Assets Under Management AUM

First Trust Launches First Trust Nasdaq Lux Digital Health Solutions ETF

WHEATON, Illinois–(BUSINESS WIRE)–First Trust Advisors LP (“First Trust”), a leading provider of exchange-traded funds (“ETFs”) and asset manager, today announced the launch of a new ETF, the First Trust Nasdaq Lux Digital Health Solutions ETF (Nasdaq: EKG) (the “Fund”). The fund seeks investment results which generally correspond to the price and yield (before fees and expenses of the fund) of an index called the Nasdaq Lux Health Tech Index (the “Index”), which provides exposure to companies focusing on technological innovations in health care in the medical field. and surgical devices, clinical diagnostics, healthcare-related business/productivity software, or any other healthcare technology identified as digital health.

“The healthcare industry is leveraging technology in new and innovative ways that have the potential to elevate our standard of living and improve patient outcomes,” said Ryan Issakainen, CFA, Senior Vice President , ETF Strategist at First Trust. “We believe EKG will appeal to investment professionals seeking exposure to some of the most innovative stocks at the intersection of healthcare and technology,” Issakainen said.

The Nasdaq Lux Health Tech Index (NQHTEC) was launched on July 19, 2021, in partnership with Lux Capital, a venture capital firm focused on emerging science and technology, with the primary aim of building a new differentiated benchmark of companies listed on the stock exchange. who are leading the integration of advanced technologies in many areas of the healthcare industry. The index’s constituent profile covers biotechnology, medical devices, software, medical services and diagnostic tools, providing investors with exposure to key health technology areas such as genomics, proteomics, advanced therapies and digital health.

“We’ve spent years obsessing over the deep tech innovation that takes place at the intersection of the health and tech industries and beyond. As we’ve seen recently, the results of advances and incredible acceleration in health technologies have a significant impact on society,” said Peter Hébert, co-founder and managing partner of Lux Capital.“We apply a similar level of analysis to the selection and monitoring of companies within NQHTEC and we look forward to seeing the fund reflect this methodology.”

Cameron Lilja, Vice President and Global Head of Index Products for Nasdaq, said, “We are seeing rapid innovation and digital transformation in healthcare, exacerbated by the COVID‐19 pandemic. These technological advances have the potential to improve the quality of healthcare services and improve the industry’s ability to deliver healthcare to the individual. Our index offers investors a unique and compelling way to track this highly relevant and exciting theme, and our work with Lux and First Trust provides access to this theme for the investing public.

For more information about First Trust, please contact Ryan Issakainen at (630) 765-8689 or [email protected]

About First Trust

First Trust is a federally registered investment adviser and acts as the investment adviser to the fund. First Trust and its affiliate First Trust Portfolios LP (“FTP”), a FINRA-registered dealer, are private companies that provide a variety of investment services. First Trust has collective assets under management or supervision of approximately $210 billion as of February 28, 2022 through unit investment trusts, exchange-traded funds, closed-end funds, investment and separate managed accounts. First Trust is the supervisor of the First Trust Unitary Investment Trusts, while FTP is the sponsor. FTP is also a distributor of UCITS units and UCITS creation units. First Trust and FTP are based in Wheaton, Illinois. For more information, visit http://www.ftportfolios.com.

About Lux Capital

Lux Capital invests in emerging science and technology companies at the edge of the possible. They partner with iconoclastic inventors challenging the status quo and the laws of nature to bring their futuristic ideas to life. Over the past two decades, Lux has expanded from its New York roots to Silicon Valley and built a $4 billion AUM company of more than 30 full-time professionals, with the versatility to invest at n any step.

You should carefully consider the investment objectives, risks and charges and expenses of the fund before investing. Contact First Trust Portfolios LP at 1-800-621-1675 or visit www.ftportfolios.com for a prospectus or summary prospectus containing this and other information about the fund. The prospectus or simplified prospectus should be read carefully before investing.

Risk Considerations

The performance of a fund may not correspond to the performance of its underlying index. A fund invests in securities included in the index regardless of investment merit, and securities held by a fund will generally not be bought or sold in response to market fluctuations.

Investors who buy or sell fund units on the secondary market may incur normal brokerage commissions. Market prices may differ to some extent from the net asset value of shares. Investors who sell fund shares may receive less than the net asset value of the share. Shares can be sold throughout the trading day through any brokerage account. However, unlike UCITS, shares can only be redeemed directly from a UCITS by authorized participants in very large creation/redemption shares. If authorized participants of a fund are unable to respond to creation/redemption orders and no other authorized participants are able to step forward to create or redeem, shares of the fund may trade with a discount to the net asset value of a fund and possibly be delisted.

The value of a fund’s shares will change and you could lose money by investing in a fund. One of the main risks of investing in a fund is market risk. Market risk is the risk that a particular stock held by a fund, fund stocks or stocks in general will lose value. There can be no assurance that a fund’s investment objective will be achieved. In February 2022, Russia invaded Ukraine, which caused and may continue to cause significant market disruption and market volatility in Russia, Europe and the United States. Hostilities and the sanctions resulting from these hostilities could have a significant impact on certain investments of the fund as well as on the performance of the fund. The outbreak of the respiratory disease referred to as COVID-19 in December 2019 caused significant volatility and decline in global financial markets, resulting in losses for investors. While vaccine development has slowed the spread of the virus and allowed “reasonably” normal business activity to resume in the United States, many countries continue to impose containment measures in an attempt to slow the spread. Moreover, there is no guarantee that the vaccines will be effective against emerging variants of the disease.

As the use of internet technology has become more prevalent in the course of business, funds have become more susceptible to potential operational risks due to vulnerabilities in cybersecurity.

Healthcare businesses may be affected by government regulations and government healthcare programs, increases or decreases in the cost of medical products and services, and product liability claims, among other factors. Many healthcare companies rely heavily on patent protection, and the expiration of a company’s patent can hurt that company’s profitability. Healthcare companies are also subject to competitive forces that can drive price reductions, can be undercapitalized, and prone to product obsolescence.

Companies in the health technology sector may be exposed to risks that include, but are not limited to, small or limited markets for such securities, changes in business cycles, global economic growth, technological advancement, rapid obsolescence and government regulation. Stocks of healthcare technology companies, especially smaller start-ups, tend to be more volatile than stocks of companies that are not heavily dependent on technology.

A fund may be part of one or more indices or patterns, which could greatly affect a fund’s trading activity, size and volatility.

There can be no assurance that the Index Provider or its agents will compile or maintain the Index accurately.

Large cap companies may grow at a slower rate than the overall market.

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

A fund classified as “undiversified” may invest a relatively high percentage of its assets in a limited number of issuers. Consequently, a fund may be more sensitive to a single adverse economic or regulatory event affecting one or more of these issuers, experience increased volatility and be highly concentrated in certain issuers.

A fund and a fund’s adviser may seek to mitigate various operational risks through controls and procedures, but it is not possible to fully protect against such risks.

A fund with high exposure to one asset class, country, region, industry or sector may be more affected by adverse economic or political developments than a broadly diversified fund.

Securities of small and mid capitalization companies may experience greater price volatility and be less liquid than larger, more established companies.

Exchange trading may be interrupted due to market conditions or other reasons. There can be no assurance that the requirements for maintaining a fund’s listing on the stock exchange will continue to be met or remain unchanged.

First Trust Advisors LP is the fund’s adviser. First Trust Advisors LP is a subsidiary of First Trust Portfolios LP, the distributor of the fund.

The information presented is not intended to constitute an investment recommendation or advice to any particular person. By providing this information, First Trust does not represent itself as giving advice in a fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Finance professionals are responsible for independently assessing investment risks and exercising independent judgment in determining whether investments are appropriate for their clients.

Nasdaq® and Nasdaq Lux Health Tech Index are registered trademarks and service marks of Nasdaq, Inc. (together with its affiliates hereinafter referred to as the “Companies”) and are used under license by First Trust. The Fund has not been conveyed by the Companies as to its legality or suitability. The Fund is not issued, endorsed, sold or promoted by the Companies. THE COMPANIES MAKE NO WARRANTIES AND ASSUME NO LIABILITY WITH RESPECT TO THE FUND.