Index-based ETFs that provide exposure to companies engaged in streaming & gaming, future vehicles and e-commerce

First Trust Advisors L.P. (“First Trust”), a leading exchange-traded fund (“ETF”) provider and asset manager, announced today that it launched a new index-based ETF, the First Trust S-Network Streaming & Gaming ETF (NYSE Arca: BNGE). Additionally, two existing funds have undergone changes. The First Trust NASDAQ Global Auto Index Fund (Nasdaq: CARZ) changed to First Trust S-Network Future Vehicles & Technology ETF and the First Trust Nasdaq Retail ETF (Nasdaq: FTXD) changed to the First Trust S-Network E-Commerce ETF (Nasdaq: ISHP) (collectively, the “funds”).

The funds add to First Trust’s Digitalization and Enhanced Mobility themes, expanding First Trust’s overall thematic ETF lineup to a total of 26 funds. “As consumer trends, behaviors and needs continue to evolve at a rapid pace, new index-based tools are needed to track the growth and development of companies that do not neatly fit into traditional sector classifications,” said Robert Hughes, Chief Commercial Officer of Alerian and S-Network Global Indexes. “We are excited to work with First Trust to introduce solutions that provide the marketplace with greater insights into unique companies offering emerging technologies, products and services.”

About First Trust’s New Thematic ETF Investment Strategies:

• BNGE seeks investment results that correspond generally to the price and yield, before the fund’s fees and expenses, of an index called the S-Network Streaming & Gaming Index, which provides exposure to companies engaged in online services related to gaming and content streaming that enable remote users to access online content; publish online content; participate in prospective wagering; spectate or participate in competitive video gaming; and/or that provide products, services and technology that are necessary for the streaming and gaming industries.

• CARZ begins tracking a new index on January 26, 2022. The fund’s new investment objective is to seek investment results that correspond generally to the price and yield, before the fund’s fees and expenses, of an index called the S-Network Electric & Future Vehicle Ecosystem Index, which provides exposure to companies that are materially engaged in the development and sales of electric and autonomous vehicle technologies, including those companies that manufacture electric and autonomous vehicles; companies involved in enabling technologies such as batteries, sensors and semiconductors; and companies that mine rare earth metals used for energy storage and conversion.

• ISHP begins tracking a new index on January 26, 2022. The fund’s new investment objective is to seek investment results that correspond generally to the price and yield, before the fund’s fees and expenses, of an index called the S-Network Global E-Commerce Index, which provides exposure to companies that are materially engaged in the global e-commerce industry, including the online retail, online marketplace, content navigation and e-commerce infrastructure business segments.

“As a leading provider of thematic ETFs, we believe BNGE, CARZ and ISHP provide compelling tools for investment professionals to gain exposure to investment trends in specialized industries,” said Ryan Issakainen, CFA, Senior Vice President, ETF Strategist at First Trust. “In our view, many of these technologies are just getting started. As they mature, and as the next generation of consumers gains more buying power, we believe these trends may accelerate.”

For more information about First Trust, please contact Ryan Issakainen at (630) 765-8689 or RIssakainen@FTAdvisors.com.

About First Trust

First Trust is a federally registered investment advisor and serves as the fund’s investment advisor. First Trust and its affiliate First Trust Portfolios L.P. (“FTP”), a FINRA registered broker-dealer, are privately held companies that provide a variety of investment services. First Trust has collective assets under management or supervision of approximately $223 billion as of December 31, 2021 through unit investment trusts, exchange-traded funds, closed-end funds, mutual funds and separate managed accounts. First Trust is the supervisor of the First Trust unit investment trusts, while FTP is the sponsor. FTP is also a distributor of mutual fund shares and exchange-traded fund creation units. First Trust and FTP are based in Wheaton, Illinois. For more information, visit http://www.ftportfolios.com.

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

Risk Considerations

A fund’s return may not match the return of its underlying index. A fund invests in securities included in the index regardless of investment merit and the securities held by a fund will generally not be bought or sold in response to market fluctuations.

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

A fund’s shares will change in value, and you could lose money by investing in a fund. One of the principal risks of in-vesting in a fund is market risk. Market risk is the risk that a particular stock owned by a fund, fund shares or stocks in general may fall in value. There can be no assurance that a fund’s investment objective will be achieved. The outbreak of the respiratory disease designated as COVID-19 in December 2019 has caused significant volatility and declines in global financial markets, which have caused losses for investors. While the development of vaccines has slowed the spread of the virus and allowed for the resumption of "reasonably" normal business activity in the United States, many countries continue to impose lockdown measures in an attempt to slow the spread. Additionally, there is no guarantee that vaccines will be effective against emerging variants of the disease.

The automotive industry can be highly cyclical, and companies in the industry may suffer periodic operating losses. The industry can be significantly affected by labor relations and fluctuating component prices. While most of the major automotive manufacturers are large companies, others may be non-diversified in both product line and customer base and may be more vulnerable to events that negatively impact the industry.

The success of consumer discretionary companies is tied closely to the performance of the overall U.S. and international economies, interest rates, competition, consumer confidence, disposable household income and consumer spending. Changes in demographics and consumer tastes can also affect the demand for consumer discretionary products.

Changes in currency exchange rates and the relative value of non-US currencies may affect the value of a fund’s investments and the value of a fund’s shares.

As the use of Internet technology has become more prevalent in the course of business, funds have become more susceptible to potential operational risks through breaches in cyber security.

Depositary receipts may be less liquid than the underlying shares in their primary trading market.

Electric vehicle technology is a relatively new technology and is subject to risks associated with a developing industry including intense competition, delays or other complications with production, rapid product obsolescence, increased government regulation, market volatility, and uncertainty of the ability of new products to penetrate established industries, among other factors. Many electric vehicle companies are heavily dependent on patent protection, and the expiration of a company’s patent may adversely affect that company’s profitability. Electric vehicle companies are also subject to competitive forces that may result in price discounting, may be thinly capitalized and susceptible to product obsolescence.

A fund may be a constituent of one or more indices or models which could greatly affect a fund’s trading activity, size and volatility.

There is no assurance that the index provider or its agents will compile or maintain the index accurately.

Many Internet companies have incurred large losses since their inception and may continue to incur large losses in the hope of capturing market share and generating future revenues. Accordingly, many such companies expect to incur significant operating losses for the foreseeable future, and may never be profitable.

Large capitalization companies may grow at a slower rate than the overall market.

Large inflows and outflows may impact a new fund’s market exposure for limited periods of time.

A portfolio comprised of low volatility stocks may not produce investment exposure that has lower variability to changes in such stocks’ price levels. Low volatility stocks are likely to underperform the broader market during periods of rapidly rising stock prices.

A fund classified as “non-diversified” may invest a relatively high percentage of its assets in a limited number of issuers. As a result, a fund may be more susceptible to a single adverse eco-nomic or regulatory occurrence affecting one or more of these issuers, experience increased volatility and be highly concentrated in certain issuers.

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

A fund and a fund's advisor may seek to reduce various operational risks through controls and procedures, but it is not possible to completely protect against such risks.

High portfolio turnover may result in higher levels of transaction costs and may generate greater tax liabilities for shareholders.

Rare earth metals have more specialized uses and are often more difficult to extract. The increased demand for these metals has strained supply and a shortage could adversely affect companies in the portfolio. Rare earth metal companies tend to be smaller with volatile share prices and their value may be significantly affected by various factors including political and economic developments, commodity prices, taxes, regulations, resource depletion and mandated expenditures.

Companies that operate in the online marketplace, retail and travel segments are subject to fluctuating consumer demand and competition. Profit margins in the travel industry are sensitive to seasonal demand, fuel costs and the consumer's perception of travel risks. Online companies may be subject to heightened cybersecurity risk. Any loss or misuse of customer data may adversely affect an online company's operating and financial results, result in litigation or potential liability, and otherwise harm their business.

A fund with significant exposure to a single asset class, country, region, industry, or sector may be more affected by an adverse economic or political development than a broadly diversified fund.

Securities of small- and mid-capitalization companies may experience greater price volatility and be less liquid than larger, more established companies.

Streaming and gaming companies can face intense competition, may be dependent on a limited number of products which can rapidly become obsolete and often heavily rely on the protection of patents and trademarks. They can be subject to intense litigation regarding intellectual property rights, cybersecurity and privacy. These companies are also subject to changes in economic conditions, consumer demand, discretionary spending and technological developments. Additionally, legislative or regulatory changes can impact the ability for these companies to operate in certain jurisdictions and the activities in which they are allowed to engage, which could significantly affect their profitability.

Trading on the exchange may be halted due to market conditions or other reasons. There can be no assurance that the requirements to maintain the listing of a fund on the exchange will continue to be met or be unchanged.

First Trust Advisors L.P. is the adviser to the funds. First Trust Advisors L.P. is an affiliate of First Trust Portfolios L.P., the funds’ distributor.

The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial professionals are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.

S-Network, S-Network Electric & Future Vehicle Ecosystem Index, S-Network Global E-Commerce Index and S-Network Streaming & Gaming Index are service marks of S-Network Global Indexes, Inc. (“S-Network”) and have been licensed for use by First Trust Advisors L.P. The funds are not issued, sponsored, endorsed, sold or promoted by S-Network or its affiliates. S-Network 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 index to track general market performance. S-Network’s only relationship to the funds is the licensing of the service marks and the index, which is determined, composed and calculated by S-Network without regard to First Trust Advisors L.P. or the funds. S-Network 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. S-Network has no obligation or liability in connection with the issuance, administration, marketing or trading of the funds.

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