT Index 33.56% 3.52% 6.16%
MSCI World Real Estate Index(2) 31.74% 2.74% N/A
MSCI World Index 32.43% 13.04% 10.07%
(1)
On September 30, 2022, the Fund’s underlying index changed from the FTSE EPRA/NAREIT Developed Index to the Alerian Disruptive Technology Real Estate Index. Therefore, the Fund’s performance and historical returns shown for periods prior to this date are not necessarily indicative of the performance the Fund, based on this current index, would have generated.
(2)
Performance data is not available for all the periods shown in the table for the index because performance data does not exist for some of the entire periods.
Visit www.ftportfolios.com/etf/DTRE for more recent performance information.
The Fund’s past performance is not a good predictor of the Fund’s future performance. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. The Fund’s total returns would have been lower if certain fees had not been waived and expenses reimbursed by the investment advisor.
KEY FUND STATISTICS (As of September 30, 2024)
Fund net assets $19,544,650
Total number of portfolio holdings 27
Total advisory fee paid $116,594
Portfolio turnover rate 28%
WHAT DID THE FUND INVEST IN? (As of September 30, 2024)
The tables below show the investment makeup of the Fund, representing the percentage of total investments of the Fund.
Top Ten Holdings
Crown Castle, Inc. 7.1%
SBA Communications Corp. 7.0%
American Tower Corp. 6.9%
Equinix, Inc. 6.8%
Prologis, Inc. 6.4%
Digital Realty Trust, Inc. 6.3%
Mapletree Logistics Trust 4.6%
First Industrial Realty Trust, Inc. 4.4%
STAG Industrial, Inc. 4.2%
Americold Realty Trust, Inc. 4.1%
Sector Allocation
Graphical Representation - Allocation 2 Chart
WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
Visit www.ftportfolios.com/fund-documents/etf/DTRE to view additional information about the Fund such as the prospectus, financial information, Fund holdings and proxy voting information. You may also request this information by contacting us at 1-800-621-1675 or info@ftportfolios.com.
OTHER INFORMATION
Alerian and Alerian Disruptive Technology Real Estate Index are service marks of VettaFi LLC and have been licensed for use by First Trust Advisors L.P. The Fund is not issued, sponsored, endorsed, sold or promoted by VettaFi LLC or its affiliates (collectively, “VettaFi”). VettaFi makes no representation or warranty, express or implied, to the purchasers or owners of the Fund or any member of the public regarding the advisability of investing in securities generally or in the Fund particularly or the ability of the Index to track general market performance.
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First Trust Dow Jones
Global Select Dividend Index Fund
FGD | NYSE ARCA, INC.
ANNUAL SHAREHOLDER REPORT | September 30, 2024
This annual shareholder report contains important information about the First Trust Dow Jones Global Select Dividend Index Fund (the “Fund”) for the year of October 1, 2023 to September 30, 2024 (the “Period”). You can find additional information about the Fund at www.ftportfolios.com/fund-documents/etf/FGD. You can also request this information by contacting us at 1-800-621-1675 or info@ftportfolios.com.
WHAT WERE THE FUND COSTS FOR THE LAST YEAR?
(Based on a hypothetical $10,000 investment)
Fund Costs of a $10,000 investment Costs paid as a percentage
of a $10,000 investment
First Trust Dow Jones Global Select Dividend Index Fund $63 0.56%
HOW DID THE FUND PERFORM LAST YEAR? WHAT AFFECTED THE FUND’S PERFORMANCE?
The Fund returned 24.83% during the 12 months ended September 30, 2024. The Fund underperformed its benchmark, the MSCI World Index, which returned 32.43% for the same Period.
The country with the greatest allocation in the Fund was Canada with a weight of 13.5%. However, the country with the greatest contribution to the Fund’s return was South Korea with a performance contribution of 5.5%. The country with the most negative contribution to the Fund’s return was Norway with -0.4%. The Fund’s currency exposure had a 4.1% impact on performance.
FUND PERFORMANCE (September 30, 2014 to September 30, 2024)
The performance line graph below shows the performance of a hypothetical $10,000 initial investment in the Fund over a ten-year period (or for the life of the Fund, if shorter). The subsequent account value as of the end of the Period is listed next to the name of the Fund or index, as applicable. The performance table below shows the average annual total returns of the Fund for the past one-, five-, and ten-year periods, as applicable (or for the life of the Fund, if shorter), as of the end of the Period. Both the line graph and performance table compare the Fund’s performance to an appropriate broad-based index and may compare to additional indices reflecting the market segment(s) in which the Fund invests over the same periods.
Investment Performance of $10,000
Fund Performance - Growth of 10K
Average Annual Total Returns (as of September 30, 2024) 1 Year 5 Year 10 Year
First Trust Dow Jones Global Select Dividend Index Fund 24.83% 7.55% 4.68%
Dow Jones Global Select Dividend Index 25.09% 7.86% 4.88%
Dow Jones World Developed Markets IndexSM 31.74% 12.74% 10.01%
MSCI World Index 32.43% 13.04% 10.07%
Visit www.ftportfolios.com/etf/FGD for more recent performance information.
The Fund’s past performance is not a good predictor of the Fund’s future performance. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
KEY FUND STATISTICS (As of September 30, 2024)
Fund net assets $566,743,125
Total number of portfolio holdings 100
Total advisory fee paid $2,286,619
Portfolio turnover rate 36%
WHAT DID THE FUND INVEST IN? (As of September 30, 2024)
The tables below show the investment makeup of the Fund, representing the percentage of total investments of the Fund.
Top Ten Holdings
Hapag-Lloyd AG 3.3%
Fortum Oyj 1.8%
CaixaBank S.A. 1.7%
D/S Norden A/S 1.7%
Phoenix Group Holdings PLC 1.6%
Altria Group, Inc. 1.6%
British American Tobacco PLC 1.6%
Telia Co., AB 1.5%
Bankinter S.A. 1.4%
Peyto Exploration & Development Corp. 1.4%
Sector Allocation
Graphical Representation - Allocation 2 Chart
Any amount shown as 0.0% represents less than 0.1%.
WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
Visit www.ftportfolios.com/fund-documents/etf/FGD to view additional information about the Fund such as the prospectus, financial information, Fund holdings and proxy voting information. You may also request this information by contacting us at 1-800-621-1675 or info@ftportfolios.com.
OTHER INFORMATION
Dow Jones Global Select Dividend Index (“Index”) is a product of S&P Dow Jones Indices, LLC or its affiliates (“SPDJI”) and has been licensed for use by First Trust. S&P® is a registered trademark of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by First Trust. The Fund is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P or their respective affiliates and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the Index.
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First Trust Global Wind Energy ETF
FAN | NYSE ARCA, INC.
ANNUAL SHAREHOLDER REPORT | September 30, 2024
This annual shareholder report contains important information about the First Trust Global Wind Energy ETF (the “Fund”) for the year of October 1, 2023 to September 30, 2024 (the “Period”). You can find additional information about the Fund at www.ftportfolios.com/fund-documents/etf/FAN. You can also request this information by contacting us at 1-800-621-1675 or info@ftportfolios.com.
WHAT WERE THE FUND COSTS FOR THE LAST YEAR?
(Based on a hypothetical $10,000 investment)
Fund Costs of a $10,000 investment Costs paid as a percentage
of a $10,000 investment
First Trust Global Wind Energy ETF $68 0.60%
HOW DID THE FUND PERFORM LAST YEAR? WHAT AFFECTED THE FUND’S PERFORMANCE?
The Fund returned 26.18% during the 12 months ended September 30, 2024. The Fund underperformed its benchmark, the MSCI World Index, which returned 32.43% for the same Period.
The Utilities sector received the greatest allocation of any sector in the Fund with an average weight of 58.0% during the Period. However, the greatest contribution to the Fund’s return of 15.5% came from the Industrials sector with a 37.1% weight in the Fund. No sectors had a materially negative contribution to the Fund’s return. The Fund’s currency exposure had a 3.8% impact on performance.
FUND PERFORMANCE (September 30, 2014 to September 30, 2024)
The performance line graph below shows the performance of a hypothetical $10,000 initial investment in the Fund over a ten-year period (or for the life of the Fund, if shorter). The subsequent account value as of the end of the Period is listed next to the name of the Fund or index, as applicable. The performance table below shows the average annual total returns of the Fund for the past one-, five-, and ten-year periods, as applicable (or for the life of the Fund, if shorter), as of the end of the Period. Both the line graph and performance table compare the Fund’s performance to an appropriate broad-based index and may compare to additional indices reflecting the market segment(s) in which the Fund invests over the same periods.
Investment Performance of $10,000
Fund Performance - Growth of 10K
Average Annual Total Returns (as of September 30, 2024) 1 Year 5 Year 10 Year
First Trust Global Wind Energy ETF 26.18% 8.40% 7.21%
ISE Clean Edge Global Wind EnergyTM Index 27.22% 9.29% 8.08%
Russell 3000® Index 35.19% 15.26% 12.83%
MSCI World Index 32.43% 13.04% 10.07%
Visit www.ftportfolios.com/etf/FAN for more recent performance information.
The Fund’s past performance is not a good predictor of the Fund’s future performance. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. The Fund’s total returns would have been lower if certain fees had not been waived and expenses reimbursed by the investment advisor.
KEY FUND STATISTICS (As of September 30, 2024)
Fund net assets $196,539,987
Total number of portfolio holdings 54
Total advisory fee paid $647,458
Portfolio turnover rate 20%
WHAT DID THE FUND INVEST IN? (As of September 30, 2024)
The tables below show the investment makeup of the Fund, representing the percentage of total investments of the Fund.
Top Ten Holdings
Orsted A/S 7.9%
EDP Renovaveis S.A. 7.3%
Vestas Wind Systems A/S 6.6%
Northland Power, Inc. 5.6%
Bank of America Corp. 4.4%
JPMorgan Chase & Co. 4.2%
China Longyuan Power Group Corp., Ltd., Class H 3.5%
Boralex, Inc., Class A 3.3%
Cadeler A/S 2.9%
Nordex SE 2.7%
Sector Allocation
Graphical Representation - Allocation 2 Chart
WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
Visit www.ftportfolios.com/fund-documents/etf/FAN to view additional information about the Fund such as the prospectus, financial information, Fund holdings and proxy voting information. You may also request this information by contacting us at 1-800-621-1675 or info@ftportfolios.com.
OTHER INFORMATION
Nasdaq®, Clean Edge®, and ISE Clean Edge Global Wind EnergyTM Index (the “Index”) are registered trademarks and service marks of Nasdaq, Inc. and Clean Edge, Inc., respectively (together with its affiliates hereinafter referred to as the “Corporations”) and are licensed for use by First Trust. The Fund has not been passed on by the Corporations as to its legality or suitability. The Fund is not issued, endorsed, sold or promoted by the Corporations. THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE FUND.
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First Trust Alerian
U.S. NextGen Infrastructure ETF
RBLD | NYSE ARCA, INC.
ANNUAL SHAREHOLDER REPORT | September 30, 2024
This annual shareholder report contains important information about the First Trust Alerian U.S. NextGen Infrastructure ETF (the “Fund”) for the year of October 1, 2023 to September 30, 2024 (the “Period”). You can find additional information about the Fund at www.ftportfolios.com/fund-documents/etf/RBLD. You can also request this information by contacting us at 1-800-621-1675 or info@ftportfolios.com.
WHAT WERE THE FUND COSTS FOR THE LAST YEAR?
(Based on a hypothetical $10,000 investment)
Fund Costs of a $10,000 investment Costs paid as a percentage
of a $10,000 investment
First Trust Alerian U.S. NextGen Infrastructure ETF $77 0.65%
HOW DID THE FUND PERFORM LAST YEAR? WHAT AFFECTED THE FUND’S PERFORMANCE?
The Fund returned 35.42% during the 12 months ended September 30, 2024. The Fund outperformed its benchmark, the MSCI World Industrials Index, which returned 34.73% for the same Period.
The Industrials sector received the greatest allocation of any sector in the Fund with an average weight of 43.2% during the Period. The allocation to this sector contributed 18.0% to the Fund’s overall return, the greatest contribution of any sector to the Fund’s return during the Period. No sector had a negative contribution to the Fund’s overall return.
FUND PERFORMANCE (September 30, 2014 to September 30, 2024)
The performance line graph below shows the performance of a hypothetical $10,000 initial investment in the Fund over a ten-year period (or for the life of the Fund, if shorter). The subsequent account value as of the end of the Period is listed next to the name of the Fund or index, as applicable. The performance table below shows the average annual total returns of the Fund for the past one-, five-, and ten-year periods, as applicable (or for the life of the Fund, if shorter), as of the end of the Period. Both the line graph and performance table compare the Fund’s performance to an appropriate broad-based index and may compare to additional indices reflecting the market segment(s) in which the Fund invests over the same periods.
Investment Performance of $10,000
Fund Performance - Growth of 10K
Average Annual Total Returns (as of September 30, 2024) 1 Year 5 Year 10 Year
First Trust Alerian U.S. NextGen Infrastructure ETF 35.42% 9.64% 5.32%
Alerian U.S. NextGen Infrastructure Index(1) 36.55% N/A N/A
MSCI World Industrials Index 34.73% 12.09% 9.71%
Russell 3000® Index 35.19% 15.26% 12.83%
MSCI USA Infrastructure Index 44.28% 7.19% 7.80%
(1)
On July 29, 2022, the Fund’s underlying index changed from the ISE Global Engineering and ConstructionTM Index to the Alerian U.S. NextGen Infrastructure Index. Therefore, the Fund’s performance and historical returns shown for the periods prior to this date are not necessarily indicative of the performance that the Fund, based on its current index, would have generated. Since the Fund’s current underlying index had an inception date of April 30, 2021, it was not in existence for all the periods shown.
Visit www.ftportfolios.com/etf/RBLD for more recent performance information.
The Fund’s past performance is not a good predictor of the Fund’s future performance. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. The Fund’s total returns would have been lower if certain fees had not been waived and expenses reimbursed by the investment advisor.
KEY FUND STATISTICS (As of September 30, 2024)
Fund net assets $10,160,342
Total number of portfolio holdings 102
Total advisory fee paid $57,309
Portfolio turnover rate 26%
WHAT DID THE FUND INVEST IN? (As of September 30, 2024)
The tables below show the investment makeup of the Fund, representing the percentage of total investments of the Fund.
Top Ten Holdings
GE Vernova, Inc. 1.3%
3M Co. 1.2%
Builders FirstSource, Inc. 1.2%
Vistra Corp. 1.2%
Stanley Black & Decker, Inc. 1.2%
Pentair PLC 1.1%
Comfort Systems USA, Inc. 1.1%
Entergy Corp. 1.1%
Masco Corp. 1.1%
Carrier Global Corp. 1.1%
Sector Allocation
Graphical Representation - Allocation 2 Chart
WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
Visit www.ftportfolios.com/fund-documents/etf/RBLD to view additional information about the Fund such as the prospectus, financial information, Fund holdings and proxy voting information. You may also request this information by contacting us at 1-800-621-1675 or info@ftportfolios.com.
OTHER INFORMATION
Alerian and Alerian U.S. NextGen Infrastructure Index are service marks of VettaFi LLC and have been licensed for use by First Trust Advisors L.P. The Fund is not issued, sponsored, endorsed, sold or promoted by VettaFi LLC or its affiliates (collectively, “VettaFi”). VettaFi makes no representation or warranty, express or implied, to the purchasers or owners of the Fund or any member of the public regarding the advisability of investing in securities generally or in the Fund particularly or the ability of the Index to track general market performance.
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First Trust NASDAQ® Clean Edge®
Smart Grid Infrastructure Index Fund
GRID | NASDAQ, INC.
ANNUAL SHAREHOLDER REPORT | September 30, 2024
This annual shareholder report contains important information about the First Trust NASDAQ® Clean Edge® Smart Grid Infrastructure Index Fund (the “Fund”) for the year of October 1, 2023 to September 30, 2024 (the “Period”). You can find additional information about the Fund at www.ftportfolios.com/fund-documents/etf/GRID. You can also request this information by contacting us at 1-800-621-1675 or info@ftportfolios.com.
WHAT WERE THE FUND COSTS FOR THE LAST YEAR?
(Based on a hypothetical $10,000 investment)
Fund Costs of a $10,000 investment Costs paid as a percentage
of a $10,000 investment
First Trust NASDAQ® Clean Edge® Smart Grid Infrastructure Index Fund $66 0.56%
HOW DID THE FUND PERFORM LAST YEAR? WHAT AFFECTED THE FUND’S PERFORMANCE?
The Fund returned 36.62% during the 12 months ended September 30, 2024. The Fund outperformed its benchmark, the S&P Composite 1500® Industrials Index, which returned 34.93% for the same Period.
The Electrical Equipment industry received the greatest allocation of any industry in the Fund with an average weight of 38.6% during the Period. The allocation to this industry contributed 21.3% to the Fund’s overall return, which was the greatest contribution of any industry to return during the Period. The most negative contribution to the Fund’s return came from the Automobile Components industry with a -1.4% contribution to return. The Fund’s currency exposure had a 3.2% impact on performance.
FUND PERFORMANCE (September 30, 2014 to September 30, 2024)
The performance line graph below shows the performance of a hypothetical $10,000 initial investment in the Fund over a ten-year period (or for the life of the Fund, if shorter). The subsequent account value as of the end of the Period is listed next to the name of the Fund or index, as applicable. The performance table below shows the average annual total returns of the Fund for the past one-, five-, and ten-year periods, as applicable (or for the life of the Fund, if shorter), as of the end of the Period. Both the line graph and performance table compare the Fund’s performance to an appropriate broad-based index and may compare to additional indices reflecting the market segment(s) in which the Fund invests over the same periods.
Investment Performance of $10,000
Fund Performance - Growth of 10K
Average Annual Total Returns (as of September 30, 2024) 1 Year 5 Year 10 Year
First Trust NASDAQ® Clean Edge® Smart Grid Infrastructure Index Fund 36.62% 21.98% 14.90%
Nasdaq Clean Edge Smart Grid InfrastructureTM Index 37.32% 22.92% 15.78%
Russell 3000® Index 35.19% 15.26% 12.83%
S&P Composite 1500® Industrials Index 34.93% 14.19% 12.02%
MSCI World Industrials Index 34.73% 12.09% 9.71%
Visit www.ftportfolios.com/etf/GRID for more recent performance information.
The Fund’s past performance is not a good predictor of the Fund’s future performance. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. The Fund’s total returns would have been lower if certain fees had not been waived and expenses reimbursed by the investment advisor.
KEY FUND STATISTICS (As of September 30, 2024)
Fund net assets $1,846,690,043
Total number of portfolio holdings 104
Total advisory fee paid $4,538,693
Portfolio turnover rate 13%
WHAT DID THE FUND INVEST IN? (As of September 30, 2024)
The tables below show the investment makeup of the Fund, representing the percentage of total investments of the Fund.
Top Ten Holdings
Eaton Corp. PLC 8.3%
Johnson Controls International PLC 8.1%
National Grid PLC 8.0%
Schneider Electric SE 7.9%
ABB Ltd. 7.7%
Quanta Services, Inc. 4.1%
Hubbell, Inc. 3.8%
Prysmian S.p.A. 3.6%
Aptiv PLC 3.0%
Samsung SDI Co., Ltd. 2.4%
Sector Allocation
Graphical Representation - Allocation 2 Chart
Any amount shown as 0.0% represents less than 0.1%.
WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
Visit www.ftportfolios.com/fund-documents/etf/GRID to view additional information about the Fund such as the prospectus, financial information, Fund holdings and proxy voting information. You may also request this information by contacting us at 1-800-621-1675 or info@ftportfolios.com.
OTHER INFORMATION
Nasdaq®, Clean Edge®, and Nasdaq Clean Edge Smart Grid InfrastructureTM Index (the “Index”) are registered trademarks and service marks of Nasdaq, Inc. and Clean Edge, Inc., respectively (together with its affiliates hereinafter referred to as the “Corporations”) and are licensed for use by First Trust. The Fund has not been passed on by the Corporations as to its legality or suitability. The Fund is not issued, endorsed, sold or promoted by the Corporations. THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE FUND.
TSR - First Trust Fund Logo
First Trust Indxx
Global Natural Resources Income ETF
FTRI | NASDAQ, INC.
ANNUAL SHAREHOLDER REPORT | September 30, 2024
This annual shareholder report contains important information about the First Trust Indxx Global Natural Resources Income ETF (the “Fund”) for the year of October 1, 2023 to September 30, 2024 (the “Period”). You can find additional information about the Fund at www.ftportfolios.com/fund-documents/etf/FTRI. You can also request this information by contacting us at 1-800-621-1675 or info@ftportfolios.com.
WHAT WERE THE FUND COSTS FOR THE LAST YEAR?
(Based on a hypothetical $10,000 investment)
Fund Costs of a $10,000 investment Costs paid as a percentage
of a $10,000 investment
First Trust Indxx Global Natural Resources Income ETF $74 0.70%
HOW DID THE FUND PERFORM LAST YEAR? WHAT AFFECTED THE FUND’S PERFORMANCE?
The Fund returned 12.11% during the 12 months ended September 30, 2024. The Fund underperformed its benchmark, the MSCI ACWI Materials Index, which returned 20.71% for the same Period.
The Oil, Gas & Consumable Fuels industry received the greatest allocation of any industry in the Fund with an average weight of 37.0% during the Period. However, the greatest contribution to the Fund’s return was 10.5% which came from the Metals & Mining industry which had a weight of 23.9% in the Fund. The most negative contributions to the Fund’s return came from the Chemicals industry and the Food Products industry, each with a -1.5% contribution to the Fund’s return. The Fund’s currency exposure had a 1.3% impact on performance.
FUND PERFORMANCE (September 30, 2014 to September 30, 2024)
The performance line graph below shows the performance of a hypothetical $10,000 initial investment in the Fund over a ten-year period (or for the life of the Fund, if shorter). The subsequent account value as of the end of the Period is listed next to the name of the Fund or index, as applicable. The performance table below shows the average annual total returns of the Fund for the past one-, five-, and ten-year periods, as applicable (or for the life of the Fund, if shorter), as of the end of the Period. Both the line graph and performance table compare the Fund’s performance to an appropriate broad-based index and may compare to additional indices reflecting the market segment(s) in which the Fund invests over the same periods.
Investment Performance of $10,000
Fund Performance - Growth of 10K
Average Annual Total Returns (as of September 30, 2024) 1 Year 5 Year 10 Year
First Trust Indxx Global Natural Resources Income ETF 12.11% 9.96% 0.36%
Indxx Global Natural Resources Income Index(1) 13.22% 11.18% N/A
MSCI ACWI Materials Index 20.71% 10.23% 6.64%
MSCI ACWI Index 31.76% 12.19% 9.39%
(1)
Effective on the close of business on December 18, 2015, the Fund’s underlying index changed from the ISE Global CopperTM Index to the Indxx Global Natural Resources Income Index. Therefore, the Fund’s performance and total returns shown for the period prior to December 18, 2015 are not necessarily indicative of the performance the Fund, based on its current index, would have generated. Since the Fund’s current underlying index had an inception date of June 1, 2015, it was not in existence for all the periods disclosed.
Visit www.ftportfolios.com/etf/FTRI for more recent performance information.
The Fund’s past performance is not a good predictor of the Fund’s future performance. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
KEY FUND STATISTICS (As of September 30, 2024)
Fund net assets $138,577,561
Total number of portfolio holdings 50
Total advisory fee paid $1,343,301
Portfolio turnover rate 71%
WHAT DID THE FUND INVEST IN? (As of September 30, 2024)
The tables below show the investment makeup of the Fund, representing the percentage of total investments of the Fund.
Top Ten Holdings
Freeport-McMoRan, Inc. 10.2%
Goldman Sachs Financial Square Treasury Obligations Fund - Institutional Class 8.7%
Canadian Natural Resources Ltd. 8.7%
Agnico Eagle Mines Ltd. 8.0%
American Water Works Co., Inc. 5.7%
Weyerhaeuser Co. 4.2%
Nutrien Ltd. 4.0%
Ecopetrol S.A., ADR 3.8%
Pentair PLC 3.3%
CF Industries Holdings, Inc. 3.1%
Sector Allocation
Graphical Representation - Allocation 2 Chart
WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
Visit www.ftportfolios.com/fund-documents/etf/FTRI to view additional information about the Fund such as the prospectus, financial information, Fund holdings and proxy voting information. You may also request this information by contacting us at 1-800-621-1675 or info@ftportfolios.com.
OTHER INFORMATION
Indxx and Indxx Global Natural Resources Income Index (“Index”) are trademarks of Indxx, Inc. (“Indxx”) and have been licensed for use for certain purposes by First Trust. The Fund is not sponsored, endorsed, sold or promoted by Indxx, and Indxx makes no representation regarding the advisability of trading in such product. The Index is determined, composed and calculated by Indxx without regard to First Trust or the Fund.
TSR - First Trust Fund Logo
First Trust Indxx Global Agriculture ETF
FTAG | NASDAQ, INC.
ANNUAL SHAREHOLDER REPORT | September 30, 2024
This annual shareholder report contains important information about the First Trust Indxx Global Agriculture ETF (the “Fund”) for the year of October 1, 2023 to September 30, 2024 (the “Period”). You can find additional information about the Fund at www.ftportfolios.com/fund-documents/etf/FTAG. You can also request this information by contacting us at 1-800-621-1675 or info@ftportfolios.com.
WHAT WERE THE FUND COSTS FOR THE LAST YEAR?
(Based on a hypothetical $10,000 investment)
Fund Costs of a $10,000 investment Costs paid as a percentage
of a $10,000 investment
First Trust Indxx Global Agriculture ETF $71 0.70%
HOW DID THE FUND PERFORM LAST YEAR? WHAT AFFECTED THE FUND’S PERFORMANCE?
The Fund returned 2.27% during the 12 months ended September 30, 2024. The Fund underperformed its benchmark, the MSCI ACWI Materials Index, which returned 20.71% for the same Period.
The Chemicals industry received the greatest allocation of any industry in the Fund with an average weight of 49.1% during the Period. However, the greatest contribution to the Fund’s return came from the Automobiles industry which had a return of 4.7% and only a 6.4% weight in the Fund. The most negative contribution to the Fund’s return came from the Pharmaceuticals industry with a -3.3% contribution to the Fund’s return. The Fund’s currency exposure had a 1.7% impact on performance.
FUND PERFORMANCE (September 30, 2014 to September 30, 2024)
The performance line graph below shows the performance of a hypothetical $10,000 initial investment in the Fund over a ten-year period (or for the life of the Fund, if shorter). The subsequent account value as of the end of the Period is listed next to the name of the Fund or index, as applicable. The performance table below shows the average annual total returns of the Fund for the past one-, five-, and ten-year periods, as applicable (or for the life of the Fund, if shorter), as of the end of the Period. Both the line graph and performance table compare the Fund’s performance to an appropriate broad-based index and may compare to additional indices reflecting the market segment(s) in which the Fund invests over the same periods.
Investment Performance of $10,000
Fund Performance - Growth of 10K
Average Annual Total Returns (as of September 30, 2024) 1 Year 5 Year 10 Year
First Trust Indxx Global Agriculture ETF 2.27% 4.89% -5.54%
Indxx Global Agriculture Index(1) 4.45% 6.34% N/A
MSCI ACWI Index 31.76% 12.19% 9.39%
MSCI ACWI Materials Index 20.71% 10.23% 6.64%
(1)
Effective on the close of business on December 18, 2015, the Fund’s underlying index changed from the ISE Global PlatinumTM Index to the Indxx Global Agriculture Index. Therefore, the Fund’s performance and total returns shown for the period prior to December 18, 2015 are not necessarily indicative of the performance the Fund, based on its current index, would have generated. Since the Fund’s current underlying index had an inception date of June 1, 2015, it was not in existence for all the periods disclosed.
Visit www.ftportfolios.com/etf/FTAG for more recent performance information.
The Fund’s past performance is not a good predictor of the Fund’s future performance. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
KEY FUND STATISTICS (As of September 30, 2024)
Fund net assets $6,269,656
Total number of portfolio holdings 51
Total advisory fee paid $66,595
Portfolio turnover rate 11%
WHAT DID THE FUND INVEST IN? (As of September 30, 2024)
The tables below show the investment makeup of the Fund, representing the percentage of total investments of the Fund.
Top Ten Holdings
Deere & Co. 9.8%
BASF SE 9.3%
Mahindra & Mahindra Ltd. 9.0%
Corteva, Inc. 8.0%
Bayer AG 4.7%
Nutrien Ltd. 4.4%
Industries Qatar QSC 4.2%
Kubota Corp. 3.4%
Wilmar International Ltd. 3.3%
CF Industries Holdings, Inc. 3.2%
Sector Allocation
Graphical Representation - Allocation 2 Chart
WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
Visit www.ftportfolios.com/fund-documents/etf/FTAG to view additional information about the Fund such as the prospectus, financial information, Fund holdings and proxy voting information. You may also request this information by contacting us at 1-800-621-1675 or info@ftportfolios.com.
OTHER INFORMATION
Indxx and Indxx Global Agriculture Index (“Index”) are trademarks of Indxx, Inc. (“Indxx”) and have been licensed for use for certain purposes by First Trust. The Fund is not sponsored, endorsed, sold or promoted by Indxx, and Indxx makes no representation regarding the advisability of trading in such product. The Index is determined, composed and calculated by Indxx without regard to First Trust or the Fund.
TSR - First Trust Fund Logo
First Trust Indxx NextG ETF
NXTG | NASDAQ, INC.
ANNUAL SHAREHOLDER REPORT | September 30, 2024
This annual shareholder report contains important information about the First Trust Indxx NextG ETF (the “Fund”) for the year of October 1, 2023 to September 30, 2024 (the “Period”). You can find additional information about the Fund at www.ftportfolios.com/fund-documents/etf/NXTG. You can also request this information by contacting us at 1-800-621-1675 or info@ftportfolios.com.
WHAT WERE THE FUND COSTS FOR THE LAST YEAR?
(Based on a hypothetical $10,000 investment)
Fund Costs of a $10,000 investment Costs paid as a percentage
of a $10,000 investment
First Trust Indxx NextG ETF $81 0.70%
HOW DID THE FUND PERFORM LAST YEAR? WHAT AFFECTED THE FUND’S PERFORMANCE?
The Fund returned 31.44% during the 12 months ended September 30, 2024. The Fund underperformed its benchmark, the MSCI ACWI Information Technology Index, which returned 48.35% for the same Period.
The industry with the greatest allocation in the Fund during the Period was the Semiconductors & Semiconductor Equipment industry. This industry received an average weight of 24.7% and contributed 10.5% to the Fund’s overall return, which was the greatest contribution to return of any industry in the Fund. The only industry with a negative contribution to the Fund’s return was the Software industry, with a contribution of only ‑0.3%. The Fund’s currency exposure had a 2.3% impact on performance.
FUND PERFORMANCE (September 30, 2014 to September 30, 2024)
The performance line graph below shows the performance of a hypothetical $10,000 initial investment in the Fund over a ten-year period (or for the life of the Fund, if shorter). The subsequent account value as of the end of the Period is listed next to the name of the Fund or index, as applicable. The performance table below shows the average annual total returns of the Fund for the past one-, five-, and ten-year periods, as applicable (or for the life of the Fund, if shorter), as of the end of the Period. Both the line graph and performance table compare the Fund’s performance to an appropriate broad-based index and may compare to additional indices reflecting the market segment(s) in which the Fund invests over the same periods.
Investment Performance of $10,000
Fund Performance - Growth of 10K
Average Annual Total Returns (as of September 30, 2024) 1 Year 5 Year 10 Year
First Trust Indxx NextG ETF 31.44% 13.78% 10.65%
Indxx 5G & NextG Thematic IndexSM(1) (2) 32.82% 15.00% N/A
MSCI ACWI Information Technology Index 48.35% 22.78% 19.12%
MSCI ACWI Index 31.76% 12.19% 9.39%
(1)
On May 30, 2019, the Fund’s underlying index changed from the Nasdaq CTA SmartphoneTM Index to the Indxx 5G & NextG Thematic IndexSM. Therefore, the Fund’s performance and historical returns shown for periods prior to this date are not necessarily indicative of the performance that the Fund, based on this current index, would have generated.
(2)
Performance data is not available for all the periods shown in the table for the index because performance data does not exist for some of the entire periods.
Visit www.ftportfolios.com/etf/NXTG for more recent performance information.
The Fund’s past performance is not a good predictor of the Fund’s future performance. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
KEY FUND STATISTICS (As of September 30, 2024)
Fund net assets $385,646,317
Total number of portfolio holdings 103
Total advisory fee paid $2,693,527
Portfolio turnover rate 17%
WHAT DID THE FUND INVEST IN? (As of September 30, 2024)
The tables below show the investment makeup of the Fund, representing the percentage of total investments of the Fund.
Top Ten Holdings
Goldman Sachs Financial Square Treasury Obligations Fund - Institutional Class 3.9%
Xiaomi Corp., Class B 1.5%
Fujitsu Ltd. 1.5%
F5, Inc. 1.5%
International Business Machines Corp. 1.5%
Ciena Corp. 1.4%
Infosys Ltd., ADR 1.4%
HCL Technologies Ltd. 1.4%
Arista Networks, Inc. 1.4%
SBA Communications Corp. 1.4%
Sector Allocation
Graphical Representation - Allocation 2 Chart
WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
Visit www.ftportfolios.com/fund-documents/etf/NXTG to view additional information about the Fund such as the prospectus, financial information, Fund holdings and proxy voting information. You may also request this information by contacting us at 1-800-621-1675 or info@ftportfolios.com.
OTHER INFORMATION
Indxx and Indxx 5G & NextG Thematic IndexSM (“Index”) are trademarks of Indxx, Inc. (“Indxx”) and have been licensed for use for certain purposes by First Trust. The Fund is not sponsored, endorsed, sold or promoted by Indxx, and Indxx makes no representation regarding the advisability of trading in such product. The Index is determined, composed and calculated by Indxx without regard to First Trust or the Fund.
TSR - First Trust Fund Logo
First Trust S-Network
Future Vehicles & Technology ETF
CARZ | NASDAQ, INC.
ANNUAL SHAREHOLDER REPORT | September 30, 2024
This annual shareholder report contains important information about the First Trust S-Network Future Vehicles & Technology ETF (the “Fund”) for the year of October 1, 2023 to September 30, 2024 (the “Period”). You can find additional information about the Fund at www.ftportfolios.com/fund-documents/etf/CARZ. You can also request this information by contacting us at 1-800-621-1675 or info@ftportfolios.com.
WHAT WERE THE FUND COSTS FOR THE LAST YEAR?
(Based on a hypothetical $10,000 investment)
Fund Costs of a $10,000 investment Costs paid as a percentage
of a $10,000 investment
First Trust S-Network Future Vehicles & Technology ETF $75 0.70%
HOW DID THE FUND PERFORM LAST YEAR? WHAT AFFECTED THE FUND’S PERFORMANCE?
The Fund returned 14.87% during the 12 months ended September 30, 2024. The Fund underperformed its benchmark, the MSCI ACWI Index, which returned 31.76% for the same Period.
The Semiconductors & Semiconductor Equipment industry received the greatest allocation, with an average weight in the Fund of 39.3%. The allocation to this industry contributed 14.2% to the Fund’s overall return, which was the greatest contribution of any industry to the Fund’s return. The industry with the most negative contribution to the Fund’s return was the Automobile Components industry which contributed -1.7% to the Fund’s overall return. The Fund’s currency exposure had a 1.3% impact on performance.
FUND PERFORMANCE (September 30, 2014 to September 30, 2024)
The performance line graph below shows the performance of a hypothetical $10,000 initial investment in the Fund over a ten-year period (or for the life of the Fund, if shorter). The subsequent account value as of the end of the Period is listed next to the name of the Fund or index, as applicable. The performance table below shows the average annual total returns of the Fund for the past one-, five-, and ten-year periods, as applicable (or for the life of the Fund, if shorter), as of the end of the Period. Both the line graph and performance table compare the Fund’s performance to an appropriate broad-based index and may compare to additional indices reflecting the market segment(s) in which the Fund invests over the same periods.
Investment Performance of $10,000
Fund Performance - Growth of 10K
Average Annual Total Returns (as of September 30, 2024) 1 Year 5 Year 10 Year
First Trust S-Network Future Vehicles & Technology ETF 14.87% 14.50% 6.48%
S-Network Electric & Future Vehicle Ecosystem Index(1) 15.23% N/A N/A
MSCI ACWI Index 31.76% 12.19% 9.39%
(1)
On January 26, 2022, the Fund’s underlying index changed from the Nasdaq Global AutoTM Index to the S-Network Electric & Future Vehicle Ecosystem Index. Therefore, the Fund’s performance and historical returns shown for periods prior to this date are not necessarily indicative of the performance that the Fund, based on its current index, would have generated. Since the Fund’s current underlying index had an inception date of May 11, 2021, it was not in existence for all the periods disclosed.
Visit www.ftportfolios.com/etf/CARZ for more recent performance information.
The Fund’s past performance is not a good predictor of the Fund’s future performance. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
KEY FUND STATISTICS (As of September 30, 2024)
Fund net assets $35,140,044
Total number of portfolio holdings 103
Total advisory fee paid $263,891
Portfolio turnover rate 32%
WHAT DID THE FUND INVEST IN? (As of September 30, 2024)
The tables below show the investment makeup of the Fund, representing the percentage of total investments of the Fund.
Top Ten Holdings
Goldman Sachs Financial Square Treasury Obligations Fund - Institutional Class 5.0%
Tesla, Inc. 4.9%
Apple, Inc. 4.6%
NVIDIA Corp. 4.3%
Microsoft Corp. 4.3%
Taiwan Semiconductor Manufacturing Co., Ltd., ADR 4.3%
Advanced Micro Devices, Inc. 4.1%
Alphabet, Inc., Class A 4.1%
QUALCOMM, Inc. 3.9%
Samsung Electronics Co., Ltd. 3.4%
Sector Allocation
Graphical Representation - Allocation 2 Chart
WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
Visit www.ftportfolios.com/fund-documents/etf/CARZ to view additional information about the Fund such as the prospectus, financial information, Fund holdings and proxy voting information. You may also request this information by contacting us at 1-800-621-1675 or info@ftportfolios.com.
OTHER INFORMATION
S-Network and S-Network Electric & Future Vehicle Ecosystem Index (“Index”) are service marks of VettaFi LLC and have been licensed for use by First Trust Advisors L.P. The Fund is not issued, sponsored, endorsed, sold or promoted by VettaFi LLC or its affiliates (collectively, “VettaFi”). VettaFi makes no representation or warranty, express or implied, to the purchasers or owners of the Fund or any member of the public regarding the advisability of investing in securities generally or in the Fund particularly or the ability of the Index to track general market performance.
TSR - First Trust Fund Logo
First Trust Cloud Computing ETF
SKYY | NASDAQ, INC.
ANNUAL SHAREHOLDER REPORT | September 30, 2024
This annual shareholder report contains important information about the First Trust Cloud Computing ETF (the “Fund”) for the year of October 1, 2023 to September 30, 2024 (the “Period”). You can find additional information about the Fund at www.ftportfolios.com/fund-documents/etf/SKYY. You can also request this information by contacting us at 1-800-621-1675 or info@ftportfolios.com.
WHAT WERE THE FUND COSTS FOR THE LAST YEAR?
(Based on a hypothetical $10,000 investment)
Fund Costs of a $10,000 investment Costs paid as a percentage
of a $10,000 investment
First Trust Cloud Computing ETF $70 0.60%
HOW DID THE FUND PERFORM LAST YEAR? WHAT AFFECTED THE FUND’S PERFORMANCE?
The Fund returned 34.76% during the 12 months ended September 30, 2024. The Fund underperformed its benchmark, the S&P 500® Index, which returned 36.35% for the same Period.
The Software industry received the greatest allocation in the Fund, with an average weight of 49.5%. The allocation to this industry contributed 14.9% to the Fund’s overall return, which was the greatest contribution of any industry to the Fund’s return during the Period. No industry had a materially negative contribution to the Fund’s return during the Period.
FUND PERFORMANCE (September 30, 2014 to September 30, 2024)
The performance line graph below shows the performance of a hypothetical $10,000 initial investment in the Fund over a ten-year period (or for the life of the Fund, if shorter). The subsequent account value as of the end of the Period is listed next to the name of the Fund or index, as applicable. The performance table below shows the average annual total returns of the Fund for the past one-, five-, and ten-year periods, as applicable (or for the life of the Fund, if shorter), as of the end of the Period. Both the line graph and performance table compare the Fund’s performance to an appropriate broad-based index and may compare to additional indices reflecting the market segment(s) in which the Fund invests over the same periods.
Investment Performance of $10,000
Fund Performance - Growth of 10K
Average Annual Total Returns (as of September 30, 2024) 1 Year 5 Year 10 Year
First Trust Cloud Computing ETF 34.76% 12.94% 14.55%
ISE CTA Cloud ComputingTM Index(1) 35.62% 13.61% 15.19%
S&P 500® Index 36.35% 15.98% 13.38%
S&P Composite 1500® Information Technology Index 51.73% 26.22% 22.04%
(1)
On June 24, 2019, the Fund’s underlying index changed its methodology and changed its name from “ISE Cloud ComputingTM Index” to “ISE CTA Cloud ComputingTM Index.”
Visit www.ftportfolios.com/etf/SKYY for more recent performance information.
The Fund’s past performance is not a good predictor of the Fund’s future performance. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
KEY FUND STATISTICS (As of September 30, 2024)
Fund net assets $2,977,532,478
Total number of portfolio holdings 65
Total advisory fee paid $17,358,724
Portfolio turnover rate 35%
WHAT DID THE FUND INVEST IN? (As of September 30, 2024)
The tables below show the investment makeup of the Fund, representing the percentage of total investments of the Fund.
Top Ten Holdings
Oracle Corp. 4.5%
Lumen Technologies, Inc. 4.2%
International Business Machines Corp. 4.0%
Arista Networks, Inc. 4.0%
Amazon.com, Inc. 3.9%
Microsoft Corp. 3.8%
Alphabet, Inc., Class A 3.8%
Pure Storage, Inc., Class A 3.6%
Nutanix, Inc., Class A 3.5%
MongoDB, Inc. 2.9%
Sector Allocation
Graphical Representation - Allocation 2 Chart
Any amount shown as 0.0% represents less than 0.1%.
WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
Visit www.ftportfolios.com/fund-documents/etf/SKYY to view additional information about the Fund such as the prospectus, financial information, Fund holdings and proxy voting information. You may also request this information by contacting us at 1-800-621-1675 or info@ftportfolios.com.
OTHER INFORMATION
Nasdaq® and ISE CTA Cloud ComputingTM Index (the “Index”) are registered trademarks and service marks of Nasdaq, Inc. (together with its affiliates hereinafter referred to as the “Corporations”) and are licensed for use by First Trust. The Fund has not been passed on by the Corporations as to its legality or suitability. The Fund is not issued, endorsed, sold or promoted by the Corporations. THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE FUND.
TSR - First Trust Fund Logo
First Trust International
Equity Opportunities ETF
FPXI | NASDAQ, INC.
ANNUAL SHAREHOLDER REPORT | September 30, 2024
This annual shareholder report contains important information about the First Trust International Equity Opportunities ETF (the “Fund”) for the year of October 1, 2023 to September 30, 2024 (the “Period”). You can find additional information about the Fund at www.ftportfolios.com/fund-documents/etf/FPXI. You can also request this information by contacting us at 1-800-621-1675 or info@ftportfolios.com.
WHAT WERE THE FUND COSTS FOR THE LAST YEAR?
(Based on a hypothetical $10,000 investment)
Fund Costs of a $10,000 investment Costs paid as a percentage
of a $10,000 investment
First Trust International Equity Opportunities ETF $80 0.70%
HOW DID THE FUND PERFORM LAST YEAR? WHAT AFFECTED THE FUND’S PERFORMANCE?
The Fund returned 27.15% during the 12 months ended September 30, 2024. The Fund outperformed its benchmark, the MSCI ACWI ex USA Index, which returned 25.35% for the same Period.
The Fund’s greatest allocation was 19.5% to the Consumer Discretionary sector, and investments in this sector contributed 4.7% to the Fund’s performance. With a weight of 16.9%, the sector with the greatest return contribution to the Fund was the Information Technology sector at 8.5%. The only negatively contributing sector was the Energy sector, which received an allocation of 2.1% and caused a -0.3% drag on the Fund’s return. The Fund’s currency exposure had a 2.8% impact on performance.
FUND PERFORMANCE (November 4, 2014 to September 30, 2024)
The performance line graph below shows the performance of a hypothetical $10,000 initial investment in the Fund over a ten-year period (or for the life of the Fund, if shorter). The subsequent account value as of the end of the Period is listed next to the name of the Fund or index, as applicable. The performance table below shows the average annual total returns of the Fund for the past one-, five-, and ten-year periods, as applicable (or for the life of the Fund, if shorter), as of the end of the Period. Both the line graph and performance table compare the Fund’s performance to an appropriate broad-based index and may compare to additional indices reflecting the market segment(s) in which the Fund invests over the same periods.
Investment Performance of $10,000
Fund Performance - Growth of 10K
Average Annual Total Returns (as of September 30, 2024) 1 Year 5 Year Since
Inception
(11/4/14)
First Trust International Equity Opportunities ETF 27.15% 6.67% 6.02%
IPOX® International Index 28.35% 7.66% 6.91%
MSCI ACWI ex USA Index 25.35% 7.59% 5.47%
Visit www.ftportfolios.com/etf/FPXI for more recent performance information.
The Fund’s past performance is not a good predictor of the Fund’s future performance. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
KEY FUND STATISTICS (As of September 30, 2024)
Fund net assets $145,506,998
Total number of portfolio holdings 51
Total advisory fee paid $1,111,523
Portfolio turnover rate 106%
WHAT DID THE FUND INVEST IN? (As of September 30, 2024)
The tables below show the investment makeup of the Fund, representing the percentage of total investments of the Fund.
Top Ten Holdings
ARM Holdings PLC, ADR 7.1%
Spotify Technology S.A. 5.2%
Monday.com Ltd. 4.9%
InPost S.A. 4.2%
Nordnet AB publ 4.2%
NU Holdings Ltd., Class A 4.1%
Sandoz Group AG 4.0%
Aristocrat Leisure Ltd. 3.8%
UCB S.A. 3.5%
TDK Corp. 3.4%
Sector Allocation
Graphical Representation - Allocation 2 Chart
WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
Visit www.ftportfolios.com/fund-documents/etf/FPXI to view additional information about the Fund such as the prospectus, financial information, Fund holdings and proxy voting information. You may also request this information by contacting us at 1-800-621-1675 or info@ftportfolios.com.
OTHER INFORMATION
IPOX® and IPOX® International Index are registered international trademarks and service marks of IPOX® Schuster LLC (“IPOX”) and have been licensed for use by First Trust. The Fund is not sponsored, endorsed, sold or promoted by IPOX, and IPOX makes no representation regarding the advisability of trading in such Fund.
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First Trust Nasdaq Cybersecurity ETF
CIBR | NASDAQ, INC.
ANNUAL SHAREHOLDER REPORT | September 30, 2024
This annual shareholder report contains important information about the First Trust Nasdaq Cybersecurity ETF (the “Fund”) for the year of October 1, 2023 to September 30, 2024 (the “Period”). You can find additional information about the Fund at www.ftportfolios.com/fund-documents/etf/CIBR. You can also request this information by contacting us at 1-800-621-1675 or info@ftportfolios.com.
WHAT WERE THE FUND COSTS FOR THE LAST YEAR?
(Based on a hypothetical $10,000 investment)
Fund Costs of a $10,000 investment Costs paid as a percentage
of a $10,000 investment
First Trust Nasdaq Cybersecurity ETF $68 0.59%
HOW DID THE FUND PERFORM LAST YEAR? WHAT AFFECTED THE FUND’S PERFORMANCE?
The Fund returned 31.12% during the 12 months ended September 30, 2024. The Fund underperformed its benchmark, the S&P Composite 1500® Information Technology Index, which returned 51.73% for the same Period.
The Fund allocated 52.1% to the Software industry and investments in this industry contributed 16.0% to the Fund’s overall return, which was more than any other industry. No industry had a negative contribution to the Fund’s return. The Fund’s currency exposure had a 0.3% impact on performance.
FUND PERFORMANCE (July 6, 2015 to September 30, 2024)
The performance line graph below shows the performance of a hypothetical $10,000 initial investment in the Fund over a ten-year period (or for the life of the Fund, if shorter). The subsequent account value as of the end of the Period is listed next to the name of the Fund or index, as applicable. The performance table below shows the average annual total returns of the Fund for the past one-, five-, and ten-year periods, as applicable (or for the life of the Fund, if shorter), as of the end of the Period. Both the line graph and performance table compare the Fund’s performance to an appropriate broad-based index and may compare to additional indices reflecting the market segment(s) in which the Fund invests over the same periods.
Investment Performance of $10,000
Fund Performance - Growth of 10K
Average Annual Total Returns (as of September 30, 2024) 1 Year 5 Year Since
Inception
(7/6/15)
First Trust Nasdaq Cybersecurity ETF 31.12% 17.31% 13.13%
Nasdaq CTA CybersecurityTM Index 31.83% 18.15% 13.93%
S&P 500® Index 36.35% 15.98% 13.78%
S&P Composite 1500® Information Technology Index 51.73% 26.22% 23.13%
Visit www.ftportfolios.com/etf/CIBR for more recent performance information.
The Fund’s past performance is not a good predictor of the Fund’s future performance. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
KEY FUND STATISTICS (As of September 30, 2024)
Fund net assets $6,601,960,374
Total number of portfolio holdings 34
Total advisory fee paid $36,419,444
Portfolio turnover rate 39%
WHAT DID THE FUND INVEST IN? (As of September 30, 2024)
The tables below show the investment makeup of the Fund, representing the percentage of total investments of the Fund.
Top Ten Holdings
Broadcom, Inc. 8.4%
Cisco Systems, Inc. 8.3%
CrowdStrike Holdings, Inc., Class A 8.0%
Infosys Ltd., ADR 7.5%
Palo Alto Networks, Inc. 7.4%
Leidos Holdings, Inc. 4.1%
Booz Allen Hamilton Holding Corp. 4.0%
Fortinet, Inc. 4.0%
Check Point Software Technologies Ltd. 4.0%
Akamai Technologies, Inc. 3.9%
Sector Allocation
Graphical Representation - Allocation 2 Chart
WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
Visit www.ftportfolios.com/fund-documents/etf/CIBR to view additional information about the Fund such as the prospectus, financial information, Fund holdings and proxy voting information. You may also request this information by contacting us at 1-800-621-1675 or info@ftportfolios.com.
OTHER INFORMATION
Nasdaq® and Nasdaq CTA CybersecurityTM Index (the “Index”) are registered trademarks and service marks of Nasdaq, Inc. (together with its affiliates hereinafter referred to as the “Corporations”) and are licensed for use by First Trust. The Fund has not been passed on by the Corporations as to its legality or suitability. The Fund is not issued, endorsed, sold or promoted by the Corporations. THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE FUND.
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First Trust IPOX®
Europe Equity Opportunities ETF
FPXE | NASDAQ, INC.
ANNUAL SHAREHOLDER REPORT | September 30, 2024
This annual shareholder report contains important information about the First Trust IPOX® Europe Equity Opportunities ETF (the “Fund”) for the year of October 1, 2023 to September 30, 2024 (the “Period”). You can find additional information about the Fund at www.ftportfolios.com/fund-documents/etf/FPXE. You can also request this information by contacting us at 1-800-621-1675 or info@ftportfolios.com.
WHAT WERE THE FUND COSTS FOR THE LAST YEAR?
(Based on a hypothetical $10,000 investment)
Fund Costs of a $10,000 investment Costs paid as a percentage
of a $10,000 investment
First Trust IPOX® Europe Equity Opportunities ETF $81 0.70%
HOW DID THE FUND PERFORM LAST YEAR? WHAT AFFECTED THE FUND’S PERFORMANCE?
The Fund returned 31.38% during the 12 months ended September 30, 2024. The Fund outperformed its benchmark, the MSCI Europe Index, which returned 25.23% for the same Period.
The sector with the greatest allocation was the Consumer Discretionary sector at 21.9%. This sector contributed 7.1% to the Fund’s return. The greatest contribution to return, however, came from investments in the Information Technology sector, which received an allocation of 12.2% and contributed 8.1% to the Fund’s overall return. No sector contributed negatively to the Fund’s return. The Fund’s currency exposure had a 4.8% impact on performance.
FUND PERFORMANCE (October 4, 2018 to September 30, 2024)
The performance line graph below shows the performance of a hypothetical $10,000 initial investment in the Fund over a ten-year period (or for the life of the Fund, if shorter). The subsequent account value as of the end of the Period is listed next to the name of the Fund or index, as applicable. The performance table below shows the average annual total returns of the Fund for the past one-, five-, and ten-year periods, as applicable (or for the life of the Fund, if shorter), as of the end of the Period. Both the line graph and performance table compare the Fund’s performance to an appropriate broad-based index and may compare to additional indices reflecting the market segment(s) in which the Fund invests over the same periods.
Investment Performance of $10,000
Fund Performance - Growth of 10K
Average Annual Total Returns (as of September 30, 2024) 1 Year 5 Year Since
Inception
(10/4/18)
First Trust IPOX® Europe Equity Opportunities ETF 31.38% 8.08% 6.94%
IPOX®-100 Europe Index 32.80% 9.33% 8.19%
MSCI Europe Index 25.23% 8.90% 7.54%
Visit www.ftportfolios.com/etf/FPXE for more recent performance information.
The Fund’s past performance is not a good predictor of the Fund’s future performance. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
KEY FUND STATISTICS (As of September 30, 2024)
Fund net assets $4,005,212
Total number of portfolio holdings 102
Total advisory fee paid $30,506
Portfolio turnover rate 107%
WHAT DID THE FUND INVEST IN? (As of September 30, 2024)
The tables below show the investment makeup of the Fund, representing the percentage of total investments of the Fund.
Top Ten Holdings
ARM Holdings PLC, ADR 6.6%
Monday.com Ltd. 4.3%
Nordnet AB publ 4.1%
Spotify Technology S.A. 4.1%
Gen Digital, Inc. 3.7%
On Holding AG, Class A 3.5%
InPost S.A. 3.3%
UCB S.A. 3.1%
BoneSupport Holding AB 2.6%
Munters Group AB 2.6%
Sector Allocation
Graphical Representation - Allocation 2 Chart
WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
Visit www.ftportfolios.com/fund-documents/etf/FPXE to view additional information about the Fund such as the prospectus, financial information, Fund holdings and proxy voting information. You may also request this information by contacting us at 1-800-621-1675 or info@ftportfolios.com.
OTHER INFORMATION
IPOX® and IPOX®-100 Europe Index are registered international trademarks and service marks of IPOX® Schuster LLC (“IPOX”) and have been licensed for use by First Trust. The Fund is not sponsored, endorsed, sold or promoted by IPOX, and IPOX makes no representation regarding the advisability of trading in such Fund.
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First Trust Dow Jones
International Internet ETF
FDNI | NASDAQ, INC.
ANNUAL SHAREHOLDER REPORT | September 30, 2024
This annual shareholder report contains important information about the First Trust Dow Jones International Internet ETF (the “Fund”) for the year of October 1, 2023 to September 30, 2024 (the “Period”). You can find additional information about the Fund at www.ftportfolios.com/fund-documents/etf/FDNI. You can also request this information by contacting us at 1-800-621-1675 or info@ftportfolios.com.
WHAT WERE THE FUND COSTS FOR THE LAST YEAR?
(Based on a hypothetical $10,000 investment)
Fund Costs of a $10,000 investment Costs paid as a percentage
of a $10,000 investment
First Trust Dow Jones International Internet ETF $78 0.65%
HOW DID THE FUND PERFORM LAST YEAR? WHAT AFFECTED THE FUND’S PERFORMANCE?
The Fund returned 41.14% during the 12 months ended September 30, 2024. The Fund outperformed its benchmark, the MSCI ACWI ex-USA Information Technology Index, which returned 38.32% for the same Period.
Nearly 95% of the Fund’s assets were allocated across three sectors. The Consumer Discretionary sector had an allocation of 46.6%, the Communication Services sector had an allocation of 35.4%, and the Information Technology sector had an allocation of 12.7%. The greatest contribution to the Fund’s return came from the allocation to the Consumer Discretionary sector, with a 21.4% contribution. The most negative contribution to the Fund’s return came from investments in the Health Care sector which caused a -0.4% drag on the Fund’s overall return. The Fund’s currency exposure had a 2.9% impact on performance.
FUND PERFORMANCE (November 5, 2018 to September 30, 2024)
The performance line graph below shows the performance of a hypothetical $10,000 initial investment in the Fund over a ten-year period (or for the life of the Fund, if shorter). The subsequent account value as of the end of the Period is listed next to the name of the Fund or index, as applicable. The performance table below shows the average annual total returns of the Fund for the past one-, five-, and ten-year periods, as applicable (or for the life of the Fund, if shorter), as of the end of the Period. Both the line graph and performance table compare the Fund’s performance to an appropriate broad-based index and may compare to additional indices reflecting the market segment(s) in which the Fund invests over the same periods.
Investment Performance of $10,000
Fund Performance - Growth of 10K
Average Annual Total Returns (as of September 30, 2024) 1 Year 5 Year Since
Inception
(11/5/18)
First Trust Dow Jones International Internet ETF 41.14% 7.47% 7.87%
Dow Jones International Internet Index 42.64% 8.31% 8.70%
MSCI ACWI ex-USA Information Technology Index 38.32% 14.79% 15.17%
MSCI ACWI ex-USA Index 25.35% 7.59% 7.42%
Visit www.ftportfolios.com/etf/FDNI for more recent performance information.
The Fund’s past performance is not a good predictor of the Fund’s future performance. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
KEY FUND STATISTICS (As of September 30, 2024)
Fund net assets $41,311,383
Total number of portfolio holdings 41
Total advisory fee paid $183,547
Portfolio turnover rate 33%
WHAT DID THE FUND INVEST IN? (As of September 30, 2024)
The tables below show the investment makeup of the Fund, representing the percentage of total investments of the Fund.
Top Ten Holdings
Alibaba Group Holding Ltd. 11.7%
Meituan, Class B 11.0%
Tencent Holdings Ltd. 10.4%
JD.com, Inc., Class A 5.5%
Prosus N.V. 5.5%
PDD Holdings, Inc., ADR 5.0%
Shopify, Inc., Class A 5.0%
Spotify Technology S.A. 4.9%
Adyen N.V. 4.4%
Naspers Ltd., Class N 3.9%
Sector Allocation
Graphical Representation - Allocation 2 Chart
WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
Visit www.ftportfolios.com/fund-documents/etf/FDNI to view additional information about the Fund such as the prospectus, financial information, Fund holdings and proxy voting information. You may also request this information by contacting us at 1-800-621-1675 or info@ftportfolios.com.
OTHER INFORMATION
Dow Jones International Internet Index (“Index”) is a product of S&P Dow Jones Indices, LLC or its affiliates (“SPDJI”) and has been licensed for use by First Trust. S&P® is a registered trademark of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by First Trust. The Fund is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P or their respective affiliates and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the Index.
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First Trust Bloomberg
Emerging Market Democracies ETF
EMDM | NYSE ARCA, INC.
ANNUAL SHAREHOLDER REPORT | September 30, 2024
This annual shareholder report contains important information about the First Trust Bloomberg Emerging Market Democracies ETF (the “Fund”) for the year of October 1, 2023 to September 30, 2024 (the “Period”). You can find additional information about the Fund at www.ftportfolios.com/fund-documents/etf/EMDM. You can also request this information by contacting us at 1-800-621-1675 or info@ftportfolios.com.
WHAT WERE THE FUND COSTS FOR THE LAST YEAR?
(Based on a hypothetical $10,000 investment)
Fund Costs of a $10,000 investment Costs paid as a percentage
of a $10,000 investment
First Trust Bloomberg Emerging Market Democracies ETF $84 0.75%
HOW DID THE FUND PERFORM LAST YEAR? WHAT AFFECTED THE FUND’S PERFORMANCE?
The Fund returned 23.28% during the 12 months ended September 30, 2024. The Fund underperformed its benchmark, the MSCI Emerging Markets Index, which returned 26.05% for the same Period.
The Fund gave a nearly equal allocation to investments in six countries: Taiwan at 16.2%, India at 15.2%, South Africa at 14.8%, South Korea at 14.5%, Brazil at 14.4%, and Mexico at 14.1%. The greatest contributor to the Fund’s return were investments in Taiwan, which contributed 9.5% to Fund’s overall return. The greatest drag on Fund performance came from Chile. The Fund invested in only one Chilean security which contributed
-0.7% to the Fund’s return. The Fund’s currency exposure had a 0.4% impact on performance.
FUND PERFORMANCE (March 2, 2023 to September 30, 2024)
The performance line graph below shows the performance of a hypothetical $10,000 initial investment in the Fund over a ten-year period (or for the life of the Fund, if shorter). The subsequent account value as of the end of the Period is listed next to the name of the Fund or index, as applicable. The performance table below shows the average annual total returns of the Fund for the past one-, five-, and ten-year periods, as applicable (or for the life of the Fund, if shorter), as of the end of the Period. Both the line graph and performance table compare the Fund’s performance to an appropriate broad-based index and may compare to additional indices reflecting the market segment(s) in which the Fund invests over the same periods.
Investment Performance of $10,000
Fund Performance - Growth of 10K
Average Annual Total Returns (as of September 30, 2024) 1 Year Since
Inception
(3/2/23)
First Trust Bloomberg Emerging Market Democracies ETF 23.28% 14.75%
Bloomberg Emerging Market Democracies Index 25.94% 17.25%
MSCI Emerging Markets Index 26.05% 15.23%
Visit www.ftportfolios.com/etf/EMDM for more recent performance information.
The Fund’s past performance is not a good predictor of the Fund’s future performance. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
KEY FUND STATISTICS (As of September 30, 2024)
Fund net assets $8,299,720
Total number of portfolio holdings 101
Total advisory fee paid $48,470
Portfolio turnover rate 22%
WHAT DID THE FUND INVEST IN? (As of September 30, 2024)
The tables below show the investment makeup of the Fund, representing the percentage of total investments of the Fund.
Top Ten Holdings
Taiwan Semiconductor Manufacturing Co., Ltd. 11.4%
Naspers Ltd., Class N 7.7%
Samsung Electronics Co., Ltd. 5.9%
FirstRand Ltd. 4.9%
Standard Bank Group Ltd. 3.8%
Grupo Mexico S.A.B. de C.V. 3.2%
Capitec Bank Holdings Ltd. 3.1%
Petroleo Brasileiro S.A. 2.9%
Powszechna Kasa Oszczednosci Bank Polski S.A. 2.8%
America Movil S.A.B. de C.V. 2.2%
Sector Allocation
Graphical Representation - Allocation 2 Chart
WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
Visit www.ftportfolios.com/fund-documents/etf/EMDM to view additional information about the Fund such as the prospectus, financial information, Fund holdings and proxy voting information. You may also request this information by contacting us at 1-800-621-1675 or info@ftportfolios.com.
OTHER INFORMATION
“Bloomberg®” and Bloomberg Emerging Market Democracies Index licensed herein (the “Indices”) are service marks of Bloomberg Finance L.P. and its affiliates, including Bloomberg Index Services Limited (“BISL”), the administrator of the Indices (collectively, “Bloomberg”) and have been licensed for use for certain purposes by First Trust Advisors L.P. (the “Licensee”). Bloomberg is not affiliated with the Licensee, and Bloomberg does not approve, endorse, review, or recommend the financial products referenced herein (the “Financial Products”). Bloomberg does not guarantee the timeliness, accurateness, or completeness of any data or information relating to the Indices or the Financial Products.
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First Trust Nasdaq
Lux Digital Health Solutions ETF
EKG | NASDAQ, INC.
ANNUAL SHAREHOLDER REPORT | September 30, 2024
This annual shareholder report contains important information about the First Trust Nasdaq Lux Digital Health Solutions ETF (the “Fund”) for the year of October 1, 2023 to September 30, 2024 (the “Period”). You can find additional information about the Fund at www.ftportfolios.com/fund-documents/etf/EKG. You can also request this information by contacting us at 1-800-621-1675 or info@ftportfolios.com.
WHAT WERE THE FUND COSTS FOR THE LAST YEAR?
(Based on a hypothetical $10,000 investment)
Fund Costs of a $10,000 investment Costs paid as a percentage
of a $10,000 investment
First Trust Nasdaq Lux Digital Health Solutions ETF $72 0.65%
HOW DID THE FUND PERFORM LAST YEAR? WHAT AFFECTED THE FUND’S PERFORMANCE?
The Fund returned 21.01% during the 12 months ended September 30, 2024. The Fund underperformed its benchmark, the S&P Composite 1500® Health Care Index, which returned 21.46% for the same Period.
The Health Care Equipment & Supplies industry received the greatest allocation in the Fund with an average weight of 52.8% and a contribution to the Fund’s return of 14.0%, which was the greatest of any industry. The Health Care Providers and Services industry was the only negatively contributing sector in the Fund with a contribution of -0.3% to the Fund’s return.
FUND PERFORMANCE (March 22, 2022 to September 30, 2024)
The performance line graph below shows the performance of a hypothetical $10,000 initial investment in the Fund over a ten-year period (or for the life of the Fund, if shorter). The subsequent account value as of the end of the Period is listed next to the name of the Fund or index, as applicable. The performance table below shows the average annual total returns of the Fund for the past one-, five-, and ten-year periods, as applicable (or for the life of the Fund, if shorter), as of the end of the Period. Both the line graph and performance table compare the Fund’s performance to an appropriate broad-based index and may compare to additional indices reflecting the market segment(s) in which the Fund invests over the same periods.
Investment Performance of $10,000
Fund Performance - Growth of 10K
Average Annual Total Returns (as of September 30, 2024) 1 Year Since
Inception
(3/22/22)
First Trust Nasdaq Lux Digital Health Solutions ETF 21.01% -6.93%
Nasdaq Lux Health TechTM Index 21.79% -6.33%
Russell 3000® Index 35.19% 10.94%
S&P Composite 1500® Health Care Index 21.46% 6.08%
Visit www.ftportfolios.com/etf/EKG for more recent performance information.
The Fund’s past performance is not a good predictor of the Fund’s future performance. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
KEY FUND STATISTICS (As of September 30, 2024)
Fund net assets $2,557,536
Total number of portfolio holdings 39
Total advisory fee paid $14,346
Portfolio turnover rate 16%
WHAT DID THE FUND INVEST IN? (As of September 30, 2024)
The tables below show the investment makeup of the Fund, representing the percentage of total investments of the Fund.
Top Ten Holdings
Intuitive Surgical, Inc. 7.8%
ResMed, Inc. 7.8%
Veeva Systems, Inc., Class A 7.6%
Dexcom, Inc. 7.6%
IQVIA Holdings, Inc. 7.4%
Insulet Corp. 4.5%
Exact Sciences Corp. 4.3%
Natera, Inc. 4.2%
Align Technology, Inc. 4.2%
Hologic, Inc. 3.9%
Sector Allocation
Graphical Representation - Allocation 2 Chart
WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
Visit www.ftportfolios.com/fund-documents/etf/EKG to view additional information about the Fund such as the prospectus, financial information, Fund holdings and proxy voting information. You may also request this information by contacting us at 1-800-621-1675 or info@ftportfolios.com.
OTHER INFORMATION
Nasdaq® and Nasdaq Lux Health TechTM Index (the “Index”) are registered trademarks and service marks of Nasdaq, Inc. (together with its affiliates hereinafter referred to as the “Corporations”) and are licensed for use by First Trust. The Fund has not been passed on by the Corporations as to its legality or suitability. The Fund is not issued, endorsed, sold or promoted by the Corporations. THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE FUND.
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First Trust Indxx Metaverse ETF
ARVR | NASDAQ, INC.
ANNUAL SHAREHOLDER REPORT | September 30, 2024
This annual shareholder report contains important information about the First Trust Indxx Metaverse ETF (the “Fund”) for the year of October 1, 2023 to September 30, 2024 (the “Period”). You can find additional information about the Fund at www.ftportfolios.com/fund-documents/etf/ARVR. You can also request this information by contacting us at 1-800-621-1675 or info@ftportfolios.com.
WHAT WERE THE FUND COSTS FOR THE LAST YEAR?
(Based on a hypothetical $10,000 investment)
Fund Costs of a $10,000 investment Costs paid as a percentage
of a $10,000 investment
First Trust Indxx Metaverse ETF $81 0.70%
HOW DID THE FUND PERFORM LAST YEAR? WHAT AFFECTED THE FUND’S PERFORMANCE?
The Fund returned 30.01% during the 12 months ended September 30, 2024. The Fund underperformed its benchmark, the MSCI ACWI Index, which returned 31.76% for the same Period.
The Information Technology sector received an allocation of 55.9% and contributed 17.8% to the Fund’s return, the largest of any sector for both allocation and contribution to return. The only negatively contributing sector was the Health Care sector in which the Fund held only one security that caused a -0.8% contribution to the Fund’s overall return. The Fund’s currency exposure had a 1.5% impact on performance.
FUND PERFORMANCE (April 19, 2022 to September 30, 2024)
The performance line graph below shows the performance of a hypothetical $10,000 initial investment in the Fund over a ten-year period (or for the life of the Fund, if shorter). The subsequent account value as of the end of the Period is listed next to the name of the Fund or index, as applicable. The performance table below shows the average annual total returns of the Fund for the past one-, five-, and ten-year periods, as applicable (or for the life of the Fund, if shorter), as of the end of the Period. Both the line graph and performance table compare the Fund’s performance to an appropriate broad-based index and may compare to additional indices reflecting the market segment(s) in which the Fund invests over the same periods.
Investment Performance of $10,000
Fund Performance - Growth of 10K
Average Annual Total Returns (as of September 30, 2024) 1 Year Since
Inception
(4/19/22)
First Trust Indxx Metaverse ETF 30.01% 9.76%
Indxx Metaverse Index 31.31% 10.77%
MSCI ACWI Index 31.76% 10.64%
Visit www.ftportfolios.com/etf/ARVR for more recent performance information.
The Fund’s past performance is not a good predictor of the Fund’s future performance. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
KEY FUND STATISTICS (As of September 30, 2024)
Fund net assets $3,778,151
Total number of portfolio holdings 43
Total advisory fee paid $17,421
Portfolio turnover rate 39%
WHAT DID THE FUND INVEST IN? (As of September 30, 2024)
The tables below show the investment makeup of the Fund, representing the percentage of total investments of the Fund.
Top Ten Holdings
Xiaomi Corp., Class B 4.2%
Zoom Video Communications, Inc., Class A 3.8%
Tencent Holdings Ltd. 3.6%
ROBLOX Corp., Class A 3.5%
Meta Platforms, Inc., Class A 3.4%
Netflix, Inc. 3.3%
NetEase, Inc. 3.3%
Texas Instruments, Inc. 3.2%
Apple, Inc. 3.1%
Take-Two Interactive Software, Inc. 3.1%
Sector Allocation
Graphical Representation - Allocation 2 Chart
WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
Visit www.ftportfolios.com/fund-documents/etf/ARVR to view additional information about the Fund such as the prospectus, financial information, Fund holdings and proxy voting information. You may also request this information by contacting us at 1-800-621-1675 or info@ftportfolios.com.
OTHER INFORMATION
Indxx and Indxx Metaverse Index (“Index”) are trademarks of Indxx, Inc. (“Indxx”) and have been licensed for use for certain purposes by First Trust. The Fund is not sponsored, endorsed, sold or promoted by Indxx, and Indxx makes no representation regarding the advisability of trading in such product. The Index is determined, composed and calculated by Indxx without regard to First Trust or the Fund.
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First Trust Emerging Markets
Human Flourishing ETF
FTHF | NYSE ARCA, INC.
ANNUAL SHAREHOLDER REPORT | September 30, 2024
This annual shareholder report contains important information about the First Trust Emerging Markets Human Flourishing ETF (the “Fund”) for the period of October 30, 2023 (commencement of investment operations) to September 30, 2024 (the “Period”). You can find additional information about the Fund at www.ftportfolios.com/fund-documents/etf/FTHF. You can also request this information by contacting us at 1-800-621-1675 or info@ftportfolios.com.
WHAT WERE THE FUND COSTS FOR THE LAST YEAR?
(Based on a hypothetical $10,000 investment)
Fund Costs of a $10,000 investment Costs paid as a percentage
of a $10,000 investment
First Trust Emerging Markets Human Flourishing ETF $77(1) 0.75%(2)
​(1)
The Fund commenced investment operations on October 30, 2023. Had the Fund been in operation for a complete fiscal year, the cost of a $10,000 investment would have been higher.
​(2)
Annualized.
HOW DID THE FUND PERFORM LAST YEAR? WHAT AFFECTED THE FUND’S PERFORMANCE?
The Fund returned 22.00% from the Fund’s inception date on October 30, 2023 through September 30, 2024. The Fund underperformed its benchmark, the MSCI Emerging Markets Index, which returned 30.20% for the same Period.
Taiwan was the country with the greatest allocation in the Fund with an average weight of 21.0%. The allocation to investments in Taiwan contributed the most of any country to the Fund’s performance with a 9.9% contribution to the Fund’s return. No country had a materially negative return contribution to the Fund’s overall performance. The Fund’s currency exposure had a 1.1% impact on performance.
FUND PERFORMANCE (October 30, 2023 to September 30, 2024)
The performance line graph below shows the performance of a hypothetical $10,000 initial investment in the Fund over a ten-year period (or for the life of the Fund, if shorter). The subsequent account value as of the end of the Period is listed next to the name of the Fund or index, as applicable. The performance table below shows the average annual total returns of the Fund for the past one-, five-, and ten-year periods, as applicable (or for the life of the Fund, if shorter), as of the end of the Period. Both the line graph and performance table compare the Fund’s performance to an appropriate broad-based index and may compare to additional indices reflecting the market segment(s) in which the Fund invests over the same periods.
Investment Performance of $10,000
Fund Performance - Growth of 10K
Average Annual Total Returns (as of September 30, 2024) Since
Inception
(10/30/23)
First Trust Emerging Markets Human Flourishing ETF 22.00%
Emerging Markets Human Flourishing Index 22.94%
MSCI Emerging Markets Index 30.20%
Visit www.ftportfolios.com/etf/FTHF for more recent performance information.
The Fund’s past performance is not a good predictor of the Fund’s future performance. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
KEY FUND STATISTICS (As of September 30, 2024)
Fund net assets $42,823,683
Total number of portfolio holdings 101
Total advisory fee paid $216,974
Portfolio turnover rate 30%
WHAT DID THE FUND INVEST IN? (As of September 30, 2024)
The tables below show the investment makeup of the Fund, representing the percentage of total investments of the Fund.
Top Ten Holdings
Taiwan Semiconductor Manufacturing Co., Ltd. 10.0%
Samsung Electronics Co., Ltd. 6.2%
Itau Unibanco Holding S.A. 4.7%
Petroleo Brasileiro S.A. 4.5%
Wal-Mart de Mexico S.A.B. de C.V. 3.0%
Grupo Financiero Banorte S.A.B. de C.V., Class O 2.7%
FirstRand Ltd. 2.4%
WEG S.A. 2.2%
SM Investments Corp. 2.0%
Standard Bank Group Ltd. 1.9%
Sector Allocation
Graphical Representation - Allocation 2 Chart
WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
Visit www.ftportfolios.com/fund-documents/etf/FTHF to view additional information about the Fund such as the prospectus, financial information, Fund holdings and proxy voting information. You may also request this information by contacting us at 1-800-621-1675 or info@ftportfolios.com.
OTHER INFORMATION
“Bloomberg®” and Emerging Markets Human Flourishing Index licensed herein (the “Indices”) are service marks of Bloomberg Finance L.P. and its affiliates, including Bloomberg Index Services Limited (“BISL”), the administrator of the Indices (collectively, “Bloomberg”) and have been licensed for use for certain purposes by First Trust Advisors L.P. (the “Licensee”). Bloomberg is not affiliated with the Licensee, and Bloomberg does not approve, endorse, review, or recommend the financial products referenced herein (the “Financial Products”). Bloomberg does not guarantee the timeliness, accurateness, or completeness of any data or information relating to the Indices or the Financial Products.
 
 

(b) Not applicable to the Registrant.

Item 2. Code of Ethics.

(a) The First Trust Exchange-Traded Fund II (“Registrant”), as of the end of the period covered by this report, has adopted a code of ethics that applies to the Registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the Registrant or a third party.
(c) There have been no amendments, during the period covered by this report, to a provision of the code of ethics that applies to the Registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the Registrant or a third party, and that relates to any element of the code of ethics description.
(d) The Registrant, during the period covered by this report, has not granted any waivers, including an implicit waiver, from a provision of the code of ethics that applies to the Registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the Registrant or a third party, that relates to one or more of the items set forth in paragraph (b) of this item’s instructions.
(e) Not applicable.
(f) A copy of the code of ethics that applies to the Registrant’s principal executive officer, principal financial officer, principal accounting officer or controller is filed as an exhibit pursuant to Item 13(a)(1).

Item 3. Audit Committee Financial Expert.

As of the end of the period covered by the report, the Registrant’s Board of Trustees has determined that Thomas R. Kadlec and Robert F. Keith are qualified to serve as audit committee financial experts serving on its audit committee and that each of them is “independent,” as defined by Item 3 of Form N-CSR.

Item 4. Principal Accountant Fees and Services.

(a) Audit Fees (Registrant) -- The aggregate fees billed for professional services rendered by the principal accountant for the audit of the Registrant’s annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements were $381,563 for the fiscal year ended 2023 and $406,563 for the fiscal year ended 2024.
(b) Audit-Related Fees (Registrant) -- The aggregate fees billed for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the Registrant’s financial statements and are not reported under paragraph (a) of this Item were $0 for the fiscal year ended 2023 and $0 for the fiscal year ended 2024.

Audit-Related Fees (Investment Advisor) -- The aggregate fees billed for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the Registrant’s financial statements and are not reported under paragraph (a) of this Item were $0 for the fiscal year ended 2023 and $0 for the fiscal year ended 2024.

Audit-Related Fees (Distributor) -- The aggregate fees billed for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the Registrant’s financial statements and are not reported under paragraph (a) of this Item were $0 for the fiscal year ended 2023 and $0 for the fiscal year ended 2024.

(c) Tax Fees (Registrant) -- The aggregate fees billed for professional services rendered by the principal accountant for tax return review and debt instrument tax analysis and reporting were $436,849 for the fiscal year ended 2023 and $288,996 for the fiscal year ended 2024.

Tax Fees (Investment Advisor) -- The aggregate fees billed for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning to the Registrant’s advisor and distributor $0 for the fiscal year ended 2023 and $0 for the fiscal year ended 2024.

Tax Fees (Distributor) -- The aggregate fees billed for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning to the Registrant’s distributor were $0 for the fiscal year ended 2023 and $0 for the fiscal year ended 2024.

These fees were for tax consultation and/or tax return preparation and professional services rendered for PFIC (Passive Foreign Investment Company) Identification Services.

(d) All Other Fees (Registrant) -- The aggregate fees billed for products and services provided by the principal accountant to the Registrant, other than the services reported in paragraphs (a) through (c) of this Item $0 for the fiscal year ended 2023 and $0 for the fiscal year ended 2024.

All Other Fees (Investment Advisor) -- The aggregate fees billed for products and services provided by the principal accountant to the Registrant’s investment advisor, other than the services reported in paragraphs (a) through (c) of this Item were $0 for the fiscal year ended 2023 and $0 for the fiscal year ended 2024.

All Other Fees (Distributor) -- The aggregate fees billed for products and services provided by the principal accountant to the Registrant’s distributor, other than the services reported in paragraphs (a) through (c) of this Item were $0 for the fiscal year ended 2023 and $0 for the fiscal year ended 2024.

(e)(1) Disclose the audit committee’s pre-approval policies and procedures described in paragraph (c) (7) of Rule 2-01 of Regulation S-X.

Pursuant to its charter and its Audit and Non-Audit Services Pre-Approval Policy, the Audit Committee (the “Committee”) is responsible for the pre-approval of all audit services and permitted non-audit services (including the fees and terms thereof) to be performed for the Registrant by its independent auditors. The Chairman of the Committee is authorized to give such pre-approvals on behalf of the Committee up to $25,000 and report any such pre-approval to the full Committee.

The Committee is also responsible for the pre-approval of the independent auditor’s engagements for non-audit services with the Registrant’s advisor (not including a sub-advisor whose role is primarily portfolio management and is sub-contracted or overseen by another investment advisor) and any entity controlling, controlled by or under common control with the investment advisor that provides ongoing services to the Registrant, if the engagement relates directly to the operations and financial reporting of the Registrant, subject to the de minimis exceptions for non-audit services described in Rule 2-01 of Regulation S-X. If the independent auditor has provided non-audit services to the Registrant’s advisor (other than any sub-advisor whose role is primarily portfolio management and is sub-contracted with or overseen by another investment advisor) and any entity controlling, controlled by or under common control with the investment advisor that provides ongoing services to the Registrant that were not pre-approved pursuant to its policies, the Committee will consider whether the provision of such non-audit services is compatible with the auditor’s independence.

(e)(2) The percentage of services described in each of paragraphs (b) through (d) for the Registrant and the Registrant’s investment advisor and distributor of this Item that were approved by the audit committee pursuant to the pre-approval exceptions included in paragraph (c)(7)(i)(C) or paragraph(C)(7)(ii) of Rule 2-01 of Regulation S-X are as follows:

Registrant:   Advisor and Distributor:
(b) 0%    (b) 0%
(c) 0%    (c) 0%
(d) 0%    (d) 0%

(f) The percentage of hours expended on the principal accountant’s engagement to audit the Registrant’s financial statements for the most recent fiscal year that were attributed to work performed by persons other than the principal accountant’s full-time, permanent employees was less than fifty percent.
(g) The aggregate non-audit fees billed by the Registrant’s accountant for services rendered to the Registrant, and rendered to the Registrant’s investment advisor (not including any sub-advisor whose role is primarily portfolio management and is subcontracted with or overseen by another investment advisor), and any entity controlling, controlled by, or under common control with the advisor that provides ongoing services to the Registrant for the fiscal year ended 2023 were $436,849 for the Registrant, $31,000 for the Registrant’s investment advisor and $45,500 for the Registrant’s distributor; and for the fiscal year ended 2024 were $288,996 for the Registrant, $28,600 for the Registrant’s investment advisor and $33,000 for the Registrant’s distributor.
(h) The Registrant’s audit committee of its Board of Trustees has determined that the provision of non-audit services that were rendered to the Registrant’s investment advisor (not including any sub-advisor whose role is primarily portfolio management and is subcontracted with or overseen by another investment advisor), and any entity controlling, controlled by, or under common control with the investment advisor that provides ongoing services to the Registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence.

(i) Not applicable to the Registrant.

(j) Not applicable to the Registrant.

Item 5. Audit Committee of Listed Registrants.

(a) The Registrant has a separately designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934 consisting of all the independent directors of the Registrant. The audit committee of the Registrant is comprised of: Richard E. Erickson, Thomas R. Kadlec, Denise M. Keefe, Robert F. Keith, Niel B. Nielson and Bronwyn Wright.
(b) Not applicable to the Registrant.

Item 6. Investments.

(a) The Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period is included in the Financial Statements and Other Information filed under Item 7(a) of this Form N-CSR.
(b) Not applicable to the Registrant.

Item 7. Financial Statements and Financial Highlights for Open-End Management Investment Companies.

(a) Following is a copy of the annual financial statements required, and for the periods specified, by Regulation S-X.

 
 
 
Annual Financial
Statements and
Other Information
For the Year Ended
September 30, 2024
 
First Trust Exchange-Traded Fund II
Book 1
 
First Trust STOXX® European Select Dividend Index Fund (FDD)
First Trust Alerian Disruptive Technology Real Estate ETF
(DTRE)
First Trust Dow Jones Global Select Dividend Index Fund
(FGD)
First Trust Global Wind Energy ETF (FAN)
First Trust Alerian U.S. NextGen Infrastructure ETF (RBLD)
First Trust NASDAQ® Clean Edge® Smart Grid Infrastructure
Index Fund (GRID)
First Trust Indxx Global Natural Resources Income ETF (FTRI)
First Trust Indxx Global Agriculture ETF (FTAG)
First Trust Indxx NextG ETF (NXTG)
First Trust S-Network Future Vehicles & Technology ETF (CARZ)
First Trust Cloud Computing ETF (SKYY)
First Trust International Equity Opportunities ETF (FPXI)
First Trust Nasdaq Cybersecurity ETF (CIBR)
First Trust IPOX® Europe Equity Opportunities ETF (FPXE)
First Trust Dow Jones International Internet ETF (FDNI)
First Trust Bloomberg Emerging Market Democracies ETF
(EMDM)
Table of Contents 
First Trust Exchange-Traded Fund II
Annual Financial Statements and Other Information
September 30, 2024 
1
3
5
8
11
14
17
20
22
26
29
31
34
36
39
41
44
48
52
59
75
89
91
Performance and Risk Disclosure
There is no assurance that any series of First Trust Exchange-Traded Fund II (the “Trust”) described in this report (each such series is referred to as a “Fund” and collectively, as the “Funds”) will achieve its investment objective. Each Fund is subject to market risk, which is the possibility that the market values of securities owned by the Fund will decline and that the value of the Fund’s shares may therefore be less than what you paid for them. Accordingly, you can lose money by investing in a Fund.
Performance data quoted represents past performance, which is no guarantee of future results, and current performance may be lower or higher than the figures shown. For the most recent month-end performance figures, please visit www.ftportfolios.com or speak with your financial advisor. Investment returns, net asset value and share price will fluctuate and Fund shares, when sold, may be worth more or less than their original cost.
First Trust Advisors L.P., the Funds’ advisor, may also periodically provide additional information on Fund performance on each Fund’s webpage at www.ftportfolios.com.
How to Read This Report
This report contains information that may help you evaluate your investment. It includes details about each Fund and presents data that provides insight into each Fund’s performance and investment approach.
The material risks of investing in each Fund are spelled out in its prospectus, statement of additional information, and other Fund regulatory filings.
First Trust STOXX® European Select Dividend Index Fund (FDD)
Portfolio of Investments
September 30, 2024
 
Shares
Description
Value
COMMON STOCKS (a) (b) — 98.1%
Belgium — 3.7%
111,760
Ageas S.A./N.V. (EUR)
$5,961,529
Denmark — 5.1%
2,403
AP Moller - Maersk A/S,
Class A (DKK)
3,893,430
87,188
Sydbank A/S (DKK)
4,296,547
 
8,189,977
France — 11.8%
79,224
BNP Paribas S.A. (EUR)
5,427,992
295,296
Credit Agricole S.A. (EUR)
4,511,535
359,859
Orange S.A. (EUR)
4,119,942
173,920
Rubis S.C.A. (EUR)
4,747,057
 
18,806,526
Germany — 11.7%
11,596
Allianz SE (EUR)
3,807,892
46,236
Bayerische Motoren Werke AG
(Preference Shares) (EUR)
3,824,049
318,648
K+S AG (EUR)
4,082,639
54,347
Mercedes-Benz Group AG
(EUR)
3,511,215
32,786
Volkswagen AG (Preference
Shares) (EUR)
3,472,940
 
18,698,735
Italy — 5.7%
353,863
Poste Italiane S.p.A.
(EUR) (c) (d)
4,959,242
801,187
Snam S.p.A. (EUR)
4,076,614
 
9,035,856
Netherlands — 16.3%
428,721
ABN AMRO Bank N.V.
(EUR) (c) (d)
7,733,538
100,632
ASR Nederland N.V. (EUR)
4,928,823
411,996
ING Groep N.V. (EUR)
7,463,486
120,719
NN Group N.V. (EUR)
6,017,473
 
26,143,320
Norway — 3.0%
224,899
Aker BP ASA (NOK)
4,820,657
Poland — 3.3%
368,704
ORLEN S.A. (PLN)
5,351,908
Spain — 2.9%
213,124
Endesa S.A. (EUR)
4,657,009
Sweden — 3.8%
531,119
Tele2 AB, Class B (SEK)
6,008,908
Switzerland — 4.3%
37,041
Holcim AG (CHF)
3,613,287
5,358
Zurich Insurance Group AG
(CHF)
3,227,398
 
6,840,685
Shares
Description
Value
 
United Kingdom — 26.5%
843,070
HSBC Holdings PLC (GBP)
$7,542,849
584,671
IG Group Holdings PLC (GBP)
7,195,337
2,102,932
Legal & General Group PLC
(GBP)
6,362,468
1,801,870
NatWest Group PLC (GBP)
8,284,598
85,741
Rio Tinto PLC (GBP)
6,074,329
3,157,969
Taylor Wimpey PLC (GBP)
6,936,833
 
42,396,414
Total Common Stocks
156,911,524
(Cost $144,658,196)
MONEY MARKET FUNDS — 0.0%
98,455
Morgan Stanley Institutional
Liquidity Funds - Treasury
Portfolio - Institutional Class -
4.76% (e)
98,455
(Cost $98,455)
Total Investments — 98.1%
157,009,979
(Cost $144,756,651)
Net Other Assets and
Liabilities — 1.9%
2,961,452
Net Assets — 100.0%
$159,971,431
 
(a)
Portfolio securities are categorized based upon their country
of incorporation, which can be different from the country
categorization of the Fund’s underlying index.
(b)
Securities are issued in U.S. dollars unless otherwise
indicated in the security description.
(c)
This security is exempt from registration upon resale under
Rule 144A of the Securities Act of 1933, as amended (the
“1933 Act”) and may be resold in transactions exempt from
registration, normally to qualified institutional buyers. This
security is not restricted on the foreign exchange where it
trades freely without any additional registration.
(d)
This security may be resold to qualified foreign investors and
foreign institutional buyers under Regulation S of the 1933
Act.
(e)
Rate shown reflects yield as of September 30, 2024.
 
Abbreviations throughout the Portfolio of Investments:
CHF
–  Swiss Franc
DKK
–  Danish Krone
EUR
–  Euro
GBP
–  British Pound Sterling
NOK
–  Norwegian Krone
PLN
–  Polish Zloty
SEK
–  Swedish Krona
USD
–  United States Dollar
 
See Notes to Financial Statements
Page 1
First Trust STOXX® European Select Dividend Index Fund (FDD)
Portfolio of Investments (Continued)
September 30, 2024
Currency Exposure Diversification
% of Total
Investments
EUR
53.0%
GBP
27.0
DKK
5.2
CHF
4.4
SEK
3.8
PLN
3.4
NOK
3.1
USD
0.1
Total
100.0%
Valuation Inputs
A summary of the inputs used to value the Fund’s investments as of September 30, 2024 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements):
 
 
Total
Value at
9/30/2024
Level 1
Quoted
Prices
Level 2
Significant
Observable
Inputs
Level 3
Significant
Unobservable
Inputs
Common Stocks*
$ 156,911,524
$ 156,911,524
$ —
$ —
Money Market
Funds
      98,455
      98,455
 —
 —
Total Investments
$157,009,979
$157,009,979
$—
$—
 
*
See Portfolio of Investments for country breakout.
See Notes to Financial Statements
Page 2
First Trust Alerian Disruptive Technology Real Estate ETF (DTRE)
Portfolio of Investments
September 30, 2024
 
Shares
Description
Value
COMMON STOCKS (a) (b) — 99.7%
Belgium — 1.0%
7,406
Warehouses De Pauw C.V.A.
(EUR)
$197,361
Cayman Islands — 2.0%
244,566
ESR Group Ltd. (HKD) (c) (d)
390,105
Japan — 6.9%
157
Daiwa House REIT Investment
Corp. (JPY)
257,252
711
GLP J-REIT (JPY)
656,460
258
Nippon Prologis REIT, Inc.
(JPY)
441,952
 
1,355,664
Singapore — 7.1%
337,364
Frasers Logistics & Commercial
Trust (SGD) (d)
301,862
111,800
Keppel DC REIT (SGD)
188,762
788,177
Mapletree Logistics Trust (SGD)
895,342
 
1,385,966
United Kingdom — 6.8%
125,978
LondonMetric Property PLC
(GBP)
344,938
63,376
Segro PLC (GBP)
740,546
113,573
Tritax Big Box REIT PLC
(GBP)
241,580
 
1,327,064
United States — 75.9%
5,762
American Tower Corp.
1,340,011
28,536
Americold Realty Trust, Inc.
806,713
11,665
Crown Castle, Inc.
1,383,819
7,569
Digital Realty Trust, Inc.
1,224,891
56,821
DigitalBridge Group, Inc.
802,881
4,245
EastGroup Properties, Inc.
793,051
1,496
Equinix, Inc.
1,327,895
15,320
First Industrial Realty Trust, Inc.
857,614
61,929
LXP Industrial Trust
622,386
9,914
Prologis, Inc.
1,251,940
15,775
Rexford Industrial Realty, Inc.
793,640
5,689
SBA Communications Corp.
1,369,342
20,762
STAG Industrial, Inc.
811,587
11,957
Terreno Realty Corp.
799,086
114,174
Uniti Group, Inc.
643,941
 
14,828,797
Total Common Stocks
19,484,957
(Cost $17,055,145)
Shares
Description
Value
MONEY MARKET FUNDS — 0.2%
47,520
Morgan Stanley Institutional
Liquidity Funds - Treasury
Portfolio - Institutional Class -
4.76% (e)
$47,520
(Cost $47,520)
Total Investments — 99.9%
19,532,477
(Cost $17,102,665)
Net Other Assets and
Liabilities — 0.1%
12,173
Net Assets — 100.0%
$19,544,650
 
(a)
Portfolio securities are categorized based upon their country
of incorporation, which can be different from the country
categorization of the Fund’s underlying index.
(b)
Securities are issued in U.S. dollars unless otherwise
indicated in the security description.
(c)
This security is exempt from registration upon resale under
Rule 144A of the Securities Act of 1933, as amended (the
“1933 Act”) and may be resold in transactions exempt from
registration, normally to qualified institutional buyers. This
security is not restricted on the foreign exchange where it
trades freely without any additional registration.
(d)
This security may be resold to qualified foreign investors and
foreign institutional buyers under Regulation S of the 1933
Act.
(e)
Rate shown reflects yield as of September 30, 2024.
 
Abbreviations throughout the Portfolio of Investments:
EUR
–  Euro
GBP
–  British Pound Sterling
HKD
–  Hong Kong Dollar
JPY
–  Japanese Yen
SGD
–  Singapore Dollar
USD
–  United States Dollar
 
Currency Exposure Diversification
% of Total
Investments
USD
76.2%
SGD
7.1
JPY
6.9
GBP
6.8
HKD
2.0
EUR
1.0
Total
100.0%
See Notes to Financial Statements
Page 3
First Trust Alerian Disruptive Technology Real Estate ETF (DTRE)
Portfolio of Investments (Continued)
September 30, 2024
Valuation Inputs
A summary of the inputs used to value the Fund’s investments as of September 30, 2024 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements):
 
 
Total
Value at
9/30/2024
Level 1
Quoted
Prices
Level 2
Significant
Observable
Inputs
Level 3
Significant
Unobservable
Inputs
Common Stocks*
$ 19,484,957
$ 19,484,957
$ —
$ —
Money Market Funds
     47,520
     47,520
 —
 —
Total Investments
$19,532,477
$19,532,477
$—
$—
 
*
See Portfolio of Investments for country breakout.
See Notes to Financial Statements
Page 4
First Trust Dow Jones Global Select Dividend Index Fund (FGD)
Portfolio of Investments
September 30, 2024
 
Shares
Description
Value
COMMON STOCKS (a) (b) — 99.1%
Australia — 3.9%
1,346,890
Bank of Queensland Ltd. (AUD)
$5,754,627
320,470
Fortescue Ltd. (AUD)
4,581,783
1,113,991
Harvey Norman Holdings Ltd.
(AUD)
3,812,268
1,026,295
IGO Ltd. (AUD)
4,157,827
327,090
Super Retail Group Ltd. (AUD)
4,108,835
 
22,415,340
Austria — 0.9%
121,856
OMV AG (EUR)
5,203,313
Belgium — 1.3%
136,712
Ageas S.A./N.V. (EUR)
7,292,524
Bermuda — 0.8%
687,123
CK Infrastructure Holdings Ltd.
(HKD)
4,702,296
Canada — 14.7%
2,015,067
B2Gold Corp. (CAD)
6,227,942
102,255
Bank of Nova Scotia (The)
(CAD)
5,571,497
156,044
BCE, Inc. (CAD)
5,425,109
1,413,904
Birchcliff Energy Ltd. (CAD)
5,959,003
92,732
Canadian Imperial Bank of
Commerce (CAD)
5,688,230
196,895
Canadian Utilities Ltd., Class A
(CAD)
5,227,919
126,653
Great-West Lifeco, Inc. (CAD)
4,319,004
180,680
IGM Financial, Inc. (CAD)
5,421,268
273,662
Labrador Iron Ore Royalty Corp.
(CAD)
6,507,427
260,503
Laurentian Bank of Canada
(CAD)
5,250,702
149,375
Manulife Financial Corp. (CAD)
4,414,595
695,613
Peyto Exploration &
Development Corp. (CAD)
7,920,766
141,165
Power Corp. of Canada (CAD)
4,452,733
135,200
TC Energy Corp. (CAD)
6,426,861
266,433
TELUS Corp. (CAD)
4,469,936
 
83,282,992
Cayman Islands — 1.0%
956,877
CK Hutchison Holdings Ltd.
(HKD)
5,502,087
Denmark — 2.4%
2,556
AP Moller - Maersk A/S,
Class A (DKK)
4,141,327
229,091
D/S Norden A/S (DKK)
9,524,148
 
13,665,475
Finland — 1.8%
608,150
Fortum Oyj (EUR)
10,015,672
Shares
Description
Value
 
France — 1.9%
1,010,288
Ayvens S.A. (EUR) (c) (d)
$7,124,366
56,737
TotalEnergies SE (EUR)
3,694,679
 
10,819,045
Germany — 8.4%
12,657
Allianz SE (EUR)
4,156,303
105,946
BASF SE (EUR)
5,608,351
57,978
Bayerische Motoren Werke AG
(Preference Shares) (EUR)
4,795,197
195,622
Freenet AG (EUR)
5,818,467
102,310
Hapag-Lloyd AG (EUR) (c) (d)
18,540,734
71,696
Mercedes-Benz Group AG
(EUR)
4,632,088
39,657
Volkswagen AG (Preference
Shares) (EUR)
4,200,768
 
47,751,908
Hong Kong — 6.1%
2,039,193
BOC Hong Kong Holdings Ltd.
(HKD)
6,531,629
2,100,759
Henderson Land Development
Co., Ltd. (HKD)
6,701,805
2,981,580
New World Development Co.,
Ltd. (HKD)
3,701,158
13,558,188
PCCW Ltd. (HKD)
7,447,206
4,889,500
Sino Land Co., Ltd. (HKD)
5,365,094
2,370,896
Swire Properties Ltd. (HKD)
4,873,636
 
34,620,528
Israel — 0.6%
802,098
ICL Group Ltd. (ILS)
3,416,754
Italy — 3.4%
2,209,794
A2A S.p.A. (EUR)
5,101,700
126,234
Azimut Holding S.p.A. (EUR)
3,257,198
315,453
Eni S.p.A. (EUR)
4,804,395
437,503
Poste Italiane S.p.A.
(EUR) (c) (d)
6,131,422
 
19,294,715
Japan — 0.7%
143,470
Japan Tobacco, Inc. (JPY)
4,171,586
Jersey — 0.8%
122,649
Janus Henderson Group PLC
4,669,247
Luxembourg — 1.6%
158,628
APERAM S.A. (EUR)
4,968,879
752,491
B&M European Value Retail
S.A. (GBP)
4,177,096
 
9,145,975
Netherlands — 3.8%
101,907
ASR Nederland N.V. (EUR)
4,991,271
38,273
LyondellBasell Industries N.V.,
Class A
3,670,381
See Notes to Financial Statements
Page 5
First Trust Dow Jones Global Select Dividend Index Fund (FGD)
Portfolio of Investments (Continued)
September 30, 2024
Shares
Description
Value
COMMON STOCKS (a) (b) (Continued)
Netherlands (Continued)
138,927
NN Group N.V. (EUR)
$6,925,086
324,851
SBM Offshore N.V. (EUR)
5,926,763
 
21,513,501
New Zealand — 0.5%
1,447,702
Spark New Zealand Ltd. (NZD)
2,786,766
South Korea — 10.5%
849,120
BNK Financial Group, Inc.
(KRW)
5,869,882
54,506
DB Insurance Co., Ltd. (KRW)
4,680,755
649,716
DGB Financial Group, Inc.
(KRW)
4,019,425
108,165
Hana Financial Group, Inc.
(KRW)
4,863,579
44,584
Hyundai Motor Co. (Preference
Shares) (KRW)
5,979,991
505,776
Industrial Bank of Korea (KRW)
5,403,143
71,480
KB Financial Group, Inc.
(KRW)
4,422,063
61,262
KT&G Corp. (KRW)
5,101,653
615,546
LG Uplus Corp. (KRW)
4,617,654
17,819
Samsung Fire & Marine
Insurance Co., Ltd. (KRW)
4,694,231
129,900
Samsung Securities Co., Ltd.
(KRW)
4,326,027
460,022
Woori Financial Group, Inc.
(KRW)
5,452,582
 
59,430,985
Spain — 10.4%
96,198
ACS Actividades de
Construccion y Servicios S.A.
(EUR)
4,441,802
921,653
Bankinter S.A. (EUR)
8,133,651
1,618,254
CaixaBank S.A. (EUR)
9,662,508
357,697
Enagas S.A. (EUR)
5,486,798
188,511
Logista Integral S.A. (EUR)
5,678,308
2,595,033
Mapfre S.A. (EUR)
6,909,689
189,851
Naturgy Energy Group S.A.
(EUR)
4,907,152
319,040
Redeia Corp. S.A. (EUR)
6,204,295
1,500,709
Telefonica S.A. (EUR)
7,343,593
 
58,767,796
Sweden — 1.5%
2,551,117
Telia Co., AB (SEK)
8,249,303
Switzerland — 2.4%
25,151
Helvetia Holding AG (CHF)
4,338,685
34,273
Swiss Re AG (CHF)
4,725,774
7,515
Zurich Insurance Group AG
(CHF)
4,526,670
 
13,591,129
Shares
Description
Value
 
United Kingdom — 7.6%
3,365,806
abrdn PLC (GBP)
$7,350,621
244,167
British American Tobacco PLC
(GBP)
8,892,214
537,933
IG Group Holdings PLC (GBP)
6,620,149
1,997,505
Legal & General Group PLC
(GBP)
6,043,496
1,222,974
Phoenix Group Holdings PLC
(GBP)
9,148,147
67,826
Rio Tinto PLC (GBP)
4,805,139
 
42,859,766
United States — 12.1%
175,843
Altria Group, Inc.
8,975,027
284,933
AT&T, Inc.
6,268,526
203,044
First Interstate BancSystem, Inc.,
Class A
6,229,390
191,206
Kohl’s Corp.
4,034,446
100,355
Lazard, Inc.
5,055,885
442,526
Northwest Bancshares, Inc.
5,920,998
135,478
OneMain Holdings, Inc.
6,376,949
33,155
Prudential Financial, Inc.
4,015,070
290,026
Sitio Royalties Corp., Class A
6,044,142
99,581
Universal Corp.
5,288,747
121,037
Verizon Communications, Inc.
5,435,772
413,228
Western Union (The) Co.
4,929,810
 
68,574,762
Total Common Stocks
561,743,465
(Cost $532,326,400)
MONEY MARKET FUNDS — 0.0%
47,577
Morgan Stanley Institutional
Liquidity Funds - Treasury
Portfolio - Institutional Class -
4.76% (e)
47,577
(Cost $47,577)
Total Investments — 99.1%
561,791,042
(Cost $532,373,977)
Net Other Assets and
Liabilities — 0.9%
4,952,083
Net Assets — 100.0%
$566,743,125
 
(a)
Portfolio securities are categorized based upon their country
of incorporation, which can be different from the country
categorization of the Fund’s underlying index.
(b)
Securities are issued in U.S. dollars unless otherwise
indicated in the security description.
(c)
This security is exempt from registration upon resale under
Rule 144A of the Securities Act of 1933, as amended (the
“1933 Act”) and may be resold in transactions exempt from
registration, normally to qualified institutional buyers. This
security is not restricted on the foreign exchange where it
trades freely without any additional registration.
See Notes to Financial Statements
Page 6
First Trust Dow Jones Global Select Dividend Index Fund (FGD)
Portfolio of Investments (Continued)
September 30, 2024
(d)
This security may be resold to qualified foreign investors and
foreign institutional buyers under Regulation S of the 1933
Act.
(e)
Rate shown reflects yield as of September 30, 2024.
 
Abbreviations throughout the Portfolio of Investments:
AUD
–  Australian Dollar
CAD
–  Canadian Dollar
CHF
–  Swiss Franc
DKK
–  Danish Krone
EUR
–  Euro
GBP
–  British Pound Sterling
HKD
–  Hong Kong Dollar
ILS
–  Israeli Shekel
JPY
–  Japanese Yen
KRW
–  South Korean Won
NZD
–  New Zealand Dollar
SEK
–  Swedish Krona
USD
–  United States Dollar
 
Currency Exposure Diversification
% of Total
Investments
EUR
32.4%
CAD
14.8
USD
13.7
KRW
10.6
GBP
8.4
HKD
8.0
AUD
4.0
DKK
2.4
CHF
2.4
SEK
1.5
JPY
0.7
ILS
0.6
NZD
0.5
Total
100.0%
Valuation Inputs
A summary of the inputs used to value the Fund’s investments as of September 30, 2024 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements):
 
 
Total
Value at
9/30/2024
Level 1
Quoted
Prices
Level 2
Significant
Observable
Inputs
Level 3
Significant
Unobservable
Inputs
Common Stocks*
$ 561,743,465
$ 561,743,465
$ —
$ —
Money Market
Funds
      47,577
      47,577
 —
 —
Total Investments
$561,791,042
$561,791,042
$—
$—
 
*
See Portfolio of Investments for country breakout.
See Notes to Financial Statements
Page 7
First Trust Global Wind Energy ETF (FAN)
Portfolio of Investments
September 30, 2024
 
Shares
Description
Value
COMMON STOCKS (a) (b) — 99.9%
Bermuda — 0.6%
16,336,589
Concord New Energy Group
Ltd. (HKD)
$1,197,843
Brazil — 0.5%
719,772
Serena Energia S.A. (BRL) (c)
1,078,132
Canada — 11.6%
262,812
Boralex, Inc., Class A (CAD)
6,991,738
489,711
Innergex Renewable Energy, Inc.
(CAD) (d)
3,791,101
697,679
Northland Power, Inc. (CAD) (d)
12,035,085
 
22,817,924
China — 5.9%
6,019,441
China Datang Corp. Renewable
Power Co., Ltd., Class H
(HKD) (d)
1,657,043
8,384,618
China Longyuan Power Group
Corp., Ltd., Class H (HKD)
7,603,897
1,418,373
China Suntien Green Energy
Corp., Ltd., Class H (HKD)
665,959
2,327,431
Goldwind Science &
Technology Co., Ltd., Class H
(HKD)
1,754,439
 
11,681,338
Denmark — 19.0%
876,415
Cadeler A/S (NOK) (c)
6,145,648
254,907
Orsted A/S (DKK) (c) (e) (f)
16,946,726
642,779
Vestas Wind Systems A/S
(DKK) (c)
14,191,617
 
37,283,991
France — 3.2%
209,488
Engie S.A. (EUR)
3,617,973
60,277
Neoen S.A. (EUR) (e) (f)
2,616,801
 
6,234,774
Germany — 8.6%
18,480
Energiekontor AG (EUR)
1,172,550
377,045
Nordex SE (EUR) (c)
5,842,340
87,531
PNE AG (EUR) (d)
1,155,582
102,272
RWE AG (EUR)
3,720,431
41,954
SGL Carbon SE (EUR) (c) (d)
251,252
128,105
Siemens Energy AG (EUR) (c)
4,715,793
 
16,857,948
Greece — 1.8%
159,903
Terna Energy S.A. (EUR)
3,472,708
Israel — 0.7%
169,434
Energix-Renewable Energies
Ltd. (ILS)
612,669
48,769
Enlight Renewable Energy Ltd.
(ILS) (c)
818,159
 
1,430,828
Shares
Description
Value
 
Italy — 6.3%
486,181
Enel S.p.A. (EUR)
$3,883,062
167,338
ERG S.p.A. (EUR)
4,586,032
52,636
Prysmian S.p.A. (EUR)
3,820,189
 
12,289,283
Japan — 4.2%
150,500
Hitachi Ltd. (JPY)
3,959,231
716,810
Toray Industries, Inc. (JPY)
4,205,352
 
8,164,583
Netherlands — 0.9%
75,195
Fugro N.V. (EUR)
1,710,899
Norway — 0.7%
53,746
Bonheur ASA (NOK)
1,359,827
South Korea — 2.0%
43,485
CS Bearing Co., Ltd. (KRW) (c)
209,494
69,785
CS Wind Corp. (KRW)
3,682,163
24,494
Dongkuk Structures &
Construction Co., Ltd.
(KRW) (c)
53,757
 
3,945,414
Spain — 11.5%
21,163
Acciona S.A. (EUR)
3,003,598
893,440
EDP Renovaveis S.A. (EUR)
15,624,136
260,307
Iberdrola S.A. (EUR)
4,024,784
 
22,652,518
Sweden — 2.2%
490,313
Orron Energy AB (SEK) (c) (d)
400,522
194,739
SKF AB, Class B (SEK)
3,873,361
 
4,273,883
Switzerland — 1.5%
16,748
BKW AG (CHF)
3,035,556
Taiwan — 2.4%
680,171
Century Iron & Steel Industrial
Co., Ltd. (TWD)
4,771,395
Turkey — 0.2%
487,407
Galata Wind Enerji A/S (TRY)
353,752
United Kingdom — 0.8%
264,572
ReNew Energy Global PLC,
Class A (c)
1,664,158
United States — 15.3%
63,392
Alliant Energy Corp.
3,847,260
28,891
American Superconductor
Corp. (c)
681,828
35,967
Arcosa, Inc.
3,408,233
61,778
Clearway Energy, Inc., Class C
1,895,349
18,378
GE Vernova, Inc. (c)
4,686,022
58,365
Hexcel Corp.
3,608,708
45,881
NextEra Energy, Inc.
3,878,321
21,892
Owens Corning
3,864,376
See Notes to Financial Statements
Page 8
First Trust Global Wind Energy ETF (FAN)
Portfolio of Investments (Continued)
September 30, 2024
Shares
Description
Value
COMMON STOCKS (a) (b) (Continued)
United States (Continued)
43,699
Timken (The) Co.
$3,683,389
127,336
TPI Composites, Inc. (c) (d)
579,379
 
30,132,865
Total Common Stocks
196,409,619
(Cost $224,831,967)
 
Principal
Value
Description
Value
REPURCHASE AGREEMENTS — 9.4%
$9,411,656
Bank of America Corp.,
4.86% (g), dated 09/30/24,
due 10/01/24, with a maturity
value of $9,412,927.
Collateralized by
U.S. Treasury Securities,
interest rates of 0.00% to
4.25%, due 11/15/27 to
08/15/54. The value of the
collateral including accrued
interest is $9,599,889. (h)
9,411,656
9,042,572
JPMorgan Chase & Co.,
4.87% (g), dated 09/30/24,
due 10/01/24, with a maturity
value of $9,043,795.
Collateralized by
U.S. Treasury Securities,
interest rates of 3.13% to
4.38%, due 11/30/29 to
02/15/43. The value of the
collateral including accrued
interest is $9,223,424. (h)
9,042,572
Total Repurchase Agreements
18,454,228
(Cost $18,454,228)
Total Investments — 109.3%
214,863,847
(Cost $243,286,195)
Net Other Assets and
Liabilities — (9.3)%
(18,323,860
)
Net Assets — 100.0%
$196,539,987
 
(a)
Portfolio securities are categorized based upon their country
of incorporation, which can be different from the country
categorization of the Fund’s underlying index.
(b)
Securities are issued in U.S. dollars unless otherwise
indicated in the security description.
(c)
Non-income producing security.
(d)
All or a portion of this security is on loan (see Note 2E -
Securities Lending in the Notes to Financial Statements). The
remaining contractual maturity of all of the securities lending
transactions is overnight and continuous. The aggregate
value of such securities, including those sold and pending
settlement, is $17,373,109 and the total value of the collateral
held by the Fund is $18,454,228.
(e)
This security is exempt from registration upon resale under
Rule 144A of the Securities Act of 1933, as amended (the
“1933 Act”) and may be resold in transactions exempt from
registration, normally to qualified institutional buyers. This
security is not restricted on the foreign exchange where it
trades freely without any additional registration.
(f)
This security may be resold to qualified foreign investors and
foreign institutional buyers under Regulation S of the 1933
Act.
(g)
Rate shown reflects yield as of September 30, 2024.
(h)
This security serves as collateral for securities on loan.
 
Abbreviations throughout the Portfolio of Investments:
BRL
–  Brazilian Real
CAD
–  Canadian Dollar
CHF
–  Swiss Franc
DKK
–  Danish Krone
EUR
–  Euro
HKD
–  Hong Kong Dollar
ILS
–  Israeli Shekel
JPY
–  Japanese Yen
KRW
–  South Korean Won
NOK
–  Norwegian Krone
SEK
–  Swedish Krona
TRY
–  Turkish Lira
TWD
–  New Taiwan Dollar
USD
–  United States Dollar
 
Currency Exposure Diversification
% of Total
Investments
EUR
29.4%
USD
23.4
DKK
14.5
CAD
10.6
HKD
6.0
JPY
3.8
NOK
3.5
TWD
2.2
SEK
2.0
KRW
1.8
CHF
1.4
ILS
0.7
BRL
0.5
TRY
0.2
Total
100.0%
See Notes to Financial Statements
Page 9
First Trust Global Wind Energy ETF (FAN)
Portfolio of Investments (Continued)
September 30, 2024
Valuation Inputs
A summary of the inputs used to value the Fund’s investments as of September 30, 2024 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements):
 
 
Total
Value at
9/30/2024
Level 1
Quoted
Prices
Level 2
Significant
Observable
Inputs
Level 3
Significant
Unobservable
Inputs
Common Stocks*
$ 196,409,619
$ 196,409,619
$         —
$ —
Repurchase
Agreements
  18,454,228
          —
 18,454,228
 —
Total Investments
$214,863,847
$196,409,619
$18,454,228
$—
 
*
See Portfolio of Investments for country breakout.
Offsetting Assets and Liabilities
Offsetting assets and liabilities requires entities to disclose both gross and net information about instruments and transactions eligible for offset, and to disclose instruments and transactions subject to master netting or similar agreements (see Note 2C - Offsetting on the Statements of Assets and Liabilities in the Notes to Financial Statements).
The Fund’s loaned securities were all subject to an enforceable Securities Lending Agency Agreement. Securities lent in accordance with the Securities Lending Agency Agreement on a gross basis were as follows:
 
Securities Lending Agency Agreement
Total gross amount presented on the Statements
of Assets and Liabilities(1)
$17,373,109
Non-cash Collateral(2)
(17,373,109
)
Net Amount
$—
 
(1)
The amount presented on the Statements of Assets and
Liabilities, which is included in “Investments, at value,” is not
offset and is shown on a gross basis.
(2)
At September 30, 2024, the value of the collateral received
from each borrower exceeded the value of the related
securities loaned. This amount is disclosed on the Portfolio of
Investments.
The Fund’s investments in repurchase agreements were all subject to an enforceable Master Repurchase Agreement. Repurchase Agreements on a gross basis were as follows:
 
Repurchase Agreements
Total gross amount presented on the Statements
of Assets and Liabilities(3)
$18,454,228
Non-cash Collateral(4)
(18,454,228
)
Net Amount
$—
 
(3)
The amount is included in “Investments, at value” on the
Statements of Assets and Liabilities.
(4)
At September 30, 2024, the value of the collateral received
from each seller exceeded the value of the repurchase
agreements.
See Notes to Financial Statements
Page 10
First Trust Alerian U.S. NextGen Infrastructure ETF (RBLD)
Portfolio of Investments
September 30, 2024
 
Shares
Description
Value
COMMON STOCKS — 99.9%
Building Products — 9.2%
570
Advanced Drainage Systems,
Inc.
$89,581
631
Builders FirstSource, Inc. (a)
122,326
218
Carlisle Cos., Inc.
98,046
1,396
Carrier Global Corp.
112,364
1,330
Johnson Controls
International PLC
103,221
166
Lennox International, Inc.
100,312
1,339
Masco Corp.
112,396
529
Owens Corning
93,379
269
Trane Technologies PLC
104,568
 
936,193
Construction & Engineering
— 4.3%
1,076
AECOM
111,118
291
Comfort Systems USA, Inc.
113,592
247
EMCOR Group, Inc.
106,341
351
Quanta Services, Inc.
104,651
 
435,702
Construction Materials —
1.8%
167
Martin Marietta Materials, Inc.
89,888
364
Vulcan Materials Co.
91,156
 
181,044
Electric Utilities — 16.8%
1,739
Alliant Energy Corp.
105,540
1,021
American Electric Power Co.,
Inc.
104,755
428
Constellation Energy Corp.
111,289
888
Duke Energy Corp.
102,386
1,248
Edison International
108,688
855
Entergy Corp.
112,526
1,697
Evergy, Inc.
105,231
1,561
Eversource Energy
106,226
2,625
Exelon Corp.
106,444
2,349
FirstEnergy Corp.
104,178
1,241
NextEra Energy, Inc.
104,902
1,164
NRG Energy, Inc.
106,040
5,162
PG&E Corp.
102,053
3,286
PPL Corp.
108,701
1,161
Southern (The) Co.
104,699
1,714
Xcel Energy, Inc.
111,924
 
1,705,582
Electrical Equipment — 7.7%
548
AMETEK, Inc.
94,097
282
Eaton Corp. PLC
93,466
812
Emerson Electric Co.
88,808
525
GE Vernova, Inc. (a)
133,865
245
Hubbell, Inc.
104,946
Shares
Description
Value
 
Electrical Equipment
(Continued)
1,177
nVent Electric PLC
$82,696
338
Rockwell Automation, Inc.
90,739
998
Vertiv Holdings Co., Class A
99,291
 
787,908
Energy Equipment & Services
— 2.6%
2,687
Baker Hughes Co.
97,135
2,758
Halliburton Co.
80,120
2,007
Schlumberger N.V.
84,194
 
261,449
Gas Utilities — 1.1%
773
Atmos Energy Corp.
107,223
Ground Transportation —
2.9%
2,748
CSX Corp.
94,889
420
Norfolk Southern Corp.
104,370
405
Union Pacific Corp.
99,824
 
299,083
Independent Power and
Renewable Electricity
Producers — 2.2%
4,971
AES (The) Corp.
99,718
1,012
Vistra Corp.
119,963
 
219,681
Industrial Conglomerates —
2.1%
898
3M Co.
122,756
432
Honeywell International, Inc.
89,299
 
212,055
IT Services — 6.3%
985
Akamai Technologies, Inc. (a)
99,436
1,130
Cloudflare, Inc., Class A (a)
91,406
652
GoDaddy, Inc., Class A (a)
102,220
373
MongoDB, Inc. (a)
100,840
994
Okta, Inc. (a)
73,894
671
Snowflake, Inc., Class A (a)
77,071
530
VeriSign, Inc. (a)
100,679
 
645,546
Machinery — 18.0%
280
Caterpillar, Inc.
109,514
331
Cummins, Inc.
107,174
509
Dover Corp.
97,596
1,237
Fortive Corp.
97,636
1,154
Graco, Inc.
100,986
456
IDEX Corp.
97,812
386
Illinois Tool Works, Inc.
101,159
971
Ingersoll Rand, Inc.
95,313
478
Lincoln Electric Holdings, Inc.
91,786
394
Nordson Corp.
103,476
See Notes to Financial Statements
Page 11
First Trust Alerian U.S. NextGen Infrastructure ETF (RBLD)
Portfolio of Investments (Continued)
September 30, 2024
Shares
Description
Value
COMMON STOCKS (Continued)
Machinery (Continued)
934
Otis Worldwide Corp.
$97,080
898
PACCAR, Inc.
88,615
176
Parker-Hannifin Corp.
111,200
1,181
Pentair PLC
115,490
346
Snap-on, Inc.
100,240
1,067
Stanley Black & Decker, Inc.
117,509
570
Westinghouse Air Brake
Technologies Corp.
103,609
673
Xylem, Inc.
90,875
 
1,827,070
Metals & Mining — 3.5%
1,800
Freeport-McMoRan, Inc.
89,856
583
Nucor Corp.
87,648
317
Reliance, Inc.
91,680
714
Steel Dynamics, Inc.
90,021
 
359,205
Multi-Utilities — 10.4%
1,268
Ameren Corp.
110,899
3,124
CenterPoint Energy, Inc.
91,908
1,528
CMS Energy Corp.
107,923
1,014
Consolidated Edison, Inc.
105,588
1,796
Dominion Energy, Inc.
103,791
819
DTE Energy Co.
105,168
3,122
NiSource, Inc.
108,177
1,212
Public Service Enterprise Group,
Inc.
108,122
1,204
Sempra
100,691
1,154
WEC Energy Group, Inc.
110,992
 
1,053,259
Oil, Gas & Consumable Fuels
— 4.9%
526
Cheniere Energy, Inc.
94,596
4,599
Kinder Morgan, Inc.
101,592
1,118
ONEOK, Inc.
101,883
694
Targa Resources Corp.
102,719
2,173
Williams (The) Cos., Inc.
99,197
 
499,987
Specialized REITs — 5.1%
447
American Tower Corp.
103,954
906
Crown Castle, Inc.
107,479
588
Digital Realty Trust, Inc.
95,156
116
Equinix, Inc.
102,965
442
SBA Communications Corp.
106,390
 
515,944
Water Utilities — 1.0%
681
American Water Works Co., Inc.
99,589
Total Common Stocks
10,146,520
(Cost $7,751,987)
Shares
Description
Value
WARRANTS (b) — 0.0%
Construction & Engineering
— 0.0%
298
Webuild S.p.A., expiring 8/31/30
(EUR) (a) (c) (d) (e)
$3
(Cost $0)
MONEY MARKET FUNDS — 0.1%
12,299
Dreyfus Government Cash
Management Fund,
Institutional Shares -
4.80% (f)
12,299
(Cost $12,299)
Total Investments — 100.0%
10,158,822
(Cost $7,764,286)
Net Other Assets and
Liabilities — 0.0%
1,520
Net Assets — 100.0%
$10,160,342
 
(a)
Non-income producing security.
(b)
Securities are issued in U.S. dollars unless otherwise
indicated in the security description.
(c)
Pursuant to procedures adopted by the Trust’s Board of
Trustees, this security has been determined to be illiquid by
First Trust Advisors L.P., the Fund’s advisor.
(d)
This security is fair valued by the Advisor’s Pricing
Committee in accordance with procedures approved by the
Trust’s Board of Trustees, and in accordance with provisions
of the Investment Company Act of 1940 and rules
thereunder, as amended. At September 30, 2024, securities
noted as such are valued at $3 or 0.0% of net assets.
(e)
This security’s value was determined using significant
unobservable inputs (see Note 2A - Portfolio Valuation in the
Notes to Financial Statements).
(f)
Rate shown reflects yield as of September 30, 2024.
 
Abbreviations throughout the Portfolio of Investments:
EUR
–  Euro
REITs
–  Real Estate Investment Trusts
See Notes to Financial Statements
Page 12
First Trust Alerian U.S. NextGen Infrastructure ETF (RBLD)
Portfolio of Investments (Continued)
September 30, 2024
Valuation Inputs
A summary of the inputs used to value the Fund’s investments as of September 30, 2024 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements):
 
 
Total
Value at
9/30/2024
Level 1
Quoted
Prices
Level 2
Significant
Observable
Inputs
Level 3
Significant
Unobservable
Inputs
Common Stocks*
$ 10,146,520
$ 10,146,520
$ —
$ —
Warrants*
          3
         —
 —
 3
Money Market Funds
     12,299
     12,299
 —
 —
Total Investments
$10,158,822
$10,158,819
$—
$3
 
*
See Portfolio of Investments for industry breakout.
Level 3 investments are fair valued by the Advisor’s Pricing Committee and are footnoted in the Portfolio of Investments. All Level 3 values are based on unobservable inputs.
See Notes to Financial Statements
Page 13
First Trust NASDAQ® Clean Edge® Smart Grid Infrastructure Index Fund (GRID)
Portfolio of Investments
September 30, 2024
 
Shares
Description
Value
COMMON STOCKS (a) (b) — 99.9%
Austria — 0.1%
15,818
Verbund AG (EUR) (c)
$1,311,784
Belgium — 0.7%
104,003
Elia Group S.A./N.V. (EUR)
11,889,696
Brazil — 2.9%
974,709
Alupar Investimento S.A. (BRL)
5,466,043
6,441
Centrais Eletricas Brasileiras
S.A., ADR
46,568
591,850
Cia de Transmissao de Energia
Eletrica Paulista (Preference
Shares) (BRL)
2,640,005
2,943,725
Cia Paranaense de Energia -
Copel, Class B (Preference
Shares) (BRL)
5,506,279
1,071,308
Energisa S.A. (BRL)
8,808,100
3,758,218
Equatorial Energia S.A. (BRL)
22,420,854
1,059,434
Transmissora Alianca de Energia
Eletrica S.A. (BRL)
6,658,777
278,652
WEG S.A. (BRL)
2,782,070
 
54,328,696
Canada — 2.2%
65,749
Fortis, Inc. (CAD)
2,987,376
25,543
Hammond Power Solutions
(CAD) (c)
2,669,413
977,007
Hydro One Ltd. (CAD) (d) (e)
33,866,012
5,692
Stella-Jones, Inc. (CAD)
373,687
 
39,896,488
Cayman Islands — 0.1%
1,406,019
Wasion Group Holdings, Ltd.
(HKD)
1,162,963
China — 0.3%
145,997
BYD Co., Ltd., Class H (HKD)
5,329,914
Denmark — 0.8%
156,941
NKT A/S (DKK) (f)
14,823,332
France — 9.7%
226,341
Engie S.A. (EUR)
3,909,034
88,805
Nexans S.A. (EUR)
13,009,115
556,526
Schneider Electric SE (EUR)
146,325,420
420,890
SPIE S.A. (EUR)
16,070,047
 
179,313,616
Germany — 1.6%
280,556
E.ON SE (EUR)
4,170,786
161,254
Infineon Technologies AG
(EUR)
5,647,076
92,413
Siemens AG (EUR)
18,654,392
53,354
SMA Solar Technology AG
(EUR)
1,072,010
 
29,544,264
Ireland — 18.0%
461,015
Eaton Corp. PLC
152,798,811
Shares
Description
Value
 
Ireland (Continued)
1,924,851
Johnson Controls
International PLC
$149,387,686
439,595
nVent Electric PLC
30,885,945
 
333,072,442
Italy — 6.1%
958,399
Enel S.p.A. (EUR)
7,654,603
909,372
Prysmian S.p.A. (EUR)
65,999,949
4,326,871
Terna-Rete Elettrica Nazionale
(EUR)
38,955,566
 
112,610,118
Japan — 1.8%
74,400
Daihen Corp. (JPY)
3,375,112
12,735
GS Yuasa Corp. (JPY)
252,308
615,420
Hitachi Ltd. (JPY)
16,189,967
131,999
Meidensha Corp. (JPY)
3,072,093
33,025
NGK Insulators Ltd. (JPY)
429,917
134,000
Osaki Electric (JPY)
688,064
325,670
Panasonic Holdings Corp. (JPY)
2,816,544
235,900
Renesas Electronics Corp. (JPY)
3,412,323
105,800
Sumitomo Electric Industries
Ltd. (JPY)
1,689,782
32,400
Takaoka Toko Co., Ltd. (JPY)
405,324
 
32,331,434
Jersey — 3.0%
776,416
Aptiv PLC (f)
55,909,716
Netherlands — 0.5%
66,888
Alfen N.V. (EUR) (c) (d) (e) (f)
979,103
28,750
NXP Semiconductors N.V.
6,900,287
10,124
STMicroelectronics N.V.
300,987
 
8,180,377
Portugal — 0.2%
333,313
EDP S.A. (EUR)
1,521,957
1,087,446
REN - Redes Energeticas
Nacionais SGPS S.A. (EUR)
2,923,339
 
4,445,296
South Korea — 3.7%
60,974
HD Hyundai Electric Co., Ltd.
(KRW)
15,363,564
416
Hyosung Heavy Industries Corp.
(KRW)
110,863
73,322
Iljin Electric Co., Ltd. (KRW)
1,244,742
37,826
LS Electric Co., Ltd. (KRW)
4,723,550
154,371
Samsung SDI Co., Ltd. (KRW)
44,681,061
303,887
Taihan Electric Wire Co., Ltd.
(KRW) (f)
2,795,565
 
68,919,345
Spain — 1.9%
726,700
Iberdrola S.A. (EUR)
11,236,002
1,247,975
Redeia Corp. S.A. (EUR)
24,269,075
 
35,505,077
See Notes to Financial Statements
Page 14
First Trust NASDAQ® Clean Edge® Smart Grid Infrastructure Index Fund (GRID)
Portfolio of Investments (Continued)
September 30, 2024
Shares
Description
Value
COMMON STOCKS (a) (b) (Continued)
Switzerland — 8.1%
2,468,761
ABB Ltd. (CHF)
$142,901,402
68,454
Landis+Gyr Group AG (CHF)
6,357,280
 
149,258,682
Taiwan — 2.3%
73,432
Advantech Co., Ltd. (TWD)
746,003
806,620
Allis Electric Co., Ltd. (TWD)
3,109,590
56,839
Chung-Hsin Electric &
Machinery Manufacturing
Corp. (TWD)
309,820
671,163
Fortune Electric Co., Ltd.
(TWD)
13,339,912
912,580
Shihlin Electric & Engineering
Corp. (TWD)
6,372,906
2,379,213
Ta Ya Electric Wire & Cable
(TWD)
3,811,673
242,786
Voltronic Power Technology
Corp. (TWD)
15,535,420
 
43,225,324
United Kingdom — 8.2%
10,781,694
National Grid PLC (GBP)
148,470,457
127,763
SSE PLC (GBP)
3,216,409
 
151,686,866
United States — 27.7%
89,210
Advanced Energy Industries,
Inc.
9,388,460
74,569
AES (The) Corp.
1,495,854
103,637
American Superconductor
Corp. (f)
2,445,833
62,623
Analog Devices, Inc.
14,413,936
5,574
Arcosa, Inc.
528,192
102,570
Atkore, Inc.
8,691,782
2,780
AZZ, Inc.
229,656
4,444
Belden, Inc.
520,526
502,825
Cisco Systems, Inc.
26,760,347
3,868
Digi International, Inc. (f)
106,486
76,038
Emerson Electric Co.
8,316,276
4,756
EnerSys
485,350
387,305
Enphase Energy, Inc. (f)
43,773,211
2,942
ESCO Technologies, Inc.
379,459
158,671
Fluence Energy, Inc. (f)
3,603,418
33,564
GE Vernova, Inc. (f)
8,558,149
7,587
Generac Holdings, Inc. (f)
1,205,423
86,257
Honeywell International, Inc.
17,830,185
165,081
Hubbell, Inc.
70,712,446
114,966
International Business Machines
Corp.
25,416,683
117,531
Itron, Inc. (f)
12,553,486
3,026
Littelfuse, Inc.
802,647
7,682
MasTec, Inc. (f)
945,654
39,596
MYR Group, Inc. (f)
4,047,899
Shares
Description
Value
 
United States (Continued)
296,346
NVIDIA Corp.
$35,988,258
212,222
Oracle Corp.
36,162,629
8,013
Preformed Line Products Co.
1,026,305
139,036
QUALCOMM, Inc.
23,643,072
257,154
Quanta Services, Inc.
76,670,465
156,829
SolarEdge Technologies, Inc. (f)
3,592,952
165,220
Tesla, Inc. (f)
43,226,509
113,957
Texas Instruments, Inc.
23,540,098
30,804
Trimble, Inc. (f)
1,912,620
2,460
Valmont Industries, Inc.
713,277
5,547
WESCO International, Inc.
931,785
40,454
Willdan Group, Inc. (f)
1,656,591
 
512,275,919
Total Common Stocks
1,845,021,349
(Cost $1,585,383,595)
MONEY MARKET FUNDS — 0.2%
602,975
Dreyfus Government Cash
Management Fund,
Institutional Shares -
4.80% (g)
602,975
2,124,083
Goldman Sachs Financial Square
Treasury Obligations Fund -
Institutional Class -
4.76% (g) (h)
2,124,083
Total Money Market Funds
2,727,058
(Cost $2,727,058)
Total Investments — 100.1%
1,847,748,407
(Cost $1,588,110,653)
Net Other Assets and
Liabilities — (0.1)%
(1,058,364
)
Net Assets — 100.0%
$1,846,690,043
 
(a)
Portfolio securities are categorized based upon their country
of incorporation, which can be different from the country
categorization of the Fund’s underlying index.
(b)
Securities are issued in U.S. dollars unless otherwise
indicated in the security description.
(c)
All or a portion of this security is on loan (see Note 2E -
Securities Lending in the Notes to Financial Statements). The
remaining contractual maturity of all of the securities lending
transactions is overnight and continuous. The aggregate
value of such securities, including those sold and pending
settlement, is $1,829,116 and the total value of the collateral
held by the Fund is $2,124,083.
(d)
This security is exempt from registration upon resale under
Rule 144A of the Securities Act of 1933, as amended (the
“1933 Act”) and may be resold in transactions exempt from
registration, normally to qualified institutional buyers. This
security is not restricted on the foreign exchange where it
trades freely without any additional registration.
See Notes to Financial Statements
Page 15
First Trust NASDAQ® Clean Edge® Smart Grid Infrastructure Index Fund (GRID)
Portfolio of Investments (Continued)
September 30, 2024
(e)
This security may be resold to qualified foreign investors and
foreign institutional buyers under Regulation S of the 1933
Act.
(f)
Non-income producing security.
(g)
Rate shown reflects yield as of September 30, 2024.
(h)
This security serves as collateral for securities on loan.
 
Abbreviations throughout the Portfolio of Investments:
ADR
–  American Depositary Receipt
BRL
–  Brazilian Real
CAD
–  Canadian Dollar
CHF
–  Swiss Franc
DKK
–  Danish Krone
EUR
–  Euro
GBP
–  British Pound Sterling
HKD
–  Hong Kong Dollar
JPY
–  Japanese Yen
KRW
–  South Korean Won
TWD
–  New Taiwan Dollar
USD
–  United States Dollar
 
Currency Exposure Diversification
% of Total
Investments
USD
49.3%
EUR
20.3
GBP
8.2
CHF
8.1
KRW
3.7
BRL
2.9
TWD
2.3
CAD
2.2
JPY
1.8
DKK
0.8
HKD
0.4
Total
100.0%
Valuation Inputs
A summary of the inputs used to value the Fund’s investments as of September 30, 2024 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements):
 
 
Total
Value at
9/30/2024
Level 1
Quoted
Prices
Level 2
Significant
Observable
Inputs
Level 3
Significant
Unobservable
Inputs
Common
Stocks*
$ 1,845,021,349
$ 1,845,021,349
$ —
$ —
Money Market
Funds
     2,727,058
     2,727,058
 —
 —
Total
Investments
$1,847,748,407
$1,847,748,407
$—
$—
 
*
See Portfolio of Investments for country breakout.
Offsetting Assets and Liabilities
Offsetting assets and liabilities requires entities to disclose both gross and net information about instruments and transactions eligible for offset, and to disclose instruments and transactions subject to master netting or similar agreements (see Note 2C - Offsetting on the Statements of Assets and Liabilities in the Notes to Financial Statements).
The Fund’s loaned securities were all subject to an enforceable Securities Lending Agency Agreement. Securities lent in accordance with the Securities Lending Agency Agreement on a gross basis were as follows:
 
Securities Lending Agency Agreement
Total gross amount presented on the Statements
of Assets and Liabilities(1)
$1,829,116
Non-cash Collateral(2)
(1,829,116
)
Net Amount
$—
 
(1)
The amount presented on the Statements of Assets and
Liabilities, which is included in “Investments, at value,” is not
offset and is shown on a gross basis.
(2)
At September 30, 2024, the value of the collateral received
from each borrower exceeded the value of the related
securities loaned. This amount is disclosed on the Portfolio of
Investments.
See Notes to Financial Statements
Page 16
First Trust Indxx Global Natural Resources Income ETF (FTRI)
Portfolio of Investments
September 30, 2024
 
Shares
Description
Value
COMMON STOCKS (a) (b) — 99.8%
Australia — 4.3%
318,806
Gold Road Resources Ltd.
(AUD)
$376,894
65,312
GrainCorp Ltd., Class A (AUD)
415,410
184,792
IGO Ltd. (AUD)
748,648
534,042
Origin Energy Ltd. (AUD)
3,695,780
426,188
Perseus Mining Ltd. (AUD)
769,021
 
6,005,753
Brazil — 0.2%
58,847
Cia de Saneamento de Minas
Gerais Copasa MG (BRL)
248,882
Canada — 32.7%
150,041
Agnico Eagle Mines Ltd.
12,087,303
129,592
Alamos Gold, Inc., Class A
2,584,064
185,159
ARC Resources Ltd. (CAD)
3,129,679
81,974
Birchcliff Energy Ltd. (CAD) (c)
345,485
395,506
Canadian Natural Resources Ltd.
(CAD)
13,133,332
55,764
Dundee Precious Metals, Inc.
(CAD)
564,876
378,344
Kinross Gold Corp.
3,541,300
127,130
Nutrien Ltd. (c)
6,109,868
30,782
Parex Resources, Inc. (CAD)
273,122
58,627
Peyto Exploration &
Development Corp. (CAD) (c)
667,571
16,064
West Fraser Timber Co., Ltd.
(CAD)
1,565,125
182,848
Whitecap Resources, Inc.
(CAD) (c)
1,365,496
 
45,367,221
China — 4.8%
1,118,858
CMOC Group Ltd., Class H
(HKD)
1,098,154
981,695
Yankuang Energy Group Co.,
Ltd., Class H (HKD)
1,386,573
1,836,966
Zijin Mining Group Co., Ltd.,
Class H (HKD)
4,173,070
 
6,657,797
Colombia — 4.1%
637,687
Ecopetrol S.A., ADR (c)
5,694,545
Hong Kong — 0.4%
879,350
Guangdong Investment Ltd.
(HKD)
591,599
India — 3.7%
704,514
Coal India Ltd. (INR)
4,288,812
70,688
Gujarat State Fertilizers &
Chemicals Ltd. (INR)
184,081
48,574
Tata Chemicals Ltd. (INR)
632,438
 
5,105,331
Shares
Description
Value
 
Ireland — 3.6%
51,060
Pentair PLC
$4,993,157
Japan — 2.6%
271,100
Inpex Corp. (JPY)
3,655,535
Luxembourg — 0.5%
29,184
Adecoagro S.A.
323,067
11,786
APERAM S.A. (EUR)
369,186
 
692,253
Norway — 1.5%
95,219
Aker BP ASA (NOK)
2,040,997
Switzerland — 3.0%
43,514
Bunge Global S.A.
4,205,193
United Kingdom — 1.0%
366,813
Harbour Energy PLC (GBP)
1,305,475
United States — 37.4%
27,466
Alliance Resource Partners,
L.P. (d)
686,650
58,676
American Water Works Co., Inc.
8,580,778
10,021
Andersons (The), Inc.
502,453
18,092
California Water Service Group
980,948
55,547
CF Industries Holdings, Inc.
4,765,933
84,704
Essential Utilities, Inc.
3,267,033
38,411
FMC Corp.
2,532,821
309,212
Freeport-McMoRan, Inc.
15,435,863
5,378
Middlesex Water Co.
350,861
98,137
Mosaic (The) Co.
2,628,109
28,780
Northern Oil & Gas, Inc.
1,019,100
9,261
SJW Group
538,157
18,516
UFP Industries, Inc.
2,429,484
8,367
Watts Water Technologies, Inc.,
Class A
1,733,559
188,099
Weyerhaeuser Co.
6,369,032
 
51,820,781
Total Common Stocks
138,384,519
(Cost $133,451,500)
See Notes to Financial Statements
Page 17
First Trust Indxx Global Natural Resources Income ETF (FTRI)
Portfolio of Investments (Continued)
September 30, 2024
Shares
Description
Value
MONEY MARKET FUNDS — 9.7%
229,614
Dreyfus Government Cash
Management Fund,
Institutional Shares -
4.80% (e)
$229,614
13,186,799
Goldman Sachs Financial Square
Treasury Obligations Fund -
Institutional Class -
4.76% (e) (f)
13,186,799
Total Money Market Funds
13,416,413
(Cost $13,416,413)
Total Investments — 109.5%
151,800,932
(Cost $146,867,913)
Net Other Assets and
Liabilities — (9.5)%
(13,223,371
)
Net Assets — 100.0%
$138,577,561
 
(a)
Portfolio securities are categorized based upon their country
of incorporation, which can be different from the country
categorization of the Fund’s underlying index.
(b)
Securities are issued in U.S. dollars unless otherwise
indicated in the security description.
(c)
All or a portion of this security is on loan (see Note 2E -
Securities Lending in the Notes to Financial Statements). The
remaining contractual maturity of all of the securities lending
transactions is overnight and continuous. The aggregate
value of such securities, including those sold and pending
settlement, is $12,790,500 and the total value of the collateral
held by the Fund is $13,186,799.
(d)
Security is a Master Limited Partnership (“MLP”).
(e)
Rate shown reflects yield as of September 30, 2024.
(f)
This security serves as collateral for securities on loan.
 
Abbreviations throughout the Portfolio of Investments:
ADR
–  American Depositary Receipt
AUD
–  Australian Dollar
BRL
–  Brazilian Real
CAD
–  Canadian Dollar
EUR
–  Euro
GBP
–  British Pound Sterling
HKD
–  Hong Kong Dollar
INR
–  Indian Rupee
JPY
–  Japanese Yen
NOK
–  Norwegian Krone
USD
–  United States Dollar
 
Currency Exposure Diversification
% of Total
Investments
USD
69.0%
CAD
13.9
HKD
4.8
AUD
3.9
INR
3.4
JPY
2.4
NOK
1.3
GBP
0.9
EUR
0.2
BRL
0.2
Total
100.0%
Valuation Inputs
A summary of the inputs used to value the Fund’s investments as of September 30, 2024 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements):
 
 
Total
Value at
9/30/2024
Level 1
Quoted
Prices
Level 2
Significant
Observable
Inputs
Level 3
Significant
Unobservable
Inputs
Common Stocks*
$ 138,384,519
$ 138,384,519
$ —
$ —
Money Market
Funds
  13,416,413
  13,416,413
 —
 —
Total Investments
$151,800,932
$151,800,932
$—
$—
 
*
See Portfolio of Investments for country breakout.
See Notes to Financial Statements
Page 18
First Trust Indxx Global Natural Resources Income ETF (FTRI)
Portfolio of Investments (Continued)
September 30, 2024
Offsetting Assets and Liabilities
Offsetting assets and liabilities requires entities to disclose both gross and net information about instruments and transactions eligible for offset, and to disclose instruments and transactions subject to master netting or similar agreements (see Note 2C - Offsetting on the Statements of Assets and Liabilities in the Notes to Financial Statements).
The Fund’s loaned securities were all subject to an enforceable Securities Lending Agency Agreement. Securities lent in accordance with the Securities Lending Agency Agreement on a gross basis were as follows:
 
Securities Lending Agency Agreement
Total gross amount presented on the Statements
of Assets and Liabilities(1)
$12,790,500
Non-cash Collateral(2)
(12,790,500
)
Net Amount
$—
 
(1)
The amount presented on the Statements of Assets and
Liabilities, which is included in “Investments, at value,” is not
offset and is shown on a gross basis.
(2)
At September 30, 2024, the value of the collateral received
from each borrower exceeded the value of the related
securities loaned. This amount is disclosed on the Portfolio of
Investments.
See Notes to Financial Statements
Page 19
First Trust Indxx Global Agriculture ETF (FTAG)
Portfolio of Investments
September 30, 2024
 
Shares
Description
Value
COMMON STOCKS (a) (b) — 100.1%
Australia — 1.1%
25,012
Incitec Pivot Ltd. (AUD)
$53,778
4,997
Nufarm Ltd. (AUD)
13,715
 
67,493
Canada — 4.4%
5,756
Nutrien Ltd. (CAD)
276,596
Chile — 1.2%
1,857
Sociedad Quimica y Minera de
Chile S.A., ADR
77,400
China — 0.1%
3,948
First Tractor Co., Ltd., Class H
(HKD)
4,266
Germany — 16.9%
11,155
BASF SE (EUR)
590,501
8,810
Bayer AG (EUR)
297,393
6,077
Evonik Industries AG (EUR)
142,057
2,335
K+S AG (EUR)
29,917
 
1,059,868
India — 16.9%
5,151
Chambal Fertilisers and
Chemicals Ltd. (INR)
32,544
3,791
Coromandel International Ltd.
(INR)
75,758
1,420
Escorts Kubota Ltd. (INR)
72,334
1,890
Gujarat Narmada Valley
Fertilizers & Chemicals Ltd.
(INR)
15,239
5,128
Gujarat State Fertilizers &
Chemicals Ltd. (INR)
13,354
15,422
Mahindra & Mahindra Ltd.
(INR)
569,556
1,951
PI Industries Ltd. (INR)
108,392
7,098
Rashtriya Chemicals &
Fertilizers Ltd. (INR)
15,361
6,427
Sumitomo Chemical India Ltd.
(INR)
42,703
3,278
Tata Chemicals Ltd. (INR)
42,680
9,654
UPL Ltd. (INR)
70,636
 
1,058,557
Israel — 1.1%
16,807
ICL Group Ltd. (ILS)
71,594
Japan — 6.9%
15,200
Kubota Corp. (JPY)
214,793
2,600
Mitsui Chemicals, Inc. (JPY)
68,833
600
Nippon Soda Co., Ltd. (JPY)
10,412
1,800
Nissan Chemical Corp. (JPY)
64,198
600
Sakata Seed Corp. (JPY)
14,736
21,500
Sumitomo Chemical Co., Ltd.
(JPY)
60,958
 
433,930
Shares
Description
Value
 
Malaysia — 2.3%
104,001
Petronas Chemicals Group Bhd
(MYR)
$142,250
Mexico — 0.4%
25,613
Orbia Advance Corp. S.A.B. de
C.V. (MXN)
25,899
Netherlands — 4.1%
16,301
CNH Industrial N.V.
180,941
2,757
OCI N.V. (EUR)
78,504
 
259,445
Qatar — 4.2%
73,550
Industries Qatar QSC (QAR)
263,415
Russia — 0.0%
1,918
PhosAgro PJSC
(RUB) (c) (d) (e) (f)
0
Singapore — 3.4%
81,300
Wilmar International Ltd. (SGD)
211,908
Switzerland — 3.8%
133
Bucher Industries AG (CHF)
60,265
1,842
Bunge Global S.A.
178,011
 
238,276
Turkey — 0.9%
4,342
Gubre Fabrikalari T.A.S.
(TRY) (d)
25,965
1,302
Turk Traktor ve Ziraat
Makineleri A/S (TRY)
26,874
 
52,839
United Arab Emirates — 1.2%
107,944
Fertiglobe PLC (AED)
76,703
United States — 31.2%
971
AGCO Corp.
95,022
156
Alamo Group, Inc.
28,100
2,345
CF Industries Holdings, Inc.
201,201
8,614
Corteva, Inc.
506,417
1,483
Deere & Co.
618,900
1,623
FMC Corp.
107,021
142
Lindsay Corp.
17,699
4,143
Mosaic (The) Co.
110,950
739
Scotts Miracle-Gro (The) Co.
64,071
587
SiteOne Landscape Supply,
Inc. (d)
88,584
1,334
Toro (The) Co.
115,698
 
1,953,663
Total Common Stocks
6,274,102
(Cost $7,697,348)
See Notes to Financial Statements
Page 20
First Trust Indxx Global Agriculture ETF (FTAG)
Portfolio of Investments (Continued)
September 30, 2024
Shares
Description
Value
MONEY MARKET FUNDS — 0.8%
52,455
Dreyfus Government Cash
Management Fund,
Institutional Shares -
4.80% (g)
$52,455
(Cost $52,455)
Total Investments — 100.9%
6,326,557
(Cost $7,749,803)
Net Other Assets and
Liabilities — (0.9)%
(56,901
)
Net Assets — 100.0%
$6,269,656
 
(a)
Portfolio securities are categorized based upon their country
of incorporation, which can be different from the country
categorization of the Fund’s underlying index.
(b)
Securities are issued in U.S. dollars unless otherwise
indicated in the security description.
(c)
Pursuant to procedures adopted by the Trust’s Board of
Trustees, this security has been determined to be illiquid by
First Trust Advisors L.P., the Fund’s advisor.
(d)
Non-income producing security.
(e)
This security is fair valued by the Advisor’s Pricing
Committee in accordance with procedures approved by the
Trust’s Board of Trustees, and in accordance with provisions
of the Investment Company Act of 1940 and rules
thereunder, as amended. At September 30, 2024, securities
noted as such are valued at $0 or 0.0% of net assets.
(f)
This security’s value was determined using significant
unobservable inputs (see Note 2A - Portfolio Valuation in the
Notes to Financial Statements).
(g)
Rate shown reflects yield as of September 30, 2024.
 
Abbreviations throughout the Portfolio of Investments:
ADR
–  American Depositary Receipt
AED
–  United Arab Emirates Dirham
AUD
–  Australian Dollar
CAD
–  Canadian Dollar
CHF
–  Swiss Franc
EUR
–  Euro
HKD
–  Hong Kong Dollar
ILS
–  Israeli Shekel
INR
–  Indian Rupee
JPY
–  Japanese Yen
MXN
–  Mexican Peso
MYR
–  Malaysian Ringgit
QAR
–  Qatari Riyal
RUB
–  Russian Ruble
SGD
–  Singapore Dollar
TRY
–  Turkish Lira
USD
–  United States Dollar
 
Currency Exposure Diversification
% of Total
Investments
USD
38.6%
EUR
18.0
INR
16.7
JPY
6.9
CAD
4.4
QAR
4.2
SGD
3.3
MYR
2.2
AED
1.2
ILS
1.1
AUD
1.1
CHF
1.0
TRY
0.8
MXN
0.4
HKD
0.1
RUB
0.0‡
Total
100.0%
 
‡
Investment is valued at $0.
Valuation Inputs
A summary of the inputs used to value the Fund’s investments as of September 30, 2024 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements):
 
 
Total
Value at
9/30/2024
Level 1
Quoted
Prices
Level 2
Significant
Observable
Inputs
Level 3
Significant
Unobservable
Inputs
Common Stocks:
Russia
$        —**
$        —
$ —
$  —**
Other Country
Categories*
 6,274,102
 6,274,102
 —
  —
Money Market Funds
    52,455
    52,455
 —
  —
Total Investments
$6,326,557
$6,326,557
$—
 $—**
 
*
See Portfolio of Investments for country breakout.
**
Investment is valued at $0.
Level 3 investments are fair valued by the Advisor’s Pricing Committee and are footnoted in the Portfolio of Investments. All Level 3 values are based on unobservable inputs.
See Notes to Financial Statements
Page 21
First Trust Indxx NextG ETF (NXTG)
Portfolio of Investments
September 30, 2024
 
Shares
Description
Value
COMMON STOCKS (a) (b) — 99.9%
Australia — 0.6%
843,260
Telstra Group Ltd. (AUD)
$2,261,985
Brazil — 0.6%
241,375
Telefonica Brasil S.A., ADR
2,478,921
Canada — 1.6%
57,807
BCE, Inc. (CAD)
2,009,749
51,515
Rogers Communications, Inc.,
Class B (CAD)
2,071,341
123,127
TELUS Corp. (CAD)
2,065,697
 
6,146,787
Cayman Islands — 1.5%
2,036,504
Xiaomi Corp., Class B
(HKD) (c) (d) (e)
5,894,292
China — 2.6%
34,905,252
China Tower Corp., Ltd.,
Class H (HKD) (c) (e)
4,624,788
2,070,355
ZTE Corp., Class H (HKD)
5,353,092
 
9,977,880
Finland — 2.6%
95,646
Elisa Oyj (EUR)
5,070,031
1,173,145
Nokia Oyj, ADR (f)
5,126,644
 
10,196,675
France — 0.6%
191,965
Orange S.A. (EUR)
2,197,763
Germany — 1.6%
81,249
Deutsche Telekom AG (EUR)
2,386,777
106,997
Infineon Technologies AG
(EUR)
3,747,009
 
6,133,786
Guernsey — 1.3%
58,503
Amdocs Ltd.
5,117,842
Hong Kong — 1.2%
3,262,646
Lenovo Group Ltd. (HKD)
4,448,767
India — 7.5%
115,383
Bharti Airtel Ltd. (INR)
2,353,819
259,548
HCL Technologies Ltd. (INR)
5,562,855
250,261
Infosys Ltd., ADR
5,573,313
97,459
Tata Consultancy Services Ltd.
(INR)
4,964,171
272,451
Tech Mahindra Ltd. (INR)
5,127,724
801,020
Wipro Ltd., ADR (f)
5,190,610
 
28,772,492
Indonesia — 0.6%
11,085,417
Telkom Indonesia Persero Tbk
PT (IDR)
2,189,260
Italy — 3.3%
416,633
Infrastrutture Wireless Italiane
S.p.A. (EUR) (c) (e)
5,124,723
Shares
Description
Value
 
Italy (Continued)
71,065
Prysmian S.p.A. (EUR)
$5,157,720
8,219,570
Telecom Italia S.p.A.
(EUR) (d) (f)
2,282,833
 
12,565,276
Japan — 10.4%
288,420
Fujitsu Ltd. (JPY)
5,890,812
72,448
KDDI Corp. (JPY)
2,315,715
390,084
Kyocera Corp. (JPY)
4,505,406
265,265
Mitsubishi Electric Corp. (JPY)
4,251,438
56,859
NEC Corp. (JPY)
5,439,633
4,704,850
Nippon Telegraph & Telephone
Corp. (JPY)
4,805,510
235,459
Renesas Electronics Corp. (JPY)
3,405,944
3,488,980
SoftBank Corp. (JPY)
4,544,352
265,880
Sony Group Corp. (JPY)
5,138,157
 
40,296,967
Malaysia — 0.6%
2,479,055
CelcomDigi Bhd (MYR)
2,236,470
Mexico — 0.5%
2,373,518
America Movil S.A.B. de C.V.,
Series B (MXN)
1,946,791
Netherlands — 2.3%
532,051
Koninklijke KPN N.V. (EUR)
2,172,978
15,796
NXP Semiconductors N.V.
3,791,198
98,742
STMicroelectronics N.V. (EUR)
2,928,132
 
8,892,308
New Zealand — 0.4%
794,060
Spark New Zealand Ltd. (NZD)
1,528,533
Norway — 0.6%
169,064
Telenor ASA (NOK)
2,162,773
Philippines — 0.6%
58,740
Globe Telecom, Inc. (PHP)
2,383,667
Qatar — 0.6%
733,929
Ooredoo QPSC (QAR)
2,362,441
Russia — 0.0%
755,018
Mobile TeleSystems PJSC,
ADR (d) (g) (h) (i)
0
Singapore — 0.7%
1,042,752
Singapore Telecommunications
Ltd. (SGD)
2,628,684
South Africa — 1.3%
452,142
MTN Group Ltd. (ZAR)
2,403,137
407,116
Vodacom Group Ltd. (ZAR)
2,579,481
 
4,982,618
South Korea — 4.6%
148,570
KT Corp., ADR
2,285,007
61,139
LG Electronics, Inc. (KRW)
4,876,346
80,400
Samsung Electronics Co., Ltd.
(KRW)
3,781,142
See Notes to Financial Statements
Page 22
First Trust Indxx NextG ETF (NXTG)
Portfolio of Investments (Continued)
September 30, 2024
Shares
Description
Value
COMMON STOCKS (a) (b) (Continued)
South Korea (Continued)
39,732
Samsung SDS Co., Ltd. (KRW)
$4,700,268
53,285
SK Telecom Co., Ltd. (KRW)
2,277,764
 
17,920,527
Spain — 1.1%
55,379
Cellnex Telecom S.A.
(EUR) (c) (d) (e)
2,245,736
432,019
Telefonica S.A. (EUR)
2,114,049
 
4,359,785
Sweden — 2.6%
198,503
Tele2 AB, Class B (SEK)
2,245,799
719,504
Telefonaktiebolaget LM
Ericsson, Class B (SEK) (f)
5,435,325
763,085
Telia Co., AB (SEK)
2,467,515
 
10,148,639
Switzerland — 0.6%
3,592
Swisscom AG (CHF)
2,344,869
Taiwan — 10.0%
413,943
Advantech Co., Ltd. (TWD)
4,205,289
890,297
ASE Technology Holding Co.,
Ltd. (TWD)
4,248,016
508,295
Chunghwa Telecom Co., Ltd.
(TWD)
2,015,737
420,562
Delta Electronics, Inc. (TWD)
5,056,605
748,536
Far EasTone
Telecommunications Co., Ltd.
(TWD)
2,145,331
111,285
MediaTek, Inc. (TWD)
4,131,891
1,364,839
Taiwan Mobile Co., Ltd. (TWD)
4,959,679
25,837
Taiwan Semiconductor
Manufacturing Co., Ltd., ADR
4,487,112
2,635,210
United Microelectronics Corp.
(TWD)
4,479,936
55,479
Wiwynn Corp. (TWD)
3,006,540
 
38,736,136
Thailand — 0.7%
347,300
Advanced Info Service PCL
(THB)
2,806,247
United Arab Emirates — 0.6%
456,034
Emirates Telecommunications
Group Co. PJSC (AED)
2,296,900
United Kingdom — 2.0%
2,690,048
BT Group PLC (GBP)
5,319,172
2,242,140
Vodafone Group PLC (GBP)
2,249,424
 
7,568,596
United States — 34.1%
27,893
Advanced Micro Devices,
Inc. (d)
4,576,683
23,061
American Tower Corp.
5,363,066
18,746
Analog Devices, Inc.
4,314,767
Shares
Description
Value
 
United States (Continued)
20,980
Apple, Inc.
$4,888,340
14,358
Arista Networks, Inc. (d)
5,510,887
112,806
AT&T, Inc.
2,481,732
29,890
Broadcom, Inc.
5,156,025
91,631
Ciena Corp. (d)
5,643,553
97,979
Cisco Systems, Inc.
5,214,442
44,842
Crown Castle, Inc.
5,319,606
29,877
Digital Realty Trust, Inc.
4,834,995
5,868
Equinix, Inc.
5,208,613
26,599
F5, Inc. (d)
5,857,100
213,758
Hewlett Packard Enterprise Co.
4,373,489
145,310
Intel Corp.
3,408,973
26,445
International Business Machines
Corp.
5,846,461
125,766
Juniper Networks, Inc.
4,902,359
32,362
Keysight Technologies, Inc. (d)
5,143,293
60,930
Marvell Technology, Inc.
4,394,272
47,290
Microchip Technology, Inc.
3,796,914
31,755
Micron Technology, Inc.
3,293,311
11,782
Motorola Solutions, Inc.
5,297,541
35,698
NVIDIA Corp.
4,335,165
41,113
Qorvo, Inc. (d)
4,246,973
20,750
QUALCOMM, Inc.
3,528,537
22,769
SBA Communications Corp.
5,480,498
43,546
Skyworks Solutions, Inc.
4,301,038
11,430
T-Mobile US, Inc.
2,358,695
49,948
Verizon Communications, Inc.
2,243,165
 
131,320,493
Total Common Stocks
385,305,170
(Cost $348,069,028)
MONEY MARKET FUNDS — 4.1%
397,227
Dreyfus Government Cash
Management Fund,
Institutional Shares - 4.80% (j)
397,227
15,467,085
Goldman Sachs Financial Square
Treasury Obligations Fund -
Institutional Class -
4.76% (j) (k)
15,467,085
Total Money Market Funds
15,864,312
(Cost $15,864,312)
Total Investments — 104.0%
401,169,482
(Cost $363,933,340)
Net Other Assets and
Liabilities — (4.0)%
(15,523,165
)
Net Assets — 100.0%
$385,646,317
 
See Notes to Financial Statements
Page 23
First Trust Indxx NextG ETF (NXTG)
Portfolio of Investments (Continued)
September 30, 2024
(a)
Portfolio securities are categorized based upon their country
of incorporation, which can be different from the country
categorization of the Fund’s underlying index.
(b)
Securities are issued in U.S. dollars unless otherwise
indicated in the security description.
(c)
This security is exempt from registration upon resale under
Rule 144A of the Securities Act of 1933, as amended (the
“1933 Act”) and may be resold in transactions exempt from
registration, normally to qualified institutional buyers. This
security is not restricted on the foreign exchange where it
trades freely without any additional registration.
(d)
Non-income producing security.
(e)
This security may be resold to qualified foreign investors and
foreign institutional buyers under Regulation S of the 1933
Act.
(f)
All or a portion of this security is on loan (see Note 2E -
Securities Lending in the Notes to Financial Statements). The
remaining contractual maturity of all of the securities lending
transactions is overnight and continuous. The aggregate
value of such securities, including those sold and pending
settlement, is $14,760,115 and the total value of the collateral
held by the Fund is $15,467,085.
(g)
Pursuant to procedures adopted by the Trust’s Board of
Trustees, this security has been determined to be illiquid by
First Trust Advisors L.P., the Fund’s advisor.
(h)
This security is fair valued by the Advisor’s Pricing
Committee in accordance with procedures approved by the
Trust’s Board of Trustees, and in accordance with provisions
of the Investment Company Act of 1940 and rules
thereunder, as amended. At September 30, 2024, securities
noted as such are valued at $0 or 0.0% of net assets.
(i)
This security’s value was determined using significant
unobservable inputs (see Note 2A - Portfolio Valuation in the
Notes to Financial Statements).
(j)
Rate shown reflects yield as of September 30, 2024.
(k)
This security serves as collateral for securities on loan.
 
Abbreviations throughout the Portfolio of Investments:
ADR
–  American Depositary Receipt
AED
–  United Arab Emirates Dirham
AUD
–  Australian Dollar
CAD
–  Canadian Dollar
CHF
–  Swiss Franc
EUR
–  Euro
GBP
–  British Pound Sterling
HKD
–  Hong Kong Dollar
IDR
–  Indonesian Rupiah
INR
–  Indian Rupee
JPY
–  Japanese Yen
KRW
–  South Korean Won
MXN
–  Mexican Peso
MYR
–  Malaysian Ringgit
NOK
–  Norwegian Krone
NZD
–  New Zealand Dollar
PHP
–  Philippine Peso
QAR
–  Qatari Riyal
SEK
–  Swedish Krona
SGD
–  Singapore Dollar
THB
–  Thai Baht
TWD
–  New Taiwan Dollar
USD
–  United States Dollar
ZAR
–  South African Rand
 
Currency Exposure Diversification
% of Total
Investments
USD
45.2%
JPY
10.0
EUR
8.8
TWD
8.5
HKD
5.1
INR
4.5
KRW
3.9
SEK
2.5
GBP
1.9
CAD
1.5
ZAR
1.2
THB
0.7
SGD
0.7
PHP
0.6
QAR
0.6
CHF
0.6
AED
0.6
AUD
0.6
MYR
0.6
IDR
0.5
NOK
0.5
MXN
0.5
NZD
0.4
Total
100.0%
See Notes to Financial Statements
Page 24
First Trust Indxx NextG ETF (NXTG)
Portfolio of Investments (Continued)
September 30, 2024
Valuation Inputs
A summary of the inputs used to value the Fund’s investments as of September 30, 2024 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements):
 
 
Total
Value at
9/30/2024
Level 1
Quoted
Prices
Level 2
Significant
Observable
Inputs
Level 3
Significant
Unobservable
Inputs
Common
Stocks:
Russia
$          —**
$          —
$        —
$  —**
Thailand
   2,806,247
          —
 2,806,247
  —
Other Country
Categories*
 382,498,923
 382,498,923
        —
  —
Money Market
Funds
  15,864,312
  15,864,312
        —
  —
Total
Investments
$401,169,482
$398,363,235
$2,806,247
 $—**
 
*
See Portfolio of Investments for country breakout.
**
Investment is valued at $0.
Level 3 investments are fair valued by the Advisor’s Pricing Committee and are footnoted in the Portfolio of Investments. All Level 3 values are based on unobservable inputs.
Offsetting Assets and Liabilities
Offsetting assets and liabilities requires entities to disclose both gross and net information about instruments and transactions eligible for offset, and to disclose instruments and transactions subject to master netting or similar agreements (see Note 2C - Offsetting on the Statements of Assets and Liabilities in the Notes to Financial Statements).
The Fund’s loaned securities were all subject to an enforceable Securities Lending Agency Agreement. Securities lent in accordance with the Securities Lending Agency Agreement on a gross basis were as follows:
 
Securities Lending Agency Agreement
Total gross amount presented on the Statements
of Assets and Liabilities(1)
$14,760,115
Non-cash Collateral(2)
(14,760,115
)
Net Amount
$—
 
(1)
The amount presented on the Statements of Assets and
Liabilities, which is included in “Investments, at value,” is not
offset and is shown on a gross basis.
(2)
At September 30, 2024, the value of the collateral received
from each borrower exceeded the value of the related
securities loaned. This amount is disclosed on the Portfolio of
Investments.
See Notes to Financial Statements
Page 25
First Trust S-Network Future Vehicles & Technology ETF (CARZ)
Portfolio of Investments
September 30, 2024
 
Shares
Description
Value
COMMON STOCKS (a) (b) — 99.7%
Australia — 1.1%
46,397
IGO Ltd. (AUD)
$187,968
90,951
Pilbara Minerals Ltd.
(AUD) (c) (d)
205,614
 
393,582
Austria — 0.5%
12,375
ams-OSRAM AG (CHF) (c)
172,681
Canada — 1.6%
57,326
Lithium Americas Argentina
Corp. (c) (d)
186,883
4,182
Magna International, Inc.
171,629
15,334
Sigma Lithium Corp. (c) (d)
189,528
 
548,040
Cayman Islands — 4.7%
3,035
Ambarella, Inc. (c)
171,189
1,852
Baidu, Inc., ADR (c)
194,997
175,734
Geely Automobile Holdings Ltd.
(HKD)
275,338
8,690
Li Auto, Inc., ADR (c) (d)
222,899
39,810
NIO, Inc., ADR (c) (d)
265,931
21,440
XPeng, Inc., ADR (c)
261,139
139,098
Yadea Group Holdings Ltd.
(HKD) (e) (f)
247,282
 
1,638,775
Chile — 0.5%
4,378
Sociedad Quimica y Minera de
Chile S.A., ADR (d)
182,475
China — 3.3%
5,855
BYD Co., Ltd., Class H (HKD)
213,749
84,775
Ganfeng Lithium Group Co.,
Ltd., Class H (HKD) (e) (f)
244,275
118,277
Great Wall Motor Co., Ltd.,
Class H (HKD)
220,614
66,205
Tianqi Lithium Corp., Class H
(HKD) (d)
235,052
61,730
Zhejiang Leapmotor Technology
Co., Ltd. (HKD) (c) (e) (f)
266,014
 
1,179,704
France — 2.8%
2,952
Schneider Electric SE (EUR)
776,159
16,914
Valeo SE (EUR)
203,717
 
979,876
Germany — 3.0%
1,883
Bayerische Motoren Werke AG
(EUR)
165,967
2,899
Continental AG (EUR)
187,619
7,125
Infineon Technologies AG
(EUR)
249,516
Shares
Description
Value
 
Germany (Continued)
4,531
Mercedes-Benz Group AG
(EUR)
$292,736
1,651
Wacker Chemie AG (EUR)
162,830
 
1,058,668
Indonesia — 1.2%
1,257,170
Merdeka Copper Gold Tbk PT
(IDR) (c)
225,859
794,002
Vale Indonesia Tbk PT (IDR) (c)
213,971
 
439,830
Ireland — 0.7%
1,676
TE Connectivity PLC
253,059
Israel — 0.6%
3,995
Electreon Wireless Ltd. (ILS) (c)
211,008
Japan — 6.4%
16,200
Aisin Corp. (JPY)
177,752
11,400
Denso Corp. (JPY)
168,591
22,192
Honda Motor Co., Ltd. (JPY)
232,767
8,400
NIDEC CORP. (JPY)
175,685
52,609
Nissan Motor Co., Ltd. (JPY) (d)
147,331
21,800
Panasonic Holdings Corp. (JPY)
188,536
8,700
Renesas Electronics Corp. (JPY)
125,847
8,410
Subaru Corp. (JPY)
145,233
50,460
Toyota Motor Corp. (JPY)
892,639
 
2,254,381
Jersey — 1.0%
2,599
Aptiv PLC (c)
187,154
54,283
Arcadium Lithium PLC
(AUD) (c)
159,121
 
346,275
Netherlands — 2.8%
715
Ferrari N.V.
336,129
7,107
Nebius Group N.V. (c) (g) (h) (i)
0
1,400
NXP Semiconductors N.V.
336,014
11,422
Stellantis N.V. (EUR)
157,760
4,944
STMicroelectronics N.V.
146,985
 
976,888
South Korea — 8.6%
1,360
Ecopro BM Co., Ltd. (KRW) (c)
191,879
1,092
Hyundai Mobis Co., Ltd. (KRW)
181,624
971
Hyundai Motor Co. (KRW)
181,176
2,102
Kia Corp. (KRW)
160,580
701
LG Chem Ltd. (KRW)
191,104
5,391
Lotte Energy Materials Corp.
(KRW)
169,847
3,101
LX Semicon Co., Ltd. (KRW)
152,477
954
POSCO Future M Co., Ltd.
(KRW)
182,381
26,394
Samsung Electronics Co., Ltd.
(KRW)
1,241,287
See Notes to Financial Statements
Page 26
First Trust S-Network Future Vehicles & Technology ETF (CARZ)
Portfolio of Investments (Continued)
September 30, 2024
Shares
Description
Value
COMMON STOCKS (a) (b) (Continued)
South Korea (Continued)
660
Samsung SDI Co., Ltd. (KRW)
$191,030
6,117
SK IE Technology Co., Ltd.
(KRW) (c) (e) (f)
169,332
 
3,012,717
Sweden — 0.7%
9,085
Volvo AB, Class B (SEK)
239,921
Taiwan — 4.5%
9,088
Taiwan Semiconductor
Manufacturing Co., Ltd., ADR
1,578,313
United Kingdom — 0.5%
4,646
Sensata Technologies
Holding PLC
166,606
United States — 55.2%
16,444
Adeia, Inc.
195,848
9,216
Advanced Micro Devices,
Inc. (c)
1,512,161
1,903
Albemarle Corp.
180,233
5,949
Allegro MicroSystems, Inc. (c)
138,612
9,036
Alphabet, Inc., Class A
1,498,621
2,709
Analog Devices, Inc.
623,531
7,368
Apple, Inc.
1,716,744
56,287
Aurora Innovation, Inc. (c)
333,219
5,622
BorgWarner, Inc.
204,022
96,036
ChargePoint Holdings,
Inc. (c) (d)
131,569
1,379
Cirrus Logic, Inc. (c)
171,286
737
Cummins, Inc.
238,633
21,425
Ford Motor Co.
226,248
6,235
General Motors Co.
279,577
28,401
indie Semiconductor, Inc.,
Class A (c)
113,320
23,303
Intel Corp.
546,688
3,178
Lattice Semiconductor Corp. (c)
168,656
1,585
Lear Corp.
173,003
54,797
Lucid Group, Inc. (c) (d)
193,433
107,075
Luminar Technologies,
Inc. (c) (d)
96,335
4,689
Marvell Technology, Inc.
338,171
8,374
MaxLinear, Inc. (c)
121,256
2,881
Microchip Technology, Inc.
231,315
6,044
Micron Technology, Inc.
626,823
3,690
Microsoft Corp.
1,587,807
6,893
Mobileye Global, Inc.,
Class A (c)
94,434
13,162
NVIDIA Corp.
1,598,393
2,511
ON Semiconductor Corp. (c)
182,324
2,821
PACCAR, Inc.
278,376
63,587
Plug Power, Inc. (c) (d)
143,707
1,522
Qorvo, Inc. (c)
157,223
8,390
QUALCOMM, Inc.
1,426,720
Shares
Description
Value
 
United States (Continued)
2,859
Rambus, Inc. (c)
$120,707
11,116
Rivian Automotive, Inc.,
Class A (c)
124,722
1,570
Silicon Laboratories, Inc. (c)
181,445
1,202
SiTime Corp. (c)
206,155
1,696
Skyworks Solutions, Inc.
167,514
2,085
Synaptics, Inc. (c)
161,754
6,957
Tesla, Inc. (c)
1,820,160
4,979
Texas Instruments, Inc.
1,028,512
7,519
Wolfspeed, Inc. (c)
72,934
 
19,412,191
Total Common Stocks
35,044,990
(Cost $33,606,171)
MONEY MARKET FUNDS — 5.4%
37,787
Dreyfus Government Cash
Management Fund,
Institutional Shares - 4.80% (j)
37,787
1,851,885
Goldman Sachs Financial Square
Treasury Obligations Fund -
Institutional Class -
4.76% (j) (k)
1,851,885
Total Money Market Funds
1,889,672
(Cost $1,889,672)
Total Investments — 105.1%
36,934,662
(Cost $35,495,843)
Net Other Assets and
Liabilities — (5.1)%
(1,794,618
)
Net Assets — 100.0%
$35,140,044
 
(a)
Portfolio securities are categorized based upon their country
of incorporation, which can be different from the country
categorization of the Fund’s underlying index.
(b)
Securities are issued in U.S. dollars unless otherwise
indicated in the security description.
(c)
Non-income producing security.
(d)
All or a portion of this security is on loan (see Note 2E -
Securities Lending in the Notes to Financial Statements). The
remaining contractual maturity of all of the securities lending
transactions is overnight and continuous. The aggregate
value of such securities, including those sold and pending
settlement, is $1,779,595 and the total value of the collateral
held by the Fund is $1,851,885.
(e)
This security is exempt from registration upon resale under
Rule 144A of the Securities Act of 1933, as amended (the
“1933 Act”) and may be resold in transactions exempt from
registration, normally to qualified institutional buyers. This
security is not restricted on the foreign exchange where it
trades freely without any additional registration.
See Notes to Financial Statements
Page 27
First Trust S-Network Future Vehicles & Technology ETF (CARZ)
Portfolio of Investments (Continued)
September 30, 2024
(f)
This security may be resold to qualified foreign investors and
foreign institutional buyers under Regulation S of the 1933
Act.
(g)
Pursuant to procedures adopted by the Trust’s Board of
Trustees, this security has been determined to be illiquid by
First Trust Advisors L.P., the Fund’s advisor.
(h)
This security is fair valued by the Advisor’s Pricing
Committee in accordance with procedures approved by the
Trust’s Board of Trustees, and in accordance with provisions
of the Investment Company Act of 1940 and rules
thereunder, as amended. At September 30, 2024, securities
noted as such are valued at $0 or 0.0% of net assets.
(i)
This security’s value was determined using significant
unobservable inputs (see Note 2A - Portfolio Valuation in the
Notes to Financial Statements).
(j)
Rate shown reflects yield as of September 30, 2024.
(k)
This security serves as collateral for securities on loan.
 
Abbreviations throughout the Portfolio of Investments:
ADR
–  American Depositary Receipt
AUD
–  Australian Dollar
CHF
–  Swiss Franc
EUR
–  Euro
HKD
–  Hong Kong Dollar
IDR
–  Indonesian Rupiah
ILS
–  Israeli Shekel
JPY
–  Japanese Yen
KRW
–  South Korean Won
SEK
–  Swedish Krona
USD
–  United States Dollar
 
Currency Exposure Diversification
% of Total
Investments
USD
70.8%
KRW
8.2
JPY
6.1
EUR
5.9
HKD
4.6
AUD
1.5
IDR
1.2
SEK
0.6
ILS
0.6
CHF
0.5
Total
100.0%
Valuation Inputs
A summary of the inputs used to value the Fund’s investments as of September 30, 2024 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements):
 
 
Total
Value at
9/30/2024
Level 1
Quoted
Prices
Level 2
Significant
Observable
Inputs
Level 3
Significant
Unobservable
Inputs
Common Stocks:
Netherlands
$    976,888
$    976,888
$ —
$  —**
Other Country
Categories*
 34,068,102
 34,068,102
 —
  —
Money Market Funds
  1,889,672
  1,889,672
 —
  —
Total Investments
$36,934,662
$36,934,662
$—
 $—**
 
*
See Portfolio of Investments for country breakout.
**
Investment is valued at $0.
Level 3 investments are fair valued by the Advisor’s Pricing Committee and are footnoted in the Portfolio of Investments. All Level 3 values are based on unobservable inputs.
Offsetting Assets and Liabilities
Offsetting assets and liabilities requires entities to disclose both gross and net information about instruments and transactions eligible for offset, and to disclose instruments and transactions subject to master netting or similar agreements (see Note 2C - Offsetting on the Statements of Assets and Liabilities in the Notes to Financial Statements).
The Fund’s loaned securities were all subject to an enforceable Securities Lending Agency Agreement. Securities lent in accordance with the Securities Lending Agency Agreement on a gross basis were as follows:
 
Securities Lending Agency Agreement
Total gross amount presented on the Statements
of Assets and Liabilities(1)
$1,779,595
Non-cash Collateral(2)
(1,779,595
)
Net Amount
$—
 
(1)
The amount presented on the Statements of Assets and
Liabilities, which is included in “Investments, at value,” is not
offset and is shown on a gross basis.
(2)
At September 30, 2024, the value of the collateral received
from each borrower exceeded the value of the related
securities loaned. This amount is disclosed on the Portfolio of
Investments.
See Notes to Financial Statements
Page 28
First Trust Cloud Computing ETF (SKYY)
Portfolio of Investments
September 30, 2024
 
Shares
Description
Value
COMMON STOCKS — 100.0%
Broadline Retail — 3.9%
616,307
Amazon.com, Inc. (a)
$114,836,483
Communications Equipment
— 6.6%
311,310
Arista Networks, Inc. (a)
119,487,004
1,451,138
Cisco Systems, Inc.
77,229,565
 
196,716,569
Diversified Telecommunication
Services — 4.2%
17,462,025
Lumen Technologies, Inc. (a)
123,980,378
Financial Services — 0.7%
737,535
Toast, Inc., Class A (a)
20,879,616
Health Care Technology —
0.6%
84,712
Veeva Systems, Inc., Class A (a)
17,778,507
Interactive Media & Services
— 3.7%
673,343
Alphabet, Inc., Class A
111,673,937
IT Services — 19.9%
720,154
Akamai Technologies, Inc. (a)
72,699,546
892,872
Cloudflare, Inc., Class A (a)
72,224,416
1,246,343
DigitalOcean Holdings, Inc. (a)
50,339,794
2,631,377
Fastly, Inc., Class A (a)
19,919,524
544,257
International Business Machines
Corp.
120,324,338
315,264
MongoDB, Inc. (a)
85,231,622
742,613
Shopify, Inc., Class A (a)
59,513,006
160,511
Snowflake, Inc., Class A (a)
18,436,293
876,440
Twilio, Inc., Class A (a)
57,161,417
220,083
Wix.com Ltd. (a)
36,791,275
 
592,641,231
Media — 0.6%
175,405
Trade Desk (The), Inc.,
Class A (a)
19,233,158
Professional Services — 1.3%
112,637
Paycom Software, Inc.
18,761,945
113,601
Paylocity Holding Corp. (a)
18,740,757
 
37,502,702
Software — 49.1%
95,760
Adobe, Inc. (a)
49,582,613
79,034
Appfolio, Inc., Class A (a)
18,604,604
825,698
Appian Corp., Class A (a)
28,189,330
592,284
AppLovin Corp., Class A (a)
77,322,676
1,304,063
Asana, Inc., Class A (a)
15,114,090
332,158
Atlassian Corp., Class A (a)
52,750,012
219,320
Blackbaud, Inc. (a)
18,572,018
370,033
BlackLine, Inc. (a)
20,403,620
562,427
Box, Inc., Class A (a)
18,408,236
2,592,148
Confluent, Inc., Class A (a)
52,827,976
Shares
Description
Value
 
Software (Continued)
66,125
CrowdStrike Holdings, Inc.,
Class A (a)
$18,546,079
157,708
Datadog, Inc., Class A (a)
18,145,882
309,663
DocuSign, Inc. (a)
19,226,976
729,321
Dropbox, Inc., Class A (a)
18,546,633
240,650
Elastic N.V. (a)
18,472,294
1,435,020
Five9, Inc. (a)
41,228,124
1,160,451
Gitlab, Inc., Class A (a)
59,809,644
110,216
HubSpot, Inc. (a)
58,590,825
29,091
Intuit, Inc.
18,065,511
582,807
Klaviyo, Inc., Class A (a)
20,619,712
263,726
Microsoft Corp.
113,481,298
1,740,952
Nutanix, Inc., Class A (a)
103,151,406
576,214
Open Text Corp.
19,176,402
778,617
Oracle Corp.
132,676,337
50,549
Palo Alto Networks, Inc. (a)
17,277,648
247,071
Q2 Holdings, Inc. (a)
19,708,854
146,482
Qualys, Inc. (a)
18,817,078
1,289,791
RingCentral, Inc., Class A (a)
40,796,089
1,126,996
Rubrik, Inc., Class A (a)
36,232,921
217,499
Salesforce, Inc.
59,531,651
166,903
SAP SE, ADR
38,237,477
64,334
ServiceNow, Inc. (a)
57,539,686
375,720
Smartsheet, Inc., Class A (a)
20,799,859
589,554
Sprout Social, Inc., Class A (a)
17,138,335
69,665
Workday, Inc., Class A (a)
17,026,823
703,664
Workiva, Inc. (a)
55,673,896
265,419
Zoom Video Communications,
Inc., Class A (a)
18,510,321
91,685
Zscaler, Inc. (a)
15,672,634
2,085,907
Zuora, Inc., Class A (a)
17,980,518
 
1,462,456,088
Technology Hardware, Storage
& Peripherals — 9.4%
476,072
Dell Technologies, Inc., Class C
56,433,575
2,839,721
Hewlett Packard Enterprise Co.
58,100,692
455,644
NetApp, Inc.
56,276,590
2,144,878
Pure Storage, Inc., Class A (a)
107,758,671
 
278,569,528
Total Common Stocks
2,976,268,197
(Cost $2,356,562,672)
MONEY MARKET FUNDS — 0.0%
530,670
Dreyfus Government Cash
Management Fund,
Institutional Shares -
4.80% (b)
530,670
(Cost $530,670)
 
See Notes to Financial Statements
Page 29
First Trust Cloud Computing ETF (SKYY)
Portfolio of Investments (Continued)
September 30, 2024
Principal
Value
Description
Value
REPURCHASE AGREEMENTS — 0.0%
$75
Bank of America Corp.,
4.86% (b), dated 09/30/24,
due 10/01/24, with a maturity
value of $75. Collateralized by
U.S. Treasury Securities,
interest rates of 0.00% to
4.25%, due 11/15/27 to
08/15/54. The value of the
collateral including accrued
interest is $77. (c)
$75
(Cost $75)
Total Investments — 100.0%
2,976,798,942
(Cost $2,357,093,417)
Net Other Assets and
Liabilities — 0.0%
733,536
Net Assets — 100.0%
$2,977,532,478
 
(a)
Non-income producing security.
(b)
Rate shown reflects yield as of September 30, 2024.
(c)
This security serves as collateral for securities on loan.
 
Abbreviations throughout the Portfolio of Investments:
ADR
–  American Depositary Receipt
Valuation Inputs
A summary of the inputs used to value the Fund’s investments as of September 30, 2024 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements):
 
 
Total
Value at
9/30/2024
Level 1
Quoted
Prices
Level 2
Significant
Observable
Inputs
Level 3
Significant
Unobservable
Inputs
Common
Stocks*
$ 2,976,268,197
$ 2,976,268,197
$ —
$ —
Money Market
Funds
       530,670
       530,670
 —
 —
Repurchase
Agreements
            75
            —
 75
 —
Total
Investments
$2,976,798,942
$2,976,798,867
$75
$—
 
*
See Portfolio of Investments for industry breakout.
The Fund’s investments in repurchase agreements were all subject to an enforceable Master Repurchase Agreement. Repurchase Agreements on a gross basis were as follows:
 
Repurchase Agreements
Total gross amount presented on the Statements
of Assets and Liabilities(1)
$75
Non-cash Collateral(2)
(75
)
Net Amount
$—
 
(1)
The amount is included in “Investments, at value” on the
Statements of Assets and Liabilities.
(2)
At September 30, 2024, the value of the collateral received
from each seller exceeded the value of the repurchase
agreements.
See Notes to Financial Statements
Page 30
First Trust International Equity Opportunities ETF (FPXI)
Portfolio of Investments
September 30, 2024
 
Shares
Description
Value
COMMON STOCKS (a) (b) — 99.5%
Australia — 3.8%
137,342
Aristocrat Leisure Ltd. (AUD)
$5,564,134
Belgium — 3.5%
28,249
UCB S.A. (EUR)
5,094,159
Brazil — 1.6%
871,418
Caixa Seguridade Participacoes
S.A. (BRL)
2,327,428
Canada — 7.5%
32,230
Brookfield Asset Management
Ltd., Class A
1,524,157
25,794
Celestica, Inc. (CAD) (c)
1,318,642
1,000
Constellation Software, Inc.
(CAD)
3,253,355
2,121
Fairfax Financial Holdings Ltd.
(CAD)
2,678,079
26,559
RB Global, Inc.
2,137,734
 
10,911,967
Cayman Islands — 10.9%
79,000
Akeso, Inc. (HKD) (c) (d) (e)
697,132
45,863
Amer Sports, Inc. (c)
731,515
432,617
NU Holdings Ltd., Class A (c)
5,905,222
122,000
Pop Mart International Group
Ltd. (HKD) (d) (e)
835,686
38,107
SharkNinja, Inc.
4,142,612
894,908
Smoore International Holdings
Ltd. (HKD) (d) (e)
1,485,019
35,189
Trip.com Group Ltd., ADR (c)
2,091,282
 
15,888,468
China — 0.8%
118,984
Midea Group Co., Ltd.
(HKD) (c)
1,136,446
Denmark — 3.6%
7,770
DSV A/S (DKK)
1,604,113
30,337
Novo Nordisk A/S, ADR
3,612,227
 
5,216,340
Germany — 2.5%
24,808
Dr. Ing hc F Porsche AG
(Preference Shares)
(EUR) (d) (e)
1,974,478
43,533
Siemens Energy AG (EUR) (c)
1,602,534
 
3,577,012
Indonesia — 2.2%
5,266,140
Amman Mineral Internasional
PT (IDR) (c)
3,226,120
Ireland — 2.2%
34,619
CRH PLC
3,210,566
Shares
Description
Value
 
Israel — 5.9%
25,379
Monday.com Ltd. (c)
$7,049,525
82,276
Teva Pharmaceutical Industries
Ltd., ADR (c)
1,482,613
 
8,532,138
Japan — 7.5%
49,000
Kyowa Kirin Co., Ltd. (JPY)
861,527
87,600
Sega Sammy Holdings, Inc.
(JPY)
1,743,162
1,383,170
SoftBank Corp. (JPY)
1,801,562
71,900
Sompo Holdings, Inc. (JPY)
1,601,335
388,000
TDK Corp. (JPY)
4,921,371
 
10,928,957
Luxembourg — 9.4%
326,782
InPost S.A. (EUR) (c)
6,162,061
20,415
Spotify Technology S.A. (c)
7,523,540
 
13,685,601
Mexico — 0.3%
8,667
Vista Energy SAB de C.V.,
ADR (c)
382,908
Netherlands — 1.2%
66,419
Universal Music Group N.V.
(EUR)
1,737,459
Norway — 1.4%
90,903
Orkla ASA (NOK)
856,661
362,569
Var Energi ASA (NOK)
1,123,478
 
1,980,139
Saudi Arabia — 0.3%
5,809
SAL Saudi Logistics Services
(SAR)
453,397
South Korea — 3.1%
17,390
Krafton, Inc. (KRW) (c)
4,554,619
Sweden — 8.3%
255,723
Nordnet AB publ (SEK)
6,133,817
141,531
Swedish Orphan Biovitrum AB
(SEK) (c)
4,557,042
124,048
Tele2 AB, Class B (SEK)
1,403,439
 
12,094,298
Switzerland — 6.0%
58,116
On Holding AG, Class A (c)
2,914,517
140,843
Sandoz Group AG (CHF)
5,869,360
 
8,783,877
Taiwan — 2.2%
967,267
Pegatron Corp. (TWD)
3,148,168
United Arab Emirates — 2.1%
1,161,891
ADNOC Drilling Co. PJSC
(AED)
1,496,235
See Notes to Financial Statements
Page 31
First Trust International Equity Opportunities ETF (FPXI)
Portfolio of Investments (Continued)
September 30, 2024
Shares
Description
Value
COMMON STOCKS (a) (b) (Continued)
United Arab Emirates
(Continued)
363,091
Emaar Development PJSC
(AED)
$862,984
680,795
Salik Co. PJSC (AED)
765,490
 
3,124,709
United Kingdom — 8.3%
72,299
ARM Holdings PLC, ADR (c)
10,339,480
331,126
Haleon PLC (GBP)
1,739,367
 
12,078,847
United States — 4.9%
91,179
Coupang, Inc. (c)
2,238,444
178,793
Gen Digital, Inc.
4,904,292
 
7,142,736
Total Common Stocks
144,780,493
(Cost $115,188,326)
MONEY MARKET FUNDS — 0.3%
493,860
Dreyfus Government Cash
Management Fund,
Institutional Shares -
4.80% (f)
493,860
(Cost $493,860)
Total Investments — 99.8%
145,274,353
(Cost $115,682,186)
Net Other Assets and
Liabilities — 0.2%
232,645
Net Assets — 100.0%
$145,506,998
 
(a)
Portfolio securities are categorized based upon their country
of incorporation, which can be different from the country
categorization of the Fund’s underlying index.
(b)
Securities are issued in U.S. dollars unless otherwise
indicated in the security description.
(c)
Non-income producing security.
(d)
This security is exempt from registration upon resale under
Rule 144A of the Securities Act of 1933, as amended (the
“1933 Act”) and may be resold in transactions exempt from
registration, normally to qualified institutional buyers. This
security is not restricted on the foreign exchange where it
trades freely without any additional registration.
(e)
This security may be resold to qualified foreign investors and
foreign institutional buyers under Regulation S of the 1933
Act.
(f)
Rate shown reflects yield as of September 30, 2024.
 
Abbreviations throughout the Portfolio of Investments:
ADR
–  American Depositary Receipt
AED
–  United Arab Emirates Dirham
AUD
–  Australian Dollar
BRL
–  Brazilian Real
CAD
–  Canadian Dollar
CHF
–  Swiss Franc
DKK
–  Danish Krone
EUR
–  Euro
GBP
–  British Pound Sterling
HKD
–  Hong Kong Dollar
IDR
–  Indonesian Rupiah
JPY
–  Japanese Yen
KRW
–  South Korean Won
NOK
–  Norwegian Krone
SAR
–  Saudi Riyal
SEK
–  Swedish Krona
TWD
–  New Taiwan Dollar
USD
–  United States Dollar
 
Currency Exposure Diversification
% of Total
Investments
USD
41.8%
EUR
11.4
SEK
8.3
JPY
7.5
CAD
5.0
CHF
4.0
AUD
3.8
KRW
3.1
HKD
2.9
IDR
2.2
TWD
2.2
AED
2.2
BRL
1.6
NOK
1.4
GBP
1.2
DKK
1.1
SAR
0.3
Total
100.0%
See Notes to Financial Statements
Page 32
First Trust International Equity Opportunities ETF (FPXI)
Portfolio of Investments (Continued)
September 30, 2024
Valuation Inputs
A summary of the inputs used to value the Fund’s investments as of September 30, 2024 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements):
 
 
Total
Value at
9/30/2024
Level 1
Quoted
Prices
Level 2
Significant
Observable
Inputs
Level 3
Significant
Unobservable
Inputs
Common Stocks*
$ 144,780,493
$ 144,780,493
$ —
$ —
Money Market
Funds
     493,860
     493,860
 —
 —
Total Investments
$145,274,353
$145,274,353
$—
$—
 
*
See Portfolio of Investments for country breakout.
See Notes to Financial Statements
Page 33
First Trust Nasdaq Cybersecurity ETF (CIBR)
Portfolio of Investments
September 30, 2024
 
Shares
Description
Value
COMMON STOCKS (a) (b) — 99.9%
Canada — 2.8%
9,600,543
BlackBerry Ltd. (c)
$25,153,423
4,759,666
Open Text Corp. (CAD)
158,438,510
 
183,591,933
France — 3.7%
1,562,061
Thales S.A. (EUR)
247,867,530
India — 7.6%
22,578,218
Infosys Ltd., ADR (d)
502,816,915
Israel — 7.8%
1,365,250
Check Point Software
Technologies Ltd. (c)
263,233,853
800,053
CyberArk Software Ltd. (c)
233,303,455
755,171
Radware Ltd. (c)
16,825,210
 
513,362,518
Japan — 2.2%
2,423,573
Trend Micro, Inc. (JPY)
143,095,776
United Kingdom — 0.3%
8,102,356
NCC Group PLC (GBP)
19,303,446
United States — 75.5%
1,195,528
A10 Networks, Inc.
17,263,424
2,580,603
Akamai Technologies, Inc. (c)
260,511,873
1,655,200
Booz Allen Hamilton Holding
Corp.
269,400,352
3,228,200
Broadcom, Inc.
556,864,500
10,400,085
Cisco Systems, Inc.
553,492,524
3,199,519
Cloudflare, Inc., Class A (c)
258,809,092
1,895,644
CrowdStrike Holdings, Inc.,
Class A (c)
531,671,273
925,689
F5, Inc. (c)
203,836,718
3,426,049
Fortinet, Inc. (c)
265,690,100
9,310,623
Gen Digital, Inc.
255,390,389
1,657,975
Leidos Holdings, Inc.
270,249,925
1,146,179
NetScout Systems, Inc. (c)
24,929,393
2,579,586
Okta, Inc. (c)
191,766,423
1,021,223
OneSpan, Inc. (c)
17,023,787
1,449,087
Palo Alto Networks, Inc. (c)
495,297,937
612,500
Qualys, Inc. (c)
78,681,750
1,008,228
Rapid7, Inc. (c)
40,218,215
987,676
Rubrik, Inc., Class A (c)
31,753,783
852,026
Science Applications
International Corp.
118,661,661
5,502,423
SentinelOne, Inc., Class A (c)
131,617,958
1,869,294
Tenable Holdings, Inc. (c)
75,743,793
1,951,415
Varonis Systems, Inc. (c)
110,254,947
1,314,190
Zscaler, Inc. (c)
224,647,639
 
4,983,777,456
Total Common Stocks
6,593,815,574
(Cost $5,089,807,026)
Shares
Description
Value
MONEY MARKET FUNDS — 1.0%
10,568,721
Dreyfus Government Cash
Management Fund,
Institutional Shares -
4.80% (e)
$10,568,721
58,365,755
Goldman Sachs Financial Square
Treasury Obligations Fund -
Institutional Class -
4.76% (e) (f)
58,365,755
Total Money Market Funds
68,934,476
(Cost $68,934,476)
Total Investments — 100.9%
6,662,750,050
(Cost $5,158,741,502)
Net Other Assets and
Liabilities — (0.9)%
(60,789,676
)
Net Assets — 100.0%
$6,601,960,374
 
(a)
Portfolio securities are categorized based upon their country
of incorporation, which can be different from the country
categorization of the Fund’s underlying index.
(b)
Securities are issued in U.S. dollars unless otherwise
indicated in the security description.
(c)
Non-income producing security.
(d)
All or a portion of this security is on loan (see Note 2E -
Securities Lending in the Notes to Financial Statements). The
remaining contractual maturity of all of the securities lending
transactions is overnight and continuous. The aggregate
value of such securities, including those sold and pending
settlement, is $56,884,261 and the total value of the collateral
held by the Fund is $58,365,755.
(e)
Rate shown reflects yield as of September 30, 2024.
(f)
This security serves as collateral for securities on loan.
 
Abbreviations throughout the Portfolio of Investments:
ADR
–  American Depositary Receipt
CAD
–  Canadian Dollar
EUR
–  Euro
GBP
–  British Pound Sterling
JPY
–  Japanese Yen
See Notes to Financial Statements
Page 34
First Trust Nasdaq Cybersecurity ETF (CIBR)
Portfolio of Investments (Continued)
September 30, 2024
Valuation Inputs
A summary of the inputs used to value the Fund’s investments as of September 30, 2024 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements):
 
 
Total
Value at
9/30/2024
Level 1
Quoted
Prices
Level 2
Significant
Observable
Inputs
Level 3
Significant
Unobservable
Inputs
Common
Stocks*
$ 6,593,815,574
$ 6,593,815,574
$ —
$ —
Money Market
Funds
    68,934,476
    68,934,476
 —
 —
Total
Investments
$6,662,750,050
$6,662,750,050
$—
$—
 
*
See Portfolio of Investments for country breakout.
Offsetting Assets and Liabilities
Offsetting assets and liabilities requires entities to disclose both gross and net information about instruments and transactions eligible for offset, and to disclose instruments and transactions subject to master netting or similar agreements (see Note 2C - Offsetting on the Statements of Assets and Liabilities in the Notes to Financial Statements).
The Fund’s loaned securities were all subject to an enforceable Securities Lending Agency Agreement. Securities lent in accordance with the Securities Lending Agency Agreement on a gross basis were as follows:
 
Securities Lending Agency Agreement
Total gross amount presented on the Statements
of Assets and Liabilities(1)
$56,884,261
Non-cash Collateral(2)
(56,884,261
)
Net Amount
$—
 
(1)
The amount presented on the Statements of Assets and
Liabilities, which is included in “Investments, at value,” is not
offset and is shown on a gross basis.
(2)
At September 30, 2024, the value of the collateral received
from each borrower exceeded the value of the related
securities loaned. This amount is disclosed on the Portfolio of
Investments.
See Notes to Financial Statements
Page 35
First Trust IPOX® Europe Equity Opportunities ETF (FPXE)
Portfolio of Investments
September 30, 2024
 
Shares
Description
Value
COMMON STOCKS (a) (b) — 99.8%
Austria — 0.5%
276
BAWAG Group AG
(EUR) (c) (d)
$21,368
Bahamas — 0.1%
184
OneSpaWorld Holdings Ltd.
3,038
Belgium — 3.3%
186
Solvay S.A. (EUR)
7,288
684
UCB S.A. (EUR)
123,346
 
130,634
Bermuda — 3.9%
2,904
Conduit Holdings Ltd. (GBP)
20,189
815
Fidelis Insurance Holdings Ltd.
14,719
8,106
Hafnia Ltd. (NOK)
57,686
744
Hamilton Insurance Group, Ltd.,
Class B (e)
14,389
320
Paysafe Ltd. (e)
7,178
1,201
SiriusPoint Ltd. (e)
17,222
758
Viking Holdings Ltd. (e)
26,447
 
157,830
Cayman Islands — 0.8%
1,776
Amer Sports, Inc. (e)
28,327
111
MoonLake
Immunotherapeutics (e)
5,597
 
33,924
Cyprus — 0.0%
1,795
HeadHunter Group PLC,
ADR (e) (f) (g) (h)
0
Denmark — 4.9%
3,084
Cadeler A/S (NOK) (e)
21,626
376
DSV A/S (DKK)
77,625
1,400
H Lundbeck A/S (DKK)
9,052
745
Novo Nordisk A/S, Class B
(DKK)
87,533
 
195,836
Finland — 1.0%
4,409
Mandatum Oyj (EUR)
21,816
1,788
Puuilo Oyj (EUR)
19,216
 
41,032
France — 0.4%
89
Exosens SAS (EUR) (e)
2,001
326
La Francaise des Jeux SAEM
(EUR) (c) (d)
13,405
 
15,406
Germany — 7.2%
723
Daimler Truck Holding AG
(EUR)
27,065
400
Dr. Ing hc F Porsche AG
(Preference Shares)
(EUR) (c) (d)
31,836
4,641
E.ON SE (EUR)
68,994
Shares
Description
Value
 
Germany (Continued)
203
Hensoldt AG (EUR)
$6,657
2,460
Ionos SE (EUR) (e)
61,339
132
RENK Group AG (EUR)
3,262
1,405
Siemens Energy AG (EUR) (e)
51,721
1,098
Traton SE (EUR)
35,934
 
286,808
Greece — 0.5%
1,296
Optima bank S.A. (EUR)
18,726
Guernsey — 0.2%
807
Genius Sports Ltd. (e)
6,327
Ireland — 2.1%
898
CRH PLC
83,281
167
Dole PLC
2,720
 
86,001
Israel — 6.7%
3,656
Cellebrite DI Ltd. (e)
61,567
614
Monday.com Ltd. (e)
170,551
1,991
Teva Pharmaceutical Industries
Ltd., ADR (e)
35,878
 
267,996
Italy — 1.4%
127
Intercos S.p.A. (EUR)
2,239
4,422
Lottomatica Group S.p.A. (EUR)
55,377
 
57,616
Jersey — 3.0%
330
Birkenstock Holding PLC (e)
16,266
3,736
CVC Capital Partners PLC
(EUR) (c) (d) (e)
83,466
560
Janus Henderson Group PLC
21,319
 
121,051
Kazakhstan — 0.7%
250
Kaspi.KZ JSC, ADR
26,497
Luxembourg — 9.2%
7,429
Allegro.eu S.A. (PLN) (c) (d) (e)
67,187
788
Ardagh Metal Packaging S.A.
2,971
7,029
InPost S.A. (EUR) (e)
132,544
445
Spotify Technology S.A. (e)
163,996
 
366,698
Netherlands — 4.5%
796
CTP N.V. (EUR) (c) (d)
14,532
1,359
Immatics N.V. (e)
15,506
599
Merus N.V. (e)
29,926
158
Newamsterdam Pharma Co.
N.V. (e)
2,623
743
OCI N.V. (EUR)
21,156
2,234
Technip Energies N.V. (EUR)
53,764
1,607
Universal Music Group N.V.
(EUR)
42,038
 
179,545
See Notes to Financial Statements
Page 36
First Trust IPOX® Europe Equity Opportunities ETF (FPXE)
Portfolio of Investments (Continued)
September 30, 2024
Shares
Description
Value
COMMON STOCKS (a) (b) (Continued)
Norway — 4.6%
2,625
DOF Group ASA (NOK) (e)
$21,790
4,731
Elopak ASA (NOK)
19,950
2,347
Hoegh Autoliners ASA (NOK)
30,269
5,456
Norconsult Norge A/S (NOK)
18,457
5,279
Orkla ASA (NOK)
49,749
603
SmartCraft ASA (NOK) (e)
1,834
2,405
Telenor ASA (NOK)
30,766
4,387
Var Energi ASA (NOK)
13,594
 
186,409
Singapore — 0.3%
984
BW LPG Ltd. (NOK) (c) (d)
14,033
Sweden — 18.3%
3,527
Alleima AB (SEK)
24,796
3,468
BoneSupport Holding AB
(SEK) (c) (d) (e)
104,219
614
Engcon AB (SEK)
7,086
2,181
EQT AB (SEK)
74,627
2,251
Hemnet Group AB (SEK)
82,851
4,538
Munters Group AB (SEK) (c) (d)
103,577
6,851
Nordnet AB publ (SEK)
164,329
731
Nyfosa AB (SEK)
8,666
2,667
Rusta AB (SEK)
20,707
8,745
Samhallsbyggnadsbolaget i
Norden AB (SEK)
6,307
2,491
Swedish Orphan Biovitrum AB
(SEK) (e)
80,206
2,401
Tele2 AB, Class B (SEK)
27,164
1,817
Vimian Group AB (SEK) (e)
8,355
757
Yubico AB (SEK) (e)
18,635
 
731,525
Switzerland — 9.9%
1,162
Accelleron Industries AG (CHF)
60,190
878
Alcon, Inc.
87,861
418
Galderma Group AG (CHF) (e)
38,819
2,813
On Holding AG, Class A (e)
141,072
1,515
Sandoz Group AG (CHF)
63,135
524
Sportradar Group AG,
Class A (e)
6,346
 
397,423
United Kingdom — 12.6%
1,452
AJ Bell PLC (GBP)
8,726
1,842
ARM Holdings PLC, ADR (e)
263,424
4,256
Baltic Classifieds Group PLC
(GBP)
17,241
2,880
Bridgepoint Group PLC
(GBP) (c) (d)
13,269
1,493
Centessa Pharmaceuticals PLC,
ADR (e)
23,873
2,839
Deliveroo PLC (GBP) (c) (d) (e)
5,864
673
Drax Group PLC (GBP)
5,799
Shares
Description
Value
 
United Kingdom (Continued)
1,532
Finablr PLC
(GBP) (c) (e) (f) (g) (h)
$0
791
Frasers Group PLC (GBP) (e)
8,815
16,025
Haleon PLC (GBP)
84,177
3,650
Just Group PLC (GBP)
6,793
268
Marex Group PLC
6,330
328
Molten Ventures PLC (GBP) (e)
1,772
3,802
Petershill Partners PLC
(GBP) (c) (d)
10,649
1,020
Raspberry PI Holdings PLC
(GBP) (e)
5,272
7,324
Trustpilot Group PLC
(GBP) (c) (d) (e)
22,130
285
Verona Pharma PLC, ADR (e)
8,199
1,351
Wise PLC, Class A (GBP) (e)
12,129
 
504,462
United States — 3.7%
5,408
Gen Digital, Inc.
148,341
Total Investments — 99.8%
3,998,526
(Cost $3,118,619)
Net Other Assets and
Liabilities — 0.2%
6,686
Net Assets — 100.0%
$4,005,212
 
(a)
Portfolio securities are categorized based upon their country
of incorporation, which can be different from the country
categorization of the Fund’s underlying index.
(b)
Securities are issued in U.S. dollars unless otherwise
indicated in the security description.
(c)
This security is exempt from registration upon resale under
Rule 144A of the Securities Act of 1933, as amended (the
“1933 Act”) and may be resold in transactions exempt from
registration, normally to qualified institutional buyers. This
security is not restricted on the foreign exchange where it
trades freely without any additional registration.
(d)
This security may be resold to qualified foreign investors and
foreign institutional buyers under Regulation S of the 1933
Act.
(e)
Non-income producing security.
(f)
Pursuant to procedures adopted by the Trust’s Board of
Trustees, this security has been determined to be illiquid by
First Trust Advisors L.P., the Fund’s advisor.
(g)
This security is fair valued by the Advisor’s Pricing
Committee in accordance with procedures approved by the
Trust’s Board of Trustees, and in accordance with provisions
of the Investment Company Act of 1940 and rules
thereunder, as amended. At September 30, 2024, securities
noted as such are valued at $0 or 0.0% of net assets.
(h)
This security’s value was determined using significant
unobservable inputs (see Note 2A - Portfolio Valuation in the
Notes to Financial Statements).
See Notes to Financial Statements
Page 37
First Trust IPOX® Europe Equity Opportunities ETF (FPXE)
Portfolio of Investments (Continued)
September 30, 2024
 
Abbreviations throughout the Portfolio of Investments:
ADR
–  American Depositary Receipt
CHF
–  Swiss Franc
DKK
–  Danish Krone
EUR
–  Euro
GBP
–  British Pound Sterling
NOK
–  Norwegian Krone
PLN
–  Polish Zloty
SEK
–  Swedish Krona
USD
–  United States Dollar
 
Currency Exposure Diversification
% of Total
Investments
USD
36.1%
EUR
23.0
SEK
18.3
NOK
7.0
GBP
5.6
DKK
4.3
CHF
4.0
PLN
1.7
Total
100.0%
Valuation Inputs
A summary of the inputs used to value the Fund’s investments as of September 30, 2024 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements):
 
 
Total
Value at
9/30/2024
Level 1
Quoted
Prices
Level 2
Significant
Observable
Inputs
Level 3
Significant
Unobservable
Inputs
Common Stocks:
Cyprus
$        —**
$        —
$ —
$  —**
United Kingdom
   504,462
   504,462
 —
  —**
Other Country
Categories*
 3,494,064
 3,494,064
 —
  —
Total Investments
$3,998,526
$3,998,526
$—
 $—**
 
*
See Portfolio of Investments for country breakout.
**
Investments are valued at $0.
Level 3 investments are fair valued by the Advisor’s Pricing Committee and are footnoted in the Portfolio of Investments. All Level 3 values are based on unobservable inputs.
See Notes to Financial Statements
Page 38
First Trust Dow Jones International Internet ETF (FDNI)
Portfolio of Investments
September 30, 2024
 
Shares
Description
Value
COMMON STOCKS (a) (b) — 92.4%
Australia — 3.4%
13,030
CAR Group Ltd. (AUD)
$337,449
1,780
REA Group Ltd. (AUD)
247,350
12,327
SEEK Ltd. (AUD)
211,778
6,471
WiseTech Global Ltd. (AUD)
613,749
 
1,410,326
Canada — 5.4%
2,950
Descartes Systems Group (The),
Inc. (CAD) (c)
303,561
23,820
Shopify, Inc., Class A (CAD) (c)
1,908,313
 
2,211,874
Cayman Islands — 52.0%
318,813
Alibaba Group Holding Ltd.
(HKD)
4,511,205
78,763
Baidu, Inc., Class A (HKD) (c)
1,069,917
98,805
JD.com, Inc., Class A (HKD)
2,123,827
11,467
Kanzhun Ltd., ADR
199,067
96,974
Kuaishou Technology
(HKD) (c) (d) (e)
684,220
190,315
Meituan, Class B
(HKD) (c) (d) (e)
4,210,807
60,081
NetEase, Inc. (HKD)
1,163,155
14,199
PDD Holdings, Inc., ADR (c)
1,914,167
12,058
Sea Ltd., ADR (c)
1,136,828
70,101
Tencent Holdings Ltd. (HKD)
4,009,198
22,895
Tencent Music Entertainment
Group, ADR
275,885
12,679
Vipshop Holdings Ltd., ADR
199,441
 
21,497,717
Germany — 1.8%
7,079
Delivery Hero SE
(EUR) (c) (d) (e)
285,414
2,591
Scout24 SE (EUR) (d) (e)
222,802
7,564
Zalando SE (EUR) (c) (d) (e)
249,397
 
757,613
Indonesia — 0.4%
35,280,356
GoTo Gojek Tokopedia Tbk PT
(IDR) (c)
153,798
Isle Of Man — 0.5%
22,086
Entain PLC (GBP)
225,357
Israel — 0.8%
1,922
Wix.com Ltd. (c)
321,301
Japan — 2.5%
92,376
LY Corp. (JPY)
269,496
14,772
M3, Inc. (JPY)
147,797
14,282
Nexon Co., Ltd. (JPY)
281,168
51,273
Rakuten Group, Inc. (JPY) (c)
330,202
 
1,028,663
Luxembourg — 4.5%
5,070
Spotify Technology S.A. (c)
1,868,447
Shares
Description
Value
 
Netherlands — 9.2%
1,073
Adyen N.V. (EUR) (c) (d) (e)
$1,675,282
15,088
Nebius Group N.V. (c) (f) (g) (h)
0
48,121
Prosus N.V. (EUR)
2,103,001
 
3,778,283
New Zealand — 1.2%
4,958
Xero Ltd. (AUD) (c)
512,236
South Africa — 3.6%
6,159
Naspers Ltd., Class N (ZAR)
1,495,378
South Korea — 3.0%
10,572
Kakao Corp. (KRW)
292,252
1,042
Krafton, Inc. (KRW) (c)
272,910
5,218
NAVER Corp. (KRW)
675,942
 
1,241,104
United Kingdom — 1.4%
30,897
Auto Trader Group PLC
(GBP) (d) (e)
358,469
27,298
Rightmove PLC (GBP)
225,327
 
583,796
United States — 2.7%
44,744
Coupang, Inc. (c)
1,098,465
Total Common Stocks
38,184,358
(Cost $38,236,037)
MONEY MARKET FUNDS — 0.7%
263,657
Dreyfus Government Cash
Management Fund,
Institutional Shares - 4.80% (i)
263,657
(Cost $263,657)
Total Investments — 93.1%
38,448,015
(Cost $38,499,694)
Net Other Assets and
Liabilities — 6.9%
2,863,368
Net Assets — 100.0%
$41,311,383
 
(a)
Portfolio securities are categorized based upon their country
of incorporation, which can be different from the country
categorization of the Fund’s underlying index.
(b)
Securities are issued in U.S. dollars unless otherwise
indicated in the security description.
(c)
Non-income producing security.
(d)
This security is exempt from registration upon resale under
Rule 144A of the Securities Act of 1933, as amended (the
“1933 Act”) and may be resold in transactions exempt from
registration, normally to qualified institutional buyers. This
security is not restricted on the foreign exchange where it
trades freely without any additional registration.
(e)
This security may be resold to qualified foreign investors and
foreign institutional buyers under Regulation S of the 1933
Act.
See Notes to Financial Statements
Page 39
First Trust Dow Jones International Internet ETF (FDNI)
Portfolio of Investments (Continued)
September 30, 2024
(f)
Pursuant to procedures adopted by the Trust’s Board of
Trustees, this security has been determined to be illiquid by
First Trust Advisors L.P., the Fund’s advisor.
(g)
This security is fair valued by the Advisor’s Pricing
Committee in accordance with procedures approved by the
Trust’s Board of Trustees, and in accordance with provisions
of the Investment Company Act of 1940 and rules
thereunder, as amended. At September 30, 2024, securities
noted as such are valued at $0 or 0.0% of net assets.
(h)
This security’s value was determined using significant
unobservable inputs (see Note 2A - Portfolio Valuation in the
Notes to Financial Statements).
(i)
Rate shown reflects yield as of September 30, 2024.
 
Abbreviations throughout the Portfolio of Investments:
ADR
–  American Depositary Receipt
AUD
–  Australian Dollar
CAD
–  Canadian Dollar
EUR
–  Euro
GBP
–  British Pound Sterling
HKD
–  Hong Kong Dollar
IDR
–  Indonesian Rupiah
JPY
–  Japanese Yen
KRW
–  South Korean Won
USD
–  United States Dollar
ZAR
–  South African Rand
 
Currency Exposure Diversification
% of Total
Investments
HKD
46.2%
USD
19.0
EUR
11.8
CAD
5.7
AUD
5.0
ZAR
3.9
KRW
3.2
JPY
2.7
GBP
2.1
IDR
0.4
Total
100.0%
Valuation Inputs
A summary of the inputs used to value the Fund’s investments as of September 30, 2024 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements):
 
 
Total
Value at
9/30/2024
Level 1
Quoted
Prices
Level 2
Significant
Observable
Inputs
Level 3
Significant
Unobservable
Inputs
Common Stocks:
Netherlands
$  3,778,283
$  3,778,283
$ —
$  —**
Other Country
Categories*
 34,406,075
 34,406,075
 —
  —
Money Market Funds
    263,657
    263,657
 —
  —
Total Investments
$38,448,015
$38,448,015
$—
 $—**
 
*
See Portfolio of Investments for country breakout.
**
Investment is valued at $0.
Level 3 investments are fair valued by the Advisor’s Pricing Committee and are footnoted in the Portfolio of Investments. All Level 3 values are based on unobservable inputs.
See Notes to Financial Statements
Page 40
First Trust Bloomberg Emerging Market Democracies ETF (EMDM)
Portfolio of Investments
September 30, 2024
 
Shares
Description
Value
COMMON STOCKS (a) (b) — 100.1%
Brazil — 13.2%
19,564
Ambev S.A. (BRL)
$46,973
24,227
B3 S.A. - Brasil Bolsa Balcao
(BRL)
47,630
28,980
Banco Bradesco S.A. (Preference
Shares) (BRL)
78,199
5,822
Banco BTG Pactual S.A. (BRL)
35,556
12,611
Banco do Brasil S.A. (BRL)
62,920
16,633
Banco Santander Brasil S.A.
(BRL)
86,681
23,127
Itau Unibanco Holding S.A.
(Preference Shares) (BRL)
153,297
27,897
Itausa S.A. (Preference Shares)
(BRL)
56,688
4,003
Localiza Rent a Car S.A. (BRL)
30,127
37,022
Petroleo Brasileiro S.A.
(Preference Shares) (BRL)
244,720
3,360
Suzano S.A. (BRL)
33,577
13,214
Vale S.A. (BRL)
154,051
6,689
WEG S.A. (BRL)
66,783
 
1,097,202
Hungary — 2.0%
3,210
OTP Bank Nyrt (HUF)
167,823
India — 16.5%
322
Adani Enterprises Ltd. (INR)
12,049
545
Adani Green Energy Ltd.
(INR) (c)
12,374
905
Adani Ports & Special Economic
Zone Ltd. (INR)
15,640
552
Asian Paints Ltd. (INR)
21,929
283
Avenue Supermarts Ltd.
(INR) (c) (d) (e)
17,210
3,382
Axis Bank Ltd. (INR)
49,728
135
Bajaj Auto Ltd. (INR)
19,889
313
Bajaj Finance Ltd. (INR)
28,771
619
Bajaj Finserv Ltd. (INR)
14,577
2,747
Bharti Airtel Ltd. (INR)
56,039
621
Cipla Ltd. (INR)
12,257
408
Grasim Industries Ltd. (INR)
13,611
1,148
HCL Technologies Ltd. (INR)
24,605
8,598
HDFC Bank Ltd. (INR)
177,708
969
Hindustan Unilever Ltd. (INR)
34,207
7,755
ICICI Bank Ltd. (INR)
117,804
743
IndusInd Bank Ltd. (INR)
12,835
3,734
Infosys Ltd. (INR)
83,573
7,845
ITC Ltd. (INR)
48,506
3,396
Jio Financial Services Ltd.
(INR) (c)
14,208
1,596
Kotak Mahindra Bank Ltd.
(INR)
35,309
1,170
Larsen & Toubro Ltd. (INR)
51,317
Shares
Description
Value
 
India (Continued)
1,030
Mahindra & Mahindra Ltd.
(INR)
$38,039
153
Maruti Suzuki India Ltd. (INR)
24,169
416
Nestle India Ltd. (INR)
13,353
5,088
NTPC Ltd. (INR)
26,909
5,002
Power Grid Corp. of India Ltd.
(INR)
21,061
3,571
Reliance Industries Ltd. (INR)
125,842
3,599
State Bank of India (INR)
33,838
1,213
Sun Pharmaceutical Industries
Ltd. (INR)
27,888
1,054
Tata Consultancy Services Ltd.
(INR)
53,687
2,347
Tata Motors Ltd. (INR)
27,297
8,785
Tata Steel Ltd. (INR)
17,669
440
Titan Co., Ltd. (INR)
20,078
239
Trent, Ltd. (INR)
21,603
141
UltraTech Cement Ltd. (INR)
19,857
7,434
Zomato Ltd. (INR) (c)
24,244
 
1,369,680
Mexico — 11.5%
220,826
America Movil S.A.B. de C.V.,
Series B (MXN)
181,124
110,313
Cemex S.A.B. de C.V.,
Series CPO (MXN)
67,566
16,453
Fomento Economico Mexicano
S.A.B. de C.V., Series UBD
(MXN)
162,408
21,955
Grupo Financiero Banorte
S.A.B. de C.V., Class O
(MXN)
155,547
47,913
Grupo Mexico S.A.B. de C.V.,
Series B (MXN)
267,111
39,094
Wal-Mart de Mexico S.A.B. de
C.V. (MXN)
117,480
 
951,236
Philippines — 1.6%
7,569
SM Investments Corp. (PHP)
129,127
Poland — 6.3%
3,771
Bank Polska Kasa Opieki S.A.
(PLN)
143,923
10,444
ORLEN S.A. (PLN)
151,599
15,840
Powszechna Kasa Oszczednosci
Bank Polski S.A. (PLN)
230,378
 
525,900
South Africa — 19.6%
1,482
Capitec Bank Holdings Ltd.
(ZAR)
261,147
84,539
FirstRand Ltd. (ZAR)
406,414
See Notes to Financial Statements
Page 41
First Trust Bloomberg Emerging Market Democracies ETF (EMDM)
Portfolio of Investments (Continued)
September 30, 2024
Shares
Description
Value
COMMON STOCKS (a) (b) (Continued)
South Africa (Continued)
2,654
Naspers Ltd., Class N (ZAR)
$644,379
22,382
Standard Bank Group Ltd.
(ZAR)
313,950
 
1,625,890
South Korea — 12.4%
270
Celltrion, Inc. (KRW)
40,344
188
Ecopro Co., Ltd. (KRW) (c)
12,737
488
Hana Financial Group, Inc.
(KRW)
21,943
225
HLB, Inc. (KRW) (c)
14,745
100
Hyundai Mobis Co., Ltd. (KRW)
16,632
298
Hyundai Motor Co. (KRW)
55,603
524
Kakao Corp. (KRW)
14,485
570
KB Financial Group, Inc.
(KRW)
35,263
406
Kia Corp. (KRW)
31,016
87
LG Chem Ltd. (KRW)
23,718
236
NAVER Corp. (KRW)
30,572
118
POSCO Holdings, Inc. (KRW)
34,740
33
Samsung Biologics Co., Ltd.
(KRW) (c) (d) (e)
24,655
10,489
Samsung Electronics Co., Ltd.
(KRW)
493,289
89
Samsung SDI Co., Ltd. (KRW)
25,760
835
Shinhan Financial Group Co.,
Ltd. (KRW)
35,438
900
SK Hynix, Inc. (KRW)
120,165
 
1,031,105
Taiwan — 17.0%
4,815
ASE Technology Holding Co.,
Ltd. (TWD)
22,975
10,908
Cathay Financial Holding Co.,
Ltd. (TWD)
22,921
5,504
Chunghwa Telecom Co., Ltd.
(TWD)
21,827
22,649
CTBC Financial Holding Co.,
Ltd. (TWD)
24,620
2,390
Delta Electronics, Inc. (TWD)
28,736
18,229
E.Sun Financial Holding Co.,
Ltd. (TWD)
16,157
6,021
Formosa Plastics Corp. (TWD)
10,179
10,193
Fubon Financial Holding Co.,
Ltd. (TWD)
29,117
14,937
Hon Hai Precision Industry Co.,
Ltd. (TWD)
88,499
1,811
MediaTek, Inc. (TWD)
67,241
14,408
Mega Financial Holding Co.,
Ltd. (TWD)
17,893
726
Novatek Microelectronics Corp.
(TWD)
11,883
3,450
Quanta Computer, Inc. (TWD)
28,780
Shares
Description
Value
 
Taiwan (Continued)
31,401
Taiwan Semiconductor
Manufacturing Co., Ltd.
(TWD)
$949,576
5,957
Uni-President Enterprises Corp.
(TWD)
16,414
14,045
United Microelectronics Corp.
(TWD)
23,877
3,395
Wistron Corp. (TWD)
10,835
15,845
Yuanta Financial Holding Co.,
Ltd. (TWD)
15,872
 
1,407,402
Total Common Stocks
8,305,365
(Cost $7,221,947)
MONEY MARKET FUNDS — 0.3%
26,690
Dreyfus Government Cash
Management Fund,
Institutional Shares -
4.80% (f)
26,690
(Cost $26,690)
Total Investments — 100.4%
8,332,055
(Cost $7,248,637)
Net Other Assets and
Liabilities — (0.4)%
(32,335
)
Net Assets — 100.0%
$8,299,720
 
(a)
Portfolio securities are categorized based upon their country
of incorporation, which can be different from the country
categorization of the Fund’s underlying index.
(b)
Securities are issued in U.S. dollars unless otherwise
indicated in the security description.
(c)
Non-income producing security.
(d)
This security is exempt from registration upon resale under
Rule 144A of the Securities Act of 1933, as amended (the
“1933 Act”) and may be resold in transactions exempt from
registration, normally to qualified institutional buyers. This
security is not restricted on the foreign exchange where it
trades freely without any additional registration.
(e)
This security may be resold to qualified foreign investors and
foreign institutional buyers under Regulation S of the 1933
Act.
(f)
Rate shown reflects yield as of September 30, 2024.
 
See Notes to Financial Statements
Page 42
First Trust Bloomberg Emerging Market Democracies ETF (EMDM)
Portfolio of Investments (Continued)
September 30, 2024
Abbreviations throughout the Portfolio of Investments:
BRL
–  Brazilian Real
HUF
–  Hungarian Forint
INR
–  Indian Rupee
KRW
–  South Korean Won
MXN
–  Mexican Peso
PHP
–  Philippine Peso
PLN
–  Polish Zloty
TWD
–  New Taiwan Dollar
USD
–  United States Dollar
ZAR
–  South African Rand
 
Currency Exposure Diversification
% of Total
Investments
ZAR
19.5%
TWD
16.9
INR
16.4
BRL
13.2
KRW
12.4
MXN
11.4
PLN
6.3
HUF
2.0
PHP
1.6
USD
0.3
Total
100.0%
Valuation Inputs
A summary of the inputs used to value the Fund’s investments as of September 30, 2024 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements):
 
 
Total
Value at
9/30/2024
Level 1
Quoted
Prices
Level 2
Significant
Observable
Inputs
Level 3
Significant
Unobservable
Inputs
Common Stocks*
$ 8,305,365
$ 8,305,365
$ —
$ —
Money Market Funds
    26,690
    26,690
 —
 —
Total Investments
$8,332,055
$8,332,055
$—
$—
 
*
See Portfolio of Investments for country breakout.
See Notes to Financial Statements
Page 43
First Trust Exchange-Traded Fund II
Statements of Assets and Liabilities
September 30, 2024
 
 
First Trust
STOXX®
European Select
Dividend Index
Fund
(FDD)
First Trust
Alerian
Disruptive
Technology Real
Estate ETF
(DTRE)
First Trust Dow
Jones Global
Select Dividend
Index Fund
(FGD)
ASSETS:
Investments, at value
$157,009,979
$19,532,477
$561,791,042
Cash
—
3
—
Foreign currency, at value
228
3,174
288,459
Due from authorized participant
—
—
—
Receivables:
Reclaims
1,783,747
12,518
2,638,954
Dividends
1,374,521
66,510
2,446,259
Investment securities sold
—
—
44,013
Capital shares sold
—
—
—
Securities lending income
—
—
—
Prepaid expenses
1,672
—
2,938
Total Assets
160,170,147
19,614,682
567,211,665
 
LIABILITIES:
Due to custodian
—
—
—
Due to custodian foreign currency
—
—
—
Payables:
Licensing fees
61,714
—
102,504
Investment advisory fees
52,283
9,546
183,781
Audit and tax fees
36,935
—
41,125
Shareholder reporting fees
19,723
—
46,340
Trustees’ fees
75
—
132
Investment securities purchased
—
—
—
Deferred foreign capital gains tax
—
—
—
Collateral for securities on loan
—
—
—
Other liabilities
27,986
60,486
94,658
Total Liabilities
198,716
70,032
468,540
NET ASSETS
$159,971,431
$19,544,650
$566,743,125
 
NET ASSETS consist of:
Paid-in capital
$240,121,255
$25,160,943
$772,024,804
Par value
129,033
4,416
233,000
Accumulated distributable earnings (loss)
(80,278,857)
(5,620,709)
(205,514,679)
NET ASSETS
$159,971,431
$19,544,650
$566,743,125
NET ASSET VALUE, per share
$12.40
$44.26
$24.32
Number of shares outstanding (unlimited number of shares authorized,
par value $0.01 per share)
12,903,334
441,608
23,300,002
Investments, at cost
$144,756,651
$17,102,665
$532,373,977
Foreign currency, at cost (proceeds)
$229
$3,111
$288,262
Securities on loan, at value
$—
$—
$—
See Notes to Financial Statements
Page 44
 
First Trust Global
Wind Energy ETF
(FAN)
First Trust Alerian
U.S. NextGen
Infrastructure ETF
(RBLD)
First Trust NASDAQ®
Clean Edge® Smart
Grid Infrastructure
Index Fund
(GRID)
First Trust Indxx
Global Natural
Resources Income
ETF
(FTRI)
First Trust Indxx
Global Agriculture
ETF
(FTAG)
$214,863,847
$10,158,822
$1,847,748,407
$151,800,932
$6,326,557
—
—
—
—
—
—
—
181,659
11,113
1,151
—
—
1,156,542
—
—
397,437
—
922,695
47,519
18,942
172,767
6,310
1,115,233
278,840
4,029
—
—
—
—
—
—
—
31,754,307
92
937
6,570
—
4,440
9,281
—
1,672
417
1,017
—
—
215,442,293
10,165,549
1,882,884,300
152,147,777
6,351,616
157,065
—
—
—
—
43,557
—
—
—
—
96,396
—
355,870
—
—
26,318
5,207
553,958
81,708
3,983
53,507
—
30,995
—
—
36,732
—
41,206
—
—
81
—
168
—
—
—
—
32,871,194
—
—
—
—
—
301,709
77,977
18,454,228
—
2,124,083
13,186,799
—
34,422
—
216,783
—
—
18,902,306
5,207
36,194,257
13,570,216
81,960
$196,539,987
$10,160,342
$1,846,690,043
$138,577,561
$6,269,656
$304,602,648
$16,377,968
$1,657,510,489
$243,528,021
$29,155,748
108,500
1,500
145,500
102,500
2,399
(108,171,161)
(6,219,126)
189,034,054
(105,052,960)
(22,888,491)
$196,539,987
$10,160,342
$1,846,690,043
$138,577,561
$6,269,656
$18.11
$67.73
$126.92
$13.52
$26.13
10,850,002
150,002
14,550,002
10,250,002
239,928
$243,286,195
$7,764,286
$1,588,110,653
$146,867,913
$7,749,803
$(43,557)
$—
$181,753
$11,097
$1,149
$17,373,109
$—
$1,829,116
$12,790,500
$—
See Notes to Financial Statements
Page 45
First Trust Exchange-Traded Fund II
Statements of Assets and Liabilities (Continued)
September 30, 2024
 
 
First Trust
Indxx NextG
ETF
(NXTG)
First Trust
S-Network
Future Vehicles
& Technology
ETF
(CARZ)
First Trust
Cloud
Computing ETF
(SKYY)
ASSETS:
Investments, at value
$401,169,482
$36,934,662
$2,976,798,942
Cash
—
—
—
Foreign currency, at value
36,496
25
—
Due from authorized participant
—
—
—
Receivables:
Reclaims
233,284
29,486
673,508
Dividends
800,417
41,228
481,198
Investment securities sold
—
—
1,005,234
Capital shares sold
—
—
—
Securities lending income
8,268
5,660
—
Prepaid expenses
—
—
—
Total Assets
402,247,947
37,011,061
2,978,958,882
 
LIABILITIES:
Due to custodian
—
—
—
Due to custodian foreign currency
—
—
—
Payables:
Licensing fees
—
—
—
Investment advisory fees
220,163
19,132
1,426,329
Audit and tax fees
—
—
—
Shareholder reporting fees
—
—
—
Trustees’ fees
—
—
—
Investment securities purchased
—
—
—
Deferred foreign capital gains tax
914,382
—
—
Collateral for securities on loan
15,467,085
1,851,885
75
Other liabilities
—
—
—
Total Liabilities
16,601,630
1,871,017
1,426,404
NET ASSETS
$385,646,317
$35,140,044
$2,977,532,478
 
NET ASSETS consist of:
Paid-in capital
$361,798,850
$51,249,065
$3,974,231,951
Par value
44,000
6,000
291,000
Accumulated distributable earnings (loss)
23,803,467
(16,115,021)
(996,990,473)
NET ASSETS
$385,646,317
$35,140,044
$2,977,532,478
NET ASSET VALUE, per share
$87.65
$58.57
$102.32
Number of shares outstanding (unlimited number of shares authorized,
par value $0.01 per share)
4,400,002
600,002
29,100,002
Investments, at cost
$363,933,340
$35,495,843
$2,357,093,417
Foreign currency, at cost (proceeds)
$36,481
$24
$—
Securities on loan, at value
$14,760,115
$1,779,595
$—
See Notes to Financial Statements
Page 46
 
First Trust
International Equity
Opportunities ETF
(FPXI)
First Trust Nasdaq
Cybersecurity ETF
(CIBR)
First Trust IPOX®
Europe Equity
Opportunities ETF
(FPXE)
First Trust Dow Jones
International Internet
ETF
(FDNI)
First Trust Bloomberg
Emerging Market
Democracies ETF
(EMDM)
$145,274,353
$6,662,750,050
$3,998,526
$38,448,015
$8,332,055
—
—
—
—
—
104
—
374
—
1,585
—
—
—
—
—
202,155
672,338
9,580
309
2,842
112,632
68,526
804
6,981
26,501
—
—
—
2,874,779
—
—
—
—
—
—
—
45,605
—
—
—
—
—
—
—
—
145,589,244
6,663,536,519
4,009,284
41,330,084
8,362,983
—
—
1,811
—
—
—
—
—
—
—
—
—
—
—
—
82,246
3,210,390
2,261
18,701
5,047
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
58,216
—
58,365,755
—
—
—
—
—
—
—
—
82,246
61,576,145
4,072
18,701
63,263
$145,506,998
$6,601,960,374
$4,005,212
$41,311,383
$8,299,720
$469,490,365
$5,937,700,063
$6,966,791
$66,740,154
$7,395,896
30,000
1,113,500
1,500
14,000
3,500
(324,013,367)
663,146,811
(2,963,079)
(25,442,771)
900,324
$145,506,998
$6,601,960,374
$4,005,212
$41,311,383
$8,299,720
$48.50
$59.29
$26.70
$29.51
$23.71
3,000,002
111,350,002
150,002
1,400,002
350,002
$115,682,186
$5,158,741,502
$3,118,619
$38,499,694
$7,248,637
$104
$—
$374
$—
$1,584
$—
$56,884,261
$—
$—
$—
See Notes to Financial Statements
Page 47
First Trust Exchange-Traded Fund II
Statements of Operations
For the Year Ended September 30, 2024
 
 
First Trust
STOXX®
European Select
Dividend Index
Fund
(FDD)
First Trust
Alerian
Disruptive
Technology Real
Estate ETF
(DTRE)
First Trust Dow
Jones Global
Select Dividend
Index Fund
(FGD)
INVESTMENT INCOME:
Dividends
$11,422,047
$581,097
$37,448,278
Securities lending income (net of fees)
—
—
—
Foreign withholding tax
(365,613)
(15,199)
(3,307,488)
Total investment income
11,056,434
565,898
34,140,790
 
EXPENSES:
Investment advisory fees
660,109
 
116,594
 (a)
2,286,619
 
Licensing fees
93,153
—
312,644
Accounting and administration fees
74,108
—
246,319
Audit and tax fees
51,026
—
57,482
Shareholder reporting fees
37,398
—
91,685
Custodian fees
19,961
—
110,308
Trustees’ fees and expenses
9,872
—
10,548
Listing fees
8,397
—
12,168
Transfer agent fees
8,251
—
28,583
Legal fees
4,200
—
15,180
Other expenses
1,920
—
10,554
Total expenses
968,395
116,594
3,182,090
Less fees waived and expenses reimbursed by the investment advisor
—
—
—
Net expenses
968,395
116,594
3,182,090
NET INVESTMENT INCOME (LOSS)
10,088,039
449,304
30,958,700
 
NET REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) on:
Investments
(8,259,897)
(330,134)
(13,880,922)
In-kind redemptions
3,375,096
699,058
10,068,868
Foreign currency transactions
(41,955)
(1,007)
(124,080)
Foreign capital gains tax
—
—
—
Net realized gain (loss)
(4,926,756)
367,917
(3,936,134)
Net change in unrealized appreciation (depreciation) on:
Investments
26,693,940
2,664,594
100,714,153
Foreign currency translation
157,350
2,048
223,304
Deferred foreign capital gains tax
—
—
—
Net change in unrealized appreciation (depreciation)
26,851,290
2,666,642
100,937,457
NET REALIZED AND UNREALIZED GAIN (LOSS)
21,924,534
3,034,559
97,001,323
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS
$32,012,573
$3,483,863
$127,960,023
 
(a)
Fund is subject to a unitary fee (see Note 3 in the Notes to Financial Statements).
See Notes to Financial Statements
Page 48
 
First Trust Global
Wind Energy ETF
(FAN)
First Trust Alerian
U.S. NextGen
Infrastructure ETF
(RBLD)
First Trust NASDAQ®
Clean Edge® Smart
Grid Infrastructure
Index Fund
(GRID)
First Trust Indxx
Global Natural
Resources Income
ETF
(FTRI)
First Trust Indxx
Global Agriculture
ETF
(FTAG)
$4,096,314
$179,404
$23,307,306
$10,380,572
$305,716
124,186
44
85,404
98,735
—
(339,207)
(2,767)
(1,481,819)
(311,345)
(19,788)
3,881,293
176,681
21,910,891
10,167,962
285,928
778,802
 
57,309
 (a)
4,538,693
 
1,343,301
 (a)
66,595
 (a)
243,785
—
1,021,000
—
—
85,278
—
479,785
—
—
62,886
—
35,916
—
—
59,678
—
145,477
—
—
31,256
—
45,358
—
—
9,913
—
11,457
—
—
9,004
—
10,102
—
—
9,735
—
51,590
—
—
4,754
—
28,051
—
—
4,456
—
15,997
215
63
1,299,547
57,309
6,383,426
1,343,516
66,658
(131,344)
—
—
—
—
1,168,203
57,309
6,383,426
1,343,516
66,658
2,713,090
119,372
15,527,465
8,824,446
219,270
(2,493,879)
363,524
(10,146,782)
(12,609,505)
(335,304)
2,661,582
—
51,361,888
2,002,085
(1,556,502)
(46,131)
(428)
(20,331)
15,212
(2,149)
—
—
—
(246,009)
(52,427)
121,572
363,096
41,194,775
(10,838,217)
(1,946,382)
41,636,413
2,195,134
262,980,225
22,237,330
1,759,174
35,091
802
50,343
9,555
(865)
—
—
—
(149,638)
(46,184)
41,671,504
2,195,936
263,030,568
22,097,247
1,712,125
41,793,076
2,559,032
304,225,343
11,259,030
(234,257)
$44,506,166
$2,678,404
$319,752,808
$20,083,476
$(14,987)
See Notes to Financial Statements
Page 49
First Trust Exchange-Traded Fund II
Statements of Operations (Continued)
For the Year Ended September 30, 2024
 
 
First Trust
Indxx NextG
ETF
(NXTG)
First Trust
S-Network
Future Vehicles
& Technology
ETF
(CARZ)
First Trust
Cloud
Computing ETF
(SKYY)
INVESTMENT INCOME:
Dividends
$10,160,624
$549,662
$14,722,227
Securities lending income (net of fees)
1,433,427
125,045
12,102
Foreign withholding tax
(1,005,002)
(55,370)
(136,007)
Total investment income
10,589,049
619,337
14,598,322
 
EXPENSES:
Investment advisory fees
2,693,527
 (a)
263,891
 (a)
17,358,724
 (a)
Licensing fees
—
—
—
Accounting and administration fees
—
—
—
Audit and tax fees
—
—
—
Shareholder reporting fees
—
—
—
Custodian fees
—
—
—
Trustees’ fees and expenses
—
—
—
Listing fees
—
—
—
Transfer agent fees
—
—
—
Legal fees
—
—
—
Other expenses
1,395
—
—
Total expenses
2,694,922
263,891
17,358,724
Less fees waived and expenses reimbursed by the investment advisor
—
—
—
Net expenses
2,694,922
263,891
17,358,724
NET INVESTMENT INCOME (LOSS)
7,894,127
355,446
(2,760,402)
 
NET REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) on:
Investments
981,329
(1,670,380)
(61,976,220)
In-kind redemptions
31,726,489
1,731,891
208,777,660
Foreign currency transactions
(77,251)
(8,299)
—
Foreign capital gains tax
(302,313)
—
—
Net realized gain (loss)
32,328,254
53,212
146,801,440
Net change in unrealized appreciation (depreciation) on:
Investments
65,407,661
5,101,301
700,097,700
Foreign currency translation
27,457
1,552
—
Deferred foreign capital gains tax
(563,781)
—
—
Net change in unrealized appreciation (depreciation)
64,871,337
5,102,853
700,097,700
NET REALIZED AND UNREALIZED GAIN (LOSS)
97,199,591
5,156,065
846,899,140
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS
$105,093,718
$5,511,511
$844,138,738
 
(a)
Fund is subject to a unitary fee (see Note 3 in the Notes to Financial Statements).
See Notes to Financial Statements
Page 50
 
First Trust
International Equity
Opportunities ETF
(FPXI)
First Trust Nasdaq
Cybersecurity ETF
(CIBR)
First Trust IPOX®
Europe Equity
Opportunities ETF
(FPXE)
First Trust Dow Jones
International Internet
ETF
(FDNI)
First Trust Bloomberg
Emerging Market
Democracies ETF
(EMDM)
$2,752,578
$71,573,828
$110,735
$222,491
$255,325
62,589
155,776
6,574
—
—
(272,681)
(4,448,223)
(12,226)
(1,639)
(25,883)
2,542,486
67,281,381
105,083
220,852
229,442
1,111,523
 (a)
36,419,444
 (a)
30,506
 (a)
183,547
 (a)
48,470
 (a)
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
1,111,523
36,419,444
30,506
183,547
48,470
—
—
—
—
—
1,111,523
36,419,444
30,506
183,547
48,470
1,430,963
30,861,937
74,577
37,305
180,972
9,444,354
(120,302,807)
190,311
(1,327,838)
(139,649)
13,617,434
530,674,113
405,131
204,558
—
(112,229)
(1,351,127)
(794)
137
(7,059)
—
—
—
—
(1,979)
22,949,559
409,020,179
594,648
(1,123,143)
(148,687)
14,951,329
1,105,809,228
559,945
12,619,911
1,293,038
5,838
10,894
580
330
243
—
—
—
—
(56,090)
14,957,167
1,105,820,122
560,525
12,620,241
1,237,191
37,906,726
1,514,840,301
1,155,173
11,497,098
1,088,504
$39,337,689
$1,545,702,238
$1,229,750
$11,534,403
$1,269,476
See Notes to Financial Statements
Page 51
First Trust Exchange-Traded Fund II
Statements of Changes in Net Assets
 
 
First Trust STOXX® European
Select Dividend Index Fund
(FDD)
First Trust Alerian Disruptive
Technology Real Estate ETF
(DTRE)
 
Year
Ended
9/30/2024 
Year
Ended
9/30/2023 
Year
Ended
9/30/2024 
Year
Ended
9/30/2023 
OPERATIONS:
Net investment income (loss)
$10,088,039
$12,525,480
$449,304
$646,160
Net realized gain (loss)
(4,926,756)
(18,442,384)
367,917
609,428
Net change in unrealized appreciation (depreciation)
26,851,290
41,409,051
2,666,642
(22,502)
Net increase (decrease) in net assets resulting from
operations
32,012,573
35,492,147
3,483,863
1,233,086
 
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment operations
(10,315,400)
(11,339,350)
(457,041)
(637,446)
 
SHAREHOLDER TRANSACTIONS:
Proceeds from shares sold
608,364
 
18,364,170
 
—
 
—
 
Cost of shares redeemed
(41,850,788)
 
(24,050,718)
 
(4,113,805)
 
(3,993,914)
 
Net increase (decrease) in net assets resulting from
shareholder transactions
(41,242,424)
(5,686,548)
(4,113,805)
(3,993,914)
Total increase (decrease) in net assets
(19,545,251)
18,466,249
(1,086,983)
(3,398,274)
 
NET ASSETS:
Beginning of period
179,516,682
161,050,433
20,631,633
24,029,907
End of period
$159,971,431
$179,516,682
$19,544,650
$20,631,633
 
CHANGES IN SHARES OUTSTANDING:
Shares outstanding, beginning of period
16,453,334
17,153,334
541,608
641,608
Shares sold
50,000
1,550,000
—
—
Shares redeemed
(3,600,000)
(2,250,000)
(100,000)
(100,000)
Shares outstanding, end of period
12,903,334
16,453,334
441,608
541,608
See Notes to Financial Statements
Page 52
 
First Trust Dow Jones Global Select
Dividend Index Fund (FGD)
First Trust Global Wind Energy ETF
(FAN)
First Trust Alerian U.S. NextGen
Infrastructure ETF (RBLD)
Year
Ended
9/30/2024 
Year
Ended
9/30/2023 
Year
Ended
9/30/2024 
Year
Ended
9/30/2023 
Year
Ended
9/30/2024 
Year
Ended
9/30/2023 
$30,958,700
$42,945,278
$2,713,090
$4,362,231
$119,372
$101,338
(3,936,134)
(41,961,288)
121,572
(2,125,560)
363,096
(244,249)
100,937,457
79,138,674
41,671,504
(2,204,813)
2,195,936
1,308,021
127,960,023
80,122,664
44,506,166
31,858
2,678,404
1,165,110
(35,000,288)
(39,597,608)
(2,828,785)
(4,348,626)
(120,587)
(97,141)
18,267,909
 
173,130,265
 
3,193,247
 
18,629,681
 
—
 
—
 
(178,536,831)
 
(75,179,466)
 
(53,618,669)
 
(52,955,982)
 
—
 
(2,150,019)
 
(160,268,922)
97,950,799
(50,425,422)
(34,326,301)
—
(2,150,019)
(67,309,187)
138,475,855
(8,748,041)
(38,643,069)
2,557,817
(1,082,050)
634,052,312
495,576,457
205,288,028
243,931,097
7,602,525
8,684,575
$566,743,125
$634,052,312
$196,539,987
$205,288,028
$10,160,342
$7,602,525
30,650,002
26,700,002
14,100,002
16,100,002
150,002
200,002
850,000
7,600,000
200,000
1,050,000
—
—
(8,200,000)
(3,650,000)
(3,450,000)
(3,050,000)
—
(50,000)
23,300,002
30,650,002
10,850,002
14,100,002
150,002
150,002
See Notes to Financial Statements
Page 53
First Trust Exchange-Traded Fund II
Statements of Changes in Net Assets (Continued)
 
 
First Trust NASDAQ® Clean
Edge® Smart Grid Infrastructure
Index Fund (GRID)
First Trust Indxx Global Natural
Resources Income ETF (FTRI)
 
Year
Ended
9/30/2024 
Year
Ended
9/30/2023 
Year
Ended
9/30/2024 
Year
Ended
9/30/2023 
OPERATIONS:
Net investment income (loss)
$15,527,465
$10,561,374
$8,824,446
$15,549,467
Net realized gain (loss)
41,194,775
13,604,477
(10,838,217)
(21,856,208)
Net change in unrealized appreciation (depreciation)
263,030,568
84,479,742
22,097,247
21,878,394
Net increase (decrease) in net assets resulting from
operations
319,752,808
108,645,593
20,083,476
15,571,653
 
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment operations
(15,201,118)
(10,318,462)
(9,644,266)
(15,107,267)
 
SHAREHOLDER TRANSACTIONS:
Proceeds from shares sold
861,662,450
 
503,705,236
 
—
 
97,759,506
 
Cost of shares redeemed
(339,386,890)
 
(120,599,580)
 
(104,700,880)
 
(65,132,103)
 
Net increase (decrease) in net assets resulting from
shareholder transactions
522,275,560
383,105,656
(104,700,880)
32,627,403
Total increase (decrease) in net assets
826,827,250
481,432,787
(94,261,670)
33,091,789
 
NET ASSETS:
Beginning of period
1,019,862,793
538,430,006
232,839,231
199,747,442
End of period
$1,846,690,043
$1,019,862,793
$138,577,561
$232,839,231
 
CHANGES IN SHARES OUTSTANDING:
Shares outstanding, beginning of period
10,850,002
7,150,002
18,350,002
16,350,002
Shares sold
7,300,000
5,000,000
—
7,050,000
Shares redeemed
(3,600,000)
(1,300,000)
(8,100,000)
(5,050,000)
Shares outstanding, end of period
14,550,002
10,850,002
10,250,002
18,350,002
See Notes to Financial Statements
Page 54
 
First Trust Indxx Global Agriculture
ETF (FTAG)
First Trust Indxx NextG ETF (NXTG)
First Trust S-Network Future Vehicles
& Technology ETF (CARZ)
Year
Ended
9/30/2024 
Year
Ended
9/30/2023 
Year
Ended
9/30/2024 
Year
Ended
9/30/2023 
Year
Ended
9/30/2024 
Year
Ended
9/30/2023 
$219,270
$522,968
$7,894,127
$8,243,363
$355,446
$606,817
(1,946,382)
(1,315,124)
32,328,254
5,544,036
53,212
(1,994,682)
1,712,125
1,710,279
64,871,337
88,396,643
5,102,853
11,557,872
(14,987)
918,123
105,093,718
102,184,042
5,511,511
10,170,007
(186,749)
(569,279)
(7,852,793)
(6,776,282)
(361,081)
(653,962)
1,229,182
 
—
 
40,531,318
 
25,784,327
 
—
 
11,459,812
 
(7,527,316)
 
(9,949,092)
 
(133,056,018)
 
(211,317,883)
 
(11,182,612)
 
(20,218,555)
 
(6,298,134)
(9,949,092)
(92,524,700)
(185,533,556)
(11,182,612)
(8,758,743)
(6,499,870)
(9,600,248)
4,716,225
(90,125,796)
(6,032,182)
757,302
12,769,526
22,369,774
380,930,092
471,055,888
41,172,226
40,414,924
$6,269,656
$12,769,526
$385,646,317
$380,930,092
$35,140,044
$41,172,226
489,928
839,928
5,600,002
8,450,002
800,002
1,000,002
50,000
—
500,000
350,000
—
200,000
(300,000)
(350,000)
(1,700,000)
(3,200,000)
(200,000)
(400,000)
239,928
489,928
4,400,002
5,600,002
600,002
800,002
See Notes to Financial Statements
Page 55
First Trust Exchange-Traded Fund II
Statements of Changes in Net Assets (Continued)
 
 
First Trust Cloud Computing
ETF (SKYY)
First Trust International Equity
Opportunities ETF (FPXI)
 
Year
Ended
9/30/2024 
Year
Ended
9/30/2023 
Year
Ended
9/30/2024 
Year
Ended
9/30/2023 
OPERATIONS:
Net investment income (loss)
$(2,760,402)
$(1,895,329)
$1,430,963
$1,262,018
Net realized gain (loss)
146,801,440
(521,520,610)
22,949,559
(25,133,357)
Net change in unrealized appreciation (depreciation)
700,097,700
1,145,964,050
14,957,167
51,615,764
Net increase (decrease) in net assets resulting from
operations
844,138,738
622,548,111
39,337,689
27,744,425
 
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment operations
—
—
(1,443,011)
(1,774,581)
 
SHAREHOLDER TRANSACTIONS:
Proceeds from shares sold
103,479,599
 
141,128,878
 
—
 
—
 
Cost of shares redeemed
(616,130,871)
 
(1,072,205,046)
 
(59,878,665)
 
(179,900,143)
 
Net increase (decrease) in net assets resulting from
shareholder transactions
(512,651,272)
(931,076,168)
(59,878,665)
(179,900,143)
Total increase (decrease) in net assets
331,487,466
(308,528,057)
(21,983,987)
(153,930,299)
 
NET ASSETS:
Beginning of period
2,646,045,012
2,954,573,069
167,490,985
321,421,284
End of period
$2,977,532,478
$2,646,045,012
$145,506,998
$167,490,985
 
CHANGES IN SHARES OUTSTANDING:
Shares outstanding, beginning of period
34,850,002
49,000,002
4,350,002
9,000,002
Shares sold
1,150,000
2,150,000
—
—
Shares redeemed
(6,900,000)
(16,300,000)
(1,350,000)
(4,650,000)
Shares outstanding, end of period
29,100,002
34,850,002
3,000,002
4,350,002
See Notes to Financial Statements
Page 56
 
First Trust Nasdaq Cybersecurity ETF
(CIBR)
First Trust IPOX® Europe Equity
Opportunities ETF (FPXE)
First Trust Dow Jones International
Internet ETF (FDNI)
Year
Ended
9/30/2024 
Year
Ended
9/30/2023 
Year
Ended
9/30/2024 
Year
Ended
9/30/2023 
Year
Ended
9/30/2024 
Year
Ended
9/30/2023 
$30,861,937
$18,472,267
$74,577
$78,295
$37,305
$111,992
409,020,179
(98,232,132)
594,648
42,118
(1,123,143)
(16,646,891)
1,105,820,122
872,797,589
560,525
1,146,427
12,620,241
18,913,036
1,545,702,238
793,037,724
1,229,750
1,266,840
11,534,403
2,378,137
(29,884,371)
(18,090,451)
(101,436)
(74,090)
(76,231)
(121,095)
1,414,089,973
 
126,745,936
 
—
 
—
 
7,096,675
 
5,152,332
 
(1,292,531,299)
 
(668,192,009)
 
(1,287,272)
 
(2,159,634)
 
(3,451,263)
 
(10,433,740)
 
121,558,674
(541,446,073)
(1,287,272)
(2,159,634)
3,645,412
(5,281,408)
1,637,376,541
233,501,200
(158,958)
(966,884)
15,103,584
(3,024,366)
4,964,583,833
4,731,082,633
4,164,170
5,131,054
26,207,799
29,232,165
$6,601,960,374
$4,964,583,833
$4,005,212
$4,164,170
$41,311,383
$26,207,799
109,250,002
122,700,002
200,002
300,002
1,250,002
1,500,002
25,150,000
2,900,000
—
—
300,000
200,000
(23,050,000)
(16,350,000)
(50,000)
(100,000)
(150,000)
(450,000)
111,350,002
109,250,002
150,002
200,002
1,400,002
1,250,002
See Notes to Financial Statements
Page 57
First Trust Exchange-Traded Fund II
Statements of Changes in Net Assets (Continued)
 
 
First Trust Bloomberg Emerging
Market Democracies ETF
(EMDM)
 
Year
Ended
9/30/2024 
Period
Ended
9/30/2023 (a)
OPERATIONS:
Net investment income (loss)
$180,972
$41,926
Net realized gain (loss)
(148,687)
(11,956)
Net change in unrealized appreciation (depreciation)
1,237,191
(211,891)
Net increase (decrease) in net assets resulting from operations
1,269,476
(181,921)
 
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment operations
(160,950)
(26,281)
 
SHAREHOLDER TRANSACTIONS:
Proceeds from shares sold
4,242,136
 
3,157,260
 
Cost of shares redeemed
—
 
—
 
Net increase (decrease) in net assets resulting from shareholder transactions
4,242,136
3,157,260
Total increase (decrease) in net assets
5,350,662
2,949,058
 
NET ASSETS:
Beginning of period
2,949,058
—
End of period
$8,299,720
$2,949,058
 
CHANGES IN SHARES OUTSTANDING:
Shares outstanding, beginning of period
150,002
—
Shares sold
200,000
150,002
Shares redeemed
—
—
Shares outstanding, end of period
350,002
150,002
 
(a)
Inception date is March 2, 2023, which is consistent with the commencement of investment operations and is the date the initial
creation units were established.
See Notes to Financial Statements
Page 58
First Trust Exchange-Traded Fund II
Financial Highlights
For a share outstanding throughout each period
First Trust STOXX® European Select Dividend Index Fund (FDD)
 
 
Year Ended September 30,
 
2024
2023
2022
2021
2020
Net asset value, beginning of period
$10.91
$9.39
$13.88
$10.27
$12.75
Income from investment operations:
Net investment income (loss)
0.72
 (a)
0.78
 (a)
0.73
 
0.52
 
0.52
 
Net realized and unrealized gain (loss)
1.52
 
1.44
 
(4.52
) 
3.61
 
(2.50
) 
Total from investment operations
2.24
2.22
(3.79
)
4.13
(1.98
)
Distributions paid to shareholders from:
Net investment income
(0.75
) 
(0.70
) 
(0.70
) 
(0.52
) 
(0.50
) 
Net asset value, end of period
$12.40
 
$10.91
 
$9.39
 
$13.88
 
$10.27
 
Total return (b)
20.98
% 
23.52
% 
(27.88
)% 
40.19
% 
(15.64
)% 
 
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000’s)
$159,971
 
$179,517
 
$161,050
 
$286,031
 
$180,227
 
Ratio of total expenses to average net assets
0.59
% 
0.59
% 
0.58
% 
0.58
% 
0.57
% 
Ratio of net investment income (loss) to average net assets
6.11
% 
6.82
% 
5.36
% 
4.06
% 
3.84
% 
Portfolio turnover rate (c)
43
% 
49
% 
57
% 
58
% 
98
% 
 
(a)
Based on average shares outstanding.
(b)
Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all
distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not
reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is
calculated for the time period presented and is not annualized for periods of less than a year.
(c)
Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities
received or delivered from processing creations or redemptions and in-kind transactions.
See Notes to Financial Statements
Page 59
First Trust Exchange-Traded Fund II
Financial Highlights (Continued)
For a share outstanding throughout each period
First Trust Alerian Disruptive Technology Real Estate ETF (DTRE)
 
 
Year Ended September 30,
 
2024
2023
2022
2021
2020
Net asset value, beginning of period
$38.09
$37.45
$50.11
$38.82
$49.44
Income from investment operations:
Net investment income (loss)
0.94
 (a)
1.05
 (a)
0.89
 
0.89
 
0.62
 
Net realized and unrealized gain (loss)
6.17
 
0.63
 
(11.90
) 
10.74
 
(9.27
) 
Total from investment operations
7.11
1.68
(11.01
)
11.63
(8.65
)
Distributions paid to shareholders from:
Net investment income
(0.94
) 
(1.04
) 
(1.65
) 
(0.34
) 
(1.97
) 
Net asset value, end of period
$44.26
 
$38.09
 
$37.45
 
$50.11
 
$38.82
 
Total return (b)
18.88
% 
4.42
% 
(22.72
)% 
29.95
% 
(18.12
)% 
 
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000’s)
$19,545
 
$20,632
 
$24,030
 
$34,657
 
$32,671
 
Ratio of total expenses to average net assets
0.60
% 
0.60
% 
0.96
% 
0.92
% 
0.85
% 
Ratio of net expenses to average net assets
0.60
% 
0.60
% 
0.60
% 
0.60
% 
0.60
% 
Ratio of net investment income (loss) to average net assets
2.31
% 
2.61
% 
2.08
% 
2.21
% 
2.52
% 
Portfolio turnover rate (c)
28
% 
39
% 
70
% (d)
11
% 
7
% 
 
(a)
Based on average shares outstanding.
(b)
Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all
distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not
reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is
calculated for the time period presented and is not annualized for periods of less than a year. The total returns would have been lower if certain
fees had not been waived and expenses reimbursed by the investment advisor.
(c)
Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities
received or delivered from processing creations or redemptions and in-kind transactions.
(d)
The variation in the portfolio turnover rate is due to the change in the Fund’s underlying index effective September 30, 2022, which resulted in a
complete rebalance of the Fund’s portfolio.
See Notes to Financial Statements
Page 60
First Trust Exchange-Traded Fund II
Financial Highlights (Continued)
For a share outstanding throughout each period
First Trust Dow Jones Global Select Dividend Index Fund (FGD)
 
 
Year Ended September 30,
 
2024
2023
2022
2021
2020
Net asset value, beginning of period
$20.69
$18.56
$24.97
$17.85
$22.90
Income from investment operations:
Net investment income (loss)
1.21
 (a)
1.48
 (a)
1.33
 
1.22
 
1.30
 
Net realized and unrealized gain (loss)
3.81
 
2.00
 
(6.38
) 
7.10
 
(5.04
) 
Total from investment operations
5.02
3.48
(5.05
)
8.32
(3.74
)
Distributions paid to shareholders from:
Net investment income
(1.39
) 
(1.35
) 
(1.36
) 
(1.20
) 
(1.31
) 
Net asset value, end of period
$24.32
 
$20.69
 
$18.56
 
$24.97
 
$17.85
 
Total return (b)
24.83
% 
18.65
% 
(20.98
)% 
46.94
% 
(16.33
)% 
 
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000’s)
$566,743
 
$634,052
 
$495,576
 
$504,454
 
$344,489
 
Ratio of total expenses to average net assets
0.56
% 
0.56
% 
0.56
% 
0.57
% 
0.57
% 
Ratio of net investment income (loss) to average net assets
5.42
% 
6.79
% 
5.74
% 
5.11
% 
6.16
% 
Portfolio turnover rate (c)
36
% 
40
% 
35
% 
38
% 
67
% 
 
(a)
Based on average shares outstanding.
(b)
Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all
distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not
reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is
calculated for the time period presented and is not annualized for periods of less than a year.
(c)
Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities
received or delivered from processing creations or redemptions and in-kind transactions.
See Notes to Financial Statements
Page 61
First Trust Exchange-Traded Fund II
Financial Highlights (Continued)
For a share outstanding throughout each period
First Trust Global Wind Energy ETF (FAN)
 
 
Year Ended September 30,
 
2024
2023
2022
2021
2020
Net asset value, beginning of period
$14.56
$15.15
$20.92
$17.45
$13.13
Income from investment operations:
Net investment income (loss)
0.22
 (a)
0.28
 (a)
0.25
 
0.28
 
0.26
 
Net realized and unrealized gain (loss)
3.57
 
(0.58
) 
(5.75
) 
3.52
 
4.33
 
Total from investment operations
3.79
(0.30
)
(5.50
)
3.80
4.59
Distributions paid to shareholders from:
Net investment income
(0.24
) 
(0.29
) 
(0.27
) 
(0.33
) 
(0.27
) 
Net asset value, end of period
$18.11
 
$14.56
 
$15.15
 
$20.92
 
$17.45
 
Total return (b)
26.18
% 
(2.21
)% 
(26.43
)% 
21.76
% 
35.42
% 
 
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000’s)
$196,540
 
$205,288
 
$243,931
 
$385,920
 
$205,075
 
Ratio of total expenses to average net assets
0.67
% 
0.64
% 
0.61
% 
0.62
% 
0.66
% 
Ratio of net expenses to average net assets
0.60
% 
0.60
% 
0.60
% 
0.60
% 
0.60
% 
Ratio of net investment income (loss) to average net assets
1.39
% 
1.64
% 
1.28
% 
1.34
% 
1.86
% 
Portfolio turnover rate (c)
20
% 
25
% 
21
% 
31
% 
42
% 
 
(a)
Based on average shares outstanding.
(b)
Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all
distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not
reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is
calculated for the time period presented and is not annualized for periods of less than a year. The total returns would have been lower if certain
fees had not been waived and expenses reimbursed by the investment advisor.
(c)
Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities
received or delivered from processing creations or redemptions and in-kind transactions.
See Notes to Financial Statements
Page 62
First Trust Exchange-Traded Fund II
Financial Highlights (Continued)
For a share outstanding throughout each period
First Trust Alerian U.S. NextGen Infrastructure ETF (RBLD)
 
 
Year Ended September 30,
 
2024
2023
2022
2021
2020
Net asset value, beginning of period
$50.68
$43.42
$53.95
$42.07
$47.05
Income from investment operations:
Net investment income (loss)
0.80
 (a)
0.67
 (a)
1.01
 
0.87
 
1.28
 
Net realized and unrealized gain (loss)
17.05
 
7.24
 
(10.50
) 
11.79
 
(4.93
) 
Total from investment operations
17.85
7.91
(9.49
)
12.66
(3.65
)
Distributions paid to shareholders from:
Net investment income
(0.80
) 
(0.65
) 
(1.04
) 
(0.78
) 
(1.33
) 
Net asset value, end of period
$67.73
 
$50.68
 
$43.42
 
$53.95
 
$42.07
 
Total return (b)
35.42
% 
18.23
% 
(17.80
)% 
30.19
% 
(7.52
)% 
 
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000’s)
$10,160
 
$7,603
 
$8,685
 
$10,790
 
$6,310
 
Ratio of total expenses to average net assets
0.65
% 
0.65
% 
0.86
% 
1.42
% 
1.43
% 
Ratio of net expenses to average net assets
0.65
% 
0.65
% 
0.69
% 
0.70
% 
0.70
% 
Ratio of net investment income (loss) to average net assets
1.35
% 
1.33
% 
1.68
% 
1.81
% 
2.68
% 
Portfolio turnover rate (c)
26
% 
32
% 
92
% (d)
18
% 
20
% 
 
(a)
Based on average shares outstanding.
(b)
Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all
distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not
reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is
calculated for the time period presented and is not annualized for periods of less than a year. The total returns would have been lower if certain
fees had not been waived and expenses reimbursed by the investment advisor.
(c)
Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities
received or delivered from processing creations or redemptions and in-kind transactions.
(d)
The variation in the portfolio turnover rate is due to the change in the Fund’s underlying index effective July 29, 2022, which resulted in a
complete rebalance of the Fund’s portfolio.
See Notes to Financial Statements
Page 63
First Trust Exchange-Traded Fund II
Financial Highlights (Continued)
For a share outstanding throughout each period
First Trust NASDAQ® Clean Edge® Smart Grid Infrastructure Index Fund (GRID)
 
 
Year Ended September 30,
 
2024
2023
2022
2021
2020
Net asset value, beginning of period
$94.00
$75.30
$92.48
$62.87
$49.51
Income from investment operations:
Net investment income (loss)
1.51
 (a)
1.27
 (a)
0.93
 
0.64
 
0.58
 
Net realized and unrealized gain (loss)
32.76
 
18.64
 
(17.24
) 
29.73
 
13.27
 
Total from investment operations
34.27
19.91
(16.31
)
30.37
13.85
Distributions paid to shareholders from:
Net investment income
(1.35
) 
(1.21
) 
(0.87
) 
(0.76
) 
(0.49
) 
Net asset value, end of period
$126.92
 
$94.00
 
$75.30
 
$92.48
 
$62.87
 
Total return (b)
36.62
% 
26.39
% 
(17.70
)% 
48.35
% 
28.10
% 
 
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000’s)
$1,846,690
 
$1,019,863
 
$538,430
 
$550,262
 
$56,579
 
Ratio of total expenses to average net assets
0.56
% 
0.57
% 
0.58
% 
0.63
% 
0.75
% 
Ratio of net expenses to average net assets
0.56
% 
0.57
% 
0.58
% 
0.63
% 
0.70
% 
Ratio of net investment income (loss) to average net assets
1.37
% 
1.34
% 
1.02
% 
1.11
% 
1.30
% 
Portfolio turnover rate (c)
13
% 
23
% 
33
% 
20
% 
53
% 
 
(a)
Based on average shares outstanding.
(b)
Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all
distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not
reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is
calculated for the time period presented and is not annualized for periods of less than a year. The total returns would have been lower if certain
fees had not been waived and expenses reimbursed by the investment advisor.
(c)
Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities
received or delivered from processing creations or redemptions and in-kind transactions.
See Notes to Financial Statements
Page 64
First Trust Exchange-Traded Fund II
Financial Highlights (Continued)
For a share outstanding throughout each period
First Trust Indxx Global Natural Resources Income ETF (FTRI)
 
 
Year Ended September 30,
 
2024
2023
2022
2021
2020
Net asset value, beginning of period
$12.69
$12.22
$12.97
$9.57
$11.47
Income from investment operations:
Net investment income (loss)
0.60
 (a)
0.79
 (a)
1.17
 
0.80
 
0.53
 
Net realized and unrealized gain (loss)
0.91
 
0.46
 
(0.67
) 
3.29
 (b)
(1.86
) 
Total from investment operations
1.51
1.25
0.50
4.09
(1.33
)
Distributions paid to shareholders from:
Net investment income
(0.68
) 
(0.78
) 
(1.25
) 
(0.69
) 
(0.57
) 
Net asset value, end of period
$13.52
 
$12.69
 
$12.22
 
$12.97
 
$9.57
 
Total return (c)
12.11
% 
10.17
% 
3.27
% 
42.87
% 
(11.80
)% 
 
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000’s)
$138,578
 
$232,839
 
$199,747
 
$36,312
 
$5,740
 
Ratio of total expenses to average net assets
0.70
% 
0.70
% 
0.70
% 
0.70
% 
0.70
% 
Ratio of net investment income (loss) to average net assets
4.60
% 
5.93
% 
11.85
% 
9.06
% 
4.94
% 
Portfolio turnover rate (d)
71
% 
82
% 
69
% 
99
% 
66
% 
 
(a)
Based on average shares outstanding.
(b)
The per share amount does not correlate with the aggregate realized and unrealized gain (loss) due to the timing of the Fund share sales and
repurchases in relation to market value fluctuation of the underlying investments.
(c)
Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all
distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not
reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is
calculated for the time period presented and is not annualized for periods of less than a year.
(d)
Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities
received or delivered from processing creations or redemptions and in-kind transactions.
See Notes to Financial Statements
Page 65
First Trust Exchange-Traded Fund II
Financial Highlights (Continued)
For a share outstanding throughout each period
First Trust Indxx Global Agriculture ETF (FTAG)
 
 
Year Ended September 30,
 
2024
2023
2022
2021
2020
Net asset value, beginning of period
$26.06
$26.63
$29.53
$21.73
$22.87
Income from investment operations:
Net investment income (loss)
0.58
 (a)
0.76
 (a)
0.56
 
0.45
 
0.45
 
Net realized and unrealized gain (loss)
(0.01
) 
(0.37
) (b)
(2.97
) 
7.78
 
(1.20
) 
Total from investment operations
0.57
0.39
(2.41
)
8.23
(0.75
)
Distributions paid to shareholders from:
Net investment income
(0.50
) 
(0.96
) 
(0.49
) 
(0.43
) 
(0.39
) 
Net asset value, end of period
$26.13
 
$26.06
 
$26.63
 
$29.53
 
$21.73
 
Total return (c)
2.27
% 
1.35
% 
(8.28
)% 
37.94
% 
(3.19
)% 
 
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000’s)
$6,270
 
$12,770
 
$22,370
 
$5,609
 
$3,040
 
Ratio of total expenses to average net assets
0.70
% 
0.70
% 
0.70
% 
0.70
% 
0.70
% 
Ratio of net investment income (loss) to average net assets
2.30
% 
2.66
% 
2.50
% 
1.84
% 
2.16
% 
Portfolio turnover rate (d)
11
% 
14
% 
26
% 
12
% 
17
% 
 
(a)
Based on average shares outstanding.
(b)
The per share amount does not correlate with the aggregate realized and unrealized gain (loss) due to the timing of the Fund share sales and
repurchases in relation to market value fluctuation of the underlying investments.
(c)
Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all
distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not
reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is
calculated for the time period presented and is not annualized for periods of less than a year.
(d)
Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities
received or delivered from processing creations or redemptions and in-kind transactions.
See Notes to Financial Statements
Page 66
First Trust Exchange-Traded Fund II
Financial Highlights (Continued)
For a share outstanding throughout each period
First Trust Indxx NextG ETF (NXTG)
 
 
Year Ended September 30,
 
2024
2023
2022
2021
2020
Net asset value, beginning of period
$68.02
$55.75
$76.44
$59.05
$50.26
Income from investment operations:
Net investment income (loss)
1.59
 (a)
1.23
 (a)
1.72
 
0.95
 
0.69
 
Net realized and unrealized gain (loss)
19.65
 
12.14
 
(20.13
) 
17.10
 
8.79
 
Total from investment operations
21.24
13.37
(18.41
)
18.05
9.48
Distributions paid to shareholders from:
Net investment income
(1.61
) 
(1.10
) 
(1.88
) 
(0.62
) 
(0.69
) 
Net realized gain
—
 
—
 
(0.40
) 
(0.04
) 
—
 
Total distributions
(1.61
) 
(1.10
) 
(2.28
) 
(0.66
) 
(0.69
) 
Net asset value, end of period
$87.65
 
$68.02
 
$55.75
 
$76.44
 
$59.05
 
Total return (b)
31.44
% 
24.01
% 
(24.71
)% 
30.62
% 
18.97
% 
 
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000’s)
$385,646
 
$380,930
 
$471,056
 
$1,081,610
 
$590,535
 
Ratio of total expenses to average net assets
0.70
% 
0.70
% 
0.70
% 
0.70
% 
0.70
% 
Ratio of net investment income (loss) to average net assets
2.05
% 
1.86
% 
2.12
% 
1.42
% 
1.52
% 
Portfolio turnover rate (c)
17
% 
14
% 
21
% 
27
% 
30
% 
 
(a)
Based on average shares outstanding.
(b)
Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all
distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not
reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is
calculated for the time period presented and is not annualized for periods of less than a year.
(c)
Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities
received or delivered from processing creations or redemptions and in-kind transactions.
See Notes to Financial Statements
Page 67
First Trust Exchange-Traded Fund II
Financial Highlights (Continued)
For a share outstanding throughout each period
First Trust S-Network Future Vehicles & Technology ETF (CARZ)
 
 
Year Ended September 30,
 
2024
2023
2022
2021
2020
Net asset value, beginning of period
$51.47
$40.41
$58.17
$39.00
$32.04
Income from investment operations:
Net investment income (loss)
0.53
 (a)
0.69
 (a)
1.38
 
0.60
 
0.34
 
Net realized and unrealized gain (loss)
7.12
 
11.18
 
(17.67
) 
19.04
 
7.07
 
Total from investment operations
7.65
11.87
(16.29
)
19.64
7.41
Distributions paid to shareholders from:
Net investment income
(0.55
) 
(0.81
) 
(1.47
) 
(0.47
) 
(0.45
) 
Net asset value, end of period
$58.57
 
$51.47
 
$40.41
 
$58.17
 
$39.00
 
Total return (b)
14.87
% 
29.47
% 
(28.66
)% 
50.43
% 
23.33
% 
 
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000’s)
$35,140
 
$41,172
 
$40,415
 
$63,989
 
$29,246
 
Ratio of total expenses to average net assets
0.70
% 
0.70
% 
0.70
% 
0.70
% 
0.70
% 
Ratio of net investment income (loss) to average net assets
0.94
% 
1.41
% 
2.57
% 
1.17
% 
1.09
% 
Portfolio turnover rate (c)
32
% 
39
% 
133
% (d)
42
% 
36
% 
 
(a)
Based on average shares outstanding.
(b)
Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all
distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not
reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is
calculated for the time period presented and is not annualized for periods of less than a year.
(c)
Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities
received or delivered from processing creations or redemptions and in-kind transactions.
(d)
The variation in the portfolio turnover rate is due to the change in the Fund’s underlying index effective January 26, 2022, which resulted in a
complete rebalance of the Fund’s portfolio.
See Notes to Financial Statements
Page 68
First Trust Exchange-Traded Fund II
Financial Highlights (Continued)
For a share outstanding throughout each period
First Trust Cloud Computing ETF (SKYY)
 
 
Year Ended September 30,
 
2024
2023
2022
2021
2020
Net asset value, beginning of period
$75.93
$60.30
$105.40
$78.48
$56.39
Income from investment operations:
Net investment income (loss)
(0.09
) (a)
(0.05
) (a)
0.79
 
0.15
 
0.16
 
Net realized and unrealized gain (loss)
26.48
 
15.68
 
(45.08
) 
26.95
 
22.10
 
Total from investment operations
26.39
15.63
(44.29
)
27.10
22.26
Distributions paid to shareholders from:
Net investment income
—
 
—
 
(0.81
) 
(0.18
) 
(0.17
) 
Net asset value, end of period
$102.32
 
$75.93
 
$60.30
 
$105.40
 
$78.48
 
Total return (b)
34.76
% 
25.92
% 
(42.32
)% 
34.55
% 
39.54
% 
 
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000’s)
$2,977,532
 
$2,646,045
 
$2,954,573
 
$6,239,449
 
$4,963,825
 
Ratio of total expenses to average net assets
0.60
% 
0.60
% 
0.60
% 
0.60
% 
0.60
% 
Ratio of net investment income (loss) to average net
assets
(0.10
)% 
(0.07
)% 
0.96
% 
0.16
% 
0.24
% 
Portfolio turnover rate (c)
35
% 
34
% 
42
% 
33
% 
35
% 
 
(a)
Based on average shares outstanding.
(b)
Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all
distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not
reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is
calculated for the time period presented and is not annualized for periods of less than a year.
(c)
Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities
received or delivered from processing creations or redemptions and in-kind transactions.
See Notes to Financial Statements
Page 69
First Trust Exchange-Traded Fund II
Financial Highlights (Continued)
For a share outstanding throughout each period
First Trust International Equity Opportunities ETF (FPXI)
 
 
Year Ended September 30,
 
2024
2023
2022
2021
2020
Net asset value, beginning of period
$38.50
$35.71
$64.09
$56.64
$36.39
Income from investment operations:
Net investment income (loss)
0.40
 (a)
0.21
 (a)
0.54
 
0.40
 
0.11
 
Net realized and unrealized gain (loss)
10.03
 
2.91
 
(28.51
) 
7.39
 
20.32
 (b)
Total from investment operations
10.43
3.12
(27.97
)
7.79
20.43
Distributions paid to shareholders from:
Net investment income
(0.43
) 
(0.33
) 
(0.41
) 
(0.34
) 
(0.18
) 
Net asset value, end of period
$48.50
 
$38.50
 
$35.71
 
$64.09
 
$56.64
 
Total return (c)
27.15
% 
8.72
% 
(43.78
)% 
13.73
% 
56.24
% (b)
 
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000’s)
$145,507
 
$167,491
 
$321,421
 
$1,163,259
 
$356,803
 
Ratio of total expenses to average net assets
0.70
% 
0.70
% 
0.70
% 
0.70
% 
0.70
% 
Ratio of net investment income (loss) to average net assets
0.90
% 
0.53
% 
0.74
% 
0.76
% 
0.38
% 
Portfolio turnover rate (d)
106
% 
133
% 
119
% 
118
% 
114
% 
 
(a)
Based on average shares outstanding.
(b)
The Fund received a payment from the advisor in the amount of $806, which represents less than $0.01 per share. Since the advisor reimbursed
the Fund, there was no effect on the Fund’s total return.
(c)
Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all
distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not
reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is
calculated for the time period presented and is not annualized for periods of less than a year.
(d)
Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities
received or delivered from processing creations or redemptions and in-kind transactions.
See Notes to Financial Statements
Page 70
First Trust Exchange-Traded Fund II
Financial Highlights (Continued)
For a share outstanding throughout each period
First Trust Nasdaq Cybersecurity ETF (CIBR)
 
 
Year Ended September 30,
 
2024
2023
2022
2021
2020
Net asset value, beginning of period
$45.44
$38.56
$48.80
$34.78
$27.63
Income from investment operations:
Net investment income (loss)
0.27
 (a)
0.16
 (a)
0.31
 
0.04
 
0.50
 
Net realized and unrealized gain (loss)
13.85
 
6.88
 
(10.25
) 
14.04
 
7.16
 
Total from investment operations
14.12
7.04
(9.94
)
14.08
7.66
Distributions paid to shareholders from:
Net investment income
(0.27
) 
(0.16
) 
(0.30
) 
(0.06
) 
(0.51
) 
Net asset value, end of period
$59.29
 
$45.44
 
$38.56
 
$48.80
 
$34.78
 
Total return (b)
31.12
% 
18.29
% 
(20.53
)% 
40.50
% 
28.27
% 
 
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000’s)
$6,601,960
 
$4,964,584
 
$4,731,083
 
$4,770,298
 
$2,178,988
 
Ratio of total expenses to average net assets
0.59
% 
0.59
% 
0.60
% 
0.60
% 
0.60
% 
Ratio of net investment income (loss) to average net
assets
0.50
% 
0.38
% 
0.63
% 
0.07
% 
1.54
% 
Portfolio turnover rate (c)
39
% 
30
% 
54
% 
35
% 
46
% 
 
(a)
Based on average shares outstanding.
(b)
Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all
distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not
reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is
calculated for the time period presented and is not annualized for periods of less than a year.
(c)
Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities
received or delivered from processing creations or redemptions and in-kind transactions.
See Notes to Financial Statements
Page 71
First Trust Exchange-Traded Fund II
Financial Highlights (Continued)
For a share outstanding throughout each period
First Trust IPOX® Europe Equity Opportunities ETF (FPXE)
 
 
Year Ended September 30,
 
2024
2023
2022
2021
2020
Net asset value, beginning of period
$20.82
$17.10
$30.55
$24.88
$19.66
Income from investment operations:
Net investment income (loss)
0.41
 (a)
0.30
 (a)
0.36
 
0.25
 
0.22
 
Net realized and unrealized gain (loss)
6.06
 
3.72
 
(13.43
) 
5.75
 
5.30
 
Total from investment operations
6.47
4.02
(13.07
)
6.00
5.52
Distributions paid to shareholders from:
Net investment income
(0.59
) 
(0.30
) 
(0.38
) 
(0.33
) 
(0.30
) 
Net asset value, end of period
$26.70
 
$20.82
 
$17.10
 
$30.55
 
$24.88
 
Total return (b)
31.38
% 
23.49
% 
(42.95
)% 
24.19
% 
28.33
% 
 
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000’s)
$4,005
 
$4,164
 
$5,131
 
$10,692
 
$2,488
 
Ratio of total expenses to average net assets
0.70
% 
0.70
% 
0.70
% 
0.70
% 
0.70
% 
Ratio of net investment income (loss) to average net assets
1.71
% 
1.42
% 
1.31
% 
0.51
% 
0.74
% 
Portfolio turnover rate (c)
107
% 
119
% 
118
% 
118
% 
63
% 
 
(a)
Based on average shares outstanding.
(b)
Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all
distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not
reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is
calculated for the time period presented and is not annualized for periods of less than a year.
(c)
Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities
received or delivered from processing creations or redemptions and in-kind transactions.
See Notes to Financial Statements
Page 72
First Trust Exchange-Traded Fund II
Financial Highlights (Continued)
For a share outstanding throughout each period
First Trust Dow Jones International Internet ETF (FDNI)
 
 
Year Ended September 30,
 
2024
2023
2022
2021
2020
Net asset value, beginning of period
$20.97
$19.49
$39.96
$39.08
$21.02
Income from investment operations:
Net investment income (loss)
0.03
 (a)
0.08
 (a)
0.00
 (a) (b)
(0.18
) 
(0.03
) 
Net realized and unrealized gain (loss)
8.58
 
1.49
 
(20.47
) 
1.13
 (c)
18.40
 
Total from investment operations
8.61
1.57
(20.47
)
0.95
18.37
Distributions paid to shareholders from:
Net investment income
(0.07
) 
(0.09
) 
—
 
(0.07
) 
(0.31
) 
Net asset value, end of period
$29.51
 
$20.97
 
$19.49
 
$39.96
 
$39.08
 
Total return (d)
41.14
% 
7.99
% 
(51.23
)% 
2.42
% 
88.27
% 
 
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000’s)
$41,311
 
$26,208
 
$29,232
 
$103,903
 
$48,850
 
Ratio of total expenses to average net assets
0.65
% 
0.65
% 
0.65
% 
0.65
% 
0.65
% 
Ratio of net investment income (loss) to average net assets
0.13
% 
0.37
% 
0.00
% (e)
(0.55
)% 
(0.50
)% 
Portfolio turnover rate (f)
33
% 
65
% 
29
% 
34
% 
23
% 
 
(a)
Based on average shares outstanding.
(b)
Amount represents less than $0.01.
(c)
The per share amount does not correlate with the aggregate realized and unrealized gain (loss) due to the timing of the Fund share sales and
repurchases in relation to market value fluctuation of the underlying investments.
(d)
Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all
distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not
reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is
calculated for the time period presented and is not annualized for periods of less than a year.
(e)
Amount is less than 0.01%.
(f)
Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities
received or delivered from processing creations or redemptions and in-kind transactions.
See Notes to Financial Statements
Page 73
First Trust Exchange-Traded Fund II
Financial Highlights (Continued)
For a share outstanding throughout each period
First Trust Bloomberg Emerging Market Democracies ETF (EMDM)
 
 
Year
Ended
9/30/2024
Period
Ended
9/30/2023 (a)
 
Net asset value, beginning of period
$19.66
$19.81
Income from investment operations:
Net investment income (loss) (b)
0.62
 
0.49
 
Net realized and unrealized gain (loss)
3.94
 
(0.31
) 
Total from investment operations
4.56
0.18
Distributions paid to shareholders from:
Net investment income
(0.51
) 
(0.33
) 
Net asset value, end of period
$23.71
 
$19.66
 
Total return (c)
23.28
% 
0.83
% 
 
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000’s)
$8,300
 
$2,949
 
Ratio of total expenses to average net assets
0.75
% 
0.75
% (d)
Ratio of net investment income (loss) to average net assets
2.80
% 
4.11
% (d)
Portfolio turnover rate (e)
22
% 
12
% 
 
(a)
Inception date is March 2, 2023, which is consistent with the commencement of investment operations and is the date the initial creation units
were established.
(b)
Based on average shares outstanding.
(c)
Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all
distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not
reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is
calculated for the time period presented and is not annualized for periods of less than a year.
(d)
Annualized.
(e)
Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities
received or delivered from processing creations or redemptions and in-kind transactions.
See Notes to Financial Statements
Page 74
Notes to Financial Statements
First Trust Exchange-Traded Fund II
September 30, 2024
1. Organization
First Trust Exchange-Traded Fund II (the “Trust”) is an open-end management investment company organized as a Massachusetts business trust on July 6, 2006, and is registered with the Securities and Exchange Commission under the Investment Company Act of 1940, as amended (the “1940 Act”).
This report covers the sixteen funds (each a “Fund” and collectively, the “Funds”) listed below:
 
First Trust STOXX® European Select Dividend Index Fund – (NYSE Arca, Inc. (“NYSE Arca”) ticker “FDD”)
First Trust Alerian Disruptive Technology Real Estate ETF – (NYSE Arca ticker “DTRE”)
First Trust Dow Jones Global Select Dividend Index Fund – (NYSE Arca ticker “FGD”)
First Trust Global Wind Energy ETF – (NYSE Arca ticker “FAN”)
First Trust Alerian U.S. NextGen Infrastructure ETF – (NYSE Arca ticker “RBLD”)
First Trust NASDAQ® Clean Edge® Smart Grid Infrastructure Index Fund – (Nasdaq, Inc. (“Nasdaq”) ticker “GRID”)
First Trust Indxx Global Natural Resources Income ETF – (Nasdaq ticker “FTRI”)
First Trust Indxx Global Agriculture ETF – (Nasdaq ticker “FTAG”)
First Trust Indxx NextG ETF – (Nasdaq ticker “NXTG”)
First Trust S-Network Future Vehicles & Technology ETF – (Nasdaq ticker “CARZ”)
First Trust Cloud Computing ETF – (Nasdaq ticker “SKYY”)
First Trust International Equity Opportunities ETF – (Nasdaq ticker “FPXI”)
First Trust Nasdaq Cybersecurity ETF – (Nasdaq ticker “CIBR”)
First Trust IPOX® Europe Equity Opportunities ETF – (Nasdaq ticker “FPXE”)
First Trust Dow Jones International Internet ETF – (Nasdaq ticker “FDNI”)
First Trust Bloomberg Emerging Market Democracies ETF – (NYSE Arca ticker “EMDM”)
Each of DTRE, FAN, GRID, FTRI, FTAG, CARZ, FPXI, CIBR, FPXE, FDNI and EMDM operates as a non-diversified series of the Trust. Each of FDD, FGD, RBLD, NXTG and SKYY operates as a diversified open-end management investment company as defined in Section 5(b) of the 1940 Act. Each Fund represents a separate series of shares of beneficial interest in the Trust. Unlike conventional mutual funds, each Fund issues and redeems shares on a continuous basis, at net asset value (“NAV”), only in large blocks of shares known as “Creation Units.” The investment objective of each Fund is to seek investment results that correspond generally to the price and yield (before the Fund’s fees and expenses) of the following indices:
 
Fund
Index
First Trust STOXX® European Select Dividend Index Fund
STOXX® Europe Select Dividend 30 Index
First Trust Alerian Disruptive Technology Real Estate ETF
Alerian Disruptive Technology Real Estate Index
First Trust Dow Jones Global Select Dividend Index Fund
Dow Jones Global Select Dividend Index
First Trust Global Wind Energy ETF
ISE Clean Edge Global Wind EnergyTM Index
First Trust Alerian U.S. NextGen Infrastructure ETF
Alerian U.S. NextGen Infrastructure Index
First Trust NASDAQ® Clean Edge® Smart Grid
Infrastructure Index Fund
Nasdaq Clean Edge Smart Grid InfrastructureTM Index
First Trust Indxx Global Natural Resources Income ETF
Indxx Global Natural Resources Income Index
First Trust Indxx Global Agriculture ETF
Indxx Global Agriculture Index
First Trust Indxx NextG ETF
Indxx 5G & NextG Thematic IndexSM
First Trust S-Network Future Vehicles & Technology ETF
S-Network Electric & Future Vehicle Ecosystem Index
First Trust Cloud Computing ETF
ISE CTA Cloud ComputingTM Index
First Trust International Equity Opportunities ETF
IPOX® International Index
First Trust Nasdaq Cybersecurity ETF
Nasdaq CTA CybersecurityTM Index
First Trust IPOX® Europe Equity Opportunities ETF
IPOX®-100 Europe Index
First Trust Dow Jones International Internet ETF
Dow Jones International Internet Index
First Trust Bloomberg Emerging Market Democracies ETF
Bloomberg Emerging Market Democracies Index
2. Significant Accounting Policies
The Funds are each considered an investment company and follow accounting and reporting guidance under Financial Accounting Standards Board Accounting Standards Codification Topic 946, “Financial Services-Investment Companies.” The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of the financial statements. The
Page 75
Notes to Financial Statements (Continued)
First Trust Exchange-Traded Fund II
September 30, 2024
preparation of the financial statements in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.
A. Portfolio Valuation
Each Fund’s NAV is determined daily as of the close of regular trading on the New York Stock Exchange (“NYSE”), normally 4:00 p.m. Eastern time, on each day the NYSE is open for trading. If the NYSE closes early on a valuation day, the NAV is determined as of that time. Foreign securities are priced using data reflecting the earlier closing of the principal markets for those securities. Each Fund’s NAV is calculated by dividing the value of all assets of each Fund (including accrued interest and dividends), less all liabilities (including accrued expenses and dividends declared but unpaid), by the total number of shares outstanding.
Each Fund’s investments are valued daily at market value or, in the absence of market value with respect to any portfolio securities, at fair value. Market value prices represent readily available market quotations such as last sale or official closing prices from a national or foreign exchange (i.e., a regulated market) and are primarily obtained from third-party pricing services. Fair value prices represent any prices not considered market value prices and are either obtained from a third-party pricing service or are determined by the Pricing Committee of the Funds’ investment advisor, First Trust Advisors L.P. (“First Trust” or the “Advisor”), in accordance with valuation procedures approved by the Trust’s Board of Trustees, and in accordance with provisions of the 1940 Act and rules thereunder. Investments valued by the Advisor’s Pricing Committee, if any, are footnoted as such in the footnotes to the Portfolio of Investments. Each Fund’s investments are valued as follows:
Common stocks and other equity securities listed on any national or foreign exchange (excluding Nasdaq and the London Stock Exchange Alternative Investment Market (“AIM”)) are valued at the last sale price on the exchange on which they are principally traded or, for Nasdaq and AIM securities, the official closing price. Securities traded on more than one securities exchange are valued at the last sale price or official closing price, as applicable, at the close of the securities exchange representing the primary exchange for such securities.
Securities trading on foreign exchanges or over-the-counter markets that close prior to the NYSE close may be valued using a systematic fair valuation model provided by a third-party pricing service. If these foreign securities meet certain criteria in relation to the valuation model, their valuation is systematically adjusted to reflect the impact of movement in the U.S. market after the close of the foreign markets.
Shares of open-end funds are valued based on NAV per share.
Equity securities traded in an over-the-counter market are valued at the close price or the last trade price.
Overnight repurchase agreements are valued at amortized cost when it represents the most appropriate reflection of fair market value.
Certain securities may not be able to be priced by pre-established pricing methods. Such securities may be valued by the Advisor’s Pricing Committee at fair value. These securities generally include, but are not limited to, restricted securities (securities which may not be publicly sold without registration under the Securities Act of 1933, as amended) for which a third-party pricing service is unable to provide a market price; securities whose trading has been formally suspended; a security whose market or fair value price is not available from a pre-established pricing source; a security with respect to which an event has occurred that is likely to materially affect the value of the security after the market has closed but before the calculation of a Fund’s NAV or make it difficult or impossible to obtain a reliable market quotation; and a security whose price, as provided by the third-party pricing service, does not reflect the security’s fair value. As a general principle, the current fair value of a security would appear to be the amount which the owner might reasonably expect to receive for the security upon its current sale. When fair value prices are used, generally they will differ from market quotations or official closing prices on the applicable exchanges. A variety of factors may be considered in determining the fair value of such securities, including, but not limited to, the following:
 1)
the last sale price on the exchange on which they are principally traded or, for Nasdaq and AIM securities, the official closing price;
 2)
the type of security;
 3)
the size of the holding;
 4)
the initial cost of the security;
 5)
transactions in comparable securities;
Page 76
Notes to Financial Statements (Continued)
First Trust Exchange-Traded Fund II
September 30, 2024
 6)
price quotes from dealers and/or third-party pricing services;
 7)
relationships among various securities;
 8)
information obtained by contacting the issuer, analysts, or the appropriate stock exchange;
 9)
an analysis of the issuer’s financial statements;
10)
the existence of merger proposals or tender offers that might affect the value of the security; and
11)
other relevant factors.
If the securities in question are foreign securities, the following additional information may be considered:
 1)
the last sale price on the exchange on which they are principally traded;
 2)
the value of similar foreign securities traded on other foreign markets;
 3)
ADR trading of similar securities;
 4)
closed-end fund or exchange-traded fund trading of similar securities;
 5)
foreign currency exchange activity;
 6)
the trading prices of financial products that are tied to baskets of foreign securities;
 7)
factors relating to the event that precipitated the pricing problem;
 8)
whether the event is likely to recur;
 9)
whether the effects of the event are isolated or whether they affect entire markets, countries or regions; and
10)
other relevant factors.
In addition, differences between the prices used to calculate a Fund’s NAV and the prices used by such Fund’s corresponding index could result in a difference between a Fund’s performance and the performance of its underlying index.
Because foreign markets may be open on different days than the days during which investors may transact in the shares of a Fund, the value of the Fund’s securities may change on the days when investors are not able to transact in the shares of the Fund. The value of the securities denominated in foreign currencies is converted into U.S. dollars using exchange rates determined daily as of the close of regular trading on the NYSE. Any use of a different rate from the rates used by a relevant index may adversely affect the Fund’s ability to track the index.
The Funds are subject to fair value accounting standards that define fair value, establish the framework for measuring fair value and provide a three-level hierarchy for fair valuation based upon the inputs to the valuation as of the measurement date. The three levels of the fair value hierarchy are as follows:
•  Level 1 – Level 1 inputs are quoted prices in active markets for identical investments. An active market is a market in which transactions for the investment occur with sufficient frequency and volume to provide pricing information on an ongoing basis.
•  Level 2 – Level 2 inputs are observable inputs, either directly or indirectly, and include the following:
o  Quoted prices for similar investments in active markets.
o  Quoted prices for identical or similar investments in markets that are non-active. A non-active market is a market where there are few transactions for the investment, the prices are not current, or price quotations vary substantially either over time or among market makers, or in which little information is released publicly.
o  Inputs other than quoted prices that are observable for the investment (for example, interest rates and yield curves observable at commonly quoted intervals, volatilities, prepayment speeds, loss severities, credit risks, and default rates).
o  Inputs that are derived principally from or corroborated by observable market data by correlation or other means.
•  Level 3 – Level 3 inputs are unobservable inputs. Unobservable inputs may reflect the reporting entity’s own assumptions about the assumptions that market participants would use in pricing the investment.
The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in those investments. A summary of the inputs used to value each Fund’s investments as of September 30, 2024, is included with each Fund’s Portfolio of Investments.
Page 77
Notes to Financial Statements (Continued)
First Trust Exchange-Traded Fund II
September 30, 2024
B. Securities Transactions and Investment Income
Securities transactions are recorded as of the trade date. Realized gains and losses from securities transactions are recorded on the identified cost basis. Dividend income is recorded on the ex-dividend date except that certain dividends from foreign securities are recorded as soon as the information becomes available after the ex-dividend date. Interest income, if any, is recorded on the accrual basis.
Withholding taxes and tax reclaims on foreign dividends have been provided for in accordance with each Fund’s understanding of the applicable country’s tax rules and rates.
Distributions received from a Fund’s investments in master limited partnerships (“MLPs”) generally are comprised of return of capital and investment income. A Fund records estimated return of capital and investment income based on historical information available from each MLP. These estimates may subsequently be revised based on information received from the MLPs after their tax reporting periods are concluded.
Distributions received from a Fund’s investments in real estate investment trusts (“REITs”) may be comprised of return of capital, capital gains, and income. The actual character of the amounts received during the year are not known until after the REITs’ fiscal year end. A Fund records the character of distributions received from the REITs during the year based on estimates available. The characterization of distributions received by a Fund may be subsequently revised based on information received from the REITs after their tax reporting periods conclude.
C. Offsetting on the Statements of Assets and Liabilities
Offsetting assets and liabilities requires entities to disclose both gross and net information about instruments and transactions eligible for offset on the Statements of Assets and Liabilities and disclose instruments and transactions subject to master netting or similar agreements. These disclosure requirements are intended to help investors and other financial statement users better assess the effect or potential effect of offsetting arrangements on a Fund’s financial position. The transactions subject to offsetting disclosures are derivative instruments, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions.
This disclosure, if applicable, is included within each Fund’s Portfolio of Investments under the heading “Offsetting Assets and Liabilities.” For financial reporting purposes, the Funds do not offset financial assets and financial liabilities that are subject to master netting arrangements (“MNAs”) or similar agreements on the Statements of Assets and Liabilities. MNAs provide the right, in the event of default (including bankruptcy and insolvency), for the non-defaulting counterparty to liquidate the collateral and calculate the net exposure to the defaulting party or request additional collateral.
D. Foreign Currency
The books and records of the Funds are maintained in U.S. dollars. Foreign currencies, investments and other assets and liabilities are translated into U.S. dollars at the exchange rates prevailing at the end of the period. Purchases and sales of investments and items of income and expense are translated on the respective dates of such transactions. Unrealized gains and losses on assets and liabilities, other than investments in securities, which result from changes in foreign currency exchange rates have been included in “Net change in unrealized appreciation (depreciation) on foreign currency translation” on the Statements of Operations. Unrealized gains and losses on investments in securities which result from changes in foreign exchange rates are included with fluctuations arising from changes in market price and are shown in “Net change in unrealized appreciation (depreciation) on investments” on the Statements of Operations. Net realized foreign currency gains and losses include the effect of changes in exchange rates between trade date and settlement date on investment security transactions, foreign currency transactions and interest and dividends received and are included in “Net realized gain (loss) on foreign currency transactions” on the Statements of Operations. The portion of foreign currency gains and losses related to fluctuations in exchange rates between the initial purchase settlement date and subsequent sale trade date is included in “Net realized gain (loss) on investments” on the Statements of Operations.
E. Securities Lending
The Funds may lend securities representing up to 33 1/3% of the value of their total assets to broker-dealers, banks and other institutions to generate additional income. When a Fund loans its portfolio securities, it will receive, at the inception of each loan, collateral equal to at least 102% (for domestic securities) or 105% (for international securities) of the market value of the loaned securities. The collateral amount is valued at the beginning of each business day and is compared to the market value of the loaned securities from the prior business day to determine if additional collateral is required. If additional collateral is required, a request is
Page 78
Notes to Financial Statements (Continued)
First Trust Exchange-Traded Fund II
September 30, 2024
sent to the borrower. Securities lending involves the risk that the Fund may lose money because the borrower of the Fund’s loaned securities fails to return the securities in a timely manner or at all. The Fund could also lose money in the event of (i) a decline in the value of the collateral provided for the loaned securities, (ii) a decline in the value of any investments made with cash collateral or (iii) an increase in the value of the loaned securities if the borrower does not increase the collateral accordingly and the borrower fails to return the securities. These events could also trigger adverse tax consequences for the Funds.
Under the Funds’ Securities Lending Agency Agreement, the securities lending agent will generally bear the risk that a borrower may default on its obligation to return loaned securities. During the period ended September 30, 2024, Brown Brothers Harriman & Co. (“BBH”) acted as the securities lending agent for SKYY, RBLD, FTRI, NXTG, FPXI, FPXE, CIBR, GRID, and CARZ and was responsible for executing the lending of the portfolio securities to creditworthy borrowers. For FAN, and effective June 10, 2024 for SKYY, the Bank of New York Mellon (“BNY”) is the securities lending agent and is responsible for executing the lending of the portfolio securities to creditworthy borrowers. The Funds, however, will be responsible for the risks associated with the investment of cash collateral. A Fund may lose money on its investment of cash collateral, which may affect its ability to repay the collateral to the borrower without the use of other Fund assets. Each Fund that engages in securities lending receives compensation (net of any rebate and securities lending agent fees) for lending its securities. Compensation can be in the form of fees received from the securities lending agent or dividends or interest earned from the investment of cash collateral. The fees received from the securities lending agent are accrued daily. The dividend and interest earned on the securities loaned is accounted for in the same manner as other dividend and interest income. At September 30, 2024, FAN, GRID, FTRI, NXTG, CARZ, and CIBR had securities in the securities lending program. During the fiscal year ended September 30, 2024, FAN, RBLD, GRID, FTRI, NXTG, CARZ, SKYY, FPXI, CIBR, and FPXE participated in the securities lending program.
In the event of a default by a borrower with respect to any loan, BBH or BNY will exercise any and all remedies provided under the applicable borrower agreement to make the Funds whole. These remedies include purchasing replacement securities by applying the collateral held from the defaulting broker against the purchase cost of the replacement securities. If, despite such efforts by BBH or BNY to exercise these remedies, a Fund sustains losses as a result of a borrower’s default, BBH or BNY will indemnify the Fund by purchasing replacement securities at its own expense, or paying the Fund an amount equal to the market value of the replacement securities, subject to certain limitations which are set forth in detail in the Securities Lending Agency Agreement between the Trust on behalf of the Funds and BBH or BNY.
F. Repurchase Agreements
Repurchase agreements involve the purchase of securities subject to the seller’s agreement to repurchase the securities at a mutually agreed upon date and price, under the terms of a Master Repurchase Agreement (“MRA”). During the term of a repurchase agreement, the value of the underlying securities held as collateral on behalf of a Fund, including accrued interest, is required to exceed the value of the repurchase agreement, including accrued interest. The underlying securities for all repurchase agreements are held at the Funds’ custodian or designated sub-custodians under tri-party repurchase agreements.
MRAs govern transactions between a Fund and select counterparties. The MRAs contain provisions for, among other things, initiation, income payments, events of default, and maintenance of collateral for repurchase agreements.
Repurchase agreements received for lending securities are collateralized by U.S. Treasury securities. The U.S. Treasury securities are held in a joint custody account at BBH or BNY on behalf of the Funds participating in the securities lending program. In the event the counterparty defaults on the repurchase agreement, the U.S. Treasury securities can either be maintained as part of a Fund’s portfolio or sold for cash. A Fund could suffer a loss to the extent that the proceeds from the sale of the underlying collateral held by the Fund are less than the repurchase price and the Fund’s costs associated with the delay and enforcement of the MRA.
While the Funds may invest in repurchase agreements, any repurchase agreements held by the Funds during the fiscal year ended September 30, 2024, were received as collateral for lending securities.
G. Dividends and Distributions to Shareholders
Dividends from net investment income of each Fund, if any, are declared and paid quarterly, or as the Board of Trustees may determine from time to time. Distributions of net realized capital gains earned by each Fund, if any, are distributed at least annually. Each Fund may also designate a portion of the amount paid to redeeming shareholders as a distribution for tax purposes.
Distributions from net investment income and realized capital gains are determined in accordance with federal income tax regulations, which may differ from U.S. GAAP. Certain capital accounts in the financial statements are periodically adjusted for permanent
Page 79
Notes to Financial Statements (Continued)
First Trust Exchange-Traded Fund II
September 30, 2024
differences in order to reflect their tax character. These permanent differences are primarily due to the varying treatment of income and gain/loss on significantly modified portfolio securities held by the Funds and have no impact on net assets or NAV per share. Temporary differences, which arise from recognizing certain items of income, expense and gain/loss in different periods for financial statement and tax purposes, will reverse at some time in the future.
The tax character of distributions paid by each Fund during the fiscal year ended September 30, 2024 were as follows:
 
 
Distributions
paid from
Ordinary
Income
Distributions
paid from
Capital
Gains
Distributions
paid from
Return of
Capital
First Trust STOXX® European Select Dividend Index Fund
$10,315,400
$—
$—
First Trust Alerian Disruptive Technology Real Estate ETF
457,041
—
—
First Trust Dow Jones Global Select Dividend Index Fund
35,000,288
—
—
First Trust Global Wind Energy ETF
2,828,785
—
—
First Trust Alerian U.S. NextGen Infrastructure ETF
120,587
—
—
First Trust NASDAQ® Clean Edge® Smart Grid Infrastructure Index Fund
15,201,118
—
—
First Trust Indxx Global Natural Resources Income ETF
9,644,266
—
—
First Trust Indxx Global Agriculture ETF
186,749
—
—
First Trust Indxx NextG ETF
7,852,793
—
—
First Trust S-Network Future Vehicles & Technology ETF
361,081
—
—
First Trust Cloud Computing ETF
—
—
—
First Trust International Equity Opportunities ETF
1,443,011
—
—
First Trust Nasdaq Cybersecurity ETF
29,884,371
—
—
First Trust IPOX® Europe Equity Opportunities ETF
101,436
—
—
First Trust Dow Jones International Internet ETF
76,231
—
—
First Trust Bloomberg Emerging Market Democracies ETF
160,950
—
—
The tax character of distributions paid by each Fund during the fiscal year ended September 30, 2023 were as follows:
 
 
Distributions
paid from
Ordinary
Income
Distributions
paid from
Capital
Gains
Distributions
paid from
Return of
Capital
First Trust STOXX® European Select Dividend Index Fund
$11,339,350
$—
$—
First Trust Alerian Disruptive Technology Real Estate ETF
637,446
—
—
First Trust Dow Jones Global Select Dividend Index Fund
39,597,608
—
—
First Trust Global Wind Energy ETF
4,348,626
—
—
First Trust Alerian U.S. NextGen Infrastructure ETF
97,141
—
—
First Trust NASDAQ® Clean Edge® Smart Grid Infrastructure Index Fund
10,318,462
—
—
First Trust Indxx Global Natural Resources Income ETF
15,107,267
—
—
First Trust Indxx Global Agriculture ETF
569,279
—
—
First Trust Indxx NextG ETF
6,776,282
—
—
First Trust S-Network Future Vehicles & Technology ETF
653,962
—
—
First Trust Cloud Computing ETF
—
—
—
First Trust International Equity Opportunities ETF
1,774,581
—
—
First Trust Nasdaq Cybersecurity ETF
18,090,451
—
—
First Trust IPOX® Europe Equity Opportunities ETF
74,090
—
—
First Trust Dow Jones International Internet ETF
121,095
—
—
First Trust Bloomberg Emerging Market Democracies ETF
26,281
—
—
Page 80
Notes to Financial Statements (Continued)
First Trust Exchange-Traded Fund II
September 30, 2024
As of September 30, 2024, the components of distributable earnings on a tax basis for each Fund were as follows:
 
 
Undistributed
Ordinary
Income
Accumulated
Capital and
Other
Gain (Loss)
Net
Unrealized
Appreciation
(Depreciation)
First Trust STOXX® European Select Dividend Index Fund
$1,991,073
$(92,943,876
)
$10,673,946
First Trust Alerian Disruptive Technology Real Estate ETF
300,442
(8,091,995
)
2,170,844
First Trust Dow Jones Global Select Dividend Index Fund
3,400,767
(222,746,234
)
13,830,788
First Trust Global Wind Energy ETF
178,465
(77,918,292
)
(30,431,334
)
First Trust Alerian U.S. NextGen Infrastructure ETF
3,388
(8,616,117
)
2,393,603
First Trust NASDAQ® Clean Edge® Smart Grid Infrastructure Index Fund
899,859
(48,636,189
)
236,770,384
First Trust Indxx Global Natural Resources Income ETF
360,469
(108,843,358
)
3,429,929
First Trust Indxx Global Agriculture ETF
6,123
(21,301,167
)
(1,593,447
)
First Trust Indxx NextG ETF
590,293
(7,356,966
)
30,570,140
First Trust S-Network Future Vehicles & Technology ETF
106,733
(17,032,500
)
810,746
First Trust Cloud Computing ETF
(2,133,515
)
(1,576,915,743
)
582,058,785
First Trust International Equity Opportunities ETF
269,273
(353,472,405
)
29,189,765
First Trust Nasdaq Cybersecurity ETF
504,966
(762,474,714
)
1,425,116,559
First Trust IPOX® Europe Equity Opportunities ETF
5,425
(3,841,355
)
872,851
First Trust Dow Jones International Internet ETF
310,799
(20,489,528
)
(5,264,042
)
First Trust Bloomberg Emerging Market Democracies ETF
209,191
(84,123
)
775,256
H. Income and Other Taxes
Each Fund intends to continue to qualify as a regulated investment company by complying with the requirements under Subchapter M of the Internal Revenue Code of 1986, as amended, which includes distributing substantially all of its net investment income and net realized gains to shareholders. Accordingly, no provision has been made for federal and state income taxes. However, due to the timing and amount of distributions, each Fund may be subject to an excise tax of 4% of the amount by which approximately 98% of each Fund’s taxable income exceeds the distributions from such taxable income for the calendar year.
Certain countries assess a capital gains tax on securities sold in their local markets. This tax is accrued as the securities in these foreign markets appreciate in value and is paid at the time of sale to the extent a capital gain is realized. Taxes accrued on securities in an unrealized appreciation position are included in “Net change in unrealized appreciation (depreciation) on deferred foreign capital gains tax” on the Statements of Operations. The capital gains tax paid on securities sold, if any, is included in “Net realized gain (loss) on foreign capital gains tax” on the Statements of Operations.
Capital Gains. India’s Finance Act, 2024 (“Finance Act, 2024”) was enacted into law on July 23, 2024, and amongst the other provisions, it increased long-term and short-term capital gain rates on sales of Indian securities, effective that date. As per the amended provisions, the long-term capital gains on the sale of listed shares (sold on a recognized stock exchange and where Securities Transaction Tax (“STT”) is paid) in excess of INR 0.125 million are taxed at the rate of 12.5% (plus applicable surcharge and cess), increased from 10% (plus applicable surcharge and cess), subject to satisfaction of certain conditions. As a grandfathering measure, the cost of acquisition for the purpose of calculation of long-term capital asset acquired before February 1, 2018 shall be deemed to be the higher of the following: (a) the actual cost of acquisition of such asset; and (b) lower of (i) the fair market value of such asset as on January 31, 2018 and (ii) full value of consideration as received on its transfer/disposal of the equity shares. The highest effective tax rate on long-term capital gains earned by a Fund could be 14.95% in the case of a non-corporate entity and 13.65% in the case of a corporate entity.
In the case of the sale of listed shares (sold on a recognized stock exchange and where STT is paid) held by a Fund for one year or less, the income is classified as short-term capital gains and is taxable at 20% (plus applicable surcharge and cess), increased from 15% (plus applicable surcharge and cess), provided the shares are sold on the stock exchange and subjected to STT. The highest effective tax rate on short-term capital gains earned by a Fund could be 23.92% in the case of a non-corporate entity and 21.84% in the case of a corporate entity.
Page 81
Notes to Financial Statements (Continued)
First Trust Exchange-Traded Fund II
September 30, 2024
Short-term capital loss can be set-off against both short-term capital gains and long-term capital gains. However, long-term capital loss can be set-off only against long-term capital gains. The unabsorbed (remaining loss after setting off loss during the year against income of the year) short-term and long-term capital loss can be carried forward for immediately succeeding 8 (eight) assessment years.
Buy back. Finance Act, 2024 has amended the provisions for taxation of buyback of shares and provided that the gains arising on buyback of shares will be considered as deemed dividend in the hands of the shareholder and taxed accordingly. (Prior to enactment of Finance Act, 2024, the shareholders were exempt from tax on any income arising on buyback and distribution tax at the rate of 20% plus applicable surcharge and cess was payable by the Indian Company on buyback of shares). Further, the cost of acquisition in relation to buyback of shares shall be considered as capital loss in the hands of shareholder and the capital loss can be set off against the capital gain income.
Where the sale of shares is outside the stock exchange and not subject to STT, the long-term capital gains continue to be taxed at 10% (plus applicable surcharge and cess) and short-term capital gains are taxed at 30% (plus applicable surcharge and cess).
Dividend income. The dividend income earned by a Fund from Indian Companies shall be chargeable to tax at the rate of 20% (plus applicable surcharge and cess). The highest effective tax rate on dividend income arising to a Fund could be 23.92% in the case of a non-corporate entity and 21.84% in the case of a corporate entity. Note that a Fund will not obtain relief under the US-India tax treaty as the treaty rate of 25% is higher than the domestic rate. Any excess taxes withheld can be offset against capital gains tax liability during the year or claimed as a refund in the annual tax return.
Interest income. Interest Income received from the Indian Investee Company shall be continued to be chargeable to tax at the rate of 20% (plus applicable surcharge and cess).
Other income. Any other income (other than capital gain, dividend, interest) earned by a Fund shall be chargeable to tax at the rate of 35% (earlier taxable at the rate of 40%) (plus applicable surcharge and cess).
Please note that the above description is based on current provisions of Indian law, and any change or modification made by subsequent legislation, regulation, or administrative or judicial decision could increase the Indian tax liability of a Fund and thus reduce the return to a Fund’s shareholders. There can be no assurance that the Indian tax authorities and/or regulators will not take a position contrary to the views expressed herein. If the Indian tax authorities and/or regulators take a position contrary to the views expressed herein, adverse unpredictable consequences may follow.
The Funds are subject to accounting standards that establish a minimum threshold for recognizing, and a system for measuring, the benefits of a tax position taken or expected to be taken in a tax return. For all the Funds except EMDM, the taxable years ended 2021, 2022, 2023, and 2024 remain open to federal and state audit. For EMDM, the taxable periods ended 2023 and 2024 remain open to federal and state audit. As of September 30, 2024, management has evaluated the application of these standards to the Funds and has determined that no provision for income tax is required in the Funds’ financial statements for uncertain tax positions.
Each Fund intends to utilize provisions of the federal income tax laws, which allow it to carry a realized capital loss forward indefinitely following the year of the loss and offset such loss against any future realized capital gains. Each Fund is subject to certain limitations under U.S. tax rules on the use of capital loss carryforwards and net unrealized built-in losses. These limitations apply when there has been a 50% change in ownership. At September 30, 2024, for federal income tax purposes, each applicable Fund had a capital loss carryforward available that is shown in the following table, to the extent provided by regulations, to offset future capital gains. To the extent that these loss carryforwards are used to offset future capital gains, it is probable that the capital gains so offset will not be distributed to each applicable Fund’s shareholders.
 
 
Non-Expiring
Capital Loss
Carryforwards
First Trust STOXX® European Select Dividend Index Fund
$92,943,876
First Trust Alerian Disruptive Technology Real Estate ETF*
8,091,995
First Trust Dow Jones Global Select Dividend Index Fund
222,746,234
First Trust Global Wind Energy ETF
77,918,292
First Trust Alerian U.S. NextGen Infrastructure ETF
8,616,117
First Trust NASDAQ® Clean Edge® Smart Grid Infrastructure Index Fund
48,636,189
Page 82
Notes to Financial Statements (Continued)
First Trust Exchange-Traded Fund II
September 30, 2024
 
Non-Expiring
Capital Loss
Carryforwards
First Trust Indxx Global Natural Resources Income ETF
$108,843,358
First Trust Indxx Global Agriculture ETF
21,301,167
First Trust Indxx NextG ETF
7,356,966
First Trust S-Network Future Vehicles & Technology ETF
17,032,500
First Trust Cloud Computing ETF
1,576,915,743
First Trust International Equity Opportunities ETF
353,472,405
First Trust Nasdaq Cybersecurity ETF
762,474,714
First Trust IPOX® Europe Equity Opportunities ETF
3,841,355
First Trust Dow Jones International Internet ETF
20,489,528
First Trust Bloomberg Emerging Market Democracies ETF
84,123
 
*
$75,097 of First Trust Alerian Disruptive Technology Real Estate ETF’s non-expiring net capital losses is subject to loss limitation
resulting from reorganization activity. This limitation generally reduces the utilization of these losses to a maximum of $38,346 per
year.
During the taxable year ended September 30, 2024, the following Funds utilized capital loss carryforwards in the following amounts:
 
 
Capital Loss
Carryforward
Utilized
First Trust Alerian U.S. NextGen Infrastructure ETF
$362,412
First Trust NASDAQ® Clean Edge® Smart Grid Infrastructure Index Fund
2,982,172
First Trust Indxx NextG ETF
3,666,066
First Trust International Equity Opportunities ETF
9,469,566
First Trust IPOX® Europe Equity Opportunities ETF
172,798
Certain losses realized during the current fiscal year may be deferred and treated as occurring on the first day of the following fiscal year for federal income tax purposes. For the fiscal year ended September 30, 2024, the following Fund incurred and elected to defer net late year ordinary or capital losses as follows:
 
 
Qualified Late Year Losses
 
Ordinary Losses
Capital Losses
First Trust Cloud Computing ETF
$2,133,515
$—
 
In order to present paid-in capital and accumulated distributable earnings (loss) (which consists of accumulated net investment income (loss), accumulated net realized gain (loss) on investments and net unrealized appreciation (depreciation) on investments) on the Statements of Assets and Liabilities that more closely represent their tax character, certain adjustments have been made to paid-in capital, accumulated net investment income (loss) and accumulated net realized gain (loss) on investments. These adjustments are primarily due to the difference between book and tax treatments of income and gains on various investment securities held by the Funds and in-kind transactions. The results of operations and net assets were not affected by these adjustments. For the fiscal year ended September 30, 2024, the adjustments for each Fund were as follows:
 
 
Accumulated
Net Investment
Income (Loss)
Accumulated
Net Realized
Gain (Loss)
on Investments
Paid-In
Capital
First Trust STOXX® European Select Dividend Index Fund
$(38,965
)
$(1,791,400
)
$1,830,365
First Trust Alerian Disruptive Technology Real Estate ETF
60,730
(728,837
)
668,107
First Trust Dow Jones Global Select Dividend Index Fund
703,895
(5,650,328
)
4,946,433
First Trust Global Wind Energy ETF
(46,131
)
(1,775,135
)
1,821,266
First Trust Alerian U.S. NextGen Infrastructure ETF
(428
)
428
—
First Trust NASDAQ® Clean Edge® Smart Grid Infrastructure Index Fund
(20,331
)
(47,954,189
)
47,974,520
Page 83
Notes to Financial Statements (Continued)
First Trust Exchange-Traded Fund II
September 30, 2024
 
Accumulated
Net Investment
Income (Loss)
Accumulated
Net Realized
Gain (Loss)
on Investments
Paid-In
Capital
First Trust Indxx Global Natural Resources Income ETF
$(82,058
)
$(162,370
)
$244,428
First Trust Indxx Global Agriculture ETF
(50,369
)
1,812,208
(1,761,839
)
First Trust Indxx NextG ETF
(379,257
)
(28,303,517
)
28,682,774
First Trust S-Network Future Vehicles & Technology ETF
(7,171
)
(1,595,688
)
1,602,859
First Trust Cloud Computing ETF
626,887
(202,527,535
)
201,900,648
First Trust International Equity Opportunities ETF
(112,171
)
(13,496,533
)
13,608,704
First Trust Nasdaq Cybersecurity ETF
(1,351,127
)
(511,676,305
)
513,027,432
First Trust IPOX® Europe Equity Opportunities ETF
19,177
(421,225
)
402,048
First Trust Dow Jones International Internet ETF
692
1,599,748
(1,600,440
)
First Trust Bloomberg Emerging Market Democracies ETF
(8,776
)
8,776
—
As of September 30, 2024, the aggregate cost, gross unrealized appreciation, gross unrealized depreciation, and net unrealized appreciation/(depreciation) on investments (including short positions and derivatives, if any) for federal income tax purposes were as follows:
 
 
Tax Cost
Gross
Unrealized
Appreciation
Gross
Unrealized
(Depreciation)
Net Unrealized
Appreciation
(Depreciation)
First Trust STOXX® European Select Dividend Index
Fund
$146,342,891
$20,480,426
$(9,813,338
)
$10,667,088
First Trust Alerian Disruptive Technology Real Estate
ETF
17,360,727
2,901,169
(729,419
)
2,171,750
First Trust Dow Jones Global Select Dividend Index Fund
548,035,278
70,530,783
(56,775,019
)
13,755,764
First Trust Global Wind Energy ETF
245,303,052
25,745,555
(56,184,760
)
(30,439,205
)
First Trust Alerian U.S. NextGen Infrastructure ETF
7,765,219
2,567,865
(174,262
)
2,393,603
First Trust NASDAQ® Clean Edge® Smart Grid
Infrastructure Index Fund
1,611,029,734
345,266,688
(108,548,015
)
236,718,673
First Trust Indxx Global Natural Resources Income ETF
148,070,761
15,693,922
(11,963,751
)
3,730,171
First Trust Indxx Global Agriculture ETF
7,837,703
713,374
(2,224,520
)
(1,511,146
)
First Trust Indxx NextG ETF
369,690,116
73,786,811
(42,307,445
)
31,479,366
First Trust S-Network Future Vehicles & Technology
ETF
36,121,615
6,976,126
(6,163,079
)
813,047
First Trust Cloud Computing ETF
2,394,740,157
877,648,343
(295,589,558
)
582,058,785
First Trust International Equity Opportunities ETF
116,082,547
30,198,979
(1,007,173
)
29,191,806
First Trust Nasdaq Cybersecurity ETF
5,237,640,874
1,600,901,453
(175,792,277
)
1,425,109,176
First Trust IPOX® Europe Equity Opportunities ETF
3,126,060
972,126
(99,660
)
872,466
First Trust Dow Jones International Internet ETF
43,712,363
5,895,150
(11,159,498
)
(5,264,348
)
First Trust Bloomberg Emerging Market Democracies
ETF
7,498,681
1,450,000
(616,626
)
833,374
I. Expenses
Expenses that are directly related to one of the Funds are charged directly to the respective Fund, except for First Trust Alerian Disruptive Technology Real Estate ETF, First Trust Alerian U.S. NextGen Infrastructure ETF, First Trust Indxx Global Natural Resources Income ETF, First Trust Indxx Global Agriculture ETF, First Trust Indxx NextG ETF, First Trust S-Network Future Vehicles & Technology ETF, First Trust Cloud Computing ETF, First Trust International Equity Opportunities ETF, First Trust Nasdaq Cybersecurity ETF, First Trust IPOX® Europe Equity Opportunities ETF, First Trust Dow Jones International Internet ETF, and First Trust Bloomberg Emerging Market Democracies ETF (the “Unitary Fee Funds”), for which expenses other than excluded expenses (discussed in Note 3) are paid by the Advisor. General expenses of the Trust are allocated to all the Funds based upon the net assets of each Fund.
Page 84
Notes to Financial Statements (Continued)
First Trust Exchange-Traded Fund II
September 30, 2024
First Trust has entered into licensing agreements with each of the following “Licensors” for the respective Funds:
 
Fund
Licensor
First Trust STOXX® European Select Dividend Index Fund
STOXX Limited
First Trust Alerian Disruptive Technology Real Estate ETF
VettaFi LLC
First Trust Dow Jones Global Select Dividend Index Fund
S&P Dow Jones Indices LLC
First Trust Global Wind Energy ETF
Nasdaq, Inc.
First Trust Alerian U.S. NextGen Infrastructure ETF
VettaFi LLC
First Trust NASDAQ® Clean Edge® Smart Grid
Infrastructure Index Fund
Nasdaq, Inc.
First Trust Indxx Global Natural Resources Income ETF
Indxx, Inc.
First Trust Indxx Global Agriculture ETF
Indxx, Inc.
First Trust Indxx NextG ETF
Indxx, Inc.
First Trust S-Network Future Vehicles & Technology ETF
VettaFi LLC
First Trust Cloud Computing ETF
Nasdaq, Inc.
First Trust International Equity Opportunities ETF
IPOX® Schuster LLC
First Trust Nasdaq Cybersecurity ETF
Nasdaq, Inc.
First Trust IPOX® Europe Equity Opportunities ETF
IPOX® Schuster LLC
First Trust Dow Jones International Internet ETF
S&P Dow Jones Indices LLC
First Trust Bloomberg Emerging Market Democracies ETF
Bloomberg Index Services Limited
The respective license agreements allow for the use by First Trust of each Fund’s respective index and of certain trademarks and trade names of the respective Licensors. The Funds are sub-licensees to the applicable license agreements. The Funds, except for the Unitary Fee Funds, are required to pay licensing fees, which are shown on the Statements of Operations. The licensing fees for the Unitary Fee Funds are paid by First Trust from the unitary investment advisory fees it receives from each of these Funds.
3. Investment Advisory Fee, Affiliated Transactions and Other Fee Arrangements
First Trust, the investment advisor to the Funds, is a limited partnership with one limited partner, Grace Partners of DuPage L.P., and one general partner, The Charger Corporation. The Charger Corporation is an Illinois corporation controlled by James A. Bowen, Chief Executive Officer of First Trust. First Trust is responsible for the selection and ongoing monitoring of the securities in each Fund’s portfolio, managing the Funds’ business affairs and providing certain administrative services necessary for the management of the Funds.
For the Unitary Fee Funds, First Trust is paid an annual unitary management fee based on a percentage of each Fund’s average daily net assets and is responsible for the expenses of such Fund including the cost of transfer agency, custody, fund administration, legal, audit, license and other services, and excluding fee payments under the Investment Management Agreement, distribution and service fees pursuant to a Rule 12b-1 plan, if any, brokerage expenses, acquired fund fees and expenses, taxes, interest, and extraordinary expenses. The annual unitary management fee payable by each Fund to First Trust for these services will be reduced at certain levels of each Fund’s net assets (“breakpoints”) and calculated pursuant to the following schedule:
 
Breakpoints
RBLD
SKYY
CIBR
Fund net assets up to and including $2.5 billion
0.65000
%
0.600
%
0.600
%
Fund net assets greater than $2.5 billion up to and including $5 billion
0.63375
%
0.585
%
0.585
%
Fund net assets greater than $5 billion up to and including $7.5 billion
0.61750
%
0.570
%
0.570
%
Fund net assets greater than $7.5 billion up to and including $10 billion
0.60125
%
0.555
%
0.555
%
Fund net assets greater than $10 billion up to and including $15 billion
0.58500
%
0.540
%
0.540
%
Fund net assets greater than $15 billion
0.55250
%
0.510
%
0.510
%
 
Breakpoints
DTRE
FTRI
FTAG
NXTG
Fund net assets up to and including $2.5 billion
0.600
%
0.7000
%
0.7000
%
0.7000
%
Fund net assets greater than $2.5 billion up to and including $5 billion
0.585
%
0.6825
%
0.6825
%
0.6825
%
Fund net assets greater than $5 billion up to and including $7.5 billion
0.570
%
0.6650
%
0.6650
%
0.6650
%
Fund net assets greater than $7.5 billion up to and including $10 billion
0.555
%
0.6475
%
0.6475
%
0.6475
%
Fund net assets greater than $10 billion
0.540
%
0.6300
%
0.6300
%
0.6300
%
 
Page 85
Notes to Financial Statements (Continued)
First Trust Exchange-Traded Fund II
September 30, 2024
Breakpoints
CARZ
FPXI
FPXE
FDNI
Fund net assets up to and including $2.5 billion
0.7000
%
0.7000
%
0.7000
%
0.65000
%
Fund net assets greater than $2.5 billion up to and including $5 billion
0.6825
%
0.6825
%
0.6825
%
0.63375
%
Fund net assets greater than $5 billion up to and including $7.5 billion
0.6650
%
0.6650
%
0.6650
%
0.61750
%
Fund net assets greater than $7.5 billion up to and including $10 billion
0.6475
%
0.6475
%
0.6475
%
0.60125
%
Fund net assets greater than $10 billion
0.6300
%
0.6300
%
0.6300
%
0.58500
%
 
Breakpoints
EMDM
Fund net assets up to and including $2.5 billion
0.75000
%
Fund net assets greater than $2.5 billion up to and including $5 billion
0.73125
%
Fund net assets greater than $5 billion up to and including $7.5 billion
0.71250
%
Fund net assets greater than $7.5 billion up to and including $10 billion
0.69375
%
Fund net assets greater than $10 billion
0.67500
%
For the First Trust STOXX® European Select Dividend Index Fund, First Trust Dow Jones Global Select Dividend Index Fund, First Trust Global Wind Energy ETF, and First Trust NASDAQ® Clean Edge® Smart Grid Infrastructure Index Fund (such Funds, the “Expense Cap Funds”), First Trust is paid an annual management fee based on a percentage of each Fund’s average daily net assets and calculated pursuant to the following schedule:
 
Breakpoints
 
Fund net assets up to and including $2.5 billion
0.40
%
Fund net assets greater than $2.5 billion up to and including $5 billion
0.39
%
Fund net assets greater than $5 billion up to and including $7.5 billion
0.38
%
Fund net assets greater than $7.5 billion up to and including $10 billion
0.37
%
Fund net assets greater than $10 billion
0.36
%
For the Expense Cap Funds, the Trust and the Advisor have entered into an Expense Reimbursement and Fee Waiver Agreement (“Agreement”) in which First Trust has agreed to waive fees and/or reimburse Fund expenses to the extent that the operating expenses of each Fund (excluding interest expense, brokerage commissions and other trading expenses, acquired fund fees and expenses, taxes and extraordinary expenses) exceed the following amount as a percentage of average daily net assets per year (the “Expense Cap”). The Expense Cap will be in effect until at least January 31, 2026.
 
 
Expense Cap
First Trust STOXX® European Select Dividend Index Fund
0.60
%
First Trust Dow Jones Global Select Dividend Index Fund
0.60
%
First Trust Global Wind Energy ETF
0.60
%
First Trust NASDAQ® Clean Edge® Smart Grid Infrastructure Index Fund
0.70
%
The Trust has multiple service agreements with BNY. Under the service agreements, BNY performs custodial, fund accounting, certain administrative services, and transfer agency services for each Fund. As custodian, BNY is responsible for custody of each Fund’s assets. As fund accountant and administrator, BNY is responsible for maintaining the books and records of each Fund’s securities and cash. As transfer agent, BNY is responsible for maintaining shareholder records for each Fund. BNY is a subsidiary of The Bank of New York Mellon Corporation, a financial holding company.
Each Trustee who is not an officer or employee of First Trust, any sub-advisor or any of their affiliates (“Independent Trustees”) is paid a fixed annual retainer that is allocated equally among each fund in the First Trust Fund Complex. Each Independent Trustee is also paid an annual per fund fee that varies based on whether the fund is a closed-end or other actively managed fund, a target outcome fund or an index fund.
Additionally, the Chairs of the Audit Committee, Nominating and Governance Committee and Valuation Committee, the Vice Chair of the Audit Committee, the Lead Independent Trustee and the Vice Lead Independent Trustee are paid annual fees to serve in such capacities, with such compensation allocated pro rata among each fund in the First Trust Fund Complex based on net assets. Independent Trustees are reimbursed for travel and out-of-pocket expenses in connection with all meetings. The Committee Chairs, the Audit Committee Vice Chair, the Lead Independent Trustee and the Vice Lead Independent Trustee rotate periodically in serving in such capacities. The officers and “Interested” Trustee receive no compensation from the Trust for acting in such capacities.
Page 86
Notes to Financial Statements (Continued)
First Trust Exchange-Traded Fund II
September 30, 2024
4. Purchases and Sales of Securities
For the fiscal year ended September 30, 2024, the cost of purchases and proceeds from sales of investments for each Fund, excluding short-term investments and in-kind transactions, were as follows:
 
 
Purchases
Sales
First Trust STOXX® European Select Dividend Index Fund
$69,484,754
$70,250,178
First Trust Alerian Disruptive Technology Real Estate ETF
5,697,758
5,493,407
First Trust Dow Jones Global Select Dividend Index Fund
204,478,397
227,703,003
First Trust Global Wind Energy ETF
38,979,567
40,659,778
First Trust Alerian U.S. NextGen Infrastructure ETF
2,267,717
2,252,571
First Trust NASDAQ® Clean Edge® Smart Grid Infrastructure Index Fund
213,816,796
154,311,024
First Trust Indxx Global Natural Resources Income ETF
134,527,571
137,301,592
First Trust Indxx Global Agriculture ETF
1,040,510
2,450,996
First Trust Indxx NextG ETF
66,648,566
76,032,210
First Trust S-Network Future Vehicles & Technology ETF
11,984,645
12,806,805
First Trust Cloud Computing ETF
1,012,022,543
1,014,522,554
First Trust International Equity Opportunities ETF
167,382,029
176,363,484
First Trust Nasdaq Cybersecurity ETF
2,408,488,206
2,407,705,482
First Trust IPOX® Europe Equity Opportunities ETF
4,563,553
4,599,666
First Trust Dow Jones International Internet ETF
9,909,850
9,364,295
First Trust Bloomberg Emerging Market Democracies ETF
4,129,505
1,409,738
For the fiscal year ended September 30, 2024, the cost of in-kind purchases and proceeds from in-kind sales for each Fund were as follows:
 
 
Purchases
Sales
First Trust STOXX® European Select Dividend Index Fund
$595,111
$41,163,424
First Trust Alerian Disruptive Technology Real Estate ETF
—
4,100,977
First Trust Dow Jones Global Select Dividend Index Fund
14,708,385
154,285,142
First Trust Global Wind Energy ETF
2,837,466
51,193,260
First Trust Alerian U.S. NextGen Infrastructure ETF
—
—
First Trust NASDAQ® Clean Edge® Smart Grid Infrastructure Index Fund
782,476,677
313,727,979
First Trust Indxx Global Natural Resources Income ETF
—
99,994,903
First Trust Indxx Global Agriculture ETF
989,250
5,929,056
First Trust Indxx NextG ETF
30,768,930
114,052,009
First Trust S-Network Future Vehicles & Technology ETF
—
10,174,804
First Trust Cloud Computing ETF
103,452,646
615,687,637
First Trust International Equity Opportunities ETF
—
51,325,845
First Trust Nasdaq Cybersecurity ETF
1,410,704,786
1,292,402,590
First Trust IPOX® Europe Equity Opportunities ETF
—
1,277,432
First Trust Dow Jones International Internet ETF
4,091,772
3,311,812
First Trust Bloomberg Emerging Market Democracies ETF
1,488,930
—
5. Creations, Redemptions and Transaction Fees
Each Fund generally issues and redeems its shares in primary market transactions through a creation and redemption mechanism and does not sell or redeem individual shares. Instead, financial entities known as “Authorized Participants” have contractual arrangements with a Fund or one of the Fund’s service providers to purchase and redeem Fund shares directly with the Fund in Creation Units. Prior to the start of trading on every business day, a Fund publishes through the National Securities Clearing Corporation the “basket” of securities, cash or other assets that it will accept in exchange for a Creation Unit of the Fund’s shares. An Authorized Participant that wishes to effectuate a creation of a Fund’s shares deposits with the Fund the “basket” of securities, cash or other assets identified by the Fund that day, and then receives the Creation Unit of the Fund’s shares in return for those assets. After purchasing a Creation Unit, the Authorized Participant may continue to hold the Fund’s shares or sell them in the secondary market. The redemption process is the reverse of the purchase process: the Authorized Participant redeems a Creation Unit of a Fund’s shares for a basket of securities, cash
Page 87
Notes to Financial Statements (Continued)
First Trust Exchange-Traded Fund II
September 30, 2024
or other assets. The combination of the creation and redemption process with secondary market trading in a Fund’s shares and underlying securities provides arbitrage opportunities that are designed to help keep the market price of a Fund’s shares at or close to the NAV per share of the Fund.
Each Fund imposes fees in connection with the purchase of Creation Units. These fees may vary based upon various fact-based circumstances, including, but not limited to, the composition of the securities included in the Creation Unit or the countries in which the transactions are settled. The price for each Creation Unit will equal the daily NAV per share of a Fund times the number of shares in a Creation Unit, plus the fees described above and, if applicable, any operational processing and brokerage costs, transfer fees, stamp taxes and part or all of the spread between the expected bid and offer side of the market related to the securities comprising the creation basket.
Each Fund also imposes fees in connection with the redemption of Creation Units. These fees may vary based upon various fact-based circumstances, including, but not limited to, the composition of the securities included in the Creation Unit or the countries in which the transactions are settled. The price received for each Creation Unit will equal the daily NAV per share of a Fund times the number of shares in a Creation Unit, minus the fees described above and, if applicable, any operational processing and brokerage costs, transfer fees, stamp taxes and part or all of the spread between the expected bid and offer side of the market related to the securities comprising the redemption basket. Investors who use the services of a broker or other such intermediary in addition to an Authorized Participant to effect a redemption of a Creation Unit may also be assessed an amount to cover the cost of such services. The redemption fee charged by a Fund will comply with Rule 22c-2 of the 1940 Act which limits redemption fees to no more than 2% of the value of the shares redeemed.
6. Distribution Plan
The Board of Trustees adopted a Distribution and Service Plan pursuant to Rule 12b-1 under the 1940 Act. In accordance with the Rule 12b-1 plan, the Funds are authorized to pay an amount up to 0.25% of their average daily net assets each year to reimburse First Trust Portfolios L.P. (“FTP”), the distributor of the Funds, for amounts expended to finance activities primarily intended to result in the sale of Creation Units or the provision of investor services. FTP may also use this amount to compensate securities dealers or other persons that are Authorized Participants for providing distribution assistance, including broker-dealer and shareholder support and educational and promotional services.
No 12b-1 fees are currently paid by the Funds, and pursuant to a contractual arrangement, no 12b-1 fees will be paid any time before January 31, 2026.
7. Indemnification
The Trust, on behalf of the Funds, has a variety of indemnification obligations under contracts with its service providers. The Trust’s maximum exposure under these arrangements is unknown. However, the Trust has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.
8. Subsequent Events
Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were issued and has determined that there was the following subsequent event:
Effective November 14, 2024, BNY replaced BBH as the securities lending agent for RBLD, FTRI, NXTG, FPXI, FPXE, CIBR, GRID, and CARZ.
Page 88
Report of Independent Registered Public Accounting Firm
To the Shareholders and Board of Trustees of First Trust Exchange-Traded Fund II:
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statements of assets and liabilities of First Trust STOXX® European Select Dividend Index Fund, First Trust Alerian Disruptive Technology Real Estate ETF, First Trust Dow Jones Global Select Dividend Index Fund, First Trust Global Wind Energy ETF, First Trust Alerian U.S. NextGen Infrastructure ETF, First Trust NASDAQ® Clean Edge® Smart Grid Infrastructure Index Fund, First Trust Indxx Global Natural Resources Income ETF, First Trust Indxx Global Agriculture ETF, First Trust Indxx NextG ETF, First Trust S-Network Future Vehicles & Technology ETF, First Trust Cloud Computing ETF, First Trust International Equity Opportunities ETF, First Trust Nasdaq Cybersecurity ETF, First Trust IPOX® Europe Equity Opportunities ETF, First Trust Dow Jones International Internet ETF, and First Trust Bloomberg Emerging Market Democracies ETF (the “Funds”), each a series of the First Trust Exchange-Traded Fund II, including the portfolios of investments, as of September 30, 2024, the related statements of operations for the year then ended, and the statements of changes in net assets and the financial highlights for each of the periods indicated in the table below; and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Funds as of September 30, 2024, and the results of their operations for the year then ended, and the changes in their net assets and the financial highlights for each of the periods indicated in the table below, in conformity with accounting principles generally accepted in the United States of America.
 
Individual Funds
Included in the Trust
Statements of Changes
in Net Assets
Financial Highlights
First Trust STOXX® European
Select Dividend Index Fund
For the years ended
September 30, 2024, and 2023
For the years ended September 30, 2024, 2023, 2022, 2021, and
2020
First Trust Alerian Disruptive
Technology Real Estate ETF
First Trust Dow Jones Global
Select Dividend Index Fund
First Trust Global Wind Energy
ETF
First Trust Alerian U.S. NextGen
Infrastructure ETF
First Trust NASDAQ® Clean
Edge® Smart Grid
Infrastructure Index Fund
First Trust Indxx Global Natural
Resources Income ETF
First Trust Indxx Global
Agriculture ETF
First Trust Indxx NextG ETF
First Trust S-Network Future
Vehicles & Technology ETF
First Trust Cloud Computing
ETF
First Trust International Equity
Opportunities ETF
First Trust Nasdaq Cybersecurity
ETF
First Trust IPOX® Europe Equity
Opportunities ETF
First Trust Dow Jones
International Internet ETF
First Trust Bloomberg Emerging
Market Democracies ETF
For the year ended September 30, 2024, and for the period from March 2, 2023 (commencement
of investment operations) through September 30, 2023
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Report of Independent Registered Public Accounting Firm (Continued)
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Funds are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of September 30, 2024, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/ Deloitte & Touche, LLP
Chicago, Illinois
November 20, 2024
We have served as the auditor of one or more First Trust investment companies since 2001.
Page 90
Other Information
First Trust Exchange-Traded Fund II
September 30, 2024 (Unaudited)
Changes in and Disagreements with Accountants (Item 8 of Form N-CSR)
There were no changes in or disagreements with the Funds’ accountants during the fiscal year ended September 30, 2024.
Proxy Disclosures (Item 9 of Form N-CSR)
There were no matters submitted for vote by shareholders of any Fund during the fiscal year ended September 30, 2024.
Remuneration Paid to Directors, Officers, and Others (Item 10 of Form N-CSR)
For the Expense Cap Funds (as defined in the Notes to Financial Statements), the applicable aggregate remuneration paid by each Fund during the period covered by the report is included in the Statements of Operations. For the Unitary Fee Funds (as defined in the Notes to Financial Statements), Independent Trustees and any member of any advisory board of each Fund are compensated through the unitary management fee paid by each Fund to the advisor and not directly by each Fund. The investment advisory fee paid is included in the Statements of Operations.
Statement Regarding the Basis for the Board’s Approval of Investment Advisory Contract (Item 11 of Form N-CSR)
The Board of Trustees of First Trust Exchange-Traded Fund II (the “Trust”), including the Independent Trustees, unanimously approved the continuation of the Investment Management Agreements (as applicable to a specific Fund, the “Agreement” and collectively, the “Agreements”) with First Trust Advisors L.P. (the “Advisor”) on behalf of the following series of the Trust (each a “Fund” and collectively, the “Funds”):
First Trust Alerian Disruptive Technology Real Estate ETF (DTRE)
First Trust Alerian U.S. NextGen Infrastructure ETF (RBLD)
First Trust Cloud Computing ETF (SKYY)
First Trust Dow Jones International Internet ETF (FDNI)
First Trust Indxx Global Agriculture ETF (FTAG)
First Trust Indxx Global Natural Resources Income ETF (FTRI)
First Trust Indxx NextG ETF (NXTG)
First Trust International Equity Opportunities ETF (FPXI)
First Trust IPOX® Europe Equity Opportunities ETF (FPXE)
First Trust Nasdaq Cybersecurity ETF (CIBR)
First Trust S-Network Future Vehicles & Technology ETF (CARZ)
The Board approved the continuation of the Agreement for each Fund for a one-year period ending June 30, 2025 at a meeting held on June 2–3, 2024. The Board determined for each Fund that the continuation of the Agreement is in the best interests of the Fund in light of the nature, extent and quality of the services provided and such other matters as the Board considered to be relevant in the exercise of its business judgment.
To reach this determination for each Fund, the Board considered its duties under the Investment Company Act of 1940, as amended (the “1940 Act”), as well as under the general principles of state law, in reviewing and approving advisory contracts; the requirements of the 1940 Act in such matters; the fiduciary duty of investment advisors with respect to advisory agreements and compensation; the standards used by courts in determining whether investment company boards have fulfilled their duties; and the factors to be considered by the Board in voting on such agreements. At meetings held on April 16, 2024, April 25, 2024 and June 2–3, 2024, the Board, including the Independent Trustees, reviewed materials provided by the Advisor responding to requests for information from counsel to the Independent Trustees, submitted on behalf of the Independent Trustees, that, among other things, outlined: the services provided by the Advisor to each Fund (including the relevant personnel responsible for these services and their experience); the unitary fee rate schedule payable by each Fund as compared to fees charged to a peer group of funds (the “Expense Group”) and a broad peer universe of funds (the “Expense Universe”), each assembled by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent source, and as compared to fees charged to other clients of the Advisor, including other exchange-traded funds (“ETFs”) managed by the Advisor; the expense ratio of each Fund as compared to expense ratios of the funds in the Fund’s Expense Group and Expense Universe; performance information for each Fund, including comparisons of each Fund’s performance to that of one or more relevant benchmark indexes and to that of a performance group of funds and a broad performance universe of funds (the “Performance Universe”), each assembled by Broadridge; the nature of expenses incurred in providing services to each Fund and the potential for the Advisor to realize economies of scale, if any; profitability and other financial data for the Advisor; any indirect benefits to the Advisor and its affiliate, First Trust Portfolios L.P. (“FTP”); and information on the Advisor’s compliance program. The Board reviewed initial
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Other Information (Continued)
First Trust Exchange-Traded Fund II
September 30, 2024 (Unaudited)
materials with the Advisor at the meeting held on April 25, 2024, prior to which the Independent Trustees and their counsel met separately to discuss the information provided by the Advisor. Following the April 25, 2024 meeting, counsel to the Independent Trustees, on behalf of the Independent Trustees, requested certain clarifications and supplements to the materials provided, and the information provided in response to those requests was considered at an executive session of the Independent Trustees and their counsel held prior to the June 2–3, 2024 meeting, as well as at the June meeting. The Board applied its business judgment to determine whether the arrangement between the Trust and the Advisor continues to be a reasonable business arrangement from each Fund’s perspective. The Board determined that, given the totality of the information provided with respect to the Agreements, the Board had received sufficient information to renew the Agreements. The Board considered that shareholders chose to invest or remain invested in a Fund knowing that the Advisor manages the Fund and knowing the Fund’s unitary fee.
In reviewing the Agreement for each Fund, the Board considered the nature, extent and quality of the services provided by the Advisor under the Agreement. The Board considered that the Advisor is responsible for the overall management and administration of the Trust and each Fund and reviewed all of the services provided by the Advisor to the Funds, as well as the background and experience of the persons responsible for such services. In reviewing the services provided, the Board noted the compliance program that had been developed by the Advisor and considered that it includes a robust program for monitoring the Advisor’s and each Fund’s compliance with the 1940 Act, as well as each Fund’s compliance with its investment objective, policies and restrictions. The Board also considered a report from the Advisor with respect to its risk management functions related to the operation of the Funds. Finally, as part of the Board’s consideration of the Advisor’s services, the Advisor, in its written materials and at the April 25, 2024 meeting, described to the Board the scope of its ongoing investment in additional personnel and infrastructure to maintain and improve the quality of services provided to the Funds and the other funds in the First Trust Fund Complex. In light of the information presented and the considerations made, the Board concluded that the nature, extent and quality of the services provided to the Trust and each Fund by the Advisor under the Agreements have been and are expected to remain satisfactory and that the Advisor has managed each Fund consistent with its investment objective, policies and restrictions.
The Board considered the unitary fee rate schedule payable by each Fund under the applicable Agreement for the services provided. The Board considered that as part of the unitary fee the Advisor is responsible for each Fund’s expenses, including the cost of transfer agency, custody, fund administration, legal, audit and other services and license fees, if any, but excluding the fee payment under the applicable Agreement and interest, taxes, brokerage commissions and other expenses connected with the execution of portfolio transactions, distribution and service fees pursuant to a Rule 12b-1 plan, if any, and extraordinary expenses, if any. The Board received and reviewed information showing the fee rates and expense ratios of the peer funds in the Expense Groups, as well as advisory and unitary fee rates charged by the Advisor to other fund (including ETFs) and non-fund clients, as applicable. Because each Fund pays a unitary fee, the Board determined that expense ratios were the most relevant comparative data point. Based on the information provided, the Board noted that the total (net) expense ratio of FPXE was below the median total (net) expense ratio of the peer funds in its respective Expense Group and that the total (net) expense ratio of each other Fund was above the median total (net) expense ratio of the peer funds in its respective Expense Group. With respect to the Expense Groups, the Board discussed with Broadridge its methodology for assembling peer groups and discussed with the Advisor limitations in creating peer groups for index ETFs, including differences in underlying indexes and index-tracking methodologies that can result in greater management complexities across seemingly comparable ETFs, and different business models that may affect the pricing of services among ETF sponsors. The Board took these limitations and differences into account in considering the peer data. With respect to fees charged to other non-ETF clients, the Board considered differences between the Funds and other non-ETF clients that limited their comparability. In considering the unitary fee rate schedules overall, the Board also considered the Advisor’s statement that it seeks to meet investor needs through innovative and value-added investment solutions and the Advisor’s demonstrated long-term commitment to each Fund and the other funds in the First Trust Fund Complex.
The Board considered performance information for each Fund. The Board noted the process it has established for monitoring each Fund’s performance and portfolio risk on an ongoing basis, which includes quarterly performance reporting from the Advisor for the Funds. The Board determined that this process continues to be effective for reviewing each Fund’s performance. The Board received and reviewed information for periods ended December 31, 2023 regarding the performance of each Fund’s underlying index, the correlation between each Fund’s performance and that of its underlying index, each Fund’s tracking difference and each Fund’s excess return as compared to its benchmark index. With respect to DTRE, the Board noted that during 2021, it approved changes to the Fund’s investment objective and, effective September 29, 2022, the Fund changed its name and ticker symbol and began tracking the Alerian Disruptive Technology Real Estate Index, and that the performance information included a blend of the old and new indexes. With respect to RBLD, the Board noted that during 2021, it approved changes to the Fund’s investment objective and, effective August 1, 2022, the Fund changed its name and ticker symbol and began tracking the Alerian U.S. NextGen Infrastructure Index, and that the performance information included a blend of the old and new indexes. With respect to CARZ, the Board noted that during
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Other Information (Continued)
First Trust Exchange-Traded Fund II
September 30, 2024 (Unaudited)
2021, it approved changes to the Fund’s investment objective and, effective January 26, 2022, the Fund changed its name and began tracking the S-Network Electric & Future Vehicle Ecosystem Index, and that the performance information included a blend of the old and new indexes. With respect to NXTG, the Board noted that during 2019, it approved changes to the Fund’s investment objective and, effective May 29, 2019, the Fund changed its name and ticker symbol and began tracking the Indxx 5G & NextG Thematic Index, and that the performance information included a blend of the old and new indexes. With respect to FTRI and FTAG, the Board noted that during 2015, shareholders of each Fund approved changes to each Fund’s investment objective and, effective December 18, 2015, each Fund changed its name and ticker symbol, FTRI began tracking the Indxx Global Natural Resources Income Index and FTAG began tracking the Indxx Global Agricultural Index, and that the performance information included a blend of the old and new indexes. Based on the information provided and its ongoing review of performance, the Board concluded that each Fund was correlated to its underlying index and that the tracking difference for each Fund was within a reasonable range. In addition, the Board reviewed data prepared by Broadridge comparing each Fund’s performance to that of its respective Performance Universe and to that of a broad-based benchmark index and noted the Advisor’s discussion of FDNI’s performance at the April 25, 2024 meeting. However, given each Fund’s objective of seeking investment results that correspond generally to the performance of its underlying index, the Board placed more emphasis on its review of correlation and tracking difference.
On the basis of all the information provided on the unitary fee and performance of each Fund and the ongoing oversight by the Board, the Board concluded that the unitary fee for each Fund continues to be reasonable and appropriate in light of the nature, extent and quality of the services provided by the Advisor to each Fund under the Agreements.
The Board considered information and discussed with the Advisor whether there were any economies of scale in connection with providing advisory services to the Funds at current asset levels and whether the Funds may benefit from any economies of scale. The Board noted that the unitary fee rate schedule for each Fund includes breakpoints pursuant to which the unitary fee rate will be reduced as assets of the Fund meet certain thresholds. The Board considered the Advisor’s statement that it believes that its expenses relating to providing advisory services to the Funds will increase during the next twelve months as the Advisor continues to build infrastructure and add new staff. The Board also noted that under the unitary fee structure, any reduction in expenses associated with the management and operations of the Funds would benefit the Advisor, but that the unitary fee structure provides a level of certainty in expenses for shareholders of the Funds. The Board concluded that the unitary fee rate schedule for each Fund reflects an appropriate level of sharing of any economies of scale that may be realized in the management of the Fund at current asset levels. The Board considered the revenues and allocated costs (including the allocation methodology) of the Advisor in serving as investment advisor to each Fund for the twelve months ended December 31, 2023 and the estimated profitability level for each Fund calculated by the Advisor based on such data, as well as complex-wide and product-line profitability data, for the same period. The Board noted the inherent limitations in the profitability analysis and concluded that, based on the information provided, the Advisor’s profitability level for each Fund was not unreasonable. In addition, the Board considered indirect benefits described by the Advisor that may be realized from its relationship with the Funds. The Board considered that the Advisor had identified as an indirect benefit to the Advisor and FTP their exposure to investors and brokers who, absent their exposure to the Funds, may have had no dealings with the Advisor or FTP, and noted that the Advisor does not utilize soft dollars in connection with the Funds. The Board concluded that the character and amount of potential indirect benefits to the Advisor were not unreasonable.
Based on all of the information considered and the conclusions reached, the Board, including the Independent Trustees, unanimously determined that the terms of the Agreements continue to be fair and reasonable and that the continuation of the Agreements is in the best interests of each Fund. No single factor was determinative in the Board’s analysis.
The Board of Trustees of First Trust Exchange-Traded Fund II (the “Trust”), including the Independent Trustees, unanimously approved the continuation of the Investment Management Agreement (the “Agreement”) with First Trust Advisors L.P. (the “Advisor”) on behalf of the following series of the Trust (each a “Fund” and collectively, the “Funds”):
First Trust Dow Jones Global Select Dividend Index Fund (FGD)
First Trust Global Wind Energy ETF (FAN)
First Trust NASDAQ® Clean Edge® Smart Grid Infrastructure Index Fund (GRID)
First Trust STOXX® European Select Dividend Index Fund (FDD)
The Board approved the continuation of the Agreement for each Fund for a one-year period ending June 30, 2025 at a meeting held on June 2–3, 2024. The Board determined for each Fund that the continuation of the Agreement is in the best interests of the Fund in light of the nature, extent and quality of the services provided and such other matters as the Board considered to be relevant in the exercise of its business judgment.
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Other Information (Continued)
First Trust Exchange-Traded Fund II
September 30, 2024 (Unaudited)
To reach this determination for each Fund, the Board considered its duties under the Investment Company Act of 1940, as amended (the “1940 Act”), as well as under the general principles of state law, in reviewing and approving advisory contracts; the requirements of the 1940 Act in such matters; the fiduciary duty of investment advisors with respect to advisory agreements and compensation; the standards used by courts in determining whether investment company boards have fulfilled their duties; and the factors to be considered by the Board in voting on such agreements. At meetings held on April 16, 2024, April 25, 2024 and June 2–3, 2024, the Board, including the Independent Trustees, reviewed materials provided by the Advisor responding to requests for information from counsel to the Independent Trustees, submitted on behalf of the Independent Trustees, that, among other things, outlined: the services provided by the Advisor to each Fund (including the relevant personnel responsible for these services and their experience); the advisory fee rate schedule payable by each Fund as compared to fees charged to a peer group of funds (the “Expense Group”) and a broad peer universe of funds (the “Expense Universe”), each assembled by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent source, and as compared to fees charged to other clients of the Advisor, including other exchange-traded funds (“ETFs”) managed by the Advisor; the expense ratio of each Fund as compared to expense ratios of the funds in the Fund’s Expense Group and Expense Universe; performance information for each Fund, including comparisons of each Fund’s performance to that of one or more relevant benchmark indexes and to that of a performance group of funds and a broad performance universe of funds (the “Performance Universe”), each assembled by Broadridge; the nature of expenses incurred in providing services to each Fund and the potential for the Advisor to realize economies of scale, if any; profitability and other financial data for the Advisor; any indirect benefits to the Advisor and its affiliate, First Trust Portfolios L.P. (“FTP”); and information on the Advisor’s compliance program. The Board reviewed initial materials with the Advisor at the meeting held on April 25, 2024, prior to which the Independent Trustees and their counsel met separately to discuss the information provided by the Advisor. Following the April 25, 2024 meeting, counsel to the Independent Trustees, on behalf of the Independent Trustees, requested certain clarifications and supplements to the materials provided, and the information provided in response to those requests was considered at an executive session of the Independent Trustees and their counsel held prior to the June 2–3, 2024 meeting, as well as at the June meeting. The Board applied its business judgment to determine whether the arrangement between the Trust and the Advisor continues to be a reasonable business arrangement from each Fund’s perspective. The Board determined that, given the totality of the information provided with respect to the Agreement, the Board had received sufficient information to renew the Agreement. The Board considered that shareholders chose to invest or remain invested in a Fund knowing that the Advisor manages the Fund and knowing the Fund’s advisory fee.
In reviewing the Agreement for each Fund, the Board considered the nature, extent and quality of the services provided by the Advisor under the Agreement. The Board considered that the Advisor is responsible for the overall management and administration of the Trust and each Fund and reviewed all of the services provided by the Advisor to the Funds, as well as the background and experience of the persons responsible for such services. In reviewing the services provided, the Board noted the compliance program that had been developed by the Advisor and considered that it includes a robust program for monitoring the Advisor’s and each Fund’s compliance with the 1940 Act, as well as each Fund’s compliance with its investment objective, policies and restrictions. The Board also considered a report from the Advisor with respect to its risk management functions related to the operation of the Funds. Finally, as part of the Board’s consideration of the Advisor’s services, the Advisor, in its written materials and at the April 25, 2024 meeting, described to the Board the scope of its ongoing investment in additional personnel and infrastructure to maintain and improve the quality of services provided to the Funds and the other funds in the First Trust Fund Complex. In light of the information presented and the considerations made, the Board concluded that the nature, extent and quality of the services provided to the Trust and each Fund by the Advisor under the Agreement have been and are expected to remain satisfactory and that the Advisor has managed each Fund consistent with its investment objective, policies and restrictions.
The Board considered the advisory fee rate schedule payable by each Fund under the Agreement for the services provided. The Board considered that the Advisor agreed to extend the current expense cap for each Fund through January 31, 2026. The Board received and reviewed information showing the fee rates and expense ratios of the peer funds in the Expense Groups, as well as advisory and unitary fee rates charged by the Advisor to other fund (including ETFs) and non-fund clients, as applicable. Because each Fund’s Expense Group included peer funds that pay a unitary fee, the Board determined that expense ratios were the most relevant comparative data point. Based on the information provided, the Board noted that the total (net) expense ratio of FGD was below the median total (net) expense ratio of the peer funds in its respective Expense Group and that the total (net) expense ratio of each other Fund was above the median total (net) expense ratio of the peer funds in its respective Expense Group. With respect to the Expense Groups, the Board discussed with Broadridge its methodology for assembling peer groups and discussed with the Advisor limitations in creating peer groups for index ETFs, including differences in underlying indexes and index-tracking methodologies that can result in greater management complexities across seemingly comparable ETFs, and different business models that may affect the pricing of services among ETF sponsors. The Board took these limitations and differences into account in considering the peer data. With respect to fees charged to other non-ETF clients, the Board considered differences between the Funds and other non-ETF clients that limited
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Other Information (Continued)
First Trust Exchange-Traded Fund II
September 30, 2024 (Unaudited)
their comparability. In considering the advisory fee rate schedules overall, the Board also considered the Advisor’s statement that it seeks to meet investor needs through innovative and value-added investment solutions and the Advisor’s demonstrated long-term commitment to each Fund and the other funds in the First Trust Fund Complex.
The Board considered performance information for each Fund. The Board noted the process it has established for monitoring each Fund’s performance and portfolio risk on an ongoing basis, which includes quarterly performance reporting from the Advisor for the Funds. The Board determined that this process continues to be effective for reviewing each Fund’s performance. The Board received and reviewed information for periods ended December 31, 2023 regarding the performance of each Fund’s underlying index, the correlation between each Fund’s performance and that of its underlying index, each Fund’s tracking difference and each Fund’s excess return as compared to its benchmark index. Based on the information provided and its ongoing review of performance, the Board concluded that each Fund was correlated to its underlying index and that the tracking difference for each Fund was within a reasonable range. In addition, the Board reviewed data prepared by Broadridge comparing each Fund’s performance to that of its respective Performance Universe and to that of a broad-based benchmark index and noted the Advisor’s discussion of FGD’s performance at the April 25, 2024 meeting. However, given each Fund’s objective of seeking investment results that correspond generally to the performance of its underlying index, the Board placed more emphasis on its review of correlation and tracking difference.
On the basis of all the information provided on the fees, expenses and performance of each Fund and the ongoing oversight by the Board, the Board concluded that the advisory fee for each Fund continues to be reasonable and appropriate in light of the nature, extent and quality of the services provided by the Advisor to each Fund under the Agreement.
The Board considered information and discussed with the Advisor whether there were any economies of scale in connection with providing advisory services to the Funds at current asset levels and whether the Funds may benefit from any economies of scale. The Board noted that the advisory fee rate schedule for each Fund includes breakpoints pursuant to which the advisory fee rate will be reduced as assets of the Fund meet certain thresholds. The Board considered the Advisor’s statement that it believes that its expenses relating to providing advisory services to the Funds will increase during the next twelve months as the Advisor continues to build infrastructure and add new staff. The Board concluded that the advisory fee rate schedule for each Fund reflects an appropriate level of sharing of any economies of scale that may be realized in the management of the Fund at current asset levels. The Board considered the revenues and allocated costs (including the allocation methodology) of the Advisor in serving as investment advisor to each Fund for the twelve months ended December 31, 2023 and the estimated profitability level for each Fund calculated by the Advisor based on such data, as well as complex-wide and product-line profitability data, for the same period. The Board noted the inherent limitations in the profitability analysis and concluded that, based on the information provided, the Advisor’s profitability level for each Fund was not unreasonable. In addition, the Board considered indirect benefits described by the Advisor that may be realized from its relationship with the Funds. The Board considered that the Advisor had identified as an indirect benefit to the Advisor and FTP their exposure to investors and brokers who, absent their exposure to the Funds, may have had no dealings with the Advisor or FTP, and noted that the Advisor does not utilize soft dollars in connection with the Funds. The Board concluded that the character and amount of potential indirect benefits to the Advisor were not unreasonable.
Based on all of the information considered and the conclusions reached, the Board, including the Independent Trustees, unanimously determined that the terms of the Agreement continue to be fair and reasonable and that the continuation of the Agreement is in the best interests of each Fund. No single factor was determinative in the Board’s analysis.
The Board of Trustees of First Trust Exchange-Traded Fund II (the “Trust”), including the Independent Trustees, unanimously approved the continuation of the Investment Management Agreement (the “Agreement”) with First Trust Advisors L.P. (the “Advisor”) on behalf of the First Trust Bloomberg Emerging Market Democracies ETF (the “Fund”). The Board approved the continuation of the Agreement for a one-year period ending June 30, 2025 at a meeting held on June 2–3, 2024. The Board determined that the continuation of the Agreement is in the best interests of the Fund in light of the nature, extent and quality of the services provided and such other matters as the Board considered to be relevant in the exercise of its business judgment.
To reach this determination, the Board considered its duties under the Investment Company Act of 1940, as amended (the “1940 Act”), as well as under the general principles of state law, in reviewing and approving advisory contracts; the requirements of the 1940 Act in such matters; the fiduciary duty of investment advisors with respect to advisory agreements and compensation; the standards used by courts in determining whether investment company boards have fulfilled their duties; and the factors to be considered by the Board in voting on such agreements. At meetings held on April 16, 2024, April 25, 2024 and June 2–3, 2024, the Board, including the Independent Trustees, reviewed materials provided by the Advisor responding to requests for information from counsel to the Independent Trustees, submitted on behalf of the Independent Trustees, that, among other things, outlined: the services provided by
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Other Information (Continued)
First Trust Exchange-Traded Fund II
September 30, 2024 (Unaudited)
the Advisor to the Fund (including the relevant personnel responsible for these services and their experience); the unitary fee rate schedule payable by the Fund as compared to fees charged to a peer group of funds (the “Expense Group”) and a broad peer universe of funds (the “Expense Universe”), each assembled by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent source, and as compared to fees charged to other clients of the Advisor, including other exchange-traded funds (“ETFs”) managed by the Advisor; the expense ratio of the Fund as compared to expense ratios of the funds in the Fund’s Expense Group and Expense Universe; performance information for the Fund; the nature of expenses incurred in providing services to the Fund and the potential for the Advisor to realize economies of scale, if any; profitability and other financial data for the Advisor; any indirect benefits to the Advisor and its affiliate, First Trust Portfolios L.P. (“FTP”); and information on the Advisor’s compliance program. The Board reviewed initial materials with the Advisor at the meeting held on April 25, 2024, prior to which the Independent Trustees and their counsel met separately to discuss the information provided by the Advisor. Following the April 25, 2024 meeting, counsel to the Independent Trustees, on behalf of the Independent Trustees, requested certain clarifications and supplements to the materials provided, and the information provided in response to those requests was considered at an executive session of the Independent Trustees and their counsel held prior to the June 2–3, 2024 meeting, as well as at the June meeting. The Board applied its business judgment to determine whether the arrangement between the Trust and the Advisor continues to be a reasonable business arrangement from the Fund’s perspective. The Board determined that, given the totality of the information provided with respect to the Agreement, the Board had received sufficient information to renew the Agreement. The Board considered that shareholders chose to invest or remain invested in the Fund knowing that the Advisor manages the Fund and knowing the Fund’s unitary fee.
In reviewing the Agreement, the Board considered the nature, extent and quality of the services provided by the Advisor under the Agreement. The Board considered that the Advisor is responsible for the overall management and administration of the Trust and the Fund and reviewed all of the services provided by the Advisor to the Fund, as well as the background and experience of the persons responsible for such services. In reviewing the services provided, the Board noted the compliance program that had been developed by the Advisor and considered that it includes a robust program for monitoring the Advisor’s and the Fund’s compliance with the 1940 Act, as well as the Fund’s compliance with its investment objective, policies and restrictions. The Board also considered a report from the Advisor with respect to its risk management functions related to the operation of the Fund. Finally, as part of the Board’s consideration of the Advisor’s services, the Advisor, in its written materials and at the April 25, 2024 meeting, described to the Board the scope of its ongoing investment in additional personnel and infrastructure to maintain and improve the quality of services provided to the Fund and the other funds in the First Trust Fund Complex. In light of the information presented and the considerations made, the Board concluded that the nature, extent and quality of the services provided to the Trust and the Fund by the Advisor under the Agreement have been and are expected to remain satisfactory and that the Advisor has managed the Fund consistent with its investment objective, policies and restrictions.
The Board considered the unitary fee rate schedule payable by the Fund under the Agreement for the services provided. The Board considered that as part of the unitary fee the Advisor is responsible for the Fund’s expenses, including the cost of transfer agency, custody, fund administration, legal, audit and other services and license fees, if any, but excluding the fee payment under the Agreement and interest, taxes, brokerage commissions and other expenses connected with the execution of portfolio transactions, distribution and service fees pursuant to a Rule 12b-1 plan, if any, and extraordinary expenses, if any. The Board received and reviewed information showing the fee rates and expense ratios of the peer funds in the Expense Group, as well as advisory and unitary fee rates charged by the Advisor to other fund (including ETFs) and non-fund clients, as applicable. Because the Fund pays a unitary fee, the Board determined that expense ratios were the most relevant comparative data point. Based on the information provided, the Board noted that the total (net) expense ratio for the Fund was above the median total (net) expense ratio of the peer funds in the Expense Group. With respect to the Expense Group, the Board discussed with Broadridge its methodology for assembling peer groups and discussed with the Advisor limitations in creating peer groups for index ETFs, including differences in underlying indexes and index-tracking methodologies that can result in greater management complexities across seemingly comparable ETFs, and different business models that may affect the pricing of services among ETF sponsors. The Board took these limitations and differences into account in considering the peer data. With respect to fees charged to other non-ETF clients, the Board considered differences between the Fund and other non-ETF clients that limited their comparability. In considering the unitary fee rate schedule overall, the Board also considered the Advisor’s statement that it seeks to meet investor needs through innovative and value-added investment solutions and the Advisor’s demonstrated long-term commitment to the Fund and the other funds in the First Trust Fund Complex.
The Board considered performance information for the Fund. The Board noted the process it has established for monitoring the Fund’s performance and portfolio risk on an ongoing basis, which includes quarterly performance reporting from the Advisor for the Fund. The Board determined that this process continues to be effective for reviewing the Fund’s performance. Because the Fund commenced operations on March 2, 2023 and therefore has a limited performance history, comparative performance information for the Fund was not reviewed.
Page 96
Other Information (Continued)
First Trust Exchange-Traded Fund II
September 30, 2024 (Unaudited)
On the basis of all the information provided on the unitary fee for the Fund and the ongoing oversight by the Board, the Board concluded that the unitary fee for the Fund continues to be reasonable and appropriate in light of the nature, extent and quality of the services provided by the Advisor to the Fund under the Agreement.
The Board considered information and discussed with the Advisor whether there were any economies of scale in connection with providing advisory services to the Fund at current asset levels and whether the Fund may benefit from any economies of scale. The Board noted that the unitary fee rate schedule for the Fund includes breakpoints pursuant to which the unitary fee rate will be reduced as assets of the Fund meet certain thresholds. The Board considered the Advisor’s statement that it believes that its expenses relating to providing advisory services to the Fund will increase during the next twelve months as the Advisor continues to build infrastructure and add new staff. The Board also noted that under the unitary fee structure, any reduction in expenses associated with the management and operations of the Fund would benefit the Advisor, but that the unitary fee structure provides a level of certainty in expenses for shareholders of the Fund. The Board concluded that the unitary fee rate schedule for the Fund reflects an appropriate level of sharing of any economies of scale that may be realized in the management of the Fund at current asset levels. The Board considered the revenues and allocated costs (including the allocation methodology) of the Advisor in serving as investment advisor to the Fund for the period from inception through December 31, 2023 and the estimated profitability level for the Fund calculated by the Advisor based on such data, as well as complex-wide and product-line profitability data, for the twelve months ended December 31, 2023. The Board noted the inherent limitations in the profitability analysis and concluded that, based on the information provided, the Advisor’s profitability level for the Fund was not unreasonable. In addition, the Board considered indirect benefits described by the Advisor that may be realized from its relationship with the Fund. The Board considered that the Advisor had identified as an indirect benefit to the Advisor and FTP their exposure to investors and brokers who, absent their exposure to the Fund, may have had no dealings with the Advisor or FTP, and noted that the Advisor does not utilize soft dollars in connection with the Fund. The Board concluded that the character and amount of potential indirect benefits to the Advisor were not unreasonable.
Based on all of the information considered and the conclusions reached, the Board, including the Independent Trustees, unanimously determined that the terms of the Agreement continue to be fair and reasonable and that the continuation of the Agreement is in the best interests of the Fund. No single factor was determinative in the Board’s analysis.
Remuneration Disclosure Under the Alternative Investment Fund Managers Directive
First Trust Advisors L.P. (“First Trust”) is authorised and regulated by the U.S. Securities and Exchange Commission and is entitled to market shares of certain First Trust Exchange-Traded Fund II funds it manages (the “Funds”) in certain member states in the European Economic Area in accordance with the cooperation arrangements in Article 42 of the Alternative Investment Fund Managers Directive (the “Directive”). First Trust is required under the Directive to make disclosures in respect of remuneration. The following disclosures are made in line with First Trust’s interpretation of currently available regulatory guidance on remuneration disclosures.
During the year ended December 31, 2023, the amount of remuneration paid (or to be paid) by First Trust Advisors L.P. in respect of the Funds is $5,014,330. This figure is comprised of $220,586 paid (or to be paid) in fixed compensation and $4,793,744 paid (or to be paid) in variable compensation. There were a total of 26 beneficiaries of the remuneration described above. Those amounts include $2,504,893 paid (or to be paid) to senior management of First Trust Advisors L.P. and $2,509,437 paid (or to be paid) to other employees whose professional activities have a material impact on the risk profiles of First Trust Advisors L.P. or the Funds (collectively, “Code Staff”).
Code Staff included in the aggregated figures disclosed above are rewarded in line with First Trust’s remuneration policy (the “Remuneration Policy”) which is determined and implemented by First Trust’s senior management. The Remuneration Policy reflects First Trust’s ethos of good governance and encapsulates the following principal objectives:
i. 
to provide a clear link between remuneration and performance of First Trust and to avoid rewarding for failure;
ii. 
to promote sound and effective risk management consistent with the risk profiles of the funds managed by First Trust; and
iii. 
to remunerate staff in line with the business strategy, objectives, values and interests of First Trust and the funds managed by First Trust in a manner that avoids conflicts of interest.
First Trust assesses various risk factors which it is exposed to when considering and implementing remuneration for Code Staff and considers whether any potential award to such person(s) would give rise to a conflict of interest. First Trust does not reward failure, or consider the taking of risk or failure to take risk in its remuneration of Code Staff.
Page 97
Other Information (Continued)
First Trust Exchange-Traded Fund II
September 30, 2024 (Unaudited)
First Trust assesses performance for the purposes of determining payments in respect of performance-related remuneration of Code Staff by reference to a broad range of measures including (i) individual performance (using financial and non-financial criteria), and (ii) the overall performance of First Trust. Remuneration is not based upon the performance of the Funds.
The elements of remuneration are balanced between fixed and variable and the senior management sets fixed salaries at a level sufficient to ensure that variable remuneration incentivises and rewards strong individual performance but does not encourage excessive risk taking.
No individual is involved in setting his or her own remuneration.
Federal Tax Information
For the taxable year ended September 30, 2024, the following percentages of income dividends paid by the Funds qualify for the dividends received deduction available to corporations:
 
 
Dividends Received
Deduction
First Trust STOXX® European Select Dividend Index Fund
0.00
%
First Trust Alerian Disruptive Technology Real Estate ETF
0.00
%
First Trust Dow Jones Global Select Dividend Index Fund
10.48
%
First Trust Global Wind Energy ETF
18.51
%
First Trust Alerian U.S. NextGen Infrastructure ETF
100.00
%
First Trust NASDAQ® Clean Edge® Smart Grid
Infrastructure Index Fund
19.44
%
First Trust Indxx Global Natural Resources Income ETF
15.55
%
First Trust Indxx Global Agriculture ETF
27.13
%
First Trust Indxx NextG ETF
18.83
%
First Trust S-Network Future Vehicles & Technology ETF
43.26
%
First Trust Cloud Computing ETF
0.00
%
First Trust International Equity Opportunities ETF
0.00
%
First Trust Nasdaq Cybersecurity ETF
100.00
%
First Trust IPOX® Europe Equity Opportunities ETF
0.00
%
First Trust Dow Jones International Internet ETF
0.00
%
First Trust Bloomberg Emerging Market Democracies ETF
0.00
%
For the taxable year ended September 30, 2024, the following percentages of income dividends paid by the Funds are hereby designated as qualified dividend income:
 
 
Qualified Dividend
Income
First Trust STOXX® European Select Dividend Index Fund
90.00
%
First Trust Alerian Disruptive Technology Real Estate ETF
4.10
%
First Trust Dow Jones Global Select Dividend Index Fund
81.97
%
First Trust Global Wind Energy ETF
100.00
%
First Trust Alerian U.S. NextGen Infrastructure ETF
100.00
%
First Trust NASDAQ® Clean Edge® Smart Grid
Infrastructure Index Fund
85.88
%
First Trust Indxx Global Natural Resources Income ETF
84.88
%
First Trust Indxx Global Agriculture ETF
100.00
%
First Trust Indxx NextG ETF
70.01
%
First Trust S-Network Future Vehicles & Technology ETF
100.00
%
First Trust Cloud Computing ETF
0.00
%
First Trust International Equity Opportunities ETF
82.68
%
First Trust Nasdaq Cybersecurity ETF
100.00
%
First Trust IPOX® Europe Equity Opportunities ETF
100.00
%
Page 98
Other Information (Continued)
First Trust Exchange-Traded Fund II
September 30, 2024 (Unaudited)
 
Qualified Dividend
Income
First Trust Dow Jones International Internet ETF
8.79
%
First Trust Bloomberg Emerging Market Democracies ETF
38.08
%
A portion of each of the Funds’ 2024 ordinary dividends (including short-term capital gains) paid to its shareholders during the fiscal year ended September 30, 2024, may be eligible for the Qualified Business Income (QBI) Deduction under the Internal Revenue Code of 1986, as amended (the “Code”), Section 199A for the aggregate dividends each Fund received from the underlying Real Estate Investment Trusts (REITs) these Funds invest in.
The following Funds meet the requirements of Section 853 of the Code and elect to pass through to their shareholders credit for foreign taxes paid. For the taxable year ended September 30, 2024, the total amounts of income received by the Funds from sources within foreign countries and possessions of the United States and of taxes paid to such countries are as follows:
 
 
Gross Foreign Income
Foreign Taxes Paid
 
Amount
Per Share
Amount
Per Share
First Trust STOXX® European Select Dividend Index Fund
$11,406,891
$0.88
$364,098
$0.03
First Trust Dow Jones Global Select Dividend Index Fund
35,574,833
1.53
3,331,341
0.14
First Trust Global Wind Energy ETF
3,589,083
0.33
186,262
0.02
First Trust NASDAQ® Clean Edge® Smart Grid Infrastructure
Index Fund
20,062,788
1.38
1,255,782
0.09
First Trust Indxx Global Natural Resources Income ETF
8,428,380
0.82
529,103
0.05
First Trust Indxx Global Agriculture ETF
249,308
1.04
72,126
0.30
First Trust Indxx NextG ETF
8,049,241
1.83
1,105,425
0.25
First Trust International Equity Opportunities ETF
2,729,070
0.91
218,661
0.07
First Trust IPOX® Europe Equity Opportunities ETF
109,816
0.73
11,415
0.08
First Trust Dow Jones International Internet ETF
219,676
0.16
1,493
0.00
First Trust Bloomberg Emerging Market Democracies ETF
255,325
0.73
25,825
0.07
Disclaimer
First Trust Cloud Computing ETF
First Trust Nasdaq Cybersecurity ETF
Nasdaq®, ISE CTA Cloud ComputingTM Index, and Nasdaq CTA CybersecurityTM Index (“the Nasdaq Indexes”) are registered trademarks and service marks of Nasdaq, Inc. (together with its affiliates hereinafter referred to as the “Corporations”) and are licensed for use by First Trust. The Funds have not been passed on by the Corporations as to their legality or suitability. The Funds are not issued, endorsed, sold or promoted by the Corporations. THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE FUNDS.
First Trust NASDAQ® Clean Edge® Smart Grid Infrastructure Index Fund
First Trust Global Wind Energy ETF
Nasdaq®, Clean Edge®, Nasdaq Clean Edge Smart Grid InfrastructureTM Index, and ISE Clean Edge Global Wind EnergyTM Index (“the Nasdaq Indexes”) are registered trademarks and service marks of Nasdaq, Inc. and Clean Edge, Inc., respectively (together with its affiliates hereinafter referred to as the “Corporations”) and are licensed for use by First Trust. The Funds have not been passed on by the Corporations as to their legality or suitability. The Funds are not issued, endorsed, sold or promoted by the Corporations. THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE FUNDS.
First Trust Dow Jones Global Select Dividend Index Fund
First Trust Dow Jones International Internet ETF
Dow Jones Global Select Dividend Index and Dow Jones International Internet Index (“S&P Dow Jones Indexes”) are products of S&P Dow Jones Indices LLC or its affiliates (“SPDJI”) and have been licensed for use by First Trust. S&P® is a registered trademark of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by First Trust. The
Page 99
Other Information (Continued)
First Trust Exchange-Traded Fund II
September 30, 2024 (Unaudited)
Funds are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, or their respective affiliates and none of such parties make any representation regarding the advisability of investing in such product nor do they have any liability for any errors, omissions, or interruptions of the S&P Dow Jones Indexes.
First Trust Alerian Disruptive Technology Real Estate ETF
First Trust Alerian U.S. NextGen Infrastructure ETF
Alerian, Alerian Disruptive Technology Real Estate Index and Alerian U.S. NextGen Infrastructure Index (“the Alerian Indexes”) are service marks of VettaFi LLC and have been licensed for use by First Trust Advisors L.P. The Funds are not issued, sponsored, endorsed, sold or promoted by VettaFi LLC or its affiliates (collectively, “VettaFi”). VettaFi makes no representation or warranty, express or implied, to the purchasers or owners of the Funds or any member of the public regarding the advisability of investing in securities generally or in the Funds particularly or the ability of the Alerian Indexes to track general market performances. VettaFi’s only relationship to the Funds is the licensing of the service marks and the Alerian Indexes, which is determined, composed and calculated by VettaFi without regard to First Trust Advisors L.P. or the Funds. VettaFi is not responsible for and has not participated in the determination of the timing of, prices at, or quantities of the Funds issued by First Trust Advisors L.P. VettaFi has no obligation or liability in connection with the issuance, administration, marketing or trading of the Funds.
First Trust Indxx Global Agriculture ETF
First Trust Indxx Global Natural Resources Income ETF
First Trust Indxx NextG ETF
Indxx, Indxx Global Agriculture Index, Indxx Global Natural Resources Income Index and Indxx 5G & NextG Thematic IndexSM (“Indxx Indexes”) are trademarks of Indxx, Inc. (“Indxx”) and have been licensed for use for certain purposes by First Trust. The Funds are not sponsored, endorsed, sold or promoted by Indxx and Indxx makes no representation regarding the advisability of trading in such products. The Indxx Indexes are determined, composed and calculated by Indxx without regard to First Trust or the Funds.
First Trust International Equity Opportunities ETF
First Trust IPOX® Europe Equity Opportunities ETF
IPOX®, IPOX® International Index, and IPOX®-100 Europe Index are registered international trademarks and service marks of IPOX® Schuster LLC (“IPOX”) and have been licensed for use by First Trust. The Funds are not sponsored, endorsed, sold or promoted by IPOX, and IPOX makes no representation regarding the advisability of trading in such Funds. IPOX® is an international trademark of IPOX Schuster LLC. Index of Initial Public Offerings (IPOX) and IPOX Derivatives Patent No. US 7,698,197.
First Trust STOXX® European Select Dividend Index Fund
The STOXX® Europe Select Dividend 30 Index (“STOXX Index”) is the intellectual property (including registered trademarks) of STOXX Ltd., Zug, Switzerland (“STOXX”), Deutsche Börse Group or their licensors, which is used under license. The Fund is neither sponsored nor promoted, distributed or in any other manner supported by STOXX, Deutsche Börse Group or their licensors, research partners or data providers and STOXX, Deutsche Börse Group and their licensors, research partners or data providers do not give any warranty, and exclude any liability (whether in negligence or otherwise) with respect thereto generally or specifically in relation to any errors, omissions or interruptions in the STOXX Index or its data.
First Trust S-Network Future Vehicles & Technology ETF
S-Network and S-Network Electric & Future Vehicle Ecosystem Index are service marks of VettaFi LLC and have been licensed for use by First Trust Advisors L.P. The Fund is not issued, sponsored, endorsed, sold or promoted by VettaFi LLC or its affiliates (collectively, “VettaFi”). VettaFi makes no representation or warranty, express or implied, to the purchasers or owners of the Fund or any member of the public regarding the advisability of investing in securities generally or in the Fund particularly or the ability of the Index to track general market performance. VettaFi’s only relationship to the Fund is the licensing of the service marks and the Index, which is determined, composed and calculated by VettaFi without regard to First Trust Advisors L.P. or the Fund. VettaFi is not responsible for and has not participated in the determination of the timing of, prices at, or quantities of the Fund issued by First Trust Advisors L.P. VettaFi has no obligation or liability in connection with the issuance, administration, marketing or trading of the Fund.
Page 100
Other Information (Continued)
First Trust Exchange-Traded Fund II
September 30, 2024 (Unaudited)
First Trust Bloomberg Emerging Market Democracies ETF
“Bloomberg®” and Bloomberg Emerging Market Democracies Index licensed herein (the “Indices”) are service marks of Bloomberg Finance L.P. and its affiliates, including Bloomberg Index Services Limited (“BISL”), the administrator of the Indices (collectively, “Bloomberg”) and have been licensed for use for certain purposes by First Trust Advisors L.P. (the “Licensee”). Bloomberg is not affiliated with the Licensee, and Bloomberg does not approve, endorse, review, or recommend the financial products referenced herein (the “Financial Products”). Bloomberg does not guarantee the timeliness, accurateness, or completeness of any data or information relating to the Indices or the Financial Products.
Page 101
 
 
 
Annual Financial
Statements and
Other Information
For the Period Ended
September 30, 2024
 
First Trust Exchange-Traded Fund II
Book 2
 
First Trust Nasdaq Lux Digital Health Solutions ETF (EKG)
First Trust Indxx Metaverse ETF (ARVR)
First Trust Emerging Markets Human Flourishing ETF
(FTHF)
Table of Contents 
First Trust Exchange-Traded Fund II
Annual Financial Statements and Other Information
September 30, 2024 
Performance and Risk Disclosure
There is no assurance that any series of First Trust Exchange-Traded Fund II (the “Trust”) described in this report (each such series is referred to as a “Fund” and collectively, as the “Funds”) will achieve its investment objective. Each Fund is subject to market risk, which is the possibility that the market values of securities owned by the Fund will decline and that the value of the Fund’s shares may therefore be less than what you paid for them. Accordingly, you can lose money by investing in a Fund.
Performance data quoted represents past performance, which is no guarantee of future results, and current performance may be lower or higher than the figures shown. For the most recent month-end performance figures, please visit www.ftportfolios.com or speak with your financial advisor. Investment returns, net asset value and share price will fluctuate and Fund shares, when sold, may be worth more or less than their original cost.
First Trust Advisors L.P., the Funds’ advisor, may also periodically provide additional information on Fund performance on each Fund’s webpage at www.ftportfolios.com.
How to Read This Report
This report contains information that may help you evaluate your investment. It includes details about each Fund and presents data that provides insight into each Fund’s performance and investment approach.
The material risks of investing in each Fund are spelled out in its prospectus, statement of additional information, and other Fund regulatory filings.
First Trust Nasdaq Lux Digital Health Solutions ETF (EKG)
Portfolio of Investments
September 30, 2024
 
Shares
Description
Value
COMMON STOCKS — 100.0%
Biotechnology — 11.6%
1,630
Exact Sciences Corp. (a)
$111,036
1,000
Myriad Genetics, Inc. (a)
27,390
850
Natera, Inc. (a)
107,908
501
Twist Bioscience Corp. (a)
22,635
826
Veracyte, Inc. (a)
28,117
 
297,086
Health Care Equipment &
Supplies — 52.8%
424
Align Technology, Inc. (a)
107,832
1,438
Alphatec Holdings, Inc. (a)
7,995
2,901
Dexcom, Inc. (a)
194,483
326
Establishment Labs Holdings,
Inc. (a)
14,106
1,347
Globus Medical, Inc.,
Class A (a)
96,364
1,238
Hologic, Inc. (a)
100,848
352
Inspire Medical Systems, Inc. (a)
74,290
496
Insulet Corp. (a)
115,444
408
Intuitive Surgical, Inc. (a)
200,438
279
iRhythm Technologies, Inc. (a)
20,713
471
Masimo Corp. (a)
62,798
533
PROCEPT BioRobotics
Corp. (a)
42,704
584
QuidelOrtho Corp. (a)
26,630
821
ResMed, Inc.
200,423
679
Tandem Diabetes Care, Inc. (a)
28,796
350
TransMedics Group, Inc. (a)
54,950
 
1,348,814
Health Care Providers &
Services — 5.6%
1,483
Guardant Health, Inc. (a)
34,020
2,404
Hims & Hers Health, Inc. (a)
44,282
1,636
LifeStance Health Group,
Inc. (a)
11,452
1,345
NeoGenomics, Inc. (a)
19,839
1,144
Privia Health Group, Inc. (a)
20,832
819
Progyny, Inc. (a)
13,726
 
144,151
Health Care Technology —
11.4%
1,492
Doximity, Inc., Class A (a)
65,007
635
Schrodinger, Inc. (a)
11,779
2,041
Teladoc Health, Inc. (a)
18,736
929
Veeva Systems, Inc., Class A (a)
194,969
 
290,491
Insurance — 1.8%
2,193
Oscar Health, Inc., Class A (a)
46,514
Shares
Description
Value
 
Life Sciences Tools & Services
— 16.8%
1,090
10X Genomics, Inc., Class A (a)
$24,612
1,644
Adaptive Biotechnologies
Corp. (a)
8,417
1,346
Cytek Biosciences, Inc. (a)
7,457
765
Illumina, Inc. (a)
99,764
800
IQVIA Holdings, Inc. (a)
189,576
2,200
QIAGEN N.V.
100,254
 
430,080
Total Common Stocks
2,557,136
(Cost $2,541,480)
MONEY MARKET FUNDS — 0.1%
1,739
Morgan Stanley Institutional
Liquidity Funds - Treasury
Portfolio - Institutional Class -
4.76% (b)
1,739
(Cost $1,739)
Total Investments — 100.1%
2,558,875
(Cost $2,543,219)
Net Other Assets and
Liabilities — (0.1)%
(1,339
)
Net Assets — 100.0%
$2,557,536
 
(a)
Non-income producing security.
(b)
Rate shown reflects yield as of September 30, 2024.
Valuation Inputs
A summary of the inputs used to value the Fund’s investments as of September 30, 2024 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements):
 
 
Total
Value at
9/30/2024
Level 1
Quoted
Prices
Level 2
Significant
Observable
Inputs
Level 3
Significant
Unobservable
Inputs
Common Stocks*
$ 2,557,136
$ 2,557,136
$ —
$ —
Money Market Funds
     1,739
     1,739
 —
 —
Total Investments
$2,558,875
$2,558,875
$—
$—
 
*
See Portfolio of Investments for industry breakout.
See Notes to Financial Statements
Page 1
First Trust Indxx Metaverse ETF (ARVR)
Portfolio of Investments
September 30, 2024
 
Shares
Description
Value
COMMON STOCKS (a) — 99.7%
Communications Equipment
— 1.2%
12,578
Sercomm Corp. (TWD)
$44,316
Electronic Equipment,
Instruments & Components
— 5.4%
1,671
Amphenol Corp., Class A
108,882
78,193
AUO Corp. (TWD)
42,128
7,412
Sunny Optical Technology
Group Co., Ltd. (HKD)
54,823
 
205,833
Entertainment — 32.4%
2,232
Capcom Co., Ltd. (JPY)
51,683
4,530
DeNA Co., Ltd. (JPY)
56,197
799
Electronic Arts, Inc.
114,608
2,482
GungHo Online Entertainment,
Inc. (JPY)
53,206
4,936
Koei Tecmo Holdings Co., Ltd.
(JPY)
56,821
2,362
Mixi, Inc. (JPY)
45,358
6,352
NetEase, Inc. (HKD)
122,973
178
Netflix, Inc. (b)
126,250
1,022
Netmarble Corp.
(KRW) (b) (c) (d)
46,501
5,512
Nexon Co., Ltd. (JPY)
108,514
2,040
Nintendo Co., Ltd. (JPY)
108,384
3,015
ROBLOX Corp., Class A (b)
133,444
1,510
Square Enix Holdings Co., Ltd.
(JPY)
59,833
767
Take-Two Interactive Software,
Inc. (b)
117,896
1,864
Ubisoft Entertainment S.A.
(EUR) (b)
20,957
 
1,222,625
Health Care Technology —
1.2%
4,851
Teladoc Health, Inc. (b)
44,532
Household Durables — 3.0%
5,970
Sony Group Corp. (JPY)
115,371
Interactive Media & Services
— 9.1%
227
Meta Platforms, Inc., Class A
129,944
7,095
Snap, Inc., Class A (b)
75,917
2,400
Tencent Holdings Ltd. (HKD)
137,260
 
343,121
IT Services — 1.3%
1,476
Keywords Studios PLC (GBP)
48,071
Shares
Description
Value
 
Semiconductors &
Semiconductor Equipment
— 23.8%
638
Advanced Micro Devices,
Inc. (b)
$104,683
3,467
Intel Corp.
81,336
1,261
Microchip Technology, Inc.
101,246
892
Micron Technology, Inc.
92,509
912
NVIDIA Corp.
110,753
581
QUALCOMM, Inc.
98,799
2,750
STMicroelectronics N.V. (EUR)
81,550
630
Taiwan Semiconductor
Manufacturing Co., Ltd., ADR
109,412
581
Texas Instruments, Inc.
120,017
 
900,305
Software — 15.0%
208
Adobe, Inc. (b)
107,698
10,448
Matterport, Inc. (b)
47,016
255
Microsoft Corp.
109,727
191
Synopsys, Inc. (b)
96,720
2,751
Unity Software, Inc. (b)
62,228
2,052
Zoom Video Communications,
Inc., Class A (b)
143,106
 
566,495
Technology Hardware, Storage
& Peripherals — 7.3%
510
Apple, Inc.
118,830
54,339
Xiaomi Corp., Class B
(HKD) (b) (c) (d)
157,274
 
276,104
Total Common Stocks
3,766,773
(Cost $3,691,524)
MONEY MARKET FUNDS — 0.3%
10,197
Dreyfus Government Cash
Management Fund,
Institutional Shares -
4.80% (e)
10,197
(Cost $10,197)
Total Investments — 100.0%
3,776,970
(Cost $3,701,721)
Net Other Assets and
Liabilities — 0.0%
1,181
Net Assets — 100.0%
$3,778,151
 
(a)
Securities are issued in U.S. dollars unless otherwise
indicated in the security description.
(b)
Non-income producing security.
See Notes to Financial Statements
Page 2
First Trust Indxx Metaverse ETF (ARVR)
Portfolio of Investments (Continued)
September 30, 2024
(c)
This security is exempt from registration upon resale under
Rule 144A of the Securities Act of 1933, as amended (the
“1933 Act”) and may be resold in transactions exempt from
registration, normally to qualified institutional buyers. This
security is not restricted on the foreign exchange where it
trades freely without any additional registration.
(d)
This security may be resold to qualified foreign investors and
foreign institutional buyers under Regulation S of the 1933
Act.
(e)
Rate shown reflects yield as of September 30, 2024.
 
Abbreviations throughout the Portfolio of Investments:
ADR
–  American Depositary Receipt
EUR
–  Euro
GBP
–  British Pound Sterling
HKD
–  Hong Kong Dollar
JPY
–  Japanese Yen
KRW
–  South Korean Won
TWD
–  New Taiwan Dollar
USD
–  United States Dollar
 
Currency Exposure Diversification
% of Total
Investments
USD
62.6%
JPY
17.4
HKD
12.5
EUR
2.7
TWD
2.3
GBP
1.3
KRW
1.2
Total
100.0%
 
Country Allocation†
% of Net
Assets
United States
59.7%
Japan
17.3
Cayman Islands
12.5
Taiwan
5.2
Netherlands
2.2
United Kingdom
1.3
South Korea
1.2
France
0.6
Total Investments
100.0
Net Other Assets and Liabilities
0.0††
Total
100.0%
 
†
Portfolio securities are categorized based upon their country
of incorporation, which can be different from the country
categorization of the Fund’s underlying index.
††
Amount is less than 0.1%.
Valuation Inputs
A summary of the inputs used to value the Fund’s investments as of September 30, 2024 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements):
 
 
Total
Value at
9/30/2024
Level 1
Quoted
Prices
Level 2
Significant
Observable
Inputs
Level 3
Significant
Unobservable
Inputs
Common Stocks*
$ 3,766,773
$ 3,766,773
$ —
$ —
Money Market Funds
    10,197
    10,197
 —
 —
Total Investments
$3,776,970
$3,776,970
$—
$—
 
*
See Portfolio of Investments for industry breakout.
See Notes to Financial Statements
Page 3
First Trust Emerging Markets Human Flourishing ETF (FTHF)
Portfolio of Investments
September 30, 2024
 
Shares
Description
Value
COMMON STOCKS (a) (b) — 99.5%
Brazil — 19.0%
343,471
B3 S.A. - Brasil Bolsa Balcao
(BRL)
$675,253
42,473
BB Seguridade Participacoes
S.A. (BRL)
276,776
21,394
Cia de Saneamento Basico do
Estado de Sao Paulo SABESP
(BRL)
355,015
94,061
Cia Energetica de Minas Gerais
(Preference Shares) (BRL)
196,834
86,655
Gerdau S.A. (Preference Shares)
(BRL)
303,818
303,387
Itau Unibanco Holding S.A.
(Preference Shares) (BRL)
2,010,996
340,769
Itausa S.A. (Preference Shares)
(BRL)
692,460
287,352
Petroleo Brasileiro S.A.
(Preference Shares) (BRL)
1,899,434
53,665
PRIO S.A. (BRL)
426,842
74,990
Raia Drogasil S.A. (BRL)
350,881
94,837
WEG S.A. (BRL)
946,855
 
8,135,164
Cayman Islands — 0.3%
1,922
Airtac International Group
(TWD)
55,450
993
Alchip Technologies Ltd.
(TWD)
61,971
 
117,421
Chile — 0.6%
1,967,588
Banco de Chile (CLP)
250,953
Czech Republic — 1.3%
14,023
CEZ A/S (CZK)
545,140
Greece — 1.4%
112,490
Eurobank Ergasias Services and
Holdings S.A. (EUR)
257,699
41,615
National Bank of Greece S.A.
(EUR)
355,582
 
613,281
Mexico — 11.2%
34,543
Arca Continental S.A.B. de C.V.
(MXN)
322,974
43,448
Coca-Cola Femsa S.A.B. de
C.V. (MXN)
384,611
32,835
Grupo Aeroportuario del
Pacifico S.A.B. de C.V.,
Class B (MXN)
570,152
11,486
Grupo Aeroportuario del Sureste
S.A.B. de C.V., Class B
(MXN)
325,137
108,179
Grupo Bimbo S.A.B. de C.V.,
Series A (MXN)
372,281
Shares
Description
Value
 
Mexico (Continued)
161,713
Grupo Financiero Banorte
S.A.B. de C.V., Class O
(MXN)
$1,145,706
78,682
Grupo Financiero Inbursa S.A.B.
de C.V., Class O (MXN) (c)
178,223
139,074
Kimberly-Clark de Mexico
S.A.B. de C.V., Class A
(MXN)
224,892
425,690
Wal-Mart de Mexico S.A.B. de
C.V. (MXN)
1,279,232
 
4,803,208
Philippines — 4.8%
125,490
Bank of the Philippine Islands
(PHP)
302,542
118,740
BDO Unibank, Inc. (PHP)
334,792
50,540
SM Investments Corp. (PHP)
862,213
939,200
SM Prime Holdings, Inc. (PHP)
541,355
 
2,040,902
Poland — 7.0%
9,553
Bank Polska Kasa Opieki S.A.
(PLN)
364,598
4,154
Dino Polska S.A.
(PLN) (c) (d) (e)
378,490
11,851
KGHM Polska Miedz S.A.
(PLN)
490,636
50,533
ORLEN S.A. (PLN)
733,510
40,130
Powszechna Kasa Oszczednosci
Bank Polski S.A. (PLN)
583,652
25,854
Powszechny Zaklad
Ubezpieczen S.A. (PLN)
282,654
1,515
Santander Bank Polska S.A.
(PLN)
178,816
 
3,012,356
South Africa — 13.6%
32,667
Absa Group Ltd. (ZAR)
331,709
28,952
Aspen Pharmacare Holdings Ltd.
(ZAR)
326,763
26,641
Bid Corp., Ltd. (ZAR)
682,697
27,339
Bidvest Group (The) Ltd. (ZAR)
463,295
3,802
Capitec Bank Holdings Ltd.
(ZAR)
669,960
216,894
FirstRand Ltd. (ZAR)
1,042,698
44,806
Gold Fields Ltd. (ZAR)
697,161
22,206
Nedbank Group Ltd. (ZAR)
384,253
81,120
Sanlam Ltd. (ZAR)
413,171
57,424
Standard Bank Group Ltd.
(ZAR)
805,481
 
5,817,188
South Korea — 18.4%
3,866
Celltrion, Inc. (KRW)
577,668
6,984
Hana Financial Group, Inc.
(KRW)
314,032
See Notes to Financial Statements
Page 4
First Trust Emerging Markets Human Flourishing ETF (FTHF)
Portfolio of Investments (Continued)
September 30, 2024
Shares
Description
Value
COMMON STOCKS (a) (b) (Continued)
South Korea (Continued)
1,436
Hyundai Mobis Co., Ltd. (KRW)
$238,839
7,504
Kakao Corp. (KRW)
207,440
8,162
KB Financial Group, Inc.
(KRW)
504,937
5,813
Kia Corp. (KRW)
444,076
690
Krafton, Inc. (KRW) (c)
180,718
565
LG Energy Solution Ltd.
(KRW) (c)
179,087
3,385
NAVER Corp. (KRW)
438,494
470
Samsung Biologics Co., Ltd.
(KRW) (c) (d) (e)
351,143
1,922
Samsung C&T Corp. (KRW)
202,532
1,259
Samsung Electro-Mechanics Co.,
Ltd. (KRW)
127,566
56,069
Samsung Electronics Co., Ltd.
(KRW)
2,636,877
782
Samsung Fire & Marine
Insurance Co., Ltd. (KRW)
206,010
1,877
Samsung Life Insurance Co.,
Ltd. (KRW)
133,774
1,248
Samsung SDI Co., Ltd. (KRW)
361,221
813
Samsung SDS Co., Ltd. (KRW)
96,177
11,960
Shinhan Financial Group Co.,
Ltd. (KRW)
507,594
15,161
Woori Financial Group, Inc.
(KRW)
179,701
 
7,887,886
Taiwan — 21.9%
7,022
Accton Technology Corp.
(TWD)
118,045
6,529
Advantech Co., Ltd. (TWD)
66,329
9,015
Asustek Computer, Inc. (TWD)
157,531
59,620
Compal Electronics, Inc. (TWD)
62,735
254,999
CTBC Financial Holding Co.,
Ltd. (TWD)
277,186
26,903
Delta Electronics, Inc. (TWD)
323,467
10,995
E Ink Holdings, Inc. (TWD)
101,797
205,237
E.Sun Financial Holding Co.,
Ltd. (TWD)
181,913
986
eMemory Technology, Inc.
(TWD)
81,942
160,112
First Financial Holding Co., Ltd.
(TWD)
138,627
114,765
Fubon Financial Holding Co.,
Ltd. (TWD)
327,833
7,017
Gigabyte Technology Co., Ltd.
(TWD)
57,317
3,055
Globalwafers Co. Ltd. (TWD)
43,923
140,537
Hua Nan Financial Holdings Co.,
Ltd. (TWD)
114,129
37,202
Inventec Corp. (TWD)
50,666
Shares
Description
Value
 
Taiwan (Continued)
237,750
KGI Financial Holding Co., Ltd.
(TWD)
$123,959
1,375
Largan Precision Co., Ltd.
(TWD)
110,360
31,008
Lite-On Technology Corp.
(TWD)
97,492
20,394
MediaTek, Inc. (TWD)
757,207
162,214
Mega Financial Holding Co.,
Ltd. (TWD)
201,444
9,945
Micro-Star International Co.,
Ltd. (TWD)
54,680
8,174
Novatek Microelectronics Corp.
(TWD)
133,795
26,471
Pegatron Corp. (TWD)
86,155
38,842
Quanta Computer, Inc. (TWD)
324,026
6,681
Realtek Semiconductor Corp.
(TWD)
99,434
59,022
Shanghai Commercial & Savings
Bank Ltd. (The) (TWD)
71,991
160,669
SinoPac Financial Holdings Co.,
Ltd. (TWD)
123,117
178,247
Taishin Financial Holding Co.,
Ltd. (TWD)
103,637
148,554
Taiwan Cooperative Financial
Holding Co., Ltd. (TWD)
121,579
140,968
Taiwan Semiconductor
Manufacturing Co., Ltd.
(TWD)
4,262,916
17,530
Unimicron Technology Corp.
(TWD)
79,766
158,127
United Microelectronics Corp.
(TWD)
268,821
1,266
Wiwynn Corp. (TWD)
68,608
178,401
Yuanta Financial Holding Co.,
Ltd. (TWD)
178,703
 
9,371,130
Total Common Stocks
42,594,629
(Cost $40,171,965)
MONEY MARKET FUNDS — 0.0%
25,405
Dreyfus Government Cash
Management Fund,
Institutional Shares -
4.80% (f)
25,405
(Cost $25,405)
Total Investments — 99.5%
42,620,034
(Cost $40,197,370)
Net Other Assets and
Liabilities — 0.5%
203,649
Net Assets — 100.0%
$42,823,683
 
See Notes to Financial Statements
Page 5
First Trust Emerging Markets Human Flourishing ETF (FTHF)
Portfolio of Investments (Continued)
September 30, 2024
(a)
Portfolio securities are categorized based upon their country
of incorporation, which can be different from the country
categorization of the Fund’s underlying index.
(b)
Securities are issued in U.S. dollars unless otherwise
indicated in the security description.
(c)
Non-income producing security.
(d)
This security is exempt from registration upon resale under
Rule 144A of the Securities Act of 1933, as amended (the
“1933 Act”) and may be resold in transactions exempt from
registration, normally to qualified institutional buyers. This
security is not restricted on the foreign exchange where it
trades freely without any additional registration.
(e)
This security may be resold to qualified foreign investors and
foreign institutional buyers under Regulation S of the 1933
Act.
(f)
Rate shown reflects yield as of September 30, 2024.
 
Abbreviations throughout the Portfolio of Investments:
BRL
–  Brazilian Real
CLP
–  Chilean Peso
CZK
–  Czech Koruna
EUR
–  Euro
KRW
–  South Korean Won
MXN
–  Mexican Peso
PHP
–  Philippine Peso
PLN
–  Polish Zloty
TWD
–  New Taiwan Dollar
USD
–  United States Dollar
ZAR
–  South African Rand
 
Currency Exposure Diversification
% of Total
Investments
TWD
22.3%
BRL
19.1
KRW
18.5
ZAR
13.6
MXN
11.3
PLN
7.1
PHP
4.8
EUR
1.4
CZK
1.3
CLP
0.6
USD
0.0‡
Total
100.0%
 
‡
Amount is less than 0.1%.
Valuation Inputs
A summary of the inputs used to value the Fund’s investments as of September 30, 2024 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements):
 
 
Total
Value at
9/30/2024
Level 1
Quoted
Prices
Level 2
Significant
Observable
Inputs
Level 3
Significant
Unobservable
Inputs
Common Stocks*
$ 42,594,629
$ 42,594,629
$ —
$ —
Money Market Funds
     25,405
     25,405
 —
 —
Total Investments
$42,620,034
$42,620,034
$—
$—
 
*
See Portfolio of Investments for country breakout.
See Notes to Financial Statements
Page 6
This page intentionally left blank.
Page 7
First Trust Exchange-Traded Fund II
Statements of Assets and Liabilities
September 30, 2024
 
 
First Trust
Nasdaq Lux
Digital Health
Solutions ETF
(EKG)
First Trust
Indxx Metaverse
ETF
(ARVR)
First Trust
Emerging
Markets Human
Flourishing ETF
(FTHF)
ASSETS:
Investments, at value
$2,558,875
$3,776,970
$42,620,034
Foreign currency, at value
—
32
13,593
Receivables:
Dividends
9
2,976
201,011
Reclaims
—
249
15,427
Total Assets
2,558,884
3,780,227
42,850,065
 
LIABILITIES:
Investment advisory fees payable
1,348
2,076
26,382
Total Liabilities
1,348
2,076
26,382
NET ASSETS
$2,557,536
$3,778,151
$42,823,683
 
NET ASSETS consist of:
Paid-in capital
$2,683,315
$3,910,330
$40,516,826
Par value
1,500
1,000
18,000
Accumulated distributable earnings (loss)
(127,279)
(133,179)
2,288,857
NET ASSETS
$2,557,536
$3,778,151
$42,823,683
NET ASSET VALUE, per share
$17.05
$37.78
$23.79
Number of shares outstanding (unlimited number of shares authorized,
par value $0.01 per share)
150,002
100,002
1,800,002
Investments, at cost
$2,543,219
$3,701,721
$40,197,370
Foreign currency, at cost (proceeds)
$—
$31
$13,511
See Notes to Financial Statements
Page 8
First Trust Exchange-Traded Fund II
Statements of Operations
For the Period Ended September 30, 2024
 
 
First Trust
Nasdaq Lux
Digital Health
Solutions ETF
(EKG)
First Trust
Indxx Metaverse
ETF
(ARVR)
First Trust
Emerging
Markets Human
Flourishing ETF
(FTHF) (a)
INVESTMENT INCOME:
Dividends
$2,287
$23,478
$1,515,579
Foreign withholding tax
—
(1,109)
(175,320)
Total investment income
2,287
22,369
1,340,259
 
EXPENSES:
Investment advisory fees
14,346
 
17,421
 
216,974
 
Total expenses
14,346
17,421
216,974
NET INVESTMENT INCOME (LOSS)
(12,059)
4,948
1,123,285
 
NET REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) on:
Investments
(38,055)
(219,062)
(335,880)
In-kind redemptions
383,164
544,275
57,793
Foreign currency transactions
—
(231)
(59,674)
Net realized gain (loss)
345,109
324,982
(337,761)
Net change in unrealized appreciation (depreciation) on:
Investments
248,472
145,248
2,422,664
Foreign currency translation
—
(9)
574
Net change in unrealized appreciation (depreciation)
248,472
145,239
2,423,238
NET REALIZED AND UNREALIZED GAIN (LOSS)
593,581
470,221
2,085,477
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS
$581,522
$475,169
$3,208,762
 
(a)
Inception date is October 30, 2023, which is consistent with the commencement of investment operations and is the date the initial
creation units were established.
See Notes to Financial Statements
Page 9
First Trust Exchange-Traded Fund II
Statements of Changes in Net Assets
 
 
First Trust Nasdaq Lux Digital
Health Solutions ETF (EKG)
 
Year
Ended
9/30/2024 
Year
Ended
9/30/2023 
OPERATIONS:
Net investment income (loss)
$(12,059)
$(4,859)
Net realized gain (loss)
345,109
(46,835)
Net change in unrealized appreciation (depreciation)
248,472
60,999
Net increase (decrease) in net assets resulting from operations
581,522
9,305
 
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment operations
—
—
 
SHAREHOLDER TRANSACTIONS:
Proceeds from shares sold
6,566,924
 
824,516
 
Cost of shares redeemed
(5,295,678)
 
(837,447)
 
Net increase (decrease) in net assets resulting from shareholder transactions
1,271,246
(12,931)
Total increase (decrease) in net assets
1,852,768
(3,626)
 
NET ASSETS:
Beginning of period
704,768
708,394
End of period
$2,557,536
$704,768
 
CHANGES IN SHARES OUTSTANDING:
Shares outstanding, beginning of period
50,002
50,002
Shares sold
450,000
50,000
Shares redeemed
(350,000)
(50,000)
Shares outstanding, end of period
150,002
50,002
 
(a)
Inception date is October 30, 2023, which is consistent with the commencement of investment operations and is the date the initial
creation units were established.
See Notes to Financial Statements
Page 10
 
First Trust Indxx Metaverse ETF
(ARVR)
First Trust
Emerging
Markets
Human
Flourishing
ETF (FTHF)
Year
Ended
9/30/2024 
Year
Ended
9/30/2023 
Period
Ended
9/30/2024 (a)
$4,948
$4,894
$1,123,285
324,982
(45,922)
(337,761)
145,239
382,643
2,423,238
475,169
341,615
3,208,762
(3,710)
(3,940)
(867,321)
5,318,584
 
—
 
41,701,207
 
(3,466,788)
 
—
 
(1,218,965)
 
1,851,796
—
40,482,242
2,323,255
337,675
42,823,683
1,454,896
1,117,221
—
$3,778,151
$1,454,896
$42,823,683
50,002
50,002
—
150,000
—
1,850,002
(100,000)
—
(50,000)
100,002
50,002
1,800,002
See Notes to Financial Statements
Page 11
First Trust Exchange-Traded Fund II
Financial Highlights
For a share outstanding throughout each period
First Trust Nasdaq Lux Digital Health Solutions ETF (EKG)
 
 
Year Ended September 30,
Period
Ended 
9/30/2022 (a)
 
2024
2023
Net asset value, beginning of period
$14.09
$14.17
$20.44
Income from investment operations:
Net investment income (loss)
(0.09
) (b)
(0.10
) (b)
(0.10
) 
Net realized and unrealized gain (loss)
3.05
 
0.02
 
(6.17
) 
Total from investment operations
2.96
(0.08
)
(6.27
)
Net asset value, end of period
$17.05
 
$14.09
 
$14.17
 
Total return (c)
21.01
% 
(0.56
)% 
(30.68
)% 
 
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000’s)
$2,558
 
$705
 
$708
 
Ratio of total expenses to average net assets
0.65
% 
0.65
% 
0.65
% (d)
Ratio of net investment income (loss) to average net assets
(0.55
)% 
(0.58
)% 
(0.61
)% (d)
Portfolio turnover rate (e)
16
% 
18
% 
5
% 
 
(a)
Inception date is March 22, 2022, which is consistent with the commencement of investment operations and is the date the initial creation units
were established.
(b)
Based on average shares outstanding.
(c)
Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all
distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not
reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is
calculated for the time period presented and is not annualized for periods of less than a year.
(d)
Annualized.
(e)
Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities
received or delivered from processing creations or redemptions and in-kind transactions.
See Notes to Financial Statements
Page 12
First Trust Exchange-Traded Fund II
Financial Highlights (Continued)
For a share outstanding throughout each period
First Trust Indxx Metaverse ETF (ARVR)
 
 
Year Ended September 30,
Period
Ended 
9/30/2022 (a)
 
2024
2023
Net asset value, beginning of period
$29.10
$22.34
$30.21
Income from investment operations:
Net investment income (loss)
0.07
 (b)
0.10
 (b)
0.06
 
Net realized and unrealized gain (loss)
8.66
 
6.74
 
(7.93
) 
Total from investment operations
8.73
6.84
(7.87
)
Distributions paid to shareholders from:
Net investment income
(0.05
) 
(0.08
) 
—
 
Net asset value, end of period
$37.78
 
$29.10
 
$22.34
 
Total return (c)
30.01
% 
30.66
% 
(26.05
)% 
 
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000’s)
$3,778
 
$1,455
 
$1,117
 
Ratio of total expenses to average net assets
0.70
% 
0.70
% 
0.70
% (d)
Ratio of net investment income (loss) to average net assets
0.20
% 
0.35
% 
0.28
% (d)
Portfolio turnover rate (e)
39
% 
31
% 
11
% 
 
(a)
Inception date is April 19, 2022, which is consistent with the commencement of investment operations and is the date the initial creation units
were established.
(b)
Based on average shares outstanding.
(c)
Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all
distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not
reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is
calculated for the time period presented and is not annualized for periods of less than a year.
(d)
Annualized.
(e)
Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities
received or delivered from processing creations or redemptions and in-kind transactions.
See Notes to Financial Statements
Page 13
First Trust Exchange-Traded Fund II
Financial Highlights (Continued)
For a share outstanding throughout the period
First Trust Emerging Markets Human Flourishing ETF (FTHF)
 
 
Period
Ended
9/30/2024 (a)
 
Net asset value, beginning of period
$20.00
Income from investment operations:
Net investment income (loss) (b)
0.83
 
Net realized and unrealized gain (loss)
3.56
 
Total from investment operations
4.39
Distributions paid to shareholders from:
Net investment income
(0.60
) 
Net asset value, end of period
$23.79
 
Total return (c)
22.00
% 
 
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000’s)
$42,824
 
Ratio of total expenses to average net assets
0.75
% (d)
Ratio of net investment income (loss) to average net assets
3.88
% (d)
Portfolio turnover rate (e)
30
% 
 
(a)
Inception date is October 30, 2023, which is consistent with the commencement of investment operations and is the date the initial creation units
were established.
(b)
Based on average shares outstanding.
(c)
Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all
distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The return presented does not
reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is
calculated for the time period presented and is not annualized for periods of less than a year.
(d)
Annualized.
(e)
Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities
received or delivered from processing creations or redemptions and in-kind transactions.
See Notes to Financial Statements
Page 14
Notes to Financial Statements
First Trust Exchange-Traded Fund II
September 30, 2024
1. Organization
First Trust Exchange-Traded Fund II (the “Trust”) is an open-end management investment company organized as a Massachusetts business trust on July 6, 2006, and is registered with the Securities and Exchange Commission under the Investment Company Act of 1940, as amended (the “1940 Act”).
This report covers the three funds (each a “Fund” and collectively, the “Funds”) listed below, each a non-diversified series of the Trust.
 
First Trust Nasdaq Lux Digital Health Solutions ETF – (Nasdaq, Inc. (“Nasdaq”) ticker “EKG”)
First Trust Indxx Metaverse ETF – (Nasdaq ticker “ARVR”)
First Trust Emerging Markets Human Flourishing ETF – (NYSE Arca, Inc. ticker “FTHF”)(1)
 
(1)
Commenced investment operations on October 30, 2023.
Each Fund represents a separate series of shares of beneficial interest in the Trust. Unlike conventional mutual funds, each Fund issues and redeems shares on a continuous basis, at net asset value (“NAV”), only in large blocks of shares known as “Creation Units.” The investment objective of each Fund is to seek investment results that correspond generally to the price and yield (before the Fund’s fees and expenses) of the following indices:
 
Fund
Index
First Trust Nasdaq Lux Digital Health Solutions ETF
Nasdaq Lux Health TechTM Index
First Trust Indxx Metaverse ETF
Indxx Metaverse Index
First Trust Emerging Markets Human Flourishing ETF
Emerging Markets Human Flourishing Index
2. Significant Accounting Policies
The Funds are each considered an investment company and follow accounting and reporting guidance under Financial Accounting Standards Board Accounting Standards Codification Topic 946, “Financial Services-Investment Companies.” The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of the financial statements. The preparation of the financial statements in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.
A. Portfolio Valuation
Each Fund’s NAV is determined daily as of the close of regular trading on the New York Stock Exchange (“NYSE”), normally 4:00 p.m. Eastern time, on each day the NYSE is open for trading. If the NYSE closes early on a valuation day, the NAV is determined as of that time. Foreign securities are priced using data reflecting the earlier closing of the principal markets for those securities. Each Fund’s NAV is calculated by dividing the value of all assets of each Fund (including accrued interest and dividends), less all liabilities (including accrued expenses and dividends declared but unpaid), by the total number of shares outstanding.
Each Fund’s investments are valued daily at market value or, in the absence of market value with respect to any portfolio securities, at fair value. Market value prices represent readily available market quotations such as last sale or official closing prices from a national or foreign exchange (i.e., a regulated market) and are primarily obtained from third-party pricing services. Fair value prices represent any prices not considered market value prices and are either obtained from a third-party pricing service or are determined by the Pricing Committee of the Funds’ investment advisor, First Trust Advisors L.P. (“First Trust” or the “Advisor”), in accordance with valuation procedures approved by the Trust’s Board of Trustees, and in accordance with provisions of the 1940 Act and rules thereunder. Investments valued by the Advisor’s Pricing Committee, if any, are footnoted as such in the footnotes to the Portfolio of Investments. Each Fund’s investments are valued as follows:
Common stocks and other equity securities listed on any national or foreign exchange (excluding Nasdaq and the London Stock Exchange Alternative Investment Market (“AIM”)) are valued at the last sale price on the exchange on which they are principally traded or, for Nasdaq and AIM securities, the official closing price. Securities traded on more than one securities exchange are valued at the last sale price or official closing price, as applicable, at the close of the securities exchange representing the primary exchange for such securities.
Page 15
Notes to Financial Statements (Continued)
First Trust Exchange-Traded Fund II
September 30, 2024
Securities trading on foreign exchanges or over-the-counter markets that close prior to the NYSE close may be valued using a systematic fair valuation model provided by a third-party pricing service. If these foreign securities meet certain criteria in relation to the valuation model, their valuation is systematically adjusted to reflect the impact of movement in the U.S. market after the close of the foreign markets.
Shares of open-end funds are valued based on NAV per share.
Equity securities traded in an over-the-counter market are valued at the close price or the last trade price.
Certain securities may not be able to be priced by pre-established pricing methods. Such securities may be valued by the Advisor’s Pricing Committee at fair value. These securities generally include, but are not limited to, restricted securities (securities which may not be publicly sold without registration under the Securities Act of 1933, as amended) for which a third-party pricing service is unable to provide a market price; securities whose trading has been formally suspended; a security whose market or fair value price is not available from a pre-established pricing source; a security with respect to which an event has occurred that is likely to materially affect the value of the security after the market has closed but before the calculation of a Fund’s NAV or make it difficult or impossible to obtain a reliable market quotation; and a security whose price, as provided by the third-party pricing service, does not reflect the security’s fair value. As a general principle, the current fair value of a security would appear to be the amount which the owner might reasonably expect to receive for the security upon its current sale. When fair value prices are used, generally they will differ from market quotations or official closing prices on the applicable exchanges. A variety of factors may be considered in determining the fair value of such securities, including, but not limited to, the following:
 1)
the last sale price on the exchange on which they are principally traded or, for Nasdaq and AIM securities, the official closing price;
 2)
the type of security;
 3)
the size of the holding;
 4)
the initial cost of the security;
 5)
transactions in comparable securities;
 6)
price quotes from dealers and/or third-party pricing services;
 7)
relationships among various securities;
 8)
information obtained by contacting the issuer, analysts, or the appropriate stock exchange;
 9)
an analysis of the issuer’s financial statements;
10)
the existence of merger proposals or tender offers that might affect the value of the security; and
11)
other relevant factors.
If the securities in question are foreign securities, the following additional information may be considered:
 1)
the last sale price on the exchange on which they are principally traded;
 2)
the value of similar foreign securities traded on other foreign markets;
 3)
ADR trading of similar securities;
 4)
closed-end fund or exchange-traded fund trading of similar securities;
 5)
foreign currency exchange activity;
 6)
the trading prices of financial products that are tied to baskets of foreign securities;
 7)
factors relating to the event that precipitated the pricing problem;
 8)
whether the event is likely to recur;
 9)
whether the effects of the event are isolated or whether they affect entire markets, countries or regions; and
10)
other relevant factors.
In addition, differences between the prices used to calculate a Fund’s NAV and the prices used by such Fund’s corresponding index could result in a difference between a Fund’s performance and the performance of its underlying index.
Because foreign markets may be open on different days than the days during which investors may transact in the shares of a Fund, the value of the Fund’s securities may change on the days when investors are not able to transact in the shares of the Fund. The value of the securities denominated in foreign currencies is converted into U.S. dollars using exchange rates determined daily as of the close of regular trading on the NYSE.
Page 16
Notes to Financial Statements (Continued)
First Trust Exchange-Traded Fund II
September 30, 2024
The Funds are subject to fair value accounting standards that define fair value, establish the framework for measuring fair value and provide a three-level hierarchy for fair valuation based upon the inputs to the valuation as of the measurement date. The three levels of the fair value hierarchy are as follows:
•  Level 1 – Level 1 inputs are quoted prices in active markets for identical investments. An active market is a market in which transactions for the investment occur with sufficient frequency and volume to provide pricing information on an ongoing basis.
•  Level 2 – Level 2 inputs are observable inputs, either directly or indirectly, and include the following:
o  Quoted prices for similar investments in active markets.
o  Quoted prices for identical or similar investments in markets that are non-active. A non-active market is a market where there are few transactions for the investment, the prices are not current, or price quotations vary substantially either over time or among market makers, or in which little information is released publicly.
o  Inputs other than quoted prices that are observable for the investment (for example, interest rates and yield curves observable at commonly quoted intervals, volatilities, prepayment speeds, loss severities, credit risks, and default rates).
o  Inputs that are derived principally from or corroborated by observable market data by correlation or other means.
•  Level 3 – Level 3 inputs are unobservable inputs. Unobservable inputs may reflect the reporting entity’s own assumptions about the assumptions that market participants would use in pricing the investment.
The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in those investments. A summary of the inputs used to value each Fund’s investments as of September 30, 2024, is included with each Fund’s Portfolio of Investments.
B. Securities Transactions and Investment Income
Securities transactions are recorded as of the trade date. Realized gains and losses from securities transactions are recorded on the identified cost basis. Dividend income is recorded on the ex-dividend date except that certain dividends from foreign securities are recorded as soon as the information becomes available after the ex-dividend date. Interest income, if any, is recorded on the accrual basis.
Withholding taxes and tax reclaims on foreign dividends have been provided for in accordance with each Fund’s understanding of the applicable country’s tax rules and rates.
C. Foreign Currency
The books and records of the Funds are maintained in U.S. dollars. Foreign currencies, investments and other assets and liabilities are translated into U.S. dollars at the exchange rates prevailing at the end of the period. Purchases and sales of investments and items of income and expense are translated on the respective dates of such transactions. Unrealized gains and losses on assets and liabilities, other than investments in securities, which result from changes in foreign currency exchange rates have been included in “Net change in unrealized appreciation (depreciation) on foreign currency translation” on the Statements of Operations. Unrealized gains and losses on investments in securities which result from changes in foreign exchange rates are included with fluctuations arising from changes in market price and are shown in “Net change in unrealized appreciation (depreciation) on investments” on the Statements of Operations. Net realized foreign currency gains and losses include the effect of changes in exchange rates between trade date and settlement date on investment security transactions, foreign currency transactions and interest and dividends received and are included in “Net realized gain (loss) on foreign currency transactions” on the Statements of Operations. The portion of foreign currency gains and losses related to fluctuations in exchange rates between the initial purchase settlement date and subsequent sale trade date is included in “Net realized gain (loss) on investments” on the Statements of Operations.
D. Dividends and Distributions to Shareholders
Dividends from net investment income of each Fund, if any, are declared and paid quarterly, or as the Board of Trustees may determine from time to time. Distributions of net realized capital gains earned by each Fund, if any, are distributed at least annually. Each Fund may also designate a portion of the amount paid to redeeming shareholders as a distribution for tax purposes.
Distributions from net investment income and realized capital gains are determined in accordance with federal income tax regulations, which may differ from U.S. GAAP. Certain capital accounts in the financial statements are periodically adjusted for permanent differences in order to reflect their tax character. These permanent differences are primarily due to the varying treatment of income and gain/loss on portfolio securities held by the Funds and have no impact on net assets or NAV per share. Temporary differences,
Page 17
Notes to Financial Statements (Continued)
First Trust Exchange-Traded Fund II
September 30, 2024
which arise from recognizing certain items of income, expense and gain/loss in different periods for financial statement and tax purposes, will reverse at some time in the future.
The tax character of distributions paid by each Fund during the fiscal period ended September 30, 2024 were as follows:
 
 
Distributions
paid from
Ordinary
Income
Distributions
paid from
Capital
Gains
Distributions
paid from
Return of
Capital
First Trust Nasdaq Lux Digital Health Solutions ETF
$—
$—
$—
First Trust Indxx Metaverse ETF
3,710
—
—
First Trust Emerging Markets Human Flourishing ETF
867,321
—
—
The tax character of distributions paid by each Fund during the fiscal year ended September 30, 2023 were as follows:
 
 
Distributions
paid from
Ordinary
Income
Distributions
paid from
Capital
Gains
Distributions
paid from
Return of
Capital
First Trust Nasdaq Lux Digital Health Solutions ETF
$—
$—
$—
First Trust Indxx Metaverse ETF
3,940
—
—
As of September 30, 2024, the components of distributable earnings on a tax basis for each Fund were as follows:
 
 
Undistributed
Ordinary
Income
Accumulated
Capital and
Other
Gain (Loss)
Net
Unrealized
Appreciation
(Depreciation)
First Trust Nasdaq Lux Digital Health Solutions ETF
$(8,024
)
$(111,040
)
$(8,215
)
First Trust Indxx Metaverse ETF
23,586
(106,819
)
(49,946
)
First Trust Emerging Markets Human Flourishing ETF
248,367
(282,069
)
2,322,559
E. Income Taxes
Each Fund intends to qualify or continue to qualify as a regulated investment company by complying with the requirements under Subchapter M of the Internal Revenue Code of 1986, as amended, which includes distributing substantially all of its net investment income and net realized gains to shareholders. Accordingly, no provision has been made for federal and state income taxes. However, due to the timing and amount of distributions, each Fund may be subject to an excise tax of 4% of the amount by which approximately 98% of each Fund’s taxable income exceeds the distributions from such taxable income for the calendar year.
The Funds are subject to accounting standards that establish a minimum threshold for recognizing, and a system for measuring, the benefits of a tax position taken or expected to be taken in a tax return. For EKG and ARVR, the taxable years ended 2022, 2023 and 2024 remain open to federal and state audit. For FTHF, the taxable period ended 2024 remains open to federal and state audit. As of September 30, 2024, management has evaluated the application of these standards to the Funds and has determined that no provision for income tax is required in the Funds’ financial statements for uncertain tax positions.
Each Fund intends to utilize provisions of the federal income tax laws, which allow it to carry a realized capital loss forward indefinitely following the year of the loss and offset such loss against any future realized capital gains. Each Fund is subject to certain limitations under U.S. tax rules on the use of capital loss carryforwards and net unrealized built-in losses. These limitations apply when there has been a 50% change in ownership. At September 30, 2024, for federal income tax purposes, each applicable Fund had a capital loss carryforward available that is shown in the following table, to the extent provided by regulations, to offset future capital gains. To the extent that these loss carryforwards are used to offset future capital gains, it is probable that the capital gains so offset will not be distributed to each applicable Fund’s shareholders.
 
Page 18
Notes to Financial Statements (Continued)
First Trust Exchange-Traded Fund II
September 30, 2024
 
Non-Expiring
Capital Loss
Carryforwards
First Trust Nasdaq Lux Digital Health Solutions ETF
$111,040
First Trust Indxx Metaverse ETF
106,819
First Trust Emerging Markets Human Flourishing ETF
282,069
Certain losses realized during the current fiscal year may be deferred and treated as occurring on the first day of the following fiscal year for federal income tax purposes. For the fiscal period ended September 30, 2024, the following Fund incurred and elected to defer net late year ordinary or capital losses as follows:
 
 
Qualified Late Year Losses
 
Ordinary Losses
Capital Losses
First Trust Nasdaq Lux Digital Health Solutions ETF
$8,024
$—
 
In order to present paid-in capital and accumulated distributable earnings (loss) (which consists of accumulated net investment income (loss), accumulated net realized gain (loss) on investments and net unrealized appreciation (depreciation) on investments) on the Statements of Assets and Liabilities that more closely represent their tax character, certain adjustments have been made to paid-in capital, accumulated net investment income (loss) and accumulated net realized gain (loss) on investments. These adjustments are primarily due to the difference between book and tax treatments of income and gains on various investment securities held by the Funds and in-kind transactions. The results of operations and net assets were not affected by these adjustments. For the fiscal period ended September 30, 2024, the adjustments for each Fund were as follows:
 
 
Accumulated
Net Investment
Income (Loss)
Accumulated
Net Realized
Gain (Loss)
on Investments
Paid-In
Capital
First Trust Nasdaq Lux Digital Health Solutions ETF
$7,716
$(381,586
)
$373,870
First Trust Indxx Metaverse ETF
(72
)
(469,402
)
469,474
First Trust Emerging Markets Human Flourishing ETF
(59,155
)
6,571
52,584
As of September 30, 2024, the aggregate cost, gross unrealized appreciation, gross unrealized depreciation, and net unrealized appreciation/(depreciation) on investments (including short positions and derivatives, if any) for federal income tax purposes were as follows:
 
 
Tax Cost
Gross
Unrealized
Appreciation
Gross
Unrealized
(Depreciation)
Net Unrealized
Appreciation
(Depreciation)
First Trust Nasdaq Lux Digital Health Solutions ETF
$2,567,090
$350,624
$(358,839
)
$(8,215
)
First Trust Indxx Metaverse ETF
3,826,908
256,621
(306,559
)
(49,938
)
First Trust Emerging Markets Human Flourishing ETF
40,298,049
5,308,336
(2,986,351
)
2,321,985
F. Expenses
Expenses, other than the investment advisory fee and other excluded expenses, are paid by the Advisor (see Note 3).
3. Investment Advisory Fee, Affiliated Transactions and Other Fee Arrangements
First Trust, the investment advisor to the Funds, is a limited partnership with one limited partner, Grace Partners of DuPage L.P., and one general partner, The Charger Corporation. The Charger Corporation is an Illinois corporation controlled by James A. Bowen, Chief Executive Officer of First Trust. First Trust is responsible for the selection and ongoing monitoring of the securities in each Fund’s portfolio, managing the Funds’ business affairs and providing certain administrative services necessary for the management of the Funds.
Pursuant to the Investment Management Agreement between the Trust and the Advisor, First Trust manages the investment of each Fund’s assets and is responsible for the expenses of each Fund, including the cost of transfer agency, custody, fund administration, legal, audit, license fees and other services, but excluding fee payments under the Investment Management Agreement, interest, taxes,
Page 19
Notes to Financial Statements (Continued)
First Trust Exchange-Traded Fund II
September 30, 2024
if any, brokerage commissions and other expenses connected with the execution of portfolio transactions, distribution and service fees payable pursuant to a Rule 12b-1 plan, if any, acquired fund fees and expenses, and extraordinary expenses, which are paid by each respective Fund. The annual unitary management fee payable by each Fund to First Trust for these services will be reduced at certain levels of each Fund’s net assets (“breakpoints”) and calculated pursuant to the following schedule:
 
Breakpoints
EKG
ARVR
FTHF
Fund net assets up to and including $2.5 billion
0.65000
%
0.7000
%
0.75000
%
Fund net assets greater than $2.5 billion up to and including $5 billion
0.63375
%
0.6825
%
0.73125
%
Fund net assets greater than $5 billion up to and including $7.5 billion
0.61750
%
0.6650
%
0.71250
%
Fund net assets greater than $7.5 billion up to and including $10 billion
0.60125
%
0.6475
%
0.69375
%
Fund net assets greater than $10 billion
0.58500
%
0.6300
%
0.67500
%
The Trust has multiple service agreements with The Bank of New York Mellon (“BNY”). Under the service agreements, BNY performs custodial, fund accounting, certain administrative services, and transfer agency services for each Fund. As custodian, BNY is responsible for custody of each Fund’s assets. As fund accountant and administrator, BNY is responsible for maintaining the books and records of each Fund’s securities and cash. As transfer agent, BNY is responsible for maintaining shareholder records for each Fund. BNY is a subsidiary of The Bank of New York Mellon Corporation, a financial holding company.
Each Trustee who is not an officer or employee of First Trust, any sub-advisor or any of their affiliates (“Independent Trustees”) is paid a fixed annual retainer that is allocated equally among each fund in the First Trust Fund Complex. Each Independent Trustee is also paid an annual per fund fee that varies based on whether the fund is a closed-end or other actively managed fund, a target outcome fund or an index fund.
Additionally, the Chairs of the Audit Committee, Nominating and Governance Committee and Valuation Committee, the Vice Chair of the Audit Committee, the Lead Independent Trustee and the Vice Lead Independent Trustee are paid annual fees to serve in such capacities, with such compensation allocated pro rata among each fund in the First Trust Fund Complex based on net assets. Independent Trustees are reimbursed for travel and out-of-pocket expenses in connection with all meetings. The Committee Chairs, the Audit Committee Vice Chair, the Lead Independent Trustee and the Vice Lead Independent Trustee rotate periodically in serving in such capacities. The officers and “Interested” Trustee receive no compensation from the Trust for acting in such capacities.
4. Purchases and Sales of Securities
For the period ended September 30, 2024, the cost of purchases and proceeds from sales of investments for each Fund, excluding short-term investments and in-kind transactions, were as follows:
 
 
Purchases
Sales
First Trust Nasdaq Lux Digital Health Solutions ETF
$402,159
$409,861
First Trust Indxx Metaverse ETF
1,318,197
937,318
First Trust Emerging Markets Human Flourishing ETF
33,206,205
8,452,368
For the period ended September 30, 2024, the cost of in-kind purchases and proceeds from in-kind sales for each Fund were as follows:
 
 
Purchases
Sales
First Trust Nasdaq Lux Digital Health Solutions ETF
$6,564,257
$5,297,403
First Trust Indxx Metaverse ETF
4,915,816
3,452,660
First Trust Emerging Markets Human Flourishing ETF
16,106,937
410,622
5. Creations, Redemptions and Transaction Fees
Each Fund generally issues and redeems its shares in primary market transactions through a creation and redemption mechanism and does not sell or redeem individual shares. Instead, financial entities known as “Authorized Participants” have contractual arrangements with a Fund or one of the Fund’s service providers to purchase and redeem Fund shares directly with the Fund in Creation Units. Prior to the start of trading on every business day, a Fund publishes through the National Securities Clearing Corporation the “basket” of securities, cash or other assets that it will accept in exchange for a Creation Unit of the Fund’s shares. An Authorized Participant that wishes to effectuate a creation of a Fund’s shares deposits with the Fund the “basket” of securities, cash or other assets identified by the Fund that day, and then receives the Creation Unit of the Fund’s shares in return for those assets. After purchasing a Creation Unit,
Page 20
Notes to Financial Statements (Continued)
First Trust Exchange-Traded Fund II
September 30, 2024
the Authorized Participant may continue to hold the Fund’s shares or sell them in the secondary market. The redemption process is the reverse of the purchase process: the Authorized Participant redeems a Creation Unit of a Fund’s shares for a basket of securities, cash or other assets. The combination of the creation and redemption process with secondary market trading in a Fund’s shares and underlying securities provides arbitrage opportunities that are designed to help keep the market price of a Fund’s shares at or close to the NAV per share of the Fund.
Each Fund imposes fees in connection with the purchase of Creation Units. These fees may vary based upon various fact-based circumstances, including, but not limited to, the composition of the securities included in the Creation Unit or the countries in which the transactions are settled. The price for each Creation Unit will equal the daily NAV per share of a Fund times the number of shares in a Creation Unit, plus the fees described above and, if applicable, any operational processing and brokerage costs, transfer fees, stamp taxes and part or all of the spread between the expected bid and offer side of the market related to the securities comprising the creation basket.
Each Fund also imposes fees in connection with the redemption of Creation Units. These fees may vary based upon various fact-based circumstances, including, but not limited to, the composition of the securities included in the Creation Unit or the countries in which the transactions are settled. The price received for each Creation Unit will equal the daily NAV per share of a Fund times the number of shares in a Creation Unit, minus the fees described above and, if applicable, any operational processing and brokerage costs, transfer fees, stamp taxes and part or all of the spread between the expected bid and offer side of the market related to the securities comprising the redemption basket. Investors who use the services of a broker or other such intermediary in addition to an Authorized Participant to effect a redemption of a Creation Unit may also be assessed an amount to cover the cost of such services. The redemption fee charged by a Fund will comply with Rule 22c-2 of the 1940 Act which limits redemption fees to no more than 2% of the value of the shares redeemed.
6. Distribution Plan
The Board of Trustees adopted a Distribution and Service Plan pursuant to Rule 12b-1 under the 1940 Act. In accordance with the Rule 12b-1 plan, the Funds are authorized to pay an amount up to 0.25% of their average daily net assets each year to reimburse First Trust Portfolios L.P. (“FTP”), the distributor of the Funds, for amounts expended to finance activities primarily intended to result in the sale of Creation Units or the provision of investor services. FTP may also use this amount to compensate securities dealers or other persons that are Authorized Participants for providing distribution assistance, including broker-dealer and shareholder support and educational and promotional services.
No 12b-1 fees are currently paid by the Funds, and pursuant to a contractual arrangement, no 12b-1 fees will be paid any time before January 31, 2026.
7. Indemnification
The Trust, on behalf of the Funds, has a variety of indemnification obligations under contracts with its service providers. The Trust’s maximum exposure under these arrangements is unknown. However, the Trust has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.
8. Subsequent Events
Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were issued and has determined that there were no subsequent events requiring recognition or disclosure in the financial statements that have not already been disclosed.
Page 21
Report of Independent Registered Public Accounting Firm
To the Shareholders and Board of Trustees of First Trust Exchange-Traded Fund II:
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statements of assets and liabilities of First Trust Nasdaq Lux Digital Health Solutions ETF, First Trust Indxx Metaverse ETF, and First Trust Emerging Markets Human Flourishing ETF (the “Funds”), each a series of the First Trust Exchange-Traded Fund II, including the portfolios of investments, as of September 30, 2024, and the related statements of operations, the statement of changes in net assets, and the financial highlights for the periods listed in the table below; and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Funds as of September 30, 2024, and the results of their operations, the changes in their net assets, and the financial highlights for the periods listed in the table below, in conformity with accounting principles generally accepted in the United States of America.
 
Individual Funds Included
in the Trust
Statements of
Operations
Statements of Changes
in Net Assets
Financial Highlights
First Trust Nasdaq Lux Digital Health
Solutions ETF
For the year ended
September 30, 2024
For the years ended
September 30, 2024, and
2023
For the years ended September 30,
2024, and 2023, and for the period
from March 22, 2022
(commencement of investment
operations) through September 30,
2022
First Trust Indxx Metaverse ETF
For the years ended September 30,
2024, and 2023, and for the period
from April 19, 2022
(commencement of investment
operations) through September 30,
2022
First Trust Emerging Markets Human
Fluorishing ETF
For the period from October 30, 2023 (commencement of investment operations)
through September 30, 2024
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Funds are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of September 30, 2024, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/ Deloitte & Touche, LLP
Chicago, Illinois
November 20, 2024
We have served as the auditor of one or more First Trust investment companies since 2001.
Page 22
Other Information
First Trust Exchange-Traded Fund II
September 30, 2024 (Unaudited)
Changes in and Disagreements with Accountants (Item 8 of Form N-CSR)
There were no changes in or disagreements with the Funds’ accountants during the fiscal period ended September 30, 2024.
Proxy Disclosures (Item 9 of Form N-CSR)
There were no matters submitted for vote by shareholders of any Fund during the fiscal period ended September 30, 2024.
Remuneration Paid to Directors, Officers, and Others (Item 10 of Form N-CSR)
Independent Trustees and any member of any advisory board of each Fund are compensated through the unitary management fee paid by each Fund to the advisor and not directly by each Fund. The investment advisory fee paid is included in the Statements of Operations.
Statement Regarding the Basis for the Board’s Approval of Investment Advisory Contract (Item 11 of Form N-CSR)
The Board of Trustees of First Trust Exchange-Traded Fund II (the “Trust”), including the Independent Trustees, unanimously approved the continuation of the Investment Management Agreement (the “Agreement”) with First Trust Advisors L.P. (the “Advisor”) on behalf of the following series of the Trust (each a “Fund” and collectively, the “Funds”):
First Trust Nasdaq Lux Digital Health Solutions ETF (EKG)
First Trust Indxx Metaverse ETF (ARVR)
The Board approved the continuation of the Agreement for each Fund for a one-year period ending June 30, 2025 at a meeting held on June 2–3, 2024. The Board determined for each Fund that the continuation of the Agreement is in the best interests of the Fund in light of the nature, extent and quality of the services provided and such other matters as the Board considered to be relevant in the exercise of its business judgment.
To reach this determination for each Fund, the Board considered its duties under the Investment Company Act of 1940, as amended (the “1940 Act”), as well as under the general principles of state law, in reviewing and approving advisory contracts; the requirements of the 1940 Act in such matters; the fiduciary duty of investment advisors with respect to advisory agreements and compensation; the standards used by courts in determining whether investment company boards have fulfilled their duties; and the factors to be considered by the Board in voting on such agreements. At meetings held on April 16, 2024, April 25, 2024 and June 2–3, 2024, the Board, including the Independent Trustees, reviewed materials provided by the Advisor responding to requests for information from counsel to the Independent Trustees, submitted on behalf of the Independent Trustees, that, among other things, outlined: the services provided by the Advisor to each Fund (including the relevant personnel responsible for these services and their experience); the unitary fee rate schedule payable by each Fund as compared to fees charged to a peer group of funds (the “Expense Group”) and a broad peer universe of funds (the “Expense Universe”), each assembled by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent source, and as compared to fees charged to other clients of the Advisor, including other exchange-traded funds (“ETFs”) managed by the Advisor; the expense ratio of each Fund as compared to expense ratios of the funds in the Fund’s Expense Group and Expense Universe; performance information for each Fund, including comparisons of each Fund’s performance to that of one or more relevant benchmark indexes and to that of a performance group of funds and a broad performance universe of funds (the “Performance Universe”), each assembled by Broadridge; the nature of expenses incurred in providing services to each Fund and the potential for the Advisor to realize economies of scale, if any; profitability and other financial data for the Advisor; any indirect benefits to the Advisor and its affiliate, First Trust Portfolios L.P. (“FTP”); and information on the Advisor’s compliance program. The Board reviewed initial materials with the Advisor at the meeting held on April 25, 2024, prior to which the Independent Trustees and their counsel met separately to discuss the information provided by the Advisor. Following the April 25, 2024 meeting, counsel to the Independent Trustees, on behalf of the Independent Trustees, requested certain clarifications and supplements to the materials provided, and the information provided in response to those requests was considered at an executive session of the Independent Trustees and their counsel held prior to the June 2–3, 2024 meeting, as well as at the June meeting. The Board applied its business judgment to determine whether the arrangement between the Trust and the Advisor continues to be a reasonable business arrangement from each Fund’s perspective. The Board determined that, given the totality of the information provided with respect to the Agreement, the Board had received sufficient information to renew the Agreement. The Board considered that shareholders chose to invest or remain invested in a Fund knowing that the Advisor manages the Fund and knowing the Fund’s unitary fee.
In reviewing the Agreement for each Fund, the Board considered the nature, extent and quality of the services provided by the Advisor under the Agreement. The Board considered that the Advisor is responsible for the overall management and administration of the
Page 23
Other Information (Continued)
First Trust Exchange-Traded Fund II
September 30, 2024 (Unaudited)
Trust and each Fund and reviewed all of the services provided by the Advisor to the Funds, as well as the background and experience of the persons responsible for such services. In reviewing the services provided, the Board noted the compliance program that had been developed by the Advisor and considered that it includes a robust program for monitoring the Advisor’s and each Fund’s compliance with the 1940 Act, as well as each Fund’s compliance with its investment objective, policies and restrictions. The Board also considered a report from the Advisor with respect to its risk management functions related to the operation of the Funds. Finally, as part of the Board’s consideration of the Advisor’s services, the Advisor, in its written materials and at the April 25, 2024 meeting, described to the Board the scope of its ongoing investment in additional personnel and infrastructure to maintain and improve the quality of services provided to the Funds and the other funds in the First Trust Fund Complex. In light of the information presented and the considerations made, the Board concluded that the nature, extent and quality of the services provided to the Trust and each Fund by the Advisor under the Agreement have been and are expected to remain satisfactory and that the Advisor has managed each Fund consistent with its investment objective, policies and restrictions.
The Board considered the unitary fee rate schedule payable by each Fund under the Agreement for the services provided. The Board considered that as part of the unitary fee the Advisor is responsible for each Fund’s expenses, including the cost of transfer agency, custody, fund administration, legal, audit and other services and license fees, if any, but excluding the fee payment under the Agreement and interest, taxes, brokerage commissions and other expenses connected with the execution of portfolio transactions, distribution and service fees pursuant to a Rule 12b-1 plan, if any, and extraordinary expenses, if any. The Board received and reviewed information showing the fee rates and expense ratios of the peer funds in the Expense Groups, as well as advisory and unitary fee rates charged by the Advisor to other fund (including ETFs) and non-fund clients, as applicable. Because each Fund pays a unitary fee, the Board determined that expense ratios were the most relevant comparative data point. Based on the information provided, the Board noted that the total (net) expense ratio for each Fund was above the median total (net) expense ratio of the peer funds in its respective Expense Group. With respect to the Expense Groups, the Board discussed with Broadridge its methodology for assembling peer groups and discussed with the Advisor limitations in creating peer groups for index ETFs, including differences in underlying indexes and index-tracking methodologies that can result in greater management complexities across seemingly comparable ETFs, and different business models that may affect the pricing of services among ETF sponsors. The Board took these limitations and differences into account in considering the peer data. With respect to fees charged to other non-ETF clients, the Board considered differences between the Funds and other non-ETF clients that limited their comparability. In considering the unitary fee rate schedules overall, the Board also considered the Advisor’s statement that it seeks to meet investor needs through innovative and value-added investment solutions and the Advisor’s demonstrated long-term commitment to each Fund and the other funds in the First Trust Fund Complex.
The Board considered performance information for each Fund. The Board noted the process it has established for monitoring each Fund’s performance and portfolio risk on an ongoing basis, which includes quarterly performance reporting from the Advisor for the Funds. The Board determined that this process continues to be effective for reviewing each Fund’s performance. The Board received and reviewed information for the one-year period ended December 31, 2023 regarding the performance of each Fund’s underlying index, the correlation between each Fund’s performance and that of its underlying index, each Fund’s tracking difference and each Fund’s excess return as compared to its benchmark index. Based on the information provided and its ongoing review of performance, the Board concluded that each Fund was correlated to its underlying index and that the tracking difference for each Fund was within a reasonable range. In addition, the Board reviewed data prepared by Broadridge comparing each Fund’s performance to that of its respective Performance Universe and to that of a broad-based benchmark index. However, given each Fund’s objective of seeking investment results that correspond generally to the performance of its underlying index, the Board placed more emphasis on its review of correlation and tracking difference.
On the basis of all the information provided on the unitary fee and performance of each Fund and the ongoing oversight by the Board, the Board concluded that the unitary fee for each Fund continues to be reasonable and appropriate in light of the nature, extent and quality of the services provided by the Advisor to each Fund under the Agreement.
The Board considered information and discussed with the Advisor whether there were any economies of scale in connection with providing advisory services to the Funds at current asset levels and whether the Funds may benefit from any economies of scale. The Board noted that the unitary fee rate schedule for each Fund includes breakpoints pursuant to which the unitary fee rate will be reduced as assets of the Fund meet certain thresholds. The Board considered the Advisor’s statement that it believes that its expenses relating to providing advisory services to the Funds will increase during the next twelve months as the Advisor continues to build infrastructure and add new staff. The Board also noted that under the unitary fee structure, any reduction in expenses associated with the management and operations of the Funds would benefit the Advisor, but that the unitary fee structure provides a level of certainty in expenses for shareholders of the Funds. The Board concluded that the unitary fee rate schedule for each Fund reflects an appropriate
Page 24
Other Information (Continued)
First Trust Exchange-Traded Fund II
September 30, 2024 (Unaudited)
level of sharing of any economies of scale that may be realized in the management of the Fund at current asset levels. The Board considered the revenues and allocated costs (including the allocation methodology) of the Advisor in serving as investment advisor to each Fund for the twelve months ended December 31, 2023 and the estimated profitability level for each Fund calculated by the Advisor based on such data, as well as complex-wide and product-line profitability data, for the same period. The Board noted the inherent limitations in the profitability analysis and concluded that, based on the information provided, the Advisor’s profitability level for each Fund was not unreasonable. In addition, the Board considered indirect benefits described by the Advisor that may be realized from its relationship with the Funds. The Board considered that the Advisor had identified as an indirect benefit to the Advisor and FTP their exposure to investors and brokers who, absent their exposure to the Funds, may have had no dealings with the Advisor or FTP, and noted that the Advisor does not utilize soft dollars in connection with the Funds. The Board concluded that the character and amount of potential indirect benefits to the Advisor were not unreasonable.
Based on all of the information considered and the conclusions reached, the Board, including the Independent Trustees, unanimously determined that the terms of the Agreement continue to be fair and reasonable and that the continuation of the Agreement is in the best interests of each Fund. No single factor was determinative in the Board’s analysis.
Federal Tax Information
For the taxable period ended September 30, 2024, the following percentages of income dividends paid by the Funds qualify for the dividends received deduction available to corporations:
 
 
Dividends Received
Deduction
First Trust Nasdaq Lux Digital Health Solutions ETF
0.00
%
First Trust Indxx Metaverse ETF
52.02
%
First Trust Emerging Markets Human Flourishing ETF
0.00
%
For the taxable period ended September 30, 2024, the following percentages of income dividends paid by the Funds are hereby designated as qualified dividend income:
 
 
Qualified Dividend
Income
First Trust Nasdaq Lux Digital Health Solutions ETF
0.00
%
First Trust Indxx Metaverse ETF
67.49
%
First Trust Emerging Markets Human Flourishing ETF
58.86
%
The following Fund meets the requirements of Section 853 of the Internal Revenue Code of 1986, as amended and elects to pass through to its shareholders credit for foreign taxes paid. For the taxable period ended September 30, 2024, the total amounts of income received by the Fund from sources within foreign countries and possessions of the United States and of taxes paid to such countries are as follows:
 
 
Gross Foreign Income
Foreign Taxes Paid
 
Amount
Per Share
Amount
Per Share
First Trust Emerging Markets Human Flourishing ETF
$1,515,579
$0.84
$170,215
$0.09
Disclaimer
First Trust Nasdaq Lux Digital Health Solutions ETF
Nasdaq® and Nasdaq Lux Health TechTM Index are registered trademarks and service marks of Nasdaq, Inc. (together with its affiliates hereinafter referred to as the “Corporations”) and are licensed for use by First Trust. The Fund has not been passed on by the Corporations as to its legality or suitability. The Fund is not issued, endorsed, sold, or promoted by the Corporations. THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE FUND.
Page 25
Other Information (Continued)
First Trust Exchange-Traded Fund II
September 30, 2024 (Unaudited)
First Trust Indxx Metaverse ETF
Indxx and Indxx Metaverse Index (“Index”) are trademarks of Indxx, Inc. (“Indxx”) and have been licensed for use for certain purposes by First Trust. The Fund is not sponsored, endorsed, sold or promoted by Indxx and Indxx makes no representation regarding the advisability of trading in such product. The Index is determined, composed and calculated by Indxx without regard to First Trust or the Fund.
First Trust Emerging Markets Human Flourishing ETF
“Bloomberg®” and Emerging Markets Human Flourishing Index licensed herein (the “Indices”) are service marks of Bloomberg Finance L.P. and its affiliates, including Bloomberg Index Services Limited (“BISL”), the administrator of the Indices (collectively, “Bloomberg”) and have been licensed for use for certain purposes by First Trust Advisors L.P. (the “Licensee”). Bloomberg is not affiliated with the Licensee, and Bloomberg does not approve, endorse, review, or recommend the financial products referenced herein (the “Financial Products”). Bloomberg does not guarantee the timeliness, accurateness, or completeness of any data or information relating to the Indices or the Financial Products.
Page 26
 
 

 

(b) The Financial Highlights is included in the Financial Statements and Other Information filed under Item 7(a) of this Form N-CSR.

Item 8. Changes in and Disagreements with Accountants for Open-End Management Investment Companies.

Not applicable to the Registrant.

 

Item 9. Proxy Disclosures for Open-End Management Investment Companies.

 

Not applicable to the Registrant.

Item 10. Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies

This information is included in the Financial Statements and Other Information filed under Item 7(a) of this Form N-CSR.

Item 11. Statement Regarding Basis for Approval of Investment Advisory Contract.

This statement is included in the Financial Statements and Other Information filed under Item 7(a) of this Form N-CSR.

Item 12. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable to the Registrant.

Item 13. Portfolio Managers of Closed-End Management Investment Companies.

Not applicable to the Registrant.

 

Item 14. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable to the Registrant.

Item 15. Submission of Matters to a Vote of Security Holders.

There have been no material changes to the procedures by which the shareholders may recommend nominees to the Registrant’s board of directors, where those changes were implemented after the Registrant last provided disclosure in response to the requirements of Item 407(c)(2)(iv) of Regulation S-K (17 CFR 229.407) (as required by Item 22(b)(15) of Schedule 14A (17 CFR 240.14a-101)), or this Item.

Item 16. Controls and Procedures.

(a) The Registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the Registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)).

 

(b) There were no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

 

Item 17. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.

(a) Not applicable to the Registrant.

 

(b) Not applicable to the Registrant.

 

Item 18. Recovery of Erroneously Awarded Compensation.

(a) Not applicable to the Registrant.

 

(b) Not applicable to the Registrant.

 

Item 19. Exhibits.

(a)(1) Code of ethics, or any amendment thereto, that is the subject of disclosure required by Item 2 is attached hereto.

 

(a)(2) Not applicable to the Registrant.

 

(a)(3) The certifications required by Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2022 are attached hereto.

 

(a)(4) Not applicable to the Registrant.

 

(a)(5) Not applicable to the Registrant.

 

(b) Certifications pursuant to Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto.

 

 

 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

(registrant)  

First Trust Exchange-Traded Fund II

By (Signature and Title)*   /s/ James M. Dykas
    James M. Dykas, President and Chief Executive Officer
(principal executive officer)
Date:   December 9, 2024  

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By (Signature and Title)*   /s/ James M. Dykas
    James M. Dykas, President and Chief Executive Officer
(principal executive officer)
Date:   December 9, 2024  
By (Signature and Title)*   /s/ Derek D. Maltbie
    Derek D. Maltbie, Treasurer, Chief Financial Officer
and Chief Accounting Officer
(principal financial officer)
Date:   December 9, 2024  

* Print the name and title of each signing officer under his or her signature.