|Quarter End Performance (as of 6/30/11)||Quarter||YTD||1 Yr.||3 Yr.||5 Yr.||10 Yr.||Since FundInception|
|Fund Performance 1|
|After Tax Held||-0.23%||5.74%||51.73%||17.50%||11.36%||N/A||12.60%|
|After Tax Sold||-0.14%||3.74%||33.67%||15.20%||9.94%||N/A||11.05%|
|Dow Jones Internet Composite Index SM2||-0.06%||6.01%||52.68%||18.10%||11.97%||6.60%||13.20%|
|S&P Composite 1500 Information Technology Index||-1.57%||2.46%||27.68%||6.64%||6.86%||1.37%||7.09%|
|S&P 500 Index||0.10%||6.02%||30.69%||3.34%||2.94%||2.72%||3.43%|
As of June 30, 2011, FDN held 40 stocks with market capitalizations ranging from a maximum of $163.12 billion to a minimum of $384 million. FDN’s largest holding is Google. Other top holdings include Amazon.com, eBay, Yahoo!, and Juniper Networks. The fund is rebalanced quarterly.“With the rapidly changing nature of technology, and as more people and devices across the globe get connected to the Internet, FDN gives investors an easy way to gain exposure to all the developments and breakthroughs that are reshaping the world we live in,” said Carey. The First Trust Dow Jones Internet Index Fund, along with the more than 200 investment products managed or supervised by First Trust or its affiliate First Trust Portfolios L.P., including ETFs, Unit Investment Trusts (UITs), mutual funds, closed-end funds, variable annuities, structured products, products for the retirement market, and managed accounts, are made available to investors through financial advisors. You should consider the fund’s investment objectives, risks, and charges and expenses carefully before investing. Contact First Trust Portfolios L.P. at 1-800-621-1675 or visit www.ftportfolios.com to obtain a prospectus or summary prospectus which contains this and other information about the fund. The prospectus or summary prospectus should be read carefully before investing. For more information about FDN, see the FDN Summary Page. For more information about First Trust, please contact Chris Moon of JCPR at 973-850-7304 or by email at firstname.lastname@example.org . About First Trust Based in Wheaton, IL, First Trust and its affiliate First Trust Portfolios L.P. provide a broad range of investment products and services that help financial advisors meet the financial needs and objectives of their clients. Among the firms’ more than 200 investment product offerings are its family of 60 Exchange-Traded Funds, including the AlphaDEX ® series of ETFs. As of June 30, 2011, 17 First Trust ETFs, including 10 AlphaDEX ® ETFs, received a 4- or 5-Star Overall Morningstar Rating TM.* Founded in 1991 with the goal of offering investors a better way to invest, First Trust is nationally recognized for its proprietary, rules-based, quantitative investment methodology which it makes available in several of its product lines. As of 6/30/11, the firms managed or supervised $51 billion in assets. For more information, visit www.ftportfolios.com. 1After Tax Held returns represent return after taxes on distributions. Assumes shares have not been sold. After Tax Sold returns represent the return after taxes on distributions and the sale of fund shares. Returns do not represent the returns you would receive if you traded shares at other times. Market Price returns are based on the midpoint of the bid/ask spread. Returns are average annualized total returns, except those for periods of less than one year, which are cumulative. The fund’s performance reflects fee waivers and expense reimbursements, absent which performance would have been lower. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on the investor’s tax situation and may differ from those shown. The after-tax returns shown are not relevant to investors who hold their fund shares through tax-deferred arrangements such as 401(k) plans or individual retirement accounts. 2Past performance is not a guarantee of future results. Performance information for the Dow Jones Internet Composite Index SM is for illustrative purposes only and does not represent actual fund performance. No representation is being made that any investment will achieve performance similar to that shown. The Index does not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the performance shown. Indexes are unmanaged and an investor cannot invest directly in an index. All index returns assume that dividends are reinvested when they are received. Principal Risk Factors The fund’s shares will change in value, and you could lose money by investing in the fund. One of the principal risks of investing in the fund is market risk. Market risk is the risk that a particular stock owned by the fund, fund shares or stocks in general may fall in value.
The fund’s return may not match the return of the Dow Jones Internet Composite Index SM. The fund may not be fully invested at times. Securities held by the fund will generally not be bought or sold in response to market fluctuations. The fund may invest in small capitalization and mid capitalization companies. Such companies may experience greater price volatility than larger, more established companies.Investors buying or selling fund shares on the secondary market may incur customary brokerage commissions. Investors who sell fund shares may receive less than the share’s net asset value. Shares may be sold throughout the day on the exchange through any brokerage account. However, shares may only be redeemed directly from the fund by authorized participants, in very large creation/redemption units. The fund is concentrated in stocks of companies in the technology sector. You should be aware that an investment in a portfolio which is concentrated in a particular sector involves additional risks, including limited diversification. The companies engaged in the technology sector are subject to fierce competition, high research and development costs, and their products and services may be subject to rapid obsolescence. The fund invests in the securities of Internet companies. Internet companies are subject to rapid changes in technology, worldwide competition, rapid obsolescence of products and services, loss of patent protections, cyclical market patterns, evolving industry standards and frequent new product introductions. The fund’s investment in Internet companies may also be subject to the risk of owning small capitalization companies that have recently begun operations. The fund is classified as “non-diversified.” A non-diversified fund generally may invest a larger percentage of its assets in the securities of a smaller number of issuers. As a result, the fund may be more susceptible to the risks associated with these particular companies, or to a single economic, political or regulatory occurrence affecting these companies.
The Dow Jones Internet Composite Index SM, is a product of Dow Jones Indexes, a licensed trademark of CME Group Index Services LLC (“CME”), and has been licensed for use. “Dow Jones ®”, “Dow Jones Internet Composite Index SM”, and “Dow Jones Indexes” are service marks of Dow Jones Trademark Holdings, LLC (“Dow Jones”), and have been licensed to CME and have been sublicensed for use for certain purposes by First Trust. First Trust’s ETF, based on the Dow Jones Internet Composite Index SM, is not sponsored, endorsed, sold or promoted by Dow Jones, CME or their respective affiliates and none of them makes any representation regarding the advisability of investing in such products.The S&P 500 Index is an unmanaged index of 500 stocks used to measure large-cap U.S. stock market performance. The S&P Composite 1500 Information Technology Index is a capitalization-weighted index of companies classified by GICS as information technology within the S&P Composite 1500 Index. ©2011 Morningstar, Inc. All Rights Reserved. The Morningstar Rating TM information contained herein: (1) is proprietary to Morningstar; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. *As of June 30, 2011, the First Trust Dow Jones Internet Index SM Fund was rated 5 stars among 175 funds in the Technology category for the 3 year period and 4 stars among 169 funds for the 5 year period. The Morningstar Rating TM is provided for those exchange-traded funds (“ETFs”) with at least a three-year history. Ratings are based on the ETF’s Morningstar Risk-Adjusted Return measure which accounts for variation in monthly performance, placing more emphasis on downward variations and rewarding consistent performance. An ETF’s risk-adjusted return includes a brokerage commission estimate. This estimate is intended to reflect what an average investor would pay when buying or selling an ETF. PLEASE NOTE, this estimate is subject to change and the actual brokerage commission an investor pays may be higher or lower than this estimate. Morningstar compares each ETF’s risk-adjusted return to the open-end mutual fund rating breakpoints for that category. Consistent with the open-end mutual fund ratings, the top 10% of ETFs in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. The overall rating for an ETF is based on a weighted average of the time-period ratings (e.g., the ETF’s 3, 5, and 10 year rating). The determination of an ETF’s rating does not affect the retail open end mutual fund data published by Morningstar. Past performance is no guarantee of future results.