Rule 497(k)
File No. 333-182308
FIRST TRUST First Trust Exchange-Traded Fund VI
SUMMARY PROSPECTUS
First Trust NASDAQ Technology Dividend Index Fund
Ticker Symbol: TDIV
Exchange: The NASDAQ(R) Stock Market
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=TDIV. 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 dated January 31, 2013, are all incorporated by
reference into this Summary Prospectus.
The First Trust NASDAQ Technology Dividend Index Fund (the "Fund") seeks
investment results that correspond generally to the price and yield (before the
Fund's fees and expenses) of an equity index called the NASDAQ Technology
Dividend Index (the "Index").
January 31, 2013
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.
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 0.50%
Distribution and Service (12b-1) Fees (1) 0.00%
Other Expenses 0.00%
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Total Annual Fund Operating Expenses 0.50%
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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 and then you retain the Shares or redeem all of your Shares at the
end of those periods. The example also assumes that your investment has a 5%
return each year and that the Fund's annual operating expenses remain at
current levels until January 31, 2014. Additionally, the example assumes that
the Fund imposes a 12b-1 fee of 0.25% per annum of the Fund's average daily
net assets following January 31, 2014. Although your actual costs may be
higher or lower, based on these assumptions your costs would be:
1 Year 3 Years 5 Years 10 Years
$51 $206 $384 $899
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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 January
31, 2014.
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
Fund 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. During the fiscal period August 13, 2012 (inception)
through September 30, 2012, the Fund's portfolio turnover rate was 18% of the
average value of its portfolio.
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 the common stocks and/or depositary
receipts included in the Index.
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. First Trust will regularly monitor the Fund's tracking
accuracy and will seek to maintain an appropriate correlation.
The Index is owned and was developed by NASDAQ(R) (the "Index Provider"). The
Index is calculated and maintained by the Index Provider. The Index includes up
to 100 Technology and Telecommunications companies that pay a regular or common
dividend. To be selected for the Index, a company must be classified as a
Technology or Telecommunications company under the Industry Classification
Benchmark ("ICB") and have a minimum market capitalization of $500 million.
International securities in the Index are U.S.-listed securities of non-U.S.
companies, some of which may be located in emerging markets. At each quarter,
the Index is rebalanced such that the Technology securities are given a
collective weight of 80% and the Telecommunications securities are given a
collective weight of 20%.
The Index employs a modified market cap weighting methodology in which larger
companies receive a larger index weighting. The index weighting methodology
includes caps to prevent high concentrations among larger stocks. This
methodology is applied to the dividend value of each Index security. The
dividend value is calculated by multiplying dividends paid per share within the
past 12 months by the current shares outstanding. At each quarter, the Index is
rebalanced such that the Technology securities are given a collective weight of
80% and the Telecommunications securities are given a collective weight of 20%.
The Index Provider evaluates the Index components semi-annually in March and
September for eligibility, based on January and July month-end data. Eligible
components for the Index are identified as such using the eligibility criteria
set forth in this Prospectus under "Index Information." The Index is rebalanced
quarterly in March, June, September and December. Rebalancing is effective as of
the market close of the third Friday in March, June, September and December. As
of December 31, 2012, the Index was comprised of 74 securities.
The Fund intends to invest entirely in securities included in 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.
MARKET RISK. Market risk is the risk that a particular stock owned by the Fund,
Shares of the Fund or stocks 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 stock
prices. Overall stock values could decline generally or could underperform other
investments.
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.
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 the Technology and/or Telecommunications
sectors, if the Index is so concentrated. 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.
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.
NON-DIVERSIFICATION RISK. The Fund is classified as "non-diversified" under the
Investment Company Act of 1940, as amended (the "1940 Act"). As a result, the
Fund is only limited as to the percentage of its assets which 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.
TECHNOLOGY SECTOR RISK. The Fund invests in the securities of companies in the
technology sector. General risks of technology companies include the risks of
rapidly changing technologies, short product life cycles, fierce competition,
aggressive pricing and reduced profit margins, loss of patent, copyright and
trademark protections, cyclical market patterns, evolving industry standards,
and frequent new product introductions. Technology companies may be smaller and
less experienced companies, with limited product lines, markets or financial
resources and fewer experienced management or marketing personnel.
TELECOMMUNICATIONS SECTOR RISK. The Fund invests in companies in the
telecommunications sector. Telecommunications companies are subject to risks,
such as: a market characterized by increasing competition and regulation by the
Federal Communications Commission and various state regulatory authorities; the
need to commit substantial capital to meet increasing competition, particularly
in formulating new products and services using new technology; and technological
innovations that may make various products and services obsolete.
NON-U.S. SECURITIES AND EMERGING MARKETS RISK. The Fund invests in U.S.
dollar-denominated securities of non-U.S. issuers traded in the United States.
Such securities are subject to higher volatility than securities of domestic
issuers due to possible adverse political, social or economic developments;
restrictions on foreign investment or exchange of securities; lack of liquidity;
excessive taxation; government seizure of assets; different legal or accounting
standards and less government supervision and regulation of exchanges in foreign
countries. These risks may be heightened for securities of companies located in,
or with significant operations in, emerging market countries.
DEPOSITARY RECEIPTS RISK. Depositary receipts may be less liquid than the
underlying shares in their primary trading market. Any distributions paid to the
holders of depositary receipts are usually subject to a fee charged by the
depositary. Holders of depositary receipts may have limited voting rights, and
investment restrictions in certain countries may adversely impact the value of
depositary receipts because such restrictions may limit the ability to convert
equity shares into depositary receipts and vice versa. Such restrictions may
cause equity shares of the underlying issuer to trade at a discount or premium
to the market price of the depositary receipts.
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.
ANNUAL TOTAL RETURN
The Fund has not yet operated for a full calendar year and, therefore,
performance information is not included in this section of the Prospectus. See
"Total Return Information" for performance information regarding the Fund.
MANAGEMENT
INVESTMENT ADVISOR
First Trust Advisors L.P. ("First Trust")
PORTFOLIO MANAGERS
The Fund's portfolio is managed by a team (the "Investment Committee")
consisting of:
o Daniel J. Lindquist, Chairman of the Investment Committee and Senior
Vice President of First Trust;
o Jon C. Erickson, Senior Vice President of First Trust;
o David G. McGarel, Chief Investment Officer and Senior Vice President
of First Trust;
o Roger F. Testin, Senior Vice President of First Trust; and
o 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 inception.
PURCHASE AND SALE OF FUND SHARES
The Fund issues and redeems Shares on a continuous basis, at NAV, only in
Creation Units consisting of 50,000 Shares. The Fund's Creation Units are issued
and redeemed in-kind for securities in which the Fund invests and/or cash, and
only to and from broker-dealers and large institutional investors that have
entered into participation agreements. Individual Shares may only be purchased
and sold on NASDAQ(R) through a broker-dealer. Shares of the Fund will trade on
NASDAQ(R) at market prices rather than NAV, which may cause the Shares to trade
at a price greater than NAV (premium) or less than NAV (discount).
TAX INFORMATION
The Fund's distributions are taxable and will generally be taxed as ordinary
income or capital gains.
PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES
If you purchase 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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