Rule 497 (k)
File No. 333-182308
First Trust
First Trust Exchange-Traded Fund VI
SUMMARY PROSPECTUS
First Trust RBA American Industrial Renaissance(TM) ETF
Ticker Symbol: AIRR
Exchange: NASDAQ(R)
Before you invest, you may want to review the Fund's prospectus, which contains
more information about the Fund and its risks. You can find the Fund's
prospectus and other information about the Fund, including the statement of
additional information and most recent reports to shareholders, online at
http://www.ftportfolios.com/retail/ETF/ETFfundnews.aspx?Ticker=AIRR. You can
also get this information at no cost by calling (800) 621-1675 or by sending an
e-mail request to info@ftportfolios.com. The Fund's prospectus and statement of
additional information, both March 11, 2014, are all incorporated by reference
into this Summary Prospectus.
Investment Objective
The First Trust RBA American Industrial Renaissance(TM) ETF (the "Fund") seeks
investment results that correspond generally to the price and yield
(before the Fund's fees and expenses) of an index called the Richard
Bernstein Advisors American Industrial Renaissance(TM) Index (the "Index").
March 11, 2014
Fees and Expenses of the Fund
The following table describes the fees and expenses you may pay if you
buy and hold shares of the Fund. Investors purchasing and selling
shares may be subject to costs (including customary brokerage
commissions) charged by their broker, which are not reflected in the
table below.
Shareholder Fees (fees paid directly from your investment)
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage
of offering price) None
Annual Fund Operating Expenses (expenses that you pay each year as a
percentage of the value of your investment)
Management Fees 0.70%
Distribution and Service (12b-1) Fees (1) 0.00%
Other Expenses(2) 0.00%
-------
Total Annual Fund Operating Expenses 0.70%
Example
The example below is intended to help you compare the cost of investing
in the Fund with the cost of investing in other funds. This example
does not take into account customary brokerage commissions that you pay
when purchasing or selling shares of the Fund in the secondary market.
The example assumes that you invest $10,000 in the Fund for the time
periods indicated. The example also assumes that your investment has a
5% return each year and that the Fund's operating expenses remain at
current levels until March 31, 2016, and thereafter at 0.95% to
represent the imposition of the 12b-1 fee of 0.25% per annum of the
Fund's average daily net assets. Although your actual costs may be
higher or lower, based on these assumptions your costs would be:
1 Year 3 Years
------ -------
$72 $250
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(1) Although the Fund has adopted a 12b-1 plan that permits it to pay
up to 0.25% per annum, it will not pay 12b-1 fees at any time before
March 31, 2016.
(2) The Fund had not commenced operations as of the date of this
prospectus. "Other Expenses" are estimates based on the expenses the
Fund expects to incur for the current fiscal year.
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it buys and
sells securities (or "turns over" its portfolio). A higher portfolio
turnover rate may indicate higher transaction costs and may result in
higher taxes when shares are held in a taxable account. These costs,
which are not reflected in annual fund operating expenses or in the
example, affect the Fund's performance.
Principal Investment Strategies
The Fund will normally invest at least 90% of its net assets (plus the
amount of any borrowings for investment purposes) in U.S. equity
securities that comprise the Index. The Index is designed to measure
the performance of small and mid cap U.S. companies in the industrial
and community banking sectors.
The Fund, using an indexing investment approach, attempts to replicate,
before fees and expenses, the performance of the Index. First Trust
Advisors L.P. ("First Trust" or the "Advisor"), the Fund's investment
advisor, seeks a correlation of 0.95 or better (before fees and
expenses) between the Fund's performance and the performance of the
Index; a figure of 1.00 would represent perfect correlation.
The Index is owned and was developed by Richard Bernstein Advisors LLC
("RBA" or the "Index Provider"). The Index Provider has retained the New
York Stock Exchange ("NYSE") to calculate and maintain the Index. The
Index is designed to measure the performance of small and mid cap U.S.
companies in the industrial and community banking sectors. RBA believes
there is increasing reason to expect that the United States may regain
industrial market share, based on a number of factors, including: access
to cheap energy sources; the relative stability of the U.S. market
compared to many emerging markets; and growing availability of bank
financing for manufacturers.
The Index Provider constructs the Index by utilizing the following
screens:
1. Start with a universe of small and mid cap securities of the Russell 2500
Index constituents, excluding over-the-counter traded securities.
2. Include securities from only the following Global Industry Classification
Standard ("GICS") industries: (a) Commercial Services & Supplies; (b)
Construction & Engineering; (c) Electrical Equipment; and (d) Machinery.
Non-industrial service companies, such as parking services, restaurant
cleaning services, are excluded.
3. Include securities from the financial sector as classified by GICS that meet
the following criteria: (a) a member of the Commercial Bank GICS industry;
(b) have a business focus on regional commercial lending; and (c) domiciled
in traditional mid-western manufacturing states, such as Pennsylvania,
Wisconsin, Michigan, Ohio, Illinois, Indiana and Iowa.
4. The companies included in the Index must have non-U.S. sales of less than
25%, which ensures that the majority of a company's revenues are derived
from the United States.
5. The securities included in the Index must be of companies that have a
positive median 12-months forward earnings consensus estimate.
The Index Provider evaluates the Index components quarterly in April,
July, October and January of each year for eligibility, using market
data through the end of March, June, September and December,
respectively. The Index is rebalanced quarterly. Rebalancing is
effective as of the market close of the third Friday in April, July,
October and January. The reference dates for the data used in the
rebalancing are at the close of trading on the last trading day in
March, June, September and December, respectively. As of February 19,
2014, the Index was comprised of 58 securities. The Fund will
principally invest in industrial and financial companies.
The Fund intends to invest entirely in securities included in the Index
and maintain a correlation of 0.95 or better (before fees and expenses)
between the Fund's performance and the performance of the Index;
however, there may also be instances in which the Fund may be
underweighted or overweighted in certain securities in the Index, not
invest in certain securities included in the Index, purchase securities
not in the Index that are appropriate to substitute for certain
securities in the Index or utilize various combinations of the above
techniques in seeking to track the Index.
Principal Risks
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 objective will be
achieved.
CONCENTRATION RISK. To the extent that the Index is concentrated in a
single industry or sector, the Fund will also be concentrated in such
industry or sector. A fund that is concentrated in a single industry or
sector presents more risks than a fund that is broadly diversified over
several industries or sectors. Compared to the broad market, an
individual industry or sector may be more strongly affected by changes
in the economic climate, broad market shifts, moves in a particular
dominant stock or regulatory changes.
COMMUNITY BANK RISK. The Fund invests in the securities of community
banks. Such companies were significantly impacted by the downturn in
the U.S. and world economies that began with the decline in the subprime
mortgage lending market in the United States. These conditions have
brought about legislative and regulatory changes, changes in short-term
and long-term interest rates, inflation and changes in government
monetary and fiscal policies, all of which have had a significant impact
on the banking business. Unlike larger national or other regional banks
that are more geographically diversified, a community bank's financial
performance may be highly dependent upon the business environment in
certain geographic regions of the United States and may be adversely
impacted by any downturn or unfavorable economic or employment
developments in its local market and the United States as a whole. In
particular, this environment impacts the ability of borrowers to pay
interest on and repay principal of outstanding loans and the value of
collateral securing those loans. Also, the securities of community
banks are often subject to low trading volume and low analyst coverage.
EQUITY SECURITIES RISK. The Fund invests in equity securities. The
value of the shares will fluctuate with changes in the value of these
equity securities. Equity securities prices fluctuate for several
reasons, including changes in investors' perceptions of the financial
condition of an issuer or the general condition of the relevant stock
market, such as the current market volatility, or when political or
economic events affecting the issuers occur. In addition, common stock
prices may be particularly sensitive to rising interest rates, as the
cost of the capital rises and borrowing costs increase.
FINANCIAL COMPANIES RISK. Financial companies are especially subject to
the adverse effects of economic recession, currency exchange rates,
government regulation, decreases in the availability of capital,
volatile interest rates, portfolio concentrations in geographic markets
and in commercial and residential real estate loans, and competition
from new entrants in their fields of business.
INDEX CORRELATION RISK. You should anticipate that the value of Fund
shares will decline more or less in correlation with any decline in the
value of the Fund's Index.
INDUSTRIALS COMPANIES RISK. The Fund invests in industrials companies.
Industrials companies convert unfinished goods into finished durables
used to manufacture other goods or provide services. Some industrials
companies are involved in electrical equipment and components,
industrial products, manufactured housing and telecommunications
equipment. General risks of industrials companies include the general
state of the economy, intense competition, consolidation, domestic and
international politics, excess capacity and consumer demand and spending
trends. In addition, they may also be significantly affected by overall
capital spending levels, economic cycles, technical obsolescence, delays
in modernization, labor relations, government regulations and e-commerce
initiatives.
MARKET RISK. Market risk is the risk that a particular security owned by
the Fund or shares of the Fund in general may fall in value. Shares are
subject to market fluctuations caused by such factors as economic,
political, regulatory or market developments, changes in interest rates
and perceived trends in securities prices. Overall Fund share values
could decline generally or could underperform other investments.
NEW FUND RISK. The Fund currently has fewer assets than larger funds,
and like other relatively new funds, large inflows and outflows may
impact the Fund's market exposure for limited periods of time. This
impact may be positive or negative, depending on the direction of market
movement during the period affected.
NON-CORRELATION RISK. The Fund's return may not match the return of the
Index for a number of reasons. For example, the Fund incurs operating
expenses not applicable to the Index, and may incur costs in buying and
selling securities, especially when rebalancing the Fund's portfolio
holdings to reflect changes in the composition of the Index. In
addition, the Fund's portfolio holdings may not exactly replicate the
securities included in the Index or the ratios between the securities
included in the Index.
NON-DIVERSIFICATION RISK. The Fund is classified as "non-diversified"
under the Investment Company Act of 1940 (the "1940 Act"). As a result,
the Fund is only limited as to the percentage of its assets that may be
invested in the securities of any one issuer by the diversification
requirements imposed by the Internal Revenue Code of 1986, as amended
(the "Code"). The Fund may invest a relatively high percentage of its
assets in a limited number of issuers. As a result, the 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.
REPLICATION MANAGEMENT RISK. The Fund is exposed to additional market
risk due to its policy of investing principally in the securities
included in the Index. As a result of this policy, securities held by
the Fund will generally not be bought or sold in response to market
fluctuations and the securities may be issued by companies concentrated
in a particular industry. Therefore, the Fund will generally not sell a
stock because the stock's issuer is in financial trouble, unless that
stock is removed or is anticipated to be removed from the Index.
SMALLER COMPANY RISK. The Fund invests in small and mid capitalization
companies. Such companies may be more vulnerable to adverse general
market or economic developments, and their securities may be less liquid
and may experience greater price volatility than larger, more
established companies as a result of several factors, including limited
trading volumes, products or financial resources, management
inexperience and less publicly available information. Accordingly, such
companies are generally subject to greater market risk than larger, more
established companies.
Performance
The Fund has not yet commenced operations and, therefore, does not have
a performance history. Once available, the Fund's performance
information will be available on the Fund's website at
www.ftportfolios.com. The Fund's past performance (before and after
taxes) is not necessarily an indication of how the Fund will perform in
the future.
Management
Investment Advisor
First Trust Advisors L.P. ("First Trust" or the "Advisor")
Portfolio Managers
The Fund's portfolio is managed by a team (the "Investment Committee")
consisting of:
- Daniel J. Lindquist, Chairman of the Investment Committee and
Managing Director of First Trust;
- Jon C. Erickson, Senior Vice President of First Trust;
- David G. McGarel, Chief Investment Officer and Managing Director of
First Trust;
- Roger F. Testin, Senior Vice President of First Trust; and
- Stan Ueland, Senior Vice President of First Trust.
Each Investment Committee member has served as a part of the portfolio
management team of the Fund since 2014.
Purchase and Sale of Fund Shares
The Fund issues and redeems shares on a continuous basis, at net asset
value, only in Creation Units consisting of 50,000 shares. The Fund's
Creation Units are issued for securities in which the Fund invests
and/or cash, and redeemed for securities and/or cash, and only to and
from broker-dealers and large institutional investors that have entered
into participation agreements. Shares of the Fund will trade on
NASDAQ(R) at market prices rather than net asset value, which may cause
the shares to trade at a price greater than net asset value (premium) or
less than net asset value (discount).
Tax Information
The Fund's distributions are taxable and will generally be taxed as
ordinary income or capital gains. Distributions on shares held in a tax
deferred account, while not immediately taxable, will be subject to tax
when the shares are no longer held in a tax deferred account.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase shares of the Fund through a broker-dealer or other
financial intermediary (such as a bank), First Trust and First Trust
Portfolios L.P., the Fund's distributor, may pay the intermediary for
the sale of Fund shares and related services. These payments may create
a conflict of interest by influencing the broker-dealer or other
intermediary and your salesperson to recommend the Fund over another
investment. Ask your salesperson or visit your financial intermediary's
website for more information.
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