First Trust Advisors L.P. ("FTA") announces the declaration of
the Monthly distribution for First Trust Enhanced Short Maturity
ETF, a series of First Trust Exchange-Traded Fund IV.
The following dates apply to today's distribution
declaration:
Expected Ex-Dividend Date:
January 31, 2023
Record Date:
February 1, 2023
Payable Date:
February 3, 2023
Ticker
Exchange
Fund
Name
Frequency
Ordinary
Income Per Share Amount
ACTIVELY MANAGED EXCHANGE-TRADED
FUNDS
First Trust Exchange-Traded Fund
IV
FTSM
Nasdaq
First Trust Enhanced Short
Maturity ETF
Monthly
$0.2010
First Trust Advisors L.P. ("FTA") is a federally registered
investment advisor and serves as the Fund's investment advisor. FTA
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. FTA has collective assets under
management or supervision of approximately $190 billion as of
December 31, 2022 through unit investment trusts, exchange-traded
funds, closed-end funds, mutual funds and separate managed
accounts. FTA 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. FTA and
FTP are based in Wheaton, Illinois.
You should consider the investment objectives, risks, charges
and expenses of the Fund before investing. The prospectus for the
Fund contains this and other important information and is available
free of charge by calling toll-free at 1-800-621-1675 or
visiting www.ftportfolios.com. The prospectus should
be read carefully before investing.
Principal Risk Factors: Risks are inherent in all investing.
Certain risks applicable to the fund are identified below. The
material risks of investing in the fund are spelled out in its
prospectus, statement of additional information and other
regulatory filings. The order of the below risk factors does not
indicate the significance of any particular risk factor.
Past performance is no assurance of future results. Investment
return and market value of an investment in the Fund will
fluctuate. Shares, when sold, may be worth more or less than their
original cost.
The Fund's shares will change in value, and you could lose money
by investing in the Fund. An investment in the Fund is not a
deposit of a bank and is not insured or guaranteed by the Federal
Deposit Insurance Corporation or any other governmental agency.
There can be no assurance that the Fund's investment objectives
will be achieved. An investment in the Fund involves risks similar
to those of investing in any portfolio of securities traded on
exchanges.
Securities held by a fund, as well as shares of a fund itself,
are subject to market fluctuations caused by factors such as
general economic conditions, political events, regulatory or market
developments, changes in interest rates and perceived trends in
securities prices. Shares of a fund could decline in value or
underperform other investments as a result of the risk of loss
associated with these market fluctuations. In addition, local,
regional or global events such as war, acts of terrorism, spread of
infectious diseases or other public health issues, recessions, or
other events could have a significant negative impact on a fund and
its investments. Such events may affect certain geographic regions,
countries, sectors and industries more significantly than others.
In February 2022, Russia invaded Ukraine which has caused and could
continue to cause significant market disruptions and volatility
within the markets in Russia, Europe, and the United States. The
hostilities and sanctions resulting from those hostilities could
have a significant impact on certain fund investments as well as
fund performance. The COVID-19 global pandemic and the ensuing
policies enacted by governments and central banks have caused and
may continue to cause significant volatility and uncertainty in
global financial markets. While the U.S. has resumed "reasonably"
normal business activity, many countries continue to impose
lockdown measures. Additionally, there is no guarantee that
vaccines will be effective against emerging variants of the
disease.
Investors buying or selling Fund shares on the secondary market
may incur customary brokerage commissions. Investors who sell Fund
shares may receive less than the share's net asset value. Shares
may be sold throughout the day on the exchange through any
brokerage account. However, unlike mutual funds, shares may only be
redeemed directly from the Fund by authorized participants, in very
large creation/redemption units. If the Fund's authorized
participants are unable to proceed with creation/redemption orders
and no other authorized participant is able to step forward to
create or redeem, Fund shares may trade at a discount to the Fund's
net asset value and possibly face delisting.
The risk of investing in mortgage-related and other asset-based
securities include interest rate risk, extension risk and
prepayment risk. Generally, rising interest rates tend to extend
the duration of fixed rate mortgage-related securities, making them
more sensitive to changes in interest rates. Extension risk is
prevalent when in a period of rising interest rates, the fund holds
mortgage-related securities and such securities exhibit additional
volatility. Prepayments can reduce the returns of the fund because
the fund may have to reinvest that money at the lower prevailing
interest rates. The fund's investments in asset-backed securities
are subject to risks similar to those associated with
mortgage-related securities, as well as additional risks associated
with the nature of the assets and the servicing of those assets.
Investments in asset-backed or mortgage-backed securities offered
by non-governmental issuers, such as commercial banks, savings and
loans, private mortgage insurance companies, mortgage bankers and
other secondary market issuers are subject to additional risks.
An actively managed ETF is subject to management risk because it
is an actively managed portfolio. In managing such a Fund's
investment portfolio, the portfolio managers, management team, or
advisor, will apply investment techniques and risk analyses that
may not have the desired result.
An investment in a Fund containing securities of non-U.S.
issuers is subject to additional risks, including currency
fluctuations, political risks, withholding, the lack of adequate
financial information, and exchange control restrictions impacting
non-U.S. issuers.
The Fund is subject to credit risk, call risk, income risk,
interest rate risk and prepayment risk. Credit risk is the risk
that an issuer of a security will be unable or unwilling to make
dividend, interest and/or principal payments when due and that the
value of a security may decline as a result. Credit risk is
heightened for floating-rate loans and high-yield securities. Call
risk is the risk that if an issuer calls higher-yielding debt
instruments held by the Fund, performance could be adversely
impacted. Income risk is the risk that income from a Fund's
fixed-income investments could decline during periods of falling
interest rates. Interest rate risk is the risk that the value of
the fixed-income securities in the Fund will decline because of
rising market interest rates. Prepayment risk is the risk that
during periods of falling interest rates, an issuer may exercise
its right to pay principal on an obligation earlier than expected.
This may result in a decline in the Fund's income.
Senior floating-rate loans are usually rated below investment
grade but may also be unrated. As a result, the risks associated
with these loans are similar to the risks of high-yield fixed
income instruments. High-yield securities, or "junk" bonds, are
subject to greater market fluctuations and risk of loss than
securities with higher ratings, and therefore, may be highly
speculative. These securities are issued by companies that may have
limited operating history, narrowly focused operations, and/or
other impediments to the timely payment of periodic interest and
principal at maturity. The market for high yield securities is
smaller and less liquid than that for investment grade
securities.
To the extent a fund invests in floating or variable rate
obligations that use the London Interbank Offered Rate ("LIBOR") as
a reference interest rate, it is subject to LIBOR Risk. The United
Kingdom's Financial Conduct Authority, which regulates LIBOR has
ceased making LIBOR available as a reference rate over a phase-out
period that began December 31, 2021. There is no assurance that any
alternative reference rate, including the Secured Overnight
Financing Rate ("SOFR") will be similar to or produce the same
value or economic equivalence as LIBOR or that instruments using an
alternative rate will have the same volume or liquidity. The
unavailability or replacement of LIBOR may affect the value,
liquidity or return on certain fund investments and may result in
costs incurred in connection with closing out positions and
entering into new trades. Any potential effects of the transition
away from LIBOR on the fund or on certain instruments in which the
fund invests can be difficult to ascertain, and they may vary
depending on a variety of factors, and they could result in losses
to the fund.
The Fund may effect a portion of creations and redemptions for
cash, rather than in-kind securities. As a result, an investment in
the Fund may be less tax-efficient than an investment in an
exchange-traded fund that effects its creations and redemptions for
in-kind securities.
The Fund may invest in other investment companies which involves
additional expenses that would not be present in a direct
investment in the underlying funds. In addition, the Fund's
investment performance and risks may be related to the investment
and performance of the underlying funds.
The Fund is subject to risks arising from various operational
factors, including, but not limited to, human error, processing and
communication errors, errors of a fund's service providers,
counterparties or other third parties, failed or inadequate
processes and technology or systems failures. Although the Fund and
the Advisor seek to reduce these operational risks through controls
and procedures, there is no way to completely protect against such
risks.
Volatility is the characteristic of a security, an index or a
market to fluctuate significantly in price within a short time
period. The Fund may invest in securities or financial instruments
that exhibit more volatility than the market as a whole. Such
exposures could cause the Fund's net asset value to experience
significant increases or declines in value over short periods of
time.
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.
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