Definitive Materials Filed by Investment Companies. (497)
April 13 2020 - 4:02PM
Edgar (US Regulatory)
Rule 497(e)
Registration Nos. 333-182308 and 811-22717
FIRST TRUST EXCHANGE-TRADED FUND VI
(the “Trust”)
FIRST
TRUST DORSEYWRIGHT DYNAMIC FOCUS 5 ETF
(the “Fund”)
SUPPLEMENT TO THE PROSPECTUS, SUMMARY PROSPECTUS
AND
STATEMENT OF ADDITIONAL INFORMATION
DATED FEBRUARY 3, 2020
DATED APRIL 13, 2020
THIS SUPPLEMENT SUPERSEDES THE SUPPLEMENT
FILED ON MARCH 13, 2020
Notwithstanding anything to the contrary in the Fund’s
prospectus, summary prospectus or statement of additional information, under certain circumstances, the Fund’s Index allocates
to the First Trust Enhanced Short Maturity ETF (“FTSM”), an ultra-short duration exchange-traded fund. See below
for important information regarding FTSM, as well as certain additional risks of investing in FTSM.
FTSM’s investment objective is to seek current income,
consistent with preservation of capital and daily liquidity. Under normal market conditions, FTSM intends to achieve its investment
objective by investing at least 80% of its net assets in a portfolio of U.S. dollar-denominated fixed or floating rate debt securities,
including securities issued or guaranteed by the U.S. government or its agencies, instrumentalities or U.S. government-sponsored
entities, residential and commercial mortgage-backed securities, asset-backed securities, U.S. corporate bonds, fixed income securities
issued by non-U.S. corporations and governments, municipal obligations, privately issued securities and other debt securities bearing
fixed or floating interest rates. FTSM may also invest in money market securities. FTSM may invest up to 20% of its net assets
in privately-issued, non-agency sponsored mortgage- and asset-backed securities and may invest up to 20% of its net assets in floating
rate loans representing amounts borrowed by companies or other entities from banks and other lenders. Under normal market conditions,
FTSM’s portfolio is expected to have an average duration of less than one year and an average maturity of less than three
years. Additional information regarding FTSM, including its prospectus and most recent annual report, is available without charge
by visiting www.ftportfolios.com/Retail/Etf/EtfFundNews.aspx?Ticker=FTSM.
ASSET-BACKED SECURITIES RISK. Asset-backed securities
are debt securities typically created by buying and pooling loans or other receivables other than mortgage loans and creating securities
backed by those similar type assets. As with other debt securities, asset-backed securities are subject to credit risk, extension
risk, interest rate risk, liquidity risk and valuation risk. These securities are generally not backed by the full faith and credit
of the U.S. government and are subject to the risk of default on the underlying asset or loan, particularly during periods of economic
downturn. The impairment of the value of collateral or other assets underlying an asset-backed security, such as a result of non-payment
of loans or non-performance of underlying assets, may result in a reduction in the value of such asset-backed securities and losses.
CREDIT RISK. An issuer or other obligated party of a
debt security may be unable or unwilling to make dividend, interest and/or principal payments when due. In addition, the value
of a debt security may decline because of concerns about the issuer’s ability or unwillingness to make such payments.
DEBT SECURITIES RISK. Investments in debt securities
subject the holder to the credit risk of the issuer. Credit risk refers to the possibility that the issuer or other obligor of
a security will not be able or willing to make payments of interest and principal when due. Generally, the value of debt securities
will change inversely with changes in interest rates. To the extent that interest rates rise, certain underlying obligations may
be paid off substantially slower than originally anticipated and the value of those securities may fall sharply. During periods
of falling interest rates, the income received may decline. If the principal on a debt security is prepaid before expected, the
prepayments of principal may have to be reinvested in obligations paying interest at lower rates. Debt securities generally do
not trade on a securities exchange making them generally less liquid and more difficult to value than common stock.
FLOATING RATE DEBT INSTRUMENTS RISK. Investments in
floating rate debt instruments are subject to the same risks as investments in other types of debt securities, including credit
risk, interest rate risk, liquidity risk and valuation risk. Floating rate debt instruments include debt securities issued by corporate
and governmental entities, as well bank loans, mortgage-backed securities and asset-backed securities. Floating rate debt instruments
are structured so that the security’s coupon rate fluctuates based upon the level of a reference rate. Most commonly, the
coupon rate of a floating rate debt instrument is set at the level of a widely followed interest rate, plus a fixed spread. As
a result, the coupon on a floating rate debt instrument will generally decline in a falling interest rate environment, causing
a reduction in the income it receives from the instrument. A floating rate debt instrument’s coupon rate resets periodically
according to its terms. Consequently, in a rising interest rate environment, floating rate debt instruments with coupon rates that
reset infrequently may lag behind the changes in market interest rates. Floating rate debt instruments may also contain terms that
impose a maximum coupon rate the issuer will pay, regardless of the level of the reference rate. Floating rate loans may be subject
to legal or contractual restrictions on resale, may trade infrequently, and their value may be impaired. It is possible that the
collateral securing a floating rate loan maybe insufficient or unavailable, and that the rights to collateral may be limited by
bankruptcy or insolvency laws. Additionally, floating rate loans may not be considered “securities” under federal securities
laws, and purchasers therefore may not be entitled to rely on the anti-fraud protections of the federal securities laws.
MORTGAGE-RELATED SECURITIES RISK. Mortgage-related securities
are subject to the same risks as investments in other types of debt securities, including credit risk, interest rate risk, liquidity
risk and valuation risk. However, these investments are more susceptible to adverse economic, political or regulatory events that
affect the value of real estate. Mortgage-related securities are also significantly affected by the rate of prepayments and modifications
of the mortgage loans underlying those securities, as well as by other factors such as borrower defaults, delinquencies, realized
or liquidation losses and other shortfalls. Mortgage-related securities are particularly sensitive to prepayment risk, given that
the term to maturity for mortgage loans is generally substantially longer than the expected lives of those securities. As the timing
and amount of prepayments cannot be accurately predicted, the timing of changes in the rate of prepayments of the mortgage loans
may significantly affect actual yield to maturity on any mortgage-related securities. Along with prepayment risk, mortgage-related
securities are significantly affected by interest rate risk.
NON-AGENCY SECURITIES RISK. 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. There are no direct or
indirect government or agency guarantees of payments in loan pools created by non-government issuers. Securities issued by private
issuers are subject to the credit risks of the issuers. An unexpectedly high rate of defaults on the loan pool may adversely affect
the value of a non-agency security. The risk of such defaults is generally higher in the case of pools that include subprime loans.
Non-agency securities are typically traded “over-the-counter” rather than on a securities exchange and there may be
a limited market for the securities, especially when there is a perceived weakness in the mortgage and real estate market sectors.
Without an active trading market, non-agency mortgage-related securities may be particularly difficult to value because of the
complexities involved in assessing the value of the underlying loans.
The audited financial statements for the most recent fiscal
period for FTSM, contained in FTSM’s most recent Annual Report to Shareholders, are incorporated by reference into the Fund’s
statement of additional information.
PLEASE KEEP THIS SUPPLEMENT WITH YOUR FUND
PROSPECTUS, SUMMARY PROSPECTUS AND STATEMENT OF ADDITIONAL INFORMATION FOR FUTURE REFERENCE
First Trust VI First Tru... (NASDAQ:TDIV)
Historical Stock Chart
From Jun 2024 to Jul 2024
First Trust VI First Tru... (NASDAQ:TDIV)
Historical Stock Chart
From Jul 2023 to Jul 2024
