First Trust Expands ETF Lineup with Launch of Three New Single Stock Target Income ETFs®

First Trust Advisors L.P. ("First Trust"), a leading provider of exchange-traded funds ("ETFs") and outcome-based strategies, announced the launch of three new actively managed ETFs, collectively referred to as the "Single Stock Target Income ETFs" or "the funds." These Single Stock Target Income ETFs each seek to provide current income with a secondary objective of providing capital appreciation, through direct and synthetic exposure to a single target company (the "underlying security" collectively, the "underlying securities"). The underlying securities consist of companies that First Trust considers to be “Market Leaders.” They are typically among the world’s largest companies by market capitalization and are significantly important to a sector, industry, or theme, with strong brand recognition and a history of product innovation.

XVTS, XVAP and XVNV are the latest additions to First Trust's Target Outcome ETF lineup, which now includes over 140 funds, and represents First Trust’s expansion into single stock target income strategies, a category the firm plans to build out further as investor demand for concentrated stock income solutions continues to grow. The funds are sub-advised by Vest Financial LLC ("Vest"), the creator of Target Outcome Investments^® and Target Income Strategies^®.

"These ETFs were designed to provide new solutions for those seeking exposure to high-quality, individual stocks combined with an options-based income strategy," said Ryan Issakainen, CFA, Senior Vice President and ETF Strategist at First Trust. Single Stock Target Income ETFs offer an alternative to traditional income-seeking strategies, providing high income potential and partial participation in the price return of a single publicly traded company through direct investment in the company’s common stock and options contracts on the company’s common stock.

The funds’ strategies seek to provide investors with direct and synthetic exposure to a single target company (the “Underlying Security”). Each fund targets an annual distribution level of approximately 15.0% (before fees and expenses) over the current annual dividend yield of the S&P 500^® Index. This target distribution may stem from multiple sources of income, including dividends from the Underlying Security (if any), option premiums, a box spread trade, and/or U.S. Treasury interest. Income is expected to be distributed to investors monthly.

Each week, the funds evaluate the income expected from stock dividends, U.S. Treasury interest, and box spread premiums. If additional income is needed to support the target income objective, the funds seek to generate additional option premiums by selling weekly at-the-money call options. In exchange for the premiums received, the funds are expected to participate in only a portion of the Underlying Security’s potential price appreciation.

“With XVTS, XVNV, and XVAP, we're bringing Target Income Strategies^® to individual stocks investors know and care deeply about. These funds are designed to address a common portfolio challenge by seeking income from concentrated equity positions in a disciplined, outcome-oriented way,” said Jeff Chang, President of Vest Financial LLC, the funds’ sub-advisor.

Karan Sood and Trevor Lack, of Vest, will serve as portfolio managers for the funds. The portfolio managers are jointly and primarily responsible for the day-to-day management of the funds.

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 funds’ 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 $368 billion as of June 30, 2026, 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 www.ftportfolios.com

About Vest:

Vest delivers the benefits of derivatives with precise, outcome-driven solutions—bringing more certainty and clarity to portfolios. Our Target Outcome Investments^® simplify derivative strategies into trusted, outcome-focused products, accessible through a broad range of investment solutions. As the leader in Target Buffer ETFs^® and creators of over 250 innovative products, we manage $70B+ in AUM/AUA with a pristine track record of target delivery. Combining technical mastery, practical execution, and trusted relationships, Vest is committed to making derivatives work for everyone.

The funds include complex features that make it difficult for investors to fully understand its characteristics and underlying risks.

There is no guarantee that a fund’s distribution target will be achieved. A fund does not seek to achieve any specific level of total return performance of the S&P 500^® Index or the Underlying Security. Capital appreciation of a fund may be less than the total return performance of the Underlying Security. In the event the value of the Underlying Security exceeds the strike price of the call options, the capital appreciation of a fund is expected to be less than the capital appreciation of the Underlying Security. Each fund is expected to fully participate in the Underlying Security price losses, excluding premiums received from the sale of call options.

If income is insufficient to achieve the target, part of the distribution will be a return of principal, which is not considered income. There is no guarantee that the income target will be achieved.

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 or visit www.ftportfolios.com 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

You could lose money by investing in a fund. An investment in a fund is not a deposit of a bank and is not insured or guaranteed. There can be no assurance that a fund's objective(s) will be achieved. Investors buying or selling shares on the secondary market may incur customary brokerage commissions. Please refer to each fund's prospectus and Statement of Additional Information for additional details on a fund's risks. The order of the below risk factors does not indicate the significance of any particular risk factor.

There can be no assurance that an active trading market for fund shares will develop or be maintained.

An investment in a fund may be subject to issuer-specific risks associated with any single company in which a fund invests. These risks may include, but are not limited to, changing consumer or market demand, competition, supply chain disruptions or constraints, manufacturing or production delays, cybersecurity incidents, regulatory and environmental developments, intellectual property issues, reliance on third parties, technological change, new product execution, and broader economic conditions. An issuer’s share price may be highly volatile, and adverse business developments, regulatory actions, or trading halts affecting any such company could materially and negatively affect its share price and, in turn, adversely affect a fund.

An investment in a fund may be subject to risks associated with the particular sectors or industries in which a fund invests. Companies within a given sector may be more susceptible than the market as a whole to factors such as economic cycles, interest rates, consumer confidence, and changing consumer demand; intense competition, aggressive pricing, and reduced profit margins; rapid technological change, short product life cycles, and the risk of obsolescence; evolving regulatory and legislative requirements; reliance on specialized suppliers and third parties, which may result in supply chain disruptions, resource shortages, or rising costs; the need for substantial capital investment to fund innovation and remain competitive; dependence on patents, trademarks, and other intellectual property protections, the loss of which could impair profitability; and operational risks such as cybersecurity incidents or difficulty attracting and retaining skilled personnel. These factors may cause securities within an affected sector to underperform the broader market and may result in increased volatility and reduced performance for a fund.

Please refer to each fund’s prospectus for the specific issuer and sector risk associated with each fund.

A Box Spread is an options strategy with risk and return characteristics similar to cash equivalents. It consists of a synthetic long position (buying a call and selling a put at the same strike price) and a synthetic short position (buying a put and selling a call at a different strike price) on the same reference asset with the same expiration date. This structure aims to eliminate market risk tied to price movements. However, modifying or closing individual options before expiration can reintroduce risk. The strategy’s effectiveness depends on market conditions, interest rates, and the availability of counterparties. If it fails, the fund may be exposed to equity market risks, particularly fluctuations in the S&P 500 Index.

A fund’s use of call options involves risks different from those associated with ordinary portfolio securities transactions and depends on the ability of a fund’s portfolio managers to forecast market movements correctly. As the seller (writer) of a call option, a fund will tend to lose money if the value of the reference index or security rises above the strike price. When writing a call option, a fund will have no control over the exercise of the option by the option holder and the American style options sold by a fund may be exercised at any time before the option expiration date (as opposed to the European style options which may be exercised only on the expiration date). There may be times a fund needs to sell securities in order to settle the options, which may constitute a return of capital and make a fund less tax-efficient than other ETFs. Options may also involve the use of leverage, which could result in greater price volatility than other markets.

A fund that effects all or a portion of its creations and redemptions for cash rather than in-kind may be less tax-efficient.

A fund may be subject to the risk that a counterparty will not fulfill its obligations which may result in significant financial loss to a fund.

Current market conditions risk is the risk that a particular investment, or shares of the fund in general, may fall in value due to current market conditions. For example, changes in governmental fiscal and regulatory policies, disruptions to banking and real estate markets, actual and threatened international armed conflicts and hostilities, and public health crises, among other significant events, could have a material impact on the value of the fund’s investments.

A fund is susceptible to operational risks through breaches in cyber security. Such events could cause a fund to incur regulatory penalties, reputational damage, additional compliance costs associated with corrective measures and/or financial loss.

The use of derivatives instruments involves different and possibly greater risks than investing directly in securities including counterparty risk, valuation risk, volatility risk, and liquidity risk. Further, losses because of adverse movements in the price or value of the underlying asset, index or rate may be magnified by certain features of the derivatives.

A fund normally pays its income as distributions and therefore, a fund may be required to reduce its distributions if it has insufficient income. Additionally at times, a fund may need to sell securities when it would not otherwise do so and could cause distributions from that sale to constitute return of capital. Because of this, a fund may not be an appropriate investment for investors who do not want their principal investment in a fund to decrease over time or who do not wish to receive return of capital in a given period.

Equity securities may decline significantly in price over short or extended periods of time, and such declines may occur in the equity market as a whole, or they may occur in only a particular country, company, industry or sector of the market.

Trading FLEX Options involves risks different from, or possibly greater than, the risks associated with investing directly in securities. A fund may experience substantial downside from specific FLEX Option positions and certain FLEX Option positions may expire worthless. There can be no guarantee that a liquid secondary trading market will exist for the FLEX Options and FLEX options may be less liquid than exchange-traded options.

A fund’s income may decline when interest rates fall or if there are defaults in its portfolio.

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.

As inflation increases, the present value of a fund’s assets and distributions may decline.

Large shareholders may own a significant portion of a fund’s shares. Their purchases or redemptions may increase premiums or discounts to NAV, widen bid/ask spreads, reduce liquidity, increase portfolio turnover and transaction costs, create tax consequences, or require a fund to buy or sell investments at unfavorable times or prices. Large shareholders may also influence matters submitted to shareholders for a vote.

Leverage may result in losses that exceed the amount originally invested and may accelerate the rates of losses. Leverage tends to magnify, sometimes significantly, the effect of any increase or decrease in a fund’s exposure to an asset or class of assets and may cause the value of a fund’s shares to be volatile and sensitive to market swings.

Certain fund investments may be subject to restrictions on resale, trade over-the-counter or in limited volume, or lack an active trading market. Illiquid securities may trade at a discount and may be subject to wide fluctuations in market value.

The portfolio managers of an actively managed portfolio will apply investment techniques and risk analyses that may not have the desired result.

Market risk is the risk that a particular security, or shares of a fund in general may fall in value. Securities are subject to market fluctuations caused by such factors 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. In addition, local, regional or global events such as war, acts of terrorism, spread of infectious disease or other public health issues, recessions, natural disasters or other events could have significant negative impact on a fund.

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

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 economic or regulatory occurrence affecting one or more of these issuers, experience increased volatility and be highly concentrated in certain issuers.

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. The fund also relies on third parties for a range of services, including custody, and any delay or failure related to those services may affect the fund’s ability to meet its objective.

The prices of options are volatile and the effective use of options depends on a fund’s ability to terminate option positions at times deemed desirable to do so. There is no assurance that a fund will be able to effect closing transactions at any particular time or at an acceptable price.

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

The market price of a fund’s shares will generally fluctuate in accordance with changes in the fund’s net asset value (“NAV”) as well as the relative supply of and demand for shares on the exchange, and a fund’s investment advisor cannot predict whether shares will trade below, at or above their NAV.

A fund’s use of put options involves risks different from those associated with ordinary portfolio securities transactions and depends on the ability of a fund’s portfolio managers to forecast market movements correctly. As the seller (writer) of a put option, a fund will tend to lose money if the value of the reference index or security falls below the strike price. When writing a put option, a fund will have no control over the exercise of the option by the option holder and the American style options sold by a fund may be exercised at any time before the option expiration date (as opposed to the European style options which may be exercised only on the expiration date). There may be times a fund needs to sell securities in order to settle the options, which may constitute a return of capital and make a fund less tax-efficient than other ETFs. Options may also involve the use of leverage, which could result in greater price volatility than other markets.

A fund may occasionally sell assets to convert return of capital distributions into taxable dividends, potentially increasing the tax liability for current shareholders. Therefore, the strategy may not be appropriate for investors seeking to minimize and/or defer taxes. While a fund will take the position that these transactions serve a valid business purpose, the IRS may disagree and may impose penalties, which could reduce shareholder returns. Trading on an exchange may be halted due to market conditions or other reasons. There can be no assurance that a fund’s requirements to maintain the exchange listing will continue to be met or be unchanged.

A fund’s concentrated exposure to the Underlying Security and its industry increases susceptibility to issuer-specific, industry, economic, business, and political risks. As a result, a fund may experience greater volatility than a more diversified fund.

The Underlying Security may engage in mergers, reorganizations, tender offers, delistings, or other corporate actions without regard to a fund. Such actions may reduce or eliminate the value of the Underlying Security and may require a fund to sell investments at unfavorable times or prices.

The Underlying Security may fail to meet market expectations or its own business projections. Changes in operating results, investor sentiment, litigation, or other factors may cause significant share price volatility unrelated to operating performance, which could adversely affect a fund.

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

A fund may hold securities or other assets that may be valued on the basis of factors other than market quotations. This may occur because the asset or security does not trade on a centralized exchange, or in times of market turmoil or reduced liquidity. Portfolio holdings that are valued using techniques other than market quotations, including “fair valued” assets or securities, may be subject to greater fluctuation in their valuations from one day to the next than if market quotations were used. There is no assurance that a fund could sell or close out a portfolio position for the value established for it at any time.

Each Fund has derived all disclosures contained in this document regarding its respective Underlying Security from publicly available documents. Neither the Fund, the Trust, the Advisor, the Sub-Advisor nor any affiliate has participated in the preparation of such documents or makes any representation that such publicly available documents or other publicly available information regarding the Underlying Securities is accurate or complete. The Funds cannot give assurance that all material events affecting the trading price of an Underlying Security have been publicly disclosed, and any such subsequent or undisclosed events could affect the value of a Fund’s investments and, therefore, the value of that Fund. Neither the Fund, the Trust, the Advisor nor the Sub-Advisor, nor any of their respective affiliates, make any representations to investors as to the performance of the Underlying Securities.

First Trust Advisors L.P. (FTA) is the adviser to the First Trust fund(s). FTA is an affiliate of First Trust Portfolios L.P., the distributor of the fund(s).

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.

The Target Outcome registered trademarks are registered trademarks of Vest Financial LLC.

Definitions:

An option is a contractual obligation between a buyer and a seller. There are two types of options known as “calls” and “puts.” The buyer of a call option has the right, but not the obligation, to purchase an agreed upon quantity of an underlying asset from the writer (seller) of the option at a predetermined price (the strike price) within a certain window of time (until the option’s expiration), creating a long position.

A call option is at-the-money (ATM) if the market price of the underlying security is equal to the strike price.

FLexible EXchange^® (FLEX) options are customized equity or index option contracts that trade on an exchange but provide investors with the ability to customize key contract terms like exercise prices, styles and expiration dates.

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